[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1 Placed on Calendar Senate (PCS)]






                                                        Calendar No. 23
107th CONGRESS
  1st Session
                                  S. 1

                           [Report No. 107-7]

 To extend programs and activities under the Elementary and Secondary 
                         Education Act of 1965.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 28, 2001

   Mr. Jeffords, from the Committee on Health, Education, Labor, and 
 Pensions, reported the following original bill; which was read twice 
                       and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To extend programs and activities under the Elementary and Secondary 
                         Education Act of 1965.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Better Education 
for Students and Teachers Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Short title; purpose; definitions; uniform provisions.
Sec. 4. Maintenance of effort.
Sec. 5. Prohibition regarding State aid.
Sec. 6. Participation by private school children and teachers.
Sec. 7. Standards for by-pass.
Sec. 8. Complaint process for participation of private school children.
Sec. 9. By-pass determination process.
Sec. 10. Prohibition against funds for religious worship or 
                            instruction.
Sec. 11. Applicability to home schools.
Sec. 12. General provision regarding nonrecipient nonpublic schools.
Sec. 13. School prayer.
Sec. 14. General prohibitions.
Sec. 15. Prohibition on Federal mandates, direction, and control.
           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

Sec. 101. Policy and purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation and allocation for school improvement.
           Part A--Better Results for Disadvantaged Children

Sec. 111. State plans.
Sec. 112. Local educational agency plans.
Sec. 113. Eligible school attendance areas.
Sec. 114. Schoolwide programs.
Sec. 115. Targeted assistance schools.
Sec. 116. Pupil safety and family school choice.
Sec. 117. Assessment and local educational agency and school 
                            improvement.
Sec. 118. Assistance for school support and improvement.
Sec. 119. Parental involvement.
Sec. 120. Professional development.
Sec. 120A. Participation of children enrolled in private schools.
Sec. 120B. Early childhood education.
Sec. 120C. Allocations.
               Part B--Literacy for Children and Families

Sec. 121. Reading first.
Sec. 122. Early reading initiative.
                Part C--Education of Migratory Children

Sec. 131. Program purpose.
Sec. 132. State application.
Sec. 133. Comprehensive plan.
Sec. 134. Coordination.
    Part D--Initiatives for Neglected, Delinquent, or at Risk Youth

Sec. 141. Initiatives for neglected, delinquent, or at risk youth.
  Part E--21st Century Learning Centers; Comprehensive School Reform; 
                       School Dropout Prevention

Sec. 151. 21st century learning centers; comprehensive school reform.
           Part F--Education for Homeless Children and Youth

Sec. 161. Statement of policy.
Sec. 162. Grants for State and local activities.
Sec. 163. Local educational agency grants.
Sec. 164. Secretarial responsibilities.
Sec. 165. Definitions.
Sec. 166. Authorization of appropriations.
Sec. 167. Conforming amendments.
                           TITLE II--TEACHERS

Sec. 201. Teacher quality.
Sec. 202. Teacher mobility.
   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

Sec. 301. Bilingual education.
          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

Sec. 401. Amendment to the Elementary and Secondary Education Act of 
                            1965.
Sec. 402. Gun-free requirements.
Sec. 403. School safety and violence prevention.
Sec. 404. Environmental tobacco smoke.
             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Sec. 501. Public school choice and flexibility.
           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Sec. 601. Parental involvement and accountability.
    TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

Sec. 701. Programs.
Sec. 702. Conforming amendments.
                          TITLE VIII--REPEALS

Sec. 801. Repeals.
                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Independent evaluation.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.).

SEC. 3. SHORT TITLE; PURPOSE; DEFINITIONS; UNIFORM PROVISIONS.

    The Act (20 U.S.C. 6301 et seq.) is amended--
            (1) in the heading for section 1, by striking ``table of 
        contents'' and inserting ``short title''; and
            (2) by adding after section 1 the following:

``SEC. 2. PURPOSE.

    ``It is the purpose of this Act to support programs and activities 
that will improve the Nation's schools and enable all children to 
achieve high standards.

``SEC. 3. DEFINITIONS.

    ``Except as otherwise provided, in this Act:
            ``(1) Average daily attendance.--
                    ``(A) In general.--Except as provided otherwise by 
                State law or this paragraph, the term `average daily 
                attendance' means--
                            ``(i) the aggregate number of days of 
                        attendance of all students during a school 
                        year; divided by
                            ``(ii) the number of days school is in 
                        session during such school year.
                    ``(B) Conversion.--The Secretary shall permit the 
                conversion of average daily membership (or other 
                similar data) to average daily attendance for local 
                educational agencies in States that provide State aid 
                to local educational agencies on the basis of average 
                daily membership or such other data.
                    ``(C) Special rule.--If the local educational 
                agency in which a child resides makes a tuition or 
                other payment for the free public education of the 
                child in a school located in another school district, 
                the Secretary shall, for purposes of this Act--
                            ``(i) consider the child to be in 
                        attendance at a school of the agency making 
                        such payment; and
                            ``(ii) not consider the child to be in 
                        attendance at a school of the agency receiving 
                        such payment.
                    ``(D) Children with disabilities.--If a local 
                educational agency makes a tuition payment to a private 
                school or to a public school of another local 
                educational agency for a child with a disability, as 
                defined in section 602 of the Individuals with 
                Disabilities Education Act, the Secretary shall, for 
                the purposes of this Act, consider such child to be in 
                attendance at a school of the agency making such 
                payment.
            ``(2) Average per-pupil expenditure.--The term `average 
        per-pupil expenditure' means, in the case of a State or of the 
        United States--
                    ``(A) without regard to the source of funds--
                            ``(i) the aggregate current expenditures, 
                        during the third fiscal year preceding the 
                        fiscal year for which the determination is made 
                        (or, if satisfactory data for that year are not 
                        available, during the most recent preceding 
                        fiscal year for which satisfactory data are 
                        available) of all local educational agencies in 
                        the State or, in the case of the United States 
                        for all States (which, for the purpose of this 
                        paragraph, means the 50 States and the District 
                        of Columbia); plus
                            ``(ii) any direct current expenditures by 
                        the State for the operation of such agencies; 
                        divided by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom such agencies provided free 
                public education during such preceding year.
            ``(3) Child.--The term `child' means any person within the 
        age limits for which the State provides free public education.
            ``(4) Community-based organization.--The term `community-
        based organization' means a public or private nonprofit 
        organization of demonstrated effectiveness that--
                    ``(A) is representative of a community or 
                significant segments of a community; and
                    ``(B) provides educational or related services to 
                individuals in the community.
            ``(5) Consolidated local application.--The term 
        `consolidated local application' means an application submitted 
        by a local educational agency pursuant to section 5505.
            ``(6) Consolidated local plan.--The term `consolidated 
        local plan' means a plan submitted by a local educational 
        agency pursuant to section 5505.
            ``(7) Consolidated state application.--The term 
        `consolidated State application' means an application submitted 
        by a State educational agency pursuant to section 5502.
            ``(8) Consolidated state plan.--The term `consolidated 
        State plan' means a plan submitted by a State educational 
        agency pursuant to section 5502.
            ``(9) County.--The term `county' means one of the divisions 
        of a State used by the Secretary of Commerce in compiling and 
        reporting data regarding counties.
            ``(10) Covered program.--The term `covered program' means 
        each of the programs authorized by--
                    ``(A) part A of title I;
                    ``(B) part C of title I;
                    ``(C) part C of title II;
                    ``(D) part A of title IV (other than section 4114); 
                and
                    ``(E) subpart 4 of part B of title V.
            ``(11) Current expenditures.--The term `current 
        expenditures' means expenditures for free public education--
                    ``(A) including expenditures for administration, 
                instruction, attendance and health services, pupil 
                transportation services, operation and maintenance of 
                plant, fixed charges, and net expenditures to cover 
                deficits for food services and student body activities; 
                but
                    ``(B) not including expenditures for community 
                services, capital outlay, and debt service, or any 
                expenditures made from funds received under subpart 4 
                of part B of title V.
            ``(12) Department.--The term `Department' means the 
        Department of Education.
            ``(13) Educational service agency.--The term `educational 
        service agency' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local educational agencies.
            ``(14) Elementary school.--The term `elementary school' 
        means a nonprofit institutional day or residential school, 
        including a public elementary charter school, that provides 
        elementary education, as determined under State law.
            ``(15) Free public education.--The term `free public 
        education' means education that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary school or secondary school 
                education as determined under applicable State law, 
                except that such term does not include any education 
                provided beyond grade 12.
            ``(16) Gifted and talented.--The term `gifted and 
        talented', when used with respect to students, children or 
        youth, means students, children or youth who give evidence of 
        high performance capability in areas such as intellectual, 
        creative, artistic, or leadership capacity, or in specific 
        academic fields, and who require services or activities not 
        ordinarily provided by the school in order to fully develop 
        such capabilities.
            ``(17) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965.
            ``(18) Local educational agency.--
                    ``(A) In general.--The term `local educational 
                agency' means a public board of education or other 
                public authority legally constituted within a State for 
                either administrative control or direction of, or to 
                perform a service function for, public elementary 
                schools or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or for such combination of 
                school districts or counties as are recognized in a 
                State as an administrative agency for the State's 
                public elementary or secondary schools.
                    ``(B) Administrative control and direction.--The 
                term includes any other public institution or agency 
                having administrative control and direction of a public 
                elementary school or secondary school.
                    ``(C) BIA schools.--The term includes an elementary 
                school or secondary school funded by the Bureau of 
                Indian Affairs but only to the extent that such 
                inclusion makes such school eligible for programs for 
                which specific eligibility is not provided to such 
                school in another provision of law and such school does 
                not have a student population that is smaller than the 
                student population of the local educational agency 
                receiving assistance under this Act with the smallest 
                student population, except that such school shall not 
                be subject to the jurisdiction of any State educational 
                agency other than the Bureau of Indian Affairs.
            ``(19) Mentoring.--The term `mentoring', when used with 
        respect to mentoring other than teacher mentoring, means a 
        program in which an adult works with a child or youth on a 1-
        to-1 basis, establishing a supportive relationship, providing 
        academic assistance, and introducing the child or youth to new 
        experiences that enhance the child or youth's ability to excel 
        in school and become a responsible citizen.
            ``(20) Other staff.--The term `other staff' means pupil 
        services personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
            ``(21) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and for the 
        purpose of section 1121 and any other discretionary grant 
        program under this Act, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.
            ``(22) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis.
            ``(23) Parental involvement.--The term `parental 
        involvement' means the participation of parents on all levels 
        of a school's operation, including all of the activities 
        described in section 1118.
            ``(24) Public telecommunications entity.--The term `public 
        telecommunication entity' has the same meaning given to such 
        term in section 397 of the Communications Act of 1934.
            ``(25) Pupil services personnel; pupil services.--
                    ``(A) Pupil services personnel.--The term `pupil 
                services personnel' means school counselors, school 
                social workers, school psychologists, and other 
                qualified professional personnel involved in providing 
                assessment, diagnosis, counseling, educational, 
                therapeutic, and other necessary services (including 
                related services as such term is defined in section 602 
                of the Individuals with Disabilities Education Act) as 
                part of a comprehensive program to meet student needs.
                    ``(B) Pupil services.--The term `pupil services' 
                means the services provided by pupil services 
                personnel.
            ``(26) Scientifically based research.--The term 
        `scientifically based research' used with respect to an 
        activity or a program, means an activity based on specific 
        strategies and implementation of such strategies that, based on 
        theory, research and evaluation, are effective in improving 
        student achievement and performance and other program 
        objectives.
            ``(27) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school, including 
        a public secondary charter school, that provides secondary 
        education, as determined under State law, except that such term 
        does not include any education beyond grade 12.
            ``(28) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(29) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and each of the outlying areas.
            ``(30) State educational agency.--The term `State 
        educational agency' means the agency primarily responsible for 
        the State supervision of public elementary schools and 
        secondary schools.
            ``(31) Teacher mentoring.--The term `teacher mentoring' 
        means activities that--
                    ``(A) consist of structured guidance and regular 
                and ongoing support for beginning teachers, that--
                            ``(i) are designed to help the teachers 
                        continue to improve their practice of teaching 
                        and to develop their instructional skills; and
                            ``(ii) as part of a multiyear, 
                        developmental induction process--
                                    ``(I) involve the assistance of a 
                                mentor teacher and other appropriate 
                                individuals from a school, local 
                                educational agency, or institution of 
                                higher education; and
                                    ``(II) may include coaching, 
                                classroom observation, team teaching, 
                                and reduced teaching loads; and
                    ``(B) may include the establishment of a 
                partnership by a local educational agency with an 
                institution of higher education, another local 
                educational agency, a teacher organization, or another 
                organization.
            ``(32) Technology.--The term `technology' means state-of-
        the-art technology products and services, such as closed 
        circuit television systems, educational television and radio 
        programs and services, cable television, satellite, copper and 
        fiber optic transmission, computer hardware and software, video 
        and audio laser and CD-ROM discs, video and audio tapes, web-
        based learning resources, including online classes, interactive 
        tutorials, and interactive tools and virtual environments for 
        problem-solving, hand-held devices, wireless technology, voice 
        recognition systems, and high-quality digital video, distance 
        learning networks, visualization, modeling, and simulation 
        software, and learning focused digital libraries and 
        information retrieval systems.

``SEC. 4. MAINTENANCE OF EFFORT.

    ``(a) In General.--A local educational agency may receive funds 
under a covered program for any fiscal year only if the State 
educational agency finds that either the combined fiscal effort per 
student or the aggregate expenditures of such agency and the State with 
respect to the provision of free public education by such agency for 
the preceding fiscal year was not less than 90 percent of such combined 
fiscal effort or aggregate expenditures for the second preceding fiscal 
year.
    ``(b) Reduction in Case of Failure To Meet.--
            ``(1) In general.--The State educational agency shall 
        reduce the amount of the allocation of funds under a covered 
        program in any fiscal year in the exact proportion to which a 
        local educational agency fails to meet the requirement of 
        subsection (a) by falling below 90 percent of both the combined 
        fiscal effort per student and aggregate expenditures (using the 
        measure most favorable to such local agency).
            ``(2) Special rule.--No such lesser amount shall be used 
        for computing the effort required under subsection (a) for 
        subsequent years.
    ``(c) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that such a waiver would be 
equitable due to--
            ``(1) exceptional or uncontrollable circumstances such as a 
        natural disaster; or
            ``(2) a precipitous decline in the financial resources of 
        the local educational agency.

``SEC. 5. PROHIBITION REGARDING STATE AID.

    ``A State shall not take into consideration payments under this Act 
(other than under title VIII) in determining the eligibility of any 
local educational agency in such State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 6. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``(a) Private School Participation.--
            ``(1) In general.--Except as otherwise provided in this 
        Act, to the extent consistent with the number of eligible 
        children in a State educational agency, local educational 
        agency, or educational service agency or consortium of such 
        agencies receiving financial assistance under a program 
        specified in subsection (b), who are enrolled in private 
        elementary and secondary schools in such agency or consortium, 
        such agency or consortium shall, after timely and meaningful 
        consultation with appropriate private school officials, provide 
        such children and their teachers or other educational 
        personnel, on an equitable basis, special educational services 
        or other benefits under such program.
            ``(2) Secular, neutral, and nonideological services or 
        benefits.--Educational services or other benefits, including 
        materials and equipment, provided under this section, shall be 
        secular, neutral, and nonideological.
            ``(3) Special rule.--Educational services and other 
        benefits provided under this section for such private school 
        children, teachers, and other educational personnel shall be 
        equitable in comparison to services and other benefits for 
        public school children, teachers, and other educational 
        personnel participating in such program.
            ``(4) Expenditures.--Expenditures for educational services 
        and other benefits provided under this section to eligible 
        private school children, their teachers, and other educational 
        personnel serving such children shall be equal, taking into 
        account the number and educational needs of the children to be 
        served, to the expenditures for participating public school 
        children.
            ``(5) Provision of services.--Such agency or consortium 
        described in subsection (a)(1) may provide such services 
        directly or through contracts with public and private agencies, 
        organizations, and institutions.
    ``(b) Applicability.--
            ``(1) In general.--This section applies to programs under--
                    ``(A) part C of title I (migrant education);
                    ``(B) parts A and C of title II;
                    ``(C) title III; and
                    ``(D) part A of title IV (other than section 4114).
            ``(2) Definition.--For the purposes of this section, the 
        term ``eligible children'' means children eligible for services 
        under a program described in paragraph (1).
    ``(c) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local educational 
        agency, educational service agency or consortium of such 
        agencies shall consult with appropriate private school 
        officials during the design and development of the programs 
        under this Act, on issues such as--
                    ``(A) how the children's needs will be identified;
                    ``(B) what services will be offered;
                    ``(C) how and where the services will be provided; 
                and
                    ``(D) how the services will be assessed.
            ``(2) Timing.--Such consultation shall occur before the 
        agency or consortium makes any decision that affects the 
        opportunities of eligible private school children, teachers, 
        and other educational personnel to participate in programs 
        under this Act.
            ``(3) Discussion required.--Such consultation shall include 
        a discussion of service delivery mechanisms that the agency or 
        consortium could use to provide equitable services to eligible 
        private school children, teachers, administrators, and other 
        staff.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds used to provide 
        services under this section, and title to materials, equipment, 
        and property purchased with such funds, shall be in a public 
        agency for the uses and purposes provided in this Act, and a 
        public agency shall administer such funds and property.
            ``(2) Provision of services.--(A) The provision of services 
        under this section shall be provided--
                    ``(i) by employees of a public agency; or
                    ``(ii) through contract by such public agency with 
                an individual, association, agency, or organization.
            ``(B) In the provision of such services, such employee, 
        person, association, agency, or organization shall be 
        independent of such private school and of any religious 
        organization, and such employment or contract shall be under 
        the control and supervision of such public agency.
            ``(C) Funds used to provide services under this section 
        shall not be commingled with non-Federal funds.

``SEC. 7. STANDARDS FOR BY-PASS.

    ``If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency or 
consortium of such agencies is prohibited from providing for the 
participation in programs of children enrolled in, or teachers or other 
educational personnel from, private elementary and secondary schools, 
on an equitable basis, or if the Secretary determines that such agency 
or consortium has substantially failed or is unwilling to provide for 
such participation, as required by section 6, the Secretary shall--
            ``(1) waive the requirements of that section for such 
        agency or consortium; and
            ``(2) arrange for the provision of equitable services to 
        such children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 6, 8, and 9.

``SEC. 8. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
              CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and 
resolving complaints from parents, teachers, or other individuals and 
organizations concerning violations of section 6 by a State educational 
agency, local educational agency, educational service agency, or 
consortium of such agencies. Such individual or organization shall 
submit such complaint to the State educational agency for a written 
resolution by the State educational agency within a reasonable period 
of time.
    ``(b) Appeals to the Secretary.--Such resolution may be appealed by 
an interested party to the Secretary not later than 30 days after the 
State educational agency resolves the complaint or fails to resolve the 
complaint within a reasonable period of time. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

``SEC. 9. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
            ``(1) In general.--(A) The Secretary shall not take any 
        final action under section 7 until the State educational 
        agency, local educational agency, educational service agency, 
        or consortium of such agencies affected by such action has had 
        an opportunity, for not less than 45 days after receiving 
        written notice thereof, to submit written objections and to 
        appear before the Secretary to show cause why that action 
        should not be taken.
            ``(B) Pending final resolution of any investigation or 
        complaint that could result in a determination under this 
        section, the Secretary may withhold from the allocation of the 
        affected State or local educational agency the amount estimated 
        by the Secretary to be necessary to pay the cost of those 
        services.
            ``(2) Petition for review.--(A) If such affected agency or 
        consortium is dissatisfied with the Secretary's final action 
        after a proceeding under paragraph (1), such agency or 
        consortium may, within 60 days after notice of such action, 
        file with the United States court of appeals for the circuit in 
        which such State is located a petition for review of that 
        action.
            ``(B) A copy of the petition shall be forthwith transmitted 
        by the clerk of the court to the Secretary.
            ``(C) The Secretary upon receipt of the copy of the 
        petition shall file in the court the record of the proceedings 
        on which the Secretary based this action, as provided in 
        section 2112 of title 28, United States Code.
            ``(3) Findings of fact.--(A) The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive, but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence and the 
        Secretary may then make new or modified findings of fact and 
        may modify the Secretary's previous action, and shall file in 
        the court the record of the further proceedings.
            ``(B) Such new or modified findings of fact shall likewise 
        be conclusive if supported by substantial evidence.
            ``(4) Jurisdiction.--(A) Upon the filing of such petition, 
        the court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part.
            ``(B) The judgment of the court shall be subject to review 
        by the Supreme Court of the United States upon certiorari or 
        certification as provided in section 1254 of title 28, United 
        States Code.
    ``(b) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines, in 
consultation with such agency or consortium and representatives of the 
affected private school children, teachers, or other educational 
personnel that there will no longer be any failure or inability on the 
part of such agency or consortium to meet the applicable requirements 
of section 6 or any other provision of this Act.
    ``(c) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994 shall remain 
in effect to the extent the Secretary determines that such 
determination is consistent with the purpose of this section.

``SEC. 10. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR 
              INSTRUCTION.

    ``Nothing contained in this Act shall be construed to authorize the 
making of any payment under this Act for religious worship or 
instruction.

``SEC. 11. APPLICABILITY TO HOME SCHOOLS.

    ``Nothing in this Act shall be construed to affect home schools.

``SEC. 12. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC SCHOOLS.

    ``Nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect of any 
private, religious, or home school, whether or not a home school is 
treated as a private school or home school under State law. This 
section shall not be construed to bar private, religious, or home 
schools from participation in programs or services under this Act.

``SEC. 13. SCHOOL PRAYER.

    ``Any State or local educational agency that is adjudged by a 
Federal court of competent jurisdiction to have willfully violated a 
Federal court order mandating that such local educational agency remedy 
a violation of the constitutional right of any student with respect to 
prayer in public schools, in addition to any other judicial remedies, 
shall be ineligible to receive Federal funds under this Act until such 
time as the local educational agency complies with such order. Funds 
that are withheld under this section shall not be reimbursed for the 
period during which the local educational agency was in willful 
noncompliance.

``SEC. 14. GENERAL PROHIBITIONS.

    ``(a) Prohibition.--None of the funds authorized under this Act 
shall be used--
            ``(1) to develop or distribute materials, or operate 
        programs or courses of instruction directed at youth that are 
        designed to promote or encourage, sexual activity, whether 
        homosexual or heterosexual;
            ``(2) to distribute or to aid in the distribution by any 
        organization of legally obscene materials to minors on school 
        grounds;
            ``(3) to provide sex education or HIV prevention education 
        in schools unless such instruction is age appropriate and 
        includes the health benefits of abstinence; or
            ``(4) to operate a program of condom distribution in 
        schools.
    ``(b) Local Control.--Nothing in this section shall be construed 
to--
            ``(1) authorize an officer or employee of the Federal 
        Government to mandate, direct, review, or control a State, 
        local educational agency, or schools' instructional content, 
        curriculum, and related activities;
            ``(2) limit the application of the General Education 
        Provisions Act;
            ``(3) require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or
            ``(4) create any legally enforceable right.

``SEC. 15. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

    ``Nothing in this Act shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or mandate a 
State or any subdivision thereof to spend any funds or incur any costs 
not paid for under this Act.''.

           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

SEC. 101. POLICY AND PURPOSE.

    Section 1001 (20 U.S.C. 6301) is amended to read as follows:

``SEC. 1001. STATEMENT OF PURPOSE.

    ``The purpose of this title is to enable schools to provide 
opportunities for children served under this title to acquire the 
knowledge and skills contained in the challenging State content 
standards and to meet the challenging State student performance 
standards developed for all children. This purpose should be 
accomplished by--
            ``(1) ensuring high standards for all children and aligning 
        the efforts of States, local educational agencies, and schools 
        to help children served under this title to reach such 
        standards;
            ``(2) providing children an enriched and accelerated 
        educational program, including the use of schoolwide programs 
        or additional services that increase the amount and quality of 
        instructional time so that children served under this title 
        receive at least the classroom instruction that other children 
        receive;
            ``(3) promoting schoolwide reform and ensuring access of 
        children (from the earliest grades, including prekindergarten) 
        to effective instructional strategies and challenging academic 
        content that includes intensive complex thinking and problem-
        solving experiences;
            ``(4) significantly elevating the quality of instruction by 
        providing staff in participating schools with substantial 
        opportunities for professional development;
            ``(5) coordinating services under all parts of this title 
        with each other, with other educational services, and to the 
        extent feasible, with other agencies providing services to 
        youth, children, and families that are funded from other 
        sources;
            ``(6) affording parents substantial and meaningful 
        opportunities to participate in the education of their children 
        at home and at school;
            ``(7) distributing resources in amounts sufficient to make 
        a difference to local educational agencies and schools where 
        needs are greatest;
            ``(8) improving and strengthening accountability, teaching, 
        and learning by using State assessment systems designed to 
        measure how well children served under this title are achieving 
        challenging State student performance standards expected of all 
        children; and
            ``(9) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for greater 
        responsibility for student performance.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    Section 1002 (20 U.S.C. 6302) is amended to read as follows:

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, other than section 1120(e), there are authorized to be 
appropriated $15,000,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 6 succeeding fiscal years.
    ``(b) Reading First.--
            ``(1) Even start.--For the purpose of carrying out subpart 
        1 of part B, there are authorized to be appropriated 
        $250,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(2) Reading first.--For the purpose of carrying out 
        subpart 2 of part B, there are authorized to be appropriated 
        $900,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(3) Early reading first.--For the purpose of carrying out 
        subpart 3 of part B, there are authorized to be appropriated 
        $75,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated $400,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the purpose of 
carrying out part D, there are authorized to be appropriated 
$50,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 6 succeeding fiscal years.
    ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $15,000,000 for fiscal 
year 2002, $15,000,000 for fiscal year 2003, and $5,000,000 for fiscal 
year 2004.
    ``(f) Federal Activities.--
            ``(1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $10,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(2) Section 1502.--For the purpose of carrying out 
        section 1502, there are authorized to be appropriated 
        $25,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
    ``(g) 21st Century Learning Centers.--For the purpose of carrying 
out part F, there are authorized to be appropriated $1,500,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(h) Comprehensive School Reform.--For the purpose of carrying out 
part G, there are authorized to be appropriated $250,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(i) School Dropout Prevention.--For the purpose of carrying out 
part H, there are authorized to be appropriated $250,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years, of which--
            ``(1) 10 percent shall be available to carry out subpart 1 
        of part H for each fiscal year; and
            ``(2) 90 percent shall be available to carry out subpart 2 
        of part H for each fiscal year.''.

SEC. 103. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

    Section 1003 (20 U.S.C. 6303) is amended to read as follows:

``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

    ``(a) State Reservation.--Each State educational agency shall 
reserve 3.5 percent of the amount the State educational agency receives 
under subpart 2 of part A for each of the fiscal years 2002 and 2003, 
and 5 percent of that amount for each of the fiscal years 2004 through 
2008, to carry out subsection (b) and to carry out the State 
educational agency's responsibilities under sections 1116 and 1117, 
including carrying out the State educational agency's statewide system 
of technical assistance and support for local educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) for any 
fiscal year, the State educational agency shall make available not less 
than 50 percent of that amount directly to local educational agencies 
for schools identified for school improvement, corrective action, or 
reconstitution under section 1116(c).''.

           PART A--BETTER RESULTS FOR DISADVANTAGED CHILDREN

SEC. 111. STATE PLANS.

    Section 1111 (20 U.S.C. 6311) is amended to read as follows:

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
            ``(1) In general.--Any State desiring to receive a grant 
        under this part shall submit to the Secretary, by March 1, 
        2002, a plan that satisfies the requirements of this section 
        and that is coordinated with other programs under this Act, the 
        Individuals with Disabilities Education Act, the Carl D. 
        Perkins Vocational and Technical Education Act of 1998, the 
        Adult Education and Family Literacy Act, and the Head Start 
        Act.
            ``(2) Consolidation plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidation plan 
        under section 5506.
    ``(b) Standards, Assessments, and Accountability.--
            ``(1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has adopted challenging content 
        standards and challenging student performance standards that 
        will be used by the State, its local educational agencies, and 
        its schools to carry out this part, except that a State shall 
        not be required to submit such standards to the Secretary.
            ``(B) The standards required by subparagraph (A) shall be 
        the same standards that the State applies to all schools and 
        children in the State.
            ``(C) The State shall have the standards described in 
        subparagraph (A) for all public elementary school and secondary 
        school children served under this part in subjects determined 
        by the State, but including at least mathematics, reading or 
        language arts, history, and science, which shall include the 
        same knowledge skills, and levels of achievement expected of 
        all children, except that no State shall be required to meet 
        the requirements under this part relating to history or science 
        standards until the beginning of the 2005-2006 school year.
            ``(D) Standards under this paragraph shall include--
                    ``(i) challenging content standards in academic 
                subjects that--
                            ``(I) specify what children are expected to 
                        know and be able to do;
                            ``(II) contain coherent and rigorous 
                        content; and
                            ``(III) encourage the teaching of advanced 
                        skills; and
                    ``(ii) challenging student performance standards 
                that--
                            ``(I) are aligned with the State's content 
                        standards;
                            ``(II) describe 2 levels of high 
                        performance, proficient and advanced, that 
                        determine how well children are mastering the 
                        material in the State content standards; and
                            ``(III) describe a third level of 
                        performance, partially proficient, to provide 
                        complete information about the progress of the 
                        lower performing children toward achieving to 
                        the proficient and advanced levels of 
                        performance.
            ``(E) For the subjects in which students served under this 
        part will be taught, but for which a State is not required by 
        subparagraphs (A), (B), and (C) to develop standards, and has 
        not otherwise developed standards, the State plan shall 
        describe a strategy for ensuring that such students are taught 
        the same knowledge and skills and held to the same expectations 
        as are all children.
            ``(2) Accountability.--(A) Each State plan shall 
        demonstrate that the State has developed and is implementing a 
        single, statewide State accountability system that has been or 
        will be effective in ensuring that all local educational 
        agencies, elementary schools, and secondary schools make 
        adequate yearly progress as defined under subparagraph (B). 
        Each State accountability system shall--
                    ``(i) be based on the standards and assessments 
                adopted under paragraphs (1) and (3) and take into 
                account the performance of all students;
                    ``(ii) be used for all schools or all local 
                educational agencies in the State, except that schools 
                and local educational agencies not participating under 
                this part are not subject to the requirements of 
                section 1116(c);
                    ``(iii) include performance indicators for local 
                educational agencies and schools to measure student 
                performance consistent with subparagraph (B); and
                    ``(iv) include sanctions and rewards, such as 
                bonuses or recognition, the State will use to hold 
                local educational agencies and schools accountable for 
                student achievement and performance and for ensuring 
                that the agencies and schools make adequate yearly 
                progress in accordance with the State's definition 
                under subparagraph (B).
            ``(B) Each State plan shall demonstrate, based on 
        assessments described in paragraph (3), what constitutes 
        adequate yearly progress of the State, and of schools and local 
        educational agencies in the State, toward enabling all students 
        to meet the State's student performance standards. Adequate 
        yearly progress shall be defined by the State in a manner 
        that--
                    ``(i) applies the same high standards of academic 
                performance to all students in the State;
                    ``(ii) is statistically valid and reliable;
                    ``(iii) results in continuous and substantial 
                academic improvement for all students;
                    ``(iv) measures the progress of schools and local 
                educational agencies based primarily on the assessments 
                described in paragraph (3);
                    ``(v) includes annual measurable objectives for 
                continuing and significant improvement in--
                            ``(I) the achievement of all students; and
                            ``(II) the achievement of economically 
                        disadvantaged students, students with 
                        disabilities, students with limited English 
                        proficiency, migrant students, students by 
                        racial and ethnic group, and students by 
                        gender, except that such disaggregation shall 
                        not be required in any case in which the number 
                        of students in a category is insufficient to 
                        yield statistically reliable information or the 
                        results would reveal individually identifiable 
                        information about an individual student;
                    ``(vi) includes a timeline for ensuring that each 
                group of students described in clause (v) meets or 
                exceeds the State's proficient level of performance on 
                the State assessment used for the purposes of this 
                section and section 1116 within 10 years from the date 
                of enactment of the Better Education for Students and 
                Teachers Act; and
                    ``(vii) includes school completion or dropout rates 
                and at least 1 other academic indicator, as determined 
                by the States, except that inclusion of such indicators 
                shall not decrease the number of schools or local 
                educational agencies that would otherwise be subject to 
                identification for improvement or corrective action if 
                the discretionary indicators were not included.
            ``(C) Each State shall ensure that in developing its plan, 
        the State diligently seeks public comment from a range of 
        institutions and individuals in the State with an interest in 
        improved student achievement and performance, including 
        parents, teachers, local educational agencies, pupil services 
        personnel, administrators (including those described in other 
        parts of this title), and other staff, and that the State will 
        continue to make a substantial effort to ensure that 
        information under this part is widely known and understood by 
        the public, parents, teachers, and school administrators 
        throughout the State. Such efforts shall include, at a minimum, 
        publication of such information and explanatory text, broadly 
        to the public through such means as the Internet, the media, 
        and public agencies.
            ``(D) If a State educational agency provides evidence, 
        which is satisfactory to the Secretary, that neither the State 
        educational agency nor any other State government official, 
        agency, or entity has sufficient authority, under State law, to 
        adopt curriculum content and student performance standards, and 
        assessments aligned with such standards, which will be 
        applicable to all students enrolled in the State's public 
        schools, the State educational agency may meet the requirements 
        of this subsection by--
                    ``(i) adopting standards and assessments that meet 
                the requirements of this subsection, on a statewide 
                basis, and limiting the applicability of the standards 
                and assessments to students served under this part; or
                    ``(ii) adopting and implementing policies that 
                ensure that each local educational agency in the State 
                which receives a grant under this part will adopt 
                curriculum content and student performance standards, 
                and assessments aligned with such standards, which meet 
                all of the criteria of this subsection.
            ``(E) Each State plan shall describe the standard the State 
        will use for judging statistically significant educational 
        progress for purposes of implementing the reconstitution 
        provisions contained in section 1116 and, in so doing, describe 
        how the State will take into account issues such as the size of 
        a school and the mobility of the students in a school.
            ``(3) Assessments.--Each State plan shall demonstrate that 
        the State, in consultation with local educational agencies, has 
        a system of high-quality, yearly student assessments in 
        subjects that include, at a minimum, mathematics, reading or 
        language arts, and science that will be used as the primary 
        means of determining the yearly performance of each local 
        educational agency and school in enabling all children to meet 
        the State's student performance standards, except that no State 
        shall be required to meet the requirements of this part 
        relating to science assessments until the beginning of the 
        2007-2008 school year. Such assessments shall--
                    ``(A) be the same assessments used to measure the 
                performance of all children;
                    ``(B) be aligned with the State's challenging 
                content and student performance standards and provide 
                coherent information about student attainment of such 
                standards;
                    ``(C) be used for purposes for which such 
                assessments are valid and reliable, and be consistent 
                with relevant, nationally recognized professional and 
                technical standards for such assessments;
                    ``(D) measure the proficiency of students in the 
                academic subjects in which a State has adopted 
                challenging content and student performance standards 
                and be administered not less than 1 or more times 
                during--
                            ``(i) grades 3 through 5;
                            ``(ii) grades 6 through 9; and
                            ``(iii) grades 10 through 12;
                    ``(E) involve multiple up-to-date measures of 
                student performance, including measures that assess 
                higher order thinking skills and understanding;
                    ``(F) beginning not later than school year 2005-
                2006, measure the annual performance of students 
                against the challenging State content and student 
                performance standards in grades 3 through 8 in at least 
                mathematics and reading or language arts, except that--
                            ``(i) the Secretary may provide the State 1 
                        additional year if the State demonstrates that 
                        exceptional or uncontrollable circumstances, 
                        such as a natural disaster or a precipitous and 
                        unforeseen decline in the financial resources 
                        of the local educational agency or school, 
                        prevented full implementation of the 
                        assessments by that deadline and that the State 
                        will complete the implementation within the 
                        additional 1-year period; and
                            ``(ii) a State shall not required to 
                        conduct any assessments under this 
                        subparagraph, that were not required on the day 
                        preceding the date of enactment of the Better 
                        Education for Students and Teachers Act, in any 
                        school year, if the amount made available to 
                        the State under section 6403(a) for use in that 
                        school year for such assessments is less than 
                        50 percent of the costs of administering such 
                        assessments by the State in the previous school 
                        year, or if such assessments were not 
                        administered in the previous school year (in 
                        accordance with this clause), in the most 
                        recent school year in which such assessments 
                        were administered;
                    ``(G) provide for--
                            ``(i) the participation in such assessments 
                        of all students;
                            ``(ii) the reasonable adaptations and 
                        accommodations for students with disabilities 
                        defined under section 602(3) of the Individuals 
                        with Disabilities Education Act necessary to 
                        measure the achievement of such students 
                        relative to State content and State student 
                        performance standards;
                            ``(iii) the inclusion of limited English 
                        proficient students who shall be assessed, to 
                        the extent practicable, in the language and 
                        form most likely to yield accurate and reliable 
                        information on what such students know and can 
                        do in content areas; and
                            ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        reading or language arts of any student who has 
                        attended school in the United States (excluding 
                        the Commonwealth of Puerto Rico) for 3 or more 
                        consecutive school years, except that--
                                    ``(I) if the local educational 
                                agency determines, on a case-by-case 
                                individual basis, that assessments in 
                                another language and form would likely 
                                yield more accurate and reliable 
                                information on what such student knows 
                                and can do, the local educational 
                                agency may assess such student in the 
                                appropriate language other than English 
                                for 1 additional year; or
                                    ``(II) in extraordinary situations, 
                                if the local educational agency 
                                determines, on a case-by-case 
                                individual basis, that assessments in 
                                another language and form would likely 
                                yield more accurate and reliable 
                                information, the local educational 
                                agency may assess such student in the 
                                appropriate language for additional 
                                years;
                    ``(H) include students who have attended schools in 
                a local educational agency for a full academic year but 
                have not attended a single school for a full academic 
                year, except that the performance of students who have 
                attended more than 1 school in the local educational 
                agency in any academic year shall be used only in 
                determining the progress of the local educational 
                agency;
                    ``(I) produce individual student interpretive and 
                descriptive reports to be provided to parents of all 
                students, which shall include scores, or other 
                information on the attainment of student performance 
                standards, such as measures of student course work over 
                time, student attendance rates, student dropout rates, 
                and student participation in advanced level courses; 
                and
                    ``(J) enable results to be disaggregated within 
                each State, local educational agency, and school by 
                gender, by racial and ethnic group, by English 
                proficiency status, by migrant status, by students with 
                disabilities as compared to nondisabled students, and 
                by economically disadvantaged students as compared to 
                students who are not economically disadvantaged, except 
                that in the case of a local educational agency or a 
                school such disaggregation shall not be required in a 
                case in which the number of students in a category is 
                insufficient to yield statistically reliable 
                information or the results would reveal individually 
                identifiable information about an individual student.
            ``(4) Special rules.--(A) Additional measures that do not 
        meet the requirements of paragraph (3)(C) may be included in 
        the assessments if a State includes in the State plan 
        information regarding the State's efforts to validate such 
        measures.
            ``(B) States may measure the proficiency of students in the 
        academic subjects in which a State has adopted challenging 
        content and student performance standards 1 or more times 
        during grades kindergarten through 2.
            ``(5) Language assessments.--Each State plan shall identify 
        the languages other than English that are present in the 
        participating student population and indicate the languages for 
        which yearly student assessments are not available and are 
        needed. The State shall make every effort to develop such 
        assessments and may request assistance from the Secretary if 
        linguistically accessible assessment measures are needed. Upon 
        request, the Secretary shall assist with the identification of 
        appropriate assessment measures in the needed languages but 
        shall not mandate a specific assessment or mode of instruction.
            ``(6) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will help 
                each local educational agency and school affected by 
                the State plan to develop the capacity to comply with 
                each of the requirements of sections 1112(c)(4), 
                1114(b), and 1115(c) that is applicable to such agency 
                or school; and
                    ``(B) such other factors the State deems 
                appropriate to provide students an opportunity to 
                achieve the knowledge and skills described in the 
                challenging content standards adopted by the State.
            ``(7) Ed-flex.--A State shall not be eligible for 
        designation under the Ed-Flex Partnership Act of 1999 until the 
        State develops assessments aligned with the State's content 
        standards in at least mathematics and reading or language arts.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
            ``(1) the State will meet the requirements of subsection 
        (i)(1) and, beginning with the 2002-2003 school year, will 
        produce the annual State report cards described in such 
        subsection;
            ``(2) the State will, beginning in school year 2002-2003, 
        participate in annual State assessments of 4th and 8th grade 
        reading and mathematics under the National Assessment of 
        Educational Progress carried out under section 411(b)(2) of the 
        National Education Statistics Act of 1994 if the Secretary pays 
        the costs of administering such assessments;
            ``(3) the State educational agency will work with other 
        agencies, including educational service agencies or other local 
        consortia, and institutions to provide technical assistance to 
        local educational agencies and schools to carry out the State 
        educational agency's responsibilities under this part, 
        including technical assistance in providing professional 
        development under section 1119, technical assistance under 
        section 1117, and parental involvement under section 1118;
            ``(4)(A) where educational service agencies exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as through a consortium of local educational 
        agencies;
            ``(5) the State educational agency will notify local 
        educational agencies and the public of the content and student 
        performance standards and assessments developed under this 
        section, and of the authority to operate schoolwide programs, 
        and will fulfill the State educational agency's 
        responsibilities regarding local educational agency improvement 
        and school improvement under section 1116, including such 
        corrective actions as are necessary;
            ``(6) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual schools participating in a program 
        assisted under this part;
            ``(7) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at all, hinder 
        the ability of States to hold local educational agencies and 
        schools accountable for student academic performance;
            ``(8) the State educational agency will encourage schools 
        to consolidate funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs under 
        section 1114;
            ``(9) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that schools can easily 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide programs under section 1114;
            ``(10) the State educational agency has involved the 
        committee of practitioners established under section 1903(b) in 
        developing the plan and monitoring its implementation;
            ``(11) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under subpart 3 of part B of title 
        V and, if the State is an Ed-Flex Partnership State, waivers 
        under the Education Flexibility Partnership Act of 1999; and
            ``(12) the State will coordinate activities funded under 
        this part with other Federal activities as appropriate.
    ``(d) Parental Involvement.--Each State plan shall describe how the 
State will support the collection and dissemination to local 
educational agencies and schools of effective parental involvement 
practices. Such practices shall--
            ``(1) be based on the most current research on effective 
        parental involvement that fosters achievement to high standards 
        for all children; and
            ``(2) be geared toward lowering barriers to greater 
        participation in school planning, review, and improvement 
        experienced by parents.
    ``(e) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) establish a peer review process to assist in 
                the review of State plans;
                    ``(B) appoint individuals to the peer review 
                process who are representative of parents, teachers, 
                State educational agencies, local educational agencies, 
                and who are familiar with educational standards, 
                assessments, accountability, and other diverse 
                educational needs of students;
                    ``(C) approve a State plan within 120 days of its 
                submission unless the Secretary determines that the 
                plan does not meet the requirements of this section;
                    ``(D) if the Secretary determines that the State 
                plan does not meet the requirements of subsection (a), 
                (b), or (c), immediately notify the State of such 
                determination and the reasons for such determination;
                    ``(E) not decline to approve a State's plan 
                before--
                            ``(i) offering the State an opportunity to 
                        revise its plan;
                            ``(ii) providing technical assistance in 
                        order to assist the State to meet the 
                        requirements under subsections (a), (b), and 
                        (c); and
                            ``(iii) providing a hearing; and
                    ``(F) have the authority to disapprove a State plan 
                for not meeting the requirements of this part, but 
                shall not have the authority to require a State, as a 
                condition of approval of the State plan, to include in, 
                or delete from, such plan 1 or more specific elements 
                of the State's content standards or to use specific 
                assessment instruments or items.
            ``(2) State revisions.--States shall revise their plans if 
        necessary to satisfy the requirements of this section.
    ``(f) Provision of Testing Results to Parents and Teachers.--Each 
State plan shall demonstrate how the State educational agency will 
assist local educational agencies in assuring that results from the 
assessments required under this section will be provided to parents and 
teachers as soon as is practicably possible after the test is taken, in 
a manner and form that is understandable and easily accessible to 
parents and teachers.
    ``(g) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.
            ``(2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption of new 
        State content standards and State student performance 
        standards, new assessments, or a new definition of adequate 
        progress, the State shall submit such information to the 
        Secretary.
    ``(h) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State, local educational agency, or 
school's specific instructional content or student performance 
standards and assessments, curriculum, or program of instruction, as a 
condition of eligibility to receive funds under this part.
    ``(i) Penalty.--If a State fails to meet the statutory deadlines 
for demonstrating that it has in place challenging content standards 
and student performance standards, and a system for measuring and 
monitoring adequate yearly progress, the Secretary shall withhold funds 
for State administration and activities under section 1117 until the 
Secretary determines that the State plan meets the requirements of this 
section.
    ``(j) Reports.--
            ``(1) Annual state report card.--
                    ``(A) In general.--Not later than the beginning of 
                the 2002-2003 school year, a State that receives 
                assistance under this Act shall prepare and disseminate 
                an annual State report card.
                    ``(B) Implementation.--The State report card shall 
                be--
                            ``(i) concise; and
                            ``(ii) presented in a format and manner 
                        that parents can understand, and which, to the 
                        extent practicable, shall be in a language the 
                        parents can understand.
                    ``(C) Public dissemination.--The State shall widely 
                disseminate the information described in subparagraph 
                (D) to all schools and local educational agencies in 
                the State and make the information broadly available 
                through public means, such as posting on the Internet, 
                distribution to the media, and distribution through 
                public agencies.
                    ``(D) Required information.--The State shall 
                include in its annual State report card--
                            ``(i) information, in the aggregate, on 
                        student achievement and performance at each 
                        proficiency level on the State assessments 
                        described in subsection (b)(3)(F) 
                        (disaggregated by race, ethnicity, gender, 
                        disability status, migrant status, English 
                        proficiency, and socioeconomic status);
                            ``(ii) the percentage of students not 
                        tested (disaggregated by the same categories 
                        described in clause (i));
                            ``(iii) such other information (such as 
                        dropout, graduation, and school attendance 
                        rates, completion of advanced placement 
                        courses, professional qualifications of 
                        teachers, and average class size by grade 
                        level) as the State believes will best provide 
                        parents, students, and other members of the 
                        public with information on the progress of each 
                        of the State's public schools;
                            ``(iv) the number and names of each school 
                        identified for school improvement, including 
                        schools identified under section 1116(c); and
                            ``(v) information on the performance of 
                        local educational agencies in the State 
                        regarding making adequate yearly progress, 
                        including the number and percentage of schools 
                        in the State that did not make adequate yearly 
                        progress.
            ``(2) Annual local educational agency report cards.--
                    ``(A) In general.--Not later than the beginning of 
                the 2002-2003 school year, a local educational agency 
                that receives assistance under this Act shall prepare 
                and disseminate an annual local educational agency 
                report card.
                    ``(B) Minimum requirements.--The State shall ensure 
                that each local educational agency collects appropriate 
                data and includes in the local educational agency's 
                annual report the information described in paragraph 
                (1)(D) as applied to the local educational agency and 
                each school served by the local educational agency, 
                and--
                            ``(i) in the case of a local educational 
                        agency--
                                    ``(I) the number and percentage of 
                                schools identified for school 
                                improvement and how long they have been 
                                so identified, including schools 
                                identified under section 1116(c); and
                                    ``(II) information that shows how 
                                students served by the local 
                                educational agency perform on the 
                                statewide assessment compared to 
                                students in the State as a whole; and
                            ``(ii) in the case of a school--
                                    ``(I) whether the school has been 
                                identified for school improvement; and
                                    ``(II) information that shows how 
                                the school's students performed on the 
                                statewide assessment compared to 
                                students in the local educational 
                                agency and the State as a whole.
                    ``(C) Other information.--A local educational 
                agency may include in its annual reports any other 
                appropriate information whether or not such information 
                is included in the annual State report.
                    ``(D) Data.--A local educational agency or school 
                shall only include in its annual local educational 
                agency report card data that is sufficient to yield 
                statistically reliable information, as determined by 
                the State, and does not reveal individually 
                identifiable information about an individual student.
                    ``(E) Public dissemination.--The local educational 
                agency shall, not later than the beginning of the 2002-
                2003 school year, publicly disseminate the information 
                described in this paragraph to all schools in the 
                school district and to all parents of students 
                attending those schools, and make the information 
                broadly available through public means, such as posting 
                on the Internet, distribution to the media, and 
                distribution through public agencies, except that if a 
                local educational agency issues a report card for all 
                students, the local educational agency may include the 
                information under this section as part of such report.
            ``(3) Preexisting report cards.--A State or local 
        educational agency that was providing public report cards on 
        the performance of students, schools, local educational 
        agencies, or the State, may continue to use those reports for 
        the purpose of this subsection, if such report is modified, as 
        may be necessary, to contain the information required by this 
        subsection.
            ``(4) Annual state report to the secretary.--Each State 
        receiving assistance under this Act shall report annually to 
        the Secretary, and make widely available within the State--
                    ``(A) beginning with school year 2001-2002, 
                information on the State's progress in developing and 
                implementing the assessments described in subsection 
                (b)(3);
                    ``(B) beginning not later than school year 2004-
                2005, information on the achievement of students on the 
                assessments required by that section, including the 
                disaggregated results for the categories of students 
                identified in subsection (b)(2)(B)(v)(II);
                    ``(C) the number and names of each school 
                identified for school improvement, including schools 
                identified under section 1116(c), the reason why each 
                school was so identified, and the measures taken to 
                address the performance problems of such schools; and
                    ``(D) in any year before the State begins to 
                provide the information described in subparagraph (B), 
                information on the results of student assessments 
                (including disaggregated results) required under this 
                section.
            ``(5) Parents right-to-know.--
                    ``(A) Qualifications.--A local educational agency 
                that receives funds under this part shall provide and 
                notify the parents of each student attending any school 
                receiving funds under this part that the parents may 
                request, and will be provided on request, information 
                regarding the professional qualifications of the 
                student's classroom teachers, including, at a minimum, 
                the following:
                            ``(i) Whether the teacher has met State 
                        qualification and licensing criteria for the 
                        grade levels and subject areas in which the 
                        teacher provides instruction.
                            ``(ii) Whether the teacher is teaching 
                        under emergency or other provisional status 
                        through which State qualification or licensing 
                        criteria have been waived.
                            ``(iii) The baccalaureate degree major of 
                        the teacher and any other graduate 
                        certification or degree held by the teacher, 
                        and the field of discipline of the 
                        certification or degree.
                            ``(iv) Whether the child is provided 
                        services by paraprofessionals and the 
                        qualifications of such paraprofessional.
                    ``(B) Additional information.--A school that 
                receives funds under this part shall provide to parents 
                information on the level of performance, of the 
                individual student for whom they are the parent, in 
                each of the State assessments as required under this 
                part.
                    ``(C) Format.--The notice and information provided 
                to parents shall be in an understandable and uniform 
                format.
    ``(k) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(l) Technical Assistance.--The Secretary shall provide a State 
educational agency, at the State educational agency's request, 
technical assistance in meeting the requirements of this section, 
including the provision of advice by experts in the development of 
high-quality assessments and other relevant areas.''.

SEC. 112. LOCAL EDUCATIONAL AGENCY PLANS.

    Section 1112 (20 U.S.C. 6312) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``the Goals'' and 
                all that follows through ``section 14306'' and 
                inserting ``the Individuals with Disabilities Education 
                Act, the Carl D. Perkins Vocational and Technical 
                Education Act of 1998, the Head Start Act, and other 
                Acts, as appropriate''; and
                    (B) in paragraph (2), by striking ``14304'' and 
                inserting ``5504'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by inserting 
                        ``and'' after the semicolon; and
                            (iii) by adding at the end the following:
                    ``(D) determine the literacy levels of first 
                graders and their needs for interventions, including a 
                description of how the agency will ensure that any such 
                assessments--
                            ``(i) are developmentally appropriate;
                            ``(ii) use multiple measures to provide 
                        information about the variety of skills that 
                        research has identified as leading to early 
                        reading; and
                            ``(iii) are administered to students in the 
                        language most likely to yield valid results;'';
                    (B) in paragraph (3), by inserting ``, which 
                strategy shall be coordinated with activities under 
                title II if the local educational agency receives funds 
                under title II'' before the semicolon;
                    (C) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``programs, 
                                vocational'' and inserting ``programs 
                                and vocational''; and
                                    (II) by striking ``, and school-to-
                                work transition programs''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``served under part 
                                C'' and all that follows through 
                                ``1994''; and
                                    (II) by striking ``served under 
                                part D''; and
                    (D) by striking paragraph (9) and inserting the 
                following:
            ``(9) where appropriate, a description of how the local 
        educational agency will use funds under this part to support 
        early childhood education programs under section 1120B; and
            ``(10) a description of the strategy the local educational 
        agency will use to implement effective parental involvement 
        under section 1118.'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Assurances.--Each local educational agency plan shall provide 
assurances that the local educational agency will--
            ``(1) inform eligible schools and parents of schoolwide 
        project authority;
            ``(2) provide technical assistance and support to 
        schoolwide programs;
            ``(3) work in consultation with schools as the schools 
        develop the schools' plans pursuant to section 1114 and assist 
        schools as the schools implement such plans or undertake 
        activities pursuant to section 1115 so that each school can 
        make adequate yearly progress toward meeting the State content 
        standards and State student performance standards;
            ``(4) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(5);
            ``(5) work in consultation with schools as the schools 
        develop and implement their plans or activities under sections 
        1118 and 1119;
            ``(6) coordinate and collaborate, to the extent feasible 
        and necessary as determined by the local educational agency, 
        with other agencies providing services to children, youth, and 
        families, including health and social services;
            ``(7) provide services to eligible children attending 
        private elementary and secondary schools in accordance with 
        section 1120, and timely and meaningful consultation with 
        private school officials regarding such services;
            ``(8) take into account the experience of model programs 
        for the educationally disadvantaged, and the findings of 
        relevant research indicating that services may be most 
        effective if focused on students in the earliest grades at 
        schools that receive funds under this part;
            ``(9) comply with the requirements of section 1119 
        regarding professional development;
            ``(10) inform eligible schools of the local educational 
        agency's authority to obtain waivers on the school's behalf 
        under subpart 3 of part B of title V, and if the State is an 
        Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999;
            ``(11) ensure, through incentives for voluntary transfers, 
        the provision of professional development, recruitment 
        programs, or other effective strategies, that low-income 
        students and minority students are not taught at higher rates 
        than other students by unqualified, out-of-field, or 
        inexperienced teachers;
            ``(12) use the results of the student assessments required 
        under section 1111(b)(3), and other measures or indicators 
        available to the agency, to review annually the progress of 
        each school served by the agency and receiving funds under this 
        title to determine whether or not all of the schools are making 
        the annual progress necessary to ensure that all students will 
        meet the State's proficient level of performance on the State 
        assessments described in section 1111(b)(3) within 10 years of 
        the date of enactment of the Better Education for Students and 
        Teachers Act; and
            ``(13) ensure that the results from the assessments 
        required under section 1111 will be provided to parents and 
        teachers as soon as is practicably possible after the test is 
        taken, in a manner and form that is understandable and easily 
        accessible to parents and teachers.''; and
            (4) in subsection (e)--
                    (A) in paragraph (1), by striking ``, except that'' 
                and all that follows through ``finally approved by the 
                State educational agency''; and
                    (B) in paragraph (3)--
                            (i) by striking ``professional 
                        development''; and
                            (ii) by striking ``section 1119'' and 
                        inserting ``sections 1118 and 1119''.

SEC. 113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    Section 1113(b)(1) (20 U.S.C. 6313(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (C)(iii), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) designate and serve a school attendance area 
                or school that is not an eligible school attendance 
                area under subsection (a)(2), but that was an eligible 
                school attendance area and was served in the fiscal 
                year preceding the fiscal year for which the 
                determination is made, but only for 1 additional fiscal 
                year.''.

SEC. 114. SCHOOLWIDE PROGRAMS.

    Section 1114 (20 U.S.C. 6314) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--A local educational agency may use funds 
        under this part, together with other Federal, State, and local 
        funds, to upgrade the entire educational program of a school 
        that serves an eligible school attendance area in which not 
        less than 40 percent of the children are from low-income 
        families, or not less than 40 percent of the children enrolled 
        in the school are from such families, for the initial year of 
        the schoolwide program.''; and
                    (B) in paragraph (4)--
                            (i) by amending the heading to read as 
                        follows: ``Exemption from statutory and 
                        regulatory requirements.--''; and
                            (ii) by adding at the end the following:
            ``(C) A school that chooses to use funds from such other 
        programs under this section shall not be required to maintain 
        separate fiscal accounting records, by program, that identify 
        the specific activities supported by those particular funds as 
        long as the school maintains records that demonstrate that the 
        schoolwide program, considered as a whole, addresses the intent 
        and purposes of each of the programs that were consolidated to 
        support the schoolwide program.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)(vii), by striking 
                        ``, if any, approved under title III of the 
                        Goals 2000: Educate America Act''; and
                            (ii) in subparagraph (E), by striking ``, 
                        such as family literacy services'' and 
                        inserting ``(including activities described in 
                        section 1118), such as family literacy 
                        services, in-school volunteer opportunities, or 
                        parent membership on school-based leadership or 
                        management teams.''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``Improving America's 
                                Schools Act of 1994'' and inserting 
                                ``Better Education for Students and 
                                Teachers Act''; and
                                    (II) in clause (iv), by inserting 
                                ``in a language the family can 
                                understand'' after ``assessment 
                                results''; and
                            (ii) in subparagraph (C)--
                                    (I) in clause (i)(II), by striking 
                                ``Improving America's Schools Act of 
                                1994'' and inserting ''Better Education 
                                for Students and Teachers Act''; and
                                    (II) in clause (v), by striking 
                                ``the School-to-Work Opportunities Act 
                                of 1994''.

SEC. 115. TARGETED ASSISTANCE SCHOOLS.

    Section 1115 (20 U.S.C. 6315) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A)(ii), by striking ``, yet'' 
                and all that follows through ``setting''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (B), insert ``or in 
                        early childhood education services under this 
                        title,'' after ``program,''; and
                            (ii) in subparagraph (C)(i), by striking 
                        ``under part D (or its predecessor 
                        authority)''; and
            (2) in subsection (c)(1)--
                    (A) by amending subparagraph (G) to read as 
                follows:
                    ``(G) provide opportunities for professional 
                development with resources provided under this part, 
                and to the extent practicable, from other sources, for 
                teachers, principals, administrators, 
                paraprofessionals, pupil services personnel, and 
                parents, who work with participating children in 
                programs under this section or in the regular education 
                program; and''; and
                    (B) in subparagraph (H), by striking ``, such as 
                family literacy services'' and inserting ``(including 
                activities described in section 1118), such as family 
                literacy services, in-school volunteer opportunities, 
                or parent membership on school-based leadership or 
                management teams.''.

SEC. 116. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by inserting after section 1115A (20 U.S.C. 6316) the following:

``SEC. 1115B. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

    ``(a) In General.--If a student is eligible to be served under 
section 1115(b), or attends a school eligible for a schoolwide program 
under section 1114, and--
            ``(1) becomes a victim of a violent criminal offense while 
        in or on the grounds of a public elementary school or secondary 
        school that the student attends and that receives assistance 
        under this part, then the local educational agency shall allow 
        such student to transfer to another public school or public 
        charter school in the same State as the school where the 
        criminal offense occurred, that is selected by the student's 
        parent unless allowing such transfer is prohibited--
                    ``(A) under the provisions of a State or local law; 
                or
                    ``(B) by a local educational agency policy that is 
                approved by a local school board; or
            ``(2) the public school that the student attends and that 
        receives assistance under this part has been designated as an 
        unsafe public school, then the local educational agency may 
        allow such student to transfer to another public school or 
        public charter school in the same State as the school where the 
        criminal offense occurred, that is selected by the student's 
        parent.
    ``(b) State Educational Agency Determinations.--
            ``(1) The State educational agency shall determine, based 
        upon State law, what actions constitute a violent criminal 
        offense for purposes of this section.
            ``(2) The State educational agency shall determine which 
        schools in the State are unsafe public schools.
            ``(3) The term `unsafe public schools' means a public 
        school that has serious crime, violence, illegal drug, and 
        discipline problems, as indicated by conditions that may 
        include high rates of--
                    ``(A) expulsions and suspensions of students from 
                school;
                    ``(B) referrals of students to alternative schools 
                for disciplinary reasons, to special programs or 
                schools for delinquent youth, or to juvenile court;
                    ``(C) victimization of students or teachers by 
                criminal acts, including robbery, assault and homicide;
                    ``(D) enrolled students who are under court 
                supervision for past criminal behavior;
                    ``(E) possession, use, sale or distribution of 
                illegal drugs;
                    ``(F) enrolled students who are attending school 
                while under the influence of illegal drugs or alcohol;
                    ``(G) possession or use of guns or other weapons;
                    ``(H) participation in youth gangs; or
                    ``(I) crimes against property, such as theft or 
                vandalism.
    ``(c) Transportation Costs.--The local educational agency that 
serves the public school in which the violent criminal offense occurred 
or that serves the designated unsafe public school may use funds 
provided under this part to provide transportation services or to pay 
the reasonable costs of transportation for the student to attend the 
school selected by the student's parent.
    ``(d) Special Rule.--Any school receiving assistance provided under 
this section shall comply with title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d et seq.) and not discriminate on the basis of race, 
color, or national origin.
    ``(e) Part B of the Individuals With Disabilities Education Act.--
Nothing in this section shall be construed to affect the requirements 
of part B of the Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.).
    ``(f) Maximum Amount.--Notwithstanding any other provision of this 
section, the amount of assistance provided under this part for a 
student who elects a transfer under this section shall not exceed the 
per pupil expenditures for elementary or secondary school students as 
provided by the local educational agency that serves the school 
involved in the transfer.''.

SEC. 117. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    Section 1116 (20 U.S.C. 6317) is amended to read as follows:

``SEC. 1116. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
            ``(1) use the State assessments described in the State 
        plan;
            ``(2) use any additional measures or indicators described 
        in the local educational agency's plan to review annually the 
        progress of each school served under this part to determine 
        whether the school is meeting, or making adequate progress as 
        defined in section 1111(b)(2)(B) toward enabling its students 
        to meet the State's student performance standards described in 
        the State plan;
            ``(3) provide the results of the local annual review to 
        schools so that the schools can continually refine the program 
        of instruction to help all children served under this part in 
        those schools meet the State's student performance standards; 
        and
            ``(4) annually review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement activities under section 1118, 
        professional development activities under section 1119, and 
        other activities assisted under this Act.
    ``(b) Designation of Distinguished Schools.--Each State educational 
agency and local educational agency receiving funds under this part 
shall designate distinguished schools in accordance with section 1117.
    ``(c) School Improvement.--
            ``(1) School improvement.--(A) Subject to subparagraph (B), 
        a local educational agency shall identify for school 
        improvement any elementary school or secondary school served 
        under this part that--
                    ``(i) fails, for any year, to make adequate yearly 
                progress as defined in the State's plan under section 
                1111(b)(2)(B); or
                    ``(ii) was in school improvement status under this 
                section on the day preceding the date of enactment of 
                the Better Education for Students and Teachers Act.
            ``(B) Subparagraph (A) shall not apply to a school if 
        almost every student in such school is meeting the State's 
        proficient level of performance.
            ``(C) To determine if an elementary school or a secondary 
        school that is conducting a targeted assistance program under 
        section 1115 should be identified for school improvement under 
        this subsection, a local educational agency may choose to 
        review the progress of only the students in the school who are 
        served, or are eligible for services, under this part.
            ``(2) Opportunity to review and present evidence; time 
        limit.--(A) Before identifying an elementary school or a 
        secondary school for school improvement under paragraph (1), 
        for corrective action under paragraph (6), or for 
        reconstitution under paragraph (7), the local educational 
        agency shall provide the school with an opportunity to review 
        the school-level data, including assessment data, on which such 
        identification is based.
            ``(B) If the principal of a school proposed for 
        identification under paragraph (1), (6), or (7) believes that 
        the proposed identification is in error for statistical or 
        other substantive reasons, the principal may provide supporting 
        evidence to the local educational agency, which shall consider 
        that evidence before making a final determination.
            ``(C) Not later than 30 days after a local educational 
        agency makes an initial determination concerning identifying a 
        school under paragraph (1), (6), or (7), the local educational 
        agency shall make public a final determination on the status of 
        the school.
            ``(3) School plan.--(A) Each school identified under 
        paragraph (1) for school improvement shall, not later than 3 
        months after being so identified, develop or revise a school 
        plan, in consultation with parents, school staff, the local 
        educational agency serving the school, the local school board, 
        and other outside experts, for approval by such local 
        educational agency. The school plan shall cover a 2-year period 
        and--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic subjects 
                in the school and address the specific academic issues 
                that caused the school to be identified for school 
                improvement;
                    ``(ii) adopt policies and practices concerning the 
                school's core academic subjects that have the greatest 
                likelihood of ensuring that all groups of students 
                specified in section 1111(b)(2)(B)(v)(II) and enrolled 
                in the school will meet the State's proficient level of 
                performance on the State assessment described in 
                section 1111(b)(3) within 10 years after the date of 
                enactment of the Better Education for Students and 
                Teachers Act;
                    ``(iii) provide an assurance that the school will 
                reserve not less than 10 percent of the funds made 
                available to the school under this part for each fiscal 
                year that the school is in school improvement status, 
                for the purpose of providing to the school's teachers 
                and principal high-quality professional development 
                that--
                            ``(I) directly addresses the academic 
                        performance problem that caused the school to 
                        be identified for school improvement; and
                            ``(II) meets the requirements for 
                        professional development activities under 
                        section 1119;
                    ``(iv) specify how the funds described in clause 
                (iii) will be used to remove the school from school 
                improvement status;
                    ``(v) establish specific annual, objective goals 
                for continuous and significant progress by each group 
                of students specified in section 1111 (b)(2)(B)(v)(II) 
                and enrolled in the school that will ensure that all 
                such groups of students will meet the State's 
                proficient level of performance on the State assessment 
                described in section 1111(b)(3) within 10 years after 
                the date of enactment of the Better Education for 
                Students and Teachers Act;
                    ``(vi) identify how the school will provide written 
                notification about the identification to the parents of 
                each student enrolled in such school, in a format and, 
                to the extent practicable, in a language the parents 
                can understand;
                    ``(vii) specify the responsibilities of the school, 
                the local educational agency, and the State educational 
                agency serving the school under the plan, including the 
                technical assistance to be provided by the local 
                educational agency under paragraph (4); and
                    ``(viii) include strategies to promote effective 
                parental involvement in the school.
            ``(B) The local educational agency may condition approval 
        of a school plan on inclusion of 1 or more of the corrective 
        actions specified in paragraph (6)(D)(ii).
            ``(C) A school shall implement the school plan (including a 
        revised plan) expeditiously, but not later than the beginning 
        of the school year following the school year in which the 
        school was identified for school improvement.
            ``(D) The local educational agency, within 45 days after 
        receiving a school plan, shall--
                    ``(i) establish a peer-review process to assist 
                with review of a school plan prepared by a school 
                served by the local educational agency; and
                    ``(ii) promptly review the school plan, work with 
                the school as necessary, and approve the school plan if 
                the plan meets the requirements of this paragraph.
            ``(4) Technical assistance.--(A) For each school identified 
        for school improvement under paragraph (1), the local 
        educational agency serving the school shall provide technical 
        assistance as the school develops and implements the school 
        plan.
            ``(B) Such technical assistance--
                    ``(i) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(3), 
                and other samples of student work, to identify and 
                address instructional problems and solutions;
                    ``(ii) shall include assistance in identifying and 
                implementing instructional strategies and methods that 
                are tied to scientifically based research and that have 
                proven effective in addressing the specific 
                instructional issues that caused the school to be 
                identified for school improvement;
                    ``(iii) shall include assistance in analyzing and 
                revising the school's budget so that the school 
                resources are more effectively allocated for the 
                activities most likely to increase student performance 
                and to remove the school from school improvement 
                status; and
                    ``(iv) may be provided--
                            ``(I) by the local educational agency, 
                        through mechanisms authorized under section 
                        1117; or
                            ``(II) by the State educational agency, an 
                        institution of higher education (in full 
                        compliance with all the reporting provisions of 
                        title II of the Higher Education Act of 1965), 
                        a private not-for-profit organization or for-
                        profit organization, an educational service 
                        agency, or another entity with experience in 
                        helping schools improve performance.
            ``(C) Technical assistance provided under this section by a 
        local educational agency or an entity approved by that agency 
        shall be based on scientifically based research.
            ``(5) Notification to parents.--A local educational agency 
        shall promptly provide parents (in a format and, to the extent 
        practicable, in a language they can understand) of each student 
        in an elementary school or a secondary school identified for 
        school improvement--
                    ``(A) an explanation of what the school improvement 
                identification means, and how the school identified for 
                school improvement compares in terms of academic 
                performance to other elementary schools or secondary 
                schools served by the local educational agency and the 
                State educational agency involved;
                    ``(B) the reasons for the identification;
                    ``(C) an explanation of what the school identified 
                for school improvement is doing to address the problem 
                of low performance;
                    ``(D) an explanation of what the local educational 
                agency or State educational agency is doing to help the 
                school address the performance problem; and
                    ``(E) an explanation of how parents described in 
                this paragraph can become involved in addressing the 
                academic issues that caused the school to be identified 
                for school improvement.
            ``(6) Corrective action.--(A) In this subsection, the term 
        `corrective action' means action, consistent with State and 
        local law, that--
                    ``(i) substantially and directly responds to--
                            ``(I) the consistent academic failure of a 
                        school that caused the local educational agency 
                        to take such action; and
                            ``(II) any underlying staffing, curriculum, 
                        or other problem in the school; and
                    ``(ii) is designed to increase substantially the 
                likelihood that students enrolled in the school 
                identified for corrective action will perform at the 
                State's proficient and advanced levels of performance 
                on the State assessment described in section 
                1111(b)(3).
            ``(B) In order to help students served under this part meet 
        challenging State standards, each local educational agency 
        shall implement a system of corrective action in accordance 
        with subparagraphs (C) through (F) and paragraph (7).
            ``(C) After providing technical assistance under paragraph 
        (4), the local educational agency--
                    ``(i) may identify for corrective action and take 
                corrective action with respect to any school served by 
                the local educational agency under this part that fails 
                to make adequate yearly progress, as defined by the 
                State under section 1111(b)(2)(B), at the end of the 
                first year after the school year in which the school 
                was identified under paragraph (1);
                    ``(ii) shall identify for corrective action and 
                take corrective action with respect to any school 
                served by the local educational agency under this part 
                that--
                            ``(I) fails to make adequate yearly 
                        progress, as defined by the State under section 
                        1111(b)(2)(B), at the end of the second year 
                        after the school year in which the school was 
                        identified under paragraph (1); or
                            ``(II) was in program-improvement status 
                        for 2 years or in corrective-action status 
                        under this subsection on the day preceding the 
                        date of enactment of the Better Education for 
                        Students and Teachers Act;
                    ``(iii) shall continue to provide technical 
                assistance while instituting any corrective action 
                under clause (i) or (ii); and
                    ``(iv) shall promptly notify parents of the option 
                to transfer their child to another public school under 
                subparagraph (D)(i).
            ``(D) In the case of a school described in subparagraph 
        (C)(ii), the local educational agency shall--
                    ``(i) provide all students enrolled in the school 
                with the option to transfer to another public school 
                within the local educational agency, including a public 
                charter school, that has not been identified for school 
                improvement under paragraph (1), unless--
                            ``(I) such an option is prohibited by State 
                        law or local law (which includes a policy 
                        adopted by the school board); or
                            ``(II) the local educational agency 
                        demonstrates to the satisfaction of the State 
                        educational agency that the local educational 
                        agency lacks the capacity to provide that 
                        option to all students in the school who 
                        request it, in which case it shall permit as 
                        many students as possible (selected by the 
                        agency on an equitable basis) to make such a 
                        transfer; and
                    ``(ii) take at least 1 of the following corrective 
                actions:
                            ``(I) Make alternative governance 
                        arrangements, such as reopening the school as a 
                        public charter school.
                            ``(II) Replace the relevant school staff.
                            ``(III) Institute and fully implement a new 
                        curriculum, including providing appropriate 
                        professional development for all relevant 
                        staff, that is tied to scientifically based 
                        research and offers substantial promise of 
                        improving educational performance for low-
                        performing students.
            ``(E) A local educational agency may delay, for a period 
        not to exceed 1 year, implementation of corrective action only 
        if the school's failure to make adequate yearly progress was 
        justified due to exceptional or uncontrollable circumstances, 
        such as a natural disaster or a precipitous and unforeseen 
        decline in the financial resources of the local educational 
        agency or school.
            ``(F) The local educational agency shall publish and 
        disseminate information regarding any corrective action the 
        local educational agency takes under this paragraph at a 
        school--
                    ``(i) to the public and to the parents of each 
                student enrolled in the school subject to corrective 
                action;
                    ``(ii) in a format and, to the extent practicable, 
                in a language that the parents can understand; and
                    ``(iii) through such means as the Internet, the 
                media, and public agencies.
            ``(7) Reconstitution.--(A) If, after 1 additional year, a 
        school subject to corrective action under paragraph (6) 
        continues to fail to make adequate yearly progress and students 
        in the school who are from economically disadvantaged families 
        are not making statistically significant progress in the 
        subjects included in the State's definition of adequate yearly 
        progress, the local educational agency shall--
                    ``(i) provide all students enrolled in the school 
                with the option to transfer to another public school 
                within the local educational agency, including a public 
                charter school, that has not been identified for school 
                improvement under paragraph (1), including affording 
                each such student the same right to attend any such 
                school as is afforded to any child who is a new 
                resident of that school's attendance area; and
                    ``(ii) prepare a plan and make necessary 
                arrangements to carry out subparagraph (B).
            ``(B) Not later than the beginning of the school year 
        following the year in which the local educational agency 
        implements subparagraph (A), the local educational agency shall 
        implement 1 of the following alternative governance 
        arrangements for the school:
                    ``(i) Reopening the school as a public charter 
                school.
                    ``(ii) Replacing all or most of the school staff.
                    ``(iii) Making alternative governance arrangements.
            ``(C) The local educational agency shall provide prompt 
        notice to teachers and parents whenever subparagraph (A) or (B) 
        applies, shall provide the teachers and parents adequate 
        opportunity to comment before taking any action under those 
        paragraphs and to participate in developing any plan under 
        subparagraph (A)(ii), and shall provide parents an explanation 
        of the option under subparagraph (A)(i).
            ``(8) Transportation.--In any case described in paragraph 
        (6)(D)(i) or (7)(A)(i), the local educational agency shall 
        provide, or shall pay for the provision of, transportation for 
        the student to the school the child attends, provided that 
        payments for such purpose do not exceed 15 percent of the local 
        educational agency's allocation under this part.
            ``(9) Duration of reconstitution.--If any school identified 
        for reconstitution under paragraph (7) makes adequate yearly 
        progress for 2 consecutive years and children in that school 
        from economically disadvantaged families are making 
        statistically significant educational progress over that 2-year 
        period, then the local educational agency need no longer 
        subject the school to corrective action or identify the school 
        as in need of improvement.
            ``(10) State educational agency responsibilities.--The 
        State educational agency shall--
                    ``(A) make technical assistance under section 1117 
                available to all schools identified for school 
                improvement and corrective action under this 
                subsection, to the extent possible with funds reserved 
                under section 1003; and
                    ``(B) if the State educational agency determines 
                that a local educational agency failed to carry out its 
                responsibilities under this subsection, take such 
                corrective actions as the State educational agency 
                determines appropriate and in compliance with State 
                law.
    ``(d) State Review and Local Educational Agency Improvement.--
            ``(1) In general.--A State educational agency shall review 
        annually--
                    ``(A) the progress of each local educational agency 
                receiving funds under this part to determine whether 
                schools receiving assistance under this part are making 
                adequate progress as defined in section 1111(b)(2)(B) 
                toward meeting the State's student performance 
                standards and to determine whether each local 
                educational agency is carrying out its responsibilities 
                under section 1116 and section 1117; and
                    ``(B) the effectiveness of the activities carried 
                out under this part by each local educational agency 
                that receives funds under this part and is served by 
                the State educational agency with respect to parental 
                involvement, professional development, and other 
                activities assisted under this part.
            ``(2) Rewards.--In the case of a local educational agency 
        that for 3 consecutive years has met or exceeded the State's 
        definition of adequate progress as defined in section 
        1111(b)(2)(B), the State may make institutional and individual 
        rewards of the kinds described for individual schools in 
        paragraph (2) of section 1117(c).
            ``(3) Identification.--(A) A State educational agency shall 
        identify for improvement any local educational agency that for 
        2 consecutive years, is not making adequate progress as defined 
        in section 1111(b)(2)(B) in schools served under this part 
        toward meeting the State's student performance standards, 
        except that schools served by the local educational agency that 
        are operating targeted assistance programs may be reviewed on 
        the basis of the progress of only those students served under 
        this part.
            ``(B) Before identifying a local educational agency for 
        improvement under paragraph (1), the State educational agency 
        shall provide the local educational agency with an opportunity 
        to review the school-level data, including assessment data, on 
        which such identification is based. If the local educational 
        agency believes that such identification for improvement is in 
        error due to statistical or other substantive reasons, such 
        local educational agency may provide evidence to the State 
        educational agency to support such belief.
            ``(4) Local educational agency revisions.--(A) Each local 
        educational agency identified under paragraph (3) shall, not 
        later than 3 months after being so identified, revise a local 
        educational agency plan as described under section 1112. The 
        plan shall--
                    ``(i) include specific State-determined yearly 
                progress requirements in subjects and grades to ensure 
                that all students will meet proficient levels of 
                performance within 10 years;
                    ``(ii) address the fundamental teaching and 
                learning needs in the schools of that agency, and the 
                specific academic problems of low-performing students 
                including a determination of why the local educational 
                agency's prior plan failed to bring about increased 
                student achievement and performance;
                    ``(iii) incorporate scientifically based research 
                strategies that strengthen the core academic program in 
                the local educational agency;
                    ``(iv) address the professional development needs 
                of the instructional staff by committing to spend not 
                less than 10 percent of the funds received by the 
                school under this part during 1 fiscal year for 
                professional development, which funds shall supplement 
                and not supplant professional development that 
                instructional staff would otherwise receive, and which 
                professional development shall increase the content 
                knowledge of teachers and build the capacity of the 
                teachers to align classroom instruction with 
                challenging content standards and to bring all students 
                to proficient or advanced levels of performance as 
                determined by the State;
                    ``(v) identify specific goals and objectives the 
                local educational agency will undertake for making 
                adequate yearly progress, which goals and objectives 
                shall be consistent with State standards;
                    ``(vi) identify how the local educational agency 
                will provide written notification to parents in a 
                format, and to the extent practicable, in a language 
                that the parents can understand;
                    ``(vii) specify the responsibilities of the State 
                educational agency and the local educational agency 
                under the plan; and
                    ``(viii) include strategies to promote effective 
                parental involvement in the school.
            ``(5) State educational agency responsibility.--(A) For 
        each local educational agency identified under paragraph (3), 
        the State educational agency shall--
                    ``(i) provide technical or other assistance, if 
                requested, as authorized under section 1117, to better 
                enable the local educational agency to--
                            ``(I) develop and implement the local 
                        educational agency's revised plan; and
                            ``(II) work with schools needing 
                        improvement; and
                    ``(ii) make available to the local educational 
                agencies farthest from meeting the State's standards, 
                if requested, assistance under section 1117.
                    ``(B) Technical assistance provided under this 
                section by the State educational agency or an entity 
                authorized by such agency shall be supported by 
                effective methods and scientifically based research 
                instructional strategies. Such technical assistance 
                shall address problems, if any, in implementing the 
                parental involvement activities described in section 
                1118 and the professional development activities 
                described in section 1119.'';
            ``(6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance pursuant 
        to paragraph (5) and taking other remediation measures, the 
        State educational agency may take corrective action at any time 
        against a local educational agency that has been identified 
        under paragraph (3), but, during the fourth year following 
        identification under paragraph (3), shall take such action 
        against any local educational agency that still fails to make 
        adequate progress.
            ``(B)(i) Consistent with State and local law, in order to 
        help students served under this part meet challenging State and 
        local standards, each State educational agency shall implement 
        a corrective action system in accordance with the following:
                    ``(I) After providing technical assistance as 
                described under paragraph (5), the State educational 
                agency--
                            ``(aa) may take corrective action at any 
                        time with respect to a local educational agency 
                        that has been identified under paragraph (3);
                            ``(bb) shall take corrective action with 
                        respect to any local educational agency that 
                        fails to make adequate yearly progress, as 
                        defined by the State; and
                            ``(cc) shall continue to provide technical 
                        assistance while implementing any corrective 
                        action.
                    ``(II) Consistent with State and local law, in the 
                case of a local educational agency described under 
                subclause (I), the State educational agency shall not 
                take less than 1 of the following corrective actions:
                            ``(aa) Instituting and fully implementing a 
                        new curriculum that is based on State and local 
                        standards, including appropriate scientifically 
                        based research professional development for all 
                        relevant staff that offers substantial promise 
                        of improving educational achievement for low-
                        performing students.
                            ``(bb) Restructuring the local educational 
                        agency.
                            ``(cc) Developing and implementing a joint 
                        plan between the State educational agency and 
                        the local educational agency that addresses 
                        specific elements of student performance 
                        problems and that specifies the 
                        responsibilities of the State educational 
                        agency and the local educational agency under 
                        the plan.
                            ``(dd) Reconstituting school district 
                        personnel.
                            ``(ee) Making alternative governance 
                        arrangements.
                    ``(III) Consistent with State and local law, in the 
                case of a local educational agency described under 
                subclause (I), the State educational agency may take 1 
                of the following corrective actions:
                            ``(aa) Deferring, reducing, or withholding 
                        funds.
                            ``(bb) Restructuring or abolishing the 
                        local educational agency.
                            ``(cc) Removal of particular schools from 
                        the jurisdiction of the local educational 
                        agency and establishment of alternative 
                        arrangements for public governance and 
                        supervision of such schools.
                            ``(dd) Appointment by the State educational 
                        agency of a receiver or trustee to administer 
                        the affairs of the local educational agency in 
                        place of the superintendent and school board.
            ``(ii) Notwithstanding clause (i), corrective actions taken 
        pursuant to this section shall not include the actions 
        described in subclauses (I), (II), and (III) of clause (i) 
        until the State has developed assessments that meet the 
        requirements of paragraph (3) of section 1111(b).
            ``(C) Hearing.--Prior to implementing any corrective 
        action, the State educational agency shall provide notice and a 
        hearing to the affected local educational agency, if State law 
        provides for such notice and hearing. The hearing shall take 
        place not later than 45 days following the decision to 
        implement corrective action.
            ``(D) Notification to parents.--The State educational 
        agency shall publish, and disseminate to parents and the 
        public, any corrective action the State educational agency 
        takes under this paragraph through a widely read or distributed 
        medium.
            ``(E) Delay.--A State educational agency may delay, for a 
        period not to exceed 1 year, implementation of corrective 
        action if--
                    ``(i) the State educational agency determines that 
                the local educational agency is meeting the State-
                determined yearly progress requirements in subjects and 
                grades included in the State assessments; and
                    ``(ii) the schools within the local educational 
                agency will meet the State's criteria for improvement 
                within 1 year.
            ``(F) Waivers.--The State educational agency shall review 
        any waivers approved prior to the date of enactment of the 
        Better Education for Students and Teachers Act for a local 
        educational agency designated for improvement or corrective 
        action and shall terminate any waiver approved by the State 
        under the Educational Flexibility Partnership Act of 1999 if 
        the State determines, after notice and an opportunity for a 
        hearing, that the waiver is not helping the local educational 
        agency make yearly progress to meet the objectives and specific 
        goals described in the local educational agency's improvement 
        plan.
            ``(7) Special rule.--Local educational agencies that for at 
        least 2 of the 3 years following identification under paragraph 
        (3) make adequate progress toward meeting the State's standards 
        no longer need to be identified for local educational agency 
        improvement.
    ``(e) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State, or local laws 
(including applicable regulations or court orders) or under the terms 
of collective bargaining agreements, memoranda of understanding, or 
other agreements between such employees and their employers.''.

SEC. 118. ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    Section 1117 (20 U.S.C. 6318) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(3) Priorities.--In carrying out this section, a State 
        educational agency shall--
                    ``(A) first, provide support and assistance to 
                local educational agencies subject to corrective action 
                described in section 1116 and assist schools, in 
                accordance with section 1116, for which a local 
                educational agency has failed to carry out its 
                responsibilities under section 1116;
                    ``(B) second, provide support and assistance to 
                other local educational agencies and schools identified 
                as in need of improvement under section 1116; and
                    ``(C) third, provide support and assistance to 
                other local educational agencies and schools 
                participating under this part that need support and 
                assistance in order to achieve the purpose of this 
                part.'';
            (2) in subsection (b), by striking ``the comprehensive 
        regional technical assistance centers under part A of title 
        XIII and'' and inserting ``comprehensive regional technical 
        assistance centers, and''; and
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Approaches.--
                    ``(A) In general.--In order to achieve the purpose 
                described in subsection (a), each such system shall 
                give priority to using funds made available to carry 
                out this section--
                            ``(i) to establish school support teams for 
                        assignment to and working in schools in the 
                        State that are described in subsection 
                        (a)(3)(A); and
                            ``(ii) to provide such support as the State 
                        educational agency determines to be necessary 
                        and available to assure the effectiveness of 
                        such teams.
                    ``(B) Composition.--Each school support team shall 
                be composed of persons knowledgeable about successful 
                schoolwide projects, school reform, and improving 
                educational opportunities for low-achieving students, 
                including--
                            ``(i) teachers;
                            ``(ii) pupil services personnel;
                            ``(iii) parents;
                            ``(iv) distinguished teachers or 
                        principals;
                            ``(v) representatives of institutions of 
                        higher education;
                            ``(vi) regional educational laboratories or 
                        research centers;
                            ``(vii) outside consultant groups; or
                            ``(viii) other individuals as the State 
                        educational agency, in consultation with the 
                        local educational agency, may determine 
                        appropriate.
                    ``(C) Functions.--Each school support team assigned 
                to a school under this section shall--
                            ``(i) review and analyze all facets of the 
                        school's operation, including the design and 
                        operation of the instructional program, and 
                        assist the school in developing recommendations 
                        for improving student performances in that 
                        school;
                            ``(ii) collaborate, with school staff and 
                        the local educational agency serving the 
                        school, in the design, implementation, and 
                        monitoring of a plan that, if fully 
                        implemented, can reasonably be expected to 
                        improve student performance and help the school 
                        meet its goals for improvement, including 
                        adequate yearly progress under section 
                        1111(b)(2)(B);
                            ``(iii) evaluate, at least semiannually, 
                        the effectiveness of school personnel assigned 
                        to the school, including identifying 
                        outstanding teachers and principals, and make 
                        findings and recommendations (including the 
                        need for additional resources, professional 
                        development, or compensation) to the school, 
                        the local educational agency, and, where 
                        appropriate, the State educational agency; and
                            ``(iv) make additional recommendations as 
                        the school implements the plan described in 
                        clause (ii) to the local educational agency and 
                        the State educational agency concerning 
                        additional assistance and resources that are 
                        needed by the school or the school support 
                        team.
                    ``(D) Continuation of assistance.--After 1 school 
                year, the school support team may recommend that the 
                school support team continue to provide assistance to 
                the school, or that the local educational agency or the 
                State educational agency, as appropriate, take 
                alternative actions with regard to the school.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``part 
                        which'' and all that follows through the period 
                        and inserting ``part.''; and
                            (ii) in subparagraph (C)--
                                    (I) by striking ``and may'' and 
                                inserting ``(and may''; and
                                    (II) by striking ``exemplary 
                                performance'' and inserting ``exemplary 
                                performance)''; and
                    (C) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``Educators'' and inserting ``Teachers and 
                        Principals'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) The State may also recognize and provide 
                financial awards to teachers or principals in a school 
                described in paragraph (2) whose students consistently 
                make significant gains in academic achievement.'';
                            (iii) in subparagraph (B), by striking 
                        ``educators'' and inserting ``teachers or 
                        principals''; and
                            (iv) by striking subparagraph (C).

SEC. 119. PARENTAL INVOLVEMENT.

    Section 1118 (20 U.S.C. 6319) is amended--
            (1) in subsection (a)(2)(B), by inserting ``activities to 
        improve student achievement and student and school 
        performance'' after ``involvement'';
            (2) in subsection (b)(1)--
                    (A) in the first sentence, by inserting ``(in a 
                language parents can understand)'' after 
                ``distribute''; and
                    (B) in the second sentence, insert ``shall be made 
                available to the local community and'' after ``Such 
                policy'';
            (3) in subsection (e)--
                    (A) in paragraph (1), by striking ``participating 
                parents in such areas as understanding the National 
                Education Goals,'' and inserting ``parents of children 
                served by the school or local educational agency, as 
                appropriate, in understanding'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (B), by inserting 
                        ``and'' after the semicolon; and
                            (iii) by adding at the end the following:
                    ``(C) using technology, as appropriate, to foster 
                parental involvement;'';
                    (C) in paragraph (14), by striking ``and'' after 
                the semicolon;
                    (D) by amending paragraph (15) to read as follows:
            ``(15) may establish a school district wide parent advisory 
        council to advise the school and local educational agency on 
        all matters related to parental involvement in programs 
        supported under this section; and''; and
                    (E) by adding at the end the following:
            ``(16) shall provide such other reasonable support for 
        parental involvement activities under this section as parents 
        may request, which may include emerging technologies.'';
            (4) in subsection (f), by striking ``or with'' and 
        inserting ``, parents of migratory children, or parents with''; 
        and
            (5) by striking subsection (g) and inserting the following:
    ``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is 
established to provide training, information, and support to parents 
and individuals who work with local parents, local educational 
agencies, and schools receiving assistance under this part, each school 
or local educational agency that receives assistance under this part 
and is located in the State, shall assist parents and parental 
organizations by informing such parents and organizations of the 
existence and purpose of such centers, providing such parents and 
organizations with a description of the services and programs provided 
by such centers, advising parents on how to use such centers, and 
helping parents to contact such centers.
    ``(h) Review.--The State educational agency shall review the local 
educational agency's parental involvement policies and practices to 
determine if the policies and practices meet the requirements of this 
section.''.

SEC. 120. PROFESSIONAL DEVELOPMENT.

    Section 1119 (20 U.S.C. 6320) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by amending subparagraph (A) 
                to read as follows:
                    ``(A) support professional development activities 
                that give teachers, principals, administrators, 
                paraprofessionals, pupil services personnel, and 
                parents the knowledge and skills to provide students 
                with the opportunity to meet challenging State or local 
                content standards and student performance standards;'';
                    (B) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (D) through (G), respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) advance teacher understanding of effective 
                instructional strategies, based on research for 
                improving student achievement, at a minimum in reading 
                or language arts and mathematics;
                    ``(C) be of sufficient intensity and duration (not 
                to include 1-day or short-term workshops and 
                conferences) to have a positive and lasting impact on 
                the teacher's performance in the classroom, except that 
                this subparagraph shall not apply to an activity if 
                such activity is 1 component of a long-term 
                comprehensive professional development plan established 
                by the teacher and the teacher's supervisor based upon 
                an assessment of the needs of the teacher, the needs of 
                students, and the needs of the local educational 
                agency;'';
                    (D) in subparagraph (E) (as so redesignated), by 
                striking ``title III of the Goals 2000: Educate America 
                Act,'';
                    (E) in subparagraph (F) (as so redesignated), by 
                striking ``and'' after the semicolon;
                    (F) in subparagraph (G) (as so redesignated), by 
                striking the period and inserting a semicolon; and
                    (G) by adding at the end the following:
                    ``(H) to the extent appropriate, provide training 
                for teachers in the use of technology and the 
                applications of technology that are effectively used--
                            ``(i) in the classroom to improve teaching 
                        and learning in the curriculum; and
                            ``(ii) in academic content areas in which 
                        the teachers provide instruction; and
                    ``(I) be regularly evaluated for their impact on 
                increased teacher effectiveness and improved student 
                performance and achievement, with the findings of such 
                evaluations used to improve the quality of professional 
                development.''; and
            (2) in subsection (g), by striking ``title III of the Goals 
        2000: Educate America Act,'' and inserting ``other Acts''.

SEC. 120A. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    (a) Amendments.--Section 1120 (20 U.S.C. 6321) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``that address 
                their needs, and shall ensure that teachers and 
                families of such children participate, on an equitable 
                basis, in services and activities under sections 1118 
                and 1119'' before the period;
                    (B) in paragraph (3), by inserting ``and shall be 
                provided in a timely manner'' before the period; and
                    (C) in paragraph (4), insert ``as determined by the 
                local educational agency each year or every 2 years'' 
                before the period;
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking ``and 
                        where'' and inserting ``, where, and by whom'';
                            (ii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) how the services will be assessed and how the 
                results of that assessment will be used to improve 
                those services;'';
                            (iii) in subparagraph (E), by striking the 
                        period and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(F) how and when the local educational agency 
                will make decisions about the delivery of services to 
                eligible private school children, including a thorough 
                consideration and analysis of the views of private 
                school officials regarding the provision of contract 
                services through potential third party providers, and 
                if the local educational agency disagrees with the 
                views of the private school officials on such provision 
                of services, the local educational agency shall provide 
                in writing to such private school officials an analysis 
                of the reasons why the local educational agency has 
                chosen not to so provide such services.''; and
                    (B) by adding at the end the following:
            ``(4) Consultation.--Each local educational agency shall 
        provide to the State educational agency, and maintain in the 
        local educational agency's records, a written affirmation 
        signed by officials of each participating private school that 
        the consultation required by this section has occurred. If a 
        private school declines in writing to have eligible children in 
        the private school participate in services provided under this 
        section, the local educational agency is not required to 
        further consult with the private school officials or to 
        document the local educational agency's consultation with the 
        private school officials until the private school officials 
        request in writing such consultation. The local educational 
        agency shall inform the private school each year of the 
        opportunity for eligible children to participate in services 
        provided under this section.
            ``(5) Compliance.--A private school official shall have the 
        right to appeal to the State educational agency the decision of 
        a local educational agency as to whether consultation provided 
        for in this section was meaningful and timely, and whether due 
        consideration was given to the views of the private school 
        official. If the private school official wishes to appeal the 
        decision, the basis of the claim of noncompliance with this 
        section by the local educational agencies shall be provided to 
        the State educational agency, and the local educational agency 
        shall forward the appropriate documentation to the State 
        educational agency.'';
            (3) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (4) by inserting after subsection (b) the following:
    ``(c) Allocation for Equitable Service to Private School 
Students.--
            ``(1) Calculation.--A local educational agency shall have 
        the final authority, consistent with this section, to calculate 
        the number of private school children, ages 5 through 17, who 
        are low-income by--
                    ``(A) using the same measure of low-income used to 
                count public school children;
                    ``(B) using the results of a survey that, to the 
                extent possible, protects the identity of families of 
                private school students, and allowing such survey 
                results to be extrapolated if complete actual data are 
                unavailable; or
                    ``(C) applying the low-income percentage of each 
                participating public school attendance area, determined 
                pursuant to this section, to the number of private 
                school children who reside in that school attendance 
                area.
            ``(2) Complaint process.--Any dispute regarding low-income 
        data for private school students shall be subject to the 
        complaint process authorized in section 8.'';
            (5) in subsection (e) (as so redesignated),
                    (A) in paragraph (2), by striking ``14505 and 
                14506'' and inserting ``8 and 9'';
                    (B) by redesignating paragraphs (1) and (2) (as so 
                amended) as subparagraphs (A) and (B), respectively;
                    (C) by striking ``If a'' and inserting the 
                following:
            ``(1)  In general.--If a''; and
                    (D) by adding at the end the following:
            ``(2) Determination.--In making the determination under 
        paragraph (1), the Secretary shall consider 1 or more factors, 
        including the quality, size, scope, or location of the program, 
        or the opportunity of eligible children to participate in the 
        program.''; and
            (6) by repealing subsection (f) (as so redesignated).
    (b) Effective Date.--The amendment made by subsection (a)(4) shall 
take effect on September 30, 2003.
    (c) Conforming Amendment.--Section 1120A(a) (20 U.S.C. 6322(a)) is 
amended by striking ``14501 of this Act'' and inserting ``4''.

SEC. 120B. EARLY CHILDHOOD EDUCATION.

    Section 1120B (20 U.S.C. 6321) is amended--
            (1) by amending the section heading to read as follows:

``SEC. 1120B. COORDINATION REQUIREMENTS; EARLY CHILDHOOD EDUCATION 
              SERVICES.'';

            (2) in subsection (c), by striking ``Head Start Act 
        Amendments of 1994'' and inserting ``Head Start Amendments of 
        1998''; and
            (3) by adding at the end the following:
    ``(d) Early Childhood Services.--A local educational agency may use 
funds received under this part to provide preschool services--
            ``(1) directly to eligible preschool children in all or 
        part of its school district;
            ``(2) through any school participating in the local 
        educational agency's program under this part; or
            ``(3) through a contract with a local Head Start agency, an 
        eligible entity operating an Even Start program, a State-funded 
        preschool program, or a comparable public early childhood 
        development program.
    ``(e) Early Childhood Education Programs.--Early childhood 
education programs operated with funds provided under this part may be 
operated and funded jointly with Even Start programs under part B of 
this title, Head Start programs, or State-funded preschool programs. 
Early childhood education programs funded under this part shall--
            ``(1) focus on the developmental needs of participating 
        children, including their social, cognitive, and language-
        development needs, and use scientifically based research 
        approaches that build on competencies that lead to school 
        success, particularly in language and literacy development and 
        in reading;
            ``(2) teach children to understand and use language in 
        order to communicate for various purposes;
            ``(3) enable children to develop and demonstrate an 
        appreciation of books; and
            ``(4) in the case of children with limited English 
        proficiency, enable the children to progress toward acquisition 
        of the English language.''.

SEC. 120C. ALLOCATIONS.

    Subpart 2 of part A of title I (20 U.S.C. 6331 et seq.) is amended 
to read as follows:

                        ``Subpart 2--Allocations

``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

    ``(a) Reservation of Funds.--From the amount appropriated for any 
fiscal year under section 1002(a), the Secretary shall reserve a total 
of 1 percent to provide assistance to--
            ``(1) the outlying areas on the basis of their respective 
        need for such assistance according to such criteria as the 
        Secretary determines will best carry out the purpose of this 
        part; and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (c).
    ``(b) Assistance to the Outlying Areas.--
            ``(1) In general.--From amounts made available under 
        subsection (a)(1) in each fiscal year the Secretary shall make 
        grants to local educational agencies in the outlying areas.
            ``(2) Competitive grants.--
                    ``(A) In general.--For fiscal year 2002 and each of 
                the 6 succeeding fiscal years, the Secretary shall 
                reserve $5,000,000 from the amounts made available 
                under subsection (a)(1) to award grants, on a 
                competitive basis, to local educational agencies in the 
                Freely Associated States. The Secretary shall award 
                such grants according to the recommendations of the 
                Pacific Region Educational Laboratory which shall 
                conduct a competition for such grants.
                    ``(B) Uses.--Except as provided in subparagraph 
                (C), grant funds awarded under this paragraph only may 
                be used--
                            ``(i) for programs described in this Act, 
                        including teacher training, curriculum 
                        development, instructional materials, or 
                        general school improvement and reform; and
                            ``(ii) to provide direct educational 
                        services.
                    ``(C) Administrative costs.--The Secretary may 
                provide 5 percent of the amount made available for 
                grants under this paragraph to the Pacific Region 
                Educational Laboratory to pay the administrative costs 
                of the Pacific Region Educational Laboratory regarding 
                activities assisted under this paragraph.
    ``(c) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount reserved for payments to the 
        Secretary of the Interior under subsection (a)(2) for any 
        fiscal year shall be, as determined pursuant to criteria 
        established by the Secretary, the amount necessary to meet the 
        special educational needs of--
                    ``(A) Indian children on reservations served by 
                elementary schools and secondary schools for Indian 
                children operated or supported by the Department of the 
                Interior; and
                    ``(B) out-of-State Indian children in elementary 
                schools and secondary schools in local educational 
                agencies under special contracts with the Department of 
                the Interior.
            ``(2) Payments.--From the amount reserved for payments to 
        the Secretary of the Interior under subsection (a)(2), the 
        Secretary of the Interior shall make payments to local 
        educational agencies, upon such terms as the Secretary 
        determines will best carry out the purposes of this part, with 
        respect to out-of-State Indian children described in paragraph 
        (1)(B). The amount of such payment may not exceed, for each 
        such child, the greater of--
                    ``(A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the United 
                States.

``SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND 
              TARGETED GRANTS.

    ``(a) In General.--For each of the fiscal years 2002 through 2008--
            ``(1) the amount appropriated to carry out this part that 
        is less than or equal to the amount appropriated to carry out 
        section 1124 for fiscal year 2001, shall be allocated in 
        accordance with section 1124;
            ``(2) the amount appropriated to carry out this part that 
        is not used under paragraph (1) that equals the amount 
        appropriated to carry out section 1124A for fiscal year 2001, 
        shall be allocated in accordance with section 1124A; and
            ``(3) any amount appropriated to carry out this part for 
        the fiscal year for which the determination is made that is not 
        used to carry out paragraphs (1) and (2) shall be allocated in 
        accordance with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all local educational agencies in States are 
        eligible to receive under sections 1124, 1124A, and 1125 for 
        such year, the Secretary shall ratably reduce the allocations 
        to such local educational agencies, subject to subsections (c) 
        and (d).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 1124A, and 
        1125 for such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as the 
        allocations were reduced.
    ``(c) Hold-Harmless Amounts.--
            ``(1) In general.--For each fiscal year the amount made 
        available to each local educational agency under each of 
        sections 1124, 1124A, and 1125 shall be not less than--
                    ``(A) 95 percent of the amount made available to 
                the local educational agency under each such section 
                for the preceding fiscal year if the number of children 
                counted for grants under section 1124 is not less than 
                30 percent of the total number of children aged 5 to 17 
                years, inclusive, served by the local educational 
                agency;
                    ``(B) 90 percent of the amount made available to 
                the local educational agency under each such section 
                for the preceding fiscal year if such percentage is not 
                less than 15 percent and not more than 30 percent; and
                    ``(C) 85 percent of the amount made available to 
                the local educational agency under each such section 
                for the preceding fiscal year if such percentage is 
                less than 15 percent.
            ``(2) Special rules.--If sufficient funds are appropriated, 
        the hold-harmless amounts described in paragraph (1) shall be 
        paid to all local educational agencies that received grants 
        under section 1124, 1124A, or 1125 for the preceding fiscal 
        year, regardless of whether the local educational agency meets 
        the minimum eligibility criteria provided in section 1124(b), 
        1124A(a)(1)(A), or 1125(a), respectively, except that a local 
        educational agency that does not meet such minimum eligibility 
        criteria for 5 consecutive years shall no longer be eligible to 
        receive a hold-harmless amount under this subsection.
            ``(3) County calculation basis.--For any fiscal year for 
        which the Secretary calculates grants on the basis of 
        population data for counties, the Secretary shall apply the 
        hold-homeless percentages in paragraphs (1) and (2) to 
        counties, and if the Secretary's allocation for a county is not 
        sufficient to meet the hold-harmless requirements of this 
        subsection for every local educational agency within that 
        county, then the State educational agency shall reallocate 
        funds proportionately from all other local educational agencies 
        in the State that receive funds for the fiscal year in excess 
        of the hold-harmless amounts specified in this paragraph.
    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all States are eligible to receive under 
        subsection (c) for such year, the Secretary shall ratably 
        reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for such 
        fiscal year, amounts that were reduced under paragraph (1) 
        shall be increased on the same basis as such amounts were 
        reduced.

``SEC. 1123. DEFINITIONS.

    ``In this subpart:
            ``(1) Freely associated states.--The term `Freely 
        Associated States' means the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.
            ``(2) Outlying areas.--The term `outlying areas' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(3) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in section 1126, 
        the grant that a local educational agency is eligible to 
        receive under this section for a fiscal year is the amount 
        determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, and not more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational agencies.--
                The Secretary shall calculate grants under this section 
                on the basis of the number of children counted under 
                subsection (c) for local educational agencies, unless 
                the Secretary and the Secretary of Commerce determine 
                that some or all of those data are unreliable or that 
                their use would be otherwise inappropriate, in which 
                case--
                            ``(i) the Secretary and the Secretary of 
                        Commerce shall publicly disclose the reasons 
                        for their determination in detail; and
                            ``(ii) paragraph (3) shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                            ``(i) Large local educational agencies.--In 
                        the case of an allocation under this section to 
                        a large local educational agency, the amount of 
                        the grant under this section for the large 
                        local educational agency shall be the amount 
                        determined under paragraph (1).
                            ``(ii) Small local educational agencies.--
                                    ``(I) In general.--In the case of 
                                an allocation under this section to a 
                                small local educational agency the 
                                State educational agency may--
                                            ``(aa) distribute grants 
                                        under this section in amounts 
                                        determined by the Secretary 
                                        under paragraph (1); or
                                            ``(bb) use an alternative 
                                        method approved by the 
                                        Secretary to distribute the 
                                        portion of the State's total 
                                        grants under this section that 
                                        is based on those small local 
                                        educational agencies.
                                    ``(II) Alternative method.--An 
                                alternative method under subclause 
                                (I)(bb) shall be based on population 
                                data that the State educational agency 
                                determines best reflect the current 
                                distribution of children in poor 
                                families among the State's small local 
                                educational agencies that meet the 
                                minimum number of children to qualify 
                                described in subsection (b).
                                    ``(III) Appeal.--If a small local 
                                educational agency is dissatisfied with 
                                the determination of the amount of its 
                                grant by the State educational agency 
                                under subclause (I)(bb), the small 
                                local educational agency may appeal the 
                                determination to the Secretary, who 
                                shall respond within 45 days of 
                                receiving the appeal.
                            ``(iii) Definitions.--In this 
                        subparagraph--
                                    ``(I) the term `large local 
                                educational agency' means a local 
                                educational agency serving a school 
                                district with a total population of 
                                20,000 or more; and
                                    ``(II) the term `small local 
                                educational agency' means a local 
                                educational agency serving a school 
                                district with a total population of 
                                less than 20,000.
            ``(3) Allocations to counties.--
                    ``(A) In general.--For any fiscal year to which 
                this paragraph applies, the Secretary shall calculate 
                grants under this section on the basis of the number of 
                children counted under section 1124(c) for counties, 
                and State educational agencies shall allocate county 
                amounts to local educational agencies, in accordance 
                with regulations promulgated by the Secretary.
                    ``(B) Application.--In any State in which a large 
                number of local educational agencies overlap county 
                boundaries, or for which the State believes the State 
                has data that would better target funds than allocating 
                the funds by county, the State educational agency may 
                apply to the Secretary for authority to make the 
                allocations under this part for a particular fiscal 
                year directly to local educational agencies without 
                regard to counties.
                    ``(C) Allocations to local educational agencies.--
                If the Secretary approves its application under 
                subparagraph (B), the State educational agency shall 
                provide the Secretary an assurance that the allocations 
                will be made--
                            ``(i) using precisely the same factors for 
                        determining a grant as are used under this 
                        section; or
                            ``(ii) using data that the State 
                        educational agency submits to the Secretary for 
                        approval that more accurately target poverty.
                    ``(D) Appeal.--The State educational agency shall 
                provide the Secretary an assurance that a procedure is 
                or will be established through which local educational 
                agencies that are dissatisfied with determinations 
                under subparagraph (B) may appeal directly to the 
                Secretary for a final determination.
            ``(4) Puerto rico.--For each fiscal year, the Secretary 
        shall determine the percentage which the average per-pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per-pupil expenditure of any of the 50 States. The 
        grant which the Commonwealth of Puerto Rico shall be eligible 
        to receive under this section for a fiscal year shall be the 
        amount arrived at by multiplying the number of children counted 
        under subsection (c) for the Commonwealth of Puerto Rico by the 
        product of--
                    ``(A) the percentage determined under the preceding 
                sentence; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the school district of the local educational 
        agency.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the poverty 
                level as determined under paragraphs (2) and (3);
                    ``(B) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency from 
                families above the poverty level as determined under 
                paragraph (4); and
                    ``(C) the number of children determined under 
                paragraph (4) for the preceding year (as described in 
                that paragraph, or for the second preceding year, as 
                the Secretary finds appropriate) aged 5 to 17, 
                inclusive, in the school district of such agency in 
                institutions for neglected and delinquent children and 
                youth (other than such institutions operated by the 
                United States), but not counted pursuant to chapter 1 
                of subpart 1 of part D for the purposes of a grant to a 
                State agency, or being supported in foster homes with 
                public funds.
            ``(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine the 
        number of children aged 5 to 17, inclusive, from families below 
        the poverty level on the basis of the most recent satisfactory 
        data, described in paragraph (3), available from the Department 
        of Commerce. The District of Columbia and the Commonwealth of 
        Puerto Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or more 
        counties in their entirety, then each county shall be treated 
        as if such county were a separate local educational agency for 
        purposes of calculating grants under this part. The total of 
        grants for such counties shall be allocated to such a local 
        educational agency, which local educational agency shall 
        distribute to schools in each county within such agency a share 
        of the local educational agency's total grant that is no less 
        than the county's share of the population counts used to 
        calculate the local educational agency's grant.
            ``(3) Population updates.--In fiscal year 2001 and every 2 
        years thereafter, the Secretary shall use updated data on the 
        number of children, aged 5 to 17, inclusive, from families 
        below the poverty level for counties or local educational 
        agencies, published by the Department of Commerce, unless the 
        Secretary and the Secretary of Commerce determine that use of 
        the updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of Commerce 
        determine that some or all of the data referred to in this 
        paragraph are inappropriate or unreliable, the Secretary and 
        the Secretary of Commerce shall publicly disclose their 
        reasons. In determining the families which are below the 
        poverty level, the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census, in such form as those criteria have 
        been updated by increases in the Consumer Price Index for all 
        urban consumers, published by the Bureau of Labor Statistics.
            ``(4) Other children to be counted.--For purposes of this 
        section, the Secretary shall determine the number of children 
        aged 5 to 17, inclusive, from families above the poverty level 
        on the basis of the number of such children from families 
        receiving an annual income, in excess of the current criteria 
        of poverty, from payments under a State program funded under 
        part A of title IV of the Social Security Act. In making such 
        determinations the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census for a family of 4 in such form as those 
        criteria have been updated by increases in the Consumer Price 
        Index for all urban consumers, published by the Bureau of Labor 
        Statistics. The Secretary shall determine the number of such 
        children and the number of children aged 5 through 17 living in 
        institutions for neglected or delinquent children, or being 
        supported in foster homes with public funds, on the basis of 
        the caseload data for the month of October of the preceding 
        fiscal year (using, in the case of children described in the 
        preceding sentence, the criteria of poverty and the form of 
        such criteria required by such sentence which were determined 
        for the calendar year preceding such month of October) or, to 
        the extent that such data are not available to the Secretary 
        before January of the calendar year in which the Secretary's 
        determination is made, then on the basis of the most recent 
        reliable data available to the Secretary at the time of such 
        determination. The Secretary of Health and Human Services shall 
        collect and transmit the information required by this 
        subparagraph to the Secretary not later than January 1 of each 
        year. For the purpose of this section, the Secretary shall 
        consider all children who are in correctional institutions to 
        be living in institutions for delinquent children.
            ``(5) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated estimate of 
        the number of children of such ages who are from families below 
        the poverty level (as determined under paragraph (2)) in each 
        school district, and the Secretary is authorized to pay (either 
        in advance or by way of reimbursement) the Secretary of 
        Commerce the cost of making this special estimate. The 
        Secretary of Commerce shall give consideration to any request 
        of the chief executive of a State for the collection of 
        additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
            ``(1) 0.25 percent of the total amount made available to 
        carry out this section for such fiscal year; or
            ``(2) the average of--
                    ``(A) 0.25 percent of the total amount made 
                available to carry out this section for such fiscal 
                year; and
                    ``(B) the number of children in such State counted 
                under subsection (c) in the fiscal year multiplied by 
                150 percent of the national average per-pupil payment 
                made with funds available under this section for that 
                fiscal year.

``SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) Eligibility.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, each local educational agency in a 
                State that is eligible for a grant under section 1124 
                for any fiscal year is eligible for an additional grant 
                under this section for that fiscal year if the number 
                of children counted under section 1124(c) who are 
                served by the agency exceeds--
                            ``(i) 6,500; or
                            ``(ii) 15 percent of the total number of 
                        children aged 5 through 17 served by the 
                        agency.
                    ``(B) Minimum.--Notwithstanding section 1122, no 
                State shall receive under this section an amount that 
                is less than the lesser of--
                            ``(i) 0.25 percent of the total amount made 
                        available to carry out this section for such 
                        fiscal year; or
                            ``(ii) the average of--
                                    ``(I) 0.25 percent of the sums 
                                available to carry out this section for 
                                such fiscal year; and
                                    ``(II) the greater of--
                                            ``(aa) $340,000; or
                                            ``(bb) the number of 
                                        children in such State counted 
                                        for purposes of this section in 
                                        that fiscal year multiplied by 
                                        150 percent of the national 
                                        average per-pupil payment made 
                                        with funds available under this 
                                        section for that fiscal year.
            ``(2) Determination.--For each county or local educational 
        agency eligible to receive an additional grant under this 
        section for any fiscal year the Secretary shall determine the 
        product of--
                    ``(A) the number of children counted under section 
                1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) for all 
                States except the Commonwealth of Puerto Rico, and the 
                amount in section 1124(a)(3) for the Commonwealth of 
                Puerto Rico.
            ``(3) Amount.--The amount of the additional grant for which 
        an eligible local educational agency or county is eligible 
        under this section for any fiscal year shall be an amount that 
        bears the same ratio to the amount available to carry out this 
        section for that fiscal year as the product determined under 
        paragraph (2) for such local educational agency for that fiscal 
        year bears to the sum of such products for all local 
        educational agencies in the United States for that fiscal year.
            ``(4) Local allocations.--
                    ``(A) In general.--Grant amounts under this section 
                shall be calculated in the same manner as grant amounts 
                are calculated under section 1124(a) (2) and (3).
                    ``(B) Special rule.--For any fiscal year for which 
                the Secretary allocates funds under this section on the 
                basis of counties, a State may reserve not more than 2 
                percent of the amount made available to the State under 
                this section for any fiscal year to make grants to 
                local educational agencies that meet the criteria in 
                paragraph (1)(A) (i) or (ii) but that are in ineligible 
                counties.
    ``(b) Ratable Reduction Rule.--If the sums available under 
subsection (a) for any fiscal year for making payments under this 
section are not sufficient to pay in full the total amounts which all 
States are eligible to receive under subsection (a) for such fiscal 
year, the maximum amounts that all States are eligible to receive under 
subsection (a) for such fiscal year shall be ratably reduced. In the 
case that additional funds become available for making such payments 
for any fiscal year during which the preceding sentence is applicable, 
such reduced amounts shall be increased on the same basis as they were 
reduced.
    ``(c) States Receiving 0.25 Percent or Less.--In States that 
receive 0.25 percent or less of the total amount made available to 
carry out this section for a fiscal year, the State educational agency 
shall allocate such funds among the local educational agencies in the 
State--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and numbers 
        of children counted under section 1124(c), except that only 
        those local educational agencies with concentrations or numbers 
        of children counted under section 1124(c) that exceed the 
        statewide average percentage of such children or the statewide 
        average number of such children shall receive any funds on the 
        basis of this paragraph.

``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--
            ``(1) In general.--A local educational agency in a State is 
        eligible to receive a targeted grant under this section for any 
        fiscal year if--
                    ``(A) the number of children in the local 
                educational agency counted under section 1124(c), 
                before application of the weighted child count 
                described in subsection (c), is at least 10; and
                    ``(B) if the number of children counted for grants 
                under section 1124(c), before application of the 
                weighted child count described in subsection (c), is at 
                least 5 percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district of the 
                local educational agency.
            ``(2) Special rule.--For any fiscal year for which the 
        Secretary allocates funds under this section on the basis of 
        counties, funds made available as a result of applying this 
        subsection shall be reallocated by the State educational agency 
        to other eligible local educational agencies in the State in 
        proportion to the distribution of other funds under this 
        section.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and the Commonwealth of Puerto Rico.--
            ``(1) In general.--The amount of the grant that a local 
        educational agency in a State (other than the Commonwealth of 
        Puerto Rico) is eligible to receive under this section for any 
        fiscal year shall be the product of--
                    ``(A) the weighted child count determined under 
                subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant the Commonwealth of Puerto Rico is eligible to receive 
        under this section shall be equal to the number of children 
        counted under subsection (c) for the Commonwealth of Puerto 
        Rico, multiplied by the amount determined in section 1124(a)(4) 
        for the Commonwealth of Puerto Rico.
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses county population data to calculate 
                grants, the weighted child count used to determine a 
                county's allocation under this section is the larger of 
                the 2 amounts determined under subparagraphs (B) and 
                (C).
                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                            ``(i) the number of children determined 
                        under section 1124(c) for that county who 
                        constitute not more than 15.00 percent, 
                        inclusive, of the county's total population 
                        aged 5 to 17, inclusive, multiplied by 1.0;
                            ``(ii) the number of such children who 
                        constitute more than 15.00 percent, but not 
                        more than 19.00 percent, of such population, 
                        multiplied by 1.75;
                            ``(iii) the number of such children who 
                        constitute more than 19.00 percent, but not 
                        more than 24.20 percent, of such population, 
                        multiplied by 2.5;
                            ``(iv) the number of such children who 
                        constitute more than 24.20 percent, but not 
                        more than 29.20 percent, of such population, 
                        multiplied by 3.25; and
                            ``(v) the number of such children who 
                        constitute more than 29.20 percent of such 
                        population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred 
                to in subparagraph (A) is determined by adding--
                            ``(i) the number of children determined 
                        under section 1124(c) who constitute not more 
                        than 2,311, inclusive, of the county's total 
                        population aged 5 to 17, inclusive, multiplied 
                        by 1.0;
                            ``(ii) the number of such children between 
                        2,312 and 7,913, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(iii) the number of such children between 
                        7,914 and 23,917, inclusive, in such 
                        population, multiplied by 2.0;
                            ``(iv) the number of such children between 
                        23,918 and 93,810, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(v) the number of such children in excess 
                        of 93,811 in such population, multiplied by 
                        3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of 
                Puerto Rico under this paragraph shall not be greater 
                than the total number of children counted under section 
                1124(c) multiplied by 1.72.
            ``(2) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses local educational agency data, the 
                weighted child count used to determine a local 
                educational agency's grant under this section is the 
                larger of the 2 amounts determined under subparagraphs 
                (B) and (C).
                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                            ``(i) the number of children determined 
                        under section 1124(c) for that local 
                        educational agency who constitute not more than 
                        15.233 percent, inclusive, of the agency's 
                        total population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children who 
                        constitute more than 15.233 percent, but not 
                        more than 22.706 percent, of such population, 
                        multiplied by 1.75;
                            ``(iii) the number of such children who 
                        constitute more than 22.706 percent, but not 
                        more than 32.213 percent, of such population, 
                        multiplied by 2.5;
                            ``(iv) the number of such children who 
                        constitute more than 32.213 percent, but not 
                        more than 41.452 percent, of such population, 
                        multiplied by 3.25; and
                            ``(v) the number of such children who 
                        constitute more than 41.452 percent of such 
                        population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred 
                to in subparagraph (A) is determined by adding--
                            ``(i) the number of children determined 
                        under section 1124(c) who constitute not more 
                        than 710, inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, multiplied 
                        by 1.0;
                            ``(ii) the number of such children between 
                        711 and 2,384, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(iii) the number of such children between 
                        2,385 and 9,645, inclusive, in such population, 
                        multiplied by 2.0;
                            ``(iv) the number of such children between 
                        9,646 and 54,600, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(v) the number of such children in excess 
                        of 54,600 in such population, multiplied by 
                        3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of 
                Puerto Rico under this paragraph shall not be greater 
                than the total number of children counted under section 
                1124(c) multiplied by 1.72.
    ``(d) Calculation of Grant Amounts.--Grant amounts under this 
section shall be calculated in the same manner as grant amounts are 
calculated under section 1124(a) (2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or section 1122, from the total amount available for any fiscal 
year to carry out this section, each State shall be allotted not less 
than 0.5 percent of the total amount made available to carry out this 
section for such fiscal year.

``SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    ``(a) Grants.--From funds appropriated under subsection (e) the 
Secretary is authorized to make grants to States, from allotments under 
subsection (b), to carry out the purposes of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant to 
                subsection (e) shall be allotted to each State based 
                upon the number of children counted under section 
                1124(c) in such State multiplied by the product of--
                            ``(i) such State's effort factor described 
                        in paragraph (2); multiplied by
                            ``(ii) 1.30 minus such State's equity 
                        factor described in paragraph (3).
                    ``(B) Minimum.--For each fiscal year no State shall 
                receive under this section less than 0.5 percent of the 
                total amount appropriated under subsection (e) for the 
                fiscal year.
            ``(2) Effort factor.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State shall 
                be determined in accordance with the succeeding 
                sentence, except that such factor shall not be less 
                than 0.95 nor greater than 1.05. The effort factor 
                determined under this sentence shall be a fraction the 
                numerator of which is the product of the 3-year average 
                per-pupil expenditure in the State multiplied by the 3-
                year average per capita income in the United States and 
                the denominator of which is the product of the 3-year 
                average per capita income in such State multiplied by 
                the 3-year average per-pupil expenditure in the United 
                States.
                    ``(B) Commonwealth of puerto rico.--The effort 
                factor for the Commonwealth of Puerto Rico shall be 
                equal to the lowest effort factor calculated under 
                subparagraph (A) for any State.
            ``(3) Equity factor.--
                    ``(A) Determination.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Secretary shall determine 
                        the equity factor under this section for each 
                        State in accordance with clause (ii).
                            ``(ii) Computation.--
                                    ``(I) In general.--For each State, 
                                the Secretary shall compute a weighted 
                                coefficient of variation for the per-
                                pupil expenditures of local educational 
                                agencies in accordance with subclauses 
                                (II), (III), and (IV).
                                    ``(II) Variation.--In computing 
                                coefficients of variation, the 
                                Secretary shall weigh the variation 
                                between per-pupil expenditures in each 
                                local educational agency and the 
                                average per-pupil expenditures in the 
                                State according to the number of pupils 
                                served by the local educational agency.
                                    ``(III) Number of pupils.--In 
                                determining the number of pupils under 
                                this paragraph served by each local 
                                educational agency and in each State, 
                                the Secretary shall multiply the number 
                                of children from low-income families by 
                                a factor of 1.4.
                                    ``(IV) Enrollment requirement.--In 
                                computing coefficients of variation, 
                                the Secretary shall include only those 
                                local educational agencies with an 
                                enrollment of more than 200 students.
                    ``(B) Special rule.--The equity factor for a State 
                that meets the disparity standard described in section 
                222.162 of title 34, Code of Federal Regulations (as 
                such section was in effect on the day preceding the 
                date of enactment of the Better Education for Students 
                and Teachers Act) or a State with only 1 local 
                educational agency shall be not greater than 0.10.
                    ``(C) Revisions.--The Secretary may revise each 
                State's equity factor as necessary based on the advice 
                of independent education finance scholars to reflect 
                other need-based costs of local educational agencies in 
                addition to low-income student enrollment, such as 
                differing geographic costs, costs associated with 
                students with disabilities, children with limited 
                English-proficiency or other meaningful educational 
                needs, which deserve additional support. In addition, 
                after obtaining the advice of independent education 
                finance scholars, the Secretary may revise each State's 
                equity factor to incorporate other valid and accepted 
                methods to achieve adequacy of educational opportunity 
                that may not be reflected in a coefficient of variation 
                method.
    ``(c) Use of Funds.--All funds awarded to each State under this 
section shall be allocated to local educational agencies and schools on 
a basis consistent with the distribution of other funds to such 
agencies and schools under sections 1124, 1124A, and 1125 to carry out 
activities under this part.
    ``(d) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allotment of funds under 
        this section for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of funds awarded to any State under this section in any 
        fiscal year in the exact proportion to which the State fails to 
        meet the requirements of paragraph (1) by falling below 90 
        percent of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this subsection if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
            ``(1) In general.--If a State educational agency determines 
        that a local educational agency in the State is unable or 
        unwilling to provide for the special educational needs of 
        children who are living in institutions for neglected or 
        delinquent children as described in section 1124(c)(1)(C), the 
        State educational agency shall, if such agency assumes 
        responsibility for the special educational needs of such 
        children, receive the portion of such local educational 
        agency's allocation under sections 1124, 1124A, and 1125 that 
        is attributable to such children.
            ``(2) Special rule.--If the State educational agency does 
        not assume such responsibility, any other State or local public 
        agency that does assume such responsibility shall receive that 
        portion of the local educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, and 1125 among the affected local educational agencies--
            ``(1) if 2 or more local educational agencies serve, in 
        whole or in part, the same geographical area;
            ``(2) if a local educational agency provides free public 
        education for children who reside in the school district of 
        another local educational agency; or
            ``(3) to reflect the merger, creation, or change of 
        boundaries of 1 or more local educational agencies.
    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant a local educational agency would receive under 
sections 1124, 1124A, and 1125 is more than such local educational 
agency will use, the State educational agency shall make the excess 
amount available to other local educational agencies in the State that 
need additional funds in accordance with criteria established by the 
State educational agency.

``SEC. 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 421 of the 
General Education Provisions Act or any other provision of law, not 
more than 15 percent of the funds allocated to a local educational 
agency for any fiscal year under this subpart (but not including funds 
received through any reallocation under this subpart) may remain 
available for obligation by such agency for one additional fiscal year.
    ``(b) Waiver.--A State educational agency may, once every 3 years, 
waive the percentage limitation in subsection (a) if--
            ``(1) the agency determines that the request of a local 
        educational agency is reasonable and necessary; or
            ``(2) supplemental appropriations for this subpart become 
        available.
    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.''.

               PART B--LITERACY FOR CHILDREN AND FAMILIES

SEC. 121. READING FIRST.

    Part B of title I (20 U.S.C. 6361 et seq.) is amended--
            (1) by striking the part heading and inserting the 
        following:

            ``PART B--LITERACY FOR CHILDREN AND FAMILIES'';

            (2) by inserting after the part heading the following:

``Subpart 1--William F. Goodling Even Start Family Literacy Programs'';

            (3) in sections 1201 through 1212, by striking ``this 
        part'' each place such term appears and inserting ``this 
        subpart''; and
            (4) by adding at the end the following:

                      ``Subpart 2--Reading First''

``SEC. 1221. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To provide assistance to States and local educational 
        agencies in establishing reading programs for students in 
        grades kindergarten through 3 that are grounded in 
        scientifically based reading research, in order to ensure that 
        every student can read at grade level or above by the end of 
        the third grade.
            ``(2) To provide assistance to States and local educational 
        agencies in preparing teachers, through professional 
        development and other support, so the teachers can identify 
        specific reading barriers facing their students and so the 
        teachers have the tools effectively to help their student to 
        learn to read.
            ``(3) To provide assistance to States and local educational 
        agencies in selecting or developing rigorous diagnostic reading 
        assessments that document the effectiveness of this subpart in 
        improving students' reading and in holding grant and subgrant 
        recipients accountable for their results.
            ``(4) To provide assistance to States and local educational 
        agencies in selecting or developing effective instructional 
        materials, programs, and strategies to implement methods that 
        have been proven to prevent or remediate reading failure within 
        a State or States.
            ``(5) To strengthen coordination among schools, early 
        literacy programs, and family literacy programs in order to 
        improve reading achievement for all children.

``SEC. 1222. FORMULA GRANTS TO STATES; COMPETITIVE SUBGRANTS TO LOCAL 
              AGENCIES.

    ``(a) In General.--In the case of each State that in accordance 
with section 1224 submits to the Secretary an application for a 5-year 
period, the Secretary, subject to the application's approval, shall 
make a grant to the State educational agency for the uses specified in 
subsections (c) and (d). The grant shall consist of the allotment 
determined for the State under subsection (b).
    ``(b) Determination of Amount of Allotment.--
            ``(1) In general.--From the total amount made available to 
        carry out this subpart for any fiscal year and not reserved 
        under section 1225, the Secretary shall allot 75 percent under 
        this section among each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
            ``(2) State allotments.--The Secretary shall allot the 
        amount made available under paragraph (1) for a fiscal year 
        among the States in proportion to the amount all local 
        educational agencies in a State would receive under section 
        1124.
            ``(3) Reallotment.--If any State does not apply for an 
        allotment under this section for any fiscal year, or if the 
        State's application is not approved, the Secretary shall 
        reallot such amount to the remaining States in accordance with 
        paragraph (2).
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Distribution of subgrants.--The Secretary may make a 
        grant to a State under this section only if the State agrees to 
        expend at least 80 percent of the amount of the funds provided 
        under the grant for the purpose of making, in accordance with 
        this subsection, competitive subgrants to eligible local 
        educational agencies.
            ``(2) Notice.--A State receiving a grant under this section 
        shall provide notice to all eligible local educational agencies 
        in the State of the availability of competitive subgrants under 
        this subsection and of the requirements for applying for the 
        subgrants.
            ``(3) Local application.--To be eligible to receive a 
        subgrant under this subsection, an eligible local educational 
        agency shall submit an application to the State at such time, 
        in such manner, and containing such information as the State 
        may reasonably require.
            ``(4) Definition of eligible local educational agency.--In 
        this subpart the term `eligible local educational agency' means 
        a local educational agency that--
                    ``(A) has a high percentage of students in grades 
                kindergarten through 3 reading below grade level; and
                    ``(B) has--
                            ``(i) jurisdiction over a geographic area 
                        that includes an area designated as an 
                        empowerment zone, or an enterprise community, 
                        under part I of subchapter U of chapter 1 of 
                        the Internal Revenue Code of 1986;
                            ``(ii) jurisdiction over at least 1 school 
                        that is identified for school improvement under 
                        section 1116(c); or
                            ``(iii) a high percentage of children who 
                        are counted under section 1124(c), in 
                        comparison to other local educational agencies 
                        in the State.
            ``(5) State requirement.--In distributing subgrant funds to 
        local educational agencies, a State shall provide the funds in 
        sufficient amounts to enable local educational agencies to 
        improve reading, as measured by scores on rigorous diagnostic 
        reading assessments.
            ``(6) Local priority.--In distributing subgrant funds under 
        this subsection a local educational agency shall give priority 
        to providing the funds to schools that--
                    ``(A) have a high percentage of students in grades 
                kindergarten through 3 reading below grade level;
                    ``(B) are identified for school improvement under 
                section 1116(c); or
                    ``(C) have a high percentage of children counted 
                under section 1124(c).
            ``(7) Local uses of funds.--Subject to paragraph (8), a 
        local educational agency that receives a subgrant under this 
        subsection shall use the funds provided under the subgrant to 
        carry out the following activities:
                    ``(A) Selecting or developing, and administering, a 
                rigorous diagnostic reading assessment.
                    ``(B) Selecting or developing, and implementing, a 
                program or programs of reading instruction grounded on 
                scientifically based reading research that--
                            ``(i) includes the major components of 
                        reading instruction; and
                            ``(ii) provides such instruction to all 
                        children, including children who--
                                    ``(I) may have reading 
                                difficulties;
                                    ``(II) are at risk of being 
                                referred to special education based on 
                                these difficulties;
                                    ``(III) have been evaluated under 
                                section 614 of the Individuals with 
                                Disabilities Education Act but, in 
                                accordance with section 614(b)(5) of 
                                such Act, and have not been identified 
                                as being a child with a disability (as 
                                defined in section 602 of such Act);
                                    ``(IV) are being served under such 
                                Act primarily due to being identified 
                                as being a child with a specific 
                                learning disability (as defined in 
                                section 602 of such Act) related to 
                                reading; or
                                    ``(V) are identified as having 
                                limited English proficiency (as defined 
                                in section 3501).
                    ``(C) Procuring and implementing instructional 
                materials grounded on scientifically based reading 
                research.
                    ``(D) Providing professional development for 
                teachers of grades kindergarten through 3 that--
                            ``(i) will prepare these teachers in all of 
                        the major components of reading instruction;
                            ``(ii) shall include--
                                    ``(I) information on instructional 
                                materials, programs, strategies, and 
                                approaches grounded on scientifically 
                                based reading research, including early 
                                intervention and reading remediation 
                                materials, programs, and approaches; 
                                and
                                    ``(II) instruction in the use of 
                                rigorous diagnostic reading assessments 
                                and other procedures that effectively 
                                identify students who may be at risk 
                                for reading failure or who are having 
                                difficulty reading; and
                            ``(iii) may be provided by eligible 
                        professional development providers or 
                        otherwise.
                    ``(E) Promoting reading and library programs that 
                provide access to engaging reading material.
                    ``(F) Providing training to individuals who 
                volunteer to be reading tutors for students to enable 
                the volunteers to support instructional practices that 
                are based on scientific reading research and being used 
                by the student's teacher.
                    ``(G) Assisting parents, through the use of 
                materials, programs, strategies and approaches, that 
                are based on scientific reading research, to help 
                support their children's reading development.
                    ``(H) Collecting and summarizing data from rigorous 
                diagnostic reading assessments--
                            ``(i) to document the effectiveness of this 
                        subpart in individual schools and in the local 
                        educational agency as a whole; and
                            ``(ii) to stimulate and accelerate 
                        improvement by identifying the schools that 
                        produce the significant gains in reading 
                        achievement.
                    ``(I) Reporting data in the same manner as data is 
                reported under section 1116(c).
    ``(9) Local planning and administration.--A local educational 
agency that receives a subgrant under this subsection may use not more 
than 5 percent of the funds provided under the subgrant for planning 
and administration.
    ``(d) Other State Uses of Funds.--
            ``(1) In general.--A State that receives a grant under this 
        section may expend not more than a total of 20 percent of the 
        grant funds to carry out the activities described in paragraphs 
        (3), (4), and (5).
            ``(2) Priority.--A State shall give priority to carrying 
        out the activities described in paragraphs (3), (4), and (5) 
        for schools described in subsection (c)(6).
            ``(3) Professional development.--A State that receives a 
        grant under this section may expend not more than 15 percent of 
        the amount of the funds provided under the grant to develop and 
        implement a program of professional development for teachers of 
        grades kindergarten through 3 that--
                    ``(A) will prepare these teachers in all of the 
                major components of reading instruction;
                    ``(B) shall include--
                            ``(i) information on instructional 
                        materials, programs, strategies, and approaches 
                        grounded on scientifically based reading 
                        research, including early intervention and 
                        reading remediation materials, programs, and 
                        approaches; and
                            ``(ii) instruction in the use of rigorous 
                        diagnostic reading assessments and other 
                        procedures that effectively identify students 
                        who may be at risk for reading failure or who 
                        are having difficulty reading; and
                    ``(C) may be provided by eligible professional 
                development providers or otherwise.
            ``(4) Technical assistance for local educational agencies 
        and schools.--A State that receives a grant under this section 
        may expend not more than 5 percent of the amount of the funds 
        provided under the grant for one or more of the following 
        authorized State activities:
                    ``(A) Assisting local educational agencies in 
                accomplishing the tasks required to design and 
                implement a program under this subpart, including--
                            ``(i) selecting and implementing a program 
                        or programs of reading instruction grounded on 
                        scientifically based reading research;
                            ``(ii) selecting or developing rigorous 
                        diagnostic reading assessments; and
                            ``(iii) identifying eligible professional 
                        development providers to help prepare reading 
                        teachers to teach students using the programs 
                        and assessments described in subparagraphs (A) 
                        and (B).
                    ``(B) Providing expanded opportunities to students 
                in grades kindergarten through 3 within eligible local 
                educational agencies for receiving reading assistance 
                from alternative providers that includes--
                            ``(i) a rigorous diagnostic reading 
                        assessment; and
                            ``(ii) instruction in the major components 
                        of reading that is based on scientific reading 
                        research.
            ``(3) Planning, administration, and reporting.--
                    ``(A) In general.--A State that receives a grant 
                under this section shall expend not more than 5 percent 
                of the amount of the funds provided under the grant for 
                the activities described in this paragraph.
                    ``(B) Planning and administration.--A State that 
                receives a grant under this section may expend funds 
                made available under subparagraph (A) for planning and 
                administration relating to the State uses of funds 
                authorized under this subpart, including the following:
                            ``(i) Administering the distribution of 
                        competitive subgrants to local educational 
                        agencies under sections 1222 and 1223.
                            ``(ii) Collecting and summarizing data from 
                        rigorous diagnostic reading assessments--
                                    ``(I) to document the effectiveness 
                                of this subpart in individual local 
                                educational agencies and in the State 
                                as a whole; and
                                    ``(II) to stimulate and accelerate 
                                improvement by identifying the local 
                                educational agencies that produce 
                                significant gains in reading 
                                achievement.
                    ``(C) Annual reporting.--
                            ``(i) In general.--A State that receives a 
                        grant under this section shall expend funds 
                        provided under the grant to provide the 
                        Secretary annually with a report on the 
                        implementation of this subpart. The report 
                        shall include evidence that the State is 
                        fulfilling its obligations under this subpart. 
                        The report shall also include the data required 
                        under subsection (c)(7)(H) to be reported to 
                        the State by local educational agencies. The 
                        report shall include a specific identification 
                        of those local educational agencies that report 
                        significant gains in reading achievement 
                        overall and such gains based on disaggregated 
                        data, reported in the same manner as data is 
                        reported under section 1116(c).
                            ``(ii) Privacy protection.--Data in the 
                        report shall be reported in a manner that 
                        protects the privacy of individuals.
                            ``(iii) Contract.--To the extent 
                        practicable, a State shall enter into a 
                        contract with an entity that conducts 
                        scientifically based reading research, under 
                        which contract the entity will assist the State 
                        in producing the reports required to be 
                        submitted under this subparagraph.

``SEC. 1223. COMPETITIVE GRANTS TO STATES; COMPETITIVE SUBGRANTS TO 
              LOCAL AGENCIES.

    ``(a) In General.--In the case of a State that in accordance with 
section 1224 submits to the Secretary an application, the Secretary may 
award a grant, on a competitive basis, to the State for the use 
specified in subsection (c). The grant shall consist of the allotment 
determined for the State under subsection (b).
    ``(b) Determination of Amount of Allotment.--
            ``(1) In general.--From the total amount made available to 
        carry out this subpart for any fiscal year referred to in 
        subsection (a) that is neither used under section 1222 nor 
        reserved under section 1225, the Secretary may allot such 
        remaining amount under this section among each of the 50 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.
            ``(2) State allotments.--
                    ``(A) In general.--In carrying out paragraph (1), 
                the Secretary shall allot such funds to those States 
                that demonstrate the most effective implementation of 
                this subpart, as determined by the peer review panel 
                convened under section 1224 based upon the application 
                contents described in subparagraph (B).
                    ``(B) Application contents.--A State that desires 
                to receive a grant under this section shall include in 
                its application the following:
                            ``(i) Evidence that the State has carried 
                        out its obligations under this subpart.
                            ``(ii) Evidence that the State has 
                        increased significantly the percentage of 
                        students reading at grade level or above by the 
                        end of the third grade.
                            ``(iii) Evidence that the State has been 
                        successful in reducing the reading deficit in 
                        terms of the percentage of students in ethnic, 
                        racial, and low-income populations who are 
                        reading at grade level or above by the end of 
                        the third grade.
                            ``(iv) The amount of funds being requested 
                        by the State and a description of the criteria 
                        the State intends to use in distributing 
                        subgrants to local educational agencies under 
                        this section to continue or expand activities 
                        under this subpart.
                            ``(v) Any additional evidence that 
                        demonstrates success in the implementation of 
                        this subpart.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant to a 
        State under this section only if the State agrees to expend 100 
        percent of the amount of the funds provided under the grant for 
        the purpose of making competitive subgrants in accordance with 
        this subsection to local educational agencies.
            ``(2) Notice.--A State receiving a grant under this section 
        shall provide notice to all eligible local educational agencies 
        in the State of the availability of competitive subgrants under 
        this subsection and of the requirements for applying for the 
        subgrants.
            ``(3) Application.--To apply for a subgrant under this 
        subsection, an eligible local educational agency shall submit 
        an application to the State at such time, in such manner, and 
        containing such information as the State may reasonably 
        require.
            ``(4) Distribution.--A State shall distribute funds under 
        this section, on a competitive basis, based on the following 
        criteria:
                    ``(A) Evidence that a local educational agency has 
                carried out its obligations under this subpart.
                    ``(B) Evidence that a local educational agency has 
                increased significantly the percentage of students 
                reading at grade level or above by the end of the third 
                grade.
                    ``(C) Evidence that a local educational agency has 
                been successful in reducing the reading deficit in 
                terms of the percentage of students in ethnic, racial, 
                and low-income populations who are reading at grade 
                level or above by the end of the third grade.
                    ``(D) The amount of funds being requested by a 
                local educational agency in its application under 
                paragraph (3) and the description in such application 
                of how such funds will be used to support the 
                continuation or expansion of the agency's programs 
                under this subpart.
                    ``(E) Evidence that the local educational agency 
                will work with other eligible local educational 
                agencies in the State who have not received a subgrant 
                under this subsection to assist such nonreceiving 
                agencies in increasing the reading achievement of 
                students.
                    ``(F) Any additional evidence in a local 
                educational agency's application under paragraph (3) 
                that demonstrates success in the implementation of this 
                subpart.
            ``(5) Local uses of funds.--A local educational agency that 
        receives a subgrant under this subsection shall use the funds 
        provided under the subgrant to carry out the activities 
        described in subparagraphs (A) through (G) of section 
        1222(c)(7).

``SEC. 1224. STATE APPLICATIONS.

    ``(a) In General.--A State that desires to receive a grant under 
this subpart shall submit an application to the Secretary at such time 
and in such form as the Secretary may require. The application shall 
contain the information described in subsection (b).
    ``(b) Contents.--An application under this section shall contain 
the following:
            ``(1) An assurance that the Governor of the State, in 
        consultation with the State educational agency, has established 
        a reading and literacy partnership described in subsection (d), 
        and a description of how such partnership--
                    ``(A) coordinated the development of the 
                application; and
                    ``(B) will assist in the oversight and evaluation 
                of the State's activities under this subpart.
            ``(2) A description of a strategy to expand, continue, or 
        modify activities commenced under part C of title II of this 
        Act (as such part was in effect on the day before the date of 
        the enactment of the Better Education for Students and Teachers 
        Act).
            ``(3) An assurance that the State will submit to the 
        Secretary, at such time and in such manner as the Secretary may 
        reasonably require, a State plan containing a description of 
        the following:
                    ``(A) How the State will assist local educational 
                agencies in identifying rigorous diagnostic reading 
                assessments.
                    ``(B) How the State will assist local educational 
                agencies in identifying instructional materials, 
                programs, strategies, and approaches, grounded on 
                scientifically based reading research, including early 
                intervention and reading remediation materials, 
                programs and approaches.
                    ``(C) How the State educational agency will ensure 
                that professional development activities related to 
                reading instruction and provided under this subpart 
                are--
                            ``(i) coordinated with other State and 
                        local level funds and used effectively to 
                        improve instructional practices for reading; 
                        and
                            ``(ii) based on scientifically based 
                        reading research.
                    ``(D) How the activities assisted under this 
                subpart will address the needs of teachers and other 
                instructional staff in schools receiving assistance 
                under this subpart and will effectively teach students 
                to read.
                    ``(E) The extent to which the activities will 
                prepare teachers in all the major components of reading 
                instruction.
                    ``(F) How subgrants made by the State educational 
                agency under this subpart will meet the requirements of 
                this subpart, including how the State educational 
                agency will ensure that local educational agencies 
                receiving subgrants under this subpart will use 
                practices based on scientifically based reading 
                research.
                    ``(G) How the State educational agency will, to the 
                extent practicable, make grants to subgrantees in both 
                rural and urban areas.
                    ``(H) How the State educational agency--
                            ``(i) will build on, and promote 
                        coordination among, literacy programs in the 
                        State (including federally funded programs such 
                        as the Adult Education and Family Literacy Act 
                        and the Individuals with Disabilities Education 
                        Act), in order to increase the effectiveness of 
                        the programs in improving reading for adults 
                        and children and to avoid duplication of the 
                        efforts of the program; and
                            ``(ii) will assess and evaluate, on a 
                        regular basis, local educational agency 
                        activities assisted under this subpart, with 
                        respect to whether they have been effective in 
                        achieving the purposes of this subpart.
    ``(c) Approval of Applications.--
            ``(1) In general.--The Secretary shall approve an 
        application of a State under this section only if such 
        application meets the requirement of this section.
            ``(2) Peer review.--
                    ``(A) In general.--The Secretary, in consultation 
                with the National Institute for Literacy, shall convene 
                a panel to evaluate applications under this section. At 
                a minimum, the panel shall include--
                            ``(i) 3 individuals selected by the 
                        Secretary;
                            ``(ii) 3 individuals selected by the 
                        National Institute for Literacy;
                            ``(iii) 3 individuals selected by the 
                        National Research Council of the National 
                        Academy of Sciences; and
                            ``(iv) 3 individuals selected by the 
                        National Institute of Child Health and Human 
                        Development.
                    ``(B) Experts.--The panel shall include experts who 
                are competent, by virtue of their training, expertise, 
                or experience, to evaluate applications under this 
                section, and experts who provide professional 
                development to teachers of reading to children and 
                adults, and experts who provide professional 
                development to other instructional staff, based on 
                scientifically based reading research.
                    ``(C) Recommendations.--The panel shall recommend 
                grant applications from States under this section to 
                the Secretary for funding or for disapproval.
    ``(d) Reading and Literacy Partnerships.--
            ``(1) Required participants.--In order for a State to 
        receive a grant under this subpart, the Governor of the State, 
        in consultation with the State educational agency, shall 
        establish a reading and literacy partnership consisting of at 
        least the following participants:
                    ``(A) The Governor of the State.
                    ``(B) The chief State school officer.
                    ``(C) The chairman and the ranking member of each 
                committee of the State legislature that is responsible 
                for education policy.
                    ``(D) A representative, selected jointly by the 
                Governor and the chief State school officer, of at 
                least one local educational agency that is eligible to 
                receive a subgrant under section 1222.
                    ``(E) A representative, selected jointly by the 
                Governor and the chief State school officer, of a 
                community-based organization working with children to 
                improve their reading skills, particularly a community-
                based organization using tutors and scientifically 
                based reading research.
                    ``(F) State directors of appropriate Federal or 
                State programs with a strong reading component.
                    ``(G) A parent of a public or private school 
                student or a parent who educates their child or 
                children in their home, selected jointly by the 
                Governor and the chief State school officer.
                    ``(H) A teacher who successfully teaches reading 
                and an instructional staff member, selected jointly by 
                the Governor and the chief State school officer.
                    ``(I) A family literacy service provider selected 
                jointly by the Governor and the chief state school 
                officer.
            ``(2) Optional participants.--A reading and literacy 
        partnership may include additional participants, who shall be 
        selected jointly by the Governor and the chief State school 
        officer, and who may include a representative of--
                    ``(A) an institution of higher education operating 
                a program of teacher preparation based on 
                scientifically based reading research in the State;
                    ``(B) a local educational agency;
                    ``(C) a private nonprofit or for-profit eligible 
                professional development provider providing instruction 
                based on scientifically based reading research;
                    ``(D) an adult education provider;
                    ``(E) a volunteer organization that is involved in 
                reading programs; or
                    ``(F) a school library or a public library that 
                offers reading or literacy programs for children or 
                families.
            ``(3) Preexisting partnership.--If, before the date of the 
        enactment of the Better Education for Students and Teachers 
        Act, a State established a consortium, partnership, or any 
        other similar body that was considered a reading and literacy 
        partnership for purposes of part C of title II of this Act (as 
        such part was in effect on the day before the date of the 
        enactment of the Better Education for Students and Teachers 
        Act), that consortium, partnership, or body may be considered a 
        reading and literacy partnership for purposes of this subpart 
        notwithstanding that it does not satisfy the requirements of 
        paragraph (1).

``SEC. 1225. RESERVATIONS FROM APPROPRIATIONS.

    ``From the amounts appropriated to carry out this subpart for a 
fiscal year, the Secretary--
            ``(1) may reserve not more than 1 percent to carry out 
        section 1226 (relating to national activities); and
            ``(2) shall reserve $5,000,000 to carry out section 1227 
        (relating to information dissemination).

``SEC. 1226. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1225(1), the Secretary--
            ``(1) through grants or contracts, shall conduct an 
        evaluation of the program under this subpart using criteria 
        recommended by the peer review panel convened under section 
        1224; and
            ``(2) may provide technical assistance in achieving the 
        purposes of this subpart to States, local educational agencies, 
        and schools requesting such assistance.

``SEC. 1227. INFORMATION DISSEMINATION.

    ``(a) In General.--From funds reserved under section 1225(2), the 
National Institute for Literacy, in collaboration with the Departments 
of Education and Health and Human Services, including the National 
Institute for Child Health and Human Development, shall--
            ``(1) disseminate information on scientifically based 
        reading research pertaining to children, youth, and adults;
            ``(2) identify and disseminate information about schools, 
        local educational agencies, and States that effectively 
        developed and implemented reading programs that meet the 
        requirements of this subpart, including those effective States, 
        local educational agencies, and schools identified through the 
        evaluation and peer review provisions of this subpart; and
            ``(3) support the continued identification of 
        scientifically based reading research that can lead to improved 
        reading outcomes for children, youth, and adults through 
        evidenced-based assessments of the scientific research 
        literature.
    ``(b) Dissemination and Coordination.--At a minimum, the National 
Institute for Literacy shall disseminate such information to recipients 
of Federal financial assistance under titles I and III, the Head Start 
Act, the Individuals With Disabilities Education Act, and the Adult 
Education and Family Literacy Act. In carrying out this section, the 
National Institute for Literacy shall, to the extent practicable, 
utilize existing information and dissemination networks developed and 
maintained through other public and private entities.
    ``(c) Use of Funds.--The National Institute for Literacy may use 
not more than 5 percent of the funds made available under section 
1225(2) for administrative purposes directly related to carrying out of 
activities authorized by this section.

``SEC. 1228. DEFINITIONS.

    ``For purposes of this subpart:
            ``(1) Eligible professional development provider.--The term 
        `eligible professional development provider' means a provider 
        of professional development in reading instruction to teachers 
        that is based on scientifically based reading research.
            ``(2) Instructional staff.--The term `instructional 
        staff'--
                    ``(A) means individuals who have responsibility for 
                teaching children to read; and
                    ``(B) includes principals, teachers, supervisors of 
                instruction, librarians, library school media 
                specialists, teachers of academic subjects other than 
                reading, and other individuals who have responsibility 
                for assisting children to learn to read.
            ``(3) Major components of reading instruction.--The term 
        `major components of reading instruction' means systematic 
        instruction that includes--
                    ``(A) phonemic awareness;
                    ``(B) phonics;
                    ``(C) vocabulary development;
                    ``(D) reading fluency; and
                    ``(E) reading comprehension strategies.
            ``(4) Reading.--The term `reading' means a complex system 
        of deriving meaning from print that requires all of the 
        following:
                    ``(A) The skills and knowledge to understand how 
                phonemes, or speech sounds, are connected to print.
                    ``(B) The ability to decode unfamiliar words.
                    ``(C) The ability to read fluently.
                    ``(D) Sufficient background information and 
                vocabulary to foster reading comprehension.
                    ``(E) The development of appropriate active 
                strategies to construct meaning from print.
                    ``(F) The development and maintenance of a 
                motivation to read.
            ``(5) Rigorous diagnostic reading assessment.--The term 
        `rigorous diagnostic reading assessment' means a diagnostic 
        reading assessment that--
                    ``(A) is valid, reliable, and grounded in 
                scientifically based reading research;
                    ``(B) measures progress in phonemic awareness and 
                phonics, vocabulary development, reading fluency, and 
                reading comprehension; and
                    ``(C) identifies students who may be at risk for 
                reading failure or who are having difficulty reading.
            ``(6) Scientifically based reading research.--The term 
        `scientifically based reading research'--
                    ``(A) means research that applies rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to reading development, reading 
                instruction, and reading difficulties; and
                    ``(B) shall include research that--
                            ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                            ``(iv) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.''.

SEC. 122. EARLY READING INITIATIVE.

    Part B of title I (20 U.S.C. 6361 et seq.) is amended further by 
adding at the end the following:

                    ``Subpart 3--Early Reading First

``SEC. 1241. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To support local efforts to enhance the school 
        readiness of young children, particularly those from low-income 
        families, through scientific, research-based strategies and 
        professional development that are designed to enhance the early 
        language and literacy development of children aged 3 through 5.
            ``(2) To provide children aged 3 through 5 with cognitive 
        learning opportunities in high-quality language and literature-
        rich environments, so that they can attain the fundamental 
        knowledge necessary for optimal reading development in 
        kindergarten and beyond.
            ``(3) To integrate these learning opportunities with family 
        literacy services.
            ``(4) To demonstrate research-based language and literacy 
        activities, which can be integrated with existing preschool 
        programs, that support the age-appropriate development of 
        letter knowledge, letter sounds and blending of sounds, words, 
        the use of books, and the understanding and use of an 
        increasingly complex and rich spoken vocabulary, developed in 
        part through teacher-read stories, as well as other activities 
        that build a strong foundation for learning to read.

``SEC. 1242. LOCAL EARLY READING FIRST GRANTS.

    ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(3), the Secretary shall award grants, on a competitive basis, 
for periods of not more than 4 years, to eligible applicants to enable 
the eligible applicants to carry out activities that are consistent 
with the purposes of this subpart.
    ``(b) Definition of Eligible Applicant.--In this subpart the term 
`eligible applicant' means--
            ``(1) one or more local educational agencies that are 
        eligible to receive a subgrant under subpart 2;
            ``(2) one or more public or private organizations, acting 
        on behalf of 1 or more programs that serve preschool age 
        children (such as a program at a Head Start center or a family 
        literacy program), which organizations shall be located in a 
        community served by a local educational agency described in 
        paragraph (1); or
            ``(3) one or more local educational agencies described in 
        paragraph (1) in collaboration with one or more organizations 
        described in paragraph (2).
    ``(c) Applications.--An eligible applicant that desires to receive 
a grant under this section shall submit an application to the Secretary 
which shall include a description of--
            ``(1) the programs to be served by the proposed project, 
        including demographic and socioeconomic information on the 
        children enrolled in the programs;
            ``(2) how the proposed project will prepare and provide 
        ongoing assistance to staff in the programs, through 
        professional development and other support, to provide high-
        quality language, literacy and prereading activities using 
        scientifically based research, for children ages 3 through 5;
            ``(3) how the proposed project will provide services and 
        utilize materials that are based on scientifically based 
        research on early language acquisition, prereading activities, 
        and the development of spoken vocabulary skills;
            ``(4) how the proposed project will help staff in the 
        programs to meet the diverse needs of children in the community 
        better, including children with limited English proficiency, 
        disabilities, or other special needs;
            ``(5) how the proposed project will help children, 
        particularly children experiencing difficulty with spoken 
        language, prereading, and literacy skills, to make the 
        transition from preschool to formal classroom instruction in 
        school;
            ``(6) if the eligible applicant has received a subgrant 
        under subpart 2, how the activities conducted under this 
        subpart will be coordinated with the eligible applicant's 
        activities under subpart 2 at the kindergarten through third-
        grade level;
            ``(7) how the proposed project will determine the success 
        of the activities supported under this subpart in enhancing the 
        early language and literacy development of children served by 
        the project; and
            ``(8) such other information as the Secretary may require.
    ``(d) Approval of Applications.--The Secretary shall select 
applicants for funding under this subpart on the basis of the quality 
of the applications, in consultation with the National Institute for 
Child Health and Human Development, the National Institute for 
Literacy, and the National Academy of Sciences. The Secretary shall 
select applications for approval under this subpart on the basis of a 
peer review process.
    ``(e) Award Amounts.--The Secretary may establish a maximum award 
amount, or ranges of award amounts, for grants under this subpart.

``SEC. 1243. FEDERAL ADMINISTRATION.

    ``The Secretary shall consult with the Secretary of Health and 
Human Services in order to coordinate the activities undertaken under 
this subpart with early childhood programs administered by the 
Department of Health and Human Services.

``SEC. 1244. INFORMATION DISSEMINATION.

    ``From the funds the National Institute for Literacy receives under 
section 1227, the National Institute for Literacy, in consultation with 
the Secretary, shall disseminate information regarding projects 
assisted under this subpart that have proven effective.

``SEC. 1245. REPORTING REQUIREMENTS.

    ``Each eligible applicant receiving a grant under this subpart 
shall report annually to the Secretary regarding the eligible 
applicant's progress in addressing the purposes of this subpart.

``SEC. 1246. EVALUATIONS.

    ``From the total amount appropriated under section 1002(b)(3) for 
the period beginning October 1, 2002 and ending September 30, 2008, the 
Secretary shall reserve not more than $5,000,000 to conduct an 
independent evaluation of the effectiveness of this subpart.

``SEC. 1247. ADDITIONAL RESEARCH.

    ``From the amount appropriated under section 1002(b)(3) for each of 
the fiscal years 2002 through 2006, the Secretary shall reserve not 
more than $3,000,000 to conduct, in consultation with National 
Institute for Child Health and Human Development, the National 
Institute for Literacy, and the Department of Health and Human 
Services, additional research on language and literacy development for 
children aged 3 through 5.''.

                PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 131. PROGRAM PURPOSE.

    Section 1301 (20 U.S.C. 6391) is amended--
            (1) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (7), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) ensure that migratory children who move among the 
        States are not penalized in any manner by disparities among the 
        States in curriculum, graduation requirements, and State 
        student performance and content standards;'';
            (3) in paragraph (5) (as so redesignated), by striking 
        ``and'' after the semicolon;
            (4) in paragraph (6) (as so redesignated), by striking the 
        period and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(7) ensure that migratory children receive full and 
        appropriate opportunities to meet the same challenging State 
        content and student performance standards that all children are 
        expected to meet.''.

SEC. 132. STATE APPLICATION.

    Section 1304 (20 U.S.C. 6394) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``a 
                comprehensive'' and all that follows through ``1306;'' 
                and inserting ``the full range of services that are 
                available for migratory children from appropriate 
                local, State, and Federal educational programs;'';
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (3) through (7), respectively; and
                    (C) by inserting after paragraph (1) the following:
            ``(2) a description of joint planning efforts that will be 
        made with respect to programs assisted under this Act, local, 
        State, and Federal programs, and bilingual education programs 
        under subpart 1 of part A of title III;''; and
            (2) in subsection (c), by amending paragraph (3) to read as 
        follows:
            ``(3) in the planning and operation of programs and 
        projects at both the State and local agency operating level 
        there is consultation with parent advisory councils for 
        programs of one school year in duration, and that all such 
        programs and projects are carried out--
                    ``(A) in a manner consistent with section 1118 
                unless extraordinary circumstances make implementation 
                with such section impractical; and
                    ``(B) in a format and language understandable to 
                the parents;''.

SEC. 133. COMPREHENSIVE PLAN.

    (a) Comprehensive Plan.--Section 1306(a)(1) (20 U.S.C. 6396(a)(1)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``the Goals 2000: Educate America 
                Act,''; and
                    (B) by striking ``14306'' and inserting ``5506''; 
                and
            (2) in subparagraph (B), by striking ``14302;'' and 
        inserting ``5502, if--
                            ``(i) the special needs of migratory 
                        children are specifically addressed in the 
                        comprehensive State plan;
                            ``(ii) the comprehensive State plan is 
                        developed in collaboration with parents of 
                        migratory children; and
                            ``(iii) the comprehensive State planning is 
                        not used to supplant State efforts regarding, 
                        or administrative funding for, this part;''.
    (b) Authorized Activities.--Section 1306(b)(3) (20 U.S.C. 
6396(b)(3)) is amended by inserting ``, and shall meet the special 
educational needs of migrant children before using funds under this 
part for schoolwide programs under section 1114'' before the period.

SEC. 134. COORDINATION.

    Section 1308 (20 U.S.C. 6398) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Access to Information on Migrant Students.--
            ``(1) Information system.--(A) The Secretary shall 
        establish an information system for electronically exchanging, 
        among the States, health and educational information regarding 
        all students served under this part. Such information may 
        include--
                    ``(i) immunization records and other health 
                information;
                    ``(ii) elementary and secondary academic history 
                (including partial credit), credit accrual, and results 
                from State assessments required under this title;
                    ``(iii) other academic information essential to 
                ensuring that migrant children achieve to high 
                standards; and
                    ``(iv) eligibility for services under the 
                Individuals with Disabilities Education Act.
            ``(B) The Secretary shall publish, not later than 120 days 
        after the date of enactment of the Better Education for 
        Students and Teachers Act, a notice in the Federal Register 
        seeking public comment on the proposed data elements that each 
        State receiving funds under this part shall be required to 
        collect for purposes of electronic transfer of migrant student 
        information, the requirements for immediate electronic access 
        to such information, and the educational agencies eligible to 
        access such information.
            ``(C) Such system of electronic access to migrant student 
        information shall be operational not later than 1 year after 
        the date of enactment of the Better Education for Students and 
        Teachers Act.
            ``(D) For the purpose of carrying out this subsection in 
        any fiscal year, the Secretary shall reserve not more than 
        $10,000,000 of the amount appropriated to carry out this part 
        for such year.
            ``(2) Report to congress.--(A) Not later than April 30, 
        2003, the Secretary shall report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and the Workforce of the House of Representatives 
        the Secretary's findings and recommendations regarding services 
        under this part, and shall include in this report, 
        recommendations for the interim measures that may be taken to 
        ensure continuity of services under this part.
            ``(B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records and in 
        determining the number of students or full-time equivalent 
        students in each State if such interim measures are 
        required.''.
            (2) in subsection (c), by striking ``$6,000,000'' and 
        inserting ``$10,000,000'';
            (3) in subsection (d)(1), by striking ``$1,500,000'' and 
        inserting ``$3,000,000''; and
            (4) by adding at the end the following:
    ``(e) Data Collection.--The Secretary shall direct the National 
Center for Education Statistics to collect data on migratory 
children.''.

    PART D--INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK YOUTH

SEC. 141. INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK YOUTH.

    Part D of title I (20 U.S.C. 6421 et seq.) is amended to read as 
follows:

  ``PART D--INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK STUDENTS

  ``Subpart 1--Prevention and Intervention Programs for Children and 
    Youth Who Are Neglected, Delinquent, or at Risk of Dropping Out

``SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.

    ``(a) Purpose.--It is the purpose of this subpart--
            ``(1) to improve educational services for children in local 
        and State institutions for neglected or delinquent children and 
        youth so that such children and youth have the opportunity to 
        meet the same challenging State content standards and 
        challenging State student performance standards that all 
        children in the State are expected to meet;
            ``(2) to provide such children and youth with the services 
        needed to make a successful transition from 
        institutionalization to further schooling or employment; and
            ``(3) to prevent at-risk youth from dropping out of school 
        and to provide dropouts and youth returning from institutions 
        with a support system to ensure their continued education.
    ``(b) Program Authorized.--In order to carry out the purpose of 
this subpart the Secretary shall make grants to State educational 
agencies to enable such agencies to award subgrants to State agencies 
and local educational agencies to establish or improve programs of 
education for neglected or delinquent children and youth at risk of 
dropping out of school before graduation.

``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS SUBPART.

    ``(a) Agency Subgrants.--Based on the allocation amount computed 
under section 1412, the Secretary shall allocate to each State 
educational agency amounts necessary to make subgrants to State 
agencies under chapter 1.
    ``(b) Local Subgrants.--Each State shall retain, for purposes of 
carrying out chapter 2, funds generated throughout the State under part 
A of title I based on youth residing in local correctional facilities, 
or attending community day programs for delinquent children and youth.

                   ``Chapter 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

    ``A State agency is eligible for assistance under this chapter if 
such State agency is responsible for providing free public education 
for children--
            ``(1) in institutions for neglected or delinquent children 
        and youth;
            ``(2) attending community day programs for neglected or 
        delinquent children and youth; or
            ``(3) in adult correctional institutions.

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
            ``(1) In general.--Each State agency described in section 
        1411 (other than an agency in the Commonwealth of Puerto Rico) 
        is eligible to receive a subgrant under this chapter, for each 
        fiscal year, an amount equal to the product of--
                    ``(A) the number of neglected or delinquent 
                children and youth described in section 1411 who--
                            ``(i) are enrolled for at least 15 hours 
                        per week in education programs in adult 
                        correctional institutions; and
                            ``(ii) are enrolled for at least 20 hours 
                        per week--
                                    ``(I) in education programs in 
                                institutions for neglected or 
                                delinquent children and youth; or
                                    ``(II) in community day programs 
                                for neglected or delinquent children 
                                and youth; and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, nor more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Special rule.--The number of neglected or delinquent 
        children and youth determined under paragraph (1) shall--
                    ``(A) be determined by the State agency by a 
                deadline set by the Secretary, except that no State 
                agency shall be required to determine the number of 
                such children and youth on a specific date set by the 
                Secretary; and
                    ``(B) be adjusted, as the Secretary determines is 
                appropriate, to reflect the relative length of such 
                agency's annual programs.
    ``(b) Subgrants to State Agencies in Puerto Rico.--For each fiscal 
year, the amount of the subgrant for which a State agency in the 
Commonwealth of Puerto Rico is eligible under this chapter shall be 
equal to--
            ``(1) the number of children and youth counted under 
        subsection (a)(1)(A) for the Commonwealth of Puerto Rico; 
        multiplied by
            ``(2) the product of--
                    ``(A) the percentage that the average per-pupil 
                expenditure in the Commonwealth of Puerto Rico is of 
                the lowest average per-pupil expenditure of any of the 
                50 States; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
    ``(c) Ratable Reductions in Case of Insufficient Appropriations.--
If the amount appropriated for any fiscal year for subgrants under 
subsections (a) and (b) is insufficient to pay the full amount for 
which all State agencies are eligible under such subsections, the 
Secretary shall ratably reduce each such amount.

``SEC. 1413. STATE REALLOCATION OF FUNDS.

    ``If a State educational agency determines that a State agency does 
not need the full amount of the subgrant for which such State agency is 
eligible under this chapter for any fiscal year, the State educational 
agency may reallocate the amount that will not be needed to other 
eligible State agencies that need additional funds to carry out the 
purpose of this subpart, in such amounts as the State educational 
agency shall determine.

``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

    ``(a) State Plan.--
            ``(1) In general.--Each State educational agency that 
        desires to receive a grant under this chapter shall submit, for 
        approval by the Secretary, a plan for meeting the needs of 
        neglected and delinquent children and youth and, where 
        applicable, children and youth at risk of dropping out of 
        school, that is integrated with other programs under this Act, 
        or other Acts, as appropriate, consistent with section 5506.
            ``(2) Contents.--Each such State plan shall--
                    ``(A) describe the program goals, objectives, and 
                performance measures established by the State that will 
                be used to assess the effectiveness of the program in 
                improving academic and vocational skills of children in 
                the program;
                    ``(B) provide that, to the extent feasible, such 
                children will have the same opportunities to learn as 
                such children would have if such children were in the 
                schools of local educational agencies in the State; and
                    ``(C) contain assurances that the State educational 
                agency will--
                            ``(i) ensure that programs assisted under 
                        this subpart will be carried out in accordance 
                        with the State plan described in this 
                        subsection;
                            ``(ii) carry out the evaluation 
                        requirements of section 1431;
                            ``(iii) ensure that the State agencies 
                        receiving subgrants under this chapter comply 
                        with all applicable statutory and regulatory 
                        requirements; and
                            ``(iv) provide such other information as 
                        the Secretary may reasonably require.
            ``(3) Duration of the plan.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this subpart; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this subpart.
    ``(b) Secretarial Approval; Peer Review.--
            ``(1) In general.--The Secretary shall approve each State 
        plan that meets the requirements of this part.
            ``(2) Peer review.--The Secretary may review any State plan 
        with the assistance and advice of individuals with relevant 
        expertise.
    ``(c) State Agency Applications.--Any State agency that desires to 
receive funds to carry out a program under this chapter shall submit an 
application to the State educational agency that--
            ``(1) describes the procedures to be used, consistent with 
        the State plan under section 1111, to assess the educational 
        needs of the children to be served;
            ``(2) provides assurances that in making services available 
        to youth in adult correctional institutions, priority will be 
        given to such youth who are likely to complete incarceration 
        within a 2-year period;
            ``(3) describes the program, including a budget for the 
        first year of the program, with annual updates to be provided 
        to the State educational agency;
            ``(4) describes how the program will meet the goals and 
        objectives of the State plan;
            ``(5) describes how the State agency will consult with 
        experts and provide the necessary training for appropriate 
        staff, to ensure that the planning and operation of 
        institution-wide projects under section 1416 are of high 
        quality;
            ``(6) describes how the agency will carry out evaluation 
        activities and how the results of the most recent evaluation 
        are used to plan and improve the program;
            ``(7) includes data showing that the agency has maintained 
        the fiscal effort required of a local educational agency, in 
        accordance with section 4;
            ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, such as programs 
        under title I of the Workforce Investment Act of 1998, 
        vocational education programs, State and local dropout 
        prevention programs, and special education programs;
            ``(9) describes how appropriate professional development 
        will be provided to teachers and other staff;
            ``(10) designates an individual in each affected 
        institution to be responsible for issues relating to the 
        transition of children and youth from the institution to 
        locally operated programs;
            ``(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring for 
        participating children and youth;
            ``(12) provides assurances that the agency will assist in 
        locating alternative programs through which students can 
        continue their education if students are not returning to 
        school after leaving the correctional facility;
            ``(13) provides assurances that the agency will work with 
        parents to secure parents' assistance in improving the 
        educational achievement of their children and preventing their 
        children's further involvement in delinquent activities;
            ``(14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that the 
        agency will notify the youth's local school if the youth--
                    ``(A) is identified as in need of special education 
                services while the youth is in the facility; and
                    ``(B) intends to return to the local school;
            ``(15) provides assurances that the agency will work with 
        youth who dropped out of school before entering the facility to 
        encourage the youth to reenter school once the term of the 
        youth has been completed or provide the youth with the skills 
        necessary to gain employment, continue the education of the 
        youth, or achieve a secondary school diploma or its recognized 
        equivalent if the youth does not intend to return to school;
            ``(16) provides assurances that teachers and other 
        qualified staff are also trained to work with children with 
        disabilities and other students with special needs taking into 
        consideration the unique needs of such students;
            ``(17) describes any additional services provided to 
        children and youth, such as career counseling, and assistance 
        in securing student loans and grants; and
            ``(18) provides assurances that the program under this 
        chapter will be coordinated with any programs operated under 
        the Juvenile Justice and Delinquency Prevention Act of 1974 or 
        other comparable programs, if applicable.

``SEC. 1415. USE OF FUNDS.

    ``(a) Uses.--
            ``(1) In general.--A State agency shall use funds received 
        under this chapter only for programs and projects that--
                    ``(A) are consistent with the State plan under 
                section 1414(a); and
                    ``(B) concentrate on providing participants with 
                the knowledge and skills needed to make a successful 
                transition to secondary school completion, further 
                education, or employment.
            ``(2) Programs and projects.--Such programs and projects--
                    ``(A) may include the acquisition of equipment;
                    ``(B) shall be designed to support educational 
                services that--
                            ``(i) except for institution-wide projects 
                        under section 1416, are provided to children 
                        and youth identified by the State agency as 
                        failing, or most at risk of failing, to meet 
                        the State's challenging State content standards 
                        and challenging State student performance 
                        standards;
                            ``(ii) supplement and improve the quality 
                        of the educational services provided to such 
                        children and youth by the State agency; and
                            ``(iii) afford such children and youth an 
                        opportunity to learn to such challenging State 
                        standards;
                    ``(C) shall be carried out in a manner consistent 
                with section 1120A and part H of title I; and
                    ``(D) may include the costs of evaluation 
                activities.
    ``(b) Supplement, Not Supplant.--A program under this chapter that 
supplements the number of hours of instruction students receive from 
State and local sources shall be considered to comply with the 
supplement, not supplant requirement of section 1120A without regard to 
the subject areas in which instruction is given during those hours.

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for children 
and youth in an institution for neglected or delinquent children and 
youth (other than an adult correctional institution) or attending a 
community-day program for such children may use funds received under 
this part to serve all children in, and upgrade the entire educational 
effort of, that institution or program if the State agency has 
developed, and the State educational agency has approved, a 
comprehensive plan for that institution or program that--
            ``(1) provides for a comprehensive assessment of the 
        educational needs of all youth in the institution or program 
        serving juveniles;
            ``(2) provides for a comprehensive assessment of the 
        educational needs of youth aged 20 and younger in adult 
        facilities who are expected to complete incarceration within a 
        two-year period;
            ``(3) describes the steps the State agency has taken, or 
        will take, to provide all youth under age 21 with the 
        opportunity to meet challenging State content standards and 
        challenging State student performance standards in order to 
        improve the likelihood that the youths will complete secondary 
        school, attain a secondary diploma or its recognized 
        equivalent, or find employment after leaving the institution;
            ``(4) describes the instructional program, pupil services, 
        and procedures that will be used to meet the needs described in 
        paragraph (1), including, to the extent feasible, the provision 
        of mentors for students;
            ``(5) specifically describes how such funds will be used;
            ``(6) describes the measures and procedures that will be 
        used to assess student progress;
            ``(7) describes how the agency has planned, and will 
        implement and evaluate, the institution-wide or program-wide 
        project in consultation with personnel providing direct 
        instructional services and support services in institutions or 
        community-day programs for neglected or delinquent children and 
        personnel from the State educational agency; and
            ``(8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and other 
        instructional and administrative personnel to enable such 
        teachers and personnel to carry out the project effectively.

``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

    ``If a State agency operates a program or project under this 
chapter in which individual children are likely to participate for more 
than 1 year, the State educational agency may approve the State 
agency's application for a subgrant under this chapter for a period of 
not more than 3 years.

``SEC. 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not 
more than 10 percent of the amount such agency receives under this 
chapter for any fiscal year to support projects that facilitate the 
transition of children and youth from State-operated institutions to 
local educational agencies.
    ``(b) Conduct of Projects.--A project supported under this section 
may be conducted directly by the State agency, or through a contract or 
other arrangement with one or more local educational agencies, other 
public agencies, or private nonprofit organizations.
    ``(c) Limitation.--Any funds reserved under subsection (a) shall be 
used only to provide transitional educational services, which may 
include pupil services and mentoring, to neglected and delinquent 
children and youth in schools other than State-operated institutions.
    ``(d) Construction.--Nothing in this section shall be construed to 
prohibit a school that receives funds under subsection (a) from serving 
neglected and delinquent children and youth simultaneously with 
students with similar educational needs, in the same educational 
settings where appropriate.

                   ``Chapter 2--Local Agency Programs

``SEC. 1421. PURPOSE.

    ``The purpose of this chapter is to support the operation of local 
educational agency programs that involve collaboration with locally 
operated correctional facilities to--
            ``(1) carry out high quality education programs to prepare 
        youth for secondary school completion, training, and 
        employment, or further education;
            ``(2) provide activities to facilitate the transition of 
        such youth from the correctional program to further education 
        or employment; and
            ``(3) operate dropout prevention programs in local schools 
        for youth at risk of dropping out of school and youth returning 
        from correctional facilities.

``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Local Subgrants.--With funds made available under section 
1412(b), the State educational agency shall award subgrants to local 
educational agencies with high numbers or percentages of youth residing 
in locally operated (including county operated) correctional facilities 
for youth (including facilities involved in community day programs).
    ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a dropout prevention program if more than 30 percent of the youth 
attending such facility will reside outside the boundaries of the local 
educational agency upon leaving such facility.
    ``(c) Notification.--A State educational agency shall notify local 
educational agencies within the State of the eligibility of such 
agencies to receive a subgrant under this chapter.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Eligible local educational agencies desiring assistance under 
this chapter shall submit an application to the State educational 
agency, containing such information as the State educational agency may 
require. Each such application shall include--
            ``(1) a description of the program to be assisted;
            ``(2) a description of formal agreements between--
                    ``(A) the local educational agency; and
                    ``(B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
            ``(3) as appropriate, a description of how participating 
        schools will coordinate with facilities working with delinquent 
        youth to ensure that such youth are participating in an 
        education program comparable to one operating in the local 
        school such youth would attend;
            ``(4) as appropriate, a description of the dropout 
        prevention program operated by participating schools and the 
        types of services such schools will provide to at-risk youth in 
        participating schools and youth returning from correctional 
        facilities;
            ``(5) as appropriate, a description of the youth expected 
        to be served by the dropout prevention program and how the 
        school will coordinate existing educational programs to meet 
        unique education needs;
            ``(6) as appropriate, a description of how schools will 
        coordinate with existing social and health services to meet the 
        needs of students at risk of dropping out of school and other 
        participating students, including prenatal health care and 
        nutrition services related to the health of the parent and 
        child, parenting and child development classes, child care, 
        targeted re-entry and outreach programs, referrals to community 
        resources, and scheduling flexibility;
            ``(7) as appropriate, a description of any partnerships 
        with local businesses to develop training and mentoring 
        services for participating students;
            ``(8) as appropriate, a description of how the program will 
        involve parents in efforts to improve the educational 
        achievement of their children, assist in dropout prevention 
        activities, and prevent the involvement of their children in 
        delinquent activities;
            ``(9) a description of how the program under this chapter 
        will be coordinated with other Federal, State, and local 
        programs, such as programs under title I of the Workforce 
        Investment Act of 1998 and vocational education programs 
        serving at-risk youth;
            ``(10) a description of how the program will be coordinated 
        with programs operated under the Juvenile Justice and 
        Delinquency Prevention Act of 1974 and other comparable 
        programs, if applicable;
            ``(11) as appropriate, a description of how schools will 
        work with probation officers to assist in meeting the needs of 
        youth returning from correctional facilities;
            ``(12) a description of efforts participating schools will 
        make to ensure correctional facilities working with youth are 
        aware of a child's existing individualized education program; 
        and
            ``(13) as appropriate, a description of the steps 
        participating schools will take to find alternative placements 
        for youth interested in continuing their education but unable 
        to participate in a regular public school program.

``SEC. 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this chapter 
may be used, where appropriate, for--
            ``(1) dropout prevention programs which serve youth at 
        educational risk, including pregnant and parenting teens, youth 
        who have come in contact with the juvenile justice system, 
        youth at least one year behind their expected grade level, 
        migrant youth, immigrant youth, students with limited-English 
        proficiency and gang members;
            ``(2) the coordination of health and social services for 
        such individuals if there is a likelihood that the provision of 
        such services, including day care and drug and alcohol 
        counseling, will improve the likelihood such individuals will 
        complete their education; and
            ``(3) programs to meet the unique education needs of youth 
        at risk of dropping out of school, which may include vocational 
        education, special education, career counseling, and assistance 
        in securing student loans or grants.

``SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
              FUNDS UNDER THIS SECTION.

    ``Each correctional facility having an agreement with a local 
educational agency under section 1423(2) to provide services to youth 
under this chapter shall--
            ``(1) where feasible, ensure educational programs in 
        juvenile facilities are coordinated with the student's home 
        school, particularly with respect to special education students 
        with an individualized education program;
            ``(2) notify the local school of a youth if the youth is 
        identified as in need of special education services while in 
        the facility;
            ``(3) where feasible, provide transition assistance to help 
        the youth stay in school, including coordination of services 
        for the family, counseling, assistance in accessing drug and 
        alcohol abuse prevention programs, tutoring, and family 
        counseling;
            ``(4) provide support programs which encourage youth who 
        have dropped out of school to reenter school once their term 
        has been completed or provide such youth with the skills 
        necessary for such youth to gain employment or seek a secondary 
        school diploma or its recognized equivalent;
            ``(5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to work with 
        children with disabilities and other students with special 
        needs taking into consideration the unique needs of such 
        children and students;
            ``(6) ensure educational programs in correctional 
        facilities are related to assisting students to meet high 
        educational standards;
            ``(7) use, to the extent possible, technology to assist in 
        coordinating educational programs between the juvenile facility 
        and the community school;
            ``(8) where feasible, involve parents in efforts to improve 
        the educational achievement of their children and prevent the 
        further involvement of such children in delinquent activities;
            ``(9) coordinate funds received under this program with 
        other local, State, and Federal funds available to provide 
        services to participating youth, such as funds made available 
        under title I of the Workforce Investment Act of 1998, and 
        vocational education funds;
            ``(10) coordinate programs operated under this chapter with 
        activities funded under the Juvenile Justice and Delinquency 
        Prevention Act of 1974 and other comparable programs, if 
        applicable; and
            ``(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for participating 
        youth.

``SEC. 1426. ACCOUNTABILITY.

    ``The State educational agency may--
            ``(1) reduce or terminate funding for projects under this 
        chapter if a local educational agency does not show progress in 
        reducing dropout rates for male students and for female 
        students over a 3-year period; and
            ``(2) require juvenile facilities to demonstrate, after 
        receiving assistance under this chapter for 3 years, that there 
        has been an increase in the number of youth returning to 
        school, obtaining a secondary school diploma or its recognized 
        equivalent, or obtaining employment after such youth are 
        released.

                    ``Chapter 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

    ``(a) Scope of Evaluation.--Each State agency or local educational 
agency that conducts a program under chapter 1 or 2 shall evaluate the 
program, disaggregating data on participation by sex, and if feasible, 
by race, ethnicity, and age, not less than once every 3 years to 
determine the program's impact on the ability of participants to--
            ``(1) maintain and improve educational achievement;
            ``(2) accrue school credits that meet State requirements 
        for grade promotion and secondary school graduation;
            ``(3) make the transition to a regular program or other 
        education program operated by a local educational agency; and
            ``(4) complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after leaving 
        the institution.
    ``(b) Evaluation Measures.--In conducting each evaluation under 
subsection (a), a State agency or local educational agency shall use 
multiple and appropriate measures of student progress.
    ``(c) Evaluation Results.--Each State agency and local educational 
agency shall--
            ``(1) submit evaluation results to the State educational 
        agency; and
            ``(2) use the results of evaluations under this section to 
        plan and improve subsequent programs for participating children 
        and youth.

``SEC. 1432. DEFINITIONS.

    ``In this subpart:
            ``(1) Adult correctional institution.--The term `adult 
        correctional institution' means a facility in which persons are 
        confined as a result of a conviction for a criminal offense, 
        including persons under 21 years of age.
            ``(2) At-risk youth.--The term `at-risk youth' means school 
        aged youth who are at risk of academic failure, have drug or 
        alcohol problems, are pregnant or are parents, have come into 
        contact with the juvenile justice system in the past, are at 
        least one year behind the expected grade level for the age of 
        the youth, have limited-English proficiency, are gang members, 
        have dropped out of school in the past, or have high 
        absenteeism rates at school.
            ``(3) Community day program.--The term `community day 
        program' means a regular program of instruction provided by a 
        State agency at a community day school operated specifically 
        for neglected or delinquent children and youth.
            ``(4) Institution for neglected or delinquent children and 
        youth.--The term `institution for neglected or delinquent 
        children and youth' means--
                    ``(A) a public or private residential facility, 
                other than a foster home, that is operated for the care 
                of children who have been committed to the institution 
                or voluntarily placed in the institution under 
                applicable State law, due to abandonment, neglect, or 
                death of their parents or guardians; or
                    ``(B) a public or private residential facility for 
                the care of children who have been adjudicated to be 
                delinquent or in need of supervision.''.

  PART E--21st CENTURY LEARNING CENTERS; COMPREHENSIVE SCHOOL REFORM; 
                       SCHOOL DROPOUT PREVENTION

SEC. 151. 21ST CENTURY LEARNING CENTERS; COMPREHENSIVE SCHOOL REFORM.

    Title I (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating part F as part I;
            (2) by redesignating sections 1601 through 1604 as sections 
        1901 through 1904, respectively; and
            (3) by inserting after part E the following:

           ``PART F--21st CENTURY COMMUNITY LEARNING CENTERS

``SEC. 1601. SHORT TITLE.

    ``This part may be cited as the ``21st Century Community Learning 
Centers Act''.

``SEC. 1602. PURPOSE.

    ``It is the purpose of this part to provide opportunities for 
public schools, primarily in rural and inner-city communities, to 
collaborate with other public and nonprofit entities (including 
businesses and postsecondary institutions) to--
            ``(1) offer a broad selection of services that address the 
        needs of the communities served by such schools; and
            ``(2) offer extended learning opportunities for children, 
        youth, and adults in the communities.

``SEC. 1603. PROGRAM AUTHORIZATION.

    ``(a) Grants by the Secretary.--The Secretary is authorized, in 
accordance with the provisions of this part, to award grants to local 
educational agencies, and units of general purpose local government, on 
behalf of rural and inner-city public elementary schools or secondary 
schools, or consortia of such schools, to enable such schools or 
consortia to plan, implement, or to expand projects that benefit the 
educational, health, social service, cultural, and recreational needs 
of a rural or inner-city community.
    ``(b) Equitable Distribution.--In awarding grants under this part, 
the Secretary shall assure an equitable distribution of assistance 
among the States, among urban and rural areas of the United States, and 
among urban and rural areas of a State.
    ``(c) Grant Period.--The Secretary shall award grants under this 
part for a period not to exceed 3 years.
    ``(d) Amount.--The Secretary shall not award a grant under this 
part in any fiscal year in an amount less than $50,000.

``SEC. 1604. ELIGIBILITY OF CERTAIN ORGANIZATIONS AND ENTITIES.

    ``(a) In General.--Notwithstanding any other provision of law--
            ``(1) the Secretary may award grants under this part to 
        community-based organizations, and public or private entities, 
        that have experience in providing before- and after-school 
        services, on the same basis as local educational agencies 
        described in section 1603; and
            ``(2) for purposes of this part--
                    ``(A) references to local educational agencies 
                shall be considered to include references to 
                organizations and entities described in paragraph (1); 
                and
                    ``(B) except as provided in subsection (c), 
                references to schools shall be considered to include 
                references to rural and inner-city public elementary 
                schools or secondary schools served by organizations 
                and entities described in paragraph (1).
    ``(b) Priority.--In addition to giving priority to applications 
described in section 1605(b), in awarding grants under this part, the 
Secretary shall give priority to applications that--
            ``(1) describe projects that include academic enrichment 
        components; and
            ``(2) are submitted jointly by--
                    ``(A) organizations and entities described in 
                subsection (a)(1); and
                    ``(B) rural and inner-city public elementary 
                schools or secondary schools (including consortia of 
                such schools).
    ``(c) Waiver.--The Secretary may waive, for an organization or 
entity described in subsection (a)(1), any provision of this part that 
requires the organization or entity to carry out a project through or 
in a school, if the Secretary determines that the provision would 
undermine the effectiveness of the project or limit the accessibility 
of the project to children and families in the community.

``SEC. 1605. APPLICATION REQUIRED.

    ``(a) Application.--To be eligible to receive a grant under this 
part, a local educational agency or unit of general purpose local 
government shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may reasonably prescribe. Each such application shall include--
            ``(1) a comprehensive local plan that enables the school or 
        consortium served by the local educational agency or unit of 
        general purpose local government to serve as a center for the 
        delivery of education and human resources for members of a 
        community;
            ``(2) an evaluation of the needs, available resources, and 
        goals and objectives for the proposed project in order to 
        determine which activities will be undertaken to address such 
        needs; and
            ``(3) a description of the proposed project, including--
                    ``(A) a description of the mechanism that will be 
                used to disseminate information in a manner that is 
                understandable and accessible to the community;
                    ``(B) identification of Federal, State, and local 
                programs to be merged or coordinated so that public 
                resources may be maximized;
                    ``(C) a description of the collaborative efforts to 
                be undertaken by community-based organizations, related 
                public agencies, businesses, or other appropriate 
                organizations;
                    ``(D) a description of how the school or consortium 
                served by the local educational agency or unit of 
                general purpose local government will serve as a 
                delivery center for existing and new services, 
                especially for interactive telecommunication used for 
                education and professional training; and
                    ``(E) an assurance that the school or consortium 
                served by the local educational agency or unit of 
                general purpose local government will establish a 
                facility utilization policy that specifically states--
                            ``(i) the rules and regulations applicable 
                        to building and equipment use; and
                            ``(ii) supervision guidelines.
    ``(b) Priority.--The Secretary shall give priority to applications 
describing projects that offer a broad selection of services which 
address the needs of the community.
    ``(c) Encouraging Joint Submission of Applications.--The Secretary 
shall strongly encourage applications for grants under this part to be 
submitted jointly by a local educational agency (or a consortium of 
local educational agencies) or unit of general purpose local 
government, and a community-based organization, including public or 
private entities with demonstrated effectiveness in providing 
educational and related services to individuals in the community.

``SEC. 1606. USES OF FUNDS.

    ``Grant funds awarded under this part may be used to plan, 
implement, or expand community learning centers which include not less 
than 4 of the following activities:
            ``(1) Literacy education programs.
            ``(2) Senior citizen programs.
            ``(3) Children's day care services.
            ``(4) Integrated education, health, social service, 
        recreational, or cultural programs.
            ``(5) Summer and weekend school programs.
            ``(6) Expanded library service hours to serve community 
        needs.
            ``(7) Telecommunications and technology education programs 
        for individuals of all ages.
            ``(8) Services for individuals who leave school before 
        graduating from secondary school, regardless of the age of such 
        individual.
            ``(9) Services for individuals with disabilities.
            ``(10) Academic enrichment activities.

``SEC. 1607. DEFINITIONS.

    ``For the purpose of this part:
            ``(1) Community learning center.--The term `community 
        learning center' means an entity within a public elementary 
        school or secondary school building that--
                    ``(A) provides educational, recreational, health, 
                and social service programs for residents of all ages 
                within a local community; and
                    ``(B) is operated by a local educational agency or 
                unit of general purpose local government, in 
                conjunction with local governmental agencies, 
                businesses, vocational education programs, institutions 
                of higher education, community colleges, and cultural, 
                recreational, and other community and human service 
                entities.
            ``(2) Unit of general purpose local government.--The term 
        `unit of general purpose local government' means any city, 
        town, township, parish, village, or other general purpose 
        political subdivision of a State.

                 ``PART G--COMPREHENSIVE SCHOOL REFORM

``SEC. 1701. PURPOSE.

    ``The purpose of this part is to provide financial incentives for 
schools to develop comprehensive school reforms based upon promising 
and effective practices and scientifically based research programs that 
emphasize basic academics and parental involvement so that all children 
can meet challenging State content and student performance standards.

``SEC. 1702. PROGRAM AUTHORIZATION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to State educational agencies, from allotments under 
        paragraph (2), to enable the State educational agencies to 
        award subgrants to local educational agencies to carry out the 
        purpose described in section 1701.
            ``(2) Allotments.--
                    ``(A) Reservations.--Of the amount appropriated 
                under section 1002(h) for a fiscal year, the Secretary 
                may reserve--
                            ``(i) not more than 1 percent to provide 
                        assistance to schools supported by the Bureau 
                        of Indian Affairs and in the United States 
                        Virgin Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands 
                        according to their respective needs for 
                        assistance under this part; and
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described in 
                        section 1707.
                    ``(B) In general.--Of the amount appropriated under 
                section 1002(h) that remains after making the 
                reservation under subparagraph (A) for a fiscal year, 
                the Secretary shall allot to each State for the fiscal 
                year an amount that bears the same ratio to the 
                remainder for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount made 
                available under section 1124 to all States for that 
                year.
                    ``(C) Reallotment.--If a State does not apply for 
                funds under this section, the Secretary shall reallot 
                such funds to other States that do not apply in 
                proportion to the amount allotted to such other States 
                under subparagraph (B).

``SEC. 1703. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Contents.--Each such application shall describe--
            ``(1) the process and selection criteria by which the State 
        educational agency, using expert review, will select local 
        educational agencies to receive subgrants under this section;
            ``(2) how the State educational agency will ensure that 
        only comprehensive school reforms that are based on promising 
        and effective practices and scientifically based research 
        programs receive funds under this part;
            ``(3) how the State educational agency will disseminate 
        information on comprehensive school reforms that are based on 
        promising and effective practices and scientifically based 
        research programs;
            ``(4) how the State educational agency will evaluate the 
        implementation of such reforms and measure the extent to which 
        the reforms have resulted in increased student academic 
        performance; and
            ``(5) how the State educational agency will make available 
        technical assistance to a local educational agency or consortia 
        of local educational agencies in evaluating, developing, and 
        implementing comprehensive school reform.

``SEC. 1704. STATE USE OF FUNDS.

    ``(a) In General.--Except as provided in subsection (e), a State 
educational agency that receives a grant under this part shall use the 
grant funds to award subgrants, on a competitive basis, to local 
educational agencies or consortia of local educational agencies in the 
State that receive funds under part A.
    ``(b) Subgrant Requirements.--A subgrant to a local educational 
agency or consortium shall be--
            ``(1) of sufficient size and scope to support the initial 
        costs for the particular comprehensive school reform plan 
        selected or designed by each school identified in the 
        application of the local educational agency or consortium;
            ``(2) in an amount not less than $50,000 for each 
        participating school; and
            ``(3) renewable for 2 additional 1-year periods after the 
        initial 1-year grant is made if the school is making 
        substantial progress in the implementation of reforms.
    ``(c) Priority.--A State educational agency, in awarding subgrants 
under this part, shall give priority to local educational agencies or 
consortia that--
            ``(1) plan to use the funds in schools identified as being 
        in need of improvement or corrective action under section 
        1116(c); and
            ``(2) demonstrate a commitment to assist schools with 
        budget allocation, professional development, and other 
        strategies necessary to ensure the comprehensive school reforms 
        are properly implemented and are sustained in the future.
    ``(d) Grant Consideration.--In awarding subgrants under this part, 
the State educational agency shall take into consideration the 
equitable distribution of subgrants to different geographic regions 
within the State, including urban and rural areas, and to schools 
serving elementary school and secondary students.
    ``(e) Administrative Costs.--A State educational agency that 
receives a grant under this part may reserve not more than 5 percent of 
the grant funds for administrative, evaluation, and technical 
assistance expenses.
    ``(f) Supplement.--Funds made available under this part shall be 
used to supplement, and not supplant, any other Federal, State, or 
local funds that would otherwise be available to carry out the 
activities assisted under this part.
    ``(g) Reporting.--Each State educational agency that receives a 
grant under this part shall provide to the Secretary such information 
as the Secretary may require, including the names of local educational 
agencies and schools receiving assistance under this part, the amount 
of the assistance, and a description of the comprehensive school reform 
model selected and used.

``SEC. 1705. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or consortium of 
local educational agencies desiring a subgrant under this section shall 
submit an application to the State educational agency at such time, in 
such manner, and containing such information as the State educational 
agency may reasonably require.
    ``(b) Contents.--Each such application shall--
            ``(1) identify the schools, that are eligible for 
        assistance under part A, that plan to implement a comprehensive 
        school reform program, including the projected costs of such a 
        program;
            ``(2) describe the promising and effective practices and 
        scientifically based research programs that such schools will 
        implement;
            ``(3) describe how the local educational agency or 
        consortium will provide technical assistance and support for 
        the effective implementation of the promising and effective 
        practices and scientifically based research school reforms 
        selected by such schools; and
            ``(4) describe how the local educational agency or 
        consortium will evaluate the implementation of such reforms and 
        measure the results achieved in improving student academic 
        performance.

``SEC. 1706. LOCAL USE OF FUNDS.

    ``(a) Uses of Funds.--A local educational agency or consortium that 
receives a subgrant under this section shall provide the subgrant funds 
to schools, that are eligible for assistance under part A and served by 
the agency, to enable the schools to implement a comprehensive school 
reform program for--
            ``(1) employing innovative strategies for student learning, 
        teaching, and school management that are based on promising and 
        effective practices and scientifically based research programs 
        and have been replicated successfully in schools with diverse 
        characteristics;
            ``(2) integrating a comprehensive design for effective 
        school functioning, including instruction, assessment, 
        classroom management, professional development, parental 
        involvement, and school management, that aligns the school's 
        curriculum, technology, and professional development into a 
        comprehensive reform plan for schoolwide change designed to 
        enable all students to meet challenging State content and 
        student performance standards and addresses needs identified 
        through a school needs assessment;
            ``(3) providing high quality and continuous teacher and 
        staff professional development;
            ``(4) the inclusion of measurable goals for student 
        performance;
            ``(5) support for teachers, principals, administrators, and 
        other school personnel staff;
            ``(6) meaningful community and parental involvement 
        initiatives that will strengthen school improvement activities;
            ``(7) using high quality external technical support and 
        assistance from an entity that has experience and expertise in 
        schoolwide reform and improvement, which may include an 
        institution of higher education;
            ``(8) evaluating school reform implementation and student 
        performance; and
            ``(9) identification of other resources, including Federal, 
        State, local, and private resources, that shall be used to 
        coordinate services that will support and sustain the school 
        reform effort.
    ``(b) Special Rule.--A school that receives funds to develop a 
comprehensive school reform program shall not be limited to using the 
approaches identified or developed by the Secretary, but may develop 
the school's own comprehensive school reform programs for schoolwide 
change as described in subsection (a).

``SEC. 1707. NATIONAL EVALUATION AND REPORTS.

    ``(a) In General.--The Secretary shall develop a plan for a 
national evaluation of the programs assisted under this part.
    ``(b) Evaluation.--The national evaluation shall--
            ``(1) evaluate the implementation and results achieved by 
        schools after 3 years of implementing comprehensive school 
        reforms; and
            ``(2) assess the effectiveness of comprehensive school 
        reforms in schools with diverse characteristics.
    ``(c) Reports.--Prior to the completion of the national evaluation, 
the Secretary shall submit an interim report describing implementation 
activities for the Comprehensive School Reform Program, which began in 
1998, to the Committee on Education and the Workforce, and the 
Committee on Appropriations of the House of Representatives, and the 
Committee on Health, Education, Labor, and Pensions, and the Committee 
on Appropriations of the Senate.

                  ``PART H--SCHOOL DROPOUT PREVENTION

``SEC. 1801. SHORT TITLE.

    ``This part may be cited as the `Dropout Prevention Act'.

``SEC. 1802. PURPOSE.

    ``The purpose of this part is to provide for school dropout 
prevention and reentry and to raise academic achievement levels by 
providing grants, to schools through State educational agencies, that--
            ``(1) challenge all children to attain their highest 
        academic potential; and
            ``(2) ensure that all students have substantial and ongoing 
        opportunities to do so through schoolwide programs proven 
        effective in school dropout prevention.

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to collect systematic data on the participation in 
        the programs described in paragraph (2)(C) of individuals 
        disaggregated within each State, local educational agency, and 
        school by gender, by each major racial and ethnic group, by 
        English proficiency status, by migrant status, by students with 
        disabilities as compared to nondisabled students, and by 
        economically disadvantaged students as compared to students who 
        are not economically disadvantaged;
            ``(2) to establish and to consult with an interagency 
        working group that shall--
                    ``(A) address inter- and intra-agency program 
                coordination issues at the Federal level with respect 
                to school dropout prevention and middle school and 
                secondary school reentry, and assess the targeting of 
                existing Federal services to students who are most at 
                risk of dropping out of school, and the cost-
                effectiveness of various programs and approaches used 
                to address school dropout prevention;
                    ``(B) describe the ways in which State and local 
                agencies can implement effective school dropout 
                prevention programs using funds from a variety of 
                Federal programs, including the programs under this 
                title; and
                    ``(C) address all Federal programs with school 
                dropout prevention or school reentry elements or 
                objectives, including programs under this title, 
                programs under subtitle C of title I of the Workforce 
                Investment Act of 1998, and other programs; and
            ``(3) carry out a national recognition program in 
        accordance with subsection (b) that recognizes schools that 
        have made extraordinary progress in lowering school dropout 
        rates under which a public middle school or secondary school 
        from each State will be recognized.
    ``(b) Recognition Program.--
            ``(1) National guidelines.--The Secretary shall develop 
        uniform national guidelines for the recognition program that 
        shall be used to recognize schools from nominations submitted 
        by State educational agencies.
            ``(2) Eligible schools.--The Secretary may recognize under 
        the recognition program any public middle school or secondary 
        school (including a charter school) that has implemented 
        comprehensive reforms regarding the lowering of school dropout 
        rates for all students at that school.
            ``(3) Support.--The Secretary may make monetary awards to 
        schools recognized under the recognition program in amounts 
        determined by the Secretary. Amounts received under this 
        section shall be used for dissemination activities within the 
        school district or nationally.
    ``(c) Capacity Building.--
            ``(1) In general.--The Secretary, through a contract with a 
        non-Federal entity, may conduct a capacity building and design 
        initiative in order to increase the types of proven strategies 
        for dropout prevention and reentry that address the needs of an 
        entire school population rather than a subset of students.
            ``(2) Number and duration.--
                    ``(A) Number.--The Secretary may award not more 
                than 5 contracts under this subsection.
                    ``(B) Duration.--The Secretary may award a contract 
                under this subsection for a period of not more than 5 
                years.
    ``(d) Support for Existing Reform Networks.--
            ``(1) In general.--The Secretary may provide appropriate 
        support to eligible entities to enable the eligible entities to 
        provide training, materials, development, and staff assistance 
        to schools assisted under this chapter.
            ``(2) Definition of eligible entity.--In this subsection, 
        the term `eligible entity' means an entity that, prior to the 
        date of enactment of the Dropout Prevention Act--
                    ``(A) provided training, technical assistance, and 
                materials to 100 or more elementary schools or 
                secondary schools; and
                    ``(B) developed and published a specific 
                educational program or design for use by the schools.

       ``Subpart 2--National School Dropout Prevention Initiative

``SEC. 1821. PROGRAM AUTHORIZED.

    ``(a) Grants.--
            ``(1) Discretionary grants.--If the sum appropriated under 
        section 1002(i) for a fiscal year is less than $250,000,000, 
        then the Secretary shall use such sum to award grants, on a 
        competitive basis, to State educational agencies to enable the 
        State educational agencies to award grants under subsection 
        (b).
            ``(2) Formula.--If the sum appropriated under section 
        1002(i) for a fiscal year equals or exceeds $250,000,000, then 
        the Secretary shall use such sum to make an allotment to each 
        State in an amount that bears the same relation to the sum as 
        the amount the State received under part A for the preceding 
        fiscal year bears to the amount received by all States under 
        such part for the preceding fiscal year.
            ``(3) Definition of state.--In this subpart, the term 
        `State' means each of the several States of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
    ``(b) Grants.--From amounts made available to a State under 
subsection (a), the State educational agency may award grants to public 
middle schools or secondary schools that serve students in grades 6 
through 12, that have school dropout rates that are the highest of all 
school dropout rates in the State, to enable the schools to pay only 
the startup and implementation costs of effective, sustainable, 
coordinated, and whole school dropout prevention programs that involve 
activities such as--
            ``(1) professional development;
            ``(2) obtaining curricular materials;
            ``(3) release time for professional staff;
            ``(4) planning and research;
            ``(5) remedial education;
            ``(6) reduction in pupil-to-teacher ratios;
            ``(7) efforts to meet State student achievement standards;
            ``(8) counseling and mentoring for at-risk students; and
            ``(9) comprehensive school reform models.
    ``(c) Amount.--
            ``(1) In general.--Subject to subsection (d) and except as 
        provided in paragraph (2), a grant under this subpart shall be 
        awarded--
                    ``(A) in the first year that a school receives a 
                grant payment under this subpart, based on factors such 
                as--
                            ``(i) school size;
                            ``(ii) costs of the model or set of 
                        prevention and reentry strategies being 
                        implemented; and
                            ``(iii) local cost factors such as poverty 
                        rates;
                    ``(B) in the second such year, in an amount that is 
                not less than 75 percent of the amount the school 
                received under this subpart in the first such year;
                    ``(C) in the third year, in an amount that is not 
                less than 50 percent of the amount the school received 
                under this subpart in the first such year; and
                    ``(D) in each succeeding year in an amount that is 
                not less than 30 percent of the amount the school 
                received under this subpart in the first such year.
            ``(2) Increases.--The Secretary shall increase the amount 
        awarded to a school under this subpart by 10 percent if the 
        school creates smaller learning communities within the school 
        and the creation is certified by the State educational agency.
    ``(d) Duration.--A grant under this subpart shall be awarded for a 
period of 3 years, and may be continued for a period of 2 additional 
years if the State educational agency determines, based on the annual 
reports described in section 1827(a), that significant progress has 
been made in lowering the school dropout rate for students 
participating in the program assisted under this subpart compared to 
students at similar schools who are not participating in the program.

``SEC. 1822. STRATEGIES AND CAPACITY BUILDING.

    ``Each school receiving a grant under this subpart shall implement 
scientifically based research, sustainable, and widely replicated 
strategies for school dropout prevention and reentry that address the 
needs of an entire school population rather than a subset of students. 
The strategies may include--
            ``(1) specific strategies for targeted purposes, such as--
                    ``(A) effective early intervention programs 
                designed to identify at-risk students;
                    ``(B) effective programs encompassing traditionally 
                underserved students, including racial and ethnic 
                minorities and pregnant and parenting teenagers, 
                designed to prevent such students from dropping out of 
                school; and
                    ``(C) effective programs to identify and encourage 
                youth who have already dropped out of school to reenter 
                school and complete their secondary education; and
            ``(2) approaches such as breaking larger schools down into 
        smaller learning communities and other comprehensive reform 
        approaches, creating alternative school programs, developing 
        clear linkages to career skills and employment, and addressing 
        specific gatekeeper hurdles that often limit student retention 
        and academic success.

``SEC. 1823. SELECTION OF SCHOOLS.

    ``(a) School Application.--
            ``(1) In general.--Each school desiring a grant under this 
        subpart shall submit an application to the State educational 
agency at such time, in such manner, and accompanied by such 
information as the State educational agency may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) contain a certification from the local 
                educational agency serving the school that--
                            ``(i) the school has the highest number or 
                        rates of school dropouts in the age group 
                        served by the local educational agency;
                            ``(ii) the local educational agency is 
                        committed to providing ongoing operational 
                        support, for the school's comprehensive reform 
                        plan to address the problem of school dropouts, 
                        for a period of 5 years; and
                            ``(iii) the local educational agency will 
                        support the plan, including--
                                    ``(I) release time for teacher 
                                training;
                                    ``(II) efforts to coordinate 
                                activities for feeder schools; and
                                    ``(III) encouraging other schools 
                                served by the local educational agency 
                                to participate in the plan;
                    ``(B) demonstrate that the faculty and 
                administration of the school have agreed to apply for 
                assistance under this subpart, and provide evidence of 
                the school's willingness and ability to use the funds 
                under this subpart, including providing an assurance of 
                the support of 80 percent or more of the professional 
                staff at the school;
                    ``(C) describe the instructional strategies to be 
                implemented, how the strategies will serve all 
                students, and the effectiveness of the strategies;
                    ``(D) describe a budget and timeline for 
                implementing the strategies;
                    ``(E) contain evidence of coordination with 
                existing resources;
                    ``(F) provide an assurance that funds provided 
                under this subpart will supplement and not supplant 
                other Federal, State, and local funds available for 
                dropout prevention programs;
                    ``(G) describe how the activities to be assisted 
                conform with scientifically based research knowledge 
                about school dropout prevention and reentry; and
                    ``(H) demonstrate that the school and local 
                educational agency have agreed to conduct a schoolwide 
                program under section 1114.
    ``(b) State Agency Review and Award.--The State educational agency 
shall review applications and award grants to schools under subsection 
(a) according to a review by a panel of experts on school dropout 
prevention.
    ``(c) Eligibility.--A school is eligible to receive a grant under 
this subpart if the school is--
            ``(1) a public school (including a public alternative 
        school)--
                    ``(A) that is eligible to receive assistance under 
                part A, including a comprehensive secondary school, a 
                vocational or technical secondary school, or a charter 
                school; and
                    ``(B)(i) that serves students 50 percent or more of 
                whom are low-income individuals; or
                    ``(ii) with respect to which the feeder schools 
                that provide the majority of the incoming students to 
                the school serve students 50 percent or more of whom 
                are low-income individuals; or
            ``(2) participating in a schoolwide program under section 
        1114 during the grant period.
    ``(d) Community-Based Organizations.--A school that receives a 
grant under this subpart may use the grant funds to secure necessary 
services from a community-based organization, including private sector 
entities, if--
            ``(1) the school approves the use;
            ``(2) the funds are used to provide school dropout 
        prevention and reentry activities related to schoolwide 
        efforts; and
            ``(3) the community-based organization has demonstrated the 
        organization's ability to provide effective services as 
        described in section 122 of the Workforce Investment Act of 
        1998.
    ``(e) Coordination.--Each school that receives a grant under this 
subpart shall coordinate the activities assisted under this subpart 
with other Federal programs, such as programs assisted under chapter 1 
of subpart 2 of part A of title IV of the Higher Education Act of 1965.

``SEC. 1824. DISSEMINATION ACTIVITIES.

    ``Each school that receives a grant under this part shall provide 
information and technical assistance to other schools within the school 
district, including presentations, document-sharing, and joint staff 
development.

``SEC. 1825. PROGRESS INCENTIVES.

    ``Notwithstanding any other provision of law, each local 
educational agency that receives funds under this title shall use such 
funds to provide assistance to schools served by the agency that have 
not made progress toward lowering school dropout rates after receiving 
assistance under this subpart for 2 fiscal years.

``SEC. 1826. SCHOOL DROPOUT RATE CALCULATION.

    ``For purposes of calculating a school dropout rate under this 
subpart, a school shall use--
            ``(1) the annual event school dropout rate for students 
        leaving a school in a single year determined in accordance with 
        the National Center for Education Statistics' Common Core of 
        Data, if available; or
            ``(2) in other cases, a standard method for calculating the 
        school dropout rate as determined by the State educational 
        agency.

``SEC. 1827. REPORTING AND ACCOUNTABILITY.

    ``(a) Reporting.--To receive funds under this subpart for a fiscal 
year after the first fiscal year that a school receives funds under 
this subpart, the school shall provide, on an annual basis, to the 
Secretary and the State educational agency a report regarding the 
status of the implementation of activities funded under this subpart, 
the outcome data for students at schools assisted under this subpart 
disaggregated in the same manner as information under section 1811(a) 
(such as dropout rates), and a certification of progress from the 
eligible entity whose strategies the school is implementing.
    ``(b) Accountability.--On the basis of the reports submitted under 
subsection (a), the Secretary shall evaluate the effect of the 
activities assisted under this subpart on school dropout prevention 
compared to a control group.

``SEC. 1828. STATE RESPONSIBILITIES.

    ``(a) Uniform Data Collection.--Within 1 year after the date of 
enactment of the Dropout Prevention Act, a State educational agency 
that receives funds under this subpart shall report to the Secretary 
and statewide, all school district and school data regarding school 
dropout rates in the State disaggregated in the same manner as 
information under section 1811(a), according to procedures that conform 
with the National Center for Education Statistics' Common Core of Data.
    ``(b) Attendance-Neutral Funding Policies.--Within 2 years after 
the date of enactment of the Dropout Prevention Act, a State 
educational agency that receives funds under this subpart shall develop 
and implement education funding formula policies for public schools 
that provide appropriate incentives to retain students in school 
throughout the school year, such as--
            ``(1) a student count methodology that does not determine 
        annual budgets based on attendance on a single day early in the 
        academic year; and
            ``(2) specific incentives for retaining enrolled students 
        throughout each year.
    ``(c) Suspension and Expulsion Policies.--Within 2 years after the 
date of enactment of the Dropout Prevention Act, a State educational 
agency that receives funds under this subpart shall develop uniform, 
long-term suspension and expulsion policies (that in the case of a 
child with a disability are consistent with the suspension and 
expulsion policies under the Individuals with Disabilities Education 
Act) for serious infractions resulting in more than 10 days of 
exclusion from school per academic year so that similar violations 
result in similar penalties.
    ``(d) Regulations.--The Secretary shall promulgate regulations 
implementing subsections (a) through (c).

       ``Subpart 3--Definitions; Authorization of Appropriations

``SEC. 1831. DEFINITIONS.

    ``In this part:
            ``(1) Low-income.--The term `low-income', used with respect 
        to an individual, means an individual determined to be low-
        income in accordance with measures described in section 
        1113(a)(5).
            ``(2) School dropout.--The term `school dropout' means a 
        youth who is no longer attending any school and who has not 
        received a secondary school diploma or its recognized 
        equivalent.''.

           PART F--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

SEC. 161. STATEMENT OF POLICY.

    Section 721(3) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11431(3)) is amended by striking ``should not be'' and 
inserting ``is not''.

SEC. 162. GRANTS FOR STATE AND LOCAL ACTIVITIES.

    Section 722 of such Act (42 U.S.C. 11432) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)(A)--
                            (i) by inserting ``and'' after ``Samoa,''; 
                        and
                            (ii) by striking ``, and Palau'' and all 
                        that follows through ``Palau)''; and
                    (B) in paragraph (3)--
                            (i) by inserting ``or'' after ``Samoa,''; 
                        and
                            (ii) by striking ``, or Palau'';
            (2) in subsection (e), by adding at the end the following:
            ``(3) Prohibition on segregating homeless students.--In 
        providing a free public education to a homeless child or youth, 
        no State receiving funds under this subtitle shall segregate 
        such child or youth, either in a separate school, or in a 
        separate program within a school, based on such child or 
        youth's status as homeless, except as provided in section 
        723(a)(2)(B)(ii).'';
            (3) by amending subsection (f) to read as follows:
    ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
            ``(1) gather reliable, valid, and comprehensive information 
        on the nature and extent of the problems homeless children and 
        youth have in gaining access to public preschool programs and 
        to public elementary schools and secondary schools, the 
        difficulties in identifying the special needs of such children 
        and youth, any progress made by the State educational agency 
        and local educational agencies in the State in addressing such 
        problems and difficulties, and the success of the program under 
        this subtitle in allowing homeless children and youth to enroll 
        in, attend, and succeed in, school;
            ``(2) develop and carry out the State plan described in 
        subsection (g);
            ``(3) collect and transmit to the Secretary, at such time 
        and in such manner as the Secretary may require, such 
        information as the Secretary deems necessary to assess the 
        educational needs of homeless children and youth within the 
        State;
            ``(4) facilitate coordination between the State educational 
        agency, the State social services agency, and other agencies 
        providing services to homeless children and youth, including 
        homeless children and youth who are preschool age, and families 
        of such children and youth;
            ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youth 
        and their families, coordinate and collaborate with--
                    ``(A) educators, including child development and 
                preschool program personnel;
                    ``(B) providers of services to homeless and runaway 
                children and youth and homeless families (including 
                domestic violence agencies, shelter operators, 
                transitional housing facilities, runaway and homeless 
                youth centers, and transitional living programs for 
                homeless youth);
                    ``(C) local educational agency liaisons for 
                homeless children and youth; and
                    ``(D) community organizations and groups 
                representing homeless children and youth and their 
                families; and
            ``(6) provide technical assistance to local educational 
        agencies in coordination with local liaisons established under 
        this subtitle, to ensure that local educational agencies comply 
        with the requirements of section 722(e)(3).''; and
            (4) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (E)--
                                    (I) by striking ``the report'' and 
                                inserting ``the information''; and
                                    (II) by striking ``(f)(4)'' and 
                                inserting ``(f)(3)''; and
                            (ii) by amending subparagraph (H) to read 
                        as follows:
                    ``(H) contain assurances that--
                            ``(i) the State educational agency and 
                        local educational agencies in the State will 
                        adopt policies and practices to ensure that 
                        homeless children and youth are not segregated 
                        on the basis of their status as homeless or 
                        stigmatized; and
                            ``(ii) local educational agencies serving 
                        school districts in which homeless children and 
                        youth reside or attend school will--
                                    ``(I) post public notice of the 
                                educational rights of such children and 
                                youth where such children and youth 
                                receive services under this Act (such 
                                as family shelters and soup kitchens); 
                                and
                                    ``(II) designate an appropriate 
                                staff person, who may also be a 
                                coordinator for other Federal programs, 
                                as a liaison for homeless children and 
                                youth.'';
                    (B) by amending paragraph (3) to read as follows:
            ``(3) Local educational agency requirements.--
                    ``(A) In general.--Each local educational agency 
                serving a homeless child or youth assisted under this 
                subtitle shall, according to the child's or youth's 
                best interest--
                            ``(i) continue the child's or youth's 
                        education in the school of origin--
                                    ``(I) for the duration of their 
                                homelessness;
                                    ``(II) if the child becomes 
                                permanently housed, for the remainder 
                                of the academic year; or
                                    ``(III) in any case in which a 
                                family becomes homeless between 
                                academic years, for the following 
                                academic year; or
                            ``(ii) enroll the child or youth in any 
                        school that nonhomeless students who live in 
                        the attendance area in which the child or youth 
                        is actually living are eligible to attend.
                    ``(B) Best interest.--In determining the best 
                interest of the child or youth under subparagraph (A), 
                the local educational agency shall--
                            ``(i) to the extent feasible, keep a 
                        homeless child or youth in the school of 
                        origin, except when doing so is contrary to the 
                        wishes of the child's or youth's parent or 
                        guardian, or in the case of an unaccompanied 
                        youth, doing so is contrary to the youth's 
                        wish; and
                            ``(ii) provide a written explanation to the 
                        homeless child's or youth's parent or guardian 
                        when the local educational agency sends such 
                        child or youth to a school other than the 
                        school of origin or a school requested by the 
                        parent or guardian.
                    ``(C) Enrollment.--
                            ``(i) Documentation.--The school selected 
                        in accordance with this paragraph shall 
                        immediately enroll the homeless child or youth 
                        even if the child or youth is unable to produce 
                        records normally required for enrollment, such 
                        as previous academic records, medical records, 
                        proof of residency, or other documentation.
                            ``(ii) Special rule.--The enrolling school 
                        immediately shall contact the school last 
                        attended by the child or youth to obtain 
                        relevant academic and other records. If the 
                        child or youth needs to obtain immunizations, 
                        the enrolling school shall promptly refer the 
                        child or youth to the appropriate authorities 
                        for such immunizations.
                            ``(iii) Disputes.--If a dispute arises over 
                        school selection or enrollment in a school, the 
                        child or youth shall be admitted immediately to 
                        the school in which the parent or guardian (or 
                        in the case of an unaccompanied youth, the 
                        youth) seeks enrollment pending resolution of 
                        the dispute.
                    ``(D) Definition of school of origin.--For purposes 
                of this paragraph, the term `school of origin' means 
                the school that the child or youth attended when 
                permanently housed, or the school in which the child or 
                youth was last enrolled.
                    ``(E) Placement choice.--The choice regarding 
                placement shall be made regardless of whether the child 
                or youth lives with the homeless parents or has been 
                temporarily placed elsewhere by the parents.'';
                    (C) by amending paragraph (6) to read as follows:
            ``(6) Coordination.--
                    ``(A) In general.--Each local educational agency 
                serving homeless children and youth that receives 
                assistance under this subtitle shall coordinate the 
                provision of services under this subtitle with local 
                services agencies and other agencies or programs 
                providing services to homeless children and youth and 
                their families, including services and programs funded 
                under the Runaway and Homeless Youth Act (42 U.S.C. 
                5701 et seq.).
                    ``(B) Housing assistance.--If applicable, each 
                State and local educational agency that receives 
                assistance under this subtitle shall coordinate with 
                State and local housing agencies responsible for 
                developing the comprehensive housing affordability 
                strategy described in section 105 of the Cranston-
                Gonzales National Affordable Housing Act (42 U.S.C. 
                12705) to minimize educational disruption for children 
                and youth who become homeless.
                    ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                            ``(i) ensure that homeless children and 
                        youth have access to available education and 
                        related support services; and
                            ``(ii) raise the awareness of school 
                        personnel and service providers of the effects 
                        of short-term stays in shelters and other 
                        challenges associated with homeless children 
                        and youth.'';
                    (D) by amending paragraph (7) to read as follows:
            ``(7) Liaison.--
                    ``(A) In general.--Each local liaison for homeless 
                children and youth designated pursuant to paragraph 
                (1)(H)(ii)(II) shall ensure that--
                            ``(i) homeless children and youth enroll, 
                        and have a full and equal opportunity to 
                        succeed, in the schools of the local 
                        educational agency;
                            ``(ii) homeless families, children, and 
                        youth receive educational services for which 
                        such families, children, and youth are 
                        eligible, including Head Start and Even Start 
                        programs and preschool programs administered by 
                        the local educational agency, and referrals to 
                        health care services, dental services, mental 
                        health services, and other appropriate 
                        services;
                            ``(iii) the parents or guardians of 
                        homeless children and youth are informed of the 
                        education and related opportunities available 
                        to their children and are provided with 
                        meaningful opportunities to participate in the 
                        education of their children; and
                            ``(iv) public notice of the educational 
                        rights of homeless children and youth is posted 
                        where such children and youth receive services 
                        under this Act (such as family shelters and 
                        soup kitchens).
                    ``(B) Information.--State coordinators in States 
                receiving assistance under this subtitle and local 
                educational agencies receiving assistance under this 
                subtitle shall inform school personnel, service 
                providers, and advocates working with homeless families 
                of the duties of the liaisons for homeless children and 
                youth.
                    ``(C) Local and state coordination.--Liaisons for 
                homeless children and youth shall, as a part of their 
                duties, coordinate and collaborate with State 
                coordinators and community and school personnel 
                responsible for the provision of education and related 
                services to homeless children and youth.
                    ``(D) Dispute resolution.--Unless another 
                individual is designated by State law, the local 
                liaison for homeless children and youth shall provide 
                resource information and assist in resolving a dispute 
                under this subtitle if such a dispute arises.''; and
                    (E) by striking paragraph (9).

SEC. 163. LOCAL EDUCATIONAL AGENCY GRANTS.

    Section 723 of such Act (42 U.S.C. 11433) is amended--
            (1) in subsection (a), by amending paragraph (2) to read as 
        follows:
            ``(2) Services.--
                    ``(A) In general.--Services provided under 
                paragraph (1)--
                            ``(i) may be provided through programs on 
                        school grounds or at other facilities;
                            ``(ii) shall, to the maximum extent 
                        practicable, be provided through existing 
                        programs and mechanisms that integrate homeless 
                        individuals with nonhomeless individuals; and
                            ``(iii) shall be designed to expand or 
                        improve services provided as part of a school's 
                        regular academic program, but not replace that 
                        program.
                    ``(B) Services on school grounds.--If services 
                under paragraph (1) are provided on school grounds, 
                schools--
                            ``(i) may use funds under this subtitle to 
                        provide the same services to other children and 
                        youth who are determined by the local 
                        educational agency to be at risk of failing in, 
                        or dropping out of, schools, subject to clause 
                        (ii); and
                            ``(ii) shall not provide services in 
                        settings within a school that segregates 
                        homeless children and youth from other children 
                        and youth, except as is necessary for short 
                        periods of time--
                                    ``(I) for health and safety 
                                emergencies; or
                                    ``(II) to provide temporary, 
                                special, supplementary services to meet 
                                the unique needs of homeless children 
                                and youth.'';
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5), respectively;
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) an assessment of the educational and related needs of 
        homeless children and youth in the school district (which may 
        be undertaken as a part of needs assessments for other 
        disadvantaged groups);''; and
                    (C) in paragraph (4) (as so redesignated), by 
                striking ``(9)'' and inserting ``(8)''; and
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--The State educational agency, in 
        accordance with the requirements of this subtitle and from 
        amounts made available to the State educational agency under 
        section 726, shall award grants, on a competitive basis, to 
        local educational agencies that submit applications under 
        subsection (b). Such grants shall be awarded on the basis of 
        the need of such agencies for assistance under this subtitle 
        and the quality of the applications submitted.'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
            ``(3) Quality.--In determining the quality of applications 
        under paragraph (1), the State educational agency shall 
        consider--
                    ``(A) the local educational agency's needs 
                assessment under subsection (b)(1) and the likelihood 
                that the program to be assisted will meet the needs;
                    ``(B) the types, intensity, and coordination of 
                services to be assisted under the program;
                    ``(C) the involvement of parents or guardians;
                    ``(D) the extent to which homeless children and 
                youth will be integrated within the regular education 
                program;
                    ``(E) the quality of the local educational agency's 
                evaluation plan for the program;
                    ``(F) the extent to which services provided under 
                this subtitle will be coordinated with other available 
                services;
                    ``(G) the extent to which the local educational 
                agency provides case management or related services to 
                homeless children and youth who are unaccompanied by a 
                parent or guardian; and
                    ``(H) such other measures as the State educational 
                agency determines indicative of a high-quality 
                program.''.

SEC. 164. SECRETARIAL RESPONSIBILITIES.

    Section 724 of such Act (42 U.S.C. 11434) is amended--
            (1) in subsection (a), by striking ``the State 
        educational'' and inserting ``State educational'';
            (2) by striking subsection (f);
            (3) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively;
            (4) by inserting after subsection (b) the following:
    ``(c) Guidelines.--The Secretary shall develop, issue, and publish 
in the Federal Register, not later than 60 days after the date of 
enactment of the Better Education for Students and Teachers Act, school 
enrollment guidelines for States with respect to homeless children and 
youth. The guidelines shall describe--
            ``(1) successful ways in which a State may assist local 
        educational agencies to enroll immediately homeless children 
        and youth in school; and
            ``(2) how a State can review the State's requirements 
        regarding immunization and medical or school records and make 
        revisions to the requirements as are appropriate and necessary 
        in order to enroll homeless children and youth in school more 
        quickly.''; and
            (5) by adding at the end the following:
    ``(g) Information.--
            ``(1) In general.--From funds appropriated under section 
        726, the Secretary, directly or through grants, contracts, or 
        cooperative agreements, shall periodically collect and 
        disseminate data and information regarding--
                    ``(A) the number and location of homeless children 
                and youth;
                    ``(B) the education and related services homeless 
                children and youth receive;
                    ``(C) the extent to which the needs of homeless 
                children and youth are met; and
                    ``(D) such other data and information as the 
                Secretary determines necessary and relevant to carry 
                out this subtitle.
            ``(2) Coordination.--The Secretary shall coordinate such 
        collection and dissemination with other agencies and entities 
        that receive assistance and administer programs under this 
        subtitle.
    ``(h) Report.--Not later than 4 years after the date of enactment 
of the Better Education for Students and Teachers Act, the Secretary 
shall prepare and submit to the President and the appropriate 
committees of the House of Representatives and the Senate a report on 
the status of the education of homeless children and youth, which shall 
include information regarding--
            ``(1) the education of homeless children and youth; and
            ``(2) the actions of the Department of Education and the 
        effectiveness of the programs supported under this subtitle.''.

SEC. 165. DEFINITIONS.

    Section 725 of such Act (42 U.S.C. 11434a) is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) the terms `local educational agency' and `State 
        educational agency' have the meanings given the terms in 
        section 3 of the Elementary and Secondary Education Act of 
        1965;''.

SEC. 166. AUTHORIZATION OF APPROPRIATIONS.

    Section 726 of such Act (42 U.S.C. 11435) is amended to read as 
follows:

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $70,000,000 for fiscal year 2002 and such 
sums as may be necessary for each of the 6 succeeding fiscal years.''.

SEC. 167. CONFORMING AMENDMENTS.

    (a) Grants for State and Local Activities.--Section 722 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11432) is 
amended--
            (1) in subsection (c)(1), by striking ``section 724(c)'' 
        and inserting ``section 724(d)''; and
            (2) in subsection (g)(2), by striking ``paragraphs (3) 
        through (9)'' and inserting ``paragraphs (3) through (8)''.
    (b) Local Educational Agency Grants.--Section 723(b)(3) of such Act 
(42 U.S.C. 11433(b)(3)) is amended by striking ``paragraphs (3) through 
(9) of section 722(g)'' and inserting ``paragraphs (3) through (8) of 
section 722(g)''.
    (c) Secretarial Responsibilities.--Section 724(f) of such Act (as 
amended by section 164(3)) is amended by striking ``subsection (d)'' 
and inserting ``subsection (e)''.

                           TITLE II--TEACHERS

SEC. 201. TEACHER QUALITY.

    Title II (20 U.S.C. 6601 et seq.) is amended to read as follows:

                          ``TITLE II--TEACHERS

                       ``PART A--TEACHER QUALITY

``SEC. 2101. PURPOSE.

    ``The purpose of this part is to provide grants to State 
educational agencies, local educational agencies, State agencies for 
higher education, and eligible partnerships in order to--
            ``(1) increase student academic achievement and student 
        performance through such strategies as improving teacher 
        quality and increasing the number of highly qualified teachers 
        in the classroom; and
            ``(2) hold local educational agencies and schools 
        accountable for improvements in student academic achievement 
        and student performance.

``SEC. 2102. DEFINITIONS.

    ``In this part:
            ``(1) All students.--The term `all students' means students 
        from a broad range of backgrounds and circumstances, including 
        economically disadvantaged students, students with diverse 
        racial, ethnic, and cultural backgrounds, students with 
        disabilities, students with limited English proficiency, and 
        academically talented students.
            ``(2) Core academic subjects.--The term `core academic 
        subjects' means English, mathematics, science, foreign 
        languages, civics and government, economics, arts, history, and 
        geography.
            ``(3) Highly qualified.--The term `highly qualified' 
        means--
                    ``(A) with respect to an elementary school teacher, 
                a teacher--
                            ``(i)(I) with an academic major in the arts 
                        and sciences; or
                            ``(II) who can demonstrate competence 
                        through a high level of performance in core 
                        academic subjects; and
                            ``(ii) who is certified or licensed by the 
                        State involved; and
                    ``(B) with respect to a secondary school teacher, a 
                teacher--
                            ``(i)(I) with an academic major (or courses 
                        totaling an equivalent number of credit hours) 
                        in the academic subject that the teacher 
                        teaches or a related field;
                            ``(II) who can demonstrate a high level of 
                        competence through rigorous academic subject 
                        tests and achievement of a high level of 
                        competence as described in subclause (III);
                            ``(III) who can demonstrate a high level of 
                        competence through a high level of performance 
                        in the academic subjects that the teacher 
                        teaches; and
                            ``(ii) who is certified or licensed by the 
                        State.
            ``(4) High need local educational agency.--The term `high 
        need local educational agency' has the meaning given the term 
        in section 201(b) of the Higher Education Act of 1965.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965.
            ``(6) Out-of-field teacher.--The term `out-of-field 
        teacher' means a secondary school teacher who is teaching an 
        academic subject for which the teacher is not highly qualified.
            ``(7) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and Budget 
        and revised annually in accordance with section 673(2) of the 
        Community Services Block Grant Act) applicable to a family of 
        the size involved.
            ``(8) Professional development.--The term `professional 
        development' means activities that--
                    ``(A) are an integral part of broad schoolwide and 
                districtwide educational improvement plans;
                    ``(B) enhance the ability of teachers and other 
                staff to--
                            ``(i) help all students meet challenging 
                        State and local content and student performance 
                        standards;
                            ``(ii) improve understanding and use of 
                        student assessments by the teachers and staff;
                            ``(iii) improve classroom management 
                        skills; and
                            ``(iv) as appropriate, integrate technology 
                        into the curriculum;
                    ``(C) are sustained, intensive, and school-
                embedded;
                    ``(D) are tied to State content and student 
                performance standards;
                    ``(E) are of high quality and sufficient duration 
                to have a positive and lasting impact on classroom 
                instruction, and are not one-time workshops; and
                    ``(F) are based on the best available research on 
                teaching and learning.

``SEC. 2103. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants to States, Local Educational Agencies, and Eligible 
Partnerships.--There are authorized to be appropriated to carry out 
this part (other than subpart 5) $3,000,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years.
    ``(b) National Programs.--There are authorized to be appropriated 
to carry out subpart 5 (other than subsection (f)) $100,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States with 
applications approved under section 2112 to pay for the Federal share 
of carrying out the activities specified in section 2113. Each grant 
shall consist of the allotment determined for a State under subsection 
(b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--
                    ``(A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal year, 
                the Secretary shall reserve--
                            ``(i) \1/2\ of 1 percent for payments to 
                        the outlying areas, to be distributed among the 
                        outlying areas on the basis of their relative 
                        need, as determined by the Secretary, for 
                        activities authorized under this part relating 
                        to teacher quality, including professional 
                        development and teacher hiring; and
                            ``(ii) \1/2\ of 1 percent for payments to 
                        the Secretary of the Interior for activities 
                        described in clause (i) in schools operated or 
                        funded by the Bureau of Indian Affairs.
                    ``(B) Limitation.--In reserving an amount for the 
                purposes described in clauses (i) and (ii) of 
                subparagraph (A) for a fiscal year, the Secretary shall 
                not reserve more than the total amount the outlying 
                areas and the schools operated or funded by the Bureau 
                of Indian Affairs received for fiscal year 2001 under--
                            ``(i) section 2202(b) of this Act (as in 
                        effect on the day before the date of enactment 
                        of the Better Education for Students and 
                        Teachers Act); and
                            ``(ii) section 306 of the Department of 
                        Education Appropriations Act, 2001 (as enacted 
                        into law by section 1(a)(1) of Public Law 106-
                        554).
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                            ``(i) In general.--Subject to subparagraph 
                        (B), from the total amount appropriated under 
                        section 2103(a) for any fiscal year and not 
                        reserved under paragraph (1), the Secretary 
                        shall allot to each of the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico an amount equal to the total amount 
                        that such State received for fiscal year 2001 
                        under the authorities described in paragraph 
                        (1)(B).
                            ``(ii) Ratable reduction.--If the total 
                        amount appropriated under section 2103(a) for 
                        any fiscal year and not reserved under 
                        paragraph (1) is insufficient to pay the full 
                        amounts that all States are eligible to receive 
                        under clause (i) for the fiscal year, the 
                        Secretary shall ratably reduce such amounts for 
                        the fiscal year.
                    ``(B) Allotment of additional funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        for any fiscal year for which the total amount 
                        appropriated under section 2103(a) and not 
                        reserved under paragraph (1) exceeds the total 
                        amount made available to the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico for fiscal year 2001 under the 
                        authorities described in paragraph (1)(B), the 
                        Secretary shall allot to each of those States 
                        the sum of--
                                    ``(I) an amount that bears the same 
                                relationship to 50 percent of the 
                                excess amount as the number of 
                                individuals age 5 through 17 in the 
                                State, as determined by the Secretary 
                                on the basis of the most recent 
                                satisfactory data, bears to the number 
                                of those individuals in all such 
                                States, as so determined; and
                                    ``(II) an amount that bears the 
                                same relationship to 50 percent of the 
                                excess amount as the number of 
                                individuals age 5 through 17 from 
                                families with incomes below the poverty 
                                line in the State, as determined by the 
                                Secretary on the basis of the most 
                                recent satisfactory data, bears to the 
                                number of those individuals in all such 
                                States, as so determined.
                            ``(ii) Exception.--No State receiving an 
                        allotment under clause (i) may receive less 
                        than \1/2\ of 1 percent of the total excess 
                        amount allotted under clause (i) for a fiscal 
                        year.
            ``(3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, the 
        Secretary shall reallot the amount of the allotment to the 
        remaining States in accordance with this subsection.

``SEC. 2112. STATE APPLICATIONS.

    ``(a) In General.--For a State to be eligible to receive a grant 
under this part, the State educational agency shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Contents.--Each application submitted under this section 
shall include the following:
            ``(1) A description of how the activities to be carried out 
        by the State educational agency under this subpart will be 
        based on a review of relevant research and an explanation of 
        why the activities are expected to improve student performance 
        and outcomes.
            ``(2) A description of how the State educational agency 
        will align activities assisted under this subpart with State 
        content and student performance standards and State 
        assessments.
            ``(3) A description of how the State educational agency 
        will ensure that a local educational agency receiving a 
        subgrant to carry out subpart 2 will comply with the 
        requirements of such subpart.
            ``(4) A description of how the State educational agency 
        will use funds made available under this part to improve the 
        quality of the State's teaching force and the educational 
        opportunities for students.
            ``(5) A description of how the State educational agency 
        will coordinate professional development activities authorized 
        under this part with professional development activities 
        provided under other Federal, State, and local programs, 
        including those authorized under--
                    ``(A) title I, part C of this title, part A of 
                title III, and title IV; and
                    ``(B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, and 
                title II of the Higher Education Act of 1965.
            ``(6) An assurance that the State educational agency will 
        consistently monitor the progress of each local educational 
        agency and school in the State in achieving the purpose of this 
        part and meeting the performance objectives and measures 
        described in section 2141.
    ``(c) Approval.--The Secretary shall approve a State application 
submitted to the Secretary under this section unless the Secretary 
makes a written determination, within 90 days after receiving the 
application, that the application does not meet the requirements of 
this Act.

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under section 2111 
shall--
            ``(1) reserve a portion of the funds made available through 
        the grant for State activities described in subsection (b);
            ``(2) reserve 95 percent of the funds to make subgrants to 
        local educational agencies as described in subpart 2; and
            ``(3) reserve a portion of the funds to make subgrants to 
        local partnerships as described in subpart 3.
    ``(b) State Activities.--The State educational agency for a State 
that receives a grant under section 2111 shall use the funds reserved 
under subsection (a)(1) to carry out 1 or more of the following 
activities:
            ``(1) Reforming teacher certification (including 
        recertification) or licensing requirements to ensure that--
                    ``(A) teachers have the necessary subject matter 
                knowledge and teaching skills in the academic subjects 
                that the teachers teach;
                    ``(B) the requirements are aligned with challenging 
                State content standards; and
                    ``(C) teachers have the subject matter knowledge 
                and teaching skills necessary to help students meet 
                challenging State student performance standards.
            ``(2) Carrying out programs that provide support during the 
        initial teaching experience, such as programs that provide 
        mentoring, team teaching, reduced schedules, and intensive 
        professional development.
            ``(3) Carrying out programs that establish, expand, or 
        improve alternative routes for State certification of teachers 
        for highly qualified individuals with a baccalaureate degree, 
        including mid-career professionals from other occupations, 
        paraprofessionals, former military personnel, and recent 
        college or university graduates with records of academic 
        distinction who demonstrate the potential to become highly 
        effective teachers.
            ``(4) Supporting activities to encourage and support 
        teachers seeking national board certification from the National 
        Board for Professional Teaching Standards or other recognized 
        entities.
            ``(5) Developing and implementing effective mechanisms to 
        assist local educational agencies and schools in effectively 
        recruiting and retaining highly qualified and effective 
        teachers and principals.
            ``(6) Funding projects to promote reciprocity of teacher 
        certification or licensure between or among States.
            ``(7) Testing new teachers for subject matter knowledge, 
        and testing the teachers for State certification or licensing, 
        consistent with title II of the Higher Education Act of 1965.
            ``(8) Supporting activities that ensure that teachers are 
        able to use State content and student performance standards and 
        assessments to improve instructional practices and improve 
        student achievement and student performance.
            ``(9) Establishing teacher compensation systems based on 
        merit and proven performance.
            ``(10) Reforming tenure systems.
    ``(c) Coordination.--A State that receives a grant to carry out 
this subpart and a grant under section 202 of the Higher Education Act 
of 1965 shall coordinate the activities carried out under this subpart 
and the activities carried out under that section 202.

          ``Subpart 2--Subgrants to Local Educational Agencies

``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--A State that receives a grant under section 2111 
shall use the funds reserved under section 2113(a)(2) to make subgrants 
to eligible local educational agencies to carry out the activities 
specified in section 2123. Each subgrant shall consist of the 
allocation determined for a local educational agency under subsection 
(b).
    ``(b) Determination of Allocations.--From the total amount made 
available through the grant, the State shall allocate to each of the 
eligible local educational agencies the sum of--
            ``(1) an amount that bears the same relationship to 25 
        percent of the total amount as the number of individuals age 5 
        through 17 in the geographic area served by the agency, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data, bears to the number of those individuals in 
        the geographic areas served by all the local educational 
        agencies in the State, as so determined; and
            ``(2) an amount that bears the same relationship to 75 
        percent of the total amount as the number of individuals age 5 
        through 17 from families with incomes below the poverty line, 
        in the geographic area served by the agency, as determined by 
        the Secretary on the basis of the most recent satisfactory 
        data, bears to the number of those individuals in the 
        geographic areas served by all the local educational agencies 
        in the State, as so determined.

``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

    ``(a) In General.--To be eligible to receive a subgrant under this 
subpart, a local educational agency shall submit an application to the 
State educational agency at such time, in such manner, and containing 
such information as the State educational agency may reasonably 
require.
    ``(b) Contents.--Each application submitted under this section 
shall be based on the needs assessment required in subsection (c) and 
shall include the following:
            ``(1)(A) A description of the activities to be carried out 
        by the local educational agency under this subpart.
            ``(B) A description of how the activities will be based on 
        a review of relevant research and an explanation of why the 
        activities are expected to improve student performance and 
        outcomes.
            ``(2) A description of how the activities will have a 
        substantial, measurable, and positive impact on student 
        academic achievement and student performance and how the 
        activities will be used as part of a broader strategy to 
        eliminate the achievement gap that separates low-income and 
        minority students from other students.
            ``(3) An assurance that the local educational agency will 
        target funds to schools served by the local educational agency 
        that--
                    ``(A) have the lowest proportions of highly 
                qualified teachers;
                    ``(B) are identified for school improvement under 
                section 1116(c); or
                    ``(C) are identified for school improvement in 
                accordance with other measures of school quality as 
                determined and documented by the local educational 
                agency.
            ``(4) A description of how the local educational agency 
        will coordinate professional development activities authorized 
        under this subpart with professional development activities 
        provided under other Federal, State, and local programs, 
        including those authorized under--
                    ``(A) title I, part C of this title, part A of 
                title III, and title IV; and
                    ``(B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, and 
                title II of the Higher Education Act of 1965.
            ``(5) A description of the evaluation plan that the local 
        educational agency will carry out pursuant to section 2141.
            ``(6) A description of how the local educational agency has 
        collaborated with teachers, paraprofessionals, principals, 
        other relevant school personnel, and parents in the preparation 
        of the application.
            ``(7) A description of the results of the needs assessment 
        described in subsection (c).
            ``(8) A description of how the local educational agency 
        will address the ongoing professional development and mentoring 
        needs of teachers and administrators.
    ``(c) Needs Assessment.--
            ``(1) In general.--To be eligible to receive a subgrant 
        under this subpart, a local educational agency shall conduct an 
        assessment of local needs for professional development and 
        hiring, as identified by the local educational agency and 
        school staff.
            ``(2) Requirements.--Such needs assessment shall be 
        conducted with the involvement of teachers, including teachers 
        receiving assistance under part A of title I, and shall take 
        into account the activities that need to be conducted in order 
        to give teachers and, where appropriate, administrators, the 
        means, including subject matter knowledge and teaching skills, 
        to provide students with the opportunity to meet challenging 
        State and local student performance standards.

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) Special Rule.--
            ``(1) In general.--A local educational agency that receives 
        a subgrant under section 2121 may use the amount described in 
        paragraph (2), of the funds made available through the 
        subgrant, to carry out activities described in section 306 of 
        the Department of Education Appropriations Act, 2001 (as 
        enacted into law by section 1(a)(1) of Public Law 106-554).
            ``(2) Amount.--The amount referred to in paragraph (1) is 
        the amount received by the agency under that section 306.
    ``(b) Local Use of Funds.--A local educational agency that receives 
a subgrant under section 2121 shall use the funds made available 
through the subgrant to carry out 1 or more of the following 
activities:
            ``(1) Providing professional development activities that 
        improve the knowledge of teachers concerning--
                    ``(A) 1 or more of the core academic subjects that 
                the teachers teach;
                    ``(B) effective instructional strategies, methods, 
                and skills for improving student academic achievement 
                and student performance; and
                    ``(C) effective use of State content and student 
                performance standards and assessments to improve 
                instructional practices and improve student achievement 
                and student performance.
            ``(2) Mentoring.
            ``(3) Providing teachers and principals with opportunities 
        for professional development through institutions of higher 
        education.
            ``(4) Providing induction and support for teachers during 
        their first 3 years of teaching.
            ``(5) Recruiting (including recruiting through the use of 
        scholarships, signing bonuses, or other financial incentives, 
        as well as accelerated paraprofessional-to-teacher training 
        programs and programs that attract mid-career professionals 
        from other professions), hiring, and training regular and 
        special education teachers (which may include hiring special 
        education teachers to team-teach in classrooms that contain 
        both children with disabilities and nondisabled children, and 
        may include recruiting and hiring certified or licensed 
        teachers to reduce class size), and teachers of special needs 
        children, who are highly qualified.
            ``(6) Carrying out programs and activities related to--
                    ``(A) reform of teacher tenure systems;
                    ``(B) provision of merit pay for teachers; and
                    ``(C) testing of elementary school and secondary 
                school teachers in the academic subjects that the 
                teachers teach.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. SUBGRANTS.

    ``(a) In General.--The State agency for higher education for a 
State that receives a grant under section 2111, working in conjunction 
with the State educational agency (if such agencies are separate) shall 
use the funds reserved under section 2113(a)(3) to make subgrants, on a 
competitive basis, to eligible partnerships to enable such partnerships 
to carry out the activities described in section 2133.
    ``(b) Distribution.--The State agency for higher education shall 
ensure that--
            ``(1) such subgrants are equitably distributed by 
        geographic area within a State; or
            ``(2) eligible partnerships in all geographic areas within 
        the State are served through the subgrants.
    ``(c) Special Rule.--No single participant in an eligible 
partnership may use more than 50 percent of the funds made available to 
the partnership under this section.

``SEC. 2132. APPLICATIONS.

    ``To be eligible to receive a subgrant under this subpart, an 
eligible partnership shall submit an application to the State agency 
for higher education at such time, in such manner, and containing such 
information as the agency may require.

``SEC. 2133. USE OF FUNDS.

    ``(a) In General.--An eligible partnership that receives a subgrant 
under section 2131 shall use the funds made available through the 
subgrant for--
            ``(1) professional development activities in core academic 
        subjects to ensure that teachers, paraprofessionals, and, if 
        appropriate, principals have subject matter knowledge in the 
        academic subjects that the teachers teach; and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        paraprofessionals, or principals of schools served by such 
        agencies, for sustained, high-quality professional development 
        activities that--
                    ``(A) ensure that the individuals are able to use 
                State content standards, performance standards, and 
                assessments to improve instructional practices and 
                improve student academic achievement and student 
                performance; and
                    ``(B) may include intensive programs designed to 
                prepare such individuals who will return to a school to 
                provide instruction related to the professional 
                development described in subparagraph (A) to other such 
                individuals within such school.
    ``(b) Coordination.--An eligible partnership that receives a 
subgrant to carry out this subpart and a grant under section 203 of the 
Higher Education Act of 1965 shall coordinate the activities carried 
out under this subpart and the activities carried out under that 
section 203.

``SEC. 2134. DEFINITION.

    ``In this subpart, the term `eligible partnership' means an entity 
that--
            ``(1) shall include--
                    ``(A) a private or State institution of higher 
                education and the division of the institution that 
                prepares teachers;
                    ``(B) a school of arts and sciences; and
                    ``(C) a high need local educational agency; and
            ``(2) may include another local educational agency, a 
        public charter school, an elementary school or secondary 
        school, an educational service agency, a nonprofit educational 
        organization, another institution of higher education, a school 
        of arts and sciences within such an institution, the division 
        of such an institution that prepares teachers, a nonprofit 
        cultural organization, an entity carrying out a prekindergarten 
        program, a teacher organization, or a business.

                      ``Subpart 4--Accountability

``SEC. 2141. EVALUATION PLAN FOR LOCAL EDUCATIONAL AGENCIES.

    ``Each local educational agency receiving funds under this part 
shall establish and include in the agency's application submitted under 
section 2122(b) an evaluation plan that requires evaluation of the 
agency and the schools served by the agency with respect to--
            ``(1) strong performance objectives and other measures 
        concerning--
                    ``(A)(i) increasing student academic achievement 
                and student performance for all students as measured by 
                the local educational agency; and
                    ``(ii) increasing participation in sustained 
                professional development and mentoring;
                    ``(B) increasing teacher retention among teachers 
                in the first 3 years of their teaching careers; and
                    ``(C) decreasing use of out-of-field teachers; and
            ``(2) other measures of improved student academic 
        achievement and student performance, as determined by the local 
        educational agency.

``SEC. 2142. SANCTIONS FOR LOCAL EDUCATIONAL AGENCIES.

    ``(a) Reports.--Each local educational agency receiving a subgrant 
under this part shall annually prepare and submit to the State 
educational agency a report describing the progress of the local 
educational agency and the schools served by the agency toward 
achieving the purpose of this part and meeting the performance 
objectives and measures described in section 2141.
    ``(b) Technical Assistance.--If a State educational agency 
determines that a local educational agency in the State has failed to 
make substantial progress toward achieving the purpose and meeting the 
objectives and measures described in subsection (a) by the end of the 
third year for which the local educational agency receives funds under 
this part, the State educational agency shall provide technical 
assistance--
            ``(1) to the local educational agency; and
            ``(2) if applicable, to schools served by the local 
        educational agency that need assistance to achieve the purpose 
        and meet the objectives and measures.
    ``(c) Withholding of Funds.--If the State educational agency 
determines that the local educational agency has failed to make 
substantial progress toward achieving the purpose and meeting the 
objectives and measures described in subsection (a) by the end of the 
fifth year for which the local educational agency receives funds under 
this part, the State educational agency shall--
            ``(1) withhold the allocation described in section 2121(b) 
        from the local educational agency for 2 fiscal years; and
            ``(2) use the funds to carry out programs to assist the 
        local educational agency and schools served by the local 
        educational agency to achieve the purpose and meet the 
        objectives and measures.

                     ``Subpart 5--National Programs

``SEC. 2151. NATIONAL PROGRAMS OF DEMONSTRATED EFFECTIVENESS.

    ``(a) In General.--The Secretary shall use funds made available 
under section 2103(b) to carry out each of the activities described in 
subsections (b) through (e).
    ``(b) School Leadership.--The Secretary shall award grants to 
entities that are State educational agencies, local educational 
agencies, institutions of higher education, or nonprofit educational 
organizations, and consortia of such entities, to enable such entities 
and consortia to recruit and train school leaders (including principals 
and assistant principals), provide mentorship for new school leaders, 
and provide ongoing professional development to develop or enhance the 
leadership skills of school leaders.
    ``(c) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary shall support activities 
        to encourage and support teachers seeking advanced 
        certification or advanced credentialing through high quality 
        professional teacher enhancement programs designed to improve 
        teaching and learning, including programs provided by the 
        National Board for Professional Teaching Standards.
            ``(2) Implementation.--In carrying out paragraph (1), the 
        Secretary shall make grants to the National Board for 
        Professional Teaching Standards, State educational agencies, 
        local educational agencies, or individuals, to promote 
        outreach, teacher recruitment, teacher subsidy, or teacher 
        support programs related to teacher certification by the 
        National Board for Professional Teaching Standards.
    ``(d) Troops-to-Teachers Program.--
            ``(1) Purpose.--The purpose of this subsection is to 
        authorize a mechanism for the funding and administration of the 
        Troops-to-Teachers Program established by the Troops-to-
        Teachers Program Act of 1999 (title XVII of the National 
        Defense Authorization Act for Fiscal Year 2000).
            ``(2) Transfer of funds for administration of program.--To 
        the extent that funds are made available under this Act to the 
        Secretary for the Troops-to-Teachers Program, the Secretary 
        shall use the funds to enter into a contract with the Defense 
        Activity for Non-Traditional Education Support of the 
        Department of Defense. The Defense Activity shall use the 
        amounts made available through the contract to perform the 
        actual administration of the Troops-to-Teachers Program, 
        including the selection of participants in the program under 
        section 1704 of the Troops-to-Teachers Program Act of 1999. The 
        Secretary may retain a portion of the funds to identify local 
        educational agencies with concentrations of children from low-
        income families or with teacher shortages and States with 
        alternative certification or licensure requirements, as 
        required by section 1702 of such Act.
    ``(e) Transition to Teaching.--The Secretary shall provide 
assistance for activities to support the development and implementation 
of national or regional programs to--
            ``(1) recruit, prepare, place, and support mid-career 
        professionals who have knowledge and experience that will help 
        the professionals become highly qualified teachers, through 
        alternative routes to certification, for high need local 
        educational agencies; and
            ``(2) help retain the professionals as classroom teachers 
        serving the local educational agencies for more than 3 years.
    ``(f) National Teacher Recruitment Campaign.--
            ``(1) Grant.--The Secretary shall award a grant, on a 
        competitive basis, to a single national coalition of teacher 
        and media organizations, including the National Teacher 
        Recruitment Clearinghouse, to enable such organizations to 
        jointly conduct a national public service campaign as described 
        in paragraph (2).
            ``(2) Use of funds.--A coalition that receives a grant 
        under paragraph (1) shall use amounts made available under the 
        grant to conduct a national public service campaign concerning 
        the resources for and routes to entering the field of teaching. 
        In conducting the campaign, the coalition shall focus on 
        providing information both to a national audience and in 
        specific media markets, and shall specifically expand on, 
        promote, and link the coalition's outreach efforts to, the 
        information referral activities and resources of the National 
        Teacher Recruitment Clearinghouse.
            ``(3) Application.--To be eligible to receive a grant under 
        this subsection, a coalition shall prepare and submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $3,000,0000 for 
        fiscal year 2002 and each of the 6 succeeding fiscal years.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE.

    ``The purpose of this part is to improve the performance of 
students in the areas of mathematics and science by encouraging States, 
institutions of higher education, elementary schools, and secondary 
schools to participate in programs that--
            ``(1) upgrade the status and stature of mathematics and 
        science teaching by encouraging institutions of higher 
        education to assume greater responsibility for improving 
        mathematics and science teacher education through the 
        establishment of a comprehensive, integrated system of 
        recruiting and advising such teachers;
            ``(2) focus on education of mathematics and science 
        teachers as a career-long process that should continuously 
        stimulate teachers' intellectual growth and upgrade teachers' 
        knowledge and skills;
            ``(3) bring mathematics and science teachers in elementary 
        schools and secondary schools together with scientists, 
        mathematicians, and engineers to increase the subject matter 
        knowledge and improve the teaching skills of teachers through 
        the use of more sophisticated laboratory equipment and space, 
        computing facilities, libraries, and other resources that 
        institutions of higher education are better able to provide 
        than the schools; and
            ``(4) develop more rigorous mathematics and science 
        curricula that are aligned with State and local standards and 
        with the standards expected for postsecondary study in 
        mathematics and science, respectively.

``SEC. 2202. DEFINITIONS.

    ``In this part:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means a partnership that--
                    ``(A) shall include--
                            ``(i) a State educational agency;
                            ``(ii) a mathematics or science department 
                        of an institution of higher education; and
                            ``(iii) a local educational agency; and
                    ``(B) may include--
                            ``(i) another mathematics, science, or 
                        teacher training department of an institution 
                        of higher education;
                            ``(ii) another local educational agency, or 
                        an elementary school or secondary school;
                            ``(iii) a business; or
                            ``(iv) a nonprofit organization of 
                        demonstrated effectiveness, including a museum.
            ``(2) High need local educational agency.--The term `high 
        need local educational agency' has the meaning given the term 
        in section 201(b) of the Higher Education Act of 1965.
            ``(3) Summer workshop or institute.-- The term `summer 
        workshop or institute' means a workshop or institute, conducted 
        during the summer, that--
                    ``(A) is conducted during a period of not less than 
                2 weeks;
                    ``(B) provides for a program that provides direct 
                interaction between students and faculty; and
                    ``(C) provides for followup training during the 
                academic year that--
                            ``(i) except as provided in clause (ii) or 
                        (iii), shall be conducted in the classroom for 
                        a period of not less than 3 days, which may or 
                        may not be consecutive;
                            ``(ii) if the program described in 
                        subparagraph (B) is for a period of not more 
                        than 2 weeks, shall be conducted for a period 
                        of more than 3 days; or
                            ``(iii) if the program is for teachers in 
                        rural school districts, may be conducted 
                        through distance education.

                  ``Subpart 1--Grants to Partnerships

``SEC. 2211. GRANTS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants, on 
a competitive basis, to eligible partnerships to enable the eligible 
partnerships to pay the Federal share of the costs of carrying out the 
authorized activities described in section 2213.
    ``(b) Duration.--The Secretary shall award grants under this 
section for a period of 5 years.
    ``(c) Federal Share.--
            ``(1) In general.--The Federal share of the costs of the 
        activities assisted under this subpart shall be--
                    ``(A) 75 percent of the costs for the first year an 
                eligible partnership receives a grant payment under 
                this subpart;
                    ``(B) 65 percent of the costs for the second such 
                year; and
                    ``(C) 50 percent of the costs for each of the 
                third, fourth, and fifth such years.
            ``(2) Non-federal share.--The non-Federal share of the 
        costs may be provided in cash or in kind, fairly evaluated.
    ``(d) Priority.--In awarding grants under this subpart the 
Secretary shall give priority to partnerships that include high need 
local educational agencies.

``SEC. 2212. APPLICATION REQUIREMENTS.

    ``(a) In General.--Each eligible partnership desiring a grant under 
this subpart shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    ``(b) Contents.--Each such application shall include--
            ``(1) an assessment of the teacher quality and professional 
        development needs of all the schools and agencies participating 
        in the eligible partnership with respect to the teaching and 
        learning of mathematics and science;
            ``(2) a description of how the activities to be carried out 
        by the eligible partnership will be aligned with State and 
        local standards and with other educational reform activities 
        that promote student achievement in mathematics and science;
            ``(3) a description of how the activities to be carried out 
        by the eligible partnership will be based on a review of 
        relevant research, and an explanation of why the activities are 
        expected to improve student performance and to strengthen the 
        quality of mathematics and science instruction; and
            ``(4) a description of--
                    ``(A) how the eligible partnership will carry out 
                the authorized activities described in section 2213; 
                and
                    ``(B) the eligible partnership's evaluation and 
                accountability plan described in section 2214.

``SEC. 2213. AUTHORIZED ACTIVITIES.

    ``An eligible partnership shall use the grant funds provided under 
this subpart for 1 or more of the following activities related to 
elementary schools or secondary schools:
            ``(1) Developing or redesigning more rigorous mathematics 
        and science curricula that are aligned with State and local 
        standards and with the standards expected for postsecondary 
        study in mathematics and science, respectively.
            ``(2) Creating opportunities for enhanced and ongoing 
        professional development that improves the subject matter 
        knowledge of mathematics and science teachers.
            ``(3) Recruiting mathematics and science majors to 
        teaching.
            ``(4) Promoting strong teaching skills for mathematics and 
        science teachers and teacher educators, including integrating 
        reliable scientifically based research teaching methods into 
        the curriculum.
            ``(5) Establishing mathematics and science summer workshops 
        or institutes (including followup training) for teachers, using 
        curricula that are experiment-oriented, content-based, and 
        grounded in research that is current as of the date of the 
        workshop or institute involved.
            ``(6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that are 
        experiment-oriented, content-based, and grounded in research 
        that is current as of the date of the program involved.
            ``(7) Designing programs to prepare a teacher at a school 
        to provide professional development to other teachers at the 
        school and to assist novice teachers at such school, including 
        (if applicable) a mechanism to integrate experiences from a 
        summer workshop or institute.
            ``(8) Designing programs to bring teachers into contact 
        with working scientists.

``SEC. 2214. EVALUATION AND ACCOUNTABILITY PLAN.

    ``Each eligible partnership receiving a grant under this subpart 
shall develop an evaluation and accountability plan for activities 
assisted under this subpart that includes strong performance 
objectives. The plan shall include objectives and measures for--
            ``(1) improved student performance on State mathematics and 
        science assessments or the Third International Math and Science 
        Study assessment;
            ``(2) increased participation by students in advanced 
        courses in mathematics and science;
            ``(3) increased percentages of secondary school classes in 
        mathematics and science taught by teachers with academic majors 
        in mathematics and science, respectively; and
            ``(4) increased numbers of mathematics and science teachers 
        who participate in content-based professional development 
        activities.

``SEC. 2215. REPORT; REVOCATION OF GRANT.

    ``(a) Report.--Each eligible partnership receiving a grant under 
this subpart annually shall report to the Secretary regarding the 
eligible partnership's progress in meeting the performance objectives 
described in section 2214.
    ``(b) Revocation.--If the Secretary determines that an eligible 
partnership is not making substantial progress in meeting the 
performance objectives described in section 2214 by the end of the 
third year of a grant under this subpart, the grant payments shall not 
be made for the fourth and fifth year of the grant.

   ``Subpart 2--Eisenhower Clearinghouse for Mathematics and Science 
                               Education

``SEC. 2221. CLEARINGHOUSE.

    ``(a) Grant or Contract.--
            ``(1) In general.--The Secretary, in consultation with the 
        Director of the National Science Foundation, may award a grant 
        or contract to an entity to continue the operation of the 
        Eisenhower National Clearinghouse for Mathematics and Science 
        Education (referred to in this section as the `Clearinghouse'). 
        The Secretary shall award the grant or contract on a 
        competitive basis, on the basis of merit.
            ``(2) Duration.--The grant or contract awarded under 
        paragraph (1) shall be awarded for a period of 5 years.
    ``(b) Clearinghouse.--
            ``(1) Use of funds.--An entity that receives a grant or 
        contract under subsection (a) shall use the funds made 
        available through the grant or contract to--
                    ``(A) maintain a permanent repository of 
                mathematics and science education instructional 
                materials and programs for elementary schools and 
                secondary schools, including middle schools;
                    ``(B) compile information on all mathematics and 
                science education programs administered by each Federal 
                agency or department;
                    ``(C) disseminate instructional materials, 
                programs, and information to the public and 
                dissemination networks, including information on model 
                engineering, science, technology, and mathematics 
                teacher mentoring programs;
                    ``(D) coordinate activities with entities operating 
                identifiable databases containing mathematics and 
                science instructional materials and programs, including 
                Federal, non-Federal, and, where feasible, 
                international, databases;
                    ``(E) gather qualitative and evaluative data on 
                submissions to the Clearinghouse;
                    ``(F)(i) solicit and gather (in consultation with 
                the Department, national teacher associations, 
                professional associations, and other reviewers and 
                developers of instructional materials and programs) 
                qualitative and evaluative materials and programs, 
                including full text and graphics, for the 
                Clearinghouse;
                    ``(ii) review the evaluation of the materials and 
                programs, and rank the effectiveness of the materials 
                and programs on the basis of the evaluations, except 
                that nothing in this subparagraph shall be construed to 
                permit the Clearinghouse to directly conduct an 
                evaluation of the materials or programs; and
                    ``(iii) distribute to teachers, in an easily 
                accessible manner, the results of the reviews (in a 
                short, standardized, and electronic format that 
                contains electronic links to an electronic version of 
                the qualitative and evaluative materials and programs 
                described in clause (i)), excerpts of the materials and 
                programs, links to Internet-based sites, and 
                information regarding on-line communities of persons 
                who use the materials and programs; and
                    ``(G) develop and establish an Internet-based site 
                offering a search mechanism to assist site visitors in 
                identifying information available through the 
                Clearinghouse on engineering, science, technology, and 
                mathematics education instructional materials and 
                programs, including electronic links to information on 
                classroom demonstrations and experiments, to teachers 
                who have used materials or participated in programs, to 
                vendors, to curricula, and to textbooks.
            ``(2) Submission to clearinghouse.--Each Federal agency or 
        department that develops mathematics or science education 
        instructional materials or programs, including the National 
        Science Foundation and the Department, shall submit to the 
        Clearinghouse copies of such materials or programs.
            ``(3) Steering committee.--The Secretary may appoint a 
        steering committee to recommend policies and activities for the 
        Clearinghouse.
            ``(4) Application of copyright laws.--Nothing in this 
        section shall be construed to allow the use or copying, in any 
        medium, of any material collected by the Clearinghouse that is 
        protected under the copyright laws of the United States unless 
        the Clearinghouse obtains the permission of the owner of the 
        copyright. The Clearinghouse, in carrying out this subsection, 
        shall ensure compliance with title 17, United States Code.
    ``(c) Application.--
            ``(1) In general.--To be eligible to receive a grant or 
        contract under subsection (a) to operate the Clearinghouse, an 
        entity shall submit an application to the Secretary at such 
        time, in such manner, and accompanied by such information as 
        the Secretary may reasonably require.
            ``(2) Peer review.--The Secretary shall establish a peer 
        review process to review the applications and select the 
        recipient of the award under subsection (a).
    ``(d) Dissemination of Information.--The Secretary shall 
disseminate information concerning the grant or contract awarded under 
this section to State educational agencies, local educational agencies, 
and institutions of higher education. The information disseminated 
shall include examples of exemplary national programs in mathematics 
and science instruction and information on necessary technical 
assistance for the establishment of similar programs.
    ``(e) Report.--Not later than 2 years after the date of enactment 
of the Better Education for Students and Teachers Act, the National 
Academy of Sciences, in conjunction with appropriate related 
associations and organizations, shall--
            ``(1) conduct a study on the Clearinghouse to evaluate the 
        effectiveness of the Clearinghouse in conducting the activities 
        described in subsection (b)(1); and
            ``(2) submit to Congress a report on the results of the 
        study, including any recommendations of the Academy regarding 
        the Clearinghouse.

      ``Subpart 3--Preparing Tomorrow's Teachers To Use Technology

``SEC. 2231. PURPOSE; PROGRAM AUTHORITY.

    ``(a) Purpose.--It is the purpose of this subpart to assist 
consortia of public and private entities in carrying out programs that 
prepare prospective teachers to use advanced technology to foster 
learning environments conducive to preparing all students to meet 
challenging State and local content and student performance standards.
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary, acting through the 
        Director of the Office of Educational Technology, is authorized 
        to award grants, contracts, or cooperative agreements on a 
        competitive basis to eligible applicants in order to pay for 
        the Federal share of the cost of assisting applicants in 
        carrying out projects to develop or redesign teacher 
        preparation programs to enable prospective teachers to use 
        advanced technology effectively in their classrooms.
            ``(2) Period of awards.--The Secretary may award grants, 
        contracts, or cooperative agreements under this subpart for a 
        period of not more than 5 years.

``SEC. 2232. ELIGIBILITY.

    ``(a) Eligible Applicants.--In order to receive an award under this 
subpart, an applicant shall be a consortium that includes--
            ``(1) at least 1 institution of higher education that 
        offers a baccalaureate degree and prepares teachers for their 
        initial entry into teaching;
            ``(2) at least 1 State educational agency or local 
        educational agency; and
            ``(3) 1 or more entities consisting of--
                    ``(A) an institution of higher education (other 
                than the institution described in paragraph (1));
                    ``(B) a school or department of education at an 
                institution of higher education;
                    ``(C) a school or college of arts and sciences at 
                an institution of higher education;
                    ``(D) a professional association, foundation, 
                museum, library, for-profit business, public or private 
                nonprofit organization, community-based organization, 
                or other entity, with the capacity to contribute to the 
                technology-related reform of teacher preparation 
                programs.
    ``(b) Application Requirements.--In order to receive an award under 
this subpart, an eligible applicant shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require. Such application shall include--
            ``(1) a description of the proposed project, including how 
        the project would ensure that individuals participating in the 
        project would be prepared to use advanced technology to create 
        learning environments conducive to preparing all students, 
        including girls and students who have economic and educational 
        disadvantages, to meet challenging State and local content and 
        student performance standards;
            ``(2) a demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of each of the members of the consortium 
                for the proposed project; and
                    ``(B) the active support of the leadership of each 
                organization that is a member of the consortium for the 
                proposed project;
            ``(3) a description of how each member of the consortium 
        will be included in project activities;
            ``(4) a description of how the proposed project will be 
        continued after Federal funds are no longer awarded under this 
        subpart; and
            ``(5) a plan for the evaluation of the project, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.
    ``(c) Matching Requirements.--
            ``(1) In general.--The Federal share of the cost of any 
        project funded under this subpart shall not exceed 50 percent. 
        Except as provided in paragraph (2), the non-Federal share of 
        the cost of such project may be provided in cash or in kind, 
        fairly evaluated, including services.
            ``(2) Acquisition of equipment.--Not more than 10 percent 
        of the funds awarded for a project under this subpart may be 
        used to acquire equipment, networking capabilities, or 
        infrastructure, and the non-Federal share of the cost of any 
        such acquisition shall be provided in cash.

``SEC. 2233. USE OF FUNDS.

    ``(a) Required Uses.--A recipient of an award under this subpart 
shall use funds made available under this subpart for--
            ``(1) a project that creates programs that enable 
        prospective teachers to use advanced technology to create 
        learning environments conducive to preparing all students, 
        including girls and students who have economic and educational 
        disadvantages, to meet challenging State and local content and 
        student performance standards; and
            ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--The recipient may use funds made available 
under this subpart for activities, described in the application 
submitted by the recipient under this subpart, that carry out the 
purpose of this subpart, such as--
            ``(1) developing and implementing high-quality teacher 
        preparation programs that enable educators to--
                    ``(A) learn the full range of resources that can be 
                accessed through the use of technology;
                    ``(B) integrate a variety of technologies into the 
                classroom in order to expand students' knowledge;
                    ``(C) evaluate educational technologies and their 
                potential for use in instruction; and
                    ``(D) help students develop their technical skills 
                and digital learning environments;
            ``(2) developing alternative teacher development paths that 
        provide elementary schools and secondary schools with well-
        prepared, technology-proficient educators;
            ``(3) developing performance-based standards and 
        assessments aligned with the standards to measure the capacity 
        of prospective teachers to use technology effectively in their 
        classrooms;
            ``(4) providing technical assistance to entities carrying 
        out other teacher preparation programs;
            ``(5) developing and disseminating resources and 
        information in order to assist institutions of higher education 
        to prepare teachers to use technology effectively in their 
        classrooms; and
            ``(6) subject to section 2232(c)(2), acquiring equipment, 
        networking capabilities, and infrastructure to carry out the 
        project.

                    ``Subpart 4--General Provisions

``SEC. 2241. CONSULTATION WITH NATIONAL SCIENCE FOUNDATION.

    ``In carrying out the activities authorized by this part, the 
Secretary shall consult and coordinate activities with the Director of 
the National Science Foundation, particularly with respect to the 
appropriate roles for the Department and the Foundation in the conduct 
of summer workshops or institutes provided by the eligible partnerships 
to improve mathematics and science teaching in elementary schools and 
secondary schools.

``SEC. 2242. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants.--There are authorized to be appropriated to carry out 
subpart 1 $500,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
    ``(b) Clearinghouse.--There are authorized to be appropriated to 
carry out subpart 2 $5,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
    ``(c) Technology Preparation.--There are authorized to be 
appropriated to carry out subpart 3 $150,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years.

  ``PART C--STATE AND LOCAL PROGRAMS FOR TECHNOLOGY USE IN CLASSROOMS

``SEC. 2301. PURPOSE; GOAL.

    ``(a) Purpose.--The purpose of this part is to support a 
comprehensive system to effectively use technology in elementary and 
secondary schools to improve student academic achievement and 
performance.
    ``(b) Goal.--A goal of this part shall also be to assist every 
student in crossing the digital divide by ensuring that every child is 
technologically literate by the time the child finishes the 8th grade, 
regardless of the child's race, ethnicity, gender, income, geography, 
or disability.

``SEC. 2302. DEFINITIONS.

    ``In this part:
            ``(1) Adult education.--The term `adult education' has the 
        meaning given the term in section 312(2) of the Adult Education 
        Act (20 U.S.C. 1201a(2)).
            ``(2) All students.--The term `all students' means students 
        from a broad range of backgrounds and circumstances, including 
        disadvantaged students, students with diverse racial, ethnic, 
        and cultural backgrounds, students with disabilities, students 
        with limited English proficiency, and academically talented 
        students.
            ``(3) Child in poverty.--The term `child in poverty' means 
        a child from a family with a family income below the poverty 
        line (as defined in section 2102).
            ``(4) Information infrastructure.--The term `information 
        infrastructure' means a network of communication systems 
        designed to exchange information among all citizens and 
        residents of the United States.
            ``(5) Interoperable; interoperability.--The terms 
        `interoperable' and `interoperability' mean the ability to 
        exchange data easily with, and connect to, other hardware and 
        software in order to provide the greatest accessibility for all 
        students and other users.
            ``(6) Public telecommunications entity.--The term `public 
        telecommunications entity' has the meaning given the term in 
        section 397(12) of the Communications Act of 1934 (47 U.S.C. 
        397(12)).
            ``(7) State educational agency.--The term `State 
        educational agency' includes the Bureau of Indian Affairs for 
        purposes of serving schools funded by the Bureau of Indian 
        Affairs in accordance with this part.
            ``(8) State library administrative agency.--The term `State 
        library administrative agency' has the meaning given the term 
        in section 213(5) of the Library Services and Technology Act 
        (20 U.S.C. 9122(5)).

``SEC. 2303. ALLOTMENT AND REALLOTMENT.

    ``(a) Limitation.--From funds appropriated under this part, the 
Secretary shall first reserve such sums as may be necessary for grants 
awarded under section 3136 prior to the date of enactment of the Better 
Education for Students and Teacher Act.
    ``(b) Allotment.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each State educational agency shall be eligible to receive a 
        grant under this part for a fiscal year in an amount which 
        bears the same relationship to the amount made available under 
        section 2310 for such year as the amount such State received 
        under part A of title I for such year bears to the amount 
        received for such year under such part by all States.
            ``(2) Minimum.--No State educational agency shall be 
        eligible to receive a grant under paragraph (1) in any fiscal 
        year in an amount which is less than \1/2\ of 1 percent of the 
        amount made available under section 2310 for such year.
    ``(c) Reallotment of Unused Funds.--
            ``(1) In general.--The amount of any State educational 
        agency's allotment under subsection (b) for any fiscal year 
        which the State determines will not be required for such fiscal 
        year to carry out this part shall be available for reallotment 
        from time to time, on such dates during such year as the 
        Secretary may determine, to other State educational agencies in 
        proportion to the original allotments to such State educational 
        agencies under subsection (b) for such year, but with such 
        proportionate amount for any of such other State educational 
        agencies being reduced to the extent such amount exceeds the 
        sum the State estimates such State needs and will be able to 
        use for such year.
            ``(2) Other reallotments.--The total of reductions under 
        paragraph (1) shall be similarly reallotted among the State 
        educational agencies whose proportionate amounts were not so 
        reduced. Any amounts reallotted to a State educational agency 
        under this subsection during a year shall be deemed a subpart 
        of such agency's allotment under subsection (b) for such year.

``SEC. 2304. TECHNOLOGY GRANTS.

    ``(a) Grants to States.--
            ``(1) In general.--From amounts made available under 
        section 2303, the Secretary, through the Office of Educational 
        Technology, shall award grants to State educational agencies 
        having applications approved under section 2305.
            ``(2) Use of grants.--
                    ``(A) Award to agencies.--Each State educational 
                agency receiving a grant under paragraph (1) shall use 
                such grant funds to award grants, on a competitive 
                basis, to local educational agencies to enable such 
                local educational agencies to carry out the activities 
                described in section 2306.
                    ``(B) Sufficiency.--In awarding grants under 
                subparagraph (A), each State educational agency shall 
                ensure that each such grant is of sufficient duration, 
                and of sufficient size, scope, and quality, to carry 
                out the purposes of this part effectively.
                    ``(C) Priority.--In awarding the grants, each State 
                educational agency shall give priority to the local 
                educational agencies serving the school districts that 
                have the highest number or percentage of children in 
                poverty.
                    ``(D) Distribution.--In awarding the grants, each 
                State educational agency shall assure an equitable 
                distribution of assistance under this part among urban 
                and rural areas of the State, according to the 
                demonstrated need of the local educational agencies 
                serving the areas.
    ``(b) Technical Assistance.--Each State educational agency 
receiving a grant under subsection (a) shall--
            ``(1) identify the local educational agencies served by the 
        State educational agency that--
                    ``(A) have the highest number or percentage of 
                children in poverty; and
                    ``(B) demonstrate to such State educational agency 
                the greatest need for technical assistance in 
                developing the application under 2307; and
            ``(2) offer such technical assistance to such local 
        educational agencies.

``SEC. 2305. STATE APPLICATION.

    ``To receive a grant under this part, each State educational agency 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
reasonably require, including a systemic statewide educational 
technology plan that--
            ``(1) outlines the long-term strategies for improving 
        student performance and student academic achievement through 
        the effective use of technology in classrooms throughout the 
        State;
            ``(2) outlines long-term strategies for financing 
        technology education in the State and describes how business, 
        industry, and other public and private agencies, including 
        libraries, library literacy programs, and institutions of 
        higher education, can participate in the implementation, 
        ongoing planning, and support of the plan; and
            ``(3) meets such other criteria as the Secretary may 
        establish in order to enable such agency to provide assistance 
        to local educational agencies that have the highest numbers or 
        percentages of children in poverty and demonstrate the greatest 
        need for technology, in order to enable such local educational 
        agencies, for the benefit of school sites served by such local 
        educational agencies, to improve student academic achievement 
        and student performance.

``SEC. 2306. LOCAL USES OF FUNDS.

    ``(a) In General.--Each local educational agency, to the extent 
possible, shall use the funds made available under section 2304(a)(2) 
for--
            ``(1) developing, adapting, or expanding existing and new 
        applications of technology to support the school reform effort 
        to improve student academic achievement and student 
        performance;
            ``(2) providing ongoing professional development in the 
        integration of quality educational technologies into school 
        curriculum;
            ``(3) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardware and software, 
        for use by teachers, students, and school library media 
        personnel in the classroom or in school library media centers, 
        in order to improve student academic achievement and student 
        performance;
            ``(4) acquiring connectivity with wide area networks for 
        purposes of accessing information and educational programming 
        sources, particularly with institutions of higher education and 
        public libraries;
            ``(5) providing educational services for adults and 
        families; and
            ``(6) repairing and maintaining school technology 
        equipment.
    ``(b) Special Rule.--A local educational agency receiving a grant 
under this part shall use at least 30 percent of allocated funds for 
professional development.

``SEC. 2307. LOCAL APPLICATION.

    ``(a) Application.--Each local educational agency desiring 
assistance from a State educational agency under section 2304(a)(2) 
shall submit an application, consistent with the objectives of the 
systemic statewide plan, to the State educational agency at such time, 
in such manner, and accompanied by such information as the State 
educational agency may reasonably require. Such application, at a 
minimum, shall include an updated version of a strategic, long-range 
plan (3 to 5 years) that includes--
            ``(1) a description of how the activities to be carried out 
        by the local educational agency under this part will be based 
        on a review of relevant research and an explanation of why the 
        activities are expected to improve student achievement;
            ``(2) an explanation of how the acquired technologies will 
        be integrated into the curriculum to help the local educational 
        agency improve student academic achievement, student 
        performance, and teaching;
            ``(3) a description of the type of technologies to be 
        acquired, including specific provisions for interoperability 
        among components of such technologies and, to the extent 
        practicable, with existing technologies;
            ``(4) an explanation of how programs will be developed in 
        collaboration with existing adult literacy service providers to 
        maximize the use of such technologies;
            ``(5) a description of how the local educational agency 
        will ensure ongoing, sustained professional development for 
        teachers, administrators, and school library media personnel 
        served by the local educational agency to further the effective 
        use of technology in the classroom or library media center, 
        including a list of those entities that will partner with the 
        local educational agency in providing ongoing sustained 
        professional development;
            ``(6) a description of the supporting resources, such as 
        services, software, and print resources, which will be acquired 
        to ensure successful and effective use of technologies acquired 
        under this part;
            ``(7) the projected cost of technologies to be acquired and 
        related expenses needed to implement the plan;
            ``(8) a description of how the local educational agency 
        will coordinate the technology provided pursuant to this part 
        with other grant funds available for technology from other 
        Federal, State, and local sources;
            ``(9) a description of a process for the ongoing evaluation 
        of how technologies acquired under this part will be integrated 
        into the school curriculum; and will affect student academic 
        achievement and student performance as related to challenging 
        State content standards and State student performance standards 
        in all subjects; and
            ``(10) a description of the evaluation plan that the local 
        educational agency will carry out pursuant to section 2308(a).
    ``(b) Formation of Consortia.--A local educational agency for any 
fiscal year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, intermediate educational units, libraries, or other 
educational entities appropriate to provide local programs. The State 
educational agency may assist in the formation of consortia among local 
educational agencies, providers of educational services for adults and 
families, institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to provide 
services for the teachers and students in a local educational agency at 
the request of such local educational agency.
    ``(c) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance under this 
section has developed a comprehensive education improvement plan, the 
State educational agency may approve such plan, or a component of such 
plan if the State educational agency determines that such approval 
would further the purposes of this part.

``SEC. 2308. ACCOUNTABILITY.

    ``(a) Evaluation Plan.--Each local educational agency receiving 
funds under this part shall establish and include in the agency's 
application submitted under section 2307 an evaluation plan that 
requires evaluation of the agency and the schools served by the agency 
with respect to strong performance objectives and other measures 
concerning--
            ``(1) increased professional development in the effective 
        use of technology in educating students with the goal of 
        improving student academic achievement and student performance;
            ``(2) increased access to technology in the classroom, 
        especially in low-income schools; and
            ``(3) other indicators reflecting increased student 
        academic achievement or student performance.
    ``(b) Report.--Each local educational agency receiving a grant 
under this part shall annually prepare and submit to the State 
educational agency a report regarding the progress of the local 
educational agency and the schools served by the local educational 
agency toward achieving the purposes of this part and meeting the 
performance objectives and measures described in this section.
    ``(c) Sanction.--If after 3 years, the local educational agency 
does not show measurable improvements in all of the areas, the local 
educational agency shall not receive funds for the remaining grant 
years.
    ``(d) Assistance.--The State educational agency shall provide 
technical assistance to the local educational agency to assist them in 
meeting the performance objectives and measures described in this 
section.

``SEC. 2309. NATIONAL EDUCATION TECHNOLOGY PLAN.

    ``(a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall prepare the national 
long-range plan that supports the overall national technology policy. 
The Secretary shall update such plan periodically when appropriate.
    ``(b) Consultation.--In preparing the plan described in subsection 
(a), the Secretary shall consult with other Federal departments or 
agencies, State and local education practitioners, and policymakers, 
including teachers, principals, and superintendents, experts in 
technology and the applications of technology to education, 
representatives of distance learning consortia, representatives of 
telecommunications partnerships receiving assistance under the Star 
Schools Act or the Technology Challenge Fund program, and providers of 
technology services and products.
    ``(c) Submission; Publication.--Upon completion of the plan 
described in subsection (a), the Secretary shall--
            ``(1) submit such plan to the President and to the 
        appropriate committees of Congress; and
            ``(2) publish such plan in a form that is readily 
        accessible to the public, including on the Internet.
    ``(d) Content of the Plan.--The plan described in subsection (a) 
shall describe the following:
            ``(1) Effective use.--The plan shall describe the manner in 
        which the Secretary will encourage the effective use of 
        technology to provide all students the opportunity to achieve 
        challenging State academic content standards and challenging 
        State student performance standards, especially through 
        programs administered by the Department.
            ``(2) Joint activities.--The plan shall describe joint 
        activities in support of the overall national technology policy 
        to be carried out with other Federal departments or agencies, 
        such as the Office of Science and Technology Policy, the 
        National Endowment for the Humanities, the National Endowment 
        for the Arts, the National Institute for Literacy, the National 
        Aeronautics and Space Administration, the National Science 
        Foundation, the Bureau of Indian Affairs, and the Departments 
        of Commerce, Energy, Health and Human Services, and Labor--
                    ``(A) to promote the use of technology in 
                education, training, and lifelong learning, including 
                plans for the educational uses of a national 
                information infrastructure; and
                    ``(B) to ensure that the policies and programs of 
                such departments or agencies facilitate the use of 
                technology for educational purposes, to the extent 
                feasible.
            ``(3) Collaboration.--The plan shall describe the manner in 
        which the Secretary will work with educators, State and local 
        educational agencies, and appropriate representatives of the 
        private sector, including the Universal Service Administrative 
        Company, to facilitate the effective use of technology in 
        education.
            ``(4) Promoting access.--The plan shall describe the manner 
        in which the Secretary will promote--
                    ``(A) higher academic achievement and performance 
                of all students through the integration of technology 
                into the curriculum;
                    ``(B) increased access to the benefits of 
                technology for teaching and learning for schools with a 
                high number or percentage of children from low-income 
                families;
                    ``(C) the use of technology to assist in the 
                implementation of State systemic reform strategies;
                    ``(D) the application of technological advances to 
                use in improving educational opportunities;
                    ``(E) increased access to high quality adult and 
                family education services through the use of technology 
                for instruction and professional development; and
                    ``(F) increased opportunities for the professional 
                development of teachers in the use of new technologies.
            ``(5) Guidelines.--The plan shall describe the manner in 
        which the Secretary will determine, in consultation with 
        appropriate individuals, organizations, industries, and 
        agencies, the feasibility and desirability of establishing 
        guidelines to facilitate an easy exchange of data and effective 
        use of technology in improving educational opportunities.
            ``(6) Exchange.--The plan shall describe the manner in 
        which the Secretary will promote the exchange of information 
        among States, local educational agencies, schools, consortia, 
        and other entities concerning the effective use of technology 
        in improving educational opportunities.
            ``(7) Goals.--The plan shall describe the Secretary's long-
        range measurable goals and objectives relating to the purposes 
        of this part.

``SEC. 2310. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part $1,000,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 6 succeeding fiscal years.
    ``(b) Limitation.--Not more than 5 percent of the funds made 
available to a recipient under this part for any fiscal year may be 
used by such recipient for administrative costs or technical 
assistance.''.

SEC. 202. TEACHER MOBILITY.

    (a) Short Title.--This section may be cited as the ``Teacher 
Mobility Act''.
    (b) Portability of Teacher Pensions and Credentials.--Title II of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6601 et 
seq.), as amended by section 201, is further amended by adding at the 
end the following:

       ``PART D--PORTABILITY OF TEACHER PENSIONS AND CREDENTIALS

``SEC. 2401. DEFINITION.

    ``In this part, the term `pension' means a pension provided under 
an employee pension benefit plan, as defined in section 3(2) of the 
Employee Retirement Income Security Act of 1974.

``SEC. 2402. NATIONAL PANEL ON PORTABILITY OF TEACHER PENSIONS AND 
              CREDENTIALS.

    ``(a) Establishment.--There is established a panel to be known as 
the National Panel on Portability of Teacher Pensions and Credentials 
(referred to in this section as the `panel').
    ``(b) Membership.--The panel shall be composed of 9 members 
appointed by the Secretary. The Secretary shall appoint the members 
from among practitioners and experts with experience relating to 
teacher pensions and credentials, such as pension managers, teachers, 
members of teacher certification or licensing bodies, faculty of 
institutions of higher education that prepare teachers, and State 
policymakers with such experience.
    ``(c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the panel. Any vacancy in the panel shall not affect 
the powers of the panel, but shall be filled in the same manner as the 
original appointment.
    ``(d) Duties.--
            ``(1) Study.--The panel shall study various options for 
        increasing the reciprocity of recognition of teacher 
        credentials, and the portability of teacher pensions, between 
        States.
            ``(2) Report.--Not later than 1 year after the date on 
        which all members of the panel have been appointed, the panel 
        shall submit to the Secretary and to the appropriate committees 
        of Congress a report containing the results of the study.
    ``(e) Powers.--
            ``(1) Hearings.--The panel may hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the panel considers advisable to carry out the 
        objectives of this section.
            ``(2) Information from federal agencies.--The panel may 
        secure directly from any Federal department or agency such 
        information as the panel considers necessary to carry out the 
        provisions of this section. Upon request of a majority of the 
        members of the panel, the head of such department or agency 
        shall furnish such information to the panel.
            ``(3) Postal services.--The panel may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the Federal Government.
    ``(f) Personnel.--
            ``(1) Travel expenses.--The members of the panel shall not 
        receive compensation for the performance of services for the 
        panel, but shall be allowed travel expenses, including per diem 
        in lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of services for the panel. 
        Notwithstanding section 1342 of title 31, United States Code, 
        the Secretary may accept the voluntary and uncompensated 
        services of members of the panel.
            ``(2) Detail of government employees.--Any Federal 
        Government employee may be detailed to the panel without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
    ``(g) Permanent Committee.--Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the panel.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section such sums as may be necessary for 
        fiscal year 2002.
            ``(2) Availability.--Any sums appropriated under the 
        authorization contained in this subsection shall remain 
        available, without fiscal year limitation, until expended.''.

   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

SEC. 301. BILINGUAL EDUCATION.

    Title III (20 U.S.C. 6511 et seq.) is amended to read as follows:

 ``TITLE III--BILINGUAL EDUCATION, LANGUAGE ENHANCEMENT, AND LANGUAGE 
                          ACQUISITION PROGRAMS

                     ``PART A--BILINGUAL EDUCATION

``SEC. 3001. SHORT TITLE.

    ``This part may be cited as the `Bilingual Education Act'.

``SEC. 3002. PURPOSE.

    ``The purpose of this part is to help ensure that limited English 
proficient students master English and meet the same rigorous standards 
for academic performance as all children and youth are expected to 
meet, including meeting challenging State content standards and 
challenging State student performance standards in academic subjects 
by--
            ``(1) promoting systemic improvement and reform of, and 
        developing accountability systems for, educational programs 
        serving limited English proficient students;
            ``(2) developing bilingual skills and multicultural 
        understanding;
            ``(3) developing the English of limited English proficient 
        children and youth and, to the extent possible, the native 
        language skills of such children and youth;
            ``(4) providing similar assistance to Native Americans with 
        certain modifications relative to the unique status of Native 
        American languages under Federal law;
            ``(5) developing data collection and dissemination, 
        research, materials, and technical assistance that are focused 
        on school improvement for limited English proficient students; 
        and
            ``(6) developing programs that strengthen and improve the 
        professional training of educational personnel who work with 
        limited English proficient students.

``SEC. 3003. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part $300,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
    ``(b) Distribution.--From the sums appropriated under subsection 
(a) for any fiscal year, the Secretary shall reserve not less than 25 
percent of such funds for such year to carry out subpart 3.

``SEC. 3004. NATIVE AMERICAN CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--
            ``(1) In general.--For the purpose of carrying out programs 
        under this part for individuals served by elementary schools, 
        secondary schools, and postsecondary schools operated 
        predominately for Native American (including Alaska Native) 
        children and youth, an Indian tribe, a tribally sanctioned 
        educational authority, a Native Hawaiian or Native American 
        Pacific Islander native language education organization, or an 
        elementary school or secondary school that is operated or 
        funded by the Bureau of Indian Affairs shall be considered to 
        be a local educational agency.
            ``(2) Definitions.--In this section:
                    ``(A) Indian tribe.--The term `Indian tribe' means 
                any Indian tribe, band, nation, or other organized 
                group or community, including any Native village or 
                Regional Corporation or Village Corporation as defined 
                in or established pursuant to the Alaska Native Claims 
                Settlement Act, that is recognized as eligible for the 
                special programs and services provided by the United 
                States to Indians because of their status as Indians.
                    ``(B) Tribally sanctioned educational authority.--
                The term `tribally sanctioned educational authority' 
                means--
                            ``(i) any department or division of 
                        education operating within the administrative 
                        structure of the duly constituted governing 
                        body of an Indian tribe; and
                            ``(ii) any nonprofit institution or 
                        organization that is--
                                    ``(I) chartered by the governing 
                                body of an Indian tribe to operate any 
                                school operated predominately for 
                                Indian children and youth or otherwise 
                                to oversee the delivery of educational 
                                services to members of that tribe; and
                                    ``(II) approved by the Secretary 
                                for the purpose of this section.
    ``(b) Eligible Entity Application.--Notwithstanding any other 
provision of this part, each eligible entity described in subsection 
(a) shall submit any application for assistance under this part 
directly to the Secretary along with timely comments on the need for 
the program proposed in the application.

``SEC. 3005. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED STATES.

    ``For the purpose of carrying out programs under this part in the 
outlying areas, the term `local educational agency' includes public 
institutions or agencies whose mission is the preservation and 
maintenance of native languages.

   ``Subpart 1--Bilingual Education Capacity and Demonstration Grants

``SEC. 3101. FINANCIAL ASSISTANCE FOR BILINGUAL EDUCATION.

    ``The purpose of this subpart is to assist local educational 
agencies, institutions of higher education, and community-based 
organizations, through the grants authorized under sections 3102 and 
3103, to--
            ``(1) develop and enhance their capacity to provide high-
        quality instruction through bilingual education or special 
        alternative instruction programs to children and youth of 
        limited English proficiency; and
            ``(2) help such children and youth--
                    ``(A) develop proficiency in English, and to the 
                extent possible, their native language; and
                    ``(B) meet the same challenging State content 
                standards and challenging State student performance 
                standards as all children and youth are expected to 
                meet under section 1111(b).

``SEC. 3102. PROGRAM ENHANCEMENT PROJECTS.

    ``(a) Purpose.--The purpose of this section is to--
            ``(1) provide grants to eligible entities to provide 
        innovative, locally designed, high quality instruction to 
        children and youth of limited English proficiency;
            ``(2) help children and youth develop proficiency in the 
        English language by expanding or strengthening instructional 
        programs; and
            ``(3) help children and youth attain the standards 
        established under section 1111(b).
    ``(b) Program Authorized.--
            ``(1) Authority.--
                    ``(A) In general.--The Secretary is authorized to 
                award grants to eligible entities having applications 
                approved under section 3104 to enable such entities to 
                carry out activities described in paragraph (2).
                    ``(B) Period.--Each grant awarded under this 
                section shall be awarded for a period of 3 years.
            ``(2) Authorized activities.--
                    ``(A) Mandatory activities.--Grants awarded under 
                this section shall be used for--
                            ``(i) developing, implementing, expanding, 
                        or enhancing comprehensive preschool, 
                        elementary, or secondary education programs for 
                        limited English proficient children and youth, 
                        that are--
                                    ``(I) aligned with State and local 
                                content and student performance 
                                standards, and local school reform 
                                efforts; and
                                    ``(II) coordinated with related 
                                services for children and youth;
                            ``(ii) providing high quality professional 
                        development to classroom teachers, 
                        administrators, and other school or community-
                        based organization personnel to improve the 
                        instruction and assessment of limited English 
                        proficient students; and
                            ``(iii) annually assessing the English 
                        proficiency of all limited English proficient 
                        students served by activities carried out under 
                        this section.
                    ``(B) Permissible activities.--Grants awarded under 
                this section may be used for--
                            ``(i) implementing programs to upgrade the 
                        reading and other academic skills of limited 
                        English proficient students;
                            ``(ii) developing accountability systems to 
                        monitor the academic progress of limited 
                        English proficient and formerly limited English 
                        proficient students;
                            ``(iii) implementing family education 
                        programs and parent outreach and training 
                        activities designed to assist parents to become 
                        active participants in the education of their 
                        children;
                            ``(iv) improving the instructional programs 
                        for limited English proficient students by 
                        identifying, acquiring, and applying effective 
                        curricula, instructional materials (including 
                        materials provided through technology), and 
                        assessments that are all aligned with State and 
                        local standards;
                            ``(v) providing intensified instruction, 
                        including tutorials and academic or career 
                        counseling, for children and youth who are 
                        limited English proficient;
                            ``(vi) adapting best practice models for 
                        meeting the needs of limited English proficient 
                        students;
                            ``(vii) assisting limited English 
                        proficient students with disabilities;
                            ``(viii) implementing applied learning 
                        activities such as service learning to enhance 
                        and support comprehensive elementary and 
                        secondary bilingual education programs; and
                            ``(ix) carrying out such other activities 
                        related to the purpose of this part as the 
                        Secretary may approve.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary may give priority to an entity that--
            ``(1) serves a school district--
                    ``(A) that has a total district enrollment that is 
                less than 10,000 students; or
                    ``(B) with a large percentage or number of limited 
                English proficient students; and
            ``(2) has limited or no experience in serving limited 
        English proficient students.
    ``(d) Eligible Entity.--In this section, the term `eligible entity' 
means--
            ``(1) 1 or more local educational agencies;
            ``(2) 1 or more local educational agencies in collaboration 
        with an institution of higher education, community-based 
        organization, or State educational agency; or
            ``(3) a community-based organization or an institution of 
        higher education that has an application approved by the local 
        educational agency to participate in programs carried out under 
        this subpart by enhancing early childhood education or family 
        education programs or conducting instructional programs that 
        supplement the educational services provided by a local 
        educational agency.

``SEC. 3103. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT GRANTS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to provide financial assistance to schools and local 
        educational agencies for implementing bilingual education 
        programs, in coordination with programs carried out under this 
        title, for children and youth of limited English proficiency;
            ``(2) to assist limited English proficient students to meet 
        the standards established under section 1111(b); and
            ``(3) to improve, reform, and upgrade relevant 
        instructional programs and operations, carried out by schools 
        and local educational agencies, that serve significant 
        percentages of students of limited English proficiency or 
        significant numbers of such students.
    ``(b) Authorized Activities.--
            ``(1) Authority.--The Secretary may award grants to 
        eligible entities having applications approved under section 
        3104 to enable such entities to carry out activities described 
        in paragraphs (2) and (3).
            ``(2) Mandatory activities.--Grants awarded under this 
        section shall be used for--
                    ``(A) improving instructional programs for limited 
                English proficient students by acquiring and upgrading 
                curricula and related instructional materials;
                    ``(B) aligning the activities carried out under 
                this section with State and local school reform 
                efforts;
                    ``(C) providing training, aligned with State and 
                local standards, to school personnel and participating 
                community-based organization personnel to improve the 
                instruction and assessment of limited English 
                proficient students;
                    ``(D) developing and implementing plans, 
                coordinated with plans for programs carried out under 
                title II of the Higher Education Act of 1965 (where 
                applicable), and title II of this Act (where 
                applicable), to recruit teachers trained to serve 
                limited English proficient students;
                    ``(E) implementing culturally and linguistically 
                appropriate family education programs, or parent 
                outreach and training activities, that are designed to 
                assist parents to become active participants in the 
                education of their children;
                    ``(F) coordinating the activities carried out under 
                this section with other programs, such as programs 
                carried out under this title;
                    ``(G) providing services to meet the full range of 
                the educational needs of limited English proficient 
                students;
                    ``(H) annually assessing the English proficiency of 
                all limited English proficient students served by the 
                activities carried out under this section; and
                    ``(I) developing or improving accountability 
                systems to monitor the academic progress of limited 
                English proficient students.
            ``(3) Permissible activities.--Grants awarded under this 
        section may be used for--
                    ``(A) implementing programs to upgrade reading and 
                other academic skills of limited English proficient 
                students;
                    ``(B) developing and using educational technology 
                to improve learning, assessments, and accountability to 
                meet the needs of limited English proficient students;
                    ``(C) implementing scientifically based research 
                programs to meet the needs of limited English 
                proficient students;
                    ``(D) providing tutorials and academic or career 
                counseling for limited English proficient children and 
                youth;
                    ``(E) developing and implementing State and local 
                content and student performance standards for learning 
                English as a second language, as well as for learning 
                other languages;
                    ``(F) developing and implementing programs for 
                limited English proficient students to meet the needs 
                of changing populations of such students;
                    ``(G) implementing policies to ensure that limited 
                English proficient students have access to other 
                education programs (other than programs designed to 
                address limited English proficiency), such as gifted 
                and talented, vocational education, and special 
                education programs;
                    ``(H) assisting limited English proficient students 
                with disabilities;
                    ``(I) developing and implementing programs to help 
                all students become proficient in more than 1 language; 
                and
                    ``(J) carrying out such other activities related to 
                the purpose of this part as the Secretary may approve.
            ``(4) Special rule.--A recipient of a grant under this 
        section, before carrying out activities under this section, 
        shall plan, train personnel, develop curricula, and acquire or 
        develop materials, but shall not use funds made available under 
        this section for planning purposes for more than 90 days. The 
        recipient shall commence carrying out activities under this 
        section not later than 90 days after the date of receipt of the 
        grant.
    ``(c) Availability of Appropriations.--
            ``(1) Reservation of funds for continued payments.--
                    ``(A) Covered grant.--In this paragraph, the term 
                `covered grant' means a grant--
                            ``(i) that was awarded under section 7114 
                        or 7115 (as such sections were in effect on the 
                        day before the date of enactment of the Better 
                        Education for Students and Teachers Act); and
                            ``(ii) for which the grant period has not 
                        ended.
                    ``(B) Reservation.--For any fiscal year that is 
                part of the grant period of a covered grant, the 
                Secretary shall reserve funds for the payments 
                described in subparagraph (C) from the amount 
                appropriated for the fiscal year under section 3003 and 
                made available for carrying out this section.
                    ``(C) Payments.--The Secretary shall continue to 
                make grant payments to each entity that received a 
                covered grant, for the duration of the grant period of 
                the grant, to carry out activities in accordance with 
                the appropriate section described in subparagraph 
                (A)(i).
            ``(2) Availability.--Of the amount appropriated for a 
        fiscal year under section 3003 that is made available for 
        carrying out this section, and that remains after the Secretary 
        reserves funds for payments under paragraph (1)--
                    ``(A) not less than \1/3\ of the remainder shall be 
                used to award grants for activities carried out within 
                an entire school district; and
                    ``(B) not less than \2/3\ of the remainder shall be 
                used to award grants for activities carried out within 
                individual schools.
    ``(d) Eligible Entities.--In this section, the term `eligible 
entity' means--
            ``(1) 1 or more local educational agencies; or
            ``(2) 1 or more local educational agencies, in 
        collaboration with an institution of higher education, 
        community-based organization, or State educational agency.

``SEC. 3104. APPLICATIONS.

    ``(a) In General.--
            ``(1) Secretary.--To receive a grant under this subpart, an 
        eligible entity shall submit an application to the Secretary at 
        such time, in such form, and containing such information as the 
        Secretary may require.
            ``(2) State educational agency.--An eligible entity, with 
        the exception of schools funded by the Bureau of Indian 
        Affairs, shall submit a copy of the application submitted by 
        the entity under this section to the State educational agency.
    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not later 
        than 45 days after receipt of an application under this 
        section, shall review the application and submit the written 
        comments of the agency regarding the application to the 
        Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the State 
                educational agency shall--
                            ``(i) submit to the Secretary written 
                        comments regarding all such applications; and
                            ``(ii) submit to each eligible entity the 
                        comments that pertain to such entity.
                    ``(B) Subject.--For purposes of this subpart, such 
                comments shall address--
                            ``(i) how the activities to be carried out 
                        under the grant will further the academic 
                        achievement and English proficiency of limited 
                        English proficient students served under the 
                        grant; and
                            ``(ii) how the grant application is 
                        consistent with the State plan required under 
                        section 1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making grants under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the 
requirements of participation in the program authorized in section 
3124, particularly such agency's ability to carry out data collection 
efforts and such agency's ability to provide technical assistance to 
local educational agencies not receiving funds under this Act.
    ``(f) Required Documentation.--Such application shall include 
documentation that--
            ``(1) the applicant has the qualified personnel required to 
        develop, administer, and implement the program proposed in the 
        application; and
            ``(2) the leadership personnel of each school participating 
        in the program have been involved in the development and 
        planning of the program in the school.
    ``(g) Contents.--
            ``(1) In general.--An application for a grant under this 
        subpart shall contain the following:
                    ``(A) A description of the need for the proposed 
                program, including--
                            ``(i) data on the number of limited English 
                        proficient students in the school or school 
                        district to be served;
                            ``(ii) information on the characteristics 
                        of such students, including--
                                    ``(I) the native languages of the 
                                students;
                                    ``(II) the proficiency of the 
                                students in English and their native 
                                language;
                                    ``(III) achievement data (current 
                                as of the date of submission of the 
                                application) for the limited English 
                                proficient students in--
                                            ``(aa) reading or language 
                                        arts (in English and in the 
                                        native language, if 
                                        applicable); and
                                            ``(bb) mathematics;
                                    ``(IV) a comparison of that data 
                                for the students with that data for the 
                                English proficient peers of the 
                                students; and
                                    ``(V) the previous schooling 
                                experiences of the students;
                            ``(iii) the professional development needs 
                        of the instructional personnel who will provide 
                        services for the limited English proficient 
                        students under the proposed program; and
                            ``(iv) how the services provided through 
                        the grant will supplement the basic services 
                        provided to limited English proficient 
                        students.
                    ``(B) A description of the program to be 
                implemented and how such program's design--
                            ``(i) relates to the linguistic and 
                        academic needs of the children and youth of 
                        limited English proficiency to be served;
                            ``(ii) will ensure that the services 
                        provided through the program will supplement 
                        the basic services the applicant provides to 
                        limited English proficient students;
                            ``(iii) will ensure that the program is 
                        coordinated with other programs under this Act 
                        and other Acts;
                            ``(iv) involves the parents of the children 
                        and youth of limited English proficiency to be 
                        served;
                            ``(v) ensures accountability in achieving 
                        high academic standards; and
                            ``(vi) promotes coordination of services 
                        for the children and youth of limited English 
                        proficiency to be served and their families.
                    ``(C) A description, if appropriate, of the 
                applicant's collaborative activities with institutions 
                of higher education, community-based organizations, 
                local educational agencies or State educational 
                agencies, private schools, nonprofit organizations, or 
                businesses in carrying out the proposed program.
                    ``(D) An assurance that the applicant will not 
                reduce the level of State and local funds that the 
                applicant expends for bilingual education or special 
                alternative instruction programs if the applicant 
                receives an award under this subpart.
                    ``(E) An assurance that the applicant will employ 
                teachers in the proposed program who, individually or 
                in combination, are proficient in--
                            ``(i) English, with respect to written, as 
                        well as oral, communication skills; and
                            ``(ii) the native language of the majority 
                        of the students that the teachers teach, if 
                        instruction in the program is in the native 
                        language as well as English.
                    ``(F) A budget for the grant funds.
            ``(2) Additional information.--Each application for a grant 
        under section 3103 shall--
                    ``(A) describe--
                            ``(i) current services (as of the date of 
                        submission of the application) the applicant 
                        provides to children and youth of limited 
                        English proficiency;
                            ``(ii) what services children and youth of 
                        limited English proficiency will receive under 
                        the grant that such children or youth will not 
                        otherwise receive;
                            ``(iii) how funds received under this 
                        subpart will be integrated with all other 
                        Federal, State, local, and private resources 
                        that may be used to serve children and youth of 
                        limited English proficiency;
                            ``(iv) specific achievement and school 
                        retention goals for the children and youth to 
                        be served by the proposed program and how 
                        progress toward achieving such goals will be 
                        measured; and
                            ``(v) the current family education programs 
                        (as of the date of submission of the 
                        application) of the eligible entity, if 
                        applicable; and
                    ``(B) provide assurances that--
                            ``(i) the program funded with the grant 
                        will be integrated with the overall educational 
                        program of the students served through the 
                        proposed program; and
                            ``(ii) the application has been developed 
                        in consultation with an advisory council, the 
                        majority of whose members are parents and other 
                        representatives of the children and youth to be 
                        served in such program.
    ``(h) Approval of Applications.--An application for a grant under 
this subpart may be approved only if the Secretary determines that--
            ``(1) the program proposed in the application will use 
        qualified personnel, including personnel who are proficient in 
        the language or languages used for instruction;
            ``(2) in designing the program, the eligible entity has, 
        after consultation with appropriate private school officials--
                    ``(A) taken into account the needs of children in 
                nonprofit private elementary schools and secondary 
                schools; and
                    ``(B) in a manner consistent with the number of 
                such children enrolled in such schools in the area to 
                be served, whose educational needs are of the type and 
                whose language, and grade levels are of a similar type 
                to the needs, language, and grade levels that the 
                program is intended to address, provided for the 
                participation of such children on a basis comparable to 
                the basis on which public school children participate;
            ``(3)(A) student evaluation and assessment procedures in 
        the program are valid, reliable, and fair for limited English 
        proficient students; and
            ``(B) limited English proficient students with disabilities 
        will be identified and served through the program in accordance 
        with the requirements of the Individuals with Disabilities 
        Education Act;
            ``(4) Federal funds made available for the program will be 
        used to supplement the State and local funds that, in the 
        absence of such Federal funds, would be expended for special 
        programs for children of limited English proficient 
        individuals, and in no case to supplant such State and local 
        funds, except that nothing in this paragraph shall be construed 
        to preclude a local educational agency from using funds made 
        available under this subpart--
                    ``(A) for activities carried out under an order of 
                a Federal or State court respecting services to be 
                provided to such children; or
                    ``(B) to carry out a plan approved by the Secretary 
                as adequate under title VI of the Civil Rights Act of 
                1964 with respect to services to be provided to such 
                children;
            ``(5)(A) the assistance provided through the grant will 
        contribute toward building the capacity of the eligible entity 
        to provide a program on a regular basis, similar to the 
        proposed program, that will be of sufficient size, scope, and 
        quality to promise significant improvement in the education of 
        limited English proficient students; and
            ``(B) the eligible entity will have the resources and 
        commitment to continue the program of sufficient size, scope, 
        and quality when assistance under this subpart is reduced or no 
        longer available; and
            ``(6) the eligible entity will use State and national 
        dissemination sources for program design and dissemination of 
        results and products.
    ``(i) Priorities and Special Rules.--
            ``(1) Priority.--In approving applications for grants for 
        programs under this subpart, the Secretary shall give priority 
        to an applicant who--
                    ``(A) experiences a dramatic increase in the number 
                or percentage of limited English proficient students 
                enrolled in the applicant's programs and has limited or 
                no experience in serving limited English proficient 
                students;
                    ``(B) is a local educational agency that serves a 
                school district that has a total district enrollment 
                that is less than 10,000 students;
                    ``(C) demonstrates that the applicant has a proven 
                record of success in helping limited English proficient 
                children and youth learn English and meet high academic 
                standards;
                    ``(D) proposes programs that provide for the 
                development of bilingual proficiency both in English 
                and another language for all participating students; or
                    ``(E) serves a school district with a large number 
                or percentage of limited English proficient students.
            ``(2) Consideration.--In determining whether to approve an 
        application under this subpart, the Secretary shall give 
        consideration to the degree to which the program for which 
        assistance is sought involves the collaborative efforts of 
        institutions of higher education, community-based 
        organizations, the appropriate local educational agency and 
        State educational agency, or businesses.
            ``(3) Due consideration.--In determining whether to approve 
        an application under this subpart, the Secretary shall give due 
        consideration to an application that--
                    ``(A) provides for training for personnel 
                participating in or preparing to participate in the 
                program that will assist such personnel in meeting 
                State and local certification requirements; and
                    ``(B) to the extent possible, describes how credit 
                at an institution of higher education will be awarded 
                for such training.

``SEC. 3105. CAPACITY BUILDING.

    ``Each recipient of a grant under this subpart shall use the grant 
in ways that will build such recipient's capacity to continue to offer 
high-quality bilingual and special alternative education programs and 
services to children and youth of limited English proficiency after 
Federal assistance is reduced or eliminated.

``SEC. 3106. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    ``Programs authorized under this subpart that serve Native American 
children (including Native American Pacific Islander children), and 
children in the Commonwealth of Puerto Rico, notwithstanding any other 
provision of this subpart, may include programs of instruction, teacher 
training, curriculum development, evaluation, and testing designed for 
Native American children and youth learning and studying Native 
American languages and children and youth of limited Spanish 
proficiency, except that 1 outcome of such programs serving Native 
American children shall be increased English proficiency among such 
children.

``SEC. 3107. EVALUATIONS.

    ``(a) Evaluation.--Each recipient of funds under this subpart for a 
program shall annually conduct an evaluation of the program and submit 
to the Secretary a report concerning the evaluation, in the form 
prescribed by the Secretary.
    ``(b) Use of Evaluation.--Such evaluation shall be used by the 
grant recipient--
            ``(1) for program improvement;
            ``(2) to further define the program's goals and objectives; 
        and
            ``(3) to determine program effectiveness.
    ``(c) Evaluation Report Components.--In preparing the evaluation 
reports, the recipient shall--
            ``(1) use the data provided in the application submitted by 
        the recipient under section 3104 as baseline data against which 
        to report academic achievement and gains in English proficiency 
        for students in the program;
            ``(2) disaggregate the results of the evaluation by gender, 
        language groups, and whether the students have disabilities;
            ``(3) include data on the progress of the recipient in 
        achieving the objectives of the program, including data 
        demonstrating the extent to which students served by the 
        program are meeting the State's student performance standards, 
        and including data comparing limited English proficient 
        students with English proficient students with regard to school 
        retention and academic achievement concerning--
                    ``(A) reading and language arts;
                    ``(B) English proficiency;
                    ``(C) mathematics; and
                    ``(D) the native language of the students if the 
                program develops native language proficiency;
            ``(4) include information on the extent that professional 
        development activities carried out through the program have 
        resulted in improved classroom practices and improved student 
        performance;
            ``(5) include a description of how the activities carried 
        out through the program are coordinated and integrated with the 
        other Federal, State, or local programs serving limited English 
        proficient children and youth; and
            ``(6) include such other information as the Secretary may 
        require.

``SEC. 3108. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a local 
educational agency from serving limited English proficient children and 
youth simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

          ``Subpart 2--Research, Evaluation, and Dissemination

``SEC. 3121. AUTHORITY.

    ``(a) In General.--The Secretary is authorized to conduct data 
collection, dissemination, research, and ongoing program evaluation 
activities in accordance with the provisions of this subpart for the 
purpose of improving bilingual education and special alternative 
instruction programs for children and youth of limited English 
proficiency.
    ``(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported through 
competitive grants, contracts and cooperative agreements awarded to 
institutions of higher education, nonprofit organizations, State 
educational agencies, and local educational agencies.
    ``(c) Administration.--The Secretary shall conduct data collection, 
dissemination, and ongoing program evaluation activities authorized by 
this subpart through the Office of Bilingual Education and Minority 
Language Affairs.

``SEC. 3122. RESEARCH.

    ``(a) Administration.--The Secretary shall conduct research 
activities authorized by this subpart through the Office of Educational 
Research and Improvement in coordination and collaboration with the 
Office of Bilingual Education and Minority Language Affairs.
    ``(b) Requirements.--Such research activities--
            ``(1) shall have a practical application to teachers, 
        counselors, paraprofessionals, school administrators, parents, 
        and others involved in improving the education of limited 
        English proficient students and their families;
            ``(2) may include research on effective instructional 
        practices for multilingual classes, and on effective 
        instruction strategies to be used by a teacher or other staff 
        member who does not know the native language of a limited 
        English proficient child or youth in the teacher's or staff 
        member's classroom;
            ``(3) may include establishing (through the National Center 
        for Education Statistics in consultation with experts in 
        bilingual education, second language acquisition, and English-
        as-a-second-language) a common definition of `limited English 
        proficient student' for purposes of national data collection; 
        and
            ``(4) shall be administered by individuals with expertise 
        in bilingual education and the needs of limited English 
        proficient students and their families.
    ``(c) Field-Initiated Research.--
            ``(1) In general.--The Secretary shall reserve not less 
        than 5 percent of the funds made available to carry out this 
        section for field-initiated research conducted by recipients of 
        grants under subpart 1 or this subpart who have received such 
        grants within the previous 5 years. Such research may provide 
        for longitudinal studies of students or teachers into bilingual 
        education, monitoring the education of such students from entry 
        into bilingual education through secondary school completion.
            ``(2) Applications.--An applicant for assistance under this 
        subsection may submit an application for such assistance to the 
        Secretary at the same time as the applicant submits another 
        application under subpart 1 or this subpart. The Secretary 
        shall complete a review of such applications on a timely basis 
        to allow the activities carried out under research and program 
        grants to be coordinated when recipients are awarded 2 or more 
        of such grants.
    ``(d) Consultation.--The Secretary shall consult with agencies and 
organizations that are engaged in bilingual education research and 
practice, or related research, and bilingual education researchers and 
practitioners, to identify areas of study and activities to be funded 
under this section.
    ``(e) Data Collection.--The Secretary shall provide for the 
collection of data on limited English proficient students as part of 
the data systems operated by the Department.

``SEC. 3123. ACADEMIC EXCELLENCE AWARDS.

    ``(a) Authority.--The Secretary may make grants to State 
educational agencies to assist the agencies in recognizing local 
educational agencies and other public and nonprofit entities whose 
programs have--
            ``(1) demonstrated significant progress in assisting 
        limited English proficient students to learn English according 
        to age appropriate and developmentally appropriate standards; 
        and
            ``(2) demonstrated significant progress in assisting 
        limited English proficient children and youth to meet, 
        according to age appropriate and developmentally appropriate 
        standards, the same challenging State content standards as all 
        children and youth are expected to meet.
    ``(b) Applications.--A State educational agency desiring a grant 
under this section shall include an application for such grant in the 
application submitted by the agency under section 3124(e).

``SEC. 3124. STATE GRANT PROGRAM.

    ``(a) State Grant Program.--The Secretary is authorized to make an 
award to a State educational agency that demonstrates, to the 
satisfaction of the Secretary, that such agency, through such agency's 
programs and other Federal education programs, effectively provides for 
the education of children and youth of limited English proficiency 
within the State.
    ``(b) Payments.--The amount paid to a State educational agency 
under subsection (a) shall not exceed 5 percent of the total amount 
awarded to local educational agencies and entities within the State 
under subpart 1 for the previous fiscal year, except that in no case 
shall the amount paid by the Secretary to any State educational agency 
under this subsection for any fiscal year be less than $200,000.
    ``(c) Use of Funds.--
            ``(1) In general.--A State educational agency shall use 
        funds awarded under this section to--
                    ``(A) assist local educational agencies in the 
                State with activities that--
                            ``(i) consist of program design, capacity 
                        building, assessment of student performance, 
                        program evaluation, and development of data 
                        collection and accountability systems for 
                        limited English proficient students; and
                            ``(ii) are aligned with State reform 
                        efforts; and
                    ``(B) collect data on the State's limited English 
                proficient populations and document the services 
                available to all such populations.
            ``(2) Training.--The State educational agency may also use 
        funds provided under this section for the training of State 
        educational agency personnel in educational issues affecting 
        limited English proficient children and youth.
            ``(3) Special rule.--Recipients of funds under this section 
        shall not restrict the provision of services under this section 
        to federally funded programs.
    ``(d) State Consultation.--A State educational agency receiving 
funds under this section shall consult with recipients of grants under 
this subpart and other individuals or organizations involved in the 
development or operation of programs serving limited English proficient 
children or youth to ensure that such funds are used in a manner 
consistent with the requirements of this subpart.
    ``(e) Applications.--A State educational agency desiring to receive 
funds under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information and 
assurances as the Secretary may require.
    ``(f) Supplement Not Supplant.--Federal funds made available under 
this section for any fiscal year shall be used by the State educational 
agency to supplement and, to the extent practical, to increase the 
State funds that, in the absence of such Federal funds, would be made 
available for the purposes described in this section, and in no case to 
supplant such State funds.
    ``(g) Report to the Secretary.--A State educational agency 
receiving an award under this section shall provide for the annual 
submission of a summary report to the Secretary describing such State's 
use of the funds made available through the award.

``SEC. 3125. NATIONAL CLEARINGHOUSE FOR BILINGUAL EDUCATION.

    ``(a) Establishment.--The Secretary shall establish and support the 
operation of a National Clearinghouse for Bilingual Education, which 
shall collect, analyze, synthesize, and disseminate information about 
bilingual education and related programs.
    ``(b) Functions.--The National Clearinghouse for Bilingual 
Education shall--
            ``(1) be administered as an adjunct clearinghouse of the 
        Educational Resources Information Center Clearinghouses system 
        of clearinghouses supported by the Office of Educational 
        Research and Improvement;
            ``(2) coordinate activities with Federal data and 
        information clearinghouses and entities operating Federal 
        dissemination networks and systems;
            ``(3) develop a database management and monitoring system 
        for improving the operation and effectiveness of federally 
        funded bilingual education programs;
            ``(4) develop, maintain, and disseminate a listing, by 
        geographical area, of education professionals, parents, 
        teachers, administrators, community members, and others, who 
        are native speakers of languages other than English, for use as 
        a resource by local educational agencies and schools in the 
        development and implementation of bilingual education programs; 
        and
            ``(5) publish, on an annual basis, a list of grant 
        recipients under this subpart.

``SEC. 3126. INSTRUCTIONAL MATERIALS DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants for the 
development, publication, and dissemination of high-quality 
instructional materials--
            ``(1) in Native American languages (including Native 
        Hawaiian languages and the language of Native American Pacific 
        Islanders), and the language of natives of the outlying areas, 
        for which instructional materials are not readily available; 
        and
            ``(2) in other low-incidence languages in the United States 
        for which instructional materials are not readily available.
    ``(b) Priority.--In making the grants, the Secretary shall give 
priority to applicants for the grants who propose--
            ``(1) to develop instructional materials in languages 
        indigenous to the United States or the outlying areas; and
            ``(2) to develop and evaluate materials, in collaboration 
        with entities carrying out activities assisted under subpart 1 
        and this subpart, that are consistent with voluntary national 
        content standards and challenging State content standards.

                 ``Subpart 3--Professional Development

``SEC. 3131. PURPOSE.

    ``The purpose of this subpart is to assist in preparing educators 
to improve the educational services for limited English proficient 
children and youth by supporting professional development programs and 
the dissemination of information on appropriate instructional practices 
for such children and youth.

``SEC. 3132. TRAINING FOR ALL TEACHERS PROGRAM.

    ``(a) Purpose.--The purpose of this section is to provide for the 
incorporation of courses and curricula on appropriate and effective 
instructional and assessment methodologies, strategies, and resources 
specific to limited English proficient students into preservice and 
inservice professional development programs for individuals who are 
teachers, pupil services personnel, administrators, or other education 
personnel in order to prepare such individuals to provide effective 
services to limited English proficient students.
    ``(b) Authorization.--
            ``(1) Authority.--The Secretary may award grants under this 
        section to--
                    ``(A) local educational agencies; or
                    ``(B) 1 or more local educational agencies in a 
                consortium with 1 or more State educational agencies, 
                institutions of higher education, or nonprofit 
                organizations.
            ``(2) Duration.--Each grant awarded under this section 
        shall be awarded for a period of not more than 5 years.
    ``(c) Authorized Activities.--
            ``(1) Professional development activities.--Grants awarded 
        under this section shall be used to conduct high-quality, long-
        term professional development activities relating to meeting 
        the needs of limited English proficient students, which may 
        include--
                    ``(A) developing and implementing induction 
                programs for new teachers, including programs that 
                provide mentoring and coaching by trained teachers, and 
                team teaching with experienced teachers;
                    ``(B) implementing school-based collaborative 
                efforts among teachers to improve instruction in core 
                academic areas, including reading, for students of 
                limited English proficiency;
                    ``(C) coordinating activities with entities 
                carrying out other programs, such as other programs 
                carried out under this title, title II, and the Head 
                Start Act;
                    ``(D) implementing programs that support effective 
                teacher use of education technologies to improve 
                instruction and assessment;
                    ``(E) establishing and maintaining local 
                professional networks;
                    ``(F) developing curricular materials and 
                assessments for teachers that are aligned with State 
                and local standards and the needs of the limited 
                English proficient students to be served; and
                    ``(G) carrying out such other activities as are 
                consistent with the purpose of this section.
            ``(2) Permissible activities.--Grants awarded under this 
        section may be used to conduct activities that include the 
        development of training programs in collaboration with entities 
        carrying out other programs, such as other programs authorized 
        under this title, title II, and the Head Start Act.

``SEC. 3133. BILINGUAL EDUCATION TEACHERS AND PERSONNEL GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide for--
            ``(1) preservice and inservice professional development for 
        bilingual education teachers, administrators, pupil services 
        personnel, and other educational personnel who are either 
        involved in, or preparing to be involved in, the provision of 
        educational services for children and youth of limited English 
        proficiency; and
            ``(2) national professional development institutes that 
        assist schools or departments of education in institutions of 
        higher education to improve the quality of professional 
        development programs for personnel serving, preparing to serve, 
        or who may serve, children and youth of limited English 
        proficiency.
    ``(b) Program Authorized.--
            ``(1) Grants to institutions of higher education.--The 
        Secretary is authorized to award grants for a period of not 
        more than 5 years to institutions of higher education, in 
        consortia with State educational agencies or local educational 
        agencies, to achieve the purpose of this section.
            ``(2) Grants to state and local educational agencies.--The 
        Secretary is authorized to award grants for a period of not 
        more than 5 years to State educational agencies and local 
        educational agencies, for inservice professional development 
        programs.
    ``(c) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education, in 
consortia with State educational agencies or local educational 
agencies, that offer degree programs that prepare new bilingual 
education teachers for teaching in order to increase the availability 
of teachers to provide high-quality education to limited English 
proficient students.

``SEC. 3134. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

    ``(a) Purpose.--The purpose of this section is--
            ``(1) to upgrade the qualifications and skills of 
        noncertified educational personnel, especially educational 
        paraprofessionals, to enable the personnel to meet high 
        professional standards, including standards for certification 
        and licensure as bilingual education teachers or for other 
        types of educational personnel who serve limited English 
        proficient students, through collaborative training programs 
        operated by institutions of higher education and State 
        educational agencies and local educational agencies; and
            ``(2) to help recruit and train secondary school students 
        as bilingual education teachers and other types of educational 
        personnel to serve limited English proficient students.
    ``(b) Authorization.--
            ``(1) In general.--The Secretary is authorized to award 
        grants for bilingual education career ladder programs to 
        institutions of higher education, in consortia with State 
        educational agencies or local educational agencies, which 
        consortia may include community-based organizations or 
        professional education organizations.
            ``(2) Duration.--Each grant awarded under this section 
        shall be awarded for a period of not more than 5 years.
    ``(c) Permissible Activities.--Grants awarded under this section 
may be used--
            ``(1) for the development of bilingual education career 
        ladder program curricula appropriate to the needs of the 
        consortium participants involved;
            ``(2) to provide assistance for stipends and costs related 
        to tuition, fees, and books for enrolling in courses required 
        to complete the degree, and certification or licensing 
        requirements for bilingual education teachers; and
            ``(3) for programs to introduce secondary school students 
        to careers in bilingual education teaching that are coordinated 
        with other activities assisted under this section.
    ``(d) Special Consideration.--In awarding the grants, the Secretary 
shall give special consideration to an applicant proposing a program 
that provides for--
            ``(1) participant completion of teacher education programs 
        for a baccalaureate or master's degree, and certification 
        requirements, which programs may include effective employment 
        placement activities;
            ``(2) development of teacher proficiency in English as a 
        second language, including developing proficiency in the 
        instructional use of English and, as appropriate, a second 
        language in classroom contexts;
            ``(3) coordination with the Federal TRIO programs under 
        chapter 1 of subpart 2 of part A of title IV of the Higher 
        Education Act of 1965, programs under title I of the National 
        and Community Service Act of 1990, and other programs for the 
        recruitment and retention of bilingual students in secondary 
        and postsecondary programs to train the students to become 
        bilingual educators; and
            ``(4) the applicant's contribution of additional student 
        financial aid to participating students.

``SEC. 3135. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.

    ``(a) Authorization.--
            ``(1) In general.--The Secretary may award fellowships for 
        master's, doctoral, and post-doctoral study related to 
        instruction of children and youth of limited English 
        proficiency in such areas as teacher training, program 
        administration, research and evaluation, and curriculum 
        development, and for the support of dissertation research 
        related to such study.
            ``(2) Information.--The Secretary shall include information 
        on the operation of, and the number of fellowships awarded 
        under, the fellowship program in the evaluation required under 
        section 3138.
    ``(b) Fellowship Requirements.--
            ``(1) In general.--Any person receiving a fellowship under 
        this section shall agree to--
                    ``(A) work in an activity related to the program or 
                in an activity such as an activity authorized under 
                this part, including work as a bilingual education 
                teacher, for a period of time equivalent to the period 
                of time during which such person receives assistance 
                under this section; or
                    ``(B) repay such assistance.
            ``(2) Regulations.--The Secretary shall establish in 
        regulations such terms and conditions for such agreement as the 
        Secretary determines to be reasonable and necessary and may 
        waive the requirement of paragraph (1) in extraordinary 
        circumstances.
    ``(c) Priority.--In awarding fellowships under this section the 
Secretary may give priority to institutions of higher education that 
demonstrate experience in assisting fellowship recipients to find 
employment in the field of bilingual education.

``SEC. 3136. APPLICATION.

    ``(a) In General.--
            ``(1) Secretary.--To receive an award under this subpart, 
        an eligible entity shall submit an application to the Secretary 
        at such time, in such form, and containing such information as 
        the Secretary may require.
            ``(2) Consultation and assessment.--Each such application 
        shall contain a description of how the applicant has consulted 
        with, and assessed the needs of, public and private schools 
        serving children and youth of limited English proficiency to 
        determine such schools' need for, and the design of, the 
        program for which funds are sought.
            ``(3) Special rule.--
                    ``(A) Training practicum.--An eligible entity who 
                proposes to conduct a master's- or doctoral-level 
                program with funds received under this subpart shall 
                submit an application under this section that contains 
                an assurance that such program will include, as a part 
                of the program, a training practicum in a local school 
                program serving children and youth of limited English 
                proficiency.
                    ``(B) Waiver.--A recipient of a grant under this 
                subpart for a program may waive the requirement that a 
                participant in the program participate in the training 
                practicum, for a degree candidate with significant 
                experience in a local school program serving children 
                and youth of limited English proficiency.
            ``(4) State educational agency.--An eligible entity that 
        submits an application under this section, with the exception 
        of a school funded by the Bureau of Indian Affairs, shall 
        submit a copy of the application to the appropriate State 
        educational agency.
    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not later 
        than 45 days after receipt of such application, shall review 
        the application and transmit such application to the Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the State 
                educational agency shall--
                            ``(i) submit to the Secretary written 
                        comments regarding all such applications; and
                            ``(ii) submit to each eligible entity the 
                        comments that pertain to such entity.
                    ``(B) Subject.--For purposes of this subpart, 
                comments shall address--
                            ``(i) how the activities to be carried out 
                        under the award will further the academic 
                        achievement and English proficiency of limited 
                        English proficient students served under the 
                        award; and
                            ``(ii) how the application is consistent 
                        with the State plan required under section 
                        1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making awards under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the 
requirements of participation in the program authorized in section 
3124, particularly such agency's ability to carry out data collection 
efforts, and such agency's ability to provide technical assistance to 
local educational agencies not receiving funds under this Act.
    ``(f) Special Rule.--
            ``(1) Outreach and technical assistance.--The Secretary 
        shall provide for outreach and technical assistance to 
        institutions of higher education eligible for assistance under 
        title III of the Higher Education Act of 1965 and institutions 
        of higher education that are operated or funded by the Bureau 
        of Indian Affairs to facilitate the participation of such 
        institutions in activities under this subpart.
            ``(2) Distribution rule.--In making awards under this 
        subpart, the Secretary, consistent with subsection (d), shall 
        ensure adequate representation of Hispanic-serving institutions 
        that demonstrate competence and experience concerning the 
        programs and activities authorized under this subpart and are 
        otherwise qualified.

``SEC. 3137. STIPENDS.

    ``The Secretary shall provide, for persons participating in 
training programs under this subpart, for the payment of such stipends 
(including allowances for subsistence and other expenses for such 
persons and their dependents), as the Secretary determines to be 
appropriate.

``SEC. 3138. PROGRAM EVALUATIONS.

    ``Each recipient of funds under this subpart for a program shall 
annually conduct an evaluation of the program and submit to the 
Secretary a report containing the evaluation. Such report shall include 
information on--
            ``(1) the number of participants served through the 
        program, the number of participants who completed program 
        requirements, and the number of participants who took positions 
        in an instructional setting with limited English proficient 
        students;
            ``(2) the effectiveness of the program in imparting the 
        professional skills necessary for participants to achieve the 
        objectives of the program; and
            ``(3) the teaching effectiveness of graduates of the 
        program or other participants who have completed the program.

``SEC. 3139. USE OF FUNDS FOR SECOND LANGUAGE COMPETENCE.

    ``Awards under this subpart may be used to develop a program 
participant's competence in a second language for use in instructional 
programs.

             ``PART B--FOREIGN LANGUAGE ASSISTANCE PROGRAM

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Foreign Language Assistance Act of 
1994'.

``SEC. 3202. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
            ``(1) In general.--The Secretary shall make grants, on a 
        competitive basis, to State educational agencies or local 
        educational agencies to pay the Federal share of the cost of 
        innovative model programs providing for the establishment, 
        improvement or expansion of foreign language study for 
        elementary school and secondary school students.
            ``(2) Duration.--Each grant under paragraph (1) shall be 
        awarded for a period of 3 years.
    ``(b) Requirements.--
            ``(1) Grants to state educational agencies.--In awarding a 
        grant under subsection (a) to a State educational agency, the 
        Secretary shall support programs that promote systemic 
        approaches to improving foreign language learning in the State.
            ``(2) Grants to local educational agencies.--In awarding a 
        grant under subsection (a) to a local educational agency, the 
        Secretary shall support programs that--
                    ``(A) show the promise of being continued beyond 
                the grant period;
                    ``(B) demonstrate approaches that can be 
                disseminated and duplicated in other local educational 
                agencies; and
                    ``(C) may include a professional development 
                component.
    ``(c) Federal Share.--
            ``(1) In general.--The Federal share for each fiscal year 
        shall be 50 percent.
            ``(2) Waiver.--The Secretary may waive the requirement of 
        paragraph (1) for any local educational agency which the 
        Secretary determines does not have adequate resources to pay 
        the non-Federal share of the cost of the activities assisted 
        under this part.
            ``(3) Special rule.--Not less than \3/4\ of the funds 
        appropriated under section 3205 shall be used for the expansion 
        of foreign language learning in the elementary grades.
            ``(4) Reservation.--The Secretary may reserve not more than 
        5 percent of funds appropriated under section 3205 to evaluate 
        the efficacy of programs under this part.

``SEC. 3203. APPLICATIONS.

    ``(a) In General.--Any State educational agency or local 
educational agency desiring a grant under this part shall submit an 
application to the Secretary at such time, in such form, and containing 
such information and assurances as the Secretary may require.
    ``(b) Special Consideration.--The Secretary shall give special 
consideration to applications describing programs that--
            ``(1) include intensive summer foreign language programs 
        for professional development;
            ``(2) link non-native English speakers in the community 
        with the schools in order to promote two-way language learning;
            ``(3) promote the sequential study of a foreign language 
        for students, beginning in elementary schools;
            ``(4) make effective use of technology, such as computer-
        assisted instruction, language laboratories, or distance 
        learning, to promote foreign language study;
            ``(5) promote innovative activities such as foreign 
        language immersion, partial foreign language immersion, or 
        content-based instruction; and
            ``(6) are carried out through a consortium comprised of the 
        agency receiving the grant and an elementary school or 
        secondary school.

``SEC. 3204. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

    ``(a) Incentive Payments.--From amounts appropriated under section 
3205 the Secretary shall make an incentive payment for each fiscal year 
to each public elementary school that provides to students attending 
such school a program designed to lead to communicative competency in a 
foreign language.
    ``(b) Amount.--The Secretary shall determine the amount of the 
incentive payment under subsection (a) for each public elementary 
school for each fiscal year on the basis of the number of students 
participating in a program described in such subsection at such school 
for such year compared to the total number of such students at all such 
schools in the United States for such year.
    ``(c) Requirement.--The Secretary shall consider a program to be 
designed to lead to communicative competency in a foreign language if 
such program is comparable to a program that provides not less than 45 
minutes of instruction in a foreign language not less than 4 days per 
week throughout an academic year.

``SEC. 3205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $35,000,000 for the 
fiscal year 2002, and such sums as may be necessary for each of the 6 
succeeding fiscal years, to carry out this part, of which not more than 
$20,000,000 may be used in each fiscal year to carry out section 3204.

            ``PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

``SEC. 3301. PURPOSE.

    ``(a) Findings.--The Congress finds that--
            ``(1) the education of our Nation's children and youth is 1 
        of the most sacred government responsibilities;
            ``(2) local educational agencies have struggled to fund 
        adequately education services;
            ``(3) in the case of Plyler v. Doe, 457 U.S. 202 (1982), 
        the Supreme Court held that States have a responsibility under 
        the Equal Protection Clause of the Constitution to educate all 
        children, regardless of immigration status; and
            ``(4) immigration policy is solely a responsibility of the 
        Federal Government.
    ``(b) Purpose.--The purpose of this part is to assist eligible 
local educational agencies that experience unexpectedly large increases 
in their student population due to immigration to--
            ``(1) provide high-quality instruction to immigrant 
        children and youth; and
            ``(2) help such children and youth--
                    ``(A) with their transition into American society; 
                and
                    ``(B) meet the same challenging State performance 
                standards expected of all children and youth.

``SEC. 3302. STATE ADMINISTRATIVE COSTS.

    ``For any fiscal year, a State educational agency may reserve not 
more than 1.5 percent (2 percent if the State educational agency 
distributes funds received under this part to local educational 
agencies on a competitive basis) of the amount allocated to such agency 
under section 3304 to pay the costs of performing such agency's 
administrative functions under this part.

``SEC. 3303. WITHHOLDING.

    ``Whenever the Secretary, after providing reasonable notice and 
opportunity for a hearing to any State educational agency, finds that 
there is a failure to meet the requirement of any provision of this 
part, the Secretary shall notify that agency that further payments will 
not be made to the agency under this part, or in the discretion of the 
Secretary, that the State educational agency shall not make further 
payments under this part to specified local educational agencies whose 
actions cause or are involved in such failure until the Secretary is 
satisfied that there is no longer any such failure to comply. Until the 
Secretary is so satisfied, no further payments shall be made to the 
State educational agency under this part, or payments by the State 
educational agency under this part shall be limited to local 
educational agencies whose actions did not cause or were not involved 
in the failure, as the case may be.

``SEC. 3304. STATE ALLOCATIONS.

    ``(a) Payments.--The Secretary shall, in accordance with the 
provisions of this section, make payments to State educational agencies 
for each of the fiscal years 2002 through 2008 for the purpose set 
forth in section 3301.
    ``(b) Allocations.--
            ``(1) In general.--Except as provided in subsections (c) 
        and (d), of the amount appropriated for each fiscal year for 
        this part, each State participating in the program assisted 
        under this part shall receive an allocation equal to the 
        proportion of such State's number of immigrant children and 
        youth who are enrolled in public elementary schools or 
        secondary schools under the jurisdiction of each local 
        educational agency described in paragraph (2) within such 
        State, and in nonpublic elementary schools or secondary schools 
        within the district served by each such local educational 
        agency, relative to the total number of immigrant children and 
        youth so enrolled in all the States participating in the 
        program assisted under this part.
            ``(2) Eligible local educational agencies.--The local 
        educational agencies referred to in paragraph (1) are those 
        local educational agencies in which the sum of the number of 
        immigrant children and youth who are enrolled in public 
        elementary schools or secondary schools under the jurisdiction 
        of such agencies, and in nonpublic elementary schools or 
        secondary schools within the districts served by such agencies, 
        during the fiscal year for which the payments are to be made 
        under this part, is equal to--
                    ``(A) at least 500; or
                    ``(B) at least 3 percent of the total number of 
                students enrolled in such public or nonpublic schools 
                during such fiscal year,
        whichever is less.
    ``(c) Determinations of Number of Children and Youth.--
            ``(1) In general.--Determinations by the Secretary under 
        this section for any period with respect to the number of 
        immigrant children and youth shall be made on the basis of data 
        or estimates provided to the Secretary by each State 
        educational agency in accordance with criteria established by 
        the Secretary, unless the Secretary determines, after notice 
        and opportunity for a hearing to the affected State educational 
        agency, that such data or estimates are clearly erroneous.
            ``(2) Special rule.--No such determination with respect to 
        the number of immigrant children and youth shall operate 
        because of an underestimate or overestimate to deprive any 
        State educational agency of the allocation under this section 
        that such State would otherwise have received had such 
        determination been made on the basis of accurate data.
    ``(d) Reallocation.--Whenever the Secretary determines that any 
amount of a payment made to a State under this part for a fiscal year 
will not be used by such State for carrying out the purpose for which 
the payment was made, the Secretary shall make such amount available 
for carrying out such purpose to 1 or more other States to the extent 
the Secretary determines that such other States will be able to use 
such additional amount for carrying out such purpose. Any amount made 
available to a State from any appropriation for a fiscal year in 
accordance with the preceding sentence shall, for purposes of this 
part, be regarded as part of such State's payment (as determined under 
subsection (b)) for such year, but shall remain available until the end 
of the succeeding fiscal year.
    ``(e) Reservation of Funds.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part, if the amount appropriated to carry out this part 
        exceeds $50,000,000 for a fiscal year, a State educational 
        agency may reserve not more than 20 percent of such agency's 
        payment under this part for such year to award grants, on a 
        competitive basis, to local educational agencies within the 
        State as follows:
                    ``(A) Agencies with immigrant children and youth.--
                At least \1/2\ of such grants shall be made available 
                to eligible local educational agencies (as described in 
                subsection (b)(2)) within the State with the highest 
                numbers and percentages of immigrant children and 
                youth.
                    ``(B) Agencies with a sudden influx of children and 
                youth.--Funds reserved under this paragraph and not 
                made available under subparagraph (A) may be 
                distributed to local educational agencies within the 
                State experiencing a sudden influx of immigrant 
                children and youth which are otherwise not eligible for 
                assistance under this part.
            ``(2) Use of grant funds.--Each local educational agency 
        receiving a grant under paragraph (1) shall use such grant 
        funds to carry out the activities described in section 3307.
            ``(3) Information.--Local educational agencies with the 
        highest number of immigrant children and youth receiving funds 
        under paragraph (1) may make information available on serving 
        immigrant children and youth to local educational agencies in 
        the State with sparse numbers of such children.

``SEC. 3305. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this part for any fiscal year unless such agency submits 
an application to the Secretary at such time, in such manner, and 
containing or accompanied by such information, as the Secretary may 
reasonably require. Each such application shall--
            ``(1) provide that the educational programs, services, and 
        activities for which payments under this part are made will be 
        administered by or under the supervision of the agency;
            ``(2) provide assurances that payments under this part will 
        be used for purposes set forth in sections 3301 and 3307, 
        including a description of how local educational agencies 
        receiving funds under this part will use such funds to meet 
        such purposes and will coordinate with other programs assisted 
        under this Act, and other Acts as appropriate;
            ``(3) provide an assurance that local educational agencies 
        receiving funds under this part will coordinate the use of such 
        funds with programs assisted under part A or title I;
            ``(4) provide assurances that such payments, with the 
        exception of payments reserved under section 3304(e), will be 
        distributed among local educational agencies within that State 
        on the basis of the number of immigrant children and youth 
        counted with respect to each such local educational agency 
        under section 3304(b)(1);
            ``(5) provide assurances that the State educational agency 
        will not finally disapprove in whole or in part any application 
        for funds received under this part without first affording the 
        local educational agency submitting an application for such 
        funds reasonable notice and opportunity for a hearing;
            ``(6) provide for making such reports as the Secretary may 
        reasonably require to perform the Secretary's functions under 
        this part;
            ``(7) provide assurances--
                    ``(A) that to the extent consistent with the number 
                of immigrant children and youth enrolled in the 
                nonpublic elementary schools or secondary schools 
                within the district served by a local educational 
                agency, such agency, after consultation with 
                appropriate officials of such schools, shall provide 
                for the benefit of such children and youth secular, 
                neutral, and nonideological services, materials, and 
                equipment necessary for the education of such children 
                and youth;
                    ``(B) that the control of funds provided under this 
                part to any materials, equipment, and property 
                repaired, remodeled, or constructed with those funds 
                shall be in a public agency for the uses and purpose 
                provided in this part, and a public agency shall 
                administer such funds and property; and
                    ``(C) that the provision of services pursuant to 
                this paragraph shall be provided by employees of a 
                public agency or through contract by such public agency 
                with a person, association, agency, or corporation who 
                or which, in the provision of such services, is 
                independent of such nonpublic elementary school or 
                secondary school and of any religious organization, and 
                such employment or contract shall be under the control 
                and supervision of such public agency, and the funds 
                provided under this paragraph shall not be commingled 
                with State or local funds;
            ``(8) provide that funds reserved under section 3304(e) be 
        awarded on a competitive basis based on merit and need in 
        accordance with such section; and
            ``(9) provide an assurance that State educational agencies 
        and local educational agencies receiving funds under this part 
        will comply with the requirements of section 1120(b).
    ``(b) Application Review.--
            ``(1) In general.--The Secretary shall review all 
        applications submitted pursuant to this section by State 
        educational agencies.
            ``(2) Approval.--The Secretary shall approve any 
        application submitted by a State educational agency that meets 
        the requirements of this section.
            ``(3) Disapproval.--The Secretary shall disapprove any 
        application submitted by a State educational agency which does 
        not meet the requirements of this section, but shall not 
        finally disapprove an application except after providing 
        reasonable notice, technical assistance, and an opportunity for 
        a hearing to the State.

``SEC. 3306. ADMINISTRATIVE PROVISIONS.

    ``(a) Notification of Amount.--The Secretary, not later than June 1 
of each year, shall notify each State educational agency that has an 
application approved under section 3305 of the amount of such agency's 
allocation under section 3304 for the succeeding year.
    ``(b) Services to Children Enrolled in Nonpublic Schools.--If by 
reason of any provision of law a local educational agency is prohibited 
from providing educational services for children enrolled in nonpublic 
elementary schools and secondary schools, as required by section 
3305(a)(7), or if the Secretary determines that a local educational 
agency has substantially failed or is unwilling to provide for the 
participation on an equitable basis of children enrolled in such 
schools, the Secretary may waive such requirement and shall arrange for 
the provision of services, subject to the requirements of this part, to 
such children. Such waivers shall be subject to consultation, 
withholding, notice, and judicial review requirements in accordance 
with the provisions of title I.

``SEC. 3307. USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this part shall be used to 
pay for enhanced instructional opportunities for immigrant children and 
youth, which may include--
            ``(1) family literacy, parent outreach, and training 
        activities designed to assist parents to become active 
        participants in the education of their children;
            ``(2) salaries of personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to immigrant children and youth;
            ``(3) tutorials, mentoring, and academic or career 
        counseling for immigrant children and youth;
            ``(4) identification and acquisition of curricular 
        materials, educational software, and technologies to be used in 
        the program;
            ``(5) basic instructional services which are directly 
        attributable to the presence in the school district of 
        immigrant children, including the costs of providing additional 
        classroom supplies, overhead costs, costs of construction, 
        acquisition or rental of space, costs of transportation, or 
        such other costs as are directly attributable to such 
        additional basic instructional services; and
            ``(6) such other activities, related to the purpose of this 
        part, as the Secretary may authorize.
    ``(b) Consortia.--A local educational agency that receives a grant 
under this part may collaborate or form a consortium with 1 or more 
local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out the program described in an 
application approved under this part.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this part may, with the approval of the Secretary, make a 
subgrant to, or enter into a contract with, an institution of higher 
education, a nonprofit organization, or a consortium of such entities 
to carry out a program described in an application approved under this 
part, including a program to serve out-of-school youth.
    ``(d) Construction.--Nothing in this part shall be construed to 
prohibit a local educational agency from serving immigrant children 
simultaneously with students with similar educational needs, in the 
same educational settings where appropriate.

``SEC. 3308. REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this part shall submit, once every 2 years, a report to the 
Secretary concerning the expenditure of funds by local educational 
agencies under this part. Each local educational agency receiving funds 
under this part shall submit to the State educational agency such 
information as may be necessary for such report.
    ``(b) Report to Congress.--The Secretary shall submit, once every 2 
years, a report to the appropriate committees of the Congress 
concerning programs assisted under this part.

``SEC. 3309. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $200,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.

                        ``PART D--ADMINISTRATION

``SEC. 3401. RELEASE TIME.

    ``The Secretary shall allow entities carrying out professional 
development programs funded under part A to use funds provided under 
part A for professional release time to enable individuals to 
participate in programs assisted under part A.

``SEC. 3402. EDUCATION TECHNOLOGY.

    ``Funds made available under part A may be used to provide for the 
acquisition or development of education technology or instructional 
materials, including authentic materials in languages other than 
English, access to and participation in electronic networks for 
materials, training and communications, and incorporation of such 
resources in curricula and programs such as those funded under this 
title.

``SEC. 3403. NOTIFICATION.

    ``The State educational agency, and when applicable, the State 
board for postsecondary education, shall be notified within 3 working 
days of the date an award under part A is made to an eligible entity 
within the State.

``SEC. 3404. CONTINUED ELIGIBILITY.

    ``Entities receiving grants under this title shall remain eligible 
for grants for subsequent activities which extend or expand and do not 
duplicate those activities supported by a previous grant under this 
title. In considering applications for grants under this title, the 
Secretary shall take into consideration the applicant's record of 
accomplishments under previous grants under this title.

``SEC. 3405. COORDINATION AND REPORTING REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of children and 
youth of limited English proficiency, the Secretary shall coordinate 
and ensure close cooperation with other programs serving language-
minority and limited English proficient students that are administered 
by the Department and other agencies. The Secretary shall consult with 
the Secretary of Labor, the Secretary of Health and Human Services, the 
Secretary of Agriculture, the Attorney General and the heads of other 
relevant agencies to identify and eliminate barriers to appropriate 
coordination of programs that affect language-minority and limited 
English proficient students and their families. The Secretary shall 
provide for continuing consultation and collaboration, between the 
Office and relevant programs operated by the Department, including 
programs under this title and other programs under this Act, in 
planning, contracts, providing joint technical assistance, providing 
joint field monitoring activities and in other relevant activities to 
ensure effective program coordination to provide high quality education 
opportunities to all language-minority and limited English proficient 
students.
    ``(b) Data.--The Secretary shall, to the extent feasible, ensure 
that all data collected by the Department shall include the collection 
and reporting of data on limited English proficient students.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under part 
A.
    ``(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary and to 
the Committee on Health, Education, Labor, and Pensions of the Senate 
and to the Committee on Education and the Workforce of the House of 
Representatives a report on--
            ``(1) the activities carried out under this title and the 
        effectiveness of such activities in improving the education 
        provided to limited English proficient children and youth;
            ``(2) a critical synthesis of data reported by the States 
        pursuant to section 3124;
            ``(3) an estimate of the number of certified bilingual 
        education personnel in the field and an estimate of the number 
        of bilingual education teachers which will be needed for the 
        succeeding 5 fiscal years;
            ``(4) the major findings of research carried out under this 
        title; and
            ``(5) recommendations for further developing the capacity 
        of our Nation's schools to educate effectively limited English 
        proficient students.

                      ``PART E--GENERAL PROVISIONS

``SEC. 3501. DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Bilingual education program.--The term `bilingual 
        education program' means an educational program for limited 
        English proficient students that--
                    ``(A) makes instructional use of both English and a 
                student's native language;
                    ``(B) enables limited English proficient students 
                to achieve English proficiency and academic mastery of 
                subject matter content and higher order skills, 
                including critical thinking, so as to meet age-
                appropriate grade-promotion and graduation standards;
                    ``(C) may also develop the native language skills 
                of limited English proficient students, or ancestral 
                language skills of American Indians (within the meaning 
                of part A of title VII), Alaska Natives (as defined in 
                section 7306), Native Hawaiians (as defined in section 
                7207), and native residents of the outlying areas; and
                    ``(D) may include the participation of English 
                proficient students if such program is designed to 
                enable all enrolled students to become proficient in 
                English and a second language.
            ``(2) Children and youth.--The term `children and youth' 
        means individuals aged 3 through 21.
            ``(3) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness or Indian tribe or tribally 
        sanctioned educational authority (as such terms are defined in 
        section 3004) that is representative of a community or 
        significant segments of a community and that provides 
        educational or related services to individuals in the 
        community. Such term includes Native Hawaiian organizations 
        including Native Hawaiian Educational Organizations as such 
        term is defined in section 4009 of the Augustus F. Hawkins-
        Robert T. Stafford Elementary and Secondary School Improvement 
        Amendments of 1988, as such section was in effect on the day 
        preceding the date of enactment of the Improving America's 
        Schools Act of 1994.
            ``(4) Community college.--The term `community college' 
        means an institution of higher education as defined in section 
        101 of the Higher Education Act of 1965 that provides not less 
        than a 2-year program that is acceptable for full credit toward 
        a bachelor's degree, including institutions receiving 
        assistance under the Tribally Controlled College or University 
        Assistance Act of 1978.
            ``(5) Director.--The term `Director' means the Director of 
        the Office of Bilingual Education and Minority Languages 
        Affairs established under section 209 of the Department of 
        Education Organization Act.
            ``(6) Family education program.--
                    ``(A) In general.--The term `family education 
                program' means a bilingual education or special 
                alternative instructional program that--
                            ``(i) is designed--
                                    ``(I) to help limited English 
                                proficient adults and out-of-school 
                                youths achieve proficiency in the 
                                English language; and
                                    ``(II) to provide instruction on 
                                how parents and family members can 
                                facilitate the educational achievement 
                                of their children;
                            ``(ii) when feasible, uses instructional 
                        programs such as the models developed under the 
                        Even Start Family Literacy Programs, which 
                        promote adult literacy and train parents to 
                        support the educational growth of their 
                        children, the Parents as Teachers Program, and 
                        the Home Instruction Program for Preschool 
                        Youngsters; and
                            ``(iii) gives preference to participation 
                        by parents and immediate family members of 
                        children attending school.
                    ``(B) Instruction for higher education and 
                employment.--Such term may include programs that 
                provide instruction to facilitate higher education and 
                employment outcomes.
            ``(7) Immigrant children and youth.--The term `immigrant 
        children and youth' means individuals who--
                    ``(A) are aged 3 through 21;
                    ``(B) were not born in any State; and
                    ``(C) have not been attending 1 or more schools in 
                any 1 or more States for more than 3 full academic 
                years.
            ``(8) Limited english proficiency and limited english 
        proficient.--The terms `limited English proficiency' and 
        `limited English proficient', when used with reference to an 
        individual, mean an individual--
                    ``(A)(i) who was not born in the United States, or 
                whose native language is a language other than English, 
                and who comes from an environment where a language 
                other than English is dominant;
                    ``(ii) who is a Native American or Alaska Native, 
                or is a native resident of the outlying areas, and 
                comes from an environment where a language other than 
                English has had a significant impact on such 
                individual's level of English language proficiency; or
                    ``(iii) who is migratory, whose native language is 
                a language other than English, and who comes from an 
                environment where a language other than English is 
                dominant; and
                    ``(B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English language 
                and whose difficulties may deny such individual the 
                opportunity to learn successfully in classrooms where 
                the language of instruction is English or to 
                participate fully in society.
            ``(9) Native american and native american language.--The 
        terms `Native American' and `Native American language' shall 
        have the meanings given such terms in section 103 of the Native 
        American Languages Act.
            ``(10) Native hawaiian or native american pacific islander 
        native language educational organization.--The term `Native 
        Hawaiian or Native American Pacific Islander native language 
        educational organization' means a nonprofit organization with a 
        majority of its governing board and employees consisting of 
        fluent speakers of the traditional Native American languages 
        used in the organization's educational programs and with not 
        less than 5 years successful experience in providing 
        educational services in traditional Native American languages.
            ``(11) Native language.--The term `native language', when 
        used with reference to an individual of limited English 
        proficiency, means the language normally used by such 
        individual, or in the case of a child or youth, the language 
        normally used by the parents of the child or youth.
            ``(12) Office.--The term `Office' means the Office of 
        Bilingual Education and Minority Languages Affairs.
            ``(13) Other programs for persons of limited english 
        proficiency.--The term `other programs for persons of limited 
        English proficiency' means any other programs administered by 
        the Secretary that serve persons of limited English 
        proficiency.
            ``(14) Paraprofessional.--The term `paraprofessional' means 
        an individual who is employed in a preschool, elementary 
        school, or secondary school under the supervision of a 
        certified or licensed teacher, including individuals employed 
        in bilingual education, special education and migrant 
        education.
            ``(15) Special alternative instructional program.--The term 
        `special alternative instructional program' means an 
        educational program for limited English proficient students 
        that--
                    ``(A) utilizes specially designed English language 
                curricula and services but does not use the student's 
                native language for instructional purposes;
                    ``(B) enables limited English proficient students 
                to achieve English proficiency and academic mastery of 
                subject matter content and higher order skills, 
                including critical thinking, so as to meet age-
                appropriate grade-promotion and graduation standards; 
                and
                    ``(C) is particularly appropriate for schools where 
                the diversity of the limited English proficient 
                students' native languages and the small number of 
                students speaking each respective language makes 
                bilingual education impractical and where there is a 
                critical shortage of bilingual education teachers.

``SEC. 3502. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this title, 
the Secretary shall consult with State educational agencies and local 
educational agencies, organizations representing limited English 
proficient individuals, and organizations representing teachers and 
other personnel involved in bilingual education.
    ``(b) Parental Notification.--
            ``(1) In general.--Parents of children and youth 
        participating in programs assisted under part A shall be 
        informed of--
                    ``(A) a student's level of English proficiency, how 
                such level was assessed, the status of a student's 
                academic achievement, and the implications of a 
                student's educational strengths and needs for age and 
                grade appropriate academic attainment, promotion, and 
                graduation;
                    ``(B) what programs are available to meet the 
                student's educational strengths and needs and how the 
                programs differ in content and instructional goals, and 
                in the case of a student with a disability, how the 
                program meets the objectives of a student's 
                individualized education program; and
                    ``(C) the instructional goals of the bilingual 
                education or special alternative instructional program, 
                and how the program will specifically help the limited 
                English proficient student acquire English and meet 
                age-appropriate standards for grade promotion and 
                graduation, including--
                            ``(i) the benefits, nature, and past 
                        academic results of the bilingual educational 
                        program and of the instructional alternatives; 
                        and
                            ``(ii) the reasons for the selection of 
                        their child as being in need of bilingual 
                        education.
            ``(2) Option to decline.--
                    ``(A) In general.--Such parents shall also be 
                informed that such parents have the option of declining 
                enrollment of their children and youth in such programs 
                and shall be given an opportunity to so decline if such 
                parents so choose.
                    ``(B) Civil rights obligations.--A local 
                educational agency shall not be relieved of any of its 
                obligations under title VI of the Civil Rights Act of 
                1964 because parents choose not to enroll their 
                children in programs carried out under part A.
            ``(3) Receipt of information.--Such parents shall receive, 
        in a manner and form understandable to such parents, including, 
        if necessary and to the extent feasible, in the native language 
        of such parents, the information required by this subsection. 
        At a minimum, such parents shall receive--
                    ``(A) timely information about projects funded 
                under part A; and
                    ``(B) if the parents of participating children so 
                desire, notice of opportunities for regular meetings 
                for the purpose of formulating and responding to 
                recommendations from such parents.
            ``(4) Special rule.--Students shall not be admitted to or 
        excluded from any federally assisted education program merely 
        on the basis of a surname or language-minority status.''.

          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

SEC. 401. AMENDMENT TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:

         ``TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

                         ``PART A--STATE GRANTS

``SEC. 4001. SHORT TITLE.

    ``This part may be cited as the `Safe and Drug-Free Schools and 
Communities Act of 1994'.

``SEC. 4002. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Every student should attend a school in a drug- and 
        violence-free learning environment.
            ``(2) The widespread illegal use of alcohol and drugs among 
        the Nation's secondary school students, and increasingly by 
        students in elementary schools as well, constitutes a grave 
        threat to such students' physical and mental well-being, and 
        significantly impedes the learning process. For example, data 
        show that students who drink tend to receive lower grades and 
        are more likely to miss school because of illness than students 
        who do not drink.
            ``(3) Drug and violence prevention programs are essential 
        components of a comprehensive strategy to promote school 
        safety, youth development, positive school outcomes, and to 
        reduce the demand for and illegal use of alcohol, tobacco and 
        drugs throughout the Nation. Schools, local organizations, 
        parents, students, and communities throughout the Nation have a 
        special responsibility to work together to combat the 
        continuing epidemic of violence and illegal drug use and should 
        measure the success of their programs against clearly defined 
        goals and objectives.
            ``(4) Drug and violence prevention programs are most 
        effective when implemented within a scientifically based 
        research, drug and violence prevention framework of proven 
        effectiveness.
            ``(5) Research clearly shows that community contexts 
        contribute to substance abuse and violence.
            ``(6) Substance abuse and violence are intricately related 
        and must be dealt with in a holistic manner.
            ``(7) Research has documented that parental behavior and 
        environment directly influence a child's inclination to use 
        alcohol, tobacco or drugs.

``SEC. 4003. PURPOSE.

    ``The purpose of this part is to support programs that prevent 
violence in and around schools and prevent the illegal use of alcohol, 
tobacco, and drugs, involve parents, and are coordinated with related 
Federal, State, school, and community efforts and resources, through 
the provision of Federal assistance to--
            ``(1) States for grants to local educational agencies and 
        educational service agencies and consortia of such agencies to 
        establish, operate, and improve local programs of school drug 
        and violence prevention, early intervention, rehabilitation 
        referral, and education in elementary and secondary schools for 
        the development and implementation of policies that set clear 
        and appropriate standards regarding the illegal use of alcohol, 
        tobacco and drugs, and for violent behavior (including 
        intermediate and junior high schools);
            ``(2) States for grants to, and contracts with, community-
        based organizations and other public and private nonprofit 
        agencies and organizations for programs of drug and violence 
        prevention including community mobilization, early 
        intervention, rehabilitation referral, and education;
            ``(3) States for development, training, technical 
        assistance, and coordination activities; and
            ``(4) public and private nonprofit organizations to provide 
        technical assistance, conduct training, demonstrations, and 
        evaluation, and to provide supplementary services and community 
        mobilization activities for the prevention of drug use and 
        violence among students and youth.

``SEC. 4004. FUNDING.

    ``There are authorized to be appropriated--
            ``(1) $700,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        State grants under subpart 1;
            ``(2) $150,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        national programs under subpart 2;
            ``(3) $75,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        the National Coordinator Initiative under section 4122; and
            ``(4) $5,000,000 for each of fiscal years 2002 through 2004 
        to carry out section 4125.

  ``Subpart 1--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
4004(1) to carry out this subpart for each fiscal year, the Secretary--
            ``(1) shall reserve 1 percent of such amount for grants 
        under this subpart to Guam, American Samoa, the Virgin Islands, 
        and the Commonwealth of the Northern Mariana Islands, to be 
        allotted in accordance with the Secretary's determination of 
        their respective needs;
            ``(2) shall reserve 1 percent of such amount for the 
        Secretary of the Interior to carry out programs under this part 
        for Indian youth;
            ``(3) may reserve not more than $2,000,000 for the national 
        impact evaluation required by section 4117(a); and
            ``(4) shall reserve 0.2 percent of such amount for programs 
        for Native Hawaiians under section 4118.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, for each fiscal year, allocate among the 
        States--
                    ``(A) one-half of the remainder not reserved under 
                subsection (a) according to the ratio between the 
                school-aged population of each State and the school-
                aged population of all the States; and
                    ``(B) one-half of such remainder according to the 
                ratio between the amount each State received under 
                section 1124A for the preceding year and the sum of 
                such amounts received by all the States.
            ``(2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less than one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
            ``(3) Reallotment.--The Secretary may reallot any amount of 
        any allotment to a State if the Secretary determines that the 
        State will be unable to use such amount within 2 years of such 
        allotment. Such reallotments shall be made on the same basis as 
        allotments are made under paragraph (1).
            ``(4) Definitions.--In this subsection:
                    ``(A) State.--The term `State' means each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico.
                    ``(B) Local educational agency.--The term `local 
                educational agency' includes educational service 
                agencies and consortia of such agencies.
    ``(c) Limitation.--Amounts appropriated under section 4004(2) for a 
fiscal year may not be increased above the amounts appropriated under 
such section for the previous fiscal year unless the amounts 
appropriated under section 4004(1) for the fiscal year involved are at 
least 10 percent greater that the amounts appropriated under such 
section 4004(1) for the previous fiscal year.

``SEC. 4112. STATE APPLICATIONS.

    ``(a) In General.--In order to receive an allotment under section 
4111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1) contains a comprehensive plan for the use of funds by 
        the State educational agency and the chief executive officer to 
        provide safe, orderly, and drug-free schools and communities;
            ``(2) contains the results of the State's needs assessment 
        for drug and violence prevention programs, which shall be based 
        on the results of on-going State evaluation activities, 
        including data on the incidence and prevalence, age of onset, 
        perception of health risk, and perception of social disapproval 
        of drug use and violence by youth in schools and communities 
        and the prevalence of risk or protective factors, buffers or 
        assets or other scientifically based research variables in the 
        school and community;
            ``(3) contains assurances that the sections of the 
        application concerning the funds provided to the chief 
        executive officer and the State educational agency were 
        developed together, with each such officer or State 
        representative, in consultation and coordination with 
        appropriate State officials and others, including the chief 
        State school officer, the chief executive officer, the head of 
        the State alcohol and drug abuse agency, the heads of the State 
        health and mental health agencies, the head of the State 
        criminal justice planning agency, the head of the State child 
        welfare agency, the head of the State board of education, or 
        their designees, and representatives of parents, students, and 
        community-based organizations;
            ``(4) contains an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting a national impact 
        evaluation of programs required by section 4117(a);
            ``(5) contains assurances that the State education agency 
        and the Governor will develop their respective applications in 
        consultation with an advisory council that includes, to the 
        extent practicable, representatives from school districts, 
        businesses, parents, youth, teachers, administrators, pupil 
        services personnel, private schools, appropriate State 
        agencies, community-based organizations, the medical 
        profession, law enforcement, the faith-based community and 
        other groups with interest and expertise in alcohol, tobacco, 
        drug, and violence prevention;
            ``(6) contains assurances that the State education agency 
        and the Governor involve the representatives described in 
        paragraph (5), on an ongoing basis, to review program 
        evaluations and other relevant material and make 
        recommendations to the State education agency and the Governor 
        on how to improve their respective alcohol, tobacco, drug, and 
        violence prevention programs;
            ``(7) contains a list of the State's results-based 
        performance measures for drug and violence prevention, that 
        shall--
                    ``(A) be focused on student behavior and attitudes 
                and be derived from the needs assessment;
                    ``(B) include targets and due dates for the 
                attainment of such performance measures; and
                    ``(C) include a description of the procedures that 
                the State will use to inform local educational agencies 
                of such performance measures for assessing and publicly 
                reporting progress toward meeting such measures or 
                revising them as needed; and
            ``(8) includes any other information the Secretary may 
        require.
    ``(b) State Educational Agency Funds.--A State's application under 
this section shall also contain a comprehensive plan for the use of 
funds under section 4113(a) by the State educational agency that 
includes--
            ``(1) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the drug and violence 
        prevention programs conducted by local educational agencies in 
        accordance with section 4116;
            ``(2) a description of how the State educational agency 
        will use funds under section 4113(b), including how the agency 
        will receive input from parents regarding the use of such 
        funds;
            ``(3) a description of how the State educational agency 
        will coordinate such agency's activities under this subpart 
        with the chief executive officer's drug and violence prevention 
        programs under this subpart and with the prevention efforts of 
        other State agencies; and
            ``(4) a description of the procedures the State educational 
        agency will use to review applications from and allocate 
        funding to local educational agencies under section 4115 and 
        how such review will receive input from parents.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 4114(a) by the chief executive officer that includes, with 
respect to each activity to be carried out by the State--
            ``(1) a description of how the chief executive officer will 
        coordinate such officer's activities under this part with the 
        State educational agency and other State agencies and 
        organizations involved with drug and violence prevention 
        efforts;
            ``(2) a description of how funds reserved under section 
        4114(a) will be used so as not to duplicate the efforts of the 
        State educational agency and local educational agencies with 
        regard to the provision of school-based prevention efforts and 
        services and how those funds will be used to serve populations 
        not normally served by the State educational agency, such as 
        school dropouts and youth in detention centers;
            ``(3) a description of how the chief executive officer will 
        award funds under section 4114(a) and a plan for monitoring the 
        performance of, and providing technical assistance to, 
        recipients of such funds;
            ``(4) a description of the special outreach activities that 
        will be carried out to maximize the participation of community-
        based nonprofit organizations of demonstrated effectiveness 
        which provide services in low-income communities;
            ``(5) a description of how funds will be used to support 
        community-wide comprehensive drug and violence prevention 
        planning and community mobilization activities; and
            ``(6) a specific description of how input from parents will 
        be sought regarding the use of funds under section 4114(a).
    ``(d) Peer Review.--The Secretary shall use a peer review process 
in reviewing State applications under this section.
    ``(e) Interim Application.--Notwithstanding any other provisions of 
this section, a State may submit for fiscal year 2002 a 1-year interim 
application and plan for the use of funds under this subpart that are 
consistent with the requirements of this section and contain such 
information as the Secretary may specify in regulations. The purpose of 
such interim application and plan shall be to afford the State the 
opportunity to fully develop and review such State's application and 
comprehensive plan otherwise required by this section. A State may not 
receive a grant under this subpart for a fiscal year subsequent to 
fiscal year 2002 unless the Secretary has approved such State's 
application and comprehensive plan in accordance with this subpart.

``SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--An amount equal to 80 percent of the total 
amount allocated to a State under section 4111 for each fiscal year 
shall be used by the State educational agency and its local educational 
agencies for drug and violence prevention activities in accordance with 
this section.
    ``(b) State Level Programs.--
            ``(1) In general.--A State educational agency shall use not 
        more than 5 percent of the amount available under subsection 
        (a) for activities such as--
                    ``(A) voluntary training and technical assistance 
                concerning drug and violence prevention for local 
                educational agencies and educational service agencies, 
                including teachers, administrators, coaches and 
                athletic directors, other staff, parents, students, 
                community leaders, health service providers, local law 
                enforcement officials, and judicial officials;
                    ``(B) the development, identification, 
                dissemination, and evaluation of the most readily 
                available, accurate, and up-to-date drug and violence 
                prevention curriculum materials (including videotapes, 
                software, and other technology-based learning 
                resources), for consideration by local educational 
                agencies;
                    ``(C) making available to local educational 
                agencies cost effective scientifically based research 
                programs for youth violence and drug abuse prevention;
                    ``(D) demonstration projects in drug and violence 
                prevention, including service-learning projects;
                    ``(E) training, technical assistance, and 
                demonstration projects to address violence associated 
                with prejudice and intolerance;
                    ``(F) training, technical assistance and 
                demonstration projects to address the impact of family 
                violence on school violence and substance abuse;
                    ``(G) financial assistance to enhance resources 
                available for drug and violence prevention in areas 
                serving large numbers of economically disadvantaged 
                children or sparsely populated areas, or to meet other 
                special needs consistent with the purposes of this 
                subpart; and
                    ``(H) the evaluation of activities carried out 
                within the State under this part.
            ``(2) Special rule.--A State educational agency may carry 
        out activities under this subsection directly, or through 
        grants or contracts.
    ``(c) State Administration.--
            ``(1) In general.--A State educational agency may use not 
        more than 5 percent of the amount reserved under subsection (a) 
        for the administrative costs of carrying out its 
        responsibilities under this part.
            ``(2) Uniform management information and reporting 
        system.--In carrying out its responsibilities under this part, 
        a State shall implement a uniform management information and 
        reporting system that includes information on the types of 
        curricula, programs and services provided by the State, 
        Governor, local education agencies, and other recipients of 
        funds under this title.
    ``(d) Local Educational Agency Programs.--
            ``(1) In general.--A State educational agency shall 
        distribute not less than 91 percent of the amount made 
        available under subsection (a) for each fiscal year to local 
        educational agencies in accordance with this subsection.
            ``(2) Distribution.--A State educational agency shall 
        distribute amounts under paragraph (1) in accordance with any 
        one of the following subparagraphs:
                    ``(A) Enrollment and combination approach.--Of the 
                amount distributed under paragraph (1), a State 
                educational agency shall distribute--
                            ``(i) at least 70 percent of such amount to 
                        local educational agencies, based on the 
                        relative enrollments in public and private 
                        nonprofit elementary and secondary schools 
                        within the boundaries of such agencies; and
                            ``(ii) not to exceed 30 percent of any 
                        amounts remaining after amounts are distributed 
                        under clause (i)--
                                    ``(I) to each local educational 
                                agency in an amount determined 
                                appropriate by the State educational 
                                agency; or
                                    ``(II) to local educational 
                                agencies that the State education 
                                agency determines have the greatest 
                                need for additional funds to carry out 
                                drug and violence prevention programs 
                                authorized by this subpart.
                    ``(B) Competitive and need approach.--Of the amount 
                distributed under paragraph (1), a State educational 
                agency shall distribute--
                            ``(i) not to exceed 70 percent of such 
                        amount to local educational agencies that the 
                        State agency determines, through a competitive 
                        process, have the greatest need for funds to 
                        carry out drug and violence prevention programs 
                        based on criteria established by the State 
                        agency and authorized under this subpart; and
                            ``(ii) at least 30 percent of any amounts 
                        remaining after amounts are distributed under 
                        clause (i) to local educational agencies that 
                        the State agency determines have a need for 
                        additional funds to carry out the program 
                        authorized under this subpart.
            ``(3) Consideration of objective data.--For purposes of 
        paragraph (2), in determining which local educational agencies 
        have the greatest need for funds, the State educational agency 
        shall consider objective data which may include--
                    ``(A) high or increasing rates of alcohol or drug 
                use among youth;
                    ``(B) high or increasing rates of victimization of 
                youth by violence and crime;
                    ``(C) high or increasing rates of arrests and 
                convictions of youth for violent or drug- or alcohol-
                related crime;
                    ``(D) the extent of illegal gang activity;
                    ``(E) high or increasing incidence of violence 
                associated with prejudice and intolerance;
                    ``(F) high or increasing rates of referrals of 
                youths to drug and alcohol abuse treatment and 
                rehabilitation programs;
                    ``(G) high or increasing rates of referrals of 
                youths to juvenile court;
                    ``(H) high or increasing rates of expulsions and 
                suspensions of students from schools;
                    ``(I) high or increasing rates of reported cases of 
                child abuse and domestic violence; and
                    ``(J) high or increasing rates of drug related 
                emergencies or deaths.
    ``(e) Reallocation of Funds.--If a local educational agency chooses 
not to apply to receive the amount allocated to such agency under 
subsection (d), or if such agency's application under section 4115 is 
disapproved by the State educational agency, the State educational 
agency shall reallocate such amount to one or more of its other local 
educational agencies.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
            ``(1) Return.--Except as provided in paragraph (2), upon 
        the expiration of the 1-year period beginning on the date that 
        a local educational agency or educational service agency under 
        this title receives its allocation under this title--
                    ``(A) such agency shall return to the State 
                educational agency any funds from such allocation that 
                remain unobligated; and
                    ``(B) the State educational agency shall reallocate 
                any such amount to local educational agencies or 
                educational service agencies that have plans for using 
                such amount for programs or activities on a timely 
                basis.
            ``(2) Reallocation.--In any fiscal year, a local 
        educational agency, may retain for obligation in the succeeding 
        fiscal year--
                    ``(A) an amount equal to not more than 25 percent 
                of the allocation it receives under this title for such 
                fiscal year; or
                    ``(B) upon a demonstration of good cause by such 
                agency or consortium, a greater amount approved by the 
                State educational agency.

``SEC. 4114. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--
            ``(1) In general.--An amount equal to 20 percent of the 
        total amount allocated to a State under section 4111(b)(1) for 
        each fiscal year shall be used by the chief executive officer 
        of such State for drug and violence prevention programs and 
        activities in accordance with this section.
            ``(2) Administrative costs.--A chief executive officer may 
        use not more than 5 percent of the 20 percent described in 
        paragraph (1) for the administrative costs incurred in carrying 
        out the duties of such officer under this section. The chief 
        executive officer of a State may use amounts under this 
        paragraph to award grants to State, county, or local law 
        enforcement agencies, including district attorneys, in 
        consultation with local education agencies or community-based 
        agencies, for the purposes of carrying out drug abuse and 
        violence prevention activities.
    ``(b) State plan.--Amounts shall be used under this section in 
accordance with a State plan submitted by the chief executive office of 
the State. Such State plan shall contain--
            ``(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and controlled, 
        illegal, addictive or harmful substances as well as the 
        violence, safety, and discipline problems among students who 
        attend schools in the State (including private school students 
        who participate in the States's drug and violence prevention 
        programs) that is based on ongoing local assessment or 
        evaluation activities;
            ``(2) an analysis, based on data reasonably available at 
        the time, of the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse and domestic 
        violence, or protective factors, buffers or assets or other 
        scientifically based research variables in schools and 
        communities in the State;
            ``(3) a description of the scientifically based research 
        strategies and programs, which shall be used to prevent or 
        reduce drug use, violence, or disruptive behavior, which shall 
        include--
                    ``(A) a specification of the objectively measurable 
                goals, objectives, and activities for the program;
                    ``(B) a specification for how risk factors, if any, 
                which have been identified will be targeted through 
                scientifically based research programs; and
                    ``(C) a specification for how protective factors, 
                buffers, or assets, if any, will be targeted through 
                scientifically based research programs;
            ``(4) a specification for the method or methods by which 
        measurements of program goals will be achieved; and
            ``(5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be assessed and 
        how the results will be used to refine, improve, and strengthen 
        the program.
    ``(c) Programs Authorized.--
            ``(1) In general.--A chief executive officer shall use 
        funds made available under subsection (a)(1) directly for 
        grants to or contracts with parent groups, schools, community 
        action and job training agencies, community-based 
        organizations, community anti-drug coalitions, law enforcement 
        education partnerships, and other public entities and private 
        nonprofit organizations and consortia thereof. In making such 
        grants and contracts, a chief executive officer shall give 
        priority to programs and activities described in subsection (d) 
        for--
                    ``(A) children and youth who are not normally 
                served by State or local educational agencies; or
                    ``(B) populations that need special services or 
                additional resources (such as preschoolers, youth in 
                juvenile detention facilities, runaway or homeless 
                children and youth, pregnant and parenting teenagers, 
                and school dropouts).
            ``(2) Peer review.--Grants or contracts awarded under this 
        subsection shall be subject to a peer review process.
    ``(d) Authorized Activities.--Grants and contracts under subsection 
(c) shall be used to carry out the comprehensive State plan as required 
under section 4112(a)(1) through programs and activities such as--
            ``(1) disseminating information about drug and violence 
        prevention;
            ``(2) the voluntary training of parents, law enforcement 
        officials, judicial officials, social service providers, health 
        service providers and community leaders about drug and violence 
        prevention, health education (as it relates to drug and 
        violence prevention), domestic violence and child abuse 
        education (as it relates to drug and violence prevention), 
        early intervention, pupil services, or rehabilitation referral;
            ``(3) developing and implementing comprehensive, community-
        based drug and violence prevention programs that link community 
        resources with schools and integrate services involving 
        education, vocational and job skills training and placement, 
        law enforcement, health, mental health, family violence 
        prevention, community service, service-learning, mentoring, and 
        other appropriate services;
            ``(4) planning and implementing drug and violence 
        prevention activities that coordinate the efforts of State 
        agencies with efforts of the State educational agency and its 
        local educational agencies;
            ``(5) activities to protect students traveling to and from 
        school;
            ``(6) before-and-after school recreational, instructional, 
        cultural, and artistic programs that encourage drug- and 
        violence-free lifestyles;
            ``(7) activities that promote the awareness of and 
        sensitivity to alternatives to violence through courses of 
        study that include related issues of intolerance and hatred in 
        history;
            ``(8) developing and implementing activities to prevent and 
        reduce violence associated with prejudice and intolerance;
            ``(9) developing and implementing activities to prevent and 
        reduce dating violence;
            ``(10) developing and implementing strategies to prevent 
        illegal gang activity;
            ``(11) coordinating and conducting school and community-
        wide violence and safety and drug abuse assessments and 
        surveys;
            ``(12) service-learning projects that encourage drug- and 
        violence-free lifestyles;
            ``(13) evaluating programs and activities assisted under 
        this section;
            ``(14) developing and implementing community mobilization 
        activities to undertake environmental change strategies related 
        to substance abuse and violence; and
            ``(15) partnerships between local law enforcement agencies, 
        including district attorneys, and local education agencies or 
        community-based agencies.

``SEC. 4115. LOCAL APPLICATIONS.

    ``(a) Application Required.--
            ``(1) In general.--In order to be eligible to receive a 
        distribution under section 4113(d) for any fiscal year, a local 
        educational agency shall submit, at such time as the State 
        educational agency requires, an application to the State 
        educational agency for approval. Such an application shall be 
        amended, as necessary, to reflect changes in the local 
        educational agency's program.
            ``(2) Development.--
                    ``(A) Consultation.--A local educational agency 
                shall develop its application under subsection (a)(1) 
                in consultation with a local or substate regional 
                advisory council that includes, to the extent possible, 
                representatives of local government, business, parents, 
                students, teachers, pupil services personnel, 
                appropriate State agencies, private schools, the 
                medical profession, law enforcement, community-based 
                organizations, and other groups with interest and 
                expertise in drug and violence prevention.
                    ``(B) Duties of advisory council.--In addition to 
                assisting the local educational agency to develop an 
                application under this section, the advisory council 
                established or designated under subparagraph (A) shall, 
                on an ongoing basis--
                            ``(i) disseminate information about 
                        scientifically based research drug and violence 
                        prevention programs, projects, and activities 
                        conducted within the boundaries of the local 
                        educational agency;
                            ``(ii) advise the local educational agency 
                        regarding how best to coordinate such agency's 
                        activities under this subpart with other 
                        related programs, projects, and activities;
                            ``(iii) ensure that a mechanism is in place 
                        to enable local educational agencies to have 
                        access to up-to-date information concerning the 
                        agencies that administer related programs, 
                        projects, and activities and any changes in the 
                        law that alter the duties of the local 
                        educational agencies with respect to activities 
                        conducted under this subpart; and
                            ``(iv) review program evaluations and other 
                        relevant material and make recommendations on 
                        an active and ongoing basis to the local 
                        educational agency on how to improve such 
                        agency's drug and violence prevention programs.
    ``(b) Contents of Applications.--An application under this section 
shall contain--
            ``(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and controlled, 
        illegal, addictive or harmful substances as well as the 
        violence, safety, and discipline problems among students who 
        attend the schools of the applicant (including private school 
        students who participate in the applicant's drug and violence 
        prevention program) that is based on ongoing local assessment 
        or evaluation activities;
            ``(2) an analysis, based on data reasonably available at 
        the time, of the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse and domestic 
        violence, or protective factors, buffers or assets or other 
        scientifically based research variables in the school and 
        community;
            ``(3) a description of the scientifically based research 
        strategies and programs, which shall be used to prevent or 
        reduce drug use, violence, or disruptive behavior, which shall 
        include--
                    ``(A) a specification of the objectively measurable 
                goals, objectives, and activities for the program, 
                which shall include--
                            ``(i) reductions in the use of alcohol, 
                        tobacco, and illicit drugs and violence by 
                        youth;
                            ``(ii) specific reductions in the 
                        prevalence of identified risk factors;
                            ``(iii) specific increases in the 
                        prevalence of protective factors, buffers, or 
                        assets if any have been identified; or
                            ``(iv) other scientifically based research 
                        goals, objectives, and activities that are 
                        identified as part of the application that are 
                        not otherwise covered under clauses (i) through 
                        (iii);
                    ``(B) a specification for how risk factors, if any, 
                which have been identified will be targeted through 
                scientifically based research programs; and
                    ``(C) a specification for how protective factors, 
                buffers, or assets, if any, will be targeted through 
                scientifically based research programs;
            ``(4) a specification for the method or methods by which 
        measurements of program goals will be achieved;
            ``(5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be assessed and 
        how the results will be used to refine, improve, and strengthen 
        the program;
            ``(6) an assurance that the applicant has, or the schools 
        to be served have, a plan for keeping schools safe and drug-
        free that includes--
                    ``(A) appropriate and effective discipline policies 
                that prohibit disorderly conduct, the possession of 
                firearms and other weapons, and the illegal use, 
                possession, distribution, and sale of tobacco, alcohol, 
                and other drugs by students;
                    ``(B) security procedures at school and while 
                students are on the way to and from school;
                    ``(C) prevention activities that are designed to 
                create and maintain safe, disciplined, and drug-free 
                environments; and
                    ``(D) a crisis management plan for responding to 
                violent or traumatic incidents on school grounds; and
            ``(7) such other information and assurances as the State 
        educational agency may reasonably require.
    ``(c) Review of Application.--
            ``(1) In general.--In reviewing local applications under 
        this section, a State educational agency shall use a peer 
        review process or other methods of assuring the quality of such 
        applications.
            ``(2) Considerations.--
                    ``(A) In general.--In determining whether to 
                approve the application of a local educational agency 
                under this section, a State educational agency shall 
                consider the quality of the local educational agency's 
                comprehensive plan under subsection (b)(6) and the 
                extent to which the proposed plan provides a thorough 
                assessment of the substance abuse and violence problem, 
                uses objective data and the knowledge of a wide range 
                of community members, develops measurable goals and 
                objectives, and implements scientifically based 
                research programs that have been shown to be effective 
                and meet identified needs.
                    ``(B) Disapproval.--A State educational agency may 
                disapprove a local educational agency application under 
                this section in whole or in part and may withhold, 
                limit, or place restrictions on the use of funds 
                allotted to such a local educational agency in a manner 
                the State educational agency determines will best 
                promote the purposes of this part, except that a local 
                educational agency shall be afforded an opportunity to 
                appeal any such disapproval.

``SEC. 4116. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

    ``(a) Program Requirements.--A local educational agency shall use 
funds received under this subpart to adopt and carry out a 
comprehensive drug and violence prevention program which shall--
            ``(1) be designed, for all students and school employees, 
        to--
                    ``(A) prevent the use, possession, and distribution 
                of tobacco, alcohol, and illegal drugs by students and 
                to prevent the illegal use, possession, and 
                distribution of such substances by school employees;
                    ``(B) prevent violence and promote school safety; 
                and
                    ``(C) create a disciplined environment conducive to 
                learning;
            ``(2) include activities to promote the involvement of 
        parents and coordination with community groups and agencies, 
        including the distribution of information about the local 
        educational agency's needs, goals, and programs under this 
        subpart;
            ``(3) implement activities which shall include--
                    ``(A) a thorough assessment of the substance abuse 
                violence problem, using objective data and the 
                knowledge of a wide range of community members;
                    ``(B) the development of measurable goals and 
                objectives;
                    ``(C) the implementation of scientifically based 
                research programs that have been shown to be effective 
                and meet identified goals; and
                    ``(D) an evaluation of program activities; and
            ``(4) implement prevention programming activities within 
        the context of a scientifically based research prevention 
        framework.
    ``(b) Use of Funds.--A comprehensive, age-appropriate, 
developmentally-, and scientifically based research drug and violence 
prevention program carried out under this subpart may include--
            ``(1) drug or violence prevention and education programs 
        for all students, from the preschool level through grade 12, 
        that address the legal, social, personal and health 
        consequences of the use of illegal drugs or violence, promote a 
        sense of individual responsibility, and provide information 
        about effective techniques for resisting peer pressure to use 
        illegal drugs;
            ``(2) programs of drug or violence prevention, health 
        education (as it relates to drug and violence prevention), 
        domestic violence and child abuse education (as it relates to 
        drug and violence prevention), early intervention, pupil 
        services, mentoring, or rehabilitation referral, which 
        emphasize students' sense of individual responsibility and 
        which may include--
                    ``(A) the dissemination of information about drug 
                or violence prevention;
                    ``(B) the professional development or voluntary 
                training of school personnel, parents, students, law 
                enforcement officials, judicial officials, health 
                service providers and community leaders in prevention, 
                education, early intervention, pupil services or 
                rehabilitation referral; and
                    ``(C) the implementation of strategies, including 
                strategies to integrate the delivery of services from a 
                variety of providers, to combat illegal alcohol, 
                tobacco and drug use, such as--
                            ``(i) family counseling; and
                            ``(ii) activities, such as community 
                        service and service-learning projects, that are 
                        designed to increase students' sense of 
                        community;
            ``(3) age-appropriate, developmentally based violence 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        health, personal, and social consequences of violent and 
        disruptive behavior, including sexual harassment and abuse, 
        domestic violence and child abuse, and victimization associated 
        with prejudice and intolerance, and that include activities 
        designed to help students develop a sense of individual 
        responsibility and respect for the rights of others, and to 
        resolve conflicts without violence, or otherwise decrease the 
        prevalence of risk factors or increase the prevalence of 
        protective factors, buffers, or assets in the community;
            ``(4) violence prevention programs for school-aged youth, 
        which emphasize students' sense of individual responsibility 
        and may include--
                    ``(A) the dissemination of information about school 
                safety and discipline;
                    ``(B) the professional development or voluntary 
                training of school personnel, parents, students, law 
                enforcement officials, judicial officials, and 
                community leaders in designing and implementing 
                strategies to prevent school violence;
                    ``(C) the implementation of strategies, such as 
                conflict resolution and peer mediation, student 
                outreach efforts against violence, anti-crime youth 
                councils (which work with school and community-based 
                organizations to discuss and develop crime prevention 
                strategies), and the use of mentoring programs, to 
                combat school violence and other forms of disruptive 
                behavior, such as sexual harassment and abuse; and
                    ``(D) the development and implementation of 
                character education programs, as a component of a 
                comprehensive drug or violence prevention program, that 
                are tailored by communities, parents and schools; and
                    ``(E) comprehensive, community-wide strategies to 
                prevent or reduce illegal gang activities and drug use;
            ``(5) supporting `safe zones of passage' for students 
        between home and school through such measures as Drug- and 
        Weapon-Free School Zones, enhanced law enforcement, and 
        neighborhood patrols;
            ``(6) the acquisition or hiring of school security 
        equipment, technologies, personnel, or services such as--
                    ``(A) metal detectors;
                    ``(B) electronic locks;
                    ``(C) surveillance cameras; and
                    ``(D) other drug and violence prevention-related 
                equipment and technologies;
            ``(7) professional development for teachers and other staff 
        and curricula that promote the awareness of and sensitivity to 
        alternatives to violence through courses of study that include 
        related issues of intolerance and hatred in history;
            ``(8) the promotion of before-and-after school 
        recreational, instructional, cultural, and artistic programs in 
        supervised community settings;
            ``(9) other scientifically based research prevention 
        programming that is--
                    ``(A) effective in reducing the prevalence of 
                alcohol, tobacco or drug use, and violence in youth;
                    ``(B) effective in reducing the prevalence of risk 
                factors predictive of increased alcohol, tobacco or 
                drug use, and violence; or
                    ``(C) effective in increasing the prevalence of 
                protective factors, buffers, and assets predictive of 
                decreased alcohol, tobacco or drug use and violence 
                among youth;
            ``(10) the collection of objective data used to assess 
        program needs, program implementation, or program success in 
        achieving program goals and objectives;
            ``(11) community involvement activities including community 
        mobilization;
            ``(12) voluntary parental involvement and training;
            ``(13) the evaluation of any of the activities authorized 
        under this subsection;
            ``(14) the provision of mental health counseling (by 
        qualified counselors) to students for drug or violence related 
        problems;
            ``(15) consistent with the fourth amendment to the 
        Constitution of the United States, the testing of a student for 
        illegal drug use or inspecting a student's locker for guns, 
        explosives, other weapons, or illegal drugs, including at the 
        request of or with the consent of a parent or legal guardian of 
        the student, if the local educational agency elects to so test 
        or inspect; and
            ``(16) the conduct of a nationwide background check of each 
        local educational agency employee (regardless of when hired) 
        and prospective employees for the purpose of determining 
        whether the employee or prospective employee has been convicted 
        of a crime that bears upon the employee's or prospective 
        employee's fitness--
                    ``(A) to have responsibility for the safety or 
                well-being of children;
                    ``(B) to serve in the particular capacity in which 
                the employee or prospective employee is or will be 
                employed; or
                    ``(C) to otherwise be employed at all by the local 
                educational agency.
    ``(c) Limitations.--
            ``(1) In general.--Not more than 20 percent of the funds 
        made available to a local educational agency under this subpart 
        may be used to carry out the activities described in paragraphs 
        (5) and (6) of subsection (b).
            ``(2) Special rule.--A local educational agency shall only 
        use funds received under this subpart for activities described 
        in paragraphs (5) and (6) of subsection (b) if funding for such 
        activities is not received from other Federal agencies.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the use of funds under this part by any local 
educational agency or school for the establishment or implementation of 
a school uniform policy so long as such policy is part of the overall 
comprehensive drug and violence prevention plan of the State involved 
and is supported by the State's needs assessment and other 
scientifically based research information.

``SEC. 4117. EVALUATION AND REPORTING.

    ``(a) Impact Evaluation.--
            ``(1) Biennial evaluation.--The Secretary, in consultation 
        with the National Advisory Committee, shall conduct an 
        independent biennial evaluation of the impact of programs 
        assisted under this subpart and of other recent and new 
        initiatives to combat violence in schools. The evaluation shall 
        report on--
                    ``(A) whether funded community and local education 
                agency programs--
                            ``(i) provided a thorough assessment of the 
                        substance abuse and violence problem;
                            ``(ii) used objective data and the 
                        knowledge of a wide range of community members;
                            ``(iii) developed measurable goals and 
                        objectives;
                            ``(iv) implemented scientifically based 
                        research programs that have been shown to be 
                        effective and meet identified needs; and
                            ``(v) conducted periodic program 
                        evaluations to assess progress made towards 
                        achieving program goals and objectives and 
                        whether they used evaluations to improve 
                        program goals, objectives and activities;
                    ``(B) whether funded community and local education 
                agency programs have been designed and implemented in a 
                manner that specifically targets, if relevant to the 
                program--
                            ``(i) scientifically based research 
                        variables that are predictive of drug use or 
                        violence;
                            ``(ii) risk factors that are predictive of 
                        an increased likelihood that young people will 
                        use drugs, alcohol or tobacco or engage in 
                        violence or drop out of school; or
                            ``(iii) protective factors, buffers, or 
                        assets that are known to protect children and 
                        youth from exposure to risk, either by reducing 
                        the exposure to risk factors or by changing the 
                        way the young person responds to risk, and to 
                        increase the likelihood of positive youth 
                        development;
                    ``(C) whether funded community and local education 
                agency programs have appreciably reduced the level of 
                drug, alcohol and tobacco use and school violence and 
                the presence of firearms at schools; and
                    ``(D) whether funded community and local 
                educational agency programs have conducted effective 
                parent involvement and voluntary training programs.
            ``(2) Data collection.--The National Center for Education 
        Statistics shall collect data to determine the incidence and 
        prevalence of social disapproval of drug use and violence in 
        elementary and secondary schools in the States.
            ``(3) Biennial Report.--Not later than January 1, 2003, and 
        every 2 years thereafter, the Secretary shall submit to the 
        President and Congress a report on the findings of the 
        evaluation conducted under paragraph (1) together with the data 
        collected under paragraph (2) and data available from other 
        sources on the incidence and prevalence, age of onset, 
        perception of health risk, and perception of social disapproval 
        of drug use in elementary and secondary schools in the States. 
        The Secretary shall include data submitted by the States 
        pursuant to subsection (b)(2)(B).
    ``(b) State Report.--
            ``(1) In general.--By December 1, 2002, and every 2 years 
        thereafter, the chief executive officer of the State, in 
        cooperation with the State educational agency, shall submit to 
        the Secretary a report--
                    ``(A) on the implementation and outcomes of State 
                programs under section 4114 and section 4113(b) and 
                local educational agency programs under section 
                4113(d), as well as an assessment of their 
                effectiveness;
                    ``(B) on the State's progress toward attaining its 
                goals for drug and violence prevention under 
                subsections (b)(1) and (c)(1) of section 4112; and
                    ``(C) on the State's efforts to inform parents of, 
                and include parents in, violence and drug prevention 
                efforts.
            ``(2) Special rule.--The report required by this subsection 
        shall be--
                    ``(A) in the form specified by the Secretary;
                    ``(B) based on the State's ongoing evaluation 
                activities, and shall include data on the incidence and 
                prevalence, age of onset, perception of health risk, 
                and perception of social disapproval of drug use and 
                violence by youth in schools and communities; and
                    ``(C) made readily available to the public.
    ``(c) Local Educational Agency Report.--
            ``(1) In general.--Each local educational agency receiving 
        funds under this subpart shall submit to the State educational 
        agency such information that the State requires to complete the 
        State report required by subsection (b), including a 
        description of how parents were informed of, and participated 
        in, violence and drug prevention efforts.
            ``(2) Availability.--Information under paragraph (1) shall 
        be made readily available to the public.
            ``(3) Provision of documentation.--Not later than January 1 
        of each year that a State is required to report under 
        subsection (b), the Secretary shall provide to the State 
        education agency all of the necessary documentation required 
        for compliance with this section.

``SEC. 4118. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 4111(a)(4) to carry out this section, the Secretary shall make 
grants to or enter into cooperative agreements or contracts with 
organizations primarily serving and representing Native Hawaiians which 
are recognized by the Governor of the State of Hawaii to plan, conduct, 
and administer programs, or portions thereof, which are authorized by 
and consistent with the provisions of this title for the benefit of 
Native Hawaiians.
    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 4004(2), the Secretary, in consultation with 
the Secretary of Health and Human Services, the Director of the Office 
of National Drug Control Policy, and the Attorney General, shall carry 
out programs to prevent the illegal use of drugs and violence among, 
and promote safety and discipline for, students at all educational 
levels from preschool through the post-secondary level. The Secretary 
shall carry out such programs directly, or through grants, contracts, 
or cooperative agreements with public and private nonprofit 
organizations and individuals, or through agreements with other Federal 
agencies, and shall coordinate such programs with other appropriate 
Federal activities. Such programs may include--
            ``(1) the development and demonstration of innovative 
        strategies for the voluntary training of school personnel, 
        parents, and members of the community, including the 
        demonstration of model preservice training programs for 
        prospective school personnel;
            ``(2) demonstrations and rigorous evaluations of innovative 
        approaches to drug and violence prevention;
            ``(3) the provision of information on drug abuse education 
        and prevention to the Secretary of Health and Human Services 
        for dissemination by the clearinghouse for alcohol and drug 
        abuse information established under section 501(d)(16) of the 
        Public Health Service Act;
            ``(4) the development of curricula related to child abuse 
        prevention and education and the training of personnel to teach 
        child abuse education and prevention to elementary and 
        secondary schoolchildren;
            ``(5) program evaluations that address issues not addressed 
        under section 4117(a);
            ``(6) direct services to schools and school systems 
        afflicted with especially severe drug and violence problems or 
        to support crisis situations and appropriate response efforts;
            ``(7) activities in communities designated as empowerment 
        zones or enterprise communities that will connect schools to 
        community-wide efforts to reduce drug and violence problems;
            ``(8) developing and disseminating drug and violence 
        prevention materials, including video-based projects and model 
        curricula;
            ``(9) developing and implementing a comprehensive violence 
        prevention strategy for schools and communities, that may 
        include conflict resolution, peer mediation, the teaching of 
        law and legal concepts, and other activities designed to stop 
        violence;
            ``(10) the implementation of innovative activities, such as 
        community service and service-learning projects, designed to 
        rebuild safe and healthy neighborhoods and increase students' 
        sense of individual responsibility;
            ``(11) grants to noncommercial telecommunications entities 
        for the production and distribution of national video-based 
        projects that provide young people with models for conflict 
        resolution and responsible decisionmaking;
            ``(12) the development of education and training programs, 
        curricula, instructional materials, and professional training 
        and development for preventing and reducing the incidence of 
        crimes and conflicts motivated by hate in localities most 
        directly affected by hate crimes; and
            ``(13) other activities that meet unmet national needs 
        related to the purposes of this title.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. NATIONAL COORDINATOR PROGRAM.

    ``(a) In General.--From amounts available to carry out this section 
under section 4004(3), the Secretary shall provide for the 
establishment of a National Coordinator Program under which the 
Secretary shall award grants to local educational agencies for the 
hiring of drug prevention and school safety program coordinators.
    ``(b) Use of Funds.--Amounts received under a grant under 
subsection (a) shall be used by local educational agencies to recruit, 
hire, and train individuals to serve as drug prevention and school 
safety program coordinators in schools with significant drug and school 
safety problems. Such coordinators shall be responsible for developing, 
conducting, and analyzing assessments of drug and crime problems at 
their schools, and administering the safe and drug free grant program 
at such schools.

``SEC. 4123. SAFE AND DRUG FREE SCHOOLS AND COMMUNITIES ADVISORY 
              COMMITTEE.

    ``(a) Establishment.--
            ``(1) In general.--There is hereby established an advisory 
        committee to be known as the `Safe and Drug Free Schools and 
        Communities Advisory Committee' (referred to in this section as 
        the `Advisory Committee') to--
                    ``(A) consult with the Secretary under subsection 
                (b);
                    ``(B) coordinate Federal school- and community-
                based substance abuse and violence prevention programs 
                and reduce duplicative research or services;
                    ``(C) develop core data sets and evaluation 
                protocols for safe and drug free school- and community-
                based programs;
                    ``(D) provide technical assistance and training for 
                safe and drug free school- and community-based 
                programs;
                    ``(E) provide for the diffusion of scientifically 
                based research safe and drug free school- and 
                community-based programs; and
                    ``(F) review other regulations and standards 
                developed under this title.
            ``(2) Composition.--The Advisory Committee shall be 
        composed of representatives from--
                    ``(A) the Department of Education;
                    ``(B) the Centers for Disease Control and 
                Prevention;
                    ``(C) the National Institute on Drug Abuse;
                    ``(D) the National Institute on Alcoholism and 
                Alcohol Abuse;
                    ``(E) the Center for Substance Abuse Prevention;
                    ``(F) the Center for Mental Health Services;
                    ``(G) the Office of Juvenile Justice and 
                Delinquency Prevention;
                    ``(H) the Office of National Drug Control Policy; 
                and
                    ``(I) State and local governments, including 
                education agencies.
            ``(3) Consultation.--In carrying out its duties under this 
        section, the Advisory Committee shall annually consult with 
        interested State and local coordinators of school- and 
        community-based substance abuse and violence prevention 
        programs and other interested groups.
    ``(b) Programs.--
            ``(1) In general.--From amounts made available under 
        section 4004(2) to carry out this subpart, the Secretary, in 
        consultation with the Advisory Committee, shall carry out 
        scientifically based research programs to strengthen the 
        accountability and effectiveness of the State, Governor's, and 
        national programs under this title.
            ``(2) Grants, contracts or cooperative agreements.--The 
        Secretary shall carry out paragraph (1) directly or through 
        grants, contracts, or cooperative agreements with public and 
        nonprofit private organizations and individuals or through 
        agreements with other Federal agencies.
            ``(3) Coordination.--The Secretary shall coordinate 
        programs under this section with other appropriate Federal 
        activities.
            ``(4) Activities.--Activities that may be carried out under 
        programs funded under this section may include--
                    ``(A) the provision of technical assistance and 
                training, in collaboration with other Federal agencies 
                utilizing their expertise and national and regional 
                training systems, for Governors, State educational 
                agencies and local educational agencies to support high 
                quality, effective programs that--
                            ``(i) provide a thorough assessment of the 
                        substance abuse and violence problem;
                            ``(ii) utilize objective data and the 
                        knowledge of a wide range of community members;
                            ``(iii) develop measurable goals and 
                        objectives; and
                            ``(iv) implement scientifically based 
                        research activities that have been shown to be 
                        effective and that meet identified needs;
                    ``(B) the provision of technical assistance and 
                training to foster program accountability;
                    ``(C) the diffusion and dissemination of best 
                practices and programs;
                    ``(D) the development of core data sets and 
                evaluation tools;
                    ``(E) program evaluations;
                    ``(F) the provision of information on drug abuse 
                education and prevention to the Secretary of Health and 
                Human Services for dissemination by the clearinghouse 
                for alcohol and drug abuse information established 
                under section 501(d)(16) of the Public Health Service 
                Act; and
                    ``(G) other activities that meet unmet needs 
                related to the purposes of this title and that are 
                undertaken in consultation with the Advisory Committee.

``SEC. 4124. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 4004(2) the Secretary may make grants to 
local educational agencies and community-based organizations for the 
purpose of providing assistance to localities most directly affected by 
hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this section may 
        be used to improve elementary and secondary educational 
        efforts, including--
                    ``(A) development of education and training 
                programs designed to prevent and to reduce the 
                incidence of crimes and conflicts motivated by hate;
                    ``(B) development of curricula for the purpose of 
                improving conflict or dispute resolution skills of 
                students, teachers, and administrators;
                    ``(C) development and acquisition of equipment and 
                instructional materials to meet the needs of, or 
                otherwise be part of, hate crime or conflict programs; 
                and
                    ``(D) professional training and development for 
                teachers and administrators on the causes, effects, and 
                resolutions of hate crimes or hate-based conflicts.
            ``(2) In general.--In order to be eligible to receive a 
        grant under this section for any fiscal year, a local 
        educational agency, or a local educational agency in 
        conjunction with a community-based organization, shall submit 
        an application to the Secretary in such form and containing 
        such information as the Secretary may reasonably require.
            ``(3) Requirements.--Each application under paragraph (2) 
        shall include--
                    ``(A) a request for funds for the purposes 
                described in this section;
                    ``(B) a description of the schools and communities 
                to be served by the grants; and
                    ``(C) assurances that Federal funds received under 
                this section shall be used to supplement, not supplant, 
                non-Federal funds.
            ``(4) Comprehensive plan.--Each application shall include a 
        comprehensive plan that contains--
                    ``(A) a description of the hate crime or conflict 
                problems within the schools or the community targeted 
                for assistance;
                    ``(B) a description of the program to be developed 
                or augmented by such Federal and matching funds;
                    ``(C) assurances that such program or activity 
                shall be administered by or under the supervision of 
                the applicant;
                    ``(D) procedures for the proper and efficient 
                administration of such program; and
                    ``(E) fiscal control and fund accounting procedures 
                as may be necessary to ensure prudent use, proper 
                disbursement, and accurate accounting of funds received 
                under this section.
    ``(c) Award of Grants.--
            ``(1) Selection of recipients.--The Secretary shall 
        consider the incidence of crimes and conflicts motivated by 
        bias in the targeted schools and communities in awarding grants 
        under this section.
            ``(2) Geographic distribution.--The Secretary shall 
        attempt, to the extent practicable, to achieve an equitable 
        geographic distribution of grant awards.
            ``(3) Dissemination of information.--The Secretary shall 
        attempt, to the extent practicable, to make available 
        information regarding successful hate crime prevention 
        programs, including programs established or expanded with 
        grants under this section.
    ``(d) Reports.--The Secretary shall submit to the Congress a report 
every two years which shall contain a detailed statement regarding 
grants and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

``SEC. 4125. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING 
              DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY SCHOOL 
              CHILDREN.

    ``(a) Grants Authorized.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants and contracts to elementary schools and secondary 
        schools that work with experts to enable the elementary schools 
        and secondary schools--
                    ``(A) to provide training to school administrators, 
                faculty, and staff, with respect to issues concerning 
                children experiencing domestic violence in dating 
                relationships and witnessing domestic violence, and the 
                impact of the violence described in this subparagraph 
                on children;
                    ``(B) to provide educational programming to 
                students regarding domestic violence and the impact of 
                experiencing or witnessing domestic violence on 
                children;
                    ``(C) to provide support services for students and 
                school personnel for the purpose of developing and 
                strengthening effective prevention and intervention 
                strategies with respect to issues concerning children 
                experiencing domestic violence in dating relationships 
                and witnessing domestic violence, and the impact of the 
                violence described in this subparagraph on children; 
                and
                    ``(D) to develop and implement school system 
                policies regarding appropriate, safe responses 
                identification and referral procedures for students who 
                are experiencing or witnessing domestic violence.
            ``(2) Award basis.--The Secretary shall award grants and 
        contracts under this section--
                    ``(A) on a competitive basis; and
                    ``(B) in a manner that ensures that such grants and 
                contracts are equitably distributed throughout a State 
                among elementary schools and secondary schools located 
                in rural, urban, and suburban areas in the State.
            ``(3) Policy dissemination.--The Secretary shall 
        disseminate to elementary schools and secondary schools any 
        Department of Education policy guidance regarding the 
        prevention of domestic violence and the impact of experiencing 
        or witnessing domestic violence on children.
    ``(b) Uses of Funds.--Funds provided under this section may be used 
for the following purposes:
            ``(1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff that 
        addresses issues concerning elementary school and secondary 
        school students who experience domestic violence in dating 
        relationships or witness or experience family violence, and the 
        impact of such violence on the students.
            ``(2) To provide education programs for elementary school 
        and secondary school students that are developmentally 
        appropriate for the students' grade levels and are designed to 
        meet any unique cultural and language needs of the particular 
        student populations.
            ``(3) To develop and implement elementary school and 
        secondary school system policies regarding appropriate, safe 
        responses, identification and referral procedures for students 
        who are experiencing or witnessing domestic violence and to 
        develop and implement policies on reporting and referral 
        procedures for these students.
            ``(4) To provide the necessary human resources to respond 
        to the needs of elementary school and secondary school students 
        and personnel who are faced with the issue of domestic 
        violence, such as a resource person who is either on-site or 
        on-call, and who is an expert.
            ``(5) To provide media center materials and educational 
        materials to elementary schools and secondary schools that 
        address issues concerning children who experience domestic 
        violence in dating relationships and witness domestic violence, 
        and the impact of the violence described in this paragraph on 
        the children.
            ``(6) To conduct evaluations to assess the impact of 
        programs and policies assisted under this section in order to 
        enhance the development of the programs.
    ``(c) Confidentiality.--Policies, programs, training materials, and 
evaluations developed and implemented under subsection (b) shall 
address issues of safety and confidentiality for the victim and the 
victim's family in a manner consistent with applicable Federal and 
State laws.
    ``(d) Application.--
            ``(1) In general.--To be eligible to be awarded a grant or 
        contract under this section for any fiscal year, an elementary 
        school or secondary school, in consultation with an expert, 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary shall prescribe.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) describe the need for funds provided under 
                the grant or contract and the plan for implementation 
                of any of the activities described in subsection (b);
                    ``(B) describe how the experts shall work in 
                consultation and collaboration with the elementary 
                school or secondary school;
                    ``(C) provide measurable goals for and expected 
                results from the use of the funds provided under the 
                grant or contract; and
                    ``(D) incorporate appropriate remuneration for 
                collaborating partners.
    ``(e) Applicability.--The provisions of this part (other than this 
section) shall not apply to this section.
    ``(f) Definitions.--In this section:
            ``(1) Domestic violence.--The term `domestic violence' has 
        the meaning given that term in section 2003 of title I of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
        3796gg-2)).
            ``(2) Experts.--The term `experts' means--
                    ``(A) experts on domestic violence, sexual assault, 
                and child abuse from the educational, legal, youth, 
                mental health, substance abuse, and victim advocacy 
                fields; and
                    ``(B) State and local domestic violence coalitions 
                and community-based youth organizations.
            ``(3) Witness domestic violence.--
                    ``(A) In general.--The term `witness domestic 
                violence' means to witness--
                            ``(i) an act of domestic violence that 
                        constitutes actual or attempted physical 
                        assault; or
                            ``(ii) a threat or other action that places 
                        the victim in fear of domestic violence.
                    ``(B) Witness.--In subparagraph (A), the term 
                `witness' means to--
                            ``(i) directly observe an act, threat, or 
                        action described in subparagraph (A), or the 
                        aftermath of that act, threat, or action; or
                            ``(ii) be within earshot of an act, threat, 
                        or action described in subparagraph (A), or the 
                        aftermath of that act, threat, or action.

                    ``Subpart 3--General Provisions

``SEC. 4131. DEFINITIONS.

    ``In this part:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization 
        which is representative of a community or significant segments 
        of a community and which provides educational or related 
        services to individuals in the community.
            ``(2) Drug and violence prevention.--The term `drug and 
        violence prevention' means--
                    ``(A) with respect to drugs, prevention, early 
                intervention, rehabilitation referral, or education 
                related to the illegal use of alcohol and the use of 
                controlled, illegal, addictive, or harmful substances, 
                including inhalants and anabolic steroids;
                    ``(B) prevention, early intervention, smoking 
                cessation activities, or education, related to the use 
                of tobacco by children and youth eligible for services 
                under this title; and
                    ``(C) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, including 
                sexual harassment and abuse, and victimization 
                associated with prejudice and intolerance, on school 
                premises, going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is free of 
                weapons and fosters individual responsibility and 
                respect for the rights of others.
            ``(3) Hate crime.--The term `hate crime' means a crime as 
        described in section 1(b) of the Hate Crime Statistics Act of 
        1990.
            ``(4) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by one 
        or more nonprofit corporations or associations, no part of the 
        net earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
            ``(5) Objectively measurable goals.--The term `objectively 
        measurable goals' means prevention programming goals defined 
        through use of quantitative epidemiological data measuring the 
        prevalence of alcohol, tobacco, and other drug use, violence, 
        and the prevalence of risk and protective factors predictive of 
        these behaviors, collected through a variety of methods and 
        sources known to provide high quality data.
            ``(6) Protective factor, buffer, or asset.--The terms 
        `protective factor', `buffer', and `asset' mean any one of a 
        number of the community, school, family, or peer-individual 
        domains that are known, through prospective, longitudinal 
        research efforts, or which are grounded in a well-established 
        theoretical model of prevention, and have been shown to prevent 
        alcohol, tobacco, or illicit drug use, as well as violent 
        behavior, by youth in the community, and which promote positive 
        youth development.
            ``(7) Risk factor.--The term `risk factor' means any one of 
        a number of characteristics of the community, school, family, 
        or peer-individual domains that are known, through prospective, 
        longitudinal research efforts, to be predictive of alcohol, 
        tobacco, and illicit drug use, as well as violent behavior, by 
        youth in the school and community.
            ``(8) School-aged population.--The term `school-aged 
        population' means the population aged five through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
            ``(9) School personnel.--The term `school personnel' 
        includes teachers, administrators, counselors, social workers, 
        psychologists, nurses, librarians, and other support staff who 
        are employed by a school or who perform services for the school 
        on a contractual basis.

``SEC. 4132. MATERIALS.

    ``(a) `Illegal and Harmful' Message.--Drug prevention programs 
supported under this part shall convey a clear and consistent message 
that the illegal use of alcohol and other drugs is illegal and harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part, but may 
evaluate the effectiveness of such curricula and other strategies in 
drug and violence prevention.

``SEC. 4133. PROHIBITED USES OF FUNDS.

    ``No funds under this part may be used for--
            ``(1) construction (except for minor remodeling needed to 
        accomplish the purposes of this part); and
            ``(2) medical services, drug treatment or rehabilitation, 
        except for pupil services or referral to treatment for students 
        who are victims of or witnesses to crime or who use alcohol, 
        tobacco, or drugs.

``SEC. 4134. QUALITY RATING.

    ``(a) In General.--The chief executive officer of each State, or in 
the case of a State in which the constitution or law of such State 
designates another individual, entity, or agency in the State to be 
responsible for education activities, such individual, entity, or 
agency, is authorized and encouraged--
            ``(1) to establish a standard of quality for drug, alcohol, 
        and tobacco prevention programs implemented in public 
        elementary schools and secondary schools in the State in 
        accordance with subsection (b); and
            ``(2) to identify and designate, upon application by a 
        public elementary school or secondary school, any such school 
        that achieves such standard as a quality program school.
    ``(b) Criteria.--The standard referred to in subsection (a) shall 
address, at a minimum--
            ``(1) a comparison of the rate of illegal use of drugs, 
        alcohol, and tobacco by students enrolled in the school for a 
        period of time to be determined by the chief executive officer 
        of the State;
            ``(2) the rate of suspensions or expulsions of students 
        enrolled in the school for drug, alcohol, or tobacco-related 
        offenses;
            ``(3) the effectiveness of the drug, alcohol, or tobacco 
        prevention program as proven by research;
            ``(4) the involvement of parents and community members in 
        the design of the drug, alcohol, and tobacco prevention 
        program; and
            ``(5) the extent of review of existing community drug, 
        alcohol, and tobacco prevention programs before implementation 
        of the public school program.
    ``(c) Request for Quality Program School Designation.--A school 
that wishes to receive a quality program school designation shall 
submit a request and documentation of compliance with this section to 
the chief executive officer of the State or the individual, entity, or 
agency described in subsection (a), as the case may be.
    ``(d) Public Notification.--Not less than once a year, the chief 
executive officer of each State or the individual, entity, or agency 
described in subsection (a), as the case may be, shall make available 
to the public a list of the names of each public school in the State 
that has received a quality program school designation in accordance 
with this section.''.

SEC. 402. GUN-FREE REQUIREMENTS.

    Title IV (20 U.S.C. 7101 et seq.) is amended by adding at the end 
the following:

                        ``PART B--GUN POSSESSION

``SEC. 4201. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This part may be cited as the ``Gun-Free 
Schools Act of 1994''.
    ``(b) Requirements.--
            ``(1) In general.--Each State receiving Federal funds under 
        this Act shall have in effect a State law requiring local 
        educational agencies to expel from school for a period of not 
        less than one year a student who is determined to have brought 
        a weapon to a school under the jurisdiction of local 
        educational agencies in that State, except that such State law 
        shall allow the chief administering officer of a local 
        educational agency to modify such expulsion requirement for a 
        student on a case-by-case basis.
            ``(2) Construction.--Nothing in this part shall be 
        construed to prevent a State from allowing a local educational 
        agency that has expelled a student from such a student's 
        regular school setting from providing educational services to 
        such student in an alternative setting.
            ``(3) Definition.--For the purpose of this section, the 
        term `weapon' means a firearm as such term is defined in 
        section 921(a) of title 18, United States Code.
    ``(c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
    ``(d) Report to State.--Each local educational agency requesting 
assistance from the State educational agency that is to be provided 
from funds made available to the State under this Act shall provide to 
the State, in the application requesting such assistance--
            ``(1) an assurance that such local educational agency is in 
        compliance with the State law required by subsection (b); and
            ``(2) a description of the circumstances surrounding any 
        expulsions imposed under the State law required by subsection 
        (b), including--
                    ``(A) the name of the school concerned;
                    ``(B) the number of students expelled from such 
                school; and
                    ``(C) the type of weapons concerned.
    ``(e) Reporting.--Each State shall report the information described 
in subsection (d) to the Secretary on an annual basis.

``SEC. 4202. POLICY REGARDING CRIMINAL JUSTICE SYSTEM REFERRAL.

    ``(a) In General.--No funds shall be made available under this Act 
to any local educational agency unless such agency has a policy 
requiring referral to the criminal justice or juvenile delinquency 
system of any student who brings a firearm or weapon to a school served 
by such agency.
    ``(b) Definitions.--For the purpose of this section, the terms 
`firearm' and `school' have the meanings given the terms in section 
921(a) of title 18, United States Code.''.

SEC. 403. SCHOOL SAFETY AND VIOLENCE PREVENTION.

    (a) In General.--Title IV (20 U.S.C. 7101 et seq.) is further 
amended by adding at the end the following:

            ``PART C--SCHOOL SAFETY AND VIOLENCE PREVENTION

``SEC. 4301. SCHOOL SAFETY AND VIOLENCE PREVENTION.

    ``Subject to this title, and subpart 4 of part B of title V, funds 
made available under this title and such subpart may be used for--
            ``(1) training, including in-service training, for school 
        personnel (including custodians and bus drivers), with respect 
        to--
                    ``(A) the identification of potential threats, such 
                as illegal weapons and explosive devices;
                    ``(B) crisis preparedness and intervention 
                procedures; and
                    ``(C) emergency response;
            ``(2) training for parents, teachers, school personnel and 
        other interested members of the community regarding the 
        identification and responses to early warning signs of troubled 
        and violent youth;
            ``(3) innovative scientifically based research delinquency 
        and violence prevention programs, including--
                    ``(A) school antiviolence programs; and
                    ``(B) mentoring programs;
            ``(4) comprehensive security assessments;
            ``(5) in accordance with section 4116(c), the purchase of 
        school security equipment and technologies such as--
                    ``(A) metal detectors;
                    ``(B) electronic locks; and
                    ``(C) surveillance cameras;
            ``(6) collaborative efforts with community-based 
        organizations, including faith-based organizations, statewide 
        consortia, and law enforcement agencies, that have demonstrated 
        expertise in providing effective, scientifically based research 
        violence prevention and intervention programs for school-aged 
        children;
            ``(7) providing assistance to States, local education 
        agencies, or schools to establish school uniform policies;
            ``(8) school resource officers, including community 
        policing officers; and
            ``(9) other innovative, local responses that are consistent 
        with reducing incidents of school violence and improving the 
        educational atmosphere of the classroom.

``SEC. 4302. SCHOOL UNIFORMS.

    ``(a) Construction.--Nothing in this part shall be construed to 
prohibit any State, local education agency, or school from establishing 
a school uniform policy.
    ``(b) Funding.--Subject to this title and subpart 4 of part B of 
title V, funds provided under this title and such subpart may be used 
for establishing a uniform policy.

``SEC. 4303. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.

    ``(a) Nonapplication of Provisions.--This section shall not apply 
to any disciplinary records with respect to a suspension or expulsion 
that are transferred from a private, parochial or other nonpublic 
school, person, institution, or other entity, that provides education 
below the college level.
    ``(b) Disciplinary Records.--In accordance with the Family 
Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g), not later 
than 2 years after the date of enactment of this part, each State 
receiving Federal funds under this Act shall provide an assurance to 
the Secretary that the State has a procedure in place to facilitate the 
transfer of disciplinary records, with respect to a suspension or 
expulsion, by local educational agencies to any private or public 
elementary school or secondary school for any student who is enrolled 
or seeks, intends, or is instructed to enroll, on a full- or part-time 
basis, in the school.''.
    (b) Background Checks.--Section 5(9) of the National Child 
Protection Act of 1993 (42 U.S.C. 5119c(9)) is amended--
            (1) in subparagraph (A)(i), by inserting ``(including an 
        individual who is employed by a school in any capacity, 
        including as a child care provider, a teacher, or another 
        member of school personnel)'' before the semicolon; and
            (2) in subparagraph (B)(i), by inserting ``(including an 
        individual who seeks to be employed by a school in any 
        capacity, including as a child care provider, a teacher, or 
        another member of school personnel)'' before the semicolon.

SEC. 404. ENVIRONMENTAL TOBACCO SMOKE.

    Title IV (20 U.S.C. 7101 et seq.) is further amended by adding at 
the end the following:

                 ``PART D--ENVIRONMENTAL TOBACCO SMOKE

``SEC. 4401. SHORT TITLE.

    ``This part may be cited as the `Pro-Children Act of 2001'.

``SEC. 4402. DEFINITIONS.

    ``As used in this part:
            ``(1) Children.--The term `children' means individuals who 
        have not attained the age of 18.
            ``(2) Children's services.--The term `children's services' 
        means the provision on a routine or regular basis of health, 
        day care, education, or library services--
                    ``(A) that are funded, after the date of enactment 
                of the Better Education for Students and Teachers Act, 
                directly by the Federal Government or through State or 
                local governments, by Federal grant, loan, loan 
                guarantee, or contract programs--
                            ``(i) administered by either the Secretary 
                        of Health and Human Services or the Secretary 
                        of Education (other than services provided and 
                        funded solely under titles XVIII and XIX of the 
                        Social Security Act); or
                            ``(ii) administered by the Secretary of 
                        Agriculture in the case of a clinic (as defined 
                        in part 246.2 of title 7, Code of Federal 
                        Regulations (or any corresponding similar 
                        regulation or ruling)) under section 17(b)(6) 
                        of the Child Nutrition Act of 1966; or
                    ``(B) that are provided in indoor facilities that 
                are constructed, operated, or maintained with such 
                Federal funds, as determined by the appropriate head of 
                a Federal agency in any enforcement action carried out 
                under this part,
        except that nothing in clause (ii) of subparagraph (A) is 
        intended to include facilities (other than clinics) where 
        coupons are redeemed under the Child Nutrition Act of 1966.
            ``(3) Indoor facility.--The term `indoor facility' means a 
        building that is enclosed.
            ``(4) Person.--The term `person' means any State or local 
        subdivision of a State, agency of such State or subdivision, 
        corporation, or partnership that owns or operates or otherwise 
        controls and provides children's services or any individual who 
        owns or operates or otherwise controls and provides such 
        services.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.

``SEC. 4403. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

    ``(a) Prohibition.--After the date of enactment of the Better 
Education for Students and Teachers Act, no person shall permit smoking 
within any indoor facility owned or leased or contracted for, and 
utilized, by such person for provision of routine or regular 
kindergarten, elementary, or secondary education or library services to 
children.
    ``(b) Additional Prohibition.--
            ``(1) In general.--After the date of enactment of the 
        Better Education for Students and Teachers Act, no person shall 
        permit smoking within any indoor facility (or portion of such a 
        facility) owned or leased or contracted for, and utilized by, 
        such person for the provision of regular or routine health care 
        or day care or early childhood development (Head Start) 
        services.
            ``(2) Exception.--Paragraph (1) shall not apply to--
                    ``(A) any portion of such facility that is used for 
                inpatient hospital treatment of individuals dependent 
                on, or addicted to, drugs or alcohol; and
                    ``(B) any private residence.
    ``(c) Federal Agencies.--
            ``(1) Kindergarten, elementary, or secondary education or 
        library services.--After the date of enactment of the Better 
        Education for Students and Teachers Act, no Federal agency 
        shall permit smoking within any indoor facility in the United 
        States operated by such agency, directly or by contract, to 
        provide routine or regular kindergarten, elementary, or 
        secondary education or library services to children.
            ``(2) Health or day care or early childhood development 
        services.--
                    ``(A) In general.--After the date of enactment of 
                the Better Education for Students and Teachers Act, no 
                Federal agency shall permit smoking within any indoor 
                facility (or portion of such facility) operated by such 
                agency, directly or by contract, to provide routine or 
                regular health or day care or early childhood 
                development (Head Start) services to children.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to--
                            ``(i) any portion of such facility that is 
                        used for inpatient hospital treatment of 
                        individuals dependent on, or addicted to, drugs 
                        or alcohol; and
                            ``(ii) any private residence.
            ``(3) Application of provisions.--The provisions of 
        paragraph (2) shall also apply to the provision of such routine 
        or regular kindergarten, elementary or secondary education or 
        library services in the facilities described in paragraph (2) 
        not subject to paragraph (1).
    ``(d) Notice.--The prohibitions in subsections (a) through (c) 
shall be published in a notice in the Federal Register by the Secretary 
(in consultation with the heads of other affected agencies) and by such 
agency heads in funding arrangements involving the provision of 
children's services administered by such heads. Such prohibitions shall 
be effective 90 days after such notice is published, or 270 days after 
the date of enactment of the Better Education for Students and Teachers 
Act, whichever occurs first.
    ``(e) Civil Penalties.--
            ``(1) In general.--Any failure to comply with a prohibition 
        in this section shall be considered to be a violation of this 
        section and any person subject to such prohibition who commits 
        such violation may be liable to the United States for a civil 
        penalty in an amount not to exceed $1,000 for each violation, 
        or may be subject to an administrative compliance order, or 
        both, as determined by the Secretary. Each day a violation 
        continues shall constitute a separate violation. In the case of 
        any civil penalty assessed under this section, the total amount 
        shall not exceed the amount of Federal funds received by such 
        person for the fiscal year in which the continuing violation 
        occurred. For the purpose of the prohibition in subsection (c), 
        the term `person', as used in this paragraph, shall mean the 
        head of the applicable Federal agency or the contractor of such 
        agency providing the services to children.
            ``(2) Administrative proceeding.--A civil penalty may be 
        assessed in a written notice, or an administrative compliance 
        order may be issued under paragraph (1), by the Secretary only 
        after an opportunity for a hearing in accordance with section 
        554 of title 5, United States Code. Before making such 
        assessment or issuing such order, or both, the Secretary shall 
        give written notice of the assessment or order to such person 
        by certified mail with return receipt and provide information 
        in the notice of an opportunity to request in writing, not 
        later than 30 days after the date of receipt of such notice, 
        such hearing. The notice shall reasonably describe the 
        violation and be accompanied with the procedures for such 
        hearing and a simple form that may be used to request such 
        hearing if such person desires to use such form. If a hearing 
        is requested, the Secretary shall establish by such certified 
        notice the time and place for such hearing, which shall be 
        located, to the greatest extent possible, at a location 
        convenient to such person. The Secretary (or the Secretary's 
        designee) and such person may consult to arrange a suitable 
        date and location where appropriate.
            ``(3) Circumstances affecting penalty or order.--In 
        determining the amount of the civil penalty or the nature of 
        the administrative compliance order, the Secretary shall take 
        into account, as appropriate--
                    ``(A) the nature, circumstances, extent, and 
                gravity of the violation;
                    ``(B) with respect to the violator, any good faith 
                efforts to comply, the importance of achieving early 
                and permanent compliance, the ability to pay or comply, 
                the effect of the penalty or order on the ability to 
                continue operation, any prior history of the same kind 
                of violation, the degree of culpability, and any 
                demonstration of willingness to comply with the 
                prohibitions of this section in a timely manner; and
                    ``(C) such other matters as justice may require.
            ``(4) Modification.--The Secretary may, as appropriate, 
        compromise, modify, or remit, with or without conditions, any 
        civil penalty or administrative compliance order. In the case 
        of a civil penalty, the amount, as finally determined by the 
        Secretary or agreed upon in compromise, may be deducted from 
        any sums that the United States or the agencies or 
        instrumentalities of the United States owe to the person 
        against whom the penalty is assessed.
            ``(5) Petition for review.--Any person aggrieved by a 
        penalty assessed or an order issued, or both, by the Secretary 
        under this section may file a petition for judicial review of 
        the order with the United States Court of Appeals for the 
        District of Columbia Circuit or for any other circuit in which 
        the person resides or transacts business. Such person shall 
        provide a copy of the petition to the Secretary or the 
        Secretary's designee. The petition shall be filed within 30 
        days after the Secretary's assessment or order, or both, are 
        final and have been provided to such person by certified mail. 
        The Secretary shall promptly provide to the court a certified 
        copy of the transcript of any hearing held under this section 
        and a copy of the notice or order.
            ``(6) Failure to comply.--If a person fails to pay an 
        assessment of a civil penalty or comply with an order, after 
        the assessment or order, or both, are final under this section, 
        or after a court has entered a final judgment under paragraph 
        (5) in favor of the Secretary, the Attorney General, at the 
        request of the Secretary, shall recover the amount of the civil 
        penalty (plus interest at prevailing rates from the day the 
        assessment or order, or both, are final) or enforce the order 
        in an action brought in the appropriate district court of the 
        United States. In such action, the validity and appropriateness 
        of the penalty or order or the amount of the penalty shall not 
        be subject to review.

``SEC. 4404. PREEMPTION.

    ``Nothing in this part is intended to preempt any provision of law 
of a State or political subdivision of a State that is more restrictive 
than a provision of this part.''.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

SEC. 501. PUBLIC SCHOOL CHOICE AND FLEXIBILITY.

    Title V (20 U.S.C. 7301 et seq.) is amended to read as follows:

            ``TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

                     ``PART A--PUBLIC SCHOOL CHOICE

                      ``Subpart 1--Charter Schools

``SEC. 5111. PURPOSE.

    ``It is the purpose of this subpart to increase national 
understanding of the charter schools model by--
            ``(1) providing financial assistance for the planning, 
        program design and initial implementation of charter schools;
            ``(2) evaluating the effects of such schools, including the 
        effects on students, student achievement, staff, and parents; 
        and
            ``(3) expanding the number of high-quality charter schools 
        available to students across the Nation.

``SEC. 5112. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
5113 to enable such agencies to conduct a charter school grant program 
in accordance with this subpart.
    ``(b) Special Rule.--If a State educational agency elects not to 
participate in the program authorized by this subpart or does not have 
an application approved under section 5113, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 5113(c).
    ``(c) Program Periods.--
            ``(1) Grants to states.--Grants awarded to State 
        educational agencies under this subpart shall be awarded for a 
        period of not more than 3 years.
            ``(2) Grants to eligible applicants.--Grants awarded by the 
        Secretary to eligible applicants or subgrants awarded by State 
        educational agencies to eligible applicants under this subpart 
        shall be awarded for a period of not more than 3 years, of 
        which the eligible applicant may use--
                    ``(A) not more than 18 months for planning and 
                program design;
                    ``(B) not more than 2 years for the initial 
                implementation of a charter school; and
                    ``(C) not more than 2 years to carry out 
                dissemination activities described in section 
                5114(f)(6)(B).
    ``(d) Limitation.--A charter school may not receive--
            ``(1) more than one grant for activities described in 
        subparagraphs (A) and (B) of subsection (c)(2); or
            ``(2) more than one grant for activities under subparagraph 
        (C) of subsection (c)(2).
    ``(e) Priority Treatment.--
            ``(1) In general.--In awarding grants under this subpart 
        for fiscal year 2002 or any succeeding fiscal year from any 
        funds appropriated under section 5121, the Secretary shall give 
        priority to States to the extent that the States meet the 
        criteria described in paragraph (2) and one or more of the 
        criteria described in subparagraph (A), (B), or (C) of 
        paragraph (3).
            ``(2) Review and evaluation priority criteria.--The 
        criteria referred to in paragraph (1) is that the State 
        provides for periodic review and evaluation by the authorized 
        public chartering agency of each charter school, at least once 
        every 5 years unless required more frequently by State law, to 
        determine whether the charter school is meeting the terms of 
        the school's charter, and is meeting or exceeding the academic 
        performance requirements and goals for charter schools as set 
        forth under State law or the school's charter.
            ``(3) Priority criteria.--The criteria referred to in 
        paragraph (1) are the following:
                    ``(A) The State has demonstrated progress, in 
                increasing the number of high quality charter schools 
                that are held accountable in the terms of the schools' 
                charters for meeting clear and measurable objectives 
                for the educational progress of the students attending 
                the schools, in the period prior to the period for 
                which a State educational agency or eligible applicant 
                applies for a grant under this subpart.
                    ``(B) The State--
                            ``(i) provides for one authorized public 
                        chartering agency that is not a local 
                        educational agency, such as a State chartering 
                        board, for each individual or entity seeking to 
                        operate a charter school pursuant to such State 
                        law; or
                            ``(ii) in the case of a State in which 
                        local educational agencies are the only 
                        authorized public chartering agencies, allows 
                        for an appeals process for the denial of an 
                        application for a charter school.
                    ``(C) The State ensures that each charter school 
                has a high degree of autonomy over the charter school's 
                budgets and expenditures.
    ``(f) Amount Criteria.--In determining the amount of a grant to be 
awarded under this subpart to a State educational agency, the Secretary 
shall take into consideration the number of charter schools that are 
operating, or are approved to open, in the State.

``SEC. 5113. APPLICATIONS.

    ``(a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this subpart shall 
submit to the Secretary an application at such time, in such manner, 
and containing or accompanied by such information as the Secretary may 
require.
    ``(b) Contents of a State Educational Agency Application.--Each 
application submitted pursuant to subsection (a) shall--
            ``(1) describe the objectives of the State educational 
        agency's charter school grant program and a description of how 
        such objectives will be fulfilled, including steps taken by the 
        State educational agency to inform teachers, parents, and 
        communities of the State educational agency's charter school 
        grant program; and
            ``(2) describe how the State educational agency--
                    ``(A) will inform each charter school in the State 
                regarding--
                            ``(i) Federal funds that the charter school 
                        is eligible to receive; and
                            ``(ii) Federal programs in which the 
                        charter school may participate;
                    ``(B) will ensure that each charter school in the 
                State receives the charter school's commensurate share 
                of Federal education funds that are allocated by 
                formula each year, including during the first year of 
                operation of the charter school; and
                    ``(C) will disseminate best or promising practices 
                of charter schools to each local educational agency in 
                the State; and
            ``(3) contain assurances that the State educational agency 
        will require each eligible applicant desiring to receive a 
        subgrant to submit an application to the State educational 
        agency containing--
                    ``(A) a description of the educational program to 
                be implemented by the proposed charter school, 
                including--
                            ``(i) how the program will enable all 
                        students to meet challenging State student 
                        performance standards;
                            ``(ii) the grade levels or ages of children 
                        to be served; and
                            ``(iii) the curriculum and instructional 
                        practices to be used;
                    ``(B) a description of how the charter school will 
                be managed;
                    ``(C) a description of--
                            ``(i) the objectives of the charter school; 
                        and
                            ``(ii) the methods by which the charter 
                        school will determine its progress toward 
                        achieving those objectives;
                    ``(D) a description of the administrative 
                relationship between the charter school and the 
                authorized public chartering agency;
                    ``(E) a description of how parents and other 
                members of the community will be involved in the 
                planning, program design and implementation of the 
                charter school;
                    ``(F) a description of how the authorized public 
                chartering agency will provide for continued operation 
                of the school once the Federal grant has expired, if 
                such agency determines that the school has met the 
                objectives described in subparagraph (C)(i);
                    ``(G) a request and justification for waivers of 
                any Federal statutory or regulatory provisions that the 
                applicant believes are necessary for the successful 
                operation of the charter school, and a description of 
                any State or local rules, generally applicable to 
                public schools, that will be waived for, or otherwise 
                not apply to, the school;
                    ``(H) a description of how the subgrant funds or 
                grant funds, as appropriate, will be used, including a 
                description of how such funds will be used in 
                conjunction with other Federal programs administered by 
                the Secretary;
                    ``(I) a description of how students in the 
                community will be--
                            ``(i) informed about the charter school; 
                        and
                            ``(ii) given an equal opportunity to attend 
                        the charter school;
                    ``(J) an assurance that the eligible applicant will 
                annually provide the Secretary and the State 
                educational agency such information as may be required 
                to determine if the charter school is making 
                satisfactory progress toward achieving the objectives 
                described in subparagraph (C)(i);
                    ``(K) an assurance that the applicant will 
                cooperate with the Secretary and the State educational 
                agency in evaluating the program assisted under this 
                subpart;
                    ``(L) a description of how a charter school that is 
                considered a local educational agency under State law, 
                or a local educational agency in which a charter school 
                is located, will comply with sections 613(a)(5) and 
                613(e)(1)(B) of the Individuals with Disabilities 
                Education Act;
                    ``(M) if the eligible applicant desires to use 
                subgrant funds for dissemination activities under 
                section 5112(c)(2)(C), a description of those 
                activities and how those activities will involve 
                charter schools and other public schools, local 
                educational agencies, developers, and potential 
                developers; and
                    ``(N) such other information and assurances as the 
                Secretary and the State educational agency may require.
    ``(c) Contents of Eligible Applicant Application.--Each eligible 
applicant desiring a grant pursuant to section 5112(b) shall submit an 
application to the State educational agency or Secretary, respectively, 
at such time, in such manner, and accompanied by such information as 
the State educational agency or Secretary, respectively, may reasonably 
require.
    ``(d) Contents of Application.--Each application submitted pursuant 
to subsection (c) shall contain--
            ``(1) the information and assurances described in 
        subparagraphs (A) through (N) of subsection (b)(3), except that 
        for purposes of this subsection subparagraphs (J), (K), and (N) 
        of such subsection shall be applied by striking `and the State 
        educational agency' each place such term appears; and
            ``(2) assurances that the State educational agency--
                    ``(A) will grant, or will obtain, waivers of State 
                statutory or regulatory requirements; and
                    ``(B) will assist each subgrantee in the State in 
                receiving a waiver under section 5114(e).

``SEC. 5114. ADMINISTRATION.

    ``(a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies under this 
subpart on the basis of the quality of the applications submitted under 
section 5113(b), after taking into consideration such factors as--
            ``(1) the contribution that the charter schools grant 
        program will make to assisting educationally disadvantaged and 
        other students to achieving State content standards and State 
        student performance standards and, in general, a State's 
        education improvement plan;
            ``(2) the degree of flexibility afforded by the State 
        educational agency to charter schools under the State's charter 
        schools law;
            ``(3) the ambitiousness of the objectives for the State 
        charter school grant program;
            ``(4) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(5) the likelihood that the charter school grant program 
        will meet those objectives and improve educational results for 
        students;
            ``(6) the number of high quality charter schools created 
        under this subpart in the State; and
            ``(7) in the case of State educational agencies that 
        propose to use grant funds to support dissemination activities 
        under section 5112(c)(2)(C), the quality of those activities 
        and the likelihood that those activities will improve student 
        achievement.
    ``(b) Selection Criteria for Eligible Applicants.--The Secretary 
shall award grants to eligible applicants under this subpart on the 
basis of the quality of the applications submitted under section 
5113(c), after taking into consideration such factors as--
            ``(1) the quality of the proposed curriculum and 
        instructional practices;
            ``(2) the degree of flexibility afforded by the State 
        educational agency and, if applicable, the local educational 
        agency to the charter school;
            ``(3) the extent of community support for the application;
            ``(4) the ambitiousness of the objectives for the charter 
        school;
            ``(5) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(6) the likelihood that the charter school will meet 
        those objectives and improve educational results for students; 
        and
            ``(7) in the case of an eligible applicant that proposes to 
        use grant funds to support dissemination activities under 
        section 5112(c)(2)(C), the quality of those activities and the 
        likelihood that those activities will improve student 
        achievement.
    ``(c) Peer Review.--The Secretary, and each State educational 
agency receiving a grant under this subpart, shall use a peer review 
process to review applications for assistance under this subpart.
    ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this subpart, shall award 
subgrants under this subpart in a manner that, to the extent possible, 
ensures that such grants and subgrants--
            ``(1) are distributed throughout different areas of the 
        Nation and each State, including urban and rural areas; and
            ``(2) will assist charter schools representing a variety of 
        educational approaches, such as approaches designed to reduce 
        school size.
    ``(e) Waivers.--The Secretary may waive any statutory or regulatory 
requirement over which the Secretary exercises administrative authority 
except any such requirement relating to the elements of a charter 
school described in section 5120(1), if--
            ``(1) the waiver is requested in an approved application 
        under this subpart; and
            ``(2) the Secretary determines that granting such a waiver 
        will promote the purpose of this subpart.
    ``(f) Use of Funds.--
            ``(1) State educational agencies.--Each State educational 
        agency receiving a grant under this subpart shall use such 
        grant funds to award subgrants to one or more eligible 
        applicants in the State to enable such applicant to plan and 
        implement a charter school in accordance with this subpart, 
        except that the State educational agency may reserve not more 
        than 10 percent of the grant funds to support dissemination 
        activities described in paragraph (6).
            ``(2) Eligible applicants.--Each eligible applicant 
        receiving funds from the Secretary or a State educational 
        agency shall use such funds to plan and implement a charter 
        school, or to disseminate information about the charter school 
        and successful practices in the charter school, in accordance 
        with this subpart.
            ``(3) Allowable activities.--An eligible applicant 
        receiving a grant or subgrant under this subpart may use the 
        grant or subgrant funds only for--
                    (A) post-award planning and design of the 
                educational program, which may include--
                            ``(i) refinement of the desired educational 
                        results and of the methods for measuring 
                        progress toward achieving those results; and
                            ``(ii) professional development of teachers 
                        and other staff who will work in the charter 
                        school; and
                    ``(B) initial implementation of the charter school, 
                which may include--
                            ``(i) informing the community about the 
                        school;
                            ``(ii) acquiring necessary equipment and 
                        educational materials and supplies;
                            ``(iii) acquiring or developing curriculum 
                        materials; and
                            ``(iv) other initial operational costs that 
                        cannot be met from State or local sources.
            ``(4) Administrative expenses.--Each State educational 
        agency receiving a grant pursuant to this subpart may reserve 
        not more than 5 percent of such grant funds for administrative 
        expenses associated with the charter school grant program 
        assisted under this subpart.
            ``(5) Revolving loan funds.--Each State educational agency 
        receiving a grant pursuant to this subpart may reserve not more 
        than 10 percent of the grant amount for the establishment of a 
        revolving loan fund. Such fund may be used to make loans to 
        eligible applicants that have received a subgrant under this 
        subpart, under such terms as may be determined by the State 
        educational agency, for the initial operation of the charter 
        school grant program of such recipient until such time as the 
        recipient begins receiving ongoing operational support from 
        State or local financing sources.
            ``(6) Dissemination.--
                    ``(A) In general.--A charter school may apply for 
                funds under this subpart, whether or not the charter 
                school has applied for or received funds under this 
                subpart for planning, program design, or 
                implementation, to carry out the activities described 
                in subparagraph (B) if the charter school has been in 
                operation for at least 3 consecutive years and has 
                demonstrated overall success, including--
                            ``(i) substantial progress in improving 
                        student achievement;
                            ``(ii) high levels of parent satisfaction; 
                        and
                            ``(iii) the management and leadership 
                        necessary to overcome initial start-up problems 
                        and establish a thriving, financially viable 
                        charter school.
                    ``(B) Activities.--A charter school described in 
                subparagraph (A) may use funds reserved under paragraph 
                (1) to assist other schools in adapting the charter 
                school's program (or certain aspects of the charter 
                school's program), or to disseminate information about 
                the charter school, through such activities as--
                            ``(i) assisting other individuals with the 
                        planning and start-up of one or more new public 
                        schools, including charter schools, that are 
                        independent of the assisting charter school and 
                        the assisting charter school's developers, and 
                        that agree to be held to at least as high a 
                        level of accountability as the assisting 
                        charter school;
                            ``(ii) developing partnerships with other 
                        public schools, including charter schools, 
                        designed to improve student performance in each 
                        of the schools participating in the 
                        partnership;
                            ``(iii) developing curriculum materials, 
                        assessments, and other materials that promote 
                        increased student achievement and are based on 
                        successful practices within the assisting 
                        charter school; and
                            ``(iv) conducting evaluations and 
                        developing materials that document the 
                        successful practices of the assisting charter 
                        school and that are designed to improve student 
                        performance in other schools.
    ``(g) Tribally Controlled Schools.--Each State that receives a 
grant under this subpart and designates a tribally controlled school as 
a charter school shall not consider payments to a school under the 
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in 
determining--
            ``(1) the eligibility of the school to receive any other 
        Federal, State, or local aid; or
            ``(2) the amount of such aid.

``SEC. 5115. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary shall reserve for each fiscal year 
the greater of 5 percent or $5,000,000 of the amount appropriated to 
carry out this subpart, except that in no fiscal year shall the total 
amount so reserved exceed $8,000,000, to carry out the following 
activities:
            ``(1) To provide charter schools, either directly or 
        through State educational agencies, with--
                    ``(A) information regarding--
                            ``(i) Federal funds that charter schools 
                        are eligible to receive; and
                            ``(ii) other Federal programs in which 
                        charter schools may participate; and
                    ``(B) assistance in applying for Federal education 
                funds that are allocated by formula, including 
                assistance with filing deadlines and submission of 
                applications.
            ``(2) To provide for the completion of the 4-year national 
        study (which began in 1995) of charter schools.
            ``(3) To provide for other evaluations or studies that 
        include the evaluation of the impact of charter schools on 
        student achievement, including information regarding--
                    ``(A) students attending charter schools reported 
                on the basis of race, age, disability, gender, limited 
                English proficiency, and previous enrollment in public 
                school; and
                    ``(B) the professional qualifications of teachers 
                within a charter school and the turnover of the 
                teaching force.
            ``(4) To provide--
                    ``(A) information to applicants for assistance 
                under this subpart;
                    ``(B) assistance to applicants for assistance under 
                this subpart with the preparation of applications under 
                section 5113;
                    ``(C) assistance in the planning and startup of 
                charter schools;
                    ``(D) training and technical assistance to existing 
                charter schools; and
                    ``(E) for the dissemination to other public schools 
                of best or promising practices in charter schools.
            ``(5) To provide (including through the use of one or more 
        contracts that use a competitive bidding process) for the 
        collection of information regarding the financial resources 
        available to charter schools, including access to private 
        capital, and to widely disseminate to charter schools any such 
        relevant information and model descriptions of successful 
        programs.
    ``(b) Construction.--Nothing in this section shall be construed to 
require charter schools to collect any data described in subsection 
(a).

``SEC. 5116. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR 
              SUCCESSIVE ENROLLMENT EXPANSIONS.

    ``(a) In General.--For purposes of the allocation to schools by the 
States or their agencies of funds under part A of title I, and any 
other Federal funds which the Secretary allocates to States on a 
formula basis, the Secretary and each State educational agency shall 
take such measures not later than 6 months after the date of the 
enactment of the Charter School Expansion Act of 1998 as are necessary 
to ensure that every charter school receives the Federal funding for 
which the charter school is eligible not later than 5 months after the 
charter school first opens, notwithstanding the fact that the identity 
and characteristics of the students enrolling in that charter school 
are not fully and completely determined until that charter school 
actually opens. The measures similarly shall ensure that every charter 
school expanding its enrollment in any subsequent year of operation 
receives the Federal funding for which the charter school is eligible 
not later than 5 months after such expansion.
    ``(b) Adjustment and Late Openings.--
            ``(1) In general.--The measures described in subsection (a) 
        shall include provision for appropriate adjustments, through 
        recovery of funds or reduction of payments for the succeeding 
        year, in cases where payments made to a charter school on the 
        basis of estimated or projected enrollment data exceed the 
        amounts that the school is eligible to receive on the basis of 
        actual or final enrollment data.
            ``(2) Rule.--For charter schools that first open after 
        November 1 of any academic year, the State, in accordance with 
        guidance provided by the Secretary and applicable Federal 
        statutes and regulations, shall ensure that such charter 
        schools that are eligible for the funds described in subsection 
        (a) for such academic year have a full and fair opportunity to 
        receive those funds during the charter schools' first year of 
        operation.

``SEC. 5117. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

    ``To the extent practicable, the Secretary shall ensure that 
administrators, teachers, and other individuals directly involved in 
the operation of charter schools are consulted in the development of 
any rules or regulations required to implement this subpart, as well as 
in the development of any rules or regulations relevant to charter 
schools that are required to implement part A of title I, the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.), 
or any other program administered by the Secretary that provides 
education funds to charter schools or regulates the activities of 
charter schools.

``SEC. 5118. RECORDS TRANSFER.

    ``State educational agencies and local educational agencies, to the 
extent practicable, shall ensure that a student's records and, if 
applicable, a student's individualized education program as defined in 
section 602(11) of the Individuals with Disabilities Education Act, are 
transferred to a charter school upon the transfer of the student to the 
charter school, and to another public school upon the transfer of the 
student from a charter school to another public school, in accordance 
with applicable State law.

``SEC. 5119. PAPERWORK REDUCTION.

    ``To the extent practicable, the Secretary and each authorized 
public chartering agency shall ensure that implementation of this 
subpart results in a minimum of paperwork for any eligible applicant or 
charter school.

``SEC. 5120. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' means a 
        public school that--
                    ``(A) in accordance with a specific State statute 
                authorizing the granting of charters to schools, is 
                exempted from significant State or local rules that 
                inhibit the flexible operation and management of public 
                schools, but not from any rules relating to the other 
                requirements of this paragraph;
                    ``(B) is created by a developer as a public school, 
                or is adapted by a developer from an existing public 
                school, and is operated under public supervision and 
                direction;
                    ``(C) operates in pursuit of a specific set of 
                educational objectives determined by the school's 
                developer and agreed to by the authorized public 
                chartering agency;
                    ``(D) provides a program of elementary or secondary 
                education, or both;
                    ``(E) is nonsectarian in its programs, admissions 
                policies, employment practices, and all other 
                operations, and is not affiliated with a sectarian 
                school or religious institution;
                    ``(F) does not charge tuition;
                    ``(G) complies with the Age Discrimination Act of 
                1975, title VI of the Civil Rights Act of 1964, title 
                IX of the Education Amendments of 1972, section 504 of 
                the Rehabilitation Act of 1973, and part B of the 
                Individuals with Disabilities Education Act;
                    ``(H) is a school to which parents choose to send 
                their children, and that admits students on the basis 
                of a lottery, if more students apply for admission than 
                can be accommodated;
                    ``(I) agrees to comply with the same Federal and 
                State audit requirements as do other elementary schools 
                and secondary schools in the State, unless such 
                requirements are specifically waived for the purpose of 
                this program;
                    ``(J) meets all applicable Federal, State, and 
                local health and safety requirements;
                    ``(K) operates in accordance with State law; and
                    ``(L) has a written performance contract with the 
                authorized public chartering agency in the State that 
                includes a description of how student performance will 
                be measured in charter schools pursuant to State 
                assessments that are required of other schools and 
                pursuant to any other assessments mutually agreeable to 
                the authorized public chartering agency and the charter 
                school.
            ``(2) Developer.--The term `developer' means an individual 
        or group of individuals (including a public or private 
        nonprofit organization), which may include teachers, 
        administrators and other school staff, parents, or other 
        members of the local community in which a charter school 
        project will be carried out.
            ``(3) Eligible applicant.--The term `eligible applicant' 
        means an authorized public chartering agency participating in a 
        partnership with a developer to establish a charter school in 
        accordance with this subpart.
            ``(4) Authorized public chartering agency.--The term 
        `authorized public chartering agency' means a State educational 
        agency, local educational agency, or other public entity that 
        has the authority pursuant to State law and approved by the 
        Secretary to authorize or approve a charter school.

``SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are 
authorized to be appropriated $190,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 6 succeeding fiscal 
years.

                 ``Subpart 2--Magnet Schools Assistance

``SEC. 5131. FINDINGS AND STATEMENT OF PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Magnet schools are a significant part of our Nation's 
        effort to achieve voluntary desegregation of our Nation's 
        schools.
            ``(2) It is in the national interest to continue the 
        Federal Government's support of school districts that are 
        implementing court-ordered desegregation plans and school 
        districts that are voluntarily seeking to foster meaningful 
        interaction among students of different racial and ethnic 
        backgrounds.
            ``(3) Desegregation can help ensure that all students have 
        equitable access to high-quality education that will prepare 
        them to function well in a technologically oriented and highly 
        competitive society comprised of people from many different 
        racial and ethnic backgrounds.
            ``(4) It is in the national interest to desegregate and 
        diversify those schools in our Nation that are racially, 
        economically, linguistically, or ethnically segregated. Such 
        segregation exists between minority and non-minority students 
        as well as among students of different minority groups.
    ``(b) Statement of Purpose.--The purpose of this subpart is to 
assist in the desegregation of schools served by local educational 
agencies by providing financial assistance to eligible local 
educational agencies for--
            ``(1) the elimination, reduction, or prevention of minority 
        group isolation in elementary schools and secondary schools 
        with substantial proportions of minority students which shall 
        assist in the efforts of the United States to achieve voluntary 
        desegregation in public schools;
            ``(2) the development and implementation of magnet school 
        projects that will assist local educational agencies in 
        achieving systemic reforms and providing all students the 
        opportunity to meet challenging State and local content 
        standards and challenging State and local student performance 
        standards;
            ``(3) the development and design of innovative educational 
        methods and practices;
            ``(4) courses of instruction within magnet schools that 
        will substantially strengthen the knowledge of academic 
        subjects and the grasp of tangible and marketable vocational, 
        technological and career skills of students attending such 
        schools;
            ``(5) improving the capacity of local educational agencies, 
        including through professional development, to continue 
        operating magnet schools at a high performance level after 
        Federal funding is terminated; and
            ``(6) ensuring that all students enrolled in the magnet 
        school program have equitable access to high quality education 
        that will enable the students to succeed academically and 
        continue with post secondary education or productive 
        employment.

``SEC. 5132. PROGRAM AUTHORIZED.

    ``The Secretary, in accordance with this subpart, is authorized to 
make grants to eligible local educational agencies, and consortia of 
such agencies where appropriate, to carry out the purpose of this 
subpart for magnet schools that are--
            ``(1) part of an approved desegregation plan; and
            ``(2) designed to bring students from different social, 
        economic, ethnic, and racial backgrounds together.

``SEC. 5133. DEFINITION.

    ``For the purpose of this subpart, the term `magnet school' means a 
public elementary school or secondary school or a public elementary or 
secondary education center that offers a special curriculum capable of 
attracting substantial numbers of students of different racial 
backgrounds.

``SEC. 5134. ELIGIBILITY.

    ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive assistance under this subpart to 
carry out the purposes of this subpart if such agency or consortium--
            ``(1) is implementing a plan undertaken pursuant to a final 
        order issued by a court of the United States, or a court of any 
        State, or any other State agency or official of competent 
        jurisdiction, that requires the desegregation of minority-
        group-segregated children or faculty in the elementary schools 
        and secondary schools of such agency; or
            ``(2) without having been required to do so, has adopted 
        and is implementing, or will, if assistance is made available 
        to such local educational agency or consortium of such agencies 
        under this subpart, adopt and implement a plan that has been 
        approved by the Secretary as adequate under title VI of the 
        Civil Rights Act of 1964 for the desegregation of minority-
        group-segregated children or faculty in such schools.

``SEC. 5135. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency or 
consortium of such agencies desiring to receive assistance under this 
subpart shall submit an application to the Secretary at such time, in 
such manner, and containing such information and assurances as the 
Secretary may reasonably require.
    ``(b) Information and Assurances.--Each such application shall 
include--
            ``(1) a description of--
                    ``(A) how assistance made available under this 
                subpart will be used to promote desegregation, 
                including how the proposed magnet school project will 
                increase interaction among students of different 
                social, economic, ethnic, and racial backgrounds;
                    ``(B) the manner and extent to which the magnet 
                school project will increase student achievement in the 
                instructional area or areas offered by the school;
                    ``(C) how an applicant will continue the magnet 
                school project after assistance under this subpart is 
                no longer available, including, if applicable, an 
                explanation of why magnet schools established or 
                supported by the applicant with funds under this 
                subpart cannot be continued without the use of funds 
                under this subpart;
                    ``(D) how funds under this subpart will be used to 
                implement services and activities that are consistent 
                with other programs under this Act, and other Acts, as 
                appropriate, in accordance with the provisions of 
                section 5506; and
                    ``(E) the criteria to be used in selecting students 
                to attend the proposed magnet school project; and
            ``(2) assurances that the applicant will--
                    ``(A) use funds under this subpart for the purposes 
                specified in section 5131(b);
                    ``(B) employ State certified or licensed teachers 
                in the courses of instruction assisted under this 
                subpart to teach or supervise others who are teaching 
                the subject matter of the courses of instruction;
                    ``(C) not engage in discrimination based on race, 
                religion, color, national origin, sex, or disability 
                in--
                            ``(i) the hiring, promotion, or assignment 
                        of employees of the agency or other personnel 
                        for whom the agency has any administrative 
                        responsibility;
                            ``(ii) the assignment of students to 
                        schools, or to courses of instruction within 
                        the school, of such agency, except to carry out 
                        the approved plan; and
                            ``(iii) designing or operating 
                        extracurricular activities for students;
                    ``(D) carry out a high-quality education program 
                that will encourage greater parental decisionmaking and 
                involvement; and
                    ``(E) give students residing in the local 
                attendance area of the proposed magnet school project 
                equitable consideration for placement in the project, 
                consistent with desegregation guidelines and the 
                capacity of the project to accommodate these students.
    ``(c) Special Rule.--No application may be approved under this 
section unless the Assistant Secretary of Education for Civil Rights 
determines that the assurances described in subsection (b)(2)(C) will 
be met.

``SEC. 5136. PRIORITY.

    ``In approving applications under this subpart, the Secretary shall 
give priority to applicants that--
            ``(1) demonstrate the greatest need for assistance, based 
        on the expense or difficulty of effectively carrying out an 
        approved desegregation plan and the projects for which 
        assistance is sought;
            ``(2) propose to carry out new magnet school projects, or 
        significantly revise existing magnet school projects;
            ``(3) propose to select students to attend magnet school 
        projects by methods such as lottery, rather than through 
        academic examination;
            ``(4) propose to implement innovative educational 
        approaches that are consistent with the State and local content 
        and student performance standards; and
            ``(5) propose activities, which may include professional 
        development, that will build local capacity to operate the 
        magnet school program once Federal assistance has terminated.

``SEC. 5137. USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this subpart 
may be used by an eligible local educational agency or consortium of 
such agencies--
            ``(1) for planning and promotional activities directly 
        related to the development, expansion, continuation, or 
        enhancement of academic programs and services offered at magnet 
        schools;
            ``(2) for the acquisition of books, materials, and 
        equipment, including computers and the maintenance and 
        operation thereof, necessary for the conduct of programs in 
        magnet schools;
            ``(3) for the payment, or subsidization of the 
        compensation, of elementary school and secondary school 
        teachers who are certified or licensed by the State, and 
        instructional staff where applicable, who are necessary for the 
        conduct of programs in magnet schools;
            ``(4) with respect to a magnet school program offered to 
        less than the entire student population of a school, for 
        instructional activities that--
                    ``(A) are designed to make available the special 
                curriculum that is offered by the magnet school project 
                to students who are enrolled in the school but who are 
                not enrolled in the magnet school program; and
                    ``(B) further the purposes of this subpart;
            ``(5) to include professional development, which 
        professional development shall build the agency's or 
        consortium's capacity to operate the magnet school once Federal 
        assistance has terminated;
            ``(6) to enable the local educational agency or consortium 
        to have more flexibility in the administration of a magnet 
        school program in order to serve students attending a school 
        who are not enrolled in a magnet school program; and
            ``(7) to enable the local educational agency or consortium 
        to have flexibility in designing magnet schools for students at 
        all grades.
    ``(b) Special Rule.--Grant funds under this subpart may be used in 
accordance with paragraphs (2) and (3) of subsection (a) only if the 
activities described in such paragraphs are directly related to 
improving the students' reading skills or knowledge of mathematics, 
science, history, geography, English, foreign languages, art, or music, 
or to improving vocational, technological and career skills.

``SEC. 5138. PROHIBITION.

    ``Grants under this subpart may not be used for transportation or 
any activity that does not augment academic improvement.

``SEC. 5139. LIMITATIONS.

    ``(a) Duration of Awards.--A grant under this subpart shall be 
awarded for a period that shall not exceed 3 fiscal years.
    ``(b) Limitation on Planning Funds.--A local educational agency may 
expend for planning (professional development shall not be considered 
as planning for purposes of this subsection) not more than 50 percent 
of the funds received under this subpart for the first year of the 
project, 25 percent of such funds for the second such year, and 15 
percent of such funds for the third such year.
    ``(c) Amount.--No local educational agency or consortium awarded a 
grant under this subpart shall receive more than $4,000,000 under this 
subpart in any 1 fiscal year.
    ``(d) Timing.--To the extent practicable, the Secretary shall award 
grants for any fiscal year under this subpart not later than June 1 of 
the applicable fiscal year.

``SEC. 5140. INNOVATIVE PROGRAMS.

    ``(a) In General.--From amounts reserved under subsection (d) for 
each fiscal year, the Secretary shall award grants to local educational 
agencies or consortia of such agencies described in section 5134 to 
enable such agencies or consortia to conduct innovative programs that--
            ``(1) involve innovative strategies other than magnet 
        schools, such as neighborhood or community model schools, to 
        support desegregation of schools and to reduce achievement 
        gaps;
            ``(2) assist in achieving systemic reforms and providing 
        all students the opportunity to meet challenging State and 
        local content standards and challenging State and local student 
        performance standards; and
            ``(3) include innovative educational methods and practices 
        that--
                    ``(A) are organized around a special emphasis, 
                theme, or concept; and
                    ``(B) involve extensive parent and community 
                involvement.
    ``(b) Applicability.--Sections 5131(b), 5132, 5135, 5136, and 5137, 
shall not apply to grants awarded under subsection (a).
    ``(c) Applications.--Each local educational agency or consortia of 
such agencies desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information and assurances as the Secretary may 
reasonably require.
    ``(d) Innovative Programs.--The Secretary shall reserve not more 
than 5 percent of the funds appropriated under section 5142(a) for each 
fiscal year to award grants under this section.

``SEC. 5141. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 5142(a) for any fiscal 
year to carry out evaluations of projects assisted under this subpart 
and to provide technical assistance for grant recipients under this 
subpart.
    ``(b) Contents.--Each evaluation described in subsection (a), at a 
minimum, shall address--
            ``(1) how and the extent to which magnet school programs 
        lead to educational quality and improvement;
            ``(2) the extent to which magnet school programs enhance 
        student access to quality education;
            ``(3) the extent to which magnet school programs lead to 
        the elimination, reduction, or prevention of minority group 
        isolation in elementary schools and secondary schools with 
        substantial proportions of minority students;
            ``(4) the extent to which magnet school programs differ 
        from other school programs in terms of the organizational 
        characteristics and resource allocations of such magnet school 
        programs; and
            ``(5) the extent to which magnet school programs continue 
        once grant assistance under this subpart is terminated.
    ``(c) Dissemination.--The Secretary shall collect and disseminate 
to the general public information on successful magnet school programs.

``SEC. 5142. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this subpart, 
there are authorized to be appropriated $125,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(b) Availability of Funds for Grants to Agencies Not Previously 
Assisted.--In any fiscal year for which the amount appropriated 
pursuant to subsection (a) exceeds $75,000,000, the Secretary shall 
give priority to using such amounts in excess of $75,000,000 to award 
grants to local educational agencies or consortia of such agencies that 
did not receive a grant under this subpart in the preceding fiscal 
year.

                   ``Subpart 3--Public School Choice

``SEC. 5151. PUBLIC SCHOOL CHOICE.

    ``(a) Allotment to State.--From the amount appropriated under 
subsection (e) for a fiscal year, the Secretary shall allot to each 
State an amount that bears the same relation to the amount as the 
amount the State received under section 1122 for the preceding year 
bears to the amount received by all States under section 1122 for the 
preceding year.
    ``(b) State Use of Funds.--Each State receiving an allotment under 
subsection (a) shall use 100 percent of the allotted funds for 
allocations to local educational agencies to enable the local 
educational agencies to carry out school improvement under section 
1116(c).
    ``(c) Public School Choice.--Subject to subsection (d), each local 
educational agency receiving an allocation under subsection (b), and 
each local educational agency that is within a State that receives 
funds under part A of title I (other than a local educational agency 
within a State that receives a minimum grant under section 1124(d) or 
1124A(a)(1)(B) of such Act), shall provide all students enrolled in a 
school identified under section 1116(c) and served by the local 
educational agency with the option to transfer to another public school 
within the school district served by the local educational agency, 
including a public charter school, that has not been identified for 
school improvement under section 1116(c), unless such option to 
transfer is prohibited by State law or local law (which includes school 
board-approved local educational agency policy).
    ``(d) Special Rule.--If a local educational agency demonstrates to 
the satisfaction of the State educational agency that the local 
educational agency lacks the capacity to provide all students with the 
option to transfer to another public school within the school district 
served by the local educational agency in accordance with subsection 
(c), and gives notice (consistent with State and local law) to the 
parents of children affected that it is not possible to accommodate the 
transfer request of every student, then the local educational agency 
shall permit as many students as possible (who shall be selected by the 
local educational agency on an equitable basis) to transfer to a public 
school within such school district that has not been identified for 
school improvement under section 1116(c).
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $225,000,000 for fiscal year 
2002 and each of the 6 succeeding fiscal years.''.

                         ``PART B--FLEXIBILITY

            ``Subpart 1--Education Flexibility Partnerships

``SEC. 5201. SHORT TITLE.

    ``This subpart may be cited as the `Education Flexibility 
Partnership Act of 2001'.

``SEC. 5202. DEFINITIONS.

    ``In this subpart:
            ``(1) Eligible school attendance area; school attendance 
        area.--The terms `eligible school attendance area' and `school 
        attendance area' have the meanings given the terms in section 
        1113(a)(2).
            ``(2) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and each outlying area.

``SEC. 5203. EDUCATION FLEXIBILITY PARTNERSHIP.

    ``(a) Educational Flexibility Program.--
            ``(1) Program authorized.--
                    ``(A) In general.--The Secretary may carry out an 
                educational flexibility program under which the 
                Secretary authorizes a State educational agency that 
                serves an eligible State to waive statutory or 
                regulatory requirements applicable to one or more 
                programs described in subsection (b), other than 
                requirements described in subsection (c), for any local 
                educational agency or school within the State.
                    ``(B) Designation.--Each eligible State 
                participating in the program described in subparagraph 
                (A) shall be known as an `Ed-Flex Partnership State'.
            ``(2) Eligible state.--For the purpose of this section the 
        term `eligible State' means a State that--
                    ``(A) has--
                            ``(i) developed and implemented the 
                        challenging State content standards, 
                        challenging State student performance 
                        standards, and aligned assessments described in 
                        section 1111(b), and for which local 
                        educational agencies in the State are producing 
                        the individual school performance profiles 
                        required by section 1116(a)(3); or
                            ``(ii)(I) developed and implemented the 
                        content standards described in clause (i);
                            ``(II) developed and implemented interim 
                        assessments; and
                            ``(III) made substantial progress (as 
                        determined by the Secretary) toward developing 
                        and implementing the performance standards and 
                        final aligned assessments described in clause 
                        (i), and toward having local educational 
                        agencies in the State produce the profiles 
                        described in clause (i);
                    ``(B) holds local educational agencies and schools 
                accountable for meeting the educational goals described 
                in the local applications submitted under paragraph 
                (4), and for engaging in technical assistance and 
                corrective actions consistent with section 1116, for 
                the local educational agencies and schools that do not 
                make adequate yearly progress as described in section 
                1111(b)(2); and
                    ``(C) waives State statutory or regulatory 
                requirements relating to education while holding local 
                educational agencies or schools within the State that 
                are affected by such waivers accountable for the 
                performance of the students who are affected by such 
                waivers.
            ``(3) State application.--
                    ``(A) In general.--Each State educational agency 
                desiring to participate in the educational flexibility 
                program under this section shall submit an application 
                to the Secretary at such time, in such manner, and 
                containing such information as the Secretary may 
                reasonably require. Each such application shall 
                demonstrate that the eligible State has adopted an 
                educational flexibility plan for the State that 
                includes--
                            ``(i) a description of the process the 
                        State educational agency will use to evaluate 
                        applications from local educational agencies or 
                        schools requesting waivers of--
                                    ``(I) Federal statutory or 
                                regulatory requirements as described in 
                                paragraph (1)(A); and
                                    ``(II) State statutory or 
                                regulatory requirements relating to 
                                education;
                            ``(ii) a detailed description of the State 
                        statutory and regulatory requirements relating 
                        to education that the State educational agency 
                        will waive;
                            ``(iii) a description of clear educational 
                        objectives the State intends to meet under the 
                        educational flexibility plan;
                            ``(iv) a description of how the educational 
                        flexibility plan is consistent with and will 
                        assist in implementing the State comprehensive 
                        reform plan or, if a State does not have a 
                        comprehensive reform plan, a description of how 
                        the educational flexibility plan is coordinated 
                        with activities described in section 1111(b);
                            ``(v) a description of how the State 
                        educational agency will evaluate, consistent 
                        with the requirements of title I, the 
                        performance of students in the schools and 
                        local educational agencies affected by the 
                        waivers; and
                            ``(vi) a description of how the State 
                        educational agency will meet the requirements 
                        of paragraph (8).
                    ``(B) Approval and considerations.--The Secretary 
                may approve an application described in subparagraph 
                (A) only if the Secretary determines that such 
                application demonstrates substantial promise of 
                assisting the State educational agency and affected 
                local educational agencies and schools within the State 
                in carrying out comprehensive educational reform, after 
                considering--
                            ``(i) the eligibility of the State as 
                        described in paragraph (2);
                            ``(ii) the comprehensiveness and quality of 
                        the educational flexibility plan described in 
                        subparagraph (A);
                            ``(iii) the ability of the educational 
                        flexibility plan to ensure accountability for 
                        the activities and goals described in such 
                        plan;
                            ``(iv) the degree to which the State's 
                        objectives described in subparagraph (A)(iii)--
                                    ``(I) are clear and have the 
                                ability to be assessed; and
                                    ``(II) take into account the 
                                performance of local educational 
                                agencies or schools, and students, 
                                particularly those affected by waivers;
                            ``(v) the significance of the State 
                        statutory or regulatory requirements relating 
                        to education that will be waived; and
                            ``(vi) the quality of the State educational 
                        agency's process for approving applications for 
                        waivers of Federal statutory or regulatory 
                        requirements as described in paragraph (1)(A) 
                        and for monitoring and evaluating the results 
                        of such waivers.
            ``(4) Local application.--
                    ``(A) In general.--Each local educational agency or 
                school requesting a waiver of a Federal statutory or 
                regulatory requirement as described in paragraph (1)(A) 
                and any relevant State statutory or regulatory 
                requirement from a State educational agency shall 
                submit an application to the State educational agency 
                at such time, in such manner, and containing such 
                information as the State educational agency may 
                reasonably require. Each such application shall--
                            ``(i) indicate each Federal program 
                        affected and each statutory or regulatory 
                        requirement that will be waived;
                            ``(ii) describe the purposes and overall 
                        expected results of waiving each such 
                        requirement;
                            ``(iii) describe, for each school year, 
                        specific, measurable, educational goals for 
                        each local educational agency or school 
                        affected by the proposed waiver, and for the 
                        students served by the local educational agency 
                        or school who are affected by the waiver;
                            ``(iv) explain why the waiver will assist 
                        the local educational agency or school in 
                        reaching such goals; and
                            ``(v) in the case of an application from a 
                        local educational agency, describe how the 
                        local educational agency will meet the 
                        requirements of paragraph (8).
                    ``(B) Evaluation of applications.--A State 
                educational agency shall evaluate an application 
                submitted under subparagraph (A) in accordance with the 
                State's educational flexibility plan described in 
                paragraph (3)(A).
                    ``(C) Approval.--A State educational agency shall 
                not approve an application for a waiver under this 
                paragraph unless--
                            ``(i) the local educational agency or 
                        school requesting such waiver has developed a 
                        local reform plan that is applicable to such 
                        agency or school, respectively;
                            ``(ii) the waiver of Federal statutory or 
                        regulatory requirements as described in 
                        paragraph (1)(A) will assist the local 
                        educational agency or school in reaching its 
                        educational goals, particularly goals with 
                        respect to school and student performance; and
                            ``(iii) the State educational agency is 
                        satisfied that the underlying purposes of the 
                        statutory requirements of each program for 
                        which a waiver is granted will continue to be 
                        met.
                    ``(D) Termination.--The State educational agency 
                shall annually review the performance of any local 
                educational agency or school granted a waiver of 
                Federal statutory or regulatory requirements as 
                described in paragraph (1)(A) in accordance with the 
                evaluation requirement described in paragraph 
                (3)(A)(v), and shall terminate any waiver granted to 
                the local educational agency or school if the State 
                educational agency determines, after notice and an 
                opportunity for a hearing, that the local educational 
                agency or school's performance with respect to meeting 
                the accountability requirement described in paragraph 
                (2)(C) and the goals described in paragraph 
                (4)(A)(iii)--
                            ``(i) has been inadequate to justify 
                        continuation of such waiver; or
                            ``(ii) has decreased for two consecutive 
                        years, unless the State educational agency 
                        determines that the decrease in performance was 
                        justified due to exceptional or uncontrollable 
                        circumstances.
            ``(5) Oversight and reporting.--
                    ``(A) Oversight.--Each State educational agency 
                participating in the educational flexibility program 
                under this section shall annually monitor the 
                activities of local educational agencies and schools 
                receiving waivers under this section.
                    ``(B) State reports.--
                            ``(i) Annual reports.--The State 
                        educational agency shall submit to the 
                        Secretary an annual report on the results of 
                        such oversight and the impact of the waivers on 
                        school and student performance.
                            ``(ii) Performance data.--Not later than 2 
                        years after the date a State is designated an 
                        Ed-Flex Partnership State, each such State 
                        shall include, as part of the State's annual 
                        report submitted under clause (i), data 
                        demonstrating the degree to which progress has 
                        been made toward meeting the State's 
                        educational objectives. The data, when 
                        applicable, shall include--
                                    ``(I) information on the total 
                                number of waivers granted for Federal 
                                and State statutory and regulatory 
                                requirements under this section, 
                                including the number of waivers granted 
                                for each type of waiver;
                                    ``(II) information describing the 
                                effect of the waivers on the 
                                implementation of State and local 
                                educational reforms pertaining to 
                                school and student performance;
                                    ``(III) information describing the 
                                relationship of the waivers to the 
                                performance of schools and students 
                                affected by the waivers; and
                                    ``(IV) an assurance from State 
                                program managers that the data reported 
                                under this section are reliable, 
                                complete, and accurate, as defined by 
                                the State, or a description of a plan 
                                for improving the reliability, 
                                completeness, and accuracy of such data 
                                as defined by the State.
                    ``(C) Secretary's reports.--The Secretary, not 
                later than 2 years after the date of enactment of the 
                Education Flexibility Partnership Act of 1999 and 
                annually thereafter, shall--
                            ``(i) make each State report submitted 
                        under subparagraph (B) available to Congress 
                        and the public; and
                            ``(ii) submit to Congress a report that 
                        summarizes the State reports and describes the 
                        effects that the educational flexibility 
                        program under this section had on the 
                        implementation of State and local educational 
                        reforms and on the performance of students 
                        affected by the waivers.
            ``(6) Duration of federal waivers.--
                    ``(A) In general.--The Secretary shall not approve 
                the application of a State educational agency under 
                paragraph (3) for a period exceeding 5 years, except 
                that the Secretary may extend such period if the 
                Secretary determines that such agency's authority to 
                grant waivers--
                            ``(i) has been effective in enabling such 
                        State or affected local educational agencies or 
                        schools to carry out their State or local 
                        reform plans and to continue to meet the 
                        accountability requirement described in 
                        paragraph (2)(C); and
                            ``(ii) has improved student performance.
                    ``(B) Performance review.--Three years after the 
                date a State is designated an Ed-Flex Partnership 
                State, the Secretary shall review the performance of 
                the State educational agency in granting waivers of 
                Federal statutory or regulatory requirements as 
                described in paragraph (1)(A) and shall terminate such 
                agency's authority to grant such waivers if the 
                Secretary determines, after notice and an opportunity 
                for a hearing, that such agency's performance 
                (including performance with respect to meeting the 
                objectives described in paragraph (3)(A)(iii)) has been 
                inadequate to justify continuation of such authority.
                    ``(C) Renewal.--In deciding whether to extend a 
                request for a State educational agency's authority to 
                issue waivers under this section, the Secretary shall 
                review the progress of the State educational agency to 
                determine if the State educational agency--
                            ``(i) has made progress toward achieving 
                        the objectives described in the application 
                        submitted pursuant to paragraph (3)(A)(iii); 
                        and
                            ``(ii) demonstrates in the request that 
                        local educational agencies or schools affected 
                        by the waiver authority or waivers have made 
                        progress toward achieving the desired results 
                        described in the application submitted pursuant 
                        to paragraph (4)(A)(iii).
            ``(7) Authority to issue waivers.--Notwithstanding any 
        other provision of law, the Secretary is authorized to carry 
        out the educational flexibility program under this section for 
        each of the fiscal years 2002 through 2008.
            ``(8) Public notice and comment.--Each State educational 
        agency seeking waiver authority under this section and each 
        local educational agency seeking a waiver under this section--
                    ``(A) shall provide the public with adequate and 
                efficient notice of the proposed waiver authority or 
                waiver, consisting of a description of the agency's 
                application for the proposed waiver authority or waiver 
                in a widely read or distributed medium, including a 
                description of any improved student performance that is 
                expected to result from the waiver authority or waiver;
                    ``(B) shall provide the opportunity for parents, 
                educators, and all other interested members of the 
                community to comment regarding the proposed waiver 
                authority or waiver;
                    ``(C) shall provide the opportunity described in 
                subparagraph (B) in accordance with any applicable 
                State law specifying how the comments may be received, 
                and how the comments may be reviewed by any member of 
                the public; and
                    ``(D) shall submit the comments received with the 
                agency's application to the Secretary or the State 
                educational agency, as appropriate.
    ``(b) Included Programs.--The statutory or regulatory requirements 
referred to in subsection (a)(1)(A) are any such requirements for 
programs carried out under the following provisions:
            ``(1) Title I (other than subsections (a) and (c) of 
        section 1116, subpart 2 of part B, and part F).
            ``(2) Subparts 1, 2, and 3 of part A of title II.
            ``(3) Part C of title II.
            ``(4) Part C of title III.
            ``(5) Part A of title IV.
            ``(6) Subpart 4 of this part.
            ``(7) The Carl D. Perkins Vocational and Technical 
        Education Act of 1998.
    ``(c) Waivers Not Authorized.--The Secretary and the State 
educational agency may not waive under subsection (a)(1)(A) any 
statutory or regulatory requirement--
            ``(1) relating to--
                    ``(A) maintenance of effort;
                    ``(B) comparability of services;
                    ``(C) equitable participation of students and 
                professional staff in private schools;
                    ``(D) parental participation and involvement;
                    ``(E) distribution of funds to States or to local 
                educational agencies;
                    ``(F) serving eligible school attendance areas in 
                rank order under section 1113(a)(3);
                    ``(G) the selection of a school attendance area or 
                school under subsections (a) and (b) of section 1113, 
                except that a State educational agency may grant a 
                waiver to allow a school attendance area or school to 
                participate in activities under part A of title I if 
                the percentage of children from low-income families in 
                the school attendance area of such school or who attend 
                such school is not less than 10 percentage points below 
                the lowest percentage of such children for any school 
                attendance area or school of the local educational 
                agency that meets the requirements of such subsections 
                (a) and (b);
                    ``(H) use of Federal funds to supplement, not 
                supplant, non-Federal funds; and
                    ``(I) applicable civil rights requirements; and
            ``(2) unless the underlying purposes of the statutory 
        requirements of the program for which a waiver is granted 
        continue to be met to the satisfaction of the Secretary.
    ``(d) Treatment of Existing Ed-Flex Partnership States.--
            ``(1) In general.--Except as provided in paragraphs (3) and 
        (4), this section shall not apply to a State educational agency 
        that has been granted waiver authority under the provisions of 
        law described in paragraph (2) (as such provisions were in 
        effect on the day before the date of enactment of the Better 
        Education for Students and Teachers Act) for the duration of 
        the waiver authority.
            ``(2) Applicable provisions.--The provisions of law 
        referred to in paragraph (1) are as follows:
                    ``(A) Section 311(e) of the Goals 2000: Educate 
                America Act (as such section was in effect on the day 
                before the date of enactment of the Better Education 
                for Students and Teachers Act).
                    ``(B) The proviso referring to such section 311(e) 
                under the heading `education reform' in the Department 
                of Education Appropriations Act, 1996 (Public Law 104-
                134; 110 Stat. 1321-229).
            ``(3) Special rule.--If a State educational agency granted 
        waiver authority pursuant to the provisions of law described in 
        subparagraph (A) or (B) of paragraph (2) applies to the 
        Secretary for waiver authority under this section--
                    ``(A) the Secretary shall review the progress of 
                the State educational agency in achieving the 
                objectives set forth in the application submitted 
                pursuant to section 311(e) of the Goals 2000: Educate 
                America Act (as such section was in effect on the day 
                before the date of enactment of the Better Education 
                for Students and Teachers Act); and
                    ``(B) the Secretary shall administer the waiver 
                authority granted under this section in accordance with 
                the requirements of this section.
            ``(4) Technology.--In the case of a State educational 
        agency granted waiver authority under the provisions of law 
        described in subparagraph (A) or (B) of paragraph (2), the 
        Secretary shall permit a State educational agency to expand, on 
        or after the date of enactment of the Better Education for 
        Students and Teachers Act, the waiver authority to include 
        programs under part C of title II.
    ``(e) Publication.--A notice of the Secretary's decision to 
authorize State educational agencies to issue waivers under this 
section, including a description of the rationale the Secretary used to 
approve applications under subsection (a)(3)(B), shall be published in 
the Federal Register and the Secretary shall provide for the 
dissemination of such notice to State educational agencies, interested 
parties (including educators, parents, students, and advocacy and civil 
rights organizations), and the public.

                ``Subpart 2--Rural Education Initiative

``SEC. 5221. SHORT TITLE.

    ``This subpart may be cited as the `Rural Education Achievement 
Program'.

``SEC. 5222. PURPOSE.

    ``It is the purpose of this subpart to address the unique needs of 
rural school districts that frequently--
            ``(1) lack the personnel and resources needed to compete 
        for Federal competitive grants; and
            ``(2) receive formula allocations in amounts too small to 
        be effective in meeting their intended purposes.

``SEC. 5223. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart--
            ``(1) $300,000,000 for fiscal year 2002, of which 
        $150,000,000 shall be made available to carry out chapter 1; 
        and
            ``(2) such sums as may be necessary for each of the 6 
        succeeding fiscal years.

          ``Chapter 1--Small, Rural School Achievement Program

``SEC. 5231. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to carry out 
        activities described in section 1114, 1115, 1116, 2123, or 
        4116.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
use the applicable funding in accordance with subsection (a) if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary, except that the Secretary may 
        waive the School Locale Code requirement of this paragraph if 
        the Secretary determines, based on certification provided by 
        the local educational agency or the State educational agency on 
        behalf of the local educational agency, that the local 
        educational agency is located in an area defined as rural by a 
        governmental agency of the State.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II and IV, and 
subpart 4 of this part.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.
    ``(g) Construction.--Nothing in this chapter shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this section.

``SEC. 5232. COMPETITIVE GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out activities described in section 1114, 1115, 1116, 
2123, 2213, 2306, or 4116.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
receive a grant under this section if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary, except that the Secretary may 
        waive the School Locale Code requirement of this paragraph if 
        the Secretary determines, based on certification provided by 
        the local educational agency or the State educational agency on 
        behalf of the local educational agency, that the local 
        educational agency is located in an area defined as rural by a 
        governmental agency of the State.
    ``(c) Amount.--
            ``(1) In general.--The Secretary shall award a grant to a 
        local educational agency under this section for a fiscal year 
        in an amount equal to the amount determined under paragraph (2) 
        for the fiscal year minus the total amount received under the 
        provisions of law described under section 5231(c) for the 
        fiscal year.
            ``(2) Determination.--The amount referred to in paragraph 
        (1) is equal to $100 multiplied by the total number of students 
        in excess of 50 students that are in average daily attendance 
        at the schools served by the local educational agency, plus 
        $20,000, except that the amount may not exceed $60,000.
            ``(3) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
            ``(4) Penalty.--If the Secretary determines that a local 
        educational agency has knowingly submitted false information 
        under paragraph (3) for the purpose of gaining additional funds 
        under this section, then the local educational agency shall be 
        fined an amount equal to twice the difference between the 
        amount the local educational agency received under this 
        section, and the correct amount the local educational agency 
        would have received under this section if the agency had 
        submitted accurate information under paragraph (3).
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Construction.--Nothing in this chapter shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this section.

``SEC. 5233. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 5231 or 5232 for a fiscal year 
        shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected 
                by the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that 
        uses or receives funds under section 5231 or 5232 shall use the 
        same assessment or test described in paragraph (1) for each 
        year of participation in the program carried out under such 
        section.
    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 5231(c) shall--
            ``(1) after the 3rd year that a local educational agency in 
        the State participates in a program authorized under section 
        5231 or 5232 and on the basis of the results of the assessments 
        or tests described in subsection (a), determine whether the 
        students served by the local educational agency participating 
        in the program performed better on the assessments or tests 
        after the 3rd year of the participation than the students 
        performed on the assessments or tests after the 1st year of the 
        participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an 
        additional period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program, for a period 
        of 3 years from the date of the determination.

``SEC. 5234. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPROPRIATIONS.

    ``(a) In General.--If the amount appropriated for any fiscal year 
and made available for grants under this chapter is insufficient to pay 
the full amount for which all agencies are eligible under this chapter, 
the Secretary shall ratably reduce each such amount.
    ``(b) Additional Amounts.--If additional funds become available for 
making payments under paragraph (1) for such fiscal year, payments that 
were reduced under subsection (a) shall be increased on the same basis 
as such payments were reduced.

            ``Chapter 2--Low-Income and Rural School Program

``SEC. 5241. DEFINITIONS.

    ``In this chapter:
            ``(1) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(2) Specially qualified agency.--The term `specially 
        qualified agency' means an eligible local educational agency, 
        located in a State that does not participate in a program 
        carried out under this chapter for a fiscal year, which may 
        apply directly to the Secretary for a grant for such year in 
        accordance with section 5242(b).

``SEC. 5242. PROGRAM AUTHORIZED.

    ``(a) Grants to States.--
            ``(1) In general.--From the sum appropriated under section 
        5223 for a fiscal year and made available to carry out this 
        chapter, the Secretary shall award grants, from allotments made 
        under paragraph (2), to State educational agencies that have 
        applications approved under section 5244 to enable the State 
        educational agencies to award grants to eligible local 
        educational agencies for innovative assistance activities 
        described in section 5331(b).
            ``(2) Allotment.--From the sum appropriated under section 
        5223 for a fiscal year and made available to carry out this 
        chapter, the Secretary shall allot to each State educational 
        agency an amount that bears the same ratio to the sum as the 
        number of students in average daily attendance at the schools 
        served by eligible local educational agencies in the State for 
        that fiscal year bears to the number of all such students at 
        the schools served by eligible local educational agencies in 
        all States for that fiscal year.
    ``(b) Direct Grants to Specially Qualified Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency elects not to participate in the program carried out 
        under this chapter or does not have an application approved 
        under section 5244, a specially qualified agency in such State 
        desiring a grant under this chapter shall apply directly to the 
        Secretary under section 5244 to receive a grant under this 
        chapter.
            ``(2) Direct awards to specially qualified agencies.--The 
        Secretary may award, on a competitive basis, the amount the 
        State educational agency is eligible to receive under 
        subsection (a)(2) directly to specially qualified agencies in 
        the State.
    ``(c) Administrative Costs.--A State educational agency that 
receives a grant under this chapter may not use more than 5 percent of 
the amount of the grant for State administrative costs.

``SEC. 5243. STATE DISTRIBUTION OF FUNDS.

    ``(a) In General.--A State educational agency that receives a grant 
under this chapter may use the funds made available through the grant 
to award grants to eligible local educational agencies to enable the 
local educational agencies to carry out innovative assistance 
activities described in section 5331(b).
    ``(b) Local Awards.--
            ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive a grant under this chapter if--
                    ``(A) 20 percent or more of the children age 5 
                through 17 that are served by the local educational 
                agency are from families with incomes below the poverty 
                line; and
                    ``(B) all of the schools served by the agency are 
                located in a community with a Locale Code of 6, 7, or 
                8, as determined by the Secretary of Education.
    ``(c) Award Basis.--The State educational agency shall award the 
grants to eligible local educational agencies--
            ``(1) on a competitive basis; or
            ``(2) according to a formula based on the number of 
        students in average daily attendance at schools served by the 
        eligible local educational agencies.

``SEC. 5244. APPLICATIONS.

    ``(a) In General.--Each State educational agency and specially 
qualified agency desiring to receive a grant under this chapter shall 
submit an application to the Secretary at such time, in such manner, 
and accompanied by such information as the Secretary may require.
    ``(b) Contents.--At a minimum, such application shall include 
information on specific measurable goals and objectives to be achieved 
through the activities carried out through the grant, which may include 
specific educational goals and objectives relating to--
            ``(1) increased student academic achievement;
            ``(2) decreased student dropout rates; or
            ``(3) such other factors as the State educational agency or 
        specially qualified agency may choose to measure.

``SEC. 5245. ACCOUNTABILITY.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this chapter shall prepare and submit to the Secretary an 
annual report. The report shall describe--
            ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies under this 
        chapter;
            ``(2) how the local educational agencies used the funds 
        provided under this chapter; and
            ``(3) the degree to which the State made progress toward 
        meeting the goals and objectives described in the application 
        submitted under section 5244.
    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this chapter shall prepare and 
submit to the Secretary an annual report. The report shall describe--
            ``(1) how such agency used the funds provided under this 
        chapter; and
            ``(2) the degree to which the agency made progress toward 
        meeting the goals and objectives described in the application 
        submitted under section 5244.
    ``(c) Academic Achievement.--
            ``(1) In general.--Each local educational agency that 
        receives a grant under this chapter for a fiscal year shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected 
                by the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that 
        receives a grant under this chapter shall use the same 
        assessment or test described in paragraph (1) for each year of 
        participation in the program carried out under this chapter.
    ``(d) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives a grant 
under this chapter shall--
            ``(1) after the 3rd year that a local educational agency in 
        the State participates in the program authorized under this 
        chapter and on the basis of the results of the assessments or 
        tests described in subsection (c), determine whether the 
        students served by the local educational agency participating 
        in the program performed better on the assessments or tests 
        after the 3rd year of the participation than the students 
        performed on the assessments or tests after the 1st year of the 
        participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an 
        additional period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program for a period 
        of 3 years from the date of the determination.

``SEC. 5246. SUPPLEMENT NOT SUPPLANT.

    ``Funds made available under this chapter shall be used to 
supplement and not supplant any other Federal, State, or local 
education funds.

``SEC. 5247. SPECIAL RULE.

    ``No local educational agency may concurrently participate in 
activities carried out under chapter 1 and activities carried out under 
this chapter.

                          ``Subpart 3--Waivers

``SEC. 5251. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), the 
Secretary may waive any statutory or regulatory requirement of this Act 
for a State educational agency, local educational agency, Indian tribe, 
or school through a local educational agency, that--
            ``(1) receives funds under a program authorized by this 
        Act; and
            ``(2) requests a waiver under subsection (b).
    ``(b) Request for Waiver.--
            ``(1) In general.--A State educational agency, local 
        educational agency, or Indian tribe which desires a waiver 
        shall submit a waiver request to the Secretary that--
                    ``(A) identifies the Federal programs affected by 
                such requested waiver;
                    ``(B) describes which Federal requirements are to 
                be waived and how the waiving of such requirements 
                will--
                            ``(i) increase the quality of instruction 
                        for students; or
                            ``(ii) improve the academic performance of 
                        students;
                    ``(C) if applicable, describes which similar State 
                and local requirements will be waived and how the 
                waiving of such requirements will assist the local 
                educational agencies, Indian tribes or schools, as 
                appropriate, to achieve the objectives described in 
                clauses (i) and (ii) of subparagraph (B);
                    ``(D) describes specific, measurable educational 
                improvement goals and expected outcomes for all 
                affected students;
                    ``(E) describes the methods to be used to measure 
                progress in meeting such goals and outcomes; and
                    ``(F) describes how schools will continue to 
                provide assistance to the same populations served by 
                programs for which waivers are requested.
            ``(2) Additional information.--Such requests--
                    ``(A) may provide for waivers of requirements 
                applicable to State educational agencies, local 
                educational agencies, Indian tribes, and schools; and
                    ``(B) shall be developed and submitted--
                            ``(i)(I) by local educational agencies (on 
                        behalf of such agencies and schools) to State 
                        educational agencies; and
                            ``(II) by State educational agencies (on 
                        behalf of, and based upon the requests of, 
                        local educational agencies) to the Secretary; 
                        or
                            ``(ii) by Indian tribes (on behalf of 
                        schools operated by such tribes) to the 
                        Secretary.
            ``(3) General requirements.--
                    ``(A) State educational agencies.--In the case of a 
                waiver request submitted by a State educational agency 
                acting in its own behalf, the State educational agency 
                shall--
                            ``(i) provide all interested local 
                        educational agencies in the State with notice 
                        and a reasonable opportunity to comment on the 
                        request;
                            ``(ii) submit the comments to the 
                        Secretary; and
                            ``(iii) provide notice and information to 
                        the public regarding the waiver request in the 
                        manner that the applying agency customarily 
                        provides similar notices and information to the 
                        public.
                    ``(B) Local educational agencies.--In the case of a 
                waiver request submitted by a local educational agency 
                that receives funds under this Act--
                            ``(i) such request shall be reviewed by the 
                        State educational agency and be accompanied by 
                        the comments, if any, of such State educational 
                        agency; and
                            ``(ii) notice and information regarding the 
                        waiver request shall be provided to the public 
                        by the agency requesting the waiver in the 
                        manner that such agency customarily provides 
                        similar notices and information to the public.
    ``(c) Restrictions.--The Secretary shall not waive under this 
section any statutory or regulatory requirements relating to--
            ``(1) the allocation or distribution of funds to States, 
        local educational agencies, or other recipients of funds under 
        this Act;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) use of Federal funds to supplement, not supplant, 
        non-Federal funds;
            ``(5) equitable participation of private school students 
        and teachers;
            ``(6) parental participation and involvement;
            ``(7) applicable civil rights requirements;
            ``(8) the requirement for a charter school under subpart 1 
        of part A;
            ``(9) the prohibitions regarding--
                    ``(A) State aid in section 5; or
                    ``(B) use of funds for religious worship or 
                instruction in section 10; or
            ``(10) the selection of a school attendance area or school 
        under subsections (a) and (b) of section 1113, except that the 
        Secretary may grant a waiver to allow a school attendance area 
        or school to participate in activities under part A of title I 
        if the percentage of children from low-income families in the 
        school attendance area of such school or who attend such school 
        is not less than 10 percentage points below the lowest 
        percentage of such children for any school attendance area or 
        school of the local educational agency that meets the 
        requirements of such subsections (a) and (b).
    ``(d) Duration and Extension of Waiver.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        duration of a waiver approved by the Secretary under this 
        section may be for a period not to exceed 3 years.
            ``(2) Extension.--The Secretary may extend the period 
        described in paragraph (1) if the Secretary determines that--
                    ``(A) the waiver has been effective in enabling the 
                State or affected recipients to carry out the 
                activities for which the waiver was requested and the 
                waiver has contributed to improved student performance; 
                and
                    ``(B) such extension is in the public interest.
    ``(e) Reports.--
            ``(1) Local waiver.--A local educational agency that 
        receives a waiver under this section shall at the end of the 
        second year for which a waiver is received under this section, 
        and each subsequent year, submit a report to the State 
        educational agency that--
                    ``(A) describes the uses of such waiver by such 
                agency or by schools;
                    ``(B) describes how schools continued to provide 
                assistance to the same populations served by the 
                programs for which waivers are requested; and
                    ``(C) evaluates the progress of such agency and of 
                schools in improving the quality of instruction or the 
                academic performance of students.
            ``(2) State waiver.--A State educational agency that 
        receives reports required under paragraph (1) shall annually 
        submit a report to the Secretary that is based on such reports 
        and contains such information as the Secretary may require.
            ``(3) Indian tribe waiver.--An Indian tribe that receives a 
        waiver under this section shall annually submit a report to the 
        Secretary that--
                    ``(A) describes the uses of such waiver by schools 
                operated by such tribe; and
                    ``(B) evaluates the progress of such schools in 
                improving the quality of instruction or the academic 
                performance of students.
            ``(4) Report to congress.--Beginning in fiscal year 2002 
        and each subsequent year, the Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate a report--
                    ``(A) summarizing the uses of waivers by State 
                educational agencies, local educational agencies, 
                Indian tribes, and schools; and
                    ``(B) describing whether such waivers--
                            ``(i) increased the quality of instruction 
                        to students; or
                            ``(ii) improved the academic performance of 
                        students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines that the 
performance of the State or other recipient affected by the waiver has 
been inadequate to justify a continuation of the waiver or if the 
waiver is no longer necessary to achieve its original purposes.
    ``(g) Publication.--A notice of the Secretary's decision to grant 
each waiver under subsection (a) shall be published in the Federal 
Register and the Secretary shall provide for the dissemination of such 
notice to State educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

          ``Subpart 4--Innovative Education Program Strategies

``SEC. 5301. PURPOSE; STATE AND LOCAL RESPONSIBILITY.

    ``(a) Purpose.--The purpose of this subpart is--
            ``(1) to support local education reform efforts that are 
        consistent with and support statewide education reform efforts;
            ``(2) to provide funding to enable State and local 
        educational agencies to implement promising educational reform 
        strategies;
            ``(3) to provide a continuing source of innovation and 
        educational improvement, including support for library services 
        and instructional and media materials; and
            ``(4) to develop and implement education programs to 
        improve school, student, and teacher performance, including 
        professional development activities and class size reduction 
        programs.
    ``(b) State and Local Responsibility.--The basic responsibility for 
the administration of funds made available under this subpart is within 
the State educational agencies, but it is the intent of Congress that 
the responsibility be carried out with a minimum of paperwork and that 
the responsibility for the design and implementation of programs 
assisted under this subpart will be mainly that of local educational 
agencies, school superintendents and principals, and classroom teachers 
and supporting personnel, because such agencies and individuals have 
the most direct contact with students and are most likely to be able to 
design programs to meet the educational needs of students in their own 
school districts.

``SEC. 5302. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.

    ``(a) Authorization.--To carry out the purposes of this subpart, 
there are authorized to be appropriated $850,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(b) Duration of Assistance.--During the period beginning October 
1, 2002, and ending September 30, 2008, the Secretary, in accordance 
with the provisions of this subpart, shall make payments to State 
educational agencies for the purpose of this subpart.

``SEC. 5303. DEFINITION OF EFFECTIVE SCHOOLS PROGRAM.

    ``In this subpart the term `effective schools program' means a 
school-based program that--
            ``(1) may encompass preschool through secondary school 
        levels; and
            ``(2) has the objectives of--
                    ``(A) promoting school-level planning, 
                instructional improvement, and staff development for 
                all personnel;
                    ``(B) increasing the academic performance levels of 
                all children and particularly educationally 
                disadvantaged children; and
                    ``(C) achieving as an ongoing condition in the 
                school the following factors identified through 
                effective schools research:
                            ``(i) Strong and effective administrative 
                        and instructional leadership.
                            ``(ii) A safe and orderly school 
                        environment that enables teachers and students 
                        to focus on academic performance.
                            ``(iii) Continuous assessment of students 
                        and initiatives to evaluate instructional 
                        techniques.

                 ``Chapter 1--State and Local Programs

``SEC. 5311. ALLOTMENT TO STATES.

    ``(a) Reservations.--From the sums appropriated to carry out this 
subpart in any fiscal year, the Secretary shall reserve not more than 1 
percent for payments to outlying areas to be allotted in accordance 
with their respective needs.
    ``(b) Allotment.--From the remainder of such sums, the Secretary 
shall allot to each State an amount which bears the same ratio to the 
amount of such remainder as the school-age population of the State 
bears to the school-age population of all States, except that no State 
shall receive less than an amount equal to \1/2\ of 1 percent of such 
remainder.
    ``(c) Definitions.--In this chapter:
            ``(1) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
            ``(2) State.--The term `State' includes the 50 States of 
        the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 5312. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Formula.--From the sums made available each year to carry out 
this subpart, the State educational agency shall distribute not less 
than 85 percent to local educational agencies within such State 
according to the relative enrollments in public and private elementary 
schools and secondary schools within the school districts of such 
agencies, adjusted, in accordance with criteria approved by the 
Secretary, to provide higher per pupil allocations to local educational 
agencies serving the greatest numbers or percentages of children whose 
education imposes a higher than average cost per child, such as--
            ``(1) children living in areas with high concentrations of 
        low-income families;
            ``(2) children from low-income families; and
            ``(3) children living in sparsely populated areas.
    ``(b) Calculation of Enrollments.--
            ``(1) In general.--The calculation of relative enrollments 
        under subsection (a) shall be on the basis of the total of--
                    ``(A) the number of children enrolled in public 
                schools; and
                    ``(B) the number of children enrolled in private 
                nonprofit schools that desire that their children 
                participate in programs or projects assisted under this 
                subpart, for the fiscal year preceding the fiscal year 
                for which the determination is made.
            ``(2) Construction.--Nothing in this subsection shall 
        diminish the responsibility of local educational agencies to 
        contact, on an annual basis, appropriate officials from private 
        nonprofit schools within the areas served by such agencies in 
        order to determine whether such schools desire that their 
        children participate in programs assisted under this subpart.
            ``(3) Adjustments.--
                    ``(A) In general.--Relative enrollments under 
                subsection (a) shall be adjusted, in accordance with 
                criteria approved by the Secretary under subparagraph 
                (B), to provide higher per pupil allocations only to 
                local educational agencies which serve the greatest 
                numbers or percentages of--
                            ``(i) children living in areas with high 
                        concentrations of low-income families;
                            ``(ii) children from low-income families; 
                        or
                            ``(iii) children living in sparsely 
                        populated areas.
                    ``(B) Criteria.--The Secretary shall review 
                criteria submitted by a State educational agency for 
                adjusting allocations under subparagraph (A) and shall 
                approve such criteria only if the Secretary determines 
                that such criteria are reasonably calculated to produce 
                an adjusted allocation that reflects the relative needs 
                within the State's local educational agencies based on 
                the factors set forth in subparagraph (A).
    ``(c) Payment of Allocations.--
            ``(1) Distribution.--From the funds paid to a State 
        educational agency pursuant to section 5311 for a fiscal year, 
        a State educational agency shall distribute to each eligible 
        local educational agency which has submitted an application as 
        required in section 5333 the amount of such local educational 
        agency's allocation as determined under subsection (a).
            ``(2) Additional funds.--
                    ``(A) In general.--Additional funds resulting from 
                higher per pupil allocations provided to a local 
                educational agency on the basis of adjusted enrollments 
                of children described in subsection (a), may, at the 
                discretion of the local educational agency, be 
                allocated for expenditures to provide services for 
                children enrolled in public and private nonprofit 
                schools in direct proportion to the number of children 
                described in subsection (a) and enrolled in such 
                schools within the local educational agency.
                    ``(B) Requirement.--In any fiscal year, any local 
                educational agency that elects to allocate such 
                additional funds in the manner described in 
                subparagraph (A) shall allocate all additional funds to 
                schools within the local educational agency in such 
                manner.
                    ``(C) Construction.--The provisions of 
                subparagraphs (A) and (B) may not be construed to 
                require any school to limit the use of such additional 
                funds to the provision of services to specific students 
                or categories of students.

                      ``Chapter 2--State Programs

``SEC. 5321. STATE USES OF FUNDS.

    ``(a) Authorized Activities.--A State educational agency may use 
funds made available for State use under this subpart only for--
            ``(1) State administration of programs under this subpart, 
        including--
                    ``(A) supervision of the allocation of funds to 
                local educational agencies;
                    ``(B) planning, supervision, and processing of 
                State funds; and
                    ``(C) monitoring and evaluation of programs and 
                activities under this subpart;
            ``(2) support for planning, designing, and initial 
        implementation of charter schools as described in subpart 1 of 
        part A;
            ``(3) support for designing and implementation of high-
        quality yearly student assessments;
            ``(4) support for implementation of State and local 
        standards; and
            ``(5) technical assistance and direct grants to local 
        educational agencies, and statewide education reform 
        activities, including effective schools programs which assist 
        local educational agencies to provide targeted assistance.
    ``(b) Limitations and Requirements.--Not more than 15 percent of 
funds available for State programs under this subpart in any fiscal 
year may be used for State administration under subsection (a)(1).

``SEC. 5322. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State which desires to receive 
assistance under this subpart shall submit to the Secretary an 
application which--
            ``(1) designates the State educational agency as the State 
        agency responsible for administration and supervision of 
        programs assisted under this subpart;
            ``(2) provides for a biennial submission of data on the use 
        of funds, the types of services furnished, and the students 
        served under this subpart;
            ``(3) sets forth the allocation of such funds required to 
        implement section 5342;
            ``(4) provides that the State educational agency will keep 
        such records and provide such information to the Secretary as 
        may be required for fiscal audit and program evaluation 
        (consistent with the responsibilities of the Secretary under 
        this section);
            ``(5) provides assurances that, apart from technical and 
        advisory assistance and monitoring compliance with this 
        subpart, the State educational agency has not exercised and 
        will not exercise any influence in the decisionmaking processes 
        of local educational agencies as to the expenditure made 
        pursuant to an application under section 5333;
            ``(6) contains assurances that there is compliance with the 
        specific requirements of this subpart; and
            ``(7) provides for timely public notice and public 
        dissemination of the information provided pursuant to paragraph 
        (2).
    ``(b) Period of Application.--An application filed by the State 
under subsection (a) shall be for a period not to exceed 3 years, and 
may be amended annually as may be necessary to reflect changes without 
filing a new application.
    ``(c) Audit Rule.--A local educational agency that receives less 
than an average of $10,000 under this subpart for 3 fiscal years shall 
not be audited more frequently than once every 5 years.

            ``Chapter 3--Local Innovative Education Programs

``SEC. 5331. TARGETED USE OF FUNDS.

    ``(a) General Rule.--Funds made available to local educational 
agencies under section 5312 shall be used for innovative assistance 
described in subsection (b).
    ``(b) Innovative Assistance.--
            ``(1) In general.--The innovative assistance programs 
        referred to in subsection (a) include--
                    ``(A) programs for the acquisition and use of 
                instructional and educational materials, including 
                library services and materials (including media 
                materials), assessments, and other curricular 
                materials;
                    ``(B) programs to improve teaching and learning, 
                including professional development activities, that are 
                consistent with comprehensive State and local systemic 
                education reform efforts;
                    ``(C) activities that encourage and expand 
                improvements throughout the local educational agency 
                that are designed to advance student performance;
                    ``(D) initiatives to generate, maintain, and 
                strengthen parental and community involvement, 
                including initiatives creating activities for school-
                age children and activities to meet the educational 
                needs of children aged birth through 5;
                    ``(E) programs to recruit, hire, and train 
                certified teachers (including teachers certified 
                through State and local alternative routes) in order to 
                reduce class size;
                    ``(F) programs to improve the academic performance 
                of educationally disadvantaged elementary school and 
                secondary school students, including activities to 
                prevent students from dropping out of school;
                    ``(G) programs and activities that expand learning 
                opportunities through best practice models designed to 
                improve classroom learning and teaching;
                    ``(H) programs to combat both student and parental 
                illiteracy;
                    ``(I) technology activities related to the 
                implementation of school-based reform efforts, 
                including professional development to assist teachers 
                and other school personnel (including school library 
                media personnel) regarding how to effectively use 
                technology in the classrooms and the school library 
                media centers involved;
                    ``(J) school improvement programs or activities 
                under section 1116 or 1117;
                    ``(K) programs to provide for the educational needs 
                of gifted and talented children;
                    ``(L) programs to provide same gender schools and 
                classrooms, if equal educational opportunities are made 
                available to students of both sexes, consistent with 
                the Constitution of the United States of America;
                    ``(M) service learning activities; and
                    ``(N) school safety programs.
            ``(2) Requirements.--The innovative assistance programs 
        referred to in subsection (a) shall be--
                    ``(A) tied to promoting high academic standards;
                    ``(B) used to improve student performance; and
                    ``(C) part of an overall education reform strategy.

``SEC. 5332. ADMINISTRATIVE AUTHORITY.

    ``In order to conduct the activities authorized by this subpart, 
each State or local educational agency may use funds made available 
under this subpart to make grants to and to enter into contracts with 
local educational agencies, institutions of higher education, 
libraries, museums, and other public and private nonprofit agencies, 
organizations, and institutions.

``SEC. 5333. LOCAL APPLICATIONS.

    ``(a) Contents of Application.--A local educational agency or 
consortium of such agencies may receive an allocation of funds under 
this subpart for any year for which an application is submitted to the 
State educational agency and such application is certified to meet the 
requirements of this section. The State educational agency shall 
certify any such application if such application--
            ``(1)(A) sets forth the planned allocation of funds among 
        innovative assistance programs described in section 5331 and 
        describes the programs, projects, and activities designed to 
        carry out such innovative assistance which the local 
        educational agency intends to support, together with the 
        reasons for the selection of such programs, projects, and 
        activities; and
            ``(B) sets forth the allocation of such funds required to 
        implement section 5342;
            ``(2) describes how assistance under this subpart will 
        contribute to improving student achievement or improving the 
        quality of education for students;
            ``(3) provides assurances of compliance with the provisions 
        of this subpart, including the participation of children 
        enrolled in private, nonprofit schools in accordance with 
        section 5342;
            ``(4) provides an assurance that the local educational 
        agency will keep such records, and provide such information to 
        the State educational agency, as reasonably may be required for 
        fiscal audit and program evaluation, consistent with the 
        responsibilities of the State educational agency under this 
        subpart; and
            ``(5) provides in the allocation of funds for the 
        assistance authorized by this subpart, and in the design, 
        planning, and implementation of such programs, for systematic 
        consultation with parents of children attending elementary 
        schools and secondary schools in the area served by the local 
        educational agency, with teachers and administrative personnel 
        in such schools, and with other groups involved in the 
        implementation of this subpart (such as librarians, school 
        counselors, and other pupil services personnel) as may be 
        considered appropriate by the local educational agency.
    ``(b) Period of Application.--An application filed by a local 
educational agency under subsection (a) shall be for a period not to 
exceed 3 fiscal years, may provide for the allocation of funds to 
programs for a period of 3 years, and may be amended annually as may be 
necessary to reflect changes without filing a new application.
    ``(c) Local Educational Agency Discretion.--Subject to the 
limitations and requirements of this subpart, a local educational 
agency shall have complete discretion in determining how funds under 
this chapter shall be divided among the areas of targeted assistance. 
In exercising such discretion, a local educational agency shall ensure 
that expenditures under this chapter carry out the purposes of this 
subpart and are used to meet the educational needs within the schools 
of such local educational agency.

             ``Chapter 4--General Administrative Provisions

``SEC. 5341. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

    ``(a) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allocation of funds under 
        this subpart for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of the allocation of funds under this subpart in any 
        fiscal year in the exact proportion to which the State fails to 
        meet the requirements of paragraph (1) by falling below 90 
        percent of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this section if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(b) Federal Funds Supplementary.--A State or local educational 
agency may use and allocate funds received under this subpart only so 
as to supplement and, to the extent practical, increase the level of 
funds that would, in the absence of Federal funds made available under 
this subpart, be made available from non-Federal sources, and in no 
case may such funds be used so as to supplant funds from non-Federal 
sources.

``SEC. 5342. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--
            ``(1) In general.--To the extent consistent with the number 
        of children in the school district of a local educational 
        agency which is eligible to receive funds under this subpart or 
        which serves the area in which a program or project assisted 
        under this subpart is located who are enrolled in private 
        nonprofit elementary and secondary schools, or with respect to 
        instructional or personnel training programs funded by the 
        State educational agency from funds made available for State 
        use, such agency, after consultation with appropriate private 
        school officials, shall provide for the benefit of such 
        children in such schools secular, neutral, and nonideological 
        services, materials, and equipment, including the participation 
        of the teachers of such children (and other educational 
        personnel serving such children) in training programs, and the 
        repair, minor remodeling, or construction of public facilities 
        as may be necessary for their provision (consistent with 
        subsection (c) of this section), or, if such services, 
        materials, and equipment are not feasible or necessary in one 
        or more such private schools as determined by the local 
        educational agency after consultation with the appropriate 
        private school officials, shall provide such other arrangements 
        as will assure equitable participation of such children in the 
        purposes and benefits of this subpart.
            ``(2) Other provisions for services.--If no program or 
        project is carried out under paragraph (1) in the school 
        district of a local educational agency, the State educational 
        agency shall make arrangements, such as through contracts with 
        nonprofit agencies or organizations, under which children in 
        private schools in such district are provided with services and 
        materials to the extent that would have occurred if the local 
        educational agency had received funds under this subpart.
            ``(3) Application of requirements.--The requirements of 
        this section relating to the participation of children, 
        teachers, and other personnel serving such children shall apply 
        to programs and projects carried out under this subpart by a 
        State or local educational agency, whether directly or through 
        grants to or contracts with other public or private agencies, 
        institutions, or organizations.
    ``(b) Equal Expenditures.--Expenditures for programs pursuant to 
subsection (a) shall be equal (consistent with the number of children 
to be served) to expenditures for programs under this subpart for 
children enrolled in the public schools of the local educational 
agency, taking into account the needs of the individual children and 
other factors which relate to such expenditures, and when funds 
available to a local educational agency under this subpart are used to 
concentrate programs or projects on a particular group, attendance 
area, or grade or age level, children enrolled in private schools who 
are included within the group, attendance area, or grade or age level 
selected for such concentration shall, after consultation with the 
appropriate private school officials, be assured equitable 
participation in the purposes and benefits of such programs or 
projects.
    ``(c) Funds.--
            ``(1) Administration of funds and property.--The control of 
        funds provided under this subpart, and title to materials, 
        equipment, and property repaired, remodeled, or constructed 
        with such funds, shall be in a public agency for the uses and 
        purposes provided in this subpart, and a public agency shall 
        administer such funds and property.
            ``(2) Provision of services.--The provision of services 
        pursuant to this subpart shall be provided by employees of a 
        public agency or through contract by such public agency with a 
        person, an association, agency, or corporation who or which, in 
        the provision of such services, is independent of such private 
        school and of any religious organizations, and such employment 
        or contract shall be under the control and supervision of such 
        public agency, and the funds provided under this subpart shall 
        not be commingled with State or local funds.
    ``(d) State Prohibition Waiver.--If by reason of any provision of 
law a State or local educational agency is prohibited from providing 
for the participation in programs of children enrolled in private 
elementary schools and secondary schools, as required by this section, 
the Secretary shall waive such requirements and shall arrange for the 
provision of services to such children through arrangements which shall 
be subject to the requirements of this section.
    ``(e) Waiver and Provision of Services.--
            ``(1) Failure to comply.--If the Secretary determines that 
        a State or a local educational agency has substantially failed 
        or is unwilling to provide for the participation on an 
        equitable basis of children enrolled in private elementary 
        schools and secondary schools as required by this section, the 
        Secretary may waive such requirements and shall arrange for the 
        provision of services to such children through arrangements 
        which shall be subject to the requirements of this section.
            ``(2) Withholding of allocation.--Pending final resolution 
        of any investigation or complaint that could result in a 
        determination under this subsection or subsection (d), the 
        Secretary may withhold from the allocation of the affected 
        State or local educational agency the amount estimated by the 
        Secretary to be necessary to pay the cost of those services.
    ``(f) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines that 
there will no longer be any failure or inability on the part of the 
State or local educational agency to meet the requirements of 
subsections (a) and (b).
    ``(g) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allotment of the 
State under this subpart.
    ``(h) Review.--
            ``(1) Written objections.--The Secretary shall not take any 
        final action under this section until the State educational 
        agency and the local educational agency affected by such action 
        have had an opportunity, for not less than 45 days after 
        receiving written notice thereof, to submit written objections 
        and to appear before the Secretary or the Secretary's designee 
        to show cause why that action should not be taken.
            ``(2) Court action.--If a State or local educational agency 
        is dissatisfied with the Secretary's final action after a 
        proceeding under paragraph (1), such agency may, not later than 
        60 days after notice of such action, file with the United 
        States court of appeals for the circuit in which such State is 
        located a petition for review of that action. A copy of the 
        petition shall be transmitted by the clerk of the court to the 
        Secretary. The Secretary thereupon shall file in the court the 
        record of the proceedings on which the Secretary based this 
        action, as provided in section 2112 of title 28, United States 
        Code.
            ``(3) Remand to secretary.--The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive; but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence and the 
        Secretary may make new or modified findings of fact and may 
        modify the Secretary's previous action, and shall file in the 
        court the record of the further proceedings. Such new or 
        modified findings of fact shall likewise be conclusive if 
        supported by substantial evidence.
            ``(4) Court review.--Upon the filing of such petition, the 
        court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part. The 
        judgment of the court shall be subject to review by the Supreme 
        Court of the United States upon certiorari or certification as 
        provided in section 1254 of title 28, United States Code.
    ``(i) Prior Determination.--Any bypass determination by the 
Secretary under chapter 2 of part I of this Act (as such chapter was in 
effect on the day preceding the date of enactment of the Improving 
America's Schools Act of 1994) shall, to the extent consistent with the 
purposes of this subpart, apply to programs under this subpart.

``SEC. 5343. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to State and local educational agencies 
under this subpart.
    ``(b) Rulemaking.--The Secretary shall issue regulations under this 
subpart to the extent that such regulations are necessary to ensure 
that there is compliance with the specific requirements and assurances 
required by this subpart.
    ``(c) Availability of Appropriations.--Notwithstanding any other 
provision of law, unless expressly in limitation of this subsection, 
funds appropriated in any fiscal year to carry out activities under 
this subpart shall become available for obligation on July 1 of such 
fiscal year and shall remain available for obligation until the end of 
the subsequent fiscal year.

   ``PART C--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

``SEC. 5401. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY 
              AND SECONDARY EDUCATION PROGRAMS.

    ``(a) Consolidation of Administrative Funds.--
            ``(1) In general.--A State educational agency may 
        consolidate the amounts specifically made available to such 
        agency for State administration under one or more of the 
        programs specified under paragraph (2) if such State 
        educational agency can demonstrate that the majority of such 
        agency's resources come from non-Federal sources.
            ``(2) Applicability.--This section applies to programs 
        under title I, those covered programs described in 
        subparagraphs (C), (D), (E), and (F) of section 3(10).
    ``(b) Use of Funds.--
            ``(1) In general.--A State educational agency shall use the 
        amount available under this section for the administration of 
        the programs included in the consolidation under subsection 
        (a).
            ``(2) Additional uses.--A State educational agency may also 
        use funds available under this section for administrative 
        activities designed to enhance the effective and coordinated 
        use of funds under the programs included in the consolidation 
        under subsection (a), such as--
                    ``(A) the coordination of such programs with other 
                Federal and non-Federal programs;
                    ``(B) the establishment and operation of peer-
                review mechanisms under this Act;
                    ``(C) the administration of this part, part D, and 
                sections 3 through 17;
                    ``(D) the dissemination of information regarding 
                model programs and practices; and
                    ``(E) technical assistance under programs specified 
                in subsection (a)(2).
    ``(c) Records.--A State educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of programs included in the consolidation under 
subsection (a).
    ``(d) Review.--To determine the effectiveness of State 
administration under this section, the Secretary may periodically 
review the performance of State educational agencies in using 
consolidated administrative funds under this section and take such 
steps as the Secretary finds appropriate to ensure the effectiveness of 
such administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to such agency under this 
section for administration, such agency may use such funds during the 
applicable period of availability as funds available under one or more 
programs included in the consolidation under subsection (a).
    ``(f) Consolidation of Funds for Standards and Assessment 
Development.--In order to develop challenging State standards and 
assessments, a State educational agency may consolidate the amounts 
made available to such agency for such purposes under title I of this 
Act.

``SEC. 5402. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

    ``A State educational agency that also serves as a local 
educational agency, in such agency's applications or plans under this 
Act, shall describe how such agency will eliminate duplication in the 
conduct of administrative functions.

``SEC. 5403. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of the 
Secretary, a local educational agency, with the approval of its State 
educational agency, may consolidate and use for the administration of 
one or more covered programs for any fiscal year not more than the 
percentage, established in each covered program, of the total amount 
available to the local educational agency under such covered programs.
    ``(b) State Procedures.--Within one year from the date of enactment 
of the Improving America's Schools Act of 1994, a State educational 
agency shall, in collaboration with local educational agencies in the 
State, establish procedures for responding to requests from local 
educational agencies to consolidate administrative funds under 
subsection (a) and for establishing limitations on the amount of funds 
under covered programs that may be used for administration on a 
consolidated basis.
    ``(c) Conditions.--A local educational agency that consolidates 
administrative funds under this section for any fiscal year shall not 
use any other funds under the programs included in the consolidation 
for administration for that fiscal year.
    ``(d) Uses of Administrative Funds.--A local educational agency 
that consolidates administrative funds under this section may use such 
consolidated funds for the administration of covered programs and for 
the uses described in section 5401(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual covered program, to account for costs 
relating to the administration of covered programs included in the 
consolidation.

``SEC. 5404. ADMINISTRATIVE FUNDS STUDIES.

    ``(a) Federal Funds Study.--
            ``(1) In general.--The Secretary shall conduct a study of 
        the use of funds under this Act for the administration, by 
        State and local educational agencies, of all covered programs, 
        including the percentage of grant funds used for such purpose 
        in all covered programs.
            ``(2) State data.--Beginning in fiscal year 1995 and each 
        succeeding fiscal year thereafter, each State educational 
        agency which receives funds under title I shall submit to the 
        Secretary a report on the use of title I funds for the State 
        administration of activities assisted under title I. Such 
        report shall include the proportion of State administrative 
        funds provided under section 1903 that are expended for--
                    ``(A) basic program operation and compliance 
                monitoring;
                    ``(B) statewide program services such as 
                development of standards and assessments, curriculum 
                development, and program evaluation; and
                    ``(C) technical assistance and other direct support 
                to local educational agencies and schools.
            ``(3) Federal funds report.--The Secretary shall complete 
        the study conducted under this section not later than July 1, 
        1997, and shall submit to the President and the appropriate 
        committees of the Congress a report regarding such study within 
        30 days of the completion of such study.
            ``(4) Results.--Based on the results of the study described 
        in subsection (a)(1), which may include collection and analysis 
        of the data under paragraph (2) and section 410(b) of the 
        Improving America's Schools Act of 1994, the Secretary shall--
                    ``(A) develop a definition of what types of 
                activities constitute the administration of programs 
                under this Act by State and local educational agencies; 
                and
                    ``(B) within one year of the completion of such 
                study, promulgate final regulations or guidelines 
                regarding the use of funds for administration under all 
                programs, including the use of such funds on a 
                consolidated basis and limitations on the amount of 
                such funds that may be used for administration where 
                such limitation is not otherwise specified in law.
    ``(b) General Administrative Funds Study and Report.--Upon the date 
of completion of the pilot model data system described in section 
410(b) of the Improving America's Schools Act of 1994, the Secretary 
shall study the information obtained through the use of such data 
system and other relevant information, as well as any other data 
systems which are in use on such date that account for administrative 
expenses at the school, local educational agency, and State educational 
agency level, and shall report to the Congress not later than July 1, 
1997, regarding--
            ``(1) the potential for the reduction of administrative 
        expenses at the school, local educational agency, and State 
        educational agency levels;
            ``(2) the potential usefulness of such data system to 
        reduce such administrative expenses;
            ``(3) any other methods which may be employed by schools, 
        local educational agencies or State educational agencies to 
        reduce administrative expenses and maximize the use of funds 
        for functions directly affecting student learning; and
            ``(4) if appropriate, steps which may be taken to assist 
        schools, local educational agencies and State educational 
        agencies to account for and reduce administrative expenses.

``SEC. 5405. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR 
              FUNDS.

    ``(a) General Authority.--
            ``(1) Transfer.--The Secretary shall transfer to the 
        Department of the Interior, as a consolidated amount for 
        covered programs, the Indian education programs under part A of 
        title VII of this Act, and the education for homeless children 
        and youth program under subtitle B of title VII of the Stewart 
        B. McKinney Homeless Assistance Act, the amounts allotted to 
        the Department of the Interior under those programs.
            ``(2) Agreement.--(A) The Secretary and the Secretary of 
        the Interior shall enter into an agreement, consistent with the 
        requirements of the programs specified in paragraph (1), for 
        the distribution and use of those program funds under terms 
        that the Secretary determines best meet the purposes of those 
        programs.
            ``(B) The agreement shall--
                    ``(i) set forth the plans of the Secretary of the 
                Interior for the use of the amount transferred, and set 
                forth performance measures to assess program 
                effectiveness, including measurable goals and 
                objectives; and
                    ``(ii) be developed in consultation with Indian 
                tribes.
    ``(b) Administration.--The Department of the Interior may use not 
more than 1.5 percent of the funds consolidated under this section for 
such department's costs related to the administration of the funds 
transferred under this section.

``SEC. 5406. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.

    ``With the approval of its State educational agency, a local 
educational agency that determines for any fiscal year that funds under 
a covered program (other than part A of title I) are not needed for the 
purpose of that covered program, may use such funds, not to exceed five 
percent of the total amount of such local educational agency's funds 
under that covered program, for the purpose of another covered program.

``PART D--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

``SEC. 5501. PURPOSE.

    ``It is the purpose of this part to improve teaching and learning 
by encouraging greater cross-program coordination, planning, and 
service delivery under this Act and enhanced integration of programs 
under this Act with educational activities carried out with State and 
local funds.

``SEC. 5502. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

    ``(a) General Authority.--
            ``(1) Simplification.--In order to simplify application 
        requirements and reduce the burden for State educational 
        agencies under this Act, the Secretary, in accordance with 
        subsection (b), shall establish procedures and criteria under 
        which a State educational agency may submit a consolidated 
        State plan or a consolidated State application meeting the 
        requirements of this section for--
                    ``(A) each of the covered programs in which the 
                State participates; and
                    ``(B) the additional programs described in 
                paragraph (2).
            ``(2) Additional programs.--A State educational agency may 
        also include in its consolidated State plan or consolidated 
        State application--
                    ``(A) the Even Start program under part B of title 
                I;
                    ``(B) the Prevention and Intervention Programs for 
                Youth Who Are Neglected, Delinquent, or At-Risk of 
                Dropping Out under part D of title I; and
                    ``(C) such other programs as the Secretary may 
                designate.
            ``(3) Consolidated applications and plans.--A State 
        educational agency that submits a consolidated State plan or a 
        consolidated State application under this section shall not be 
        required to submit separate State plans or applications under 
        any of the programs to which the consolidated State plan or 
        consolidated State application under this section applies.
    ``(b) Collaboration.--
            ``(1) In general.--In establishing criteria and procedures 
        under this section, the Secretary shall collaborate with State 
        educational agencies and, as appropriate, with other State 
        agencies, local educational agencies, public and private 
        nonprofit agencies, organizations, and institutions, private 
        schools, and representatives of parents, students, and 
        teachers.
            ``(2) Contents.--Through the collaborative process 
        described in subsection (b)(1), the Secretary shall establish, 
        for each program under the Act to which this section applies, 
        the descriptions, information, assurances, and other material 
        required to be included in a consolidated State plan or 
        consolidated State application.
            ``(3) Necessary materials.--The Secretary shall require 
        only descriptions, information, assurances, and other materials 
        that are absolutely necessary for the consideration of the 
        consolidated State plan or consolidated State application.

``SEC. 5503. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
              ASSURANCES.

    ``(a) Assurances.--A State educational agency that submits a 
consolidated State plan or consolidated State application under this 
Act, whether separately or under section 5502, shall have on file with 
the Secretary a single set of assurances, applicable to each program 
for which such plan or application is submitted, that provides that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency, in a nonprofit private agency, 
        institution, or organization, or in an Indian tribe if the law 
        authorizing the program provides for assistance to such 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such funds and property to the extent required by the 
        authorizing law;
            ``(3) the State will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program;
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation; and
                    ``(C) the adoption of written procedures for the 
                receipt and resolution of complaints alleging 
                violations of law in the administration of such 
                programs;
            ``(4) the State will cooperate in carrying out any 
        evaluation of each such program conducted by or for the 
        Secretary or other Federal officials;
            ``(5) the State will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to the State under each 
        such program;
            ``(6) the State will--
                    ``(A) make reports to the Secretary as may be 
                necessary to enable the Secretary to perform the 
                Secretary's duties under each such program; and
                    ``(B) maintain such records, provide such 
                information to the Secretary, and afford access to the 
                records as the Secretary may find necessary to carry 
                out the Secretary's duties; and
            ``(7) before the plan or application was submitted to the 
        Secretary, the State has afforded a reasonable opportunity for 
        public comment on the plan or application and has considered 
        such comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 5504. ADDITIONAL COORDINATION.

    ``(a) Additional Coordination.--In order to explore ways for State 
educational agencies to reduce administrative burdens and promote the 
coordination of the education services of this Act with other health 
and social service programs administered by such agencies, the 
Secretary is directed to seek agreements with other Federal agencies 
(including the Departments of Health and Human Services, Justice, Labor 
and Agriculture) for the purpose of establishing procedures and 
criteria under which a State educational agency would submit a 
consolidated State plan or consolidated State application that meets 
the requirements of the covered programs.
    ``(b) Report.--The Secretary shall report to the relevant 
committees 6 months after the date of enactment of the Improving 
America's Schools Act of 1994.

``SEC. 5505. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

    ``(a) General Authority.--A local educational agency receiving 
funds under more than one covered program may submit plans or 
applications to the State educational agency under such programs on a 
consolidated basis.
    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has submitted and had approved a consolidated 
State plan or application under section 5502 may require local 
educational agencies in the State receiving funds under more than one 
program included in the consolidated State plan or consolidated State 
application to submit consolidated local plans or applications under 
such programs.
    ``(c) Collaboration.--A State educational agency shall collaborate 
with local educational agencies in the State in establishing procedures 
for the submission of the consolidated State plans or consolidated 
State applications under this section.
    ``(d) Necessary Materials.--The State educational agency shall 
require only descriptions, information, assurances, and other material 
that are absolutely necessary for the consideration of the local 
educational agency plan or application.

``SEC. 5506. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant other than a State educational 
agency that submits a plan or application under this Act, whether 
separately or pursuant to section 5504, shall have on file with the 
State educational agency a single set of assurances, applicable to each 
program for which a plan or application is submitted, that provides 
that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency or in a nonprofit private agency, 
        institution, organization, or Indian tribe, if the law 
        authorizing the program provides for assistance to such 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such funds and property to the extent required by the 
        authorizing statutes;
            ``(3) the applicant will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program; 
                and
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation;
            ``(4) the applicant will cooperate in carrying out any 
        evaluation of each such program conducted by or for the State 
        educational agency, the Secretary or other Federal officials;
            ``(5) the applicant will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to such applicant under 
        each such program;
            ``(6) the applicant will--
                    ``(A) make reports to the State educational agency 
                and the Secretary as may be necessary to enable such 
                agency and the Secretary to perform their duties under 
                each such program; and
                    ``(B) maintain such records, provide such 
                information, and afford access to the records as the 
                State educational agency or the Secretary may find 
                necessary to carry out the State educational agency's 
                or the Secretary's duties; and
            ``(7) before the application was submitted, the applicant 
        afforded a reasonable opportunity for public comment on the 
        application and has considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act does not apply to programs under this Act.

                 ``PART E--ADVANCED PLACEMENT PROGRAMS

``SEC. 5601. SHORT TITLE.

    ``This part may be cited as the `Access to High Standards Act'.

``SEC. 5602. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds that--
            ``(1) far too many students are not being provided 
        sufficient academic preparation in secondary school, which 
        results in limited employment opportunities, college dropout 
        rates of over 25 percent for the first year of college, and 
        remediation for almost one-third of incoming college freshmen;
            ``(2) there is a growing consensus that raising academic 
        standards, establishing high academic expectations, and showing 
        concrete results are at the core of improving public education;
            ``(3) modeling academic standards on the well-known program 
        of advanced placement courses is an approach that many 
        education leaders and almost half of all States have endorsed;
            ``(4) advanced placement programs already are providing 30 
        different college-level courses, serving almost 60 percent of 
        all secondary schools, reaching over 1,000,000 students (of 
        whom 80 percent attend public schools, 55 percent are females, 
        and 30 percent are minorities), and providing test scores that 
        are accepted for college credit at over 3,000 colleges and 
        universities, every university in Germany, France, and Austria, 
        and most institutions in Canada and the United Kingdom;
            ``(5) 24 States are now funding programs to increase 
        participation in advanced placement programs, including 19 
        States that provide funds for advanced placement teacher 
        professional development, 3 States that require that all public 
        secondary schools offer advanced placement courses, 10 States 
        that pay the fees for advanced placement tests for some or all 
        students, and 4 States that require that their public 
        universities grant uniform academic credit for scores of 3 or 
        better on advanced placement tests; and
            ``(6) the State programs described in paragraph (5) have 
        shown the responsiveness of schools and students to such 
        programs, raised the academic standards both for students 
        participating in such programs and for other children taught by 
        teachers who are involved in advanced placement courses, and 
        have shown tremendous success in increasing enrollment, 
        achievement, and minority participation in advanced placement 
        programs.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to encourage more of the 600,000 students who take 
        advanced placement courses but do not take advanced placement 
        exams each year to demonstrate their achievements through 
        taking the exams;
            ``(2) to build on the many benefits of advanced placement 
        programs for students, which benefits may include the 
        acquisition of skills that are important to many employers, 
        Scholastic Aptitude Tests (SAT) scores that are 100 points 
        above the national averages, and the achievement of better 
        grades in secondary school and in college than the grades of 
        students who have not participated in the programs;
            ``(3) to support State and local efforts to raise academic 
        standards through advanced placement programs, and thus further 
        increase the number of students who participate and succeed in 
        advanced placement programs;
            ``(4) to increase the availability and broaden the range of 
        schools that have advanced placement programs, which programs 
        are still often distributed unevenly among regions, States, and 
        even secondary schools within the same school district, while 
        also increasing and diversifying student participation in the 
        programs;
            ``(5) to build on the State programs described in 
        subsection (a)(5) and demonstrate that larger and more diverse 
        groups of students can participate and succeed in advanced 
        placement programs;
            ``(6) to provide greater access to advanced placement 
        courses for low-income and other disadvantaged students;
            ``(7) to provide access to advanced placement courses for 
        secondary school juniors at schools that do not offer advanced 
        placement programs, increase the rate of secondary school 
        juniors and seniors who participate in advanced placement 
        courses to 25 percent of the secondary school student 
        population, and increase the numbers of students who receive 
        advanced placement test scores for which college academic 
        credit is awarded; and
            ``(8) to increase the participation of low-income 
        individuals in taking advanced placement tests through the 
        payment or partial payment of the costs of the advanced 
        placement test fees.

``SEC. 5603. FUNDING DISTRIBUTION RULE.

    ``From amounts appropriated under section 5608 for a fiscal year, 
the Secretary shall give first priority to funding activities under 
section 5606, and shall distribute any remaining funds not so applied 
according to the following ratio:
            ``(1) Seventy percent of the remaining funds shall be 
        available to carry out section 5604.
            ``(2) Thirty percent of the remaining funds shall be 
        available to carry out section 5605.

``SEC. 5604. ADVANCED PLACEMENT PROGRAM GRANTS.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts appropriated under section 
        5608 and made available under section 5603(1) for a fiscal 
        year, the Secretary shall award grants, on a competitive basis, 
        to eligible entities to enable the eligible entities to carry 
        out the authorized activities described in subsection (c).
            ``(2) Duration and payments.--
                    ``(A) Duration.--The Secretary shall award a grant 
                under this section for a period of 3 years.
                    ``(B) Payments.--The Secretary shall make grant 
                payments under this section on an annual basis.
            ``(3) Definition of eligible entity.--In this section, the 
        term `eligible entity' means a State educational agency or a 
        local educational agency in the State.
    ``(b) Priority.--In awarding grants under this section the 
Secretary shall give priority to eligible entities submitting 
applications under subsection (d) that demonstrate--
            ``(1) a pervasive need for access to advanced placement 
        incentive programs;
            ``(2) the involvement of business and community 
        organizations in the activities to be assisted;
            ``(3) the availability of matching funds from State or 
        local sources to pay for the cost of activities to be assisted;
            ``(4) a focus on developing or expanding advanced placement 
        programs and participation in the core academic areas of 
        English, mathematics, and science; and
            ``(5)(A) in the case of an eligible entity that is a State 
        educational agency, the State educational agency carries out 
        programs in the State that target--
                    ``(i) local educational agencies serving schools 
                with a high concentration of low-income students; or
                    ``(ii) schools with a high concentration of low-
                income students; or
            ``(B) in the case of an eligible entity that is a local 
        educational agency, the local educational agency serves schools 
        with a high concentration of low-income students.
    ``(c) Authorized Activities.--An eligible entity may use grant 
funds under this section to expand access for low-income individuals to 
advanced placement incentive programs that involve--
            ``(1) teacher training;
            ``(2) preadvanced placement course development;
            ``(3) curriculum coordination and articulation between 
        grade levels that prepare students for advanced placement 
        courses;
            ``(4) curriculum development;
            ``(5) books and supplies; and
            ``(6) any other activity directly related to expanding 
        access to and participation in advanced placement incentive 
        programs particularly for low-income individuals.
    ``(d) Application.--Each eligible entity desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    ``(e) Data Collection and Reporting.--
            ``(1) Data collection.--Each eligible entity receiving a 
        grant under this section shall annually report to the 
        Secretary--
                    ``(A) the number of students taking advanced 
                placement courses who are served by the eligible 
                entity;
                    ``(B) the number of advanced placement tests taken 
                by students served by the eligible entity;
                    ``(C) the scores on the advanced placement tests; 
                and
                    ``(D) demographic information regarding individuals 
                taking the advanced placement courses and tests 
                disaggregated by race, ethnicity, sex, English 
                proficiency status, and socioeconomic status.
            ``(2) Report.--The Secretary shall annually compile the 
        information received from each eligible entity under paragraph 
        (1) and report to Congress regarding the information.

``SEC. 5605. ONLINE ADVANCED PLACEMENT COURSES.

    ``(a) Grants Authorized.--From amounts appropriated under section 
5608 and made available under section 5603(2) for a fiscal year, the 
Secretary shall award grants to State educational agencies to enable 
such agencies to award grants to local educational agencies to provide 
students with online advanced placement courses.
    ``(b) State Educational Agency Applications.--
            ``(1) Application required.--Each State educational agency 
        desiring a grant under this section shall submit an application 
        to the Secretary at such time, in such manner, and accompanied 
        by such information as the Secretary may require.
            ``(2) Award basis.--The Secretary shall award grants under 
        this section on a competitive basis.
    ``(c) Grants to Local Educational Agencies.--Each State educational 
agency receiving a grant under subsection (b) shall award grants to 
local educational agencies within the State to carry out activities 
described in subsection (e). In awarding grants under this subsection, 
the State educational agency shall give priority to local educational 
agencies that--
            ``(1) serve high concentrations of low-income students;
            ``(2) serve rural areas; and
            ``(3) the State educational agency determines will not have 
        access to online advanced placement courses without assistance 
        provided under this section.
    ``(d) Contracts.--A local educational agency that receives a grant 
under this section may enter into a contract with a nonprofit or for-
profit organization to provide the online advanced placement courses, 
including contracting for necessary support services.
    ``(e) Uses.--Grant funds provided under this section may be used to 
purchase the online curriculum, to train teachers with respect to the 
use of online curriculum, and to purchase course materials.

``SEC. 5606. ADVANCED PLACEMENT INCENTIVE PROGRAM.

    ``(a) Grants Authorized.--From amounts appropriated under section 
5608 and made available under section 5603 for a fiscal year, the 
Secretary shall award grants to State educational agencies having 
applications approved under subsection (c) to enable the State 
educational agencies to reimburse low-income individuals to cover part 
or all of the costs of advanced placement test fees, if the low-income 
individuals--
            ``(1) are enrolled in an advanced placement class; and
            ``(2) plan to take an advanced placement test.
    ``(b) Award Basis.--In determining the amount of the grant awarded 
to each State educational agency under this section for a fiscal year, 
the Secretary shall consider the number of children eligible to be 
counted under section 1124(c) in the State in relation to the number of 
such children so counted in all the States.
    ``(c) Information Dissemination.--A State educational agency shall 
disseminate information regarding the availability of advanced 
placement test fee payments under this section to eligible individuals 
through secondary school teachers and guidance counselors.
    ``(d) Applications.--Each State educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. At a minimum, each State educational agency 
application shall--
            ``(1) describe the advanced placement test fees the State 
        educational agency will pay on behalf of low-income individuals 
        in the State from grant funds made available under this 
        section;
            ``(2) provide an assurance that any grant funds received 
        under this section, other than funds used in accordance with 
        subsection (e), shall be used only to pay for advanced 
        placement test fees; and
            ``(3) contain such information as the Secretary may require 
        to demonstrate that the State will ensure that a student is 
        eligible for payments under this section, including 
        documentation required under chapter 1 of subpart 2 of part A 
        of title IV of the Higher Education Act of 1965.
    ``(e) Additional Uses of Funds.--If each eligible low-income 
individual in a State pays not more than a nominal fee to take an 
advanced placement test in a core subject, then a State educational 
agency may use grant funds made available under this section that 
remain after advanced placement test fees have been paid on behalf of 
all eligible low-income individuals in the State, for activities 
directly related to increasing--
            ``(1) the enrollment of low-income individuals in advanced 
        placement courses;
            ``(2) the participation of low-income individuals in 
        advanced placement courses; and
            ``(3) the availability of advanced placement courses in 
        schools serving high-poverty areas.
    ``(f) Supplement, Not Supplant.--Grant funds provided under this 
section shall supplement, and not supplant, other non-federal funds 
that are available to assist low-income individuals in paying for the 
cost of advanced placement test fees.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out this section.
    ``(h) Report.--Each State educational agency annually shall report 
to the Secretary information regarding--
            ``(1) the number of low-income individuals in the State who 
        received assistance under this section; and
            ``(2) any activities carried out pursuant to subsection 
        (e).
    ``(i) Definitions.--In this section:
            ``(1) Advanced placement test.--The term `advanced 
        placement test' includes only an advanced placement test 
        approved by the Secretary for the purposes of this section.
            ``(2) Low-income individual.--The term `low-income 
        individual' has the meaning given the term in section 
        402A(g)(2) of the Higher Education Act of 1965.

``SEC. 5607. DEFINITIONS.

    ``In this part:
            ``(1) Advanced placement incentive program.--The term 
        `advanced placement incentive program' means a program that 
        provides advanced placement activities and services to low-
        income individuals.
            ``(2) Advanced placement test.--The term `advanced 
        placement test' means an advanced placement test administered 
        by the College Board or approved by the Secretary.
            ``(3) High concentration of low-income students.--The term 
        `high concentration of low-income students', used with respect 
        to a State educational agency, local educational agency or 
        school, means an agency or school, as the case may be, that 
        serves a student population 40 percent or more of whom are from 
        families with incomes below the poverty level, as determined in 
        the same manner as the determination is made under section 
        1124(c)(2).
            ``(4) Low-income individual.--The term `low-income 
        individual' means, other than for purposes of section 5606, a 
        low-income individual (as defined in section 402A(g)(2) of the 
        Higher Education Act of 1965) who is academically prepared to 
        take successfully an advanced placement test as determined by a 
        school teacher or advanced placement coordinator taking into 
        consideration factors such as enrollment and performance in an 
        advanced placement course or superior academic ability.
            ``(5) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965.
            ``(6) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, Guam, American Samoa, the United 
        States Virgin Islands, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.

``SEC. 5608. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$50,000,000 for fiscal year 2002, and such sums as may be necessary for 
each of the 6 succeeding fiscal years.''.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

SEC. 601. PARENTAL INVOLVEMENT AND ACCOUNTABILITY.

    Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:

          ``TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

                     ``PART A--PARENTAL ASSISTANCE

``SEC. 6101. PARENTAL INFORMATION AND RESOURCE CENTERS.

    ``(a) Purpose.--The purpose of this part is--
            ``(1) to provide leadership, technical assistance, and 
        financial support to nonprofit organizations and local 
        educational agencies to help the organizations and agencies 
        implement successful and effective parental involvement 
        policies, programs, and activities that lead to improvements in 
        student performance;
            ``(2) to strengthen partnerships among parents (including 
        parents of preschool age children), teachers, principals, 
        administrators, and other school personnel in meeting the 
        educational needs of children;
            ``(3) to develop and strengthen the relationship between 
        parents and the school;
            ``(4) to further the developmental progress primarily of 
        children assisted under this part; and
            ``(5) to coordinate activities funded under this part with 
        parental involvement initiatives funded under section 1118 and 
        other provisions of this Act.
    ``(b) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants in each fiscal year to nonprofit organizations, and 
        nonprofit organizations in consortia with local educational 
        agencies, to establish school-linked or school-based parental 
        information and resource centers that provide training, 
        information, and support to--
                    ``(A) parents of children enrolled in elementary 
                schools and secondary schools;
                    ``(B) individuals who work with the parents 
                described in subparagraph (A); and
                    ``(C) State educational agencies, local educational 
                agencies, schools, organizations that support family-
                school partnerships (such as parent-teacher 
                associations), and other organizations that carry out 
                parent education and family involvement programs.
            ``(2) Award rule.--In awarding grants under this part, the 
        Secretary shall ensure that such grants are distributed in all 
        geographic regions of the United States.

``SEC. 6102. APPLICATIONS.

    ``(a) Grants Applications.--
            ``(1) In general.--Each nonprofit organization or nonprofit 
        organization in consortium with a local educational agency that 
        desires a grant under this part shall submit an application to 
        the Secretary at such time and in such manner as the Secretary 
        shall require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1), at a minimum, shall include assurances that the 
        organization or consortium will--
                    ``(A)(i) be governed by a board of directors the 
                membership of which includes parents; or
                    ``(ii) be an organization or consortium that 
                represents the interests of parents;
                    ``(B) establish a special advisory committee the 
                membership of which includes--
                            ``(i) parents described in section 
                        6101(b)(1)(A);
                            ``(ii) representatives of education 
                        professionals with expertise in improving 
                        services for disadvantaged children; and
                            ``(iii) representatives of local elementary 
                        schools and secondary schools who may include 
                        students and representatives from local youth 
                        organizations;
                    ``(C) use at least \1/2\ of the funds provided 
                under this part in each fiscal year to serve areas with 
                high concentrations of low-income families in order to 
                serve parents who are severely educationally or 
                economically disadvantaged;
                    ``(D) operate a center of sufficient size, scope, 
                and quality to ensure that the center is adequate to 
                serve the parents in the area;
                    ``(E) serve both urban and rural areas;
                    ``(F) design a center that meets the unique 
                training, information, and support needs of parents 
                described in section 6101(b)(1)(A), particularly such 
                parents who are educationally or economically 
                disadvantaged;
                    ``(G) demonstrate the capacity and expertise to 
                conduct the effective training, information and support 
                activities for which assistance is sought;
                    ``(H) network with--
                            ``(i) local educational agencies and 
                        schools;
                            ``(ii) parents of children enrolled in 
                        elementary schools and secondary schools;
                            ``(iii) parent training and information 
                        centers assisted under section 682 of the 
                        Individuals with Disabilities Education Act;
                            ``(iv) clearinghouses; and
                            ``(v) other organizations and agencies;
                    ``(I) focus on serving parents described in section 
                6101(b)(1)(A) who are parents of low-income, minority, 
                and limited English proficient, children;
                    ``(J) use part of the funds received under this 
                part to establish, expand, or operate Parents as 
                Teachers programs or Home Instruction for Preschool 
                Youngsters programs;
                    ``(K) provide assistance to parents in such areas 
                as understanding State and local standards and measures 
                of student and school performance; and
                    ``(L) work with State and local educational 
                agencies to determine parental needs and delivery of 
                services.
    ``(b) Grant Renewal.--For each fiscal year after the first fiscal 
year an organization or consortium receives assistance under this part, 
the organization or consortium shall demonstrate in the application 
submitted for such fiscal year after the first fiscal year that a 
portion of the services provided by the organization or consortium is 
supported through non-Federal contributions, which contributions may be 
in cash or in kind.

``SEC. 6103. USES OF FUNDS.

    ``(a) In General.--Grant funds received under this part shall be 
used--
            ``(1) to assist parents in participating effectively in 
        their children's education and to help their children meet 
        State and local standards, such as assisting parents--
                    ``(A) to engage in activities that will improve 
                student performance, including understanding the 
                accountability systems in place within their State 
                educational agency and local educational agency and 
                understanding their children's educational performance 
                in comparison to State and local standards;
                    ``(B) to provide followup support for their 
                children's educational achievement;
                    ``(C) to communicate effectively with teachers, 
                principals, counselors, administrators, and other 
                school personnel;
                    ``(D) to become active participants in the 
                development, implementation, and review of school-
                parent compacts, parent involvement policies, and 
                school planning and improvement;
                    ``(E) to participate in the design and provision of 
                assistance to students who are not making adequate 
                educational progress;
                    ``(F) to participate in State and local 
                decisionmaking; and
                    ``(G) to train other parents;
            ``(2) to obtain information about the range of options, 
        programs, services, and resources available at the national, 
        State, and local levels to assist parents and school personnel 
        who work with parents;
            ``(3) to help the parents learn and use the technology 
        applied in their children's education;
            ``(4) to plan, implement, and fund activities for parents 
        that coordinate the education of their children with other 
        Federal programs that serve their children or their families; 
        and
            ``(5) to provide support for State or local educational 
        personnel if the participation of such personnel will further 
        the activities assisted under the grant.
    ``(b) Permissive Activities.--Grant funds received under this part 
may be used to assist schools with activities such as--
            ``(1) developing and implementing their plans or activities 
        under sections 1118 and 1119; and
            ``(2) developing and implementing school improvement plans, 
        including addressing problems that develop in the 
        implementation of sections 1118 and 1119.
            ``(3) providing information about assessment and individual 
        results to parents in a manner and a language the family can 
        understand;
            ``(4) coordinating the efforts of Federal, State, and local 
        parent education and family involvement initiatives; and
            ``(5) providing training, information, and support to--
                    ``(A) State educational agencies;
                    ``(B) local educational agencies and schools, 
                especially those local educational agencies and schools 
                that are low performing; and
                    ``(C) organizations that support family-school 
                partnerships.
    ``(c) Grandfather Clause.--The Secretary shall use funds made 
available under this part to continue to make grant or contract 
payments to each entity that was awarded a multiyear grant or contract 
under title IV of the Goals 2000: Educate America Act (as such title 
was in effect on the day before the date of enactment of the Better 
Education for Students and Teachers Act) for the duration of the grant 
or contract award.

``SEC. 6104. TECHNICAL ASSISTANCE.

    ``The Secretary shall provide technical assistance, by grant or 
contract, for the establishment, development, and coordination of 
parent training, information, and support programs and parental 
information and resource centers.

``SEC. 6105. REPORTS.

    ``(a) Information.--Each organization or consortium receiving 
assistance under this part shall submit to the Secretary, on an annual 
basis, information concerning the parental information and resource 
centers assisted under this part, including--
            ``(1) the number of parents (including the number of 
        minority and limited English proficient parents) who receive 
        information and training;
            ``(2) the types and modes of training, information, and 
        support provided under this part;
            ``(3) the strategies used to reach and serve parents of 
        minority and limited English proficient children, parents with 
        limited literacy skills, and other parents in need of the 
        services provided under this part;
            ``(4) the parental involvement policies and practices used 
        by the center and an evaluation of whether such policies and 
        practices are effective in improving home-school communication, 
        student achievement, student and school performance, and 
        parental involvement in school planning, review, and 
        improvement; and
            ``(5) the effectiveness of the activities that local 
        educational agencies and schools are carrying out with regard 
        to parental involvement and other activities assisted under 
        this Act that lead to improved student achievement and improved 
        student and school performance.
    ``(b) Dissemination.--The Secretary annually shall disseminate, 
widely to the public and to Congress, the information that each 
organization or consortium submits under subsection (a) to the 
Secretary.

``SEC. 6106. GENERAL PROVISIONS.

    ``Notwithstanding any other provision of this part--
            ``(1) no person, including a parent who educates a child at 
        home, a public school parent, or a private school parent, shall 
        be required to participate in any program of parent education 
        or developmental screening pursuant to the provisions of this 
        part; and
            ``(2) no program or center assisted under this part shall 
        take any action that infringes in any manner on the right of a 
        parent to direct the education of their children.

``SEC. 6107. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part 
$50,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 6 succeeding fiscal years.

                ``PART B--IMPROVING ACADEMIC ACHIEVEMENT

``SEC. 6201. EDUCATION AWARDS.

    ``(a) Achievement in Education Awards.--
            ``(1) In general.--The Secretary may make awards, to be 
        known as `Achievement in Education Awards', using a peer review 
        process, to the States that, beginning with the 2002-2003 
        school year, make the most progress in improving educational 
        achievement.
            ``(2) Criteria.--
                    ``(A) In general.--The Secretary shall make the 
                awards on the basis of criteria consisting of--
                            ``(i) the progress of economically 
                        disadvantaged students and of students who are 
                        racial and ethnic minorities--
                                    ``(I) in meeting the State's 
                                student performance standards as 
                                measured by the assessments described 
                                in section 1111(b)(3); and
                                    ``(II) beginning with the 2nd year 
                                for which data are available for all 
                                States, on State assessments under the 
                                National Assessment of Educational 
                                Progress of 4th and 8th grade reading 
                                and mathematics skills;
                            ``(ii) overall improvement in student 
                        achievement by the State's students on the 
                        assessments required by section 1111, and 
                        (beginning with the 2nd year for which data are 
                        available for all States) on the assessments 
                        described in clause (i)(II);
                            ``(iii) the progress of the State in 
                        improving the English proficiency of students 
                        who enter school with limited English 
                        proficiency;
                            ``(iv) the progress of the State in 
                        increasing the percentage of students who 
                        graduate from secondary school; and
                            ``(v) the progress of the State in 
                        increasing the percentage of students who take 
                        advanced coursework, such as advanced placement 
                        and international baccalaureate courses, and 
                        who pass advanced placement and international 
                        baccalaureate tests.
            ``(B) Weight.--In applying the criteria described in 
        subparagraph (A), the Secretary shall give the greatest weight 
        to the criterion described in subparagraph (A)(i).
    ``(b) Assessment Completion Bonuses.--The Secretary may make 1-time 
bonus payments to States that complete the development of assessments 
required by section 1111 in advance of the schedule specified in such 
section.
    ``(c) No Child Left Behind Awards.--The Secretary may make awards, 
to be known as `No Child Left Behind Awards' to the schools that--
            ``(1) are nominated by the States in which the schools are 
        located; and
            ``(2) have made the greatest progress in improving the 
        educational achievement of economically disadvantaged students.
    ``(d) Fund To Improve Education Achievement.--The Secretary may 
make awards for activities other than the activities described in 
subsections (a) through (c), such as character education, that are 
designed to promote the improvement of elementary and secondary 
education nationally.

``SEC. 6202. LOSS OF ADMINISTRATIVE FUNDS.

    ``(a) 2 Years of Insufficient Progress.--
            ``(1) Reduction.--If the Secretary makes the determinations 
        described in paragraph (2) for 2 consecutive years, the 
        Secretary shall reduce, by not more than 30 percent, the amount 
        of funds that the State may reserve for the subsequent fiscal 
        year for State administration under the programs authorized by 
        this Act that the Secretary determines are formula grant 
        programs.
            ``(2) Determinations.--The determinations referred to in 
        paragraph (1) are determinations, made on the basis of data 
        from the State assessment system described in section 1111 and 
        data from State assessments under the National Assessment of 
        Educational Progress of 4th and 8th grade reading and 
        mathematics skills, that--
                    ``(A) the State has failed to make adequate yearly 
                progress as defined under section 1111; and
                    ``(B) students who are racial and ethnic 
                minorities, and economically disadvantaged students, in 
                the State failed to make statistically significant 
                progress in the academic subjects for which the State 
                has developed State content and student performance 
                standards.
    ``(b) 3 or More Years of Insufficient Progress.--If the Secretary 
makes the determinations described in subsection (a)(2) for a third or 
subsequent consecutive year, the Secretary shall reduce, by not more 
than 75 percent, the amount of funds that the State may reserve for the 
subsequent fiscal year for State administration under the programs 
authorized by this Act that the Secretary determines are formula grant 
programs.

``SEC. 6203. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) State Assessment Grants.--For the purpose of developing and 
implementing the standards and assessments required under section 1111, 
there are authorized to be appropriated $400,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(b) National Assessment of Educational Progress.--For the purpose 
of administering the State assessments under the National Assessment of 
Educational Progress, there are authorized to be appropriated 
$110,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the 6 succeeding fiscal years.
    ``(c) Education Awards.--For the purpose of carrying out section 
6201, there are authorized to be appropriated $50,000,000 for fiscal 
year 2002, and such sums as may be necessary for each of the 6 
succeeding fiscal years.''.

    TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

SEC. 701. PROGRAMS.

    Title VII (20 U.S.C. 7401 et seq.) is amended to read as follows:

   ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``PART A--INDIAN EDUCATION

``SEC. 7101. FINDINGS.

    ``Congress finds that--
            ``(1) the Federal Government has a special responsibility 
        to ensure that educational programs for all American Indian and 
        Alaska Native children and adults--
                    ``(A) are based on high-quality, internationally 
                competitive content standards and student performance 
                standards, and build on Indian culture and the Indian 
                community;
                    ``(B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in providing 
                Indian students the opportunity to achieve the 
                standards described in subparagraph (A); and
                    ``(C) meet the unique educational and culturally 
                related academic needs of American Indian and Alaska 
                Native students;
            ``(2) since the date of enactment of the Indian Education 
        Act in 1972, the level of involvement of Indian parents in the 
        planning, development, and implementation of educational 
        programs that affect such parents and their children has 
        increased significantly, and schools should continue to foster 
        such involvement;
            ``(3) although the number of Indian teachers, 
        administrators, and university professors has increased since 
        1972, teacher training programs are not recruiting, training, 
        or retraining a sufficient number of Indian individuals as 
        educators to meet the needs of a growing Indian student 
        population in elementary, secondary, vocational, adult, and 
        higher education;
            ``(4) the dropout rate for Indian students is unacceptably 
        high: 9 percent of Indian students who were eighth graders in 
        1988 had already dropped out of school by 1990;
            ``(5) during the period from 1980 to 1990, the percentage 
        of Indian individuals living at or below the poverty level 
        increased from 24 percent to 31 percent, and the readiness of 
        Indian children to learn is hampered by the high incidence of 
        poverty, unemployment, and health problems among Indian 
        children and their families; and
            ``(6) research related specifically to the education of 
        Indian children and adults is very limited, and much of the 
        research is of poor quality or is focused on limited local or 
        regional issues.

``SEC. 7102. PURPOSE.

    ``(a) Purpose.--The purpose of this part is to support the efforts 
of local educational agencies, Indian tribes and organizations, 
postsecondary institutions, and other entities to meet the unique 
educational and culturally related academic needs of American Indian 
and Alaska Native students, so that such students can meet the same 
challenging State performance standards as are expected for all 
students.
    ``(b) Programs.--This part carries out the purpose described in 
subsection (a) by authorizing programs of direct assistance for--
            ``(1) meeting the unique educational and culturally related 
        academic needs of American Indians and Alaska Natives;
            ``(2) the education of Indian children and adults;
            ``(3) the training of Indian persons as educators and 
        counselors, and in other professions serving Indian people; and
            ``(4) research, evaluation, data collection, and technical 
        assistance.

       ``Subpart 1--Formula Grants to Local Educational Agencies

``SEC. 7111. PURPOSE.

    ``The purpose of this subpart is to support local educational 
agencies in their efforts to reform elementary school and secondary 
school programs that serve Indian students in order to ensure that such 
programs--
            ``(1) are based on challenging State content standards and 
        State student performance standards that are used for all 
        students; and
            ``(2) are designed to assist Indian students to meet those 
        standards.

``SEC. 7112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--The Secretary may make grants to local 
educational agencies and Indian tribes in accordance with this section.
    ``(b) Local Educational Agencies.--
            ``(1) Enrollment requirements.--A local educational agency 
        shall be eligible for a grant under this subpart for any fiscal 
        year if the number of Indian children who are eligible under 
        section 7117, and who were enrolled in the schools of the 
        agency, and to whom the agency provided free public education, 
        during the preceding fiscal year--
                    ``(A) was at least 10; or
                    ``(B) constituted not less than 25 percent of the 
                total number of individuals enrolled in the schools of 
                such agency.
            ``(2) Exclusion.--The requirement of paragraph (1) shall 
        not apply in Alaska, California, or Oklahoma, or with respect 
        to any local educational agency located on, or in proximity to, 
        a reservation.
    ``(c) Indian Tribes.--
            ``(1) In general.--If a local educational agency that is 
        otherwise eligible for a grant under this subpart does not 
        establish a parent committee under section 7114(c)(4), an 
        Indian tribe that represents not less than \1/2\ of the 
        eligible Indian children who are served by such local 
        educational agency may apply for such grant by submitting an 
        application in accordance with section 7114.
            ``(2) Special rule.--The Secretary shall treat each Indian 
        tribe applying for a grant pursuant to paragraph (1) as if such 
        Indian tribe were a local educational agency for purposes of 
        this subpart, except that any such tribe shall not be subject 
        to section 7114(c)(4) (relating to a parent committee), section 
        7118(c) (relating to maintenance of effort), or section 7119 
        (relating to State review of applications).

``SEC. 7113. AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
            ``(1) In general.--Except as provided in subsections (c) 
        and (d), for purposes of making grants under this subpart the 
        Secretary shall allocate to each local educational agency that 
        has an approved application under this subpart an amount equal 
        to the product of--
                    ``(A) the number of Indian children who are 
                eligible under section 7117 and served by such agency; 
                and
                    ``(B) the greater of--
                            ``(i) the average per-pupil expenditure of 
                        the State in which such agency is located; or
                            ``(ii) 80 percent of the average per-pupil 
                        expenditure of all the States.
            ``(2) Reduction.--The Secretary shall reduce the amount of 
        each allocation determined under paragraph (1) or subsection 
        (b) in accordance with subsection (c).
    ``(b) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
            ``(1) In general.--In addition to the grants awarded under 
        subsection (a), and subject to paragraph (2), for purposes of 
        making grants under this subpart the Secretary shall allocate 
        to the Secretary of the Interior an amount equal to the product 
        of--
                    ``(A) the total number of Indian children enrolled 
                in schools that are operated by--
                            ``(i) the Bureau of Indian Affairs; or
                            ``(ii) an Indian tribe, or an organization 
                        controlled or sanctioned by an Indian tribal 
                        government, for the children of such tribe 
                        under a contract with, or grant from, the 
                        Department of the Interior under the Indian 
                        Self-Determination Act or the Tribally 
                        Controlled Schools Act of 1988; and
                    ``(B) the greater of--
                            ``(i) the average per-pupil expenditure of 
                        the State in which the school is located; or
                            ``(ii) 80 percent of the average per-pupil 
                        expenditure of all the States.
            ``(2) Special rule.--Any school described in paragraph (1) 
        may apply for an allocation under this subpart by submitting an 
        application in accordance with section 7114. The Secretary 
        shall treat the school as if the school were a local 
        educational agency for purposes of this subpart, except that 
        any such school shall not be subject to section 7114(c)(4), 
        7118(c), or 7119.
    ``(c) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 7162(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a) and for 
the Secretary of the Interior under subsection (b), each of those 
amounts shall be ratably reduced.
    ``(d) Minimum Grant.--
            ``(1) In general.--Notwithstanding subsection (c), a local 
        educational agency (including an Indian tribe as authorized 
        under section 7112(b)) that is eligible for a grant under 
        section 7112, and a school that is operated or supported by the 
        Bureau of Indian Affairs that is eligible for a grant under 
        subsection (b), that submits an application that is approved by 
        the Secretary, shall, subject to appropriations, receive a 
        grant under this subpart in an amount that is not less than 
        $3,000.
            ``(2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under this 
        subpart.
            ``(3) Increase.--The Secretary may increase the minimum 
        grant under paragraph (1) to not more than $4,000 for all grant 
        recipients if the Secretary determines such increase is 
        necessary to ensure quality programs.
    ``(e) Definition.--In this section, the term `average per-pupil 
expenditure', for a State, means an amount equal to--
            ``(1) the sum of the aggregate current expenditures of all 
        the local educational agencies in the State, plus any direct 
        current expenditures by the State for the operation of such 
        agencies, without regard to the sources of funds from which 
        such local or State expenditures were made, during the second 
        fiscal year preceding the fiscal year for which the computation 
        is made; divided by
            ``(2) the aggregate number of children who were included in 
        average daily attendance and for whom such agencies provided 
        free public education during such preceding fiscal year.

``SEC. 7114. APPLICATIONS.

    ``(a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Comprehensive Program Required.--Each application submitted 
under subsection (a) shall include a description of a comprehensive 
program for meeting the needs of Indian children served by the local 
educational agency, including the language and cultural needs of the 
children, that--
            ``(1) describes how the comprehensive program will offer 
        programs and activities to meet the culturally related academic 
        needs of American Indian and Alaska Native students;
            ``(2)(A) is consistent with the State and local plans 
        submitted under other provisions of this Act; and
            ``(B) includes academic content and student performance 
        goals for such children, and benchmarks for attaining such 
        goals, that are based on the challenging State standards 
        adopted under title I for all children;
            ``(3) explains how Federal, State, and local programs, 
        especially programs carried out under title I, will meet the 
        needs of such students;
            ``(4) demonstrates how funds made available under this 
        subpart will be used for activities described in section 7115;
            ``(5) describes the professional development opportunities 
        that will be provided, as needed, to ensure that--
                    ``(A) teachers and other school professionals who 
                are new to the Indian community are prepared to work 
                with Indian children; and
                    ``(B) all teachers who will be involved in programs 
                assisted under this subpart have been properly trained 
                to carry out such programs; and
            ``(6) describes how the local educational agency--
                    ``(A) will periodically assess the progress of all 
                Indian children enrolled in the schools of the local 
                educational agency, including Indian children who do 
                not participate in programs assisted under this 
                subpart, in meeting the goals described in paragraph 
                (2);
                    ``(B) will provide the results of each assessment 
                referred to in subparagraph (A) to--
                            ``(i) the committee of parents described in 
                        subsection (c)(4); and
                            ``(ii) the community served by the local 
                        educational agency; and
                    ``(C) is responding to findings of any previous 
                assessments that are similar to the assessments 
                described in subparagraph (A).
    ``(c) Assurances.--Each application submitted under subsection (a) 
shall include assurances that--
            ``(1) the local educational agency will use funds received 
        under this subpart only to supplement the funds that, in the 
        absence of the Federal funds made available under this subpart, 
        such agency would make available for the education of Indian 
        children, and not to supplant such funds;
            ``(2) the local educational agency will prepare and submit 
        to the Secretary such reports, in such form and containing such 
        information, as the Secretary may require to--
                    ``(A) carry out the functions of the Secretary 
                under this subpart; and
                    ``(B) determine the extent to which activities 
                carried out with funds provided to the local 
                educational agency under this subpart are effective in 
                improving the educational achievement of Indian 
                students served by such agency;
            ``(3) the program for which assistance is sought--
                    ``(A) is based on a comprehensive local assessment 
                and prioritization of the unique educational and 
                culturally related academic needs of the American 
                Indian and Alaska Native students for whom the local 
                educational agency is providing an education;
                    ``(B) will use the best available talents and 
                resources, including individuals from the Indian 
                community; and
                    ``(C) was developed by such agency in open 
                consultation with parents of Indian children and 
                teachers, and, if appropriate, Indian students from 
                secondary schools, including through public hearings 
                held by such agency to provide to the individuals 
                described in this subparagraph a full opportunity to 
                understand the program and to offer recommendations 
                regarding the program; and
            ``(4) the local educational agency developed the program 
        with the participation and written approval of a committee--
                    ``(A) that is composed of, and selected by--
                            ``(i) parents of Indian children in the 
                        local educational agency's schools and teachers 
                        in the schools; and
                            ``(ii) if appropriate, Indian students 
                        attending secondary schools of the agency;
                    ``(B) a majority of whose members are parents of 
                Indian children;
                    ``(C) that has set forth such policies and 
                procedures, including policies and procedures relating 
                to the hiring of personnel, as will ensure that the 
                program for which assistance is sought will be operated 
                and evaluated in consultation with, and with the 
                involvement of, parents of the children, and 
                representatives of the area, to be served;
                    ``(D) with respect to an application describing a 
                schoolwide program carried out in accordance with 
                section 7115(c), that has--
                            ``(i) reviewed in a timely fashion the 
                        program; and
                            ``(ii) determined that the program will 
                        enhance the availability of culturally related 
                        activities for American Indian and Alaska 
                        Native students; and
                    ``(E) that has adopted reasonable bylaws for the 
                conduct of the activities of the committee and abides 
                by such bylaws.

``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, in a 
manner consistent with the purpose specified in section 7111, for 
services and activities that--
            ``(1) are designed to carry out the comprehensive program 
        of the local educational agency for Indian students, and 
        described in the application of the local educational agency 
        submitted to the Secretary under section 7114;
            ``(2) are designed with special regard for the language and 
        cultural needs of the Indian students; and
            ``(3) supplement and enrich the regular school program of 
        such agency.
    ``(b) Particular Services and Activities.--The services and 
activities referred to in subsection (a) may include--
            ``(1) culturally related activities that support the 
        program described in the application submitted by the local 
        educational agency;
            ``(2) early childhood and family programs that emphasize 
        school readiness;
            ``(3) enrichment programs that focus on problem-solving and 
        cognitive skills development and directly support the 
        attainment of challenging State content standards and State 
        student performance standards;
            ``(4) integrated educational services in combination with 
        other programs that meet the needs of Indian children and their 
        families;
            ``(5) career preparation activities to enable Indian 
        students to participate in programs such as the programs 
        supported by Public Law 103-239 and Public Law 88-210, 
        including programs for tech-prep, mentoring, and apprenticeship 
        activities;
            ``(6) activities to educate individuals concerning 
        substance abuse and to prevent substance abuse;
            ``(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to meet the purpose 
        described in section 7111;
            ``(8) activities that promote the incorporation of 
        culturally responsive teaching and learning strategies into the 
        educational program of the local educational agency;
            ``(9) activities that incorporate American Indian and 
        Alaska Native specific curriculum content, consistent with 
        State standards, into the curriculum used by the local 
        educational agency;
            ``(10) activities to promote coordination and collaboration 
        between tribal, Federal, and State public schools in areas that 
        will improve American Indian and Alaska Native student 
        achievement; and
            ``(11) family literacy services.
    ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
law, a local educational agency may use funds made available to such 
agency under this subpart to support a schoolwide program under section 
1114 if--
            ``(1) the committee composed of parents established 
        pursuant to section 7114(c)(4) approves the use of the funds 
        for the schoolwide program; and
            ``(2) the schoolwide program is consistent with the purpose 
        described in section 7111.
    ``(d) Administrative Costs.--Not more than 5 percent of the funds 
made available to a local educational agency through a grant made under 
this subpart for a fiscal year may be used to pay for administrative 
costs.

``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

    ``(a) Plan.--An entity receiving funds under this subpart may 
submit a plan to the Secretary for a demonstration project for the 
integration of education and related services provided to Indian 
students.
    ``(b) Consolidation of Programs.--Upon the receipt of an acceptable 
plan under subsection (a), the Secretary, in cooperation with each 
Federal agency providing grants for the provision of education and 
related services to the applicant, shall authorize the applicant to 
consolidate, in accordance with such plan, the federally funded 
education and related services programs of the applicant and the 
agencies, or portions of the programs, serving Indian students in a 
manner that integrates the program services involved into a single, 
coordinated, comprehensive program and reduces administrative costs by 
consolidating administrative functions.
    ``(c) Programs Affected.--The funds that may be consolidated in a 
demonstration project under any such plan referred to in subsection (b) 
shall include funds for any Federal program exclusively serving Indian 
children, or the funds reserved exclusively to serve Indian children 
under any program, for which the applicant is eligible for receipt of 
funds under a statutory or administrative formula for the purposes of 
providing education and related services for Indian students.
    ``(d) Plan Requirements.--For a plan to be acceptable pursuant to 
subsection (b), the plan shall--
            ``(1) identify the programs or funding sources to be 
        consolidated;
            ``(2) be consistent with the objectives of this section 
        authorizing the program services to be integrated in a 
        demonstration project;
            ``(3) describe a comprehensive strategy that identifies the 
        full range of potential educational opportunities and related 
        services to be provided to assist Indian students to achieve 
        the objectives set forth in this subpart;
            ``(4) describe the way in which the services are to be 
        integrated and delivered and the results expected from the 
        plan;
            ``(5) identify the projected expenditures under the plan in 
        a single budget;
            ``(6) identify the State, tribal, or local agencies to be 
        involved in the delivery of the services integrated under the 
        plan;
            ``(7) identify any statutory provisions, regulations, 
        policies, or procedures that the applicant believes need to be 
        waived in order to implement the plan;
            ``(8) set forth measures of student achievement and 
        performance goals designed to be met within a specified period 
        of time for activities provided under the plan; and
            ``(9) be approved by a parent committee formed in 
        accordance with section 7114(c)(4), if such a committee exists, 
        in consultation with the Committee on Resources of the House of 
        Representatives and the Committee on Indian Affairs of the 
        Senate.
    ``(e) Plan Review.--Upon receipt of the plan from an eligible 
entity, the Secretary shall consult with the head of each Federal 
agency providing funds to be used to implement the plan, and with the 
entity submitting the plan. The parties so consulting shall identify 
any waivers of statutory requirements or of Federal regulations, 
policies, or procedures necessary to enable the applicant to implement 
the plan. Notwithstanding any other provision of law, the Secretary of 
the affected agency shall have the authority to waive, for the 
applicant, any regulation, policy, or procedure promulgated by that 
agency that has been so identified by the applicant or agency, unless 
the head of the affected agency determines that such a waiver is 
inconsistent with the objectives of this subpart or the provisions of 
the statute from which the program involved derives authority that are 
specifically applicable to Indian students.
    ``(f) Plan Approval.--Within 90 days after the receipt of an 
applicant's plan by the Secretary under subsection (a), the Secretary 
shall inform the applicant, in writing, of the Secretary's approval or 
disapproval of the plan. If the plan is disapproved, the applicant 
shall be informed, in writing, of the reasons for the disapproval and 
shall be given an opportunity to amend the plan or to petition the 
Secretary to reconsider such disapproval.
    ``(g) Responsibilities of Department of Education.--Not later than 
180 days after the date of enactment of the Better Education for 
Students and Teachers Act, the Secretary of Education, the Secretary of 
the Interior, and the head of any other Federal agency identified by 
the Secretary of Education, shall enter into an interagency memorandum 
of agreement providing for the implementation of the demonstration 
projects authorized under this section. The lead agency for a 
demonstration project authorized under this section shall be--
            ``(1) the Department of the Interior, in the case of an 
        applicant that is a contract or grant school, as defined in 
        section 1146 of the Education Amendments of 1978; or
            ``(2) the Department of Education, in the case of any other 
        applicant.
    ``(h) Responsibilities of Lead Agency.--The responsibilities of the 
lead agency for a demonstration project shall include--
            ``(1) the use of a single report format related to the plan 
        for the individual project, which shall be used by an eligible 
        entity to report on the activities undertaken under the 
        project;
            ``(2) the use of a single report format related to the 
        projected expenditures for the individual project, which shall 
        be used by an eligible entity to report on all project 
        expenditures;
            ``(3) the development of a single system of Federal 
        oversight for the project, which shall be implemented by the 
        lead agency; and
            ``(4) the provision of technical assistance to an eligible 
        entity appropriate to the project, except that an eligible 
        entity shall have the authority to accept or reject the plan 
        for providing such technical assistance and the technical 
        assistance provider.
    ``(i) Report Requirements.--
            ``(1) In general.--The Secretary shall develop, consistent 
        with the requirements of this section, a single report format 
        for the reports described in subsection (h).
            ``(2) Report information.--Such report format shall require 
        that the reports shall--
                    ``(A) contain such information as will allow a 
                determination that the eligible entity has complied 
                with the requirements incorporated in the entity's 
                approved plan, including the demonstration of student 
                achievement; and
                    ``(B) provide assurances to the Secretary of 
                Education and the Secretary of the Interior that the 
                eligible entity has complied with all directly 
                applicable statutory requirements and with those 
                directly applicable regulatory requirements that have 
                not been waived.
            ``(3) Record information.--The Secretary shall require that 
        records maintained at the local level on the programs 
        consolidated for the project shall contain the information and 
        provide the assurances described in paragraph (2).
    ``(j) No Reduction in Amounts.--In no case shall the amount of 
Federal funds available to an eligible entity involved in any 
demonstration project be reduced as a result of the enactment of this 
section.
    ``(k) Interagency Fund Transfers Authorized.--The Secretary is 
authorized to take such action as may be necessary to provide for an 
interagency transfer of funds otherwise available to an eligible entity 
in order to further the objectives of this section.
    ``(l) Administration of Funds.--
            ``(1) In general.--An eligible entity shall administer the 
        program funds for the consolidated programs in such a manner as 
        to allow for a determination that funds from a specific program 
        are spent on allowable activities authorized under such 
        program, except that the eligible entity shall determine the 
        proportion of the funds that shall be allocated to such 
        program.
            ``(2) Separate records not required.--Nothing in this 
        section shall be construed as requiring the eligible entity to 
        maintain separate records tracing any services or activities 
        conducted under the approved plan to the individual programs 
        under which funds were authorized for the services or 
        activities, nor shall the eligible entity be required to 
        allocate expenditures among such individual programs.
    ``(m) Overage.--The eligible entity may commingle all 
administrative funds from the consolidated programs and shall be 
entitled to the full amount of such funds (under each program's or 
agency's regulations). The overage (defined as the difference between 
the amount of the commingled funds and the actual administrative cost 
of the programs) shall be considered to be properly spent for Federal 
audit purposes, if the overage is used for the purposes provided for 
under this section.
    ``(n) Fiscal Accountability.--Nothing in this part shall be 
construed so as to interfere with the ability of the Secretary or the 
lead agency to fulfill responsibilities for safeguarding Federal funds 
pursuant to chapter 75 of title 31, United States Code.
    ``(o) Report on Statutory Obstacles to Program Integration.--
            ``(1) Preliminary report.--Not later than 2 years after the 
        date of enactment of the Better Education for Students and 
        Teachers Act, the Secretary of Education shall submit a 
        preliminary report to the Committee on Education and the 
        Workforce and the Committee on Resources of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions and the Committee on Indian Affairs of the Senate 
        on the status of the implementation of the demonstration 
        projects authorized under this section.
            ``(2) Final report.--Not later than 5 years after the date 
        of enactment of the Better Education for Students and Teachers 
        Act, the Secretary of Education shall submit a report to the 
        Committee on Education and the Workforce and the Committee on 
        Resources of the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions and the Committee on 
        Indian Affairs of the Senate on the results of the 
        implementation of the demonstration projects authorized under 
        this section. Such report shall identify statutory barriers to 
        the ability of participants to integrate more effectively their 
        education and related services to Indian students in a manner 
        consistent with the objectives of this section.
    ``(p) Definition.--In this section, the term `Secretary' means--
            ``(1) the Secretary of the Interior, in the case of an 
        applicant that is a contract or grant school, as defined in 
        section 1146 of the Education Amendments of 1978; or
            ``(2) the Secretary of Education, in the case of any other 
        applicant.

``SEC. 7117. STUDENT ELIGIBILITY FORMS.

    ``(a) In General.--The Secretary shall require that, as part of an 
application for a grant under this subpart, each applicant shall 
maintain a file, with respect to each Indian child for whom the local 
educational agency provides a free public education, that contains a 
form that sets forth information establishing the status of the child 
as an Indian child eligible for assistance under this subpart, and that 
otherwise meets the requirements of subsection (b).
    ``(b) Forms.--
            ``(1) In general.--The form described in subsection (a) 
        shall include--
                    ``(A) either--
                            ``(i)(I) the name of the tribe or band of 
                        Indians (as defined in section 7161(3)) with 
                        respect to which the child claims membership;
                            ``(II) the enrollment number establishing 
                        the membership of the child (if readily 
                        available); and
                            ``(III) the name and address of the 
                        organization that maintains updated and 
                        accurate membership data for such tribe or band 
                        of Indians; or
                            ``(ii) if the child is not a member of 
                        tribe or band of Indians (as so defined), the 
                        name, the enrollment number (if readily 
                        available), and the name and address of the 
                        organization responsible for maintaining 
                        updated and accurate membership rolls, of any 
                        parent or grandparent of the child from whom 
                        the child claims eligibility under this 
                        subpart;
                    ``(B) a statement of whether the tribe or band of 
                Indians (as so defined) with respect to which the 
                child, or parent or grandparent of the child, claims 
                membership is federally recognized;
                    ``(C) the name and address of the parent or legal 
                guardian of the child;
                    ``(D) a signature of the parent or legal guardian 
                of the child that verifies the accuracy of the 
                information supplied; and
                    ``(E) any other information that the Secretary 
                considers necessary to provide an accurate program 
                profile.
            ``(2) Minimum information.--In order for a child to be 
        eligible to be counted for the purpose of computing the amount 
        of a grant award made under section 7113, an eligibility form 
        prepared pursuant to this section for a child shall include--
                    ``(A) the name of the child;
                    ``(B) the name of the tribe or band of Indians (as 
                so defined) with respect to which the child claims 
                membership; and
                    ``(C) the dated signature of the parent or guardian 
                of the child.
            ``(3) Failure.--The failure of an applicant to furnish any 
        information described in this subsection other than the 
        information described in paragraph (2) with respect to any 
        child shall have no bearing on the determination of whether the 
        child is an eligible Indian child for the purposes of computing 
        the amount of a grant award made under section 7113.
    ``(c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 7161.
    ``(d) Forms and Standards of Proof.--The forms and the standards of 
proof (including the standard of good faith compliance) that were in 
use during the 1985-86 academic year to establish the eligibility of a 
child for entitlement under the Indian Elementary and Secondary School 
Assistance Act shall be the forms and standards of proof used--
            ``(1) to establish eligibility under this subpart; and
            ``(2) to meet the requirements of subsection (a).
    ``(e) Documentation.--For purposes of determining whether a child 
is eligible to be counted for the purpose of computing the amount of a 
grant award under section 7113, the membership of the child, or any 
parent or grandparent of the child, in a tribe or band of Indians (as 
so defined) may be established by proof other than an enrollment 
number, notwithstanding the availability of an enrollment number for a 
member of such tribe or band. Nothing in subsection (b) shall be 
construed to require the furnishing of an enrollment number.
    ``(f) Monitoring and Evaluation Review.--
            ``(1) In general.--
                    ``(A) Review.--For each fiscal year, in order to 
                provide such information as is necessary to carry out 
                the responsibility of the Secretary to provide 
                technical assistance under this subpart, the Secretary 
                shall conduct a monitoring and evaluation review of a 
                sampling of the local educational agencies that are 
                recipients of grants under this subpart. The sampling 
                conducted under this paragraph shall take into account 
                the size of such a local educational agency and the 
                geographic location of such agency.
                    ``(B) Exception.--A local educational agency may 
                not be held liable to the United States or be subject 
                to any penalty by reason of the findings of an audit 
                that relates to the date of completion, or the date of 
                submission, of any forms used to establish, before 
                April 28, 1988, the eligibility of a child for 
                entitlement under the Indian Elementary and Secondary 
                School Assistance Act.
            ``(2) False information.--Any local educational agency that 
        provides false information in an application for a grant under 
        this subpart shall--
                    ``(A) be ineligible to apply for any other grant 
                under this subpart; and
                    ``(B) be liable to the United States for any funds 
                from the grant that have not been expended.
            ``(3) Excluded children.--A student who provides false 
        information for the form required under subsection (a) shall 
        not be counted for the purpose of computing the amount of a 
        grant award under section 7113.
    ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, the Secretary, in computing the amount of a 
grant award under section 7113 to a tribal school that receives a grant 
or contract from the Bureau of Indian Affairs, shall use only 1 of the 
following, as selected by the school:
            ``(1) A count, certified by the Bureau, of the number of 
        students in the school.
            ``(2) A count of the number of students for whom the school 
        has eligibility forms that comply with this section.
    ``(h) Timing of Child Counts.--For purposes of determining the 
number of children to be counted in computing the amount of a local 
educational agency's grant award under section 7113 (other than in the 
case described in subsection (g)(1)), the local educational agency 
shall--
            ``(1) establish a date on, or a period not longer than 31 
        consecutive days during which, the agency counts those 
        children, if that date or period occurs before the deadline 
        established by the Secretary for submitting an application 
        under section 7114; and
            ``(2) determine that each such child was enrolled, and 
        receiving a free public education, in a school of the agency on 
        that date or during that period, as the case may be.

``SEC. 7118. PAYMENTS.

    ``(a) In General.--Subject to subsections (b) and (c), the 
Secretary shall pay to each local educational agency that submits an 
application that is approved by the Secretary under this subpart the 
amount computed under section 7113. The Secretary shall notify the 
local educational agency of the amount of the payment not later than 
June 1 of the year for which the Secretary makes the payment.
    ``(b) Payments Taken Into Account by the State.--The Secretary may 
not make a grant under this subpart to a local educational agency for a 
fiscal year if, for such fiscal year, the State in which the local 
educational agency is located takes into consideration payments made 
under this subpart in determining the eligibility of the local 
educational agency for State aid, or the amount of the State aid, with 
respect to the free public education of children during such fiscal 
year or the preceding fiscal year.
    ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
            ``(1) In general.--The Secretary may not pay a local 
        educational agency in a State the full amount of a grant award 
        computed under section 7113 for any fiscal year unless the 
        State educational agency notifies the Secretary, and the 
        Secretary determines, that with respect to the provision of 
        free public education by the local educational agency for the 
        preceding fiscal year, that the combined fiscal effort of the 
        local educational agency and the State, computed on either a 
        per student or aggregate expenditure basis was not less than 90 
        percent of the amount of the combined fiscal effort, computed 
        on the same basis, for the second preceding fiscal year.
            ``(2) Failure.--If, for any fiscal year, the Secretary 
        determines that a local educational agency and State failed to 
        maintain the combined fiscal effort at the level specified in 
        paragraph (1), the Secretary shall--
                    ``(A) reduce the amount of the grant that would 
                otherwise be made to such agency under this subpart in 
                the exact proportion of the failure to maintain the 
                fiscal effort at such level; and
                    ``(B) not use the reduced amount of the combined 
                fiscal effort for the year to determine compliance with 
                paragraph (1) for any succeeding fiscal year, but shall 
                use the amount of expenditures that would have been 
                required to comply with paragraph (1) during the fiscal 
                year for which the determination is made.
            ``(3) Waiver.--
                    ``(A) In general.--The Secretary may waive the 
                requirement of paragraph (1) for a local educational 
                agency, for not more than 1 year at a time, if the 
                Secretary determines that the failure to comply with 
                such requirement is due to exceptional or 
                uncontrollable circumstances, such as a natural 
                disaster or a precipitous and unforeseen decline in the 
                agency's financial resources.
                    ``(B) Future determinations.--The Secretary shall 
                not use the reduced amount of the combined fiscal 
                effort for the year for which the waiver is granted to 
                determine compliance with paragraph (1) for any 
                succeeding fiscal year, but shall use the amount of 
                expenditures that would have been required to comply 
                with paragraph (1) in the absence of the waiver during 
                the fiscal year for which the waiver is granted.
    ``(d) Reallocations.--The Secretary may reallocate, in a manner 
that the Secretary determines will best carry out the purpose of this 
subpart, any amounts that--
            ``(1) based on estimates made by local educational agencies 
        or other information, the Secretary determines will not be 
        needed by such agencies to carry out approved programs under 
        this subpart; or
            ``(2) otherwise become available for reallocation under 
        this subpart.

``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

    ``Before submitting an application to the Secretary under section 
7114, a local educational agency shall submit the application to the 
State educational agency, which may comment on the application. If the 
State educational agency comments on the application, the agency shall 
comment on each such application submitted by a local educational 
agency in the State and shall provide the comment to the appropriate 
local educational agency, with an opportunity to respond.

   ``Subpart 2--Special Programs and Projects To Improve Educational 
                   Opportunities for Indian Children

``SEC. 7121. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN 
              CHILDREN.

    ``(a) Purpose.--
            ``(1) In general.--The purpose of this section is to 
        support projects to develop, test, and demonstrate the 
        effectiveness of services and programs to improve educational 
        opportunities and achievement of Indian children.
            ``(2) Coordination.--The Secretary shall take such actions 
        as are necessary to achieve the coordination of activities 
        assisted under this subpart with--
                    ``(A) other programs funded under this Act; and
                    ``(B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native children.
    ``(b) Eligible Entities.--In this section, the term `eligible 
entity' means a State educational agency, local educational agency, 
Indian tribe, Indian organization, federally supported elementary 
school or secondary school for Indian students, Indian institution 
(including an Indian institution of higher education) or a consortium 
of such entities.
    ``(c) Grants Authorized.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible entities to enable such entities to carry out 
        activities that meet the purpose specified in subsection 
        (a)(1), including--
                    ``(A) innovative programs related to the 
                educational needs of educationally disadvantaged 
                children;
                    ``(B) educational services that are not available 
                to such children in sufficient quantity or quality, 
                including remedial instruction, to raise the 
                achievement of Indian children in 1 or more of the core 
                academic subjects of English, mathematics, science, 
                foreign languages, art, history, and geography;
                    ``(C) bilingual and bicultural programs and 
                projects;
                    ``(D) special health and nutrition services, and 
                other related activities, that address the special 
                health, social, and psychological problems of Indian 
                children;
                    ``(E) special compensatory and other programs and 
                projects designed to assist and encourage Indian 
                children to enter, remain in, or reenter school, and to 
                increase the rate of secondary school graduation for 
                Indian children;
                    ``(F) comprehensive guidance, counseling, and 
                testing services;
                    ``(G) early childhood and kindergarten programs, 
                including family-based preschool programs that 
                emphasize school readiness and parental skills, and the 
                provision of services to Indian children with 
                disabilities;
                    ``(H) partnership projects between local 
                educational agencies and institutions of higher 
                education that allow secondary school students to 
                enroll in courses at the postsecondary level to aid 
                such students in the transition from secondary school 
                to postsecondary education;
                    ``(I) partnership projects between schools and 
                local businesses for school-to-work transition programs 
                designed to provide Indian youth with the knowledge and 
                skills the youth need to make an effective transition 
                from school to a first job in a high-skill, high-wage 
                career;
                    ``(J) programs designed to encourage and assist 
                Indian students to work toward, and gain entrance into, 
                an institution of higher education;
                    ``(K) family literacy services; or
                    ``(L) other services that meet the purpose 
                described in subsection (a)(1).
            ``(2) Pre-service or in-service training.--Pre-service or 
        in-service training of professional and paraprofessional 
        personnel may be a part of any program assisted under this 
        section.
    ``(d) Grant Requirements and Applications.--
            ``(1) Grant requirements.--
                    ``(A) In general.--The Secretary may make multiyear 
                grants under subsection (c) for the planning, 
                development, pilot operation, or demonstration of any 
                activity described in subsection (c). The Secretary 
                shall make the grants for periods of not more than 5 
                years.
                    ``(B) Priority.--In making multiyear grants 
                described in this paragraph, the Secretary shall give 
                priority to entities submitting applications that 
                present a plan for combining 2 or more of the 
                activities described in subsection (c) over a period of 
                more than 1 year.
                    ``(C) Progress.--The Secretary shall make a payment 
                for a grant described in this paragraph to an eligible 
                entity after the initial year of the multiyear grant 
                period only if the Secretary determines that the 
                eligible entity has made substantial progress in 
                carrying out the activities assisted under the grant in 
                accordance with the application submitted under 
                paragraph (3) and any subsequent modifications to such 
                application.
            ``(2) Dissemination grants.--
                    ``(A) In general.--In addition to awarding the 
                multiyear grants described in paragraph (1), the 
                Secretary may award grants under subsection (c) to 
                eligible entities for the dissemination of exemplary 
                materials or programs assisted under this section.
                    ``(B) Determination.--The Secretary may award a 
                dissemination grant described in this paragraph if, 
                prior to awarding the grant, the Secretary determines 
                that the material or program to be disseminated--
                            ``(i) has been adequately reviewed;
                            ``(ii) has demonstrated educational merit; 
                        and
                            ``(iii) can be replicated.
            ``(3) Application.--
                    ``(A) In general.--Any eligible entity that desires 
                to receive a grant under this section shall submit an 
                application to the Secretary at such time and in such 
                manner as the Secretary may require.
                    ``(B) Contents.--Each application submitted to the 
                Secretary under subparagraph (A), other than an 
                application for a dissemination grant under paragraph 
                (2), shall contain--
                            ``(i) a description of how parents of 
                        Indian children and representatives of Indian 
                        tribes have been, and will be, involved in 
                        developing and implementing the activities for 
                        which assistance is sought;
                            ``(ii) assurances that the applicant will 
                        participate, at the request of the Secretary, 
                        in any national evaluation of activities 
                        assisted under this section;
                            ``(iii) information demonstrating that the 
                        proposed program for the activities is a 
                        scientifically based research program, which 
                        may include a program that has been modified to 
                        be culturally appropriate for students who will 
                        be served;
                            ``(iv) a description of how the applicant 
                        will incorporate the proposed activities into 
                        the ongoing school program involved once the 
                        grant period is over; and
                            ``(v) such other assurances and information 
                        as the Secretary may reasonably require.
    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
provided to a grant recipient under this subpart for any fiscal year 
may be used to pay for administrative costs.

``SEC. 7122. PROFESSIONAL DEVELOPMENT.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase the number of qualified Indian 
        individuals in teaching or other education professions that 
        serve Indian people;
            ``(2) to provide training to qualified Indian individuals 
        to enable such individuals to become teachers, administrators, 
        teacher aides, social workers, and ancillary educational 
        personnel; and
            ``(3) to improve the skills of qualified Indian individuals 
        who serve in the capacities described in paragraph (2).
    ``(b) Eligible Entities.--In this section, the term `eligible 
entity' means a consortium of--
            ``(1) a State or local educational agency; and
            ``(2) an institution of higher education (including an 
        Indian institution of higher education) or an Indian tribe or 
        organization.
    ``(c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities with applications approved under subsection 
(e) to enable such entities to carry out the activities described in 
subsection (d).
    ``(d) Authorized Activities.--
            ``(1) In general.--Grant funds made available under 
        subsection (c) shall be used for activities to provide support 
        and training for Indian individuals in a manner consistent with 
        the purposes of this section. Such activities may include 
        continuing programs, symposia, workshops, conferences, and 
        direct financial support.
            ``(2) Special rules.--
                    ``(A) Type of training.--For education personnel, 
                the training received pursuant to a grant awarded under 
                subsection (c) may be in-service or pre-service 
                training.
                    ``(B) Program.--For individuals who are being 
                trained to enter any field other than education, the 
                training received pursuant to a grant awarded under 
                subsection (c) shall be in a program that results in a 
                graduate degree.
    ``(e) Application.--Each eligible entity desiring a grant under 
subsection (c) shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information, as the 
Secretary may reasonably require.
    ``(f) Special Rule.--In awarding grants under subsection (c), the 
Secretary--
            ``(1) shall consider the prior performance of an eligible 
        entity; and
            ``(2) may not limit eligibility to receive a grant under 
        subsection (c) on the basis of--
                    ``(A) the number of previous grants the Secretary 
                has awarded such entity; or
                    ``(B) the length of any period during which such 
                entity received such grants.
    ``(g) Grant Period.--Each grant awarded under subsection (c) shall 
be awarded for a program of activities of not more than 5 years.
    ``(h) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives pre-service 
        training pursuant to a grant awarded under subsection (c)--
                    ``(A) perform work--
                            ``(i) related to the training received 
                        under this section; and
                            ``(ii) that benefits Indian people; or
                    ``(B) repay all or a prorated part of the 
                assistance received for the training.
            ``(2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a recipient of 
        the pre-service training shall, not later than 12 months after 
        the date of completion of the training, and periodically 
        thereafter, provide information concerning the compliance of 
        such recipient with the work requirement described in paragraph 
        (1).
    ``(i) Inservice Training for Teachers of Indian Children.--
            ``(1) Grants authorized.--In addition to the grants 
        authorized by subsection (c), the Secretary may make grants to 
        eligible consortia for the provision of high quality in-service 
        training. The Secretary may make such a grant to--
                    ``(A) a consortium of a tribal college and an 
                institution of higher education that awards a degree in 
                education; or
                    ``(B) a consortium of--
                            ``(i) a tribal college;
                            ``(ii) an institution of higher education 
                        that awards a degree in education; and
                            ``(iii) 1 or more elementary schools or 
                        secondary schools operated by the Bureau of 
                        Indian Affairs, local educational agencies 
                        serving Indian children, or tribal educational 
                        agencies.
            ``(2) Use of funds.--
                    ``(A) In-service training.--A consortium that 
                receives a grant under paragraph (1) shall use the 
                grant funds only to provide high quality in-service 
                training to teachers, including teachers who are not 
                Indians, in schools of local educational agencies with 
                substantial numbers of Indian children enrolled in 
                their schools, in order to better meet the needs of 
                those children.
                    ``(B) Components.--The training described in 
                subparagraph (A) shall include such activities as 
                preparing teachers to use the best available 
                scientifically based research practices and learning 
                strategies, and to make the most effective use of 
                curricula and materials, to respond to the unique needs 
                of Indian children in their classrooms.
            ``(3) Preference for indian applicants.--In applying 
        section 7153 to this subsection, the Secretary shall give a 
        preference to any consortium that includes 1 or more of the 
        entities described in that section.

``SEC. 7123. FELLOWSHIPS FOR INDIAN STUDENTS.

    ``(a) Fellowships.--
            ``(1) Authority.--The Secretary is authorized to award 
        fellowships to Indian students to enable such students to study 
        in graduate and professional programs at institutions of higher 
        education.
            ``(2) Requirements.--The fellowships described in paragraph 
        (1) shall be awarded to Indian students to enable such students 
        to pursue a course of study--
                    ``(A) of not more than 4 academic years; and
                    ``(B) that leads--
                            ``(i) toward a postbaccalaureate degree in 
                        medicine, clinical psychology, psychology, law, 
                        education, or a related field; or
                            ``(ii) to an undergraduate or graduate 
                        degree in engineering, business administration, 
                        natural resources, or a related field.
    ``(b) Stipends.--The Secretary shall pay to Indian students awarded 
fellowships under subsection (a) such stipends (including allowances 
for subsistence of such students and dependents of such students) as 
the Secretary determines to be consistent with prevailing practices 
under comparable federally supported programs.
    ``(c) Payments to Institutions in Lieu of Tuition.--The Secretary 
shall pay to the institution of higher education at which such a 
fellowship recipient is pursuing a course of study, in lieu of tuition 
charged to such recipient, such amounts as the Secretary may determine 
to be necessary to cover the cost of education provided to such 
recipient.
    ``(d) Special Rules.--
            ``(1) In general.--If a fellowship awarded under subsection 
        (a) is vacated prior to the end of the period for which the 
        fellowship is awarded, the Secretary may award an additional 
        fellowship for the unexpired portion of the period of the first 
        fellowship.
            ``(2) Written notice.--Not later than 45 days before the 
        commencement of an academic term, the Secretary shall provide 
        to each individual who is awarded a fellowship under subsection 
        (a) for such academic term written notice of--
                    ``(A) the amount of the funding for the fellowship; 
                and
                    ``(B) any stipends or other payments that will be 
                made under this section to, or for the benefit of, the 
                individual for the academic term.
            ``(3) Priority.--Not more than 10 percent of the 
        fellowships awarded under subsection (a) shall be awarded, on a 
        priority basis, to persons receiving training in guidance 
        counseling with a specialty in the area of alcohol and 
        substance abuse counseling and education.
    ``(e) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives financial 
        assistance under this section--
                    ``(A) perform work--
                            ``(i) related to the training for which the 
                        individual receives the assistance under this 
                        section; and
                            ``(ii) that benefits Indian people; or
                    ``(B) repay all or a prorated portion of such 
                assistance.
            ``(2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a recipient of 
        assistance under this section shall, not later than 12 months 
        after the date of completion of the training, and periodically 
        thereafter, provide information concerning the compliance of 
        such recipient with the work requirement described in paragraph 
        (1).
    ``(f) Administration of Fellowships.--The Secretary may administer 
the fellowships authorized under this section through a grant to, or 
contract or cooperative agreement with, an Indian organization with 
demonstrated qualifications to administer all facets of the program 
assisted under this section.

``SEC. 7124. GIFTED AND TALENTED INDIAN STUDENTS.

    ``(a) Program Authorized.--The Secretary is authorized to--
            ``(1) establish 2 centers for gifted and talented Indian 
        students at tribally controlled community colleges in 
        accordance with this section; and
            ``(2) support demonstration projects described in 
        subsection (c).
    ``(b) Eligible Entities.--The Secretary shall make grants, or enter 
into contracts, for the activities described in subsection (a), to or 
with--
            ``(1) 2 tribally controlled community colleges that--
                    ``(A) are eligible for funding under the Tribally 
                Controlled College or University Assistance Act of 
                1978; and
                    ``(B) are fully accredited; or
            ``(2) if the Secretary does not receive applications that 
        the Secretary determines to be approvable from 2 colleges that 
        meet the requirements of paragraph (1), the American Indian 
        Higher Education Consortium.
    ``(c) Use of Funds.--
            ``(1) In general.--Funds made available through the grants 
        made, or contracts entered into, by the Secretary under 
        subsection (b) shall be used for--
                    ``(A) the establishment of centers described in 
                subsection (a); and
                    ``(B) carrying out demonstration projects designed 
                to--
                            ``(i) address the special needs of Indian 
                        students in elementary schools and secondary 
                        schools who are gifted and talented; and
                            ``(ii) provide such support services to the 
                        families of the students described in clause 
                        (i) as are needed to enable such students to 
                        benefit from the projects.
            ``(2) Subcontracts.--Each recipient of a grant or contract 
        under subsection (b) to carry out a demonstration project under 
        subsection (a) may enter into a contract with any other entity, 
        including the Children's Television Workshop, to carry out the 
        demonstration project.
            ``(3) Demonstration projects.--Demonstration projects 
        assisted under subsection (b) may include--
                    ``(A) the identification of the special needs of 
                gifted and talented Indian students, particularly at 
                the elementary school level, giving attention to--
                            ``(i) identifying the emotional and 
                        psychosocial needs of such students; and
                            ``(ii) providing such support services to 
                        the families of such students as are needed to 
                        enable such students to benefit from the 
                        project;
                    ``(B) the conduct of educational, psychosocial, and 
                developmental activities that the Secretary determines 
                hold a reasonable promise of resulting in substantial 
                progress toward meeting the educational needs of such 
                gifted and talented children, including--
                            ``(i) demonstrating and exploring the use 
                        of Indian languages and exposure to Indian 
                        cultural traditions; and
                            ``(ii) carrying out mentoring and 
                        apprenticeship programs;
                    ``(C) the provision of technical assistance and the 
                coordination of activities at schools that receive 
                grants under subsection (d) with respect to the 
                activities assisted under such grants, the evaluation 
                of programs assisted under such grants, or the 
                dissemination of such evaluations;
                    ``(D) the use of public television in meeting the 
                special educational needs of such gifted and talented 
                children;
                    ``(E) leadership programs designed to replicate 
                programs for such children throughout the United 
                States, including disseminating information derived 
                from the demonstration projects conducted under 
                subsection (a); and
                    ``(F) appropriate research, evaluation, and related 
                activities pertaining to the needs of such children and 
                to the provision of such support services to the 
                families of such children as are needed to enable such 
                children to benefit from the project.
            ``(4) Application.--Each entity desiring a grant or 
        contract under subsection (b) shall submit an application to 
        the Secretary at such time and in such manner as the Secretary 
        may prescribe.
    ``(d) Additional Grants.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Interior, shall award 5 grants to schools 
        funded by the Bureau of Indian Affairs (referred to 
        individually in this section as a `Bureau school') for program 
        research and development and the development and dissemination 
        of curriculum and teacher training material, regarding--
                    ``(A) gifted and talented students;
                    ``(B) college preparatory studies (including 
                programs for Indian students with an interest in 
                pursuing teaching careers);
                    ``(C) students with special culturally related 
                academic needs, including students with social, 
                lingual, and cultural needs; or
                    ``(D) mathematics and science education.
            ``(2) Applications.--Each Bureau school desiring a grant to 
        conduct 1 or more of the activities described in paragraph (1) 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary may prescribe.
            ``(3) Special rule.--Each application described in 
        paragraph (2) shall be developed, and each grant under this 
        subsection shall be administered, jointly by the supervisor of 
        the Bureau school and the local educational agency serving such 
        school.
            ``(4) Requirements.--In awarding grants under paragraph 
        (1), the Secretary shall achieve a mixture of the programs 
        described in paragraph (1) that ensures that Indian students at 
        all grade levels and in all geographic areas of the United 
        States are able to participate in a program assisted under this 
        subsection.
            ``(5) Grant period.--Subject to the availability of 
        appropriations, a grant awarded under paragraph (1) shall be 
        awarded for a 3-year period and may be renewed by the Secretary 
        for additional 3-year periods if the Secretary determines that 
        the performance of the grant recipient has been satisfactory.
            ``(6) Dissemination.--
                    ``(A) Cooperative efforts.--The dissemination of 
                any materials developed from activities assisted under 
                paragraph (1) shall be carried out in cooperation with 
                entities that receive funds pursuant to subsection (b).
                    ``(B) Report.--The Secretary shall prepare and 
                submit to the Secretary of the Interior and to Congress 
                a report concerning any results from activities 
                described in this subsection.
            ``(7) Evaluation costs.--
                    ``(A) Division.--The costs of evaluating any 
                activities assisted under paragraph (1) shall be 
                divided between the Bureau schools conducting such 
                activities and the recipients of grants or contracts 
                under subsection (b) who conduct demonstration projects 
                under subsection (a).
                    ``(B) Grants and contracts.--If no funds are 
                provided under subsection (b) for--
                            ``(i) the evaluation of activities assisted 
                        under paragraph (1);
                            ``(ii) technical assistance and 
                        coordination with respect to such activities; 
                        or
                            ``(iii) the dissemination of the 
                        evaluations referred to in clause (i),
                the Secretary shall make such grants, or enter into 
                such contracts, as are necessary to provide for the 
                evaluations, technical assistance, and coordination of 
                such activities, and the dissemination of the 
                evaluations.
    ``(e) Information Network.--The Secretary shall encourage each 
recipient of a grant or contract under this section to work 
cooperatively as part of a national network to ensure that the 
information developed by the grant or contract recipient is readily 
available to the entire educational community.

``SEC. 7125. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND 
              DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants to Indian tribes, 
and tribal organizations approved by Indian tribes, to plan and develop 
a centralized tribal administrative entity to--
            ``(1) coordinate all education programs operated by the 
        tribe or within the territorial jurisdiction of the tribe;
            ``(2) develop education codes for schools within the 
        territorial jurisdiction of the tribe;
            ``(3) provide support services and technical assistance to 
        schools serving children of the tribe; and
            ``(4) perform child-find screening services for the 
        preschool-aged children of the tribe to--
                    ``(A) ensure placement in appropriate educational 
                facilities; and
                    ``(B) coordinate the provision of any needed 
                special services for conditions such as disabilities 
                and English language skill deficiencies.
    ``(b) Period of Grant.--Each grant awarded under this section may 
be awarded for a period of not more than 3 years. Such grant may be 
renewed upon the termination of the initial period of the grant if the 
grant recipient demonstrates to the satisfaction of the Secretary that 
renewing the grant for an additional 3-year period is necessary to 
carry out the objectives of the grant described in subsection 
(c)(2)(A).
    ``(c) Application for Grant.--
            ``(1) In general.--Each Indian tribe and tribal 
        organization desiring a grant under this section shall submit 
        an application to the Secretary at such time, in such manner, 
        containing such information, and consistent with such criteria, 
        as the Secretary may prescribe in regulations.
            ``(2) Contents.--Each application described in paragraph 
        (1) shall contain--
                    ``(A) a statement describing the activities to be 
                conducted, and the objectives to be achieved, under the 
                grant; and
                    ``(B) a description of the method to be used for 
                evaluating the effectiveness of the activities for 
                which assistance is sought and for determining whether 
                such objectives are achieved.
            ``(3) Approval.--The Secretary may approve an application 
        submitted by a tribe or tribal organization pursuant to this 
        section only if the Secretary is satisfied that such 
        application, including any documentation submitted with the 
        application--
                    ``(A) demonstrates that the applicant has consulted 
                with other education entities, if any, within the 
                territorial jurisdiction of the applicant who will be 
                affected by the activities to be conducted under the 
                grant;
                    ``(B) provides for consultation with such other 
                education entities in the operation and evaluation of 
                the activities conducted under the grant; and
                    ``(C) demonstrates that there will be adequate 
                resources provided under this section or from other 
                sources to complete the activities for which assistance 
                is sought, except that the availability of such other 
                resources shall not be a basis for disapproval of such 
                application.
    ``(d) Restriction.--A tribe may not receive funds under this 
section if such tribe receives funds under section 1144 of the 
Education Amendments of 1978.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Education to carry out this section 
$3,000,000 for each of fiscal years 2002 through 2008.

 ``Subpart 3--Special Programs Relating to Adult Education for Indians

``SEC. 7131. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
              INDIANS.

    ``(a) In General.--The Secretary shall make grants to State and 
local educational agencies and to Indian tribes, institutions, and 
organizations--
            ``(1) to support planning, pilot, and demonstration 
        projects that are designed to test and demonstrate the 
        effectiveness of programs for improving employment and 
        educational opportunities for adult Indians;
            ``(2) to assist in the establishment and operation of 
        programs that are designed to stimulate--
                    ``(A) the provision of basic literacy opportunities 
                for all nonliterate Indian adults; and
                    ``(B) the provision of opportunities to all Indian 
                adults to qualify for a secondary school diploma, or 
                its recognized equivalent, in the shortest period of 
                time feasible;
            ``(3) to support a major research and development program 
        to develop more innovative and effective techniques for 
        achieving literacy and secondary school equivalency for 
        Indians;
            ``(4) to provide for basic surveys and evaluations to 
        define accurately the extent of the problems of illiteracy and 
        lack of secondary school completion among Indians; and
            ``(5) to encourage the dissemination of information and 
        materials relating to, and the evaluation of, the effectiveness 
        of education programs that may offer educational opportunities 
        to Indian adults.
    ``(b) Educational Services.--The Secretary may make grants to 
Indian tribes, institutions, and organizations to develop and establish 
educational services and programs specifically designed to improve 
educational opportunities for Indian adults.
    ``(c) Information and Evaluation.--The Secretary may make grants 
to, and enter into contracts with, public agencies and institutions and 
Indian tribes, institutions, and organizations, for--
            ``(1) the dissemination of information concerning 
        educational programs, services, and resources available to 
        Indian adults, including evaluations of the programs, services, 
        and resources; and
            ``(2) the evaluation of federally assisted programs in 
        which Indian adults may participate to determine the 
        effectiveness of the programs in achieving the purposes of the 
        programs with respect to Indian adults.
    ``(d) Applications.--
            ``(1) In general.--Each entity desiring a grant or contract 
        under this section shall submit to the Secretary an application 
        at such time, in such manner, containing such information, and 
        consistent with such criteria, as the Secretary may prescribe 
        in regulations.
            ``(2) Contents.--Each application described in paragraph 
        (1) shall contain--
                    ``(A) a statement describing the activities to be 
                conducted and the objectives to be achieved under the 
                grant or contract; and
                    ``(B) a description of the method to be used for 
                evaluating the effectiveness of the activities for 
                which assistance is sought and determining whether the 
                objectives of the grant or contract are achieved.
            ``(3) Approval.--The Secretary shall not approve an 
        application described in paragraph (1) unless the Secretary 
        determines that such application, including any documentation 
        submitted with the application, indicates that--
                    ``(A) there has been adequate participation, by the 
                individuals to be served and the appropriate tribal 
                communities, in the planning and development of the 
                activities to be assisted; and
                    ``(B) the individuals and tribal communities 
                referred to in subparagraph (A) will participate in the 
                operation and evaluation of the activities to be 
                assisted.
            ``(4) Priority.--In approving applications under paragraph 
        (1), the Secretary shall give priority to applications from 
        Indian educational agencies, organizations, and institutions.
    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
made available to an entity through a grant or contract made or entered 
into under this section for a fiscal year may be used to pay for 
administrative costs.

               ``Subpart 4--National Research Activities

``SEC. 7141. NATIONAL ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 7162(b) for each fiscal year to--
            ``(1) conduct research related to effective approaches for 
        the education of Indian children and adults;
            ``(2) evaluate federally assisted education programs from 
        which Indian children and adults may benefit;
            ``(3) collect and analyze data on the educational status 
        and needs of Indians; and
            ``(4) carry out other activities that are consistent with 
        the purpose of this part.
    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through grants to, 
or contracts or cooperative agreements with, Indian tribes, Indian 
organizations, State educational agencies, local educational agencies, 
institutions of higher education, including Indian institutions of 
higher education, and other public and private agencies and 
institutions.
    ``(c) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to assure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office of Educational 
        Research and Improvement; and
            ``(2) may include collaborative research activities that 
        are jointly funded and carried out by the Office of Indian 
        Education and the Office of Educational Research and 
        Improvement.
    ``(d) Administrative Costs.--Not more than 5 percent of the funds 
made available to an entity through a grant, contract, or agreement 
made or entered into under this subpart for a fiscal year may be used 
to pay for administrative costs.

                  ``Subpart 5--Federal Administration

``SEC. 7151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

    ``(a) Membership.--There is established a National Advisory Council 
on Indian Education (referred to in this section as the `Council'), 
which shall--
            ``(1) consist of 15 Indian members, who shall be appointed 
        by the President from lists of nominees furnished, from time to 
        time, by Indian tribes and Indian organizations; and
            ``(2) represent different geographic areas of the United 
        States.
    ``(b) Duties.--The Council shall--
            ``(1) advise the Secretary concerning the funding and 
        administration (including the development of regulations and 
        administrative policies and practices) of any program, 
        including any program established under this part--
                    ``(A) with respect to which the Secretary has 
                jurisdiction; and
                    ``(B)(i) that includes Indian children or adults as 
                participants; or
                    ``(ii) that may benefit Indian children or adults;
            ``(2) make recommendations to the Secretary for filling the 
        position of Director of Indian Education whenever a vacancy 
        occurs; and
            ``(3) prepare and submit to Congress, not later than June 
        30 of each year, a report on the activities of the Council, 
        including--
                    ``(A) any recommendations that the Council 
                considers to be appropriate for the improvement of 
                Federal education programs that include Indian children 
                or adults as participants, or that may benefit Indian 
                children or adults; and
                    ``(B) recommendations concerning the funding of any 
                program described in subparagraph (A).

``SEC. 7152. PEER REVIEW.

    ``The Secretary may use a peer review process to review 
applications submitted to the Secretary under subpart 2, 3, or 4.

``SEC. 7153. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants and entering into contracts or cooperative 
agreements under subpart 2, 3, or 4, the Secretary shall give a 
preference to Indian tribes, organizations, and institutions of higher 
education under any program with respect to which Indian tribes, 
organizations, and institutions are eligible to apply for grants, 
contracts, or cooperative agreements.

``SEC. 7154. MINIMUM GRANT CRITERIA.

    ``The Secretary may not approve an application for a grant, 
contract, or cooperative agreement under subpart 2 or 3 unless the 
application is for a grant, contract, or cooperative agreement that 
is--
            ``(1) of sufficient size, scope, and quality to achieve the 
        purpose or objectives of such grant, contract, or cooperative 
        agreement; and
            ``(2) based on relevant research findings.

       ``Subpart 6--Definitions; Authorizations of Appropriations

``SEC. 7161. DEFINITIONS.

    ``In this part:
            ``(1) Adult.--The term `adult' means an individual who--
                    ``(A) has attained age 16; or
                    ``(B) has attained an age that is greater than the 
                age of compulsory school attendance under an applicable 
                State law.
            ``(2) Free public education.--The term `free public 
        education' means education that is--
                    ``(A) provided at public expense, under public 
                supervision and direction, and without tuition charge; 
                and
                    ``(B) provided as elementary or secondary education 
                in the applicable State or to preschool children.
            ``(3) Indian.--The term `Indian' means an individual who 
        is--
                    ``(A) a member of an Indian tribe or band, as 
                membership is defined by the tribe or band, including--
                            ``(i) any tribe or band terminated since 
                        1940; and
                            ``(ii) any tribe or band recognized by the 
                        State in which the tribe or band resides;
                    ``(B) a descendant, in the first or second degree, 
                of an individual described in subparagraph (A);
                    ``(C) an individual who is considered by the 
                Secretary of the Interior to be an Indian for any 
                purpose;
                    ``(D) an Eskimo, Aleut, or other Alaska Native (as 
                defined in section 7306); or
                    ``(E) a member of an organized Indian group that 
                received a grant under the Indian Education Act of 1988 
                as in effect the day preceding the date of enactment of 
                the `Improving America's Schools Act of 1994' (108 
                Stat. 3518).

``SEC. 7162. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Subpart 1.--There are authorized to be appropriated to the 
Secretary of Education to carry out subpart 1 $93,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(b) Subparts 2 Through 4.--There are authorized to be 
appropriated to the Secretary of Education to carry out subparts 2, 3, 
and 4 $20,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.

                  ``PART B--NATIVE HAWAIIAN EDUCATION

``SEC. 7201. SHORT TITLE.

    ``This part may be cited as the `Native Hawaiian Education Act'.

``SEC. 7202. FINDINGS.

    ``Congress finds the following:
            ``(1) Native Hawaiians are a distinct and unique indigenous 
        people with a historical continuity to the original inhabitants 
        of the Hawaiian archipelago, whose society was organized as a 
        nation and internationally recognized as a nation by the United 
        States, Britain, France, and Japan, as evidenced by treaties 
        governing friendship, commerce, and navigation.
            ``(2) At the time of the arrival of the first non-
        indigenous people in Hawai'i in 1778, the Native Hawaiian 
        people lived in a highly organized, self-sufficient subsistence 
        social system based on a communal land tenure system with a 
        sophisticated language, culture, and religion.
            ``(3) A unified monarchal government of the Hawaiian 
        Islands was established in 1810 under Kamehameha I, the first 
        King of Hawai`i.
            ``(4) From 1826 until 1893, the United States recognized 
        the sovereignty and independence of the Kingdom of Hawai`i, 
        which was established in 1810 under Kamehameha I, extended full 
        and complete diplomatic recognition to the Kingdom of Hawai`i, 
        and entered into treaties and conventions with the Kingdom of 
        Hawai`i to govern friendship, commerce and navigation in 1826, 
        1842, 1849, 1875, and 1887.
            ``(5) In 1893, the sovereign, independent, internationally 
        recognized, and indigenous government of Hawai`i, the Kingdom 
        of Hawai`i, was overthrown by a small group of non-Hawaiians, 
        including United States citizens, who were assisted in their 
        efforts by the United States Minister, a United States naval 
        representative, and armed naval forces of the United States. 
        Because of the participation of United States agents and 
        citizens in the overthrow of the Kingdom of Hawai`i, in 1993 
        the United States apologized to Native Hawaiians for the 
        overthrow and the deprivation of the rights of Native Hawaiians 
        to self-determination through Public Law 103-150 (107 Stat. 
        1510).
            ``(6) In 1898, the joint resolution entitled `Joint 
        Resolution to provide for annexing the Hawaiian Islands to the 
        United States', approved July 7, 1898 (30 Stat. 750), ceded 
        absolute title of all lands held by the Republic of Hawai`i, 
        including the government and crown lands of the former Kingdom 
        of Hawai`i, to the United States, but mandated that revenue 
        generated from the lands be used `solely for the benefit of the 
        inhabitants of the Hawaiian Islands for educational and other 
        public purposes'.
            ``(7) By 1919, the Native Hawaiian population had declined 
        from an estimated 1,000,000 in 1778 to an alarming 22,600, and 
        in recognition of this severe decline, Congress enacted the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which 
        designated approximately 200,000 acres of ceded public lands 
        for homesteading by Native Hawaiians.
            ``(8) Through the enactment of the Hawaiian Homes 
        Commission Act, 1920, Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, which was described by then Secretary of the 
        Interior Franklin K. Lane, who said: `One thing that impressed 
        me . . . was the fact that the natives of the island who are 
        our wards, I should say, and for whom in a sense we are 
        trustees, are falling off rapidly in numbers and many of them 
        are in poverty.'.
            ``(9) In 1938, Congress again acknowledged the unique 
        status of the Hawaiian people by including in the Act of June 
        20, 1938 (52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 
        392b, 392c, 396, 396a), a provision to lease lands within the 
        National Parks extension to Native Hawaiians and to permit 
        fishing in the area `only by native Hawaiian residents of said 
        area or of adjacent villages and by visitors under their 
        guidance.'.
            ``(10) Under the Act entitled `An Act to provide for the 
        admission of the State of Hawai`i into the Union', approved 
        March 18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for the administration of the Hawaiian Home 
        Lands to the State of Hawai`i but reaffirmed the trust 
        relationship between the United States and the Hawaiian people 
        by retaining the exclusive power to enforce the trust, 
        including the power to approve land exchanges and amendments to 
        such Act affecting the rights of beneficiaries under such Act.
            ``(11) In 1959, under the Act entitled `An Act to provide 
        for the admission of the State of Hawai`i into the Union', the 
        United States also ceded to the State of Hawai`i title to the 
        public lands formerly held by the United States, but mandated 
        that such lands be held by the State `in public trust' and 
        reaffirmed the special relationship that existed between the 
        United States and the Hawaiian people by retaining the legal 
        responsibility to enforce the public trust responsibility of 
        the State of Hawai`i for the betterment of the conditions of 
        Native Hawaiians, as defined in section 201(a) of the Hawaiian 
        Homes Commission Act, 1920.
            ``(12) The United States has recognized and reaffirmed 
        that--
                    ``(A) Native Hawaiians have a cultural, historic, 
                and land-based link to the indigenous people who 
                exercised sovereignty over the Hawaiian Islands, and 
                that group has never relinquished its claims to 
                sovereignty or its sovereign lands;
                    ``(B) Congress does not extend services to Native 
                Hawaiians because of their race, but because of their 
                unique status as the indigenous people of a once 
                sovereign nation as to whom the United States has 
                established a trust relationship;
                    ``(C) Congress has also delegated broad authority 
                to administer a portion of the Federal trust 
                responsibility to the State of Hawai`i;
                    ``(D) the political status of Native Hawaiians is 
                comparable to that of American Indians and Alaska 
                Natives; and
                    ``(E) the aboriginal, indigenous people of the 
                United States have--
                            ``(i) a continuing right to autonomy in 
                        their internal affairs; and
                            ``(ii) an ongoing right of self-
                        determination and self-governance that has 
                        never been extinguished.
            ``(13) The political relationship between the United States 
        and the Native Hawaiian people has been recognized and 
        reaffirmed by the United States, as evidenced by the inclusion 
        of Native Hawaiians in--
                    ``(A) the Native American Programs Act of 1974 (42 
                U.S.C. 2991 et seq.);
                    ``(B) the American Indian Religious Freedom Act (42 
                U.S.C. 1996);
                    ``(C) the National Museum of the American Indian 
                Act (20 U.S.C. 80q et seq.);
                    ``(D) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                    ``(E) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.);
                    ``(F) the Native American Languages Act (25 U.S.C. 
                2901 et seq.);
                    ``(G) the American Indian, Alaska Native, and 
                Native Hawaiian Culture and Art Development Act (20 
                U.S.C. 4401 et seq.);
                    ``(H) the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.); and
                    ``(I) the Older Americans Act of 1965 (42 U.S.C. 
                3001 et seq.).
            ``(14) In 1981, Congress instructed the Office of Education 
        to submit to Congress a comprehensive report on Native Hawaiian 
        education. The report, entitled the `Native Hawaiian 
        Educational Assessment Project', was released in 1983 and 
        documented that Native Hawaiians scored below parity with 
        regard to national norms on standardized achievement tests, 
        were disproportionately represented in many negative social and 
        physical statistics indicative of special educational needs, 
        and had educational needs that were related to their unique 
        cultural situation, such as different learning styles and low 
        self-image.
            ``(15) In recognition of the educational needs of Native 
        Hawaiians, in 1988, Congress enacted title IV of the Augustus 
        F. Hawkins-Robert T. Stafford Elementary and Secondary School 
        Improvement Amendments of 1988 (102 Stat. 130) to authorize and 
        develop supplemental educational programs to address the unique 
        conditions of Native Hawaiians.
            ``(16) In 1993, the Kamehameha Schools Bishop Estate 
        released a 10-year update of findings of the Native Hawaiian 
        Educational Assessment Project, which found that despite the 
        successes of the programs established under title IV of the 
        Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988, many of the same 
        educational needs still existed for Native Hawaiians. 
        Subsequent reports by the Kamehameha Schools Bishop Estate and 
        other organizations have generally confirmed those findings. 
        For example--
                    ``(A) educational risk factors continue to start 
                even before birth for many Native Hawaiian children, 
                including--
                            ``(i) late or no prenatal care;
                            ``(ii) high rates of births by Native 
                        Hawaiian women who are unmarried; and
                            ``(iii) high rates of births to teenage 
                        parents;
                    ``(B) Native Hawaiian students continue to begin 
                their school experience lagging behind other students 
                in terms of readiness factors such as vocabulary test 
                scores;
                    ``(C) Native Hawaiian students continue to score 
                below national norms on standardized education 
                achievement tests at all grade levels;
                    ``(D) both public and private schools continue to 
                show a pattern of lower percentages of Native Hawaiian 
                students in the uppermost achievement levels and in 
                gifted and talented programs;
                    ``(E) Native Hawaiian students continue to be 
                overrepresented among students qualifying for special 
                education programs provided to students with learning 
                disabilities, mild mental retardation, emotional 
                impairment, and other such disabilities;
                    ``(F) Native Hawaiians continue to be 
                underrepresented in institutions of higher education 
                and among adults who have completed 4 or more years of 
                college;
                    ``(G) Native Hawaiians continue to be 
                disproportionately represented in many negative social 
                and physical statistics indicative of special 
                educational needs, as demonstrated by the fact that--
                            ``(i) Native Hawaiian students are more 
                        likely to be retained in grade level and to be 
                        excessively absent in secondary school;
                            ``(ii) Native Hawaiian students have the 
                        highest rates of drug and alcohol use in the 
                        State of Hawai`i; and
                            ``(iii) Native Hawaiian children continue 
                        to be disproportionately victimized by child 
                        abuse and neglect; and
                    ``(H) Native Hawaiians now comprise over 23 percent 
                of the students served by the State of Hawai`i 
                Department of Education, and there are and will 
                continue to be geographically rural, isolated areas 
                with a high Native Hawaiian population density.
            ``(17) In the 1998 National Assessment of Educational 
        Progress, Hawaiian fourth-graders ranked 39th among groups of 
        students from 39 States in reading. Given that Hawaiian 
        students rank among the lowest groups of students nationally in 
        reading, and that Native Hawaiian students rank the lowest 
        among Hawaiian students in reading, it is imperative that 
        greater focus be placed on beginning reading and early 
        education and literacy in Hawai`i.
            ``(18) The findings described in paragraphs (16) and (17) 
        are inconsistent with the high rates of literacy and 
        integration of traditional culture and Western education 
        historically achieved by Native Hawaiians through a Hawaiian 
        language-based public school system established in 1840 by 
        Kamehameha III.
            ``(19) Following the overthrow of the Kingdom of Hawai`i in 
        1893, Hawaiian medium schools were banned. After annexation, 
        throughout the territorial and statehood period of Hawai`i, and 
        until 1986, use of the Hawaiian language as an instructional 
        medium in education in public schools was declared unlawful. 
        The declaration caused incalculable harm to a culture that 
        placed a very high value on the power of language, as 
        exemplified in the traditional saying: `I ka `olelo no ke ola; 
        I ka `olelo no ka make. In the language rests life; In the 
        language rests death.'.
            ``(20) Despite the consequences of over 100 years of 
        nonindigenous influence, the Native Hawaiian people are 
        determined to preserve, develop, and transmit to future 
        generations their ancestral territory and their cultural 
        identity in accordance with their own spiritual and traditional 
        beliefs, customs, practices, language, and social institutions.
            ``(21) The State of Hawai`i, in the constitution and 
        statutes of the State of Hawai`i--
                    ``(A) reaffirms and protects the unique right of 
                the Native Hawaiian people to practice and perpetuate 
                their culture and religious customs, beliefs, 
                practices, and language;
                    ``(B) recognizes the traditional language of the 
                Native Hawaiian people as an official language of the 
                State of Hawai`i, which may be used as the language of 
                instruction for all subjects and grades in the public 
                school system; and
                    ``(C) promotes the study of the Hawaiian culture, 
                language, and history by providing a Hawaiian education 
                program and using community expertise as a suitable and 
                essential means to further the program.

``SEC. 7203. PURPOSES.

    ``The purposes of this part are to--
            ``(1) authorize and develop innovative educational programs 
        to assist Native Hawaiians;
            ``(2) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including resources made available under this part, on Native 
        Hawaiian education, and to provide periodic assessment and data 
        collection;
            ``(3) supplement and expand programs and authorities in the 
        area of education to further the purposes of this title; and
            ``(4) encourage the maximum participation of Native 
        Hawaiians in planning and management of Native Hawaiian 
        education programs.

``SEC. 7204. NATIVE HAWAIIAN EDUCATION COUNCIL AND ISLAND COUNCILS.

    ``(a) Establishment of Native Hawaiian Education Council.--In order 
to better effectuate the purposes of this part through the coordination 
of educational and related services and programs available to Native 
Hawaiians, including those programs receiving funding under this part, 
the Secretary is authorized to establish a Native Hawaiian Education 
Council (referred to in this part as the `Education Council').
    ``(b) Composition of Education Council.--The Education Council 
shall consist of not more than 21 members, unless otherwise determined 
by a majority of the council.
    ``(c) Conditions and Terms.--
            ``(1) Conditions.--At least 10 members of the Education 
        Council shall be Native Hawaiian education service providers 
        and 10 members of the Education Council shall be Native 
        Hawaiians or Native Hawaiian education consumers. In addition, 
        a representative of the State of Hawai`i Office of Hawaiian 
        Affairs shall serve as a member of the Education Council.
            ``(2) Appointments.--The members of the Education Council 
        shall be appointed by the Secretary based on recommendations 
        received from the Native Hawaiian community.
            ``(3) Terms.--Members of the Education Council shall serve 
        for staggered terms of 3 years, except as provided in paragraph 
        (4).
            ``(4) Council determinations.--Additional conditions and 
        terms relating to membership on the Education Council, 
        including term lengths and term renewals, shall be determined 
        by a majority of the Education Council.
    ``(d) Native Hawaiian Education Council Grant.--The Secretary shall 
make a direct grant to the Education Council in order to enable the 
Education Council to--
            ``(1) coordinate the educational and related services and 
        programs available to Native Hawaiians, including the programs 
        assisted under this part;
            ``(2) assess the extent to which such services and programs 
        meet the needs of Native Hawaiians, and collect data on the 
        status of Native Hawaiian education;
            ``(3) provide direction and guidance, through the issuance 
        of reports and recommendations, to appropriate Federal, State, 
        and local agencies in order to focus and improve the use of 
        resources, including resources made available under this part, 
        relating to Native Hawaiian education, and serve, where 
        appropriate, in an advisory capacity; and
            ``(4) make direct grants, if such grants enable the 
        Education Council to carry out the duties of the Education 
        Council, as described in paragraphs (1) through (3).
    ``(e) Additional Duties of the Education Council.--
            ``(1) In general.--The Education Council shall provide 
        copies of any reports and recommendations issued by the 
        Education Council, including any information that the Education 
        Council provides to the Secretary pursuant to subsection (i), 
        to the Secretary, the Committee on Education and the Workforce 
        of the House of Representatives, and the Committee on Indian 
        Affairs of the Senate.
            ``(2) Annual report.--The Education Council shall prepare 
        and submit to the Secretary an annual report on the Education 
        Council's activities.
            ``(3) Island council support and assistance.--The Education 
        Council shall provide such administrative support and financial 
        assistance to the island councils established pursuant to 
        subsection (f) as the Secretary determines to be appropriate, 
        in a manner that supports the distinct needs of each island 
        council.
    ``(f) Establishment of Island Councils.--
            ``(1) In general.--In order to better effectuate the 
        purposes of this part and to ensure the adequate representation 
        of island and community interests within the Education Council, 
        the Secretary is authorized to facilitate the establishment of 
        Native Hawaiian education island councils (referred to 
        individually in this part as an `island council') for the 
        following islands:
                    ``(A) Hawai`i.
                    ``(B) Maui.
                    ``(C) Moloka`i.
                    ``(D) Lana`i.
                    ``(E) O`ahu.
                    ``(F) Kaua`i.
                    ``(G) Ni`ihau.
            ``(2) Composition of island councils.--Each island council 
        shall consist of parents, students, and other community members 
        who have an interest in the education of Native Hawaiians, and 
        shall be representative of individuals concerned with the 
        educational needs of all age groups, from children in preschool 
        through adults. At least \3/4\ of the members of each island 
        council shall be Native Hawaiians.
    ``(g) Administrative Provisions Relating to Education Council and 
Island Councils.--The Education Council and each island council shall 
meet at the call of the chairperson of the appropriate council, or upon 
the request of the majority of the members of the appropriate council, 
but in any event not less often than 4 times during each calendar year. 
The provisions of the Federal Advisory Committee Act shall not apply to 
the Education Council and each island council.
    ``(h) Compensation.--Members of the Education Council and each 
island council shall not receive any compensation for service on the 
Education Council and each island council, respectively.
    ``(i) Report.--Not later than 4 years after the date of enactment 
of the Better Education for Students and Teachers Act, the Secretary 
shall prepare and submit to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Indian 
Affairs of the Senate a report that summarizes the annual reports of 
the Education Council, describes the allocation and use of funds under 
this part, and contains recommendations for changes in Federal, State, 
and local policy to advance the purposes of this part.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $300,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years. Funds appropriated under this subsection shall remain available 
until expended.

``SEC. 7205. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make direct grants to, or enter into contracts with--
                    ``(A) Native Hawaiian educational organizations;
                    ``(B) Native Hawaiian community-based 
                organizations;
                    ``(C) public and private nonprofit organizations, 
                agencies, and institutions with experience in 
                developing or operating Native Hawaiian programs or 
                programs of instruction in the Native Hawaiian 
                language; and
                    ``(D) consortia of the organizations, agencies, and 
                institutions described in subparagraphs (A) through 
                (C),
        to carry out programs that meet the purposes of this part.
            ``(2) Priorities.--In awarding grants or contracts to carry 
        out activities described in paragraph (3), the Secretary shall 
        give priority to entities proposing projects that are designed 
        to address--
                    ``(A) beginning reading and literacy among students 
                in kindergarten through third grade;
                    ``(B) the needs of at-risk children and youth;
                    ``(C) needs in fields or disciplines in which 
                Native Hawaiians are underemployed; and
                    ``(D) the use of the Hawaiian language in 
                instruction.
            ``(3) Authorized activities.--Activities provided through 
        programs carried out under this part may include--
                    ``(A) the development and maintenance of a 
                statewide Native Hawaiian early education and care 
                system to provide a continuum of services for Native 
                Hawaiian children from the prenatal period of the 
                children through age 5;
                    ``(B) the operation of family-based education 
                centers that provide such services as--
                            ``(i) programs for Native Hawaiian parents 
                        and their infants from the prenatal period of 
                        the infants through age 3;
                            ``(ii) preschool programs for Native 
                        Hawaiians; and
                            ``(iii) research on, and development and 
                        assessment of, family-based, early childhood, 
                        and preschool programs for Native Hawaiians;
                    ``(C) activities that enhance beginning reading and 
                literacy in either the Hawaiian or the English language 
                among Native Hawaiian students in kindergarten through 
                third grade and assistance in addressing the distinct 
                features of combined English and Hawaiian literacy for 
                Hawaiian speakers in fifth and sixth grade;
                    ``(D) activities to meet the special needs of 
                Native Hawaiian students with disabilities, including--
                            ``(i) the identification of such students 
                        and their needs;
                            ``(ii) the provision of support services to 
                        the families of those students; and
                            ``(iii) other activities consistent with 
                        the requirements of the Individuals with 
                        Disabilities Education Act;
                    ``(E) activities that address the special needs of 
                Native Hawaiian students who are gifted and talented, 
                including--
                            ``(i) educational, psychological, and 
                        developmental activities designed to assist in 
                        the educational progress of those students; and
                            ``(ii) activities that involve the parents 
                        of those students in a manner designed to 
                        assist in the students' educational progress;
                    ``(F) the development of academic and vocational 
                curricula to address the needs of Native Hawaiian 
                children and adults, including curriculum materials in 
                the Hawaiian language and mathematics and science 
                curricula that incorporate Native Hawaiian tradition 
                and culture;
                    ``(G) professional development activities for 
                educators, including--
                            ``(i) the development of programs to 
                        prepare prospective teachers to address the 
                        unique needs of Native Hawaiian students within 
                        the context of Native Hawaiian culture, 
                        language, and traditions;
                            ``(ii) in-service programs to improve the 
                        ability of teachers who teach in schools with 
                        concentrations of Native Hawaiian students to 
                        meet those students' unique needs; and
                            ``(iii) the recruitment and preparation of 
                        Native Hawaiians, and other individuals who 
                        live in communities with a high concentration 
                        of Native Hawaiians, to become teachers;
                    ``(H) the operation of community-based learning 
                centers that address the needs of Native Hawaiian 
                families and communities through the coordination of 
                public and private programs and services, including--
                            ``(i) preschool programs;
                            ``(ii) after-school programs; and
                            ``(iii) vocational and adult education 
                        programs;
                    ``(I) activities to enable Native Hawaiians to 
                enter and complete programs of postsecondary education, 
                including--
                            ``(i) provision of full or partial 
                        scholarships for undergraduate or graduate 
                        study that are awarded to students based on 
                        their academic promise and financial need, with 
                        a priority, at the graduate level, given to 
                        students entering professions in which Native 
                        Hawaiians are underrepresented;
                            ``(ii) family literacy services;
                            ``(iii) counseling and support services for 
                        students receiving scholarship assistance;
                            ``(iv) counseling and guidance for Native 
                        Hawaiian secondary students who have the 
                        potential to receive scholarships; and
                            ``(v) faculty development activities 
                        designed to promote the matriculation of Native 
                        Hawaiian students;
                    ``(J) research and data collection activities to 
                determine the educational status and needs of Native 
                Hawaiian children and adults;
                    ``(K) other research and evaluation activities 
                related to programs carried out under this part; and
                    ``(L) other activities, consistent with the 
                purposes of this part, to meet the educational needs of 
                Native Hawaiian children and adults.
            ``(4) Special rule and conditions.--
                    ``(A) Institutions outside hawaii.--The Secretary 
                shall not establish a policy under this section that 
                prevents a Native Hawaiian student enrolled at a 2- or 
                4-year degree granting institution of higher education 
                outside of the State of Hawai`i from receiving a 
                scholarship pursuant to paragraph (3)(I).
                    ``(B) Scholarship conditions.--The Secretary shall 
                establish conditions for receipt of a scholarship 
                awarded under paragraph (3)(I). The conditions shall 
                require that an individual seeking such a scholarship 
                enter into a contract to provide professional services, 
                either during the scholarship period or upon completion 
                of a program of postsecondary education, to the Native 
                Hawaiian community.
    ``(b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $28,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years. Funds appropriated under this subsection shall remain available 
until expended.

``SEC. 7206. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
and no contract may be entered into under this part, unless the entity 
seeking the grant or contract submits an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may determine to be necessary to carry out the provisions of 
this part.
    ``(b) Special Rule.--Each applicant for a grant or contract under 
this part shall submit the application for comment to the local 
educational agency serving students who will participate in the program 
to be carried out under the grant or contract, and include those 
comments, if any, with the application to the Secretary.

``SEC. 7207. DEFINITIONS.

    ``In this part:
            ``(1) Native hawaiian.--The term `Native Hawaiian' means 
        any individual who is--
                    ``(A) a citizen of the United States; and
                    ``(B) a descendant of the aboriginal people who, 
                prior to 1778, occupied and exercised sovereignty in 
                the area that now comprises the State of Hawai`i, as 
                evidenced by--
                            ``(i) genealogical records;
                            ``(ii) Kupuna (elders) or Kama`aina (long-
                        term community residents) verification; or
                            ``(iii) certified birth records.
            ``(2) Native hawaiian community-based organization.--The 
        term `Native Hawaiian community-based organization' means any 
        organization that is composed primarily of Native Hawaiians 
        from a specific community and that assists in the social, 
        cultural, and educational development of Native Hawaiians in 
        that community.
            ``(3) Native hawaiian educational organization.--The term 
        `Native Hawaiian educational organization' means a private 
        nonprofit organization that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organization;
                    ``(C) incorporates Native Hawaiian perspective, 
                values, language, culture, and traditions into the core 
                function of the organization;
                    ``(D) has demonstrated expertise in the education 
                of Native Hawaiian youth; and
                    ``(E) has demonstrated expertise in research and 
                program development.
            ``(4) Native hawaiian language.--The term `Native Hawaiian 
        language' means the single Native American language indigenous 
        to the original inhabitants of the State of Hawai`i.
            ``(5) Native hawaiian organization.--The term `Native 
        Hawaiian organization' means a private nonprofit organization 
        that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organizations; and
                    ``(C) is recognized by the Governor of Hawai`i for 
                the purpose of planning, conducting, or administering 
                programs (or portions of programs) for the benefit of 
                Native Hawaiians.
            ``(6) Office of hawaiian affairs.--The term `Office of 
        Hawaiian Affairs' means the office of Hawaiian Affairs 
        established by the Constitution of the State of Hawai`i.

                   ``PART C--ALASKA NATIVE EDUCATION

``SEC. 7301. SHORT TITLE.

    ``This part may be cited as the `Alaska Native Educational Equity, 
Support, and Assistance Act'.

``SEC. 7302. FINDINGS.

    ``Congress finds the following:
            ``(1) The attainment of educational success is critical to 
        the betterment of the conditions, long-term well-being, and 
        preservation of the culture of Alaska Natives.
            ``(2) It is the policy of the Federal Government to 
        encourage the maximum participation by Alaska Natives in the 
        planning and the management of Alaska Native education 
        programs.
            ``(3) Alaska Native children enter and exit school with 
        serious educational handicaps.
            ``(4) The educational achievement of Alaska Native children 
        is far below national norms. Native performance on standardized 
        tests is low, Native student dropout rates are high, and 
        Natives are significantly underrepresented among holders of 
        baccalaureate degrees in the State of Alaska. As a result, 
        Native students are being denied their opportunity to become 
        full participants in society by grade school and high school 
        educations that are condemning an entire generation to an 
        underclass status and a life of limited choices.
            ``(5) The programs authorized in this title, combined with 
        expanded Head Start, infant learning and early childhood 
        education programs, and parent education programs are essential 
        if educational handicaps are to be overcome.
            ``(6) The sheer magnitude of the geographic barriers to be 
        overcome in delivering educational services in rural Alaska and 
        Alaska villages should be addressed through the development and 
        implementation of innovative, model programs in a variety of 
        areas.
            ``(7) Congress finds that Native children should be 
        afforded the opportunity to begin their formal education on a 
        par with their non-Native peers. The Federal Government should 
        lend support to efforts developed by and undertaken within the 
        Alaska Native community to improve educational opportunity for 
        all students.

``SEC. 7303. PURPOSES.

    ``The purposes of this part are to--
            ``(1) recognize the unique educational needs of Alaska 
        Natives;
            ``(2) authorize the development of supplemental educational 
        programs to benefit Alaska Natives;
            ``(3) supplement programs and authorities in the area of 
        education to further the objectives of this part; and
            ``(4) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including resources made available under this part, on meeting 
        the educational needs of Alaska Natives.

``SEC. 7304. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make grants to, or enter into contracts with, Alaska Native 
        organizations, educational entities with experience in 
        developing or operating Alaska Native programs or programs of 
        instruction conducted in Alaska Native languages, and consortia 
        of such organizations and entities to carry out programs that 
        meet the purposes of this part.
            ``(2) Permissible activities.--Activities provided through 
        programs carried out under this part may include--
                    ``(A) the development and implementation of plans, 
                methods, and strategies to improve the education of 
                Alaska Natives;
                    ``(B) the development of curricula and educational 
                programs that address the educational needs of Alaska 
                Native students, including--
                            ``(i) curriculum materials that reflect the 
                        cultural diversity or the contributions of 
                        Alaska Natives;
                            ``(ii) instructional programs that make use 
                        of Native Alaskan languages; and
                            ``(iii) networks that introduce successful 
                        programs, materials, and techniques to urban 
                        and rural schools;
                    ``(C) professional development activities for 
                educators, including--
                            ``(i) programs to prepare teachers to 
                        address the cultural diversity and unique needs 
                        of Alaska Native students;
                            ``(ii) in-service programs to improve the 
                        ability of teachers to meet the unique needs of 
                        Alaska Native students; and
                            ``(iii) recruitment and preparation of 
                        teachers who are Alaska Native, reside in 
                        communities with high concentrations of Alaska 
                        Native students, or are likely to succeed as 
                        teachers in isolated, rural communities and 
                        engage in cross-cultural instruction in Alaska;
                    ``(D) the development and operation of home 
                instruction programs for Alaska Native preschool 
                children, the purpose of which is to ensure the active 
                involvement of parents in their children's education 
                from the earliest ages;
                    ``(E) family literacy services;
                    ``(F) the development and operation of student 
                enrichment programs in science and mathematics that--
                            ``(i) are designed to prepare Alaska Native 
                        students from rural areas, who are preparing to 
                        enter secondary school, to excel in science and 
                        math; and
                            ``(ii) provide appropriate support services 
                        to the families of such students that are 
                        needed to enable such students to benefit from 
                        the programs;
                    ``(G) research and data collection activities to 
                determine the educational status and needs of Alaska 
                Native children and adults;
                    ``(H) other research and evaluation activities 
                related to programs carried out under this part; and
                    ``(I) other activities, consistent with the 
                purposes of this part, to meet the educational needs of 
                Alaska Native children and adults.
            ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children carried out under 
        paragraph (2)(D) may include--
                    ``(A) programs for parents and their infants, from 
                the prenatal period of the infant through age 3;
                    ``(B) preschool programs; and
                    ``(C) training, education, and support for parents 
                in such areas as reading readiness, observation, story 
                telling, and critical thinking.
    ``(b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $17,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years.

``SEC. 7305. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
and no contract may be entered into under this part, unless the entity 
seeking the grant or contract submits an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may determine to be necessary to carry out the provisions of 
this part.
    ``(b) Applications.--A State educational agency or local 
educational agency may apply for a grant or contract under this part 
only as part of a consortium involving an Alaska Native organization. 
The consortium may include other eligible applicants.
    ``(c) Consultation Required.--Each applicant for a grant or 
contract under this part shall provide for ongoing advice from and 
consultation with representatives of the Alaska Native community.
    ``(d) Local Educational Agency Coordination.--Each applicant for a 
grant or contract under this part shall inform each local educational 
agency serving students who will participate in the program to be 
carried out under the grant or contract about the application.

``SEC. 7306. DEFINITIONS.

    ``In this part:
            ``(1) Alaska native.--The term `Alaska Native' has the 
        meaning given the term `Native' in section 3(b) of the Alaska 
        Native Claims Settlement Act.
            ``(2) Alaska native organization.--The term `Alaska Native 
        organization' means a federally recognized tribe, consortium of 
        tribes, regional nonprofit Native association, or another 
        organization that--
                    ``(A) has or commits to acquire expertise in the 
                education of Alaska Natives; and
                    ``(B) has Alaska Natives in substantive and 
                policymaking positions within the organization.''.

SEC. 702. CONFORMING AMENDMENTS.

    (a) Higher Education Act of 1965.--Section 317(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
            (1) in paragraph (1), by striking ``section 9308'' and 
        inserting ``section 7306''; and
            (2) in paragraph (3), by striking ``section 9212'' and 
        inserting ``section 7207''.
    (b) Public Law 88-210.--Section 116 of Public Law 88-210 (as added 
by section 1 of Public Law 105-332 (112 Stat. 3076)) is amended by 
striking ``section 9212 of the Native Hawaiian Education Act (20 U.S.C. 
7912)'' and inserting ``section 7207 of the Native Hawaiian Education 
Act''.
    (c) Carl D. Perkins Vocational and Technical Education Act of 
1998.--Section 116(a)(5) of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2326(a)(5)) is amended by 
striking ``section 9212'' and all that follows and inserting ``section 
7207 of the Native Hawaiian Education Act''.
    (d) Museum and Library Services Act.--Section 261 of the Museum and 
Library Services Act (20 U.S.C. 9161) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.
    (e) Act of April 16, 1934.--Section 5 of the Act of April 16, 1934 
(commonly known as the ``Johnson-O'Malley Act'') (88 Stat. 2213; 25 
U.S.C. 456) is amended by striking ``section 9104(c)(4)'' and inserting 
``section 7114(c)(4)''.
    (f) Native American Languages Act.--Section 103 of the Native 
American Languages Act (25 U.S.C. 2902) is amended--
            (1) in paragraph (2), by striking ``section 9161(4) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7881(4))'' and inserting ``section 7161(3) of the Elementary 
        and Secondary Education Act of 1965''; and
            (2) in paragraph (3), by striking ``section 9212(1) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7912(1))'' and inserting ``section 7207 of the Elementary and 
        Secondary Education Act of 1965''.
    (g) Workforce Investment Act of 1998.--Section 166(b)(3) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is amended by 
striking ``paragraphs (1) and (3), respectively, of section 9212 of the 
Native Hawaiian Education Act (20 U.S.C. 7912)'' and inserting 
``section 7207 of the Native Hawaiian Education Act''.
    (h) Assets for Independence Act.--Section 404(11) of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.

                          TITLE VIII--REPEALS

SEC. 801. REPEALS.

    (a) Elementary and Secondary Education Act of 1965.--Titles IX 
through XIV (20 U.S.C. 7801 et seq., 8801 et seq.) are repealed.
    (b) Goals 2000: Educate America Act.--The Goals 2000: Educate 
America Act (20 U.S.C. 5801 et seq.) is repealed.

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. INDEPENDENT EVALUATION.

    The Act (20 U.S.C. 6301 et seq.) (as amended by section 801(a)) is 
amended further by adding at the end the following:

                  ``TITLE IX--MISCELLANEOUS PROVISIONS

                    ``PART A--INDEPENDENT EVALUATION

``SEC. 9101. IN GENERAL.

    ``The Secretary is authorized to award a grant to the Board on 
Testing and Assessment of the National Research Council of the National 
Academy of Sciences to enable the Board to conduct, in consultation 
with the Department (and others that the Board determines appropriate), 
an ongoing evaluation, not to exceed 4 years in duration, of a 
representative sample of State and local educational agencies regarding 
high stakes assessments used by the State and local educational 
agencies. The evaluation shall be based on a research design determined 
by the Board, in consultation with others, that includes existing data, 
and the development of new data as feasible and advisable. The 
evaluation shall address, at a minimum, the 3 components described in 
section 9102.

``SEC. 9102. COMPONENTS EVALUATED.

    ``The 3 components of the evaluation described in section 9101 are 
as follows:
            ``(1) Students, teachers, parents, families, schools, and 
        school districts.--The intended and unintended consequences of 
        the assessments on individual students, teachers, parents, 
        families, schools, and school districts, including--
                    ``(A) overall improvement or decline in what 
                students are learning based on independent measures;
                    ``(B) changes in course offerings, teaching 
                practices, course content, and instructional material;
                    ``(C) measures of teacher satisfaction with the 
                assessments;
                    ``(D) changes in rates of teacher and administrator 
                turnover;
                    ``(E) changes in dropout, grade retention, and 
                graduation rates for students;
                    ``(F) the relationship of student performance on 
                the assessments to school resources, teacher and 
                instructional quality, or such factors as language 
                barriers or construct-irrelevant disabilities;
                    ``(G) changes in the frequency of referrals for 
                enrichment opportunities, remedial measures, and other 
                consequences;
                    ``(H) changes in student post-graduation outcomes, 
                including admission to, and signs of success (such as 
                reduced need for remediation services) at, colleges, 
                community colleges, or technical school training 
                programs;
                    ``(I) cost of preparing for, conducting, and 
                grading the assessments in terms of dollars expended by 
                the school district and time expended by students and 
                teachers;
                    ``(J) changes in funding levels and distribution of 
                instructional and staffing resources for schools based 
                on the results of the assessments;
                    ``(K) purposes for which the assessments or 
                components of the assessments are used beyond what is 
                required under part A of title I, and the consequences 
                for students and teachers because of those uses;
                    ``(L) differences in the areas studied under this 
                section between high poverty and high concentration 
                minority schools and school districts, and schools and 
                school districts with lower rates of poverty and 
                minority students; and
                    ``(M) the level of involvement of parents and 
                families in the development and implementation of the 
                assessments and the extent to which the parents and 
                families are informed of assessment results and 
                consequences.
            ``(2) Students with disabilities.--The intended and 
        unintended consequences of the assessments for students with 
        disabilities, including--
                    ``(A) the overall improvement or decline in 
                academic achievement for students with disabilities;
                    ``(B) the numbers and characteristics of students 
                with disabilities who are excluded from the 
                assessments, and the number and type of modifications 
                and accommodations extended;
                    ``(C) changes in the rate of referral of students 
                to special education;
                    ``(D) changes in attendance patterns and dropout, 
                retention, and graduation rates for students with 
                disabilities;
                    ``(E) changes in rates at which students with 
                disabilities are retained in grade level;
                    ``(F) changes in rates of transfers of students 
                with disabilities to other schools or institutions; and
                    ``(G) the level of involvement of parents and 
                families of students with disabilities in the 
                development and implementation of the assessments and 
                the extent to which the parents and families are 
                informed of assessment results and consequences.
            ``(3) Low socio-economic students, limited English 
        proficient students, and minority students.--The intended and 
        unintended consequences of the assessments for low socio-
        economic status students, limited English proficient students, 
        and racial and ethnic minority students, independently and as 
        compared to middle or high socio-economic status students, 
        nonlimited English proficient students, and white students, 
        including--
                    ``(A) the overall improvement or decline in 
                academic achievement for such students;
                    ``(B) the numbers and characteristics of such 
                students excused from taking the assessments, and the 
                number and type of modifications and accommodations 
                extended to such students;
                    ``(C) changes in the rate of referral of such 
                students to special education;
                    ``(D) changes in attendance patterns and dropout 
                and graduation rates for such students;
                    ``(E) changes in rates at which such students are 
                retained in grade level;
                    ``(F) changes in rates of transfer of such students 
                to other schools or institutions; and
                    ``(G) the level of involvement of parents and 
                families of low socio-economic students, limited 
                English proficient students, and racial and ethnic 
                minority students in the development and implementation 
                of the assessments and the extent to which the parents 
                and families are informed of assessment results and 
                consequences.

``SEC. 9103. REPORTING.

    ``The Secretary shall make public annually the results of the 
evaluation carried out under this part and shall report the findings of 
the evaluation to Congress and to the States not later than 2 months 
after the completion of the evaluation.

``SEC. 9104. DEFINITIONS.

    ``In this part:
            ``(1) High stakes assessment.--The term `high stakes 
        assessment' means a standardized test that is one of the 
        mandated determining factors in making decisions concerning a 
        student's promotion, graduation, or tracking.
            ``(2) Standardized test.--The term `standardized test' 
        means a test that is administered and scored under conditions 
        uniform to all students so that the test scores are comparable 
        across individuals.

``SEC. 9105. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$4,000,000 for fiscal year 2002. Such funds shall remain available 
until expended.''.




                                                        Calendar No. 23

107th CONGRESS

  1st Session

                                  S. 1

                           [Report No. 107-7]

_______________________________________________________________________

                                 A BILL

 To extend programs and activities under the Elementary and Secondary 
                         Education Act of 1965.

_______________________________________________________________________

                             March 28, 2001

                 Read twice and placed on the calendar