[Congressional Record Volume 140, Number 16 (Wednesday, February 23, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                                 H.R. 6

           By Mr. ARMEY:
     --On page 218, line 10, strike subsection 2124(e) in its 
     entirety.
     --On page 735, line 6, insert ``institutional'' after 
     ``nonprofit''.
     --On page 737, line 13, insert ``institutional'' after 
     ``nonprofit''.
     --On page 762, line 9, insert the following new section and 
     redesignate subsequent sections accordingly:

     ``SEC. 9508. GENERAL PROVISION REGARDING NON-RECIPIENT 
                   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 that does not 
     receive funds under the Act. This section shall not be 
     construed to bar private, religious, or home schools from 
     participation in programs or services under the Act.''.
           By Mr. BATEMAN:
     --At the end of Title VIII, add section 6 of the Act of 
     September 30, 1950 (Public Law 874, 81st Congress, 20 U.S.C. 
     section 241). This section shall be designated ``Section 
     8015. Education of children where local agencies cannot 
     support facilities.''
           By Mr. BARRETT of Nebraska:
     --Page 413, strike line 14 and all that follows through line 
     17.
     --Page 413, line 18, strike ``(2)'' and insert ``(1)''.
     --Page 414, line 6, strike ``(3)'' and insert ``(2)''.
     --Page 414, line 12, strike ``(4)'' and insert ``(3)''.
     --Page 414, line 18, strike ``(5)'' and insert ``(4)''.
     --Page 414, line 22, strike ``(6)'' and insert ``(5)''.
     --Page 415, line 1, strike ``(7)'' and insert ``(6)''.
     --Page 416, after line 4, insert the following:
       ``(c) Governor's Funds.--A State's application under this 
     section shall also contain a comprehensive plan for the use 
     of funds under section 4103A by the chief executive officer 
     that includes--
       ``(1) a statement of the chief executive officer's 
     measurable goals and objectives for drug and violence 
     prevention and a description of the procedures to be used for 
     assessing and publicly reporting progress toward meeting 
     those goals and objectives;
       ``(2) a description of how the chief executive officer will 
     coordinate his or her activities under this part with the 
     State educational agency and other State agencies and 
     organizations involved with drug and violence prevention 
     efforts;
       ``(3) a description of how funds reserved under section 
     4103A 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;
       ``(4) a description of how the chief executive officer will 
     award funds under section 4103A and a plan for monitoring the 
     performance of, and providing technical assistance to, 
     recipients of such funds; and
       ``(5) a description of how funds will be used to support 
     community-wide comprehensive drug and violence prevention 
     planning.
     --Page 416, line 24, strike ``the total amount'' and insert 
     ``an amount equal to 80 percent of the total amount''.
     --Page 419, line 14, strike ``(1)''.
     --Page 419, strike line 18 and all that follows through line 
     21.
     --Page 422, after line 21, insert the following:

     ``SEC. 4103A. GOVERNOR'S PROGRAMS.

       ``(a) Use of Funds.--(1) An amount equal to 20 percent of 
     the total amount allocated to a State under section 4101 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) A chief executive officer shall use not less than 10 
     percent of the 20 percent of the total amount described in 
     paragraph (1) for each fiscal year for drug abuse resistance 
     education programs in accordance with subsection (e).
       ``(3) A chief executive officer may use no more than five 
     percent of the 20 percent of the total amount described in 
     paragraph (1) for the administrative costs incurred in 
     carrying out the duties of such officer under this section.
       ``(b) Advisory Panel.--
       ``(1) Establishment.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a chief executive officer shall establish an advisory panel 
     in accordance with this subsection for the purpose of 
     developing a plan for the use of funds reserved under 
     subsection (a)(1).
       ``(B) Exception.--The chief executive officer of a State 
     shall be exempt from the requirement under subparagraph (A) 
     if such State, on or before January 1, 1994, has established 
     an independent agency as described in section 4103(a)(2)(A).
       ``(2) Plan.--The advisory panel established under paragraph 
     (1) shall develop a plan under which--
       ``(A) existing drug and violence prevention programs, 
     projects, and activities in the State (including activities 
     of the State educational agency and local educational 
     agencies and community-based organizations) that are 
     determined by the panel to be successful are continued, or, 
     where appropriate, coordinated with new programs, projects, 
     and activities established and carried out with funds 
     reserved under subsection (a)(1); and
       ``(B) technical assistance and training is provided to 
     local educational agencies, consortia of such agencies, and 
     partnerships consisting of such agencies and community-based 
     organizations, for drug and violence prevention, community 
     outreach, and mobilization and coordination of alcohol, 
     tobacco, and other drug prevention programming.
       ``(3) Meetings.--The advisory panel shall meet at least 
     once every 2 years after the establishment of the plan 
     described in paragraph (2) for the purpose of reviewing and 
     evaluating the use of funds under this section.
       ``(4) Membership.--
       ``(A) In general.--The advisory panel shall consist of not 
     less than 9 members, but not more than 12 members, including 
     the chief executive officer of the State (or the designee of 
     such chief executive officer) and at least 1 individual 
     appointed by such chief executive officer from each of the 
     following categories:
       ``(i) Parents.
       ``(ii) Students.
       ``(iii) Chief state school officers (or their designees).
       ``(iv) School administrators or teachers.
       ``(v) Substance abuse prevention workers or administrators.
       ``(vi) Community-based providers.
       ``(viii) Law enforcement officers or district attorneys.
       ``(ix) Mayors, city councilpersons, or county 
     commissioners.
       ``(B) Political affiliation.--Not more than \1/2\ of the 
     members of the advisory panel may be of the same political 
     party.
       ``(C) Compensation.--Members of the advisory panel shall 
     serve without pay.
       ``(5) Administrative expenses.--The administrative expenses 
     of the advisory panel shall be paid for from the State 
     administrative funds under subsection (a)(2)
       ``(c) Programs Authorized.--(1) A chief executive officer 
     shall use funds reserved under subsection (a)(1) for grants 
     to or contracts with parent groups, community action and job 
     training agencies, community-based organizations, and other 
     public entities and private nonprofit organizations. Such 
     grants or contracts shall support programs and activities 
     described in subsection (d) for children and youth who are 
     not normally served by State or local educational agencies, 
     for populations that need special services or additional 
     resources (such as preschoolers, youth in juvenile detention 
     facilities, runaway or homeless children and youth, and 
     dropouts), or both.
       ``(2) 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 for programs and activities such 
     as--
       ``(1) disseminating information about drug and violence 
     prevention;
       ``(2) training parents, law enforcement officials, judicial 
     officials, social service providers, health service providers 
     and community leaders about drug and violence prevention, 
     education, early intervention, counseling, 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, law 
     enforcement, health, mental health, and other appropriate 
     services;
       ``(4) planning and implementing drug and violence 
     prevention activities that coordinate the efforts of State 
     agencies with those of the State educational agency and its 
     local educational agencies;
       ``(5) activities to protect students traveling to and from 
     school;
       ``(6) developing and implementing strategies to prevent 
     illegal gang activity;
       ``(7) coordinating and conducting community-wide violence 
     and safety assessments and surveys; and
       ``(8) evaluating programs and activities under this 
     section.
       ``(e) Drug Abuse Resistance Education Programs.--(1) A 
     chief executive officer shall use funds reserved under 
     subsection (a)(2) for grants to local educational agencies in 
     consortium with entities which have experience in assisting 
     school districts to provide instruction to students grades 
     kindergarten through 6 to recognize and resist pressures that 
     influence such students to use controlled substances, as 
     defined in Schedules I and II of section 202 of the 
     Controlled Substances Act the possession or distribution of 
     which is unlawful under such Act, or beverage alcohol, such 
     as Project Drug Abuse Resistance Education, that meet the 
     requirements of paragraph (2).
       ``(2) A local educational agency in consortium with an 
     entity shall not be eligible for a grant under paragraph (1) 
     unless such local educational agency in consortium with an 
     entity will use assistance provided under such grant to 
     provide or arrange for the provision of services that shall 
     include--
       ``(A) drug abuse resistance education instruction for 
     students grades kindergarten through 6 that is designed to 
     teach students to recognize and resist pressures to 
     experiment that influence such children to use controlled 
     substances, as defined under paragraph (1), or beverage 
     alcohol, including instruction in the following areas--
       ``(i) drug use and misuse;
       ``(ii) understanding the consequences of drug abuse;
       ``(iii) resistance techniques;
       ``(iv) assertive response styles;
       ``(v) managing stress without taking drugs;
       ``(vi) decisionmaking and risk taking;
       ``(vii) media influences on drug use;
       ``(viii) positive alternatives to drug abuse behavior;
       ``(ix) interpersonal and communication skills;
       ``(x) self-esteem building activities; and
       ``(xi) resistance to peer pressure and gang pressure;
       ``(B) provisions for parental involvement;
       ``(C) classroom instruction by uniformed law enforcement 
     officials;
       ``(D) the use of positive student leaders to influence 
     younger students not to use drugs;
       ``(E) an emphasis on activity-oriented techniques designed 
     to encourage student-generated responses to problem-solving 
     situations; and
       ``(F) the awarding of a certificate of achievement to each 
     student who participates in a drug abuse resistance education 
     program.
       ``(3) Amounts received under paragraph (1) by any local 
     educational agency or entity shall be used only to 
     supplement, not to supplant, the amount of Federal, State, 
     and local funds expended for the support of projects of the 
     type described in paragraph (2).
     --Page 427, line 24, strike ``under this part; and'' and 
     insert ``under this part.''.
     --Page 428, strike line 1 and all that follows through line 
     3.
     --Page 431, strike line 18 and all that follows through line 
     15 on page 433.
     --Page 433, line 16, strike ``(d)'' and insert ``(c)''.
           By Mr. BOEHNER:
     --Page 66, after line 18, insert the following (and 
     redesignate the subsequent sections accordingly):

     ``SEC. 1116. SCHOOL CHOICE.

       ``(a) Choice Programs.--A local education agency may use 
     funds under this part, in combination with other Federal, 
     State, local, and private funds to develop and implement 
     choice programs, for children eligible for assistance under 
     this title, which permit parents to select the public school 
     that their children will attend.
       ``(b) Choice Plan.--A local educational agency that chooses 
     to implement a school choice plan shall first develop a 
     comprehensive plan that includes assurances that--
       ``(1) all eligible students across grade levels will have 
     equal access to the program;
       ``(2) the program does not include schools which follow a 
     racially discriminatory policy;
       ``(3) describe how the school will use resources under this 
     part and from other sources to implement such components;
       ``(4) describe how the school will provide individual 
     student assessment results, including an interpretation of 
     such results, to the parents of a child who participates in 
     the assessment required by section 1111(b)(3);
       ``(5) the plan will be developed with the involvement of 
     the community to be served and individuals who will carry it 
     out, including teachers, principals, and other staff, 
     parents, and, if the plan relates to a secondary school, 
     students from the school;
       ``(6) the plan will be made available to parents and the 
     public; and
       ``(7) the program shall not include schools that do not 
     receive funds under this title.
     --Page 66, after line 18, insert the following (and 
     redesignate the subsequent sections accordingly):

     ``SEC. 1116. SCHOOL CHOICE.

       ``(a) Choice Programs.--A local education agency may use 
     funds under this part, in combination with other Federal, 
     State, local, and private funds to develop and implement 
     choice programs, for children eligible for assistance under 
     this title, which permit parents to select the public school 
     that their children will attend.
       ``(b) Choice Plan.--A local educational agency that chooses 
     to implement a school choice plan shall first develop a 
     comprehensive plan that includes assurances that--
       ``(1) all eligible students across grade levels will have 
     equal access to the program;
       ``(2) the program does not include schools which follow a 
     racially discriminatory policy;
       ``(3) describe how the school will use resources under this 
     part and from other sources to implement such components;
       ``(4) describe how the school will provide individual 
     student assessment results, including an interpretation of 
     such results, to the parents of a child who participates in 
     the assessment required by section 1111(b)(3);
       ``(5) the plan will be developed with the involvement of 
     the community to be served and individuals who will carry it 
     out, including teachers, principals, and other staff, 
     parents, and, if the plan relates to a secondary school, 
     students from the school; and
       ``(6) the plan will be made available to parents and the 
     public.
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     parts accordingly).
           By Mr. CASTLE:
     --Page 112, lines 19 and 20, strike ``150 percent of the 
     national average per pupil payment with funds available'' and 
     insert ``150 percent of the amount that the State would 
     otherwise have received, without application of the State 
     minimum''.
     --Page 114, lines 16 and 17, strike ``150 percent of the 
     national average per pupil payment made with funds 
     available'' and insert ``150 percent of the amount that the 
     State would otherwise have received, without application of 
     the State minimum''.
           By Mr. CONDIT:
     --Page 39, after line 12, insert the following new paragraph 
     (and redesignate accordingly):
       ``(g) Notwithstanding any other provision of this Act, the 
     provisions of the model opportunity-to-learn standards that 
     impose requirements on States, local education agencies, and 
     schools (whether it be the actual development of the 
     opportunity-to-learn standards or actions taken to meet the 
     standards) shall be treated as recommendations to the States, 
     local education agencies, and schools and compliance with 
     such provisions shall be voluntary on the part of the States, 
     local education agencies, and schools until the costs of 
     implementing such provisions are fully funded by the Federal 
     Government.''
     --Page 762, after line 8, insert the following new section 
     (and redesignate accordingly):

     ``SEC. 9508. PROVISIONS TO BE TREATED AS VOLUNTARY UNTIL 
                   FULLY FUNDED.

       ``Notwithstanding any other provision of this Act, the 
     provisions relating to opportunity-to-learn standards that 
     impose requirements on States and local educational agencies 
     (whether the development of opportunity-to-learn standards or 
     actions taken to meet such standards) shall be treated as 
     recommendations to the States and local educational agencies 
     and compliance with such provisions shall be voluntary on the 
     part of the State and local educational agencies until the 
     costs of implementing such provisions are fully funded by the 
     Federal Government.''
           By Mr. COX:
     --After section 9507, insert the following new section and 
     redesignate subsequent sections accordingly:
       ``Sec. 9508. Nothing in this act shall be construed to 
     infringe upon the right of a parent to teach his or her 
     child.''
           By Mr. CUNNINGHAM:
     --In Title VIII:
       On page 729 strike ``Section 8014, lines 15-24''
     --On page 730 strike ``lines 1-21''.
           By Mr. DOOLEY:
     ``On page 55, line 22, redesignate paragraph (G) as paragraph 
     (H) and insert a new paragraph (G) to read as follows:
       ``(G) Strategies to ensure that the health and welfare 
     needs of children from migratory families are addressed.
     --On page 55, line 1, insert after ``students'', ``and 
     children from migratory families''.
     --On page 59, line 14, insert a new paragraph (4) to read as 
     follows:
       ``(4) The Secretary shall report no later than December 31, 
     1997 to the House Committee on Education and Labor and the 
     Senate Committee on Labor and Human Resources on how 
     schoolwide programs are meeting the needs of children from 
     migratory families.''
           By Mr. DUNCAN:
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. PROHIBITION AGAINST FUNDS FOR PROTECTED PRAYER.

       ``Notwithstanding any provision of law, no funds made 
     available through the Department of Education under this Act, 
     or any other Act, shall be available to any State or local 
     educational agency which has a policy of denying or which 
     effectively prevents participation in, constitutionally 
     protected prayer in public schools by individuals on a 
     voluntary basis. Neither the United States nor any State nor 
     any local educational agency shall require any person to 
     participate in prayer or influence the form or content of any 
     constitutionally protected prayer in such public schools.''.
           By Mr. DURBIN:
     --Page 439, strike paragraph (1) and insert the following:
       ``(1) 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, the use of tobacco and the use 
     of controlled, illegal, addictive, or harmful substances, 
     including inhalants and anabolic steroids; and
       ``(B) 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, 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.
     --Page 408, after line 12, insert the following paragraph 
     (and redesignated succeeding paragraphs accordingly):
       ``(6) Every day approximately 3,000 children start smoking 
     for the first time and 30 percent of all high school seniors 
     are smokers. Half of all new smokers begin before the age of 
     14, 90 percent before the age of 21, and the average age of 
     the first use of smokeless tobacco products is under the age 
     of 10. Use of tobacco products has been linked to serious 
     health problems. However, because the nicotine in tobacco is 
     an addictive substance, many tobacco users find it difficult 
     to stop using tobacco once they have started. Drug education 
     and prevention programs that include tobacco have been 
     effective in reducing teenage use of tobacco. Drug prevention 
     programs for youth that address only controlled drugs send an 
     erroneous message that the use of tobacco does not have 
     adverse consequences. To be credible, messages opposing 
     illegal drug use by youth should also address other harmful 
     substances.
     --Page 439, strike subsection (1), and insert the following:
       ``(1) 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, the use of tobacco and the use 
     of controlled, illegal, addictive, or harmful substances, 
     including inhalants and anabolic steroids; and
       ``(B) 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, 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.
           By Mr. ENGEL:
     --Title III, Part E, section 3502:

     ``SEC. 3502. SHORT TITLE.

       ``This part may be cited as the Community Arts Partnership 
     Act of 1994''.
       (a) Findings.
       ``Congress finds that--
       ``(1) with local school budgets cut there are inadequate 
     arts programs available for children and youth in schools;
       ``(2) the arts promote progress in academic subjects as 
     shown by research conducted by the National Endowment for the 
     Arts;
       ``(3) the arts access multiple human intelligences and 
     develop higher-order thinking skills;
       ``(4) the arts generate self-esteem and positive emotional 
     responses to learning; and
       ``(5) children and youth who receive instruction in the art 
     remain in school longer and are more successful than children 
     who do not receive such instruction.
       (b) Purpose.
       ``The purpose of this part is to make demonstration grants 
     to eligible entities to improve the educational performance 
     and future potential of at risk-children and youth by 
     providing comprehensive and coordinated educational and 
     cultural services.
       (c) Grants Authorized.
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible entities to pay the Federal share of the 
     costs of the activities described in subsection (f).
       ``(2) Special requirements.--The Secretary shall award 
     grants under this Act only to program designed to--
       ``(A) promote educational and cultural services;
       ``(B) provide multi-year services to at-risk children and 
     youth;
       ``(C) serve the target population described in subsection 
     (e);
       ``(D) provide integration of community cultural resources 
     in the regular curriculum;
       ``(E) focus school and cultural resources in the community 
     on coordinated cultural services to address the needs of at-
     risk children and youth;
       ``(F) provide effective cultural linkages from preschool 
     programs, including the Head Start Act and preschool grants 
     under the Individuals with Disabilities Education Act, to 
     elementary schools;
       ``(G) facilities school-to-work transition from secondary 
     schools and alternative schools to job training, higher 
     education, and employment;
       ``(H) increase parental and community involvement in the 
     educational, social, and cultural development of at-risk 
     children and youth; or
       ``(I) replicate programs and strategies that provide high 
     quality coordinated educational and cultural services and 
     that are designed to integrate such coordination into the 
     regular curriculum.
       ``(3) Requirement of coordination.--Grants may only be 
     awarded under this part to eligible entities that agree to 
     coordinate activities carried out under other Federal, State, 
     and local grants, received by the members of the partnership 
     for purposes and target populations described in this part, 
     into an integrated service delivery system located at a 
     school, cultural, or other community-based site accessible to 
     and utilized by at-risk youth.
       ``(4) Duration.--Grants made under this part may be 
     renewable for a maximum of 5 years if the Secretary 
     determines that the eligible recipient has made satisfactory 
     progress toward the achievement of the program objectives 
     described in application.
       ``(5) Geographic distribution.--In awarding grants under 
     this part, the Secretary shall ensure--
       ``(A) an equitable geographic distribution; and
       ``(B) an equitable distribution to both urban and rural 
     areas with a high proportion of at-risk children and youth as 
     defined in subsection (e).
       (d) Eligibility.
       ``(1) Services for in-school youth.--For the purpose of 
     providing a grant under this part to serve in-school children 
     and youth, the term ``eligible entity'' means a partnership 
     between a local education agency that is eligible for funds 
     under title I of this Act, and at least 1 institution of 
     higher education or cultural entity located within or 
     accessible to the geographical boundaries of the local 
     education agency with a history of providing quality services 
     to the community, and which may include--
       ``(A) nonprofit institutions of higher education; museums; 
     libraries; performing, presenting and exhibiting arts 
     organizations; literary arts organizations; local arts 
     organizations; and zoological and botanical organizations; 
     and
       ``(B) private for-profit entities with a history of 
     training children and youth in the arts.
       ``(2) Services for out-of-school youth.--For purposes of 
     providing a grant under this part to serve out-of-school 
     youth, the term `eligible entity' means a partnership between 
     at least 1 entity of the type described in paragraph (A) and 
     (B) of subsection (1), or a local education agency eligible 
     for funds under chapter 1 of title I of this Act and at least 
     1 cultural entity described in subsection (1).
       (e) Target Population.
       ``In order to receive a grant under this part, an eligible 
     entity shall serve--
       ``(1) students enrolled in schools in participating 
     schoolwide projects assisted under title I of this Act and 
     the families of such students; or
       ``(2) out-of-school youth at risk of having limited future 
     options as a result of teenage pregnancy and parenting, 
     substance abuse, recent migration, disability, limited 
     English proficiency, family migration, illiteracy, being the 
     child of a teen parent, living in a single parent household, 
     or being a high school dropout; or
       ``(3) any combination of in-school and out-of-school at-
     risk children and youth.
       (f) Authorized Activities.
       ``(1) In general.--Funds made under this part may be used--
       ``(A) to plan, develop, acquire, expand, and improve 
     school-based or community-based coordinated educational and 
     cultural programs to strengthen the educational performance 
     and future potential of in-school and out-of-school at-risk 
     youth through cooperative agreements, contracts for services, 
     or administrative coordination;
       ``(B) to provide at-risk students with integrated cultural 
     activities designed to develop a love of learning to ensure 
     the smooth transition of preschool children to elementary 
     school;
       ``(C) to design collaborative cultural activities for 
     students in secondary or alternative schools that ensure the 
     smooth transition to job training, higher education, or full 
     employment;
       ``(D) to provide child care for children of at-risk 
     students who would not otherwise be able to participate in 
     the program;
       ``(E) to provide transportation necessary for participation 
     in the program;
       ``(F) to work with existing school personnel to develop 
     curriculum materials and programs in the arts;
       ``(G) to work with existing school personnel on staff 
     development activities that encourage the integration of the 
     arts into the curriculum;
       ``(H) for stipends that allow local artists to work with 
     at-risk children and youth in the schools;
       ``(I) for cultural programs that encourage the active 
     participation of parents in their children's education;
       ``(J) for programs that use the art reform current school 
     practices, including lengthening the school day or academic 
     year;
       ``(K) for appropriate equipment and necessary supplies; and
       ``(L) for evaluation, administration, and supervision.
       ``(2) Priority.--In providing assistance under this part, 
     the Secretary shall give priority to eligible entities that 
     provide comprehensive services that extend beyond traditional 
     school or service hour, that may include year round programs 
     that provide services in the evenings and weekends.
       ``(3) Planning grants.--
       ``(A) Application.--An eligible entity may submit an 
     application to the Secretary for a planning grants for an 
     amount not to exceed $50,000. Such grants shall be for 
     periods of not more than 1 year.
       ``(B) Limit on planning grants.--Not more than 10 percent 
     of the amounts appropriated in each fiscal year under this 
     part shall be used for grants under this subsection, and an 
     eligible entity may receive not more than 1 such planning 
     grant.
       (g) General Provisions.
       ``(1) In general.--Each eligible entity desiring a grants 
     under this part 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) Contents.--Each application submitted pursuant to 
     subsection (a) shall--
       ``(A) describe the cultural entity or entities that will 
     participate in the partnership;
       ``(B) describe the target population to be served;
       ``(C) describe the services to be provided;
       ``(D) describe a plan for evaluating the success of the 
     program;
       ``(E) describe, for a local educational agency participant, 
     how services will be perpetuated beyond the length of the 
     grant;
       ``(F) describe the manner in which the eligible entity will 
     improve the educational achievement or future potential of 
     at-risk youth through more effective coordination of cultural 
     services in the community;
       ``(G) describe the overall and operational goals of the 
     program; and
       ``(H) describe the nature and location of all planned sites 
     where services will be delivered and a description of 
     services which will be provided at each site.
       (h) Payments--Federal Share.
       ``(1) Payments.--The Secretary shall pay to each eligible 
     entity having an application approved under subsection (g) 
     the Federal share of the cost of the activities described in 
     the application.
       ``(2) Amounts of grants.--The amount of a grant made under 
     this part may not be less than $100,000 or exceed $500,000 in 
     the first year of such grant.
       ``(3) Federal share.--The Federal share shall be 80 
     percent.
       ``(4) Non-federal share.--The non-Federal share shall be 
     equal to 20 percent and may be in cash or in kind, fairly 
     evaluated, including facilities or services.
       ``(5) Limitation.--Not more than 25 percent of any grant 
     under this part may be used for noninstructional services 
     such as those described in paragraphs D, E, and L of 
     subsection (f).
       ``(6) Supplement and not supplant.--Grant funds awarded 
     under this part shall be used to supplement not supplant the 
     amount of funds made available from non-Federal sources, for 
     the activities assisted under this part, in amounts that 
     exceed the amounts expended for such activities in the year 
     preceding the year for which the grant is awarded.
       ``(7) Dissemination of models.--The Secretary shall 
     disseminate information concerning successful models under 
     this part through the National Diffusion Network.
       (i) Authorization of Funds.
       ``There are authorized to be appropriated to carry out this 
     subpart, $75,000,000 for fiscal year 1995 and such sums as 
     may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.
           By Mr. FARR:
     --Title III
       Insert new Part   .

     SEC.   . SHORT TITLE.

       This part may be cited as the ``National Center for Second 
     Language Development Act.''

     SEC.   . FINDINGS.

       The Congress finds that:
       1. At a time when international opportunities and 
     challenges are escalating, there exists no national education 
     effort to develop second language capabilities in the United 
     States.
       2.1. In the present international economic context, it is 
     critical for Americans to become skilled speakers of other 
     languages.
       2. There is a widespread recognition of this need, but 
     little awareness of important advances in the technology of 
     language instruction and in our understanding of the 
     processes involved in acquiring a second language.
       3. These technological and conceptual advances need to be 
     incorporated in language instruction and in the professional 
     development of language teachers.
       4. The technological and conceptual advances currently in 
     use and being developed in the second language arena can 
     improve our ability to instruct the millions of immigrant 
     school children and adults who have limited proficiency in 
     English. Without fluency in the English language these 
     individuals remain an untapped national resource.
       5. The concentration of talent focused on research on 
     second language acquisition, language instruction, teaching 
     technology, and curriculum development and publications 
     housed at the Defense Language Institute (DLI--a teaching 
     facility of the Department of Defense, located in Monterey, 
     California), provides an optimal environment for the 
     incipient development of a nationwide effort in second 
     language training and acquisition.

     SEC.   . PURPOSE.

       It is the purpose of this part to--
       1. implement advances in research and technology in the 
     language education of children, college students, and adults 
     and in the professional development of language instructors.

     SEC.   . NATIONAL CENTER FOR SECOND LANGUAGE DEVELOPMENT.

       a. Establishment. In order to better effectuate the 
     purposes of this part through assistance in the coordination 
     of services and programs provided for under this part, the 
     Secretary shall establish a National Center for Second 
     Language Development.
       b. Composition. The Center shall consist of, but not be 
     limited to:
       1. The Defense Language Institute.
       2. Other public, government and private entities with 
     expertise in the education and training of second language 
     curricula, as determined necessary by the Secretary.
       c. Mission. The Center shall:
       1. Study the current potential for second language 
     capabilities of the population of the United States;
       2. Make recommendations to the Secretary from that study 
     the most appropriate means of increasing widespread second 
     language capabilities in the United States;
       3. Implement pilot programs to effectuate a greater second 
     language capability within the United States.
           By Mr. FISH:
     --Page   , after line (at the end of section 8003), insert 
     the following:
       ``(e) Additional Assistance for Heavily Impacted Local 
     Educational Agencies.--
       ``(1) In general.--From amounts appropriated under section 
     8013(a)(2) for a fiscal year, the Secretary shall provide 
     additional assistance under this subsection to local 
     educational agencies that are heavily impacted because of 
     Federal acquisition of real property in such local 
     educational agencies.
       ``(2) Eligibility.--A local educational agency shall be 
     eligible to receive assistance under this subsection only if 
     Federal property in such agency comprised 25 percent or more 
     of the total land area within such agency during the 
     preceding fiscal year.
       ``(3) Maximum amount.--The amount that a local educational 
     agency may receive under this subsection for a fiscal year 
     may not exceed the difference of--
       ``(A) the amount such agency is entitled to receive under 
     subsection (b) for such fiscal year; and
       ``(B) the amount such agency actually receives under such 
     subsection for such fiscal year.
     --Page   , strike line and all that follows through line 
     (subsection (a) of section 8013) and insert the following:
       ``(a) Payments for Federal Acquisition of Real Property.--
       ``(1) In general.--For the purpose of making payments under 
     section 8003 (except subsection (e) of such section), there 
     are authorized to be appropriated $16,750,000 for fiscal year 
     1995 and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.
       ``(2) Payments for heavily impacted local educational 
     agencies.--For the purpose of making payments under section 
     8003(e), there are authorized to be appropriated such sums as 
     may be necessary for each of the fiscal years 1995, 1996, 
     1997, 1998, and 1999.
           By Mr. FORD of Michigan:
     --Page 218, strike lines 10 through 18.
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. APPLICABILITY TO HOME SCHOOLS.

       ``Nothing contained in this Act shall be construed to 
     affect home schools.''
           By Mr. GILMAN:
     --Page 193, line 15, strike ``and''.
     --Page 193, after line 15, insert the following:
       ``(iii) have established or plan to establish a mentoring 
     program for elementary students formerly enrolled in Head 
     Start of Even Start programs using high school or college 
     students trained to provide tutoring to such elementary 
     students, and''.
           By Mr. GLICKMAN:
     --Page 218, strike lines 10 through 18.
           By Mr. GOODLING:
     --Beginning on page 28, strike the semicolon on line 10 and 
     all that follows through page 30, line 2, and insert a 
     period.
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 38, beginning on line 14, strike ``, provided'' and 
     all that follows through ``section'' on line 18 and insert a 
     period.
     --Page 39, strike lines 13 through 17 (and redesignate any 
     subsequent subsections accordingly).
     --Page 42, line 18, strike ``; and'' and insert a period.
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 75, line 12, strike ``and opportunity-to-learn 
     standards''.
     --Page 85, line 7, strike ``opportunity-to-learn standards''.
     --Page 91, beginning on line 19, strike ``and opportunity-to-
     learn standards''.
     --Page 328, beginning on line 11, strike ``and opportunity-
     to-learn standards''.
     --Beginning on page 28, strike the semicolon on line 10 and 
     all that follows through page 30, line 2, and insert a 
     period.
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 38, beginning on line 14, strike ``, provided'' and 
     all that follows through ``section'' on line 18 and insert a 
     period.
     --Page 39, strike lines 13 through 17 (and redesignate any 
     subsequent subsections accordingly).
     --Page 42, line 18, strike ``; and'' and insert a period.
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 69, line 3, strike ``and''.
     --Page 69, after line 3, insert the following (and 
     redesignate any subsequent clauses accordingly):
       ``(ii) using only funds allocated under subsection (e), 
     identify strategies to ensure that children participating in 
     programs funded under this section are provided with an 
     opportunity to learn, including strategies which may 
     address--
       ``(I) the quality and availability of curricula, 
     instructional materials, and technologies;
       ``(II) the capability of teachers to provide high quality 
     instruction;
       ``(III) the extent to which teachers, principals, and 
     administrators have access to professional development;
       ``(IV) the extent to which school facilities provide a safe 
     and secure environment for learning and instruction;
       ``(V) the capability of schools to comply with the 
     requirements of section 1112(c)(3) with respect to addressing 
     the comprehensive needs of children and the requirements of 
     section 1114(b) or section 1115(c), whichever is applicable; 
     and
       ``(VI) such other factors as the State deems appropriate to 
     ensure that all children participating in programs funded 
     under this section receive an opportunity to achieve the 
     knowledge and skills in order to meet the State's performance 
     standards; and,''
     --Page 69, after line 5, insert the following (and 
     redesignate any subsequent subparagraphs accordingly):
       ``(B) The strategies referred to in subparagraph (3)(A) 
     shall be used only as guidelines for a school to improve the 
     performance of children participating in programs funded 
     under this section in meeting the State's performance 
     standards.
       ``(C) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
       ``(D) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
       ``(E) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.''
     --Page 69, at the end of line 13, insert ``The school shall 
     use only funds allocated under subsection (e) to carry out 
     this subparagraph.''
     --Page 70, at the end of line 3 insert the following: 
     ``Federal technical assistance centers under part D of title 
     II shall give priority to schools identified under paragraph 
     (1) who request technical assistance in order to improve 
     student achievement.''
     --Page 72, line 21, insert the following (and redesignate any 
     subsequent paragraphs accordingly):
       ``(5) Each local educational agency identified under 
     paragraph (3) shall establish a strategy for developing or 
     adopting opportunity-to-learn standards that have the 
     greatest likelihood of improving the performance of its 
     schools in meeting the State's performance standards. Such 
     standards may include those referred to in subsection 
     (c)(3)(A)(ii). Such strategy shall be used only as a 
     guideline for schools and local educational agencies to 
     improve their performance in meeting the performance 
     standards of the State. The local educational agency shall 
     use only funds appropriated under subsection (e) to carry out 
     this paragraph.
       ``(6) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
       ``(7) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
       ``(8) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.''
     --Page 73, at the end of line 15 insert the following: 
     ``Federal technical assistance centers under part D of title 
     II shall give priority to local educational agencies 
     identified under paragraph (3) who request technical 
     assistance in order to improve student achievement.''
     --Page 75, line 12, strike ``and opportunity-to-learn 
     standards''.
     --Page 85, line 7, strike ``opportunity-to-learn standards''.
     --Page 91, beginning on line 19, strike ``and opportunity-to-
     learn standards''.
     --Page 328, beginning on line 11, strike ``and opportunity-
     to-learn standards''.
     --Beginning on page 28, strike the semicolon on line 10 and 
     all that follows through page 30, line 2, and insert a 
     period.
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 38, beginning on line 14, strike ``, provided'' and 
     all that follows through ``section'' on line 18 and insert a 
     period.
     --Page 39, strike lines 13 through 17 (and redesignate any 
     subsequent subsections accordingly).
     --Page 42, line 18, strike ``; and'' and insert a period.
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 69, line 3, strike ``and''.
     --Page 69, after line 3, insert the following (and 
     redesignate any subsequent clauses accordingly):
       ``(ii) using only funds allocated under subsection (e), 
     identify strategies to ensure that children participating in 
     programs funded under this section are provided with an 
     opportunity to learn with such strategies used only as 
     guidelines for a school to improve the performance of 
     children participating in programs funded under this section 
     in meeting the performance standards of the State; and
     --Page 69, after line 13, insert the following (and 
     redesignate the subsequent subparagraph accordingly):
       ``(C) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
       ``(D) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
       ``(E) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.
     --Page 70, at the end of line 3 insert the following: 
     ``Federal technical assistance centers under part D of title 
     II shall give priority to schools identified under paragraph 
     (1) who request technical assistance in order to improve 
     student achievement.''.
     --Page 72, line 21, insert the following (and redesignate any 
     subsequent paragraphs accordingly):
       ``(5) Each local educational agency identified under 
     paragraph (3) shall establish a strategy for developing or 
     adopting opportunity-to-learn standards that have the 
     greatest likelihood of improving the performance of its 
     schools in meeting the State's performance standards. Such 
     strategy shall be used only as a guideline for schools and 
     local educational agencies to improve their performance in 
     meeting the performance standards of the State. The local 
     educational agency shall use only funds appropriated under 
     subsection (e) to carry out this paragraph.
       ``(6) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
       ``(7) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
       ``(8) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.
     --Page 73, at the end of line 15 insert the following: 
     ``Federal technical assistance centers under part D of title 
     II shall give priority to local educational agencies 
     identified under paragraph (3) who request technical 
     assistance in order to improve student achievement.''.
     --Page 75, line 12, strike ``and opportunity-to-learn 
     standards''.
     --Page 85, line 7, strike ``opportunity-to-learn standards''.
     --Page 91, beginning on line 19, strike ``and opportunity-to-
     learn standards''.
     --Page 328, beginning on line 11, strike ``and opportunity-
     to-learn standards''.
     --Beginning on page 28, strike the semicolon on line 10 and 
     all that follows through page 30, line 2, and insert a 
     period.
     --Page 28, after line 11, insert the following:
       ``(iii) opportunity-to-learn standards that are consistent 
     with standards established under title III of the Goals 2000: 
     Educate America Act, except that--
       ``(I) the Secretary may not withhold funds appropriated 
     under this title on the basis of the content of the 
     opportunity to learn standards adopted by the State or 
     promulgate regulations with regard to such standards;
       ``(II) a State may waive such requirement if it has met the 
     opportunity-to-learn standards established by title III of 
     the Goals 2000: Educate America Act.
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 38, beginning on line 14, strike ``, provided'' and 
     all that follows through ``section'' on line 18 and insert a 
     period.
     --Page 39, after line 17, insert the following (and 
     redesignate any subsequent subsections accordingly):
     --``(h) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
     --``(i) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
     --``(j) Nothing in this section shall be construed to mandate 
     national standards for school buildings for a State, local 
     educational agency, or school.
     --Page 42, line 18, strike ``; and'' and insert a period.
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 75, line 12, strike ``and opportunity-to-learn 
     standards''.
     --Page 85, line 7, strike ``opportunity-to-learn standards''.
     --Page 91, beginning on line 19, strike ``and opportunity-to-
     learn standards''.
     --Page 328, beginning on line 11, strike ``and opportunity-
     to-learn standards''.
     --Beginning on page 28, strike the semicolon on line 10 and 
     all that follows through page 30, line 2 and insert a period.
     --Page 28, after line 11 insert the following:
       (iii) strategies for providing all students with an 
     opportunity to learn.
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 38, beginning on line 16, strike ``specific'' and all 
     that follows through line 18.
     --Page 38, beginning on line 16, after the first ``the''; 
     insert, ``opportunity to learn strategies developed or 
     adopted by a State under this section.''
     --Page 39, beginning on line 16, strike ``or'' and all the 
     follows through line 17.
     --Page 39, beginning on line 15, after ``agency'' insert, 
     ``or school's opportunity to learn strategies as a condition 
     of eligibility to receive funds under this title.''
     --Page 39, after line 17, insert the following (an 
     redesignate any subsequent subsection accordingly):
       ``(h) Nothing in this section shall be construed to create 
     a legally enforceable right for any person against a State, 
     local educational agency, or school based on voluntary 
     opportunity to learn standards.
       ``(i) Nothing in this section shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency or school.
       ``(j) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.
     --Page 42, strike lines 19 through 22.
     --Page 42, after line 18, insert the following:
       (4) a description of the strategies a local educational 
     agency will use to ensure that all students have an 
     opportunity to learn.
     --On page 67, strike lines 7 through 9 (and redesignate any 
     subsequent paragraphs accordingly).
     --On page 75, line 12, strike ``and opportunity to learn 
     standards''.
     --On page 85, line 7, strike ``opportunity to learn 
     standards''.
     --On page 91, line 19, strike ``and opportunity to learn 
     standards''.
     --On page 328, line 11-12, strike ``and opportunity to learn 
     standards''.
     --Beginning on page 28, strike line 12 and all that follows 
     through page 30, line 2.
     --Page 28, after line 11, insert the following:
       ``(iii) model opportunity to learn standards for schools 
     which receive assistance under this title that address--
       ``(I) the alignment of curricula, instructional media, and 
     other school resources with the content and performance 
     standards adopted by the State;
       ``(II) the capability of teachers to provide high quality 
     instruction within each subject area for which the State has 
     adopted content and performance standards;
       ``(III) such other factors that the State deems appropriate 
     to ensure that students served under this title receive a 
     fair opportunity to achieve the knowledge and skills 
     described in content and performance standards adopted by the 
     State.''
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly.)
     --Page 39, after line 12, insert the following new paragraph 
     (and redesignate accordingly):
       ``(g) Notwithstanding any other provision of this Act, the 
     provisions of the model opportunity to learn standards that 
     impose requirements on States, local education agencies, and 
     schools (whether it be the actual development of the 
     standards or actions taken to meet the standards) shall be 
     treated as recommendations to the States, local educational 
     agencies, and schools and compliance with such provisions 
     shall be voluntary on the part of the States, local education 
     agencies, and schools until the costs of implementing such 
     provisions are fully funded by the Federal government.''
     --Page 39, after line 17, insert the following new paragraphs 
     (and redesignate accordingly):
       ``(i) Nothing in this section shall be construed to create 
     a legally enforceable right for any person against a State, 
     local educational agency, or school based on opportunity to 
     learn standards.
       ``(j) Nothing in this section shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency or school
       ``(k) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9.
     --Page 75, line 12, strike ``and opportunity to learn 
     standards''.
     --Page 85, line 7, strike ``opportunity to learn standards''.
     --Page 91, line 19, strike ``and opportunity to learn 
     standards''.
     --Page 328, line 11-12, strike ``and opportunity to learn 
     standards''.
     --Page 39, after line 17, insert the following (and 
     redesignate any subsequent subsections accordingly):
       ``(h) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
     --Page 39, after line 17, insert the following (and 
     redesignate any subsequent subsections accordingly):
       ``(h) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
     --Page 39, after line 17, insert the following (and 
     redesignate any subsequent subsections accordingly):
       ``(h) Nothing in this section regarding opportunity-to-
     learn standards shall be construed to create a legally 
     enforceable right for any person against a State, local 
     educational agency, or school.
       ``(i) Nothing in this section shall be construed to mandate 
     equalized per pupil spending for a State, local educational 
     agency, or school.
       ``(j) Nothing in this section shall be construed to mandate 
     national standards for school buildings for a State, local 
     educational agency, or school.
     --Page 39, after line 17, insert the following (and 
     redesignate any subsequent subsections accordingly):
       ``(h) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.
     --Page 657, after line 15, add the following section:
       ``(1) Exception.--States which do not, as of the date of 
     enactment of this Act, have in place a system for collecting 
     such data for all students in such State, are not required to 
     meet the requirement of this section as it pertains to the 
     educational programs and services available to limited 
     English proficient students. In the event such State develops 
     a system for collecting data on the educational programs and 
     services available to all students in the State, then such 
     State is required to comply with this requirement.
           By Mr. GUNDERSON:
     --Page 82, strike lines 1 through 4.
     --Page 127, after line 21 insert:

                ``Subpart 3--Presidential Awards Program

     ``SEC. 1131. PRESIDENTIAL AWARDS PROGRAM.

       ``(a) Development.--The Secretary shall, in consultation 
     with the chairpersons and ranking minority members of the 
     Committee on Education and Labor for the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate and educational leaders, develop a 
     Presidential awards program that will recognize and provide a 
     cash award to schools that excel in educating their students 
     to high levels as defined by the National Education Goals and 
     the standards certified by the National Education Standards 
     and Improvement Council established under the Goals 2000: 
     Educate America Act.
       ``(b) Nominations.--Schools recognized under this program 
     will be selected by the Secretary from a list of nominees. 
     Each State shall select a nominee to be submitted to the 
     Secretary from among schools designated as distinguished 
     schools under section 1119.
       ``(c) Selection.--The Secretary shall annually convene a 
     panel of experts who will review nominated schools and select 
     those who will receive awards. In addition to Presidential 
     recognition, selected schools will receive a cash award which 
     may be applied without restriction to enhance the educational 
     programs in those schools or to provide cash awards to 
     personnel in the school.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart such 
     sums as may be necessary for each of fiscal years 1995, 1996, 
     1997, 1998, and 1999.
     --Page 311, on line 20, strike Part E--Education Program 
     Strategies and insert the following:

            Part E--21st Century Community Learning Centers

     SEC. 2401. FINDINGS.

       The Congress finds that--
       (1) a local public school often serves as a center for the 
     delivery of education and human resources for all members of 
     a community;
       (2) public schools, primarily in rural and inner city 
     communities, should collaborate with other public and non 
     profit agencies and organizations, local businesses, 
     educational entities (such as vocational and adult education 
     programs, school to work programs, community colleges, and 
     universities), recreational, cultural, and other community 
     and human service entities for the purpose of meeting the 
     needs and expanding the opportunities available to the 
     residents of the communities served by such schools;
       (3) by using school facilities, equipment, and resources, 
     communities can promote a more efficient use of public 
     education facilities, especially in rural and inner city 
     areas where limited financial resources have enhanced the 
     necessity for local public schools to become social service 
     centers;

     SEC. 2402. PROGRAM AUTHORIZATION AND DISTRIBUTION.

       (a) Grants by the Secretary.--The Secretary is authorized 
     in accordance with the provisions of this subsection to make 
     grants to rural and inner city schools or consortia thereof 
     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.
       (1) No school or consortia thereof shall receive a grant 
     award of less than $50,000 in each fiscal year; and
       (2) such grant projects do not exceed a 3-year period.
       (b) Application.--To be eligible to receive funds under 
     this section, a school or consortia thereof shall submit an 
     application to the Secretary of Education at such time and in 
     such manner as the Secretary may reasonably prescribe, that 
     shall include--
       (1) a comprehensive local plan that enables such school to 
     serve as a center for the delivery of education and human 
     resources for members of a community; and
       (2) an initial evaluation of needs, available resources, 
     and goals and objectives for the proposed community education 
     program to determine programs that will be developed to 
     address these needs:
       (A) A mechanism 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 of coordinated so that public resources may be 
     maximized.
       (C) A description of the collaborative efforts of 
     community-based organizations, related public agencies, 
     businesses, or other appropriate organizations.
       (D) A description of how the school will assist as a 
     delivery center for existing and new services, especially 
     inter-active telecommunications used for education and 
     professional training.
       (E) The establishment of a facility utilization policy that 
     specifically states rules and regulations for building and 
     equipment use and supervision guidelines.
       (4) the high technology, global economy of the 21st century 
     will require lifelong learning to keep America's workforce 
     competitive and successful, local public schools should 
     provide centers for lifelong learning and educational 
     opportunities for individuals of all ages; and
       (5) 21st Century Community Learning Centers enable the 
     entire community to develop an education strategy that 
     addresses the educational needs of all members of local 
     communities.
       (c) Priority.--The Secretary shall give priority to 
     applications that offer a broad selection of services that 
     address the needs of the community.

     SEC. 2403. USES OF FUNDS.

       (a) Authorized Programs.--Grants awarded under this section 
     may be used to plan, implement, or expand community learning 
     centers which shall 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 in conjunction with 
     recreation programs.
       (6) Nutrition, health, and/or physical therapy.
       (7) Expanded library service hours to serve community 
     needs.
       (8) Telecommunications and technology education programs 
     for all ages.
       (9) Parenting skills education programs.
       (10) Support and training for child day care providers.
       (11) Employment counseling, training, and placement.
       (12) Services for students who withdraw from school before 
     graduating high school, regardless of age.
       (13) Services for individuals who are either physically or 
     mentally challenged.

     SEC. 2404. AWARD OF GRANTS.

       (a) In General.--In approving grants under this section, 
     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.
       (b) Grant Period.--Grants may be awarded for a period not 
     to exceed 3 years.

     SEC. 2405. DEFINITIONS.

       (1) the term ``Community Learning Center'' means the 
     provision of educational, recreational, health, and social 
     service programs for residents of all ages of a local 
     community in public school buildings, primarily in rural and 
     inner city areas, operated by the local educational agency in 
     conjunction with local governmental agencies, businesses, 
     vocational education programs, community colleges, 
     universities, and cultural, recreational, and other community 
     and human service entities; and
       (2) the term ``Secretary'' means the Secretary of 
     Education.

     SEC. 2406. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $25,000,000 for 
     fiscal year 1995 and such sums as may be necessary for each 
     of the fiscal years 1996-1999.
     --Page 323, on line 14, strike Section 2441 and insert the 
     following:

     SEC. 2441. FINDINGS.

       The Congress finds that--
       (1) a local public school often serves as a center for the 
     delivery of education and human resources for all members of 
     a community;
       (2) public schools, primarily in rural and inner city 
     communities, should collaborate with other public and 
     nonprofit agencies and organizations, local businesses, 
     educational entities (such as vocational and adult education 
     programs, school to work programs, community colleges, and 
     universities), recreational, cultural, and other community 
     and human service entities for the purpose of meeting the 
     needs and expanding the opportunities available to the 
     residents of the communities served by such schools;
       (3) by using school facilities, equipment, and resources, 
     communities can promote a more efficient use of public 
     education facilities, especially in rural and inner city 
     areas where limited financial resources have enhanced the 
     necessity for local public schools to become social service 
     centers;

     SEC. 2442. PROGRAM AUTHORIZATION AND DISTRIBUTION.

       (a) Grants by the Secretary.--The Secretary is authorized 
     in accordance with the provisions of this subsection to make 
     grants to rural and inner city schools or consortia thereof 
     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.
       (1) No school or consortia thereof shall receive a grant 
     award of less than $50,000 in each fiscal year; and
       (2) such grant projects do not exceed a 3-year period.
       (b) Application.--To be eligible to receive funds under 
     this section, a school or consortia thereof shall submit an 
     application to the Secretary of Education at such time and in 
     such manner as the Secretary may reasonably prescribe, that 
     shall include--
       (1) a comprehensive local plan that enables such school to 
     serve as a center for the delivery of education and human 
     resources for members of a community; and
       (2) an initial evaluation of needs, available resources, 
     and goals and objectives for the proposed community education 
     program to determine programs that will be developed to 
     address these needs:
       (A) A mechanism 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 of coordinated so that public resources may be 
     maximized.
       (C) A description of the collaborative efforts of 
     community-based organizations, related public agencies, 
     businesses, or other appropriate organizations.
       (D) A description of how the school will assist as a 
     delivery center for existing and new services, especially 
     inter-active telecommunications used for education and 
     professional training.
       (E) The establishment of a facility utilization policy that 
     specifically states rules and regulations for building and 
     equipment use and supervision guidelines.
       (4) the high technology, global economy of the 21st century 
     will require lifelong learning to keep America's workforce 
     competitive and successful, local public schools should 
     provide centers for lifelong learning and educational 
     opportunities for individuals of all ages; and
       (5) 21st Century Community Learning Centers enable the 
     entire community to develop an education strategy that 
     addresses the educational needs of all members of local 
     communities.
       (c) Priority.--The Secretary shall give priority to 
     applications that offer a broad selection of services that 
     address the needs of the community.

     SEC. 2443. USES OF FUNDS.

       (a) Authorized Programs.--Grants awarded under this section 
     may be used to plan, implement, or expand community learning 
     centers which shall 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 in conjunction with 
     recreation programs.
       (6) Nutrition, health, and/or physical therapy.
       (7) Expanded library service hours to serve community 
     needs.
       (8) Telecommunications and technology education programs 
     for all ages.
       (9) Parenting skills education programs.
       (10) Support and training for child day care providers.
       (11) Employment counseling, training, and placement.
       (12) Services for students who withdraw from school before 
     graduating high school, regardless of age.
       (13) Services for individuals who are either physically or 
     mentally challenged.

     SEC. 2444. AWARD OF GRANTS.

       (a) In General--In approving grants under this section, 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.
       (b) Grant Period.--Grants may be awarded for a period not 
     to exceed 3 years.

     SEC. 2445. DEFINITIONS.

       (1) the term ``Community Learning Center'' means the 
     provision of education, recreational, health, and social 
     service programs for residents of all ages of a local 
     community in public school buildings, primarily in rural and 
     inner city areas, operated by the local educational agency in 
     conjunction with local governmental agencies, businesses, 
     vocational education programs, community colleges, 
     universities, and cultural, recreational, and other community 
     and human service entities; and
       (2) the term ``Secretary'' means the Secretary of 
     Education.

     SEC. 2446. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $25,000,000 for 
     fiscal year 1995 and such sums as may be necessary for each 
     of the fiscal years 1996-1999.
     --Page 323, on line 12, strike ``Subpart 4--21st Century 
     Community Learning Centers'', and insert the following:

            Part F--21st Century Community Learning Centers

     SEC. 2441. FINDINGS.

       The Congress finds that--
       (1) a local public school often serves as a center for the 
     delivery of education and human resources for all members of 
     a community;
       (2) public schools, primarily in rural and inner city 
     communities, should collaborate with other public and 
     nonprofit agencies and organizations, local businesses, 
     educational entities (such as vocational and adult education 
     programs, school to work programs, community colleges, and 
     universities), recreational, cultural, and other community 
     and human service entities for the purpose of meeting the 
     needs and expanding the opportunities available to the 
     residents of the communities served by such schools;
       (3) by using school facilities, equipment, and resources, 
     communities can promote a more efficient use of public 
     education facilities, especially in rural and inner city 
     areas where limited financial resources have enhanced the 
     necessity for local public schools to become social service 
     centers;

     SEC. 2442. PROGRAM AUTHORIZATION AND DISTRIBUTION.

       (A) Grants By the Secretary.--The Secretary is authorized 
     in accordance with the provisions of this subsection to make 
     grants to rural and inner city schools or consortia thereof 
     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.
       (1) No school or consortia thereof shall receive a grant 
     award of less than $50,000 in each fiscal year; and
       (2) such grant projects do not exceed a 3-year period.
       (b) Application.--To be eligible to receive funds under 
     this section, a school or consortia thereof shall submit an 
     application to the Secretary of Education at such time and in 
     such manner as the Secretary may reasonably prescribe, that 
     shall include--
       (1) a comprehensive local plan that enables such school to 
     serve as a center for the delivery of education and human 
     resources for members of a community; and
       (2) an initial evaluation of needs, available resources, 
     and goals and objectives for the proposed community education 
     program to determine programs that will be developed to 
     address these needs:
       (A) A mechanism 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 of 
     community-based organizations, related public agencies, 
     businesses, or other appropriate organizations.
       (D) A description of how the school will assist as a 
     delivery center for existing and new services, especially 
     inter-active telecommunication used for education and 
     professional training.
       (E) The establishment of a facility utilization policy that 
     specifically states rules and regulations for building and 
     equipment use and supervision guidelines.
       (3) the high technology, global economy of the 21st century 
     will require lifelong learning to keep America's workforce 
     competitive and successful, local public schools should 
     provide centers for lifelong learning and educational 
     opportunities for individuals of all ages; and
       (4) 21st Century Community Learning Centers enable the 
     entire community to develop an education strategy that 
     addresses the educational needs of all members of local 
     communities.
       (c) Priority.--The Secretary shall give priority to 
     applications that offer a broad selection of services that 
     address the needs of the community.

     SEC. 2443. USES OF FUNDS.

       (a) Authorized Programs.--Grants awarded under this section 
     may be used to plan, implement, or expand community learning 
     centers which shall 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 in conjunction with 
     recreation programs.
       (6) Nutrition, health, and/or physical therapy.
       (7) Expanded library service hours to serve community 
     needs.
       (8) Telecommunications and technology education programs 
     for all ages.
       (9) Parenting skills education programs.
       (10) Support and training for child day care providers.
       (11) Employment counseling, training, and placement.
       (12) Services for students who withdraw from school before 
     graduating high school, regardless of age.
       (13) Services for individuals who are either physically or 
     mentally challenged.

     SEC. 2444. AWARD OF GRANTS.

       (a) In General.--In approving grants under this section, 
     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.
       (b) Grant Period.--Grants may be awarded for a period not 
     to exceed 3 years.

     SEC. 2445. DEFINITIONS.

       (1) the term ``Community Learning Center'' means the 
     provision of educational, recreational, health, and social 
     service programs for residents of all ages of a local 
     community in public school buildings, primarily in rural and 
     inner city areas, operated by the local educational agency in 
     conjunction with local governmental agencies, businesses, 
     vocational education programs, community colleges, 
     universities, and cultural, recreational, and other community 
     and human service entities; and
       (2) the term ``Secretary'' means the Secretary of 
     Education.

     SEC. 2446. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $25,000,000 for 
     fiscal year 1995 and such sums as may be necessary for each 
     of the fiscal years 1996-1999.
     --Page 826, after line 18, add a new section:

     SEC. 254. DISCLOSURE REQUIREMENTS.

       Each educational organization, prior to accepting funds for 
     the cost of a minor's participation in an educational program 
     operated by such organization, shall disclose the following 
     information in written form to the minor or the minor's 
     parent:
       (1) Method of Solicitation and Selection.--The method of 
     solicitation and selection of participants in the educational 
     program, including--
       (A) the origin of any mailing list used for such 
     solicitation and selection;
       (B) any recruitment through teacher or school personnel, 
     including any enticements offered to such teacher or 
     personnel for the recommendation of a minor for participation 
     in the educational program;
       (C) any open enrollment activity, including the method of 
     outreach; and
       (D) any cooperation with, or sponsorship by, a membership 
     organization, including a description of the cooperation or 
     sponsorship and the name of each such organization.
       (2) Cost and Fees.--Information regarding the cost of the 
     educational program and information regarding the 
     distribution of any enrollment fee, including--
       (A) the amount paid for, and the percentage of the total 
     educational program cost of, each feature of the educational 
     program, including--
       (i) food;
       (ii) lodging;
       (iii) transportation;
       (iv) program staffing;
       (v) textbooks, syllabi, or other scholastic educational 
     program materials;
       (vi) speaker fees; and
       (vii) administrative expenses, including expenses related 
     to--
       (I) the preparation of non-scholastic educational program 
     materials;
       (II) the provision of financial assistance;
       (III) mailing list rental or other recruitment activity; 
     and
       (IV) administrative salaries and consulting fees;
       (B) the identity of the organization or business providing 
     each of the features described in clauses (i) through (vii) 
     of subparagraph (A); and
       (C) the nature of any relationship of any board member, 
     officer, or employee of the educational organization to any 
     organization or business described in subparagraph (B), 
     including the salary or other compensation paid by such 
     organization or business to such Board member, officer, or 
     employee.
       (3) Nondiscriminatory enrollment and service policy.--
       (a) In general.--Each educational organization shall 
     include a verifiable statement on all enrollment or 
     recruitment material that the educational organization does 
     not--
       (1) fail or refuse to hire, or discharge, any individual, 
     or otherwise discriminate against any individual with respect 
     to compensation, terms, conditions, or privileges of 
     employment, or
       (2) exclude any student from participation in an 
     educational program, discriminate against any student in 
     providing the benefits associated with such program 
     (including any scholarship or financial assistance, and use 
     of any facility), or subject the student to discrimination 
     under such program, on the basis of race, disability, or 
     residence in a low-income area.
       (b) Construction.--Nothing in this section shall be 
     construed to entitle a student to--
       (1) participation in an educational program or any benefit 
     associated with such program; or
       (2) a waiver of any fee charged for such participation or 
     benefit.
       (4) Enforcement.--
       (a) In general.--The Secretary of Education shall monitor 
     compliance with the provisions of this section.
       (b) Civil penalty.--If an educational organization 
     knowingly violates any provision of this Act, the Secretary 
     of Education, after notice and opportunity for hearing, may 
     impose on such organization a civil fine of not more than 
     $1,000 for each such violation.
       (1) participation in an educational program or any benefit 
     associated with such program; or
       (2) a waiver of any fee charged for such participation or 
     benefit.
     --Page 901, after line 4, insert the following:
                      TITLE VI--PROGRAM STRATEGIES

     SEC. 601. INNOVATIVE PROGRAM STRATEGIES.

       Part E of title II of the Elementary and Secondary 
     Education Act of 1965, as amended by section 101 of this Act, 
     is further amended to read as follows:

                 ``PART E--EDUCATION PROGRAM STRATEGIES

     ``SEC. 2401. FINDINGS AND STATEMENT OF PURPOSE.

       ``(a) Findings.--The Congress finds that chapter 2 of the 
     Education Consolidation and Improvement Act of 1981 has been 
     successful in achieving the goals of increasing local 
     flexibility, reducing administrative burden, providing 
     services for private school students, encouraging innovation, 
     and contributing to the improvement of elementary and 
     secondary educational programs.
       ``(b) Statement of Purpose.--It is the purpose of programs 
     under this part:
       ``(1) To support local education reform efforts which are 
     consistent with and support statewide reform efforts under 
     Goals 2000.
       ``(2) To support State and local efforts to accomplish the 
     National Education Goals.
       ``(3) To provide funding to enable State and local 
     educational agencies to implement promising educational 
     reform programs that can be supported by State and local 
     sources of funding after such programs are demonstrated to be 
     effective.
       ``(4) To provide a continuing source of innovation, 
     educational improvement, and support for library services and 
     instructional materials, including media materials and,
       ``(5) To meet the special educational needs of at risk and 
     high cost students.
       ``(c) State and Local Responsibility.--The basic 
     responsibility for the administration of funds made available 
     under this part 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 part will be mainly that of local 
     educational agencies, school superintendents and principals, 
     and classroom teachers and supporting personnel, because they 
     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 districts.

     ``SEC. 2402. AUTHORIZATION OF APPROPRIATIONS; DURATION OF 
                   ASSISTANCE.

       ``(a) Authorization.--To carry out the purposes of this 
     part, there are authorized to be appropriated $435,000,000 
     for fiscal year 1995 and such sums in each of the fiscal 
     years 1996 through 1999.
       ``(b) Duration of Assistance.--During the period beginning 
     October 1, 1994, and ending, September 30, 1999, the 
     Secretary shall, in accordance with the provisions of this 
     part, make payments to State educational agencies for the 
     purpose of this section.

                 ``Subpart 1--State and Local Programs

     ``SEC. 2411. ALLOTMENT TO STATES.

       ``(a) Reservations.--From the sums appropriated to carry 
     out this subpart in any fiscal year, the Secretary shall 
     reserve not to exceed 1 percent for payments to Guam, 
     American Samoa, the Virgin Islands, the Trust Territory of 
     the Pacific Islands, and the Northern Mariana Islands, 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 one-half of 1 percent of such remainder.
       ``(c) Definitions.--For purposes of this subpart--
       ``(1) The term `school-age population' means the population 
     aged 5 through 17.
       ``(2) The term `States' includes the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 2412. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Distribution Rule.--From the sums made available each 
     year to carry out this part, 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, nonprofit 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 which have 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) 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 part, for the fiscal 
     year preceding the fiscal year in which the determination is 
     made. 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 part.
       ``(2)(A) 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) The Secretary shall review criteria submitted by a 
     State educational agency for adjusting allocations under 
     paragraph (1) 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) From the funds paid to it pursuant to section 2402 
     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 2423 the 
     amount of its allocation as determined under subsection (a).
       ``(2)(A) 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 school in direct proportion to the number of 
     children described in subsection (a) and enrolled in such 
     schools within the local educational agency.
       ``(B) 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) 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.

                      ``Subpart 2--State Programs

     ``SEC. 2421. STATE USES OF FUNDS.

       ``(a) Authorized Activities.--A State educational agency 
     may use funds reserved for State use under this section only 
     for--
       ``(1) State administration of programs under this section 
     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 part; and
       ``(2) technical assistance and direct grants to local 
     educational agencies and statewide education reform 
     activities which assist local educational agencies to provide 
     targeted assistance.
       ``(b) Limitations and Requirements.--Not more than 25 
     percent of funds available for State programs under this part 
     in any fiscal year may be used for State administration under 
     subsection (a)(1).

     ``SEC. 2423. STATE APPLICATIONS.

       ``(a) Application Requirements.--Any State which desires to 
     receive a grant 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 part;
       ``(2)(A) provides for an annual submission of date on the 
     use of funds, the types of services furnished, and the 
     students served under this section; and
       ``(B) in fiscal year 1998 provides for an evaluation of the 
     effectiveness of programs assisted under this subpart;
       ``(3) 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);
       ``(4) provides assurance that, apart from technical and 
     advisory assistance and monitoring compliance with this part, 
     the State educational agency has not exercised and will not 
     exercise any influence in the decision making processes of 
     local educational agencies as to the expenditure made 
     pursuant to an application under section 2433; and
       ``(5) contain assurances that there is compliance with the 
     specific requirements of this chapter.
       ``(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.--Notwithstanding section 1745 of the 
     Omnibus Budget Reconciliation Act of 1981, local educational 
     agencies receiving less than an average of $5,000 each under 
     this section need not be audited more frequently than once 
     every 5 years.

            ``Subpart 3--Local Targeted Assistance Programs

     ``SEC. 2431. TARGETED USE OF FUNDS.

       ``(a) General Rule.--Funds allocated for use under this 
     subpart shall be used by local educational agencies for 
     targeted assistance described in subsection (b).
       ``(b) Targeted Assistance.--The targeted assistance 
     programs referred to in subsection (a) include--
       ``(1) technology related to the implementation of school-
     based reform programs, including professional development to 
     assist teachers and other school officials regarding how to 
     use effectively such equipment and software;
       ``(2) instructional and educational materials, assessments, 
     and library services and materials (including media 
     materials) tied to high academic standards and which are part 
     of an overall education reform program;
       ``(3) promising education reform projects, including 21st 
     Century Learning Center school projects in accordance with 
     subpart 4; and
       ``(4) computer hardware and software purchased under this 
     section should be used only for instructional purposes.

     ``SEC. 2432. ADMINISTRATIVE AUTHORITY.

       ``In order to conduct the activities authorized by this 
     part, each State or local educational agency may use funds 
     reserved for this part 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. 2433. LOCAL APPLICATIONS.

       ``(a) Contents of Application.--A local educational agency 
     or consortia of local educational 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) sets forth the planned allocation of funds among 
     targeted assistance programs described in section 2431 of 
     this part and describes the programs, projects and activities 
     designed to carry out such targeted assistance which it 
     intends to support, together with the reasons for selection 
     of such programs, projects and activities; and
       ``(2) describes how assistance under this section will 
     contribute to meeting the National Education Goals and 
     improving student achievement or improving the quality of 
     education for students;
       ``(3) agrees to keep such records, and provide such 
     information to the State educational agency as may reasonably 
     be required for fiscal audit and program evaluation, 
     concession with the responsibilities of the State agency 
     under this part; and
       ``(4) provides in the allocation of funds for the 
     assistance authorized by this part, and in the design, 
     planning and implementation of such programs, for systematic 
     consultation with parents of children attending elementary 
     and secondary schools in the area served by the local agency, 
     with teachers and administrative personnel in such schools, 
     and with other groups involved in the implementation of this 
     section (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 part, a local 
     educational agency shall have complete discretion in 
     determining how funds under this subpart shall be divided 
     among the areas of targeted assistance. In exercising such 
     discretion, a local educational agency shall ensure that 
     expenditures under this subpart carry out the purposes of 
     this subpart and are used to meet the educational needs 
     within the schools of such local educational agency.

          ``Subpart 4--21st Century Community Learning Centers

     ``SEC. 2441. FINDINGS.

       ``The Congress finds that--
       ``(1) there are influences outside of school which affect 
     the ability of a child to achieve academically and schools 
     are in a unique position to identify student and family needs 
     to coordinate programs;
       ``(2) access to health and social service programs can 
     assist children and their families to improve the ability of 
     the family to take an active role of their child's education;
       ``(3) coordination of health and social service programs 
     with education can help the Nation meet the National 
     Education Goals and ensure better outcomes for children;
       ``(4) the high technology, global economy of the 21st 
     century will require lifelong learning to keep America's 
     workforce competitive and successful;
       ``(5) 21st Century Community Learning Centers enable the 
     entire community to develop an education strategy that 
     addresses the educational needs of all members of local 
     communities; and
       ``(6) local public schools should provide centers for 
     lifelong learning and educational opportunities for 
     individuals of all ages.

     ``SEC. 2442. FUNDS FOR COMMUNITY LEARNING CENTERS.

       ``(a) In General.--Local educational agencies may use funds 
     provided under section 2412 to pay the Federal share of the 
     cost for enabling schools to serve as centers for the 
     delivery of education and human services for members of a 
     community.
       ``(b) Uses of Funds.--Local educational agencies may use 
     funds provided under section 2412 for projects described 
     under this subpart.

     ``SEC. 2443. PROGRAMS.

       ``Local educational agencies that receive funds under this 
     subpart may develop programs that include--
       ``(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 in conjunction 
     with summer recreation programs;
       ``(6) nutrition programs;
       ``(7) expanded library service hours to serve community 
     needs;
       ``(8) telecommunications and technology education programs 
     for all ages;
       ``(9) parenting skills education programs;
       ``(10) support and training for child day care providers;
       ``(11) employment counseling, training, and placement;
       ``(12) services for students who withdraw from school 
     before graduating high school, regardless of age; and
       ``(13) services for individuals who are either physically 
     or mentally challenged.

     ``SEC. 2444. REQUIREMENTS.

       ``A local educational agency that uses funds to develop 
     programs under this subpart shall, at the end of the first 
     year for which funds are used for this purpose, provide 
     information to the State educational agency which describes 
     the activities and projects established with funds under this 
     subpart and includes--
       ``(1) information on the comprehensive local plan that 
     enables such school to serve as a center for the delivery of 
     education and human services for members of a community; and
       ``(2) information on the initial evaluation of needs, 
     available resources, and goals and objectives for the 
     proposed community education program and how such evaluation 
     was used to determine the program developed to address such 
     needs; including--
       ``(A) the mechanism used to disseminate information in a 
     manner understandable and accessible to the community;
       ``(B) identification of Federal, State, and local programs 
     merged or coordinated so that public resources could be 
     maximized;
       ``(C) a description of the collaborative efforts of 
     community-based organizations, related public agencies, 
     businesses, or other appropriate organizations;
       ``(D) a description of how the school will assist as a 
     delivery center for existing and new services; and
       ``(E) the establishment of the facility utilization policy 
     that specifically states rules and regulations for building 
     and equipment use and supervision guidelines.

     ``SEC. 2445. DEFINITION.

       ``For purposes of this subpart, the term `Community 
     Learning Center' means the provision of educational, 
     recreational, health, and social service programs for 
     residents of all ages of a local community in public school 
     buildings, primarily in rural and inner city areas, operated 
     by the local educational agency in conjunction with local 
     governmental agencies, businesses, vocational education 
     programs, community colleges, universities, cultural, 
     recreational, and other community and human service entities.
           By Mr. HEFLEY:
     --Page 28, line 12, before ``opportunity'' insert: ``to the 
     extent that Federal funds are available,''.
     --Page 218, strike lines 10 through 18.
           By Mr. HOAGLAND:
     --Page 49, line 24, strike ``and''.
     --Page 50, line 12, strike the period and insert ``; and''.
     --Page 50, line 13, strike ``Notwithstanding'' and insert 
     ``notwithstanding''.
     --Page 50, line 19, strike the period and insert; and'' and 
     add after that line the following:
       ``(4) to the extent feasible, use funds received under this 
     part to serve educationally deprived children who reside in 
     school attendance areas having high concentrations of 
     children from low-income families or who are under a school 
     desegregation plan and who otherwise meet the eligibility 
     requirements of this part and who attend schools in 
     noneligible attendance areas.
     --Sec. 1113.
       I am submitting the following amendment to the Sec. 1113 
     ``Eligible School Attendance Areas'' of H.R. 6 because as it 
     is currently written, school districts under a desegregation 
     order of voluntary desegregation plan do not use 
     ``geographical area'' as the criteria for defining school 
     attendance area. Instead, they can be based on census tract 
     data, or other data. These school districts would thus not be 
     able to continue funding for otherwise eligible students 
     because of the language in H.R. 6. This is clearly not the 
     intent of the bill, and I think this must be corrected. There 
     are currently 41 schools in my district served by Chapter 1. 
     H.R. 6 would limit that number to 25, and would discontinue 
     funds for 1200 eligible students in my district. I am 
     submitting this amendment to correct this unintended 
     inequity.
           By Mr. HOYER:
     --Page 51, line 25, after ``funds'' insert ``for the 
     activities set forth in this section, in order''.
     --Page 52, line 11, strike ``60'' and insert ``50''.
     --Page 55, line 1, after ``students,'' insert ``provide 
     timely assistance to students having difficulty meeting the 
     standards,''.
     --Page 59, line 8, strike ``shall'' and insert ``may''.
     --Page 59, beginning on line 8, strike ``in addition to'' and 
     insert ``as part of''.
     --Page 71, line 2, strike ``that it deems appropriate'' and 
     insert ``, which may include actions to withhold or transfer 
     funds and authority from schools that are failing to make 
     adequate progress as defined in section 1111(b)(2), as will 
     assure adequate progress for all students''.
     --Page 900, after line 23, insert the following (and 
     redesignate any subsequent sections accordingly):

     SEC. 502. STUDY OF THE EFFECTIVENESS AND IMPACT OF FEDERAL 
                   CATEGORICAL AID PROGRAMS.

       (a) Study.--In addition to the national assessment 
     conducted pursuant to section 1501 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, the Secretary of Education shall conduct a 
     comprehensive study of the effectiveness of other Federal 
     categorical aid programs and the administrative impact of 
     such programs on schools and local educational agencies.
       (b) Contents.--Such study shall--
       (1) examine the effectiveness of elementary and secondary 
     school categorical programs, including those authorized in 
     this Act and elsewhere, in improving the educational 
     achievement of participating students;
       (2) encompass an in-depth evaluation of the administrative 
     impact of the broad range of categorical programs on 
     participating schools and local educational agencies;
       (3) include a comprehensive review of the programs to 
     determine their effect on--
       (A) the improvement in educational achievement of 
     participating students;
       (B) school and local educational agencies' administrative 
     responsibilities and structure, including the use of local 
     and State resources, with particular attention to schools and 
     agencies serving a high concentration of disadvantaged 
     students; and
       (C) overall school reform efforts, including efforts 
     undertaken by States and encouraged by Federal laws, such as 
     the Goals 2000: Educate America Act;
       (4) evaluate the effect of Federal categorical programs at 
     the elementary and secondary levels on the proliferation of 
     State categorical education aid programs and regulations, and 
     the impact on student achievement and school and local 
     educational agency administrative responsibilities and 
     structure; and
       (5) examine the effect of waivers on categorical program 
     requirements and other flexibility provisions in this Act, 
     the School-to-Work Opportunities Act, and the Goals 2000: 
     Educate America Act on improvement in educational achievement 
     of participating students and on school and local educational 
     agency administrative responsibilities, structure, and 
     resources.
       (c) Panel.--The Secretary shall appoint an independent 
     panel to review the plan for the study, to advise on the 
     progress of the study, and to comment, if it so wishes, on 
     the final report.
       (d) Report.--The Secretary shall submit the report not 
     later than January 1, 1997, to the Committee on Education and 
     Labor of the House of Representatives, to the Senate 
     Committee on Labor and Human Resources, and to the Labor, 
     Health and Human Services, and Education Subcommittees of the 
     House and Senate Appropriations Committees.
           By Mr. SAM JOHNSON of Texas:
     --No funds made available through the Department of Education 
     under this Act shall be available to any state or local 
     educational agency which has a policy of denying, or which 
     effectively prevents participation in, prayer in public 
     schools by individuals on a voluntary basis. Neither the 
     United States nor any state nor any local education agency 
     shall require any person to participate in prayer or 
     influence the form or content of any prayer in such public 
     schools.
           By Mr. KILDEE:
     --Page 53, line 8, strike ``60'' and insert ``50''.
     --Page 729, strike lines 15 and all that follows through page 
     730, line 21.
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. APPLICABILITY TO HOME SCHOOLS.

       ``Nothing contained in this Act shall be construed to 
     affect home schools.
     --Page 218, line 14, strike ``in schools under the 
     jurisdiction of the agency'' and insert ``in public 
     schools''.
     --Page 218, line 16 after ``assigned.'' insert ``This 
     requirement shall not apply to any private school or home 
     school.''
     --Page 53, line 8, strike ``60 percent'' and insert ``50 
     percent, if the amount appropriated under section 1002(1) for 
     a fiscal year equals or exceeds $10,500,000,000''.
     --Page 884, line 25, strike ``influence,'' and insert 
     ``influence; and''.
     --Page 885, line 1, insert ``and the National Assessment 
     Governing Board'' after ``Commissioner''.
     --Page 885, line 2, strike ``Progress,'' and all that follows 
     through line 12 and insert ``Progress.''
     --Page 896, strike lines 6 through line 9 and insert the 
     following:
       ``(e) Student Performance Levels.--(1) The National 
     Assessment Governing Board established under section 412, 
     working with the Assistant Secretary, shall develop 
     appropriate student performance levels for each age and grade 
     in each subject area to be tested under the National 
     Assessment.''.
     --Page 896, line 8, strike ``goals'' and insert ``levels''.
     --Page 896, line 12, strike ``goals'' and insert ``levels''.
     --Page 896, line 13, strike ``goals'' and insert ``levels''.
     --Page 896, line 20, strike ``goals'' and insert ``levels''.
     --Page 896, after line 23, insert the following:
       ``(4) The Commissioner may use such levels or other methods 
     or indicators for reporting results of the National 
     Assessment and State assessments.
     --Page 897, line 4, strike ``goals'' and insert ``levels''.
       Redesignate section 412 as section 413.
     --Page 898, after line 5, insert the following:

     ``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD

       ``(a) Establishment.--There is established the National 
     Assessment Governing Board (the ``Board'') which shall 
     formulate policy guidelines for the National Assessment, as 
     provided in subsection (e).
       ``(b) Membership.--(1) The Board shall be appointed by the 
     Secretary and shall be composed of--
       ``(A) 2 Governors, or former Governors, who shall not be 
     members of the same political party;
       ``(B) 2 State legislators, who shall not be members of the 
     same political party;
       ``(C) 2 chief State school officers;
       ``(D) 1 member of a State board of education;
       ``(E) 1 superintendent of a local educational agency;
       ``(F) 1 member of a local board of education;
       ``(G) 3 classroom teachers representing the grade levels at 
     which the National Assessment is conducted;
       ``(H) 1 representative of business or industry;
       ``(I) 2 curriculum specialists;
       ``(J) 3 testing and measurement experts;
       ``(K) 1 nonpublic school administrator or policymaker;
       ``(L) 2 school principals, one of whom is an elementary 
     school principal and the other of whom is a secondary 
     principal; and
       ``(M) 4 additional members who are representatives of the 
     general public, including parents.
       ``(2) The Assistant Secretary for Educational Research and 
     Improvement shall serve as an ex officio and nonvoting member 
     of the Board.
       ``(3) In making appointments under this subsection and 
     filling vacancies under subsection (d), the Secretary shall 
     ensure that the membership of the Board reflects regional, 
     racial, gender, and cultural diversity and balance.
       ``(c) Terms.--(1) Terms of service of members of the Board 
     shall be staggered and may not exceed a period of 3 years, as 
     determined by the Secretary.
       ``(2) Members of the Board may serve not more than two 
     consecutive terms.
       ``(3) A member of the Board who changes status under 
     subsection (b) during the term of the appointment of the 
     member may continue to serve as a member until the expiration 
     of such term.
       ``(d) Vacancies.--The Secretary shall appoint new members 
     to fill vacancies on the Board--
       ``(1) after soliciting recommendations from a wide variety 
     of organizations, including those representing the types of 
     individuals listed in subsection (b)(1); and
       ``(2) in a manner which maintains the composition, 
     diversity and balance of the Board required under subsection 
     (b).
       ``(e) Duties.--(1) The Board, working with the Assistant 
     Secretary, shall develop--
       ``(A) appropriate student performance levels as provided in 
     section 411(e);
       ``(B) assessment objectives and test specifications through 
     a national consensus approach which includes the active 
     participation of teachers, curriculum specialists, local 
     school administrators, parents, and concerned members of the 
     public;
       ``(C) guidelines for analysis plans and for reporting and 
     disseminating National Assessment results; and
       ``(D) recommendations for actions needed to improve the 
     form and use of the National Assessment.
       ``(2) The Board, working with the Commissioner, shall take 
     steps to ensure that all items selected for use in the 
     National Assessment are free from racial, cultural, gender, 
     or regional bias.
       ``(3) In carrying out the duties required by paragraph (1), 
     the Board shall seek technical advice, as appropriate, from 
     the Commissioner and the Advisory Council on Education 
     Statistics.
       ``(f) Personnel.--(1) The Secretary may appoint, at the 
     request of the Board, such staff as will enable the Board to 
     carry out its responsibilities under subsection (e)(1).
       ``(2) Such appointments may include, for terms not to 
     exceed 3 years and without regard to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive service, not more than 6 technical employees who 
     may be paid without regard to the provisions of chapter 51 
     and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates.
       ``(h) Administration.--(1) The Board shall be subject to 
     the provisions of the Federal Advisory Committee Act, 
     including the requirement for open meetings.
       ``(2)(A) No member or employee of the Board, in the course 
     of the official duties of such member or employee, may engage 
     in activities designed to directly or indirectly influence 
     legislation which is or may be considered by the Congress, 
     except in instances where a representative of the Board has 
     been invited to provide testimony before a committee of the 
     Congress.
       ``(B) Any member or employee of the Board who knowingly 
     engages in the conduct prohibited by subparagraph (A) may be 
     subject to either confinement for a period not to exceed 6 
     months or a fine not to exceed $10,000, or both.
     --Page 898, line 7, strike ``There'' and insert ``(1) 
     There''.
     --Page 898, line 8, strike ``title'' and insert ``title 
     (except section 412)''.
     --Page 898, after line 10, insert the following:
       ``(2) There are authorized to be appropriated to carry out 
     section 412 $1,000,000 for each of the fiscal years 1995 and 
     1996.
     --Page 752, strike line 2 and all that follows through line 
     12 of page 754 and insert the following:

     ``SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS

       ``(a) General.--Except as provided in subsection (c), the 
     Secretary may waive any requirement of this Act or any 
     regulation under this Act for a State educational agency, 
     local educational agency, Indian tribe, or school, or that--
       ``(1) receives funds under a program authorized by this 
     Act; and
       ``(2) requests a waiver as prescribed in subsection (b).
       ``(b) Request for Waiver.--(1) A State educational agency, 
     local educational agency, or Indian tribe which desires a 
     waiver shall submit a 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 to 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 or 
     Indian tribe and schools to achieve the objectives described 
     in this paragraph;
       ``(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) Such requests under this section--
       ``(A) may provide for waivers of requirements applicable to 
     State educational agencies, local educational agencies, 
     Indian tribes, and schools.
       ``(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.
       ``(c) Notice Requirement.--(1) Prior to requesting a waiver 
     under subsection (b), a State educational agency, local 
     educational agency, or Indian tribe shall provide notice and 
     information to the public regarding the waiver or waivers to 
     be requested.
       ``(2) Such notice and information shall be provided in the 
     manner that such agencies or tribes customarily provide 
     similar notices and information to the public.
       ``(d) Restrictions.--Nothing in this section shall be 
     construed to authorize any changes in--
       ``(1) requirements relating to--
       ``(A) the allocation of funds;
       ``(B) maintenance of effort;
       ``(C) comparability of services;
       ``(D) use of Federal funds to supplement, not supplant non-
     Federal funds;
       ``(E) equitable participation of private school students 
     and teachers; and
       ``(F) parental participation and involvement;
       ``(2) the elements of a charter school described in section 
     3407(1); or
       ``(3) the prohibitions regarding--
       ``(A) state aid in section 9502; or
       ``(B) use of funds to religious worship or instruction in 
     section 9507.
       ``(e) Duration and Extension of Waiver.--(1) The duration 
     of a waiver approved by the Secretary may be for a period not 
     to exceed 3 years.
       ``(2) The Secretary may extend such period if the Secretary 
     determines that the use of such waiver has increased the 
     quality of instruction or the academic performance of 
     students.
       ``(f) Termination of Waivers.--The Secretary shall 
     terminate a waiver under this section if--
       ``(1) the Secretary determines that the use of a waiver has 
     not increased the quality of instruction or improved the 
     academic performance of students; or
       ``(2) such waiver is no longer needed by the recipient to 
     achieve the objectives of such waiver.
       ``(g) Reports.--
       ``(1) A local educational agency that receives a waiver 
     under this section shall annually 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) A State educational agency that receives reports 
     required by paragraph (1) shall annually submit a report to 
     the Secretary that summarizes such reports.
       ``(3) 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.
       ``(3) The Secretary annually shall submit to the Committee 
     on Education and Labor of the House of Representatives and 
     the Committee on Labor and Human Resources 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.
           By Mr. KILDEE:
     --Page 5, amend the heading for part E of title II of the 
     Elementary and Secondary Education Act of 1965 in the table 
     of contents as follows:

          ``Part E--Innovative Education Program Strategies''.

     --Page 8, in the item relating to title V, strike:
                  ``TITLE V--MAGNET SCHOOLS ASSISTANCE

                      ``PART A--PROMOTING EQUITY''

     and insert
                      ``TITLE V--PROMOTING EQUITY

                 ``PART A--MAGNET SCHOOLS ASSISTANCE''

     --Page 15, in the item relating to section 501, strike 
     ``study'' and insert ``evaluation''.
     --Page 37, strike lines 8 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 37, line 23, strike ``and revision''.
     --Page 37, after line 23, insert the following (and 
     redesignate any subsequent paragraphs accordingly):
       ``(2) shall appoint individuals to the peer review process 
     who shall be representative of State educational agencies, 
     local educational agencies, teachers, and parents;''.
     --Page 52, line 19, after ``1117'' insert ``(c)(1) and (e)''.
     --Page 52, line 20, after ``system'' insert ``, together with 
     other providers of assistance with which the State has made 
     specific arrangements to assist schoolwide programs, such as 
     comprehensive technical assistance centers, regional 
     laboratories, and institutions of higher education,''.
     --Page 52, line 22, strike ``, including'' and all that 
     follows through ``team'' on line 24.
     --Page 56, line 18, after ``local educational agency'' insert 
     ``and its school support team or other technical assistance 
     provider consistent with the provisions in subsections (c)(1) 
     and (e) of section 1117''.
     --Page 59, strike lines 8 through 14 and insert the 
     following:

     identification shall be subject to corrective actions by the 
     local educational agency, as well as, where appropriate, 
     termination of schoolwide program status.
       ``(3) A school that has forfeited its schoolwide status may 
     not regain such status until the local educational agency 
     determines that the school has adequately reformed its 
     schoolwide program plan to enable it to make adequate 
     progress toward meeting the State's challenging performance 
     standards.
     --Page 70, line 16, strike ``; and'' and insert a comma.
     --Page 70, line 18, before the period insert ``, and in the 
     case of schoolwide programs, terminating schoolwide status''.
     --Page 72, line 20, strike ``standards.'' and insert 
     ``standards, and submit such plan to the State educational 
     agency for approval.''.
     --Page 188, line 21, strike ``and middle schools'' and insert 
     ``, middle schools, and secondary schools''.
     --Page 311, strike line 20 and insert the following:

          ``PART E--INNOVATIVE EDUCATION PROGRAM STRATEGIES''.

     --Page 312, line 8, strike ``Goals 2000'' and insert ``Goals 
     2000: Educate America Act''.
     --Page 313, beginning on line 25, strike ``the Trust 
     Territory of the Pacific Islands''.
     --Page 314, line 1, insert ``and Palau (until the effective 
     date of the Compact of Free Association with the Government 
     of Palau),'' after ``the Northern Mariana Islands,''.
     --Page 319, line 19, strike ``chapter'' and insert ``part''.
     --Page 322, line 15, after ``local'' insert ``educational''.
     --Page 445, strike lines 7 through 9 and insert the 
     following:
                      ``TITLE V--PROMOTING EQUITY

                 ``PART A--MAGNET SCHOOLS ASSISTANCE''.

     --Page 757, line 5, strike ``and''.
     --Page 757, line 6, insert the following (and redesignate any 
     subsequent subparagraphs accordingly):
       ``(B) Subpart 1 of part B and part C of title II; and''.
     --Page 802, strike lines 14 through 25.
     --Page 898, line 12, strike ``Study'' and insert 
     ``Evaluation''.
     --Page 898, line 14, strike ``In addition to'' and insert 
     ``In collaboration with''.
     --Page 898, line 17, strike ``study'' and insert 
     ``evaluation''.
     --Page 898, line 21, strike ``study'' and insert 
     ``evaluation''.
     --Page 898, line 25, strike ``study'' and insert 
     ``evaluation''.
     --Page 899, line 2, after ``Opportunities Act'' insert ``and 
     shall be coordinated with evaluations of such acts''.
     --Page 899, line 3, strike ``study'' and insert 
     ``evaluation''.
     --Page 899, line 13, strike ``study'' and insert 
     ``evaluation''.
     --Page 899, line 20, strike ``to such'' and insert ``with 
     such''.
     --Page 900, line 3, strike ``study'' and insert 
     ``evaluation''.
     --Page 900, line 11, strike ``study'' and insert 
     ``evaluation''.
     --Page 900, line 17, strike ``study'' and insert 
     ``evaluation''.
     --Page 900, line 19, after ``report.'' insert ``The panel 
     shall not be subject to the Federal Advisory Committee 
     Act.''.
     --Page 901, strike lines 2 through 4 and insert the 
     following: ``Any authority or requirement to make funds 
     available under this Act shall be effective only to the 
     extent provided in appropriation Acts.
       Strike out part G of title VI of the Elementary and 
     Secondary Education Act of 1965, as proposed to be added by 
     the amendment made by section 101 of the bill (page 519, line 
     8 through page 617, line 24).
     --Page 875, after line 20, insert the following:

     PART F--AMENDMENTS TO STATUTES PERTAINING TO INDIAN EDUCATION

     SEC. 351. BUREAU OF INDIAN AFFAIRS.

       Part B of title XI of Public Law 95-561 (25 U.S.C. 2001 et 
     seq.) is amended to read as follows:
     --Page 875, after line 20, insert the text set out in the 
     bill as part G of title VI of the Elementary and Secondary 
     Education Act of 1965 (page 519, line 8 through page 617, 
     line 24) and redesignate that part as part B, redesignate the 
     sections in that part so as to begin with section 1121, and 
     revise cross references to those sections accordingly.
     --Page 875, after line 20, insert the following:

     SEC. 352. APPLICATION WITH RESPECT TO INDIAN SELF-
                   DETERMINATION AND EDUCATION ASSISTANCE ACT.

       Section 5209(a) of the Tribally Controlled Schools Act of 
     1988 (25 U.S.C. 2508(a)) is amended to read as follows:
       ``(a) Certain Provisions To Apply to Grants.--All 
     provisions of section 5, 6, 7, 104, 105(f), 109, and 111 of 
     the Indian Self-Determination and Education Assistance Act, 
     except those provisions relating to indirect costs and length 
     of contract, shall apply to grants provided under this 
     part.''.

     SEC. 353. PAYMENTS.

       Section 5209(e) of Public Law 100-297, the Tribally 
     Controlled Schools Act of 1988, is amended--
       (1) by striking ``the amount of the grant under section 
     5205 (and the amount of funds referred to in that section), 
     any payments to be made under section 5208 of this Act,'' and 
     inserting in lieu thereof: ``a grant authorized to be made 
     pursuant to this part or any amendment to such grant'';
       (2) by striking ``the amount of, or payment of, the 
     administrative grant'' and inserting in lieu thereof ``an 
     administrative cost grant''; and
       (3) by adding at the end thereof ``and the Equal Access to 
     Justice Act shall apply to administrative appeals filed after 
     January 1, 1994, by grantees regarding the Tribally 
     Controlled Schools Grant and Administrative Cost Grants.''.

     SEC. 354. ENDOWMENT FUNDS.

       Section 302 of Public Law 95-471, the Tribally Controlled 
     Community Colleges Assistance Act of 1978, is amended--
       (1) in subsection (a), by striking ``section 333'' and 
     inserting in lieu thereof ``section 331'';
       (2) in subsection (b), by deleting paragraph (1) and 
     inserting in lieu thereof the following:
       ``(1) provides for the investment and maintenance of funds 
     covered by such endowment account under the same conditions 
     and limitations as are in section 331 of the Higher Education 
     Act and the regulations implementing such provisions in 
     effect at the time such funds are invested;
       (3) in subsection (b)(3) by striking ``same'' the first 
     time it appears.

     SEC. 355. HIGHER EDUCATION AMENDMENTS OF 1992.

       Section 1518 of title XV of the Higher Education Amendments 
     of 1992 (relating to the Santa Fe Arts Institute) is 
     amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(6) For the purpose of complying with the contribution 
     requirement in this subsection, the Institute may use funds 
     or in-kind contributions of real or personal property. For 
     the purposes of this paragraph, all contributions, in-kind 
     and real estate, which are on hand as of November 29, 1990, 
     and which were received after June 2, 1988, but which have 
     not been included in their entirety in computations under 
     this section shall be eligible for matching with Federal 
     funds appropriated in any year.''; and
       (2) in subsection (c), by striking paragraph (1) and 
     inserting in lieu thereof the following:
       ``(1) Funds in the trust funds described in subsections (a) 
     and (b) shall be invested under the same conditions and 
     limitations as are in section 331 of the Higher Education 
     Act, and the regulations implementing such provisions in 
     effect at the time such funds are invested.''.
     --Page 738, line 8, insert the following:

     ``SEC. 9104. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS 
                   OPERATED SCHOOLS.

       ``For purposes of any competitive program under this Act, 
     the Bureau of Indian Affairs may apply on behalf of the 
     schools which it operates and it shall be subject to all 
     program and application requirements of the program for which 
     it applies.''.
     --Page 486, strike line 24 and all that follows through page 
     487, line 21 and insert the following:
       ``(f)(1)(A) The Secretary shall conduct a monitoring and 
     evaluation review of a sampling of the recipients of grants 
     under this part each fiscal year, such sampling to take into 
     account size of the recipient and geographic location. The 
     purpose of the sampling shall be to provide the Secretary 
     with such information as is necessary to assist the Secretary 
     in carrying out his or her responsibility to provide 
     technical assistance under this part.''.
     --Page 491, strike line 13 and all that follows through page 
     500, line 2, and insert the following:

     ``SEC. 6201. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR 
                   INDIAN CHILDREN.

       ``(a) Purpose; Coordination.--(1) It is the purpose of this 
     section to support projects that are to develop, text, and 
     demonstrate the effectiveness of services and programs to 
     improve educational opportunities and achievement of Indian 
     children.
       ``(2) The Secretary shall take such steps as are necessary 
     to achieve coordination of projects funded under this part 
     with other programs funded under this Act and with other 
     Federal programs operated for the benefit of American Indian 
     and Alaska Native children.
       ``(b) Eligible Applicants.--State educational agencies, 
     local educational agencies, Indian tribes, Indian 
     organizations, federally supported elementary and secondary 
     schools for Indian students, Indian institutions, including 
     Indian institutions of higher education, and consortia 
     thereof may apply for grants under this section.
       ``(c) Authorized Projects and Activities.--Recipients of 
     grants under this section shall use the grant funds to carry 
     out projects and activities that meet the purpose of this 
     section, such as--
       ``(1) innovative programs related to the educational needs 
     of educationally deprived children;
       ``(2) educational services 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 curriculum areas of English, mathematics, 
     science, foreign languages, art, history, and geography;
       ``(3) bilingual and bicultural programs and projects;
       ``(4) special health and nutrition services, and other 
     related activities, which meet the special health, social, 
     and psychological problems of Indian children;
       ``(5) 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 high 
     school graduation;
       ``(6) comprehensive guidance, counseling, and testing 
     services;
       ``(7) early childhood and kindergarten programs, including 
     family based preschool programs that emphasize school 
     readiness and parental skills, and services to Indian 
     children with disabilities;
       ``(8) partnership projects between local educational 
     agencies and institutions of higher education that allow high 
     school students to enroll in courses at the postsecondary 
     level to aid them in the transition from high school to 
     postsecondary education;
       ``(9) partnership projects between schools and local 
     businesses for school-to-work transition programs designed to 
     provide Indian youth with the knowledge and skills they need 
     to make an effective transition from school to a first job in 
     a high-skill, high-wage career;
       ``(10) programs designed to encourage and assist Indian 
     student to work toward, and gain entrance into, institutions 
     of higher education; and
       ``(11) other services which meet the needs of this section.
     Preservice or in-service training of professional and 
     paraprofessional personnel may be a part of any program 
     authorized under this section.
       ``(d) Grants and Applications.--
       ``(1) Grants.--(A) The Secretary may make grants under this 
     section for up to 5 years. Grants may be made for the 
     planning, development, pilot operation, or demonstration of 
     any activity authorized under this section, with priority 
     given to those applications which present a plan for 
     combining 2 or more of these operations over a multiyear 
     period. The Secretary shall make such multiyear grants 
     subject to the conditions included below and shall provide 
     continuation funding for each fiscal year upon a positive 
     determination that the applicant has made substantial 
     progress in carrying out the operations covered under each 
     grant period, as set forth in the initial grant and any 
     subsequent modifications.'
       ``(B) The Secretary is also authorized to make 
     dissemination grants. Prior to making any such dissemination 
     grant, the Secretary shall make a finding that the material 
     or program to be disseminated has been adequately reviewed 
     and has shown (i) educational merit, and (ii) an ability to 
     be replicated.
       ``(2) Applications.--(A) 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) Each application 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 project for which 
     assistance is sought;
       ``(ii) as assurance that the applicant will participate, at 
     the request of the Secretary, in any national evaluation of 
     projects under this section; and
       ``(iii) such other assurances and information as the 
     Secretary may reasonably require.

     ``SEC. 6202. PROFESSIONAL DEVELOPMENT.

       ``(a) Purpose.--The purpose of this section is to increase 
     the number of qualified Indian persons in professions serving 
     Indian people, and to provide training as teachers, 
     administrators, teacher aides, social workers, and ancillary 
     educational personnel, and to improve the skills of those 
     presently serving in these capacities.
       ``(b) Eligible Applicants.--Eligible applicants under this 
     section are--
       ``(1) institutions of higher education, including Indian 
     institutions of higher education;
       ``(2) State and local educational agencies, in consortium 
     with institutions of higher education; and
       ``(3) Indian tribes and organizations, in consortium with 
     institutions of higher education.
       ``(c) Authorized Projects and Activities.--(1) Each 
     recipient of a grant under this section shall use the grant 
     funds to provide support and training for Indian persons, 
     consistent with the purposes of this section. Such activities 
     may include, but are not limited to, a continuing program, 
     symposia, workshops, conferences, and direct financial 
     support.
       ``(2)(A) For education personnel, such training may be in-
     service or preservice.
       ``(B) For those being trained in other fields, such 
     training shall be in programs that result in graduate 
     degrees.
       ``(3) In programs funded under this section, preference 
     shall be given to the training of Indians.
       ``(4) In making grants under this section, the Secretary 
     shall consider prior performance and may not limit 
     eligibility on the basis of the number of previous grants or 
     the length of time for which the applicant has received 
     grants.
       ``(d) Project Period.--The project period for each project 
     approved under this section shall be up to 5 years.
       ``(e) Service Obligation.--The Secretary shall, by 
     regulation, require that individuals who receive training 
     under this section perform related work which benefits Indian 
     people or repay all or a prorated part of the support 
     received. The Secretary shall establish by regulation a 
     mechanism for having the recipient provide information of 
     compliance with this requirement beginning within 12 months 
     of the completion of training received.''.
     --Page 501, strike line 21 and all that follows through page 
     502, line 2 and insert the following:
       ``(e) Service Obligation.--The Secretary shall, by 
     regulation, require that individuals who receive financial 
     assistance under this section perform related work which 
     benefits Indian people or repay all or a prorated part of the 
     support received. The Secretary shall establish by regulation 
     a mechanism for having the recipient provide information of 
     compliance with this requirement beginning within 12 months 
     of the completion of training received.''.
     --Page 507, strike line 19 and all that follows through page 
     509, line 2.
     --Page 411, line 13, strike ``5004(a)(1)'' and insert 
     ``4004(a)(1)''.
     --Page 412, line 2, strike ``5202'' and insert ``4202''.
     --Page 412, line 5, strike ``5106(a)'' and insert 
     ``4106(a)''.
     --Page 413, line 11, strike ``5101'' and insert ``4101''.
     --Page 413, line 17, strike ``5101'' and insert ``4101''.
     --Page 414, line 21, strike ``5104'' and insert ``4104''.
     --Page 414, line 25, strike ``5106(a)'' and insert 
     ``4106(a)''.
     --Page 415, line 5, strike ``5103(a)'' and insert 
     ``4103(a)''.
     --Page 415, line 16, strike ``5105'' and insert ``4105''.
     --Page 415, line 19, strike ``5103(b)'' and insert 
     ``4103(b)''.
     --Page 416, line 2, strike ``5103(d)(2)(A)(i)(II)'' and 
     insert ``4103(d)(2)(A)(i)(II)''.
     --Page 416, line 25, strike ``5101'' and insert ``4101''.
     --Page 417, line 6, strike ``5121'' and insert ``4121''.
     --Page 417, line 11, strike ``5101'' and insert ``4101''.
     --Page 417, line 19, strike ``5122'' and insert ``4122''.
     --Page 421, line 19, strike ``5104'' and insert ``4104''.
     --Page 422, line 24, strike ``5103(d)'' and insert 
     ``4103(d)''.
     --Page 424, line 24, strike ``5102'' and insert ``4102''.
     --Page 425, line 15, strike ``5103(d)(2)(A)(i)(I)'' and 
     insert ``4103(d)(2)(A)(i)(I)''.
     --Page 425, line 16, strike ``5103(d)(2)(A)(i)(II)'' and 
     insert ``4103(d)(2)(A)(i)(II)''.
     --Page 426, line 12, strike ``5102'' and insert ``4102''.
     --Page 432, line 5, strike ``5122'' and insert ``4122''.
     --Page 434, line 10, strike ``5103(b)'' and insert 
     ``4103(b)''.
     --Page 434, line 11, strike ``5103(d)'' and insert 
     ``4103(d)''.
     --Page 435, line 9, strike ``5004(a)(2)'' and insert 
     ``4004(a)(2)''.
     --Page 437, line 2, strike ``5106(a)'' and insert 
     ``4106(a)''.
     --Page 438, line 9, strike ``5101(a)(3)'' and insert 
     ``4101(a)(3)''.
     --Page 311, strike line 20 and insert the following:

            PART E--INNOVATIVE EDUCATION PROGRAM STRATEGIES

     --Page 313, after line 19, insert the following:

     SEC. 2403. DEFINITION.

       For the purposes of this part the term ``effective schools 
     programs'' means school-based programs that may encompass 
     preschool through secondary school levels and that have the 
     objectives of (1) promoting school-level planning, 
     instructional improvement, and staff development, (2) 
     increasing the academic achievement levels of all children 
     and particularly educationally deprived children, and (3) 
     achieving as ongoing conditions in the school the following 
     factors identified through effective schools research as 
     distinguishing effective from ineffective schools:
       (1) strong and effective administrative and instructional 
     leadership that creates consensus on instructional goals and 
     organizational capacity for instructional problem solving;
       (2) emphasis on the acquisition of basic and higher order 
     skills;
       (3) a safe and orderly school environment that allows 
     teachers and pupils to focus their energies on academic 
     achievement;
       (4) a climate of expectation that virtually all children 
     can learn under appropriate conditions; and
       (5) continuous assessment of students and programs to 
     evaluate the effects of instruction.
     --Page 318, line 11, after ``activities'' insert ``including 
     effective schools programs''.
     --Page 319, after line 5, insert the following (and 
     redesignate any subsequent paragraphs accordingly):
       ``(3) sets forth the allocation of such funds required to 
     implement section 2252.
     --Page 320, line 24, insert ``effective schools and'' after 
     ``including''.
     --Page 321, line 19, insert ``(A)'' after ``(1)''.
     --Page 321, after line 25, insert the following:
       ``(B) sets forth the allocation of such funds required to 
     implement section 2252;
     --Page 322, after line 4, insert the following (and 
     redesignate any subsequent paragraphs accordingly):
       ``(3) provides assurances of compliance with the provisions 
     of this part, including the participation of children 
     enrolled in private, nonprofit schools in accordance with 
     section 2252;
     --Page 327, after line 14, insert the following:

             ``Subpart 5--General Administrative Provisions

     ``SEC. 2451. MAINTENANCE OF EFFORT; FEDERAL FUNDS 
                   SUPPLEMENTARY.

       ``(a) Maintenance of Effort.--(1) Except as provided in 
     paragraph (2), a State is entitled to receive its full 
     allocation of funds under this part 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 preceding fiscal year was not less than 90 percent of 
     such combined fiscal effort or aggregate expenditures for the 
     second preceding fiscal year.
       ``(2) The Secretary shall reduce the amount of the 
     allocation of funds under this part 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) 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.
       ``(b) Federal Funds Supplementary.--A State or local 
     educational agency may use and allocate funds received under 
     this part 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 part, 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. 2252. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       ``(a) Participation on Equitable Basis.--(1) 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 part or which serves the area in which a 
     program or project assisted under this part 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 reserved 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 part.
       ``(2) If no program or project is carried out under 
     subsection (a)(1) of this section 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 that district are provided with services and 
     materials to the extent that would have occurred if the local 
     educational agency had received funds under this part.
       ``(3) 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 part 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 part 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 part 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) The control of funds provided under this 
     part, and title to materials, equipment, and property 
     repaired, remodeled, or constructed therewith, shall be in a 
     public agency for the uses and purposes provided in this 
     part, and a public agency shall administer such funds and 
     property.
       ``(2) The provision of services pursuant to this section 
     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 part 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 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) 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 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) 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 part.
       ``(h) Review.--(1) 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 at least 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) If a State or local educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under paragraph (1) of this subsection, it 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. A copy 
     of the petition shall be forthwith 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) 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 thereupon 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) Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it 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 the Education Consolidation and 
     Improvement Act of 1981 shall, to the extent consistent with 
     the purposes of this chapter, apply to programs under this 
     chapter.

     ``SEC. 2253. EVALUATIONS AND REPORTING.

       ``(a) Local Educational Agencies.--A local educational 
     agency which receives financial assistance under this part 
     shall report annually to the State educational agency on the 
     use of funds under section 2431. Such reporting shall be 
     carried out in a manner which minimizes the amount of 
     paperwork required while providing the State educational 
     agency with the necessary information under the preceding 
     sentence. Such report shall be made available to the public.
       ``(b) State Educational Agencies.--A State educational 
     agency which receives financial assistance under this part 
     shall evaluate the effectiveness of State and local programs 
     under this part in accordance with section 2423(a)(2)(B). 
     That evaluation shall be submitted for review and comment by 
     the State advisory committee and shall be made available to 
     the public. The State educational agency shall submit to the 
     Secretary a copy of the evaluation and a summary of the 
     reports under subsection (a).
       ``(c) Reports.--(1) The Secretary, in consultation with 
     State and local educational agency representatives, shall 
     develop a model system which State educational agencies may 
     use for data collection and reporting under this part.
       ``(2)(A) The Secretary shall submit annually a report to 
     the Congress for the use of funds, the types of services 
     furnished, and the students served under this part.
       ``(B) The Secretary shall not later than October 1, 1998, 
     submit a report to the Congress summarizing evaluations under 
     subsection (b) in order to provide a national overview of the 
     uses of funds and effectiveness of programs under this part.

     ``SEC. 2254. FEDERAL ADMINISTRATION.

       ``(a) Technical Assistance.--The Secretary, upon request, 
     shall provide technical assistance to State and local 
     educational agencies under this part.
       (b) Rulemaking.--The Secretary shall issue regulations 
     under this part only to the extent that such regulations are 
     necessary to ensure that there is compliance with the 
     specific requirements and assurances required by this part.
       (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 part 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.

     ``SEC. 2255. APPLICATION OF GENERAL EDUCATION PROVISIONS ACT.

       ``(a) General Rule.--Except as otherwise specifically 
     provided by this section, the General Education Provisions 
     Act shall apply to the programs authorized by this part.
       ``(b) Applicability.--The following provisions of the 
     General Education Provisions Act shall be superseded by the 
     specified provisions of this part with respect to the 
     programs authorized by this part:
       ``(1) Section 410(a)(1) of the General Education Provisions 
     Act is superseded by section 2254(b) of this part.
       ``(2) Section 433(a) of such Act is superseded by section 
     2254(a) of this part.
       ``(3) Section 436 of such Act is superseded by sections 
     2223 and 2233 of this part.
       ``(c) Special Rule.--Sections 440, 441, and 442 of the 
     General Education Provisions Act, except to the extent that 
     such sections relate to fiscal control and fund accounting 
     procedures, may not apply to the programs authorized by this 
     part and shall not be construed to authorize the Secretary to 
     require any reports or take any actions not specifically 
     authorized by this part.''.
     --Page 82, line 16; insert ``basic'' following instructional.
     --Page 82, section 1122(c)(2) is amended by inserting after 
     subparagraph (A) the following new subparagraph and 
     redesignating the succeeding subparagraphs and paragraph (2) 
     accordingly:
       ``(B) for the purpose of subparagraph (A), in the 
     determination of expenditures per pupil from state and local 
     funds or instructional salaries per pupil from state and 
     local funds, staff salary differentials for years of 
     employment shall not be included.''
     --On page 855, after line 17, insert the following new 
     paragraph:
       ``(9) A state and local educational agency shall coordinate 
     with state and local housing agencies responsible for 
     developing the comprehensive housing affordability strategy. 
     Consideration shall be given to state and local housing and 
     shelter policies described in the Comprehensive Housing 
     Affordability Strategy to minimize educational disruption for 
     children who become homeless.
     --Page 852, line 24, delete ``, to the extent possible,''.
     --Page 852, line 25, after ``selection'' add ``unless there 
     is a compelling reason for not complying with this 
     request.''.
     --Page 37, after line 19 insert the following new paragraph:
       ``(9) how the state will coordinate activities funded under 
     this part with school-to-work and vocational education 
     programs, as appropriate.
     --Page 56, line 4, after ``development,'' insert 
     ``occupational information.''.
     --Page 681, line 25, strike ``$40,000,000'' and insert in 
     lieu thereof ``$50,000,000''.
     --Page 682, line 9, strike ``shall'' and insert in lieu 
     thereof ``may''.
     --Page 683, line 6, strike ``section'' and insert in lieu 
     thereof ``sections''.
     --Page 683, line 7, after ``7601'' insert ``and 7607''.
     --Page 683, line 14, insert a new paragraph (3) and 
     redesignate accordingly:
       ``(3) provide an assurance that local educational agencies 
     receiving funds under this part will coordinate the use of 
     such funds with programs funded under other Parts of this 
     title or title I of the Improving America's Schools Act of 
     1993;''
     --Page 685, line 17, insert:
       ``(b) Application Review.--The Secretary shall review all 
     applications submitted pursuant to this section by State 
     educational agencies.
       (1) The Secretary shall approve any application submitted 
     by a State educational agency that meets the requirements of 
     this section.
       (2) 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 reasonable notice, 
     provision of technical assistance, and an opportunity for a 
     hearing to the State.
     --Page 687, line 21, strike ``TRIENNIAL'' and insert in lieu 
     thereof ``BIENNIAL''.
     --Page 687, line 23, ``3'' and insert in lieu thereof ``2''.
     --Page 688, line 4, strike ``3'' and insert in lieu thereof 
     ``2''.
     --Page 459, Line 14, strike ``Special Assistant of the Office 
     of Women's Equity'' and insert in lieu thereof: 
     ``Secretary''.
     --Page 465, Line 6, strike ``no more than four''.
     --Page 465, Line 11, strike ``four''.
     --Page 465, Line 12, insert before ``The Secretary'' ``To the 
     extent feasible''.
     --Page 466, strike lines 6 through 9.
     --Page 466, Line 10, before ``The Secretary'' insert ``To the 
     extent feasible''.
     --Page 469, beginning on line 16, strike ``the Secretary 
     shall establish no more than 4 priorities'' and on line 17, 
     strike ``of which''.
     --Page 469, Line 21, before ``The Secretary'' insert ``To the 
     extent feasible,''.
     --Page 829, Line 2 after ``technical assistance,'' insert 
     ``and'' and on Line 3 strike ``and the administration of 
     grant programs.
     --Page 829, beginning on Line 5, after ``shall'' strike 
     ``report directly to the Secretary; and perform such 
     additional functions as the Secretary shall prescribe; and 
     insert in lieu thereof ``advise the Secretary and Deputy 
     Secretary on all matter relating to gender equity.''
     --Page 439, line 5, Strike, ``the use of tobacco''.
     --Page 439, line 9 Insert the following paragraph and 
     (redesignate succeeding paragraphs accordingly):
       (B) education with respect to the use of tobacco by 
     elementary and secondary school students; and
     --Page 297, line 4, strike ``and schools'' and insert 
     ``schools, and other appropriate educational entities''.
     --Page 297, line 11, strike ``comprehensive assistance 
     centers'' and insert ``technical assistance system''.
     --Page 298, line 24, strike ``system of technical assistance 
     centers'' and insert ``comprehensive assistance centers and 
     the National Diffusion Network''.
     --Page 299, line 3, strike ``(c)'' and insert ``(d)''.
     --Page 299, line 6, strike ``2206(c)'' and insert 
     ``2346(d)''.
     --Page 301, line 12, after ``centers,'' insert ``state 
     literacy centers,''.
     --Page 302, line 4, strike ``2303(a)'' and insert 
     ``2343(a)''.
     --Page 304, line 16, strike ``Maintenance of Service'' and 
     insert ``Service and Application Requirements''.
     --Page 304, line 17, strike ``Effort'' and insert 
     ``Service''.
     --Page 307, line 16, strike ``Facilitator'' and insert 
     ``Facilitators''.
     --Page 307, line 20 strike ``and schools'' and insert 
     ``schools, family and adult literacy programs, and other 
     appropriate educational entities''.
     --Page 310, line 17, strike ``projects, local educational 
     agencies,'' and insert ``projects and to local educational 
     agencies''.
     --Page 689, strike line 20 and all that follows through line 
     4 on page 729 and insert the following:

     ``SEC. 8003. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
                   PROPERTY.

       ``(a) In General.--Where the Secretary, after consultation 
     with any local educational agency and with the appropriate 
     State educational agency, determines for a fiscal year ending 
     prior to October 1, 1999--
       ``(1) that the United States owns Federal property in the 
     local educational agency, and that such property--
       ``(A) has been acquired by the United States since 1938;
       ``(B) was not acquired by exchange for other Federal 
     property in the local educational agency which the United 
     States owned before 1939; and
       ``(C) had an assessed value (determined as of the time or 
     times when so acquired) aggregating 10 percent or more of the 
     assessed value of all real property in the local educational 
     agency (similarly determined as of the time or times when 
     such Federal property was so acquired); and
       ``(2) that such agency is not being substantially 
     compensated for the loss in revenue resulting from such 
     ownership by increases in revenue accruing to the agency from 
     the conduct of Federal activities with respect to such 
     Federal property,

     then such agency shall be paid the amount described in 
     subsection (b).
       ``(b) Amount.--
       ``(1) In general.--(A) The amount that a local educational 
     agency shall be paid under subsection (a) for a fiscal year 
     shall be calculated in accordance with paragraph (2), except 
     that such amount shall be reduced by the Secretary by an 
     amount equal to the amount of revenue, if any, that such 
     agency received from activities conducted on such property 
     during the previous fiscal year.
       ``(B) If funds appropriated under section 8013(a) are 
     insufficient to pay the amount determined under subparagraph 
     (A), the Secretary shall ratably reduce the payment to each 
     eligible local educational agency.
       ``(C) Notwithstanding any other provision of this 
     subsection, a local educational agency may not be paid an 
     amount under this section which exceeds the difference of--
       ``(i) the maximum amount that such agency is eligible to 
     receive for such fiscal year under section 8004(b)(1)(C); and
       ``(ii) the amount that such agency receives in such fiscal 
     year under section 8004(b)(2).
       ``(2) Application of current levied real property tax 
     rate.--In calculating the amount that a local educational 
     agency shall be paid for a fiscal year, the Secretary shall 
     apply the current levied real property tax rate for current 
     expenditures levied by fiscally independent local educational 
     agencies or imputed, for fiscally dependent local educational 
     agencies, to the current annually determined aggregate 
     assessed value of such acquired Federal property.
       ``(3) Determination of aggregate assessed value.--Such 
     aggregate assessed value of such acquired Federal property 
     shall be determined (on the basis of the highest and best use 
     of property adjacent to such acquired Federal property as of 
     the time such value is determined), and provided to the 
     Secretary, by the local official responsible for assessing 
     the value of real property located in the jurisdiction of 
     such local educational agency for the purpose of levying a 
     property tax.
       ``(c) Applicability to Tennessee Valley Authority Act.--For 
     the purposes of this section, any real property with respect 
     to which payments are being made under section 13 of the 
     Tennessee Valley Authority Act of 1933 shall not be regarded 
     as Federal property.
       ``(d) Ownership by United States.--The United States shall 
     be deemed to own Federal property for the purposes of this 
     Act, where--
       ``(1) prior to the transfer of Federal property, the United 
     States owned Federal property meeting the requirements of 
     subparagraphs (A), (B), and (C) of subsection (a)(1); and
       ``(2) the United States transfers a portion of the property 
     referred to in paragraph (1) to another nontaxable entity, 
     and the United States--
       ``(A) restricts some or any construction on such property;
       ``(B) requires that the property be used in perpetuity for 
     the public purposes for which it was conveyed;
       ``(C) requires the grantee of the property to report to the 
     Federal government (or its agent) containing information on 
     the use of the property;
       ``(D) except with the approval of the Federal government 
     (or its agent), prohibits the sale, lease, assignment, or 
     other disposal of the property unless such sale, lease, 
     assignment, or other disposal is to another eligible 
     government agency; and
       ``(E) reserves to the Federal government a right of 
     reversion at any time the Federal government (or its agent) 
     deems it necessary for the national defense.

     ``SEC. 8004. PAYMENTS FOR ELIGIBLE FEDERALLY-CONNECTED 
                   CHILDREN.

       ``(a) Computation of Payment.--
       ``(1) In general.--For the purpose of computing the amount 
     that a local educational agency is eligible to receive under 
     subsection (b), (d), or (f) for any fiscal year, the 
     Secretary shall determine the number of children who were in 
     average daily attendance in the schools of such agency, and 
     for whom such agency provided free public education, during 
     the preceding school year and who, while in attendance at 
     such schools--
       ``(A) resided on Federal property with a parent employed on 
     Federal property situated in whole or in part within the 
     boundaries of the school district of such agency;
       ``(B) resided on Federal property and had a parent on 
     active duty in the uniformed services (as defined in section 
     101 of title 37, United States Code);
       ``(C) resided on Indian lands;
       ``(D) had a parent on active duty in the uniformed services 
     (as defined by section 101 of title 37, United States Code) 
     but did not reside on Federal property; or
       ``(E) resided in low-rent housing.
       ``(2) Determination of weighted student units.--For 
     purposes of computing the basic support payment under 
     subsection (b), the Secretary shall calculate the total 
     number of weighted student units for a local educational 
     agency by adding together the results obtained by the 
     following computations:
       ``(A) Multiply the number of children described in 
     subparagraphs (A) and (B) of paragraph (1) by a factor of 
     1.0.
       ``(B) Multiply the number of children described in 
     paragraph (1)(C) by a factor of 1.25.
       ``(C) Multiply the number of children described in 
     subparagraphs (A) and (B) of paragraph (1) by a factor of .35 
     if the local educational agency has--
       ``(i) a number of such children described in such 
     subparagraphs which exceeds 6,500; and
       ``(ii) an average daily attendance for all children which 
     exceeds 100,000.
       ``(D) Multiply the number of children described in 
     subparagraphs (D) and (E) of paragraph (1) by a factor of 
     .20.
       ``(b) Basic Support Payments and Payments With Respect to 
     Fiscal Years in Which Insufficient Funds Are Appropriated.--
       ``(1) Basic support payments.--
       ``(A) In general.--From the amount appropriated under 
     section 8013(b) for a fiscal year, the Secretary is 
     authorized to make basic support payments to eligible local 
     educational agencies with children described under subsection 
     (a).
       ``(B) Eligibility.--A local educational agency shall be 
     entitled to receive a basic support payment under 
     subparagraph (A) for a fiscal year with respect to a number 
     of children determined under subsection (a) only if the 
     number of children so determined with respect to such agency 
     amounts to the lesser of--
       ``(i) at least 400 such children, or
       ``(ii) a number of such children which equals at least 3 
     percent of the total number of children who were in average 
     daily attendance, during such year, at the schools of such 
     agency and for whom such agency provided free public 
     education.
       ``(C) Maximum amount.--The maximum amount that a local 
     educational agency is eligible to receive under this 
     subsection for any fiscal year is the sum of the total 
     weighted student units, as computed under subsection (a)(2), 
     multiplied by--
       ``(i) the greater of--

       ``(I) one-half of the average per pupil expenditure of the 
     State in which the local educational agency is located for 
     the 3rd preceding fiscal year, or
       ``(II) one-half of the average per pupil expenditures of 
     all of the States for the 3rd preceding fiscal year;

       ``(ii) the comparable local contribution rate certified by 
     the State, as determined under regulations prescribed to 
     carry out the Act of September 30, 1950 (Public Law 874, 81st 
     Congress), as in effect on January 1, 1994; or
       ``(iii) the average per pupil expenditure of the State in 
     which the local educational agency is located, multiplied by 
     the local contribution percentage.
       ``(2) Payments with respect to fiscal years in which 
     insufficient funds are appropriated.--
       ``(A) In general.--For any fiscal year in which the sums 
     appropriated under section 8013(b) are insufficient to pay to 
     each local educational agency the full amount computed under 
     paragraph (1), the Secretary shall make payments based upon 
     the provisions of this paragraph.
       ``(B) Learning opportunity threshold payments.--(i) For 
     fiscal years described in subparagraph (A), the Secretary 
     shall compute a learning opportunity threshold payment 
     (hereinafter `threshold payment') by multiplying the amount 
     obtained under paragraph (1)(C) by the total percentage 
     obtained by adding--
       ``(I) the percentage of federally connected children for 
     each local educational agency determined by calculating the 
     fraction, the numerator of which is the total number of 
     children described under subsection (a)(1) and the 
     denominator of which is the total number of children in 
     average daily attendance at the schools served by such 
     agency; and
       ``(II) the percentage that funds under this paragraph 
     represent of the total budget of the local educational 
     agency, determined by calculating the fraction, the numerator 
     of which is the total amount of funds calculated for each 
     educational agency under this paragraph (not including 
     amounts received under subsection (f)), and the denominator 
     of which is the total current expenditures for such agency.
       ``(ii) Such total percentage used to calculate threshold 
     payments under paragraph (1) shall not exceed 100.
       ``(C) Ratable distribution.--For fiscal years described in 
     subparagraph (A), the Secretary shall make payments as a 
     ratable distribution based upon the computation made under 
     subparagraph (B).
       ``(c) Prior Year Data.--All calculations under this section 
     shall be based upon data for each local educational agency 
     from the fiscal year preceding the fiscal year for which the 
     agency is making application for payment.
       ``(d) Use of Funds for Children With Disabilities.--
       ``(1) In general.--From the amount appropriated under 
     section 8013(c) for a fiscal year, the Secretary shall pay to 
     each eligible local educational agency, on a pro rata basis, 
     the amounts determined by--
       ``(A) multiplying the number of children described in 
     subparagraphs (B) and (C) of subsection (a)(1) who are 
     eligible to receive services under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) by a 
     factor of 1.0; and
       ``(B) multiplying the number of children described in 
     subparagraph (D) of subsection (a)(1) who are eligible to 
     receive services under such Act by a factor of .5.
       ``(2) Use of funds.--A local educational agency that 
     receives funds under paragraph (1) shall use such funds to 
     provide a free appropriate public education to children 
     described in paragraph (1) in accordance with the Individuals 
     with Disabilities Education Act.
       ``(e) Hold-Harmless Amounts.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the total amount that the Secretary shall pay 
     to a local educational agency under subsections (b) and (f)--
       ``(A) for fiscal year 1995, shall not be less than 80 
     percent of the payment such agency received for fiscal year 
     1994 under section 3(a) of the Act of September 30 , 1950 
     (Public Law 81-874, 81st Congress), as in effect for fiscal 
     year 1994;
       ``(B) for fiscal year 1996, shall not be less than 60 
     percent of such payment received for fiscal year 1994; and
       ``(C) for fiscal year 1997, shall not be less than 40 
     percent of such payment received for fiscal year 1994.
       ``(2) Reduction in payments.--In order to make payments to 
     local educational agencies in accordance with paragraph (1), 
     the Secretary shall reduce payments to other local 
     educational agencies determined under subsection (b).
       ``(f) Additional Assistance for Heavily Impacted Local 
     Educational Agencies.--
       ``(1) In general.--From amounts appropriated under section 
     8013(d) for a fiscal year, the Secretary shall provide 
     additional assistance to meet special circumstances relating 
     to the provision of education in local educational agencies 
     eligible to receive assistance under this section.
       ``(2) Eligibility.--A local educational agency shall be 
     eligible to receive additional assistance under this 
     subsection only if such agency--
       ``(A)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 40 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 95 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State;
       ``(B)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 35 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 125 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State; or
       ``(C) is a local education agency whose boundaries are the 
     same as a Federal military installation or includes Federal 
     property under exclusive Federal jurisdiction.
       ``(3) Maximum payments.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall determine the maximum amount that a local 
     educational agency may receive under this subsection in 
     accordance with the following computations:
       ``(i) The Secretary shall first determine the greater of--

       ``(I) the average per pupil expenditure of the State in 
     which the local educational agency is located or the average 
     per pupil expenditure of all the States;
       ``(II) the average per pupil expenditure of generally 
     comparable school districts located in the State of the local 
     educational agency, as defined by the Secretary in 
     regulations; or
       ``(III) the average per pupil expenditure of three 
     generally comparable school districts located in the State of 
     the local educational agency, as defined by the Secretary in 
     regulations.

       ``(ii) The Secretary shall next subtract from the amount 
     determined under clause (i) the average amount of State aid 
     per pupil received by the local educational agency.
       ``(iii) The Secretary shall next multiply the amount 
     determined under clause (ii) by the sum of the total weighted 
     units of the local educational agency, as computed under 
     subsection (a)(2).
       ``(iv) If the tax rate of the local educational agency is 
     greater than 94 percent, but less than 100 percent, of the 
     tax rate of comparable school districts, the Secretary shall 
     next multiply the amount determined under clause (iii) by the 
     percentage that the tax rate of the local educational agency 
     is of--

       ``(I) the average tax rate of its generally comparable 
     school districts; or
       ``(II) the average tax rate of all the school districts in 
     the State in which the local educational agency is located.

       ``(v) The Secretary shall next subtract the total amount of 
     payments received by a local educational agency under 
     subsections (b) and (d) for a fiscal year from the amount 
     determined under clause (iii) or clause (iv), as the case may 
     be.
       ``(B) Special rule.--With respect to payments to local 
     educational agencies described in subparagraphs (B) and (C) 
     of paragraph (2), the maximum amount of such payments shall 
     be equal to the product of the average per pupil expenditure 
     of all the States multiplied by .7, except that such amount 
     may not exceed 125 percent of the average per pupil 
     expenditure of all local educational agencies in the State.
       ``(4) Current year data.--The Secretary shall, for purposes 
     of providing assistance under this subsection, use--
       ``(A) data from the fiscal year in which the local 
     educational agency is applying for assistance under this 
     subsection; or
       ``(B) the most recent data available which is adjusted to 
     such fiscal year.
       ``(5) Reduction in payments.--If funds appropriated to 
     carry out this subsection are insufficient to pay in full the 
     amounts determined under paragraph (3), the Secretary shall 
     ratably reduce the payment to each eligible local educational 
     agency.

     ``SEC. 8005. POLICIES AND PROCEDURES RELATING TO CHILDREN 
                   RESIDING ON INDIAN LANDS.

       ``(a) In General.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 shall establish policies 
     and procedures to ensure that--
       ``(1) such children participate in programs and activities 
     supported by such funds on an equal basis with all other 
     children;
       ``(2) parents of such children and Indian tribes are 
     afforded an opportunity to present their views on such 
     programs and activities, including an opportunity to make 
     recommendations on the needs of those children and how they 
     may help those children realize the benefits of those 
     programs and activities;
       ``(3) parents and Indian tribes are consulted and involved 
     in planning and developing such programs and activities;
       ``(4) relevant applications, evaluations, and program plans 
     are disseminated to the parents and Indian tribes; and
       ``(5) parents and Indian tribes are afforded an opportunity 
     to present their views on the agency's general educational 
     program to such agency.
       ``(b) Records.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 shall maintain records 
     demonstrating its compliance with requirements contained in 
     subsection (a).
       ``(c) Waiver.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 is excused from the 
     requirements contained in subsections (a) and (b) for any 
     year with respect to any Indian tribe from which it has 
     received a written statement that the agency need not comply 
     with those subsections because the tribe is satisfied with 
     the provision of educational services by such agency to such 
     children.
       ``(d) Technical Assistance and Enforcement.--The Secretary 
     shall--
       ``(1) provide technical assistance to local educational 
     agencies, parents, and Indian tribes to enable them to carry 
     out this section; and
       ``(2) enforce this section through such actions, which may 
     include the withholding of funds, as the Secretary determines 
     to be appropriate, after affording the affected local 
     educational agency, parents, and Indian tribe an opportunity 
     to present their views.

     ``SEC. 8006. APPLICATION FOR PAYMENTS UNDER SECTIONS 8003 AND 
                   8004.

       ``(a) In General.--A local educational agency desiring to 
     receive a payment under section 8003 or 8004 shall--
       ``(1) submit an application for such payment to the 
     Secretary; and
       ``(2) provide a copy of such application to the State 
     educational agency.
       ``(b) Contents.--Each such application shall be submitted 
     in such form and manner, and shall contain such information, 
     as the Secretary may require, including--
       ``(1) information to determine the eligibility of the local 
     educational agency for a payment and the amount of such 
     payment; and
       ``(2) where applicable, an assurance that such agency is in 
     compliance with section 8005 (relating to children residing 
     on Indian lands).
       ``(c) Deadline for Submission.--The Secretary shall 
     establish deadlines for the submission of applications under 
     this section.
       ``(d) Approval.--
       ``(1) In general.--The Secretary shall approve an 
     application submitted under this section that--
       ``(A) is filed by the deadline established under subsection 
     (c); and
       ``(B) otherwise meets the requirements of this title.
       ``(2) Reduction in payment.--The Secretary shall approve an 
     application filed up to 60 days after a deadline established 
     under subsection (c) that otherwise meets the requirements of 
     this title, except that, notwithstanding section 8004(e), the 
     Secretary shall reduce the payment based on such late 
     application by 10 percent of the amount that would otherwise 
     be paid.
       ``(3) Late applications.--The Secretary shall not accept or 
     approve any application that is filed more than 60 days after 
     a deadline established under subsection (c).

     ``SEC. 8007. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN 
                   ATTENDANCE OF MILITARY DEPENDENTS.

       ``(a) Eligibility.--A local educational agency is eligible 
     for a payment under this section if--
       ``(1) the number of children in average daily attendance 
     during the current school year is at least ten percent or 100 
     more than the number of children in average daily attendance 
     in the preceding school year; and
       ``(2) the number of children in average daily attendance 
     with a parent on active duty (as defined in section 101(18) 
     of title 37, United States Code) in the Armed Forces who are 
     in attendance at such agency because of the assignment of 
     their parent to a new duty station between July 1 and 
     September 30, inclusive, of the current year, as certified by 
     an appropriate local official of the Department of Defense, 
     is at least ten percent or 100 more than the number of 
     children in average daily attendance in the preceding school 
     year.
       ``(b) Application.--A local educational agency that wishes 
     to receive a payment under this section shall file an 
     application with the Secretary by October 15 of the current 
     school year, in such manner and containing such information 
     as the Secretary may prescribe, including information 
     demonstrating that it is eligible for such a payment.
       ``(c) Children To Be Counted.--For each eligible local 
     educational agency that applies for a payment under this 
     section, the Secretary shall determine the lesser of--
       ``(1) the increase in the number of children in average 
     daily attendance from the preceding year; and
       ``(2) the number of children described in subsection 
     (a)(2).
       ``(d) Payments.--From the amount appropriated for a fiscal 
     year under section 8013(c), the Secretary shall pay each 
     local educational agency with an approved application an 
     amount, not to exceed $200 per eligible child, equal to--
       ``(1) the amount available to carry out this section, 
     including any funds carried over from prior years, divided by 
     the number of children determined under subsection (c) for 
     all such local educational agencies; multiplied by
       ``(2) the number of such children determined for that local 
     educational agency.
       ``(e) Notification Process.--
       ``(1) Establishment.--The Secretary shall endeavor to 
     establish, with the Secretary of Defense, a notification 
     process relating to the closure of Department of Defense 
     facilities, or the adjustment of personnel levels assigned to 
     such facilities, which may substantially affect the student 
     enrollment levels of local educational agencies which receive 
     or may receive payments under this title.
       ``(2) Information.--Such process shall provide timely 
     information regarding such closures and such adjustments--
       ``(A) by the Secretary of Defense to the Secretary; and
       ``(B) by the Secretary to the affected local educational 
     agencies.

     ``SEC. 8008. FACILITIES.

       ``(a) Current Facilities.--From the amount appropriated for 
     any fiscal year under section 8013(e), the Secretary may 
     continue to provide assistance for school facilities that 
     were supported by the Secretary under section 10 of the Act 
     of September 23, 1950 (Public Law 815, 81st Congress; 20 
     U.S.C. 640) as in effect prior to the date of the enactment 
     of the Improving America's Schools Act of 1994.
       ``(b) Transfer of Facilities.--
       ``(1) In general.--The Secretary shall, as soon as 
     practicable, transfer to the appropriate local educational 
     agency or another appropriate entity all the right, title, 
     and interest of the United States in and to each facility 
     provided under section 10 of the Act of September 23, 1950 
     (Public Law 815, 81st Congress; 20 U.S.C. 640), or under 
     section 204 or 310 of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress), as in effect on January 1, 1958.
       ``(2) Other requirements.--Any such transfer shall be 
     without charge to such agency or entity, and prior to such 
     transfer, the transfer must be consented to by the local 
     education agency or other appropriate entity, and may be made 
     on such terms and conditions as the Secretary deems 
     appropriate to carry out the purposes of this Act.

     ``SEC. 8009. STATE CONSIDERATION OF PAYMENTS IN PROVIDING 
                   STATE AID.

       ``(a) General Prohibition.--Except as provided in 
     subsection (b), a State may not--
       ``(1) consider payments under this title or under the Act 
     of September 30, 1950 (Public Law 874, 81st Congress) in 
     determining for any fiscal year--
       ``(A) the eligibility of a local educational agency for 
     State aid for free public education; or
       ``(B) the amount of such aid; or
       ``(2) make such aid available to local educational agencies 
     in a manner that results in less State aid to any local 
     educational agency that is eligible for such payment than it 
     would receive if it were not so eligible.
       ``(b) State Equalization Plans.--
       ``(1) In general.--A State may reduce State aid to a local 
     educational agency that receives a payment under sections 
     8003 and 8004(b) (except the amount calculated in excess of 
     1.0 under subparagraph (B) of subsection (a)(2)) or under the 
     Act of September 30, 1950 (Public Law 874, 81st Congress) as 
     such Act existed prior to the enactment of the Improving 
     America's Schools Act of 1994 (other than an increase in 
     payments described in paragraphs (2)(B), (2)(C), (2)(D), or 
     (3)(B)(ii) of section 3(d) of such Act of September 30, 1950) 
     for any fiscal year if the Secretary determines, and 
     certifies under subsection (c)(3)(A), that such State has in 
     effect a program of State aid that equalizes expenditures for 
     free public education among local educational agencies in 
     such State.
       ``(2) Computation.--
       ``(A) In general.--For purposes of paragraph (1), a program 
     of State aid equalizes expenditures among local educational 
     agencies if, in the second preceding fiscal year, the amount 
     of per-pupil expenditures made by, or per-pupil revenues 
     available to, the local educational agency in the State with 
     the highest such per-pupil expenditures or revenues did not 
     exceed the amount of such per-pupil expenditures made by, or 
     per-pupil revenues available to, the local educational agency 
     in the State with the lowest such expenditures or revenues by 
     more than 10 percent.
       ``(B) Other factors.--In making a determination under this 
     subsection, the Secretary shall--
       ``(i) disregard local educational agencies with per-pupil 
     expenditures or revenues above the 95th percentile or below 
     the 5th percentile of such expenditures or revenues in the 
     State; and
       ``(ii) take into account the extent to which a program of 
     State aid reflects the additional cost of providing free 
     public education in particular types of local educational 
     agencies, such as those that are geographically isolated, or 
     to particular types of students, such as children with 
     disabilities.
       ``(3) Exception.--Notwithstanding paragraph (2), if the 
     Secretary determines that the State has substantially revised 
     its program of State aid, the Secretary may certify such 
     program for any fiscal year only if--
       ``(A) the Secretary determines, on the basis of projected 
     data, that the State's program will meet the 10 percent 
     disparity standard described in paragraph (2) in that fiscal 
     year; and
       ``(B) the State provides an assurance to the Secretary 
     that, if final data do not demonstrate that the State's 
     program met such standard for that year (or that it met such 
     standard with a greater percentage of disparity than 
     anticipated), the State will pay to each affected local 
     educational agency the amount by which it reduced State aid 
     to the local educational agency on the basis of such 
     certification, or a proportionate share thereof, as the case 
     may be.
       ``(c) Procedures for Review of State Equalization Plans.--
       ``(1) Written notice.--
       ``(A) In general.--Any State that wishes to consider 
     payments described in subsection (b)(1) in providing State 
     aid to local educational agencies shall submit to the 
     Secretary, not later than 120 days before the beginning of 
     the State's fiscal year, a written notice of its intention to 
     do so.
       ``(B) Contents.--Such notice shall be in the form and 
     contain the information the Secretary requires, including 
     evidence that the State has notified each local educational 
     agency in the State of its intention to consider such 
     payments in providing State aid.
       ``(2) Opportunity to present views.--Before making a 
     determination under subsection (b), the Secretary shall 
     afford the State, and local educational agencies in the 
     State, an opportunity to present their views.
       ``(3) Qualification procedures.--If the Secretary 
     determines that a program of State aid qualifies under 
     subsection (b), the Secretary shall--
       ``(A) certify the program and so notify the State; and
       ``(B) afford an opportunity for a hearing, in accordance 
     with section 8011(a), to any local educational agency 
     adversely affected by such certification.
       ``(4) Non-qualification procedures.--If the Secretary 
     determines that a program of State aid does not qualify under 
     subsection (b), the Secretary shall--
       ``(A) so notify the State; and
       ``(B) afford an opportunity for a hearing, in accordance 
     with section 8011(a), to the State, and to any local 
     educational agency adversely affected by such determination.
       ``(d) Reductions of State Aid.--
       ``(1) In general.--A State whose program of State aid has 
     been certified by the Secretary under subsection (c)(3) may 
     reduce the amount of such aid provided to a local educational 
     agency that receives a payment under section 8003 and section 
     8004(b) by any amount up to--
       ``(A) the amount of such payment (excluding amounts 
     provided under subsections (d) and (f) of section 8004 and 
     the amount calculated in excess of 1.0 under section 
     8004(a)(2)); multiplied by
       ``(B) 100 percent minus the percentage of disparity 
     determined under subsection (b).
       ``(2) Prohibition.--A State may not make a reduction 
     described in paragraph (1) before its program of State aid 
     has been certified by the Secretary under subsection (c)(3).
       ``(e) Remedies for State Violations.--
       ``(1) In general.--The Secretary or any aggrieved local 
     educational agency may, without exhausting administrative 
     remedies, bring an action in a United States district court 
     against any State that violates subsection (a) or subsection 
     (d)(2) or fails to carry out an assurance provided under 
     subsection (b)(3)(B).
       ``(2) Immunity.--A State shall not be immune under the 
     eleventh amendment to the Constitution of the United States 
     from an action described in paragraph (1).
       ``(3) Relief.--The court shall grant such relief as it 
     determines is appropriate, which may include attorney's fees 
     to a prevailing local educational agency.

     ``SEC. 8010. FEDERAL ADMINISTRATION.

       ``(a) Payments in Whole Dollar Amounts--The Secretary shall 
     round any payments under this title to the nearest whole 
     dollar amount.
       ``(b) Other Agencies.--Each Federal agency administering 
     Federal property on which children reside, and each agency 
     principally responsible for an activity that may occasion 
     assistance under this title, shall, to the maximum extent 
     practicable, comply with requests of the Secretary for 
     information the Secretary may require to carry out this 
     title.

     ``SEC. 8011. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

       ``(a) Administrative Hearings.--A local educational agency 
     and a State that is adversely affected by any action of the 
     Secretary under this title shall be entitled to a hearing on 
     such action in the same manner as if such agency were a 
     person under chapter 5 of title 5, United States Code.
       ``(b) Judicial Review of Secretarial Action.--
       ``(1) In general.--A local educational agency or a State 
     aggrieved by the Secretary's final decision following an 
     agency proceeding under subsection (a) may, within 60 days 
     after receiving notice of such decision, file with the United 
     States court of appeals for the circuit in which such agency 
     or State is located a petition for review of that action. The 
     clerk of the court shall promptly transmit a copy of the 
     petition to the Secretary. The Secretary shall then file in 
     the court the record of the proceedings on which the 
     Secretary's action was based, as provided in section 2112 of 
     title 28, United States Code.
       ``(2) Findings of fact.--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. The 
     Secretary may thereupon 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.
       ``(3) Review.--The court shall have exclusive jurisdiction 
     to affirm the action of the Secretary or to set it 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.

     ``SEC. 8012. DEFINITIONS.

       ``For purposes of this title, the following definitions 
     apply:
       ``(1) Armed forces.--The term `Armed Forces' means the 
     Army, Navy, Air Force, and Marine Corps.
       ``(2) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' means--
       ``(A) the aggregate current expenditures of all local 
     educational agencies in the State; divided by
       ``(B) the total number of children in average daily 
     attendance for whom such agencies provided free public 
     education.
       ``(3) Construction.--The term `construction' means--
       ``(A) the preparation of drawings and specifications for 
     school facilities;
       ``(B) erecting, building, acquiring, altering, remodeling, 
     repairing, or extending school facilities;
       ``(C) inspecting and supervising the construction of school 
     facilities; and
       ``(D) debt service for such activities.
       ``(4) Federal property.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     through (F), the term `Federal property' means real property 
     that is not subject to taxation by any State or any political 
     subdivision of a State due to Federal agreement, law, or 
     policy, and that is--
       ``(i) owned by the United States or leased by the United 
     States from another entity;
       ``(ii)(I) held in trust by the United States for individual 
     Indians or Indian tribes;
       ``(II) held by individual Indians or Indian tribes subject 
     to restrictions on alienation imposed by the United States;
       ``(III) conveyed at any time under the Alaska Native Claims 
     Settlement Act (Public Law 92-203, 43 U.S.C. 1601 et seq.) to 
     a Native individual, Native group, or Village or Regional 
     corporation;
       ``(IV) public land owned by the United States that is 
     designated for the sole use and benefit of individual Indians 
     or Indian tribes; or
       ``(V) used for low-rent housing, as otherwise described in 
     this paragraph, that is located on land described in 
     subclause (I), (II), (III), or (IV) of this clause or on land 
     that met one of those descriptions immediately before its use 
     for such housing;
       ``(iii)(I) part of a low-rent housing project assisted 
     under the United States Housing Act of 1937; or
       ``(II) used to provide housing for homeless children at 
     closed military installations pursuant to section 501 of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411); or
       ``(iv) owned by a foreign government or by an international 
     organization.
       ``(B) Schools providing flight training to members of air 
     force.--The term `Federal property' includes, so long as not 
     subject to taxation by any State or any political subdivision 
     of a State, and whether or not that tax exemption is due to 
     Federal agreement, law, or policy, any school providing 
     flight training to members of the Air Force under contract 
     with the Air Force at an airport owned by a State or 
     political subdivision of a State.
       ``(C) Non-federal easements, leases, licenses, permits, 
     improvements, and certain other real property.--The term 
     `Federal property' includes, whether or not subject to 
     taxation by a State or a political subdivision of a State--
       ``(i) any non-Federal easement, lease, license, permit, or 
     other such interest in Federal property as otherwise 
     described in this paragraph, but not including any non-
     Federal fee-simple interest;
       ``(ii) any improvement on Federal property as otherwise 
     described in this paragraph; and
       ``(iii) real property that, immediately before its sale or 
     transfer to a non-Federal party, was owned by the United 
     States and otherwise qualified as Federal property described 
     in this paragraph, but only for one year beyond the end of 
     the fiscal year of such sale or transfer.
       ``(D) Certain postal service property and pipelines and 
     utility lines.--Notwithstanding any other provision of this 
     paragraph, the term `Federal property' does not include--
       ``(i) any real property under the jurisdiction of the 
     United States Postal Service that is used primarily for the 
     provision of postal services; or
       ``(ii) pipelines and utility lines.
       ``(E) Property with respect to which state or local tax 
     revenues may not be expended, allocated, or available for 
     free public education.--Notwithstanding any other provision 
     of this paragraph, `Federal property' does not include any 
     property on which children reside that is otherwise described 
     in this paragraph if--
       ``(i) no tax revenues of the State or of any political 
     subdivision of the State may be expended for the free public 
     education of children who reside on that Federal property; or
       ``(ii) no tax revenues of the State are allocated or 
     available for the free public education of such children.
       ``(F) Certain property located in state of oklahoma owned 
     by indian housing authority for low-income housing.--The term 
     `Federal property' includes any real property located in the 
     State of Oklahoma that--
       ``(i) is owned by an Indian housing authority and used for 
     low-income housing (including housing assisted under the 
     mutual help ownership opportunity program under section 202 
     of the United States Housing Act of 1937); and
       ``(ii) at any time--

       ``(I) was designated by treaty as tribal land; or
       ``(II) satisfied the definition of Federal property under 
     section 403(1)(A) of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress).

       ``(5) 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 or secondary education, as determined 
     under State law, except that, notwithstanding State law, such 
     term--
       ``(i) includes preschool education; and
       ``(ii) does not include any education provided beyond grade 
     12.
       ``(6) Indian lands.--The term `Indian lands' means any 
     Federal property described in paragraph (4)(A)(ii) or (4)(F).
       ``(7) Local contribution percentage.--
       ``(A) In general.--The term `local contribution percentage' 
     means the percentage of current expenditures in the State 
     derived from local and intermediate sources, as reported to 
     and verified by the National Center for Education Statistics.
       ``(B) Hawaii and district of columbia.--Notwithstanding 
     subparagraph (A), the local contribution percentage for 
     Hawaii and for the District of Columbia shall be the local 
     contribution percentage computed for the Nation as a whole.
       ``(8) Local educational agency.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `local educational agency'--
       ``(i) means a board of education or other legally 
     constituted local school authority having administrative 
     control and direction of free public education in a county, 
     township, independent school district, or other school 
     district; and
       ``(ii) includes any State agency that directly operates and 
     maintains facilities for providing free public education.
       ``(B) Exception.--The term `local educational agency' does 
     not include any agency or school authority that the Secretary 
     determines on a case-by-case basis--
       ``(i) was constituted or reconstituted primarily for the 
     purpose of receiving assistance under this title or the Act 
     of September 30, 1950 (Public Law 874, 81st Congress) or 
     increasing the amount of such assistance; or
       ``(ii) is not constituted or reconstituted for legitimate 
     educational purposes.
       ``(9) Low-rent housing.--The term `low-rent housing' means 
     housing located on property that is described in paragraph 
     (4)(A)(iii).
       ``(10) Revenue derived from local sources.--The term 
     `revenue derived from local sources' means--
       ``(A) revenue produced within the boundaries of a local 
     educational agency and available to such agency for its use; 
     or
       ``(B) funds collected by another governmental unit, but 
     distributed back to a local educational agency in the same 
     proportion as it was collected as a local revenue source.
       ``(11) School facilities.--The term `school facilities' 
     includes--
       ``(A) classrooms and related facilities; and
       ``(B) equipment, machinery, and utilities necessary or 
     appropriate for school purposes.

     ``SEC. 8013. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Payments for Federal Acquisition of Real Property.--
     For the purpose of making payments under section 8003, there 
     are authorized to be appropriated $16,750,000 for fiscal year 
     1995 and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.
       ``(b) Basic Payments.--For the purpose of making payments 
     under section 8004(a), there are authorized to be 
     appropriated $775,500,000 for fiscal year 1995 and such sums 
     as may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.
       ``(c) Payments for Children With Disabilities.--For the 
     purpose of making payments under section 8004(d), there are 
     authorized to be appropriated $45,000,000 for fiscal year 
     1995 and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.
       ``(d) Payments for Heavily Impacted Local Educational 
     Agencies.--
       ``(1) In general.--For the purpose of making payments under 
     section 8004(f), there are authorized to be appropriated 
     $42,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999.
       ``(2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.
     --Page 864, after line 4, insert the following:
       (a) Section 1.--Section 1 of the Act of September 23, 1950 
     (Public Law 815, 81st Congress; 20 U.S.C. 631) is amended--
       (1) by striking the 2nd sentence of subsection (a); and
       (2) by amending subsection (b) to read as follows:
       ``(b) There are authorized to be appropriated to carry out 
     this Act $12,500,000 for fiscal year 1995 and such sums as 
     may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.''.
     --Page 864, strike line 5 and all that follows through line 7 
     and insert the following:
       (b) Section 2.--Section 2 of such Act is amended to read as 
     follows:
     --Page 864, line 19, strike ``(b)'' and insert ``(c)''.
     --Page 866, line 3, strike ``(c)'' and insert ``(d)''.
     --Page 869, line 10, strike ``(d)'' and insert ``(e)''.
     --Page 901, strike lines 2 through 4 and insert the 
     following:
       Any authority or requirement to make funds available under 
     this Act shall be effective only to the extent provided in 
     appropriations acts.
           By Mr. LANCASTER:
     --On page 218, strike lines 10-18.
           By Mr. LEHMAN:
     --On page 218, line 18, insert the following new sentence:
       ``Nothing in this title shall be construed to authorize or 
     encourage federal involvement with or control over the 
     curriculum or practices of home schools.''
           By Ms. LONG:
     --Page 330, line 6, strike ``and''.
     --Page 330, line 7, insert the following (and redesignate any 
     subsequent subparagraphs accordingly):
       ``(M) The development and expansion of public-private 
     partnership programs which extend the learning experience, 
     via computers, beyond the classroom environment into student 
     homes.
     --Page 406, after line 18, insert the following:

                       Part J--Computer Education

     SEC. 3941. PURPOSE.

       It is the purpose of this part to award demonstration 
     grants to develop and expand public-private partnership 
     programs which extend the learning experience, via computers, 
     beyond the classroom environment in order to--
       (1) enhance learning by providing students with the 
     technological tools and guidance necessary to develop skills 
     critical to educational growth and success in the workplace, 
     including--
       (A) mastery of fundamental computer technology and 
     applications;
       (B) improved written and visual communication skills;
       (C) improved critical thinking and problem solving 
     abilities; and
       (D) improved ability to work in a collaborative, teamwork-
     driven environment;
       (2) encourage parental involvement in education and total 
     family use and understanding of computers and 
     telecommunications through at-home applications; and
       (3) established foundations for life-long learning through 
     improvement in education skills and student motivation and 
     attitudes.

     SEC. 3942. GRANT AUTHORIZATION.

       (a) Grant Program.--
       (1) In general.--The Secretary shall conduct a program of 
     awarding a grant to each of 3 States to enable such States to 
     create a computer-based education project for children in 
     grades 6 through 8 in accordance with the requirements of 
     section 3943.
       (2) Award basis.--The Secretary shall award grants under 
     this part on a competitive basis.
       (3) Preference.--In awarding grants under this part, the 
     Secretary shall give preference to applications--
       (A) from States that have a demonstrated ability or 
     commitment to computer-based technology education; and
       (B) describing projects that serve school districts which 
     serve a large number or percentage of economically 
     disadvantaged students.
       (b) Site Selection and Project Implementation.--Site 
     selection and implementation of the computer-based education 
     projects assisted under this part shall take place not later 
     than 9 months after the date of the enactment of this part.

     SEC. 3943. PROGRAM REQUIREMENTS.

       Each State receiving a grant to conduct a computer-based 
     education project under this part shall--
       (1) provide a continuous 3-year computer-based education 
     project to 2 consecutive groups of 6th, 7th, and 8th grade 
     school students during the period commencing with each such 
     group's entry into 6th grade and ending the summer following 
     each such group's completion of 8th grade;
       (2) ensure that each student in each of the classes 
     participating in the project shall participate in the 
     project;
       (3) conduct such project in not more than 7 public schools 
     within the State; and
       (4) ensure that each student participating in the project 
     shall have access to a computer--
       (A) at school during the school year; and
       (B) at home during the school year and summer.

     SEC. 3944. APPLICATIONS.

       (a) Application Required.--In order to receive a grant 
     under this part, the chief State school officer of a State 
     shall submit an application to the Secretary in such form and 
     containing such information as the Secretary may reasonably 
     require. Such application shall include an assurance from the 
     State educational agency that the State educational agency 
     has made every effort to match on a dollar-for-dollar basis 
     from private or public sources the funds received under this 
     part, except that no such application shall be penalized or 
     denied assistance under this part on the basis of the failure 
     to provide such matching funds.
       (b) Application Period.--States shall be eligible to submit 
     applications for assistance under this part during a 3-month 
     period determined by the Secretary.

     SEC. 3945. ALLOCATION OF FUNDS.

       Grant funds under this part shall be used to provide 
     hardware and software components to all sites, and training 
     for classroom teachers as well as parents, administrators and 
     technical personnel.

     SEC. 3946. EVALUATION.

       The Secretary shall evaluate the demonstration program 
     assisted under this part and shall report to the Congress 
     regarding the overall effectiveness of such program.

     SEC. 3947. DEFINITIONS.

       For the purpose of this part, the term ``State'' means each 
     of the 50 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.

     SEC. 3948. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $5,000,000 for 
     fiscal year 1993, $9,000,000 for fiscal year 1994, $7,000,000 
     for fiscal year 1995, and $4,000,000 for fiscal year 1996 to 
     carry out this part.
           By Mr. MACHTLEY:
     --Page 695, line 6, insert ``or employed on property under 
     the jurisdiction of the uniformed services'' after ``United 
     States Code)''.
           By Mr. MICHEL of Illinois:
     --Strike all after the enacting clause and insert the 
     following:

 TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

     SEC. 101. AMENDMENTS TO THE ELEMENTARY AND SECONDARY 
                   EDUCATION ACT OF 1965.

       The Elementary and Secondary Education Act of 1965 is 
     amended to read as follows:
                       ``SECTION 1. SHORT TITLE.
       ``This Act may be cited as the ``Elementary and Secondary 
     Education Act of 1965''.
        ``TITLE I--HELPING CHILDREN IN NEED MEET HIGH STANDARDS

     ``SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

       ``(a) Statement of Policy.--The Congress declares it to be 
     the policy of the United States that a high-quality education 
     for all citizens and a fair and equal opportunity to obtain 
     that education--
       ``(1) are a societal good necessary for creating a vibrant 
     future for our complex and diverse democracy and for meeting 
     the challenge of an internationally competitive economy;
       ``(2) are a private good because individual opportunity is 
     greatly enhanced by one's being well educated;
       ``(3) are a moral imperative in our society; simple justice 
     demands that the opportunity to acquire skills and knowledge 
     deemed necessary for basic citizenship and economic 
     opportunity be equally available to all; and
       ``(4) improve the life of every citizen, because the 
     quality of our individual lives ultimately depends on the 
     quality of the lives of others.
       ``(b) Recognition of Need.--The Congress recognizes that--
       ``(1) although the achievement gap between disadvantaged 
     children and other children has been reduced by half over the 
     past two decades, a sizeable gap remains, and many segments 
     of our society lack the opportunity to become well educated;
       ``(2) the most urgent need for educational improvement is 
     in schools with high concentrations of children from low-
     income families. Achieving the National Education Goals will 
     not be possible without substantial improvement in these 
     schools;
       ``(3) educational needs are particularly great for low-
     achieving children in our highest-poverty schools, children 
     with limited English proficiency, children with disabilities, 
     children of migrant workers, Indian children, children who 
     are neglected or delinquent, and young children and their 
     parents who are in need of family-literacy services; and
       ``(4) while title I and other programs funded under this 
     Act have contributed to narrowing the achievement gap between 
     children in high-poverty and low-poverty schools, they need 
     to become even more effective in improving high-poverty 
     schools in order to help enable all children to achieve high 
     standards.
       ``(c) What Has Been Learned.--To enable schools to provide 
     all children a high-quality education, this title builds upon 
     what has been learned:
       ``(1) All children can master challenging content and 
     complex problem-solving skills; research clearly shows that 
     children, including low-achieving children, can succeed when 
     expectations are high and they are given the opportunity to 
     learn challenging material.
       ``(2) Piecemeal reform, particularly when not tied to an 
     overall vision of teaching to, and helping all children 
     reach, high standards, does not work.
       ``(3) Use of low-level tests that are not aligned with 
     schools' curricula fails to provide adequate information 
     about what children know and can do and encourages curricula 
     and instruction that focus on low-level skills measured by 
     those tests.
       ``(4) Resources are less effective when they serve children 
     through such practices as pull-out programs, instead of 
     ensuring that children have full access to effective regular 
     school programs and receive supplemental help through 
     extended-time activities.
       ``(5) The disproven theory that children must first learn 
     basic skills before engaging in more complex tasks continues 
     to dominate strategies for classroom instruction, resulting 
     in emphasis on repetitive drill and practice at the expense 
     of content-rich instruction, accelerated curricula, and 
     effective teaching to high standards.
       ``(6) Intensive and sustained professional development for 
     teachers and other school staff--focused on teaching and 
     learning and on helping children attain high standards--is 
     too often not provided.
       ``(7) Insufficient attention and resources are directed 
     toward the effective use of technology in schools and the 
     role it can play in professional development and improved 
     teaching and learning.
       ``(8) All parents can contribute to their children's 
     success by helping at home and becoming partners with 
     teachers so that children can achieve high standards.
       ``(9) Decentralized decisionmaking is a key ingredient of 
     systemic reform. Schools need the resources, flexibility, and 
     responsibility to design and implement effective strategies 
     for bringing their children to high levels of performance and 
     should accept responsibility to do so.
       ``(10) Opportunities for students to achieve to high 
     standards can be enhanced through a variety of approaches 
     such as public school choice and charter schools.
       ``(11) Attention to academics alone cannot ensure that all 
     children will reach high standards. The health and other 
     needs of children that affect learning are frequently unmet, 
     particularly in high-poverty schools, thereby necessitating 
     coordination of services to better meet children's needs.
       ``(d) Statement of Purpose.--The purpose of this title is 
     to enable schools to provide opportunities for children 
     served to acquire the knowledge and skills contained in the 
     rigorous State content standards and to meet the challenging 
     State performance standards developed for all children under 
     the Goals 2000: Educate America Act or, in their absence, 
     under this title. This purpose shall 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 
     them;
       ``(2) providing children an enriched and accelerated 
     educational program through schoolwide programs or through 
     additional services that increase the amount and quality of 
     instructional time so that children served under this title 
     receive at least all the classroom instruction that other 
     children receive;
       ``(3) promoting schoolwide reform and ensuring access of 
     children--from the earliest grades--to effective 
     instructional strategies and challenging academic content 
     that includes intensive complex thinking and problem-solving 
     experiences;
       ``(4) significantly upgrading the quality of curricula and 
     instruction by providing staff in participating schools with 
     substantial opportunities for intensive and sustained 
     professional development;
       ``(5) coordinating services under all parts of this title 
     with each other, with other educational services, and, to the 
     extent feasible, with health and social service programs 
     funded from other sources;
       ``(6) affording parents 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 areas where needs are greatest;
       ``(8) improving accountability, as well as teaching and 
     learning, by using State assessment systems designed to 
     measure how well children are achieving high State standards 
     of performance expected of all children; and
       ``(9) providing greater decisionmaking authority and 
     flexibility to schools in exchange for greater responsibility 
     for student performance.

     ``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

        ``Appropriations are authorized for the following programs 
     and activities under this title:
        ``(1) Local educational agency grants.--For the purpose of 
     carrying out part A of this title, other than section 
     1118(e), there are authorized to be appropriated 
     $7,000,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996 through 1999.
        ``(2) Even start.--For the purpose of carrying out part B 
     of this title, there are authorized to be appropriated 
     $118,000,000 in fiscal year 1995, and such sums as may be 
     necessary for each of the fiscal years 1996 through 1999.
        ``(3) Education of migratory children.--For the purpose of 
     carrying out part C of this title, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
        ``(4) Education for neglected or delinquent youth.--For 
     the purpose of carrying out part D of this title, there are 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 1995 through 1999.
        ``(5) Capital expenses.--For the purpose of carrying out 
     section 1118(e) of this title, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
        ``(6) School improvement.--For the purpose of carrying out 
     the activities authorized in sections 1119(b)(1), (b)(2), and 
     (e) of this title, there are authorized to be appropriated 
     such sums as may be necessary for each of the fiscal years 
     1995 through 1999.
        ``(7) Federal activities.--(A) For the purpose of carrying 
     out section 1501 of this title, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
       ``(B) For the purpose of carrying out section 1502 of this 
     title, there are authorized to be appropriated such sums as 
     may be necessary for each of the fiscal years 1995 through 
     1999.

               ``PART A--MAKING HIGH-POVERTY SCHOOLS WORK

                ``Subpart 1--Basic Program Requirements

     ``SEC. 1111. STATE PLANS.

       ``(a) Plans Required.--(1) Any State desiring to receive a 
     grant under this part shall submit to the Secretary a plan, 
     developed in consultation with local educational agencies, 
     teachers, administrators, and parents, that--
       ``(A)(i) is integrated with the State's plan, either 
     approved or being developed, under title III of the Goals 
     2000: Educate America Act, and satisfies the requirements of 
     this section that are not already addressed by that State 
     plan; and
       ``(ii) is integrated with other State plans, if any, under 
     the School-to-Work Opportunities Act of 1993 and the Carl D. 
     Perkins Vocational and Applied Technology Education Act, to 
     the extent that these plans have not already been 
     incorporated in the State's plan under title III of the Goals 
     2000: Educate America Act; or
       ``(B) if the State does not have an approved plan under 
     title III of the Goals 2000: Educate America Act and is not 
     developing such a plan--
       ``(i) is integrated with other State plans under this Act 
     and other plans, including those under the School-to-Work 
     Opportunities Act of 1993 and the Carl D. Perkins Vocational 
     and Applied Technology Education Act, where such plans exist; 
     and
       ``(ii) satisfies the requirements of this section.
       ``(2) The plan may be submitted as part of a consolidated 
     application under section 9302.
       ``(3) A State may satisfy all or part of the requirements 
     of this section by referencing applicable sections of its 
     approved State plan under title III of the Goals 2000: 
     Educate America Act.
       ``(b) Standards and Assessment Provisions.--(1)(A) Each 
     State plan shall demonstrate that the State has developed or 
     adopted high-quality standards for children served under this 
     title that will be used by the State, its local educational 
     agencies, and its schools to carry out this Act and that 
     these standards be as challenging and of the same high-
     quality as they are for all children. These standards shall 
     include--
       ``(i) challenging content standards in the core academic 
     subjects that--
       ``(I) specify what children served under this title are 
     expected to know and be able to do;
       ``(II) contain coherent and rigorous content; and
       ``(III) emphasize the teaching of advanced skills;
       ``(ii) challenging performance standards that--
       ``(I) are aligned with the State's content standards;
       ``(II) describe two levels of high performance, 
     `proficient' and `advanced', that determine how well children 
     served under this title are mastering the material in the 
     content standards; and
       ``(III) include a third benchmark below proficient, if 
     necessary, to provide complete information about the progress 
     of the lower-performing children toward achieving the high 
     `proficient' and `advanced' performance standards.
       ``(B) For those core academic subjects in which a State has 
     not adopted challenging content and performance standards, 
     the State plan shall include a schedule for their development 
     that includes the completion of standards in mathematics and 
     reading/language arts by the end of the interim period as 
     described in paragraph (7).
       ``(2)(A) Each State plan shall demonstrate, based on 
     assessments described under paragraph (3), what constitutes 
     adequate yearly progress of--
       ``(i) any school served under this part toward enabling 
     children to meet the State's `proficient' and `advanced' 
     performance standards; and
       ``(ii) any local educational agency that received funds 
     under this part toward enabling children in schools receiving 
     assistance under this part to meet the State's `proficient' 
     and `advanced' performance standards.
       ``(B) Adequate yearly progress shall be defined in a 
     manner--
       ``(i) that is consistent with criteria of general 
     applicability established by the Secretary and results in 
     continuous and substantial yearly improvement for 
     economically disadvantaged, limited-English proficient, and 
     all students under this title in each school and local 
     educational agency toward the goal of all children under this 
     title meeting the State's challenging `advanced' performance 
     standards; and
       ``(ii) links progress primarily to performance on the 
     assessments carried out under this section while permitting 
     progress to be established in part through the use of other 
     outcome-based measures such as reductions in drop-out rates.
       ``(3) Each State plan shall demonstrate that the State has 
     developed or adopted a set of high-quality, yearly student 
     assessments that will be used as the primary means of 
     determining the yearly performance of each local educational 
     agency and school receiving assistance under this part in 
     enabling children served under this title to meet the State's 
     performance standards and that these assessments be 
     challenging and of the same high-quality as they are for all 
     children. These assessments shall--
       ``(A) be aligned with the State's challenging content and 
     performance standards and provide coherent information about 
     student attainment of such standards;
       ``(B) be used for purposes for which they are valid and 
     reliable, and be consistent with relevant nationally 
     recognized professional and technical standards of 
     assessments;
       ``(C) measure the proficiency of students in the core 
     academic subjects in which a State has adopted challenging 
     content and performance standards and be administered at some 
     time during--
       ``(i) grades 3 through 5;
       ``(ii) grades 6 through 9;
       ``(iii) grades 10 through 12.
       ``(D) be comprised of multiple, up-to-date measures of 
     student performance;
       ``(E)(i) include 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 these students know and can do, to 
     determine their mastery of skills in subjects other than 
     English;
       ``(ii) include students who have been resident in a local 
     educational agency for a full academic year but have not 
     attended a single school for a full year, provided that the 
     performance of students who have attended more than one 
     school in the local educational agency in any academic year 
     shall be used only in determining the progress of the local 
     educational agency; and
       ``(iii) include students with disabilities who shall be 
     assessed, to the extent practicable, in a manner and form 
     most likely to yield accurate and reliable information on 
     what these students know and can do, including assessment 
     accommodations and modifications necessary to make such 
     determinations, provided that those students who are 
     determined, through valid evaluation conducted by qualified 
     personnel, to be so severely cognitively impaired as to 
     permanently lack the capacity to make any educational 
     progress, with the provision of special education and related 
     services, in meeting the State content and performance 
     standards may be exempted from the assessment process;
       ``(F) provide individual student scores; and
       ``(G) provide for disaggregated results within each State, 
     local educational agency, and school by gender, by each major 
     racial and ethnic group, by English proficiency status, and 
     by economically disadvantaged students as compared to 
     students who are not economically disadvantaged.
       ``(4) If a State has developed or adopted challenging 
     content and performance standards and an aligned set of 
     assessments for all students such as those developed under 
     title III of the Goals 2000: Educate America Act, or another 
     process, the State shall use such standards and assessments, 
     modified, if necessary, to conform with the requirements of 
     paragraphs (1)(A)(ii), (2), and (3).
       ``(5) If, after 2 years, a State does not have challenging 
     content and performance standards that meet the requirements 
     of paragraph (1) or after 3 years, a State does not have 
     assessments that meet the requirements of paragraph (3), a 
     State shall adopt a set of standards and aligned assessments 
     such as the standards and assessments contained in other 
     State plans that the Secretary has approved.
       ``(6)(A) If a State does not have assessments that meet the 
     requirements of paragraph (3), the State may propose to use 
     an interim set of yearly statewide assessments that will 
     assess the performance of complex skills and challenging 
     subject matter.
       ``(B) For any year during which a State is using an interim 
     assessment system, the State shall devise a means for 
     identifying schools and local educational agencies in need of 
     improvement under section 1119.
       ``(c) Other Provisions To Support Teaching And Learning.--
     Each State plan shall also describe--
       ``(1)(A) the means by which 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; and
       ``(B)(i) where educational service agencies exist, the 
     State educational agency shall consider providing 
     professional development and technical assistance through 
     such agencies; and
       ``(ii) where educational service agencies do not exist, the 
     State educational agency shall consider providing 
     professional development and technical assistance through 
     other cooperative agreements such as a consortium of local 
     educational agencies;
       ``(2) the measure of poverty that local educational 
     agencies shall use which shall include such measures as the 
     number of children age 5 to 7 in poverty counted in the most 
     recent census data approved by the Secretary, the number of 
     children eligible to receive free and reduced price lunches 
     under the National School Lunch Act, the number of children 
     in families receiving assistance under Aid to Families With 
     Dependent Children or the number of children eligible to 
     receive medical assistance under the Medicaid program; or a 
     composite of such indicators;
       ``(3) how the State educational agency will notify local 
     educational agencies of the authority to operate schoolwide 
     programs, and fulfill its local educational agency and school 
     improvement responsibilities under section 1119, including 
     the corrective actions it will take under section 1119(d)(6);
       ``(4) how the State educational agency will encourage the 
     use of funds from other Federal, State, and local sources for 
     schoolwide reform in schoolwide programs under section 1114;
       ``(5) how the State educational agency will assess the 
     needs of local educational agencies serving rural areas, and 
     the plans the State educational agency has to meet those 
     needs; and
       ``(6) how the State educational agency will encourage the 
     establishment and operation of cooperative education, 
     mentoring, and apprenticeship programs, involving business 
     and industry.
       ``(d) Peer Review and Secretarial Approval.--The 
     Secretary--
       ``(1) shall establish a peer review process to assist in 
     the review and revision of State plans;
       ``(2) shall, following an initial peer review, approve a 
     State plan the Secretary determines meets the requirements of 
     subsections (b) and (c);
       ``(3)(A) shall, if the Secretary determines that the State 
     plan does not meet the requirements of subsection (b) or (c), 
     immediately notify the State of such determination and the 
     reasons for it;
       (B) shall not decline to approve a State's plan before 
     offering the State an opportunity to revise its plan or 
     application, provide technical assistance in order to assist 
     the State to meet the requirements under subsections (b) and 
     (c) and a hearing; and
       (C) may withhold funds until determining that the plan 
     meets the requirements of this section.
       ``(e) Duration of the Plan.--(1) 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) If the State makes significant changes in its plan, 
     such as the adoption of new content and performance 
     standards, new assessments, or a new definition of adequate 
     progress, the State shall submit this information to the 
     Secretary for approval.
       ``(f) Nothing in this title 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 pupil performance 
     standards and assessments, curriculum, or program of 
     instruction as a condition of eligibility to receive funds 
     under this title.
       ``(g) If aggregate State expenditure by the State 
     educational agency for operation of elementary and secondary 
     education programs is less than the State educational 
     agency's aggregate Federal allocation for State operation of 
     all Federal elementary and secondary education programs, then 
     the State plan for title I must include assurances and 
     specific provisions for State expenditures for operation of 
     elementary and secondary education programs to equal or 
     exceed the level of Federal expenditures for such operation 
     by fiscal year 1999.

     ``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

       ``(a) Plans Required.--(1) A local educational agency may 
     receive a subgrant under this part for any fiscal year only 
     if it has on file with the State educational agency a plan, 
     approved by the State educational agency, that--
       ``(A)(i) is integrated with the local educational agency's 
     plan, either approved or being developed, under title III of 
     the Goals 2000: Educate America Act, and satisfies the 
     requirements of this section that are not already addressed 
     by that State plan; and
       ``(ii) is integrated with local plans, if any, under the 
     School-to-Work Opportunities Act of 1993 and the Carl D. 
     Perkins Vocational and Applied Technology Education Act, to 
     the extent that such plans have not already been incorporated 
     into the local educational agency's plan under title III of 
     the Goals 2000: Educate America Act; or
       ``(B) if the local educational agency does not have an 
     approved plan under title III of the Goals 2000: Educate 
     America Act and is not developing such a plan--
       ``(i) is integrated with other local plans under this Act 
     and other plans, including those under the School-to-Work 
     Opportunities Act of 1993 and the Carl D. Perkins Vocational 
     and Applied Technology Education Act, where such plans exist; 
     and
       ``(ii) satisfies the requirements of this section.
       ``(2) The plan may be submitted as part of a consolidated 
     application under section 9302.
       ``(3) A local educational agency may satisfy all or part of 
     the requirements of this section by referencing applicable 
     sections of its approved plan under title III of the Goals 
     2000: Educate America Act.
       ``(b) Standards and Assessment Provisions.--Each local 
     educational agency plan shall include--
       ``(1) a description of its challenging content and 
     performance standards, if any, in the core subjects, in 
     addition to the content and performance standards adopted by 
     the State under section 1111, that the local educational 
     agency expects children served under this title to meet;
       ``(2) a description, based on the assessments described 
     under paragraph (3), of what constitutes adequate yearly 
     progress if a local educational agency elects to establish 
     such measures that are more stringent than the measures 
     described in the State plan under section 1111; and
       ``(3) a description of additional high-quality student 
     assessments, if any, other than the assessments described in 
     the State plan under section 1111, that the local educational 
     agency and schools served under this part will use to--
       ``(A) determine the success of children served under this 
     title in meeting th State's performance standards; and
       ``(B) determine what revisions are needed to projects under 
     this part so that such children will meet the State's 
     performance standards.
       ``(c) Other Provisions To Support Teaching and Learning.--
     (1) To ensure high-quality instruction to enable 
     participating children to meet the State's challenging 
     performance standards expected of all students, each local 
     educational agency plan shall describe a coherent strategy 
     for intensive and sustained professional development for 
     teachers, administrators, and other staff, including staff of 
     such agency.
       ``(2) Each local educational agency plan shall describe how 
     the local educational agency will--
       ``(A) notify schools of the authority to operate schoolwide 
     programs;
       ``(B) work in consultation with schools as the schools 
     develop their plans pursuant to section 1115 or 1117 and 
     assist schools as they implement such plans so that each 
     school can make adequate yearly progress toward meeting the 
     State's standards; and
       ``(C) fulfill its school improvement responsibilities under 
     section 1119, including the corrective actions it will take 
     under section 1119(c)(4).
       ``(3) To address the comprehensive needs of children served 
     under this title, each local educational agency plan shall 
     describe how the local educational agency will--
       ``(A) coordinate and integrate services provided under this 
     part with other educational services at the local educational 
     agency or individual school level, including--
       ``(i) Even Start, Head Start, and other preschool programs, 
     including plans for the transition of participants in such 
     programs to local elementary school programs, vocational 
     education programs, and school-to-work transition programs; 
     and
       ``(ii) services for children with limited English 
     proficiency or with disabilities, migratory children served 
     under part C of this title or who were formerly eligible for 
     services under part C in the 2-year period preceding the date 
     of the enactment of this title, delinquent youth and youth at 
     risk of dropping out served under part D of this title, 
     homeless children, and immigrant children in order to 
     increase program effectiveness, eliminate duplication, and 
     reduce fragmentation of the children's instructional program;
       ``(B) coordinate and collaborate with other agencies 
     providing services to children, youth, and families, 
     including health and social services.
       ``(4) The local educational agency plan also shall include 
     a description of--
       ``(A) the poverty criteria that will be used to select 
     school attendance areas under section 1113;
       ``(B) the multiple criteria that will be used by targeted 
     assistance schools under section 1115 to identify children 
     eligible for services under this part;
       ``(C) the nature of the programs to be conducted by its 
     schools under sections 1114 and 1115 and services outside 
     such schools for children in local institutions for neglected 
     or delinquent children and eligible homeless children, in 
     accordance in section 1115(b)(2)(D);
       ``(D) how the local educational agency will ensure that 
     migratory children and formerly migratory children who are 
     eligible to receive services under this part are selected to 
     receive such services on the same basis as other children who 
     are selected to receive services under this part;
       ``(E) how a school that plans to serve preschool children 
     through the Head Start or Even Start programs will use its 
     funds to expand such programs to serve preschool children 
     from its attendance area that otherwise would not have been 
     served or increase the level of service to children presently 
     being served; and
       ``(F) how the local educational agency will provide 
     services to eligible children attending private elementary 
     and secondary schools in accordance with section 1120, and 
     how timely and meaningful consultation with private school 
     officials regarding such services will occur.
       ``(d) Plan Development and Duration.--Each local 
     educational agency plan shall--
       ``(1) be developed in consultation with teachers, including 
     vocational teachers, where appropriate, and parents of 
     children in schools served under this part; and
       ``(2)(A) remain in effect for the duration of the local 
     educational agency's participation under this part; and
       ``(B) periodically be reviewed and revised, as necessary, 
     to reflect changes in the local educational agency's 
     strategies and programs.
       ``(e) State Approval.--The State educational agency shall 
     approve a local educational agency's plan only if the State 
     educational agency determines that the plan will enable 
     schools served under this part to substantially help children 
     served under this title to meet the State's challenging 
     performance standards expected of all children.
       ``(f) Program Responsibility.--The local educational agency 
     plan shall reflect the shared responsibility of schools, 
     teachers, and the local educational agency in making 
     decisions required under sections 1114 and 1115.

     ``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

       ``(a) In General.--(1)(A)(i) A local educational agency 
     shall use funds received under this part only in school 
     attendance areas with high concentrations of children from 
     low-income families, hereafter in this section referred to as 
     `eligible school attendance areas'.
       ``(ii) For the purposes of this part--
       ``(I) `school attendance area' means, in relation to a 
     particular school, the geographical area in which the 
     children who are normally served by such school reside; and
       ``(II) `eligible school attendance area' means a school 
     attendance area in which the percentage of children from low-
     income families is at least as high as the percentage of 
     children from low-income families in the local educational 
     agency as a whole.
       ``(B) If funds allocated in accordance with subsection (c) 
     are insufficient to serve all eligible school attendance 
     areas, a local educational agency shall--
       ``(i) annually rank, without regard to grade spans, its 
     eligible school attendance areas in which the concentration 
     of children from low-income families exceeds 75 percent from 
     highest to lowest according to the percentage of children 
     from low-income families; and
       ``(ii) serve such eligible school attendance areas in rank 
     order.
       ``(C) If funds remain after serving all eligible school 
     attendance areas under subparagraph (B), a local educational 
     agency shall--
       ``(i) annually rank its remaining eligible school 
     attendance areas from highest to lowest either by grade span 
     or for the entire local educational agency according to the 
     percentage of children from low-income families; and
       ``(ii) serve such eligible school attendance areas in rank 
     order either within each grade-span grouping or within the 
     local educational agency as a whole.
       ``(2) The local educational agency shall use as the measure 
     of poverty, the number of children ages 5-17 in poverty 
     counted in the most recent census data approved by the 
     Secretary, the number of children eligible for free and 
     reduced priced lunches under the National School Lunch Act, 
     the number of children in families receiving assistance under 
     Aid to Families with Dependent Children or the number of 
     children eligible to receive medical assistance under the 
     Medicaid program, or a composite of such indicators, with 
     respect to all school attendance areas in the local 
     educational agency--
       ``(A) to identify eligible school attendance areas;
       ``(B) to determine the ranking of each area; and
       ``(C) to determine allocations under subsection (c).
       ``(3) This subsection shall not apply to a local 
     educational agency with a total enrollment of less than 1,000 
     children.
       ``(b) Local Educational Agency Discretion.--Notwithstanding 
     subsection (a)(1), a local educational agency may--
       ``(1) designate as eligible any school attendance area or 
     school in which at least 50 percent of the children are from 
     low-income families;
       ``(2) use funds received under this part in a school that 
     is not in an eligible school attendance area, if the 
     percentage of children from low-income families enrolled in 
     the school is equal to or greater than the percentage of such 
     children in a participating school attendance area of such 
     agency; and
       ``(3)(A) elect not to serve an eligible school attendance 
     area or eligible school that has a higher percentage of 
     children from low-income families if--
       ``(i) the school meets the comparability requirements of 
     section 1120(c);
       ``(ii) the school is receiving supplemental funds from 
     other State or local sources that are spent according to the 
     requirements of section 1114 or 1115; and
       ``(iii) the funds expended from such other sources equal or 
     exceed the amount that would be provided under this part.
       ``(B) Notwithstanding subparagraph (A), the number of 
     children attending private elementary and secondary schools 
     who are to receive services, and the assistance they are to 
     receive under this part, shall be determined without regard 
     to whether the public school attendance area in which such 
     children reside is passed over under this paragraph.
       ``(c) Allocations.--(1) A local educational agency shall 
     allocate funds received under this part to eligible school 
     attendance areas or eligible schools, identified under 
     subsection (a) or (b), in rank order, on the basis of the 
     total number of children from low-income families in each 
     area or school.
       ``(2)(A) Except as provided in subparagraph (B), the per-
     pupil amount of funds allocated to each school attendance 
     area or school under paragraph (1) shall be not less than 80 
     percent of the per-pupil amount of funds the local 
     educational agency received for such year under sections 
     1124, 1124A, and 1125.
       ``(B) A local educational agency may reduce the amount of 
     funds allocated under subparagraph (A) for a school 
     attendance area or school by the amount of any supplemental 
     State and local funds expended in such school attendance area 
     or school for programs that meet the requirements of section 
     1114 or 1115.
       ``(3) A local educational agency shall reserve such funds 
     as are necessary under this part to provide services 
     comparable to the services provided to children in schools 
     funded under this part to serve--
       ``(A) homeless children in accordance with section 
     1115(b)(2)(D); and
       ``(B) children in local institutions for delinquent 
     children.

     ``SEC. 1114. SCHOOLWIDE PROGRAMS.

       ``(a) Use of Funds For Schoolwide Programs.--(1) A local 
     educational agency may use funds under this part, in 
     combination with other Federal, State, and local funds, to 
     upgrade the entire educational program in an eligible school 
     if, for the initial year of the schoolwide program, the 
     school meets the following criteria:
       ``(A) For school year 1995-96--
       ``(i) the school serves an eligible school attendance area 
     in which at least 65 percent of the children are from low-
     income families; or
       ``(ii) at least 65 percent of the children enrolled in the 
     school are from such families.
       ``(B) For school year 1996-97 and thereafter, the 
     percentage requirement in subparagraphs (A) (i) and (ii) 
     shall be 50 percent.
       ``(2)(A) No schoolwide program school shall be required to 
     identify particular children as eligible to participate or to 
     provide supplemental services to them.
       ``(B) A schoolwide program school shall use such funds only 
     to supplement the amount of funds that would, in the absence 
     of funds under this part, be made available from non-Federal 
     sources for the school, including funds needed to provide 
     services that are required by law for children with 
     disabilities and children with limited English proficiency.
       ``(3) A school may use funds received under any 
     noncompetitive, formula-grant program administered by the 
     Secretary, except such a program under the Individuals With 
     Disabilities Education Act, and any discretionary program 
     contained on a list (updated as necessary) issued by the 
     Secretary to support a schoolwide program, notwithstanding 
     any provision of the statute or regulations governing any 
     such program.
       ``(b) Components of a Schoolwide Program.--(1) A schoolwide 
     program shall include the following components:
       ``(A) A comprehensive needs assessment of the entire school 
     that is based on information on the performance of children 
     in relation to the State's standards.
       ``(B) Schoolwide reform strategies that--
       ``(i) provide opportunities for all children to meet the 
     State's `proficient' and `advanced' performance standards 
     expected of all children;
       ``(ii) are based on research on effective means of 
     improving the achievement of children;
       ``(iii) use effective instructional strategies that 
     increase the amount and quality of learning time and help 
     provide an enriched and accelerated curriculum rather than 
     remedial drill and practice;
       ``(iv) address the needs of all children in the school, but 
     particularly the needs of low-achieving children, children 
     with limited English proficiency, children from migratory 
     families, and children who are members of the target 
     population of any program that is included in the schoolwide 
     program, and how the school will determine if those needs 
     have been met; and
       ``(v) are consistent with, and are designed to implement, 
     the State and local reform plans, if any, approved under 
     title III of the Goals 2000: Educate America Act.
       ``(C) Instruction by highly qualified professional staff.
       ``(D) Intensive and sustained professional development for 
     teachers, principals, and other staff to enable all children 
     in the school to meet the State's performance standards.
       ``(E) Parental involvement in accordance with section 1117.
       ``(F) Additionally, in schools serving children beyond 
     grade six, in coordination with funds available from other 
     programs and, as appropriate, drawing on private and public 
     organizations--
       ``(i) counseling and mentoring services;
       ``(ii) college and career awareness and preparation, such 
     as college and career guidance, enhancement of employability 
     skills, and job placement services; and
       ``(iii) services to prepare students for the transition 
     from school to work.
       ``(2)(A) Any eligible school that desires to operate a 
     schoolwide program shall first develop, in consultation with 
     the local educational agency, a comprehensive plan for 
     reforming the total instructional program in the school 
     that--
       ``(i) incorporates the components described in paragraph 
     (1);
       ``(ii) describes how the school will use resources under 
     this part and from other sources to implement those 
     components;
       ``(iii) includes a list of State and local educational 
     agency programs and other Federal programs under paragraph 
     (a)(3) that will be included in the schoolwide program; and
       ``(iv) describes how the school will provide individual 
     student assessment results, including an interpretation of 
     those results, to the parents of any child who participates 
     in the assessment required by section 1111(b)(3).
       ``(B) Plans developed before a State has adopted standards 
     and a set of assessments that meet the criteria in section 
     1111(b) (1) and (3) shall be based on an analysis of 
     available data on the achievement of students in the school 
     and a review of the school's instructional practices in the 
     context of available research on effective instructional and 
     school improvement practices.
       ``(C) The comprehensive plan shall be--
       ``(i) developed over a one-year period, unless--
       ``(I) the local educational agency, based on the 
     recommendation of the school support team under subsection 
     (c), determines that less time is needed to develop and 
     implement the schoolwide program; or
       ``(II) the school is operating a schoolwide program at the 
     time this section takes effect, in which case it may continue 
     to operate that program, but shall develop a new plan during 
     the first year to reflect the provisions of this section;
       ``(ii) developed with the involvement of the community to 
     be served and those individuals who will carry it out, 
     including teachers, principals, other staff, parents, and, if 
     the plan relates to a secondary school, students from the 
     school;
       ``(iii) reviewed and revised, as necessary, by the school; 
     and
       ``(iv) available to the local educational agency, parents, 
     and the public. The information contained therein shall be 
     translated, to the extent feasible, into any language that a 
     significant percentage of the parents of participating 
     children in the school speak as their primary language.
       ``(c) School Support Teams.--(1) Each State educational 
     agency shall establish a system of school support teams to 
     provide information and assistance to each schoolwide program 
     to ensure that schoolwide programs provide the opportunity 
     for all children to meet the State's challenging performance 
     standards.
       ``(2) Each such team shall be composed of persons, 
     including teachers, knowledgeable about research and practice 
     on teaching and learning, particularly about strategies for 
     improving the educational opportunities for low-achieving 
     children.
       ``(3) A school support team shall work with each school as 
     it develops its schoolwide program plan, review the merits of 
     each plan, and make recommendations to the school and the 
     local educational agency.
       ``(4) During the operation of the schoolwide program, a 
     school support team shall--
       ``(A) periodically review the progress of the school in 
     enabling children in the school to meet the State's 
     performance standards;
       ``(B) identify problems in the design and operation of the 
     instructional program; and
       ``(C) make suggestions for improvement to the school and 
     the local educational agency.
       ``(5) Funds available for State administration and for 
     local educational agencies under this part may be used to pay 
     the costs of the school support teams.

     ``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

       ``(a) In General.--In all schools selected to participate 
     under section 1113 that are ineligible for a schoolwide 
     program, or that choose not to operate a schoolwide program, 
     a local educational agency may use funds received under this 
     part only for programs that provide services to eligible 
     children identified as having the greatest need for special 
     assistance.
       ``(b) Eligible Children--(1)(A) The eligible population for 
     services under this part is--
       ``(i) children up to age 21 who are entitled to a free 
     public education through grade 12; and
       ``(ii) children who are not yet at a grade level where the 
     local educational agency provides a free public education, 
     yet are of an age at which they can benefit from an organized 
     instructional program provided in a school or other 
     educational setting.
       ``(B) From the population described in subparagraph (A), 
     eligible children are children identified by the school as 
     failing, or most at risk of failing, to meet the State's 
     challenging performance standards on the basis of multiple, 
     educationally related, objective criteria established by the 
     local educational agency and supplemented by the school, 
     except that children from preschool through grade two shall 
     be selected solely on the basis of such criteria as teacher 
     judgment, interviews with parents, and developmentally 
     appropriate measures.
       ``(2)(A)(i) Children receiving services to overcome a 
     disability or limited English proficiency are eligible for 
     services under this part on the same basis as other children 
     selected to receive services under this part.
       ``(ii) Funds received under this part may not be used to 
     provide services that are otherwise required by law to be 
     made available to such children.
       ``(B) A child who, at any time in the previous two years, 
     participated in a Head Start, Even Start, or State-run 
     preschool program shall be automatically eligible for 
     services under this part;
       ``(C)(i) A child who, at any time in the previous two years 
     received services under the program for delinquent youth and 
     youth at risk of dropping out under part D of this title (or 
     its predecessor authority) may be eligible for services under 
     this part.
       ``(ii) Any child in a local institution for neglected or 
     delinquent children or attending a community day program for 
     such children is eligible for services under this part.
       ``(D) A local educational agency shall use funds received 
     under this part to serve eligible homeless children who 
     attend a school in the local educational agency that receives 
     funds under this title. To the extent feasible, a local 
     educational agency shall use funds received under this part 
     to serve eligible homeless children who attend schools in 
     noneligible attendance areas, including providing 
     educationally related support services to children in 
     shelters, where appropriate.
       ``(c) Components of a Targeted Assistance School Program.--
     (1) To assist targeted assistance schools and local 
     educational agencies to meet their responsibility to provide 
     all students with the opportunity to meet the State's 
     challenging performance standards, each targeted assistance 
     program under this section shall--
       ``(A) use its resources under this part to help 
     participating children meet the challenging performance 
     standards expected for all children;
       ``(B) be based on research on effective means for improving 
     achievement of children;
       ``(C) use effective instructional strategies that--
       ``(i) give primary consideration to providing extended 
     learning time such as an extended school year and before- and 
     after-school programs and opportunities;
       ``(ii) involve an accelerated, high-quality curriculum, 
     including applied learning, rather than remedial drill and 
     practice; and
       ``(iii) minimize removing children from the regular 
     classroom for instruction provided under this part;
       ``(D) be coordinated with and support the regular program 
     in providing an enriched and accelerated curriculum for 
     eligible children;
       ``(E) provide instruction by highly qualified professional 
     staff;
       ``(F) provide opportunities for intensive and sustained 
     professional development with resources under this part and 
     from other sources for administrators and for teachers and 
     other school staff who work with participating children in 
     programs under this section or in the regular education 
     program;
       ``(G) provide strategies to increase parental involvement, 
     including family literary services;
       ``(H) provide plans for assisting preschool children in the 
     transition from early childhood programs, such as Head Start, 
     Even Start, or a State-run preschool program, to local 
     elementary school programs; and
       ``(I) include, additionally, in schools serving children 
     beyond grade six, in coordination with funds available from 
     other programs and, as appropriate, drawing on private and 
     public organizations--
       ``(i) counseling and mentoring;
       ``(ii) college and career awareness and preparation, such 
     as college and career guidance, comprehensive career 
     development, enhancement of employability skills, personal 
     finance education, and job placement services; and
       ``(iii) services to prepare students for the transition 
     from school to work, including the formation of partnerships 
     between elementary, middle, and secondary schools and local 
     businesses.
       ``(2)(A) Each school conducting a program under this 
     section shall develop, in consultation with the local 
     educational agency, a plan to assist participating children 
     to meet the State's `proficient' and `advanced' performance 
     standards that describes--
       ``(i) the selection of children to participate in 
     accordance with subsection (b);
       ``(ii) the program to be conducted that incorporates the 
     components described in paragraph (1) and how the resources 
     provided under this part will be coordinated with other 
     resources to enable the children served to meet the State's 
     standards;
       ``(iii) how the school will review, on an ongoing basis, 
     the progress of participating children and revise the 
     program, if necessary, to provide additional assistance to 
     enable such children to meet the State's challenging 
     performance standards such as an extended school year and 
     before- and after-school programs and opportunities, training 
     for teachers regarding how to identify students that require 
     additional assistance, and training for teachers regarding 
     how to implement performance standards in the classroom; and
       ``(iv) if the school is eligible to operate a schoolwide 
     program under section 1114, why it chose not to do so.
       ``(B) Plans developed before a State has adopted standards 
     and a set of assessments that meet the criteria of section 
     1111(b) (1) and (3) shall be based on an analysis of 
     available data on the achievement of participating children 
     and a review of the school's instructional practices in the 
     context of available research on effective instructional 
     practices.
       ``(C) Each plan shall be--
       ``(i) developed with the involvement of the community to be 
     served and the individuals who will carry it out, including 
     teachers, administrators, other staff, parents, 
     representatives from business and industry, and, if the plan 
     relates to a secondary school, students from the school;
       ``(ii) approved by the local educational agency and made 
     available to parents and the information contained therein 
     translated, to the extent feasible, into any language that a 
     significant percentage of the parents of participating 
     children in the school speak as their primary language; and
       ``(iii) reviewed and revised, as necessary, by the school.
       ``(d) Assignment of Personnel.--To promote the integration 
     of staff paid with funds under this part and children served 
     under this part into the regular school program and overall 
     school planning and improvement efforts, public school 
     personnel who are paid with funds received under this part 
     may--
       ``(1) assume limited duties that are assigned to similar 
     personnel who are not so paid, including duties beyond 
     classroom instruction or that do not benefit participating 
     children so long as the amount of time spent on such duties 
     is the same proportion of total work time as prevails with 
     respect to similar personnel at the same school;
       ``(2) participate in general professional development and 
     school planning activities; and
       ``(3) collaboratively teach with regular classroom 
     teachers, so long as their efforts directly benefit 
     participating children.

     ``SEC. 1116. PUBLIC SCHOOL CHOICE.

       ``(a) Choice Programs.--A local educational agency may use 
     funds under this part, in combination with other Federal, 
     State, local, and private funds to develop and implement 
     choice programs, for children eligible for assistance under 
     this title, which permit parents to select the public school 
     that their children will attend.
       ``(b) Choice Plan.--A local educational agency that chooses 
     to implement a school choice plan shall first develop a 
     comprehensive plan that includes assurances that--
       ``(1) all eligible students across grade levels shall have 
     equal access to the program;
       ``(2) the program shall not include schools which follow a 
     racially discriminatory policy;
       ``(3) describe how the school will use resources under this 
     part and from other sources to implement such components;
       ``(4) describe how the school will provide individual 
     student assessment results, including an interpretation of 
     those results, to the parents of a child who participates in 
     the assessment required by section 1111(b)(3);
       ``(5) the plan will be developed with the involvement of 
     the community to be served and individuals who will carry it 
     out, including teachers, principals, other staff, parents, 
     and, if the plan relates to a secondary school, students from 
     the school;
       ``(6) the plan will be made available to parents and the 
     public; and
       ``(7) the program shall not include schools not receiving 
     funds under this title.''.

     ``SEC. 1117. PARENTAL INVOLVEMENT.

       ``(a) Local Educational Agency Policy.--(1) Each local 
     educational agency that receives funds under this part shall 
     develop jointly with, and make available to, parents of 
     participating children a written parent involvement policy 
     that is incorporated into the local educational agency's plan 
     developed under section 1112, establishes the expectations 
     for parent involvement, and describes how the local 
     educational agency will--
       ``(A) involve parents in the development of the plan 
     described under section 1112, and the process of school 
     review and improvement described under section 1119;
       ``(B) provide the coordination, technical assistance, and 
     other support necessary to assist participating schools in 
     planning and implementing effective parent involvement;
       ``(C) build the schools' and parents' capacity for strong 
     parent involvement as described in subsection (e);
       ``(D) coordinate and integrate parental involvement 
     strategies with other programs, including Head Start, Even 
     Start, and State-run preschool programs; and
       ``(E) ensure that participating schools review their parent 
     involvement activities on an ongoing basis and use the 
     findings of the reviews in designing strategies for school 
     improvement.
       ``(2) If the local educational agency has a district-level 
     parental involvement policy that applies to all parents, it 
     may amend that policy, if necessary, to meet the requirements 
     of this subsection.
       ``(b) School Parental Involvement Plan.--(1) Each school 
     served under this part shall jointly develop with, and make 
     available to, parents of participating children a written 
     parent involvement plan that shall be incorporated into the 
     school plan developed under section 1114 or 1115 and shall 
     describe the means for carrying out the requirements of 
     subsections (c) through (f).
       ``(2) If the school has a parental involvement policy that 
     applies to all parents, it may amend that policy, if 
     necessary, to meet the requirements of this subsection.
       ``(c) Policy Involvement.--Each school served under this 
     part shall--
       ``(1) convene an annual meeting, at a convenient time, to 
     which all parents of participating children shall be invited 
     and encouraged to attend, to inform parents of their school's 
     participation under this part and to explain this part, its 
     requirements, and their right to be involved;
       ``(2) involve parents, in an organized, ongoing, and timely 
     way, in the planning, review, and improvement of programs 
     under this part, including the development of the school plan 
     under section 1114 or 1115. If a school has in place a 
     process for involving parents in the planning and design of 
     its programs, the school may use that process, provided that 
     it includes an adequate representation of parents of 
     participating children; and
       ``(3) provide parents of participating children--
       ``(A) timely information about programs under this part;
       ``(B) school performance profiles required under section 
     1119(a)(2);
       ``(C) opportunities for regular meetings to formulate 
     suggestions, if such parents so desire; and
       ``(D) timely responses to their recommendations.
       ``(d) Shared Responsibilities for High Student 
     Performance.--As a component of the school-level parental 
     involvement plan developed under subsection (b), each school 
     served under this part shall jointly develop with parents for 
     all children a school-parent compact that outlines how 
     parents, the entire school staff, and students will share the 
     responsibility for improved student achievement and the means 
     by which the school and parents will build and develop a 
     partnership to help children achieve the State's high 
     standards. Such compact shall--
       ``(1) describe the school's responsibility to provide high-
     quality curriculum and instruction in a supportive and 
     effective learning environment that enable the children to 
     meet the State's challenging performance standards, and the 
     ways in which each parent will be responsible for supporting 
     his or her children's learning, including monitoring 
     attendance, homework completion, television watching, and 
     positive use of extracurricular time; and
       ``(2) address the importance of communication between 
     teachers and parents on an ongoing basis through at least--
       ``(A) parent-teacher conferences in elementary schools, at 
     least annually, during which the compact shall be discussed 
     as it relates to the individual child's achievement;
       ``(B) frequent reports to parents on their children's 
     progress; and
       ``(C) reasonable access to staff and observation of 
     classroom activities.
       ``(e) Building Capacity For Involvement.--To ensure 
     effective involvement of parents and to support a partnership 
     among the school, parents, and the community to improve 
     student achievement, each school and local educational agency 
     shall--
       ``(1) provide assistance to participating parents in such 
     areas as understanding the National Education Goals, the 
     State's content and performance standards, State and local 
     assessments, the requirements of this part, and how to 
     monitor their children's progress and work with educators to 
     improve the performance of their children;
       ``(2) provide materials and training, including necessary 
     literacy training that is not otherwise available from other 
     sources to help parents work with their children to improve 
     their children's achievement;
       ``(3) educate teachers, principals and other staff in the 
     value and utility of contributions of parents, and in how to 
     reach out to, communicate with, and work with parents as 
     equal partners, implement and coordinate parent programs, and 
     build ties between home and school; and
       ``(4) develop appropriate roles for community-based 
     organizations and businesses in parent involvement 
     activities, including providing information about 
     opportunities for them to work with parents and schools.
       ``(f) Accessibility.--In carrying out the parental 
     involvement requirements of this part, local educational 
     agencies and schools shall, to the extent practicable, 
     provide full opportunities for participation to parents with 
     limited English proficiency or with disabilities, including 
     providing information in a language and form they understand.

     ``SEC. 1118. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       (a) General Requirement.--(1) To the extent consistent with 
     the number of eligible children identified according to 
     section 1115(b) in a local educational agency who are 
     enrolled in private elementary and secondary schools, a local 
     educational agency shall, after timely and meaningful 
     consultation with appropriate private school officials, 
     provide such children, on an equitable basis, special 
     educational services or other benefits under this part.
       ``(2) The educational services or other benefits, including 
     materials and equipment, must be secular, neutral, and 
     nonideological.
       ``(3) Educational services and other benefits for such 
     private school children shall be equitable in comparison to 
     services and other benefits for public school children 
     participating under this part.
       ``(4) Expenditures for educational services and other 
     benefits to eligible private school children shall be equal 
     to the proportion of funds allocated to participating school 
     attendance areas based on the number of children from low-
     income families who attend private schools.
       ``(5) The local educational agency may provide such 
     services directly or through contracts with public and 
     private agencies, organizations, and institutions.
       ``(b) Consultation.--(1) To ensure timely and meaningful 
     consultation, a local educational agency shall consult with 
     appropriate private school officials during the design and 
     development of the agency's programs under this part, 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) Consultation shall occur before the local educational 
     agency makes any decision that affects the opportunities of 
     eligible private school children to participate in programs 
     under this part.
       ``(3) Consultation shall include a discussion of the full 
     range of service delivery mechanisms a local educational 
     agency could use to provide equitable services to eligible 
     private school children including, but not limited to, 
     instruction provided at public school sites, at neutral 
     sites, and in mobile vans, computer-assisted instruction, 
     extended-day services, home tutoring, and instruction 
     provided with take-home computers.
       ``(c) Public Control of Funds.--(1) The control of funds 
     provided under this part, and title to materials, equipment, 
     and property purchased with those funds, shall be in a public 
     agency, and a public agency shall administer such funds and 
     property.
       ``(2)(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.
       ``(d) Standards for a Bypass.--If a local educational 
     agency is prohibited by law from providing for the 
     participation on an equitable basis of eligible children 
     enrolled in private elementary and secondary schools or if 
     the Secretary determines that a local educational agency has 
     substantially failed or is unwilling to provide for such 
     participation, as required by this section, the Secretary 
     shall--
       ``(1) waive the requirements of this section for such local 
     educational agency; and
       ``(2) arrange for the provision of services to such 
     children through arrangements that shall be subject to the 
     requirements of this section and sections 9505 and 9506 of 
     this Act.
       ``(e) Capital Expenses.--(1)(A) From the amount 
     appropriated for this subsection under section 1002(e) for 
     any fiscal year, each State is eligible to receive an amount 
     that bears the same ratio to the amount so appropriated as 
     the number of private school children who received services 
     under this part in the State in the most recent year for 
     which data satisfactory to the Secretary are available bears 
     to the number of such children in all States in that same 
     year.
       ``(B) The Secretary shall reallocate any amounts allocated 
     under subparagraph (A) that are not used by a State for the 
     purpose of this subsection to other States on the basis of 
     their respective needs, as determined by the Secretary.
       ``(2)(A) A local educational agency may apply to the State 
     educational agency for payments for capital expenses 
     consistent with this subsection.
       ``(B) State educational agencies shall distribute such 
     funds to local educational agencies based on the degree of 
     need set forth in their respective applications.
       ``(3) Any funds appropriated to carry out this subsection 
     shall be used only for capital expenses incurred to provide 
     equitable services for private school children under this 
     section.
       ``(4) For the purpose of this subsection, the term `capital 
     expenses' is limited to--
       ``(A) expenditures for noninstructional goods and services, 
     such as the purchase, lease, or renovation of real and 
     personal property, including, but not limited to, mobile 
     educational units and leasing of neutral sites or spaces;
       ``(B) insurance and maintenance costs;
       ``(C) transportation; and
       ``(D) other comparable goods and services.

     ``SEC. 1119. ASSESSMENT AND SCHOOL AND DISTRICT IMPROVEMENT.

       ``(a) Local Review.--Each local educational agency 
     receiving funds under this part shall--
       ``(1) use the State assessments described in the State plan 
     and any additional measures 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)(A)(i) toward enabling its students to 
     meet, the State's performance standards;
       ``(2) publicize and disseminate to teachers, parents, 
     students, and the community the results of the annual review 
     under paragraph (1) of all schools served under this part in 
     individual school performance profiles that include 
     disaggregated results as required by section 1111(b)(3)(G); 
     and
       ``(3) provide the results of the local annual review to 
     schools so that they can continually refine the program of 
     instruction to help all children in those schools meet the 
     State's high performance standards.
       ``(b) Distinguished Schools.--(1) Each State shall 
     designate as a Distinguished School--
       ``(A) any school served under this part that, for three 
     consecutive years, has exceeded the State's definition of 
     adequate progress as defined in section 1111(b)(2)(A)(i); and
       ``(B) any school in which virtually all students have met 
     the State's `advanced' performance standards.
       ``(2)(A) A State shall use funds available under section 
     1002(f) to recognize Distinguished Schools, including making 
     monetary awards.
       ``(B) Funds awarded to a Distinguished School may be used 
     by the school to further its educational program under this 
     part, provide additional incentives for continued success, 
     and reward individuals or groups in the school for past 
     performance.
       ``(3) A local educational agency may also recognize the 
     success of a Distinguished School by providing additional 
     institutional and individual rewards, such as greater 
     decisionmaking authority at the school building level, 
     increased access to resources or supplemental services such 
     as summer programs that may be used to sustain or increase 
     success, additional professional development opportunities, 
     opportunities to participate in special projects, and 
     individual financial bonuses.
       ``(4) Schools designated as Distinguished Schools under 
     paragraph (1) may serve as models and provide additional 
     assistance to other schools served under this part that are 
     not making adequate progress.
       ``(c) School Improvement.--(1) A local educational agency 
     shall identify for school improvement any school served under 
     this part that--
       ``(A) has been in program improvement under section 1020 of 
     chapter 1 of title I of the Elementary and Secondary 
     Education Act of 1965, as in effect before the effective date 
     of the Improving America's Schools Act of 1993, for at least 
     two consecutive school years prior to that date;
       ``(B) has not made adequate progress as defined in the 
     State's plan under section 1111(b)(2)(A)(i) for two 
     consecutive school years and if it does not have virtually 
     all students meeting the State's `advanced' performance 
     standards; or
       ``(C) has failed to meet the criteria established by the 
     State through its interim procedure under section 
     1111(b)(5)(C) for two consecutive years.
       ``(2)(A) Each school identified under paragraph (1) shall--
       ``(i) in consultation with parents, the local educational 
     agency, and, for schoolwide programs, the school support 
     team, revise its school plan under section 1114 or 1115 in 
     ways that have the greatest likelihood of improving the 
     performance of participating children in meeting the State's 
     performance standards; and
       ``(ii) submit the revised plan to the local educational 
     agency for approval.
       ``(B) During the first year immediately following 
     identification under paragraph (1), the school shall 
     implement its revised plan.
       ``(3) For each school identified under paragraph (1), the 
     local educational agency shall provide technical assistance 
     as the school develops and implements its revised plan.
       ``(4)(A) The local educational agency may take corrective 
     action at any time against a school that has been identified 
     under paragraph (1), but, during the third year following 
     identification under paragraph (1), shall take such action 
     against any school that still fails to make adequate 
     progress.
       ``(B) Corrective actions are those listed in the local 
     educational agency plan adopted in compliance with State law, 
     which may include, but are not limited to, decreasing 
     decisionmaking authority at the school level; making 
     alternative governance arrangements such as the creation of a 
     charter school; reconstituting the school staff; withholding 
     funds; and authorizing students to transfer, including paying 
     transportation costs, to other schools in the local 
     educational agency.
       ``(C)(i) At any time after a school has been identified 
     under paragraph (1), the local education agency may authorize 
     students eligible for assistance under this title to transfer 
     to another public school receiving funds under this title.
       ``(ii) During the third and subsequent years following the 
     identification of a school under paragraph (1), the local 
     education agency shall authorize students eligible for 
     assistance under this title to transfer to another public 
     school receiving funds under this title.
       ``(iii) Funds allocated for a student under this title 
     shall follow such student when transferring to another 
     school.
       ``(5) The State educational agency shall--
       ``(A) make assistance from Distinguished Educators under 
     subsection (e) available to the schools farthest from meeting 
     the State's standards, if requested by the school or local 
     educational agency; and
       ``(B) if it determines that a local educational agency 
     failed to carry out its responsibility under paragraphs (3) 
     and (4), take such corrective actions that it deems 
     appropriate.
       ``(6) Schools that for at least two of the three years 
     following identification under paragraph (1) make adequate 
     progress toward meeting the State's `proficient' and 
     `advanced' performance standards no longer need to be 
     identified for school improvement.
       ``(d) State Review and Local Educational Agency 
     Improvement.--(1) A State educational agency shall--
       ``(A) annually review the progress of each local 
     educational agency receiving funds under this part to 
     determine whether it is making adequate progress as defined 
     in section 1111(b)(2)(A)(ii) toward meeting the State's 
     performance standards; and
       ``(B) publicize and disseminate to teachers, parents, 
     students, and the community the results of the State review, 
     including disaggregated results, as required by section 
     1111(b)(3)(F).
       ``(2) In the case of a local educational agency that for 
     three consecutive years has exceeded the State's definition 
     of adequate progress as defined in section 1111(b)(2)(A)(ii), 
     the State may make institutional and individual rewards of 
     the kinds described for individual schools in subsection 
     (b)(3).
       ``(3) A State educational agency shall identify for 
     improvement any local educational agency that--
       ``(A) for two consecutive years, is not making adequate 
     progress as defined in section 1111(b)(2)(A)(ii) toward 
     meeting the State's performance standards; or
       ``(B) has failed to meet the criteria established by the 
     State through its interim procedure under section 
     1111(b)(5)(C) for two consecutive years.
       ``(4) Each local educational agency identified under 
     paragraph (3) shall, in consultation with schools, parents, 
     and educational experts, revise its district-level plan under 
     section 1112 in ways that have the greatest likelihood of 
     improving the performance of its schools in meeting the 
     State's performance standards.
       ``(5) For each local educational agency identified under 
     paragraph (3), the State educational agency shall--
       ``(A) provide technical assistance to better enable the 
     local educational agency to develop and implement its revised 
     plan and work with schools needing improvement; and
       ``(B) make available to the districts farthest from meeting 
     the State's standards, if requested, assistance from 
     Distinguished Educators under subsection (e).
       ``(6)(A) 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) Corrective actions are those listed in the local 
     educational agency plan adopted in compliance with State law, 
     which may include, but are not limited to, reconstitution of 
     district personnel; 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; removal of particular schools from the 
     jurisdiction of the local educational agency and 
     establishment of alternative arrangements for governing and 
     supervising such schools; the abolition or restructuring of 
     the local educational agency; and the withholding of funds.
       ``(C)(i) At any time after a local education agency has 
     been identified under paragraph (3), the State may authorize 
     students eligible for assistance under this title to transfer 
     to another public school in another local agency receiving 
     funds under this title.
       ``(ii) During the fourth and subsequent years following the 
     identification of a local education agency under paragraph 
     (3), the State shall authorize students eligible for 
     assistance under this title to transfer to another public 
     school in another local education agency receiving funds 
     under this title.
       ``(iii) Funds allocated for a student under this title 
     shall follow such student when transferring to another 
     school.
       ``(7) Local educational agencies that for at least two of 
     the three years following identification under paragraph (3) 
     make adequate progress toward meeting the State's standards 
     no longer need to be identified for district improvement.
       ``(e) Distinguished Educators.--(1) In order to provide 
     assistance to schools and local educational agencies 
     identified as needing improvement under subsection (c) or 
     (d), each State, using funds available under section 1002(f), 
     shall establish a corps of Distinguished Educators.
       ``(2) When possible, these Distinguished Educators shall be 
     chosen from schools served under this part that have been 
     especially successful in enabling children to meet or make 
     outstanding progress toward meeting the State's performance 
     standards, such as those schools described in subsection (b).
       ``(3) Distinguished Educators shall provide, upon request, 
     intensive and sustained assistance to the schools and 
     districts farthest from meeting the State's standards as they 
     revise and implement their plans.
       ``(4) If the State has devised an alternative approach to 
     providing such intensive and sustained assistance to schools 
     and districts farthest from meeting the State's standards, 
     this approach shall meet the requirements of this subsection 
     subject to the approval of the Secretary as part of the State 
     plan.
       ``(f) State Allocations For School Improvement.--From the 
     amount appropriated under section 1002(f) for any fiscal 
     year, each State shall be eligible to receive an amount that 
     bears the same ratio to the amount appropriated as the amount 
     allocated to the State under sections 1123 and 1124 bears to 
     the total amount allocated to all States under those 
     sections, except that each State shall receive at least 
     $180,000, or $30,000 in the case of Guam, American Samoa, the 
     Virgin Islands, the Northern Marianas, and Palau (until the 
     Compact of Free Association goes into effect).

     ``SEC. 1120. FISCAL REQUIREMENTS.

       ``(a) Maintenance of Effort.--A local educational agency 
     may receive funds under this part for any fiscal year only if 
     the State educational agency finds that the local educational 
     agency has maintained its fiscal effort in accordance with 
     section 9501 of this Act, including such effort for 
     professional development activities.
       ``(b) Federal Funds To Supplement, Not Supplant, Non-
     Federal Funds.--(1)(A) Except as provided in subparagraph 
     (B), a State or local educational agency shall use funds 
     received under this part only to supplement the amount of 
     funds that would, in the absence of such Federal funds, be 
     made available from non-Federal sources for the education of 
     pupils participating in programs assisted under this part, 
     and not to supplant such funds.
       ``(B) For the purpose of complying with subparagraph (A), a 
     State or local educational agency may exclude supplemental 
     State and local funds expended in any eligible school 
     attendance area or school for programs that meet the 
     requirements of section 1114 or 1115.
       ``(2) No local educational agency shall be required to 
     provide services under this part through a particular 
     instructional method or in a particular instructional setting 
     in order to demonstrate its compliance with paragraph (1).
       ``(c) Comparability of Services.--(1)(A) Except as provided 
     in paragraphs (4) and (5), a local educational agency may 
     receive funds under this part only if State and local funds 
     will be used in schools served under this part to provide 
     services that, taken as a whole, are at least comparable to 
     services in schools that are not receiving funds under this 
     part.
       ``(B) If the local educational agency is serving all of its 
     schools under this part, such agency may receive funds under 
     this part only if it will use State and local funds to 
     provide services that, taken as a whole, are substantially 
     comparable in each school.
       ``(C) A local educational agency may meet the requirements 
     of subparagraphs (A) and (B) on a grade-span by grade-span 
     basis or a school-by-school basis.
       ``(2)(A) To meet the requirements of paragraph (1), a local 
     educational agency shall demonstrate that--
       ``(i) expenditures per pupil from State and local funds in 
     each school served under this part are equal to or greater 
     than the average expenditures per pupil in schools not 
     receiving services under this part; or
       ``(ii) it has adopted a districtwide salary schedule.
       ``(B) A local educational agency need not include 
     unpredictable changes in student enrollment or personnel 
     assignments that occur after the beginning of a school year 
     in determining comparability of services under this 
     subsection.
       ``(3) Each local educational agency shall--
       ``(A) develop procedures for compliance with this 
     subsection; and
       ``(B) maintain records that are updated biennially 
     documenting its compliance.
       ``(4) This subsection shall not apply to a local 
     educational agency that does not have more than one building 
     for each grade span.
       ``(5) For the purpose of determining compliance with 
     paragraph (1), a local educational agency may exclude State 
     and local funds expended for--
       ``(A) bilingual education for children of limited English 
     proficiency; and
       ``(B) excess costs of providing services to children with 
     disabilities.

                        ``Subpart 2--Allocations

     ``SEC. 1122. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY 
                   OF THE INTERIOR.

       ``(a) Reservation of Funds.--From the amount appropriated 
     for payments to States 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 (b).
       ``(b) Allotment to the Secretary of the Interior.--
       ``(1) The amount allotted 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 
     and secondary schools for Indian children operated or 
     supported by the Department of the Interior; and
       ``(B) out-of-State Indian children in elementary and 
     secondary schools in local educational agencies under special 
     contracts with the Department of the Interior.
       ``(2) From the amount allotted 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 of 
     Education determines will best carry out the purposes of this 
     part, with respect to out-of-State Indian children described 
     in paragraph (1). 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. 1123. ALLOCATIONS TO STATES.

       ``(a) General.--For each fiscal year, an amount of the 
     appropriations for this part equal to the appropriation for 
     fiscal year 1994 for part A of chapter 1, title I, Elementary 
     and Secondary Education Act, shall be allocated in accordance 
     with sections 1124 and 1124A. Any additional appropriations 
     for this part for any fiscal year, after application of the 
     preceding sentence, shall be allocated in accordance with 
     section 1125.
       ``(b) Adjustments Where Necessitated by Appropriations.--
       ``(1) If the sums 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) of 
     this section.
       ``(2) 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 they were reduced.
       ``(c) Hold-Harmless Amounts.--Notwithstanding subsection 
     (b), the total amount made available to each local 
     educational agency under each of sections 1124 and 1125 for 
     any fiscal year shall be at least 85 percent of the total 
     amount such local educational agency was allocated under such 
     sections (or, for fiscal year 1995, their predecessor 
     authorities) for the preceding fiscal year.
       ``(d) Definition.--For the purpose of this section and 
     sections 1124 and 1125, the term State means each of the 50 
     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.--
       ``(A) The grant which a local educational agency in a State 
     is eligible to receive under this subpart for a fiscal year 
     shall (except as provided in section 1126), be determined by 
     multiplying the number of children counted under subsection 
     (c) by 40 percent of the amount determined under the next 
     sentence. The amount determined under this sentence shall be 
     the average per pupil expenditure in the State except that 
     (i) if the average per pupil expenditure in the State is less 
     than 80 percent of the average per pupil expenditure in the 
     United States, such amount shall be 80 percent of the average 
     per pupil expenditure in the United States, or (ii) if the 
     average per pupil expenditure in the State is more than 120 
     percent of the average per pupil expenditure in the United 
     States, such amount shall be 120 percent of the average per 
     pupil expenditure in the United States. For each local 
     educational agency serving an area with a total population of 
     at least 20,000 persons, the grant under this section shall 
     be the amount determined by the Secretary. For local 
     educational agencies serving areas with total population of 
     fewer than 20,000 persons, the State education agency may 
     either (I) distribute to such local educational agencies 
     grants under this section equal to the amounts determined by 
     the Secretary; or (II) use an alternative method, approved by 
     the Secretary, to distribute the share of the State's total 
     grants under this section that is based on local educational 
     agencies with total populations of fewer than 20,000 persons. 
     Such an alternative method of distributing grants under this 
     section among a State's local educational agencies serving 
     areas with total populations of fewer than 20,000 persons 
     shall be based upon population data that the State education 
     agency determines best reflect the current distribution of 
     children in poor families among the State's local educational 
     agencies serving areas with total populations of fewer than 
     20,000 persons. If a local educational agency serving an area 
     with total population of less than 20,000 persons is 
     dissatisfied with the determination of its grant by the State 
     education agency, then it may appeal this determination to 
     the Secretary. The Secretary must respond to this appeal 
     within 45 days of receipt. The Secretary shall consult with 
     the Secretary of Commerce regarding whether available data on 
     population for local educational agencies serving areas with 
     total populations of fewer than 20,000 persons are 
     sufficiently reliable to be used to determine final grants to 
     such areas.
       ``(B) If, and only if, there are portions of any of the 
     States for which the Department of Commerce has not prepared 
     data on the number of children, aged 5-17, from families 
     below the poverty level for local educational agencies, then 
     the Secretary shall use such data compiled for counties in 
     those portions of the States, treating the counties as if 
     they were local educational agencies. In such cases, subject 
     to section 1126, the grant for any local educational agency 
     in such an area of a State shall be determined on the basis 
     of the aggregate amount of such grants for all such agencies 
     in the county or counties in which the school district of the 
     particular agency is located, which aggregate amount shall be 
     equal to the aggregate amount determined under subparagraph 
     (A) for such county or counties, and shall be allocated among 
     those agencies upon such equitable basis as may be determined 
     by the State educational agency in accordance with basic 
     criteria prescribed by the Secretary.
       ``(C) 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 subpart 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--
       ``(i) the percentage determined under the preceding 
     sentence; and
       ``(ii) 32 percent of the average per pupil expenditure in 
     the United States.
       ``(2) Definition.--For purposes of this subsection, the 
     term `State' does not include Guam, American Samoa, the 
     Virgin Islands, the Northern Mariana Islands, and Palau.
       ``(b) Minimum Number of Children To Qualify.--A local 
     educational agency shall be eligible for a basic grant for a 
     fiscal year under this subpart only if the number of children 
     counted under subsection (c) in the school district of such 
     local educational agency is at least 10.
       ``(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 
     paragraph (2)(A),
       ``(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 (2)(B), and
       ``(C) the number of children aged 5 to 17, inclusive, in 
     the school district of such agency in institutions for 
     neglected and delinquent children (other than such 
     institutions operated by the United States) or attending 
     community day programs for such children, but not counted 
     pursuant to subpart 3 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.--
       ``(A) 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 available from the Department 
     of Commerce for local educational agencies (as produced and 
     published under section 181a of title 13, United States 
     Code). If, and only if, there are portions of any of the 
     States for which the Department of Commerce has not prepared 
     data on the number of children, aged 5-17, from families 
     below the poverty level for local educational agencies, then 
     the Secretary shall use such data compiled for counties in 
     those portions of the States, treating the counties as if 
     they were local educational agencies. The District of 
     Columbia and the Commonwealth of Puerto Rico shall be treated 
     as individual local educational agencies. If a local 
     educational agency contains two or more counties in their 
     entirety, then each county will be treated as if it 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 
     shall distribute to schools in each county within it 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. If the 
     Department of Commerce has updated data on the number of 
     children, aged 5-17, from families below the poverty level 
     for local educational agencies, then the Secretary shall use 
     the updated data. 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.
       ``(B) 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 the program of aid to families with dependent 
     children under a State plan approved under title IV of the 
     Social Security Act; and 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 of such ages 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.
       ``(C) 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 subparagraph (A) of this 
     paragraph) 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. 
     For purposes of this section, the Secretary shall consider 
     all children who are in correctional institutions to be 
     living in institutions for delinquent children.
       ``(d) State Minimum.--
       ``(1) The aggregate amount allotted for all local 
     educational agencies within a State may not be less than one-
     quarter of 1 percent of the total amount available for such 
     fiscal year under this section.
       ``(2)(A) No State shall, by reason of the application of 
     the provisions of paragraph (1) of this subsection, be 
     allotted more than--
       ``(i) 150 percent of the amount that the State received in 
     the fiscal year preceding the fiscal year for which the 
     determination is made, or
       ``(ii) the amount calculated under subparagraph (B), 
     whichever is less.
       ``(B) For the purpose of subparagraph (A)(ii), the amount 
     for each State equals--
       ``(i) the number of children in such State counted under 
     subsection (c) in the fiscal year specified in subparagraph 
     (A), multiplied by
       ``(ii) 150 percent of the national average per pupil 
     payment made with funds available under this section for that 
     year.

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

       ``(a) Eligibility for and Amount of Grants.--
       ``(1)(A) Except as otherwise provided in this paragraph, 
     each local educational agency, in a State other than Guam, 
     American Samoa, the Virgin Islands, the Northern Mariana 
     Islands, and Palau, which is eligible for a grant under this 
     part for any fiscal year shall be entitled to an additional 
     grant under this section for that fiscal year if--0
       ``(i) the number of children counted under section 1124(c) 
     of this part in the local educational agency for the 
     preceding fiscal year exceeds 6,500, or
       ``(ii) the number of children counted under section 1124(c) 
     exceeds 15 percent of the total number of children aged five 
     to seventeen, inclusive, in the local educational agency in 
     that fiscal year.
       ``(B) Except as provided in subparagraph (C), no State 
     described in subparagraph (A) shall receive less than--
       ``(i) one-quarter of 1 percent of the sums appropriated 
     under paragraph (6) of this section for such fiscal year; or
       ``(ii) $250,000, whichever is higher.
       ``(C) No State shall, by reason of the application of the 
     provisions of subparagraph (B)(i) of this paragraph, be 
     allotted more than--
       ``(i) 150 percent of the amount that the State received in 
     the fiscal year preceding the fiscal year for which the 
     determination is made, or
       ``(ii) the amount calculated under subparagraph (D), 
     whichever is less.
       ``(D) For the purpose of subparagraph (C), the amount for 
     each State equals--
       ``(i) the number of children in such State counted for 
     purposes of this section in the fiscal year specified in 
     subparagraph (B), multiplied by
       ``(ii) 150 percent of the national average per pupil 
     payment made with funds available under this section for that 
     year.
       ``(2) For each 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 greater of--
       ``(i) the number of children in excess of 6,500 counted 
     under section 1124(c) for the preceding fiscal year, in a 
     local educational agency which qualifies on the basis of 
     subparagraph (A)(i) of paragraph (1); or
       ``(ii) the number of children counted under section 1124(c) 
     for the preceding fiscal year in a local educational agency 
     which qualifies on the basis of subparagraph (A)(ii) of 
     paragraph (1); and
       ``(B) the quotient resulting from the division of the 
     amount determined for those agencies under section 1124(a)(1) 
     for the fiscal year for which the determination is being made 
     divided by the total number of children counted under section 
     1124(c) for that agency for the preceding fiscal year.
       ``(3) The amount of the additional grant to which an 
     eligible local educational agency is entitled under this 
     section for any fiscal year shall be an amount which bears 
     the same ratio to the amount reserved under paragraph (6) 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) For the purposes of this section, the Secretary shall 
     determine the number of children counted under section 
     1124(c) for any local educational agency, and the total 
     number of children aged five to seventeen, inclusive, in 
     local educational agencies, on the basis of the most recent 
     satisfactory data available at the time the payment for such 
     local educational agency is determined under section 1124.
       ``(5)(A) For each local educational agency serving an area 
     with a total population of at least 20,000 persons, the grant 
     under this section shall be the amount determined by the 
     Secretary. For local educational agencies serving areas with 
     total populations of fewer than 20,000 persons, the State 
     education agency may either (i) distribute to such local 
     educational agencies grants under this section equal to the 
     amounts determined by the Secretary; or (ii) use an 
     alternative method, approved by the Secretary, to distribute 
     the share of the State's total grants under this section that 
     is based on local educational agencies with total populations 
     of fewer than 20,000 persons. Such an alternative method of 
     distributing grants under this section among a State's local 
     educational agencies serving areas with total populations of 
     fewer than 20,000 persons shall be based upon population data 
     that the State education agency determines best reflects the 
     current distribution of children in poor families among the 
     State's local educational agencies serving areas with total 
     populations of fewer than 20,000 persons and meeting the 
     eligibility criteria of paragraph (1)(A). If a local 
     educational agency serving an area with total population of 
     less than 20,000 persons is dissatisfied with the 
     determination of its grant by the State education agency, 
     then it may appeal this determination to the Secretary. The 
     Secretary must respond to this appeal within 45 days of 
     receipt. The Secretary shall consult with the Secretary of 
     Commerce regarding whether available data on population for 
     local educational agencies serving areas with total 
     populations of fewer than 20,000 persons are sufficiently 
     reliable to be used to determine final grants to such areas 
     meeting the eligibility criteria of paragraph (1)(A).
       ``(B) If, and only if, there are portions of any of the 
     States for which the Department of Commerce has not prepared 
     data on the number of children, aged 5-17, from families 
     below the poverty level for local educational agencies, then 
     the Secretary shall use such data compiled for counties in 
     those portions of the States, treating the counties as if 
     they were local educational agencies. In such cases, subject 
     to section 1126, the grant for any local educational agency 
     in such an area of a State shall be determined on the basis 
     of the aggregate amount of such grants for all such agencies 
     in the county or counties in which the school district of the 
     particular agency is located, which aggregate amount shall be 
     equal to the aggregate amount determined under subparagraph 
     (A) for such county or counties, and shall be allocated among 
     those agencies upon such equitable basis as may be determined 
     by the State educational agency in accordance with the basic 
     criteria prescribed by the Secretary.
       ``(b) Reservation of Funds.--Of the total amount of funds 
     available for sections 1124 and 1124A, 10 percent of the 
     amount appropriated for that fiscal year shall be available 
     to carry out this section.
       ``(c) Ratable Reduction Rule.--If the sums available under 
     subsection (b) for any fiscal year for making payments under 
     this section are not sufficient to pay in full the total 
     amounts which all States are entitled to receive under 
     subsection (a) for such fiscal year, the maximum amounts 
     which all States are entitled to receive under subsection (a) 
     for such fiscal year shall be ratably reduced. In case 
     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.

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

       ``(a) Eligibility of Local Educational Agencies.--A local 
     educational agency in a State is eligible to receive a 
     targeted grant under this section for any fiscal year if the 
     number of children in the local educational agency under 
     subsection 1124(c), before application of the weighting 
     factor, is at least 10.
       ``(b) Grants for Local Educational Agencies, the District 
     of Columbia, and Puerto Rico.--(1) The amount of the grant 
     that a local educational agency in a State or that the 
     District of Columbia is eligible to receive under this 
     section for any fiscal year shall be the product of--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) the amount in the second sentence of subparagraph 
     1124(a)(1)(A).
       ``(2) For each fiscal year, the amount of the grant for 
     which the Commonwealth of Puerto Rico is eligible under this 
     section shall be equal to the number of children counted 
     under subsection (c) for Puerto Rico, multiplied by the 
     amount determined in subparagraph 1124(a)(1)(C).
       ``(c) Children To Be Counted.--
       ``(1) Categories of children.--The number of children to be 
     counted for purposes of this section shall be the number 
     counted in subsection 1124(c) multiplied by the weighting 
     factor for the local educational agency. The weighting factor 
     shall be established on the basis of the percentage that the 
     number of children counted under section 1124(c) represents 
     of the total population aged 5-17 years in the local 
     educational agency or the number of such children. Weighted 
     pupil counts will be calculated based upon both percentage 
     and number and the larger of the two counts will be used in 
     calculating grants for each local educational agency. 
     Weighting factors shall be assigned according to the 
     following scale: if the percentage is greater than 0 but less 
     than 14.265, the weighting factor shall be 1.00 for all 
     children counted in section 1124(c); if the percentage is 
     greater than 14.265 but less than 21.553, the weighting 
     factor shall be 1.00 for a number of children counted in 
     section 1124(c) equal to 14.265 percent of the total school 
     age population and 1.50 for children counted under section 
     1124(c) in excess of 14.265 percent of the total school age 
     population; if the percentage is greater than 21.553 percent 
     but less than 29.223 percent, then the weighting factor shall 
     be 1.00 for a number of children counted in section 1124(c) 
     equal to 14.265 percent of the total school age population, 
     1.50 for a number of children counted under section 1124(c) 
     equal to 7.288 percent of the total school age population, 
     and 2.00 for children counted under section 1124(c) in excess 
     of 21.553 percent of the total school age population; if the 
     percentage is greater than 29.223 percent but less than 
     36.538 percent, then the weighting factor shall be 1.00 for a 
     number of children counted in section 1124(c) equal to 14.265 
     percent of the total school age population, 1.50 for a number 
     of children counted under section 1124(c) equal to 7.288 
     percent of the total school age population, 2.00 for a number 
     of children counted under section 1124(c) equal to 7.67 
     percent of the total school age population, and 2.50 for 
     children counted under section 1124(c) in excess of 29.223 
     percent of the total school age population; and if the 
     percentage is greater than 36.538, then the weighting factor 
     shall be 1.00 for a number of children counted in section 
     1124(c) equal to 14.265 percent of the total school age 
     population, 1.50 for a number of children counted under 
     section 1124(c) equal to 7.288 percent of the total school 
     age population, 2.00 for a number of children counted under 
     section 1124(c) equal to 7.67 percent of the total school age 
     population, 2.50 for a number of children counted in section 
     1124(c) equal to 7.315 percent of the total school age 
     population, and 3.00 for children counted in section 1124(c) 
     in excess of 36.538 percent of the total school age 
     population. Separately, if the number of children counted 
     under section 1124(c) is greater than 0 but less than 575, 
     the weighting factor shall be 1.00 for all children counted 
     in section 1124(c); if the number is greater than 575 but 
     less than 1,870, the weighting factor shall be 1.00 for a 
     number of children counted in section 1124(c) equal to 575, 
     and 1.50 for children counted under section 1124(c) in excess 
     of 575; if the number is greater than 1,870 but less than 
     6,910, then the weighting factor shall be 1.00 for a number 
     of children counted in section 1124(c) equal to 575, 1.50 for 
     a number of children counted under section 1124(c) equal to 
     1,295, and 2.00 for children counted under section 1124(c) in 
     excess of 1,870; if the number is greater than 6,910 but less 
     than 42,000 then the weighting factor shall be 1.00 for a 
     number of children counted in section 1124(c) equal to 575, 
     1.50 for a number of children counted under section 1124(c) 
     equal to 1,295, 2.00 for a number of children counted under 
     section 1124(c) equal to 5,040, and 2.50 for children counted 
     under section 1124(c) in excess of 6,910; and if the number 
     is greater than 42,000, then the weighting factor shall be 
     1.00 for a number of children counted in section 1124(c) 
     equal to 575, 1.50 for a number of children counted under 
     section 1124(c) equal to 1,295, 2.00 for a number of children 
     counted under section 1124(c) equal to 5,040, 2.50 for a 
     number of children counted in section 1124(c) equal to 35,090 
     and 3.00 for children counted in section 1124(c) in excess of 
     42,000. For the Commonwealth of Puerto Rico, the weighting 
     factor shall be no greater than 1.62.
       ``(d) Local Educational Agency Allocations.--For each local 
     educational agency serving an area with a total population of 
     at least 20,000 persons, the grant under this section shall 
     be the amount determined by the Secretary. For local 
     educational agencies serving areas with total populations of 
     fewer than 20,000 persons, the State education agency may 
     either (1) distribute to such local educational agencies 
     grants under this section equal to the amounts determined by 
     the Secretary; or (2) use an alternative method, approved by 
     the Secretary, to distribute the share of the State's total 
     grants under this section that is based on local educational 
     agencies with total populations of fewer than 20,000 persons. 
     Such an alternative method of distributing grants under this 
     section among a State's local educational agencies serving 
     areas with total populations of fewer than 20,000 persons 
     shall be based upon population data that the State education 
     agency determines best reflects the current distribution of 
     children in poor families among the State's local educational 
     agencies serving areas with total populations of fewer than 
     20,000 persons. If a local educational agency serving an area 
     with total populations of less than 20,000 persons is 
     dissatisfied with the determination of its grant by the State 
     education agency, then it may appeal this determination to 
     the Secretary. The Secretary must respond to this appeal 
     within 45 days of receipt. If, and only if, there are 
     portions of any of the States for which the Department of 
     Commerce has not prepared data on the number of children, 
     aged 5-17, from families below the poverty level for local 
     educational agencies, then the Secretary shall use such data 
     compiled for counties in those portions of the States, 
     treating the counties as if they were local educational 
     agencies. The Secretary shall consult with the Secretary of 
     Commerce regarding whether available data on population for 
     local educational agencies serving areas with total 
     populations of fewer than 20,000 persons are sufficiently 
     reliable to be used to determine final grants to such areas.
       ``(d) State Minimum.--Notwithstanding any other provision 
     of this section, from the total amount available for any 
     fiscal year to carry out this section, each State shall be 
     allotted at least the lesser of--
       ``(1) one quarter of one percent of such amount;
       ``(2) 150 percent of the national average grant under this 
     section per child described in section 1124(c), without 
     application of a weighting factor, multiplied by the State's 
     total number of children described in section 1124(c), 
     without application of a weighting factor.

     ``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

       ``(a) Allocations for Neglected or Delinquent Children.--
     (1) 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 subparagraph 1124(c)(1)(C), the State 
     educational agency shall, if it 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) 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 between and among the 
     affected local educational agencies when--
       ``(1) two or more local educational agencies serve, in 
     whole or in part, the same geographical area; or
       ``(2) a local educational agency provides free public 
     education for children who reside in the school district of 
     another local educational agency.
       ``(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 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 412 
     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 
     three 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.

                ``Subpart 3--Presidential Awards Program

     ``SEC. 1131. PRESIDENTIAL AWARDS PROGRAM.

       ``(a) Development.--The Secretary shall, in consultation 
     with the chairpersons and ranking minority members of the 
     Committee on Education and Labor for the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate and educational leaders, develop a 
     Presidential awards program that will recognize and provide a 
     cash award to schools that excel in educating their students 
     to high levels as defined by the National Education Goals and 
     the standards certified by the National Education Standards 
     and Improvement Council established under the Goals 2000: 
     Educate America Act.
       ``(b) Nominations.--Schools recognized under this program 
     will be selected by the Secretary from a list of nominees. 
     Each State shall select a nominee to be submitted to the 
     Secretary from among schools designated as distinguished 
     schools under section 1119.
       ``(c) Selection.--The Secretary shall annually convene a 
     panel of experts who will review nominated schools and select 
     those who will receive awards. In addition to Presidential 
     recognition, selected schools will receive a cash award which 
     may be applied without restriction to enhance the educational 
     programs in that schools or to provide cash awards to 
     personnel in the school.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart such 
     sums as may be necessary for each of fiscal years 1995, 1996, 
     1997, 1998, and 1999.

             ``PART B--EVEN START FAMILY LITERACY PROGRAMS

     ``SEC. 1201. STATEMENT OF PURPOSE.

       ``It is the purpose of this part to help break the cycle of 
     poverty and illiteracy by improving the educational 
     opportunities of the Nation's low-income families by 
     integrating early childhood education, adult literacy or 
     adult basic education, and parenting education into a unified 
     family literacy program, to be referred to as `Even Start', 
     that is implemented through cooperative projects that build 
     on existing community resources to create a new range of 
     services, that promotes achievement of the National Education 
     Goals, and that assists children and adults from low-income 
     families to achieve challenging State standards.

     ``SEC. 1202. PROGRAM AUTHORIZED.

       ``(a) Reservation for Migrant Programs, Outlying Areas, 
     Indian Tribes, and Other Purposes.--(1) In each fiscal year, 
     the Secretary shall reserve not less than 5 percent of the 
     amount appropriated under section 1002(b) of this title for 
     programs, under such terms and conditions as the Secretary 
     shall establish, that are consistent with the purpose of this 
     part, and according to their relative needs, for--
       ``(A) children of migratory workers;
       ``(B) the outlying areas;
       ``(C) Indian tribes and tribal organizations; and
       ``(2) If the amount of funds made available under 
     subsection (a) exceeds $4,600,000, the Secretary shall make a 
     grant of sufficient size and for a period of sufficient 
     duration to demonstrate the effectiveness of a family 
     literacy program in a prison that houses women and their 
     preschool age children and that has the capability of 
     developing a program of high quality.
       ``(b) Reservation for Federal Activities.--From amounts 
     appropriated under section 1002(b), the Secretary may reserve 
     not more than three percent of such amounts or the amount 
     reserved for such purposes in the fiscal year 1994, whichever 
     is greater, for purposes of--
       ``(1) carrying out the evaluation required by section 1209; 
     and
       ``(2) providing, through grants or contracts, technical 
     assistance, program improvement, and replication activities 
     through eligible organizations.
       ``(c) State Allocation.--(1) After reserving funds under 
     subsections (a) and (b), the Secretary shall allocate the 
     remaining funds appropriated for this part to States, to be 
     used in accordance with section 1203.
       ``(2) Except as provided in paragraph (3), from the total 
     amount available for allocation to States in any fiscal year, 
     each State shall be eligible to receive a grant under 
     paragraph (1) in an amount that bears the same ratio to such 
     total amount as the amount allocated to such State under 
     section 1122 of this title bears to the total amount 
     allocated under that section to all the States.
       ``(3) No State shall receive less than $250,000 under 
     paragraph (1) for any fiscal year.
       ``(d) Definitions.--For the purpose of this part--
       ``(1) the term `eligible entity' means a partnership 
     composed of both--
       ``(A) a local educational agency; and
       ``(B) a nonprofit community-based organization, public 
     agency, institution of higher education, or other public or 
     private nonprofit organization of demonstrated quality;
       ``(2) the terms `Indian tribe' and `tribal organization' 
     have the meanings given such terms in section 4 of the Indian 
     Self-Determination and Education Assistance Act;
       ``(3) the term `State' includes each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico; 
     and
       ``(4) the term `eligible organization' means any public or 
     private nonprofit organization with a record of providing 
     effective services to family literacy providers, such as the 
     National Center for Family Literacy, Parents as Teachers, 
     Inc., and the Home Instruction Program for Preschool 
     Youngsters.

     ``SEC. 1203. STATE PROGRAMS.

       ``(a) State-Level Activities.--Each State that receives a 
     grant under section 1202(c)(1) may use not more than 5 
     percent for--
       ``(1) administrative costs; and
       ``(2) the provision, through one or more subgrants or 
     contracts, of access to technical assistance for program 
     improvement and replication to eligible entities that receive 
     subgrants under subsection (b).
       ``(b) Subgrants for Local Programs.--(1) Each State shall 
     use the remainder of its grant to make subgrants to eligible 
     entities to carry out Even Start programs.
       ``(2) No State shall award a subgrant under paragraph (1) 
     for an amount less than $75,000.

     ``SEC. 1204. USES OF FUNDS.

       ``(a) In General.--In carrying out an Even Start program 
     under this part, a recipient of funds under this part shall 
     use such funds to pay the Federal share of the cost of 
     providing family-centered education programs that involve 
     parents and children, from birth through age 7, in a 
     cooperative effort to help parents become full partners in 
     the education of their children and to assist children in 
     reaching their full potential as learners.
       ``(b) Federal Share Limitation.--(1)(A) Except as provided 
     in paragraph (2), the Federal share under this part may not 
     exceed--
       ``(i) 90 percent of the total cost of the program in the 
     first year that that program receives assistance under this 
     part or its predecessor authority;
       ``(ii) 80 percent in the second such year;
       ``(iii) 70 percent in the third such year;
       ``(iv) 60 percent in the fourth such year; and
       ``(v) 50 percent in any subsequent such year.
       ``(B) The remaining cost of a program under this part may 
     be provided in cash or in kind, fairly evaluated, and may be 
     obtained from any source other than funds received under this 
     title.
       ``(2) The State educational agency may waive, in whole or 
     in part, the cost-sharing requirement of paragraph (1) if an 
     eligible entity--
       ``(A) demonstrates that it otherwise would not be able to 
     participate in the program under this part; and
       ``(B) negotiates an agreement with the State educational 
     agency with respect to the amount of the remaining cost to 
     which the waiver would be applicable.
       ``(3) Federal funds under this part may not be used for the 
     indirect costs of an Even Start program, except that the 
     Secretary may waive this limitation if a recipient of funds 
     reserved under section 1202(a)(3) demonstrates to the 
     Secretary's satisfaction that it otherwise would not be able 
     to participate in the program under this part.

     ``SEC. 1205 PROGRAM ELEMENTS.

       ``Each Even Start program assisted under this part shall--
       ``(1) include the identification and recruitment of 
     families most in need of services provided under this part, 
     as indicated by a low level of income, a low level of adult 
     literacy or English language proficiency of the eligible 
     parent or parents, and other need-related indicators;
       ``(2) include screening and preparation of parents and 
     children to enable them to participate fully in the 
     activities and services provided under this part, including 
     testing, referral to necessary counselling, other 
     developmental and support services, and related services;
       ``(3) be designed to accommodate the participants' work 
     schedule and other responsibilities, including the provision 
     of support services, when unavailable from other sources, 
     necessary for participation, such as--
       ``(A) scheduling and locating of services to allow joint 
     participation by parents and children;
       ``(B) child care for the period that parents are involved 
     in the program provided under this part; and
       ``(C) transportation for the purpose of enabling parents 
     and their children to participate in programs authorized by 
     this part;
       ``(4) include high-quality instructional programs that 
     promote adult literacy, empower parents to support the 
     educational growth of their children, developmentally 
     appropriate early childhood educational services, and 
     preparation of children for success in regular school 
     programs;
       ``(5) include special training of staff, including child 
     care staff, to develop the skills necessary to work with 
     parents and young children in the full range of instructional 
     services offered through this part;
       ``(6) provide and monitor integrated instructional services 
     to participating parents and children through home-based 
     programs;
       ``(7) operate on a year-round basis, including the 
     provision of some program services, either instructional or 
     enrichment, or both, during the summer months;
       ``(8) be coordinated with--
       ``(A) programs assisted under other parts of this title and 
     this Act;
       ``(B) any relevant programs under the Adult Education Act, 
     the Individuals With Disabilities Education Act, and the Job 
     Training Partnership Act; and
       ``(C) the Head Start program, volunteer literacy programs, 
     and other relevant programs; and
       ``(9) provide for an independent evaluation of the program.

     ``SEC. 1206. ELIGIBLE PARTICIPANTS.

       ``(a) In General.--Except as provided in subsection (b), 
     eligible participants in an Even Start program are--
       ``(1) a parent or parents--
       ``(A) who are eligible for participation in an adult basic 
     education program under the Adult Education Act; or
       ``(B) who are within the State's compulsory school 
     attendance age range, so long as a local educational agency 
     provides (or ensures the availability of) the basic education 
     component required under this part; and
       ``(2) the child or children, from birth through age seven, 
     of any parent described in paragraph (1).
       ``(b) Eligibility for Certain Other Participants.--(1) 
     Family members other than those described in subsection (a) 
     may participate in program activities and services, when 
     deemed by the program to serve the purpose of this part.
       ``(2) Any family participating in a program under this part 
     that becomes ineligible for such participation as a result of 
     one or more members of the family becoming ineligible for 
     such participation may continue to participate in the program 
     until all members of the family become ineligible for 
     participation, which--
       ``(A) in the case of a family in which ineligibility was 
     due to the child or children of such family attaining the age 
     of eight, shall be in two years or when the parent or parents 
     become ineligible due to educational advancement, whichever 
     occurs first; and
       ``(B) in the case of a family in which ineligibility was 
     due to the educational advancement of the parent or parents 
     of such family, shall be when all children in the family 
     attain the age of eight.

     ``SEC. 1207. APPLICATIONS.

       ``(a) Submission.--To be eligible to receive a subgrant 
     under this part, an eligible entity shall submit an 
     application to the State educational agency in such form and 
     containing or accompanied by such information as the State 
     educational agency shall require.
       ``(b) Required Documentation.--Each application shall 
     include documentation, satisfactory to the State educational 
     agency, that the eligible entity has the qualified personnel 
     needed--
       ``(1) to develop, administer, and implement an Even Start 
     program under this part; and
       ``(2) to provide access to the special training necessary 
     to prepare staff for the program , which may be offered by an 
     eligible organization.
       ``(c) Plan.--Such application shall also include a plan of 
     operation for the program which shall include--
       ``(1) a description of the program goals;
       ``(2) a description of the activities and services that 
     will be provided under the program, including a description 
     of how the program will incorporate the program elements 
     required by section 1205;
       ``(3) a description of the population to be served and an 
     estimate of the number of participants;
       ``(4) as appropriate, a description of the applicant's 
     collaborative efforts with institutions of higher education, 
     community-based organizations, the State educational agency, 
     private elementary schools, or other eligible organizations 
     in carrying out the program for which assistance is sought;
       ``(5) a statement of the methods that will be used--
       ``(A) to ensure that the programs will serve families most 
     in need of the activities and services provided by this part;
       ``(B) to provide services under this part to individuals 
     with special needs, such as individuals with limited English 
     proficiency and individuals with disabilities; and
       ``(C) to encourage participants to remain in the program 
     for a time sufficient to meet the program's purpose; and
       ``(6) a description of how the plan--
       ``(A)(i) is consistent with and promotes the goals of the 
     State and local plans, either approved or being developed, 
     under title III of the Goals 2000: Educate America Act; and
       ``(ii) is consistent with the State and local plans under 
     sections 1111 and 1112; or
       ``(B) is consistent with the State and local plans under 
     sections 1111 and 1112 is the State does not have an approved 
     plan under title III of the Goals 2000: Educate America Act 
     and is not developing such a plan.
       ``(d) The plan described in subsection (c)(6) may be 
     submitted as part of a consolidated application under section 
     9302.

     ``SEC. 1208. AWARD OF SUBGRANTS.

       ``(a) Selection Process.--(1) The State educational agency 
     shall establish a review panel that will approve applications 
     that--
       ``(A) are most likely to be successful in meeting the 
     purpose of this part, and in effectively implementing the 
     program elements required under section 1205;
       ``(B) demonstrate that the area to be served by such 
     program has a high percentage or a large number of children 
     and families who are in need of such services as indicated by 
     high levels of poverty, illiteracy, unemployment, or limited 
     English proficiency;
       ``(C) provide services for at least a three-year age range, 
     which may begin at birth;
       ``(D) demonstrate the greatest possible cooperation and 
     coordination between a variety of relevant service providers 
     in all phases of the program;
       ``(E) include cost-effective budgets, given the scope of 
     the application;
       ``(F) demonstrate the applicant's ability to provide the 
     additional funding required by section 1204(b);
       ``(G) are representative of urban and rural regions of the 
     State; and
       ``(H) show the greatest promise for providing models that 
     may be adopted by other local educational agencies.
       ``(2) The State educational agency shall give priority for 
     subgrants under this subsection to proposals that either--
       ``(A) target services primarily to families described in 
     paragraph (1)(B); or
       ``(B) are located in areas designated as empowerment zones 
     or enterprise communities.
       ``(b) Review Panel.--A review panel shall consist of at 
     least three members, including one early childhood 
     professional, one adult education professional, and one or 
     more of the following individuals:
       ``(1) A representative of a parent-child education 
     organization.
       ``(2) A representative of a community-based literacy 
     organization.
       ``(3) A member of a local board of education.
       ``(4) A representative of business and industry with a 
     commitment to education.
       ``(5) An individual who has been involved in the 
     implementation of programs under this title in the State.
       ``(c) Duration.--(1) Subgrants may be awarded for a period 
     not to exceed four years.
       ``(2) The State educational agency may provide a 
     subgrantee, at the subgrantee's request, a 3- to 6-month 
     start-up period during the first year of the four-year 
     period, which may include staff recruitment and training, and 
     the coordination of services, before requiring full 
     implementation of the program.
       ``(3)(A) In reviewing any application for a subgrant to 
     continue a program for the second, third, or fourth year, the 
     State educational agency shall review the progress being made 
     toward meeting the objectives of the program after the 
     conclusion of the start-up period, if any.
       ``(B) The State educational agency may refuse to award a 
     subgrant if such agency finds that sufficient progress has 
     not been made toward meeting such objectives, but only after 
     affording the applicant notice and an opportunity for a 
     hearing.
       ``(4)(A) An eligible entity that has previously received a 
     subgrant under this part may reapply under the terms of this 
     part for a second project period.
       ``(B) During the second project period, the Federal share 
     of the subgrant shall not exceed 50 percent in any year.

     ``SEC. 1209. EVALUATION.

       ``From funds reserved under section 1202(b)(1), the 
     Secretary shall provide for an independent evaluation of 
     programs under this part--
       ``(1) to determine the performance and effectiveness of 
     programs; and
       ``(2) to identify effective Even Start projects that can be 
     replicated and used in providing technical assistance to 
     national, State, and local programs.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

     ``SEC. 1301. PROGRAM PURPOSE.

       ``It is the purpose of this part to assist States to--
       ``(1) support high-quality and comprehensive educational 
     programs for migratory children to help reduce the 
     educational disruptions and other problems that result from 
     repeated moves;
       ``(2) ensure that migratory children are provided with 
     appropriate educational services (including supportive 
     services) that address their special needs in a coordinated 
     and efficient manner;
       ``(3) ensure that migratory children have the opportunity 
     to meet the same challenging performance standards that all 
     children are expected to meet;
       ``(4) design programs to help migratory children overcome 
     educational disruption, cultural and language barriers, 
     social isolation, various health-related problems, and other 
     factors that inhibit their ability to do well in school, and 
     to prepare these children to make a successful transition to 
     postsecondary education or employment; and
       ``(5) ensure that migratory children benefit from State and 
     local systemic reforms.

     ``SEC. 1302. PROGRAM AUTHORIZED.

       ``In order to carry out the purpose of this part, the 
     Secretary shall make grants to State educational agencies, or 
     combinations of such agencies, to establish or improve, 
     directly or through local operating agencies, programs of 
     education for migratory children in accordance with this 
     part.

     ``SEC. 1303. STATE ALLOCATIONS.

       ``(a) State Allocations.--Each State (other than the 
     Commonwealth of Puerto Rico) is entitled to receive under 
     this part, for each fiscal year, an amount equal to--
       ``(1) the sum of the estimated number of migratory children 
     aged three through 21 who reside in the State full time and 
     the full-time equivalent of the estimated number of migratory 
     children aged three through 21 who reside in the State part 
     time, as determined in accordance with subsection (e); 
     multiplied by
       ``(2) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     paragraph shall not be less than 32 percent, or more than 48 
     percent, of the average expenditure per pupil in the United 
     States.
       ``(b) Allocation to Puerto Rico.--For each fiscal year, the 
     amount for which the Commonwealth of Puerto Rico is eligible 
     under this section shall be equal to--
       ``(1) the number of migratory children in Puerto Rico, 
     determined under subsection (a)(1); multiplied by
       ``(2) the product of--
       ``(A) the percentage that the average expenditure per pupil 
     in Puerto Rico is of the lowest average per-pupil expenditure 
     of any of the 50 States; and
       ``(B) 32 percent of the average expenditure per pupil in 
     the United States.
       ``(c) Ratable Reductions; Reallocations.--(1)(A) If, after 
     the Secretary reserves funds under section 1308(c), the 
     amount appropriated to carry out this part for any fiscal 
     year is insufficient to pay in full the amounts for which all 
     States are eligible, the Secretary shall ratably reduce each 
     such amount.
       ``(B) If additional funds become available for making such 
     payments for any fiscal year, the Secretary shall allocate 
     such funds to States in amounts that the Secretary finds 
     would best carry out the purpose of this part.
       ``(2)(A) The Secretary shall further reduce the amount of 
     any grant to a State under this part for any fiscal year if 
     the Secretary determines, based on available information on 
     the numbers and needs of migratory children in the State and 
     the program proposed by the State to address such needs, that 
     such amount exceeds the amount required under section 1304.
       ``(B) The Secretary shall reallocate such excess funds to 
     other States whose grants under this part would otherwise be 
     insufficient to provide an appropriate level of services to 
     migratory children, in such amounts as the Secretary 
     determines are appropriate.
       ``(d) Consortium Arrangements.--(1) In the case of a State 
     that receives a grant of $1,000,000 or less under this 
     section, the Secretary shall consult with the State 
     educational agency to determine whether consortium 
     arrangements with another State or other appropriate entity 
     would result in delivery of services in a more effective and 
     efficient manner.
       ``(2) A State, irrespective of the amount of its 
     allocation, may propose a consortium arrangement.
       ``(3) The Secretary shall approve a consortium arrangement 
     under paragraph (1) or (2) if the proposal demonstrates that 
     the arrangement will--
       ``(A) reduce administrative costs or program function costs 
     for State programs; and
       ``(B) make more funds available for direct services to add 
     substantially to the welfare or educational attainment of 
     children to be served under this part.
       ``(e) Determining Numbers of Eligible Children.--In order 
     to determine the estimated number of migratory children 
     residing in each State for purposes of this section, the 
     Secretary shall--
       ``(1) use such information as the Secretary finds most 
     accurately reflects the actual number of migratory children;
       ``(2) as soon as feasible develop and implement a procedure 
     for more accurately reflecting cost factors for different 
     types of summer program designs which will be used to adjust 
     the estimated number of children who reside in a State in 
     order to reflect the number of migratory children who are 
     served in summer programs (which may include intersession 
     programs) in the State and the additional costs of operating 
     such programs; and
       ``(3) conduct an analysis of the options for adjusting the 
     formula so as to better direct services to the child whose 
     education has been interrupted.

     ``SEC. 1304. STATE APPLICATIONS; SERVICES.

       ``(a) Application Required.--Any State wishing to receive a 
     grant under this part for any fiscal year shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require.
       ``(b) Program Information.--Each such application shall 
     include--
       ``(1) a description of how, in planning, implementing, and 
     evaluating programs and projects under this part, the State 
     and its operating agencies will ensure that the special 
     educational needs of migratory children are identified and 
     addressed through a comprehensive plan for needs assessment 
     and service delivery that meets the requirements of section 
     1306, including, when feasible, recording the migratory 
     status of such children and their average daily attendance on 
     State student collection data;
       ``(2) a description of the steps the State is taking to 
     provide migratory students with the opportunity to meet the 
     same challenging performance standards that all children are 
     expected to meet;
       ``(3) a description of how the State will use its funds to 
     promote interstate and intrastate coordination of services 
     for migratory children, including how, consistent with 
     procedures the Secretary may require, it will provide for 
     educational continuity through the timely transfer of 
     pertinent school records, including information on health, 
     when children move from one school to another, whether or not 
     during the regular school year;
       ``(4) a description of the State's priorities for the use 
     of funds received under this part, and how they relate to the 
     State's assessment of needs for services in the State;
       ``(5) a description of how the State will determine the 
     amount of any subgrants it will award to local operating 
     agencies, taking into account the requirements of paragraph 
     (1); and
       ``(6) such budgetary and other information as the Secretary 
     may require.
       ``(c) Assurances.--Each such application shall also include 
     assurances, satisfactory to the Secretary, that--
       ``(1) funds received under this part will be used only--
       ``(A) for programs and projects, including the acquisition 
     of equipment, in accordance with section 1306(b)(1); and
       ``(B) to coordinate such programs and projects with similar 
     programs and projects within the State and in other States, 
     as well as with other Federal programs that can benefit 
     migratory children and their families;
       ``(2) such programs and projects will be carried out in a 
     manner consistent with the objectives of sections 1114, 
     1115(b) and (d), 1120, and 1121(b) and (c), and part F of 
     this title;
       ``(3) in the planning and operation of programs and 
     projects at both the State and local operating agency level, 
     there is appropriate consultation with parent advisory 
     councils for programs lasting a school year, and that all 
     such programs and projects are carried out, to the extent 
     feasible, in a manner consistent with section 1118 of this 
     title;
       ``(4) in planning and carrying out such programs and 
     projects, there has been, and will be, adequate provision for 
     addressing the unmet education needs of preschool migratory 
     children;
       ``(5) the effectiveness of such programs and projects will 
     be determined, where feasible, using the same approaches and 
     standards that will be used to assess the performance of 
     students, schools, and local educational agencies under part 
     A of this title; and
       ``(6) the State will assist the Secretary in determining 
     the number of migratory children under section 1303(e), 
     through such procedures as the Secretary may require.
       ``(d) Priority for Services.--In providing services with 
     funds received under this part, each recipient of such funds 
     shall give priority to migratory children who are failing, or 
     most at risk of failing, to meet the State's challenging 
     performance standards, and whose education has been 
     interrupted during the regular school year.
       ``(e) Continuation of Services.--Notwithstanding any other 
     provision of this part--
       ``(1) a child who ceases to be a migratory child during a 
     school term shall be eligible for services until the end of 
     such term;
       ``(2) a child who is no longer a migratory child may 
     continue to receive services for one additional school year, 
     but only if comparable services are not available through 
     other programs; and
       ``(3) secondary school students who were eligible for 
     services in secondary school may continue to be served 
     through credit accrual programs until graduation.

     ``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.

       ``(a) Secretarial Approval.--The Secretary shall approve 
     each State application that meets the requirements of this 
     part.
       ``(b) Peer Review.--The Secretary may review any such 
     application with the assistance and advice of State officials 
     and other individuals with relevant expertise.

     ``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-
                   DELIVERY PLAN; AUTHORIZED ACTIVITIES.

       ``(a) Comprehensive Plan.--Each State that receives a grant 
     under this part shall ensure that the State and its local 
     operating agencies identify and address the special 
     educational needs of migratory children in accordance with a 
     comprehensive State plan that--
       ``(1)(A) is integrated with the State's plan, either 
     approved or being developed, under title III of the Goals 
     2000: Educate America Act and satisfies the requirements of 
     this section that are not already addressed by such State 
     plan; and
       ``(B) is integrated with other State plans, if any, under 
     the School-To-Work Opportunities Act of 1993 and the Carl D. 
     Perkins Vocational and Applied Technology Act to the extent 
     that such plans have not already been incorporated in the 
     State's plan under title III of the Goals 2000: Educate 
     America Act;
       ``(2) if the State does not have an approved plan under 
     title III of the Goals 2000: Educate America Act and is not 
     developing such a plan--
       ``(A) is integrated with other State plans, such as those 
     under the School-To-Work Opportunities Act of 1993 and the 
     Carl D. Perkins Vocational and Applied Technology Act, where 
     such plans exist; and
       ``(B) satisfies the requirements of this section;
       ``(3) may be submitted as a part of a consolidated 
     application under section 9302;
       ``(4) provides that migratory children will have an 
     opportunity to meet the same challenging performance 
     standards, set out in those plans, that all children are 
     expected to meet;
       ``(5) specifies measurable program goals and outcomes;
       ``(6) encompasses the full range of services that are 
     available for migratory children from appropriate local, 
     State and Federal educational programs;
       ``(7) is the product of joint planning among such local, 
     State, and Federal programs, including those under part A of 
     this title, early childhood programs, and bilingual education 
     programs under title VII of this Act;
       ``(8) provides for the integration of services available 
     under this part with services provided by such other 
     programs; and
       ``(9) to the extent feasible, provides for--
       ``(A) advocacy and outreach activities for migratory 
     children and their families, including informing them of, or 
     helping them gain access to, other education, health, 
     nutrition, and social services;
       ``(B) professional development programs, including 
     mentoring, for teachers and other program personnel;
       ``(C) parent involvement programs (as defined under section 
     1117) and, when feasible, the establishment of instructional 
     programs such as use of the model developed under the Even 
     Start Family Literacy Programs that promote adult literacy 
     and train parents to support the educational growth of their 
     children;
       ``(D) the integration of communication and information 
     technology into educational and related programs; and
       ``(E) programs to facilitate the transition of high school 
     students to postsecondary education or employment.

     A State may satisfy all or part of the requirements of this 
     section by referencing applicable sections of its approved 
     plan under title III of the Goals 2000: Educate America Act.
       ``(b) Authorized Activities.--(1) In implementing the 
     comprehensive plan described in subsection (a), each local 
     operating agency shall have the flexibility to determine the 
     activities to be provided with funds made available under 
     this part, provided that--
       ``(A) before funds provided under this part are used to 
     provide services described in subparagraph (B), those funds 
     shall be used to meet the identified needs of migratory 
     children that--
       ``(i) result from the effects of their migratory lifestyle, 
     or are needed to permit migratory children to participate 
     effectively in school; and
       ``(ii) are not addressed by services provided under other 
     programs, including part A of this title; and
       ``(B) all migratory children who are eligible to receive 
     services under part A of this title shall receive such 
     services with funds provided under this part or under part A 
     of this title.
       ``(2) This subsection shall not apply to funds under this 
     part that are used for schoolwide programs under section 1114 
     of this title.

     ``SEC. 1307. BYPASS.

       ``The Secretary may use all or part of any State's 
     allocation under this part to make arrangements with any 
     public or private nonprofit agency to carry out the purpose 
     of this part in such State if the Secretary determines that--
       ``(1) the State is unable or unwilling to conduct 
     educational programs for migratory children;
       ``(2) such arrangements would result in more efficient and 
     economic administration of such programs; or
       ``(3) such arrangements would add substantially to the 
     welfare or educational attainment of such children.

     ``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

       ``(a) Improvement of Coordination.--The Secretary, in 
     consultation with the States, may make grants to, or enter 
     into contracts with, State educational agencies, local 
     educational agencies, institutions of higher education, and 
     other public and private nonprofit entities to improve the 
     interstate and intrastate coordination among State and local 
     educational agencies of their educational programs, including 
     the establishment or improvement of programs for credit 
     accrual and exchange, available to migratory students. Grants 
     under this subpart may be made for up to 5 years.
       ``(b) Assistance and Reporting.--(1) Within 60 days of 
     enactment, the Secretary shall convene a panel of Chief State 
     School Officers and technical experts to assess alternative 
     methods by which student records may be transferred from one 
     school to another. Within 150 days of having been convened, 
     the panel shall make recommendations to the Secretary on how 
     schools may adopt the most cost-effective means of exchanging 
     of school records. The Secretary shall also develop the most 
     cost-effective and accurate method of determining the number 
     of students or full-time equivalent students in each State on 
     a yearly basis. The Secretary shall report to the Committee 
     on Education and Labor of the House of Representatives and 
     the Committee on Labor and Human Resources of the Senate the 
     panel's findings and the Secretary's recommendations.
       ``(2) The Secretary may contract for services for purposes 
     of this section.
       ``(c) Availability of Funds.--For the purpose of carrying 
     out this section, the Secretary shall reserve up to 
     $6,000,000 from the amount appropriated under section 1002(3) 
     for each fiscal year to carry out this part.
       ``(d) Competitive Grants.--From the amounts made available 
     for this section, the Secretary shall reserve not more than 
     $1,500,000 to award, on a competitive basis, grants in the 
     amount of up to $100,000 each to State educational agencies 
     with consortium agreements described under section 1303(d). 
     Not less than 10 of such grants shall be awarded to States 
     which receive allocations of less than $1,000,000 if such 
     States have approved agreements.

     ``SEC. 1309. DISTANCE LEARNING.

       ``(a) Program.--The Secretary may establish a distance 
     learning program to provide, through competitive grants, 
     continuity in the education of migrant children using 
     technology, interactive learning, computers, and automated 
     technology links achieved with modems and telephone networks.
       ``(b) Funds.--Not more than $3,000,000 may be used to 
     establish the program under subsection (a).

     ``SEC. 1310. DEFINITIONS.

       ``As used in this part, the following terms have the 
     following meanings:
       ``(1) The term `local operating agency' means--
       ``(A) a local educational agency to which a State 
     educational agency makes a subgrant under this part;
       ``(B) a public or nonprofit private agency with which a 
     State educational agency or the Secretary makes an 
     arrangement to carry out a project under this part; or
       ``(C) a State educational agency, if the State educational 
     agency operates the State's migrant education program or 
     projects directly.
       ``(2) The term `migratory child' means--
       ``(A) for fiscal year 1996 and subsequent years, a child 
     who is, or whose parent or spouse is, a migratory 
     agricultural worker (including a migratory dairy worker) or a 
     migratory fisher, and who, in the preceding 24 months, in 
     order to obtain, or accompany such parent or spouse in order 
     to obtain, temporary or seasonal employment in agricultural 
     or fishing work--
       ``(i) has moved from one local educational agency to 
     another; or
       ``(ii) in a State that is comprised of a single local 
     educational agency, has moved from one administrative area to 
     another within such agency; or
       ``(B) for fiscal year 1995 only, a child fulfilling the 
     requirements of subparagraph (A) for a period of 36 months 
     instead of for 24 months; and

``PART D--PREVENTION AND INTERVENTION SERVICES FOR DELINQUENT YOUTH AND 
                     YOUTH AT RISK OF DROPPING OUT

     ``SEC. 1401. FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

       ``(a) Findings.--Congress finds the following:
       ``(1) A large percentage of youth in the juvenile justice 
     system have poor academic achievement, are a year or more 
     behind grade level, and have dropped out of school.
       ``(2) There is a strong correlation between academic 
     failure and involvement in delinquent activities.
       ``(3) Preventing students from dropping out of local 
     schools and addressing the educational needs of delinquent 
     youth can help reduce the dropout rate and involvement in 
     delinquent activities at the same time.
       ``(4) Many schools and correctional facilities fail to 
     communicate regarding a youth's academic needs and students 
     often return to their home school ill-prepared to meet 
     current curriculum requirements.
       ``(5) Schools are often reluctant to deal with youth 
     returning from facilities and receive no funds to deal with 
     the unique educational and other needs of such youth.
       ``(6) A continuing need exists for activities and programs 
     to reduce the incidence of youth dropping out of school.
       ``(7) Federal dropout prevention programs have demonstrated 
     effectiveness in keeping children and youth in school.
       ``(8) Pregnant and parenting teens are a high at-risk group 
     for dropping out of school and should be targeted by dropout 
     prevention programs.
       ``(9) Such youth need a strong dropout prevention program 
     which provides them with high level skills and which provides 
     supports to youth returning from correctional facilities in 
     order to keep them in school.
       ``(b) Purpose.--It is the purpose of this part--
       ``(1) to improve educational services to children in local 
     and State institutions for delinquent children so that they 
     have the opportunity to meet the same challenging State 
     performance standards that all children in the State will be 
     expected to meet;
       ``(2) to provide such children the services they need 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.
       ``(c) Program Authorized.--In order to carry out the 
     purpose of this part, the Secretary shall make grants to 
     State educational agencies, which shall make subgrants to 
     State agencies and local educational agencies to establish or 
     improve programs of education for delinquent children and 
     youth at risk of dropping out of school before graduation.

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

       ``(a) Agency Subgrants.--Based on the allocation amount 
     computed under section 1403, the Secretary shall allocate to 
     each State educational agency amounts necessary to make 
     subgrants to State agencies.
       ``(b) Local Subgrants.--Each State shall retain, for 
     purposes of subpart 2, funds generated throughout the State 
     under part A based on youth residing in local correctional 
     facilities, or attending community day programs for 
     delinquent children.
       ``(c) Use of Remaining Funds.--Each State shall use any 
     funds remaining after allocations are made under subsection 
     (a).

                   ``Subpart 1--State Agency Programs

     ``SEC. 1403. AMOUNT OF ALLOCATION TO STATE.

       ``(a) State Allocation.--Each State educational agency is 
     eligible to receive under this part, for each fiscal year, an 
     amount equal to the product of--
       ``(1) the number of delinquent children in State 
     correctional facilities serving youth under the age of 21 who 
     are enrolled for at least 20 hours per week in education 
     programs operated or supported by facilities serving youth, 
     and 10 hours a week in adult facilities serving youth.
       ``(2) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     paragraph shall not be less than 32 percent or more than 48 
     percent of the average per-pupil expenditure in the United 
     States.
       ``(b) Subgrants to State Agencies In Puerto Rico.--For each 
     fiscal year, the amount of the grant for which a State agency 
     in the Commonwealth of Puerto Rico is eligible under this 
     part shall be equal to--
       ``(1) the number of children counted under subsection 
     (a)(1) for Puerto Rico; multiplied by the product of--
       ``(A) the percentage that the average per-pupil expenditure 
     in 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.

     ``SEC. 1404. STATE PLAN.

       ``(a) State Plan.--(1)(A) Each State educational agency 
     that desires to receive payments under this part shall 
     submit, for approval by the Secretary, a plan, which shall be 
     revised and updated as needed, for meeting the needs of 
     delinquent youth and children at risk of dropping out that--
       ``(i) is integrated with the State's plan, either approved 
     or being developed, under title III of the Goals 2000: 
     Educate America Act, and satisfies the requirements of this 
     section that are not already addressed by such State plan; or
       ``(ii) if the State does not have an approved plan under 
     title III of the Goals 2000: Educate America Act or is not 
     developing such a plan, is integrated with other State plans 
     under this Act and satisfies the requirements of this 
     section.
       ``(B) A State plan submitted under paragraph (1)(A)(i) may, 
     if necessary, be submitted as an amendment to the State's 
     plan under title III of the Goals 2000: Educate America Act.
       ``(2) Each such plan shall also--
       ``(A) describe the State-established program goals, 
     objectives, and performance measures 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 they would have 
     if they were in schools of local educational agencies in the 
     State;
       ``(C) describe the manner in which such State educational 
     agency will make subgrants; and
       ``(D) contain assurances that the State educational agency 
     will--
       ``(i) ensure that programs assisted under this part will be 
     carried out in accordance with the State plan described in 
     this subsection;
       ``(ii) carry out the evaluation requirements of section 
     1408;
       ``(iii) ensure that its State agencies comply with all 
     applicable statutory and regulatory requirements; and
       ``(iv) provide such other information as the Secretary may 
     reasonably require.
       ``(b) Secretarial Approval; Peer Review.--(1) The Secretary 
     shall approve each State plan that meets the requirements of 
     this part.
       ``(2) The Secretary may review any such plan with the 
     assistance and advice of individuals with relevant expertise.
       ``(c) Subgrants to State Agencies.--A State agency is 
     eligible for assistance under this part if it is responsible 
     for providing free public education for children in 
     institutions for delinquent children.
       ``(d) State Agency Applications.--A State agency that 
     desires to receive funds to carry out a program under this 
     part shall submit an application to the State educational 
     agency that--
       ``(1) describes the procedures to be used, consistent with 
     the State plan under part A of this title, to assess the 
     educational needs of the children to be served;
       ``(2) provides assurances that in making services available 
     to youth in adult correctional facilities, 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;
       ``(4) describes how the program will meet the goals and 
     objectives of the State plan under this part;
       ``(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 1406 are of high 
     quality;
       ``(6) describes how the agency will carry out the 
     evaluation requirements of section 1408 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 
     fiscal effort required of a local educational agency, in 
     accordance with section 9501 of this title;
       ``(8) describes how the programs will be coordinated with 
     other appropriate State and Federal programs, including the 
     Job Training Partnership Act, vocational education, State and 
     local dropout prevention programs, and special education;
       ``(9) describes how appropriate professional development 
     will be provided to teachers and other instructional and 
     administrative personnel;
       ``(10) designates an individual in each affected 
     institution to be responsible for issues relating to the 
     transition of children from an institution to locally 
     operated programs;
       ``(11) describes how the agency will, endeavor to 
     coordinate with businesses for training and mentoring for 
     participating youth;
       ``(12) describes how the agency will assist in locating 
     alternative programs through which students can continue 
     their education if they are not returning to school after 
     leaving the correctional facility;
       ``(13) describes how the agency will work with parents to 
     secure their assistance in improving the educational 
     achievement of their children and preventing their further 
     involvement in delinquent activities;
       ``(14) describes how 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 such youth is identified 
     as in need of special education services while the youth is 
     in the facility and if the youth intends to return to the 
     local school;
       ``(15) describes how the agency will work with youth who 
     dropped out of school before entering the facility to 
     encourage such youth to reenter school once their term has 
     been completed or provide the youth with the skills necessary 
     to gain employment, continue their education, or achieve a 
     high school equivalency certificate 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 youth, 
     including career counseling, assistance in securing student 
     loans, grants; and
       ``(18) describes how this program will be coordinated with 
     any programs operated under the Juvenile Justice and 
     Delinquency Act, if applicable.

     ``SEC. 1405. USE OF FUNDS.

       ``(a) General.--(1) A State agency shall use funds received 
     under this part only for programs and projects that--
       ``(A) are consistent with the State plan referred to in 
     section 1404(a); and
       ``(B) concentrate on providing participants with the 
     knowledge and skills needed to make a successful transition 
     to high school completion, further education, or employment.
       ``(2) 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 
     1406, are provided to children identified by the State agency 
     as failing, or most at risk of failing, to meet the State's 
     challenging performance standards;
       ``(ii) supplement and improve the quality of the 
     educational services provided to such children by the State 
     agency; and
       ``(iii) afford such children an opportunity to learn to 
     such challenging State standards;
       ``(C) shall be carried out in a manner consistent with 
     section 1119(b) and part F of this title; and
       ``(D) may include the costs of meeting the evaluation 
     requirements of section 1408.
       ``(b) Supplement, Not Supplant.--A program under this part 
     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 1119(b) of this title without regard to the subject 
     areas in which instruction is given during those hours.

     ``SEC. 1406. INSTITUTION-WIDE PROJECTS.

       ``A State agency that provides free public education for 
     children in an institution for delinquent children may use 
     funds received under this part to serve all children in, and 
     upgrade the entire educational effort of, such institution or 
     program if the State agency has developed, and the State 
     educational agency has approved, a comprehensive plan for 
     such 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 2-year period;
       ``(3) describes the steps the State agency has taken, or 
     will take, to provide all children under 21 with the 
     opportunity to meet challenging academic and vocational 
     standards in order to improve the likelihood that the 
     students will complete high school, attain high school 
     equivalency, 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 secondary school 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 
     for delinquent children and personnel from the State 
     educational agency; and
       ``(8) includes an assurance that the State agency has 
     provided for appropriate training to teachers and other 
     instructional and administrative personnel to enable them to 
     carry out the project effectively.

     ``SEC. 1407. THREE-YEAR PROJECTS.

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

     ``SEC. 1408. TRANSITION SERVICES.

       ``(a) Transition Services.--Each State agency shall reserve 
     not more than 10 percent of the amount it receives under this 
     part for any fiscal year to support projects that facilitate 
     the transition of children 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 counseling and mentoring, to 
     delinquent children in schools other than State-operated 
     institutions.

                   ``Subpart 2--Local Agency Programs

     ``SEC. 1410. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

       ``(a) Local Subgrants.--With funds retained under section 
     1402(2), the State educational agency shall make subgrants to 
     local educational agencies with--
       ``(1) a high number or percentage of youth who are residing 
     in local (including county) correctional facilities for youth 
     (including those involved in day programs); and
       ``(2) which have the highest numbers or percentage of youth 
     in the State which have dropped out of school in the 
     preceding fiscal year.
       ``(b) Notification.--A State educational agency shall 
     notify local educational agencies which meet the criteria of 
     subsection (a) of their eligibility for participation in the 
     program.
       ``(c) Purpose of Local Educational Agency Programs.--The 
     purpose of this section is the operation of local educational 
     agency programs which involve collaboration between local 
     educational agencies and local correctional facilities 
     serving such youth to--
       ``(1) continue transition activities for youth returning 
     from such facilities;
       ``(2) to operate dropout prevention programs in local 
     schools for youth at risk of dropping out and youth returning 
     from correctional facilities; and
       ``(3) to prepare youth who have finished their period of 
     incarceration for employment, high school completion, and 
     further education.
       ``(d) Local Educational Agency Applications.--(1) Eligible 
     local educational agencies which choose to take part in 
     programs funded under this section shall submit an 
     application to the State educational agency, containing such 
     information on programs to be operated under this section as 
     the State educational agency may require, and which shall 
     include--
       ``(1) a description of formal agreements between the local 
     educational agency and correctional facilities and 
     alternative school programs serving youth involved with the 
     juvenile justice system to operate programs for delinquent 
     youth;
       ``(2) 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;
       ``(3) 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;
       ``(4) a description of the youth expected to be served by 
     the dropout prevention program and how the school will be 
     coordinating existing educational programs to meet unique 
     education needs;
       ``(5) 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;
       ``(6) a description of any partnerships with local 
     businesses to develop training and mentoring services for 
     participating students;
       ``(7) a description of how the program will involve parents 
     in efforts to improve the education achievement of their 
     children, assist in dropout prevention activities, and 
     prevent the involvement of their children in delinquent 
     activities;
       ``(8) a description of how this program will be coordinated 
     with other Federal, State, and local programs, including the 
     Job Training and Partnership Act and vocational education 
     programs serving this at risk population of youth;
       ``(9) a description of how the program will be coordinated 
     with programs operated under the Juvenile Justice and 
     Delinquency Prevention Act, if applicable;
       ``(10) a description of how schools will work with 
     probation officers to assist in meeting the needs of youth 
     returning from correctional facilities;
       ``(11) 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
       ``(12) 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.
       ``(e) Uses of Funds.--Funds provided to local educational 
     agencies under this section may be used for--
       ``(1) dropout prevention programs which serve youth at 
     educational risk, including pregnant and parent teens, youth 
     who have come in contact with the juvenile justice system, 
     youth at least one year behind their expected grade level, 
     migrants, immigrants, students with limited-English 
     proficiency and gang members;
       ``(2) the coordination of health and social services for 
     such youth if there is a likelihood that the provision of 
     such services including day care and drug and alcohol 
     counseling, will improve the likelihood such students will 
     complete their education; and
       ``(3) programs to meet the unique education needs of youth 
     at risk of dropping out, which may include vocational 
     education, special education, career counseling, and 
     assistance in securing student loans or grants.
       ``(f) Program Requirements for Correctional Facilities 
     Receiving Funds Under This Section.--Each facility entering 
     into a partnership with a local educational agency to provide 
     services to youth under this section shall--
       ``(1) 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 servicers while in 
     the facility;
       ``(3) 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 the youth 
     who have dropped out to reenter school once their term has 
     been completed or provide such youth with the skills 
     necessary for them to gain employment or seek a high school 
     equivalency certificate;
       ``(5) work to ensure facilities are staffed with teachers 
     and other qualified staff who are also trained to work with 
     children with disabilities and other special needs students 
     taking into consideration such unique needs;
       ``(6) ensure educational programs in correctional 
     facilities are related to assisting students meet high 
     educational standards;
       ``(7) use, to the extent possible, technology to assist 
     coordinating educational programs between the juvenile 
     facility and community school;
       ``(8) 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 available State, local, and Federal funds to provide 
     services to participating youth, including the Job Training 
     Partnership Act, and vocational education;
       ``(10) coordinate programs operated under this section with 
     activities funded under the Juvenile Justice and Delinquency 
     Prevention Act, if applicable; and
       ``(11) if appropriate, work with local businesses to 
     develop training and mentoring programs for participating 
     youth.
       ``(g) Accountability.--The State educational agency may--
       ``(1) reduce or terminate funding for projects funded under 
     this section in local educational agencies if such agencies 
     do 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 3 
     years, that there has been an increase in the number of youth 
     returning to school, obtaining high school equivalency 
     certificates, or obtaining employment after such youth are 
     released.

     ``SEC. 1411. PROGRAM EVALUATIONS.

       ``(a) Scope of Evaluation.--Each State agency or local 
     educational agency that conducts a program under subpart 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 its 
     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 high school graduation;
       ``(3) for delinquent youth, make the transition to a 
     regular program or other education program operated by a 
     local educational agency; and
       ``(4) complete high school (or high school equivalency 
     requirements) and obtain employment after leaving the 
     institution.
       ``(b) Evaluation Measures.--In conducting each such 
     evaluation with respect to subsection (a)(1), 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.

     ``SEC. 1412. DEFINITIONS.

       ``For the purpose of this part, the following terms have 
     the following meanings:
       ``(1) 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) 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 such age, have 
     limited-English proficiency, are gang members, have dropped 
     out in the past, or have high absenteeism rates.
       ``(3) The term `community-day program' means a regular 
     program of instruction provided by a State agency at a 
     community-day school operated specifically for delinquent 
     children.
       ``(4) The term `institution for delinquent children' means 
     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--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

     ``SEC. 1501. EVALUATIONS.

       ``(a) National Assessment.--(1) The Secretary shall conduct 
     a national assessment of programs under this title, in 
     coordination with the ongoing Chapter 1 Longitudinal Study 
     under subsection (b) of this section, that shall be planned, 
     reviewed, and conducted in consultation with an independent 
     panel of researchers, State practitioners, local 
     practitioners, and other appropriate individuals.
       ``(2) The assessment shall examine how well schools, local 
     educational agencies, and States--
       ``(A) are progressing toward the goal of all children 
     served under this title reaching the State's content and 
     performance standards; and
       ``(B) are accomplishing the specific purposes set out in 
     section 1001(d) of this title to achieve this goal, 
     including--
       ``(i) ensuring high standards for all children and aligning 
     the efforts of States, local educational agencies, and 
     schools to help children reach them;
       ``(ii) providing children an enriched and accelerated 
     educational program through schoolwide programs or through 
     additional services that increase the amount and quality of 
     instructional time that children receive;
       ``(iii) promoting schoolwide reform and access of all 
     children to effective instructional strategies and 
     challenging academic content;
       ``(iv) significantly upgrading the quality of the 
     curriculum and instruction by providing staff in 
     participating schools with substantial opportunities for 
     professional development;
       ``(v) coordinating services under all parts of this title 
     with each other, with other educational services, including 
     preschool services, and, to the extent feasible, with health 
     and social service programs funded from other sources;
       ``(vi) affording parents meaningful opportunities to 
     participate in the education of their children at home and at 
     school, including the provisions of family literacy services;
       ``(vii) distributing resources to areas where needs are 
     greatest;
       ``(viii) improving accountability, as well as teaching and 
     learning, by making assessments under this title congruent 
     with State assessment systems; and
       ``(ix) providing greater decisionmaking authority and 
     flexibility to schools in exchange for greater responsibility 
     for student performance.
       ``(3) Where feasible, the Secretary shall use information 
     gathered from a variety of sources, including the National 
     Assessment of Educational Progress, State evaluations, and 
     available research studies in carrying out this subsection.
       ``(4) The Secretary shall submit a biennial report 
     summarizing the cumulative findings to date of the assessment 
     to the President and the appropriate committees of the 
     Congress.
       ``(b) Studies and Data Collection.--The Secretary may 
     collect such data, as necessary, at the State, local, and 
     school levels and conduct studies and evaluations, including 
     national studies and evaluations, to assess on an ongoing 
     basis the effectiveness of programs under this title and to 
     report on such effectiveness on a periodic basis.
       ``(c) National Evaluation of Title I.--The Secretary shall 
     carry out an ongoing evaluation of the program under part A 
     of this title in order to provide the public, Congress, and 
     educators involved in such program, an accurate description 
     of the effectiveness of such program and provide information 
     that can be used to improve such program's effectiveness. 
     Such evaluation shall--
       ``(1) have a longitudinal design tracking cohorts of 
     students for at least 3 years which, when the cohorts are 
     taken as a whole, provides a picture of such program's 
     effectiveness over the elementary and secondary grades;
       ``(2) be separate and independent from State and local 
     assessments and evaluations as required under this part;
       ``(3) utilize the highest available content standards that 
     are generally accepted as national in scope;
       ``(4) provide information on all students, students served 
     under this part, and, if funds are sufficient, information on 
     students from low-income families and limited English 
     proficient students; and
       ``(5) when feasible, collect, cross-tabulate, and report 
     data by sex within race or ethnicity and socioeconomic 
     status.

     The Secretary shall use the information from this evaluation 
     as part of the national assessment required by subsection (a) 
     and shall report the data from this evaluation to the 
     Congress and the public at least as frequently as that 
     assessment.
       ``(d)(1) In conducting the National Assessment under 
     subsection (a) and the National Evaluation under subsection 
     (b), the Secretary shall not assess the progress of students 
     in grade 1, kindergarten, and pre-kindergarten on the basis 
     of outcome measures such as content and performance 
     standards;
       ``(2) any assessments of children in grade 2 shall utilize 
     matrix sampling and be performance-based; and
       ``(3) any data collected regarding children in grade 2 
     shall--
       ``(A) be collected at multiple points in time;
       ``(B) not be used to stigmatize, label, or place any child; 
     and
       ``(C) be collected in multiple domains.
       ``(e) Parental Involvement, Study, Report and 
     Dissemination.--(1) The Secretary, through the Office of 
     Education Research and Improvement, shall conduct a study to 
     identify and describe--
       ``(A) common barriers to effective parental involvement in 
     the education of participating children; and
       ``(B) successful local policies and programs which improve 
     parental involvement and the performance of participating 
     children.
       ``(2) The Secretary shall--
       ``(A) complete such study by December 31, 1995;
       ``(B) report the findings of such study to the Committee on 
     Education and Labor of the House of Representatives and to 
     the Committee on Labor and Human Resources of the Senate; and
       ``(C) disseminate the findings, relating to the successful 
     local policies and programs which improve parental 
     involvement and the performance of participating children, to 
     local educational agencies.

     ``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

       ``(a) Demonstration Programs To Improve Achievement.--(1) 
     From the funds appropriated for any fiscal year under section 
     1002(7)(B), the Secretary may make grants to State 
     educational agencies, local educational agencies, other 
     public agencies, nonprofit organizations, public/private 
     partnerships involving business and industry organizations, 
     and consortia of such bodies to carry out demonstration 
     projects that show the most promise of enabling children 
     served under this title to meet challenging State standards. 
     Such projects shall include promising strategies such as--
       ``(A) accelerated curricula, the application of new 
     technologies to improve teaching and learning, extended 
     learning time, and a safe and enriched full-day environment 
     for children to provide them the opportunity to reach high 
     standards;
       ``(B) integration of education services with each other and 
     with health, family, and other social services such as 
     mentoring programs, particularly in empowerment zones and 
     enterprise communities;
       ``(C) effective approaches to whole school reform;
       ``(D) programs that have been especially effective with 
     limited English proficient children, migratory children and 
     other highly mobile students, children leaving institutions 
     for neglected or delinquent children and returning to school, 
     and homeless children and youth; and
       ``(E) programs that are built upon partnerships developed 
     between elementary and middle schools, employers, and the 
     community which emphasize the integration of high quality 
     academic and vocational learning, stress excellence and high 
     expectations for success in core academic subjects, instill 
     responsibility, decisionmaking, problem solving, 
     interpersonal skills, and other competencies in students, and 
     make school relevant to the workplace and the community, 
     through applied and interactive teaching methodologies, team 
     teaching strategies, learning opportunities connecting 
     school, the workplace, and the community, and career 
     exploration, awareness, and career guidance opportunities.
       ``(2) The Secretary shall evaluate the demonstration 
     projects supported under this title, using rigorous 
     methodological designs and techniques, including control 
     groups and random assignment, to the extent feasible, to 
     produce reliable evidence of effectiveness.
       ``(b) Partnerships.--(1) From funds appropriated under 
     section 1002(7)(B) for any fiscal year, the Secretary may, 
     directly or through grants or contracts, work in partnership 
     with State educational agencies, local educational agencies, 
     other public agencies, and non-profit organizations to 
     disseminate and use the highest quality research and 
     knowledge about effective practices to improve the quality of 
     teaching and learning in schools supported under this title.

                      ``PART F--GENERAL PROVISIONS

     ``SEC. 1601. FEDERAL REGULATIONS.

       ``(a) In General.--The Secretary is authorized to issue 
     such regulations as are necessary to reasonably ensure that 
     there is compliance with this title.
       ``(b) Negotiated Rulemaking Process.--(1) Prior to 
     publishing proposed regulations in the Federal Register to 
     carry out this title, the Secretary shall obtain the advice 
     and recommendations of representatives of Federal, State, and 
     local administrators, parents, teachers, and members of local 
     boards of education involved with the implementation and 
     operation of programs under this title.
       ``(2) Such advice and recommendations may be obtained 
     through such mechanisms as regional meetings and electronic 
     exchanges of information.
       ``(3) After obtaining such advice and recommendations, and 
     prior to publishing proposed regulations, the Secretary 
     shall--
       ``(A) establish a negotiated rulemaking process on a 
     minimum of 4 key issues, including--
       ``(i) schoolwide projects;
       ``(ii) standards and assessment;
       ``(iii) parental involvement; and
       ``(iv) professional development;
       ``(B) select individuals to participate in such process 
     from among individuals or groups which provided advice and 
     recommendations, with representation from all geographic 
     regions; and
       ``(C) prepare a draft of proposed policy options that shall 
     be provided to the individuals selected by the Secretary 
     under subparagraph (A) not less than 45 days prior to the 
     first meeting under such process.
       ``(4) Such process--
       ``(A) shall be conducted in a timely manner to ensure that 
     final regulations are issued by the Secretary not later than 
     the 240-day period required by section 437 of the General 
     Education Provisions Act;
       ``(B) shall not be subject to the Federal Advisory 
     Committee Act but shall otherwise follow the provisions of 
     the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
       ``(5) In an emergency situation in which regulations to 
     carry out this title must be issued with a very limited time 
     to assist State and local educational agencies with the 
     operation of the program, the Secretary may issue proposed 
     regulations without following such process but shall, 
     immediately thereafter and prior to issuing final 
     regulations, conduct regional meetings to review such 
     proposed regulations.
       ``(c) Special Rule.--Funds made available under section 
     1002(7) may not be released by the Secretary for expenditure 
     until such time as final regulations to carry out part A are 
     published in the Federal Register.
       ``(d) Limitation.--Regulations to carry out this part may 
     not require local programs to follow a particular 
     instructional model, such as the provision of services 
     outside the regular classroom or school program.

     ``SEC. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL 
                   ADMINISTRATION.

       ``(a) Program Assistance Manual.--The Secretary shall, not 
     later than 6 months after the publication of final 
     regulations under this title, prepare and distribute to State 
     educational agencies, State agencies operating programs under 
     parts C and D, and local educational agencies, and shall make 
     available to parents and other interested individuals, 
     organizations, and agencies, a manual for this title to--
       ``(1) assist such agencies in--
       ``(A) enhancing the quality, increasing the depth, or 
     broadening the scope of activities for programs under this 
     title;
       ``(B) applying for program funds under this title; and
       ``(C) meeting the program objectives under this title;
       ``(2) assist State educational agencies in achieving proper 
     and efficient administration of programs funded under this 
     title;
       ``(3) assist parents to become involved in the planning 
     for, and implementation and evaluation of, programs and 
     projects under this title; and
       ``(4) ensure that officers and employees of the Department 
     of Education, including officers and employees of the 
     Secretary and officers and employees of such Department 
     charged with auditing programs carried on under this title, 
     uniformly interpret, apply, and enforce requirements under 
     this title throughout the United States.
       ``(b) Contents of Policy Manual.--The policy manual shall, 
     with respect to programs carried out under this title, 
     contain descriptions, statements, procedural and substantive 
     rules, opinions, policy statements and interpretations and 
     indices to and amendments of the foregoing, and in 
     particular, whether or not such items are required under 
     section 552 of title 5, United States Code, to be published 
     or made available. The manual shall include--
       ``(1) a statement of the requirements applicable to the 
     programs carried out under this title, including such 
     requirements contained in this title, the General Education 
     Provisions Act, other applicable statutes, and regulations 
     issued under the authority of such statutes;
       ``(2) an explanation of the purpose of each requirement and 
     its interrelationship with other applicable requirements; and
       ``(3) model forms and instructions developed by the 
     Secretary for use by State and local educational agencies, at 
     their discretion, including, application forms, application 
     review checklists, and instruments for monitoring programs 
     under this title.
       ``(c) Response to Inquiries.--The Secretary shall respond 
     with written guidance not more than 90 days after any written 
     request (return receipt requested) from a State or local 
     educational agency regarding a policy, question, or 
     interpretation under this title. In the case of a request 
     from a local educational agency, such agency is required to 
     address its request to the State educational agency first.

     ``SEC. 1603. STATE ADMINISTRATION.

       ``(a) Rulemaking.--(1) Each State that receives funds under 
     this title shall--
       ``(A) ensure that any State rules, regulations, and 
     policies relating to this title conform to the purposes of 
     this title and provide any such proposed rules, regulations, 
     and policies to the Committee of Practitioners for their 
     review and comment;
       ``(B) minimize such rules, regulations, and policies to 
     which their local educational agencies and schools are 
     subject; and
       ``(C) identify any such rule, regulation, or policy as a 
     State-imposed requirement.
       ``(2) State rules, regulations, and policies under this 
     title shall support and facilitate local educational agency 
     and school-level systemic reform designed to enable all 
     children to meet the State's standards.
       ``(b) Committee of Practitioners.--(1) Each State 
     educational agency shall create a State committee of 
     practitioners to advise the State in carrying out its 
     responsibilities under this title.
       ``(2) Each such committee shall include--
       ``(A) as a majority of its members, representatives from 
     local educational agencies;
       ``(B) administrators;
       ``(C) teachers, including vocational educators;
       ``(D) parents;
       ``(E) members of local boards of education;
       ``(F) representatives of private school children; and
       ``(G) counselors.
       ``(3) The duties of the committee shall include a review, 
     prior to publication, of any proposed or final State rule or 
     regulation pursuant to this title. In an emergency situation 
     where such rule or regulation must be issued within a very 
     limited time to assist local educational agencies with the 
     operation of the program, the State educational agency may 
     issue a regulation without prior consultation, but shall 
     immediately thereafter convene the State committee of 
     practitioners to review the emergency regulation prior to 
     issuance in final form.
       ``(c) Payment For State Administration.--Each State may 
     reserve for the proper and efficient performance of its 
     duties under this title the greater of--
       ``(1) one percent of the funds received under section 
     1002(a) and (c) through (f); or
       ``(2) $325,000, or $50,000 in the case of Guam, American 
     Samoa, the Virgin Islands, the Northern Mariana Islands, and 
     Palau (until the Compact of Free Association takes effect).

              ``TITLE II--IMPROVING TEACHING AND LEARNING

    ``PART A--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

     ``SEC. 2101. FINDINGS.

       ``The Congress finds that--
       ``(1) reaching the National Education Goals requires a 
     comprehensive educational reform strategy that involves 
     parents, schools, government, communities, and other public 
     and private organizations at all levels;
       ``(2) a crucial component of the strategy for achieving 
     these goals is ensuring, through sustained and intensive 
     high-quality professional development, and through the 
     development and adoption of high quality curriculum, that all 
     teachers are capable of providing challenging learning 
     experiences in the core academic subjects for their students;
       ``(3) decisionmaking as to what activities a State or local 
     educational agency should undertake to improve teaching and 
     learning are best made by individuals in the schools closest 
     to the classroom and most knowledgeable about the needs of 
     schools and students;
       ``(4) the potential positive impact of high-quality 
     professional development is underscored by recent research 
     findings that--
       ``(A) professional development must be focused on teaching 
     and learning in order to change the opportunities of all 
     students to achieve higher standards; and
       ``(B) effective professional development focuses on 
     discipline-based knowledge and subject-specific pedagogical 
     skills, involves teams of teachers and administrators in a 
     school and, through professional networks of teachers and 
     administrators, is interactive and collaborative, motivates 
     by its intrinsic content and relationship to practice, builds 
     on experience and learning-by-doing, and becomes incorporated 
     into the everyday life of the school;
       ``(5) engaging teachers in the development of high quality 
     curricula is a powerful professional development activity 
     that improves teaching and learning;
       ``(6) special attention must be given in professional 
     development activities to ensure that education professionals 
     are knowledgeable of, and make use of, strategies for serving 
     populations that historically have lacked access to equal 
     opportunities for advanced learning and career advancement;
       ``(7) States and local educational agencies also need to 
     engage teachers in the development of high quality curricula 
     that are aligned with State or local content and performance 
     standards in order to improve teaching and learning and 
     ensure that students achieve the State standards;
       ``(8) professional development is often a victim of budget 
     reductions in fiscally difficult times and curricula 
     development is almost nonexistent in many State and local 
     school systems; and
       ``(9) the Federal Government has a vital role in helping 
     States and local educational agencies to make sustained and 
     intensive high-quality professional development in the core 
     academic subjects become an integral part of the elementary 
     and secondary education system and in providing assistance to 
     such agencies to engage teachers in the development of high 
     quality curricula that are aligned with State or local 
     content and performance standards.

     ``SEC. 2102. PURPOSES.

       ``The purposes of this part are to provide assistance to 
     States and local educational agencies and to institutions of 
     higher education with teacher education programs so that such 
     agencies can determine how best to improve the teaching and 
     learning of all students through--
       ``(1) helping to ensure that teachers, other staff, and 
     administrators have access to sustained and intensive high-
     quality professional development that is aligned to 
     challenging State content and performance standards in the 
     CORE academic subjects and that--
       ``(A) is tied to challenging State and local curriculum 
     content and student performance standards;
       ``(B) reflects recent research on teaching and learning;
       ``(C) incorporates effective strategies, techniques, 
     methods, and practices for meeting the educational needs of 
     diverse students, including females, minorities, individuals 
     with disabilities, limited-English proficient individuals, 
     and economically disadvantaged individuals, in order to 
     ensure that all students have the opportunity to achieve 
     challenging performance standards.''.
       ``(D) includes strong academic content and pedagogical 
     components;
       ``(E) is of sufficient intensity and duration to have a 
     positive and lasting impact on the teacher's performance in 
     the classroom; and
       ``(F) is part of the everyday life of the school and 
     creates an orientation toward continuous improvement 
     throughout the school; and
       ``(2) assisting States and local educational agencies to 
     engage teachers in the development of high quality curriculum 
     that is aligned with State or local content and performance 
     standards.

     ``SEC. 2103. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION 
                   BETWEEN SUBPARTS.

       ``(a) Authorization of Appropriations.--For the purpose of 
     carrying out this part, there are authorized to be 
     appropriated such sums for fiscal year 1995, 1996, 1997, 
     1998, and 1999.
       ``(b) Allocation Between Subparts.--Of the funds 
     appropriated to carry out this part for a fiscal year, the 
     Secretary shall use--
       ``(1) 5 percent to carry out subpart 1; and
       ``(2) 95 percent to carry out subpart 2.

                    ``Subpart 1--Federal Activities

     ``SEC. 2111. PROGRAM AUTHORIZED.

       ``(a) Program Authorized.--The Secretary is authorized to 
     make grants to, and enter into contracts and cooperative 
     agreements with, local educational agencies, State 
     educational agencies, State agencies for higher education, 
     educational service agencies, institutions of higher 
     education, and other public and private agencies, other 
     organizations, and institutions to--
       ``(1) support activities of national significance that will 
     contribute to the development and implementation of high-
     quality professional development activities in the core 
     academic subject areas;
       ``(2) support the development of challenging curriculum 
     that is aligned with State or local content and performance 
     standards;
       ``(3) evaluate activities carried out under this subpart 
     and under subpart 2.
       ``(b) Coordination With Other Agencies.--In carrying out 
     this program, the Secretary shall consult and coordinate with 
     the National Science Foundation, the National Endowment for 
     the Humanities, the National Endowment for the Arts, and 
     other appropriate Federal agencies and entities.

     ``SEC. 2112. AUTHORIZED ACTIVITIES.

       ``(a) Activities.--The Secretary shall use funds available 
     to carry out this subpart--
       ``(1) to provide seed money to eligible entities to develop 
     their capacity to offer sustained and intensive high-quality 
     professional development;
       ``(2) for the development and maintenance of a national 
     clearinghouse for science, mathematics, and technology 
     education materials which shall be administered as an adjunct 
     clearinghouse of the ERIC system of clearinghouses supported 
     by the Office of Educational Research and Improvement;
       ``(3) to support consortia of educational agencies and 
     organizations in disseminating information and providing 
     assistance regarding curricula, teaching methods, and 
     assessment tools that support national or State content 
     standards in mathematics and science; and
       ``(4) the evaluation of programs under this subpart and 
     under subpart 2.
       ``(b) clearinghouses.--The Secretary may use funds 
     available to carry out this subpart--
       ``(1) for the development and maintenance of national 
     clearinghouses for core academic subjects as the Secretary 
     determines are needed and which shall be administered as 
     adjunct clearinghouses of the ERIC system of clearinghouses 
     supported by the Office of Educational Research and 
     Improvement;
       ``(2) to provide grants to entities to develop high quality 
     curricula that are aligned with voluntary national or State 
     content standards;
       ``(3) to sponsor institutes that provide teachers and 
     administrators with professional development that is based on 
     strong and integrated disciplinary content and pedagogical 
     components;
       ``(4) for efforts to train teachers in the innovative uses 
     and applications of technology to enhance student learning;
       ``(5) to encourage the development of local and national 
     professional networks of educators;
       ``(6) to disseminate standards in the core academic 
     subjects, including information on voluntary national content 
     and performance standards and related models of high-quality 
     professional development;
       ``(7) for efforts to train teachers in innovative uses of 
     applied learning strategies such as service learning;
       ``(8) to disseminate models of high-quality professional 
     development activities that train educators in strategies, 
     techniques, methods, and practices for meeting the 
     educational needs of historically underserved populations, 
     including females, minorities, individuals with disabilities, 
     limited-English proficient individuals, and economically 
     disadvantaged individuals, in order to ensure that all 
     students have the opportunity to achieve challenging 
     performance standards; and
       ``(9) to promote the transferability of licensure and 
     certification of teachers and administrators among State and 
     local jurisdictions.
       ``(c) Allocation.--In carrying out subsection (a), the 
     Secretary shall ensure that each program, project, and 
     activity contained in such subsection receives an allocation 
     that is no less than the amount that each such program, 
     project, or activity received in fiscal year 1994.

                ``Subpart 2--State and Local Activities

     ``SEC. 2121. PROGRAM AUTHORIZED.

       ``The Secretary is authorized to make grants to State 
     educational agencies for the improvement of teaching and 
     learning through sustained and intensive high-quality 
     professional development activities in the core academic 
     subjects at the State and local levels and the development by 
     teachers and others of high-quality curricula that are 
     aligned with State or local content and performance 
     standards.

     ``SEC. 2122. ALLOCATION OF FUNDS.

       ``(a) Reservation of Funds.--From the amount made available 
     to carry out this subpart for any fiscal year, the Secretary 
     shall--
       ``(1) reserve one half of one percent for the outlying 
     areas, to be distributed among them on the basis of relative 
     need, as determined by the Secretary in light of the purposes 
     of this part; and
       ``(2) reserve one half of one percent for the Secretary of 
     the Interior for programs under this subpart for professional 
     development activities for teachers, other staff, and 
     administrators in schools operated or funded by the Bureau of 
     Indian Affairs.
       ``(b) State Allotments.--The Secretary shall allocate the 
     remaining amount to each of the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico as follows, 
     except that no State shall receive less than one-half of one 
     percent of such remaining amount:
       ``(1) 50 percent shall be allocated among such 
     jurisdictions on the basis of their relative populations of 
     individuals aged 5 through 17, as determined by the Secretary 
     on the basis of the most recent satisfactory data.
       ``(2) 50 percent shall be allocated among such 
     jurisdictions in accordance with the relative amounts such 
     jurisdictions received under part A of title I of this Act 
     for the preceding fiscal year.
       ``(c) Reallocation.--If any jurisdiction does not apply for 
     its allotment under subsection (b) for any fiscal year, the 
     Secretary shall reallocate such amount to the remaining 
     jurisdictions in accordance with such subsection.

     ``SEC. 2123. WITHIN-STATE ALLOCATIONS.

       ``(a) Reservations.--Of the amounts received by a State 
     under this subpart for a fiscal year--
       ``(1) not more than 5 percent shall be used for the 
     administrative costs of programs carried out by the State 
     educational agency and the State agency for higher education;
       ``(2) not more than 5 percent may be used for State-level 
     activities, as described in section 2125; and
       ``(3) of the remaining amount--
       ``(A) 87 percent shall be distributed to local educational 
     agencies, to be used in accordance with section 2129, as 
     follows:
       ``(i) 50 percent of such amount shall be distributed in 
     accordance with the relative enrollments in public and 
     private nonprofit schools within their boundaries.
       ``(ii) 50 percent of such amount shall be distributed in 
     accordance with the relative amount such agencies received 
     under part A of title I of this Act for the preceding fiscal 
     year; and
       ``(B) 13 percent shall be used for competitive grants to 
     institutions of higher education as described in section 
     2129.
       ``(b) Limitation.--
       ``(1) General rule.--Except as provided in paragraph (2), 
     any local educational agency that receives an allocation of 
     less than $10,000 under subsection (a) shall, for the purpose 
     of providing services under this subpart, form a consortium 
     with at least 1 other local educational agency or institution 
     of higher education receiving assistance under this section.
       ``(2) Waiver.--The State educational agency shall waive the 
     application of paragraph (1) in the case of any local 
     educational agency that demonstrates that the amount of its 
     allocation is sufficient to provide a program of sufficient 
     size, scope, and quality to be effective. In granting waivers 
     under the preceding sentence, the State educational agency 
     shall--
       ``(A) give special consideration to local educational 
     agencies serving rural areas; and
       ``(B) consider cash or in-kind contributions provided from 
     State or local sources that may be combined with the local 
     educational agency's allocation for the purpose of providing 
     services under this part.

     ``SEC. 2124. STATE APPLICATIONS.

       ``(a) Applications Required.--Each State educational agency 
     that wishes to receive its allotment under this subpart for 
     any fiscal year shall submit an application to the Secretary 
     at such time and in such form as the Secretary may require.
       ``(b) State Plan To Improve Teaching and Learning--(1) Each 
     application under this section shall include a State plan 
     that--
       ``(A) is integrated with the State's plan, either approved 
     or being developed, under title III of the Goals 2000: 
     Educate America Act, and satisfies the requirements of this 
     section that are not already addressed by that State plan; or
       ``(B) if the State does not have an approved plan under 
     title III of the Goals 2000: Educate America Act and is not 
     developing such a plan, is integrated with other State plans 
     under this Act and satisfies the requirements of this 
     section.
       ``(2) Each such plan shall also--
       ``(A) be developed in conjunction with the State agency for 
     higher education, institutions of higher education, schools 
     of education, and with the extensive participation of 
     teachers and administrators and members of the public who are 
     interested in improving education in the State and show the 
     role of each in implementation;
       ``(B) be designed to give teachers and administrators in 
     the State the knowledge and skills to provide all students 
     the opportunity to meet challenging State performance 
     standards;
       ``(C) include an assessment of State and local needs for 
     professional development and for the development of curricula 
     that are aligned with State or local content and performance 
     standards;
       ``(D) include a description of how the plan has assessed 
     the needs of local education agencies serving rural areas, 
     and what actions are planned to meet those needs;
       ``(E) include a description of how the plan has maintained 
     funding for professional development activities in 
     mathematics and science education;
       ``(F) include a description of how the activities funded 
     under this subpart will address the needs of teachers in 
     schools receiving assistance under part A of title I of this 
     Act;
       ``(G) a description of how programs in all core academic 
     subjects, but especially in mathematics and science, will 
     take into account the need for greater access to, and 
     participation in, such disciplines by students from 
     historically underrepresented groups, including females, 
     minorities, individuals with limited-English proficiency, the 
     economically disadvantaged, and the disabled, by 
     incorporating pedagogical strategies and techniques which 
     meet their educational need;
       ``(H) if the State's needs assessment under subsection (C) 
     demonstrates a need for professional development, describe 
     how the State will--
       ``(i) work with teachers, including teachers in schools 
     receiving assistance under part A of title I of this Act, 
     administrators, local educational agencies, schools, and 
     institutions of higher education to ensure that they develop 
     the capacity to support sustained and intensive, high-quality 
     professional development programs in all the core academic 
     subject areas, but especially in mathematics and science;
       ``(ii) take specific steps to review and, if necessary, 
     reform State requirements for licensure of teachers and 
     administrators, including certification and recertification, 
     to align such requirements with challenging State content and 
     performance standards; and
       ``(iii) address the need for improving teaching and 
     learning through teacher development beginning with 
     recruitment, pre-service, and induction, and continuing 
     throughout the professional teaching career; and
       ``(I) if the State's needs assessment under subparagraph 
     (C) demonstrates a need for curricula development, describe--
       ``(i) a strategy for engaging teachers in the development 
     of curricula that are aligned with State or local content and 
     performance standards; and
       ``(ii) how the State will also work with administrators, 
     parents, school board members, and other members of the 
     community in developing high quality curricula that are 
     aligned with State or local content and performance 
     standards.
       ``(c) Additional Material.--Each State application shall 
     also include--
       ``(1) a description of how the activities funded under this 
     subpart will be coordinated, as appropriate, with--
       ``(A) other activities conducted with Federal funds, 
     especially activities supported under part A of title I of 
     this Act;
       ``(B) State and local funds;
       ``(C) resources from business and industry; and
       ``(D) funds from other Federal agencies, such as the 
     National Science Foundation, the Departments of Commerce, 
     Energy, and Health and Human Services, the National Endowment 
     for the Arts, and the National Endowment for the Humanities; 
     and
       ``(2) a description of the activities to be sponsored under 
     the State-level activities and the higher education 
     components of its program under this subpart.
       ``(d) Peer Review and Secretarial Approval.--(1) The 
     Secretary shall approve the application of a State 
     educational agency if it meets the requirements of this 
     section and holds reasonable promise of achieving the 
     purposes of this part.
       ``(2) In reviewing applications, the Secretary shall obtain 
     the advice of non-Federal experts on education in the core 
     academic subjects and on teacher education, including 
     teachers and administrators.

     ``SEC. 2125. STATE-LEVEL ACTIVITIES.

       ``(a) Activities.--Each State may use funds reserved under 
     section 2123(a)(2) to carry out activities referred to in 
     section 2124(b), such as--
       ``(1) reviewing and reforming State requirements for 
     teacher and administrator licensure, including certification 
     and recertification, to align such requirements with the 
     State's content standards and ensure that teachers and 
     administrators have the knowledge and skills necessary to 
     help students meet challenging State performance standards;
       ``(2) developing performance assessments and peer review 
     procedures, as well as other methods, for licensing teachers 
     and administrators;
       ``(3) providing technical assistance to schools and local 
     educational agencies especially schools and local educational 
     agencies that receive assistance under part A of title I of 
     this Act, to help such schools and agencies provide effective 
     professional development in the core academic subjects and 
     develop high quality curricula;
       ``(4) developing or supporting professional development 
     networks, either within a State or in a regional consortium 
     of States, that provide a forum for interaction among 
     teachers and that allow exchange of information on advances 
     in content assessment and pedagogy;
       ``(5) supporting partnerships between schools, consortia of 
     schools, or local education agencies and institutions of 
     higher education, including but not limited to schools of 
     education, which would encourage teachers to participate in 
     intensive, ongoing professional development programs, both 
     academic and pedagogical, at institutions of higher 
     education, and to encourage students at institutions of 
     higher education studying to become teachers to have direct, 
     practical experience at the schools;
       ``(6) enhancing the effective use of educational technology 
     as an instructional tool for increasing student understanding 
     of the core academic subject areas including--
       ``(A) efforts to train teachers in the innovative uses and 
     application of instructional technology;
       ``(B) utilizing and strengthening existing 
     telecommunications infrastructure dedicated to educational 
     purposes; and
       ``(C) efforts to train teachers in methods for achieving 
     gender equity both in access to and teaching practices used 
     in the application of educational technology;
       ``(7) providing incentives for teachers to be involved in 
     curriculum development and technical assistance processes for 
     teachers and students;
       ``(8) professional development enabling teachers and other 
     school staff to ensure that girls, young women, minorities, 
     limited English proficient students, individuals with 
     disabilities, and economically disadvantaged individuals have 
     the opportunity to achieve challenging State performance 
     standards in the core academic subjects by, for example, 
     encouraging girls, young women, and minorities to pursue 
     advanced courses in mathematics and science;
       ``(9) designing professional development activities that 
     increase the numbers of members of minority and other 
     underrepresented groups in the teaching force in the core 
     subjects; and
       ``(10) developing high quality curriculum that is aligned 
     with State or local content and performance standards.
       ``(b) Alternative Methods.--Nothing in this section shall 
     be construed to prevent a State from implementing alternative 
     methods of teacher certification.

     ``SEC. 2126. LOCAL PLAN AND APPLICATION FOR IMPROVING 
                   TEACHING AND LEARNING.

       ``(a) Local Application.--(1) Each local educational agency 
     that wishes to receive a subgrant under this subpart shall 
     submit an application (singly or as a consortia as described 
     in section 2123(b)) to the State educational agency at such 
     time as the State educational agency shall require, but not 
     less frequently than every 3rd year.
       ``(2) If the local educational agency has an application 
     approved by the State under title III of the Goals 2000: 
     Educate America Act, the application required by this section 
     shall be a component of (or, if necessary, an addendum to) 
     its Goals 2000 application.
       ``(3) A local education agency shall set specific 
     performance indicators for improving teaching and learning 
     through professional development and curriculum development.
       ``(4) A local educational agency shall submit, as part of 
     its application, the results of the needs assessment 
     conducted under subsection (b), and the local educational 
     agency plan developed in accordance with subsection (c).
       ``(b) Needs Assessment.--(1) A local educational agency 
     that wishes to receive a subgrant under this subpart shall 
     include in its application an assessment of such agency's 
     need for professional development, for the development of 
     high quality curricula that are aligned with State or local 
     content and performance standards.
       ``(2) Such needs assessment shall be carried out with the 
     involvement of teachers, including teachers in schools 
     receiving assistance under part A of title I of this Act, and 
     shall take into account what activities need to be conducted 
     in order to give teachers and administrators the means, 
     including the knowledge and skills, to provide students with 
     the opportunity to meet challenging State or local 
     performance standards.
       ``(c) Plan Development.--(1) The plan required under this 
     subsection shall be developed jointly by the local 
     educational agency and by teachers from the core academic 
     disciplines.
       ``(2) Such teachers shall also be representative of the 
     grade spans within schools to be served and of schools which 
     receive assistance under part A of title I of this Act.
       ``(3) Based on the needs assessment required under 
     subsection (b), the local educational agency's plan shall 
     include the following--
       ``(A) a description of the local educational agency's 
     strategy to improve teaching and learning in every school;
       ``(B) a description of how the plan contributes to the 
     local educational agency's overall efforts for school reform 
     and educational improvement;
       ``(C) a description of the activities the local educational 
     agency intends to undertake under this subpart consistent 
     with such agency's needs assessment conducted under 
     subsection (b);
       ``(D) a description of how the plan has maintained funding 
     for professional development activities in mathematics and 
     science education;
       ``(E) a description of how the activities funded under this 
     section will address the needs of teachers in schools 
     receiving assistance under part A of title I of this Act;
       ``(F) a description of how programs in all core academic 
     subjects, but especially in mathematics and science, will 
     take into account the need for greater access to, and 
     participation in, such disciplines by students from 
     historically underrepresented groups, including females, 
     minorities, individuals with limited-English proficiency, the 
     economically disadvantaged, and the disabled, by 
     incorporating pedagogical strategies and techniques which 
     meet their educational need;
       ``(G) an assurance that the activities conducted with funds 
     received under this program will be assessed at least every 3 
     years using the performance indicators;
       ``(H) a description of how the program funded under this 
     subpart will be coordinated, as appropriate, with--
       ``(i) activities conducted under section 2130 and other 
     services of institutions of higher education;
       ``(ii) similar State and local activities;
       ``(iii) resources provided under part A of title I and 
     other parts of this Act, particularly part B of this title;
       ``(iv) resources from business, industry, private nonprofit 
     organizations (including museums, libraries, educational 
     television stations, community-based organizations, 
     professional organizations and associations specializing in, 
     or with a demonstrated expertise in the core academic 
     disciplines);
       ``(v) funds or programming from other Federal agencies, 
     such as the National Science Foundation, the Department of 
     Energy, the Department of Health and Human Services, the 
     National Endowment for the Humanities, and the National 
     Endowment for the Arts; and
       ``(vi) an identification of funding that will provide the 
     local educational agency's contribution under section 2127.

     ``SEC. 2127. LOCAL COST SHARING.

       ``(a) In General.--Each local educational agency shall bear 
     not less than 33 percent of the cost of any program carried 
     out under this subpart, but not including the cost of 
     services provided to private schoolteachers.
       ``(b) Available Resources for Cost-Sharing.--A local 
     educational agency may meet the requirements of subsection 
     (a) through one or more of the following:
       ``(1) Cash expenditures from non-Federal sources, including 
     private contributions, directed toward professional 
     development and curriculum development activities.
       ``(2) Release time for teachers participating in 
     professional development or curricula development funded 
     under this subpart.
       ``(3) Funds received under one or more of the following 
     programs, if used for professional development or curricula 
     development activities consistent with this subpart and 
     consistent with the statutes under which such funds are 
     provided, then such funds must be used for the benefit of 
     students and teachers in the schools that would otherwise 
     have been served with such funds:
       ``(A) Part A of title I of this Act.
       ``(B) The Safe and Drug Free Schools program under title IV 
     of this Act.
       ``(C) The bilingual education program under title VII of 
     this Act.
       ``(D) The Women's Educational Equity Program under title 
     III of this Act.
       ``(E) Title III of the Goals 2000: Educate America Act.
       ``(F) Programs that are related to the purposes of this Act 
     that are administered by other agencies, including the 
     National Science Foundation, the National Endowment for the 
     Humanities, the National Endowment for the Arts, and the 
     Department of Energy.
       ``(c) Waiver.--The State educational agency may approve an 
     application which has not fully met the requirements of 
     subsection (a) and waive the requirements of subsection (a) 
     if a local educational agency can demonstrate that it is 
     unable to meet the requirements of subsection (a) due to 
     economic hardship and that compliance with such requirements 
     would preclude its participation in the program.

     ``SEC. 2128. ALLOWABLE ACTIVITIES.

       ``(a) Authorized Activities.--Each local educational agency 
     and school that receives funds under this subpart shall use 
     such funds for activities that give teachers and 
     administrators the knowledge and skills to provide students 
     with the opportunity to meet challenging State or local 
     content and performance standards. Funds received by local 
     educational agencies under this subpart only shall be used 
     for the activities specified under subsections (b) and (c).
       ``(b) Professional Development.--If a needs assessment 
     conducted under section 2126(b) determines that funds under 
     this subpart should be used to provide professional 
     development in the core academic subjects for teachers and 
     other school staff, the local educational agency shall use 
     such funds for professional development for teachers and 
     other staff to support teaching consistent with State, or 
     local content standards, and shall, to the extent 
     practicable, coordinate such activities with institutions of 
     higher education and activities under section 2129:
       ``(1) Professional development activities funded under this 
     subpart shall--
       ``(A) be tied to challenging State or local content and 
     student performance standards;
       ``(B) reflect recent research on teaching and learning;
       ``(C) incorporate effective strategies, techniques, 
     methods, and practices for meeting the educational needs of 
     diverse students, including females, minorities, individuals 
     with disabilities, limited-English proficient individuals, 
     and economically disadvantaged individuals, in order to 
     ensure that all students have the opportunity to achieve 
     challenging performance standards;
       ``(D) include strong academic content and pedagogical 
     components;
       ``(E) be of sufficient intensity and duration to have a 
     positive and lasting impact on the teacher's performance in 
     the classroom; and
       ``(F) be part of the everyday life of the school and create 
     an orientation toward continuous improvement throughout the 
     school.
       ``(2) Funds under this subpart may be used for professional 
     development activities such as--
       ``(A) professional development for teams of teachers, 
     administrators, or other staff from individual schools, to 
     support teaching consistent with State or local content 
     standards;
       ``(B) support and time for teachers and other school staff 
     to participate in professional development in the core 
     subjects offered through professional associations, 
     universities, community-based organizations, and other 
     providers including museums and educational partnership 
     organizations;
       ``(C) activities that provide followup for teachers who 
     have participated in professional development activities that 
     are designed to ensure that knowledge and skills learned by 
     the teacher are implemented in the classroom;
       ``(D) support for partnerships between schools, consortia 
     of schools, or local education agencies and institutions of 
     higher education, including but not limited to schools of 
     education, which would encourage teachers to participate in 
     intensive, ongoing professional development programs, both 
     academic and pedagogical, at institutions of higher 
     education, and to encourage students at institutions of 
     higher education studying to become teachers to have direct, 
     practical experience at the schools;
       ``(E) the establishment and maintenance of local 
     professional networks that provide a forum for interaction 
     among teachers and that allow exchange of information on 
     advances in content and pedagogy;
       ``(F) activities to prepare teachers in the effective use 
     of educational technology as an instructional tool for 
     increasing student understanding of the core academic subject 
     areas;
       ``(G) activities to enable teachers to ensure that girls, 
     young women, minorities, limited-English proficient students, 
     individuals with disabilities, and economically disadvantaged 
     individuals the opportunity to achieve the challenging State 
     performance standards in the core academic subjects;
       ``(H) professional development and recruitment activities 
     designed to increase the number of minorities, individuals 
     with disabilities, and females teaching in the core academic 
     subject in which they are underrepresented;
       ``(I) other sustained and intensive high-quality 
     professional development activities in the core academic 
     subjects.
       ``(c) Curriculum Development.--(1) If the needs assessment 
     of a local educational agency determines that funds under 
     this subpart should be used for curriculum development 
     including the development of high quality standards, 
     assessments, and other methods needed to provide teachers 
     with the tools necessary to improve student achievement, such 
     agency shall use the funds provided to develop high quality 
     curricula that is aligned with State or local content and 
     performance standards.
       ``(2) Funds may be used to purchase the curriculum 
     materials to the extent such materials are essential 
     components of the local educational agency's plan to improve 
     teaching and learning in the core academic subjects.

     ``SEC. 2129. HIGHER EDUCATION ACTIVITIES.

       ``(a) General.--(1) The State agency for higher education, 
     working in conjunction with the State educational agency (if 
     it is a separate agency), shall make grants to, or enter into 
     contracts or cooperative agreements with, institutions of 
     higher education and nonprofit organizations including 
     museums and educational partnership organizations, which 
     demonstrate consultation and cooperation with a local 
     education agency, consortium of local education agencies, or 
     schools, for--
       ``(A) professional development activities in the core 
     academic subject areas that contribute to the State plan for 
     professional development;
       ``(B) engaging teachers in the development of high-quality 
     curricula that are aligned with State or local content and 
     performance standards;
       ``(C) developing and providing assistance to local 
     education agencies, and the teachers and staff of each such 
     agency, for sustained, high-quality professional development 
     activities;
       ``(D) improving teacher education programs in order to 
     promote further innovation in teacher education programs 
     within an institution of higher education and to better meet 
     the needs of the local education agencies for well-prepared 
     teachers;
       ``(2) All such awards shall be made on a competitive basis.
       ``(3) No institution of higher education may receive 
     assistance under subsection (a)(1) of this subsection unless 
     the institution enters into an agreement with a local 
     education agency, or consortium of such agencies, to provide 
     sustained, high-quality professional development for the 
     elementary and secondary school teachers in the schools of 
     each such agency.
       ``(4) Each project funded under this section shall involve 
     a joint effort of the recipient's school or department of 
     education and the schools or departments in the specific 
     disciplines in which assistance may be provided.
       ``(b) Allowable Activities.--A recipient of funds under 
     this section shall use those funds for--
       ``(1) sustained and intensive high-quality professional 
     development for teams of teachers, or teachers and 
     administrators from individual schools or districts;
       ``(2) other sustained and intensive professional 
     development activities related to achievement of the State 
     plan for professional development such as--
       ``(A) establishment and maintenance of professional 
     networks of teachers that provide a forum for interaction 
     among teachers and that allow exchange of information on 
     advances in content and pedagogy;
       ``(B) programs that prepare teachers to be effective users 
     of information technology, able to integrate technology into 
     their pedagogy and their instructional practices, and able to 
     enhance their curricular offerings by appropriate 
     applications of technology;
       ``(C) programs that utilize information technology to 
     deliver sustained and intensive high quality professional 
     development activities for teachers;
       ``(D) activities to enable teachers to ensure that girls, 
     young women, minorities, limited-English proficient students, 
     individuals with disabilities, and economically disadvantaged 
     individuals have the opportunity to achieve the challenging 
     State performance standards in the core academic subjects;
       ``(E) professional development and recruitment activities 
     designed to increase the number of minorities, individuals 
     with disabilities, and other underrepresented groups teaching 
     in the core academic subjects, particularly in mathematics 
     and science;
       ``(F) establishment of professional development academies 
     operated as partnerships between one or more elementary or 
     secondary schools and one or more institutions of higher 
     education to provide school-based teacher training that 
     provides prospective, novice, and experienced teachers with 
     an opportunity to work under the guidance of master teachers 
     and college faculty members; and
       ``(G) technical assistance to local educational agencies in 
     providing sustained and intensive high quality professional 
     development activities for teachers.

                    ``Subpart 3--General Provisions

     ``SEC. 2131. REPORTING AND ACCOUNTABILITY.

       ``(a) States.--Each State that receives funds under this 
     part shall submit a report to the Secretary every 3 years on 
     the State's progress toward the performance indicator 
     identified in its State plan, as well as on the effectiveness 
     of State and local activities under this part.
       ``(b) Local Educational Agencies.--Each local educational 
     agency that receives funds under this part shall submit a 
     report to the State every 3 years on its progress toward the 
     outcome performance indicators in its plan.
       ``(c) Federal Evaluation.--The Secretary shall report to 
     the President and Congress on the effectiveness of programs 
     and activities funded under this part.
       ``(d) Prohibition on Funds Being Used for Construction or 
     Renovation.--Funds received under this part shall not be used 
     for construction or renovation of buildings, rooms, or any 
     other facilities.

     ``SEC. 2132. DEFINITIONS.

       ``As used in this part, the following terms have the 
     following meanings:
       ``(1) The term `core academic subjects' means those 
     subjects listed in the State plan under title III of the 
     Goals 2000: Educate America Act or under National Education 
     Goal Three as set out in section 102(3) of such Act.
       ``(2) The term `performance indicators' means measures of 
     specific outcomes that the State or local educational agency 
     identifies as assessing progress toward the goal of ensuring 
     that all teachers have the knowledge and skills to assist 
     their students to meet challenging State standards in the 
     core academic subject areas. Examples of such indicators 
     include--
       ``(A) the degree to which licensure requirements are tied 
     to State standards;
       ``(B) specific increases in the number of elementary and 
     secondary teachers with strong content backgrounds in the 
     core academic subjects; and
       ``(C) effective strategies, techniques, methods, and 
     practices for meeting the educational needs of diverse 
     students, including females, minorities, individuals with 
     disabilities, limited-English proficient individuals, and 
     economically disadvantaged individuals, in order to ensure 
     that all students have the opportunity to achieve challenging 
     performance standards.
       ``(3) The term `sustained and intensive high-quality 
     professional development' means professional development 
     activities that--
       ``(A) are tied to challenging State or voluntary national 
     content and performance standards;
       ``(B) reflect up-to-date research in teaching and learning 
     and include integrated content and pedagogical components;
       ``(C) incorporates effective strategies, techniques, 
     methods, and practices for meeting the educational needs of 
     diverse students, including females, minorities, individuals 
     with disabilities, limited English proficient individuals, 
     and economically disadvantaged individuals, in order to 
     assure that all students have the opportunity to achieve 
     challenging performance standards;
       ``(D) are of sufficient intensity and duration to have a 
     positive and lasting impact on the teacher's performance in 
     the classroom or the administrator's performance on the job; 
     and
       ``(E) recognize teachers as an important source of 
     knowledge that should inform and help shape professional 
     development.
       ``(4) The term `local standard' means challenging content 
     and performance standards in the core subjects (in addition 
     to State content and performance standards approved by the 
     State for title I).

           ``PART B--INNOVATIVE EDUCATION PROGRAM STRATEGIES

     ``SEC. 2201. FINDINGS AND STATEMENT OF PURPOSE.

       ``(a) Findings.--The Congress finds that chapter 2 of the 
     Education Consolidation and Improvement Act of 1981 has been 
     successful in achieving the goals of increasing local 
     flexibility, reducing administrative burden, providing 
     services for private school students, encouraging innovation, 
     and contributing to the improvement of elementary and 
     secondary educational programs.
       ``(b) Statement of Purpose.--It is the purpose of programs 
     under this part:
       ``(1) To support local education reform efforts which are 
     consistent with and support statewide reform efforts under 
     the Goals 2000 Educate America Act.
       ``(2) To support State and local efforts to accomplish the 
     National Education Goals.
       ``(3) To provide funding to enable State and local 
     educational agencies to implement promising educational 
     reform programs that can be supported by State and local 
     sources of funding after such programs are demonstrated to be 
     effective.
       ``(4) To provide a continuing source of innovation, 
     educational improvement, and support for library services and 
     instructional materials, including media materials and,
       ``(5) To meet the special educational needs of at risk and 
     high cost students.
       ``(c) State and Local Responsibility.--The basic 
     responsibility for the administration of funds made available 
     under this part 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 part will be mainly that of local 
     educational agencies, school superintendents and principals, 
     and classroom teachers and supporting personnel, because they 
     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 districts.

     ``SEC. 2202. DEFINITION.

       ``For the purposes of this part the term ``effective 
     schools programs'' means school-based programs that may 
     encompass preschool through secondary school levels and that 
     have the objectives of (1) promoting school-level planning, 
     instructional improvement, and staff development, (2) 
     increasing the academic achievement levels of all children 
     and particularly educationally deprived children, and (3) 
     achieving as ongoing conditions in the school the following 
     factors identified through effective schools research as 
     distinguishing effective from ineffective schools:
       ``(A) strong and effective administrative and instructional 
     leadership that creates consensus on instructional goals and 
     organizational capacity for instructional problem solving;
       ``(B) emphasis on the acquisition of basic and higher order 
     skills;
       ``(C) a safe and orderly school environment that allows 
     teachers and pupils to focus their energies on academic 
     achievement;
       ``(D) a climate of expectation that virtually all children 
     can learn under appropriate conditions; and
       ``(E) continuous assessment of students and programs to 
     evaluate the effects of instruction.

     ``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS; DURATION OF 
                   ASSISTANCE.

       ``(a) Authorization.--To carry out the purposes of this 
     part, there are authorized to be appropriated such sums for 
     fiscal years 1995 through 1999.
       ``(b) Duration of Assistance.--During the period beginning 
     October 1, 1994, and ending, September 30, 1999, the 
     Secretary shall, in accordance with the provisions of this 
     part, make payments to State educational agencies for the 
     purpose of this section.

                 ``Subpart 1--State and Local Programs

     ``SEC. 2211. ALLOTMENT TO STATES.

       ``(a) Reservations.--From the sums appropriated to carry 
     out this subpart in any fiscal year, the Secretary shall 
     reserve not to exceed 1 percent for payments to Guam, 
     American Samoa, the Virgin Islands, Palau (until the 
     effective date of the Compact of Free Association with the 
     Government of Palau), and the Northern Mariana Islands, 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 one-half of 1 percent of such remainder.
       ``(c) Definitions.--For purposes of this subpart:
       ``(1) The term `school-age population' means the population 
     aged 5 through 17.
       ``(2) The term `States' includes the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 2212. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Distribution Rule.--From the sums made available each 
     year to carry out this part, 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, nonprofit 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 which have 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) 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 part, for the fiscal 
     year preceding the fiscal year in which the determination is 
     made. 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 part.
       ``(2)(A) 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) The Secretary shall review criteria submitted by a 
     State educational agency for adjusting allocations under 
     paragraph (1) 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) From the funds paid to it pursuant to section 2203 
     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 2223 the 
     amount of its allocation as determined under subsection (a).
       ``(2)(A) 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) 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) 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.

                      ``Subpart 2--State Programs

     ``SEC. 2221. STATE USES OF FUNDS.

       ``(a) Authorized Activities.--A State educational agency 
     may use funds reserved for State use under this section only 
     for--
       ``(1) State administration of programs under this section 
     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 part; and
       ``(2) 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 25 
     percent of funds available for State programs under this part 
     in any fiscal year may be used for State administration under 
     subsection (a)(1).

     ``SEC. 2223. STATE APPLICATIONS.

       ``(a) Application Requirements.--Any State which desires to 
     receive a grant 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 part;
       ``(2)(A) provides for an annual submission of data on the 
     use of funds, the types of services furnished, and the 
     students served under this section; and
       ``(B) in fiscal year 1998 provides for an evaluation of the 
     effectiveness of programs assisted under this subpart;
       ``(3) sets forth the allocation of such funds requested to 
     implement section 2252;
       ``(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 assurance that, apart from technical and 
     advisory assistance and monitoring compliance with this part, 
     the State educational agency has not exercised and will not 
     exercise any influence in the decision making processes of 
     local educational agencies as to the expenditure made 
     pursuant to an application under section 2233; and
       ``(6) contain assurances that there is compliance with the 
     specific requirements of this part.
       ``(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.--Notwithstanding section 1745 of the 
     Omnibus Budget Reconciliation Act of 1981, local educational 
     agencies receiving less than an average of $5,000 each under 
     this section need not be audited more frequently than once 
     every 5 years.

            ``Subpart 3--Local Targeted Assistance Programs

     ``SEC. 2231. TARGETED USE OF FUNDS.

       ``(a) General Rule.--Funds allocated for use under this 
     subpart shall be used by local educational agencies for 
     targeted assistance described in subsection (b).
       ``(b) Targeted Assistance.--The targeted assistance 
     programs referred to in subsection (a) include--
       ``(1) technology related to the implementation of school-
     based reform programs, including professional development to 
     assist teachers and other school officials regarding how to 
     use effectively such equipment and software;
       ``(2) instructional and educational materials, assessments, 
     and library services and materials (including media 
     materials) tied to high academic standards and which are part 
     of an overall education reform program;
       ``(3) promising education reform projects, including 
     effective schools and 21st Century Learning Center school 
     projects in accordance with subpart 4; and
       ``(4) computer hardware and software purchased under this 
     section should be used only for instructional purposes.

     ``SEC. 2232. ADMINISTRATIVE AUTHORITY.

       ``In order to conduct the activities authorized by this 
     part, each State or local educational agency may use funds 
     reserved for this part 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. 2233. LOCAL APPLICATIONS.

       ``(a) Contents of Application.--A local educational agency 
     or consortia of local educational 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 
     targeted assistance programs described in section 2231 of 
     this part and describes the programs, projects and activities 
     designed to carry out such targeted assistance which it 
     intends to support, together with the reasons for selection 
     of such programs, projects and activities; and
       ``(B) sets forth the allocation of such funds required to 
     implement section 2252;
       ``(2) describes how assistance under this section will 
     contribute to meeting the National Education Goals and 
     improving student achievement or improving the quality of 
     education for students;
       ``(3) provides assurances of compliance with the provisions 
     of this part, including the participation of children 
     enrolled in private, nonprofit schools in accordance with 
     section ______;
       ``(4) agrees to keep such records, and provide such 
     information to the State educational agency as may reasonably 
     be required for fiscal audit and program evaluation, 
     concession with the responsibilities of the State agency 
     under this part; and
       ``(5) provides in the allocation of funds for the 
     assistance authorized by this part, and in the design, 
     planning and implementation of such programs, for systematic 
     consultation with parents of children attending elementary 
     and secondary schools in the area served by the local 
     education agency, with teachers and administrative personnel 
     in such schools, and with other groups involved in the 
     implementation of this section (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 part, a local 
     educational agency shall have complete discretion in 
     determining how funds under this subpart shall be divided 
     among the areas of targeted assistance. In exercising such 
     discretion, a local educational agency shall ensure that 
     expenditures under this subpart carry out the purposes of 
     this subpart and are used to meet the educational needs 
     within the schools of such local educational agency.

          ``Subpart 4--21st Century Community Learning Centers

     ``SEC. 2241. FINDINGS.

       ``The Congress finds that--
       ``(1) there are influences outside of school which affect 
     the ability of a child to achieve academically and schools 
     are in a unique position to identify student and family needs 
     to coordinate programs;
       ``(2) access to health and social service programs can 
     assist children and their families to improve the ability of 
     the family to take an active role in their child's education;
       ``(3) coordination of health and social service programs 
     with education can help the Nation meet the National 
     Education Goals and ensure better outcomes for children;
       ``(4) the high technology, global economy of the 21st 
     century will require lifelong learning to keep America's 
     workforce competitive and successful;
       ``(5) 21st Century Community Learning Centers enable the 
     entire community to develop an education strategy that 
     addresses the educational needs of all members of local 
     communities; and
       ``(6) local public schools should provide centers for 
     lifelong learning and educational opportunities for 
     individuals of all ages.

     ``SEC. 2242. FUNDS FOR COMMUNITY LEARNING CENTERS.

       ``(a) In General.--Local educational agencies may use funds 
     provided under section 2212 to pay the Federal share of the 
     cost for enabling schools to serve as centers for the 
     delivery of education and human services for members of a 
     community.
       ``(b) Uses of Funds.--Local educational agencies may use 
     funds provided under section 2212 for projects described 
     under this subpart.

     ``SEC. 2243. PROGRAMS.

       ``Local educational agencies that receive funds under this 
     subpart may develop programs that include--
       ``(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 in conjunction 
     with summer recreation programs;
       ``(6) nutrition programs;
       ``(7) expanded library service hours to serve community 
     needs;
       ``(8) telecommunications and technology education programs 
     for all ages;
       ``(9) parenting skills education programs;
       ``(10) support and training for child day care providers;
       ``(11) employment counseling, training, and placement;
       ``(12) services for students who withdraw from school 
     before graduating high school, regardless of age; and
       ``(13) services for individuals who are either physically 
     or mentally challenged.

     ``SEC. 2244. REQUIREMENTS.

       ``A local educational agency that uses funds to develop 
     programs under this subpart shall, at the end of the first 
     year for which funds are used for this purpose, provide 
     information to the State educational agency which describes 
     the activities and projects established with funds under this 
     subpart and includes--
       ``(1) information on the comprehensive local plan that 
     enables such school to serve as a center for the delivery of 
     education and human services for members of a community; and
       ``(2) information on the initial evaluation of needs, 
     available resources, and goals and objectives for the 
     proposed community education program and how such evaluation 
     was used to determine the program developed to address such 
     needs; including--
       ``(A) the mechanism used to disseminate information in a 
     manner understandable and accessible to the community;
       ``(B) identification of Federal, State, and local programs 
     merged or coordinated so that public resources could be 
     maximized;
       ``(C) a description of the collaborative efforts of 
     community-based organizations, related public agencies, 
     businesses, or other appropriate organizations;
       ``(D) a description of how the school will assist as a 
     delivery center for existing and new services; and
       ``(E) the establishment of the facility utilization policy 
     that specifically states rules and regulations for building 
     and equipment use and supervision guidelines.

     ``SEC. 2245. DEFINITION.

       ``For purposes of this subpart, the term `Community 
     Learning Center' means the provision of educational, 
     recreational, health, and social service programs for 
     residents of all ages of a local community in public school 
     buildings, primarily in rural and inner city areas, operated 
     by the local educational agency in conjunction with local 
     governmental agencies, businesses, vocational education 
     programs, community colleges, universities, cultural, 
     recreational, and other community and human service entities.

             ``Subpart 5--General Administrative Provisions

     ``SEC. 2251. MAINTENANCE OF EFFORT; FEDERAL FUNDS 
                   SUPPLEMENTARY.

       ``(a) Maintenance of Effort.--(1) Except as provided in 
     paragraph (2), a State is entitled to receive its full 
     allocation of funds under this part 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 preceding fiscal year was not less than 90 percent of 
     such combined fiscal effort or aggregate expenditures for the 
     second preceding fiscal year.
       ``(2) The Secretary shall reduce the amount of the 
     allocation of funds under this part 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) 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.
       ``(b) Federal Funds Supplementary.--A State or local 
     educational agency may use and allocate funds received under 
     this part 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 part, 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. 2252. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       ``(a) Participation on Equitable Basis.--(1) 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 part or which serves the area in which a 
     program or project assisted under this part 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 reserved 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 part.
       ``(2) If no program or project is carried out under 
     subsection (a)(1) of this section 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 that district are provided with services and 
     materials to the extent that would have occurred if the local 
     educational agency had received funds under this part.
       ``(3) 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 part 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 part 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 part 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) The control of funds provided under this 
     part, and title to materials, equipment, and property 
     repaired, remodeled, or constructed therewith, shall be in a 
     public agency for the uses and purposes provided in this 
     part, and a public agency shall administer such funds and 
     property.
       ``(2) The provision of services pursuant to this section 
     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 part 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 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) 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 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) 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 part.
       ``(h) Review.--(1) 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 at least 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) If a State or local educational agency is 
     dissatisfied with the Secretary's final action after a 
     proceeding under paragraph (1) of this subsection, it 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. A copy 
     of the petition shall be forthwith 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) 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 thereupon 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) Upon the filing of such petition, the court shall 
     have jurisdiction to affirm the action of the Secretary or to 
     set it 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.

     ``SEC. 2253. EVALUATIONS AND REPORTING.

       ``(a) Local Educational Agencies.--A local educational 
     agency which receives financial assistance under this part 
     shall report annually to the State educational agency on the 
     use of funds under section 2431. Such reporting shall be 
     carried out in a manner which minimizes the amount of 
     paperwork required while providing the State educational 
     agency with the necessary information under the preceding 
     sentence. Such report shall be made available to the public.
       ``(b) State Educational Agencies.--A State educational 
     agency which receives financial assistance under this part 
     shall evaluate the effectiveness of State and local programs 
     under this part in accordance with section 2423(a)(4)(B). 
     That evaluation shall be submitted for review and comment by 
     the State advisory committee and shall be made available to 
     the public. The State educational agency shall submit to the 
     Secretary a copy of the evaluation and a summary of the 
     reports under subsection (a).
       ``(c) Reports.--(1) The Secretary, in consultation with 
     State and local educational agency representatives, shall 
     develop a model system which State educational agencies may 
     use for data collection and reporting under this part.
       ``(2)(A) The Secretary shall submit annually a report to 
     the Congress for the use of funds, the types of services 
     furnished, and the students served under this part.
       ``(B) The Secretary shall not later than October 1, 1998, 
     submit a report to the Congress summarizing evaluations under 
     subsection (b) in order to provide a national overview of the 
     uses of funds and effectiveness of programs under this part.

     ``SEC. 2254. FEDERAL ADMINISTRATION.

       ``(a) Technical Assistance.--The Secretary, upon request, 
     shall provide technical assistance to State and local 
     educational agencies under this part.
       (b) Rulemaking.--The Secretary shall issue regulations 
     under this part only to the extent that such regulations are 
     necessary to ensure that there is compliance with the 
     specific requirements and assurances required by this part.
       (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 part 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.

     ``SEC. 2255. APPLICATION OF GENERAL EDUCATION PROVISIONS ACT.

       ``(a) General Rule.--Except as otherwise specifically 
     provided by this section, the General Education Provisions 
     Act shall apply to the programs authorized by this part.
       ``(b) Applicability.--The following provisions of the 
     General Education Provisions Act shall be superseded by the 
     specified provisions of this part with respect to the 
     programs authorized by this part:
       ``(1) Section 410(a)(1) of the General Education Provisions 
     Act is superseded by section 2254(b) of this part.
       ``(2) Section 433(a) of such Act is superseded by section 
     2254(a) of this part.
       ``(3) Section 436 of such Act is superseded by sections 
     2223 and 2233 of this part.
       (c) Special Rule.--Sections 440, 441, and 442 of the 
     General Education Provisions Act, except to the extent that 
     such sections relate to fiscal control and fund accounting 
     procedures, may not apply to the programs authorized by this 
     part and shall not be construed to authorize the Secretary to 
     require any reports or take any actions not specifically 
     authorized by this part.

           ``PART C--SUPPORT AND ASSISTANCE FOR ESEA PROGRAMS

     ``SEC. 2301. FINDINGS.

       ``The Congress finds that--
       ``(1) high-quality technical assistance can enhance the 
     improvements in teaching and learning achieved through the 
     implementation of programs under this Act;
       ``(2) comprehensive technical assistance is an essential 
     ingredient of the overall strategy of the 1994 
     reauthorization of this Act to improve programs and to 
     provide all children opportunities to meet challenging State 
     performance standards;
       ``(3) States, local educational agencies, and schools 
     serving students with special needs, such as students with 
     limited English proficiency, have great need for 
     comprehensive technical assistance in order to use funds 
     under this Act to provide such students with opportunities to 
     meet challenging State standards;
       ``(4) current technical assistance efforts are fragmented 
     and categorical in nature, and thus fail to address 
     adequately the needs of States and local educational agencies 
     for help in integrating into a coherent strategy for 
     improving teaching and learning the various programs under 
     this Act with State and local programs and other education 
     reform efforts;
       ``(5) too little creative use is made of technology as a 
     means of providing information and assistance in a cost-
     effective way;
       ``(6) comprehensive technical assistance can help schools 
     and school systems focus on improving opportunities for all 
     children to reach challenging State performance standards, as 
     they implement programs under this Act;
       ``(7) comprehensive technical assistance would provide 
     `one-stop shopping' to help States, local educational 
     agencies, participating colleges and universities, and 
     schools integrate Federal, State, and local education 
     programs in ways that contribute to improving schools and 
     entire school systems; and
       ``(8) technical assistance in support of programs under 
     this Act should be coordinated with the Department's regional 
     offices, the regional educational laboratories, and other 
     technical assistance efforts supported by the Department.

     ``SEC. 2302. PURPOSE.

       ``The purpose of this part is to make available to States, 
     local educational agencies, schools, and other recipients of 
     funds under this Act technical assistance in--
       ``(1) administering and implementing programs authorized by 
     this Act in a manner that is consistent with State and local 
     plans under the Goals 2000: Educate America Act; and
       ``(2) coordinating those programs with other Federal, 
     State, and local education activities, so that all students 
     are provided opportunities to meet challenging State 
     performance standards.

     ``SEC. 2303. PROGRAM AUTHORIZED.

       ``(a) Comprehensive Regional Centers.--The Secretary is 
     authorized to establish one center in each of the 
     Department's ten regions to provide comprehensive technical 
     assistance to States, local educational agencies, schools, 
     and other recipients of funds under this Act in their 
     administration and implementation of programs authorized by 
     this Act. In allocating resources among the centers, the 
     Secretary shall consider the geographic distribution of 
     students with special needs.
       ``(b) Technology-Based Technical Assistance.--The Secretary 
     is also authorized to provide a technology-based technical 
     assistance service that will--
       ``(1) support the administration and implementation of 
     programs authorized by this Act by providing information, 
     including legal and regulatory information, and technical 
     guidance and information about best practices; and
       ``(2) be accessible to all States, local educational 
     agencies, schools, and others who are recipients of funds 
     under this Act.

     ``SEC. 2304. ELIGIBLE ENTITIES.

       ``The Secretary may carry out this part directly or through 
     grants to, or contracts or cooperative agreements with, 
     public or private agencies or organizations or consortia of 
     those agencies and organizations.

     ``SEC. 2305. COMPREHENSIVE REGIONAL CENTERS.

       ``Each comprehensive regional center established under 
     section 2203(a) shall--
       ``(1) maintain staff expertise in at least all of the 
     following areas:
       ``(A) Instruction, curriculum improvement, school reform, 
     and other aspects of title I of this Act.
       ``(B) Development and operation of successful schoolwide 
     programs under title I of this Act, including integrating 
     programs to serve children in high-poverty areas, migratory 
     children, children with limited English proficiency, 
     neglected and delinquent children, homeless children and 
     youth, Indian children, and children with disabilities.
       ``(C) Meeting the needs of children served under this Act, 
     including children in high-poverty areas, migratory children, 
     children with limited English proficiency, neglected or 
     delinquent children, homeless children and youth, Indian 
     children, and children with disabilities.
       ``(D) Professional development for teachers, other school 
     staff, and administrators to help students meet challenging 
     State performance standards.
       ``(E) Bilingual education, including programs that 
     emphasize English and native language proficiency, and 
     promote multicultural understanding.
       ``(F) Safe and drug-free schools.
       ``(G) Educational applications of technology.
       ``(H) Parent involvement and participation.
       ``(I) The reform of schools and school systems.
       ``(J) Program evaluation;
       ``(2) ensure that technical assistance staff have 
     sufficient training, knowledge, and expertise in how to 
     integrate and coordinate programs under this Act with each 
     other, as well as with other Federal, State, and local 
     programs and reforms;
       ``(3) work collaboratively with the Department's regional 
     offices;
       ``(4) provide technical assistance using the highest 
     quality and most cost-effective strategies possible;
       ``(5) provide information and assistance regarding 
     exemplary and promising practices;
       ``(6) work collaboratively, and coordinate the services it 
     provides, with the general reform assistance provided by the 
     regional educational laboratories supported by the Office of 
     Educational Research and Improvement; and
       ``(7) consult with representatives of State educational 
     agencies, local educational agencies, and populations served 
     under this Act.

     ``SEC. 2306. INFORMATION COLLECTION AND EVALUATION.

       ``The Secretary shall evaluate activities under this part 
     to determine their effectiveness in advancing the purposes of 
     this part, and report to the President and Congress on the 
     effectiveness of such activities.

     ``SEC. 2307. TRANSITION.

       ``(a) General.--The Secretary may use funds appropriated 
     for this part for fiscal year 1995 in such manner as the 
     Secretary finds necessary in order to ensure a smooth 
     implementation of this part.
       ``(b) Extension of Previous Centers.--In accordance with 
     subsection (a), and notwithstanding any other provisions of 
     law, the Secretary may use such funds for existing contracts 
     and to extend the award of any categorical technical 
     assistance center under this Act that was in operation on the 
     day before enactment of the Improving America's Schools Act 
     of 1993.

     ``SEC. 2308. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $70,000,000 for fiscal year 
     1995 and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.

                  ``PART D--TECHNOLOGY FOR EXCELLENCE

     ``SEC. 2411. SHORT TITLE.

       ``This part may be cited as the `Technology for Excellence 
     in Education Act'.

     ``SEC. 2412. DEFINITIONS.

       ``(a) In General.--The terms used in this part, unless 
     otherwise specified, shall have the same meaning given to 
     such terms in section 9101 of this Act.
       ``(b) Additional Definitions.--For the purposes of this 
     part--
       ``(1) the term `Director' means the Director of Educational 
     Technology as established in subpart 1; and
       ``(2) the term `educational technology' includes closed 
     circuit television systems, public telecommunications 
     entities, cable television, satellite, copper and fiber optic 
     transmission, computer hardware and software, video and audio 
     laser, and CD ROM disc, video and audio tapes, and other 
     technologies related to educational services.

      ``Subpart 1--National Leadership for Educational Technology

     ``SEC. 2421. PURPOSES.

       ``The purposes of this subpart are--
       ``(1) to establish a national agenda for the use of 
     technology in education to assist all students in attaining 
     world-class academic standards as a means to increasing 
     academic achievement and learning and reaching the National 
     Education Goals;
       ``(2) to assure that all children in the United States 
     start school ready to learn;
       ``(3) to increase the high school graduation rate to at 
     least 90 percent;
       ``(4) to provide all students the opportunity to 
     demonstrate competency in challenging subject matter in core 
     areas and ensure that all students learn to use their minds 
     well;
       ``(5) to increase the mathematics and science achievement 
     of all students;
       ``(6) to provide the opportunity for all adult Americans to 
     achieve literacy;
       ``(7) to ensure that every school in the United States is 
     free of drugs and violence and will offer a disciplined 
     environment conducive to learning;
       ``(8) to coordinate Federal programs--whose support already 
     accounts for 50 percent of all funds used by schools to 
     purchase software, integrated learning systems, and 
     hardware--that provide for the development, purchase, or use 
     of technology in education, including programs administered 
     by the Department of Education and those administered by 
     other Federal Departments;
       ``(9) to develop national standards and guidelines for 
     State and local educational agencies to guide future projects 
     and coordinate existing projects to ensure the compatibility 
     of education-related computer and telecommunications networks 
     on a national level; and
       ``(10) to permit funds distributed to the States and 
     localities under existing Federal programs to be used for 
     education-related technology purposes.

     ``SEC. 2422. DIRECTOR OF EDUCATIONAL TECHNOLOGY.

       ``The Secretary shall appoint a Director of Educational 
     Technology within the Department of Education. The Director 
     shall be compensated at an annual rate of not less than a 
     level GS-15 employee under section 5332 of title 5, United 
     States Code.

     ``SEC. 2423. DUTIES OF DIRECTOR.

       ``(a) Duties.--The duties of the Director of Educational 
     Technology are--
       ``(1) to provide national leadership regarding the use of 
     technology in education at all levels in achieving the 
     National Education Goals, including--
       ``(A) submission of an annual report to Congress regarding 
     education-related technology use and recommendations for the 
     continuation of current and the development of future uses of 
     technology to achieve the National Education Goals;
       ``(B) promotion of the use of technology to achieve the 
     National Education Goals in programs that receive Federal 
     assistance, particularly programs under titles I and II of 
     this Act;
       ``(C) the development of support programs designed to 
     increase the access of all children, particularly 
     disadvantaged children from rural and urban poverty areas, to 
     high-level learning through the use of quality technologies; 
     and
       ``(D) the support of research, development, evaluation, and 
     dissemination of educational technologies;
       ``(2) to provide a mechanism for coordinating existing 
     Federal programs across agencies to encourage joint funding, 
     planning, and implementation of projects;
       ``(3) to provide a mechanism for the development of 
     standards and guidelines for State and local educational 
     agencies in conjunction with industry to ensure the 
     compatibility of educational computer and telecommunications 
     networks on a national level; and
       ``(4) to provide support and training programs to educators 
     in the use of technology to help obtain the National 
     Education Goals.

                   ``Subpart 2--State Planning Grants

     ``SEC. 2431. PURPOSES.

       ``The purposes of this subpart are--
       ``(1) to ensure that State educational agencies have a 
     clear, long-term strategic plan for incorporating the use of 
     technology in education; and
       ``(2) to allow States which have developed a State 
     technology plan to allocate planning funds to local 
     educational agencies to implement strategies developed in 
     such plan.

     ``SEC. 2432. STATE PLANNING GRANTS.

       ``The Secretary of Education is authorized to provide a 
     one-time competitive grant to State educational agencies 50 
     percent of which shall be allocated in accordance with the 
     relative amount the State received under title 1 of this Act 
     for the preceding fiscal year and 50 percent of which shall 
     be allocated in accordance with the relative amount the State 
     received under part B of this title for the preceding fiscal 
     year.

     ``SEC. 2433. AUTHORIZED ACTIVITIES.

       ``(a) State Plans.--A State educational agency which 
     receives a grant under this subpart shall not later than 1 
     year after receipt of funds under this subpart undertake 
     public hearings and complete a comprehensive State plan which 
     includes--
       ``(1) overall strategic goals for the use of technology in 
     education at all levels within the State;
       ``(2) a 5-year standards and assessment process to measure 
     progress toward the goals in paragraph (1);
       ``(3) a follow-up 10-year standards and assessment process 
     to measure progress toward the goals in paragraph (1);
       ``(4) guidelines for local educational agencies for the 
     incorporation of educational technology into institutions of 
     education at all levels;
       ``(5) a plan for the dissemination and sharing of 
     information to local educational agencies about innovative 
     and cost-effective uses of educational technology;
       ``(6) a plan for training educational personnel in the use 
     of technology in the classroom;
       ``(7) a coordination plan providing mechanisms for the use 
     of educational technology to assist existing and future 
     education reform efforts at both the State and local levels; 
     and
       ``(8) a plan to leverage public and private support for the 
     funding and provision of educational technology in a cost-
     effective manner to institutions of education at all levels.
       ``(b) Demonstration Subgrants.--States that have completed 
     the State technology plan under subsection (a) may allocate 
     funds received under this section as competitive subgrants to 
     local educational agencies to implement strategies in such 
     plan following the procedures in subpart 3.

     ``SEC. 2434. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $10,000,000 for 
     fiscal year 1994 and such sums for fiscal years 1995-1999 to 
     carry out the purposes of this subpart.

                  ``Subpart 3--Local Challenge Grants

     ``SEC. 2441. PURPOSE.

       ``The purposes of this subpart are--
       ``(1) to challenge local communities to incorporate 
     quality, innovative educational technology in their education 
     systems at all levels; and
       ``(2) to provide practical models of educational technology 
     as provided for in the goals and guidelines under the State 
     plans required in subpart 2.

     ``SEC. 2442. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) In General.--(1) The Secretary is authorized to 
     provide grants to State educational agencies for the use by 
     local educational agencies of 3-year competitive 
     demonstration grants to implement State technology plans.
       ``(2) Such grants may be awarded only to States which have 
     completed the State technology plan required by subpart 2. 
     The Secretary may waive this requirement if a State has a 
     plan in place which meets the criteria established in subpart 
     2.
       ``(3) The State shall give priority consideration to 
     demonstration programs that provide access to quality 
     educational technology to disadvantaged urban and rural 
     areas.
       ``(4) The State shall give priority consideration to 
     demonstration programs that may be replicated in other areas 
     throughout the Nation.
       ``(b) Dissemination of Model Programs.--The Secretary shall 
     reserve not more than 5 percent of the funds authorized under 
     this title to allow the Director of Educational Technology to 
     disseminate effective models of the use of high-quality 
     educational technology on a national basis.
       ``(c) Matching Requirement.--(1) The Federal share under 
     this subpart may not exceed--
       ``(A) 100 percent of the total cost of a program for the 
     first year for which a State receives funds under this 
     subpart;
       ``(B) 85 percent of the total cost of a program for the 
     second year for which a State receives funds under this 
     subpart;
       ``(C) 60 percent of the total cost of a program for the 
     third year for which a State receives funds under this 
     subpart;
       ``(D) 45 percent of the total cost of a program for the 
     fourth year for which a State receives funds under this 
     subpart; and
       ``(E) 33 percent of the total cost of a program for the 
     fifth and any succeeding year for which a State receives 
     funds under this subpart.
       ``(2) The remaining cost may be provided in cash or in 
     kind, fairly evaluated, and may be obtained from any source 
     other than funds made available for programs under this 
     subpart.

     ``SEC. 2443. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $25,000,000 for 
     fiscal year 1994 and such sums as may be necessary to carry 
     out the projects under this subpart for each of the fiscal 
     years 1995 through 1999.

                   ``Subpart 4--Star Schools Program

     ``SEC. 2451. FINDINGS.

       ``The Congress finds that--
       ``(1) the Star Schools program has helped to encourage the 
     use of distance learning strategies to serve multi-State 
     regions primarily by means of satellite and broadcast 
     television;
       ``(2) in general, distance learning programs have been used 
     effectively to provide students in small, rural, and isolated 
     schools with courses and instruction, such as science and 
     foreign language instruction, that the local educational 
     agency would not otherwise have been able to provide; and
       ``(3) distance learning programs could also be used to--
       ``(A) provide students in all types of schools and local 
     educational agencies with greater access to high-quality 
     instruction in the full range of core academic subjects that 
     would enable them to meet challenging, internationally 
     competitive, educational standards;
       ``(B) expand professional development opportunities for 
     teachers;
       ``(C) contribute to achievement of the National Education 
     Goals; and
       ``(D) expand learning opportunities for everyone.

     ``SEC. 2452. STATEMENT OF PURPOSE.

       ``The purpose of this subpart is to encourage the expansion 
     and use of distance learning programs and technologies to 
     help--
       ``(1) improve teaching and learning;
       ``(2) achieve the National Education Goals;
       ``(3) all students learn to challenging State content 
     standards; and
       ``(4) increase participation in State and local educational 
     reform.

     ``SEC. 2453. PROGRAM AUTHORIZED.

       ``(a) Star School Awards.--The Secretary is authorized, in 
     accordance with this subpart, to make grants to eligible 
     entities for the Federal share of the cost of providing 
     distance learning programs, including--
       ``(1) developing, constructing, and acquiring 
     telecommunications facilities and equipment;
       ``(2) developing and acquiring instructional programming; 
     and
       ``(3) providing technical assistance regarding the use of 
     such facilities and instructional programming.
       ``(b) Authorization of Appropriations.--For the purpose of 
     carrying out this subpart, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
       ``(c) Limitations.--(1) A grant under this section shall 
     not exceed--
       ``(A) five years in duration; and
       ``(B) $10,000,000 in any one fiscal year.
       ``(2) Not less than 25 percent of the funds available to 
     the Secretary for any fiscal year under this subpart shall be 
     used for the cost of instructional programming.
       ``(3) Not less than 50 percent of the funds available to 
     the Secretary for any fiscal year under this subpart shall be 
     used for the cost of facilities, equipment, teacher training 
     or retraining, technical assistance, or programming, for 
     local educational agencies that are eligible to receive 
     assistance under part A of title I of this Act.
       ``(d) Federal Share.--(1) The Federal share of the cost of 
     projects funded under this section shall not exceed 75 
     percent for the first and second years of the award, 60 
     percent for the third and fourth years, and 50 percent for 
     the fifth year.
       ``(2) The Secretary may reduce or waive the requirement of 
     the non-Federal share under paragraph (1) upon a showing of 
     financial hardship.
       ``(e) Authority To Accept Funds From Other Agencies.--The 
     Secretary is authorized to accept funds from other agencies 
     to carry out the purposes of this section, including funds 
     for the purchase of equipment.

     ``SEC. 2454. ELIGIBLE ENTITIES.

       ``(a) Eligible Entities.--(1) The Secretary may make a 
     grant under section 2221 to any eligible entity, provided 
     that at least one local educational agency is participating 
     in the proposed project.
       ``(2) An eligible entity may include--
       ``(A) a public agency or corporation established for the 
     purpose of developing and operating telecommunications 
     networks to enhance educational opportunities provided by 
     educational institutions, teacher training centers, and other 
     entities, except that any such agency or corporation shall 
     represent the interests of elementary and secondary schools 
     that are eligible to participate in the program under part A 
     of title I of this Act; or
       ``(B) any two or more of the following, which will provide 
     a telecommunications network:
       ``(i) a local educational agency that has a significant 
     number of elementary and secondary schools that are eligible 
     for assistance under part A of title I of this Act, or 
     elementary and secondary schools operated or funded for 
     Indian children by the Department of the Interior eligible 
     under section 1121(b)(1) of this Act;
       ``(ii) a State educational agency;
       ``(iii) an institution of higher education or a State 
     higher education agency;
       ``(iv) a teacher training center or academy that--
       ``(I) provides teacher pre-service and in-service training; 
     and
       ``(II) receives Federal financial assistance or has been 
     approved by a State agency;
       ``(v)(I) a public or private entity with experience and 
     expertise in the planning and operation of a 
     telecommunications network, including entities involved in 
     telecommunications through satellite, cable, telephone, or 
     computer; or
       ``(II) a public broadcasting entity with such experience; 
     or
       ``(vi) a public or private elementary or secondary school.

     ``SEC. 2455. APPLICATIONS.

       ``(a) General Requirement.--Each eligible entity that 
     desires to receive a grant under this subpart shall submit an 
     application to the Secretary in such form, at such time, and 
     containing such information and assurances as the Secretary 
     may require.
       ``(b) Star School Award Applications.--Each application for 
     a grant authorized under section 2221 shall--
       ``(1) describe--
       ``(A) how the proposed project will assist in achieving the 
     National Education Goals set out in title I of the Goals 
     2000: Educate America Act, how it will assist all students to 
     have an opportunity to learn to challenging State standards, 
     and how it will assist State and local educational reform 
     efforts;
       ``(B) the telecommunications facilities and equipment and 
     technical assistance for which assistance is sought, which 
     may include--
       ``(i) the design, development, construction, and 
     acquisition of district, multidistrict, State, or multistate 
     educational telecommunications networks and technology 
     resource centers;
       ``(ii) microwave, fiber optics, cable, and satellite 
     transmission equipment, or any combination thereof;
       ``(iii) reception facilities, satellite time, production 
     facilities, and other telecommunications equipment capable of 
     serving the intended geographic area;
       ``(iv) the provision of training services to instructors 
     who will be using the facilities and equipment for which 
     assistance is sought in using such facilities and equipment, 
     and in integrating programs into the class curriculum; and
       ``(v) the development of educational and related 
     programming for use on a telecommunications network;
       ``(C) the types of programming that will be developed to 
     enhance instruction and training, including an assurance that 
     such programming will be designed in consultation with 
     professionals who are experts in the applicable subject 
     matter and grade level;
       ``(D) how the eligible entity has engaged in sufficient 
     survey and analysis of the area to be served to ensure that 
     the services offered by the eligible entity will increase the 
     availability of courses of instruction in English, 
     mathematics, science, foreign languages, arts, history, 
     geography, or other disciplines;
       ``(E) the professional development policies for teachers 
     and other school personnel to be implemented to ensure the 
     effective use of the telecommunications facilities and 
     equipment for which assistance is sought;
       ``(F) the manner in which historically underserved students 
     (such as students from low-income families, limited English 
     proficient students, disabled students, or students who have 
     low literacy skills) and their families will participate in 
     the benefits of the telecommunications facilities, equipment, 
     technical assistance, and programming assisted under this 
     subpart;
       ``(G) how existing telecommunications equipment, 
     facilities, and services, where available, will be used;
       ``(H) the activities or services for which assistance is 
     sought, such as--
       ``(i) providing facilities, equipment, training services, 
     and technical assistance;
       ``(ii) making programs accessible to individuals with 
     disabilities through mechanisms such as closed captioning and 
     descriptive video services;
       ``(iii) linking networks around issues of national 
     importance (such as elections) or to provide information 
     about employment opportunities, job training, or student and 
     other social service programs;
       ``(iv) sharing curriculum materials between networks;
       ``(v) providing teacher and student support services;
       ``(vi) incorporating community resources such as libraries 
     and museums into instructional programs;
       ``(vii) providing professional development for teachers, 
     including, as appropriate, training to early childhood 
     development and Head Start teachers and staff and vocational 
     education teachers and staff; and
       ``(viii) providing programs for adults at times other than 
     the regular school day in order to maximize the use of 
     telecommunications facilities and equipment; and
       ``(I) how the proposed project as a whole will be financed 
     and how arrangements for future financing will be developed 
     before the project expires;
       ``(2) provide an assurance that a significant portion of 
     any facilities, equipment, technical assistance, and 
     programming for which assistance is sought for elementary and 
     secondary schools will be made available to schools in local 
     educational agencies that have a high percentage of children 
     counted for the purpose of part A of title I of this Act; and
       ``(3) provide an assurance that the applicant will provide 
     such information and cooperate in any evaluation that the 
     Secretary may conduct under this subpart.
       ``(c) Priorities.--The Secretary shall, in approving 
     applications for grants authorized under section 2221, give 
     priority to applications that--
       ``(1) propose high-quality plans to assist in achieving one 
     or more of the National Education Goals as set out in title I 
     of the Goals 2000: Educate America Act, would provide 
     instruction consistent with State content standards, or would 
     otherwise provide significant and specific assistance to 
     States and local educational agencies undertaking systemic 
     education reform under title III of the Goals 2000: Educate 
     America Act; and
       ``(2) would serve schools with significant numbers of 
     children counted for the purposes of part A of title I of 
     this Act.
       ``(d) Geographic Distribution.--In approving applications 
     for grants authorized under section 2221, the Secretary 
     shall, to the extent feasible, ensure an equitable geographic 
     distribution of services.

     ``SEC. 2456. LEADERSHIP AND EVALUATION ACTIVITIES.

       ``(a) Set-Aside.--From amounts appropriated under section 
     2221(b), the Secretary may reserve up to 10 percent for 
     national leadership, evaluation, and peer review activities.
       ``(b) Method of Funding.--The Secretary may fund the 
     activities described in subsection (a) directly or through 
     grants, contracts, and cooperative agreements.
       ``(c) Uses of Funds.--(1) Funds reserved for leadership 
     activities may be used for--
       ``(A) disseminating information, including lists and 
     descriptions of services available from recipients; and
       ``(B) other activities designed to enhance the quality of 
     distance learning activities nationwide.
       ``(2) Funds reserved for evaluation activities shall be 
     used to conduct independent evaluations of the Star Schools 
     program under this subpart and of distance learning in 
     general, including--
       ``(A) analyses of distance learning efforts, including both 
     Star Schools projects and efforts not funded by the program 
     under this subpart; and
       ``(B) comparisons of the effects, including student 
     outcomes, of different technologies in distance learning 
     efforts.
       ``(3) Funds reserved for peer review activities may be used 
     for peer review of both proposals and funded projects.

     ``SEC. 2457. DEFINITIONS.

       ``For the purpose of this subpart, the following terms have 
     the following meanings:
       ``(1) The term `educational institution' means an 
     institution of higher education, a local educational agency, 
     or a State educational agency.
       ``(2) The term `instructional programming' means courses of 
     instruction and training courses for elementary and secondary 
     students, teachers, and others, and materials for use in such 
     instruction and training that have been prepared in audio and 
     visual form on tape, disc, film, or live, and presented by 
     means of telecommunications devices.
       ``(3) The term `public broadcasting entity' has the same 
     meaning given that term in section 397 of the Communications 
     Act of 1934.

                 ``Subpart 5--Commission on Technology

     ``SEC. 2461. ESTABLISHMENT OF COMMISSION.

       ``The Secretary, in cooperation with the Congressional 
     Office of Technology Assessment, shall appoint a Commission 
     that will make recommendations regarding the development and 
     implementation of technology-based education at the State and 
     local levels.

     ``TITLE III--FUND FOR THE IMPROVEMENT OF EDUCATION

                       ``PART A--IMPROVEMENT FUND

     ``SEC. 3201.

       ``(a) Fund Authorized.--From funds appropriated under 
     subsection (d), the Secretary is authorized to support 
     nationally significant programs and projects to improve the 
     quality of education, assist all students to meet challenging 
     standards, and contribute to achievement of the National 
     Education Goals. The Secretary is authorized to carry out 
     such programs and projects directly or through grants to, or 
     contracts with, State and local education agencies, 
     institutions of higher education, and other public and 
     private agencies, organizations, and institutions.
       ``(b) Uses of Funds.--(1) Funds under this section may be 
     used for--
       ``(A) activities that will promote systemic education 
     reform at the State and local levels, such as--
       ``(i) research and development related to content and 
     performance standards for student learning; and
       ``(ii) the development and evaluation of model strategies 
     for assessment of student learning, professional development 
     for teachers and administrators, parent and community 
     involvement, and other aspects of systemic reform;
       ``(B) demonstrations at the State and local levels that are 
     designed to yield nationally significant results, including 
     approaches to charter schools, public school choice and 
     school based decision-making;
       ``(C) joint activities with other agencies to assist the 
     effort to achieve the National Education Goals, including 
     activities related to improving the transition from preschool 
     to school and from school to work;
       ``(D) activities to promote and evaluate counseling and 
     mentoring for students, including intergenerational 
     mentoring;
       ``(E) activities to promote environmental education;
       ``(F) activities to assist students to demonstrate 
     competence in foreign languages;
       ``(G) studies and evaluation of various education reform 
     strategies and innovations being pursued by the Federal 
     Government, States, and local educational agencies;
       ``(H) the identification and recognition of exemplary 
     schools and programs, such as Blue Ribbon Schools; and
       ``(I) other programs and projects that meet the purposes of 
     this section.
       ``(2) The Secretary may also use funds under this section 
     to complete the project periods for direct grants or 
     contracts awarded under the provisions of the Elementary and 
     Secondary Education Act of 1965, part B of title III of the 
     Augustus F. Hawkins-Robert T. Stafford Elementary and 
     Secondary School Improvement Amendments of 1988, or title III 
     of the Education for Economic Security Act, as these Acts 
     were in effect on the day before enactment of the Improving 
     America's Schools Act of 1993.
       ``(c) Awards.--(1) The Secretary may make awards under this 
     section on the basis of competitions announced by the 
     Secretary and may also support meritorious unsolicited 
     proposals.
       ``(2) The Secretary shall ensure that projects and 
     activities supported under this section are designed so that 
     their effectiveness is readily ascertainable.
       ``(3) The Secretary shall use a peer review process in 
     reviewing applications for grants under this section and may 
     use funds appropriated under subsection (d) for this purpose.
       ``(d) Authorization.--For the purpose of carrying out this 
     section, there are authorized to be appropriated $35,000,000 
     for fiscal year 1995 and such sums as may be necessary for 
     each of the fiscal years 1996 through 1999.

     ``PART B--GIFTED AND TALENTED CHILDREN

     ``SEC. 3301. SHORT TITLE.

       ``This part may be cited as the `Jacob K. Javits Gifted and 
     Talented Students Education Act of 1994'.

     ``SEC. 3302. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress finds and declares that--
       ``(1) all students can learn to high standards and must 
     develop their talents and realize their potential if the 
     United States is to prosper;
       ``(2) gifted and talented students are a national resource 
     vital to the future of the Nation and its security and well-
     being;
       ``(3) too often schools fail to challenge students to do 
     their best work, and students who are not challenged will not 
     learn to high standards, fully develop their talents, and 
     realize their potential;
       ``(4) unless the special abilities of gifted and talented 
     students are recognized and developed during their elementary 
     and secondary school years, much of their special potential 
     for contributing to the national interest is likely to be 
     lost;
       ``(5) gifted and talented students from economically 
     disadvantaged families and areas, and students of limited 
     English proficiency are at greatest risk of being 
     unrecognized and of not being provided adequate or 
     appropriate educational services;
       ``(6) State and local educational agencies and private 
     nonprofit schools often lack the necessary specialized 
     resources to plan and implement effective programs for the 
     early identification of gifted and talented students for the 
     provision of educational services and programs appropriate to 
     their special needs;
       ``(7) the Federal Government can best carry out the limited 
     but essential role of stimulating research and development 
     and personnel training and providing a national focal point 
     of information and technical assistance that is necessary to 
     ensure that the Nation's schools are able to meet the special 
     educational needs of gifted and talented students, and 
     thereby serve a profound national interest; and
       ``(8) the experience and knowledge gained in developing and 
     implementing programs for gifted and talented students can 
     and should be used as a basis to develop a rich and 
     challenging curriculum for all students.
       ``(b) Statement of Purpose.--
       ``(1) It is the purpose of this part to provide financial 
     assistance to State and local educational agencies, 
     institutions of higher education, and other public and 
     private agencies and organizations, to initiate a coordinated 
     program of research, demonstration projects, personnel 
     training, and similar activities designed to build a 
     nationwide capability in elementary and secondary schools to 
     meet the special educational needs of gifted and talented 
     students. In addition, the purpose of this part is to 
     encourage the development of rich and challenging curricula 
     for all students through the appropriate application and 
     adaptation of materials and instructional methods developed 
     under this part.
       ``(2) It is also the purpose of this part to supplement and 
     make more effective the expenditure of State and local funds, 
     for the education of gifted and talented students.

     ``SEC. 3303. DEFINITIONS.

       ``For purposes of this part, the term `gifted and talented 
     students' means children and 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.

     ``SEC. 3304. AUTHORIZED PROGRAMS.

       ``(a) Establishment of Program.--
       ``(1) From the sums appropriated under section 3308 in any 
     fiscal year the Secretary (after consultation with experts in 
     the field of the education of gifted and talented students) 
     shall make grants to or enter into contracts with State 
     educational agencies, local educational agencies, 
     institutions of higher education, or other public agencies 
     and private agencies and organizations (including Indian 
     tribes and organizations as defined by the Indian Self-
     Determination and Education Assistance Act and Hawaiian 
     native organizations) to assist such agencies, institutions, 
     and organizations which submit applications in carrying out 
     programs or projects authorized by this Act that are designed 
     to meet the educational needs of gifted and talented 
     students, including the training of personnel in the 
     education of gifted and talented students and in the use, 
     where appropriate, of gifted and talented services, 
     materials, and methods for all students.
       ``(2) Applications for funds must include a section on how 
     the proposed gifted and talented services, materials, and 
     methods could be adapted, if appropriate, for use by all 
     students and a section on how the proposed programs can be 
     evaluated.
       ``(b) Uses of Funds.--Programs and projects assisted under 
     this section may include--
       ``(1) professional development (including fellowships) for 
     personnel (including leadership personnel) involved in the 
     education of gifted and talented students;
       ``(2) establishment and operation of model projects and 
     exemplary programs for serving gifted and talented students, 
     including innovative methods for identifying and educating 
     students who may not be served by traditional gifted and 
     talented programs, summer programs, mentoring programs, 
     service learning programs, and cooperative programs involving 
     business, industry, and education;
       ``(3) training of personnel involved in gifted and talented 
     programs with respect to the impact of gender role 
     socialization on the educational needs of gifted and talented 
     children and in gender equitable education methods, 
     techniques, and practices;
       ``(4) strengthening the capability of State educational 
     agencies and institutions of higher education to provide 
     leadership and assistance to local educational agencies and 
     nonprofit private schools in the planning, operation, and 
     improvement of programs for the identification and education 
     of gifted and talented students and the appropriate use of 
     gifted and talented programs and methods to serve all 
     students;
       ``(5) programs of technical assistance and information 
     dissemination which would include how gifted and talented 
     programs and methods, where appropriate, could be adapted for 
     use by all students; and
       ``(6) carrying out--
       ``(A) research on methods and techniques for identifying 
     and teaching gifted and talented students, and for using 
     gifted and talented programs and methods to serve all 
     students; and
       ``(B) program evaluations, surveys, and the collection, 
     analysis, and development of information needed to accomplish 
     the purposes of this part.
       ``(c) Establishment of National Center.--
       ``(1) The Secretary (after consultation with experts in the 
     field of the education of gifted and talented students) shall 
     establish a National Center for Research and Development in 
     the Education of Gifted and Talented Children and Youth 
     through grants to or contracts with one or more institutions 
     of higher education or State educational agencies, or a 
     combination or consortium of such institutions and agencies, 
     for the purpose of carrying out activities described in 
     paragraph (5) of subsection (b).
       ``(2) Such National Center shall have a Director. The 
     Secretary may authorize the Director to carry out such 
     functions of the National Center as may be agreed upon 
     through arrangements with other institutions of higher 
     education, State or local educational agencies, or other 
     public or private agencies and organizations.
       ``(d) Limitation.--Not more than 30 percent of the funds 
     available in any fiscal year to carry out the programs and 
     projects authorized by this section may be used to conduct 
     activities pursuant to subsections (b)(5) or (c).
       ``(e) Coordination.--Research activities supported under 
     this section--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out with the Office of 
     Education Research and Improvement.

     ``SEC. 3305. PROGRAM PRIORITIES.

       ``(a) General Priority.--In the administration of this part 
     the Secretary shall give highest priority--
       ``(1) to the identification of and services to gifted and 
     talented students who may not be identified and served 
     through traditional assessment methods (including 
     economically disadvantaged individuals, individuals of 
     limited-English proficiency, and individuals with 
     disabilities; and
       ``(2) to programs and projects designed to develop or 
     improve the capability of schools in an entire State or 
     region of the Nation through cooperative efforts and 
     participation of State and local educational agencies, 
     institutions of higher education, and other public and 
     private agencies and organizations (including business, 
     industry, and labor), to plan, conduct, and improve programs 
     for the identification of and service to gifted and talented 
     students, such as mentoring and apprenticeship programs.
       ``(b) Service Priority.--In approving applications under 
     section 3304(a) of this part, the Secretary shall assure that 
     in each fiscal year at least one-half of the applications 
     approved address the priority in section 3305(a)(1).

     ``SEC. 3306. GENERAL PROVISIONS.

       ``(a) Participation of Private School Children and 
     Teachers.--In making grants and entering into contracts under 
     this part, the Secretary shall ensure, where appropriate, 
     that provision is made for the equitable participation of 
     students and teachers in private nonprofit elementary and 
     secondary schools, including the participation of teachers 
     and other personnel in professional development programs for 
     serving such children.
       ``(b) Review, Dissemination, and Evaluation.--The Secretary 
     shall--
       ``(1) use a peer review process in reviewing applications 
     under this part;
       ``(2) ensure that information on the activities and results 
     of projects funded under this part is disseminated to 
     appropriate State and local agencies and other appropriate 
     organizations, including nonprofit private organizations; and
       ``(3) evaluate the effectiveness of programs under this 
     part, both in terms of the impact on students traditionally 
     served in separate gifted and talented programs and on other 
     students, and submit the results of such evaluation to 
     Congress not later than January 1, 1998.

     ``SEC. 3307. ADMINISTRATION.

       ``The Secretary shall establish or designate an 
     administrative unit within the Department of Education--
       ``(1) to administer the programs authorized by this part;
       ``(2) to coordinate all programs for gifted and talented 
     students administered by the Department;
       ``(3) to serve as a focal point of national leadership and 
     information on the educational needs of gifted and talented 
     students and the availability of educational services and 
     programs designed to meet such needs; and
       ``(4) to assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities which reflect the needs of gifted and talented 
     students.

     The administrative unit established or designated pursuant to 
     this section shall be headed by a person of recognized 
     professional qualifications and experience in the field of 
     the education of gifted and talented students.

     ``SEC. 3308. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $10,000,000 for 
     fiscal year 1995 and such sums as may be necessary for each 
     of the fiscal years 1996, 1997, 1998, and 1999 to carry out 
     the provisions of this part.

                    ``PART C--PUBLIC CHARTER SCHOOLS

     ``SEC. 3401. PURPOSE.

       ``It is the purpose of this part to increase national 
     understanding of the charter schools model by--
       ``(1) providing financial assistance for the design and 
     initial implementation of charter schools; and
       ``(2) evaluating the effects of those schools on improving 
     student achievement, including their effects on students, 
     staff, and parents.

     ``SEC. 3402. PROGRAM AUTHORIZED.

       ``(a) General.--The Secretary may make grants to eligible 
     applicants for the design and initial operation of charter 
     schools.
       ``(b) Project Periods.--Each such grant shall be for a 
     period of not more than three years, of which the grantee may 
     use--
       ``(1) no more than 18 months for planning and program 
     design; and
       ``(2) no more than two years for the initial implementation 
     of the charter school.
       ``(c) Limitation.--The Secretary shall not make more than 
     one grant to support a particular charter school.

     ``SEC. 3403. APPLICATIONS.

       ``(a) Applications Required.--Any eligible applicant that 
     desires to receive a grant under this part shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require.
       ``(b) Scope of Application.--Each such application may 
     request assistance for a single charter school or for a 
     cluster of schools, which may include a high school and its 
     feeder elementary and middle schools, within a community.
       ``(c) Application Contents.--Each such application shall 
     include, for each charter school for which assistance is 
     sought--
       ``(1) a description of the educational program to be 
     implemented by the proposed charter school, including--
       ``(A) how the program will enable all students to meet 
     challenging State performance standards;
       ``(B) the grade levels or ages of children to be served; 
     and
       ``(C) the curriculum and instructional practices to be 
     used;
       ``(2) a description of how the school will be managed;
       ``(3) a description of--
       ``(A) the objectives of the school; and
       ``(B) the methods by which the school will determine its 
     progress toward achieving those objectives;
       ``(4) a description of the administrative relationship 
     between the charter school and the local educational agency 
     that will authorize or approve the school's charter and act 
     as the grantee under this part;
       ``(5) a description of how parents and other members of the 
     community will be involved in the design and implementation 
     of the charter school;
       ``(6) a description of how the local educational agency 
     will provide for continued operation of the school once the 
     Federal grant has expired, if such agency determines that the 
     school is successful;
       ``(7) 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;
       ``(8) a description of how the grant funds would be used;
       ``(9) a description of how grant funds would be used in 
     conjunction with other Federal programs administered by the 
     Secretary;
       ``(10) a description of how students in the community will 
     be--
       ``(A) informed about the school; and
       ``(B) given an equal opportunity to attend the school;
       ``(11) an assurance that the applicant will annually 
     provide the Secretary such information as the Secretary may 
     require to determine if the charter school is making 
     satisfactory progress toward achieving the objectives 
     described under paragraph (3);
       ``(12) an assurance that the applicant will cooperate with 
     the Secretary in evaluating the program authorized by this 
     part; and
       ``(13) such other information and assurances as the 
     Secretary may require.
       ``(d) State Educational Agency Approval Required.--(1) A 
     local educational agency that desires to receive a grant 
     under this part shall obtain the State educational agency's 
     approval of its application before submitting it to the 
     Secretary.
       ``(2) A State educational agency that approves an 
     application of a local educational agency shall provide the 
     local educational agency, and such local agency shall include 
     in its application to the Secretary, a statement that the 
     State has granted, or will grant, the waivers and exemptions 
     from State requirements described in such local agency's 
     application.

     ``SEC. 3404. SELECTION OF GRANTEES; WAIVERS.

       ``(a) Criteria.--The Secretary shall select projects to be 
     funded on the basis of the quality of the applications, 
     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 and, 
     if applicable, the local educational agency to the school;
       ``(3) the extent of community support for the application;
       ``(4) the ambitiousness of the objectives for the school;
       ``(5) the quality of the plan for assessing achievement of 
     those objectives; and
       ``(6) the likelihood that the school will meet those 
     objectives and improve educational results for students.
       ``(b) Peer Review.--The Secretary shall use a peer review 
     process to review applications for grants under this section.
       ``(c) Diversity of Projects.--The Secretary may approve 
     projects in a manner that ensures, to the extent possible, 
     that they--
       ``(1) are distributed throughout different areas of the 
     Nation, including in urban and rural areas; and
       ``(2) represent a variety of educational approaches.
       ``(d) Waivers.--The Secretary may waive any statutory or 
     regulatory requirement that the Secretary is responsible for 
     enforcing, except for any such requirement relating to the 
     elements of a charter school described in section 3407(1), 
     if--
       ``(1) the waiver is requested in an approved application or 
     by a grantee under this part; and
       ``(2) the Secretary determines that granting such a waiver 
     would promote the purpose of this part.

     ``SEC. 3405. USES OF FUNDS.

       ``A recipient of a grant under this part may use the grant 
     funds only for--
       ``(1) post-award planning and design of the educational 
     program, which may include--
       ``(A) refinement of the desired educational results and of 
     the methods for measuring progress toward achieving those 
     results; and
       ``(B) professional development of teachers and other staff 
     who will work in the charter school; and
       ``(2) initial implementation of the charter school, which 
     may include--
       ``(A) informing the community about the school;
       ``(B) acquiring necessary equipment;
       ``(C) acquiring or developing curriculum materials; and
       ``(D) other operational costs that cannot be met from State 
     or local sources.

     ``SEC. 3406. NATIONAL ACTIVITIES.

       ``The Secretary may reserve up to 10 percent of the funds 
     appropriated for this part for any fiscal year for--
       ``(1) peer review of applications under section 3404(b); 
     and
       ``(2) an evaluation of the impact of charter schools on 
     student achievement, including those assisted under this 
     part.

     ``SEC. 3407. DEFINITIONS.

       ``As used in this part, the following terms have the 
     following meanings:
       ``(1) The term `charter school' means a school that--
       ``(A) in accordance with an enabling State statute, 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;
       ``(C) operates in pursuit of a specific set of educational 
     objectives determined by the school's developer and agreed to 
     by the local educational agency applying for a grant on 
     behalf of the school;
       ``(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, 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) 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 public 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; and
       ``(K) operates in accordance with State law.
       ``(2) 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) The term `eligible applicant' means a local 
     educational agency, in partnership with a developer with an 
     application approved under section 3403(d).

     ``SEC. 3408. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $15,000,000 for fiscal year 
     1995 and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.

                      ``PART D--ARTS IN EDUCATION

     ``SEC. 3501. SUPPORT FOR ARTS EDUCATION.

       ``(a) Findings.--The Congress finds that--
       ``(1) the arts are forms of understanding and ways of 
     knowing that are fundamentally important to education;
       ``(2) the arts are important to excellent education and to 
     effective school reform;
       ``(3) the most significant contribution of the arts to 
     education reform is the transformation of teaching and 
     learning;
       ``(4) this transformation is best realized in the context 
     of comprehensive, systemic education reform;
       ``(5) demonstrated competency in the arts for American 
     students is among the National Education Goals;
       ``(6) the arts can motivate at-risk students to stay in 
     school and become active participants in the educational 
     process; and
       ``(7) arts education should be an integral part of the 
     elementary and secondary school curriculum.
       ``(b) Purpose. The purposes of this part are to--
       ``(1) support systemic education reform by strengthening 
     arts education as an integral part of the elementary and 
     secondary school curriculum;
       ``(2) help ensure that all students have the opportunity to 
     meet challenging standards in the arts; and
       ``(3) support the national effort to enable all students to 
     demonstrate competence in the arts in accordance with the 
     National Education Goals.
       ``(c) Eligible Recipients.--In order to carry out the 
     purposes of this part, the Secretary is authorized to make 
     grants to, or enter into contracts or cooperative agreements 
     with--
       ``(1) State educational agencies;
       ``(2) local educational agencies;
       ``(3) institutions of higher education; and
       ``(4) other public and private agencies, institutions, and 
     organizations.
       ``(d) Authorized Activities.--Funds under this part may be 
     used for--
       ``(1) research on arts education;
       ``(2) the development of, and dissemination of information 
     about, model arts education programs;
       ``(3) the development of model arts education assessments 
     based on high standards;
       ``(4) the development and implementation of curriculum 
     frameworks for arts education;
       ``(5) the development of model preservice and inservice 
     professional development programs for arts educators and 
     other instructional staff;
       ``(6) supporting collaborative activities with other 
     Federal agencies or institutions involved in arts education, 
     such as the National Endowment for the Arts, the Institute of 
     Museum Services, the John F. Kennedy Center for the 
     Performing Arts, and the National Gallery of Art;
       ``(7) supporting model projects and programs in the 
     performing arts for children and youth through arrangements 
     made with the John F. Kennedy Center for the Performing Arts;
       ``(8) supporting model projects and programs in the arts 
     for individuals with disabilities through arrangements with 
     the organization, Very Special Arts;
       ``(9) supporting model projects and programs to integrate 
     arts education into the regular elementary and secondary 
     school curriculum; and
       ``(10) other activities that further the purposes of this 
     part.
       ``(e) Coordination.--(1) A recipient of funds under this 
     part shall, to the extent possible, coordinate its project 
     with appropriate activities of public and private cultural 
     agencies, institutions, and organizations, including museums, 
     arts education associations, libraries, and theaters.
       ``(2) In carrying out this part, the Secretary shall 
     coordinate with the National Endowment for the Arts, the 
     Institute of Museum Services, the John F. Kennedy Center for 
     the Performing Arts, and the National Gallery of Art.

     ``SEC. 3502. COMMUNITY ARTS PARTNERSHIP.

       ``(a) Purpose.--The purpose of this section is to make 
     demonstration grants to eligible entities to improve the 
     educational performance and future potential of at-risk 
     children and youth by providing comprehensive and coordinated 
     educational and cultural services.
       ``(b) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible entities to pay the Federal share of the 
     costs of the activities described in subsection (e).
       ``(2) Special requirements.--The Secretary shall award 
     grants under this Act only to programs designed to--
       ``(A) promote educational and cultural services;
       ``(B) provide multi-year services to at-risk children and 
     youth;
       ``(C) serve the target population described in subsection 
     (e);
       ``(D) provide integration of community cultural resources 
     in the regular curriculum;
       ``(E) focus school and cultural resources in the community 
     on coordinated cultural services to address the needs of at-
     risk children and youth;
       ``(F) provide effective cultural linkages from preschool 
     programs, including the Head Start Act and preschool grants 
     under the Individuals with Disabilities Education Act, to 
     elementary schools;
       ``(G) facilitate school-to-work transition from secondary 
     schools and alternative schools to job training, higher 
     education, and employment;
       ``(H) increase parental and community involvement in the 
     educational, social, and cultural development of at-risk 
     youth; or
       ``(I) replicate programs and strategies that provide high 
     quality coordinated educational and cultural services and 
     that are designed to integrate such coordination into the 
     regular curriculum.
       ``(3) Requirement of Coordination.--Grants may only be 
     awarded under this section to eligible entities that agree to 
     coordinate activities carried out under other Federal, State, 
     and local grants, received by the members of the partnership 
     for purposes and target populations described in this 
     section, into an integrated service delivery system located 
     at a school, cultural, or other community-based site 
     accessible to and utilized by at-risk youth.
       ``(4) Duration.--Grants made under this section may be 
     renewable for a maximum of 5 years if the Secretary 
     determines that the eligible recipient has made satisfactory 
     progress toward the achievement of the program objectives 
     described in application.
       ``(5) Geographic Distribution.--In awarding grants under 
     this part, the Secretary shall ensure--
       ``(A) an equitable geographic distribution; and
       ``(B) an equitable distribution to both urban and rural 
     areas with a high proportion of at-risk youth as defined in 
     subsection (e).
       ``(c) Eligibility.--
       ``(1) Services for in-school youth.--For the purpose of 
     providing a grant under this section to serve in-school 
     children and youth, the term `eligible entity' means a 
     partnership between a local education agency that is eligible 
     for funds under title I of this Act, and at least 1 
     institution of higher education or cultural entity located 
     within or accessible to the geographical boundaries of the 
     local education agency with a history of providing quality 
     services to the community, and which may include--
       ``(A) nonprofit institutions of higher education; museums; 
     libraries; performing, presenting and exhibiting arts 
     organizations; literary arts organizations; local arts 
     organizations; and zoological and botanical organizations; 
     and
       ``(B) private for-profit entities with a history of 
     training children and youth in the arts.
       ``(2) Services for out-of-school youth.--For purposes of 
     providing a grant under this part to serve out-of-school 
     youth, the term `eligible entity' means a partnership between 
     at least 1 entity of the type described in paragraph (A) or 
     (B) of subsection (1), or a local education agency eligible 
     for funds under chapter 1 of title I of this Act and at least 
     1 cultural entity described in subsection (1).
       ``(d) Target Population.--In order to receive a grant under 
     this section, an eligible entity shall serve--
       ``(1) students enrolled in schools in participating 
     schoolwide projects assisted under title I of this Act and 
     the families of such students; or
       ``(2) out-of-school youth at risk of having limited future 
     options as a result of teenage pregnancy and parenting, 
     substance abuse, recent migration, disability, limited 
     English proficiency, family migration, illiteracy, being the 
     child of a teen parent, living in a single parent household, 
     or being a high school dropout; or
       ``(3) any combination of in school and out-of-school at-
     risk youth.
       ``(e) Authorized Activities.--
       ``(1) In general.--Funds made under this part may be used--
       ``(A) to plan, develop, acquire, expand, and improve 
     school-based or community-based coordinated educational and 
     cultural programs to strengthen the educational performance 
     and future potential of in-school and out-of-school at-risk 
     youth through cooperative agreements, contracts for services, 
     or administrative coordination;
       ``(B) to provide at-risk students with integrated cultural 
     activities designed to develop a love of learning to ensure 
     the smooth transition of preschool children to elementary 
     school;
       ``(C) to design collaborative cultural activities for 
     students in secondary or alternative schools that ensure the 
     smooth transition to job training, higher education, or full 
     employment;
       ``(D) to provide child care for children of at-risk 
     students who would not otherwise be able to participate in 
     the program;
       ``(E) to provide transportation necessary for participation 
     in the program;
       ``(F) to work with existing school personnel to develop 
     curriculum materials and programs in the arts;
       ``(G) to work with existing school personnel on staff 
     development activities that encourage the integration of the 
     arts into the curriculum;
       ``(H) for stipends that allow local artists to work with 
     at-risk children and youth in the schools;
       ``(I) for cultural programs that encourage the active 
     participation of parents in their children's education;
       ``(J) for programs that use the arts to reform current 
     school practices, including lengthening the school day or 
     academic year;
       ``(K) for appropriate equipment and necessary supplies; and
       ``(L) for evaluation, administration, and supervision.
       ``(2) Priority.--In providing assistance under this part, 
     the Secretary shall give priority to eligible entities that 
     provide comprehensive services that extend beyond traditional 
     school or service hour, that may include year round programs 
     that provide services in the evenings and on weekends.
       ``(3) Planning grants.--
       ``(A) Application.--An eligible entity may submit an 
     application to the Secretary for a planning grants for an 
     amount not to exceed $50,000. Such grants shall be for 
     periods of not more than 1 year.
       ``(B) Limit on planning grants.--Not more than 10 percent 
     of the amounts appropriated in each fiscal year under this 
     part shall be used for grants under this subsection, and an 
     eligible entity may receive not more than 1 such planning 
     grant.
       ``(f) General Provisions.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this part 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) Contents.--Each application submitted pursuant to 
     subsection (a) shall--
       ``(A) describe the cultural entity or entities that will 
     participate in the partnership;
       ``(B) describe the target population to be served;
       ``(C) describe the services to be provided;
       ``(D) describe a plan for evaluating the success of the 
     program;
       ``(E) describe, for a local educational agency participant, 
     how services will be perpetuated beyond the length of the 
     grant;
       ``(F) describe the manner in which the eligible entity will 
     improve the educational achievement or future potential of 
     at-risk youth through more effective coordination of cultural 
     services in the community;
       ``(G) describe the overall and operational goals of the 
     program; and
       ``(H) describe the nature and location of all planned sites 
     where services will be delivered and a description of 
     services which will be provided at each site.
       ``(g) Payments--Federal Share.--
       ``(1) Payments.--The Secretary shall pay to each eligible 
     entity having an application approved under subsection (g) 
     the Federal share of the cost of the activities described in 
     the application.
       ``(2) Amounts of grants.--The amount of a grant made under 
     this part may not be less than $100,000 or exceed $500,000 in 
     the first year of such grant.
       ``(3) Federal share.--The Federal share shall be 80 
     percent.
       ``(4) Non-federal share.--The non-Federal share shall be 
     equal to 20 percent and may be in cash or in kind, fairly 
     evaluated, including facilities or services.
       ``(5) Limitation.--Not more than 25 percent of any grant 
     under this part may be used for noninstructional services 
     such as those described in paragraphs D, E, and L of 
     subsection (f).
       ``(6) Supplement and not supplant.--Grant funds awarded 
     under this part shall be used to supplement not supplant the 
     amount of funds made available from non-Federal sources, for 
     the activities assisted under this part, in amounts that 
     exceed the amounts expended for such activities in the year 
     preceding the year for which the grant is awarded.
       ``(7) Dissemination of models.--The Secretary shall 
     disseminate information concerning successful models under 
     this part through the National Diffusion Net work.

     ``SEC. 3503. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 1995, 1996, 1997, 1998, and 
     1999.

            ``PART E--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

     ``SEC. 3601. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR 
                   READING MOTIVATION.

       ``(a) Authorization.--The Secretary is authorized to enter 
     into a contract with Reading Is Fundamental (hereinafter in 
     this section referred to as ``the contractor``) to support 
     and promote programs, which include the distribution of 
     inexpensive books to students, that motivate children to 
     read.
       ``(b) Requirements of Contract.--Any contract entered into 
     under subsection (a) shall--
       ``(1) provide that the contractor will enter into 
     subcontracts with local private nonprofit groups or 
     organizations or with public agencies under which each 
     subcontractor will agree to establish, operate, and provide 
     the non-Federal share of the cost of reading motivation 
     programs that include the distribution of books, by gift, to 
     the extent feasible, or by loan, to children up through high 
     school age, including those in family literacy programs;
       ``(2) provide that funds made available to subcontractors 
     will be used only to pay the Federal share of the cost of 
     such programs;
       ``(3) provide that in selecting subcontractors for initial 
     funding, the contractor will give priority to programs that 
     will serve a substantial number or percentage of children 
     with special needs, such as--
       ``(A) low-income children, particularly in high-poverty 
     areas;
       ``(B) children at risk of school failure;
       ``(C) children with disabilities, including children with 
     serious emotional disturbance;
       ``(D) foster children;
       ``(E) homeless children;
       ``(F) migrant children;
       ``(G) children without access to libraries;
       ``(H) institutionalized or incarcerated children; and
       ``(I) children whose parents are institutionalized or 
     incarcerated;
       ``(4) provide that the contractor will provide such 
     technical assistance to subcontractors as may be necessary to 
     carry out the purpose of this section;
       ``(5) provide that the contractor will annually report to 
     the Secretary the number of, and describe, programs funded 
     under paragraph (3); and
       ``(6) include such other terms and conditions as the 
     Secretary determines to be appropriate to ensure the 
     effectiveness of such programs.
       ``(c) Restriction on Payments.--The Secretary shall make no 
     payment of the Federal share of the cost of acquiring and 
     distributing books under any contract under this section 
     unless the Secretary determines that the contractor or 
     subcontractor, as the case may be, has made arrangements with 
     book publishers or distributors to obtain books at discounts 
     at least as favorable as discounts that are customarily given 
     by such publisher or distributor for book purchases made 
     under similar circumstances in the absence of Federal 
     assistance.
       ``(d) Definition of `Federal Share'.--For the purpose of 
     this section, the term `Federal share' means the portion of 
     the cost to a subcontractor of purchasing books to be paid 
     with funds made available under this section. The Federal 
     share shall be established by the Secretary, and shall not 
     exceed 75 percent, except that the Federal share for programs 
     serving children of migrant or seasonal farmworkers shall be 
     100 percent.
       ``(e) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $10,300,000 for fiscal year 1995 and such sums 
     as may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.

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

     ``SEC. 4001. SHORT TITLE.

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

     ``SEC. 4002. FINDINGS.

       ``The Congress finds as follows:
       ``(1) National Education Goal Six provides that by the year 
     2000, all schools in America will be free of drugs and 
     violence and offer a disciplined environment that is 
     conducive to learning.
       ``(2) The widespread illegal use of alcohol and other drugs 
     among the Nation's secondary school students, and 
     increasingly by students in elementary schools as well, 
     constitutes a grave threat to their 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) Our Nation's schools and communities are increasingly 
     plagued by violence and crime. Approximately three million 
     thefts and violent crimes occur in or near our Nation's 
     schools every year, the equivalent of more than 16,000 
     incidents per school day. Approximately one of every five 
     high school students now carries a firearm, knife, or club on 
     a regular basis.
       ``(4) The tragic consequences of violence and the illegal 
     use of alcohol and drugs by students are felt not only by 
     students and their families, but by their communities and the 
     Nation, which can ill afford to lose their skills, talents, 
     and vitality.
       ``(5) While use of illegal drugs is a serious problem among 
     a minority of teenagers, alcohol use is far more widespread. 
     The proportion of high school students using alcohol, though 
     lower than a decade ago, remains unacceptably high. By the 
     8th grade, 70 percent of youth report having tried alcohol 
     and by the 12th grade, about 88 percent have used alcohol. 
     Alcohol use by young people can and does have adverse 
     consequences for users, their families, communities, schools, 
     and colleges.
       ``(6) Drug and violence prevention programs are essential 
     components of a comprehensive strategy to promote school 
     safety and to reduce the demand for and use of drugs 
     throughout the Nation. Schools and local organizations in 
     communities throughout the Nation have a special 
     responsibility to work together to combat the growing 
     epidemic of violence and illegal drug use and should measure 
     the success of their programs against clearly defined goals 
     and objectives.
       ``(7) Students must take greater responsibility for their 
     own well-being, health, and safety if schools and communities 
     are to achieve their goals of providing a safe, disciplined, 
     and drug-free learning environment.

     ``SEC. 4003. PURPOSE.

       ``The purpose of this title is to support programs to meet 
     Goal Six of the National Educational Goals by preventing 
     violence in and around schools and by strengthening programs 
     that prevent the illegal use of alcohol and drugs, involve 
     parents, and are coordinated with related Federal, State, and 
     community efforts and resources, through the provision of 
     Federal assistance to--
       ``(1) States for grants to local and intermediate 
     educational agencies and consortia to establish, operate, and 
     improve local programs of school drug and violence 
     prevention, early intervention, rehabilitation referral, and 
     education in elementary and secondary schools (including 
     intermediate and junior high schools);
       ``(2) States for grants to local and intermediate 
     educational agencies and consortia for grants to, and 
     contracts with, community-based organizations and other 
     public and private non-profit agencies and organizations for 
     programs of drug and violence prevention, early intervention, 
     rehabilitation referral, and education;
       ``(3) States for development, training, technical 
     assistance, and coordination activities;
       ``(4) public and private non-profit organizations to 
     conduct training, demonstrations, and evaluation, and to 
     provide supplementary services for the prevention of drug use 
     and violence among students and youth; and
       ``(5) institutions of higher education for the development 
     and implementation of model programs and strategies to 
     promote the safety of students attending institutions of 
     higher education by preventing violent behavior and the 
     illegal use of alcohol and drugs by such students.

     ``SEC. 4004. FUNDING.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated--
       ``(1) for State grants under part A, such sums as may be 
     necessary for each of fiscal years 1995 through 1999; and
       ``(2) for national programs under part B, such sums as may 
     be necessary for each of fiscal years 1995 through 1999.
       ``(b) Availability.--(1) Appropriations for any fiscal year 
     for payments made under this title in accordance with 
     regulations of the Secretary may be made available for 
     obligation or expenditure by the agency or institution 
     concerned on the basis of an academic or school year 
     differing from such fiscal year.
       ``(2) Funds appropriated for any fiscal year under this 
     title shall remain available for obligation and expenditure 
     until the end of the fiscal year succeeding the fiscal year 
     for which such funds were appropriated.

    ``PART A--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

     ``SEC. 4101. RESERVATIONS AND ALLOTMENTS.

       ``(a) Reservations.--From the amount appropriated for each 
     fiscal year under section 4004(a)(1), the Secretary--
       ``(1) shall reserve 1 percent of such amount for grants 
     under this part to Guam, American Samoa, the Virgin Islands, 
     the Commonwealth of the Northern Mariana Islands, and Palau 
     (until the effective date of the Compact of Free Association 
     with the Government of Palau), to be allotted in accordance 
     with their respective needs;
       ``(2) shall reserve one percent of such amount for the 
     Secretary of the Interior to carry out programs under this 
     part for Indian youth; and
       ``(3) may reserve no more than $1,000,000 for the national 
     impact evaluation required by section 4106(a).
       ``(b) State Allotments.--(1) Except as provided under 
     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 1124 and 
     1124A of this Act for the preceding year (or, for fiscal year 
     1995 only, sections 1005 and 1006 of this Act as in effect on 
     the day before enactment of the Safe and Drug-Free Schools 
     and Communities Act Amendments of 1994) and the sum of such 
     amounts received by all the States.
       ``(2) 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) 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 two years of such allotment. 
     Such reallotments shall be made on the same basis as 
     allotments made under paragraph (1).
       ``(4) For the purpose of this subsection, the term `State' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

     ``SEC. 4102. STATE APPLICATIONS.

       ``(a) In General.--In order to receive its allotment under 
     section 4101 for any fiscal year, a State shall submit to the 
     Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1)(A)(i) is integrated into the State's plan, either 
     approved or being developed, under title III of the Goals 
     2000: Educate America Act, and satisfies the requirements of 
     this section that are not already addressed by that plan; and
       ``(ii) is submitted, if necessary, as an amendment to the 
     State's plan under title III of the Goals 2000: Educate 
     America Act; or
       ``(B) if the State does not have an approved plan under 
     title III of the Goals 2000: Educate America Act and is not 
     developing such a plan, is integrated with other State plans 
     under this Act and satisfies the requirements of this 
     section;
       ``(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 prevalence of drug use and violence by 
     youth in schools and communities;
       ``(3) has been developed in consultation with 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 child welfare agency, and the 
     heads of the State criminal and juvenile justice planning 
     agencies;
       ``(4) contains a description of the procedures the State 
     educational agency will use to review applications from local 
     educational agencies under section 4104;
       ``(5) contains an assurance that the State will cooperate 
     with, and assist, the Secretary in conducting a national 
     impact evaluation of programs required by section 4106(a); 
     and
       ``(6) 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 4103(a) 
     by the State educational agency that includes--
       ``(1) a statement of the State educational agency's 
     measurable goals and objectives for drug and violence 
     prevention and a description of the procedures it will use 
     for assessing and publicly reporting progress toward meeting 
     those goals and objectives;
       ``(2) 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 4105;
       ``(3) a description of how the State educational agency 
     will use funds it reserves under section 4103(b);
       ``(4) a description of how the State educational agency 
     will coordinate its activities under this part with drug and 
     violence prevention efforts of other State agencies; and
       ``(5) an explanation of the criteria the State educational 
     agency will use to identify which local educational agencies 
     receive supplemental funds under section 4103(d)(2)(A)(i)(II) 
     and how the supplemental funds will be allocated among those 
     local educational agencies.
       ``(c) Governor's Funds.--A State's application under this 
     section shall also contain a comprehensive plan for the use 
     of funds under section 4103A by the chief executive officer 
     that includes--
       ``(1) a statement of the chief executive officer's 
     measurable goals and objectives for drug and violence 
     prevention and a description of the procedures to be used for 
     assessing and publicly reporting progress toward meeting 
     those goals and objectives;
       ``(2) a description of how the chief executive officer will 
     coordinate his or her activities under this part with the 
     State educational agency and other State agencies and 
     organizations involved with drug and violence prevention 
     efforts;
       ``(3) a description of how funds reserved under section 
     4103A 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;
       ``(4) a description of how the chief executive officer will 
     award funds under section 4103A and a plan for monitoring the 
     performance of, and providing technical assistance to, 
     recipients of such funds; and
       ``(5) a description of how funds will be used to support 
     community-wide comprehensive drug and violence prevention 
     planning.
       ``(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 1995 a one-year interim application and plan for the use 
     of funds under this part 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 its application and 
     comprehensive plan otherwise required by this section. A 
     State may not receive a grant under this part for a fiscal 
     year subsequent to fiscal year 1995 unless the Secretary has 
     approved its application and comprehensive plan.

     ``SEC. 4103. 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 4101 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) A State educational agency 
     shall use no more than five percent of the amount reserved 
     under subsection (a) for activities such as--
       ``(A) training and technical assistance concerning drug and 
     violence prevention for local and intermediate educational 
     agencies, including teachers, administrators, counselors, 
     coaches and athletic directors, other educational personnel, 
     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 curriculum materials (including videotapes, software, 
     and other technology-based learning resources), for 
     consideration by local educational agencies;
       ``(C) demonstration projects in drug and violence 
     prevention;
       ``(D) 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 part; and
       ``(E) the evaluation of activities carried out within the 
     State under this part.
       ``(2) A State educational agency may carry out activities 
     under this subsection directly, or through grants or 
     contracts.
       ``(c) State Administration.--A State educational agency may 
     use no more than four percent of the amount reserved under 
     subsection (a) for the administrative costs of carrying out 
     its responsibilities under this part.
       ``(d) Local Educational Agency Programs.--(1) A State 
     educational agency shall distribute not less than 92 percent 
     of the amount reserved under subsection (a) for each fiscal 
     year to local educational agencies in accordance with this 
     subsection.
       ``(2)(A)(i) Of the amount distributed under subsection 
     (d)(1), a State educational agency shall distribute--
       ``(I) 70 percent of such amount to local educational 
     agencies, based on the relative enrollments in public and 
     private non-profit schools within their boundaries; and
       ``(II) 30 percent of such amount to local educational 
     agencies that the State educational agency determines have 
     the greatest need for additional funds to carry out drug and 
     violence prevention programs authorized by this part.
       ``(ii) To the extent practicable, not less than 25 percent 
     of the amount specified in clause (i)(II) for a fiscal year 
     shall be distributed to local educational agencies located in 
     rural areas.
       ``(B)(i) A State educational agency shall distribute funds 
     under subparagraph (A)(i)(II) to no more than ten percent of 
     its local educational agencies, or five such agencies, 
     whichever is greater.
       ``(ii) In determining which local educational agencies have 
     the greatest need for additional funds, the State educational 
     agency shall consider such factors as--
       ``(I) high rates of alcohol or other drug use among youth;
       ``(II) high rates of victimization of youth by violence and 
     crime;
       ``(III) high rates of arrests and convictions of youth for 
     violent or drug- or alcohol-related crime;
       ``(IV) the extent of illegal gang activity;
       ``(V) high rates of referrals of youths to drug and alcohol 
     abuse treatment and rehabilitation programs;
       ``(VI) high rates of referrals of youths to juvenile court;
       ``(VII) high rates of expulsions and suspensions of 
     students from schools; and
       ``(VIII) high rates of reported cases of child abuse and 
     domestic violence.
       ``(e) Reallocation of Funds.--If a local educational agency 
     chooses not to apply to receive the amount allocated to it 
     under subsection (d), or if its application under section 
     4104 is disapproved by the State educational agency, the 
     State educational agency shall reallocate such amount to one 
     or more of the local education agencies determined by the 
     State educational agency under subsection (d)(2)(B) to have 
     the greatest need for additional funds.
       ``(f) Return of Funds to State Educational Agency; 
     Reallocation.--(1) Except as provided in paragraph (2), upon 
     the expiration of the 1-year period beginning on the date 
     that a local educational agency, intermediate educational 
     agency, or consortium under this title receives its 
     allocation under this title--
       (A) such agency or consortium 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, intermediate 
     educational agencies, or consortia that have plans for using 
     such amount for programs or activities on a timely basis.
       ``(2) In any fiscal year, a local educational agency, 
     intermediate educational agency, or consortium 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. 4103A. GOVERNOR'S PROGRAMS.

       (a) Use of Funds.--(1) An amount equal to 20 percent of the 
     total amount allocated to a State under section 4101 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) A chief executive officer may use no more than five 
     percent of the amount reserved under paragraph (1) for the 
     administrative costs incurred in carrying out the duties of 
     such officer under this section.
       ``(b) Programs Authorized.--(1) A chief executive officer 
     shall use funds reserved under subsection (a)(1) for grants 
     to or contracts with parent groups, community action and job 
     training agencies, community-based organizations, and other 
     public entities and private nonprofit organizations. Such 
     grants or contracts shall support programs and activities 
     described in subsection (c) for children and youth who are 
     not normally served by State or local educational agencies, 
     for populations that need special services or additional 
     resources (such as preschoolers, youth in juvenile detention 
     facilities, runaway or homeless children and youth, and 
     dropouts), or both.
       ``(2) Grants or contracts awarded under this subsection 
     shall be subject to a peer review process.
       ``(c) Authorized Activities.--Grants and contracts under 
     subsection (b) shall be used for programs and activities such 
     as--
       ``(1) disseminating information about drug and violence 
     prevention;
       ``(2) training parents, law enforcement officials, judicial 
     officials, social service providers, health service providers 
     and community leaders about drug and violence prevention, 
     education, early intervention, counseling, 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, law 
     enforcement, health, mental health, and other appropriate 
     services;
       ``(4) planning and implementing drug and violence 
     prevention activities that coordinate the efforts of State 
     agencies with those of the State educational agency and its 
     local educational agencies;
       ``(5) activities to protect students traveling to and from 
     school;
       ``(6) developing and implementing strategies to prevent 
     illegal gang activity;
       ``(7) coordinating and conducting community-wide violence 
     and safety assessments and surveys; and
       ``(8) evaluating programs and activities under this 
     section.

     ``SEC. 4104. LOCAL APPLICATIONS.

       ``(a) In General.--(1) In order to be eligible to receive 
     an allocation under section 4103(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)(A) 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, 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) In addition to assisting the local educational agency 
     to develop its application under this section, the advisory 
     council established or designated under paragraph (2)(A) 
     shall, on an on-going basis--
       ``(i) disseminate information about drug and violence 
     prevention programs, projects, and activities conducted 
     within the boundaries of the local educational agency;
       ``(ii) advise the local educational agency on how best to 
     coordinate its activities under this part with other related 
     programs, projects, and activities, including community 
     service and service learning projects, and the agencies that 
     administer them; and
       ``(iii) review program evaluations and other relevant 
     material and make recommendations to the local educational 
     agency on how to improve its drug and violence prevention 
     programs.
       ``(b) Contents of Applications.--An application under this 
     section shall contain--
       ``(1) an assessment 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) a detailed explanation of the local educational 
     agency's comprehensive plan for drug and violence prevention, 
     which shall include a description of--
       ``(A) how that plan is consistent with, and promotes the 
     goals in, the State's application under section 4102 and the 
     local educational agency's plan, either approved or being 
     developed, under title III of the Goals 2000: Educate America 
     Act, or, if the local educational agency does not have such 
     an approved plan and is not developing one, its plan under 
     section 1112 of this Act;
       ``(B) the local educational agency's measurable goals for 
     drug and violence prevention, and a description of how it 
     will assess and publicly report progress toward attaining 
     these goals;
       ``(C) the local educational agency's comprehensive plan for 
     programs to be carried out under this part;
       ``(D) how the local educational agency will use its regular 
     allocation under section 4103(d)(2)(A)(i)(I) and its 
     supplemental allocation, if any, under section 
     4103(d)(2)(A)(i)(II);
       ``(E) how the local educational agency will coordinate its 
     programs and projects with community-wide efforts to achieve 
     its goals for drug and violence prevention; and
       ``(F) how the local education agency will coordinate its 
     programs and projects with other Federal, State, and local 
     programs for drug-abuse prevention, including health 
     programs; and
       ``(3) such other information and assurances as the State 
     educational agency may reasonably require.
       ``(c) Review of Application.--(1) 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)(A) 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)(2) and the extent to which it is consistent with, and 
     supports, the State's application under section 4102 and the 
     State's plan under the Goals 2000: Educate America Act, and, 
     if the State does not have such a plan, its plan under 
     section 1111 of this Act.
       ``(B) 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 or the State's plan under 
     the Goals 2000: Educate America Act, and, if the State does 
     not have such a plan, its plan under section 1111 of this 
     Act, except that a local educational agency shall be afforded 
     an opportunity to appeal any such disapproval.

     ``SEC. 4105. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

       ``(a) Program Requirements.--A local educational agency 
     shall use funds received under this part to adopt and carry 
     out a comprehensive drug and violence prevention program 
     which shall--
       ``(1) be designed, for all students and 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 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 assessments, goals, and programs 
     under this part; and
       ``(3) include community-based prevention and education 
     activities in accordance with the requirements of subsection 
     (c).
       ``(b) Authorized Activities.--A comprehensive drug and 
     violence prevention program carried out under this part may 
     include--
       ``(1) age-appropriate, developmentally based drug 
     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, promote a sense of individual responsibility, 
     and provide information about effective techniques for 
     resisting peer pressure to use illegal drugs;
       ``(2) programs of drug prevention, early intervention, 
     counseling, mentoring, or rehabilitation referral, which 
     emphasize students' sense of individual responsibility and 
     which may include--
       ``(A) the dissemination of information about drug 
     prevention;
       ``(B) the professional development of school personnel, 
     parents, students, law enforcement officials, judicial 
     officials, health service providers and community leaders in 
     prevention, education, early intervention, counseling or 
     rehabilitation referral;
       ``(C) the implementation of strategies, including 
     strategies to integrate the delivery of services from a 
     variety of providers, to combat illegal alcohol and other 
     drug use, such as--
       ``(i) family counseling;
       ``(ii) early intervention activities that prevent family 
     dysfunction, enhance school performance, and boost attachment 
     to school and family; and
       ``(iii) 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 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;
       ``(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 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 and the use of mentoring 
     programs, to combat school violence and other forms of 
     disruptive behavior, such as sexual harassment; and
       ``(D) comprehensive, community-wide strategies to prevent 
     or reduce illegal gang activities;
       ``(5) subject to the requirements of the matter following 
     paragraph (8), not more than one half of the cost of--
       ``(A) minor remodeling to promote security and reduce the 
     risk of violence, such as removing lockers, installing better 
     lights, and upgrading locks; and
       ``(B) acquiring and installing metal detectors and hiring 
     security personnel;
       ``(6) the promotion of before-and-after school 
     recreational, instructional, cultural, and artistic programs 
     in supervised community settings; and
       ``(7) drug abuse resistance education programs, designed to 
     teach students to recognize and resist pressures to use 
     alcohol or other drugs, which may include activities such as 
     classroom instruction by uniformed law enforcement officers, 
     resistance techniques, resistance to peer pressure and gang 
     pressure, and provision for parental involvement;
       ``(8) the evaluation of any of the activities authorized 
     under this subsection.

     A local educational agency may use no more than 33 percent of 
     the funds it receives under this part for any fiscal year for 
     the activities described in paragraph (5).

     ``SEC. 4106. EVALUATION AND REPORTING.

       ``(a) National Impact Evaluation.--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 conduct an independent 
     biennial evaluation of the national impact of programs under 
     this part and submit a report of the findings of such 
     evaluation to the President and the Congress.
       ``(b) State Report.--(1) By October 1, 1997, and every 
     third year thereafter, the State educational agency shall 
     submit to the Secretary a report--
       ``(A) on the implementation and outcomes of State programs 
     under section 4103(b) and local programs under section 
     4103(d), as well as an assessment of their effectiveness; and
       ``(B) on the State's progress toward attaining its goals 
     for drug and violence prevention under section 4103(b)(1).
       ``(2) The report required by this subsection shall be--
       ``(A) in the form specified by the Secretary;
       ``(B) based on the State's on-going evaluation activities, 
     and shall include data on the prevalence of drug use and 
     violence by youth in schools and communities; and
       ``(C) made readily available to the public.
       ``(c) Local Educational Agency Report.--Each local 
     educational agency receiving funds under this subpart shall 
     submit to the State educational agency whatever information, 
     and at whatever intervals, the State requires to complete the 
     State report required by subsection (b), including 
     information on the prevalence of drug use and violence by 
     youth in the schools and the community. Such information 
     shall be made readily available to the public.

                      ``PART B--NATIONAL PROGRAMS

     ``SEC. 4201. FEDERAL ACTIVITIES.

       ``(a) Program Authorized.--From funds appropriated under 
     section 4004(a)(2), the Secretary of Education, 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, preschool through postsecondary. The Secretary shall 
     carry out such programs directly, or through grants, 
     contracts, or cooperative agreements with public and private 
     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 training 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 that are carried 
     out in cooperation with other Federal agencies, including the 
     Department of Health and Human Services, the Department of 
     Justice, the Department of Housing and Urban Development, and 
     the Department of Labor;
       ``(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 509 of the Public 
     Health Service Act;
       ``(4) the development, dissemination, and implementation of 
     model programs and strategies to promote the safety of 
     students attending institutions of higher education by 
     preventing violent behavior and the illegal use of alcohol 
     and other drugs by such students;
       ``(5) 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 school children;
       ``(6) program evaluations that address issues not addressed 
     under section 4106(a);
       ``(7) direct services to schools and school systems 
     afflicted with especially severe drug and violence problems;
       ``(8) activities in communities designated as empowerment 
     zones or enterprise communities that will connect schools to 
     community-wide efforts to reduce drug and violence problems;
       ``(9) developing and disseminating drug and violence 
     prevention materials, including video-based projects and 
     model curricula;
       ``(10) 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;
       ``(11) the implementation of innovative activities, such as 
     community service projects, designed to rebuild safe and 
     healthy neighborhoods and increase students' sense of 
     individual responsibility.
       ``(12) other activities that meet unmet national needs 
     related to the purposes of this title; and
       ``(13) 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.
       ``(b) Peer Review.--The Secretary shall use a peer review 
     process in reviewing applications for funds under this 
     section.

                      ``PART C--GENERAL PROVISIONS

     ``SEC. 4301. DEFINITIONS.

       ``For the purposes of this title, the following terms have 
     the following meanings:
       ``(1) 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, the use of tobacco and the use 
     of controlled, illegal, addictive, or harmful substances, 
     including inhalants and anabolic steroids; and
       ``(B) 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, 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.
       ``(2) 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.
       ``(3) The term `school-aged population' means the 
     population aged five through 17, inclusive, as determined by 
     the Secretary on the basis of the most recent satisfactory 
     data available from the Department of Commerce.
       ``(4) The term `school personnel' includes teachers, 
     administrators, guidance 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. 4302. MATERIALS.

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

     ``SEC. 4303. PROHIBITED USES OF FUNDS.

       ``No funds under this title may be used for--
       ``(1) construction (except for minor remodeling needed to 
     accomplish the purposes of this title);
       ``(2) drug treatment or rehabilitation; and
       ``(3) psychiatric, psychological, or other medical 
     treatment or rehabilitation, other than school-based 
     counseling for students or school personnel who are victims 
     or witnesses of school-related crime.

     ``SEC. 4304. CERTIFICATION OF DRUG AND ALCOHOL ABUSE 
                   PREVENTION PROGRAMS.

       ``(a) In General.--Notwithstanding any other provision of 
     law other than section 432 of the General Education 
     Provisions Act and section 103(b) of the Department of 
     Education Organization Act, no local educational agency shall 
     be eligible to receive funds or any other form of financial 
     assistance under any Federal program unless it certifies to 
     the State educational agency that it has adopted and has 
     implemented a program to prevent the use of illicit drugs and 
     alcohol by students or employees that, at a minimum, 
     includes--
       ``(1) age-appropriate, developmentally based drug and 
     alcohol education and prevention programs (which address the 
     legal, social, and health consequences of drug and alcohol 
     use and which provide information about effective techniques 
     for resisting peer pressure to use illicit drugs or alcohol) 
     for students in all grades of the schools operated or served 
     by the applicant, from early childhood level through grade 
     12;
       ``(2) conveying to students that the use of illicit drugs 
     and the unlawful possession and use of alcohol is wrong and 
     harmful;
       ``(3) standards of conduct that are applicable to students 
     and employees in all the applicant's schools and that clearly 
     prohibit, at a minimum, the unlawful possession, use, or 
     distribution of illicit drugs and alcohol by students and 
     employees on school premises or as part of any of its 
     activities;
       ``(4) a clear statement that sanctions (consistent with 
     local, State, and Federal law), up to and including expulsion 
     or termination of employment and referral for prosecution, 
     will be imposed on students and employees who violate the 
     standards of conduct required by paragraph (3) and a 
     description of those sanctions;
       ``(5) information about any available drug and alcohol 
     counseling and rehabilitation and re-entry programs that are 
     available to students and employees;
       ``(6) a requirement that parents, students, and employees 
     be given a copy of the standards of conduct required by 
     paragraph (3) and the statement of sanctions required by 
     paragraph (4);
       ``(7) notifying parents, students, and employees that 
     compliance with the standards of conduct required by 
     paragraph (3) is mandatory; and
       ``(8) a biennial review by the applicant of its program 
     to--
       ``(A) determine its effectiveness and implement changes to 
     the program if they are needed; and
       ``(B) ensure that the sanctions required by paragraph (4) 
     are consistently enforced.
       ``(b) Dissemination of Information.--Each local educational 
     agency that provides the certification required by subsection 
     (a) shall, upon request, make available to the Secretary, the 
     State educational agency, and to the public full information 
     about the elements of its program required by subsection (a), 
     including the results of its biennial review.
       ``(c) Certification to Secretary.--Each State educational 
     agency shall certify to the Secretary that it has adopted and 
     has implemented a program to prevent the use of illicit drugs 
     and the abuse of alcohol by its students and employees that 
     is consistent with the program required by subsection (a) of 
     this section. The State educational agency shall, upon 
     request, make available to the Secretary and to the public 
     full information about the elements of its program.
       ``(d) Regulations.--(1) The Secretary shall publish 
     regulations to implement and enforce the provisions of this 
     section, including regulations that provide for--
       ``(A) the periodic review by State educational agencies of 
     a representative sample of programs required by subsection 
     (a); and
       ``(B) a range of responses and sanctions for local 
     educational agencies that fail to implement their programs or 
     to consistently enforce their sanctions, including 
     information and technical assistance, the development of a 
     compliance agreement, and the termination of any form of 
     Federal financial assistance.
       ``(2) The sanctions required by subsection (a)(1)(4) may 
     include the completion of an appropriate rehabilitation 
     program.
       ``(e) Appeal Regarding Termination of Assistance.--Upon a 
     determination by the Secretary to terminate financial 
     assistance to any local educational agency under this 
     section, the agency may file an appeal with an administrative 
     law judge before the expiration of the 30-day period 
     beginning on the date such agency is notified of the decision 
     to terminate financial assistance under this section. Such 
     judge shall hold a hearing with respect to such termination 
     of assistance before the expiration of the 45-day period 
     beginning on the date that such appeal is filed. Such judge 
     may extend such 45-day period upon a motion by the agency 
     concerned. The decision of the judge with respect to such 
     termination shall be considered to be a final agency action.
                  ``TITLE V--MAGNET SCHOOLS ASSISTANCE

                       ``PART A--PROMOTING EQUITY

     ``SEC. 5101. FINDINGS.

       ``The Congress finds that--
       ``(1) magnet schools are a significant part of our Nation's 
     effort to achieve voluntary desegregation in its schools;
       ``(2) the use of magnet schools has increased dramatically 
     since enactment of the magnet program, with approximately 1.4 
     million students nationwide now attending such schools, of 
     which more than 60 percent of the students are nonwhite;
       ``(3) magnet schools offer a wide range of distinctive 
     programs that have served as models for school improvement 
     efforts;
       ``(4) in administering this program, the Federal Government 
     has learned that--
       ``(A) where magnet programs are implemented for only a 
     portion of a school's student body, special efforts must be 
     made to discourage the isolation of magnet students from 
     other students in the school;
       ``(B) local educational agencies can maximize their 
     effectiveness in achieving the purposes of this program if 
     they have more flexibility to serve students attending a 
     school who are not enrolled in the magnet school program;
       ``(C) local educational agencies must be creative in 
     designing magnet schools for students at all academic levels, 
     so that school districts do not skim off only the highest 
     achieving students to attend the magnet schools;
       ``(D) local educational agencies must seek to enable 
     participation in magnet school programs by students who 
     reside in the neighborhoods where the programs are placed; 
     and
       ``(E) in order to ensure that magnet schools are sustained 
     after Federal funding ends, the Federal Government must 
     assist local educational agencies to improve their capacity 
     to continue to operate magnet schools at a high level of 
     performance;
       ``(5) it is in the best interest of the Federal Government 
     to--
       ``(A) continue its support of local educational agencies 
     implementing court-ordered desegregation plans and local 
     educational agencies seeking to foster meaningful interaction 
     among students of different racial and ethnic backgrounds 
     beginning at the earliest stage of their education;
       ``(B) ensure that all students have equitable access to 
     quality education that will prepare them to function well in 
     a culturally diverse, technologically-oriented, and highly 
     competitive global community; and
       ``(C) maximize the ability of local educational agencies to 
     plan, develop, implement and continue new and innovative 
     programs in magnet schools that contribute to State and local 
     systemic reform.

     ``SEC. 5102. STATEMENT OF PURPOSE.

       ``The purpose of this part is to assist in the 
     desegregation of 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 and secondary schools with 
     substantial proportions of minority students;
       ``(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 performance standards;
       ``(3) the development and design of innovative educational 
     methods and practices; and
       ``(4) courses of instruction within magnet schools that 
     will substantially strengthen the knowledge of academic 
     subjects and the grasp of tangible and marketable vocational 
     skills of students attending such schools.

     ``SEC. 5103. PROGRAM AUTHORIZED.

       ``The Secretary is authorized, in accordance with this 
     part, to make grants to eligible local educational agencies 
     for use in magnet schools that are part of an approved 
     desegregation plan and that are designed to bring students 
     from different social, economic, ethnic, and racial 
     backgrounds together.

     ``SEC. 5104. DEFINITION.

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

     ``SEC. 5105. ELIGIBILITY.

       ``A local educational agency is eligible to receive 
     assistance under this part if it--
       ``(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, and that requires the desegregation of 
     minority-group-segregated children or faculty in the 
     elementary 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 it under this part, 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. 5106. APPLICATIONS AND REQUIREMENTS.

       ``(a) Applications.--An eligible local educational agency 
     desiring to receive assistance under this part shall submit 
     an application to the Secretary at such time, in such manner, 
     and containing such information and assurances as the 
     Secretary may require.
       ``(b) Information and Assurances.--An application under 
     this part shall include--
       ``(1) a description of--
       ``(A) how assistance made available under this part 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) the manner in which an applicant will continue the 
     magnet school project after assistance under this part is no 
     longer available, including, if applicable, an explanation of 
     whether successful magnet schools established or supported by 
     the applicant with funds under this part have been continued 
     without the use of funds under this part;
       ``(D) how funds under this part will be used to implement 
     services and activities that are consistent with the State's 
     and local educational agency's systemic reform plan, if any, 
     under title III of the Goals 2000: Educate America Act; and
       ``(E) the criteria to be used in selecting students to 
     attend the proposed magnet school projects; and
       ``(2) assurances that the applicant will--
       ``(A) use funds under this part for the purposes specified 
     in section 5103;
       ``(B) employ teachers in the courses of instruction 
     assisted under this part who are certified or licensed by the 
     State to teach 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 projects equitable 
     consideration for places in those projects.
       ``(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. 5107. PRIORITY.

       ``In approving applications under this part, the Secretary 
     shall give priority to applicants that--
       ``(1) have the greatest need for assistance, based on the 
     expense or difficulty of effectively carrying out an approved 
     desegragation 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's and local 
     educational agency's approved systemic reform plans, if any, 
     under title III of the Goals 2000: Educate America Act; and
       ``(5) propose to draw on comprehensive community 
     involvement plans.

     ``SEC. 5108. USE OF FUNDS.

       ``(a) Use of Funds.--Grants made under this part may be 
     used by eligible local educational 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 of, or subsidization of the 
     compensation of, elementary and secondary school teachers who 
     are certified or licensed by the State and who are necessary 
     to conduct programs in magnet schools; and
       ``(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 part.
       ``(b) Special Rule.--With respect to subsections (a)(2) and 
     (3), such grants may be used by eligible local educational 
     agencies for such activities only if such activities are 
     directly related to improving the students' reading skills or 
     their knowledge of mathematics, science, history, geography, 
     English, foreign languages, art, or music, or to improving 
     vocational skills.

     ``SEC. 5109. PROHIBITIONS.

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

     ``SEC. 5110. LIMITATION ON PAYMENTS.

       ``(a) Duration of Awards.--Awards made under this part 
     shall not exceed 3 years.
       ``(b) Limitation on Planning Funds.--A local educational 
     agency may expend for planning up to 50 percent of the funds 
     received under this part for the first year of the project, 
     15 percent for the second year of the project, and up to 10 
     percent for the third year of the project.
       ``(c) Limitation on Grants.--A local educational agency 
     shall not receive more than $4,000,000 under this part in any 
     one grant cycle.
       ``(d) Award Requirement.--To the extent practicable, for 
     any fiscal year, the Secretary shall award grants to local 
     educational agencies under this part no later than June 1 of 
     the applicable fiscal year.

     ``SEC. 5111. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

       ``(a) Authorization.--For the purpose of carrying out this 
     part, there are authorized to be appropriated $120,000,000 
     for fiscal year 1995 and such sums as may be necessary for 
     each of the fiscal years 1996, 1997, 1998, and 1999.
       ``(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, with respect to such excess amount, give 
     priority to grants to local educational agencies that did not 
     receive a grant under this part in the last fiscal year of 
     the funding cycle prior to the fiscal year for which the 
     determination is made.
       ``(c) Evaluations.--The Secretary may reserve not more than 
     2 percent of the funds appropriated under subsection (a) for 
     any fiscal year to carry out evaluations of projects under 
     this part.

                ``PART B--WOMEN'S EDUCATIONAL EQUITY ACT

     ``SEC. 5201. FINDINGS AND STATEMENT OF PURPOSE.

       ``(a) Findings.--The Congress finds and declares that--
       ``(1) educational programs in the United States are 
     frequently inequitable as such programs relate to women and 
     girls;
       ``(2) such inequities limit the full participation of all 
     individuals in American society; and
       ``(3) efforts to improve the quality of public education 
     also must include efforts to ensure equal access to quality 
     education programs for all women and girls.
       ``(b) Purpose.--The purpose of this part is to provide 
     gender equity in education in the United States; to provide 
     financial assistance to enable educational agencies and 
     institutions to meet the requirements of title IX of the 
     Educational Amendments of 1972; and to provide equity in 
     education to women and girls who suffer multiple forms of 
     discrimination based on sex, race, ethnic origin, limited 
     English proficiency, disability, or age.

     ``SEC. 5202. PROGRAMS AUTHORIZED.

       ``The Special Assistant of the Office of Women's Equity is 
     authorized--
       ``(1) to promote, coordinate and evaluate gender equity 
     policies, programs, activities and initiatives in all federal 
     education program and offices;
       ``(2) to develop, maintain, and disseminate materials, 
     resources, analyses and research relating to education equity 
     for women and girls;
       ``(3) to provide information and technical assistance to 
     assure the effective implementation of gender equity 
     programs;
       ``(4) coordinate gender equity programs and activities with 
     other federal agencies with jurisdiction over education and 
     related programs;
       ``(5) to provide grants to develop model equity programs;
       ``(6) to provide funds for the implementation of equity 
     programs in schools throughout the Nation;
       ``(7) to assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities related to education equity for women and girls; 
     and
       ``(8) any other activities consistent with achieving the 
     purposes of this part.

     ``SEC. 5203. LOCAL IMPLEMENTATION GRANTS.

       ``(a) Authority.--The Secretary is authorized to make 
     grants to, and enter into contracts with, public agencies, 
     private nonprofit agencies, organizations, and institutions, 
     including students and community groups, for activities 
     designed to achieve the purposes of this part at all levels 
     of education, including preschool, elementary and secondary 
     education, higher education, adult education and vocational/
     technical education; for the establishment and operation, for 
     a period not to exceed four years, of local programs to 
     ensure--
       ``(1) educational equity for women and girls
       ``(2) equal opportunities for both sexes
       ``(3) to conduct activities incident to achieving 
     compliance with title IX of the Education Amendments of 1972; 
     and
       ``(b) Grant Program.--Authorized activities under 
     subsection (a) may include--
       ``(1) introduction into the curriculum and classroom of 
     curricula, textbooks, and other material designed to achieve 
     equity for women and girls;
       ``(2) implementation of preservice and inservice training 
     with special emphasis on programs and activities designed to 
     provide educational equity for women and girls;
       ``(3) evaluation of promising or exemplary model programs 
     to assess their ability to improve local efforts to advance 
     educational equity for women and girls;
       (4) implementation of programs and policies to address 
     sexual harassment and violence against women and girls and to 
     ensure that educational institutions are free from threats to 
     the safety of students and personnel;
       ``(5) implementation of guidance and counseling activities, 
     including career education program, designed to ensure 
     educational equity for women and girls;
       ``(6) implementation of nondiscriminatory tests of aptitude 
     and achievement and of alternative assessments that eliminate 
     biased assessment instruments from use;
       ``(7) implementation of programs to increase educational 
     opportunities, including higher education, vocational 
     training, and other educational programs for low income 
     women; including underemployed and unemployed women and women 
     receiving Aid to Families with Dependent Children benefits;
       ``(8) implementation of programs to improve representation 
     of women in educational administration at all levels; and
       ``(9) planning, development and initial implementation of:
       ``(A) comprehensive plans for implementation of equity 
     programs in state and local educational agencies and 
     institutions of higher education; including community 
     colleges;
       ``(B) innovative approaches to school-community 
     partnerships for educational equity;
       ``(C) innovative approaches to equity programs addressing 
     combined bias, stereotyping, and discrimination on the basis 
     of sex and race, ethnic origin, limited English proficiency, 
     and disability.
       ``(c) Application; Participation.--A grant may be made, and 
     a contract may be entered into, under this part only upon 
     application to the Secretary, at such time, in such form, and 
     containing or accompanied by such information as the 
     Secretary may prescribe. Each such application shall--
       ``(1) provide that the program or activity for which 
     assistance is sought will be administered by or under the 
     supervision of the applicant and in cooperation with 
     appropriate educational and community leaders, including 
     parent, teacher and student organizations, educational 
     institutions, business leaders, community-based organizations 
     serving women, and other significant groups and individuals;
       ``(2) describe a program for carrying out the purpose set 
     forth in Section 5203(b) which holds promise of making 
     substantial contribution toward attaining such purposes;
       ``(3) describe plans for continuation and 
     institutionalization of the program with local support 
     following completion of the grant period and termination of 
     Federal support under this part; and
       ``(4) establish policies and procedures which ensure 
     adequate documentation and evaluation of the activities 
     intended to be carried out under the application.
       ``(d) Criteria; Priorities; Categories of Competition.--The 
     Secretary shall establish criteria, priorities, and 
     categories of competition for awards under this part to 
     ensure that available funds are used for those purposes that 
     most effectively will achieve the purposes of the act.
       ``(1) The Criteria shall address the extent to which--
       ``(A) the program addresses the needs of women and girls of 
     color and women and girls with disabilities:
       ``(B) the program meets locally defined and documented 
     educational equity needs and priorities, including title IX 
     compliance;
       ``(C) the program is a significant component of a 
     comprehensive plan for educational equity and title IX 
     compliance in the particular school district, institution of 
     higher education, vocational-technical institution, or other 
     educational agency or institution;
       ``(D) the program implements an institutional change 
     strategy with long-term impact and will continue as a central 
     activity of the applicant agency or institution after the 
     grant is completed.
       ``(2) The Secretary shall establish no more than four 
     priorities, one of which shall be a priority for compliance 
     with title IX of the Education Amendments of 1972. Not more 
     than 60 percent of funds available in each fiscal year shall 
     be allocated to programs under the four priorities.
       ``(3) The Secretary shall establish 3 categories of 
     competition, distinguishing among three types of applicants 
     and levels of education that shall include--
       ``(A) grants to local educational agencies, state education 
     agencies, and other agencies and organizations providing 
     elementary and secondary education;
       ``(B) grants to institutions of higher education, including 
     community colleges and other agencies and organizations 
     providing postsecondary education, including vocational-
     technical education, adult education, and other programs;
       ``(C) grants to non-profit organizations, including 
     community-based organizations groups representing students, 
     parents, and women, including women and girls of color and 
     women and girls with disabilities.
       ``(e) Requirement.--Not less than 25 percent of funds used 
     to support activities covered by subsection (b) shall be used 
     for awards under each category of competition in each fiscal 
     year.
       ``(f) Special Rule.--The Secretary shall ensure that the 
     total of grants awarded each year address--
       ``(1) all levels of education, including preschool, 
     elementary and secondary education, higher education, 
     vocational education, and adult education;
       ``(2) all regions of the United States, including at least 
     one grant in each of the ten federal regions;
       ``(3) urban, rural, and suburban educational institutions.

     ``SEC. 5204. RESEARCH AND DEVELOPMENT GRANTS.

       ``(a) Authority.--The Secretary is authorized to make 
     grants to, and enter into contracts with, public agencies, 
     private nonprofit agencies, organizations, and institutions, 
     including students, and community groups, for activities 
     designed to achieve the purpose of this part at all levels of 
     education, including preschool, elementary and secondary 
     education, higher education, adult education and vocational-
     technical education; to develop model policies and programs, 
     and to conduct research to address and ensure educational 
     equities for women and girls, including but not limited to--
       ``(1) the development and evaluation of gender-equitable 
     curricula, textbooks, software, and other educational 
     material and technology;
       ``(2) the development of model preservice and inservice 
     training programs for educational personnel with special 
     emphasis on programs and activities designed to provide 
     educational equity;
       ``(3) the development of guidance and counseling 
     activities, including career education programs, designed to 
     ensure gender equity;
       ``(4) the development and evaluation of nondiscriminatory 
     assessment systems;
       ``(5) the development of policies and programs to address 
     and prevent sexual harassment and violence to ensure that 
     educational institutions are free from threats to safety of 
     students and personnel;
       ``(6) the development and improvement of programs and 
     activities to increase opportunity for women, including 
     continuing educational activities, vocational education, and 
     programs for low income women; including underemployed and 
     unemployed women, and women receiving Aid to Families with 
     Dependent Children.
       ``(7) the development of instruments and strategies for 
     program evaluation and dissemination of promising or 
     exemplary programs designed to improve local efforts to 
     achieve gender equity;
       ``(8) the development of instruments and procedures to 
     assess the presence or absence of gender equity in 
     educational settings;
       ``(9) the development and evaluation of various strategies 
     to institutionalize gender equity in education.
       ``(b) Application.--A grant may be made, and a contract may 
     be entered into, under this part only upon application to the 
     Secretary, at such time, in such form, and containing or 
     accompanied by such information as the Secretary may 
     prescribe. Each such application shall--
       ``(1) provide that the program or activity for which 
     assistance is sought will be administered by or under the 
     supervision of the applicant;
       ``(2) describe a plan for carrying out 1 or more research 
     and development activities authorized in paragraph (a) above, 
     which holds promise of making a substantial contribution 
     toward attaining the purposes of this act; and
       ``(3) set forth policies and procedures which insure 
     adequate documentation, data collection, and evaluation of 
     the activities intended to be carried out under the 
     application, including an evaluation or estimate of the 
     potential for continued significance following completion of 
     the grant period.
       ``(c) Criteria and Priorities.--(1) The Secretary shall 
     establish criteria and priorities to ensure that available 
     funds are used for programs that most effectively will 
     achieve the purposes of this part.
       ``(2) The criteria and priorities shall be promulgated in 
     accordance with section 431 of the General Education 
     Provisions Act.
       ``(3) In establishing priorities the Secretary shall 
     establish no more than 4 priorities, 1 of which shall be 
     programs which address the educational needs of women and 
     girls who suffer multiple or compound discrimination based on 
     sex and on race, ethnic origin, disability, or age.
       ``(d) Special Rule.--The Secretary shall ensure that the 
     total of grants awarded each year address--
       ``(1) all levels of education, including preschool, 
     elementary and secondary education, higher education, 
     vocational education, and adult education;
       ``(2) all regions of the United States;
       ``(d) Coordination.--Research activities supported under 
     this part--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out by the Office of Women's 
     Equity and the Office of Educational Research and 
     Improvement.
       ``(f) Limitation.--Nothing in this part shall be construed 
     as prohibiting men and boys from participating in any 
     programs or activities assisted under this part.

     ``SEC. 5205. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated--
       ``(1) for the purpose of carrying out the provisions of 
     section 5203, there are authorized to be appropriated 
     $3,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999; and
       ``(2) for the purpose of carrying out the provisions of 
     section 5204, there are authorized to be appropriated 
     $2,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999.
                      ``TITLE VI--INDIAN EDUCATION

     ``SEC. 6001. FINDINGS.

       ``The 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 and student performance standards and 
     build on Indian culture and the Indian community;
       ``(B) assist local educational agencies, Indian tribes, and 
     others in providing Indian students the opportunity to 
     achieve those standards; and
       ``(C) meet the special educational and culturally related 
     academic needs of American Indian and Alaska Native students;
       ``(2) since enactment of the original Indian Education Act 
     in 1972, Indian parents have become significantly more 
     involved in the planning, development, and implementation of 
     educational programs that affect them and their children, and 
     schools should continue to foster such involvement;
       ``(3) although the numbers of Indian teachers, 
     administrators, and university professors have increased 
     since 1972, teacher training programs are not recruiting, 
     training, or retraining sufficient numbers of Indian persons 
     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; for example, nine percent of Indian students who were 
     eighth graders in 1988 had already dropped out of school by 
     1990;
       ``(5) from 1980 to 1990, the percentage of Indian persons 
     living in poverty 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 families; and
       ``(6) research related specifically to the education of 
     Indian children and adults is very limited, and much of it is 
     poor in quality or focused on limited local or regional 
     issues.

     ``SEC. 6002. PURPOSE.

       ``(a) Purpose.--It is the purpose of this title to support 
     the efforts of local educational agencies, Indian tribes and 
     organizations, postsecondary institutions, and other entities 
     to meet the special educational and culturally related 
     academic needs of American Indians and Alaska Natives, so 
     that they can achieve to the same challenging State 
     performance standards expected of all students.
       ``(b) Programs Authorized.--This title carries out the 
     purpose described in subsection (a) by authorizing programs 
     of direct assistance for--
       ``(1) meeting the special 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.

         ``PART A--FORMULA GRANTS TO LOCAL EDUCATIONAL AGENCIES

     ``SEC. 6101. PURPOSE.

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

     ``SEC. 6102. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``A local educational agency is eligible for a grant under 
     this part for any fiscal year if the number of Indian 
     children who were enrolled in the schools of the agency, and 
     to whom the agency provided free public education, during the 
     preceding fiscal year--
       ``(1) was at least 20; or
       ``(2) constituted not less than 25 percent of the agency's 
     total enrollment.

     ``SEC. 6103. AMOUNT OF GRANTS.

       ``(a) Amount of Grants.--(1) The Secretary is authorized to 
     allocate to each local educational agency which has an 
     approved application under this part an amount equal to the 
     product of--
       ``(A) the number of Indian children described in section 
     6106; and
       ``(B) the greater of--
       ``(i) the average per-pupil expenditure of the State in 
     which the agency is located; or
       ``(ii) 80 percent of the average per-pupil expenditure in 
     the United States.
       ``(2) The Secretary shall reduce the amount of each 
     allocation determined under paragraph (1) in accordance with 
     subsection (e) of this section.
       ``(b) Minimum Grant Amount.--The Secretary shall not make a 
     grant to a local educational agency if the amount determined 
     under subsection (a) is less than $4,000, except that the 
     Secretary may make a grant to a consortium of local 
     educational agencies, one or more of which does not qualify 
     for such a minimum award, if--
       ``(1) the total amount so determined for such agencies is 
     not less than $4,000;
       ``(2) such agencies, in the aggregate, meet the eligibility 
     requirement of either section 6102(1) or 6102(2); and
       ``(3) the Secretary determines that such a grant would be 
     effectively used to carry out the purpose of this part.
       ``(c) Definition.--For the purpose of this section, the 
     average per-pupil expenditure of a State is determined by 
     dividing--
       ``(1) 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; by
       ``(2) the aggregate number of children who were in average 
     daily attendance for whom such agencies provided free public 
     education during such preceding fiscal year.
       ``(d) Schools Operated or Supported by the Bureau of Indian 
     Affairs.--(1) In addition to the grants determined under 
     subsection (a), 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 that tribe under a contract with, or grant from, the 
     Department of the Interior under the Indian Self-
     Determination Act (25 U.S.C. 450f et seq.) or the Tribally 
     Controlled Schools Act of 1988 (25 U.S.C. 2501 et seq.); 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 in 
     the United States.
       ``(2) The Secretary shall transfer the amount determined 
     under paragraph (1), reduced as may be necessary under 
     subsection (e), to the Secretary of the Interior in 
     accordance with, and subject to, section 9205 of this Act.
       ``(e) Ratable Reductions.--If the sums appropriated for any 
     fiscal year under section 6602(a) are insufficient to pay in 
     full the amounts determined for local educational agencies 
     under subsection (a)(1) and for the Secretary of the Interior 
     under subsection (d), each of those amounts shall be ratably 
     reduced.

     ``SEC. 6104. APPLICATIONS.

       ``(a) General.--Any local educational agency that desires 
     to receive a grant under this part 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 such 
     application shall include a comprehensive program for meeting 
     the needs of Indian children in the local educational agency, 
     including their language and cultural needs, that--
       ``(1) provides programs and activities to meet the 
     culturally related academic needs of American Indian and 
     Alaska Native students,
       ``(2)(A) is consistent with, and promotes the goals in, the 
     State and local plans, either approved or being developed, 
     under title III of the Goals 2000: Educate America Act or, if 
     such plans are not approved or being developed, with the 
     State and local plans under sections 1111 and 1112 of this 
     Act; and
       ``(B) includes academic content and student performance 
     goals for such children, and benchmarks for attaining them, 
     that are based on the challenging State standards adopted 
     under title III of the Goals 2000: Educate America Act or 
     under title I of this Act for all children;
       ``(3) explains how Federal, State, and local programs, 
     especially under title I of this Act, will meet the needs of 
     such students;
       ``(4) demonstrates how funds under this part will be used 
     for activities authorized by section 6105;
       ``(5) describes the professional development to 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 the project have 
     been properly trained to carry it out; and
       ``(6) describes how the agency--
       ``(A) will periodically assess the progress of all Indian 
     children in its schools, including Indian children who do not 
     participate in programs under this part, in meeting the goals 
     described in paragraph (2);
       ``(B) will provide the results of that assessment to the 
     parent committee described in subsection (c)(6) and to the 
     community served by the agency; and
       ``(C) is responding to findings of any previous such 
     assessments.
       ``(c) Assurances.--Each such application shall also include 
     assurances that--
       ``(1) the local educational agency will use funds received 
     under this part only to supplement the level of funds that, 
     in the absence of such Federal funds, the agency would make 
     available for the education of Indian children, and not to 
     supplant such funds;
       ``(2) the local educational agency will submit such reports 
     to the Secretary, in such form and containing such 
     information, as the Secretary may require to--
       ``(A) carry out the Secretary's functions under this part; 
     and
       ``(B) determine the extent to which funds provided under 
     this part have been effective in improving the educational 
     achievement of Indian students in the local educational 
     agency;
       ``(3) the program for which assistance is sought has been 
     based upon a local assessment and prioritization of the 
     special educational and culturally related academic needs of 
     the American Indian and Alaska Native students for which the 
     local educational agency is providing an education;
       ``(4) the program for which assistance is sought will use 
     the best available talents and resources, including persons 
     from the Indian community;
       ``(5) the local educational agency has developed the 
     program in open consultation with parents of Indian children, 
     teachers, and, where appropriate, secondary school Indian 
     students, including holding public hearings at which such 
     persons have had a full opportunity to understand the program 
     and to offer recommendations regarding such program;
       ``(6) the local educational agency has developed the 
     program with the participation and written approval of a 
     committee--
       ``(A) that is composed of, and selected by, parents of 
     Indian children in the local educational agency's schools, 
     teachers, and, where appropriate, secondary school Indian 
     students and of which at least half the members are such 
     parent;
       ``(B) that sets 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; 
     and
       ``(C) that, in the case of an application which includes a 
     schoolwide project (as specified in section 6105(c) of this 
     part) finds that such project will not diminish the 
     availability of culturally related activities for American 
     Indians and Alaskan Native students; and
       ``(D) that adopts and abides by reasonable bylaws for the 
     conduct of the activities of the committee.
       ``(d) State Educational Agency Review.--(1) Before 
     submitting its application to the Secretary, the local 
     educational agency shall obtain comments on the application 
     from the State educational agency.
       ``(2) The local educational agency shall send the State 
     educational agency's comments to the Secretary with its 
     application.

     ``SEC. 6105. AUTHORIZED SERVICES AND ACTIVITIES.

       ``(a) General Requirements.--Each local educational agency 
     that receives a grant under this part shall use the grant 
     funds for services and activities, consistent with the 
     purpose of this part, that--
       ``(1) are designed to carry out its comprehensive plan for 
     Indian students, described in its application under section 
     6104(b);
       ``(2) are designed with special regard for the language and 
     cultural needs of those students; and
       ``(3) supplement and enrich the regular school program.
       ``(b) Particular Activities.--Such services and activities 
     include--
       ``(1) culturally related activities which support the 
     program set out in the application, as required in section 
     6104;
       ``(2) early childhood and family programs that emphasize 
     school readiness;
       ``(3) enrichment programs that focus on problem-solving and 
     cognitive skills development and that directly support the 
     attainment of challenging State content and student 
     performance standards;
       ``(4) integrated educational services in combination with 
     other programs meeting similar needs;
       ``(5) school-to-work transition activities to enable Indian 
     students to participate in programs such as those supported 
     by the School-to-Work Opportunities Act of 1993 and the Carl 
     D. Perkins Vocational and Applied Technology Education Act, 
     including tech-prep, mentoring, and apprenticeship programs;
       ``(6) prevention of, and education about, substance abuse; 
     and
       ``(7) acquisition of equipment, but only if such 
     acquisition is essential to meet the purpose of this part.
       ``(c) Schoolwide Programs.--Notwithstanding any other 
     provision of this part, a local educational agency may use 
     funds it receives under this part to support a schoolwide 
     program under section 1114 of title I of this Act, in 
     accordance with such section, if the Secretary determines 
     that the local educational agency has made adequate provision 
     for the participation of Indian children in such project and 
     the involvement of Indian parents in the formulation of such 
     project.

     ``SEC. 6106. STUDENT ELIGIBILITY FORMS.

       ``(a) The Secretary shall require that each application for 
     a grant under this subpart for each fiscal year be supported 
     by a form, maintained in the files of the applicant, for each 
     eligible Indian child for whom the local educational agency 
     is providing free public education that sets forth 
     information establishing the status of the child as an 
     eligible Indian child.
       ``(b) The Secretary shall request on the form required 
     under subsection (a) at least the following information:
       ``(1) either--
       ``(A) the name of the tribe, band, or other organized group 
     of Indians with which the child claims membership, along with 
     the enrollment number establishing membership (if readily 
     available), and the name and address of the organization 
     which has updated and accurate membership data for such 
     tribe, band, or other organized group of Indians, or
       ``(B) if the child is not a member of a tribe, band, or 
     other organized group of Indians, the name, the enrollment 
     number (if readily available), and the organization (and 
     address thereof) responsible for maintaining updated and 
     accurate membership rolls of any of the child's parents or 
     grandparents, from whom the child claims eligibility;
       ``(2) whether the tribe, band, or other organized group of 
     Indians with which the child, his parents, or grandparents 
     claim membership is federally recognized;
       ``(3) the name and address of the parent or legal guardian;
       ``(4) the signature of the parent or legal guardian 
     verifying the accuracy of the information supplied; and
       ``(5) any other information which the Secretary deems 
     necessary to provide an accurate program profile.
       ``(c) Nothing in the requirements of subsection (b) may be 
     construed as affecting the definition set forth in section 
     6601. In order for a child to be counted in computing the 
     local educational agency's grant award, the eligibility form 
     for the child must contain at a minimum--
       ``(1) the child's name;
       ``(2) the name of the tribe, band, or other organized group 
     of Indians; and
       ``(3) the parent's dated signature.

     The failure of an applicant to furnish any other information 
     listed in subsection (b) with respect to any child shall have 
     no bearing on the determination of whether the child is an 
     eligible Indian child.
       ``(d) The forms and the standards of proof (including the 
     standard of good faith compliance) that were in use during 
     the 1985-1986 academic year to establish a child's 
     eligibility for entitlement under the Indian Elementary and 
     Secondary School Assistance Act shall be the only forms and 
     standards of proof used to establish such eligibility and to 
     meet the requirements of subsection (a).
       ``(e) For purposes of determining whether a child is an 
     eligible Indian child, the membership of the child, or any 
     parent or grandparent of the child, in a tribe, band, or 
     other organized group of Indians may be established by proof 
     other than an enrollment number, even if enrollment numbers 
     for members of such tribe, band, or groups are available. 
     Nothing in subsection (b) may be construed as requiring the 
     furnishing of enrollment numbers.
       ``(f)(1)(A) The Secretary shall establish a method of 
     auditing, on an annual basis, a sample of not less than one-
     fourth of the total number of local educational agencies 
     receiving funds under this part and shall submit to the 
     Congress an annual report on the findings of the audits.
       ``(B) For purposes of an audit conducted by the Federal 
     Government with respect to funds provided under this part, 
     all procedures, practices, and policies that are established 
     by--
       ``(i) the Office of Indian Education of the Department of 
     Education, or
       ``(ii) a grantee under this subpart who, in establishing 
     such procedures, practices, and policies, was acting under 
     the direction of any employee of such Office that is 
     authorized by the Director of such Office to provide such 
     direction,

     shall, with respect to the period beginning on the date of 
     the establishment of such procedures, practices, and 
     policies, and ending on the date (if any) on which the 
     Director of such Office revokes authorization for such 
     procedures, practices, and policies, be considered 
     appropriate and acceptable procedures, practices, and 
     policies which are in conformity with Federal law.
       ``(C) A local educational agency may not be held liable to 
     the United States, or be otherwise penalized, by reason of 
     the findings of an audit that relate to the date of 
     completion, or the date of submission, of any forms used to 
     establish, before April 28, 1988, a child's eligibility for 
     entitlement under the Indian Elementary and Secondary School 
     Assistance Act.
       ``(2) Any local educational agency that provides false 
     information in the application for a grant under this subpart 
     shall be ineligible to apply for any other grants under this 
     part and shall be liable to the United States for any funds 
     provided under this part that have not been expended.
       ``(3) Any student who provides false information on the 
     form required under subsection (d)(1) may not be taken into 
     account in determining the amount of any grant under this 
     part.
       ``(g) For purposes of distribution of funds under this Act 
     to schools funded by the Bureau of Indian Affairs, the 
     Secretary shall use the count of the number of students in 
     each such school funded under the Indian Student Equalization 
     Formula developed pursuant to section 1128 of Public Law 95-
     561, in lieu of the requirements of this section.

     ``SEC. 6107. PAYMENTS.

       ``(a) General.--The Secretary shall pay each local 
     educational agency with an application approved under this 
     part the amount determined under section 6103, subject to 
     subsections (b) and (c) of this section and shall notify such 
     local educational agency of the amount no later than June 1 
     of the year in which the grant will be paid.
       ``(b) Payments Taken Into Account by the State.--The 
     Secretary shall not make a grant under this part for any 
     fiscal year to any local educational agency in a State that 
     has taken into consideration payments under this part (or 
     under subpart 1 of the Indian Education Act of 1988) in 
     determining the eligibility of the local educational agency 
     for State aid, or the amount of that aid, with respect to the 
     free public education of children during that year or the 
     preceding fiscal year.
       ``(c) Reduction of Payment for Failure To Maintain Fiscal 
     Effort.--(1) The Secretary shall not pay any local 
     educational agency the full amount determined under section 
     6103 for any fiscal year unless the State educational agency 
     notifies the Secretary, and the Secretary determines, that 
     the combined fiscal effort of that local agency and the State 
     with respect to the provision of free public education by 
     such local agency for the preceding fiscal year, computed on 
     either a per-student or aggregate expenditure basis, was not 
     less than 90 percent of such combined fiscal effort, computed 
     on the same basis, for the second preceding fiscal year.
       ``(2) If the Secretary determines for any fiscal year that 
     a local educational agency failed to maintain its fiscal 
     effort at the 90 percent level required by paragraph (1), the 
     Secretary shall--
       ``(A) reduce the amount of the grant that would otherwise 
     be made to the agency under this part in the exact proportion 
     of such agency's failure to maintain its fiscal effort at 
     such level; and
       ``(B) not use the reduced amount of the agency's 
     expenditures for the preceding 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).
       ``(3)(A) The Secretary may waive the requirement of 
     paragraph (1), for not more than one 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) The Secretary shall not use the reduced amount of 
     such agency's expenditures for the fiscal year preceding the 
     fiscal year for which a 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.
       ``(d) Reallocations.--The Secretary may reallocate, in the 
     manner the Secretary determines will best carry out the 
     purpose of this part, any amounts that--
       ``(1) based on estimates by local educational agencies or 
     other information, will not be needed by such agencies to 
     carry out their approved projects under this part; or
       ``(2) otherwise become available for reallocation under 
     this part.

    ``PART B--SPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL 
                   OPPORTUNITIES FOR INDIAN CHILDREN

     ``SEC. 6201. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR 
                   INDIAN CHILDREN.

       ``(a) In General.--The Secretary shall carry out a program 
     of making grants for the improvement of educational 
     opportunities for Indian children--
       ``(1) to support planning, pilot, and demonstration 
     projects, in accordance with subsection (b), which are 
     designed to test and demonstrate the effectiveness of 
     programs for improving educational opportunities for Indian 
     children;
       ``(2) to assist in the establishment and operation of 
     programs, in accordance with subsection (c), which are 
     designed to stimulate--
       ``(A) the provision of educational services not available 
     to Indian children in sufficient quantity or quality, and
       ``(B) the development and establishment of exemplary 
     educational programs to serve as models for regular school 
     programs in which Indian children are educated;
       ``(3) to assist in the establishment and operation of 
     preservice and inservice training programs, in accordance 
     with subsection (d), for persons serving Indian children as 
     educational personnel; and
       ``(4) to encourage the dissemination of information and 
     materials relating to, and the evaluation of the 
     effectiveness of, education programs which may offer 
     educational opportunities to Indian children.
       ``(b) Demonstration Projects.--The Secretary is authorized 
     to make grants to State and local educational agencies, 
     federally supported elementary and secondary schools for 
     Indian children and to Indian tribes, Indian organizations, 
     and Indian institutions to support planning, pilot, and 
     demonstration projects which are designed to plan for, and 
     test and demonstrate the effectiveness of, programs for 
     improving educational opportunities for Indian children, 
     including--
       ``(1) innovative programs related to the educational needs 
     of educationally deprived children;
       ``(2) bilingual and bicultural education programs and 
     projects;
       ``(3) special health and nutrition services and other 
     related activities which meet the special health, social, and 
     psychological problems of Indian children; and
       ``(4) coordination of the operation of other federally 
     assisted programs which may be used to assist in meeting the 
     needs of such children.
       ``(c) Services and Programs To Improve Educational 
     Opportunities.--
       ``(1) The Secretary is authorized to make grants to State 
     and local educational agencies and to tribal and other Indian 
     community organizations to assist them in developing and 
     establishing educational services and programs specifically 
     designed to improve educational opportunities for Indian 
     children. Such grants may be used--
       ``(A) to provide educational services not available to such 
     children in sufficient quantity or quality, including--
       ``(i) remedial and compensatory instruction, school health, 
     physical education, psychological, and other services 
     designed to assist and encourage Indian children to enter, 
     remain in, or reenter elementary or secondary school;
       ``(ii) comprehensive academic and vocational instruction;
       ``(iii) instructional materials (such as library books, 
     textbooks, and other printed, published, or audiovisual 
     materials) and equipment;
       ``(iv) comprehensive guidance, counseling, mentoring, and 
     testing services;
       ``(v) special education programs for disabled and gifted 
     and talented Indian children;
       ``(vi) early childhood programs, including kindergarten;
       ``(vii) bilingual and bicultural education programs; and
       ``(viii) other services which meet the purposes of this 
     subsection; and
       ``(B) to establish and operate exemplary and innovative 
     educational programs and centers, involving new educational 
     approaches, methods, and techniques designed to enrich 
     programs of elementary and secondary education for Indian 
     children.
       ``(2) In addition to the grants provided under paragraph 
     (1), the Secretary is authorized to provide grants to 
     consortia of Indian tribes or tribal organizations, local 
     educational agencies, and institutions of higher education 
     for the purpose of developing, improving, and implementing a 
     program of--
       ``(A) encouraging Indian students to acquire a higher 
     education, and
       ``(B) reducing the incidence of dropouts among elementary 
     and secondary school students.
       ``(d) Training.--
       ``(1) The Secretary is authorized to make grants to 
     institutions of higher education and to State and local 
     educational agencies, in combination with institutions of 
     higher education, for carrying out programs and projects--
       ``(A) to prepare persons to serve Indian students as 
     teachers, administrators, teacher aides, social workers, and 
     ancillary educational personnel; and
       ``(B) to improve the qualifications of such persons who are 
     serving Indian students in such capacities.
       ``(2) Grants made under this subsection may be used for the 
     establishment of fellowship programs leading to an advanced 
     degree, for institutes and, as part of a continuing program, 
     for seminars, symposia, workshops, and conferences.
       ``(3) In programs funded by grants authorized under this 
     subsection, preference shall be given to the training of 
     Indians.
       ``(4) In making grants under this subsection, the Secretary 
     shall consider prior performance and may not limit 
     eligibility on the basis of the number of previous grants or 
     the length of time for which the applicant has received 
     grants.
       ``(d) Applications for Grants.--
       ``(1) Applications for a grant under this section shall be 
     submitted at such time, in such manner, and shall contain 
     such information, and shall be consistent with such criteria, 
     as may be required under regulations prescribed by the 
     Secretary. Such applications shall--
       ``(A) set forth a statement describing the activities for 
     which assistance is sought;
       ``(B) in the case of an application for a grant under 
     subsection (c)--
       ``(i) subject to such criteria as the Secretary shall 
     prescribe, provide for--

       ``(I) the use of funds available under this section, and
       ``(II) the coordination of other resources available to the 
     applicant,

     in order to ensure that, within the scope of the purpose of 
     the project, there will be a comprehensive program to achieve 
     the purposes of this section, and
       ``(ii) provide for the training of personnel participating 
     in the project; and
       ``(C) provide for an evaluation of the effectiveness of the 
     project in achieving its purpose and the purposes of this 
     section.
       ``(2)(A) The Secretary may approve an application for a 
     grant under subsection (b) or (c) only if the Secretary is 
     satisfied that such application, and any document submitted 
     with respect thereto--
       ``(i) demonstrate that--
       ``(I) there has been adequate participation by the parents 
     of the children to be served and tribal communities in the 
     planning and development of the project, and
       ``(II) there will be such participation in the operation 
     and evaluation of the project, and
       ``(ii) provide for the participation, on an equitable 
     basis, of eligible Indian children--
       ``(I) who reside in the area to be served,
       ``(II) who are enrolled in private nonprofit elementary and 
     secondary schools, and
       ``(III) whose needs are of the type which the program is 
     intended to meet,

     to the extent consistent with the number of such children.
       ``(B) In approving applications under this section, the 
     Secretary shall give priority to applications from Indian 
     educational agencies, organizations, and institutions.

     ``SEC. 6202. SPECIAL EDUCATIONAL TRAINING PROGRAMS FOR THE 
                   TEACHERS OF INDIAN CHILDREN.

       ``(a) In General.--
       ``(1) The Secretary is authorized to make grants to, and 
     enter into contracts with, institutions of higher education, 
     Indian organizations, and Indian tribes for the purpose of--
       ``(A) preparing individuals for teaching or administering 
     special programs and projects designed to meet the special 
     educational needs of Indian people, and
       ``(B) providing in-service training for persons teaching in 
     such programs.
       ``(2) Priority shall be given in the awarding of grants, 
     and in the entering into of contracts, under subsection (a) 
     to Indian institutions and organizations.
       ``(b) Fellowships and Traineeships.--
       ``(1) In carrying out the provisions of this section, the 
     Secretary is authorized to award fellowships and traineeships 
     to individuals and to make grants to, and to enter into 
     contracts with, institutions of higher education, Indian 
     organizations, and Indian tribes for the costs of education 
     allowances.
       ``(2) In awarding fellowships and traineeships under this 
     subsection, the Secretary shall give preference to Indians.
       ``(3) In the case of traineeships and fellowships, the 
     Secretary is authorized to grant stipends to, and allowances 
     for dependents of, persons receiving traineeships and 
     fellowships.

     ``SEC. 6203. FELLOWSHIPS FOR INDIAN STUDENTS.

       ``(a) In General.--During each fiscal year ending prior to 
     October 1, 1999, the Secretary is authorized to award 
     fellowships to be used for study in graduate and professional 
     programs at institutions of higher education. Such 
     fellowships shall be awarded to Indian students in order to 
     enable them to pursue a course of study of not more than 4 
     academic years leading toward a postbaccalaureate degree in 
     medicine, clinical psychology, psychology, law, education, 
     and related fields or leading to an undergraduate or graduate 
     degree in engineering, business administration, natural 
     resources, and related fields.
       ``(b) Stipends.--The Secretary shall pay to persons awarded 
     fellowships under subsection (a) such stipends (including 
     such allowances for subsistence of such persons and their 
     dependents) the Secretary may determine 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 the holder of a fellowship awarded under subsection (a) 
     is pursuing a course of study, in lieu of tuition charged 
     such holder, such amounts as the Secretary may determine to 
     be necessary to cover the cost of education provided the 
     holder of such a fellowship.
       ``(d) Special Rules.--
       ``(1) The Secretary may, if a fellowship awarded under 
     subsection (a) is vacated prior to the end of the period for 
     which it was awarded, award an additional fellowship for the 
     remainder of such period.
       ``(2) By no later than the date that is 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 the 
     amount of such fellowship and of any stipends or other 
     payments that will be made under this section to, or for the 
     benefit of, such individual for such academic term.
       ``(3) 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.--The Secretary shall, by 
     regulation, require that individuals who receive training 
     under this section perform related work and shall notify such 
     local educational agency of the amount no later than June 1 
     of the year in which the grant will be paid following that 
     training or repay all or part of the cost of the training.

     ``SEC. 6204. GIFTED AND TALENTED.

       ``(a) Establishment of Centers.--The Secretary shall 
     establish 2 centers for gifted and talented Indian students 
     at tribally controlled community colleges.
       ``(b) Demonstration Projects.--
       ``(1) The Secretary shall award separate grants to, or 
     enter into contracts with--
       ``(A) 2 tribally controlled community colleges that--
       ``(i) are eligible for funding under the Tribally 
     Controlled Community College Assistance Act of 1978, and
       ``(ii) are fully accredited, or
       ``(B) if acceptable applications are not submitted to the 
     Secretary by 2 of such colleges, the American Indian Higher 
     Education Consortium,

     for the establishment of centers under subsection (a) and for 
     demonstration projects designed to address the special needs 
     of Indian students in elementary and secondary schools who 
     are gifted and talented and to provide such support services 
     to their families that are needed to enable the students to 
     benefit from the project.
       ``(2) Any person to whom a grant is made, or with whom a 
     contract is entered into, under paragraph (1) may enter into 
     a contract with any other persons, including the Children's 
     Television Workshop, for the purpose of carrying out the 
     demonstration projects for which such grant was awarded or 
     for which the contract was entered into by the Secretary.
       ``(3) Demonstration projects funded under this section may 
     include--
       ``(A) the identification of the special needs of gifted and 
     talented students, particularly at the elementary school 
     level, with attention to the emotional and psychosocial needs 
     of these students and to the provision of those support 
     services to their families that are needed to enable these 
     students to benefit from the project;
       ``(B) the conduct of educational, psychosocial, and 
     developmental activities which hold reasonable promise of 
     resulting in substantial progress toward meeting the 
     educational needs of such gifted and talented children, 
     including, but not limited to, demonstrating and exploring 
     the use of Indian languages and exposure to Indian cultural 
     traditions, and mentoring and apprenticeship programs;
       ``(C) the provision of technical assistance and the 
     coordination of activities at schools which receive grants 
     under subsection (c) with respect to the activities funded by 
     such grants, the evaluation of programs at such schools 
     funded by 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 the 
     dissemination of information derived from the demonstration 
     projects conducted under this section; and
       ``(F) appropriate research, evaluation, and related 
     activities pertaining to the needs of such children and to 
     the provision of such support services to their families that 
     are needed to enable such children to benefit from the 
     project.
       ``(c) Additional Grants.--
       ``(1) The Secretary, in consultation with the Secretary of 
     the Interior, shall provide 5 grants to schools that are 
     Bureau funded schools for program research and development 
     regarding, 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 interested in teaching careers),
       ``(C) students with special culturally related academic 
     needs, including social, lingual, and cultural needs, and
       ``(D) math and science education.
       ``(2) Applications for the grants provided under paragraph 
     (1) shall be submitted to the Secretary in such form and at 
     such time as the Secretary may prescribe. Applications for 
     such grants by Bureau schools, and the administration of any 
     of such grants made to a Bureau school, shall be undertaken 
     jointly by the supervisor of the Bureau school and the local 
     school board.
       ``(3) Grants may be provided under paragraph (1) for one or 
     more activities described in paragraph (1).
       ``(4) In providing grants under paragraph (1), the 
     Secretary shall--
       ``(A) achieve a mixture of programs described in paragraph 
     (1) which ensures that students at all grade levels and in 
     all geographic areas of the United States are able to 
     participate in some programs funded by grants provided under 
     this subsection, and
       ``(B) ensure that a definition of the term `gifted and 
     talented student' for purposes of this section and section 
     1128(c)(3)(A)(i) of the Education Amendments of 1978 is 
     developed as soon as possible.
       ``(5) Subject to the availability of appropriated funds, 
     grants provided under paragraph (1) shall be made for a 3-
     year period and may be renewed by the Secretary for 
     additional 3-year periods if performance by the grantee is 
     satisfactory to the Secretary.
       ``(6)(A) The dissemination of any materials developed from 
     activities funded by grants provided under paragraph (1) 
     shall be carried out in cooperation with institutions 
     receiving funds under subsection (b).
       ``(B) The Secretary shall report to the Secretary of the 
     Interior and to the Congress any results from activities 
     described in paragraph (4)(B).
       ``(7)(A) The costs of evaluating any activities funded by 
     grants made under paragraph (1) shall be divided between the 
     school conducting such activities and the demonstration 
     project recipients under subsection (b).
       ``(B) If no funds are provided under subsection (b) for--
       ``(i) the evaluation of activities funded by grants made 
     under paragraph (1),
       ``(ii) technical assistance and coordination with respect 
     to such activities, or
       ``(iii) dissemination of such evaluations,

     the Secretary shall, by grant or through contract, provide 
     for such evaluations, technical assistance, coordination, and 
     dissemination.
       ``(d) Information Network.--The Secretary shall encourage 
     persons to whom a grant is made, or with whom a contract is 
     entered into, under this section to work cooperatively as a 
     national network so that the information developed by such 
     persons is readily available to the entire educational 
     community.

     ``SEC. 6205. TRIBALLY CONTROLLED SCHOOLS ACT.

       ``(a) Timely Payments.--Subsection (a) is amended to read 
     as follows:
       ```(a)(1) Except as otherwise provided in this subsection, 
     the Secretary shall make payments to grantees under this part 
     in 2 payments:
       ```(A) one payment to be made no later than July 1 of each 
     year in an amount equal to one-half of the amount which the 
     grantee was entitled to receive during the preceding academic 
     year, and
       ```(B) the second payment, consisting of the remainder to 
     which the grantee is entitled for the academic year, shall be 
     made no later than December 1 of each year.
       ```(2) For any school for which no payment was made from 
     Bureau funds in the preceding academic year, full payment of 
     the amount computed for the first academic year of 
     eligibility under this part shall be made no later than 
     December 1 of the academic year.
       ```(3) With regard to funds for grantees that become 
     available for obligation on October 1 of the fiscal year for 
     which they are appropriated, the Secretary shall make 
     payments to grantees no later than December 1 of the fiscal 
     year.
       ```(4) The provisions of the Prompt Payment Act (31 U.S.C. 
     3901 et seq.) shall apply to the payments required to be made 
     by paragraphs (1), (2), and (3) of this subsection.'.
       ``(b) Paragraph (3) is amended by striking `Paragraphs (1) 
     and (2)' and inserting in lieu thereof `Paragraphs (1), (2), 
     and (3)', and is renumbered as paragraph `(5)'.

   ``PART C--SPECIAL PROGRAMS RELATING TO ADULT EDUCATION FOR INDIANS

     ``SEC. 6301. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR 
                   ADULT INDIANS.

       ``(a) In General.--The Secretary shall carry out a program 
     of awarding grants to State and local educational agencies 
     and to Indian tribes, institutions, and organizations--
       ``(1) to support planning, pilot, and demonstration 
     projects which 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 which are designed to stimulate--
       ``(A) the provision of basic literacy opportunities to all 
     nonliterate Indian adults, and
       ``(B) the provision of opportunities to all Indian adults 
     to qualify for a high school equivalency certificate 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 the literacy and high school equivalency goals;
       ``(4) to provide for basic surveys and evaluations to 
     define accurately the extent of the problems of illiteracy 
     and lack of high 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 which may offer 
     educational opportunities to Indian adults.
       ``(b) Educational Services.--The Secretary is authorized to 
     make grants to Indian tribes, Indian institutions, and Indian 
     organizations to develop and establish educational services 
     and programs specifically designed to improve educational 
     opportunities for Indian adults.
       ``(c) Information and Evaluation.--The Secretary is also 
     authorized to make grants to, and to 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 thereof; and
       ``(2) the evaluation of federally assisted programs in 
     which Indian adults may participate to determine the 
     effectiveness of such programs in achieving the purposes of 
     such programs with respect to such adults.
       ``(d) Applications.--
       ``(1) Applications for a grant under this section shall be 
     submitted at such time, in such manner, contain such 
     information, and be consistent with such criteria, as may be 
     required under regulations prescribed by the Secretary. Such 
     applications shall--
       ``(A) set forth a statement describing the activities for 
     which assistance is sought; and
       ``(B) provide for an evaluation of the effectiveness of the 
     project in achieving its purposes and the purposes of this 
     section.
       ``(2) The Secretary shall not approve an application for a 
     grant under subsection (a) unless the Secretary is satisfied 
     that such application, and any documents submitted with 
     respect thereto, indicate that--
       ``(A) there has been adequate participation by the 
     individuals to be served and tribal communities in the 
     planning and development of the project, and
       ``(B) there will be such a participation in the operation 
     and evaluation of the project.
       ``(3) In approving applications under subsection (a), the 
     Secretary shall give priority to applications from Indian 
     educational agencies, organizations, and institutions.

           ``PART D--NATIONAL ACTIVITIES AND GRANTS TO STATES

     ``SEC. 6401. NATIONAL ACTIVITIES.

       ``(a) Authorized Activities.--From funds appropriated for 
     any fiscal year to carry out this section, the Secretary 
     may--
       ``(1) conduct research related to effective approaches to 
     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 consistent with the 
     purpose of this Act.
       ``(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; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out by the Office of Indian 
     Education and the Office of Educational Research and 
     Improvement.

     ``SEC. 6402. STATE EDUCATIONAL AGENCY REVIEW.

       (a) Before submitting its application to the Secretary, the 
     local educational agency shall submit its application to the 
     State educational agency.
       (b) The State education agency may send to the Secretary 
     comments on each local educational agency application its 
     reviews. The Secretary shall take such comments into 
     consideration in reviewing such application.

                    ``PART E--FEDERAL ADMINISTRATION

     ``SEC. 6501. OFFICE OF INDIAN EDUCATION.

       ``(a) Office of Indian Education.--There shall be an Office 
     of Indian Education (referred to in this section as ``the 
     Office'') in the Department of Education.
       ``(b) Director.--(1) The Office shall be under the 
     direction of the Director, who shall be appointed by the 
     Secretary and who shall report directly to the Assistant 
     Secretary for Elementary and Secondary Education.
       ``(2) The Director shall--
       ``(A) be responsible for administering this title;
       ``(B) be involved in, and be primarily responsible for, the 
     development of all policies affecting Indian children and 
     adults under programs administered by the Office of 
     Elementary and Secondary Education;
       ``(C) coordinate the development of policy and practice for 
     all programs in the Department relating to Indian persons; 
     and
       ``(D) assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities related to the education of Indian persons.''.
       ``(3) The Director of the Office shall be a member of the 
     career Senior Executive Service.
       ``(c) Indian Preference in Employment.--(1) The Secretary 
     shall give a preference to Indian persons in all personnel 
     actions in the Office.
       ``(2) Such preference shall be implemented in the same 
     fashion as the preference given to any veteran under section 
     2609 of the Revised Statutes, section 45 of title 25, United 
     States Code.

     ``SEC. 6502. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

       ``(a) Membership.--There shall be 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 organizations; and
       ``(2) represent different geographic areas of the country.
       ``(b) Duties.--The Council shall--
       ``(1) advise the Secretary on the funding and 
     administration, including the development of regulations and 
     of administrative policies and practices, of any program, 
     including programs under this title, for which the Secretary 
     is responsible and in which Indian children or adults 
     participate or from which they can benefit;
       ``(2) make recommendations to the Secretary for filling the 
     Director's position whenever a vacancy occurs in such 
     position; and
       ``(3) submit to the Congress, by June 30 of each year, a 
     report on its activities, which shall include--
       ``(A) any recommendations it finds appropriate for the 
     improvement of Federal education programs in which Indian 
     children or adults participate, or from which they can 
     benefit; and
       ``(B) its recommendations with respect to the funding of 
     any such programs.

     ``SEC. 6503. PEER REVIEW.

       ``In reviewing applications under parts B, C, and D of this 
     title, the Secretary may use a peer review process.

     ``SEC. 6504. PREFERENCE FOR INDIAN APPLICANTS.

       ``In making grants under parts B and C of this title, the 
     Secretary shall give a preference to Indian tribes, Indian 
     organizations, and Indian institutions of higher education 
     under any program for which they are eligible to apply.

     ``SEC. 6505. MINIMUM GRANT CRITERIA.

       ``In making grants under parts B and C of this title, the 
     Secretary shall approve only projects that are--
       ``(1) of sufficient size, scope, and quality to achieve the 
     purpose of the section under which assistance is sought; and
       ``(2) based on relevant research findings.

         PART F--DEFINITIONS; AUTHORIZATIONS OF APPROPRIATIONS

     ``SEC. 6601. DEFINITIONS.

       ``The following definitions apply to terms as used in this 
     title:
       ``(1) The term `adult' means an individual who is either--
       ``(A) not less than 16 years old; or
       ``(B) beyond the age of compulsory school attendance under 
     State law.
       ``(2) The term `adult education' has the meaning given such 
     term in section 312(2) of the Adult Education Act.
       ``(3) 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.
       ``(4) 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) tribes and bands terminated since 1940; and
       ``(ii) tribes and bands recognized by the State in which 
     they reside;
       ``(B) a descendant, in the first or second degree, of an 
     individual described in subparagraph (A);
       ``(C) considered by the Secretary of the Interior to be an 
     Indian for any purpose; or
       ``(D) an Eskimo, Aleut, or other Alaska Native.

     ``SEC. 6602. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) Part A.--For the purpose of carrying out part A of 
     this title, there are authorized to be appropriated 
     $61,300,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999.
       ``(b) Parts B Through D.--For the purpose of carrying out 
     parts B, C, and D of this title, there are authorized to be 
     appropriated $20,925,000 for fiscal year 1995 and such sums 
     as may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.
       ``(c) Part E.--For the purpose of carrying out part E of 
     this title, including section 6502, there are authorized to 
     be appropriated $3,775,000 for fiscal year 1995 and such sums 
     as may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.

              ``PART G--BUREAU OF INDIAN AFFAIRS PROGRAMS

     ``SEC. 6701. STANDARDS FOR THE BASIC EDUCATION OF INDIAN 
                   CHILDREN IN BUREAU OF INDIAN AFFAIRS SCHOOLS.

       ``(a) The purpose of the standards developed under this 
     section shall be to afford Indian students being served by a 
     Bureau funded school with the same opportunities as all other 
     students to achieve the high goals embodied in the Goals 
     2000: Educate America Act. Consistent with the provisions of 
     this section and section 6711 of this part, the Secretary 
     shall take such actions as are necessary to coordinate 
     standards developed and implemented under this section with 
     those in the State plans developed and implemented pursuant 
     to the GOALS 2000 Educate America Act for the States in which 
     each Bureau funded school operates. In developing and 
     reviewing these standards and such coordination, the 
     Secretary shall utilize the findings and recommendations of 
     the panel established by the Goals 2000: Educate America Act
       ``(b) The Secretary, in consultation with the Secretary of 
     Education, and in consultation with Indian organizations and 
     tribes, shall carry out or cause to be carried out by 
     contract with an Indian organization such studies and 
     surveys, making the fullest use possible of other existing 
     studies, surveys, and plans, as are necessary to establish 
     and revise standards for the basic education of Indian 
     children attending Bureau funded schools. Such studies and 
     surveys shall take into account factors such as academic 
     needs, local cultural differences, type and level of language 
     skills, geographic isolation, and appropriate teacher-student 
     ratios for such children, and shall be directed toward the 
     attainment of equal eductional opportunity for such children.
       ``(c)(1) Within 18 months of the date of enactment of this 
     Act, the Secretary shall revise the minimum academic 
     standards published in the Federal Register of November 1983 
     for the basic education of Indian chlidren which are 
     consistent with subsections (a) and (b) of this section and 
     section 6711, and shall distribute such revised standards in 
     the Federal Register for the purpose of receiving comments 
     from the tribes and other interested parties. Within 21 
     months of the date of enactment of the Elementary and 
     Secondary Education Act Amendments of 1993, the Secretary 
     shall establish final standards, distribute such standards to 
     all the tribes and publish such standards in the Federal 
     Register. The Secretary shall revise such standards 
     periodically as necessary. Prior to any revision of such 
     standards, the Secretary shall distribute such proposed 
     revision to all the tribes, and publish such proposed 
     revision in the Federal Register, for the purpose of 
     receiving comments from the tribes and other interested 
     parties.
       ``(2) Such standards shall apply to Bureau schools, and 
     subject to subsection (f), to contract and grant schools, and 
     may also serve as a model for educational programs for Indian 
     children in public schools. In establishing and revising such 
     standards, the Secretary shall take into account the special 
     needs of Indian students and the support and reinforcement of 
     the specific cultural heritage of each tribe. Such standards 
     shall include a requirement, developed in coordination with 
     Indian tribes, the affected local school boards, the Indian 
     Health Service of the Department of Health and Human 
     Services, the State health departments, and the Centers for 
     Disease Control and Prevention, on immunization for childhood 
     diseases, including provisions for in-school immunization, 
     where necessary.
       ``(d) The Secretary shall provide alternative or modified 
     standards in lieu of the standards established under 
     subsection (c), where necessary, so that the programs of each 
     school shall be in compliance with the minimum standards 
     required for accreditation of schools in the State where the 
     school is located.
       ``(e) A tribal governing body, or the local school board so 
     designated by the tribal governing body, shall have the local 
     authority to waive, in part or in whole, the standards 
     established under subsections (c) and (d), where such 
     standards are deemed by such body to be inappropriate or ill-
     conceived. The tribal governing body or designated school 
     board shall, within 60 days thereafter, submit to the 
     Secretary a proposal for alternative standards that takes 
     into account the specific needs of the tribe's children. Such 
     revised standards shall be established by the Secretary 
     unless specifically rejected by the Secretary for good cause 
     and in writing to the affected tribes or local school board, 
     which rejection shall be final and unreviewable.
       ``(f)(1) The Secretary, through contracting and grant-
     making procedures, shall assist school boards of contract and 
     grant schools in the implementation of the standards 
     established under subsection (c) and (d), if the school 
     boards request that such standards, in part or in whole, be 
     implemented. At the request of a contract or grant school 
     board, the Secretary shall provide alternative or modified 
     standards for the standards established under subsections (c) 
     and (d) to take into account the needs of the Indian children 
     and the contract or grant school.
       ``(2) Within 1 year of the date of the enactment of the 
     Indian Education Technical Amendments Act of 1985, the Bureau 
     shall, either directly or through contract with an Indian 
     organization, establish a consistent system of reporting 
     standards for fiscal control and fund accounting for all 
     contract schools. Such standards shall yield data results 
     comparable to those used by Bureau schools.
       ``(g) Subject to subsections (e) and (f), the Secretary 
     shall begin to implement the standards established under this 
     section immediately upon the date of their establishment. No 
     later than January 1, 1995, and at each time thereafter that 
     the annual budget request for Bureau educational services is 
     presented, the Secretary shall submit to the appropriate 
     committees of Congress a detailed plan to bring all Bureau 
     and contract and grant schools up to the level required by 
     the applicable standards established under this section. Such 
     plan shall include, but not be limited to, detailed 
     information on the status of each school's educational 
     program in relation to the applicable standards established 
     under this section, specific cost estimates for meeting such 
     standards at each school, and specific time lines for 
     bringing each school up to the level required by such 
     standards.
       ``(h)(1) Except as specifically required by statute, no 
     school or peripheral dormitory operated by the Bureau of 
     Indian Affairs on or after January 1, 1992, may be closed or 
     consolidated or have its program substantially curtailed 
     unless done according to the requirements of this subsection, 
     except that, in those cases where the tribal governing body, 
     or the local school board concerned (if so designated by the 
     tribal governing body), requests closure or consolidation, 
     the requirements of this subsection shall not apply. The 
     requirements of this subsection shall not apply when a 
     temporary closure, consolidation, or substantial curtailment 
     is required by plant conditions which constitute an immediate 
     hazard to health and safety.
       ``(2) The Secretary shall, by regulation, promulgate 
     standards and procedures for the closing, consolidation, or 
     substantial curtailment of Bureau schools in accordance with 
     the requirements of this subsection.
       ``(3) Whenever closure, transfer to any other authority, 
     consolidation, or substantial curtailment of a school is 
     under active consideration or review by any division of the 
     Bureau or the Department of the Interior, the affected tribe, 
     tribal governing body, and designated local school board, 
     will be notified as soon as such consideration or review 
     begins, kept fully and currently informed, and afforded an 
     opportunity to comment with respect to such consideration or 
     review. When a formal decision is made to close, transfer to 
     any other authority, consolidate, or substantially curtail a 
     school, the affected tribe, tribal governing body, and 
     designated local school board shall be notified at least 6 
     months prior to the end of the school year preceding the 
     proposed effective date. Copies of any such notices and 
     information shall be transmitted promptly to the Congress and 
     published in the Federal Register.
       ``(4) The Secretary shall make a report to Congress, the 
     affected tribe, and the designated local school board 
     describing the process of the active consideration or review 
     referred to in paragraph (3). At a minimum, the report shall 
     include a study of the impact of such action on the student 
     population, with every effort to identify those students with 
     particular educational and social needs, and to insure that 
     alternative services are available to such students. Such 
     report shall include the description of the consultation 
     conducted between the potential service provider, current 
     service provider, parents, tribal representative and the 
     tribe or tribes involved, and the Director of the Office of 
     Indian Education Programs within the Bureau regarding such 
     students. No irreversible action may be taken in furtherance 
     of any such proposed school closure, transfer to any other 
     authority, consolidation, or substantial curtailment 
     (including any action which would prejudice the personnel or 
     programs of such school) until the end of the first full 
     academic year after such report is made.
       ``(5) The Secretary may terminate, contract, transfer to 
     any other authority, or consolidate or substantially curtail 
     the operation or facilities of--
       ``(A) any Bureau funded school that is operated on or after 
     April 1, 1987,
       ``(B) any program of such a school that is operated on or 
     after April 1, 1987, or
       ``(C) any school board of a school operated under a grant 
     under the Tribally Controlled Schools Act of 1988 (Public Law 
     100-297),

     only if the tribal governing body approves such action.
       ``(i) There are hereby authorized to be appropriated such 
     sums as may be necessary, for academic program costs, in 
     order to bring all Bureau and contract schools up to the 
     level required by the applicable standards established under 
     this section.
       ``(j)(1) All schools funded by the Bureau of Indian Affairs 
     shall include within their curriculum a program of 
     instruction relating to alcohol and substance abuse 
     prevention and treatment. The Assistant Secretary shall 
     provide the technical assistance necessary to develop and 
     implement such a program for students in kindergarten and 
     grades 1 through 12, at the request of--
       ``(A) any Bureau of Indian Affairs school (subject to the 
     approval of the school board of such school);
       ``(B) any school board of a school operating under a 
     contract entered into under the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.); or
       ``(C) any school board of a school operating under a grant 
     under the Tribally Controlled Schools Act of 1988 (Public Law 
     100-297).
       ``(2) In schools operated directly by the Bureau of Indian 
     Affairs, the Secretary shall provide for--
       ``(A) accurate reporting of all incidents relating to 
     alcohol and substance abuse; and
       ``(B) individual student crisis intervention.
       ``(3) The programs requested under paragraph (1) shall be 
     developed in consultation with the Indian tribe that is to be 
     served by such program and health personnel in the local 
     community of such tribe.
       ``(4) Schools requesting program assistance under this 
     subsection are encouraged to involve family units and, where 
     appropriate, tribal elders and Native healers in such 
     instructions.
       ``(k) For purposes of this section, the term ``tribal 
     governing body'' means, with respect to any school, the 
     tribal governing body, or tribal governing bodies, that 
     represent at least 90 percent of the students served by such 
     school.
       ``(l)(1)(A) The Secretary shall only consider the factors 
     described in subparagraphs (B) and (C) in reviewing--
       ``(i) applications from any tribe for the awarding of a 
     contract or grant for a school that is not a Bureau funded 
     school,
       ``(ii) applications from any tribe or school board of any 
     Bureau funded school for--
       ``(I) a school which is not a Bureau funded school; or
       ``(II) the expansion of a Bureau funded school which would 
     increase the amount of funds received by the Indian tribe or 
     school board under section 6707.

     The Secretary shall give consideration to all of such 
     factors, but none of such applications may be denied based 
     primarily upon the geographic proximity of public education.
       ``(B) The Secretary shall consider the following factors 
     relating to the program that is the subject of an application 
     described in subparagraph (A):
       ``(i) the adequacy of facilities or the potential to obtain 
     or provide adequate facilities;
       ``(ii) geographic and demographic factors in the affected 
     areas;
       ``(iii) adequacy of the applicant's program plans or, in 
     the case of a Bureau funded school, of projected needs 
     analysis done either by a tribe or by Bureau personnel;
       ``(iv) geographic proximity of comparable public education; 
     and
       ``(v) the stated needs of all affected parties, including 
     (but not limited to) students, families, tribal governments 
     at both the central and local levels, and school 
     organizations.
       ``(C) The Secretary shall consider with respect to 
     applications described in subparagraph (A) the following 
     factors relating to all the educational services available at 
     the time the application is considered:
       ``(i) geographic and demographic factors in the affected 
     areas;
       ``(ii) adequacy and comparability of programs already 
     available;
       ``(iii) consistency of available programs with tribal 
     educational codes or tribal legislation on education; and
       ``(iv) the history and success of these services for the 
     proposed population to be served, as determined from all 
     factors and not just standardized examination performance.
       ``(2)(A) The Secretary shall make a determination of 
     whether to approve any application described in paragraph 
     (1)(A) by no later than the date that is 180 days after the 
     day on which such application is submitted to the Secretary.
       ``(B) If the Secretary fails to make the determination 
     described in subparagraph (A) with respect to an application 
     by the date described in subparagraph (A), the application 
     shall be treated as having been approved by the Secretary.
       ``(3)(A) Any application described in paragraph (1)(A) may 
     be submitted to the Secretary only if--
       ``(i) the application has been approved by the tribal 
     governing body of the students served by (or to be served by) 
     the school or program that is the subject of the application, 
     and
       ``(ii) written evidence of such approval is submitted with 
     the application.
       ``(B) Each application described in paragraph (1)(A)--
       ``(i) shall provide information concerning each of the 
     factors described in paragraph (1)(B), and
       ``(ii) may provide information concerning the factors 
     described in paragraph (1)(C).
       ``(4) Whenever the Secretary makes a determination to deny 
     approval of any application described in paragraph (1)(A), 
     the Secretary shall--
       ``(A) state the objections in writing to the applicant by 
     no later than the date that is 180 days after the day on 
     which the application is submitted to the Secretary,
       ``(B) provide assistance to the applicant to overcome 
     stated objections, and
       ``(C) provide the applicant a hearing, under the same rules 
     and regulations pertaining to the Indian Self-Determination 
     and Education Assistance Act, and an opportunity to appeal 
     the objections raised by the Secretary.
       ``(5)(A) Except as otherwise provided in this paragraph, 
     the action which is the subject of any application described 
     in paragraph (1)(A) that is approved by the Secretary shall 
     become effective with the commencement of the academic year 
     succeeding the fiscal year in which the application is 
     approved, or at an earlier date determined by the Secretary.
       ``(B) If an application is treated as having been approved 
     by the Secretary by reason of paragraph (2)(B), the action 
     that is the subject of the application shall become effective 
     on the date that is 18 months after the date on which the 
     application is submitted to the Secretary, or at an earlier 
     date determined by the Secretary.

     ``SEC. 6702. NATIONAL CRITERIA FOR DORMITORY SITUATIONS.

       ``(a) The Secretary, in consultation with the Secretary of 
     the Department of Education, and in consultation with Indian 
     organizations and tribes, shall conduct or cause to be 
     conducted by contract with an Indian organization, a study of 
     the costs applicable to boarding arrangements for Indian 
     students provided in Bureau and contract and grant schools, 
     for the purpose of establishing national criteria for such 
     dormitory situations. Such criteria shall include adult-child 
     ratios, needs for counselors (including special needs related 
     to off-reservation boarding arrangements), space, and 
     privacy.
       ``(b) No later than January 1, 1996, the Secretary shall 
     propose such criteria, and shall distribute such proposed 
     criteria to the tribes and publish such proposed criteria in 
     the Federal Register for the purpose of receiving comments 
     from the tribes and other interested parties. Within eighteen 
     months of the date of the enactment of this Act, the 
     Secretary shall establish final criteria, distribute such 
     criteria to all the tribes, and publish such criteria in the 
     Federal Register. The Secretary shall revise such criteria 
     periodically as necessary. Any revisions to the standards 
     established under this section shall be developed subject to 
     requirements established under section 6711.
       ``(c) The Secretary shall begin to implement the criteria 
     established under this section immediately upon the date of 
     their establishment. No later than January 1, 1981, and at 
     each time thereafter that the annual budget request for 
     Bureau educational services is presented, the Secretary shall 
     submit to the appropriate committees of Congress a detailed 
     plan to bring all Bureau and contract boarding schools up to 
     the criteria established under this section. Such plan shall 
     include, but not be limited to, predictions for the relative 
     need for each boarding school in the future, detailed 
     information on the status of each school in relation to the 
     criteria established under this section, specific cost 
     estimates for meeting such criteria at each school, and 
     specific time lines for bringing each school up to the level 
     required by such criteria.
       ``(d)(1) The criteria established under this section may be 
     waived in the same manner as the standards provided under 
     section 6701(c) may be waived under section 6701(e).
       ``(2) No school in operation on or before January 1, 1987 
     (regardless of compliance or noncompliance with the criteria 
     established under this section) may be closed, transferred to 
     another authority, consolidated or have its program 
     substantially curtailed for failure to meet the criteria.
       ``(3) By no later than May 1, 1996, the Secretary shall 
     submit to the Congress a report detailing the costs 
     associated with, and the actions necessary for, complete 
     compliance with the criteria established under this section.
       ``(e) There are hereby authorized to be appropriated such 
     sums as may be necessary in order to bring each school up to 
     the level required by the criteria established under this 
     section.

     ``SEC. 6703. REGULATIONS.

       ``(a) The provisions of part 32 of title 25 of the Code of 
     Federal Regulations, as in effect on January 1, 1987, are 
     hereby incorporated into this Act and shall be treated as 
     though such provisions are set forth in this subsection. 
     Accordingly, such provisions may be altered only by means of 
     an amendment to this subsection that is contained in an Act 
     or joint resolution which is enacted into law. To the extent 
     that such provisions of part 32 do not conform with this Act 
     or any statutory provision of law enacted before the date of 
     enactment of this Act, the provisions of this Act and the 
     provisions of such other statutory law shall govern.
       ``(b) The provisions of parts 31, 33, 36, 39, 42, and 43 of 
     title 25 of the Code of Federal Regulations, as in effect on 
     January 1, 1987, shall be applied by the Federal Government 
     and shall not, before July 1, 1989, be amended, revoked, or 
     altered in any manner. No officer or employee of the 
     Executive Branch shall have the authority to issue any other 
     regulations, prior to July 1, 1989, that supersede, 
     supplement, or otherwise affect the provisions of such parts. 
     To the extent that the provisions of such parts do not 
     conform with this Act or any statutory provision of law 
     enacted before the date of enactment of this Act, the 
     provisions of this Act and the provisions of such other 
     statutory law shall govern.
       ``(c) After June 30, 1989, no regulation prescribed for the 
     application of any program provided under this title shall 
     become effective unless--
       ``(1) the regulation has been published as a proposed 
     regulation in the Federal Register,
       ``(2) an opportunity of no less than 90 days has been 
     afforded the public to comment on the published proposed 
     regulation, and
       ``(3) the regulation has, after such period for public 
     comment, been published in the Federal Register as a final 
     regulation.
       ``(d) For purposes of this section, the term ``regulation'' 
     means any rules, regulations, guidelines, interpretations, 
     orders, or requirements of general applicability prescribed 
     by any officer or employee of the Executive Branch.

     ``SEC. 6704. SCHOOL BOUNDARIES.

       ``(a) The Secretary shall, in accordance with this section, 
     establish separate geographical attendance areas for each 
     Bureau school.
       ``(b)(1) Except as provided in paragraph (2), on or after 
     July 1, 1985, no attendance area shall be changed or 
     established with respect to any such school unless the tribal 
     governing body or the local school board concerned (if so 
     designated by the tribal governing body) has been (i) 
     afforded at least six months notice of the intention of the 
     Bureau to change or establish such attendance area, and (ii) 
     given the opportunity to propose alternative boundaries. Any 
     tribe may petition the Secretary for revision of existing 
     attendance area boundaries. The Secretary shall accept such 
     proposed alternative or revised boundaries unless the 
     Secretary finds, after consultation with the affected tribe 
     or tribes, that such revised boundaries do not reflect the 
     needs of the Indian students to be served or do not provide 
     adequate stability to all of the affected programs.
       ``(2) In any case where there is more than 1 Bureau funded 
     school located on an Indian reservation, at the direction of 
     the tribal governing body, the relevant school boards of the 
     Bureau funded schools on the reservation may, by mutual 
     consent, establish the relevant attendance areas for such 
     schools, subject to the approval of the tribal governing 
     body. Any such boundaries so established shall be accepted by 
     the Secretary.
       ``(c) In any case where there is only 1 Bureau operated 
     program located on an Indian reservation, the attendance area 
     for the program shall be the boundaries of the reservation 
     served, and those students residing near the reservation 
     shall also receive services from such program.
       ``(d) The Bureau of Indian Affairs shall include in the 
     final rules the requirement that each appropriate education 
     line officer coordinate and consult with the affected tribes 
     and relevant school boards in the establishment of such 
     geographic boundaries.

     ``SEC. 6705. FACILITIES CONSTRUCTION.

       ``(a) The Secretary shall immediately begin to bring all 
     schools, dormitories, and other facilities operated by the 
     Bureau or under contract or grant with the Bureau in 
     connection with the education of Indian children into 
     compliance with all applicable Federal, tribal, or State 
     health and safety standards, whichever provide greater 
     protection (except that the tribal standards to be applied 
     shall be no greater than any otherwise applicable Federal or 
     State standards), and with section 504 of the Rehabilitation 
     Act of 1973 (29 U.S.C. 794) and with the Americans with 
     Disabilities Act of 1990, except that nothing in this section 
     shall require termination of the operations of any facility 
     which does not comply with such provisions and which is in 
     use on the date of enactment of this Act.
       ``(b) By January 1, 1996, and at each time thereafter that 
     the annual budget request for Bureau educational services is 
     presented, the Secretary shall submit to the appropriate 
     committees of Congress a detailed plan to bring such 
     facilities into compliance with such standards. Such plan 
     shall include, but not be limited to, detailed information on 
     the status of each facility's compliance with such standards, 
     specific cost estimates for meeting such standards at each 
     school, and specific time lines for bringing each school into 
     compliance with such standards.
       ``(c) Within six months of the date of enactment of this 
     Act, the Secretary shall submit to the appropriate committees 
     of Congress, and publish in the Federal Register, the system 
     used to establish priorities for school construction 
     projects. At the time any budget request for school 
     construction is presented, the Secretary shall publish in the 
     Federal Register and submit with the budget request the 
     current list of all school construction priorities.
       ``(d)(1) A Bureau school may be closed or consolidated, and 
     the programs of a Bureau school may be substantially 
     curtailed, by reason of plant conditions that constitute an 
     immediate hazard to health and safety only if a health and 
     safety officer of the Bureau determines that such conditions 
     exist at the Bureau school.
       ``(2)(A) In making determinations described in paragraph 
     (1) before July 1, 1989, health and safety officers of the 
     Bureau shall use the health and safety guidelines of the 
     Bureau that were in effect on January 1, 1988.
       ``(B)(i) If--
       ``(I) the Secretary fails to publish in the Federal 
     Register in final form before July 1, 1989, and
       ``(II) action described in paragraph (1) is taken after 
     June 30, 1989, and before the date on which such regulations 
     are published in final form in the Federal Register by reason 
     of the condition of any plant,

     an inspection of the condition of such plant shall be 
     conducted by an appropriate tribal, county, municipal, or 
     State health and safety officer to determine whether 
     conditions at such plant constitute an immediate hazard to 
     health and safety. Such inspection shall be completed by no 
     later than the date that is 30 days after the date on which 
     the action described in paragraph (1) is taken.
       ``(ii) The inspection required under clause (i) shall be 
     conducted by a health and safety officer designated jointly 
     by the Secretary and the tribes affected by the action 
     described in paragraph (1). If the Secretary and such tribes 
     are unable to agree on the designation of the health and 
     safety officer, the Secretary shall designate the health and 
     safety officer and shall provide notice of such designation 
     to each of such tribes before the inspection is conducted by 
     such officer.
       ``(iii) If the health and safety officer conducting an 
     inspection of a plant required under clause (i) determines 
     that conditions at the plant do not constitute an immediate 
     hazard to health and safety, any consolidation or curtailment 
     that was made by reason of conditions at the plant shall 
     immediately cease and any school closed by reason of 
     conditions at the plant shall be reopened immediately.
       ``(3) If--
       ``(A) a Bureau school is temporarily closed or 
     consolidated, or the programs of a Bureau school are 
     substantially curtailed, by reason of plant conditions that 
     constitute an immediate hazard to health and safety, and
       ``(B) the Secretary estimates that the closure, 
     consolidation, or curtailment will be more than 1 year in 
     duration,

     the Secretary shall submit to the Congress, by no later than 
     the date that is 6 months after the date on which the 
     closure, consolidation, or curtailment is initiated, a report 
     which sets forth the reasons for such temporary actions and 
     the actions the Secretary is taking to eliminate the 
     conditions that constitute the hazard.
       ``(e) There are hereby authorized to be appropriated such 
     sums as may be necessary to carry out subsection (a).

     ``SEC. 6706. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

       ``(a) The Secretary shall vest in the Assistant Secretary 
     for Indian Affairs all functions with respect to formulation 
     and establishment of policy and procedure, and supervision of 
     programs and expenditures of Federal funds for the purpose of 
     Indian education administered by the Bureau. The Assistant 
     Secretary shall carry out such functions through the Director 
     of the Office of Indian Education.
       ``(b) The Director of the Office shall direct and supervise 
     the operations of all personnel directly and substantially 
     involved with provision of education services by the Bureau, 
     including (but not limited to) school or institution 
     custodial or maintenance personnel. The Assistant Secretary 
     for Indian Affairs shall provide for the adequate 
     coordination between the affected Bureau Offices and the 
     Office to facilitate the consideration of all contract 
     functions relating to education. Except as required by 
     section 6709(d), nothing in this Act shall be construed to 
     require the provision of separate support services for Indian 
     education.
       ``(c) Education personnel who are under the direction and 
     supervision of the Director of the Office in accordance with 
     the first sentence of subsection (b) shall--
       ``(1) monitor and evaluate Bureau education programs,
       ``(2) provide all services and support functions for 
     education programs with respect to personnel matters 
     involving staffing actions and functions, and
       ``(3) provide technical and coordinating assistance in 
     areas such as procurement, contracting, budgeting, personnel, 
     and curriculum.
       ``(d)(1) The Assistant Secretary shall submit in the annual 
     Budget a plan--
       ``(A) for school facilities to be constructed under the 
     system required by section 6705(c);
       ``(B) for establishing priorities among projects and for 
     the improvement and repair of education facilities, which 
     together shall form the basis for the distribution of 
     appropriated funds; and
       ``(C) including a 5-year plan for capital improvements.
       ``(2) The Assistant Secretary shall establish a program, 
     including the distribution of appropriated funds, for the 
     operation and maintenance of education facilities. Such 
     program shall include, but not be limited to--
       ``(A) a method of computing the amount necessary for each 
     education facility;
       ``(B) similar treatment of all Bureau funded schools;
       ``(C) a notice of an allocation of appropriated funds from 
     the Director of the Office directly to the appropriate 
     education line officers; and
       ``(D) a system for the conduct of routine preventive 
     maintenance.

     The appropriate education line officers shall make 
     arrangements for the maintenance of education facilities with 
     the local supervisors of the Bureau maintenance personnel who 
     are under the authority of the agency superintendent or area 
     directors, respectively. The local supervisors of Bureau 
     maintenance personnel shall take appropriate action to 
     implement the decisions made in this regard by the 
     appropriate education line officers, except that no funds 
     from this program may be authorized for expenditure unless 
     such appropriate education line officer is assured that the 
     necessary maintenance has been, or will be, provided in a 
     reasonable manner. Subject to the requirements of subsection 
     (b) of this section, nothing in this Act shall be construed 
     to require the provision of separate operations and 
     maintenance personnel for the Office.
       ``(3) The requirements of this subsection shall be 
     implemented no later than July 1, 1995.
       ``(e) Any other provision of law notwithstanding, the 
     Director shall promulgate guidelines for the establishment of 
     mechanisms for the acceptance of gifts and bequests for the 
     use of, and benefit of, particular schools or designated 
     Bureau operated education programs, including, where 
     appropriate, the establishment and administration of trust 
     funds. When a Bureau operated program is the beneficiary of 
     such a gift or bequest, the Director shall make provisions 
     for monitoring its use, and shall report to the appropriate 
     committees of Congress the amount and terms of such gift and 
     bequest, the use to which it is put, and any positive results 
     achieved by such action.
       ``(f) For the purpose of this section the term 
     ``functions'' includes powers and duties.

     ``SEC. 6707. ALLOTMENT FORMULA.

       ``(a) The Secretary shall establish, by regulation adopted 
     in accordance with section 6719, a formula for determining 
     the minimum annual amount of funds necessary to sustain each 
     Bureau funded school. In establishing such formula, the 
     Secretary shall consider--
       ``(1) the number of eligible Indian students served and 
     size of the school;
       ``(2) special cost factors, such as--
       ``(A) isolation of the school;
       ``(B) need for special staffing, transportation, or 
     educational programs;
       ``(C) food and housing costs;
       ``(D) maintenance and repair costs associated with the 
     physical condition of the educational facilities;
       ``(E) special transportation and other costs of isolated 
     and small schools;
       ``(F) the costs of boarding arrangements, where determined 
     necessary by a tribal governing body or designated local 
     school board;
       ``(G) costs associated with greater lengths of service by 
     educational personnel; and
       ``(H) special programs for gifted and talented students;
       ``(3) the cost of providing academic services which are at 
     least equivalent to those provided by public schools in the 
     State in which the school is located;
       ``(4) such other relevant factors as the Secretary 
     determines are appropriate.

     Upon the establishment of the standards required by sections 
     6701 and 6702 of this Act, the Secretary shall revise the 
     formula established under this subsection to reflect the cost 
     and funding standards so established. Prior to January 1, 
     1995, the Secretary shall review the formula established 
     under this section and shall take such steps as may be 
     necessary to increase the availability of counseling services 
     for students in off-reservation boarding schools and other 
     Bureau operated residential facilities. Concurrent with such 
     action, the Secretary shall review the standards established 
     under section 6701 of this title to be certain that adequate 
     provision is made for parental notification regarding, and 
     consent for, such counseling services.
       ``(b) Notwithstanding any other provisions of law, Federal 
     funds appropriated for the general local operation of Bureau 
     funded schools, shall be allotted pro rata in accordance with 
     the formula established under subsection (a).
       ``(c)(1) For fiscal year 1990, and for each subsequent 
     fiscal year, the Secretary shall adjust the formula 
     established under subsection (a) to--
       ``(A) use a weighted unit of 1.2 for each eligible Indian 
     student enrolled in the seventh and eighth grades of the 
     school in considering the number of eligible Indian students 
     served by the school;
       ``(B) consider a school with an enrollment of less than 50 
     eligible Indian students as having an average daily 
     attendance of 50 eligible Indian students for purposes of 
     implementing the adjustment factor for small schools; and
       ``(C) take into account the provision of residential 
     services on a less than 9-month basis at a school when the 
     school board and supervisor of the school determine that a 
     less than 9-month basis will be implemented for the school 
     year involved.
       ``(2)(A) The Secretary shall reserve for national school 
     board training 0.2 percent of the funds appropriated for each 
     fiscal year for distribution under this section. Such 
     training shall be conducted through the same organizations 
     through which, and in the same manner in which, the training 
     was conducted in fiscal year 1992. If the contract for such 
     training is not awarded before May 1 of each fiscal year, the 
     contract under which such training was provided for the 
     fiscal year preceding such fiscal year shall be renewed by 
     the Secretary for such fiscal year. The agenda for the 
     training sessions shall be established by the school boards 
     through their regional or national organizations.
       ``(B) For each year in which the Secretary uses a weighted 
     unit formula established under subsection (a) to fund Bureau 
     schools, a Bureau school which generates less than 168 
     weighted units shall receive an additional 2 weighted units 
     to defray school board activities.
       ``(C) From the funds allotted in accordance with the 
     formula established under subsection (a) for each Bureau 
     school, the local school board of such school may reserve an 
     amount which does not exceed the greater of--
       ``(i) $5,000, or
       ``(ii) the lesser of--
       ``(I) $15,000, or
       ``(II) 1 percent of such allotted funds,
     for school board activities for such school, including but 
     not limited to, and notwithstanding any other provision of 
     law, meeting expenses and the cost of membership in, and 
     support of, organizations engaged in activities on behalf of 
     Indian education.
       ``(3)(A) The Secretary shall adjust the formula established 
     under subsection (a) to use a weighted unit of 2.0 for each 
     eligible Indian student that--
       ``(i) is gifted and talented (as determined pursuant to 
     section 6204 of the Indian Education Act of 1988), and
       ``(ii) is enrolled in the school on a full-time basis,

     in considering the number of eligible Indian students served 
     by the school.
       ``(B) The adjustment required under subparagraph (A) shall 
     be used for the later of the following fiscal years and for 
     each fiscal year succeeding such later fiscal year:
       ``(i) the second fiscal year succeeding the fiscal year in 
     which the Secretary of Education makes the report required 
     under section 6204(c)(6)(B) of the Indian Education Act of 
     1988, or
       ``(ii) the first fiscal year for which an increase in the 
     amount of funds appropriated for allotment under this section 
     is designated by the law that appropriates such funds as the 
     amount necessary to implement such adjustment without 
     reducing allotments made under this section to any school.
       ``(d) The Secretary shall reserve from the funds available 
     for distribution for each fiscal year under this section an 
     amount which, in the aggregate, shall equal 1 percent of the 
     funds available for such purpose for that fiscal year. Such 
     funds shall be used, at the discretion of the Director of the 
     Office, to meet emergencies and unforeseen contingencies 
     affecting the education programs funded under this section. 
     Funds reserved under this subsection may only be expended for 
     education services or programs at a schoolsite (as defined in 
     section 5204(c)(2) of the Tribally Controlled Schools Act of 
     1988). Funds reserved under this subsection shall remain 
     available without fiscal year limitation until expended. 
     However, the aggregate amount available from all fiscal years 
     may not exceed 1 percent of the current year funds. Whenever 
     the Secretary makes funds available under this subsection, 
     the Secretary shall report such action to the appropriate 
     committees of Congress within the annual budget submission.
       ``(e) Supplemental appropriations enacted to meet increased 
     pay costs attributable to school level personnel shall be 
     distributed under this section.
       ``(f) In this section `eligible Indian student' means a 
     student who--
       ``(1) is a member of or is at least a \1/4\ degree Indian 
     blood descendant of a member of an Indian tribe which is 
     eligible for the special programs and services provided by 
     the United States through the Bureau of Indian Affairs to 
     Indians because of their status as Indians, and
       ``(2) resides on or near an Indian reservation or meets the 
     criteria for attendance at a Bureau off-reservation boarding 
     school.
       ``(g)(1) An eligible Indian student may not be charged 
     tuition for attendance at a Bureau or contract school. A 
     student attending a Bureau school under clause (2)(C) of this 
     subsection may not be charged tuition.
       ``(2) The Secretary may permit the attendance at a Bureau 
     school of a student who is not an eligible Indian student 
     if--
       ``(A) the Secretary determines that the student's 
     attendance will not adversely affect the school's program for 
     eligible Indian students because of cost, overcrowding, or 
     violation of standards,
       ``(B) the school board consents, and
       ``(C) the student is a dependent of a Bureau, Indian Health 
     Service, or tribal government employee who lives on or near 
     the school site, or
       ``(D) a tuition is paid for the student that is not more 
     than that charged by the nearest public school district for 
     out-of-district students. The tuition collected is in 
     addition to the school's allocation under this section.
       ``(3) The school board of a contract school or grant school 
     may permit students who are not eligible Indian students 
     under this subsection to attend its contract school or grant 
     school and any tuition collected for those students is in 
     addition to funding under this section.
       ``(h)(1) The Secretary shall conduct, through contact or 
     cooperative agreement with an entity having proven expertise 
     in the field of school finance, and after consultation with 
     tribes and national Indian organizations, a study to 
     determine the feasibility and desirability of changing the 
     method of financing for Bureau funded schools from the 
     weighted student unit formula method in effect on the date of 
     enactment of this Act to a school based budget system of 
     financing. The Assistant Secretary shall take such steps as 
     are necessary to immediately implement this provision.
       ``(2) For the purposes of this study, the term `school-
     based budget system' means a system based upon an initial 
     determination, at each school site, of the number of students 
     who shall be served at the site, the needs of those students, 
     the standards which will best meet those needs (including any 
     standards or conditions reflecting local community input and 
     the program developed under this part), the personnel profile 
     necessary to establish such program and the cost (determined 
     on an actual basis) of funding such a program. Such a system 
     would include procedures to aggregate the determinations for 
     each school site to determine the amount needed to fund all 
     Bureau-funded schools, to prepare a budget submission based 
     upon such aggregate and would provide for a mechanism for 
     distributing such sums as may be appropriated based upon the 
     determination at each school site.
       ``(3) No later than January 20, 1996, the Secretary shall 
     transmit to the Committees on Education and Labor and 
     Appropriations of the House of Representatives and the 
     Committees on Indian Affairs and Appropriations of the Senate 
     of the United States the study required under this 
     subsection, along with any views or comments of the Secretary 
     on such study.
       ``(i) Any other provision of law notwithstanding, at the 
     election of the school board made at any time during the 
     fiscal year, a portion equal to no more than 15 percent of 
     the funds allocated with respect to a school under this 
     section for any fiscal year shall remain available to the 
     school for expenditure without fiscal year limitation. The 
     Assistant Secretary shall take steps as may be necessary to 
     implement this provision immediately.
       ``(j) Tuition for the out-of-State students boarding at the 
     Richfield Dormitory in Richfield, Utah, who attend Sevier 
     County high schools in Richfield, Utah, may be paid from the 
     Indian School Equalization Program funds at a rate not to 
     exceed the amount per Weighted Student Unit for that year for 
     instruction. No additional administrative cost funds will be 
     added to the grant.

     ``SEC. 6708. ADMINISTRATIVE COST GRANTS.

       ``(a)(1) The Secretary shall, subject to the availability 
     of appropriated funds, provide grants to each tribe or tribal 
     organization operating a contract or grant school in the 
     amount determined under this section with respect to the 
     tribe or tribal organization for the purpose of paying the 
     administrative and indirect costs incurred in operating 
     contract schools in order to--
       ``(A) enable tribes and tribal organizations operating such 
     schools, without reducing direct program services to the 
     beneficiaries of the program, to provide all related 
     administrative overhead services and operations necessary to 
     meet the requirements of law and prudent management practice, 
     and
       ``(B) carry out other necessary support functions which 
     would otherwise be provided by the Secretary or other Federal 
     officers or employees, from resources other than direct 
     program funds, in support of comparable Bureau operated 
     programs.
       ``(2) Amounts appropriated to fund the grants provided 
     under this section shall be in addition to, and shall not 
     reduce, the amounts appropriated for the program being 
     administered by the contract schools.
       ``(b)(1) The amount of the grant provided to each tribe or 
     tribal organization under this section for each fiscal year 
     shall be determined by applying the administrative cost 
     percentage rate of the tribe or tribal organization to the 
     aggregate of the Bureau elementary and secondary functions 
     operated by the tribe or tribal organization for which funds 
     are received from or through the Bureau. The administrative 
     cost percentage rate determined under subsection (c) does not 
     apply to other programs operated by the tribe or tribal 
     organization.
       ``(2) The Secretary shall--
       ``(A) reduce the amount of the grant determined under 
     paragraph (1) to the extent that payments for administrative 
     costs are actually received by an Indian tribe or tribal 
     organization under any Federal education program included in 
     the direct cost base of the tribe or tribal organization, and
       ``(B) take such actions as may be necessary to be 
     reimbursed by any other department or agency of the Federal 
     Government for the portion of grants made under this section 
     for the costs of administering any program for Indians that 
     is funded by appropriations made to such other department or 
     agency.
       ``(c) For purposes of this section, the administrative cost 
     percentage rate for a contract or grant school for a fiscal 
     year is equal to the percentage determined by dividing--
       ``(1) the sum of--
       ``(A) the amount equal to--
       ``(i) the direct cost base of the tribe or tribal 
     organization for the fiscal year, multiplied by
       ``(ii) the minimum base rate, plus
       ``(B) the amount equal to--
       ``(i) the standard direct cost base, multiplied by
       ``(ii) the maximum base rate, by
       ``(2) the sum of--
       ``(A) the direct cost base of the tribe or tribal 
     organization for the fiscal year, plus
       ``(B) the standard direct cost base.
     The administrative cost percentage rate shall be determined 
     to the \1/100\ of a decimal point.
       ``(d)(1)(A) Funds received by a tribe or contract or grant 
     school as grants under this section for tribal elementary or 
     secondary educational programs may be combined by the tribe 
     or contract school into a single administrative cost account 
     without the necessity of maintaining separate funding source 
     accounting.
       ``(B) Indirect cost funds for programs at the school which 
     share common administrative services with tribal elementary 
     or secondary educational programs may be included in the 
     administrative cost account described in subparagraph (A).
       ``(2) Funds received as grants under this section with 
     respect to tribal elementary or secondary education programs 
     shall remain available to the contract or grant school 
     without fiscal year limitation and without diminishing the 
     amount of any grants otherwise payable to the school under 
     this section for any fiscal year beginning after the fiscal 
     year for which the grant is provided.
       ``(3) Funds received as grants under this section for 
     Bureau funded programs operated by a tribe or tribal 
     organization under a contract or agreement shall not be taken 
     into consideration for purposes of indirect cost 
     underrecovery and overrecovery determinations by any Federal 
     agency for any other funds, from whatever source derived.
       ``(4) In applying this section and section 106 of the 
     Indian Self-Determination and Education Assistance Act with 
     respect to an Indian tribe or tribal organization that--
       ``(A) receives funds under this section for administrative 
     costs incurred in operating a contract school or a school 
     operated under the Tribally Controlled Schools Act of 1988, 
     and
       ``(B) operates 1 or more other programs under a contract or 
     grant provided under the Indian Self-Determination and 
     Education Assistance Act,
     the Secretary shall ensure that the Indian tribe or tribal 
     organization is provided with the full amount of the 
     administrative costs, and of the indirect costs, that are 
     associated with operating the contract school, a school 
     operated under the Tribally Controlled Schools Act of 1988, 
     and all of such other programs, except that funds 
     appropriated for implementation of this section shall be used 
     only to supply the amount of the grant required to be 
     provided by this section.
       ``(e) For purposes of this section--
       ``(1)(A) The term `administrative cost' means the costs of 
     necessary administrative functions which--
       ``(i) the tribe or tribal organization incurs as a result 
     of operating a tribal elementary or secondary educational 
     program,
       ``(ii) are not customarily paid by comparable Bureau 
     operated programs out of direct program funds, and
       ``(iii) are either--
       ``(I) normally provided for comparable Bureau programs by 
     Federal officials using resources other than Bureau direct 
     program funds, or
       ``(II) are otherwise required of tribal self-determination 
     program operators by law or prudent management practice.
       ``(B) The term `administrative cost' may include, but is 
     not necessarily limited to--
       ``(i) contract (or other agreement) administration;
       ``(ii) executive, policy, and corporate leadership and 
     decisionmaking;
       ``(iii) program planning, development, and management;
       ``(iv) fiscal, personnel, property, and procurement 
     management;
       ``(v) related office services and record keeping; and
       ``(vi) costs of necessary insurance, auditing, legal, 
     safety and security services.
       ``(2) The term `Bureau elementary and secondary functions' 
     means--
       ``(A) all functions funded at Bureau schools by the Office 
     of Indian Education Programs of the Bureau;
       ``(B) all programs--
       ``(i) funds for which are appropriated to other agencies of 
     the Federal Government, and
       ``(ii) which are administered for the benefit of Indians 
     through Bureau schools; and
       ``(C) all operation, maintenance, and repair funds for 
     facilities and government quarters used in the operation or 
     support of elementary and secondary education functions for 
     the benefit of Indians, from whatever source derived.
       ``(3) The term `tribal elementary or secondary educational 
     programs' means all Bureau elementary and secondary 
     functions, together with any other Bureau programs or 
     portions of programs (excluding funds for social services 
     that are appropriated to agencies other than the Bureau and 
     are expended through the Bureau, funds for major 
     subcontracts, construction, and other major capital 
     expenditures, and unexpended funds carried over from prior 
     years) which share common administrative cost functions, that 
     are operated directly by a tribe or tribal organization under 
     a contract or agreement with the Bureau.
       ``(4)(A) Except as otherwise provided in this paragraph, 
     the direct cost base of a tribe or tribal organization for 
     the fiscal year is the aggregate direct cost program funding 
     for all tribal elementary or secondary educational programs 
     operated by the tribe or tribal organization during--
       ``(i) the second fiscal year preceding such fiscal year, or
       ``(ii) if such programs have not been operated by the tribe 
     or tribal organization during the 2 preceding fiscal years, 
     the first fiscal year preceding such fiscal year.
       ``(B) In the case of Bureau elementary or secondary 
     education functions which have not previously been operated 
     by a tribe or tribal organization under contract or agreement 
     with the Bureau, the direct cost base for the initial year 
     shall be the projected aggregate direct cost program funding 
     for all Bureau elementary and secondary functions to be 
     operated by the tribe or tribal organization during that 
     fiscal year.
       ``(5) The term `maximum base rate' means 50 percent.
       ``(6) The term `minimum base rate' means 11 percent.
       ``(7) The term `standard direct cost base' means $600,000.
       ``(f)(1) Upon the enactment of the Indian Education 
     Amendments of 1988, the Secretary shall--
       ``(A) conduct such studies as may be needed to establish an 
     empirical basis for determining relevant factors 
     substantially affecting the required administrative costs of 
     tribal elementary and secondary educational programs, using 
     the formula set forth in subsection (c), and
       ``(B) a study to determine--
       ``(i) a maximum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the smallest tribal elementary or secondary educational 
     programs,
       ``(ii) a minimum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the largest tribal elementary or secondary educational 
     programs, and
       ``(iii) a standard direct cost base which is the aggregate 
     direct cost funding level for which the percentage determined 
     under subsection (c) will--
       ``(I) be equal to the median between the maximum base rate 
     and the minimum base rate, and
       ``(II) ensure that the amount of the grants provided under 
     this section will provide adequate (but not excessive) 
     funding of the administrative costs of tribal elementary or 
     secondary educational programs closest to the size of the 
     program.
       ``(2) The studies required under paragraph (1) shall--
       ``(A) be conducted in full consultation (in accordance with 
     section 1130) with--
       ``(i) the tribes and tribal organizations that are affected 
     by the application of the formula set forth in subsection 
     (c), and
       ``(ii) all national and regional Indian organizations of 
     which such tribes and tribal organizations are typically 
     members;
       ``(B) be conducted on-site at a representative statistical 
     sample of the tribal elementary or secondary educational 
     programs under a contract entered into with a nationally 
     reputable public accounting and business consulting firm;
       ``(C) take into account the availability of skilled labor, 
     commodities, business and automatic data processing services, 
     related Indian preference and Indian control of education 
     requirements, and any other market factors found 
     substantially to affect the administrative costs and 
     efficiency of each such tribal elementary or secondary 
     educational program studied in order to assure that all 
     required administrative activities can reasonably be 
     delivered in a cost effective manner for each such program, 
     given an administrative cost allowance generated by the 
     values, percentages, or other factors found in the studies to 
     be relevant in such formula;
       ``(D) identify, and quantify in terms of percentages of 
     direct program costs, any general factors arising from 
     geographic isolation, or numbers of programs administered, 
     independent of program size factors used to compute a base 
     administrative cost percentage in such formula; and
       ``(E) identify any other incremental cost factors 
     substantially affecting the costs of required administrative 
     cost functions at any of the tribal elementary or secondary 
     educational programs studied and determine whether the 
     factors are of general applicability to other such programs, 
     and (if so) how they may effectively be incorporated into 
     such formula.
       ``(3) In carrying out the studies required under this 
     subsection, the Secretary shall obtain the input of, and 
     afford an opportunity to participate to, the Inspector 
     General of the Department of the Interior.
       ``(4) Determinations described in paragraph (2)(C) shall be 
     based on what is pragmatically possible to do at each 
     location studied, given prudent management practice, 
     irrespective of whether required administrative services were 
     actually or fully delivered at these sites, or other services 
     were delivered instead, during the period of the study.
       ``(5) Upon completion of the studies conducted under 
     paragraph (1), but in no case later than October 1, 1989, the 
     Secretary shall submit to the Congress a report on the 
     findings of the studies, together with determinations based 
     upon such findings that would affect the definitions of terms 
     used in the formula that is set forth in subsection (c).
       ``(6) The Secretary shall include in the Bureau's 
     justification for each appropriations request for each fiscal 
     year beginning after fiscal year 1989, a projection of the 
     overall costs associated with the formula set forth in 
     subsection (c) for all tribal elementary or secondary 
     educational programs which the Secretary expects to be funded 
     in the fiscal year for which the appropriations are sought.
       ``(7) For purposes of this subsection, the size of tribal 
     elementary or secondary educational programs is determined by 
     the aggregate direct cost program funding level for all 
     Bureau funded programs which share common administrative cost 
     functions.
       ``(g)(1) There are authorized to be appropriated for each 
     fiscal year such sums as may be necessary to carry out the 
     provisions of this section.
       ``(2) If the total amount of funds necessary to provide 
     grants to tribes and tribal organizations in the amounts 
     determined under subsection (b) for a fiscal year exceeds the 
     amount of funds appropriated to carry out this section for 
     such fiscal year, the Secretary shall reduce the amount of 
     each grant determined under subsection (b) for such fiscal 
     year by an amount that bears the same relationship to such 
     excess as the amount of such grant determined under 
     subsection (b) bears to the total of all grants determined 
     under subsection (b) for all tribes and tribal organizations 
     for such fiscal year.
       ``(h)(1) Notwithstanding any other provision of this 
     section, the amount of the grants provided under this section 
     for fiscal year 1989 shall--
       ``(A) in lieu of being determined under subsection (b), be 
     determined for each tribal elementary or secondary 
     educational program on the same basis that indirect costs 
     were determined for such programs for fiscal year 1988, and
       ``(B) be subject to the provisions of subsection (d).
       ``(2) Notwithstanding any other provision of this section, 
     the amount of the grant provided under this section for 
     fiscal year 1990 with respect to each tribal elementary and 
     secondary educational program that was operated by a tribe or 
     tribal organization in fiscal year 1989 shall be equal to--
       ``(A) if the amount of the grant determined under 
     subsection (b) for fiscal year 1990 with respect to such 
     program exceeds the amount received by the tribe or tribal 
     organization with respect to such program for administrative 
     costs for fiscal year 1988 (or fiscal year 1989 if such 
     program was not operated by the tribe or tribal organization 
     during fiscal year 1988), the sum of--
       ``(i) such amount received, plus
       ``(ii) \1/3\ of the excess of--
       ``(I) such amount determined under subsection (b), over
       ``(II) such amount received, or
       ``(B) if such amount received exceeds such amount 
     determined under subsection (b), the excess of--
       ``(i) such amount received, over
       ``(ii) an amount equal to \1/3\ of the excess of--
       ``(I) such amount received, over
       ``(II) such amount determined under subsection (b).
       ``(3) Notwithstanding any other provision of this section, 
     the amount of the grants provided under this section for 
     fiscal year 1991 with respect to each tribal elementary and 
     secondary educational program that was operated by a tribe or 
     tribal organization in fiscal year 1989 shall be equal to--
       ``(A) if the amount of the grant determined under 
     subsection (b) for fiscal year 1991 with respect to such 
     program exceeds the amount received by the tribe or tribal 
     organization with respect to such program for administrative 
     costs for fiscal year 1990, the sum of--
       ``(i) such amount received, plus
       ``(ii) \1/2\ of the excess of--
       ``(I) such amount determined under subsection (b), over
       ``(II) such amount received, or
       ``(B) if such amount received exceeds such amount 
     determined under subsection (b), the excess of--
       ``(i) such amount received, over
       ``(ii) an amount equal to \1/2\ of the excess of--
       ``(I) such amount received over,
       ``(II) such amount determined under subsection (b).
       ``(i) The provisions of this section shall also apply to 
     those schools operating under the Tribally Controlled Schools 
     Act of 1988.

     ``SEC. 6709. BUDGET PREPARATION AND SUBMISSION.

       ``(a) For each fiscal year beginning after October 1, 1994, 
     and ending before October 1, 1998, the Secretary shall enter 
     into an interagency agreement with the Secretary of Education 
     for the purpose of carrying out this section. The Secretary 
     shall take such actions as are necessary to transfer 
     information requested by the Secretary of Education or the 
     entity designated under subsection (b) of this section needed 
     to carry out this section in a timely and accurate fashion.
       ``(b) The Secretary of Education, through the National 
     Center for Education Statistics, shall prepare and submit to 
     Congress the study set forth in subsection (c) of this 
     section no later than January 20, 1995, and January 20 of 
     each of the next 3 succeeding years. The Secretary of 
     Education shall transmit the report directly and without 
     substantive amendment to the Secretary of the Interior, the 
     Assistant Secretary for Indian Affairs of the Department of 
     the Interior, and the Committees on Education and Labor and 
     Appropriations of the House of Representatives and the 
     Committees on Indian Affairs and Appropriations of the Senate 
     of the United States.
       ``(c)(1) The National Center for Educational Statistics 
     (hereinafter referred to as the `Center') shall prepare for 
     each of the fiscal years covered under subsection (a) of this 
     section a report on the amount needed to achieve academic and 
     residential programs set forth in this part for Bureau-funded 
     schools funded under section 6707. Such study shall be based 
     on (A) the standards developed and implemented for Bureau-
     funded schools under section 6701 and 6702 of this part or 
     such other standards as may apply to Bureau-funded contract 
     schools or schools funded under the Tribally Controlled 
     Schools Act of 1988, (B) the student count and 
     characteristics of such schools, as determined pursuant to 
     the formula developed and implemented pursuant to section 
     6707 of this part for the preceding academic year, adjusted 
     for any changes in student demographics which the Center may 
     project, (C) the employee statistics with respect to such 
     schools for the preceding fiscal year, and (D) such other 
     factors as the Center may set forth, including but not 
     limited to age or physical condition of the schools and 
     changes in isolation.
       ``(2) Each study shall include a total projected cost for 
     attaining the standards set forth under paragraph (1), and 
     shall presume compliance with those standards. Such study 
     shall also include a projection of the cost for meeting such 
     standards for each Bureau funded school. Such study shall 
     also include a report on any shortfall in the amount needed 
     to fund Bureau-funded schools, as determined by the study 
     conducted pursuant to this section and the appropriations 
     amount requested and enacted for the period covered by the 
     study.
       ``(d)(1) Within 24 months of the date of enactment of this 
     Act, the Secretary shall establish within the Office of 
     Indian Education Programs a Division of Budget Analysis 
     (hereinafter referred to as the `Division'). Such Division 
     shall be under the direct supervision and control of the 
     Director of the Office.
       ``(2) The Division shall have the capacity to conduct such 
     studies, surveys, or other activities as are necessary to 
     gather demographic information on Bureau-funded schools 
     (current and future) and project the amount necessary to 
     provide Indian students in such schools the educational 
     program set forth in this part.
       ``(3) The Division shall prepare projections on such 
     amounts, along with such other information as the Director of 
     the Office shall require, for each fiscal year beginning 
     after October 1, 1996. The Director of the Office and the 
     Assistant Secretary for Indian Affairs shall use such reports 
     when preparing their annual budget submissions.

     ``SEC. 6710. UNIFORM DIRECT FUNDING AND SUPPORT.

       ``(a)(1) Within six months after the date of enactment of 
     this Act, the Secretary shall establish, by regulation 
     adopted in accordance with section 6719, a system for the 
     direct funding and support of all Bureau-funded schools. Such 
     system shall allot funds, in accordance with section 6707. 
     Amounts appropriated for distribution under this section may 
     be made available under paragraph (2) or under paragraph (3), 
     as provided in the appropriation Act.
       ``(2)(A) For the purpose of affording adequate notice of 
     funding available pursuant to the allotments made by section 
     6707, amounts appropriated in an appropriation Act for any 
     fiscal year shall become available for obligation by the 
     affected schools on July 1 of the fiscal year in which they 
     are appropriated without further action by the Secretary, and 
     shall remain available for obligation through the succeeding 
     fiscal year.
       ``(B) The Secretary shall, on the basis of the amount 
     appropriated in accordance with this paragraph--
       ``(i) publish, on July 1 preceding the fiscal year for 
     which the funds are appropriated, allotments to each affected 
     school made under section 6707 of 85 percent of such 
     appropriation; and
       ``(ii) publish, no later than September 30 of such 
     preceding fiscal year, the allotments to be made under 
     section 6707 of the remaining 15 percent of such 
     appropriation, adjusted to reflect actual student attendance.
       ``(3) Notwithstanding any law or regulation, the supervisor 
     of a Bureau school may expend an aggregate of no more than 
     $35,000 of the amount allotted the school under section 6707 
     to acquire supplies and equipment for the school without 
     competitive bidding if--
       ``(A) the cost for any single item purchased does not 
     exceed $10,000;
       ``(B) the school board approves the procurement;
       ``(C) the supervisor certifies that the cost is fair and 
     reasonable;
       ``(D) the documents relating to the procurement executed by 
     the supervisor or other school staff cite this paragraph as 
     authority for the procurement; and
       ``(E) the transaction is documented in a journal maintained 
     at the school clearly identifying when the transaction 
     occurred, what was acquired and from whom, the prices paid, 
     the quantities acquired, and any other information the 
     supervisor or school board considers relevant.

     The Director shall be responsible for determining the 
     application of this paragraph, including the authorization of 
     specific individuals to carry out this authority, and shall 
     be responsible for the provision of guidelines on the use of 
     this authority and adequate training on such guidelines.
       ``(4) If a sequestration order issued under the Balanced 
     Budget and Emergency Deficit Control Act of 1985 reduces the 
     amount of funds available for allotment under section 6707 
     for any fiscal year by more than 7 percent of the amount of 
     funds available for allotment under such section during the 
     preceding fiscal year--
       ``(A) the Secretary may, notwithstanding any other 
     provision of law, use--
       ``(i) funds appropriated for the operation of any Bureau 
     school that is closed or consolidated, and
       ``(ii) funds appropriated for any program that has been 
     curtailed at any Bureau school,
     to fund allotments made under section 6707, and
       ``(B) the Secretary may waive the application of the 
     provisions of section 6701(h) with respect to the closure or 
     consolidation of a school, or the curtailment of a program at 
     a school, during such fiscal year if the funds described in 
     clauses (i) and (ii) of subparagraph (A) with respect to such 
     school are used to fund allotments made under section 6707 
     for such fiscal year.
       ``(b) In the case of all Bureau schools, allotted funds 
     shall be expended on the basis of local financial plans which 
     shall be prepared by the local school supervisor in active 
     consultation with the local school board for each school, and 
     the local school board for each school shall have the 
     authority to ratify, reject, or amend such financial plan, 
     and expenditures thereunder, and, on its own determination or 
     in response to the supervisor of the school, to revise such 
     financial plan to meet needs not foreseen at the time of 
     preparation of the financial plan. The supervisor shall 
     provide the appropriate union representative of the education 
     employees with copies of proposed draft financial plans and 
     all amendments or modifications thereto, at the same time 
     they are submitted to the local school board. The supervisor 
     of the school may appeal any such action of the local school 
     board to the appropriate education officer of the Bureau 
     agency by filing a written statement describing the action 
     and the reasons the supervisor believes such action should be 
     overturned. A copy of such statement shall be submitted to 
     the local school board and such board shall be afforded an 
     opportunity to respond, in writing, to such appeal. After 
     reviewing such written appeal and response, the appropriate 
     education officer may, for good cause, overturn the action of 
     the local school board. The appropriate education officer 
     shall transmit the determination of such appeal in the form 
     of a written opinion to such board and to such supervisor 
     identifying the reasons for overturning such action.
       ``(c) Funds for self-determination grants under section 
     103(a)(2) of the Indian Self-Determination and Education 
     Assistance Act shall not be used for providing technical 
     assistance and training in the field of education by the 
     Bureau unless such services are provided in accordance with a 
     plan, agreed to by the tribe or tribes affected and the 
     Bureau, under which control of education programs is intended 
     to be transferred to such tribe or tribes within a specific 
     period of time negotiated under such agreement. The Secretary 
     may approve applications for funding tribal divisions of 
     education and the development of tribal codes of education 
     from funds appropriated pursuant to section 104(a) of such 
     Act.
       ``(d) In the exercise of its authority under this section, 
     a local school board may request technical assistance and 
     training from the Secretary, and he shall, to the greatest 
     extent possible, provide such services, and make appropriate 
     provisions in the budget of the Office for such services.
       ``(e)(1) A financial plan under subsection (b) for a school 
     may include, at the discretion of the local administrator and 
     the school board of such school, a provision for a summer 
     program of academic and support services for students of the 
     school. Any such program may include activities related to 
     the prevention of alcohol and substance abuse. The Assistant 
     Secretary of Indian Affairs shall provide for the utilization 
     of any such school facility during any summer in which such 
     utilization is requested.
       ``(2) Notwithstanding any other provision of law, funds 
     authorized under the Act of April 16, 1934 (25 U.S.C. 452 et 
     seq.) and the Indian Education Act may be used to augment the 
     services provided in each summer program at the option, and 
     under the control, of the tribe or Indian controlled school 
     receiving such funds.
       ``(3) The Assistant Secretary of Indian Affairs, acting 
     through the Director of the Office of Indian Education 
     Programs, shall provide technical assistance and coordination 
     for any program described in paragraph (1) and shall, to the 
     extent possible, encourage the coordination of such programs 
     with any other summer programs that might benefit Indian 
     youth, regardless of the funding source or administrative 
     entity of any such program.
       ``(f)(1) From funds allotted to a Bureau school under 
     section 6707, the Secretary shall, if specifically requested 
     by the tribal governing body (within the meaning of section 
     6701(k)), implement any cooperative agreement entered into 
     between the tribe, the Bureau school board, and the local 
     public school district which meets the requirements of 
     paragraph (2) and involves the school. The tribe, the Bureau 
     school board, and the local public school district shall 
     determine the terms of the agreement. Such agreement may 
     encompass coordination of all or any part of the following:
       ``(A) Academic program and curriculum, unless the Bureau 
     school is currently accredited by a State or regional 
     accrediting entity and would not continue to be so 
     accredited.
       ``(B) Support services, including procurement and 
     facilities maintenance.
       ``(C) Transportation.
       ``(2) Each agreement entered into pursuant to the authority 
     provided in paragraph (1) shall confer a benefit upon the 
     Bureau school commensurate with the burden assumed, though 
     this requirement shall not be construed so as to require 
     equal expenditures or an exchange of similar services.
       ``(g) Any other provision of law notwithstanding, where 
     there is agreement on such action between the superintendent 
     and school board of a B.I.A. funded school, the product or 
     result of a project conducted in whole or in major part by a 
     student may be given to that student upon the completion of 
     said project.
       ``(h) Notwithstanding any other provision of law, funds 
     received by Bureau funded schools under this title shall not 
     be considered Federal funds for purposes of meeting a match 
     requirement in any Federal program.

     ``SEC. 6711. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

       ``(a) It shall be the policy of the the Secretary and the 
     Bureau, in carrying out the functions of the Bureau, to 
     facilitate Indian control of Indian affairs in all matters 
     relating to education.
       ``(b)(1) All actions under this Act shall be done with 
     active consultation with tribes.
       ``(2) The consultation required under paragraph (1) means a 
     process involving the open discussion and joint deliberation 
     of all options with respect to potential issues or changes 
     between the Bureau and all interested parties. During such 
     discussions and joint deliberations, interested parties 
     (including, but not limited to, tribes and school officials) 
     shall be given an opportunity to present issues including 
     proposals regarding changes in current practices or programs 
     which will be considered for future action by the Bureau. All 
     interested parties shall be given an opportunity to 
     participate and discuss the options presented or to present 
     other alternatives, with the views and concerns of the 
     interested parties given effect unless the Secretary 
     determines, from information educed or presented by the 
     interested parties during 1 or more of the discussions and 
     deliberations, that there is a substantial reason for another 
     course of action. The Secretary shall submit to any Member of 
     Congress, within 18 days of the receipt of a written request 
     by such Member, a written explanation of any decision made by 
     the Secretary which is not consistent with the views of the 
     interested parties.

     ``SEC. 6712. EDUCATION PERSONNEL.

       ``(a)(1) Chapter 51, subchapter III of chapter 53, and 
     chapter 63 of title 5, United States Code, relating to leave, 
     pay, and classification, and the sections relating to the 
     appointment, promotion and removal of civil service 
     employees, shall not apply to educators or to education 
     positions (as defined in subsection (n)).
       ``(2) Paragraph (1) shall take effect 1 year after the date 
     of enactment of this Act.
       ``(b) Not later than the effective date of subsection 
     (a)(2), the Secretary shall prescribe regulations to carry 
     out this section. Such regulations shall govern--
       ``(1) the establishment of education positions,
       ``(2) the establishment of qualifications for educators,
       ``(3) the fixing of basic compensation for educators and 
     education positions,
       ``(4) the appointment of educators,
       ``(5) the discharge of educators,
       ``(6) the entitlement of educators to compensation,
       ``(7) the payment of compensation to educators,
       ``(8) the conditions of employment of educators,
       ``(9) the length of the school year applicable to education 
     positions described in subsection (n)(1)(A),
       ``(10) the leave system for educators, and
       ``(11) such other matters as may be appropriate.
       ``(c)(1) In prescribing regulations to govern the 
     qualifications of educators, the Secretary shall require--
       ``(A)(i) that lists of qualified and interviewed applicants 
     for education positions be maintained in each agency and area 
     office of the Bureau from among individuals who have applied 
     at the agency or area level for an education position or who 
     have applied at the national level and have indicated in such 
     application an interest in working in certain areas or 
     agencies; and
       ``(ii) that a list of qualified and interviewed applicants 
     for education positions be maintained in the Office from 
     among individuals who have applied at the national level for 
     an education position and who have expressed interest in 
     working in an education position anywhere in the United 
     States;
       ``(B) that a local school board shall have the authority to 
     waive on a case-by-case basis, any formal education or degree 
     qualifications established by regulation pursuant to 
     subsection (b)(2), in order for a tribal member to be hired 
     in an education position to teach courses on tribal culture 
     and language and that subject to subsection (d)(2)(A), a 
     determination by a school board that such a person be hired 
     shall be followed by the supervisor; and
       ``(C) that it shall not be a prerequisite to the employment 
     of an individual in an education position at the local level 
     that such individual's name appear on the national list 
     maintained pursuant to subsection (c)(1)(A)(ii) or that such 
     individual has applied at the national level for an education 
     position.
       ``(2) The Secretary may authorize the temporary employment 
     in an education position of an individual who has not met the 
     certification standards established pursuant to regulations, 
     if the Secretary determines that failure to do so would 
     result in that position remaining vacant.
       ``(d)(1) In prescribing regulations to govern the 
     appointment of educators, the Secretary shall require--
       ``(A)(i) that educators employed in a school (other than 
     the supervisor of the school) shall be hired by the 
     supervisor of the school unless there are no qualified 
     applicants available, in which case the vacant position shall 
     be filed at the national level from the list maintained 
     pursuant to subsection (c)(1)(A)(ii).
       ``(ii) each school supervisor shall be hired by the 
     superintendent for education of the agency office of the 
     Bureau in which the school is located, and
       ``(iii) educators employed in an agency office of the 
     Bureau shall be hired by the superintendent for education of 
     the agency office;
       ``(B) that before an individual is employed in an education 
     position in a school by the supervisor of a school (or, with 
     respect to the position of supervisor, by the appropriate 
     agency superintendent for education), the local school board 
     for the school shall be consulted, and that subject to 
     subsection (d)(2), a determination by the school board that 
     such individual should or should not be so employed shall be 
     followed by the supervisor (or with respect to the position 
     of supervisor, by the agency superintendent for education); 
     and
       ``(C) that before an individual may be employed in an 
     education position at the agency level, the appropriate 
     agency school board shall be consulted, and that, subject to 
     subsection (d)(3), a determination by such school board that 
     such individual should or should not be employed shall be 
     followed by the agency superintendent for education.
       ``(2)(A) The supervisor of a school may appeal to the 
     appropriate agency superintendent for education any 
     determination by the local school board for the school that 
     an individual be employed, or not be employed, in an 
     education position in the school (other than that of 
     supervisor) by filing a written statement describing the 
     determination and the reasons the supervisor believes such 
     determination should be overturned. A copy of such statement 
     shall be submitted to the local school board and such board 
     shall be afforded an opportunity to respond, in writing, to 
     such appeal. After reviewing such written appeal and 
     response, the superintendent may, for good cause, overturn 
     the determination of the local school board. The 
     superintendent shall transmit the determination of such 
     appeal in the form of a written opinion to such board and to 
     such supervisor identifying the reasons for overturning such 
     determination.
       ``(B) The superintendent for education of an agency office 
     of the Bureau may appeal to the Director of the Office any 
     determination by the local school board for the school that 
     an individual be employed, or not be employed, as the 
     supervisor of a school by filing a written statement 
     describing the determination and the reasons the supervisor 
     believes such determination should be overturned. A copy of 
     such statement shall be submitted to the local school board 
     and such board shall be afforded an opportunity to respond, 
     in writing, to such appeal. After reviewing such written 
     appeal and response, the Director may, for good cause, 
     overturn the determination of the local school board. The 
     Director shall transmit the determination of such appeal in 
     the form of a written opinion to such board and to such 
     superintendent identifying the reasons for overturning such 
     determination.
       ``(3) The superintendent for education of an agency office 
     of the Bureau may appeal to the Director of the Office any 
     determination by the agency school board that an individual 
     be employed, or not be employed, in an education position in 
     such agency office by filing a written statement describing 
     the determination and the reasons the supervisor believes 
     such determination should be overturned. A copy of such 
     statement shall be submitted to the agency school board and 
     such board shall be afforded an opportunity to respond, in 
     writing, to such appeal. After reviewing such written appeal 
     and response, the Director may, for good cause, overturn the 
     determination of the agency school board. The Director shall 
     transmit the determination of such appeal in the form of a 
     written opinion to such board and to such superintendent 
     identifying the reasons for overturning such determination.
       ``(4) Any individual who applies at the local level for an 
     education position shall state on such individual's 
     application whether or not such individual has applied at the 
     national level for an education position in the Bureau. If 
     such individual is employed at the local level, such 
     individual's name shall immediately be forwarded to the 
     Secretary, who shall, as soon as possible but in no event in 
     more than thirty days, ascertain the accuracy of the 
     statement made by such individual pursuant to the first 
     sentence of this subparagraph. If the individual's statement 
     is found to have been false, such individual, at the 
     Secretary's discretion, may be disciplined or discharged. If 
     the individual had applied at the national level for an 
     education position in the Bureau, if the appointment of such 
     individual at the local level shall be conditional for a 
     period of ninety days, during which period the Secretary may 
     appoint a more qualified individual (as determined by the 
     Secretary) from the list maintained at the national level 
     pursuant to subsection (c)(1)(A)(ii) to the position to which 
     such individual was appointed.
       ``(5) Except as expressly provided, nothing in this section 
     shall be construed as conferring upon local school boards, 
     authority over, or control of, educators.
       ``(e)(1) In prescribing regulations to govern the discharge 
     and conditions of employment of educators, the Secretary 
     shall require--
       ``(A) that procedures be established for the rapid and 
     equitable resolution of grievances of educators;
       ``(B) that no educator may be discharged without notice of 
     the reasons therefore and opportunity for a hearing under 
     procedures that comport with the requirements of due process; 
     and
       ``(C) educators employed in Bureau schools shall be 
     notified sixty days prior to the end of the school year 
     whether their employment contract will be renewed for the 
     coming year.
       ``(2) The supervisor of a Bureau school may discharge 
     (subject to procedures established under paragraph (1)(B) for 
     cause (as determined under regulations prescribed by the 
     Secretary) any educator employed in such school. Upon giving 
     notice of proposed discharge to an educator, the supervisor 
     involved shall immediately notify the local school board for 
     the school of such action. A determination by the local 
     school board that such educator shall not be discharged shall 
     be followed by the supervisor. The supervisor shall have the 
     right to appeal such action to the superintendent for 
     education of the appropriate agency office of the Bureau. 
     Upon such an appeal, the agency superintendent for education 
     may, for good cause and in writing to the local school board, 
     overturn the determination of the local school board with 
     respect to the employment of such individual.
       ``(3) Each local school board for a Bureau school shall 
     have the right (A) to recommend to the supervisor of such 
     school that an educator employed in the school be discharged, 
     and (B) to recommend to the superintendent of education of 
     the appropriate agency office of the Bureau and to the 
     Director of the Office, that the supervisor of the school be 
     discharged.
       ``(f)(1) Notwithstanding any provision of the Indian 
     preference laws, such laws shall not apply in the case of any 
     personnel action within the purview of this section 
     respecting an applicant or employee not entitled to Indian 
     preference if each tribal organization concerned grants, in 
     writing, a waiver of the application of such laws with 
     respect to such personnel action, where such a waiver is in 
     writing deemed to be a necessity by the tribal organization, 
     except that this shall in no way relieve the Bureau of its 
     responsibility to issue timely and adequate announcements and 
     advertisements concerning any such personnel action if it is 
     intended to fill a vacancy (no matter how such vacancy is 
     created).
       ``(2) For purposes of this subsection, the term `tribal 
     organization' means--
       ``(A) the recognized governing body of any Indian tribe, 
     band, nation, pueblo, or other organized community, including 
     a Native village (as defined in section 3(c) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(c); 85 Stat. 
     688)); or
       ``(B) in connection with any personnel action referred to 
     in this subsection, any local school board as defined in 
     section 1139, and which has been delegated by such governing 
     body the authority to grant a waiver under such subsection 
     with respect to such personnel action.
       ``(3) The term `Indian preference laws' means section 12 of 
     the Act of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any 
     other provision of law granting a preference to Indians in 
     promotions and other personnel actions, except that such term 
     shall not be considered to include section 7(b) of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450e(b); 88 Stat. 2295).
       ``(g) Subject to the authority of the Civil Service 
     Commission to determine finally the applicability of chapter 
     51 of title 5, United States Code, to specific positions and 
     employees in the executive branch, the Secretary shall 
     determine in accordance with subsection (a)(1) the 
     applicability or inapplicability of such chapter to positions 
     and employees in the Bureau.
       ``(h)(1)(A) Except as otherwise provided in this section, 
     the Secretary shall fix the basic compensation or annual 
     salary rate for educators and education positions at rates 
     comparable to the rates in effect under the General Schedule 
     for individuals with comparable qualifications, and holding 
     comparable positions, to whom chapter 51 is applicable or on 
     the basis of the Federal Wage System schedule in effect for 
     the locality.
       ``(B) By no later than October 28, 1988, the Secretary 
     shall establish, for contracts for the 1991-1992 academic 
     year, and thereafter, the rates of basic compensation, or 
     annual salary rates, for the positions of teachers and 
     counselors (including dormitory counselors and home-living 
     counselors) at the rates of basic compensation applicable (on 
     the date of enactment of such Amendments and thereafter) to 
     comparable positions in overseas schools under the Defense 
     Department Overseas Teachers Pay and Personnel Practices Act, 
     unless the Secretary establishes such rates within such 6-
     month period through collective bargaining with the 
     appropriate union representative of the education employees 
     that is recognized by the Bureau.
       ``(C) By no later than October 28, 1988, the Secretary 
     shall establish the rates of basic compensation or annual 
     salary rates for the positions of teachers and counselors 
     (including dormitory and home-living counselors)--
       ``(i) for contracts for the 1989-1990 academic year, at 
     rates which reflect \1/3\ of the changes in the rates 
     applicable to such positions on April 28, 1988, that must be 
     made to conform the rates to the rates established under 
     subparagraph (B) for such positions for contracts for the 
     1991-1992 academic year, and
       ``(ii) for contracts for the 1990-1991 academic year, at 
     rates which reflect \2/3\ of such changes.
       ``(D) The establishment of rates of basic compensation and 
     annual salary rates by the Secretary under subparagraphs (B) 
     and (C) shall not preclude the use of regulations and 
     procedures used by the Bureau before the enactment of the 
     Indian Education Amendments of 1988 in making determinations 
     regarding promotions and advancements through levels of pay 
     that are based on the merit, education, experience, or tenure 
     of the educator.
       ``(E)(i) Except as provided in clause (ii), the 
     establishment of rates of basic compensation and annual 
     salary rates by the Secretary under subparagraphs (B) and (C) 
     shall not affect the continued employment or compensation of 
     an educator who was employed in an education position on 
     October 31, 1979, and who did not make the election under 
     paragraph (2) of subsection (o).
       ``(ii) Any individual described in clause (i) may, during 
     the 5-year period beginning on the date on which the 
     Secretary establishes rates of basic compensation and annual 
     salary rates under subparagraph (B), make an irrevocable 
     election to have the basic compensation rate or annual salary 
     rate of such individual determined in accordance with this 
     paragraph.
       ``(iii) If an individual makes the election described in 
     clause (ii), such election shall not affect the application 
     to the individual of the same retirement system and leave 
     system that applies to the individual during the fiscal year 
     preceding the fiscal year in which such election is made, 
     except that the individual must use leave accrued during a 
     contract period by the end of that contract period.
       ``(F) The President shall include with the budget submitted 
     under section 1105 of title 31, United States Code, for each 
     of the fiscal years 1990, 1991, and 1992 a written statement 
     by the Secretary which specifies--
       ``(i) the amount of funds the Secretary needs to pay basic 
     compensation and the annual salaries of educators for such 
     fiscal year, and
       ``(ii) the amount of funds the Secretary estimates would be 
     needed to pay basic compensation and the annual salaries of 
     educators for such fiscal year if the amendments made to this 
     paragraph by the Indian Education Amendments of 1988 had not 
     been enacted.
       ``(2) Each educator employed in an education position in 
     Alaska shall be paid a cost-of-living allowance equal to 25 
     per centum of the rate of basic compensation to which such 
     educator is entitled.
       ``(3)(A) The Secretary may pay a postdifferential not to 
     exceed 25 per centum of the rate of basic compensation, on 
     the basis of conditions of environment or work which warrant 
     additional pay as a recruitment and retention incentive.
       ``(B)(i) Upon the request of the supervisor and the local 
     school board of a Bureau school, the Secretary shall grant 
     the supervisor of the school authorization to provide 1 or 
     more post differentials under subparagraph (A) unless the 
     Secretary determines for clear and convincing reasons (and 
     advises the board in writing of those reasons) that certain 
     of the requested post differentials should be disapproved or 
     decreased because there is no disparity of compensation for 
     the involved employees or positions in the Bureau school, as 
     compared with the nearest public school, that is either--
       ``(I) at least 5 percent, or
       ``(II) less than 5 percent and affects the recruitment or 
     retention of employees at the school.

     The request under this subparagraph shall be deemed granted 
     as requested at the end of the 60th day after the request is 
     received in the Central Office of the Bureau unless before 
     that time it is approved, approved with modification, or 
     disapproved by the Secretary.
       ``(ii) The Secretary or the supervisor of a Bureau school 
     may discontinue or decrease a post differential authorized by 
     reason of this subparagraph at the beginning of a school year 
     after either--
       ``(I) the local school board requests that it be 
     discontinued or decreased, or
       ``(II) the Secretary or the supervisor determines for clear 
     and convincing reasons (and advises the board in writing of 
     those reasons) that there is no disparity of compensation 
     that would affect the recruitment or retention of employees 
     at the school after the differential is discontinued or 
     decreased.
       ``(iii) On or before February 1 of each year, the Secretary 
     shall submit to Congress a report describing the requests and 
     grants of authority under this subparagraph during the 
     previous fiscal year and listing the positions contracted 
     under those grants of authority.
       ``(i) Any individual--
       ``(1) who on the date of enactment of this Act is holding a 
     position which is determined under subsection (f) to be an 
     education position and who elects under subsection (o)(2) to 
     be covered under the provisions of this section, or
       ``(2) who is an employee of the Federal Government or the 
     municipal government of the District of Columbia and is 
     transferred, promoted, or reappointed, without break in 
     service, from a position under a different leave system to an 
     education position,

     shall be credited for the purpose of the leave system 
     provided under regulations prescribed pursuant to subsection 
     (b)(10), with the annual and sick leave to his credit 
     immediately before the effective date of such election, 
     transfer, promotion, or reappointment.
       ``(j) Upon termination of employment with the Bureau, any 
     annual leave remaining to the credit of an individual within 
     the purview of this section shall be liquidated in accordance 
     with sections 5551(a) and 6306 of title 5, United States 
     Code, except that leave earned or accrued under regulations 
     prescribed pursuant to subsection (b)(10) shall not be so 
     liquidated.
       ``(k) In the case of any educator who is transferred, 
     promoted, or reappointed, without break in service, to a 
     position in the Federal Government under a different leave 
     system, any remaining leave to the credit of such person 
     earned or credited under the regulations prescribed pursuant 
     to subsection (b)(10) shall be transferred to his credit in 
     the employing agency on an adjusted basis in accordance with 
     regulations which shall be prescribed by the Civil Service 
     Commission.
       ``(l) An educator who voluntarily terminates employment 
     with the Bureau before the expiration of the existing 
     employment contract between such educator and the Bureau 
     shall not be eligible to be employed in another education 
     position in the Bureau during the remainder of the term of 
     such contract.
       ``(m) In the case of any educator employed in an education 
     position described in subsection (n)(1)(A) who--
       ``(1) is employed at the close of a school year,
       ``(2) agrees in writing to serve in such a position for the 
     next school year, and
       ``(3) is employed in another position during the recess 
     period immediately preceding such next school year, or during 
     such recess period receives additional compensation referred 
     to in subsection (g)(2) or (g)(3), section 5533 of title 5, 
     United States Code, relating to dual compensation, shall not 
     apply to such educator by reason of any such employment 
     during a recess period for any such receipt of additional 
     compensation.
       ``(n) For the purpose of this section--
       ``(1) The term ``education position'' means a position in 
     the Bureau the duties and responsibilities of which--
       ``(A) are performed on a school-year basis principally in a 
     Bureau school and involve--
       ``(i) classroom or other instruction or the supervision or 
     direction of classroom or other instruction;
       ``(ii) any activity (other than teaching) which requires 
     academic credits in educational theory and practice equal to 
     the academic credits in educational theory and practice 
     required for a bachelor's degree in education from an 
     accredited institution of higher education;
       ``(iii) any activity in or related to the field of 
     education notwithstanding that academic credits in 
     educational theory and practice are not a formal requirement 
     for the conduct of such activity; or
       ``(iv) support services at, or associated with, the site of 
     the school; or
       ``(B) are performed at the agency level of the Bureau and 
     involve the implementation of education-related programs 
     other than the position for agency superintendent for 
     education.
       ``(2) The term ``educator'' means an individual whose 
     services are required, or who is employed, in an education 
     position.
       ``(o)(1) Subsections (a) through (n) of this section apply 
     to an educator hired after November 1, 1979 (and to an 
     educator who elected application under paragraph (2)) and to 
     the position in which such individual is employed. Subject to 
     paragraph (2), the enactment of this Act shall not affect the 
     continued employment of an individual employed on October 31, 
     1979 in an education position, or such individual's right to 
     receive the compensation attached to such position.
       ``(2) Any individual employed in an education position on 
     October 31, 1979, may, not later than November 1, 1983, make 
     an irrevocable election to be covered under the provisions of 
     subsection (a) through (n) of this section.
       ``(p)(1) An educator who was employed in an education 
     position on October 31, 1979, who was eligible to make an 
     election under paragraph (2) of subsection (o) at that time, 
     and who did not make the election under paragraph (2) of 
     subsection (o), may not be placed on furlough (within the 
     meaning of section 7511(a)(5) of title 5, United States Code) 
     without the consent of such educator for an aggregate of more 
     than 4 weeks within the same calendar year, unless--
       ``(A) the supervisor, with the approval of the local school 
     board (or of the agency superintendent for education upon 
     appeal under paragraph (2)), of the Bureau school at which 
     such educator provides services determines that a longer 
     period of furlough is necessary due to an insufficient amount 
     of funds available for personnel compensation at such school, 
     as determined under the financial plan process as determined 
     under section 1129(b) of this Act, and
       ``(B) all educators (other than principals and clerical 
     employees) providing services at such Bureau school are 
     placed on furloughs of equal length, except that the 
     supervisor, with the approval of the local school board (or 
     of the agency superintendent for education upon appeal under 
     paragraph (2)), may continue 1 or more educators in pay 
     status if (i) they are needed to operate summer programs, 
     attend summer training sessions, or participate in special 
     activities including (but not limited to) curriculum 
     development committees, and (ii) they are selected based upon 
     their qualifications, after public notice of the minimum 
     qualifications reasonably necessary and without 
     discrimination as to supervisory, nonsupervisory, or other 
     status of the educators who apply.
       ``(2) The supervisor of a Bureau school may appeal to the 
     appropriate agency superintendent for education any refusal 
     by the local school board to approve any determination of the 
     supervisor that is described in paragraph (1)(A) by filing a 
     written statement describing the determination and the 
     reasons the supervisor believes such determination should be 
     approved. A copy of such statement shall be submitted to the 
     local school board and such board shall be afforded an 
     opportunity to respond, in writing, to such appeal. After 
     reviewing such written appeal and response, the 
     superintendent may, for good cause, approve the determination 
     of the supervisor. The superintendent shall transmit the 
     determination of such appeal in the form of a written opinion 
     to such local school board and to the supervisor identifying 
     the reasons for approving such determination.

     ``SEC. 6713. MANAGEMENT INFORMATION SYSTEM.

       ``The Secretary shall establish within the Office, within 1 
     year after the date of the enactment of the Indian Education 
     Amendments of 1984, a computerized management information 
     system, which shall provide information to the Office. Such 
     information shall include but shall not be limited to--
       ``(1) student enrollment;
       ``(2) curriculum;
       ``(3) staff;
       ``(4) facilities;
       ``(5) community demographics;
       ``(6) student assessment information; and
       ``(7) information on the administrative and program costs 
     attributable to each Bureau program, divided into discreet 
     elements.

     ``SEC. 6714. BUREAU EDUCATION POLICIES.

       ``Within 180 days of the date of enactment of this Act, the 
     Secretary shall develop, publish in the Federal Register, and 
     submit to all agency and area offices of the Bureau, all 
     tribal governments, and the appropriate committees of the 
     Congress, a draft set of education policies, procedures, and 
     practices for education-related action of the Bureau. The 
     Secretary shall, within 1 year of the date of enactment of 
     this Act, provide that such uniform policies, procedures, and 
     practices shall be finalized and promulgated. Thereafter, 
     such policies, procedures, and practices and their periodic 
     revisions, shall serve as the foundation for future Bureau 
     actions in education.

     ``SEC. 6715. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

       ``The Secretary shall cause the various divisions of the 
     Bureau to formulate uniform procedures and practices with 
     respect to such concerns of those divisions as relate to 
     education, and shall report such practices and procedures to 
     the Congress.

     ``SEC. 6716. RECRUITMENT OF INDIAN EDUCATORS.

       ``The Secretary shall institute a policy for the 
     recruitment of qualified Indian educators and a detailed plan 
     to promote employees from within the Bureau. Such plan shall 
     include opportunities for acquiring work experience prior to 
     actual work assignment.

     ``SEC. 6717. ANNUAL REPORT.

       ``(a) The Secretary shall submit to each appropriate 
     committee of the Congress a detailed annual report on the 
     state of education within the Bureau and any problems 
     encountered in the field of education during the year. Such 
     report shall contain suggestions for improving the Bureau 
     educational system and increasing local Indian control of 
     such system. Such report shall also include the current 
     status of tribally controlled community colleges. The annual 
     budget submission for the Bureau's education programs shall, 
     among other things, include (1) information on the funds 
     provided previously private schools under section 208 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 458d; 88 Stat. 2216) and recommendations with respect 
     to the future use of such funds; (2) the needs and costs of 
     operation and maintenance of tribally controlled community 
     colleges eligible for assistance under the Tribally 
     Controlled Community College Assistance Act of 1978 (92 Stat. 
     1325; 25 U.S.C. 1801 et seq.) and recommendations with 
     respect to meeting such needs and costs; and (3) the plans 
     required by section 1121(f), and 1122(c); and 1125(b) of this 
     Act (25 U.S.C. 2001(f), 2002(c), and 2005(b)).
       ``(b) The Inspector General of the Department of the 
     Interior shall establish a system to ensure that financial 
     and compliance audits are conducted of each Bureau school at 
     least once in every three years. Audits of Bureau schools 
     shall be based upon the extent to which such school has 
     complied with its local financial plan under section 1129.

     ``SEC. 6718. RIGHTS OF INDIAN STUDENTS.

       ``Within six months of the date of enactment of this Act, 
     the Secretary shall prescribe such rules and regulations as 
     are necessary to insure the constitutional and civil rights 
     of Indian students attending Bureau schools, including, but 
     not limited to, their right to privacy under the laws of the 
     United States, their right to freedom of religion and 
     expression and their right to due process in connection with 
     disciplinary actions, suspensions, and expulsions.

     ``SEC. 6719. REGULATIONS.

       ``Regulations required to be adopted under sections 6706 
     through 6718 and any revisions of the standards developed 
     under section 6701 or 6702 of this Act shall be deemed rules 
     of general applicability prescribed for the administration of 
     an applicable program for the purposes of section 431 of the 
     General Education Provisions Act and shall be promulgated, 
     submitted for congressional review, and take effect in 
     accordance with the provisions of such section. Such 
     regulations shall contain, immediately following each 
     substantive provision of such regulations, citations to the 
     particular section or sections of statutory law or other 
     legal authority upon which such provision is based.

     ``SEC. 6720. DEFINITIONS.

       ``For the purpose of this part--
       ``(1) the term `agency school board' means a body, the 
     members of which are appointed by the school boards of the 
     schools located within such agency, and the number of such 
     members shall be determined by the Secretary in consultation 
     with the affected tribes, except that, in agencies serving a 
     single school, the school board of such school shall fulfill 
     these duties;
       ``(2) the term `Bureau' means the Bureau of Indian Affairs 
     of the Department of the Interior;
       ``(3) the term `Bureau funded school' means--
       ``(A) a Bureau school;
       ``(B) a contract school; or
       ``(C) a school for which assistance is provided under the 
     Tribally Controlled Schools Act of 1988;
       ``(4) the term `Bureau school' means a Bureau operated 
     elementary or secondary day or boarding school or a Bureau 
     operated dormitory for students attending a school other than 
     a Bureau school;
       ``(5) the term `contract school' means an elementary or 
     secondary school or a dormitory which receives financial 
     assistance for its operation under a contract or agreement 
     with the Bureau under section 102, 103(a), or 208 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450f, 450h(a), and 458d);
       ``(6) the term `education line officer' means education 
     personnel under the supervision of the Director, whether 
     located in central, area, or agency offices;
       ``(7) the term `financial plan' means a plan of services to 
     be provided by each Bureau school;
       ``(8) the term `grant school' means a school which is 
     provided assistance under the Tribally Controlled Schools Act 
     of 1988;
       ``(9) the term `Indian organization' means any group, 
     association, partnership, corporation, or other legal entity 
     owned or controlled by a federally recognized Indian tribe or 
     tribes, or a majority of whose members are members of 
     federally recognized Indian tribes;
       ``(8) the term `local educational agency' means a board of 
     education or other legally constituted local school authority 
     having administrative control and direction of free public 
     education in a county, township, independent, or other school 
     district located within a State, and includes any State 
     agency which directly operates and maintains facilities for 
     providing free public education;
       ``(9) the term `local school board', when used with respect 
     to a Bureau school, means a body chosen in accordance with 
     the laws of the tribe to be served or, in the absence of such 
     laws, elected by the parents of the Indian children attending 
     the school, except that in schools serving a substantial 
     number of students from different tribes, the members shall 
     be appointed by the governing bodies of the tribes affected; 
     and the number of such members shall be determined by the 
     Secretary in consultation with the affected tribes;
       ``(10) the term `Office' means the Office of Indian 
     Education Programs within the Bureau;
       ``(11) the term `Secretary' means the Secretary of the 
     Interior;
       ``(12) the term `supervisor' means the individual in the 
     position of ultimate authority at a Bureau school; and
       ``(13) the term `tribe' means any Indian tribe, band, 
     nation, or other organized group or community, including any 
     Alaska Native village or regional or village corporation as 
     defined in or established pursuant to the Alaska Native 
     Claims Settlement Act (85 Stat. 688) which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.

     ``SEC. 6721. VOLUNTARY SERVICES.

       ``Notwithstanding section 1342 of title 31, United States 
     Code, the Secretary may, subject to the approval of the local 
     school board concerned, accept voluntary services on behalf 
     of Bureau schools. Nothing in this title shall be construed 
     to require Federal employees to work without compensation or 
     to allow the use of volunteer services to displace or replace 
     Federal employees. An individual providing volunteer services 
     under this section is a Federal employee only for purposes of 
     chapter 81 of title 5, United States Code, and chapter 171 of 
     title 28, United States Code.

     ``SEC. 6722. PRORATION OF PAY.

       ``(a) Notwithstanding any other provision of law, including 
     laws relating to dual compensation, the Secretary, at the 
     election of the employee, shall prorate the salary of an 
     employee employed in an education position for the academic 
     school-year over the entire twelve month period. Each 
     educator employed for the academic school-year shall annually 
     elect to be paid on a twelve month basis or for those months 
     while school is in session. No educator shall suffer a loss 
     of pay or benefits, including benefits under unemployment or 
     other Federal or federally-assisted programs, because of such 
     election.
       ``(b) During the course of such year the employee may 
     change election once.
       ``(c) That portion of the employee's pay which would be 
     paid between academic school years may be paid in lump sum at 
     the election of the employee.
       ``(d) For the purposes of this section the terms 
     ``educator'' and ``education position'' have the meaning 
     contained in section 6712(n)(1) and (n)(2) of this title. 
     This section applies to those individuals employed under the 
     provisions of section 6712 of this title or title 5, United 
     States Code.

     ``SEC. 6723. EXTRACURRICULAR ACTIVITIES.

       ``(a) Notwithstanding any other provision of law, the 
     Secretary may provide, for each Bureau area, a stipend in 
     lieu of overtime premium pay or compensatory time off. Any 
     employee of the Bureau who performs additional activities to 
     provide services to students or otherwise support the 
     school's academic and social programs may elect to be 
     compensated for all such work on the basis of the stipend. 
     Such stipend shall be paid as a supplement to the employee's 
     base pay.
       ``(b) If an employee elects not to be compensated through 
     the stipend established by this section, the appropriate 
     provisions of title 5, United States Code, shall apply.
       ``(c) This section applies to all Bureau employees, whether 
     employed under section 6712 of this title or title 5, United 
     States Code.

     ``SEC. 6724. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

       ``(a) The Secretary shall provide grants to tribes, tribal 
     organizations, and consortia of tribes and tribal 
     organizations to fund early childhood development programs 
     that are operated by such tribes, organizations, or 
     consortia.
       ``(b)(1) The total amount of the grants provided under 
     subsection (a) with respect to each tribe, tribal 
     organization, or consortium of tribes or tribal organizations 
     for each fiscal year shall be equal to the amount which bears 
     the same relationship to the total amount appropriated under 
     the authority of subsection (f) for such fiscal year (less 
     amounts provided under subsection (e)) as--
       ``(A) the total number of children under 6 years of age who 
     are members of--
       ``(i) such tribe,
       ``(ii) the tribe that authorized such tribal organization, 
     or
       ``(iii) any tribe that--
       ``(I) is a member of such consortium, or
       ``(II) authorizes any tribal organization that is a member 
     of such consortium, bears to
       ``(B) the total number of all children under 6 years of age 
     who are members of any tribe that--
       ``(i) is eligible to receive funds under subsection (a),
       ``(ii) is a member of a consortium that is eligible to 
     receive such funds, or
       ``(iii) authorizes a tribal organization that is eligible 
     to receive such funds.
       ``(2) No grant may be provided under subsection (a)--
       ``(A) to any tribe that has less than 500 members,
       ``(B) to any tribal organization which is authorized--
       ``(i) by only 1 tribe that has less than 500 members, or
       ``(ii) by 1 or more tribes that have a combined total 
     membership of less than 500 members, or
       ``(C) to any consortium composed of tribes, or tribal 
     organizations authorized by tribes, that have a combined 
     total tribal membership of less than 500 members.
       ``(c)(1) A grant may be provided under subsection (a) to a 
     tribe, tribal organization, or consortia of tribes and tribal 
     organizations only if the tribe, organization or consortia 
     submits to the Secretary an application for the grant at such 
     time and in such form as the Secretary shall prescribe.
       ``(2) Applications submitted under paragraph (1) shall set 
     forth the early childhood development program that the 
     applicant desires to operate.
       ``(d) The early childhood development programs that are 
     funded by grants provided under subsection (a)--
       ``(1) shall coordinate existing programs and may provide 
     services that meet identified needs of parents and children 
     under 6 years of age which are not being met by existing 
     programs, including--
       ``(A) prenatal care,
       ``(B) nutrition education,
       ``(C) health education and screening,
       ``(D) educational testing, and
       ``(E) other educational services,
       ``(2) may include instruction in the language, art, and 
     culture of the tribe, and
       ``(3) shall provide for periodic assessment of the program.
       ``(e) The Secretary shall, out of funds appropriated under 
     the authority of subsection (f), include in the grants 
     provided under subsection (a) amounts for administrative 
     costs incurred by the tribe or tribal organization in 
     establishing and maintaining the early childhood development 
     program.
       ``(f) For the purpose of carrying out the provisions of 
     this section, there are authorized to be appropriated 
     $5,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999.

     ``SEC. 6725. TRIBAL DEPARTMENTS OF EDUCATION.

       ``(a) Subject to the availability of appropriations, the 
     Secretary shall provide grants and technical assistance to 
     tribes for the development and operation of tribal 
     departments of education for the purpose of planning and 
     coordinating all educational programs of the tribe.
       ``(b) Grants provided under this section shall--
       ``(1) be based on applications from the governing body of 
     the tribe,
       ``(2) reflect factors such as geographic and population 
     diversity,
       ``(3) facilitate tribal control in all matters relating to 
     the education of Indian children on Indian reservations and 
     on former Indian reservations in Oklahoma,
       ``(4) provide for the development of coordinated 
     educational programs on Indian reservations (including all 
     preschool, elementary, secondary, and higher or vocational 
     educational programs funded by tribal, Federal, or other 
     sources) by encouraging tribal administrative support of all 
     Bureau funded educational programs as well as encouraging 
     tribal cooperation and coordination with all educational 
     programs receiving financial support from State agencies, 
     other Federal agencies, or private entities,
       ``(5) provide for the development and enforcement of tribal 
     educational codes, including tribal educational policies and 
     tribal standards applicable to curriculum, personnel, 
     students, facilities, and support programs, and
       ``(6) otherwise comply with regulations for grants under 
     section 103(a) of the Indian Self-Determination and 
     Educational Assistance Act (25 U.S.C. 450h) that are in 
     effect on the date application for such grants are made.
       ``(c)(1) In approving and funding applications for grants 
     under this section, the Secretary shall give priority to any 
     application that--
       ``(A) includes assurances from the majority of Bureau 
     funded schools located within the boundaries of the 
     reservation of the applicant that the tribal department of 
     education to be funded under this section will provide 
     coordinating services and technical assistance to all of such 
     schools, including (but not limited to) the submission to 
     each applicable agency of a unified application for funding 
     for all of such schools which provides that--
       ``(i) no administrative costs other than those attributable 
     to the individual programs of such schools will be associated 
     with the unified application, and
       ``(ii) the distribution of all funds received under the 
     unified application will be equal to the amount of funds 
     provided by the applicable agency to which each of such 
     schools is entitled under law,
       ``(B) includes assurances from the tribal governing body 
     that the tribal department of education funded under this 
     section will administer all contracts or grants (except those 
     covered by the other provisions of this title and the 
     Tribally Controlled Community College Assistance Act of 1978) 
     for education programs administered by the tribe and will 
     coordinate all of the programs to the greatest extent 
     possible,
       ``(C) includes assurances for the monitoring and auditing 
     by or through the tribal department of education of all 
     education programs for which funds are provided by contract 
     or grant to ensure that the programs meet the requirements of 
     law, and
       ``(D) provides a plan and schedule for--
       ``(i) the assumption over the term of the grant by the 
     tribal department of education of all assets and functions of 
     the Bureau agency office associated with the tribe, insofar 
     as those responsibilities relate to education, and
       ``(ii) the termination by the Bureau of such operations and 
     office at the time of such assumption,

     but when mutually agreeable between the tribal governing body 
     and the Assistant Secretary, the period in which such 
     assumption is to occur may be modified, reduced, or extended 
     after the initial year of the grant.
       ``(2) Subject to the availability of appropriated funds, 
     grants provided under this section shall be provided for a 
     period of 3 years and the grant may, if performance by the 
     grantee is satisfactory to the Secretary, be renewed for 
     additional 3-year terms.
       ``(d) The Secretary shall not impose any terms, conditions, 
     or requirements on the provision of grants under this section 
     that are not specified in this section.
       ``(e) For the purpose of carrying out the provisions of 
     this section, there are authorized to be appropriated 
     $2,000,000 for fiscal year 1995 and such sums as may be 
     necessary for each of the fiscal years 1996, 1997, 1998, and 
     1999.

     ``SEC. 6726. PAYMENTS.

       ``(a)(1) Except as otherwise provided in this subsection, 
     the Secretary shall make payments to grantees under this part 
     in 2 payments:
       ``(A) one payment to be made no later than July 1 of each 
     year in an amount equal to one-half of the amount which the 
     grantee was entitled to receive during the preceding academic 
     year, and
       ``(B) the second payment, consisting of the remainder to 
     which the grantee is entitled for the academic year, shall be 
     made no later than December 1 of each year.
       ``(2) For any school for which no payment was made from 
     Bureau funds in the preceding academic year, full payment of 
     the amount computed for the first academic year of 
     eligibility under this part shall be made no later than 
     December 1 of the academic year.
       ``(3) With regard to funds for grantees that become 
     available for obligation on October 1 of the fiscal year for 
     which they are appropriated, the Secretary shall make 
     payments to grantees no later than December 1 of the fiscal 
     year.
       ``(4) The provisions of the Prompt Payment Act (31 U.S.C. 
     3901 et seq.) shall apply to the payments required to be made 
     by paragraphs (1), (2), and (3) of this subsection.
       (b) Paragraph (3) is amended by striking ``Paragraphs (1) 
     and (2)'' and inserting in lieu thereof ``Paragraphs (1), 
     (2), and (3)'', and is renumbered as paragraph ``(5)''.

     ``TITLE VII--BILINGUAL EDUCATION PROGRAMS

     ``SEC. 7001. SHORT TITLE.

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

     ``SEC. 7002. FINDINGS, POLICY, AND PURPOSE.

       ``(a) Findings.--The Congress finds that--
       ``(1) language-minority Americans constitute a large and 
     growing proportion of the Nation's population;
       ``(2) language-minority Americans speak virtually all world 
     languages plus many that are indigenous to the United States;
       ``(3) the presence of language-minority Americans is 
     related in part to Federal immigration policies;
       ``(4) many language-minority Americans are limited in their 
     English proficiency, and many have limited education and 
     income;
       ``(5) limited-English-proficient children and youth, like 
     all other children and youth, have diverse educational needs 
     and strengths and therefore require access to all educational 
     programs and services;
       ``(6) the Federal Government has a responsibility for the 
     education of American Indians and a special obligation to 
     Native Alaskans, Native Hawaiians and native residents of the 
     territories and freely associated nations to redress the 
     effect of past Federal policies;
       ``(7) institutions of higher education can assist in 
     preparing teachers, administrators and other school personnel 
     to understand and build upon the educational strengths and 
     needs of language-minority and culturally diverse student 
     enrollments;
       ``(8) it is the purpose of this title to help ensure that 
     limited-English-proficient students master English and 
     develop high levels of academic attainment in content areas;
       ``(9) quality bilingual education programs enable children 
     and youth to learn English and meet high academic standards 
     including proficiency in more than one language;
       ``(10) as the world becomes increasingly interdependent and 
     as international communication becomes a daily occurrence in 
     government, business, commerce, and family life, multilingual 
     skills constitute an important national resource which 
     deserves protection and development;
       ``(11) educational technology has the potential for 
     improving the education of language-minority and limited-
     English-proficient students and their families, and the 
     Federal Government should foster this development;
       ``(12) research, development, implementation and 
     dissemination of effective bilingual education methods, 
     practices, and programs for limited-English-proficient 
     children are essential to systemwide school reform that 
     improves education for all children; and
       ``(13) a recognized means by which a child learns is 
     through the use of the child's native language, cultural 
     heritage, and instructional programs which use and build upon 
     a child's non-English native language and cultural heritage 
     to promote parent and community involvement in education, 
     student self-esteem, proficiency in English, and subject 
     matter achievement.
       ``(b) Policy.--The Congress declares it to be the policy of 
     the United States, in order to ensure equal educational 
     opportunity for all children and youth and to promote 
     educational excellence, to assist State and local educational 
     agencies, institutions of higher education, and community-
     based organizations to build their capacity to establish, 
     implement, and sustain programs of instruction for language 
     minority and limited-English-proficient children and youth.
       ``(c) Purpose.--The purpose of this title is to educate 
     language minority and limited-English-proficient children and 
     youth to meet the same rigorous standards for academic 
     performance expected of all children and youth, including 
     meeting challenging State performance standards in academic 
     areas by developing--
       ``(1) systemic improvement and reform of educational 
     programs serving language-minority and limited-English-
     proficient students through the development and 
     implementation of exemplary bilingual education programs and 
     special alternative instruction programs;
       ``(2) data collection and dissemination, research, 
     materials development, and technical assistance which is 
     focused on school improvement for language-minority and 
     limited-English-proficient students; and
       ``(3) programs which strengthen and improve the 
     professional training of educational personnel who work with 
     limited-English-proficient and language-minority students.

     ``SEC. 7003. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--For the purpose of carrying out the 
     provisions of this title (except part F), there are 
     authorized to be appropriated $215,000,000 for the fiscal 
     year 1995 and such sums as may be necessary for each of the 
     fiscal years 1996, 1997, 1998, and 1999.
       ``(b) Distribution.--From the sums appropriated under 
     subsection (a) for any fiscal year, the Secretary shall 
     reserve at least 25 percent for part C of this title.

     ``SEC. 7004. DEFINITIONS; REGULATIONS:

       ``(a) General Rule.--For purposes of this title--
       ``(1) The term `native language', when used with reference 
     to an individual, means the language normally used by such 
     individuals, or, in the case of a child, the language 
     normally used by the parents of the child.
       ``(2) The term `language-minority' means--
       ``(A) individuals whose native language is other than 
     English;
       ``(B) individuals who usually speak a language other than 
     English or come from home environments where a language other 
     than English is usually spoken; or
       ``(C) American Indians, Alaskan Natives, and Native 
     Hawaiians and native residents of the territories and freely 
     associated nations.
       ``(3) The term `limited-English-proficient' means a 
     language-minority person who has difficulty understanding, 
     speaking, reading, or writing the English language at a level 
     appropriate to his or her age and grade and is, thereby, 
     academically disadvantaged in programs conducted exclusively 
     in English.
       ``(4) The term `bilingual education' refers to educational 
     programs for limited-English-proficient students which make 
     instructional use of both English and a student's native 
     language. Programs of bilingual education must enable 
     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 in concert with national education goals. Bilingual 
     education programs may also develop the native language 
     skills of limited-English-proficient students, or ancestral 
     languages of American Indians, Alaskan Natives, Native 
     Hawaiians and native residents of the territories and freely 
     associated nations. English proficient students may 
     participate in bilingual education programs if the programs 
     are designed to enable all enrolled students to become 
     proficient in English and a second language.
       ``(5) The term `special alternative instructional program' 
     refers to educational programs for limited-English-proficient 
     students which utilize specially designed English language 
     curricula and services but do not use the student's native 
     language for instructional purposes. Special alternative 
     instructional programs must enable 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 in concert with national 
     education goals. Special alternative instructional programs 
     are suitable 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.
       ``(6) The term `family education programs' refers to 
     bilingual education or special alternative instructional 
     programs designed to help limited-English-proficient adults 
     and out-of-school youths achieve proficiency in the English 
     language and to provide instruction on how parents and family 
     members can facilitate the educational achievement of their 
     children. When feasible, instructional programs such as the 
     model developed under the Even Start Literacy Programs that 
     promote adult literacy and train parents to support the 
     educational growth of their children shall be developed. 
     Programs shall give preference to participation by parents 
     and immediate family members of children attending school. 
     Family education programs may also provide instruction to 
     facilitate higher education and employment outcomes.
       ``(7) The term `institution of higher education' has the 
     meaning given such term in section 1201(a) of the Higher 
     Education Act of 1965.
       ``(8) The term `Office' means the Office of Bilingual 
     Education and Minority Languages Affairs.
       ``(9) The term `community college' has the meaning given 
     such term in section 1201(a) of the Higher Education Act of 
     1965 for an institution which provides not less than a 2-year 
     program which is acceptable for full credit toward a 
     bachelor's degree, including institutions receiving 
     assistance under the Tribally Controlled Community College 
     Assistance Act of 1978.
       ``(10) The term `paraprofessional' means an individual who 
     is employed in preschool or elementary or secondary school 
     under the supervision of a certified or licensed teacher, 
     including individuals employed in bilingual education, 
     special education and migrant education.
       ``(11) The term `other programs for persons of limited-
     English-proficiency' means any programs administered by the 
     Secretary that serve persons of limited-English-proficiency.
       ``(12) The term `community-based organization' means a 
     private nonprofit organization or Indian tribe or tribally 
     sanctioned educational authority which is representative of a 
     community or significant segments of a community and which 
     provides educational or related services to individuals in 
     the community. The term `community-based organization' 
     includes Native Hawaiian organizations (including Native 
     Hawaiian education organizations) as defined in section 4009 
     of Public Law 100-297).
       ``(13) The term `children and youth' means individuals aged 
     3 through 21.
       ``(14) 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 2 full academic years.
       ``(b) Regulation Rule.--In developing regulations under 
     this title, the Secretary shall consult with State and local 
     educational agencies, organizations representing limited-
     English-proficient individuals, and organizations 
     representing teachers and other personnel involved in 
     bilingual education.
       ``(c) Parental Notification.--Parents of children and youth 
     participating in programs assisted under this title shall be 
     informed of--
       ``(1) a student's level of English proficiency, how it 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;
       ``(2) 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 
     disabled student, how the program meets the objectives of a 
     student's individualized education program;
       ``(3) 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--
       ``(A) the benefits and nature of the bilingual educational 
     program and of the instructional alternatives; and
       ``(B) the reasons for the selection of their child as being 
     in need of bilingual education.
       ``(4)(A) Parents shall also be informed that they have the 
     option of declining enrollment of their children and youth in 
     such programs and shall be given an opportunity to do so if 
     they so choose.
       ``(B) Local educational agencies are not relieved of any of 
     their obligations under title VI of the Civil Rights Act of 
     1964 because parents choose not to enroll their children in 
     bilingual education programs.
       ``(5) Parents must receive, in a manner and form 
     understandable to them, including, if necessary and to the 
     extent feasible, in their native language, the information 
     required by this subsection. At a minimum, parents must 
     receive--
       ``(A) timely information about projects funded under this 
     part; 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.
       ``(6) no action may involve the admission or exclusion of 
     students to or from any federally assisted education program 
     merely on the basis of the surnames or language-minority 
     status of such students.

     ``SEC. 7005. INDIAN AND ALASKAN NATIVE CHILDREN IN SCHOOLS.

       ``(a) Eligible Entities.--For the purpose of carrying out 
     programs under this title for individuals served by 
     elementary, secondary, or postsecondary schools operated 
     predominately for Indian or Alaska Native children and youth, 
     an Indian tribe, a tribally sanctioned educational authority, 
     or an elementary or secondary school that is operated or 
     funded by the Bureau of Indian Affairs shall be considered to 
     be a local educational agency as such term is used in this 
     title, subject to the following qualifications:
       ``(1) The term `Indian tribe' means any Indian tribe, band, 
     nation, or other organized group or community, including any 
     Alaska Native village or regional or village corporation as 
     defined in or established pursuant to the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 
     recognized for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.
       ``(2) The term `tribally sanctioned educational authority' 
     means--
       ``(A) any department or division of education operating 
     within the administrative structure of the duly constituted 
     governing body of an Indian tribe; or
       ``(B) any nonprofit institution or organization that is--
       ``(i) chartered by the governing body of an Indian tribe to 
     operate any such school 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) Bureau of Indian Affairs Schools.--From the sums 
     appropriated pursuant to section 7003, the Secretary is 
     authorized to make payments to applicants to carry out 
     programs of bilingual education or special alternative 
     instruction for Indian children served by elementary and 
     secondary schools operated or funded by the Bureau of Indian 
     Affairs.
       ``(c) Annual Report.--(1) The Assistant Secretary of the 
     Interior for the Bureau of Indian Affairs in collaboration 
     with the Secretary shall submit to the Congress, the 
     President, and the Secretary, by September 30 of each year, a 
     report which provides--
       ``(A) an assessment of the educational outcomes and needs 
     of Indian children with respect to the purposes of this title 
     in schools operated or funded by the Department of the 
     Interior, including tribes and local educational agencies 
     receiving assistance under the Johnson-O'Malley Act and the 
     Native American Languages Act; and
       ``(B) an assessment of the extent to which such needs are 
     being met by funds provided to such schools for educational 
     purposes through the Secretary of the Interior.
       ``(2) The results presented in this report shall be 
     included in the report under section 7041 of this Act.
       ``(3) The assessments required under this subsection shall 
     be waived if such assessments duplicate similar assessment 
     requirements under other Federal or tribal laws.

     ``SEC. 7006. RESIDENTS OF THE TERRITORIES AND FREELY 
                   ASSOCIATED NATIONS.

       ``For the purpose of carrying out programs under this title 
     in Guam and the freely associated nations, the term `local 
     educational agency' shall include public institutions or 
     agencies whose mission is the preservation and maintenance of 
     native languages.

    ``PART A--BILINGUAL EDUCATION CAPACITY AND DEMONSTRATION GRANTS

     ``SEC. 7101. PURPOSE OF GRANTS.

       ``Grants under this part shall be used to develop the 
     capacity of local educational agencies, institutions of 
     higher education, and community-based organizations which 
     provide educational programs to initiate, develop, enhance or 
     improve bilingual education or special alternative 
     instruction programs for children and youth of limited-
     English-proficiency.

     ``SEC. 7102. PROGRAM DEVELOPMENT AND IMPLEMENTATION GRANTS.

       ``(a) Purpose.--The purpose of this section is to develop 
     and implement new comprehensive, coherent, and successful 
     bilingual education or special alternative instructional 
     programs for limited-English-proficient students including 
     programs of early childhood education, K-12 education, gifted 
     and talented education, and vocational and applied technology 
     education.
       ``(b) Program Authorized.--
       ``(1) The Secretary is authorized to make program 
     development and implementation grants of up to $100,000 
     annually for 3 years with 1 additional year upon the 
     Secretary's approval.
       ``(2) Grants approved under this section shall be used to 
     improve the education of limited-English-proficient students 
     and their families by--
       ``(A) developing and implementing comprehensive preschool, 
     elementary, or secondary bilingual education or special 
     alternative instructional programs that are coordinated with 
     other relevant programs and services to meet the full range 
     of educational needs of limited-English-proficient students; 
     and
       ``(B) providing in service training to classroom teachers, 
     administrators, and other school or community-based 
     organizational personnel to improve the instruction and 
     assessment of language-minority and limited-English-
     proficient students.
       ``(3) Grants approved under this section may be used to 
     improve the education of limited-English-proficient students 
     and their families by--
       ``(A) implementing family education programs and 
     activities; and
       ``(B) improving the instructional program for limited-
     English-proficient students by upgrading curriculum, 
     instructional materials, and assessment procedures and, if 
     appropriate, applying educational technology.
       ``(c) Eligible Entities.--A grant may be made under this 
     section only upon application by one or more local 
     educational agencies, applying alone or in collaboration with 
     an institution of higher education, community-based 
     organization or local or State educational agency. A grant 
     may also be made under this section upon application by a 
     community-based organization which is agreed to by the local 
     educational agency to develop and implement early childhood 
     education or family education programs or to conduct an 
     instructional program which supplements the educational 
     services provided by a local educational agency.
       ``(d) Distribution.--The Secretary shall, to the extent 
     practicable, award grants equally among early childhood 
     education, elementary education, and secondary education 
     programs.

     ``SEC. 7103. PROGRAM ENHANCEMENT PROJECTS.

       ``(a) Purpose.--The purpose of this section is to carry out 
     highly focused, innovative, locally designed projects to 
     expand or enhance existing bilingual education or special 
     alternative instructional programs for limited-English-
     proficient students.
       ``(b) Program Authorized.--
       ``(1) The Secretary is authorized to make program 
     enhancement project grants of up to $100,000 for 2 years to 
     eligible applicants.
       ``(2) Grants approved under this section shall be used for 
     providing in-service training to classroom teachers, 
     administrators, and other school or community-based 
     organization personnel to improve the instruction and 
     assessment of language-minority and limited-English-
     proficient students.
       ``(3) Grants approved under this section may be used for--
       ``(A) improving the instructional program for limited-
     English-proficient students by upgrading curriculum, 
     instructional materials, and assessment procedures and, if 
     appropriate, applying educational technology;
       ``(B) implementing family education programs and 
     activities; and
       ``(C) providing intensified instruction.
       ``(c) Eligible Entities.--A grant may be made under this 
     section only upon application by one or more local 
     educational agencies, applying alone or in collaboration with 
     an institution of higher education, community-based 
     organization or local or State educational agency. A grant 
     also may be made under this section upon application by a 
     community-based organization which is agreed to by the local 
     educational agency to enhance early childhood education or 
     family education programs or to conduct an instructional 
     project which supplements the educational services provided 
     by a local educational agency.

     ``SEC. 7104. WHOLE-SCHOOL PROGRAMS.

       ``(a) Purpose.--The purpose of this section is to provide 
     financial assistance to eligible applicants to reform, 
     restructure, and upgrade all relevant programs and operations 
     within an individual school to fulfill the comprehensive 
     educational needs of all of a school's limited-English-
     proficient students and their families.
       ``(b) Program Authorized.--
       ``(1) The Secretary is authorized to make 5-year grants of 
     up to $100,000 for the first year and up to $250,000 for each 
     of the subsequent 4 years to eligible applicants.
       ``(2) Grants approved under this section shall be used to 
     improve education of limited-English-proficient students and 
     their families by reviewing, restructuring, and upgrading in-
     service training for all school staff and, if appropriate, 
     for community-based organization personnel.
       ``(3) Grants approved under this section may be used to 
     improve the education of limited-English-proficient students 
     and their families by reviewing, restructuring, and 
     upgrading--
       ``(A) the school's instructional program for limited-
     English-proficient students including curriculum, 
     instructional materials, and assessment systems, and, if 
     appropriate, the application of educational technology;
       ``(B) family education programs and activities; and
       ``(C) intensified instruction.
       ``(4) During the first year of the grant, a priority is 
     established in use of funds for preparatory activities 
     including planning, training, curriculum development, and 
     materials acquisition or development.
       ``(c) Eligible Entities.--A grant may be made under this 
     section only upon application by one or more local 
     educational agencies, applying alone or in collaboration with 
     an institution of higher education, community-based 
     organizations or local or State educational agency.

     ``SEC. 7105. SYSTEM-WIDE IMPROVEMENT GRANTS.

       ``(a) Purpose.--The purpose of this section is to provide 
     financial assistance to improve, reform, and upgrade relevant 
     programs and operations with an entire local educational 
     agency to fulfill the comprehensive educational needs of all 
     the agency's limited-English-proficient students and, to the 
     extent feasible, their families.
       ``(b) Program Authorized.--
       ``(1) The Secretary is authorized to make 5-year grants of 
     up to $1,000,000 for the first year and up to $5,000,000 for 
     each of the subsequent 4 years to eligible applicants.
       ``(2) Grants approved under this section may be used during 
     the first 12 months exclusively for activities preparatory to 
     the delivery of services.
       ``(3) Grants approved under this section may be used to 
     improve education of limited-English-proficient students and 
     their families by reviewing, restructuring, and upgrading--
       ``(A) educational goals, curriculum guidelines and content, 
     standards and assessments;
       ``(B) personnel policies and practices including 
     recruitment, certification, staff development, and 
     assignment;
       ``(C) student grade-promotion and graduation requirements;
       ``(D) student assignment policies and practices;
       ``(E) program delivery standards, management information 
     and accountability systems;
       ``(F) instructional and extracurricular programs and 
     services; and
       ``(G) application of educational technology.
       ``(c) Eligible Entities.--A grant may be made under this 
     section only upon application by one or more local 
     educational agencies, applying alone or in collaboration with 
     an institution of higher education, community-based 
     organization or local or State educational agency.
       ``(d) Priority.--The Secretary shall give priority to 
     applications from--
       ``(1) applicants which enroll a large percentage or large 
     number of limited-English-proficient students; and
       ``(2) consortia of eligible applicants to serve limited-
     English-proficient students in rural and linguistically 
     isolated settings.

     ``SEC. 7106. APPLICATIONS.

       ``(a) Submission.--To receive a grant under this part, 
     applicants shall submit an application to the Secretary in 
     such form and containing such information as the Secretary 
     may require:
       ``(1) An application for a grant under this part shall be 
     developed in consultation with, and shall provide for the 
     continuing involvement of, an advisory council which shall be 
     composed of representatives responsible for implementing 
     grant activities and of parents and other relatives of the 
     children to be served in such programs; parents shall 
     comprise a majority of all council members.
       ``(2) All applicants for grants under this part, except for 
     those applicants identified in section 7005, shall submit a 
     copy of the application to the relevant State educational 
     agency. The State educational agency may submit to the 
     Secretary written comments on the application with respect to 
     how the applications further State education improvement 
     plans including any developed under Goals 2000: Educate 
     America Act (if such plans exist) or title I of this Act. If 
     the State educational agency of a State submits written 
     comments on any application, it must submit written comment 
     on all applications within that same grant category from 
     within that State. The Secretary shall take comments into 
     consideration when funding applications under this part.
       ``(b) Required Documentation.--Such application shall 
     include documentation that the applicant has the qualified 
     personnel required to develop, administer, and implement the 
     proposed program.
       ``(c) Contents.--(1) An application for a grant under this 
     part shall contain the following:
       ``(A) A description of the need for the proposed program, 
     including data on the number of children and youth of 
     limited-English-proficiency in the school or district to be 
     served and their characteristics, such as language spoken, 
     dropout rates, proficiency in English and the native 
     language, academic standing in relation to their English 
     proficient peers, and, where applicable, the recency of 
     immigration.
       ``(B) A description of the program to be implemented and 
     how its design--
       ``(i) relates to the linguistic and academic needs of the 
     children and youth of limited-English-proficiency to be 
     served;
       ``(ii) is consistent with, and promotes the goals in, the 
     local educational agency plan under title III of the Goals 
     2000: Educate America Act, if such plan exists, and the local 
     educational agency's plan under title I of this Act, 
     particularly as those plans relate to the education of 
     children and youth of limited-English-proficiency;
       ``(iii) involves the parents of the children and youth of 
     limited-English-proficiency to be served;
       ``(iv) ensures accountability in the expected student 
     outcomes; and
       ``(v) 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 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 it expends for bilingual 
     education or special alternative instruction programs if it 
     receives an award under this part.
       ``(E) A budget for grant funds.
       ``(2) An application for a grant under section 7102 or 7104 
     shall also contain a description of the instructional 
     program, student services, in-service training, and family 
     education programs to be provided under the grant.
       ``(3) An application for a grant under section 7103 shall 
     also contain the following:
       ``(A) A description of the existing bilingual education or 
     special alternative instruction program which the project is 
     designed to enhance.
       ``(B) A description of the proposed project activities.
       ``(4) An application for a grant under section 7105 shall 
     also contain a description of the activities which would be 
     carried out under the grant.
       ``(d) Approval of Applications.--An application for a grant 
     under this part may be approved only if the Secretary 
     determines that--
       ``(1) the program will use qualified personnel, including 
     those personnel who are proficient in the language or 
     languages used for instruction;
       ``(2) in designing the program for which application is 
     made, the needs of children in nonprofit private elementary 
     and secondary schools have been taken into account through 
     consultation with appropriate private school officials and, 
     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 that the program is intended to address, after 
     consultation with appropriate private school officials, 
     provision has been made for the participation of such 
     children on a basis comparable to that provided for public 
     school children;
       ``(3) student evaluation and assessment procedures in the 
     program are valid, reliable, and fair for limited-English-
     proficient students, and that limited-English-proficient 
     students who are disabled are identified and served in 
     accordance with the requirements of the Individuals with 
     Disabilities Education Act;
       ``(4) Federal funds made available for the project or 
     activity will be used so as to supplement the level of State 
     and local funds that, in the absence of such Federal funds, 
     would have been 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 preclude a local educational agency from 
     using funds under this title for activities carried out under 
     an order of a court of the United States or of any State 
     respecting services to be provided such children, or 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 such children;
       ``(5) the assistance provided under the application will 
     contribute toward building the capacity of the applicant to 
     provide a program on a regular basis, similar to that 
     proposed for assistance, which will be of sufficient size, 
     scope, and quality to promise significant improvement in the 
     education of students of limited-English-proficiency, and 
     that the applicant will have the resources and commitment to 
     continue the program when assistance under this title is 
     reduced or no longer available;
       ``(6) the applicant provides for utilization of the State 
     and national dissemination sources for program design and in 
     dissemination of results and products.
       ``(e) Special Consideration and Priorities.--
       ``(1) Students may participate in any program receiving 
     funds under this part for the duration of the program.
       ``(2) The Secretary shall give priority to applications 
     which provide for the development of bilingual proficiency 
     for all participating students.
       ``(3) Grants for special alternative instructional programs 
     shall not exceed 25 percent of the funds provided for any 
     type of grant under any section or of total funds provided 
     under this part.
       ``(4) Notwithstanding paragraph (3), the Secretary may 
     award grants for special alternative instructional programs 
     if an applicant has demonstrated that they cannot develop and 
     implement a bilingual education program for the following 
     reasons:
       ``(A) 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.
       ``(B) Where, despite documented convincing efforts, the 
     applicant has not been able to hire instructional personnel 
     who are able to communicate in the students' native language.
       ``(5) In approving applications under this part, 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 and 
     State educational agency, or business.
       ``(6) The Secretary shall ensure that projects funded under 
     this part address the full needs of school systems of all 
     sizes and geographical areas, including rural schools.
       ``(7) The Secretary shall give priority to applications 
     providing training for personnel participating in or 
     preparing to participate in the program which will assist 
     them in meeting State and local certification requirements 
     and that, to the extent possible, college or university 
     credit will be awarded for such training.

     ``SEC. 7107. INTENSIFIED INSTRUCTION.

       ``In carrying out this part, each grant recipient may 
     intensify instruction for limited-English-proficient students 
     by--
       ``(1) expanding the educational calendar of the school in 
     which such student is enrolled to include programs before and 
     after school and during the summer months;
       ``(2) expanding the use of professional and volunteer aids;
       ``(3) applying technology to the course of instruction; and
       ``(4) providing intensified instruction through 
     supplementary instruction or activities, including 
     educationally enriching extracurricular activities, during 
     times when school is not routinely in session.

     ``SEC. 7108. CAPACITY BUILDING.

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

     ``SEC. 7109. 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 non-profit organization, or a consortium 
     of such entities to carry out an approved program, including 
     a program to serve out-of-school youth.

     ``SEC. 7110. GEOGRAPHIC DISTRIBUTION OF FUNDS.

       ``To the extent possible, the Secretary shall award funds 
     under this part throughout the Nation in a manner that 
     reflects the geographic distribution of children and youth of 
     limited-English-proficiency.

     ``SEC. 7111. PROGRAMS IN PUERTO RICO.

       ``Programs authorized under this title in the Commonwealth 
     of Puerto Rico may, notwithstanding any other provision of 
     this title, include programs of instruction, teacher 
     training, curriculum development, evaluation, and testing 
     designed for children and youth of limited-Spanish 
     proficiency.

     ``SEC. 7112. EVALUATIONS.

       ``(a) Evaluation.--Each recipient of funds under this part 
     shall provide the Secretary with an evaluation, in the form 
     prescribed by the Secretary, of its program every two years.
       ``(b) Use of Evaluation.--Such evaluation shall be used by 
     a grantee--
       ``(1) for program improvement;
       ``(2) to further define the local program's goals and 
     objectives; and
       ``(3) to determine program effectiveness.
       ``(c) Evaluation Components.--Evaluations shall include--
       ``(1) student outcome indicators that measure progress 
     toward the performance standards set out in the State's plan, 
     either approved or being developed, under title III of the 
     Goals 2000: Educate America Act, or, if the State does not 
     have an approved plan under title III of the Goals 2000: 
     Educate America Act and is not developing such a plan, with 
     the State plan approved or being developed under section 1111 
     of this Act, including data comparing children and youth of 
     limited-English-proficiency with non-limited-English-
     proficient children and youth with regard to school 
     retention, academic achievement, and gains in English (and, 
     where applicable, native language) proficiency;
       ``(2) program implementation indicators that provide 
     information for informing and improving program management 
     and effectiveness, including data on appropriateness of 
     curriculum in relationship to grade and course requirements, 
     appropriateness of program management, appropriateness of the 
     program's staff professional development, and appropriateness 
     of the language of instruction;
       ``(3) program context indicators that describe the 
     relationship of the activities funded under the grant to the 
     overall school program and other Federal, State, or local 
     programs serving children and youth of limited-English-
     proficiency; and
       ``(4) such other information as the Secretary may require.

                  ``PART B--RESEARCH AND DISSEMINATION

     ``SEC. 7201. USE OF FUNDS.

       ``The Secretary is authorized to conduct data collection, 
     dissemination, research, and evaluation activities through 
     the Office of Bilingual Education and Minority Languages 
     Affairs for the purpose of improving bilingual education and 
     special alternative instruction programs for children and 
     youth of limited-English-proficiency.

     ``SEC. 7202. RESEARCH.

       ``(a) Research Activities.--The Secretary shall support 
     through competitive grants contracts and cooperative 
     agreements to institutions of higher education, nonprofit and 
     for-profit organizations, and local and State educational 
     agencies, funds for research with 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.
       ``(b) Authorized Activities.--
       ``(1) The Secretary may conduct research activities that 
     include--
       ``(A) identifying criteria for the establishment, use and 
     monitoring of local, State, or national education goals, 
     content, performance and delivery standards, and assessments 
     for all students that provide for appropriate, valid, 
     reliable, and fair participation by limited-English-
     proficient and language-minority students;
       ``(B) identifying determinants of appropriate high quality 
     secondary school programs for limited-English-proficient 
     students, and high quality curriculum-related instructional 
     materials; and
       ``(C) identifying determinants of appropriate high quality 
     early childhood development programs for limited-English-
     proficient children, including families, and appropriate high 
     quality materials.
       ``(D) studies to identify models of effective program 
     coordination that support students while in transition to 
     English language classrooms that develop and maintain high 
     levels of proficiency in the native languages and English;
       ``(E) studies of effective curricula and instructional 
     strategies for the development and maintenance of high levels 
     of student proficiency in both their native language and 
     English, including the role of family, community, and career 
     contexts;
       ``(F) identification of strategies for effective 
     participation by limited-English-proficient parents in their 
     children's education for attainment of educational 
     excellence;
       ``(G) identifying methods of improving classification, 
     placement, and services to limited-English-proficient 
     students including, but not limited to their participation in 
     early childhood development programs, title I, special 
     education, foreign language education, and gifted and 
     talented education;
       ``(H) identification of methods for effective delivery of 
     bilingual education to rural schools and in the less-
     commonly-taught languages using educational technology and 
     electronic communications networks;
       ``(I) identification of trends in demand for language 
     skills and of career opportunities for individuals with high 
     levels of proficiency in English and a second language; and
       ``(J) establishing through the National Center for 
     Education Statistics and in consultation with the Office of 
     Bilingual Education and Minority Languages Affairs, and 
     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.
       ``(c) Field-Initiated Research.--The Secretary shall 
     reserve at least 5 percent of the funds available under this 
     section for field-initiated research by current or recent 
     recipients of grants under parts A or C of this title. 
     Research must be conducted by current grant recipients or by 
     former recipients who have received such grants within the 
     previous 5 years. Field-initiated research may provide for 
     longitudinal studies of students or teachers in bilingual 
     education, monitoring the education of such students from 
     entry in bilingual education through high school completion. 
     Applicants may submit an application for field-initiated 
     research at the same time as applications are submitted under 
     part A or part C. The Secretary shall complete a review of 
     such applications on a timely basis to allow research and 
     program grants to proceed in coordination where appropriate.
       ``(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) Coordination.--Research activities supported under 
     this section--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out by the Office of Bilingual 
     Education and Minority Language Affairs and the Office of 
     Educational Research and Improvement.
       ``(f) Data Collection.--The Secretary shall provide for the 
     continuation of data collection on limited-English-proficient 
     students as part of the data systems operated by the 
     Department.

     ``SEC. 7203. ACADEMIC EXCELLENCE AWARDS.

       ``(a) Awards.--The Secretary may make grants to, and enter 
     into contracts and cooperative agreements with, State and 
     local educational agencies, nonprofit organizations, and 
     institutions of higher education to promote the adoption and 
     implementation of bilingual education, special alternative 
     instruction programs, and professional development programs 
     that demonstrate great promise of assisting children and 
     youth of limited-English-proficiency to meet challenging 
     State standards.
       ``(b) Applications.--(1) An entity desiring to receive an 
     award under this section shall submit an application to the 
     Secretary in such form, at such time, and containing such 
     information and assurances as the Secretary may require.
       ``(2) The Secretary shall use a peer review process, using 
     effectiveness criteria that the Secretary shall establish, to 
     review applications under this section.
       ``(c) Use of Funds.--Funds under this section shall be used 
     to enhance the capacity of States and local education 
     agencies to provide high quality academic programs for 
     children and youth of limited-English-proficiency, which may 
     include--
       ``(1) completing the development of such programs;
       ``(2) professional development of staff participating in 
     bilingual education programs;
       ``(3) sharing strategies and materials; and
       ``(4) supporting professional networks.
       ``(d) Coordination.--Recipients of funds under this section 
     shall coordinate their activities with those carried out by 
     comprehensive technical assistance centers under title II of 
     this Act.

     ``SEC. 7204. 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 its 
     approved plan under title III of the Goals 2000: Educate 
     America Act, if such plan exists, or, if such plan does not 
     exist, its plan under title I of this Act, 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 be less than $100,000 
     nor greater than 5 percent of the total amount awarded to 
     local educational agencies within the State under part A of 
     this title for the previous fiscal year.
       ``(c) Use of Funds.--(1) A State educational agency shall 
     use funds for programs authorized by this section to--
       ``(A) assist local educational agencies in the State with 
     program design, capacity building, assessment of student 
     performance, and program evaluation; and
       ``(B) collect data on the State's language-minority and 
     limited English-proficient populations and the educational 
     programs and services available to these populations.
       ``(2) The State educational agency may also use funds for 
     the training of State educational agency personnel in 
     educational issues affecting limited-English-proficient 
     children and youth.
       ``(3) Recipients of awards 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 title and other individuals 
     or organizations involved in the development or operation of 
     programs serving limited-English-proficient children or youth 
     to ensure that funds are used in a manner consistent with the 
     requirements of this title.
       ``(e) Applications.--A State educational agency desiring to 
     receive an award under this section shall submit an 
     application to the Secretary in such form, at such time, 
     containing such information and assurances as the Secretary 
     may require.
       ``(f) Supplement Not Supplant.--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 to level of funds that would, in the 
     absence of such funds, be made available by the State for the 
     purposes described in this section, and in no case to 
     supplant such funds.
       ``(g) Report to the Secretary.--State educational agencies 
     receiving grants under this section shall provide for the 
     annual submission of a summary report to the Secretary 
     containing information on such matters as the Secretary 
     shall, by regulation, determine necessary and proper to 
     achieve the purposes of this title, including information on 
     State capacity and progress in meeting the education needs of 
     all limited-English-proficient children, plans for additional 
     action, the effect of standards and assessments in improving 
     their education. Such reports shall be in such form and shall 
     be submitted on such date as the Secretary shall specify by 
     regulation.

     ``SEC. 7205. 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 
     ERIC system of clearinghouses supported by the Office of 
     Educational Research and Improvement;
       ``(2) coordinate its activities with Federal data and 
     information clearinghouses and dissemination networks and 
     systems; and
       ``(3) develop a data base management and monitoring system 
     for improving the operation and effectiveness of funded 
     programs.

     ``SEC. 7206. INSTRUCTIONAL MATERIALS DEVELOPMENT.

       ``The Secretary may provide grants for the development, 
     publication and dissemination of high quality instructional 
     materials in Native American, Native Hawaiian and other 
     languages for which instructional materials are not readily 
     available. The Secretary shall give priority to the 
     development of instructional materials in languages 
     indigenous to the United States, its territories, and freely 
     associated nations. The Secretary shall also accord priority 
     to applications which provide for developing and evaluating 
     materials in collaboration with activities under parts A and 
     C of this title and which are consistent with national and 
     State content standards.

     ``SEC. 7207. EVALUATION ASSISTANCE CENTERS AND 
                   MULTIFUNCTIONAL RESOURCE CENTERS.

       ``(a) Transition.--The Secretary shall extend grants or 
     contracts for Evaluation Assistance Centers and 
     Multifunctional Resource Centers that are in effect on the 
     date of enactment of the Improving America's School Act 
     through fiscal year 1996.
       ``(b) Continuity of Services.--(1) The Secretary shall 
     ensure that the comprehensive regional technical assistance 
     centers authorized under title II of this Act provide 
     services which are at least equal in volume, scope, and 
     quality to those provided by Evaluation Assistance Centers 
     and Multifunctional Resource Centers.
       ``(2) The Secretary shall ensure that the comprehensive 
     regional technical assistance centers authorized under title 
     II of this Act, as amended by the Improving America's School 
     Act, provide services which enable children and youth of 
     limited-English-proficiency to meet challenging State and 
     National standards.
       ``(3) The Secretary shall ensure that the comprehensive 
     technical assistance centers authorized under title II of 
     this Act are established with consideration given to the 
     geographic and linguistic distribution of children and youth 
     of limited-English-proficiency.
       ``(c) Gifts, Bequests, and Devises.--The entities may 
     accept (but not solicit), use, and dispose of gifts, 
     bequests, or devises of services or property, both real and 
     personal for the purpose of aiding or facilitating the work 
     of entities under this section. Gifts, bequests, or devises 
     of money and proceeds from sales of other property received 
     as gifts, bequests or devises shall be deposited in the 
     Treasury and shall be available for disbursement upon order 
     of the national clearinghouse on bilingual education, the 
     Evaluation and Assistance Center or Multifunctional Resource 
     Center, respectively.

             ``PART C--BILINGUAL EDUCATION TEACHER TRAINING

     ``SEC. 7301. PURPOSE.

       ``The purpose of this part is to assist in preparing 
     educators to improve the delivery of educational services to 
     language-minority and limited-English-proficient children and 
     youth. This part supports the training of all educational 
     personnel to serve more effectively limited-English-
     proficient students. The goal of this part is to provide for 
     the training of not less than 50,000 teachers who meet 
     professional preparation and certification standards for 
     bilingual education teachers by the year 2000.

     ``SEC. 7302. 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 and language-minority students into education 
     personnel preparation programs for teachers, counselors, 
     administrators and other education personnel.
       ``(b) Authorization.--The Secretary shall award grants for 
     up to 5 years to institutions of higher education, local 
     educational agencies, and State educational agencies or to 
     nonprofit organizations which have entered into consortia 
     arrangements with one of such institutions, agencies, or 
     organizations.
       ``(c) Permissible Activities.--Activities conducted under 
     this section may include the development of training programs 
     in collaboration with training under titles I and II of this 
     Act, the Head Start Act, and other relevant programs.
       ``(d) Priority.--The Secretary shall give priority to 
     applications from institutions of higher education which 
     currently operate, with full-time tenured faculty, programs 
     to prepare educators and administrators to work with 
     language-minority and limited-English-proficient students in 
     bilingual education settings and from institutions of higher 
     education which are attempting to start bilingual teacher 
     training programs if such institutions demonstrate a 
     significant commitment in financial and human resources, 
     including cash and in-kind. The Secretary shall give special 
     consideration to applications for such programs which provide 
     training of secondary school teachers or early childhood 
     development teachers. Such special consideration would not 
     disallow the funding of applications for exemplary programs 
     for the training of elementary school teachers.

     ``SEC. 7303. BILINGUAL EDUCATION TEACHERS AND PERSONNEL 
                   GRANTS.

       ``(a) Purpose.--The purpose of this section is to provide 
     for degree programs to prepare new bilingual education 
     teachers, administrators, counselors, and other educational 
     personnel to meet high professional standards for bilingual 
     education teachers and to increase the availability of 
     educators to provide high quality education limited-English-
     proficient students.
       ``(b) Authorization.--The Secretary shall award grants for 
     up to 5 years to institutions of higher education in 
     consortia with local or State educational agencies.

     ``SEC. 7304. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

       ``(a) Purpose.--The purpose of this section is to upgrade 
     the qualifications and skills of non-certified educational 
     personnel, especially educational paraprofessionals, to meet 
     high professional standards, including certification and 
     licensure as bilingual education teachers and other 
     educational personnel who serve limited-English-proficient 
     students, through collaborative training programs operated by 
     institutions of higher education and local and State 
     educational agencies. Grants for programs under this section 
     may also provide for collaborative programs operated by 
     institutions of higher education and secondary schools which 
     are designed to recruit and train secondary school students 
     as bilingual education teachers and other educational 
     personnel to serve limited-English-proficient students.
       ``(b) Authorization.--The Secretary shall award grants of 
     up to 5 years for bilingual education career ladder programs 
     to institutions of higher education applying in consortia 
     with local or State educational agencies; consortia may 
     include community-based organizations or professional 
     education organizations.
       ``(c) Activities.--Grants funded under this section may--
       ``(1) include the development of bilingual education career 
     ladder program curricula appropriate to the needs of the 
     consortium participants;
       ``(2) provide assistance for stipends and costs related to 
     tuition, fees and books for enrolling in courses required to 
     complete degree and certification requirements as bilingual 
     education teachers; and
       ``(3) include programs to introduce secondary school 
     students to careers in bilingual education teaching that are 
     coordinated with other activities under this program.
       ``(d) Special Consideration.--The Secretary shall give 
     special consideration to applications under this section 
     which provide for--
       ``(1) participant completion of baccalaureate and masters 
     degree teacher education programs, certification and may 
     include effective employment placement activities;
       ``(2) development of teacher proficiency in English and a 
     second language, including required demonstration of 
     proficiency in the instructional use of English and a second 
     language in classroom contexts;
       ``(3) coordination with Trio, the Teacher Corps, National 
     Community and Service Trust Act, Mini Corps, and other 
     programs for the recruitment and retention of bilingual 
     students in secondary and post-secondary programs to train as 
     bilingual educators; and
       ``(4) the applicant's contribution of additional student 
     financial aid to participating students.

     ``SEC. 7305. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION 
                   PROGRAM.

       ``(a) Authorization.--The Secretary may award fellowships 
     for masters, 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. For fiscal year 1994 not less than 500 
     fellowships leading to a masters or doctorate degree shall be 
     awarded under this section, rising each subsequent year of 
     this authorization by not less than 50. The Secretary shall 
     include information on the operation and the number of 
     fellowships awarded under the fellowship program in the 
     report required under section 7401 of this title.
       ``(b) Fellowship Requirements.--(1) 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 those authorized under this title, 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 title; or
       ``(B) repay such assistance.
       ``(2) The Secretary shall establish in regulations such 
     terms and conditions for such agreement as the Secretary 
     deems reasonable and necessary and may waive the requirement 
     of paragraph (1) in extraordinary circumstances.
       ``(c) The Secretary may give priority to institutions of 
     higher education that demonstrate experience in assisting 
     fellowship recipients find employment in the field of 
     bilingual education.

     ``SEC. 7306. APPLICATIONS.

       ``(a) In General.--Each applicant or consortium that 
     desires to receive a grant under this part shall submit an 
     application to the Secretary and the State educational agency 
     or State board for higher education as appropriate, at such 
     time and in such manner as the Secretary shall prescribe. The 
     application shall demonstrate integration, where appropriate, 
     with the State and local plans, if such plans exist, for 
     serving limited-English-proficient students. The State and 
     local educational agency, and where applicable the State 
     board for higher education, may comment in writing on the 
     application indicating how the application furthers State 
     education reform activities, including the provision of 
     appropriate high quality education to all language minority 
     students. If the State educational agency or State Board for 
     Higher Education submits comments on any application, it 
     shall submit comments on all. The Secretary shall take any 
     written comments that have been made into consideration when 
     considering applications under this part.
       ``(b) Eligible Entities.--
       ``(1) A grant may be made under this part upon application 
     of an institution of higher education, applying individually 
     or jointly with one or more local educational agencies, 
     nonprofit organizations, or State educational agencies.
       ``(2) The Secretary shall provide for outreach and 
     technical assistance to institutions of higher education 
     eligible under title III of the Higher Education Act and 
     institutions of higher education that are operated or funded 
     by the Bureau of Indian Affairs to facilitate their 
     participation in activities under this part.
       ``(3) In making grants under this part, the Secretary 
     shall, consistent with subsection (d), ensure adequate 
     representation of Hispanic serving institutions that 
     demonstrate competence and experience in the programs and 
     activities authorized under this title and are otherwise 
     qualified.
       ``(c) Application Requirements For Bilingual Teacher 
     Training Programs.--The application shall demonstrate 
     integration, where appropriate, with the State plan, if one 
     exists, for serving limited-English-proficient students.
       ``(d) Preference in Assistance and Purpose of Training.--
       ``(1) In making a grant under this part the Secretary shall 
     give preference to programs which--
       ``(A) include tenured faculty in bilingual education, and
       ``(B) and for institutions of higher education which are 
     attempting to start bilingual teacher training programs if 
     such institutions demonstrate a significant commitment in 
     financial and human resources, including cash and in-kind.
       ``(C) provide additional resources for such training from 
     other sources.
       ``(2) In making grants under sections 7302, 7303 and 7304, 
     the Secretary shall give special consideration to programs 
     that ensure that individuals completing such programs 
     demonstrate proficiency in English and a second language.

     ``SEC. 7307. PROGRAM REQUIREMENTS.

       ``Activities conducted under this part shall assist 
     educational personnel in meeting State and local 
     certification requirements for bilingual education and, 
     wherever possible, shall award college or university credit.

     ``SEC. 7308. STIPENDS.

       ``The Secretary shall provide 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, to persons 
     participating in training programs under this part.

     ``SEC. 7309. PROGRAM EVALUATIONS UNDER PART C.

       Each recipient of funds under part C of this title shall 
     provide the Secretary with an evaluation of its program every 
     two years. Such evaluation shall include data on--
       ``(1) post-program placement of persons trained;
       ``(2) how the training relates to the employment of persons 
     served by the program;
       ``(3) program completion; and
       ``(4) such other information as the Secretary may require.

                        ``PART D--ADMINISTRATION

     ``SEC. 7401. OFFICE OF BILINGUAL EDUCATION AND MINORITY 
                   LANGUAGE AFFAIRS.

       ``(a) Establishment.--There shall be, in the Department of 
     Education, an Office of Bilingual Education and Minority 
     Languages Affairs through which the Secretary shall carry out 
     functions relating to bilingual education.
       ``(b) Director.--(1) The Office shall be headed by a 
     Director of Bilingual Education and Minority Languages 
     Affairs, appointed by the Secretary, to whom the Secretary 
     shall delegate all delegable functions relating to bilingual 
     education. The Director shall also be assigned responsibility 
     for recommending improvements and providing technical 
     assistance to other Federal programs serving language-
     minority and limited-English-proficient students and their 
     families and for assisting the Assistant Secretary of the 
     Office of Educational Research and Improvement in identifying 
     research priorities which reflect the needs of language-
     minority and limited-English language proficient students.
       ``(2) The Office shall be organized as the Director 
     determines to be appropriate in order to carry out such 
     functions and responsibilities effectively.
       ``(3) The Secretary shall ensure that limited-English-
     proficient and language-minority students are included in 
     ways that are valid, reliable and fair under all standards 
     and assessment development conducted or funded by the 
     Department.
       ``(c) Report.--The Director shall prepare and, not later 
     than February 1 of every other year, shall submit to 
     Congress, the President, the Governors, and the clearinghouse 
     a report on--
       ``(1) the activities carried out under this title and their 
     effectiveness 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 7204;
       ``(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 student.
       ``(d) Assessment of Gateway Education.--The Secretary shall 
     prepare a report on the education of all students who reside 
     near the United States border with Canada and Mexico or areas 
     or communities which serve as a gateway for immigrants to the 
     United States. Gateway communities shall include Hawaii, the 
     Commonwealth of Puerto Rico, as well as the territories and 
     freely associated nations. The report shall identify trends 
     in student and out-of-school youth immigration trends, 
     appropriate procedures for the international transfer of 
     records, the language proficiency of students living in 
     border and gateway areas, and opportunities for teacher 
     exchange. Such efforts shall be coordinated with other 
     ongoing efforts in this area. A preliminary report on these 
     issues shall be provided to the Congress not later than 2 
     years after the enactment of this Act. The final report 
     including policy proposals for improvements in these areas 
     shall be provided to Congress and the President not later 
     than October 21, 1997.
       ``(e) 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 of Education and other agencies. The Secretary 
     shall consult with the Secretary of Labor, the Secretary of 
     Health and Human Services, the Secretary of Agriculture, 
     Attorney General and 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 Office and 
     relevant programs operated by the Department, including title 
     I and other programs in 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. In no case shall such 
     coordination at the local, State or Federal level permit 
     funds under this title to be used in programs that do not 
     provide bilingual education or special alternative 
     instructional programs for the instruction of language-
     minority or limited-English-proficient students.
       ``(f) The Secretary shall, to the extent feasible, ensure 
     that all data collected shall include for the collection and 
     reporting of data on limited-English-proficient students in 
     all Departmental data keeping and with respect to all Federal 
     education programs.
       ``(g) Staffing Requirements.--The Secretary shall ensure 
     that the Office of Bilingual Education and Minority Language 
     Affairs is staffed with sufficient personnel trained or with 
     experience in bilingual education to discharge effectively 
     the provisions of this title.
       ``(1) Notwithstanding section 403 of the Department of 
     Education Organization Act, the Assistant Secretary may 
     appoint not more than 7 additional employees to serve as 
     staff without regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service.
       ``(2) The employees appointed under paragraph (1) may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, but shall not 
     be paid a rate that exceeds the minimum rate of basic pay 
     payable for GS-15 of the General Schedule.
       ``(h) Reading Applications.--For the purpose of reading 
     applications for competitive grants authorized under this 
     title, the Secretary shall use persons who are not employees 
     of the Federal Government and who are experienced and 
     involved in bilingual education including teachers, 
     researchers, and administrators of educational programs 
     similar to those assisted under this title. Readers of 
     applications for grants involving conservation of Indian 
     languages and other indigenous language which are subject to 
     loss shall include individuals with expertise in such 
     programs. The Secretary shall solicit nominations for 
     application readers from State directors of bilingual 
     education, graduate programs of bilingual education, tribal 
     organizations and professional associations and shall have 
     readers serve for a period of 3 years.
       ``(i) Publication of Proposals.--The Secretary shall 
     publish and disseminate all requests for proposals for 
     programs funded under this title.

     ``SEC. 7402. RELEASE TIME.

       ``Professional development programs funded under this Act 
     shall permit use of funds for professional release time to 
     enable participation in programs assisted under this part.

     ``SEC. 7403. EDUCATION TECHNOLOGY.

       ``Funds available under this Act 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. 7404. NOTIFICATION.

       ``The State educational agency, when applicable, the State 
     Board for postsecondary education, when applicable, the 
     clearinghouse, the applicable Evaluation and Assistance 
     Center and Multifunctional Resource Center shall be notified 
     within three working days of the date a grant is made to an 
     eligible entity within the State.

     ``SEC. 7405. 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.

     ``SEC. 7406. LIMITATION OF AUTHORITY.

       ``The Secretary shall not impose restrictions on the 
     availability of funds authorized under this title other than 
     those set out in this title or other applicable Federal 
     statutes and regulations.

                          ``PART E--TRANSITION

     ``SEC. 7501. TRANSITION PROVISIONS.

       ``Any grant or contract awarded under this title prior to 
     the date of the enactment of the Improving America's Schools 
     Act of 1994 shall be allowed to continue the term of the 
     original award in accordance with the conditions of the 
     original award but not for a period in excess of 3 years from 
     the date of the grant or contract.

            ``PART F--EMERGENCY IMMIGRANT EDUCATION PROGRAM

     ``SEC. 7601. 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. 7602. STATE ADMINISTRATIVE COSTS.

       ``For any fiscal year, a State educational agency may 
     reserve up to 1.5 percent of the amount allocated to it under 
     section 7604 to pay the costs of performing its 
     administrative functions under this part.

     ``SEC. 7603. WITHHOLDING.

       ``Whenever the Secretary, after 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. 7604. 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 1995 
     through 1999 for the purpose set forth in section 7601.
       ``(b) Allocations.--(1) Except as provided in subsections 
     (c) and (d) of this section, of the amount appropriated for 
     each fiscal year for this part, each State participating in 
     this program shall receive a share equal to the proportion of 
     its number of immigrant children and youth who are enrolled 
     in elementary and secondary public schools under the 
     jurisdiction of each local educational agency described in 
     paragraph (2) within that State, and in elementary and 
     secondary nonpublic 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 this program.
       ``(2) 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 elementary or secondary public schools under the 
     jurisdiction of such agencies, and in elementary or secondary 
     nonpublic 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 number is less.
       ``(c) Determinations of Number of Children and Youth.--(1) 
     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 estimate are clearly erroneous.
       ``(2) 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 agency 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 one or more other States to the extent the 
     Secretary determines that such other States will be able to 
     use such additional amount of 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) If appropriations under 
     this part exceed $40,000,000 for a fiscal year, a State 
     educational agency may reserve up to 20 percent of its 
     payment for redistribution through competitive grants to 
     local educational agencies within the State in the following 
     manner:
       ``(A) At least one-half of such grants shall be made to 
     local educational agencies within the State with the highest 
     numbers and percentages of immigrant children and youth.
       ``(B) Remaining funds shall be distributed to local 
     educational agencies within the State with a sudden influx of 
     immigrant children and youth which are otherwise not eligible 
     for assistance under this part.
       ``(2) Local educational agencies with the highest number of 
     immigrant children and youth receiving additional funds under 
     this subsection may make information available on serving 
     immigrant children and youth to areas in the State with 
     sparse numbers of such children.

     ``SEC. 7605. 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 section 7601, including a 
     description of how local educational agencies receiving funds 
     under this part will use such funds to meet such purposes, 
     and how the program designs are consistent with other 
     education improvement plans, including any developed under 
     Goals 2000: Educate America Act, if such plan exists, or 
     title I;
       ``(3) provide assurances that such payments, with the 
     exception of payments reserved under section 7604(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 7604(b)(1);
       ``(4) 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;
       ``(5) provide for making such reports as the Secretary may 
     reasonably require to perform the functions under this part;
       ``(6) provide assurances--
       ``(A) that to the extent consistent with the number of 
     immigrant children and youth enrolled in the elementary or 
     secondary nonpublic 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 these 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 
     and title to any materials, equipment, and property repaired, 
     remodeled, or constructed with those funds shall be in a 
     public agency for the uses and purposes 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 elementary 
     or secondary nonpublic 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;
       ``(7) provide that funds reserved under subsection (e) of 
     section 7604 be awarded on the basis of merit and need 
     consistent with such subsection; and
       ``(8) provide an assurance that State and local educational 
     agencies receiving funds under this part will comply with the 
     requirements of section 1121(b).

     ``SEC. 7606. PAYMENTS.

       ``(a) Amount.--The Secretary shall pay by not later than 
     June 1 of each year to each State educational agency that has 
     its application approved under section 7605 the amount of the 
     State's allocation as determined under section 7604.
       ``(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 elementary and secondary nonpublic 
     schools, as required by section 7605(a)(6), 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 to such children 
     through arrangements which shall be subject to the 
     requirements of this part. Such waivers shall be subject to 
     consultation, withholding, notice, and judicial review 
     requirements in accordance with the provisions of title I.

     ``SEC. 7607. 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; and
       ``(5) such other activities, related to the purposes 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 one or more local educational agencies, institutions of 
     higher education, and non-profit organizations to carry out 
     the approved program.
       ``(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 non-profit 
     organization, or a consortium of such entities to carry out 
     an approved program, including a program to serve out-of-
     school youth.

     ``SEC. 7608. REPORTS.

       ``(a) Triennial Report.--Each State educational agency 
     receiving funds under this part shall submit, once every 3 
     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 3 years, a report to the appropriate committees of the 
     Congress concerning programs under this part.

     ``SEC. 7609. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out the provisions of this 
     part, there are authorized to be appropriated $40,000,000 in 
     fiscal year 1995, and such sums as may be necessary for each 
     of the fiscal years 1996, 1997, 1998, and 1999.

                        ``TITLE VIII--IMPACT AID

     ``SEC. 8001. FINDINGS.

       ``The Congress finds that--
       ``(1) certain activities of the Federal Government place a 
     financial burden on the local educational agencies serving 
     areas where such activities are carried out; and
       ``(2) it is the shared responsibility of the Federal 
     Government, the States, and local educational agencies to 
     provide for the education of children connected to those 
     activities.

     ``SEC. 8002. PURPOSE.

       ``In order to fulfill the Federal responsibility to assist 
     with the provision of educational services to federally 
     connected children, and to help them meet challenging State 
     standards, it is the purpose of this title to provide 
     financial assistance to local educational agencies that--
       ``(1) experience a substantial and continuing financial 
     burden due to the acquisition of real property by the United 
     States;
       ``(2) educate children who reside on Federal property and 
     whose parents are employed on Federal property;
       ``(3) educate children of parents who are in the military 
     services and children who live in low-rent housing;
       ``(4) experience sudden and substantial increases in 
     enrollments because of military realignments; or
       ``(5) need special assistance with capital expenditures for 
     construction activities because of the enrollments of 
     substantial numbers of children who reside on Indian lands.

     ``SEC. 8003. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
                   PROPERTY.

       ``(a) In General.--Where the Secretary, after consultation 
     with any local educational agency and with the appropriate 
     State educational agency, determines for a fiscal year ending 
     prior to October 1, 1999--
       ``(1) that the United States owns Federal property in the 
     local educational agency, and that such property--
       ``(A) has been acquired by the United States since 1938;
       ``(B) was not acquired by exchange for other Federal 
     property in the local educational agency which the United 
     States owned before 1939; and
       ``(C) had an assessed value (determined as of the time or 
     times when so acquired) aggregating 10 percent or more of the 
     assessed value of all real property in the local educational 
     agency (similarly determined as of the time or times when 
     such Federal property was so acquired); and
       ``(2) that such agency is not being substantially 
     compensated for the loss in revenue resulting from such 
     ownership by increases in revenue accruing to the agency from 
     the conduct of Federal activities with respect to such 
     Federal property,

     then such agency shall be paid the amount described in 
     subsection (b).
       ``(b) Amount.--
       ``(1) In general.--(A) The amount that a local educational 
     agency shall be paid under subsection (a) for a fiscal year 
     shall be calculated in accordance with paragraph (2), except 
     that such amount shall be reduced by the Secretary by an 
     amount equal to the amount of revenue, if any, that such 
     agency received from activities conducted on such property 
     during the previous fiscal year.
       ``(B) If funds appropriated under section 8014(a) are 
     insufficient to pay the amount determined under subparagraph 
     (A), the Secretary shall ratably reduce the payment to each 
     eligible local educational agency.
       ``(C) Notwithstanding any other provision of this 
     subsection, a local educational agency may not be paid an 
     amount under this section which exceeds the difference of--
       ``(i) the maximum amount that such agency is eligible to 
     receive for such fiscal year under section 8004(b)(1)(C); and
       ``(ii) the amount that such agency receives in such fiscal 
     year under section 8004(b)(2).
       ``(2) Application of current levied real property tax 
     rate.--In making a determination of the amount that would 
     have been derived in such year under paragraph (1)(A)(i), the 
     Secretary shall apply the current levied real property tax 
     rate for current expenditures levied by fiscally independent 
     local educational agencies or imputed, for fiscally dependent 
     local educational agencies, to the current annually 
     determined aggregate assessed value of such acquired Federal 
     property.
       ``(3) Determination of aggregate assessed value.--Such 
     aggregate assessed value of such acquired Federal property 
     shall be determined (on the basis of the highest and best use 
     of property adjacent to such acquired Federal property as of 
     the time such value is determined), and provided to the 
     Secretary, by the local official responsible for assessing 
     the value of real property located in the jurisdiction of 
     such local educational agency for the purpose of levying a 
     property tax.
       ``(c) Applicability to Tennessee Valley Authority Act.--For 
     the purposes of this section, any real property with respect 
     to which payments are being made under section 13 of the 
     Tennessee Valley Authority Act of 1933 shall not be regarded 
     as Federal property.
       ``(d) Ownership by United States.--The United States shall 
     be deemed to own Federal property for the purposes of this 
     Act, where--
       ``(1) prior to the transfer of Federal property, the United 
     States owned Federal property meeting the requirements of 
     subparagraphs (A), (B), and (C) of subsection (a)(1); and
       ``(2) the United States transfers a portion of the property 
     referred to in paragraph (1) to another nontaxable entity, 
     and the United States--
       ``(A) restricts some or any construction on such property;
       ``(B) requires that the property be used in perpetuity for 
     the public purposes for which it was conveyed;
       ``(C) requires the grantee of the property to report to the 
     Federal government (or its agent) containing information on 
     the use of the property;
       ``(D) except with the approval of the Federal government 
     (or its agent), prohibits the sale, lease, assignment, or 
     other disposal of the property unless such sale, lease, 
     assignment, or other disposal is to another eligible 
     government agency; and
       ``(E) reserves to the Federal government a right of 
     reversion at any time the Federal government (or its agent) 
     deems it necessary for the national defense.

     ``SEC. 8004. PAYMENTS FOR ELIGIBLE FEDERALLY-CONNECTED 
                   CHILDREN.

       ``(a) Computation of Payment.--
       ``(1) In general.--For the purpose of computing the amount 
     that a local educational agency is eligible to receive under 
     subsection (b), (d), or (f) for any fiscal year, the 
     Secretary shall determine the number of children who were in 
     average daily attendance in the schools of such agency, and 
     for whom such agency provided free public education, during 
     the preceding school year and who, while in attendance at 
     such schools--
       ``(A) resided on Federal property with a parent employed on 
     Federal property situated in whole or in part within the 
     boundaries of the school district of such agency;
       ``(B) resided on Federal property and had a parent on 
     active duty in the uniformed services (as defined in section 
     101 of title 37, United States Code);
       ``(C) resided on Indian lands;
       ``(D) had a parent on active duty in the uniformed services 
     (as defined by section 101 of title 37, United States Code) 
     but did not reside on Federal property; or
       ``(E) resided in low-rent housing.
       ``(2) Determination of weighted student units.--For 
     purposes of computing the basic support payment under 
     subsection (b), the Secretary shall calculate the total 
     number of weighted student units for a local educational 
     agency by adding together the results obtained by the 
     following computations:
       ``(A) Multiply the number of children described in 
     subparagraphs (A) and (B) of paragraph (1) by a factor of 
     1.0.
       ``(B) Multiply the number of children described in 
     paragraph (1)(C) by a factor of 1.25.
       ``(C) Multiply the number of children described in 
     subparagraphs (A) and (B) of paragraph (1) by a factor of .35 
     if the local educational agency has--
       ``(i) a number of such children described in such 
     subparagraphs which exceeds 6,500; and
       ``(ii) an average daily attendance for all children which 
     exceeds 100,000.
       ``(D) Multiply the number of children described in 
     subparagraphs (D) and (E) of paragraph (1) by a factor of 
     .20.
       ``(b) Basic Support Payments and Payments With Respect to 
     Fiscal Years in Which Insufficient Funds Are Appropriated.--
       ``(1) Basic support payments.--
       ``(A) In general.--From the amount appropriated under 
     section 8014(b) for a fiscal year, the Secretary is 
     authorized to make basic support payments to eligible local 
     educational agencies with children described under subsection 
     (a).
       ``(B) Eligibility.--A local educational agency shall be 
     entitled to receive a basic support payment under 
     subparagraph (A) for a fiscal year with respect to a number 
     of children determined under subsection (a) only if the 
     number of children so determined with respect to such agency 
     amounts to the lesser of--
       ``(i) at least 400 such children, or
       ``(ii) a number of such children which equals at least 3 
     percent of the total number of children who were in average 
     daily attendance, during such year, at the schools of such 
     agency and for whom such agency provided free public 
     education.
       ``(C) Maximum amount.--The maximum amount that a local 
     educational agency is eligible to receive under this 
     subsection for any fiscal year is the sum of the total 
     weighted student units, as computed under subsection (a)(2), 
     multiplied by--
       ``(i) the greater of--

       ``(I) one-half of the average per pupil expenditure of the 
     State in which the local educational agency is located for 
     the 3rd preceding fiscal year, or
       ``(II) one-half of the average per pupil expenditures of 
     all of the States for the 3rd preceding fiscal year;

       ``(ii) the comparable local contribution rate certified by 
     the State, as determined under regulations prescribed to 
     carry out the Act of September 30, 1950 (Public Law 874, 81st 
     Congress), as in effect on January 1, 1994; or
       ``(iii) the average per pupil expenditure of the State in 
     which the local educational agency is located, multiplied by 
     the local contribution percentage.
       ``(2) Payments with respect to fiscal years in which 
     insufficient funds are appropriated.--
       ``(A) In general.--For any fiscal year in which the sums 
     appropriated under section 8014(b) are insufficient to pay to 
     each local educational agency the full amount computed under 
     paragraph (1), the Secretary shall make payments based upon 
     the provisions of this paragraph.
       ``(B) Learning opportunity threshold payments.--(i) For 
     fiscal years described in subparagraph (A), the Secretary 
     shall compute a learning opportunity threshold payment 
     (hereinafter `threshold payment') by multiplying the amount 
     obtained under paragraph (1)(C) by the total percentage 
     obtained by adding--
       ``(I) the percentage of federally connected children for 
     each local educational agency determined by calculating the 
     fraction, the numerator of which is the total number of 
     children described under subsection (a)(1) and the 
     denominator of which is the total number of children in 
     average daily attendance at the schools served by such 
     agency; and
       ``(II) the percentage that funds under this paragraph 
     represent of the total budget of the local educational 
     agency, determined by calculating the fraction, the numerator 
     of which is the total amount of funds calculated for each 
     educational agency under this paragraph (not including 
     amounts received under subsection (f)), and the denominator 
     of which is the total current expenditures for such agency.
       ``(ii) Such total percentage used to calculate threshold 
     payments under paragraph (1) shall not exceed 100.
       ``(C) Ratable distribution.--For fiscal years described in 
     subparagraph (A), the Secretary shall make payments as a 
     ratable distribution based upon the computation made under 
     subparagraph (B).
       ``(c) Prior Year Data.--All calculations under this section 
     shall be based upon data for each local educational agency 
     from the fiscal year preceding the fiscal year for which the 
     agency is making application for payment.
       ``(d) Use of Funds for Children With Disabilities.--
       ``(1) In general.--From the amount appropriated under 
     section 8014(c) for a fiscal year, the Secretary shall pay to 
     each eligible local educational agency, on a pro rata basis, 
     the amounts determined by--
       ``(A) multiplying the number of children described in 
     subparagraphs (B) and (C) of subsection (a)(1) who are 
     eligible to receive services under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.) by a 
     factor of 1.0; and
       ``(B) multiplying the number of children described in 
     subparagraph (D) of subsection (a)(1) who are eligible to 
     receive services under such Act by a factor of .5.
       ``(2) Use of funds.--A local educational agency that 
     receives funds under paragraph (1) shall use such funds to 
     provide a free appropriate public education to children 
     described in paragraph (1) in accordance with the Individuals 
     with Disabilities Education Act.
       ``(e) Hold-Harmless Amounts.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the total amount that the Secretary shall pay 
     to a local educational agency under subsections (b) and (f)--
       ``(A) for fiscal year 1995, shall not be less than 80 
     percent of the payment such agency received for fiscal year 
     1994 under section 3(a) of the Act of September 30 , 1950 
     (Public Law 81-874, 81st Congress), as in effect for fiscal 
     year 1994;
       ``(B) for fiscal year 1996, shall not be less than 60 
     percent of such payment received for fiscal year 1994; and
       ``(C) for fiscal year 1997, shall not be less than 40 
     percent of such payment received for fiscal year 1994.
       ``(2) Reduction in payments.--In order to make payments to 
     local educational agencies in accordance with paragraph (1), 
     the Secretary shall reduce payments to other local 
     educational agencies determined under subsection (b).
       ``(f) Additional Assistance for Heavily Impacted Local 
     Educational Agencies.--
       ``(1) Reservation.--From amounts appropriated under section 
     8014(d) for a fiscal year, the Secretary shall provide 
     additional assistance to meet special circumstances relating 
     to the provision of education in local educational agencies 
     eligible to receive assistance under this section.
       ``(2) Eligibility.--A local educational agency shall be 
     eligible to receive additional assistance under this 
     subsection only if such agency--
       ``(A)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 40 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 95 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State;
       ``(B)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 35 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 125 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State; or
       ``(C) is a local education agency whose boundaries are the 
     same as a Federal military installation or includes Federal 
     property under exclusive Federal jurisdiction.
       ``(3) Maximum payments.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall determine the maximum amount that a local 
     educational agency may receive under this subsection in 
     accordance with the following computations:
       ``(i) The Secretary shall first determine the greater of--

       ``(I) the average per pupil expenditure of the State in 
     which the local educational agency is located or the average 
     per pupil expenditure of all the States;
       ``(II) the average per pupil expenditure of generally 
     comparable school districts located in the State of the local 
     educational agency, as defined by the Secretary in 
     regulations; or
       ``(III) the average per pupil expenditure of three 
     generally comparable school districts located in the State of 
     the local educational agency, as defined by the Secretary in 
     regulations.

       ``(ii) The Secretary shall next subtract from the amount 
     determined under clause (i) the average amount of State aid 
     per pupil received by the local educational agency.
       ``(iii) The Secretary shall next multiply the amount 
     determined under clause (ii) by the sum of the total weighted 
     units of the local educational agency, as computed under 
     subsection (a)(2).
       ``(iv) If the tax rate of the local educational agency is 
     greater than 94 percent, but less than 100 percent, of the 
     tax rate of comparable school districts, the Secretary shall 
     next multiply the amount determined under clause (iii) by the 
     percentage that the tax rate of the local educational agency 
     is of--

       ``(I) the average tax rate of its generally comparable 
     school districts; or
       ``(II) the average tax rate of all the school districts in 
     the State in which the local educational agency is located.

       ``(v) The Secretary shall next subtract the total amount of 
     payments received by a local educational agency under 
     subsections (b) and (d) for a fiscal year from the amount 
     determined under clause (iii) or clause (iv), as the case may 
     be.
       ``(B) Special rule.--With respect to payments to local 
     educational agencies described in subparagraphs (B) and (C) 
     of paragraph (2), the maximum amount of such payments shall 
     be equal to the product of the average per pupil expenditure 
     of all the States multiplied by .7, except that such amount 
     may not exceed 125 percent of the average per pupil 
     expenditure of all local educational agencies in the State.
       ``(4) Current year data.--The Secretary shall, for purposes 
     of providing assistance under this subsection, use--
       ``(A) data from the fiscal year in which the local 
     educational agency is applying for assistance under this 
     subsection; or
       ``(B) the most recent data available which is adjusted to 
     such fiscal year.

     ``SEC. 8005. POLICIES AND PROCEDURES RELATING TO CHILDREN 
                   RESIDING ON INDIAN LANDS.

       ``(a) In General.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 shall establish policies 
     and procedures to ensure that--
       ``(1) such children participate in programs and activities 
     supported by such funds on an equal basis with all other 
     children;
       ``(2) parents of such children and Indian tribes are 
     afforded an opportunity to present their views on such 
     programs and activities, including an opportunity to make 
     recommendations on the needs of those children and how they 
     may help those children realize the benefits of those 
     programs and activities;
       ``(3) parents and Indian tribes are consulted and involved 
     in planning and developing such programs and activities;
       ``(4) relevant applications, evaluations, and program plans 
     are disseminated to the parents and Indian tribes; and
       ``(5) parents and Indian tribes are afforded an opportunity 
     to present their views on the agency's general educational 
     program to such agency.
       ``(b) Records.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 shall maintain records 
     demonstrating its compliance with requirements contained in 
     subsection (a).
       ``(c) Waiver.--A local educational agency that claims 
     children residing on Indian lands for the purpose of 
     receiving funds under section 8004 is excused from the 
     requirements contained in subsections (a) and (b) for any 
     year with respect to any Indian tribe from which it has 
     received a written statement that the agency need not comply 
     with those subsections because the tribe is satisfied with 
     the provision of educational services by such agency to such 
     children.
       ``(d) Technical Assistance and Enforcement.--The Secretary 
     shall--
       ``(1) provide technical assistance to local educational 
     agencies, parents, and Indian tribes to enable them to carry 
     out this section; and
       ``(2) enforce this section through such actions, which may 
     include the withholding of funds, as the Secretary determines 
     to be appropriate, after affording the affected local 
     educational agency, parents, and Indian tribe an opportunity 
     to present their views.

     ``SEC. 8006. APPLICATION FOR PAYMENTS UNDER SECTIONS 8003 AND 
                   8004.

       ``(a) In General.--A local educational agency desiring to 
     receive a payment under section 8003 or 8004 shall--
       ``(1) submit an application for such payment to the 
     Secretary; and
       ``(2) provide a copy of such application to the State 
     educational agency.
       ``(b) Contents.--Each such application shall be submitted 
     in such form and manner, and shall contain such information, 
     as the Secretary may require, including--
       ``(1) information to determine the eligibility of the local 
     educational agency for a payment and the amount of such 
     payment; and
       ``(2) where applicable, an assurance that such agency is in 
     compliance with section 8005 (relating to children residing 
     on Indian lands).
       ``(c) Deadline for Submission.--The Secretaryshall 
     establish deadlines for the submission of applications under 
     this section.
       ``(d) Approval.--
       ``(1) In general.--The Secretary shall approve an 
     application submitted under this section that--
       ``(A) is filed by the deadline established under subsection 
     (c); and
       ``(B) otherwise meets the requirements of this title.
       ``(2) Reduction in payment.--The Secretary shall approve an 
     application filed up to 60 days after a deadline established 
     under subsection (c) that otherwise meets the requirements of 
     this title, except that, notwithstanding section 8004(e), the 
     Secretary shall reduce the payment based on such late 
     application by 10 percent of the amount that would otherwise 
     be paid.
       ``(3) Late applications.--The Secretary shall not accept or 
     approve any application that is filed more than 60 days after 
     a deadline established under subsection (c).

     ``SEC. 8007. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN 
                   ATTENDANCE OF MILITARY DEPENDENTS.

       ``(a) Eligibility.--A local educational agency is eligible 
     for a payment under this section if--
       ``(1) the number of children in average daily attendance 
     during the current school year is at least ten percent or 100 
     more than the number of children in average daily attendance 
     in the preceding school year; and
       ``(2) the number of children in average daily attendance 
     with a parent on active duty (as defined in section 101(18) 
     of title 37, United States Code) in the Armed Forces who are 
     in attendance at such agency because of the assignment of 
     their parent to a new duty station between July 1 and 
     September 30, inclusive, of the current year, as certified by 
     an appropriate local official of the Department of Defense, 
     is at least ten percent or 100 more than the number of 
     children in average daily attendance in the preceding school 
     year.
       ``(b) Application.--A local educational agency that wishes 
     to receive a payment under this section shall file an 
     application with the Secretary by October 15 of the current 
     school year, in such manner and containing such information 
     as the Secretary may prescribe, including information 
     demonstrating that it is eligible for such a payment.
       ``(c) Children To Be Counted.--For each eligible local 
     educational agency that applies for a payment under this 
     section, the Secretary shall determine the lesser of--
       ``(1) the increase in the number of children in average 
     daily attendance from the preceding year; and
       ``(2) the number of children described in subsection 
     (a)(2).
       ``(d) Payments.--From the amount appropriated for a fiscal 
     year under section 8014(c), the Secretary shall pay each 
     local educational agency with an approved application an 
     amount, not to exceed $200 per eligible child, equal to--
       ``(1) the amount available to carry out this section, 
     including any funds carried over from prior years, divided by 
     the number of children determined under subsection (c) for 
     all such local educational agencies; multiplied by
       ``(2) the number of such children determined for that local 
     educational agency.
       ``(e) Notification Process.--
       ``(1) Establishment.--The Secretary shall endeavor to 
     establish, with the Secretary of Defense, a notification 
     process relating to the closure of Department of Defense 
     facilities, or the adjustment of personnel levels assigned to 
     such facilities, which may substantially affect the student 
     enrollment levels of local educational agencies which receive 
     or may receive payments under this title.
       ``(2) Information.--Such process shall provide timely 
     information regarding such closures and such adjustments--
       ``(A) by the Secretary of Defense to the Secretary; and
       ``(B) by the Secretary to the affected local educational 
     agencies.

     ``SEC. 8008. PAYMENTS FOR CONSTRUCTION.

       ``(a) Payments Authorized.--From the amount appropriated 
     for each fiscal year under section 8014(d), the Secretary 
     shall make payments to each local educational agency--
       ``(1) that receives a basic payment under section 8004(b); 
     and
       ``(2) in which the number of children determined under 
     section 8004(a) who resided on Indian lands constituted at 
     least 50 percent of the number of children who were in 
     average daily attendance in the schools of such agency during 
     the preceding school year.
       ``(b) Amount of Payments.--The amount of a payment to each 
     agency described in paragraph (2) of subsection (a) shall be 
     equal to--
       ``(1) the amount appropriated under section 8014(d); 
     divided by
       ``(2) the number of children determined under section 
     8004(a) for all such agencies, but not including any children 
     attending a school assisted or provided by the Secretary 
     under section 8009 or section 10 of the Act of September 23, 
     1950 (Public Law 815, 81st Congress; 20 U.S.C. 640) as in 
     effect prior to the date of the enactment of the Improving 
     America's Schools Act of 1994; multiplied by
       ``(3) the number of such children determined for such 
     agency.
       ``(c) Use of Funds.--Any local educational agency that 
     receives funds under this section shall use such funds for 
     construction, as defined in section 8013(3) of this title.

     ``SEC. 8009. FACILITIES.

       ``(a) Current Facilities.--From the amount appropriated for 
     any fiscal year under section 8014(e), the Secretary may 
     continue to provide assistance for school facilities that 
     were supported by the Secretary under section 10 of the Act 
     of September 23, 1950 (Public Law 815, 81st Congress; 20 
     U.S.C. 640) as in effect prior to the date of the enactment 
     of the Improving America's Schools Act of 1994.
       ``(b) Transfer of Facilities.--
       ``(1) In general.--The Secretary shall, as soon as 
     practicable, transfer to the appropriate local educational 
     agency or another appropriate entity all the right, title, 
     and interest of the United States in and to each facility 
     provided under section 10 of the Act of September 23, 1950 
     (Public Law 815, 81st Congress; 20 U.S.C. 640), or under 
     section 204 or 310 of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress), as in effect on January 1, 1958.
       ``(2) Other requirements.--Any such transfer shall be 
     without charge to such agency or entity, and prior to such 
     transfer, the transfer must be consented to by the local 
     education agency or other appropriate entity, and may be made 
     on such terms and conditions as the Secretary deems 
     appropriate to carry out the purposes of this Act.

     ``SEC. 8010. STATE CONSIDERATION OF PAYMENTS IN PROVIDING 
                   STATE AID.

       ``(a) General Prohibition.--Except as provided in 
     subsection (b), a State may not--
       ``(1) consider payments under this title or under the Act 
     of September 30, 1950 (Public Law 874, 81st Congress) in 
     determining for any fiscal year--
       ``(A) the eligibility of a local educational agency for 
     State aid for free public education; or
       ``(B) the amount of such aid; or
       ``(2) make such aid available to local educational agencies 
     in a manner that results in less State aid to any local 
     educational agency that is eligible for such payment than it 
     would receive if it were not so eligible.
       ``(b) State Equalization Plans.--
       ``(1) In general.--A State may reduce State aid to a local 
     educational agency that receives a payment under sections 
     8003 and 8004(a) (except the amount calculated in excess of 
     1.0 under subparagraph (B) of subsection (a)(2)) or under the 
     Act of September 30, 1950 (Public Law 874, 81st Congress) as 
     such Act existed prior to the enactment of the Improving 
     America's Schools Act of 1994 (other than an increase in 
     payments described in paragraphs (2)(B), (2)(C), (2)(D), or 
     (3)(B)(ii) of section 3(d) of such Act of September 30, 1950) 
     for any fiscal year if the Secretary determines, and 
     certifies under subsection (c)(3)(A), that such State has in 
     effect a program of State aid that equalizes expenditures for 
     free public education among local educational agencies in 
     such State.
       ``(2) Computation.--
       ``(A) In general.--For purposes of paragraph (1), a program 
     of State aid equalizes expenditures among local educational 
     agencies if, in the second preceding fiscal year, the amount 
     of per-pupil expenditures made by, or per-pupil revenues 
     available to, the local educational agency in the State with 
     the highest such per-pupil expenditures or revenues did not 
     exceed the amount of such per-pupil expenditures made by, or 
     per-pupil revenues available to, the local educational agency 
     in the State with the lowest such expenditures or revenues by 
     more than 10 percent.
       ``(B) Other factors.--In making a determination under this 
     subsection, the Secretary shall--
       ``(i) disregard local educational agencies with per-pupil 
     expenditures or revenues above the 95th percentile or below 
     the 5th percentile of such expenditures or revenues in the 
     State; and
       ``(ii) take into account the extent to which a program of 
     State aid reflects the additional cost of providing free 
     public education in particular types of local educational 
     agencies, such as those that are geographically isolated, or 
     to particular types of students, such as children with 
     disabilities.
       ``(3) Exception.--Notwithstanding paragraph (2), if the 
     Secretary determines that the State has substantially revised 
     its program of State aid, the Secretary may certify such 
     program for any fiscal year only if--
       ``(A) the Secretary determines, on the basis of projected 
     data, that the State's program will meet the 10 percent 
     disparity standard described in paragraph (2) in that fiscal 
     year; and
       ``(B) the State provides an assurance to the Secretary 
     that, if final data do not demonstrate that the State's 
     program met such standard for that year (or that it met such 
     standard with a greater percentage of disparity than 
     anticipated), the State will pay to each affected local 
     educational agency the amount by which it reduced State aid 
     to the local educational agency on the basis of such 
     certification, or a proportionate share thereof, as the case 
     may be.
       ``(c) Procedures For Review of State Equalization Plans.--
       ``(1) Written notice.--
       ``(A) In general.--Any State that wishes to consider 
     payments described in subsection (b)(1) in providing State 
     aid to local educational agencies shall submit to the 
     Secretary, not later than 120 days before the beginning of 
     the State's fiscal year, a written notice of its intention to 
     do so.
       ``(B) Contents.--Such notice shall be in the form and 
     contain the information the Secretary requires, including 
     evidence that the State has notified each local educational 
     agency in the State of its intention to consider such 
     payments in providing State aid.
       ``(2) Opportunity to present views.--Before making a 
     determination under subsection (b), the Secretary shall 
     afford the State, and local educational agencies in the 
     State, an opportunity to present their views.
       ``(3) Qualification procedures.--If the Secretary 
     determines that a program of State aid qualifies under 
     subsection (b), the Secretary shall--
       ``(A) certify the program and so notify the State; and
       ``(B) afford an opportunity for a hearing, in accordance 
     with section 8012(a), to any local educational agency 
     adversely affected by such certification.
       ``(4) Non-qualification procedures.--If the Secretary 
     determines that a program of State aid does not qualify under 
     subsection (b), the Secretary shall--
       ``(A) so notify the State; and
       ``(B) afford an opportunity for a hearing, in accordance 
     with section 8012(a), to the State, and to any local 
     educational agency adversely affected by such determination.
       ``(d) Reductions of State Aid.--
       ``(1) In general.--A State whose program of State aid has 
     been certified by the Secretary under subsection (c)(3) may 
     reduce the amount of such aid provided to a local educational 
     agency that receives a payment under subsection (b) by any 
     amount up to--
       ``(A) the amount of such payment (excluding amounts 
     provided under subsections (d) and (f)); multiplied by
       ``(B) 100 percent minus the percentage of disparity 
     determined under subsection (b).
       ``(2) Prohibition.--A State may not make a reduction 
     described in paragraph (1) before its program of State aid 
     has been certified by the Secretary under subsection (c)(3).
       ``(e) Remedies for State Violations.--
       ``(1) In general.--The Secretary or any aggrieved local 
     educational agency may, without exhausting administrative 
     remedies, bring an action in a United States district court 
     against any State that violates subsection (a) or subsection 
     (d)(2) or fails to carry out an assurance provided under 
     subsection (b)(3)(B).
       ``(2) Immunity.--A State shall not be immune under the 
     eleventh amendment to the Constitution of the United States 
     from an action described in paragraph (1).
       ``(3) Relief.--The court shall grant such relief as it 
     determines is appropriate, which may include attorney's fees 
     to a prevailing local educational agency.

     ``SEC. 8011. FEDERAL ADMINISTRATION.

       ``(a) Payments in Whole Dollar Amounts--The Secretary shall 
     round any payments under this title to the nearest whole 
     dollar amount.
       ``(b) Other Agencies.--Each Federal agency administering 
     Federal property on which children reside, and each agency 
     principally responsible for an activity that may occasion 
     assistance under this title, shall, to the maximum extent 
     practicable, comply with requests of the Secretary for 
     information the Secretary may require to carry out this 
     title.

     ``SEC. 8012. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

       ``(a) Administrative Hearings.--A local educational agency 
     and a State that is adversely affected by any action of the 
     Secretary under this title shall be entitled to a hearing on 
     such action in the same manner as if such agency were a 
     person under chapter 5 of title 5, United States Code.
       ``(b) Judicial Review of Secretarial Action.--
       ``(1) In general.--A local educational agency or a State 
     aggrieved by the Secretary's final decision following an 
     agency proceeding under subsection (a) may, within 60 days 
     after receiving notice of such decision, file with the United 
     States court of appeals for the circuit in which such agency 
     or State is located a petition for review of that action. The 
     clerk of the court shall promptly transmit a copy of the 
     petition to the Secretary. The Secretary shall then file in 
     the court the record of the proceedings on which the 
     Secretary's action was based, as provided in section 2112 of 
     title 28, United States Code.
       ``(2) Findings of fact.--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. The 
     Secretary may thereupon 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.
       ``(3) Review.--The court shall have exclusive jurisdiction 
     to affirm the action of the Secretary or to set it 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.

     ``SEC. 8013. DEFINITIONS.

       ``For purposes of this title, the following definitions 
     apply:
       ``(1) Armed forces.--The term `Armed Forces' means the 
     Army, Navy, Air Force, and Marine Corps.
       ``(2) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' means--
       ``(A) the aggregate current expenditures of all local 
     educational agencies in the State; divided by
       ``(B) the total number of children in average daily 
     attendance for whom such agencies provided free public 
     education.
       ``(3) Construction.--The term `construction' means--
       ``(A) the preparation of drawings and specifications for 
     school facilities;
       ``(B) erecting, building, acquiring, altering, remodeling, 
     repairing, or extending school facilities;
       ``(C) inspecting and supervising the construction of school 
     facilities; and
       ``(D) debt service for such activities.
       ``(4) Federal property.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     through (F), the term `Federal property' means real property 
     that is not subject to taxation by any State or any political 
     subdivision of a State due to Federal agreement, law, or 
     policy, and that is--
       ``(i) owned by the United States or leased by the United 
     States from another entity;
       ``(ii)(I) held in trust by the United States for individual 
     Indians or Indian tribes;
       ``(II) held by individual Indians or Indian tribes subject 
     to restrictions on alienation imposed by the United States;
       ``(III) conveyed at any time under the Alaska Native Claims 
     Settlement Act (Public Law 92-203, 43 U.S.C. 1601 et seq.) to 
     a Native individual, Native group, or Village or Regional 
     corporation;
       ``(IV) public land owned by the United States that is 
     designated for the sole use and benefit of individual Indians 
     or Indian tribes; or
       ``(V) used for low-rent housing, as otherwise described in 
     this paragraph, that is located on land described in 
     subclause (I), (II), (III), or (IV) of this clause or on land 
     that met one of those descriptions immediately before its use 
     for such housing;
       ``(iii)(I) part of a low-rent housing project assisted 
     under the United States Housing Act of 1937; or
       ``(II) used to provide housing for homeless children at 
     closed military installations pursuant to section 501 of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11411); or
       ``(iv) owned by a foreign government or by an international 
     organization.
       ``(B) Schools providing flight training to members of air 
     force.--The term `Federal property' includes, so long as not 
     subject to taxation by any State or any political subdivision 
     of a State, and whether or not that tax exemption is due to 
     Federal agreement, law, or policy, any school providing 
     flight training to members of the Air Force under contract 
     with the Air Force at an airport owned by a State or 
     political subdivision of a State.
       ``(C) Non-federal easements, leases, licenses, permits, 
     improvements, and certain other real property.--The term 
     `Federal property' includes, whether or not subject to 
     taxation by a State or a political subdivision of a State--
       ``(i) any non-Federal easement, lease, license, permit, or 
     other such interest in Federal property as otherwise 
     described in this paragraph, but not including any non-
     Federal fee-simple interest;
       ``(ii) any improvement on Federal property as otherwise 
     described in this paragraph; and
       ``(iii) real property that, immediately before its sale or 
     transfer to a non-Federal party, was owned by the United 
     States and otherwise qualified as Federal property described 
     in this paragraph, but only for one year beyond the end of 
     the fiscal year of such sale or transfer.
       ``(D) Certain postal service property and pipelines and 
     utility lines.--Notwithstanding any other provision of this 
     paragraph, the term `Federal property' does not include--
       ``(i) any real property under the jurisdiction of the 
     United States Postal Service that is used primarily for the 
     provision of postal services; or
       ``(ii) pipelines and utility lines.
       ``(E) Property with respect to which state or local tax 
     revenues may not be expended, allocated, or available for 
     free public education.--Notwithstanding any other provision 
     of this paragraph, `Federal property' does not include any 
     property on which children reside that is otherwise described 
     in this paragraph if--
       ``(i) no tax revenues of the State or of any political 
     subdivision of the State may be expended for the free public 
     education of children who reside on that Federal property; or
       ``(ii) no tax revenues of the State are allocated or 
     available for the free public education of such children.
       ``(F) Certain property located in state of oklahoma owned 
     by indian housing authority for low-income housing.--The term 
     `Federal property' includes any real property located in the 
     State of Oklahoma that--
       ``(i) is owned by an Indian housing authority and used for 
     low-income housing (including housing assisted under the 
     mutual help ownership opportunity program under section 202 
     of the United States Housing Act of 1937); and
       ``(ii) at any time--

       ``(I) was designated by treaty as tribal land; or
       ``(II) satisfied the definition of Federal property under 
     section 403(1)(A) of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress).

       ``(5) 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 or secondary education, as determined 
     under State law, except that, notwithstanding State law, such 
     term--
       ``(i) includes preschool education; and
       ``(ii) does not include any education provided beyond grade 
     12.
       ``(6) Indian lands.--The term `Indian lands' means any 
     Federal property described in paragraph (4)(A)(ii) or (4)(F).
       ``(7) Local contribution percentage.--
       ``(A) In general.--The term `local contribution percentage' 
     means the percentage of current expenditures in the State 
     derived from local and intermediate sources, as reported to 
     and verified by the National Center for Education Statistics.
       ``(B) Hawaii and district of columbia.--Notwithstanding 
     subparagraph (A), the local contribution percentage for 
     Hawaii and for the District of Columbia shall be the local 
     contribution percentage computed for the Nation as a whole.
       ``(8) Local educational agency.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `local educational agency'--
       ``(i) means a board of education or other legally 
     constituted local school authority having administrative 
     control and direction of free public education in a county, 
     township, independent school district, or other school 
     district; and
       ``(ii) includes any State agency that directly operates and 
     maintains facilities for providing free public education.
       ``(B) Exception.--The term `local educational agency' does 
     not include any agency or school authority that the Secretary 
     determines on a case-by-case basis--
       ``(i) was constituted or reconstituted primarily for the 
     purpose of receiving assistance under this title or the Act 
     of September 30, 1950 (Public Law 874, 81st Congress) or 
     increasing the amount of such assistance; or
       ``(ii) is not constituted or reconstituted for legitimate 
     educational purposes.
       ``(9) Low-rent housing.--The term `low-rent housing' means 
     housing located on property that is described paragraph 
     (4)(A)(iii).
       ``(10) Revenue derived from local sources.--The term 
     `revenue derived from local sources' means--
       ``(A) revenue produced within the boundaries of a local 
     educational agency and available to such agency for its use; 
     or
       ``(B) funds collected by another governmental unit, but 
     distributed back to a local educational agency in the same 
     proportion as it was collected as a local revenue source.
       ``(11) School facilities.--The term `school facilities' 
     includes--
       ``(A) classrooms and related facilities; and
       ``(B) equipment, machinery, and utilities necessary or 
     appropriate for school purposes.

     ``SEC. 8014. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Payments for Federal Acquisition of Real Property.--
     For the purpose of making payments under section 8003, there 
     are authorized to be appropriated such sums as may be 
     necessary for each of the fiscal years 1995 through 1999.
       ``(b) Basic Payments.--For the purpose of making payments 
     under section 8004(a), there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
       ``(c) Payments for Children With Disabilities.--For the 
     purpose of making payments under section 8004(d), there are 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 1995 through 1999.
       ``(d) Payments for Heavily Impacted Local Educational 
     Agencies.--
       ``(1) In general.--For the purpose of making payments under 
     section 8004(f), there are authorized to be appropriated such 
     sums as may be necessary for each of the fiscal years 1995 
     through 1999.
       ``(2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations under paragraph (1) are 
     authorized to remain available until expended.
       ``(e) Payments for Increases in Military Children.--For the 
     purpose of making payments under section 8007, there are 
     authorized to be appropriated such sums as may be necessary 
     for each of the fiscal years 1995 through 1999.
       ``(f) Construction.--For the purpose of making payments 
     under section 8008, there are authorized to be appropriated 
     such sums as may be necessary for each of the fiscal years 
     1995 through 1999.
       ``(g) Facilities Maintenance.--For the purpose of carrying 
     out section 8009, there are authorized to be appropriated 
     such sums as may be necessary for each of the fiscal years 
     1995 through 1999.

                      TITLE IX--GENERAL PROVISIONS

     ``PART A--DEFINITIONS

     ``SEC. 9101. DEFINITIONS.

       ``Except as otherwise provided, for the purposes of this 
     Act, the following terms have the following meanings:
       ``(1)(A) 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) 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) 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) 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 disabilities, as defined 
     in section 602(a)(1) 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) 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 
     preceding fiscal year (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 
     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) The term `child' means any person within the age 
     limits for which the applicable State provides free public 
     education.
       ``(4) The term `community-based organization' means a 
     private nonprofit organization 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) The term `consolidated State application' means an 
     application submitted by a State educational agency pursuant 
     to section 9302 of this Act.
       ``(6) The term `county' means one of those divisions of a 
     State used by the Secretary of Commerce in compiling and 
     reporting data regarding counties.
       ``(7) The term `covered program' means each of the programs 
     authorized by--
       ``(A) part A of title I of this Act;
       ``(B) part C of title I of this Act;
       ``(C) part A of title II of this Act; and
       ``(D) part A of title IV of this Act except section 4104.
       ``(8) 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 title I and part A of title II of 
     this Act.
       ``(9) The term `Department' means the Department of 
     Education.
       ``(10) The term `educational service agency' means regional 
     public multiservice agencies authorized by State statute to 
     develop, manage, and provide services and programs to local 
     educational agencies.
       ``(11) The term `elementary school' means a nonprofit day 
     or residential school that provides elementary education, as 
     determined under State law.
       ``(12) 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 or secondary school education as 
     determined under applicable State law, except that such term 
     does not include any education provided beyond grade 12.
       ``(13) The term `institution of higher education' has the 
     meaning given that term in section 1201(a) of the Higher 
     Education Act of 1965.
       ``(14)(A) 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 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 its 
     public elementary or secondary schools.
       ``(B) The term includes any other public institution or 
     agency having administrative control and direction of a 
     public elementary or secondary school.
       ``(15) The term `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 exposing the child or youth to new 
     experiences that enhance the child or youth's ability to 
     excel in school and become a responsible citizen.
       ``(16) The term `other staff' means pupil services 
     personnel, librarians, career guidance and counseling 
     personnel, education aides, and other instructional and 
     administrative personnel.
       ``(17) The term `outlying area' means the Virgin Islands, 
     Guam, American Samoa, the Commonwealth of the Northern 
     Mariana Islands, and Palau (until the effective date of the 
     Compact of Free Association with the Government of Palau).
       ``(18) The term `parent' includes a legal guardian or other 
     person standing in loco parentis.
       ``(19) The terms `pupil-services personnel' and `pupil 
     services' mean, respectively--
       ``(A) school counselors, school social workers, school 
     psychologists, and other qualified professional personnel 
     involved in providing assessment, diagnosis, counseling, 
     educational, therapeutic, and other necessary services as 
     part of a comprehensive program to meet student needs; and
       ``(B) the services provided by such individuals.
       ``(20) The term `secondary school' means a nonprofit day or 
     residential school that provides secondary education, as 
     determined under State law, except that it does not include 
     any education beyond grade 12. This definition shall not 
     apply to any private, religious, or home school that does not 
     receive funds under this Act.
       ``(21) The term `Secretary' means the Secretary of 
     Education.
       ``(22) The term `State' means each of the 50 States, the 
     District of Columbia, the Commonwealth of Puerto Rico, and 
     each of the outlying areas.
       ``(23) The term `State educational agency' means the agency 
     primarily responsible for the State supervision of public 
     elementary and secondary schools.

     ``SEC. 9102. APPLICABILITY OF THIS TITLE.

       ``Parts B through F of this title do not apply to title 
     VIII of this Act.

     ``SEC. 9103. REFERENCES IN OTHER ACTS.

       ``References to section 1471 of this Act, as it existed 
     prior to the enactment of the Improving America's Schools Act 
     of 1994, shall be deemed to refer to this section.

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

     ``SEC. 9201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR 
                   ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

       ``(a) Consolidation of Administrative Funds.--(1) A State 
     educational agency may consolidate the amounts specifically 
     made available to it 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) This section applies to title I of this Act and the 
     covered programs specified in sections 9101(7)(C) and (D).
       ``(b) Use of Funds.--(1) 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) 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 such programs, such as--
       ``(A) the coordination of programs specified in subsection 
     (a)(2) with other Federal and non-Federal programs;
       ``(B) the establishment and operation of peer-review 
     mechanisms under this Act;
       ``(C) the administration of this title;
       ``(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 it under 
     this section for administration, it 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).

     ``SEC. 9202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

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

     ``SEC. 9203. 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 that local 
     educational agency under those 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 these consolidated funds for the 
     administration of covered programs and for the purposes 
     described in section 9201(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. 9204. ADMINISTRATIVE FUNDS STUDY.

       ``(a) Study.--(1) The Secretary shall conduct a study of 
     the use of funds under this Act for the administration, by 
     State and local educational agencies, of covered programs, 
     including the percentage of grant funds used for such purpose 
     in covered programs.
       ``(2) Based on the results of such study, the Secretary 
     shall develop a definition of what types of activities 
     constitute the administration of programs under this Act by 
     State and local educational agencies.
       ``(3) Based on the results of such study, the Secretary may 
     publish regulations or guidelines regarding the use of funds 
     for administration under those 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) Report.--The Secretary shall submit to the President 
     and the appropriate committees of the Congress a report 
     regarding the study conducted under this section within 30 
     days of its completion.

     ``SEC. 9205. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE 
                   INTERIOR FUNDS.

       ``(a) General Authority.--(1) 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 VI 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)(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 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, the steps to be taken 
     to achieve the National Education Goals, and 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 up to 1.5 percent of the funds consolidated under this 
     section for its costs related to the administration of the 
     funds transferred under this section.

     ``SEC. 9206. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.

       ``(a) 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 of this Act are not 
     needed for the purpose of that covered program may use such 
     funds, not to exceed five percent of the total amount of its 
     funds under that covered program, for the purpose of another 
     covered program.
       ``(b) Coordination of Services.--A local educational 
     agency, individual school, or consortium of schools may use a 
     total of up to 5 percent of the funds it receives under this 
     Act for the establishment and implementation of a coordinated 
     services project consistent with the requirements of Title X 
     of this Act.''.

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

     ``SEC. 9301. 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. 9302. OPTIONAL CONSOLIDATED STATE APPLICATION.

       ``(a) General Authority.--(1) In order to simplify 
     application requirements and reduce burden for State 
     educational agencies under this Act, the Secretary shall, in 
     accordance with subsection (b), establish procedures and 
     criteria under which a State educational agency may submit a 
     consolidated State application meeting the requirements of 
     this section for each of the covered programs in which the 
     State participates.
       ``(2) A State educational agency may also include in its 
     consolidated application--
       ``(A) the Even Start program under part B of title I of 
     this Act;
       ``(B) the education of neglected and delinquent youth 
     program under part D of title I of this Act;
       ``(C) part A of title II of the Carl D. Perkins Vocational 
     and Applied Technology Education Act;
       ``(D) Goals 2000: Educate America Act;
       ``(E) School-to-Work Opportunities Act; and
       ``(F) such other programs as the Secretary may designate.
       ``(3) A State educational agency that submits 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 its consolidated 
     application under this section applies.
       ``(b) Collaboration.--(1) 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) Through the collaboration process described in 
     subsection (b), 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 application.
       ``(3) The Secretary shall require only descriptions, 
     information, assurances, and other materials that are 
     absolutely necessary for the consideration of the State 
     application.

     ``SEC. 9303. GENERAL APPLICABILITY OF STATE EDUCATIONAL 
                   AGENCY ASSURANCES.

       ``(a) Assurances.--A State educational agency that submits 
     a State plan or application under this Act, whether 
     separately or under section 9302, shall have on file with the 
     Secretary 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, in a nonprofit private agency, 
     institution, or organization, or in an Indian tribe if the 
     statute 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 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 application was submitted to the 
     Secretary, the State has afforded a reasonable opportunity 
     for public comment on the application and has considered such 
     comment.
       ``(b) GEPA Provision.--Section 440 of the General Education 
     Provisions Act does not apply to programs under this Act.

     ``SEC. 9304. CONSOLIDATED LOCAL APPLICATIONS.

       ``(a) General Authority.--A local educational agency 
     receiving funds under more than one covered program may 
     submit applications to the State educational agency under 
     such programs on a consolidated basis.
       ``(b) Required Consolidated Applications.--A State 
     educational agency that has submitted and had approved a 
     consolidated State application under section 9302 may require 
     local educational agencies in the State receiving funds under 
     more than one program included in the consolidated State 
     application to submit consolidated local 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 applications under this section.
       ``(d) The State educational agency shall require only 
     descriptions, information, assurances, and other material 
     that are absolutely necessary for the consideration of the 
     application of the local educational agency.

     ``SEC. 9305. OTHER GENERAL ASSURANCES.

       ``(a) Assurances.--Any applicant other than a State 
     educational agency that submits an application under this 
     Act, whether separately or pursuant to section 9304, shall 
     have on file with the State educational agency a single set 
     of assurances, applicable to each program for which an 
     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 statute 
     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 or 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 D--WAIVERS

     ``SEC. 9401. WAIVERS OF STATUTORY AND REGULATORY 
                   REQUIREMENTS.

       ``(a) Except as provided in subsection (c), the Secretary 
     may waive any requirement of this Act or of the General 
     Education Provisions Act, or of the regulations issued under 
     such Acts, for a State educational agency, Indian tribe, or 
     other agency, organization, or institution that receives 
     funds under a program authorized by this Act from the 
     Department and that requests such a waiver the Secretary 
     determines that such requirement impedes the ability of the 
     State educational agency or other recipient to achieve more 
     effectively the purposes of this Act.

     ``SEC. 9402. APPLICATIONS.

       ``(a) General Requirements.--A school, local educational 
     agency, or State that desires to receive a waiver under this 
     Act shall--
       ``(1) indicate which Federal requirements are to be waived 
     and how waiving such requirements will improve educational 
     achievement among all students;
       ``(2) describe educational programs and goals being 
     proposed and how such programs will meet the needs of all 
     students;
       ``(3) identify the Federal programs to be included in the 
     project;
       ``(4) indicate which State and local requirements to be 
     waived;
       ``(5) describe specific, measurable educational improvement 
     goals and expected outcomes for all affected students;
       ``(6) describe methods to be used to measure progress 
     toward meeting such goals;
       ``(7) describe how programs will continue to focus on the 
     same populations served by programs for which waivers are 
     requested;
       ``(8) describe how students not now eligible for programs 
     for which waivers are granted can be served without weakening 
     the program benefits for eligible populations; and
       ``(9) describe the student population at proposed schools, 
     including--
       ``(A) current data regarding the achievement levels of 
     students, particularly disadvantaged students;
       ``(B) the number of students who--
       ``(i) are of limited English proficiency, as defined in 
     section 7003(a)(1) of the Bilingual Education Act;
       ``(ii) are children with disabilities, as defined in 
     section 602(a)(1) of the Individuals with Disabilities 
     Education Act;
       ``(iii) are currently or were, within the past 5 years, 
     migratory;
       ``(iv) are educationally disadvantaged for the purposes of 
     title I of the Elementary and Secondary Education Act of 
     1965; and
       ``(v) are eligible for a free or reduced-price lunch.
       ``(b) Additional Requirements.--The Secretary of Education 
     may include additional requirements as may reasonably be 
     required.
       ``(c) Individual School Applications.--A local school that 
     desires to receive a waiver under this Act shall submit an 
     application to the local educational agency, which, after 
     review, shall submit such application to the State 
     educational agency.
       ``(d) Local Applications.--(1) A local educational agency 
     that desires to receive a waiver under this Act shall submit 
     an application to the State educational agency for review.
       ``(2) A State educational agency that approves an 
     application submitted by a local educational agency shall 
     forward such application to the Secretary of Education for 
     consideration.
       ``(3) If an application requests a waiver for a program 
     other than an education program, the State educational agency 
     shall submit such application to the chief executive of the 
     State for review before forwarding such application to the 
     Secretary of Education.
       ``(e) State Applications.--(1) A State educational agency 
     that desires to receive a waiver under this Act shall--
       ``(1) submit an application to the Secretary of Education 
     for consideration; and
       ``(2) provide all interested local education agencies in 
     the State with notice and an opportunity to comment on the 
     proposal.
       ``(f) Waivers Not Authorized.--The Secretary may not waive, 
     under this section, any statutory or regulatory requirement 
     relating to--
       ``(1) comparability of services;
       ``(2) maintenance of effort;
       ``(3) the equitable participation of students attending 
     private schools;
       ``(4) parental participation and involvement;
       ``(5) the distribution of funds to States or to local 
     educational agencies or other recipients of funds under this 
     Act;
       ``(6) maintenance of records;
       ``(7) applicable civil rights requirements; or
       ``(8) the requirements of sections 444 and 445 of the 
     General Education Provisions Act.

     ``SEC. 9403. EVALUATIONS AND TECHNICAL ASSISTANCE.

       ``(a) Waivers.--Three years after a waiver is provided to a 
     school or local educational agency, the Secretary of 
     Education shall evaluate the effectiveness of such waiver, 
     based on reports and evaluations conducted by the State 
     educational agency, in meeting the goals outlined in their 
     application, in achieving educational reform, in raising 
     student achievement for all students, including students with 
     disabilities, students who are disadvantaged, and students 
     who are limited English proficient, and in meeting the 
     National Education Goals.
       ``(b) Technical Assistance.--If the Secretary determines 
     that progress in achieving education reform is not 
     satisfactory, the Secretary may provide technical assistance 
     to a school or local educational agency.
       ``(c) Termination.--If the Secretary determines that the 
     technical assistance does not improve education reform 
     efforts, the Secretary may immediately terminate any waivers 
     previously granted.
       ``(d) National Evaluation.--Three years after the 
     flexibility program is implemented and at the end of every 
     succeeding 3-year period, the Secretary shall evaluate the 
     effectiveness of the flexibility program nationwide. The 
     findings of such evaluation shall be submitted to the 
     Congress not later than 120 days after such evaluation is 
     completed.

     ``SEC. 9404. REPORTS.

       ``(a) Local Reports.--A local educational agency or school 
     that participates in a flexibility project under this Act 
     shall submit an annual report to the State educational agency 
     that--
       ``(1) describes project activities;
       ``(2) evaluates the progress in achieving the goals stated 
     in the application; and
       ``(3) evaluates the effectiveness of coordinating services 
     for students and their families.
       ``(b) State Reports.--(1) A State that participates in a 
     flexibility project under this Act shall submit an annual 
     report to the Secretary of Education which evaluates the 
     progress in achieving goals stated in the application.
       ``(2) The State Educational Agency, upon receipt of reports 
     of local educational agencies or schools participating in a 
     flexibility project, shall review such documents and evaluate 
     the progress of such programs in elevating academic 
     achievement for all students, accomplishing education reform 
     and meeting the National Education Goals. Such reports and 
     evaluations shall be submitted to the Secretary of Education 
     on an annual basis.
       ``(c) Secretary Reports.--The Secretary of Education shall 
     submit to the Congress a biennial report, based on State 
     reports, regarding the national progress of flexibility 
     programs and the effect of such programs on improving 
     educational achievement for all students and meeting the 
     National Education Goals.

     ``SEC. 9405. GENERAL PROVISION REGARDING NON-RECIPIENT 
                   NONPUBLIC SCHOOLS.

       ``Nothing in this Act shall be construed to permit, allow, 
     encourage, or authorize any Federal involvement with or 
     control over any aspect of any private, religious, or home 
     school that does not receive funds under the Act.

     ``TITLE X--COORDINATED SERVICES PROJECTS

     ``SEC. 10001. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress makes the following findings:
       ``(1) Growing numbers of children are negatively affected 
     by influences outside of the classroom which increase their 
     risk of academic failure.
       ``(2) Factors such as poor nutrition, unsafe living 
     conditions, physical and sexual abuse, family and gang 
     violence, inadequate health care, unemployment, lack of child 
     care and substance abuse adversely affect family 
     relationships and the ability of a child to learn.
       ``(3) Parents and other caregivers in today's high pressure 
     society often face demands which place restraints on their 
     time and affect their ability to adequately provide for the 
     needs of their families.
       ``(4) Access to health and social service programs can 
     address the basic physical and emotional needs of children so 
     that they can fully participate in the learning experiences 
     offered them in school.
       ``(5) Services for at-risk students need to be more 
     convenient, less fragmented, regulated and duplicative in 
     order to meet the needs of children and their families.
       ``(6) School personnel, parents, and support service 
     providers often lack knowledge of, and access to, available 
     services for at-risk students and their families in the 
     community, and have few resources to coordinate services and 
     make them accessible.
       ``(7) Service providers, such as teachers, social workers, 
     health care and child care providers, juvenile justice 
     workers and others, are often trained in separate disciplines 
     that provide little support for the coordination of services.
       ``(8) Coordination of services is more cost effective 
     because it substitutes prevention for expensive crisis 
     intervention.
       ``(9) Coordinating health and social services with 
     education can help the Nation meet the National Education 
     Goals by ensuring better outcomes for children.
       ``(b) Purpose of Coordinating Services.--The purpose of 
     this section is to provide elementary and secondary school 
     students and their families better access to the social, 
     health and education services necessary for students to 
     succeed in school and for their families to take an active 
     role in ensuring that children receive the best possible 
     education.

     ``SEC. 10002. DEFINITIONS.

       ``(a) The term `coordinated services project' refers to a 
     comprehensive approach to meeting the educational, health, 
     social service, and other needs of children and their 
     families, including foster children and their foster 
     families, through a communitywide partnership that links 
     public and private agencies providing such services or access 
     to such services through a coordination site at or near a 
     school.
       ``(b) An `eligible entity' is a local educational agency, 
     individual school, or consortium of schools.

     ``SEC. 10003. PROJECT DEVELOPMENT AND IMPLEMENTATION.

       ``(a) Project Plans.--Eligible entities exercising their 
     authority under section 9206(b) shall submit to the Secretary 
     an application for the development of a plan or a plan for 
     the implementation of a coordinated services project.
       ``(b) Project Development.--The application for the 
     development of the coordinated services project, which can 
     last for up to one year, shall:
       ``(1) demonstrate that an assessment will be performed of 
     the economic, social, and health barriers to educational 
     achievement experienced by children and families, including 
     foster children and their foster families, in the community, 
     and the local, State, federal, and privately funded services 
     available to meet such needs;
       ``(2) identify the measures that will be taken to establish 
     a communitywide partnership that links public and private 
     agencies providing services to children and families; and
       ``(3) identify any other measures that will be taken to 
     develop a comprehensive plan for the implementation of a 
     coordinated services project or projects.
       ``(c) Project Implementation.--Eligible entities shall 
     submit to the Secretary a plan for the implementation or 
     expansion of a coordinated services project. Such plan shall 
     include--
       ``(1) the results of a children and families needs 
     assessment, which will include an assessment of the needs of 
     foster children;
       ``(2) the membership of the coordinated services project 
     partnership;
       ``(3) a description of the proposed coordinated services 
     project, its objectives, where it will be located, and the 
     staff that will be used to carry out the purposes of the 
     project;
       ``(4) a description of how the success of the coordinated 
     services project will be evaluated;
       ``(5) a description of the training to be provided to 
     teachers and appropriate personnel; and
       ``(6) information regarding whether or not a sliding scale 
     fee for services will be employed, and if not, an explanation 
     of why such scale is not feasible.

     ``SEC. 10004. USES OF FUNDS.

       ``(a) Funds utilized under the authority of section 9206(b) 
     may be used for activities under this title which include--
       ``(1) hiring a services coordinator;
       ``(2) making minor renovations to existing buildings;
       ``(3) purchasing basic operating equipment;
       ``(4) improving communications and information-sharing 
     between members of the coordinated services project 
     partnership;
       ``(5) providing training to teachers and appropriate 
     personnel concerning their role in a coordinated services 
     project; and
       ``(6) conducting the needs assessment required in section 
     10003(b)(1).
       ``(b) Projects operating under the authority of this title 
     shall comply with the requirements of section 1121(b).

     ``SEC. 10005. CONTINUING AUTHORITY.

       ``The Secretary shall not approve the plan of any project 
     which fails to demonstrate that it is achieving effective 
     coordination after 2 years of implementation.

     ``SEC. 10006. FEDERAL AGENCY COORDINATION.

       ``(a) Agency Coordination.--The Secretaries of Education, 
     Health and Human Services, Labor, Housing and Urban 
     Development, Treasury, and Agriculture, and the Attorney 
     General shall review the programs administered by their 
     agencies to identify barriers to service coordination.
       ``(b) Report to Congress.--Such Secretaries and the 
     Attorney General shall submit jointly a report to the 
     Congress not later than 2 years after the date of the 
     enactment of the Improving America's Schools Act, based on 
     the review required under paragraph (a) recommending 
     legislative and regulatory action to address such barriers, 
     and during this time, shall use waiver authorities authorized 
     under this and other Acts.

     ``SEC. 10007. LIMITATION ON USE OF FUNDS FOR COORDINATION OF 
                   SERVICES.

       ``None of the funds authorized under this Act which are 
     used for projects which include the coordination of health 
     and social services with education may be used to provide 
     family planning or reproductive health services.''.

     TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

     PART A--APPLICABILITY OF THE GENERAL EDUCATION PROVISIONS ACT

     SEC. 211. TITLE; APPLICABILITY; DEFINITIONS.

       Section 400 of the General Education Provisions Act (20 
     U.S.C. 1221 et seq.; referred to in this title as ``the 
     Act'') is amended to read as follows:


                  ``title; applicability; definitions

       ``Sec. 400. (a) This title may be cited as the `General 
     Education Provisions Act'.
       ``(b)(1) Except as otherwise provided, this title applies 
     to each applicable program of the Department of Education.
       ``(2) Except as otherwise provided, this title does not 
     apply to any contract made by the Department of Education.
       ``(c) As used in this title, the following terms have the 
     following meanings:
       ``(1) The term `applicable program' means any program for 
     which the Secretary or the Department has administrative 
     responsibility as provided by law or by delegation of 
     authority pursuant to law. The term includes each program for 
     which the Secretary or the Department has administrative 
     responsibility under the Department of Education Organization 
     Act or under statutes effective after the effective date of 
     that Act.
       ``(2) The term `applicable statute' means--
       ``(A) the Act or the title, part, section, or any other 
     subdivision of an Act, as the case may be, that authorizes 
     the appropriation for an applicable program;
       ``(B) this title; and
       ``(C) any other statute that by its terms expressly 
     controls the administration of an applicable program.
       ``(3) The term `Department' means the Department of 
     Education.
       ``(4) The term `Secretary' means the Secretary of 
     Education.
       ``(d) Nothing in this title shall be construed to affect 
     the applicability of title VI of the Civil Rights Act of 
     1964, title IX of the Education Amendments of 1972, title V 
     of the Rehabilitation Act of 1973, the Age Discrimination 
     Act, or other statutes prohibiting discrimination, to any 
     applicable program.''.

     SEC. 212. REPEAL AND REDESIGNATION.

       (a) The following provisions of the Act are repealed:
       (1) Sections 400A, 401, 402, 405, 406, 406A, 406B, 406C, 
     407, 413, 416, 419, 421, 423, 424, 426A, and 429; and
       (2) part D.
       (b) Sections 403, 408, 409, 411, 412, 414, 415, 417, 420, 
     421A, 422, 425, 426, 427, 428, 430, 431, 432, 433, 434, 435, 
     436, 437, 438, 439, and 440 are redesignated as 401, 410, 
     411, 420, 421, 422, 423, 425, 426, 430, 431, 432, 433, 434, 
     435, 436, 437, 438, 439, 440, 441, 442, 443, 444, 445, and 
     446 respectively.
       (c) Part E is redesignated as Part D.

                  PART B--THE DEPARTMENT OF EDUCATION

     SEC. 221. NEW HEADING FOR PART A.

       The heading for Part A of the Act is amended to read as 
     follows:

         ``Part A--Functions of the Department of Education''.

     SEC. 222. OFFICE OF NON-PUBLIC EDUCATION.

       Section 401 of the Act (as redesignated) is amended by--
       (1) striking the heading of such section and inserting the 
     following new heading:


                  ``office of non-public education''.

       (2) striking subsections (a), (b), and (c); and
       (3) striking ``(d)(1) There'' and inserting ``Sec. 401 (1) 
     There''.

     SEC. 223. GENERAL AUTHORITY OF THE SECRETARY.

       Section 410 of the Act (as redesignated) is amended to read 
     as follows:


                  ``general authority of the secretary

       ``Sec. 410. The Secretary, in order to carry out functions 
     otherwise vested by law or by delegation of authority 
     pursuant to law, and subject to limitations as may be 
     otherwise imposed by law, is authorized to make, promulgate, 
     issue, rescind, and amend rules and regulations governing the 
     manner of operation of, and governing the applicable programs 
     administered by, the Department.''.

     SEC. 224. COORDINATION.

       The Act is amended by inserting the following new section 
     412:


                             ``coordination

       ``Sec. 412. The Advisory Council on Education Statistics, 
     the National Education Goals Panel, the National Education 
     Statistics and Improvement Council, and any other Board 
     established to analyze, address, or approve standards and 
     assessments shall coordinate and interact with one another in 
     order to ensure that each entity does not duplicate 
     activities to assist States in their efforts to reform their 
     educational systems.''.

     PART C--APPROPRIATIONS AND EVALUATIONS

     SEC. 230. FORWARD FUNDING.

       Section 420 of the Act (as redesignated) is amended to read 
     as follows:


                           ``forward funding

       ``Sec. 420. (a) To the end of affording the responsible 
     State, local, and Federal officers adequate notice of 
     available Federal financial assistance for carrying out 
     ongoing education activities and projects, appropriations for 
     grants, contracts, or other payments under any applicable 
     program are authorized to be included in the appropriations 
     Act for the fiscal year preceding the fiscal year during 
     which such activities and projects shall be carried out.
       ``(b) In order to effect a transition to the timing of 
     appropriation action authorized by subsection (a), the 
     application of this section may result in the enactment, in a 
     fiscal year, of separate appropriations for an applicable 
     program (whether in the same appropriations Act or otherwise) 
     for 2 consecutive fiscal years.''.

     SEC. 231. AVAILABILITY OF APPROPRIATIONS.

       (a) The heading for section 421 of the Act (as 
     redesignated) is amended to read as follows: ``availability 
     of appropriations on academic or school-year basis; 
     additional period for expenditure of funds''.
       (b) Section 421 of the Act (as redesignated) is further 
     amended--
       (1) in subsection (b) by striking ``(b) Notwithstanding'' 
     and inserting ``(b)(1) Notwithstanding''; and
       (2) in subsection (c) by striking ``section 3679(d)(2) of 
     the Revised Statutes'' and inserting ``section 1341(a) of 
     title 31 of the United States Code''.

     SEC. 232. CONTINGENT EXTENSION OF PROGRAMS.

       Section 422 of the Act (as redesignated) of the Act is 
     amended to read as follows:


                   ``contingent extension of programs

       ``Sec. 422. (a) The authorization of appropriations for, or 
     duration of, an applicable program shall be automatically 
     extended for one additional fiscal year unless Congress, in 
     the regular session that ends prior to the beginning of the 
     terminal fiscal year of such authorization or duration, has 
     passed legislation that becomes law and extends or repeals 
     the authorization or duration of such program.
       ``(b) The amount authorized to be appropriated for the 
     period of automatic extension of an applicable program under 
     subsection (a) shall be the amount that was authorized to be 
     appropriated for that program during its terminal fiscal 
     year.
       ``(c) During the period of automatic extension of an 
     applicable program under subsection (a), the Secretary shall 
     administer such program, including the performance of all 
     required acts and determinations, in the same manner required 
     in the termination fiscal year by the applicable statute.
       ``(d) This section shall not apply to the authorization of 
     appropriations for a commission, council or committee which 
     is required by an applicable statute to terminate on a date 
     certain.''.

     SEC. 233. STATE REPORTS.

       Subpart 2 of part B of the Act is amended by inserting the 
     following new section 424 at the beginning of such subpart.


           ``responsibility of states to furnish information

       ``Sec. 424. (a) Each State educational agency shall submit 
     to the Secretary a report on or before March 15 of every 
     second year. Each such report shall include--
       ``(1) information with respect to the uses of Federal funds 
     in such State in the 2 preceding fiscal years under any 
     applicable program under the jurisdiction of the State 
     educational agency; and
       ``(2) information with respect to the uses of Federal funds 
     in such State in the 2 preceding fiscal years under any 
     Federal program administered by the State that provided 
     grants or contracts to a local educational agency in the 
     State.
       ``(b) Each report submitted as required by subsection (a) 
     shall--
       ``(1) list, with respect to each program for which 
     information is provided, all grants made to and contracts 
     entered into with local educational agencies and other public 
     and private agencies and institutions within the State during 
     each fiscal year concerned;
       ``(2) analyze the information included in the report by 
     local educational agency and by program;
       ``(3) include the total amount of funds available to the 
     State under each such program for each fiscal year concerned; 
     and
       ``(4) be made readily available by the State to local 
     educational agencies and institutions within the State and to 
     the public.
       ``(c) If the Secretary does not receive a report by the 
     date required under subsection (a), or receives an incomplete 
     report, the Secretary, not later than 30 days after such 
     report is required to be submitted, shall take all reasonable 
     measures to obtain the delinquent or incomplete information 
     from the State educational agency.
       ``(d) When the Secretary receives a report required under 
     subsection (a), the Secretary shall provide such information 
     to the National Center for Education Statistics, and shall 
     make such information available, at a reasonable cost, to any 
     individual who requests it.
       ``(e) The Secretary shall consult with the Speaker and 
     Minority Leader of the House of Representatives and the 
     Majority and Minority Leaders of the Senate regarding the 
     costs and feasibility of making the information described in 
     subsection (a) available as part of a telecommunications 
     network that is readily accessible to every member of 
     Congress and other interested parties.
       ``(f) On or before August 15th of each year in which 
     reports are submitted under subsection (a), the Secretary 
     shall submit a report to the Committee on Education and Labor 
     of the House of Representatives and the Committee on Labor 
     and Human Resources of the Senate. Such report shall 
     include--
       ``(1) an analysis of the content and data quality of such 
     reports;
       ``(2) a compilation of statistical data derived from such 
     reports; and
       ``(3) information obtained by the Secretary with respect 
     to--
       ``(A) direct grants made to local educational agencies by 
     the Federal Government; and
       ``(B) contracts entered into between such agencies and the 
     Federal Government.''.

     SEC. 234. BIENNIAL EVALUATION REPORT.

       Section 425 of the Act (as redesignated) is amended to read 
     as follows:


                      ``biennial evaluation report

       ``Sec. 425. Not later than March 31 of each second year 
     beginning with 1995, the Secretary shall transmit to the 
     Committee on Education and Labor of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate an evaluation report on the 
     effectiveness of applicable programs during the two preceding 
     fiscal years in achieving their legislated purposes. Such 
     report shall--
       ``(1) contain program profiles that include legislative 
     citations, multi-year funding histories, and legislated 
     purposes;
       ``(2) contain recent evaluation information on the progress 
     being made toward the achievement of program objectives, 
     including listings of program performance indicators, data 
     from performance measurement based on the indicators, 
     evaluation information on the costs and benefits of the 
     applicable programs being evaluated.
       ``(3) contain selected significant program activities, such 
     as initiatives for program improvement, regulations, and 
     program monitoring and evaluation;
       ``(4) list the principal analyses and studies supporting 
     the major conclusions in such report; and
       ``(5) be prepared in concise summary form with necessary 
     detailed data and appendices, including available data to 
     indicate the effectiveness of the programs and projects by 
     the race, sex, disability and age of their beneficiaries.''.

     SEC. 235. TECHNICAL AMENDMENT.

       (a) Section 423 of the Act (as redesignated) is amended by 
     striking ``Commissioner'' and inserting ``Secretary''.
       (b) Section 426 of the Act (as redesignated) is amended 
     by--
       (1) striking ``title I of'' and all that follows through 
     ``Congress)'' and inserting ``title VIII of the Elementary 
     and Secondary Education Act of 1965''; and
       (2) striking ``subparagraph (C) of section 3(d)(2) or 
     section 403(1)(C)'' and inserting in lieu thereof ``sections 
     8003(c) or residing on property described in section 
     8012(4)(B)(ii)''.

     SEC. 236. COORDINATION.

       The National Assessment Governing Board, the Advisory 
     Council on Statistics, the National Education Goals Panel, 
     the National Education Statistics and Improvement Council, 
     and any other Board established to analyze, address, or 
     approve standards and assessments shall coordinate and 
     interact with one another in order to ensure that each entity 
     does not duplicate activities to assist States in their 
     efforts to reform their educational systems.

              PART D--ADMINISTRATION OF EDUCATION PROGRAMS

     SEC. 241. RACE-NORMING.

       The Act is amended by inserting after section 426 (as 
     redesignated) the following new section:


        ``prohibition against discriminatory use of test scores

       ``Sec. 426A. No funds appropriated for the purpose of 
     carrying out any applicable program may be used to adjust the 
     scores of, use different scores for, or otherwise alter the 
     results of educational tests on the basis of race, color, 
     religion, sex, or national origin.''.

     SEC. 242. JOINT FUNDING OF PROGRAMS.

       Section 430 of the Act (as redesignated) is amended to read 
     as follows:


                      ``joint funding of programs

       ``Sec. 430. (a)(1) The Secretary is authorized to enter 
     into arrangements with other Federal agencies to jointly 
     carry out projects of common interest, to transfer to such 
     agencies funds appropriated under any applicable program, and 
     to receive and use funds from such agencies, for projects of 
     common interest.
       ``(2) Funds so transferred or received shall be used only 
     in accordance with the statutes authorizing the appropriation 
     of such funds, and shall be made available by contract or 
     grant only to recipients eligible to receive such funds under 
     such statutes.
       ``(3) If the Secretary enters into an agreement under this 
     subsection for the administration of a project, the agency 
     administering the project shall use its procedures to award 
     contracts or grants and to administer such awards, unless the 
     parties to the agreement specify the use of procedures of 
     another agency that is a party to the agreement.
       ``(4) If the Secretary has entered into an agreement 
     authorized under subsection (a) of this section and the 
     Secretary and the heads of the other agencies participating 
     in the agreement determine that joint funding is necessary to 
     address a special need consistent with the purposes and 
     authorized activities of each program that provides funding, 
     the Secretary and the heads of the other participating 
     agencies may develop a single set of criteria for jointly 
     funded projects and require each applicant for those projects 
     to submit a single application for review by the 
     participating agencies.
       ``(b) The Secretary may develop the criteria for, and 
     require the submission of, joint applications under two or 
     more applicable programs under which awards are made on a 
     competitive basis, and may jointly review and approve such 
     applications separately from other applications under such 
     programs, when the Secretary determines that such joint 
     awards are necessary to address a special need consistent 
     with the purposes and authorized activities of each such 
     program. An applicant for such a joint award must meet the 
     eligibility requirements of each such program.
       ``(c) The Secretary may not construe the provisions of this 
     section to take precedence over a limitation on joint funding 
     contained in an applicable statute.
       ``(d)(1) The Secretary shall provide notice to the 
     Committee on Education and Labor of the House of 
     Representatives and to the Committee on Labor and Human 
     Resources of the Senate of each joint funding agreement made 
     with other Federal agencies not later than 60 days following 
     the making of such agreements.
       ``(2) Such notice shall include--
       ``(A) a description of the purpose and objectives of the 
     joint funding arrangement;
       ``(B) the amounts and sources, by program, of the funds 
     dedicated to such arrangement; and
       ``(C) the criteria developed to govern the award of 
     contracts and grants.''.

     SEC. 243. COLLECTION AND DISSEMINATION OF INFORMATION.

       Section 431 of the Act (as redesignated) is amended by--
       (1) striking ``(a) The Commissioner'' and inserting ``The 
     Secretary'';
       (2) inserting ``and'' at the end of paragraph (2);
       (3) striking ``; and'' at the end of paragraph (3) and 
     inserting ``.''; and
       (4) striking paragraph (4) and subsections (b) and (c).

     SEC. 244. REVIEW OF APPLICATIONS.

       (a) Section 432 of the Act (as redesignated) is amended--
       (1) in subsection (a)--
       (A) by striking ``Commissioner'' and inserting 
     ``Secretary'';
       (B) by striking ``and in the case of the program provided 
     for in title I of the Elementary and Secondary Education Act 
     of 1965,'';
       (C) in the third sentence thereof, by inserting a comma 
     after ``the hearing''; and
       (D) in the fourth sentence thereof--
       (i) by striking the comma after ``guidelines''; and
       (ii) by inserting a comma after ``program'';
       (2) in subsection (b), by striking ``Commissioner'' each 
     place it appears and inserting ``Secretary''; and
       (3) in subsection (d), by striking ``Commissioner'' each 
     time it appears and inserting ``Secretary'' and by inserting 
     before the period ``or issue such other orders as the 
     Secretary may deem appropriate to achieve such compliance''.
       (b) All statistics and other data collection and analysis 
     reported under this section shall, whenever feasible, be 
     collected cross-tabulated, analyzed, and reported by sex 
     within race or ethnicity and socioeconomic status. In the 
     event that the Secretary determines that such statistics or 
     data collection and analysis reveals no significant 
     differences among such categories, the Secretary shall 
     include in the relevant report incorporating such statistics 
     or data an explanation of such determination.

     SEC. 245. TECHNICAL AMENDMENT.

       Section 434 of the Act (as redesignated) is amended in the 
     first sentence by striking ``the Commissioner'' and ``he'' 
     and inserting ``the Secretary'' in lieu of each.

     SEC. 246. USE OF FUNDS WITHHELD.

       Section 435 of the Act (as redesignated) is amended to read 
     as follows:


                        ``use of funds withheld

       ``Sec. 435. (a) At any time that the Secretary makes an 
     allotment or reallotment to any State under any applicable 
     program, the Secretary shall reduce such allotment or 
     reallotment by such amount as the Secretary determines such 
     allotment or reallotment would have been reduced, had the 
     data on which the allotment or reallotment is based excluded 
     all data relating to local educational agencies of the State 
     that, on the date of the Secretary's action, are ineligible 
     to receive the Federal financial assistance involved because 
     of failure to comply with 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, or the Age 
     Discrimination Act of 1975.
       ``(b) The Secretary may use any funds withheld under 
     subsection (a)--
       ``(1) to increase the allotments of other local educational 
     agencies within the State, or the allotments of all States, 
     in accordance with the statutes governing the program; or
       ``(2) for grants to local educational agencies of that 
     State in accordance with section 405 of the Civil Rights Act 
     of 1964, or for any other program administered by the 
     Department that is designed to enhance equity in education or 
     redress discrimination on the basis of race, color, national 
     origin, sex, age, or disability.''.

     SEC. 247. APPLICATIONS.

       Section 436 of the Act (as redesignated) is amended by 
     striking ``for three fiscal years'' and inserting ``for more 
     than one fiscal year''.

     SEC. 248. REGULATIONS.

       Section 437 of the Act (as redesignated) is amended--
       (1) in the heading by striking ``: requirements and 
     enforcement'';
       (2) in subsection (a) by--
       (A) striking, in paragraph (1), ``Commissioner'' and 
     inserting ``Secretary''; and
       (B) striking, in paragraph (2), ``Department of Health, 
     Education, and Welfare or the Office of Education, or by an 
     official of such agencies'' and inserting ``Secretary'';
       (3) in subsection (b) by--
       (A) striking ``Commissioner'' each place it appears and 
     inserting ``Secretary''; and
       (B) striking the last sentence of paragraph (2)(B);
       (4) in subsection (d) by--
       (A) striking, in paragraph (1)--
       (i) in the second sentence, ``transmission unless the 
     Congress shall, by concurrent resolution, find that the final 
     regulation is inconsistent with the Act from which it derives 
     its authority, and disapprove such final regulation, in whole 
     or in part'' and insert ``transmission'';
       (ii) the last sentence; and
       (iii) ``(1)'';
       (B) striking paragraph (2);
       (5) by striking subsections (e) and (f); and
       (6) in subsection (g), by striking ``Commissioner'' each 
     place it appears and inserting ``Secretary''.

     SEC. 249. RECORDS; REDUCTION IN RETENTION REQUIREMENTS.

       Section 443 of the Act (as redesignated) is amended--
       (1) in subsection (a)--
       (A) by striking out ``grant, subgrant, contract, 
     subcontract, loan, or other arrangement (other than 
     procurement contracts awarded by an administrative head of an 
     educational agency)'' and inserting in lieu thereof ``grant, 
     subgrant, cooperative agreement, loan or other agreement'';
       (B) by inserting ``financial or programmatic'' immediately 
     before ``audit.''; and
       (C) by striking ``five'' in the last sentence and inserting 
     ``three''; and
       (2) in subsection (b), by striking out ``to any records of 
     a recipient which may be related, or pertinent to, the 
     grants, subgrants, contracts, subcontracts, loans, or other 
     arrangements'' and inserting in lieu thereof ``to any records 
     currently maintained by a recipient that may be related, or 
     pertinent to, grants, subgrants, cooperative agreements, 
     loans, or other arrangements''.

     SEC. 250. RELEASE OF RECORDS.

       Section 444(b)(1)(E) of the Act (as redesignated) is 
     amended to read as follows:
       ``(E) State and local officials or authorities to whom such 
     information is specifically allowed to be reported or 
     disclosed pursuant to State statute adopted--
       ``(i) before November 19, 1974, if the allowed reporting or 
     disclosure concerns the juvenile justice system and its 
     ability to effectively serve the student whose records are 
     released, or
       ``(ii) after November 19, 1974, if--
       ``(I) the allowed reporting or disclosure concerns the 
     juvenile justice system and its ability to effectively serve 
     the student whose records are released, and
       ``(II) the officials and authorities to whom such 
     information is disclosed certify in writing to the 
     educational agency or institution that the information will 
     not be disclosed to any other party except as provided under 
     State law without the prior written consent of the parent.''.

     SEC. 251. PROTECTION OF PUPIL RIGHTS.

       Section 445 of the Act (as redesignated) is amended to read 
     as follows:


                      ``protection of pupil rights

       ``Sec. 445. (a) All instructional materials, including 
     teacher's manuals, films, tapes, or other supplementary 
     material which will be used in connection with any survey, 
     analysis, or evaluation as part of any applicable program 
     shall be available for inspection by the parents or guardians 
     of the children.
       ``(b) No student shall be required, as part of any 
     applicable program, to submit to a survey, analysis, or 
     evaluation that reveals information concerning--
       ``(1) political affiliations;
       ``(2) mental and psychological problems potentially 
     embarrassing to the student or his family;
       ``(3) sex behavior and attitudes;
       ``(4) illegal, antisocial, self-incriminating, and 
     demeaning behavior;
       ``(5) critical appraisals of other individuals with whom 
     respondents have close family relationships;
       ``(6) legally recognized privileged or analogous 
     relationships, such as those of lawyers, physicians, and 
     ministers; or
       ``(7) income (other than that required by law to determine 
     eligibility for participation in a program or for receiving 
     financial assistance under such program),
     without the prior consent of the student (if the student is 
     an adult or emancipated minor), or in the case of an 
     unemancipated minor, without the prior written consent of the 
     parent.
       ``(c) Educational agencies and institutions shall give 
     parents and students effective notice of their rights under 
     this section.
       ``(d) The Secretary shall take such action as the Secretary 
     determines appropriate to enforce this section, except that 
     action to terminate assistance provided under an applicable 
     program shall be taken only if the Secretary determines 
     that--
       ``(1) there has been a failure to comply with such section; 
     and
       ``(2) compliance with such section cannot be secured by 
     voluntary means.
       ``(e) The Secretary shall establish or designate an office 
     and review board within the Department of Education to 
     investigate, process, review, and adjudicate violations of 
     the rights established under this section.''.

     SEC. 252. ENFORCEMENT.

       (a) Section 452 of the Act is amended--
       (1) in the first sentence of paragraph (2) of subsection 
     (a), by striking ``stating'' and all that follows through the 
     end of such sentence and inserting ``establishing a prima 
     facia case for the recovery of funds, including an analysis 
     reflecting the value of the program services actually 
     obtained in a determination of harm to the federal 
     interest.'';
       (2) in the first sentence of paragraph (1) of subsection 
     (b), by striking ``30'' and inserting ``60''; and
       (3) in subsection (d) by--
       (A) striking ``(d) Upon'' and inserting ``(d)(1) Upon'';
       (B) adding a new paragraph (2) as follows:
        ``(2) During the conduct of such review, there shall not 
     be any ex parte contact between the Secretary and individuals 
     representing the Department or the recipient.''.
       (b) Section 459 of the Act is amended--
       (1) in paragraph (1) of subsection (a) by striking ``, and 
     that the recipient is in all other respects in compliance 
     with the requirements of that program''; and
       (2) subsection (c) is amended to read as follows:
       ``(c) Notwithstanding any other provisions of law, the 
     funds made available under this section shall remain 
     available for expenditure for a period of time deemed 
     reasonable by the Secretary, but in no case to exceed more 
     than 3 fiscal years following the later of--
       ``(1) the fiscal year in which final agency action under 
     section 452(e) is taken; or
       ``(2) if such recipient files a petition for judicial 
     review, the fiscal year in which final judical action under 
     section 458 is taken.''.

     SEC. 253. TECHNICAL AMENDMENTS.

       (a) The heading for Part C of the Act is amended by 
     striking ``Commissioner of Education'' and inserting 
     ``Secretary''.
       (b) Section 434 of the Act (as redesignated) is amended in 
     the second sentence thereof, by inserting ``is made'' after 
     ``such determination''.
       (c) Section 436 of the Act (as redesignated) is amended by 
     striking ``Commissioner'' each place it appears and inserting 
     ``Secretary''.
       (d)(1) The heading of section 440 of the Act (as 
     redesignated) is amended by striking ``educational''.
       (2) Section 440 of the Act (as redesignated) is amended--
       (A) by striking ``Commissioner'' each place it appears and 
     inserting ``Secretary''; and
       (B) by inserting ``(c)'' before the last sentence and by 
     deleting ``paragraph (3)'' in such sentence and inserting 
     ``subsection (b)(3)''.
       (e) Section 441 of the Act (as redesignated) is amended--
       (1) by striking ``Commissioner'' each place it appears and 
     inserting ``Secretary''; and
       (2) in subsection (a)--
       (A) by striking the comma after ``submits a plan''; and
       (B) by striking ``(subject, in the case of programs under 
     chapter 1 and chapter 2 of title I of the Elementary and 
     Secondary Education Act of 1965, to the provisions of title V 
     of such Act)''.
       (f) Section 442 of the Act (as redesignated) is amended--
       (1) in subsection (a), by striking ``that local education 
     agency'' and inserting ``that local educational agency''; and
       (2) in subsection (b)--
       (A) in paragraph (2), by inserting a comma after 
     ``program'';
       (B) in paragraph (4), by striking ``Commissioner'' each 
     place it appears and inserting ``Secretary''; and
       (C) in paragraph (7), by striking ``handicapped 
     individuals'' and inserting ``individuals with 
     disabilities''.
       (g) Section 444 of the Act (as redesignated) is amended--
       (1) in subsection (a)(4)(B)(ii), by striking the period at 
     the end thereof and inserting a semicolon;
       (2) in subsection (b)--
       (A) in paragraph (1)(C), by striking ``(iii) an 
     administrative head of an education agency (as defined in 
     section 408(c)), or (iv)'' and inserting ``or (iii)'';
       (B) in paragraph (1)(H), by striking ``1954'' and inserting 
     ``1986''; and
       (C) in paragraph (3)--
       (i) by striking ``(C) an administrative head of an 
     education agency or (D)'' and inserting ``or (C)''; and
       (ii) by striking ``education program'' and inserting 
     ``education programs'';
       (3) in subsection (d), by inserting a comma after 
     ``education'';
       (4) in subsection (f)--
       (A) by striking ``The Secretary, or an administrative head 
     of an education agency,'' and inserting ``The Secretary'';
       (B) by striking ``provisions of'' after ``enforce'';
       (C) by striking ``according to the provisions of'' and 
     inserting ``in accordance with''; and
       (D) by striking ``the provisions of'' after ``with''; and
       (5) in subsection (g)--
       (A) by striking ``Health, Education, and Welfare'' and 
     inserting ``Education''; and
       (B) by striking ``the provisions of''.

     SEC. 254. EQUITY FOR STUDENTS, TEACHERS, AND OTHER PROGRAM 
                   BENEFICIARIES.

       The Act is further amended by inserting after section 426 
     (as redesignated) a new section 427 to read as follows:


    ``equity for students, teachers, and other program beneficiaries

       ``Sec. 427. (a) The purpose of this section is to assist 
     the Department in implementing its mission to ensure equal 
     access to education and to promote educational excellence 
     throughout the Nation, by ensuring equal opportunities to 
     participate for all eligible students, teachers, and other 
     program beneficiaries in any project or activity carried out 
     under an applicable program and promoting their ability to 
     meet high standards.
       ``(b) The Secretary shall require each applicant for 
     assistance under an applicable program (other than an 
     individual) to develop and describe in its application the 
     steps it proposes to take to ensure equitable access to, and 
     equitable participation in, the project or activity to be 
     conducted with such assistance, by addressing the special 
     needs of students, teachers, and other program beneficiaries 
     in order to overcome barriers to equitable participation, 
     including barriers based on gender, race, color, national 
     origin, disability, and age.
       ``(c) The Secretary may establish criteria and provide 
     technical assistance for meeting the requirements of this 
     section.
       ``(d) Nothing in this section is intended to alter in any 
     way the rights or responsibilities established under the 
     statutes cited in section 400(d) of this Act.''.

                PART E--RELATED AMENDMENTS TO OTHER ACTS

     SEC. 261. DEPARTMENT OF EDUCATION ORGANIZATION ACT

       The Department of Education Organization Act is amended--
       (1) by repealing sections 414 and 427;
       (2) by redesignating sections 209, 210, 211, 212, 214, 215, 
     303, 304, 305, 306, 307, 415, 416, 417, 418, 419, 420, 421, 
     422, 423, 424, 425, 426, and 428 as sections 208, 209, 210, 
     211, 212, 213, 302, 303, 304, 305, 306, 414, 415, 416, 417, 
     418, 419, 420, 421, 422, 423, 424, 425, and 426;
       (3) the table of contents is amended to read as follows:

                          ``TABLE OF CONTENTS

``Sec. 1. Short title; table of contents.

                     ``TITLE I--GENERAL PROVISIONS

``Sec. 101. Findings.
``Sec. 102. Purposes.
``Sec. 103. Federal-State Relationships.
``Sec. 104. Definitions.

              ``TITLE II--ESTABLISHMENT OF THE DEPARTMENT

``Sec. 201. Establishment.
``Sec. 202. Principal officers.
``Sec. 203. Office for Civil Rights.
``Sec. 204. Office of Elementary and Secondary Education.
``Sec. 205. Office of Postsecondary Education.
``Sec. 206. Office of Vocational and Adult Education.
``Sec. 207. Office of Special Education and Rehabilitative Services.
``Sec. 208. Office of Educational Research and Improvement.
``Sec. 209. Office of Bilingual Education and Minority Languages 
              Affairs.
``Sec. 210. Office of General Counsel.
``Sec. 211. Office of Inspector General.
``Sec. 212. Office of Correctional Education.
``Sec. 213. Federal Interagency Committee on Education.

            ``TITLE III--TRANSFERS OF AGENCIES AND FUNCTIONS

``Sec. 301. Transfers from the Department of Health, Education, and 
              Welfare.
``Sec. 302. Transfers from the Department of Labor.
``Sec. 303. Transfers of programs from the National Science Foundation.
``Sec. 304. Transfers from the Department of Justice.
``Sec. 305. Transfers from the Department of Housing and Urban 
              Development.
``Sec. 306. Effect of transfers.

                 ``TITLE IV--ADMINISTRATIVE PROVISIONS

                     ``Part A--Personnel Provisions

``Sec. 401. Officers and employees.
``Sec. 402. Experts and consultants.
``Sec. 403. Personnel reduction and annual limitations.

              ``Part B--General Administrative Provisions

``Sec. 411. General authority.
``Sec. 412. Delegation.
``Sec. 413. Reorganization.
``Sec. 414. Contracts.
``Sec. 415. Regional and field offices.
``Sec. 416. Acquisition and maintenance of property.
``Sec. 417. Facilities at remote locations.
``Sec. 418. Use of facilities.
``Sec. 419. Copyrights and patents.
``Sec. 420. Gifts and bequests.
``Sec. 421. Technical advice.
``Sec. 422. Working capital fund.
``Sec. 423. Funds transfer.
``Sec. 424. Seal of department.
``Sec. 425. Annual report.
``Sec. 426. Authorization of appropriations.

      ``TITLE V--TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

``Sec. 501. Transfer and allocation of appropriations and personnel.
``Sec. 502. Effect on personnel.
``Sec. 503. Agency terminations.
``Sec. 504. Incidental transfers.
``Sec. 505. Savings provisions.
``Sec. 506. Separability.
``Sec. 507. Reference.
``Sec. 508. Amendments.
``Sec. 509. Redesignation.
``Sec. 510. Coordination of programs affecting handicapped individuals.
``Sec. 511. Transition.

          ``TITLE VI--EFFECTIVE DATE AND INTERIM APPOINTMENTS

``Sec. 601. Effective date.
``Sec. 602. Interim appointments.''.
       (4) in section 202(b), by inserting after paragraph (2) the 
     following:
       ``(3) There shall be in the Department, a Special Assistant 
     for Gender Equity who shall be appointed by the Secretary. 
     The Special Assistant shall promote, coordinate, and evaluate 
     gender equity programs, including the dissemination of 
     information, technical assistance, coordination of research 
     activities, and the administration of grant programs. The 
     Special Assistant shall report directly to the Secretary, and 
     shall perform such additional functions as the Secretary 
     shall prescribe.''.

                  TITLE III--AMENDMENTS TO OTHER ACTS

 PART A--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

     SEC. 311. ALLOCATIONS UNDER SECTION 611 OF THE IDEA.

        (a) Grant Amounts.--Section 611(a) of the Individuals with 
     Disabilities Education Act (referred to in this title as the 
     ``IDEA'') is amended--
       (1) by amending paragraph (1) to read as follows:

     ``(1) Except as provided in paragraph (5), the maximum amount 
     of the grant for which a State is eligible under this section 
     for any fiscal year is--
       ``(A) the sum of--
       ``(i) the number of children with disabilities in the 
     State, aged six through 21, who are receiving special 
     education and related services, as determined under paragraph 
     (3); and
       ``(ii) the number of such children in the State, aged three 
     through five, if the State is eligible for a grant under 
     section 619; multiplied by
       ``(B) 40 percent of the average per-pupil expenditure in 
     public elementary and secondary schools in the United 
     States.'';
       (2) by amending paragraph (2) to read as follows:
       ``(2) For the purpose of this section, the term `State' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.''; and
       (3) in paragraph (5)(A)--
       (A) in clause (i)--
       (i) by striking ``and the State'' and inserting ``or the 
     combined percentage of such children counted by the Secretary 
     for the purpose of making fiscal year 199-- allocations under 
     this section and under subpart 2 of part D of chapter 1 of 
     title I of the Elementary and Secondary Education Act of 
     1965, as in effect the day before the date of the enactment 
     of the Improving America's Schools Act of 1994, whichever is 
     greater, if the State''; and
       (ii) by inserting ``and'' at the end therof;
       (B) in clause (ii)--
       (i) by striking ``and the State'' and inserting ``or the 
     combined percentage of such children counted by the Secretary 
     for the purpose of making fiscal year 1994 allocations under 
     this section and under subpart 2 of part D of chapter 1 of 
     title I of the Elementary and Secondary Education Act of 
     1965, as in effect the day before the date of the enactment 
     of the Improving America's Schools Act of 1994, whichever is 
     greater, if the State''; and
       (ii) by striking out the semicolon and ``and'' at the end 
     thereof and inserting in lieu thereof a period; and
       (C) by striking out clause (iii).
       (b) Amount Received.--Section 611(b) of the IDEA is amended 
     to read as follows:
       ``(b)(1) Notwithstanding subsections (a) and (g) of this 
     section, no State shall receive an amount under this section 
     for any of the fiscal years 1995 through 1999 that is less 
     than the combined amount it received for fiscal year 1994 
     under--
       ``(A) this section; and
       ``(B) subpart 2 of part D of chapter 1 of title I of the 
     Elementary and Secondary Education Act of 1965 as in effect 
     the day before the date of the enactment of the Improving 
     America's Schools Act of 1994, for children with disabilities 
     aged three through 21.
       ``(2) If, for fiscal year 1998 or 1999, the number of 
     children determined under subsection (a)(3) for any State is 
     less than the total number of children with disabilities, 
     aged three through 21, counted for such State's fiscal year 
     1994 grants under this section and under subpart 2 of part D 
     of chapter 1 of title I of the Elementary and Secondary 
     Education Act of 1965, as in effect the day before the date 
     of the enactment of the Improving America's Schools Act of 
     1994, the amount determined under paragraph (1) for such 
     State shall be reduced by the same percentage by which the 
     number of such children so declined.
       ``(3) In any fiscal year in which the amount appropriated 
     for grants under this section is less, in real dollar terms, 
     than the amount appropriated in the immediate preceding 
     fiscal year, the amount for each State under this subsection 
     will be reduced proportionately.''.
       (c) Uses of Funds.--Section 611(c) of the IDEA is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) Of the funds received under subsection (a) by any 
     State for any fiscal year--
       ``(A) the State may use up to 25 percent in accordance with 
     paragraph (2); and
       ``(B) except as provided in paragraph (4), the State shall 
     distribute at least 75 percent to local educational agencies 
     and intermediate educational units, in accordance with 
     subsection (d), for use in accordance with priorities 
     established under section 612(3).'';
       (2) in paragraph (2), by amending subparagraph (A) to read 
     as follows:

     ``(A) From the funds that any State may use under paragraph 
     (1)(A) for any fiscal year, the State--
       ``(i) may use 5 percent of the funds received under this 
     section or $450,000, whichever is greater, for administrative 
     costs related to carrying out sections 612 and 613; and
       ``(ii) shall use the remainder--
       ``(I) to provide support services and direct services, 
     subject to subparagraph (B), in accordance with priorities 
     established under section 612(3); and
       ``(II) for the administrative costs of monitoring and 
     complaint investigation, but only to the extent that such 
     costs exceed the costs of administration incurred during 
     fiscal year 1985.''.
       (d) State Funds.--Section 611(d) of the IDEA is amended to 
     read as follows:
       ``(d)(1) From the total amount of funds available for any 
     fiscal year under subsection (c)(1)(B), the State shall 
     provide to each local educational agency or intermediate 
     educational unit an amount that bears the same ratio to such 
     total amount as the number of children, aged 3 through 21, 
     determined under subsection (a)(3) for such agency or unit 
     bears to the total number of such children determined for all 
     such agencies and units that apply for such funds.
       ``(2)(A) To the extent necessary, the State--
       ``(i) shall use funds available under subsection 
     (c)(2)(A)(ii) to ensure that each State-owned or State-
     operated school or program or State-supported school or 
     program that received fiscal year 1994 funds under subpart 2 
     of part D of chapter 1 of title I of the Elementary and 
     Secondary Education Act of 1965 receives, from the 
     combination of such funds and funds provided under paragraph 
     (1), an amount equal to--
       ``(I) the number of children, aged 6 through 21, determined 
     under subsection (a)(3) for such agency; multiplied by
       ``(II) the per-child amount provided under such subpart for 
     fiscal year 1994; and
       ``(ii) may use such funds to ensure that each local 
     educational agency that received fiscal year 1994 funds under 
     such subpart for children who had transferred from a State-
     owned, State-operated, or State-supported school or program 
     assisted under such subpart receives, from the combination of 
     such funds and funds provided under paragraph (1), an amount 
     for each such child, aged 3 through 21, determined under 
     subsection (a)(3) for such agency, equal to the per-child 
     amount the agency received under such subpart for fiscal year 
     1994.
       ``(B) For the purpose of subparagraph (A), the number of 
     children determined under subsection (a)(3) for any State 
     agency or local educational agency shall not exceed the 
     number of children aged 3 through 21 for whom such agency 
     received funds under such subpart for such fiscal year.
       ``(3) In any fiscal year in which the amount appropriated 
     for grants under this section is less, in real dollar terms, 
     than the amount appropriated in the preceding fiscal year, 
     the amount for each State under this subsection will be 
     reduced proportionately.''.
       (e) Jurisdiction.--Section 611(e)(1) of the IDEA is amended 
     to read as follows:
     ``(1) The jurisdictions to which this subsection applies are 
     Guam, American Samoa, the Virgin Islands, the Commonwealth of 
     the Northern Mariana Islands, and Palau (until the effective 
     date of the Compact of Free Association with the Government 
     of Palau).''.
       (f) Possible Ratable Reduction.--Section 611(g) of the IDEA 
     is amended to read as follows:
       ``(g)(1)(A) If the sums appropriated under subsection (h) 
     for any fiscal year are not sufficient to pay in full the 
     total of the amounts that all States are eligible to receive 
     under subsection (a), each such amount shall be ratably 
     reduced.
       ``(B) If additional funds become available for making such 
     payments for any fiscal year, such reduced amounts shall be 
     increased on the same basis as they were reduced.
       ``(C) Any State that receives any such additional funds 
     shall distribute them in accordance with this section, except 
     that any State that has used funds available under subsection 
     (c)(2)(A)(ii) for the purposes described in subsection (d)(2) 
     may--
       ``(i) deduct, from the amount that it would otherwise be 
     required to make available to local educational agencies and 
     intermediate educational units, the same amount of such 
     additional funds as it so used; and
       ``(ii) use such funds in accordance with subsection 
     (c)(2)(A)(ii).
       ``(2)(A) In any fiscal year for which payments have been 
     reduced and additional funds have not been made available 
     under paragraph (1) to pay in full the amounts for which all 
     States are eligible under this section, each State 
     educational agency shall fix dates by which each local 
     educational agency or intermediate educational unit shall 
     report to the State agency the amount of funds available to 
     it under this section that it estimates it will expend.
       ``(B) The State educational agency shall, in accordance 
     with this section, reallocate any funds that it determines 
     will not be used during the period of availability by such 
     local educational agencies and intermediate educational 
     units, and by any such agency or unit to which such funds 
     would be available if it applied for them under this part, to 
     such local educational agencies and intermediate educational 
     units that the State educational agency determines will need, 
     and be able to use, additional funds to carry out approved 
     programs.''.

     SEC. 312. TREATMENT OF CHAPTER 1 STATE AGENCIES.

       Part B of the IDEA is further amended by inserting after 
     section 614 the following new section:


                ``TREATMENT OF CHAPTER 1 STATE AGENCIES

       ``Sec. 614A. (a) For the purpose of making payments under 
     sections 611 and 619 of this Act, any State agency that 
     received funds for fiscal year 1994 under subpart 2 of part D 
     of chapter 1 of title I of the Elementary and Secondary 
     Education Act of 1965 shall be treated as if it were a local 
     educational agency.
       ``(b) The State educational agency shall ensure that each 
     State agency that owns or operates or supports a program or 
     school for children with disabilities with funds under this 
     part--
       ``(1) provides each child with a disability in such school 
     or program a free appropriate public education in accordance 
     with this part, including the due process protections of 
     section 615, as if it were a local educational agency; and
       ``(2) has on file with the State educational agency an 
     application that meets the requirements of section 614 that 
     the Secretary finds appropriate.
       ``(c) Section 611(c)(4) shall not apply with respect to a 
     State agency that is eligible for a payment under this part 
     by virtue of this section.''.

     SEC. 313. INFANTS AND TODDLERS WITH DISABILITIES.

       (a) Allotments.--Section 684(c) of the IDEA is amended--
       (1) by redesignating paragraph (2) as paragraph (5); and
       (2) by striking paragraph (1) and inserting paragraphs (1) 
     through (4) to read as follows:
     ``(1) Except as provided in paragraphs (3) and (4), from the 
     funds remaining for each fiscal year after the reservation 
     and payments under subsections (a) and (b), the Secretary 
     shall first allot to each State an amount that bears the same 
     ratio to the amount of such remainder as the number of 
     infants and toddlers in the State bears to the number of 
     infants and toddlers in all States.
       ``(2) For fiscal year 1995 only, the Secretary shall allot 
     $34,000,000 of the remaining funds described in paragraph (1) 
     among the States in proportion to the relative numbers of 
     infants and toddlers who--
       ``(A) are counted on December 1, 1994; and
       ``(B) would have been eligible to be counted under section 
     1221(c)(1) of the Elementary and Secondary Education Act of 
     1965 as in effect before the enactment of the Improving 
     America's Schools Act of 1994.
       ``(3) Except as provided in paragraph (4), no State shall 
     receive an amount under this section for any fiscal year that 
     is less than the greater of--
       ``(A) one-half of one percent of the remaining amount 
     described in paragraph (1), not including any amounts 
     allotted under paragraph (2); or
       ``(B) $500,000.
       ``(4)(A) No State shall receive an amount under this 
     section for any of the fiscal years 1995 through 1999 that is 
     less than the combined amount it received for fiscal year 
     1994 under--
       ``(i) this part; and
       ``(ii) subpart 2 of part D of chapter 1 of title I of the 
     Elementary and Secondary Education Act of 1965 for children 
     with disabilities from birth through age two.
       ``(B) If, for fiscal year 1998 or 1999, the number of 
     infants and toddlers in any State, as determined under 
     paragraph (1), is less than the number of infants and 
     toddlers so determined for fiscal year 1994, the amount 
     determined under subparagraph (A) for that State shall be 
     reduced by the same percentage by which the number of those 
     infants and toddlers so declined.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect beginning in fiscal year 1995.

           PART B--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

     SEC. 320. AMENDMENTS TO TABLE OF CONTENTS.

       Section 101 of the Stewart B. McKinney Homeless Assistance 
     Act is amended by striking subtitles A and B of title VII and 
     inserting the following:

             ``Subtitle A--Adult Education for the Homeless

``Sec. 701. State literacy initiatives

        ``Subtitle B--Education for Homeless Children and Youth

``Sec. 721. Statement of policy.
``Sec. 722. Grants for state and local activities for the education of 
              homeless children and youth.
``Sec. 723. Local educational agency grants for the education of 
              homeless children and youth.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.

     SEC. 321. STATEMENT OF POLICY.

       Subtitle A of title VII of the Stewart B. McKinney Homeless 
     Assistance Act is amended to read as follows:
             ``Subtitle A--Adult Education for the Homeless

     ``SEC. 701. STATE LITERACY INITIATIVES.

       ``(a) General Authority.--(1) The Secretary of Education is 
     authorized to make grants to State educational agencies to 
     enable each such agency to implement, either directly or 
     through contracts and grants, a program of literacy training 
     and academic remediation for adult homeless individuals 
     within the State, which program shall--
       ``(A) include outreach activities; and
       ``(B) be coordinated with other agencies or organizations, 
     such as community-based organizations, nonprofit literacy-
     action organizations, and funding recipients under the Adult 
     Education Act, title II of the Job Training Partnership Act, 
     the Youth Fair Chance program under title IV of the Job 
     Training Partnership Act, the Volunteers in Service to 
     America program under the Domestic Volunteers Service Act, 
     part C of this title, or the Job Opportunity and Basic Skills 
     program under the Social Security Act.
       ``(2) The Secretary of Education shall, in awarding grants 
     under this section, give special consideration to the 
     estimates submitted in the application submitted under 
     subsection (b) and make such awards in whatever amounts he or 
     she determines would best serve the purposes of this section.
       ``(b) Application.--Each State educational agency desiring 
     to receive a grant under this section shall submit to the 
     Secretary of Education an application at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require. Each such application shall include an 
     estimate of the number of homeless individuals in the State 
     and the number of such individuals expected to be served.
       ``(c) Authorization of Appropriations.--For the purpose of 
     carrying out the adult literacy and academic remediation 
     programs authorized by this section, there are authorized to 
     be appropriated such sums as may be necessary for each of the 
     fiscal years 1995 through 1999.
       ``(d) Definition.--As used in this section, the term 
     `State' means each of the 50 States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and Palau (until the effective date 
     of the Compact of Free Association with the Government of 
     Palau).''.

     SEC. 322. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

       Subtitle B of title VII of the Stewart B. McKinney Homeless 
     Assistance Act is amended to read as follows:
        ``Subtitle B--Education for Homeless Children and Youth

     ``SEC. 721. STATEMENT OF POLICY.

       ``It is the policy of the Congress that--
       ``(1) each State educational agency shall ensure that each 
     child of a homeless individual and each homeless youth has 
     equal access to the same free, appropriate public education, 
     including a public preschool education, as provided to other 
     children and youth;
       ``(2) in any State that has a compulsory residency 
     requirement as a component of its compulsory school 
     attendance laws or other laws, regulations, practices, or 
     policies that may act as a barrier to the enrollment, 
     attendance, or success in school of homeless children and 
     youth, the State will review and undertake steps to revise 
     such laws, regulations, practices, or policies to ensure that 
     homeless children and youth are afforded the same free, 
     appropriate public education as provided to other children 
     and youth;
       ``(3) homelessness alone should not be sufficient reason to 
     separate students from the mainstream school environment; and
       ``(4) homeless children and youth should have access to the 
     education and other services that they need to ensure that 
     they have an opportunity to meet the same challenging State 
     performance standards to which all students are held.

     ``SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE 
                   EDUCATION OF HOMELESS CHILDREN AND YOUTH.

       ``(a) General Authority.--The Secretary is, in accordance 
     with the provisions of this section, authorized to make 
     grants to States to carry out the activities described in 
     subsections (d), (e), (f), and (g).
       ``(b) Application.--No State may receive a grant under this 
     section unless the State educational 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.
       ``(c) Allocation and Reservations.--(1) Subject to 
     paragraph (2) and section 724(c), from the amounts 
     appropriated for each fiscal year pursuant to section 726, 
     the Secretary is authorized to allot to each State an amount 
     that bears the same ratio to the amount appropriated in each 
     such year as the amount allocated under section 1122 of the 
     Elementary and Secondary Education Act of 1965 to the State 
     in that year bears to the total amount allocated to all 
     States, except that no State shall receive less than 
     $100,000.
       ``(2)(A) The Secretary is authorized to reserve 0.1 percent 
     of the amount appropriated for each fiscal year pursuant to 
     section 726 to be allocated by the Secretary among the Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and Palau (until the effective date 
     of the Compact of Free Association with the Government of 
     Palau), according to their respective need, as determined by 
     the Secretary.
       ``(B)(i) The Secretary is authorized to transfer one 
     percent of the amount appropriated for each fiscal year under 
     section 726 to the Department of the Interior for programs 
     for Indian students served by schools funded by the Secretary 
     of the Interior, as determined under the Indian Self-
     Determination and Education Assistance Act, that are 
     consistent with the purposes of this Act.
       ``(ii) The Secretary and the Secretary of the Interior 
     shall enter into an agreement, consistent with the 
     requirements of this part, for the distribution and use of 
     these funds under terms that the Secretary determines best 
     meet the purposes of the covered programs. Such agreement 
     shall set forth the plans of the Secretary of the Interior 
     for the use of the amounts transferred, including appropriate 
     goals, objectives, and milestones.
       ``(3) As used in this subsection, the term `State' shall 
     not include the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, or Palau.
       ``(d) Activities.--Grants under this section shall be 
     used--
       ``(1) to carry out the policies set forth in section 721 in 
     the State;
       ``(2) to provide activities for, and services to, homeless 
     children, including preschool-aged children, and homeless 
     youth that enable such children and youth to enroll in, 
     attend, and succeed in school, or, if appropriate, in 
     preschool programs;
       ``(3) to establish or designate an Office of Coordinator of 
     Education of Homeless Children and Youth in the State 
     educational agency in accordance with subsection (f);
       ``(4) to prepare and carry out the State plan described in 
     subsection (g); and
       ``(5) to develop and implement professional development 
     programs for school personnel to heighten their awareness of, 
     and capacity to respond to, specific problems in the 
     education of homeless children and youth.
       ``(e) State and Local Grants.--(1)(A) Subject to 
     subparagraph (B), if the amount allotted to the State 
     educational agency for any fiscal year under this subtitle 
     exceeds the amount such agency received for fiscal year 1990 
     under this subtitle, such agency shall provide grants to 
     local educational agencies for purposes of section 723.
       ``(B) The State educational agency may reserve not more 
     than the greater of five percent of the amount it receives 
     under this subtitle for any fiscal year, or the amount such 
     agency received under this subtitle for fiscal year 1990, to 
     conduct activities under subsection (f) directly or through 
     grants or contracts.
       ``(2) If the amount allotted to a State educational agency 
     for any fiscal year under this subtitle is less than the 
     amount such agency received for fiscal year 1990 under this 
     subtitle, such agency, at its discretion, may provide such 
     grants or may conduct activities under subsection (f) 
     directly or through grants or contracts.
       ``(f) Functions of the Office of Coordinator.--The 
     Coordinator of Education of Homeless Children and Youth 
     established in each State shall--
       ``(1) estimate the number of homeless children and youth in 
     the State and the number of such children and youth served 
     with assistance provided under the grants under this 
     subtitle;
       ``(2) gather, to the extent possible, 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 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;
       ``(3) develop and carry out the State plan described in 
     subsection (g);
       ``(4) prepare and submit to the Secretary not later than 
     October 1, 1997, and on October 1 of every third year 
     thereafter, a report on the information gathered pursuant to 
     paragraphs (1) and (2) and such additional information as the 
     Secretary may require to carry out responsibilities under 
     this subtitle;
       ``(5) facilitate coordination between the State educational 
     agency, the State social services agency, and other agencies 
     providing services to homeless children and youth and their 
     families, including children who are preschool age; and
       ``(6) develop relationships and coordinate with other 
     relevant education, child development, or preschool programs 
     and providers of services to homeless children, homeless 
     families, and runaway and homeless youth (including domestic 
     violence agencies, shelter operators, transitional housing 
     facilities, runaway and homeless youth centers, and 
     transitional living programs for homeless youth), to improve 
     the provision of comprehensive services to homeless children 
     and youth and their families.
       ``(g) State Plan.--(1) Each State shall submit to the 
     Secretary a plan to provide for the education of homeless 
     children and youth within the State, which plan shall 
     describe how such children and youth are or will be given the 
     opportunity to meet the same challenging State performance 
     standards all students are expected to meet, shall describe 
     the procedures the State educational agency will use to 
     identify such children and youth in the State and to assess 
     their special needs, and shall--
       ``(A) describe procedures for the prompt resolution of 
     disputes regarding the educational placement of homeless 
     children and youth;
       ``(B) describe programs for school personnel (including 
     principals, attendance officers, teachers and enrollment 
     personnel), to heighten the awareness of such personnel of 
     the specific needs of runaway and homeless youth;
       ``(C) describe procedures that ensure that homeless 
     children and youth who meet the relevant eligibility criteria 
     are able to participate in Federal, State, or local food 
     programs;
       ``(D) describe procedures that ensure that--
       ``(i) homeless children have equal access to the same 
     public preschool programs, administered by the State agency, 
     as provided to other children; and
       ``(ii) homeless children and youth who meet the relevant 
     eligibility criteria are able to participate in Federal, 
     State, or local before- and after-school care programs;
       ``(E) address problems set forth in the report provided to 
     the Secretary under subsection (f)(4);
       ``(F) address other problems with respect to the education 
     of homeless children and youth, including problems caused 
     by--
       ``(i) transportation issues; and
       ``(ii) enrollment delays that are caused by--
       ``(I) immunization requirements;
       ``(II) residency requirements;
       ``(III) lack of birth certificates, school records, or 
     other documentation; or
       ``(IV) guardianship issues;
       ``(G) demonstrate that the State and local educational 
     agencies in the State have developed, and will review and 
     revise, policies to remove barriers to the enrollment and 
     retention of homeless children and youth in schools in the 
     State; and
       ``(H) contain an assurance that 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 isolated or stigmatized.
       ``(2) Each plan adopted under this subsection shall also 
     show how the State will ensure that local educational 
     agencies in the State will comply with the requirements of 
     paragraphs (3) through (9).
       ``(3)(A) The local educational agency that serves each 
     homeless child and youth shall, according to the child's or 
     youth's best interest, either--
       ``(i) continue the child's or youth's education in the 
     school of origin--
       ``(I) for the remainder of the academic year; or
       ``(II) 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 public school that 
     nonhomeless students who live in the attendance area in which 
     the child or youth is actually living are eligible to attend.
       ``(B) In determining the best interests of the child or 
     youth under subparagraph (A), the local educational agency 
     shall comply, to the extent possible, with the request made 
     by a parent or guardian regarding school selection.
       ``(C) 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.
       ``(D) 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.
       ``(4) Each homeless child or youth shall be provided 
     services comparable to services offered to other students in 
     the school selected according to the provisions of paragraph 
     (3), including--
       ``(A) transportation services;
       ``(B) educational services for which the child or youth 
     meets the eligibility criteria, such as services provided 
     under title I of the Elementary and Secondary Education Act 
     of 1965 or similar State or local programs, educational 
     programs for children with disabilities, and educational 
     programs for students with limited-English proficiency;
       ``(C) programs in vocational education;
       ``(D) programs for gifted and talented students; and
       ``(E) school meals programs.
       ``(5) Any record ordinarily kept by the school, including 
     immunization records, academic records, birth certificates, 
     guardianship records, and evaluations for special services or 
     programs, of each homeless child or youth shall be 
     maintained--
       ``(A) so that the records are available, in a timely 
     fashion, when a child or youth enters a new school district; 
     and
       ``(B) in a manner consistent with section 438 of the 
     General Education Provisions Act.
       ``(6) Each local educational agency serving homeless 
     children and youth that receives assistance under this 
     subtitle shall coordinate with local social services agencies 
     and other agencies or programs providing services to such 
     children or youth and their families, including services and 
     programs funded under the Runaway and Homeless Youth Act.
       ``(7)(A) Each local educational agency in a State that 
     receives a grant under this subtitle shall designate a 
     homelessness liaison to ensure that--
       ``(i) homeless children and youth enroll and succeed in the 
     schools of such agency; and
       ``(ii) homeless families, children, and youth receive 
     educational services for which they are eligible, including 
     preschool programs administered by the local educational 
     agency, and referrals to health care services, dental 
     services, mental health services, and other appropriate 
     services.
       ``(B) State coordinators and local educational agencies 
     shall inform school personnel, service providers, and 
     advocates working with homeless families of the duties of the 
     liaisons.
       ``(8) Each State and local educational agency shall review 
     and revise any policies that may act as barriers to the 
     enrollment of homeless children and youth in schools selected 
     in accordance with paragraph (3). In reviewing and revising 
     such policies, consideration shall be given to issues 
     concerning transportation, immunization, residency, birth 
     certificates, school records, and other documentation, and 
     guardianship. Special attention shall be given to ensuring 
     the enrollment and attendance of homeless children and youth 
     who are not currently attending school.

     ``SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION 
                   OF HOMELESS CHILDREN AND YOUTH.

       ``(a) General Authority.--(1) The State educational agency 
     shall, in accordance with section 722(e) and with amounts 
     made available to such agency under section 726, make grants 
     to local educational agencies for the purpose of facilitating 
     the enrollment, attendance, and success in school of homeless 
     children and youth.
       ``(2) Unless otherwise specified, services under paragraph 
     (1) may be provided through programs on school grounds or at 
     other facilities. Where services are provided through 
     programs to homeless students on school grounds, schools may 
     provide 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, on an incidental 
     basis. To the maximum extent practicable, services shall be 
     provided through existing programs and mechanisms that 
     integrate homeless individuals with nonhomeless individuals.
       ``(3) Services provided under this section are not intended 
     to replace the regular academic program and shall be designed 
     to expand upon or improve services provided as part of the 
     school's regular academic program.
       ``(b) Application.--A local educational agency that desires 
     to receive a grant under this section shall submit an 
     application to the State educational agency at such time, in 
     such manner, and containing or accompanied by such 
     information as the State educational agency may reasonably 
     require according to guidelines issued by the Secretary. Each 
     such application shall include--
       ``(1) a description of the services and programs for which 
     assistance is sought and the problems to be addressed through 
     the provision of such services and programs;
       ``(2) an assurance that the local educational agency's 
     combined fiscal effort per student or the aggregate 
     expenditures of that 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;
       ``(3) an assurance that the applicant complies with, or 
     will use requested funds to come into compliance with, 
     paragraphs (3) through (9) of section 722(g); and
       ``(4) a description of policies and procedures that the 
     agency will implement to ensure that activities carried out 
     by the agency will not isolate or stigmatize homeless 
     children and youth.
       ``(c) Awards.--(1) The State educational agency shall, in 
     accordance with section 722(g) and with amounts made 
     available to such agency under section 726, award grants 
     under this section to local educational agencies submitting 
     an application under subsection (b) on the basis of the need 
     of such agencies.
       ``(2) In determining need under paragraph (1), the State 
     educational agency may consider the number of homeless 
     children and youth enrolled in preschool, elementary, and 
     secondary schools within the area served by the agency, and 
     shall consider the needs of such children and youth and the 
     ability of the agency to meet such needs. Such agency may 
     also consider--
       ``(A) the extent to which the proposed use of funds would 
     facilitate the enrollment, retention, and educational success 
     of homeless children and youth;
       ``(B) the extent to which the application reflects 
     coordination with other local and State agencies that serve 
     homeless children and youth, as well as the State plan 
     required by section 722(g);
       ``(C) the extent to which the applicant exhibits in the 
     application and in current practice a commitment to education 
     for all homeless children and youth; and
       ``(D) such other criteria as the agency determines 
     appropriate.
       ``(3) Grants awarded under this section shall be for terms 
     not to exceed three years.
       ``(d) Authorized Activities.--(1) A local educational 
     agency may use funds awarded under this section for 
     activities to carry out the purpose of this subtitle, 
     including--
       ``(A) the provision of tutoring and accelerated instruction 
     and enriched educational services that are linked to the 
     achievement of the same challenging standards the State 
     establishes for other children or youth;
       ``(B) the provision of expedited evaluations of the 
     strengths and needs of homeless children and youth, including 
     needs and eligibility for programs and services (such as 
     educational programs for gifted and talented students, 
     children with disabilities, and students with limited-English 
     proficiency, services provided under title I of the 
     Elementary and Secondary Education Act of 1965 or similar 
     State or local programs, programs in vocational education, 
     and school meals programs);
       ``(C) professional development and other activities for 
     educators and other school personnel that is designed to 
     heighten the understanding and sensitivity of such personnel 
     to the needs of homeless children and youth, the rights of 
     such children and youth under this Act, and the specific 
     educational needs of runaway and homeless youth;
       ``(D) the provision of referral services to homeless 
     children and youth for medical, dental, mental, and other 
     health services;
       ``(E) the provision of assistance to defray the excess cost 
     of transportation for students pursuant to sections 722(g)(4) 
     or 722(g)(9), not otherwise provided through Federal, State, 
     or local funding, where necessary to enable students to 
     attend the school selected under section 722(g)(3);
       ``(F) the provision of developmentally appropriate early 
     childhood education programs, not otherwise provided through 
     Federal, State, or local funding, for preschool-aged 
     children;
       ``(G) the provision of before- and after-school, mentoring, 
     and summer programs for homeless children and youth in which 
     a teacher or other qualified individual provides tutoring, 
     homework assistance, and supervision of educational 
     activities;
       ``(H) where necessary, the payment of fees and other costs 
     associated with tracking, obtaining, and transferring records 
     necessary to enroll homeless children and youth in school, 
     including birth certificates, immunization records, academic 
     records, guardianship records, and evaluations for special 
     programs or services;
       ``(I) the provision of education and training to the 
     parents of homeless children and youth about the rights of, 
     and resources available to, such children and youth;
       ``(J) the development of coordination between schools and 
     agencies providing services to homeless children and youth, 
     including programs funded under the Runaway and Homeless 
     Youth Act;
       ``(K) the provision of counseling (including violence 
     prevention counseling), social work, and psychological 
     services, and referrals for such services;
       ``(L) activities to address the particular needs of 
     homeless children and youth that may arise from domestic 
     violence;
       ``(M) the adaptation of space and purchase of supplies for 
     nonschool facilities made available under subsection (a)(2) 
     to provide services under this subsection;
       ``(N) the provision of school supplies; and
       ``(O) the provision of other extraordinary or emergency 
     assistance needed to enable homeless children and youth to 
     attend school.

     ``SEC. 724. SECRETARIAL RESPONSIBILITIES.

       ``(a) Review of Plans.--In reviewing the State plans 
     submitted by the State educational agencies under section 
     722(g), the Secretary shall use a peer review process and 
     shall evaluate whether State laws, policies, and practices 
     described in such plans adequately address the problems of 
     homeless children and youth relating to access to education 
     and placement as described in such plans.
       ``(b) Technical Assistance.--The Secretary shall provide 
     support and technical assistance to the State educational 
     agencies to assist such agencies to carry out their 
     responsibilities under this subtitle.
       ``(c) Evaluation and Dissemination.--The Secretary shall 
     conduct evaluation and dissemination activities of programs 
     designed to meet the educational needs of homeless elementary 
     and secondary school students, and may use funds appropriated 
     under section 726 to conduct such activities.
       ``(d) Submission and Distribution.--The Secretary shall 
     require applications for grants under this subtitle to be 
     submitted to the Secretary not later than the expiration of 
     the 60-day period beginning on the date that funds are 
     available for purposes of making such grants and shall make 
     such grants not later than the expiration of the 120-day 
     period beginning on such date.
       ``(e) Determination by Secretary.--The Secretary, based on 
     the information received from the States and information 
     gathered by the Secretary under subsection (d), shall 
     determine the extent to which State educational agencies are 
     ensuring that each homeless child and homeless youth has 
     access to a free appropriate public education as described in 
     section 721(1).
       ``(f) Reports.--The Secretary shall prepare and submit a 
     report to the Committee on Education and Labor of the House 
     of Representatives and the Committee on Labor and Human 
     Resources of the Senate on the programs and activities 
     authorized by this subtitle by December 31, 1997, and every 
     third year thereafter.

     ``SEC. 725. DEFINITIONS.

       ``For the purpose of this subtitle, unless otherwise 
     stated--
       ``(1) The term `Secretary' means the Secretary of 
     Education.
       ``(2) The term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subtitle, there are 
     authorized to be appropriate $30,000,000 for fiscal year 1995 
     and such sums as may be necessary for each of the fiscal 
     years 1996, 1997, 1998, and 1999.''.

                      PART C--IMPACT AID STATUTES

     SEC. 331. AMENDMENTS TO PUBLIC LAW 815.

       (a) Section 2.--Section 2 of the Act of September 23, 1950 
     (Public Law 815, 81st Congress; 20 U.S.C. 632) is amended to 
     read as follows:

     ``SEC. 2. PORTION OF APPROPRIATIONS AVAILABLE FOR PAYMENTS.

       ``For each fiscal year the Secretary shall distribute the 
     funds appropriated in accordance with section 1 which shall 
     be available for carrying out the provisions of sections 5, 
     9, 10, and 14. The funds provided under section 1 for the 
     schools serving military dependents and Indian lands shall be 
     divided equally between section 5 and section 14 of this Act. 
     Funds provided under section 5 of this Act shall be divided 
     equally between the priority categories of section 1(a)(1) 
     and 1(a)(2) of this Act.''.
       (b) Section 3.--Section 3 of such Act (20 U.S.C. 633) is 
     amended to read as follows:

     ``SEC. 3. ESTABLISHMENT OF PRIORITIES.

       ``Applications for construction or modification projects 
     provided for under this Act must be filed by June 30 of the 
     fiscal year prior to the year in which funds are first 
     requested. The Secretary shall use the following order of 
     priority in approving applications under section 5 and funded 
     in accordance with section 1(a)(1) and section 1(a)(2) of 
     this Act. The priority of payment of application under 
     section 1(a)(1) shall be based on the highest percentage of 
     number of children in need of minimum school facilities. The 
     priority of payment of applications under section 1(a)(2) 
     shall be based on the highest percentage of federally 
     connected students eligible for payment. The Secretary shall 
     use the priorities stated in this section in approving 
     applications in the event the funds appropriated under 
     section 1 of this title and remaining available on any such 
     date for payment to local educational agencies are less than 
     the Federal share of the cost of the projects with respect to 
     which applications have been filed prior to such date (and 
     for which funds under section 1 have not already been 
     obligated). Only applications meeting the conditions for 
     approval under this Act (other than section 6(b)(2)(C)) shall 
     be considered applications for purposes of the preceding 
     sentence. Such order of priority shall provide that 
     applications payments based upon increases in the number of 
     children residing on, or residing with a parent employed on 
     property which is party of a low-rent housing project 
     assisted under the United States Housing Act of 1937 shall 
     not be approved for any fiscal year until all other 
     applications under paragraph (2) of subsection (a) of section 
     5 have been approved for the fiscal year.''.
       (c) Section 5.--Section 5 of such Act (20 U.S.C. 635) is 
     amended to read as follows:

     ``SEC. 5. LIMITATION ON TOTAL PAYMENTS TO ANY LOCAL 
                   EDUCATIONAL AGENCY.

       ``(a) Subject to the limitations in subsection (c) the 
     total of the payments to a local educational agency under 
     this Act may not exceed the sum of--
       ``(1) the estimated increase, since the base year, in the 
     number of children determined with respect to such agency who 
     live on Federal property and have a parent who works on 
     Federal property multiplied by 100 percent of the average per 
     pupil cost of constructing minimum school facilities in the 
     State in which the school district of such agency is 
     situated;
       ``(2) the estimated increase, since the base year, in the 
     number of children determined with respect to such agency who 
     have a parent who lives on or works on Federal property 
     multiplied by 50 percent of such cost;
       ``(3) In computing for any local educational agency the 
     number of children in an increase under paragraph (1) or (2), 
     the estimated number of children described in such paragraph 
     who will be in the membership of the schools of such agency 
     at the close of the increase period shall be compared with 
     the estimated number of such children in average daily 
     membership of the schools of such agency during the base 
     year. However, the base year average daily membership shall 
     be adjusted to exclude the number of children that formed the 
     basis for previous payments on applications approved 30 or 
     more years prior to the close of the increased period for the 
     current application.
       ``(b) If two of the paragraphs of subsection (a) apply to a 
     child, the local educational agency shall elect which of such 
     paragraphs shall apply to such child, except that, 
     notwithstanding the election of a local educational agency to 
     have paragraph (2) apply to a child instead of paragraph (1), 
     the determination of the maximum amount for such agency under 
     subsection (a) shall be made without regard to such election.
       ``(c) A local educational agency shall not be eligible to 
     have any amount included in its maximum by reason of 
     paragraphs (1), (2), and (3) of subsection (a) unless the 
     increase in children referred to in such paragraph is at 
     least 20, and in the case of paragraphs (1), (2), and (3) of 
     subsection (a), is--
       ``(1) equal to at least 6 percent of the number of 
     federally connected children who were in the average daily 
     membership of the schools of such agency during the base 
     year, or
       ``(2) at least 750,
     whichever is the lesser.
       ``(d) Notwithstanding the provisions of subsection (c) of 
     this section, whenever and to the extent that, in his 
     judgment, exceptional circumstances exist which make such 
     action necessary to avoid inequity and avoid defeating the 
     purposes of the Act, the Secretary may waive or reduce the 
     minimum number requirement or any percentage requirement or 
     requirements in subsection (c).
       ``(e) In determining under this section the total of the 
     payments which may be made to a local educational agency on 
     the basis of any application, the total number of children 
     counted for purposes of paragraph (1) or (2), as the case may 
     be, of subsection (a) may not exceed--
       ``(1) the number of children whose membership at the close 
     of the increase period for the application is compared with 
     average daily membership in the base period for purposes of 
     that paragraph, provided that the base year average daily 
     membership does not include any children which formed the 
     basis of payment in the applications approved 30 or more 
     years ago, minus
       ``(2) the number of such children whose membership at the 
     close of the increase period was compared with membership in 
     the base year for purposes of such paragraph under the last 
     previous application, provided the application was funded 
     within the last 4 years, if any, of the agency on the basis 
     of which any payments have been or may be made to that 
     agency.''.
       (d) Section 6.--Section 6 of such Act (20 U.S.C. 636) is 
     amended by adding at the end the following new subsection:
       ``(d) If the application has not been funded within the 3-
     year period, the local educational agency must recertify 
     their need to have the application remain active.''.

     SEC. 332. REPEAL OF PUBLIC LAW 874.

       The Act of September 30, 1950 (Public Law 874, 81st 
     Congress; 20 U.S.C. 236 et seq.) is hereby repealed.

               PART D--AMENDMENTS TO ADULT EDUCATION ACT

     SEC. 335. AMENDMENTS TO ADULT EDUCATION ACT.

       (a) Section 342(c)(11) of the Adult Education Act is 
     amended by inserting ``Even Start,'' after ``1963,''.
       (b) Section 384(n) is amended by striking ``and 1995'' and 
     inserting ``1995, and 1996''.

                TITLE IV--NATIONAL EDUCATION STATISTICS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``National Education 
     Statistics Act of 1994''.

     SEC. 402. FINDINGS; PURPOSE; DEFINITIONS.

       (a) Findings.--The Congress finds that--
       (1) a Department of Education was established in 1867 ``for 
     the purpose of collecting such statistics and facts as shall 
     show the condition and progress of education in the several 
     States and territories, and of diffusing such information 
     respecting the organization and management of schools and 
     school systems and methods of teaching as shall aid the 
     people of the United States in the establishment and 
     maintenance of efficient school systems, and otherwise 
     promote the cause of education throughout the country'';
       (2) today, while the role of the current Department of 
     Education is much broader, the National Center for Education 
     Statistics within the Department's Office of Educational 
     Research and Improvement continues to perform those crucial 
     original purposes; and
       (3) looking to the 21st century, the National Center for 
     Education Statistics must be able to design and undertake, 
     effectively and efficiently, statistical activities that will 
     aid in reform of the Nation's educational systems.
       (b) Purpose.--It is the purpose of this title to ensure the 
     continuation of an effective mechanism for collecting and 
     reporting statistics and information showing the condition 
     and progress of education in the United States and other 
     nations in order to promote and accelerate the improvement of 
     American education.
       (c) Definitions.--For the purpose of this title, the term--
       (1) ``Assistant Secretary'' means the Assistant Secretary 
     for Educational Research and Improvement, provided for under 
     section 202(b)(1)(E) of the Department of Education 
     Organization Act;
       (2) ``Department'' means the Department of Education;
       (3) ``institution of higher education'' has the same 
     meaning given such term in section 1201 of the Higher 
     Education Act of 1965;
       (4) ``local educational agency'' has the same meaning given 
     such term in section 9101(13) of the Elementary and Secondary 
     Education Act of 1965;
       (5) ``Secretary'' means the Secretary of Education;
       (6) ``State educational agency'' has the same meaning given 
     such term in section 9101(20) of the Elementary and Secondary 
     Education Act of 1965; and
       (7) ``United States'' and ``State'' mean--
       (A) other than for the purpose of section 411, each of the 
     50 States, the District of Columbia, and the Commonwealth of 
     Puerto Rico; and
       (B) for the purpose of section 411, mean the same as in 
     subparagraph (A) and include Guam, American Samoa, the Virgin 
     Islands, the Commonwealth of the Northern Mariana Islands, 
     and the Republic of Palau (until the effective date of the 
     Compact of Free Association with the Government of Palau).

     SEC. 403. NATIONAL CENTER FOR EDUCATION STATISTICS.

       (a) Establishment.--There is established, within the Office 
     of Educational Research and Improvement established under 
     section 209 of the Department of Education Organization Act, 
     a National Center for Education Statistics (the ``Center'').
       (b) Commissioner and Associate Commissioners.--(1) The 
     Center shall be headed by a Commissioner of Education 
     Statistics (the ``Commissioner'') who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate, and who shall--
       (A) have substantial knowledge of programs encompassed by 
     the Center;
       (B) be paid in accordance with section 5315 of title 5, 
     United States Code; and
       (C) serve for a term of 4 years, with the terms to expire 
     every fourth June 21, beginning in 1995.
       (2) The Commissioner may appoint such Associate 
     Commissioners as the Commissioner determines are necessary 
     and appropriate.

     SEC. 404. DUTIES OF THE CENTER.

       (a) Duties.--The duties of the Center are to collect, 
     analyze, and disseminate statistics and other information 
     related to education in the United States and in other 
     nations, including--
       (1) collecting, acquiring, compiling (where appropriate, on 
     a State by State basis), and disseminating full and complete 
     statistics on the condition and progress of education, at the 
     preschool, elementary, secondary, and postsecondary levels in 
     the United States, including data on--
       (A) State and local school reform activities;
       (B) student achievement and other educational outcomes at 
     all levels of education;
       (C) out of school youth and adults;
       (D) teachers, administrators, counselors, and other 
     educational personnel at all levels of education;
       (E) the learning and teaching environment;
       (F) financing and management of education; and
       (G) the socioeconomic status of children;
       (2) conducting and publishing reports and analyses of the 
     meaning and significance of such statistics;
       (3) conducting longitudinal studies, as well as regular and 
     special surveys and data collections, necessary to report on 
     the condition and progress of education;
       (4) collecting, analyzing, cross-tabulating, and reporting, 
     to the extent feasible, so as to provide information by 
     gender, race, socioeconomic status, limited-English 
     proficiency, and other population characteristics when such 
     disaggregated information would facilitate educational and 
     policy decisionmaking;
       (5) assisting public and private educational agencies, 
     organizations, and institutions in improving and automating 
     statistical and data collection activities; and
       (6) acquiring and disseminating data on educational 
     activities and student achievement in the United States 
     compared with foreign nations.
       (b) Training Program.--The Commissioner may establish a 
     program to train employees of public and private educational 
     agencies, organizations, and institutions in the use of the 
     Center's standard statistical procedures and concepts and may 
     establish a fellows program to appoint such employees as 
     temporary fellows at the Center in order to assist the Center 
     in carrying out its duties.

     SEC. 405. PERFORMANCE OF DUTIES.

       (a) In General.--In carrying out the duties under this 
     title, the Commissioner may enter into grants, contracts, and 
     cooperative agreements.
       (b) Gathering Information.--(1) The Commissioner may use 
     the statistical method known as sampling to carry out the 
     purpose of this title.
       (2) The Commissioner may, as the Commissioner considers 
     appropriate, use information collected--
       (A) from States, local educational agencies, public and 
     private schools, preschools, institutions of higher 
     education, libraries, administrators, teachers, students, the 
     general public, and such other individuals, organizations, 
     agencies, and institutions as the Commissioner may consider 
     appropriate; and
       (B) by other offices within the Department and by other 
     Federal departments, agencies, and instrumentalities.
       (3) The Commissioner may--
       (A) enter into interagency agreements for the collection of 
     statistics;
       (B) arrange with an agency, organization, or institution 
     for the collection of statistics; and
       (C) assign employees of the Center to any such agency, 
     organization, or institution to assist in such collection.
       (4) In order to maximize the effectiveness of Federal 
     efforts to serve the educational needs of children and youth, 
     the Commissioner shall--
       (A) provide technical assistance to Department offices that 
     gather data for statistical purposes; and
       (B) coordinate closely with other Department offices in the 
     collection of data.

     SEC. 406. REPORTS.

       (a) Report on the Condition and Progress of Education.--The 
     Commissioner shall, no later than June 1 of each year, submit 
     to the President and the Congress a statistical report 
     regarding the condition and progress of education in the 
     United States.
       (b) Statistical Reports.--The Commissioner shall issue 
     regular statistical reports to the President and Congress on 
     such education topics as the Commissioner determines to be 
     appropriate.
       (c) Special Reports.--The Commissioner may, whenever the 
     Commissioner considers it appropriate, issue special reports 
     on particular education topics.

     SEC. 407. ADVISORY COUNCIL ON EDUCATION STATISTICS.

       (a) Establishment.--There is established, within the 
     Center, the Advisory Council on Education Statistics (the 
     ``Council'').
       (b) Membership.--(1) The Council shall be composed of--
       (A) 15 voting members who are users of education data and 
     who are appointed by the Secretary on the basis of their 
     experience and eminence within the field, of whom at least--
       (i) three shall be educators;
       (ii) three shall be education policy-makers;
       (iii) three shall be professional statisticians; and
       (iv) three shall be education researchers;
       (B) the Director of the Census and the Commissioner of 
     Labor Statistics, as voting, ex officio members; and
       (C) the Assistant Secretary and the Commissioner, as 
     nonvoting, ex officio members.
       (2) The Secretary shall appoint the presiding officer of 
     the Council from among the voting members.
       (3) Members of the Council appointed under paragraph (1)(A) 
     shall be appointed for three-year terms except that, in the 
     case of initial appointments, the Secretary shall make 
     appointments for shorter terms to the extent necessary to 
     avoid the expiration of the terms of more than five members 
     in the same calendar year.
       (4)(A) The Council shall meet at the call of the presiding 
     officer, except that it shall meet--
       (i) at least two times during each calendar year; and
       (ii) in addition, whenever eight voting members request in 
     writing that the presiding officer call a meeting.
       (B) Nine voting members of the Council shall constitute a 
     quorum.
       (5) The Council shall review general policies for the 
     operation of the Center and shall advise the Commissioner on 
     standards to ensure that statistics and other information 
     disseminated by the Center are of high quality and are not 
     subject to partisan political influence.

     SEC. 408. CONFIDENTIALITY.

       (a) General.--(1)(A) The Center shall develop and enforce 
     standards designed to protect the confidentiality of persons 
     in the collection, reporting, and publication of data under 
     this section.
       (B) This section shall not be construed to protect the 
     confidentiality of information about institutions, 
     organizations, and agencies that receive grants from, or have 
     contracts or cooperative agreements with, the Federal 
     Government.
       (2) No person may--
       (A) use any individually identifiable information furnished 
     under this title for any purpose other than a statistical 
     purpose;
       (B) make any publication whereby the data furnished by any 
     particular person under this title can be identified; or
       (C) permit anyone other than the individuals authorized by 
     the Commissioner to examine the individual reports.
       (b) Administration.--(1)(A) No department, bureau, agency, 
     officer, or employee of the Government, except the 
     Commissioner in carrying out the purposes of this title, 
     shall require, for any reason, copies of reports that have 
     been filed under this title with the Center or retained by 
     any individual respondent.
       (B) Copies of such reports that have been so filed or 
     retained with the Center or any of its employees, 
     contractors, or agents shall be immune from legal process, 
     and shall not, without the consent of the individual 
     concerned, be admitted as evidence or used for any purpose in 
     any action, suit, or other judicial or administrative 
     proceeding.
       (C) This paragraph shall apply only to individually 
     identifiable information (as defined in paragraph (5)(A)).
       (2) Whoever, being or having been an employee or staff 
     member of the Department, having taken or subscribed the oath 
     of office, or having sworn to observe the limitations imposed 
     by subsection (a)(2), knowingly publishes or communicates any 
     individually identifiable information (as defined in 
     paragraph (5)(A)), the disclosure of which is prohibited by 
     subsection (a)(2), and that comes into such individual's 
     possession by reason of employment (or otherwise providing 
     services) under this title, shall be found guilty of a class 
     E felony and imprisoned for not more than 5 years, or fined 
     as specified in 18 U.S.C. 3571, or both.
       (3) The Commissioner may utilize temporary staff, including 
     employees of Federal, State, or local agencies or 
     instrumentalities including local educational agencies, and 
     employees of private organizations to assist the Center in 
     performing its responsibilities, but only if such temporary 
     staff are sworn to observe the limitations imposed by this 
     section.
       (4) No collection of information or data acquisition 
     activity undertaken by the Center shall be subject to any 
     review, coordination, or approval procedure except as 
     required by the Director of the Office of Management and 
     Budget under the rules and regulations established pursuant 
     to chapter 35 of title 44, United States Code, except such 
     collection of information or data acquisition activity may be 
     subject to review or coordination if the Commissioner 
     determines that such review or coordination would be 
     beneficial.
       (5) For the purposes of this section--
       (A) the term ``individually identifiable information'' 
     means any record, response form, completed survey, or 
     aggregation thereof from which information about individuals 
     may be revealed; and
       (B) the term ``report'' means a response provided by or 
     about an individual to an inquiry from the Center and does 
     not include a statistical aggregation from which individually 
     identifiable information cannot be revealed.
       (6) This paragraph shall not apply to--
       (A) the survey required by section 1303(c) of the Higher 
     Education Amendments of 1986; or
       (B) to any longitudinal study concerning access, choice, 
     persistence progress, or attainment in postsecondary 
     education.
       (7) Any person who uses any data provided by the Center, in 
     conjunction with any other information or technique, to 
     identify any individual student, teacher, administrator, or 
     other individual and who knowingly discloses, publishes, or 
     uses for a purpose other than a statistical purpose, or who 
     otherwise violates subsection (a)(2)(A) or (B), shall be 
     found guilty of a class E felony and imprisoned for not more 
     than 5 years, or fined as specified in section 3571 of title 
     18 of the United States Code, or both.
       (8) Nothing in this section shall restrict the right of the 
     Secretary, the Comptroller General of the United States, the 
     Director of the Congressional Budget Office, and the 
     Librarian of Congress to gain access to any reports or other 
     records, including information identifying individuals, in 
     the Center's possession, except that the same restrictions on 
     disclosure that apply to the Center under subsection (b)(1) 
     and (7) shall apply.

     SEC. 409. DISSEMINATION.

       (a) General Requests.--(1) The Center may furnish 
     transcripts or copies of tables and other statistical records 
     and make special statistical compilations and surveys for 
     State and local officials, public and private organizations, 
     and individuals.
       (2) The Center shall provide State and local educational 
     agencies opportunities to suggest the development of 
     particular compilations of statistics, surveys, and analyses 
     that would assist such educational agencies.
       (b) Congressional Requests.--The Center shall furnish such 
     special statistical compilations and surveys as the Congress 
     may request.
       (c) Joint Statistical Projects.--The Secretary may engage 
     in joint statistical projects related to the purposes of this 
     Act or other statistical purposes authorized by law with 
     nonprofit organizations or agencies, and the cost of such 
     projects shall be shared equitably as determined by the 
     Secretary.
       (d) Fees.--(1) Statistical compilations and surveys under 
     this section, other than those carried out pursuant to 
     subsections (b) and (c), may be made subject to the payment 
     of the actual or estimated cost of such work.
       (2) All funds received in payment for work or services 
     described in this paragraph shall be deposited in a separate 
     account that may be used to pay directly the costs of such 
     work or services, to repay appropriations that initially bore 
     all or part of such costs, or to refund excess sums when 
     necessary.
       (e) Access.--(1) The Center shall cooperate with other 
     Federal agencies having a need for educational data in 
     providing access to educational data received by the Center.
       (2) The Center shall, in accordance with such terms and 
     conditions as the Secretary may prescribe, provide all 
     interested parties, including public and private agencies and 
     individuals, direct access to data collected by the Center 
     for the purposes of research and acquiring statistical 
     information.

     SEC. 410. COOPERATIVE EDUCATION STATISTICS SYSTEMS.

       The Commissioner shall establish 1 or more national 
     cooperative education statistics systems for the purpose of 
     producing and maintaining, with the cooperation of the 
     States, comparable and uniform information and data on 
     elementary and secondary education, postsecondary education, 
     and libraries that are useful for policymaking at the 
     Federal, State, and local levels. In carrying out this 
     section, the Commissioner may provide technical assistance 
     and make grants and enter into contracts and cooperative 
     agreements.

     SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

       (a) Establishment.--The Commissioner shall, with the advice 
     of the Governing Board established under section 412, carry 
     out, through grants, contracts, or cooperative agreements 
     with 1 or more qualified organizations, or consortia thereof, 
     a National Assessment of Educational Progress (the ``National 
     Assessment'').
       (b) Purpose; Contents.--(1) The purpose of the National 
     Assessment is to provide a fair and accurate presentation of 
     educational achievement in reading, writing, and other 
     subjects that are included in National Education Goal Three.
       (2) The Commissioner, in carrying out the National 
     Assessment, shall use sampling techniques that produce data 
     that are representative on a national and regional basis and 
     on a State basis pursuant to paragraph (3). In addition, the 
     Commissioner shall--.
       (A) collect and report data on a periodic basis, but at 
     least once every 2 years, on students at ages 9, 13, and 17 
     and in grades 4, 8, and 12 in public and private schools;
       (B) report achievement data on a basis that ensures valid 
     and reliable trend reporting;
       (C) include information on special groups; and
       (D) ensure that achievement data are made available on a 
     timely basis following official reporting, in a manner that 
     facilitates further analysis.
       (3)(A)(i) The Commissioner, in carrying out the National 
     Assessment, may conduct State assessments of student 
     achievement in grades 4, 8, and 12.
       (ii) Each such State assessment, in each subject area and 
     at each grade level shall be conducted on a trial basis.
       (B)(i) States wishing to participate in State assessments 
     shall enter into an agreement with the Secretary pursuant to 
     subsection (d)(2).
       (ii) Such agreement shall contain information sufficient to 
     give States full information about the process for consensus 
     decisionmaking on objectives to be tested, and of the 
     standards for sampling, test administration, test security, 
     data collection, validation, and reporting.
       (C) A participating State shall review and give permission 
     for the release of results from any test of its students 
     administered as a part of a State assessment prior to the 
     release of such data. Refusal by a State to release its data 
     shall not restrict the release of data from other States that 
     have approved the release of such data.
       (4) In carrying out the National Assessment, the 
     Commissioner shall not collect any data that are not directly 
     related to the appraisal of educational performance, 
     achievement, and traditional demographic reporting variables, 
     or to the fair and accurate presentation of such information.
       (5) In carrying out the National Assessment, the 
     Commissioner may provide technical assistance to States, 
     localities, and other parties.
       (c) Access.--(1) Except as provided in paragraph (2), the 
     public shall have access to all data, questions, and test 
     instruments of the National Assessment.
       (2)(A) The Commissioner shall ensure that all personally 
     identifiable information about students, their educational 
     performance, and their families, and that information with 
     respect to individual schools, remains confidential, in 
     accordance with section 552a of title 5, United States Code.
       (B) Notwithstanding any other provision of law, the 
     Commissioner may decline to make available to the public for 
     a period, not to exceed 10 years after initial use, cognitive 
     questions that the Commissioner intends to reuse in the 
     future.
       (C)(i) The Commissioner may, upon the request of a State 
     educational agency or a local educational agency, in a 
     limited number of cases and on a trial basis, make National 
     Assessment test instruments available for assessing aggregate 
     student achievement at the local educational agency level.
       (ii)(I) Participation by a local educational agency shall 
     be voluntary.
       (II) A State requesting the participation of a local 
     educational agency must accompany this request with a 
     statement of full written concurrence by such agency and that 
     such agency is requesting to participate in the local 
     assessment.
       (iii) Before receiving such instruments, an agency shall 
     provide the Commissioner with assurances that confidentiality 
     and security requirements and testing protocols, prescribed 
     by the Commissioner, will be complied with in the use of such 
     instruments.
       (d) Participation.--(1) Participation in the national and 
     regional assessments by State and local educational agencies 
     shall be voluntary.
       (2) Participation in assessments made on a State basis 
     shall be voluntary. The Commissioner shall enter into an 
     agreement with any State that desires to carry out an 
     assessment for the State under this subsection. Each such 
     agreement shall contain provisions designed to ensure that 
     the State will--
       (A) participate in the assessment; and
       (B) pay from non-Federal sources the non-Federal share of 
     participation.
       (3)(A) For each fiscal year, the non-Federal share for the 
     purpose of paragraph (2)(B) shall be--
       (i) the cost of conducting the assessment at the school 
     level for all public schools in the State sample, including 
     the analysis and reporting of the data;
       (ii) the cost of coordination within the State; and
       (iii) other reasonable costs specified by the Secretary in 
     the agreement described in paragraph (2).
       (B) The non-Federal share of payments under this paragraph 
     may be in cash or in kind, fairly valued.
       (C) The agreement described in paragraph (2) shall describe 
     the manner in which, the costs of administering the 
     assessment to private nonprofit schools included in the State 
     sample may be met.
       (4) The implementation of subparagraph (C) of paragraph (2) 
     of subsection (d) shall involve no cost to the Federal 
     Government.
       (e) Review of National and State Assessments.--(1) The 
     Commissioner shall provide for continuing reviews by the 
     National Academy of Education or the National Academy of 
     Sciences of the National Assessment, State assessments, local 
     educational agency assessments, and student performance 
     goals. Such reviews shall address whether each trial state 
     assessment is properly administered, produces high quality 
     data that is valid and reliable, produces data on student 
     achievement that is not otherwise available to the State 
     exclusive of data comparing participating States to each 
     other and the Nation, and is a cost-effective method of 
     producing the data. The Commissioner shall also carry out 
     evaluation studies by the Center and solicitation of public 
     comment on the conduct and usefulness of the National 
     Assessment. The Commissioner shall report to the Congress, 
     the President, and the Nation on the findings and 
     recommendations of such reviews.
       (2) The Commissioner shall consider the findings and 
     recommendations in designing the competition to select the 
     organization, or organizations, through which the Office 
     carries out the National Assessment.
       (f) Coverage Agreements.--(1) The Secretary and the 
     Secretary of Defense may enter into an agreement, including 
     such terms as are mutually satisfactory, to include in the 
     National Assessment the defense dependents education system 
     established under the Defense Dependents' Education Act of 
     1978.
       (2) The Secretary and the Secretary of the Interior may 
     enter into an agreement, including such terms as are mutually 
     satisfactory, to include in the National Assessment schools 
     for Indian children operated or supported by the Bureau of 
     Indian Affairs.

     SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD

       (a) Establishment.--There is established the National 
     Assessment Governing Board (the ``Board''), which shall 
     formulate policy guidelines for the National Assessment.
       (b) Membership.--(1) The Board shall be appointed by the 
     Secretary and be composed of--
       (A) two Governors, or former Governors, who shall not be 
     members of the same political party;
       (B) two State legislators, who shall not be members of the 
     same political party;
       (C) two chief State school officers;
       (D) one superintendent of a local educational agency;
       (E) one member of a State board of education;
       (F) one member of a local board of education;
       (G) three classroom teachers representing the grade levels 
     at which the National Assessment is conducted;
       (H) one representative of business or industry;
       (I) two curriculum specialists;
       (J) three testing and measurement experts, who shall have 
     training and experience in the field of testing and 
     measurement;
       (K) one nonpublic school administrator or policymaker;
       (L) two school principals, one elementary and one 
     secondary; and
       (M) four additional members who are representatives of the 
     general public, including parents.
       (2) The Assistant Secretary for Educational Research and 
     Improvement shall serve as an ex officio, nonvoting member of 
     the Board.
       (3) The Secretary and the Board shall ensure at all times 
     that the membership of the Board reflects regional, racial, 
     gender, and cultural balance and diversity and that it 
     exercises its independent judgment, free from inappropriate 
     influences and special interests.
       (c) Terms.--Members of the Board shall serve for terms not 
     to exceed four years which shall be staggered, as determined 
     by the Secretary. Any appointed member of the Board who 
     changes status under subsection (b) during the term of the 
     appointment of the member may continue to serve as a member 
     until the expiration of such term.
       (d) Vacancies.--As vacancies occur, new members of the 
     Board shall be appointed by the Secretary from among 
     individuals who are nominated by the Board after consultation 
     with representatives of the groups listed in subsection 
     (b)(1). For each vacancy, the Board shall nominate at least 
     three individuals who, by reason of experience or training, 
     are qualified in that particular Board vacancy.
       (e) Duties.--(1) In carrying out its functions under this 
     section the Board shall--
       (A) select subject areas to be assessed (consistent with 
     section 11(b)(1));
       (B) identify appropriate achievement goals for each age and 
     grade in each subject area to be tested under the National 
     Assessment;
       (C) develop assessment objectives;
       (D) develop test specifications;
       (E) design the methodology of the assessment;
       (F) develop guidelines for analysis plans and for reporting 
     and disseminating results;
       (G) develop standards and procedures for interstate, 
     regional, and national comparisons; and
       (H) take appropriate actions needed to improve the form and 
     use of the National Assessment.
       (2) The Board may delegate any of its procedural and 
     administrative functions to its staff.
       (3) The Board shall have final authority on the 
     appropriateness of cognitive items.
       (4) The Board shall take steps to ensure that all items 
     selected for use in the National Assessment are free from 
     racial, cultural, gender, or regional bias.
       (5) Each learning area assessment shall have goal 
     statements devised through a national consensus approach, 
     providing for active participation of teachers, curriculum 
     specialists, local school administrators, parents, and 
     concerned members of the general public.
       (f) Personnel.--(1) In the exercise of its 
     responsibilities, the Board shall be independent of the 
     Secretary and the other offices and officers of the 
     Department of Education.
       (2) The Secretary may appoint, at the direction of the 
     Board, such staff as the Board requires. Such appointments 
     may include, for terms not to exceed three years, without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, not more 
     than six technical employees to administer this subsection, 
     who may be paid without regard to the provisions of chapter 
     51 and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates.
       (g) Commissioner Reports.--The Commissioner shall report to 
     the Board at regular intervals on the Department's actions to 
     implement the decisions of the Board.
       (h) Administration.--(1) Not more than 10 percent of the 
     funds available for the National Assessment for any fiscal 
     year may be used for administrative expenses (including 
     staff, consultants, and contracts) and to carry out the 
     Board's functions described in subsection (e).
       (2) For the purposes of its administrative functions, the 
     Board shall have the authorities authorized by the Federal 
     Advisory Committee Act and shall be subject to the open 
     meeting provisions of that law.

     SEC. 413. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title, $103,200,000 for fiscal year 1995 and such sums as may 
     be necessary for each of the fiscal years 1996, 1997, 1998, 
     and 1999.
       Amend the title of the bill so as to read: ``A bill to 
     extend for five years the authorizations of appropriations 
     for the programs under the Elementary and Secondary Education 
     Act of 1965, and for certain other purposes.''.
           By Mr. MINGE:
     --Page 218, strike lines 10 through 18.
           By Mr. OBEY:
     --Page 458, after line 10, insert the following:

     ``SEC. 5202. STATISTICAL AND POLICY ANALYSIS.

       ``(a) National Center for Education Statistics.--The 
     National Center for Education Statistics (established under 
     section 403 of the Improving America's Schools Act of 1994) 
     using standard statistical methods, shall conduct analysis of 
     issues such as--
       ``(1) Federal policy issues regarding educational access 
     and equity;
       ``(2) spending inequities at the State and local levels and 
     alternative mechanisms for financing;
       ``(3) the ability and willingness of States and local 
     educational agencies to generate new revenue sources for 
     education;
       ``(4) the effect of Federal education assistance on the 
     equalization of education funding at the State and local 
     levels;
       ``(5) the effects of school finance equalization on the 
     quality of education;
       ``(6) the costs in providing education to students with 
     special needs;
       ``(7) the effects of high and low population density on 
     education needs and costs;
       ``(8) the effects of different teacher compensation 
     policies on costs of providing education services;
       ``(9) relationships among expenditures, the quality and 
     quantity of instruction, and the different backgrounds of 
     students; and
       ``(10) how legislation and judicial decisions regarding 
     school finance programs affect education and equalization of 
     funding.
       ``(b) Data and Information.--In addition to the issues 
     reviewed in subsection (a), the National Center for Education 
     Statistics may utilize data and information which includes--
       ``(1) sources of revenue and types of taxes;
       ``(2) tax assessment rates and ability of the State or 
     local educational agency to generate additional revenues;
       ``(3) the cost of providing services to students with 
     different abilities and needs; and
       ``(4) student enrollment, per pupil expenditures, and 
     average daily attendance figures.

     ``SEC. 5203. STUDY OF EDUCATIONAL EQUITY.

       ``(a) Study.--The Secretary shall enter into appropriate 
     arrangements with the National Academy of Sciences to conduct 
     an in-depth study of school finance. The study by the 
     National Academy of Sciences shall include the following:
       ``(1) Review Federal policy issues regarding educational 
     access and equity with respect to fiscal and educational 
     resources.
       ``(2) Review existing State and local systems and evaluate 
     alternative mechanisms for school financing programs with 
     regard to equity and adequacy.
       ``(3) Review the legal and constitutional context of school 
     finance and equalization programs.
       ``(4) Evaluate the costs of providing education to students 
     with special needs.
       ``(5) Evaluate the costs entailed in providing education 
     that promotes the student outcomes called for in the National 
     Education Goals.
       ``(6) Review the relationships between resources, 
     instruction and children's learning needs, explore a variety 
     of indicators of need, how to measure need, and how to link 
     need to expenditure, and develop illustrative indicators of 
     student achievement and other desired outcomes that might 
     clarify the relationship between education expenditures, the 
     quality and quantity of instruction and resources available, 
     and the background characteristics of students.
       ``(7) Propose funding models for States and local 
     educational agencies to consider and explicate the conceptual 
     framework of each approach with regard to tax policy, equity, 
     compensatory aid to populations with special needs, and a 
     performance-oriented education policy.
       ``(b) Interim Report.--(1) The National Academy of Sciences 
     shall prepare and submit to the Secretary and the Congress an 
     interim report not later than 24 months after the procurement 
     is made and a final report not later than 36 months after the 
     date of procurement. The interim report shall--
       ``(A) review the data collection design prepared by the 
     Secretary and any preliminary data on the current state of 
     education finance; and
       ``(B) communicate appropriate findings to date.
       ``(2) The final report shall--
       ``(A) provide a comprehensive analysis of education finance 
     structures and the legal context of school finance;
       ``(B) provide guidance on the resources that will be needed 
     at the school, district, and State level to implement reform 
     plans and meet the National Education Goals;
       ``(C) bring together the best thinking on equity and 
     adequacy as philosophical underpinnings of education finance 
     systems; and
       ``(D) propose and explicate a variety of funding models.''
     --Page 458, strike lines 11 through 15 and insert the 
     following:

     ``SEC. 5205. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Technical Assistance.--For the purpose of carrying 
     out sections 5201 and 5202, there are authorized to be 
     appropriated $8,000,000 for fiscal year 1995 and such sums as 
     may be necessary for each of the fiscal years 1996, 1997, 
     1998, and 1999.
       ``(b) National Academy of Sciences.--For the purpose of 
     carrying out section 5203, there are authorized to be 
     appropriated $3,865,000 to be available until expended.
           By Mr. ORTON:
     --Page 201, line 6, strike ``$325,000'' and insert 
     ``$375,000''.
           By Mr. OWENS:
     --Beginning on page 28, strike line 12 and all that follows 
     through page 30, line 2, and insert in lieu thereof the 
     following:
       ``(iii) model opportunity to learn standards for schools 
     which receive assistance under this title that address--
       ``(I) the alignment of curricula, instructional materials, 
     and other school resources with the content and performance 
     standards adopted by the State;
       ``(II) the capability of teachers to provide high quality 
     instruction within each subject area for which the State has 
     adopted content and performance standards;
       ``(III) such other factors that the State deems appropriate 
     to ensure that students served under this title receive a 
     fair opportunity to achieve the knowledge and skills 
     described in content and performance standards adopted by the 
     State.''
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly)
     --Page 36, line 18 after ``agencies'' insert ``and the public 
     of the standards and assessments developed under this 
     section, and''
     --Page 39, after line 12, insert the following new paragraph 
     (and redesignate accordingly):
       ``(g) Notwithstanding any other provision of this Act, the 
     implementation of model opportunity to learn standards shall 
     be voluntary on the part of the States, local educational 
     agencies, and schools. It is the sense of the Congress that 
     the Federal government should provide additional assistance 
     to States, local educational agencies, and schools to support 
     the implementation of model opportunity to learn standards.''
     --Page 39, after line 17, insert the following new paragraphs 
     (and redesignate accordingly):
       ``(i) Nothing in this section shall be constructed to 
     create a legally enforceable right for any person against a 
     State, local educational agency, or school based on 
     opportunity to learn standards.
       ``(j) Nothing in this section shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.
       ``(k) Nothing in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.''
     --Page 42, strike lines 19 through 22
     --Page 67, strike line 7 through 9
     --Page 69, line 3, after ``standards'' insert ``including 
     reviewing the school's plan in the context of the State's 
     model opportunity to learn standards''
     --Page 70, line 13 after ``include'' insert ``implementing 
     the State's model opportunity to learn standards,''
     --Page 72, line 20, after ``standards'' insert ``including 
     reviewing the local educational agency's plan in the context 
     of the State's model opportunity to learn standards''
     --Page 74, line 1, after ``including'' insert ``implementing 
     the State's model opportunity to learn standards,''
     --Page 75, line 12, strike ``and opportunity to learn 
     standards''
     --Page 91, line 19, strike ``opportunity to learn standards''
     --Page 183, after line 16 insert the following (and 
     redesignate accordingly):
       ``(v) developing and voluntarily implementing model State 
     opportunity to learn standards, including whether such 
     standards are useful in improving teaching and learning;''
     --Page 23, after line 20, insert the following:
       ``(e) Adequate Funding.--In recognition of--
       ``(1) the special educational needs of children from low 
     income families and the impact of concentrations of low 
     income families on the ability of local educational agencies 
     to provide educational programs which meet such needs; and
       ``(2) the special educational needs of children of migrant 
     parents, of Indian children, of delinquent youth, and of 
     youth who are at risk of dropping out,

     the Congress declares it to be the policy of the United 
     States to--
       ``(A) provide financial assistance to State and local 
     educational agencies to meet the special needs of such 
     educationally deprived children at the preschool, elementary 
     and secondary levels;
       ``(B) expand the program authorized by this title over the 
     next five years by increasing the funding for this title by 
     at least $1,000,000,000 over baseline each fiscal year and 
     thereby increasing the percentage of eligible children served 
     in each fiscal year with the intent of serving all eligible 
     children by fiscal year 1999;
       ``(C) provide such assistance in a way which eliminates 
     unnecessary administrative burden and paperwork and overly 
     prescriptive regulations and provides flexibility to State 
     and local educational agencies in making educational 
     decisions.''
     --Page 24, line 2, strike ``$7,400,000,000'' and insert in 
     lieu thereof ``$7,600,000,000''
     --Beginning on page 20, strike line 12 and all that follows 
     through page 30, line 2, and insert in lieu thereof the 
     following:
       ``(iii) model opportunity to learn standards for schools 
     which receive assistance under this title that address--
       ``(I) the alignment of curricula, instructional materials, 
     and other school resources with the content and performance 
     standards adopted by the State;
       ``(II) the capability of teachers to provide high quality 
     instruction within each subject area for which the State has 
     adopted content and performance standards;
       ``(III) such other factors that the State deems appropriate 
     to ensure that students served under this title receive a 
     fair opportunity to achieve the knowledge and skills 
     described in content and performance standards adopted by the 
     State.''
     --Page 34, strike lines 7 through 11 (and redesignate any 
     subsequent paragraphs accordingly).
     --Page 37, after line 7 insert the following (and redesignate 
     any subsequent paragraphs accordingly):
       ``(6) how the State educational agency will inform the 
     public about the content of its model State opportunity to 
     learn standards;''
     --Page 39, after line 17, insert the following new paragraphs 
     (and redesignate accordingly):
       ``(i) Nothing in this section shall be construed to create 
     a legally enforceable right for any person against a State, 
     local educational agency, or school based on opportunity to 
     learn standards.
       ``(j) Nothing in this section shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.
       ``(k) Noting in this section shall be construed to mandate 
     national school building standards for a State, local 
     educational agency, or school.''
     --Page 42, strike lines 19 through 22.
     --Page 67, strike lines 7 through 9.
     --Page 69, line 3, after ``standards'' insert ``including 
     reviewing the school's plan in the context of the State's 
     model opportunity to learn standards''.
     --Page 70, line 13 after ``include'' insert ``implementing 
     the State's model opportunity to learn standards,''
     --Page 72, line 20, after ``standards'' insert ``including 
     reviewing the local educational agency's plan in the context 
     of the State's model opportunity to learn standards''
     --Page 74, line 1, after ``include'' insert ``implementing 
     the State's model opportunity to learn standards,''.
     --Page 75, line 12, strike ``and opportunity to learn 
     standards''
     --Page 91, line 19, strike ``opportunity to learn standards''
     --Page 183, after line 16 insert the following (and 
     redesignate accordingly):
       ``(v) developing and voluntarily implementing model State 
     opportunity to learn standards, including whether such 
     standards are useful in improving teaching and learning;''
     --Page 264, line 17, after ``facilities'' insert ``adult and 
     family education programs,''
     --Page 267, line 15, after ``Labor'' insert ``the National 
     Institute for Literacy,''
     --Page 268, after line 12, add a new ``(E)'' (and redesignate 
     succeeding paragraphs accordingly)
       ``(E) increased access to high quality adult and family 
     education services through the use of technology for 
     instruction and professional development;''
     --Page 269, line 20, delete ``and'' and insert ``,'' and line 
     21, after ``1993'' insert ``, and the National Literacy Act''
     --Page 270, line 3, after the comma insert ``adult and family 
     education,''
     --Page 272, line 20, after ``students'' insert ``of all 
     ages'' and line 21, strike ``local educational agencies'' and 
     insert in lieu thereof ``educational settings''
     --Page 276, after line 8 insert ``(iii) adult and family 
     education programs;'' (and redesignate succeeding paragraphs 
     accordingly)
     --Page 277, line 17, delete the first ``and'' and line 18, 
     after ``efforts'' insert ``, and how it will contribute to 
     creating a high quality system of lifelong learning''
     --Page 280, line 23, after ``staff'' insert ``, and adult and 
     family educators''
     --Page 282, line 7, insert a new ``(2)'' (and redesignate the 
     following paragraphs accordingly)
       ``(2) would provide services to programs serving adults, 
     especially parents, with low levels of literacy; and''
     --Page 287, line 2, after ``agencies'' insert ``, and adult 
     and family education programs''
     --Page 288, line 21, after ``students'' insert ``of all 
     ages''
     --Page 409, line 18, strike paragraph (2) and insert in lieu 
     thereof:
       ``(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, early intervention, rehabilitation referral, and 
     education;
     --Page 410, line 24, insert the following new paragraph:
       ``(3) for State grants under part C, $100,000,000 for 
     fiscal year 1995 and such sums as may be necessary for each 
     of fiscal years 1996 through 1999.''
     --Page 416, line 23, strike ``Except as provided in 
     subparagraph (2)''
       ``(a) Use of Funds.--The total amount allocated to a State 
     under section 4101 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.''
     --Page 417, line 4, strike paragraph (2).
     --Page 431, line 19, strike ``shall expend not less than 21 
     percent'' and insert in lieu thereof ``may expend''
     --Page 438, line 22, insert the following: (and redesignate 
     succeeding section accordingly).

                 ``Part C--Grants to State Governors''

       ``Sec. 4203. (a) State Allotments.--The Secretary shall, 
     for each fiscal year, allocate among the States--
       ``(A) one-half of the amount appropriated under paragraph 
     (3) of section 5004 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 the amount appropriated under paragraph 
     (3) of section 5004 according to the ratio between the amount 
     each State received under sections 1124 and 1124A of this Act 
     for the preceding year (or, for fiscal year 1995 only, 
     sections 1005 and 1006 of this Act as in effect on the day 
     before enactment of the Safe and Drug-Free Schools and 
     Communities Act Amendments of 1994) and the sum of such 
     amounts received by all the States.
       ``(2) For any fiscal year, no State shall be alotted under 
     this subsection an amount less than 1 percent of the total 
     amount alotted to all the States under this subsection.
       ``(3) 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 two years of such allotment. 
     Such reallotment shall be made on the same basis as 
     allotments made under paragraph (1).
       ``(4) For the purposes of this subsection, the term State 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.


                         ``STATE APPLICATIONS''

       ``Sec. 4204. (a) In General.--In order to receive its 
     allotment under section 4203 for any fiscal year, a State 
     shall submit to the Secretary, at such time as the Secretary 
     may require, an application that contains a comprehensive 
     plan for the use of funds under section 4203 by the chief 
     executive officer that includes--
       ``(1) a statement of the chief executive officer's 
     measurable goals and objectives for drug and violence 
     prevention and a description of the procedures to be used for 
     assessing and publicly reporting progress toward meeting 
     those goals and objectives;
       ``(2) a description of how the chief executive officer will 
     coordinate activities under section 4205 with the State 
     educational agency and other State agencies and organizations 
     involved with drug and violence prevention efforts;
       ``(3) a description of how funds allotted under section 
     4203 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;
       ``(4) a description of how the chief executive officer will 
     award funds under section 4205 and a plan for monitoring the 
     performance of, and providing technical assistance to, 
     recipients of such funds; and
       ``(5) a description of the special initiatives that will be 
     undertaken with the funds allotted under section 4103 to 
     assist those communities within the State which have the 
     greatest need for drug and violence prevention assistance, as 
     measured by objective factors which include--
       ``(A) high rates of alcohol or other drug abuse among 
     youth;
       ``(B) high rates of victimization of youth by violence and 
     crime;
       ``(C) high rates of arrests and convictions of youth for 
     violent or drug- or alcohol-related crime;
       ``(D) the extent of illegal gang activity;
       ``(E) high rates of referrals of youth to drug and alcohol 
     abuse treatment and rehabilitation programs;
       ``(F) high rates of referrals of youth to juvenile court;
       ``(G) high rates of expulsions and suspensions of students 
     from schools; and
       ``(H) high rates of reported cases of child abuse and 
     domestic violence.
       ``(6) a description of the special outreach efforts and 
     other activities which will be undertaken to ensure the full 
     participation of community-based organizations located in 
     communities with high rates of poverty, as well as 
     organizations which provide services to African-Americans, 
     Hispanics, and other minorities; and
       ``(7) a description of how funds will be used to support 
     community-wide comprehensive drug and violence prevention 
     planning.
       ``(b) Peer Review.--The Secretary shall use a peer review 
     process in reviewing State applications under this section.
       ``Sec. 4205 (a) Use of Funds.--The amount allocated to a 
     State under section 4203 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.
       ``(b) State Administration.--A chief executive officer may 
     use no more than 4 percent of the amount allotted under 
     subsection (a) for the administrative costs incurred in 
     carrying out the duties of such officer under this section.
       ``(c) Programs Authorized.--A chief executive officer shall 
     use funds reserved under subsection (a) for grants to, or 
     contracts with, parent groups, community action and job 
     training agencies, community-based organizations, and other 
     public entities and private nonprofit organizations to 
     support programs and activities such as--
       ``(1) development 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, law 
     enforcement, health, mental health, and other appropriate 
     services;
       ``(2) planning and implementing drug and violence 
     prevention activities that coordinate the efforts of 
     community-based agencies with those of the local educational 
     agency;
       ``(3) activities to protect students traveling to and from 
     school;
       ``(4) developing and implementing strategies to prevent 
     illegal gang activity;
       ``(5) coordinating and conducting community-wide violence 
     and safety assessments and surveys;
       ``(6) programs and activities which address the needs of 
     children and youth who are not normally served by the local 
     educational agency, including preschoolers, dropouts, youth 
     in juvenile detention facilities, and runaways or homeless 
     children and youth;
       ``(7) disseminating information about drugs and violence 
     prevention;
       ``(8) training parents, law enforcement officials, judicial 
     officials, social service providers, health service providers 
     and community leaders about drug and violence prevention, 
     education, early intervention, counseling, or rehabilitation 
     referral;
       ``(9) before- and after-school recreational, instructional, 
     cultural, and artistic programs in supervised community 
     settings; and
       ``(10) evaluating programs and activities carried out under 
     this section.''
     --Page 762, after line 23, insert the following new part:

                      ``Part G--Custodial Services

     ``SEC. 9701. COMPENSATION OF CUSTODIANS.

       ``Notwithstanding any other provisions of law, a local 
     educational agency which contains five counties in their 
     entirety and has a student population which exceeds 900,000 
     may not use any assistance under this Act to provide 
     compensation or other financial benefits to personnel who 
     provide janitorial or custodial services to and within 
     schools.''
     --Page 762, after line 23, insert the following new part:

                      ``Part G--Custodial Services

     ``SEC. 9701. COMPENSATION OF CUSTODIANS.

       ``Notwithstanding any other provisions of law, a local 
     educational agency may not use any assistance under this Act 
     to provide compensation or other financial benefits to 
     personnel who provide janitorial or custodial services to and 
     within schools.''
     --Page 880, line 1, insert the following new subparagraph 
     (and redesignate succeeding subparagraphs accordingly)--
       ``(F) violence against teachers and students, and other 
     indices of school safety;''
           By Mr. PETRI:
     --Page 218, line 18--following ``of teacher certification.'' 
     add
       ``Nothing in this section shall be construed to supersede 
     waivers of teacher certification requirements, consistent 
     with State law, that are granted to public charter schools by 
     State and local educational agencies.''
           By Mr. PORTER:
     --Page 701, strike line 14 and all that follows through line 
     13 on page 705 and insert the following:
       ``(f) Additional Assistance for Heavily Impacted Local 
     Educational Agencies.--
       ``(1) Reservation.--From amounts appropriated under section 
     8013(d) for a fiscal year, the Secretary shall provide 
     additional assistance to meet special circumstances relating 
     to the provision of education in local educational agencies 
     eligible to receive assistance under this section.
       ``(2) Eligibility.--A local educational agency shall be 
     eligible to receive additional assistance under this 
     subsection only if such agency--
       ``(A)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 40 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 95 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State;
       ``(B)(i) has an enrollment of federally connected children 
     described in subsection (a)(1) which constitutes at least 35 
     percent of the total student enrollment of such agency; and
       ``(ii) has a tax rate for general fund purposes which is at 
     least 125 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State; or
       ``(C) is a local education agency whose boundaries are the 
     same as a Federal military installation or includes Federal 
     property under exclusive Federal jurisdiction.
       ``(3) Maximum payments.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall determine the maximum amount that a local 
     educational agency may receive under this subsection in 
     accordance with the following computations:
       ``(i) The Secretary shall first determine the greater of--

       ``(I) the average per pupil expenditure of the State in 
     which the local educational agency is located or the average 
     per pupil expenditure of all the States;
       ``(II) the average per pupil expenditure of generally 
     comparable school districts located in the State of the local 
     educational agency, as defined by the Secretary in 
     regulations; or
       ``(III) the average per pupil expenditure of three 
     generally comparable school districts located in the State of 
     the local educational agency, as defined by the Secretary in 
     regulations.

       ``(ii) The Secretary shall next subtract from the amount 
     determined under clause (i) the average amount of State aid 
     per pupil received by the local educational agency.
       ``(iii) The Secretary shall next multiply the amount 
     determined under clause (ii) by the sum of the total weighted 
     units of the local educational agency, as computed under 
     subsection (a)(2).
       ``(iv) If the tax rate of the local educational agency is 
     greater than 94 percent, but less than 100 percent, of the 
     tax rate of comparable school districts, the Secretary shall 
     next multiply the amount determined under clause (iii) by the 
     percentage that the tax rate of the local educational agency 
     is of--

       ``(I) the average tax rate of its generally comparable 
     school districts; or
       ``(II) the average tax rate of all the school districts in 
     the State in which the local educational agency is located.

       ``(v) The Secretary shall next subtract the total amount of 
     payments received by a local educational agency under 
     subsections (b) and (d) for a fiscal year from the amount 
     determined under clause (iii) or clause (iv), as the case may 
     be.
       ``(B) Special rule.--With respect to payments to local 
     educational agencies described in subparagraphs (B) and (C) 
     of paragraph (2), the maximum amount of such payments shall 
     be equal to the product of the average per pupil expenditure 
     of all the States multiplied by .7, except that such amount 
     may not exceed 125 percent of the average per pupil 
     expenditure of all local educational agencies in the State.
       ``(4) Current year data.--The Secretary shall, for purposes 
     of providing assistance under this subsection, use--
       ``(A) data from the fiscal year in which the local 
     educational agency is applying for assistance under this 
     subsection; or
       ``(B) the most recent data available which is adjusted to 
     such fiscal year.
           By Mr. RICHARDSON:
     --Page 713, line 24, strike ``For purposes'' and insert ``(i) 
     For purposes''.
     --Page 714, after line 11, insert the following:
       ``(ii) If a program of State aid uses a `weighted-pupil', a 
     `classroom', `instructional unit', or other designated unit 
     of need in determining allocations of State aid in order to 
     take account of special cost differentials, the computation 
     of per-pupil revenue or current expenditures may be made on 
     the basis of any such unit of need.
           By Mr. ROEMER:
     --Page 313, after line 19, insert the following:
       ``(c) Limitation.--No funds shall be appropriated to carry 
     out this part for a fiscal year until the funds appropriated 
     to carry out section 2103 of this Act for such fiscal year 
     equals the amount of funds authorized to be appropriated to 
     carry out section 2103 for such fiscal year.
           By Mr. ROMERO-BARCELO:
     --Page 106, line 20 before ``the percentage'' insert ``the 
     greater of''.
     --Page 106, line 21, after ``sentence'' insert ``and 60 
     percent for fiscal year 1995, 70 percent for fiscal year 
     1996, 80 percent for fiscal year 1997, 90 percent for fiscal 
     year 1998, and 100 percent for fiscal year 1999 and 
     succeeding fiscal years''.
     --Page 123, line 15, after ``1.62'' insert ``for fiscal year 
     1995, 2.0 for fiscal year 1996, 2.33 for fiscal year 1997, 
     2.67 for fiscal year 1998, and 3.0 for fiscal year 1999 and 
     succeeding fiscal years''.
     --Page 123, line 15, strike ``1.62'' and insert ``2.5''.
           By Mr. ROHRABACHER:
     --Page 25, after line 18, insert the following:

     ``SEC. 1003. REPORTING REQUIREMENTS.

       ``None of the funds authorized in section 1002 shall be 
     made available to a local educational agency unless--
       ``(1) such agency, beginning on October 1, 1994, and 
     continuing on or before such date in each subsequent year, 
     submits to the Assistant Secretary of Education for 
     Elementary and Secondary Education, a statement regarding the 
     total number of students enrolled in its school system, the 
     number of students enrolled who are not lawfully in the 
     United States, the number of students who are lawfully in the 
     United States who do not have at least 1 parent or legal 
     guardian who is lawfully in the United States, and the 
     average per pupil expenditure of the local educational 
     agency.
       ``(2) The data submitted under paragraph (1) shall be 
     current as of any date in the 30-day period prior to the date 
     that the Assistant Secretary requires.
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. PROHIBITING BENEFITS FOR ILLEGAL ALIENS.

       ``No funds authorized in this Act may be used to provide 
     any benefit or assistance to any individual who is not--
       ``(1) a citizen or national of the United States;
       ``(2) a permanent resident alien; or
       ``(3) an alien who is a parolee, asylee, or refugee under 
     the Immigration and Nationality Act.''.
           By Mr. ROTH:
     --Page 619, beginning on line 15, strike ``including'' and 
     all that follows through ``language'' on line 16.
     --Page 620, line 7, strike ``; and'' and insert a period.
     --Page 620, strike lines 8 through 15.
     --Page 621, strike lines 7 through 12 (and redesignate 
     subsequent paragraphs accordingly).
     --Page 622, line 15, insert ``or'' after the semicolon.
     --Page 622, strike lines 16 through 19 (and redesignate any 
     subsequent subparagraphs accordingly.
     --Page 623, beginning on line 2, strike ``is, thereby,'' and 
     all that follows through line 3 and insert ``is, as a result, 
     in need of additional or remedial English assistance.''.
     --Page 623, line 6, after ``which'' insert ``may, but are not 
     required, to''.
     --Page 628, line 6, strike ``(A)''.
     --Page 628, strike lines 10 through 13.
     --Page 628, line 16, strike ``and to the extent feasible''.
     --Beginning on page 618, strike line 1 and all that follows 
     through page 688, line 10.
           By Mr. SKAGGS:
     --Page 430, line 12, after ``mediation'' insert ``, student 
     pledges to renounce the use of violence, student non-violence 
     awareness days, student outreach efforts against violence,''.
     --Page 431, at the end of line 17, add the following 
     sentence: ``Local educational agencies may use funds obtained 
     under this part to pay the costs of programs and activities 
     complying with the requirements of this section that are 
     carried out by student organizations.''.
           By Ms. SLAUGHTER:
     --Page 852, line 24, strike ``, to the extent possible,''.
     --Page 852, line 25, after ``selection'' insert ``unless the 
     local education agency has a compelling reason for not 
     complying with this request.''
           By Mr. SMITH of Michigan:
     --Page 26, after line 14, insert the following new 
     subparagraph (B) and redesignate subsequent provisions:
       ``(B) supports the family unit by incorporating into 
     instruction given to children the teaching of one or more of 
     the following ethical principles--
       ``(i) Honesty: To be truthful, sincere, forthright, 
     straightforward, frank and candid; to not cheat, steal, lie, 
     deceive, or act deviously.
       ``(ii) Integrity: To be principled, honorable, and upright; 
     to not be two-faced or unscrupulous.
       ``(iii) Promise-keeping: To be worthy of trust, keep 
     promises, fulfill commitments, and abide by the spirit as 
     well as the letter of an agreement.
       ``(iv) Loyalty: To be faithful and loyal to family, 
     friends, employees, clients, and country.
       ``(v) Fairness: To be fair and open-minded, willing to 
     admit error, and, if appropriate, change positions and 
     beliefs; to demonstrate a commitment to justice and the equal 
     treatment of individuals.
       ``(vi) Caring for others: To be caring, kind, and 
     compassionate; to share; to be giving and of service to 
     others; to help those in need and avoid harming others.
       ``(vii) Respect for others: To demonstrate respect for 
     other people's property, human dignity, and privacy; to be 
     courteous, prompt, and decent; to not patronize, embarrass, 
     or demean.
       ``(viii) Responsible citizenship: To obey the laws and, if 
     a law is unjust, protest it and try to change it but continue 
     to obey.
       ``(ix) Pursuit of excellence: To pursue excellence in all 
     matters and in meeting personal responsibilities; to 
     diligent, reliable, industrious, and committed; to perform 
     all tasks to the best of one's ability, develop and maintain 
     a high degree of competence, and be well informed and well 
     prepared; to not be content with mediocrity; to not strive to 
     `win at any cost'.
       ``(x) Accountability: To be accountable and accept 
     responsibility for decisions, for the foreseeable consequence 
     of actions and inactions, and for setting an example for 
     other.''.
           By Mr. STEARNS:
     --In Title III--Amendments to Other Acts, Part A--Amendments 
     to the Individuals With Disabilities Education Act, page 840, 
     after line 25, insert new Sec. 314--With Respect to 
     Disciplinary Proceedings for Possession of Deadly Weapons:

     SECTION 1. INAPPLICABILITY OF REQUIREMENT REGARDING CONTINUED 
                   EDUCATIONAL PLACEMENT OF CHILDREN WITH 
                   DISABILITIES DURING DISCIPLINARY PROCEEDINGS 
                   FOR POSSESSION OF FIREARMS OR OTHER DEADLY 
                   WEAPONS OR ASSAULT WITH DEADLY WEAPONS.

       (a) In General--Paragraph (3) of section 615(e) of the 
     Individuals with Disabilities Act (20 U.S.C. 1415(e)(3)) is 
     amended--
       (1) by inserting ``A'' after the paragraph designation;
       (2) in subparagraph (A) (as so designated), by striking 
     ``During'' and inserting ``Except as provided in subparagraph 
     (B), during'', and
       (3) by adding at the end the following new subparagraph:
       ``(B) The requirement contained in subparagraph (A) 
     regarding the maintenance of a child with a disability in the 
     current educational placement of such child shall not apply 
     with respect to a disciplinary proceeding against such child 
     for possession of a firearm or other deadly weapon or assault 
     with a deadly weapon.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     apply with respect to a disciplinary proceeding commenced on 
     or after the date of the enactment of this Act.
           By Mr. THOMAS of Wyoming:
     --On Page 52, line 11, strike ``60 percent'' and insert in 
     lieu thereof the following: ``50 percent''.
           By Mrs. THURMAN:
     --Beginning on page 100, strike line 1 and all that follows 
     through page 127, line 21, and insert the following:

                        ``Subpart 2--Allocations


   ``grants for the outlying areas and the secretary of the interior

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

       ``(a) Reservation of Funds.--From the amount appropriated 
     for payments to States for any fiscal year under section 
     1002(a), the Secretary shall reserve a total of up to 0.8 
     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 (b).
       ``(b) Allotment to the Secretary of the Interior.--(1) The 
     amount allotted 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 
     and secondary schools for Indian children operated or 
     supported by the Department of the Interior; and
       ``(B) out-of-State Indian children in elementary and 
     secondary schools in local educational agencies under special 
     contracts with the Department of the Interior.
       ``(2) From the amount allotted 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 of 
     Education determines will best carry out the purposes of this 
     part, with respect to out-of-State Indian children described 
     in paragraph (1). 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. ALLOCATIONS TO STATES.

       ``(a) General.--After reserving funds under section 
     1121(a), the Secretary shall allocate the remaining funds 
     appropriated under section 1002(a) to States as follows:
       ``(1) 50 percent of such funds shall be allocated for basic 
     grants in accordance with section 1123.
       ``(2) 50 percent of such funds shall be allocated for 
     concentration grants in accordance with section 1124.
       ``(b) Adjustments Where Necessitated by Appropriations.--
     (1) If the sums available under subsection (a) for any fiscal 
     year are insufficient to pay the full amounts that all 
     counties in States are eligible to receive under sections 
     1123 and 1124 for such year, the Secretary shall ratably 
     reduce the allocations to such counties, subject to 
     subsections (c) and (d) of this section.
       ``(2) If additional funds become available for making 
     payments under sections 1123 and 1124 for such fiscal year, 
     allocations that were reduced under paragraph (1) shall be 
     increased on the same basis as they were reduced.
       ``(c) Hold-Harmless Amounts.--Notwithstanding subsection 
     (b), the total amount made available to each county under 
     sections 1123 and 1124 for any fiscal year shall be at least 
     85 percent of the total amount such county was allocated 
     under such sections (or, for fiscal year 1995, their 
     predecessor authorities) for the preceding fiscal year.
       ``(d) State Minimum.--Notwithstanding any other provision 
     of this part, from the total amount available for any fiscal 
     year to carry out sections 1123 and 1124, each State shall be 
     allotted at least the lesser of--
       ``(1) one quarter of one percent of such amount; or
       ``(2) the amount it was allotted under such sections (or, 
     for fiscal year 1995, under their predecessor authorities) 
     for the previous year increased or decreased, as the case may 
     be, by the same percentage by which such total amount 
     appropriated for those sections increased or decreased from 
     the previous year.
       ``(e) Definition--For the purpose of this section and 
     sections 1123 through 1125, the term `State' means each of 
     the 50 States, the District of Columbia, and the Commonwealth 
     of Puerto Rico.

     ``SEC. 1123. BASIC GRANTS.

       ``(a) Eligibility of Counties.--A county in a State is 
     eligible for a basic grant under this section for any fiscal 
     year only if the number of children in the county counted 
     under subsection (c)(1)(A) is at least--
       ``(1) 100; or
       ``(2) 18 percent of the total number of children aged five 
     through 17 in the county.
       ``(b) Grants for Counties, the District of Columbia, and 
     Puerto Rico.--(1) The amount of the grant that a county in a 
     State or that the District of Columbia is eligible to receive 
     under this section for any fiscal year shall be the product 
     of--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that such percentage shall not be less than 
     32 percent nor more than 48 percent of the average per-pupil 
     expenditure in the United States.
       ``(2) For each fiscal year, the amount of the grant for 
     which the Commonwealth of Puerto Rico is eligible under this 
     section shall be equal to--
       ``(A) the number of children counted under subsection (c) 
     for Puerto Rico, multiplied by the product of--
       ``(B)(i) the percentage that the average per-pupil 
     expenditure in Puerto Rico is of the lowest average per-pupil 
     expenditure of any of the 50 States; and
       ``(ii) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(c) Children To Be Counted.--
       ``(1) Categories of children.--The number of children to be 
     counted for purposes of this section shall be--
       ``(A) the total number of children aged five through 17 in 
     a county--
        ``(i) from families below the poverty level, as determined 
     under paragraph (2)(A);
       ``(ii) from families above the poverty level, as determined 
     under paragraph (2) (B) and (C); and
       ``(iii) living in institutions for neglected or delinquent 
     children (other than institutions operated by the United 
     States and those with children counted under part D of this 
     title) or being supported in foster homes with public funds, 
     as determined under paragraph (2)(C); less
       ``(B) two percent of the total number of children aged five 
     through 17 in the county.
       ``(2) Determination of number of children.--(A)(i) The 
     Secretary shall determine the number of children described in 
     paragraph (1)(A)(i) on the basis of the most recent 
     satisfactory data available from the Department of Commerce 
     for counties, the District of Columbia, and Puerto Rico.
       ``(ii) In making such determinations, the Secretary shall 
     use the criteria of poverty used by the Bureau of the Census 
     in compiling the most recent decennial census.
       ``(B)(i) The Secretary shall determine the number of 
     children described in paragraph (1)(A)(ii) 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 the program of aid to families with dependent 
     children under a State plan approved under title IV of the 
     Social Security Act.
       ``(ii) In making such determinations, the Secretary shall 
     use the criteria of poverty used by the Bureau of the Census 
     in compiling the most recent decennial census, for a family 
     of four, in such form as those criteria have been updated to 
     reflect increases in the Consumer Price Index.
       ``(C) The Secretary shall determine the number of children 
     described in paragraph (1)(A) (ii) and (iii) on the basis 
     of--
       ``(i) caseload data for the month of October of the 
     preceding fiscal year, using, in the case of children 
     described in paragraph (1)(A)(ii), the criteria of poverty 
     and the form of such criteria that were determined for the 
     calendar year preceding such month of October; or
       ``(ii) to the extent that such data are not available to 
     the Secretary by January 1 of the calendar year in which the 
     Secretary's determination is made, on the basis of the most 
     recent reliable data available to the Secretary at the time 
     of such determination.
       ``(D) For purposes of this subsection, the Secretary shall 
     consider all children who are in correctional institutions to 
     be living in institutions for delinquent children.
       ``(E) The Secretary of Health and Human Services shall 
     collect and transmit information on the number of children 
     described in paragraph (1)(A)(ii) and the number of foster 
     children described in paragraph (1)(A)(iii) to the Secretary 
     by January 1 of each year.
       ``(d) Local Educational Agency Allocations.--(1) From funds 
     remaining after the State educational agency reserves any 
     funds under section 1601(c), and except as provided in 
     section 1125(d), a State educational agency shall allocate 
     each county amount determined under subsection (b) among all 
     local educational agencies in the county or counties in which 
     the agencies are located on the basis of--
       ``(A) the total number of children aged five through 17 in 
     the local educational agency--
       ``(i) in local institutions for neglected or delinquent 
     children; and
       ``(ii) from low-income families, as determined under 
     paragraph (2); less
       ``(B) two percent of the total number of children aged five 
     through 17 in the local educational agency.
       ``(2) The State educational agency shall determine the 
     number of children from low-income families in local 
     educational agencies--
       ``(A) based on the best data available on a Statewide 
     basis; and
       ``(B) using the same measure of low income throughout the 
     State.
       ``(3) The State educational agency shall distribute funds 
     under this section to each local educational agency in 
     proportion to the number of children counted under paragraph 
     (1) in the local educational agency compared to the number of 
     such children in all local educational agencies in the 
     county.

     ``SEC. 1124. CONCENTRATION GRANTS.

       ``(a) Eligibility of Counties.--Except as otherwise 
     provided in this section, a county in a State is eligible for 
     a grant under this section if--
       ``(1) the number of children counted under section 
     1123(c)(1)(A) in the county is more than 6,500; or
       ``(2) the percentage of children counted under such section 
     is greater than 18 percent of the total number of children 
     aged five through 17 in the county.
       ``(b) Grants for Counties, the District of Columbia, and 
     Puerto Rico.--(1) The amount of the grant that a county in a 
     State or that the District of Columbia or Puerto Rico is 
     eligible to receive under this section for any fiscal year is 
     the product of--
       ``(A) the number of children counted under section 
     1123(c)(1)(A), minus two percent of the total number of 
     children aged five through 17 in the county; and
       ``(B) the per-pupil amount determined under section 1123(b) 
     for the fiscal year for which the determination is being made 
     for that county.
       ``(c) Local Educational Agency Allocations.--(1)(A) From 
     funds remaining after the State educational agency reserves 
     any funds under section 1601(c), and except as otherwise 
     provided in this subsection and in section 1125(d), funds 
     allocated to counties under this section shall be allocated 
     by the State educational agency only to those local 
     educational agencies whose school districts lie, in whole or 
     in part, within the county and that are determined by the 
     State educational agency to meet either of the eligibility 
     criteria in subsection (a).
       ``(B) Such determinations shall be made on the basis of the 
     same poverty data used by the State educational agency under 
     section 1123(d). If the State educational agency does not use 
     census poverty data to determine eligibility, it must equate 
     the poverty measure it uses to the latest available census 
     data in order that eligibility is not affected by differences 
     in sources of poverty data.
       ``(C) The State educational agency shall distribute funds 
     under this section to each local educational agency that is 
     eligible to receive those funds in proportion to the number 
     of children counted under section 1123(d) in each local 
     educational agency compared to the number of such children in 
     all local educational agencies that are eligible for 
     concentration grants in the county.
       ``(2)(A) In counties where no local educational agency 
     meets either of the criteria in subsection (a), the State 
     educational agency shall allocate such funds among the local 
     educational agencies within such counties, in whole or in 
     part, based on their respective concentrations and numbers of 
     children counted under section 1123(d).
       ``(B) Only local educational agencies with concentrations 
     of poverty that exceed the countywide average percentage of 
     children counted under section 1123(d) or the countywide 
     average number of such children may receive any funds on the 
     basis of this paragraph.
       ``(3) In States that receive the minimum grant under 
     section 1122(d), the State educational agency shall allocate 
     such funds among the local educational agencies in such State 
     either--
       ``(A) in accordance with paragraphs (1) and (2) of this 
     subsection and section 1125(d); or
       ``(B) without regard to the counties in which such local 
     educational agencies are located, based on their respective 
     concentrations and numbers of children counted under section 
     1123(d), except that only those local educational agencies 
     with concentrations of children counted under section 1123(d) 
     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 subparagraph.
       ``(4) A State educational agency may reserve not more than 
     ten percent of its allocation under this section to make 
     direct payments to local educational agencies that meet 
     either of the criteria in subsection (a), but are in 
     ineligible counties.

     ``SEC. 1125. SPECIAL ALLOCATION PROCEDURES.

       ``(a) Hold-Harmless Amounts.--The total amount made 
     available to each local educational agency under sections 
     1123 and 1124 for any fiscal year shall be at least 85 
     percent of the total amount such agency received under such 
     sections (or, for fiscal year 1995, under their predecessor 
     authorities) for the preceding fiscal year.
       ``(b) Allocations for Neglected or Delinquent Children.--
     (1) 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 1123(c)(1)(A)(ii), the State 
     educational agency shall, if it assumes responsibility for 
     the special educational needs of such children, receive the 
     portion of such local educational agency's allocation under 
     sections 1123 and 1124 that is attributable to such children.
       ``(2) 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.
       ``(c) Allocations Among Local Educational Agencies.--The 
     State educational agency may allocate the amounts of grants 
     under sections 1123 and 1124 between and among the affected 
     local educational agencies when--
       ``(1) two or more local educational agencies serve, in 
     whole or in part, the same geographical area; or
       ``(2) a local educational agency provides free public 
     education for children who reside in the school district of 
     another local educational agency.
       ``(d) Allocations Without Regard to Counties.--A State 
     educational agency may allocate funds under sections 1123 and 
     1124 directly to eligible local educational agencies without 
     regard to counties if the State educational agency can 
     demonstrate to the Secretary's satisfaction that doing so 
     will result in a reasonable allocation of those funds.
       ``(e) Reallocation.--If a State educational agency 
     determines that the amount of a grant a local educational 
     agency would receive under sections 1123 and 1124 is more 
     than such local 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. 1126. CARRYOVER AND WAIVERS.

       ``(a) Limitation on Carryover.--Notwithstanding section 412 
     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 
     three 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.''.
           By Mr. TRAFICANT:
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. COMPLIANCE WITH BUY AMERICAN ACT.

       No funds appropriated pursuant to this Act may be expended 
     by an entity unless the entity agrees that in expending the 
     assistance the entity will comply with sections 2 through 4 
     of the Act of March 3, 1933 (41 U.S.C. 10a-10c, popularly 
     known as the ``Buy American Act'').

     ``SEC. 9509. SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.

       (a) Purchase of American-Made Equipment and Products.--In 
     the case of any equipment or products that may be authorized 
     to be purchased with financial assistance provided under this 
     Act, it is the sense of the Congress that entities receiving 
     such assistance should, in expending the assistance, purchase 
     only American-made equipment and products.
       (b) Notice to Recipients of Assistance.--In providing 
     financial assistance under this Act, the head of each Federal 
     agency shall provide to each recipient of the assistance a 
     notice describing the statement made in subsection (a) by the 
     Congress.

     ``SEC. 9510. PROHIBITION OF CONTRACTS.

       If it has been finally determined by a court or Federal 
     agency that any person intentionally affixed a label bearing 
     a ``Made in America'' inscription, or any inscription with 
     the same meaning, to any product sold in or shipped to the 
     United States that is not made in the United States, such 
     person shall be ineligible to receive any contract or 
     subcontract made with funds provided pursuant to this Act, 
     pursuant to the debarment, suspension, and ineligibility 
     procedures described in section 9.400 through 9.409 of title 
     48, Code of Federal Regulations.
     --Page 829, after line 11, insert the following:

     SEC. 310. DEFINITIONS.

       Section 602 of the Individuals with Disabilities Education 
     Act is amended by adding at the end the following:
       ``(28) The term ``blind or visually impaired student'' 
     means an individual who--
       ``(1) has a visual acuity of 20/200 or less in the better 
     eye with correcting lenses or has a limited field of vision 
     so that the widest diameter of the visual field subtends an 
     angle no greater than 20 degrees;
       ``(2) has a medically indicated expectation of visual 
     deterioration; or
       ``(3) has a medically diagnosed limitation in visual 
     functioning that restricts the student's ability to read and 
     write standard print at levels expected of other students of 
     comparable ability and grade level.
       ``(29) The term ``Braille Literacy Plan'' means the 
     components of an Individualized Education Plan (IEP) for a 
     child who is blind or visually impaired which, through 
     braille instruction and use, are designed to enable the child 
     to communicate effectively. The plan shall--
       ``(1) be based on a presumption that effective 
     communication commensurate with ability and grade level 
     requires that a child who is blind or visually impaired must 
     be given an assessment for braille and braille instruction 
     and use unless, on an individual basis, the results of such 
     assessment provide clear and convincing evidence that a 
     child's reading and writing performance is not affected by a 
     visual impairment;
       ``(2) describe the program of braille instruction designed 
     for the child, including the frequency and length of 
     instructional sessions, goals to be achieved, and the 
     objective measures to be used for assessing progress; and
       ``(3) describe how braille will be implemented as the 
     child's primary mode for learning through integration with 
     other classroom activities.''.
     --Page 837, after line 25, insert the following (and 
     redesignate any subsequent sections accordingly):

     SEC. 312. STATE PLANS.

       Section 613(a)(11) of the IDEA is amended by inserting `` 
     and Braille Literacy Plans'' after ``programs'' the 2d place 
     it appears.

     SEC. 313. APPLICATION.

       Section 614(a) of the IDEA is amended--
       (1) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (2) by inserting after paragraph (5) the following:
       ``(6) provide satisfactory assurances that the local 
     educational agency or intermediate educational unit will--
       ``(A) establish or revise, whichever is appropriate, a 
     Braille Literacy Plan which shall be incorporated into the 
     Individualized Education Program of each child with a 
     disability who is blind or visually impaired;
       ``(B) assure that braille instruction under each such plan 
     is provided by personnel who have demonstrated competency in 
     the teaching of braille consistent with standards adopted by 
     the National Library Service for the Blind and Physically 
     Handicapped of the Library of Congress; and
       ``(C) require that the publisher of any textbook or other 
     educational material obtained with funds provided under the 
     Elementary and Secondary Education Act of 1965 shall furnish 
     along with the ink-print editions at least one digital text 
     version of such textbook or other educational material.''.
     --Page 838 after line 25, insert the following (and 
     redesignate any subsequent sections accordingly):

     SEC. 313. GRANTS FOR PERSONNEL TRAINING.

       Section 631(a)(1) of the IDEA is amended--
       (1) in subparagraph (D), by striking ``and post-doctoral 
     levels), and'' and inserting ``and post-doctoral levels),'';
       (2) by striking the period at the end of subparagraph (E); 
     and
       (3) by adding after subparagraph (E) the following:
       ``(F) training of special education personnel and other 
     personnel in braille instructional services using standards 
     consistent with the Competency Test for Teachers developed by 
     the National Library Service for the Blind and Physically 
     Handicapped of the Library of Congress.''.
           By Ms. VELAZQUEZ:
     --Page 406, after line 18, insert the following:

                  ``PART J--HATE CRIME PREVENTION

     ``SEC. 3941. GRANT AUTHORIZATION.

       ``The Secretary of Education 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.

     ``SEC. 3492. USE OF FUNDS.

       ``(a) Grants under this section may be used to improve 
     elementary and secondary educational efforts, including--
       ``(1) development of education and training programs 
     designed to prevent and to reduce the incidence of crimes and 
     conflicts motivated by hate;
       ``(2) development of curricula for the purpose of improving 
     conflict or dispute resolution skills of students, teachers, 
     and administrators;
       ``(3) development and acquisition of equipment and 
     instructional materials to meet the needs of, or otherwise be 
     part of, hate crime or conflict programs; and
       ``(4) professional training and development for teachers 
     and administrators on the causes, effects, and resolutions of 
     hate crimes or hate-based conflicts.
       ``(b) In General.--In order to be eligible to receive a 
     grant under this part 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 office may reasonably require.
       ``(c) Requirements.--Each application under subsection (a) 
     shall include--
       ``(1) a request for funds for the purposes described in 
     this part;
       ``(2) a description of the schools and communities to be 
     served by the grants; and
       ``(3) assurances that Federal funds received under this 
     part shall be used to supplement, not supplant, non-Federal 
     funds.
       ``(d) Comprehensive Plan.--Each application shall include a 
     comprehensive plan that contains--
       ``(1) a description of the hate crime or conflict problems 
     within the schools or the community targeted for assistance;
       ``(2) a description of the program to be developed or 
     augmented by these Federal and matching funds;
       ``(3) assurances that such program or activity shall be 
     administered by or under the supervision of the applicant;
       ``(4) proper and efficient administration of such program; 
     and
       ``(5) fiscal control and fund accounting procedures as may 
     be necessary to ensure prudent use, proper disbursement, and 
     accurate accounting of funds received under this part.

     ``SEC. 3943. ALLOCATION OF FUNDS; LIMITATIONS OF GRANTS.

       ``(a) Administrative Cost Limitation.--The Secretary shall 
     use not more than 5 percent of the total funds available 
     under this part for the purposes of administration and 
     technical assistance.
       ``(b) Renewal of Grants.--Grants under this part shall be 
     limited to a total of $100,000 per recipient for a 2-year 
     period.
       ``(c) Federal Share.--The Federal share of a grant made 
     under this part may not exceed 80 percent of the total costs 
     of the projects for the fiscal year for which the project 
     receives assistance under this part.

     ``SEC. 3944. AWARD OF GRANTS.

       ``(a) 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 part.
       ``(b) Geographic Distribution.--The Secretary shall 
     attempt, to the extent practicable, to achieve an equitable 
     geographic distribution of grant awards.
       ``(c) 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 part.

     ``SEC. 3945. REPORTS.

       ``The Secretary shall submit to the Congress a report every 
     2 years which shall contain a detailed statement regarding 
     grants and awards, activities of grant recipients and an 
     evaluation of programs established under this part.

     ``SEC. 3946. DEFINITIONS.

       ``For the purposes of this part--
       ``(1) the term `hate crime' means a crime as defined by the 
     Hate Crime Statistics Act of 1990;
       ``(2) 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 and secondary schools in a city, county, township, 
     school district, or other political subdivision of a State, 
     or such combination of school districts or counties as are 
     recognized in a State as an administrative agency for its 
     public elementary and secondary schools and includes any 
     other public institution or agency having administrative 
     control and direction of a public elementary or secondary 
     school;
       ``(3) 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.

     ``SEC. 3947. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part, $5,000,000 for fiscal year 1995 and such sums as may be 
     necessary for fiscal years 1996 through 1999.
           By Mr. WHEAT:
     --Page 406, after line 18, insert the following:

                   ``PART J--PARENTS AS TEACHERS

     ``SEC. 3941. SHORT TITLE.

       ``This part may be cited as the `Parents as Teachers: the 
     Family Involvement in Education Act of 1994'.

     ``SEC. 3942. FINDINGS.

       ``The Congress finds--
       ``(1) increased parental involvement in the education of 
     their children appears to be the key to long-term gains for 
     youngsters;
       ``(2) providing seed money is an appropriate role for the 
     Federal Government to play in education;
       ``(3) children participating in the parents as teachers 
     program in Missouri are found to have increased cognitive or 
     intellectual skills, language ability, social skills and 
     other predictors of school success;
       ``(4) most early childhood programs begin at age 3 or 4 
     when remediation may already be necessary; and
       ``(5) many children receive no health screening between 
     birth and the time they enter school, thus such children miss 
     the opportunity of having developmental delays detected 
     early.

     ``SEC. 3943. STATEMENT OF PURPOSE.

       ``It is the purpose of this part to encourage States to 
     develop and expand parent and early childhood education 
     programs in an effort to--
       ``(1) increase parents' knowledge of and confidence in 
     child-rearing activities, such as teaching and nurturing 
     their young children;
       ``(2) strengthen partnerships between parents and schools; 
     and
       ``(3) enhance the developmental progress of participating 
     children.

     ``SEC. 3944. DEFINITIONS.

       ``For the purposes of this part--
       ``(1) the term `developmental screening' means the process 
     of measuring the progress of children to determine if there 
     are problems or potential problems or advanced abilities in 
     the areas of understanding and use of language, perception 
     through sight, perception through hearing, motor development 
     and hand-eye coordination, health, and physical development;
       ``(2) the term `eligible family' means any parent with one 
     or more children between birth and 3 years of age, or any 
     parent expecting a child;
       ``(3) the term `lead agency' means the office or agency in 
     a State designated by the Governor to administer the parents 
     as teachers program authorized by this part;
       ``(4) the term `parent education' includes parent support 
     activities, the provision of resource materials on child 
     development and parent-child learning activities, private and 
     group educational guidance, individual and group learning 
     experiences for the parent and child, and other activities 
     that enable the parent to improve learning in the home;
       ``(5) the term `parent educator' means a person hired by 
     the lead agency of a State or designated by local entities 
     who administers group meetings, home visits and developmental 
     screening for eligible families, and is trained by the 
     Parents As Teachers National Center established under section 
     3948; and
       ``(6) the term `Secretary' means the Secretary of 
     Education.

     ``SEC. 3945. PROGRAM ESTABLISHED.

       ``(a) In General.--
       ``(1) The Secretary is authorized to make grants to States 
     to pay the Federal share of the cost of establishing, 
     expanding, and operating parents as teachers programs.
       ``(2) In awarding grants under paragraph (1), the Secretary 
     shall give special consideration to applicants whose programs 
     primarily serve hard-to-serve populations, including--
       ``(A) teenaged parents,
       ``(B) illiterate parents,
       ``(C) economically disadvantaged parents,
       ``(D) offenders and their families,
       ``(E) unemployed parents,
       ``(F) learning disabled parents, and
       ``(G) non-English speaking parents.
       ``(3) In determining the amount of a grant under paragraph 
     (1), the Secretary shall take into consideration the size of 
     the population to be served, the size of the area to be 
     served, and the financial resources of such population and 
     area.
       ``(b) Special Rule.--Any State operating a parents as 
     teachers program which is associated with the Parents As 
     Teachers National Center located in St. Louis, Missouri, 
     shall be eligible to receive a grant under this part.

     ``SEC. 3946. PROGRAM REQUIREMENTS.

       ``(a) In General.--(1) Each State receiving a grant under 
     section 3945(a) shall conduct a parents as teachers program 
     which--
       ``(A) establishes and operates parent education programs 
     including programs of developmental screening of children; 
     and
       ``(B) designates a lead State agency which shall--
       ``(i) hire parent educators who have had supervised 
     experience in the care and education of children;
       ``(ii) establish the number of group meetings and home 
     visits required to be provided each year for each 
     participating family, with a minimum of 4 group meetings and 
     8 home visits for each participating family;
       ``(iii) be responsible for administering the periodic 
     screening of participating children's educational, hearing 
     and visual development, using the Denver Developmental Test, 
     Zimmerman Preschool Language Scale, or other approved 
     screening instruments; and
       ``(iv) develop recruitment and retention programs for hard-
     to-reach populations.
       ``(2) Grants awarded section 3945(a) shall only be used for 
     parents as teachers programs which serve families during the 
     period of time beginning with the last 3 months of a mother's 
     pregnancy and ending when a child attains the age of 3.

     ``SEC. 3947. PARENTS AS TEACHERS NATIONAL CENTER.

       ``The Secretary shall establish a Parents As Teachers 
     National Center to disseminate information to, and provide 
     technical and training assistance to, States establishing and 
     operating parents as teachers programs.

     ``SEC. 3948. EVALUATIONS.

       ``The Secretary shall complete an evaluation of the State 
     parents as teachers programs within 4 years from the date of 
     enactment of this part.

     ``SEC. 3949. APPLICATION.

       ``Each State desiring a grant under section 3945(a) shall 
     submit an application to the Secretary at such time, in such 
     manner and accompanied by such information as the Secretary 
     may reasonably require. Each such application shall describe 
     the activities and services for which assistance is sought.

     ``SEC. 3950. PAYMENTS AND FEDERAL SHARE.

       ``(a) Payments.--The Secretary shall pay to each State 
     having an application approved under section 3949 the Federal 
     share of the cost of the activities described in the 
     application.
       ``(b) Federal Share.--(1) The Federal share--
       ``(A) for the first year for which a State receives 
     assistance under this part shall be 100 percent;
       ``(B) for the second such year shall be 100 percent;
       ``(C) for the third such year shall be 75 percent;
       ``(D) for the fourth such year shall be 50 percent; and
       ``(E) for the fifth such year 25 percent.
       ``(2) The non-Federal share of payments under this part may 
     be in cash or in kind fairly evaluated, including planned 
     equipment or services.

     ``SEC. 3951. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated $20,000,000 for 
     each of the fiscal years 1995, 1996, 1997, 1998, and 1998 to 
     carry out this part.''.
           By Ms. WOOLSEY:
     --Title 9, p. 743, sec. 9206:
       On line 21 change ``Availability of Unneeded program 
     funds'' to ``Availability of Flexible program funds''
       On line 22 (a) change ``unneeded'' to ``flexible''.
       Add the rest of section 9206 as it presently appears in the 
     bill.
     --Title 10, pg. 763, line 9 add ``and youth'' after the word 
     children.
       On line 24 add ``and youth'' after the word children.
       Page 764: on line 3 add ``youth'' after the word children.
       Page 765:
       On line 18 change ``the development of a plan'' to 
     ``planning''
       on line 19 delete ``a plan for the''
       on line 19 change ``implementation of'' to ``implementing''
       on line 22 delete ``development of the''
     --To Title IX, on p. 763, add a new Part G
       Beginning on line 4 add ``Part G--Sense of the Congress to 
     Increase the Total Share of Federal Spending on Education
       ``The Congress finds that--
       ``(1) in order to increase our Nation's standard of living 
     and to increase the number of good jobs, the United States 
     must increase its productivity and ability to compete in the 
     international marketplace by improving the educational level 
     of our workforce;
       ``(2) although efforts are being made to establish higher 
     educational standards and goals, there is a substantial 
     shortage of resources to meet such standards and goals;
       ``(3) States and local communities are finding it 
     increasingly difficult to meet even higher educational 
     standards and goals, and States will not be able to fund 
     needed changes without Federal help to reach such standards 
     and goals;
       ``(4) the Federal Government has established many education 
     programs but failed to provide adequate funding for such 
     programs, for example one such program provides education to 
     our Nation's disabled students and was established with a 
     promise of 40 percent Federal funding but currently receives 
     only 8 percent Federal funding;
       ``(5) the annual shortfall in Federal education programs is 
     approximately half of the promised funding;
       ``(6) many needed education improvements will not need 
     Federal funds, however, other suggested changes such as 
     lengthened school years, better pay, after-school activities, 
     mentoring for students at risk, programs for gifted students, 
     and replacing substandard buildings will require substantial 
     Federal assistance; and
       ``(7) the Federal contribution to education is less than 2 
     percent of the total Federal budget, and in order to make 
     education a national priority, the total percentage of 
     Federal education funding should be increased by 1 percent 
     each year over the next 8 years to reach 10 percent of the 
     total Federal budget.
       ``(b) It is the sense of the Congress that the total share 
     of the Federal spending on education should increase by at 
     least 1 percent each year until such share reaches 10 percent 
     of the total Federal budget.''