[Congressional Record Volume 140, Number 17 (Thursday, February 24, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 24, 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. CASTLE:
     --Page 885, line 1, insert ``and the National Assessment 
     Governing Board as appropriate'' after ``Commissioner''.
     --Page 885, line 5, delete ``goals'' and insert ``levels''.
     --Page 896, delete lines 6 through 23 and insert the 
     following:
       (e) Student Performance Levels.--The student performance 
     levels established under section 412(e)(1)(A) may be used as 
     a basis for reporting results of the National Assessment and 
     State assessments, but shall be used on a trial basis only 
     until the Commissioner determines, through an evaluation 
     under subsection (f), that goals are reasonable, valid and 
     informative to the public. Other methods of reporting results 
     may also be used.
       Page 897, line 4, delete ``goals'' and insert ``levels''.
       Page 898, insert the following new section after line 5:

     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 three 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, such sums as may be necessary for each of the fiscal 
     years 1995 through 1999.
       Page 885, line 1, insert ``and the National Assessment 
     Governing Board as appropriate'' after ``Commissioner''.
     --Page 885, line 5, strike ``goals'' and insert ``levels''.
     --Page 896, strike lines 6 through 23 and insert the 
     following:
       (e) Student Performance Levels.--The student performance 
     levels established under section 412(e)(1)(A) may be used as 
     a basis for reporting results of the National Assessment and 
     State assessments, but shall be used on a trial basis only 
     until the Commissioner determines, through an evaluation 
     under subsection (f), that levels are reasonable, valid, and 
     informative to the public. Other methods of reporting results 
     may also be used.
     --Page 897, line 4, strike ``goals'' and insert ``levels''.
     --Page 898, insert the following new section after line 5:

     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) 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 superintendent of a local educational agency;
       (E) 1 member of a State board of education;
       (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, who shall have 
     training and experience in the field of testing and 
     measurement;
       (K) 1 nonpublic school administrator or policymaker;
       (L) 2 school principals, 1 elementary and 1 secondary; 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, nonvoting member of 
     the Board.
       (3) The Secretary shall ensure at all times that 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 3 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. No member of the Board may 
     serve more than 2 consecutive terms.
       (d) Vacancies.--As vacancies occur, new members of the 
     Board shall be appointed by the Secretary. In making 
     appointments, the Secretary shall solicit recommendations 
     from a wide variety of groups, including those representing 
     the types of individuals listed in subsection (b)(1).
       (e) Duties.--(1) The Board, working with the Assistant 
     Secretary, shall develop--
       (A) appropriate performance levels for each age and grade 
     in each subject area to be tested under the National 
     Assessment. Such levels shall be--
       (i) 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; and
       (ii) updated as appropriate;
       (B) assessment objectives and test specifications for each 
     subject area assessment. Such assessment objectives shall be 
     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;
       (C) guidelines for analysis plans and for reporting and 
     disseminating 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) The Board shall seek technical advice as appropriate, 
     from the Commissioner and the Advisory Council on Education 
     Statistics.
       (f) Personnel.--The Secretary may appoint, at the request 
     of the Board, such staff as the Board requires. Such 
     appointments may include, for terms not to exceed 3 years, 
     with regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, not more 
     than 6 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 to exceed 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. AUTHORIZATIONS OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title, such sums as may be necessary for each of the fiscal 
     years 1995 through 1999.
     --Page 898, delete lines 6 through 10.
           By Mr. CUNNINGHAM:
     --Page 729, strike line 15 and all that follows through line 
     21 on page 730.
           By Mr. DOOLITTLE:
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. SEX EDUCATION.

       ``(a) Sex Education Instruction.--All public elementary and 
     secondary schools receiving assistance under this act in 
     classes that teach sex education or discuss sexual 
     intercourse, sexually transmitted diseases (STDs), including 
     acquired immune deficiency syndrome (AIDS), shall 
     continuously stress throughout the sex education program and 
     sexual intercourse discussion that abstinence from sexual 
     intercourse is the only protection that is 100 percent 
     effective against unwanted teenage pregnancy, STDs, and AIDS 
     when transmitted sexually. All material and instruction in 
     classes that teach sex education and discuss sexual 
     intercourse shall be age appropriate.
       ``(b) Criteria.--All sex education courses that discuss 
     sexual intercourse shall satisfy the following criteria:
       ``(1) Course material and instruction shall be age 
     appropriate.
       ``(2) Course material and instruction shall stress that 
     abstinence is the only contraceptive method which is 100 
     percent effective, and that all other methods of 
     contraception carry a risk of failure in preventing unwanted 
     teenage pregnancy. Statistics based on the latest medical 
     information shall be provided to pupils citing the laboratory 
     and real-life failure and success rates of condoms and other 
     contraceptives in preventing pregnancy.
       ``(3) Course material and instruction shall stress that 
     STDs are serious possible hazards of sexual intercourse. 
     Pupils shall be provided with statistics based on the latest 
     medical information citing the laboratory and real-life 
     failure and success rates of condoms in preventing AIDS and 
     other STDs among elementary and secondary pupils.
       ``(4) Course material and instruction shall include a 
     discussion of the possible emotional and psychological 
     consequences of preadolescent and adolescent sexual 
     intercourse outside of marriage and the consequences of 
     unwanted adolescent pregnancy.
       ``(5) Course material and instruction shall stress that 
     pupils should abstain from sexual intercourse until they are 
     ready for marriage.
       ``(6) Course material and instruction shall teach honor and 
     respect for monogamous heterosexual marriage.
       ``(7) Course material and instruction shall advise pupils 
     of the laws pertaining to their financial responsibility to 
     children born in and out of wedlock.
       ``(8) Course material and instruction shall advise pupils 
     that it is unlawful for males of any age to have sexual 
     relations with females under a certain age to whom they are 
     not married.
       ``(9) Course material and instruction shall emphasize that 
     the pupil has the power to control personal behavior. Pupils 
     shall be encouraged to base their actions on reasoning, self-
     discipline, sense of responsibility, self-control, and 
     ethical considerations, such as respect for one's self and 
     others.
       ``(10) Course material and instruction shall teach pupils 
     to refrain from making unwanted physical and verbal sexual 
     advances and how to say no to unwanted sexual advances. 
     Pupils shall be taught that it is wrong to take advantage of, 
     or to exploit, another person. The material and instruction 
     shall also encourage youth to resist negative peer pressure.
           By Mr. DURBIN:
     --Page 439, strike lines 1 through 17 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 from weapons and fosters 
     individual responsibility and respect for the rights of 
     others.
       Page 762, after line 8, insert the following:

     ``SEC. 9508. NONSMOKING POLICY.

       ``(a) General Rule.--Each person who receives Federal funds 
     under this Act and provides services to elementary or 
     secondary school students pursuant to this Act shall, in 
     providing such services, establish and make a good-faith 
     effort to enforce a nonsmoking policy that, except as 
     provided in subsection (b)--
       ``(1) prohibits smoking in each indoor portion of a 
     facility used in connection with the provision of such 
     services; and
       ``(2) where appropriate, requires that signs be posted to 
     communicate the nonsmoking policy.
       ``(b) Permissible Features.--(1) The nonsmoking policy 
     described in subsection (a) may permit smoking in specially 
     designated areas of a facility if--
       ``(A) services are not normally provided directly to 
     children in the designated areas; and
       ``(B) the designated areas are ventilated separately from 
     areas of the facility in which such services are normally 
     provided directly to children to ensure that air from the 
     designated areas is directly exhausted to the outside and 
     does not recirculate or drift to other areas within the 
     facility.
       ``(2) Nothing in this subsection shall be construed to 
     require the establishment of a designated smoking area.
       ``(c) Civil Penalties.--
       ``(1) Any person subject to the requirements of this 
     section who fails to comply with such requirements shall be 
     liable to the United States for a civil penalty in an amount 
     not to exceed $1,000 for each violation, but in no case shall 
     the amount be in excess of the amount of the Federal funds 
     received by the person for the provision of elementary and 
     secondary educational services for the fiscal year in which 
     the violation occurred. Each day a violation continues shall 
     constitute a separate violation.
       ``(2) A civil penalty for a violation of this section shall 
     be assessed by the Secretary to the person by an order made 
     on the record after opportunity for a hearing in accordance 
     with section 554 of title 5, United States Code. Before 
     issuing the order, the Secretary shall--
       ``(A) give written notice to the person to be assessed a 
     civil penalty under the order of the proposal to issue the 
     order; and
       ``(B) provide the person an opportunity to request, not 
     later than 15 days after the date of receipt of the notice, a 
     hearing on the order.
       ``(3) In determining the amount of a civil penalty under 
     this subsection, the Secretary shall take into account the 
     nature, circumstances, extent, and gravity of the violation, 
     the ability of the violator to pay, any prior history of the 
     same kind of violation, the degree of culpability of the 
     violator, a demonstration by the violator of willingness to 
     comply with the requirements of this section, and such other 
     matters as justice may require.
       ``(4) The Secretary may compromise, modify, or remit, with 
     or without conditions, any civil penalty that may be imposed 
     under this subsection. The amount of the penalty as finally 
     determined or agreed upon in compromise may be deducted from 
     any sums that the United States owes to the person against 
     whom the penalty is assessed.
       ``(5) A person who has requested a hearing concerning the 
     assessment of a penalty pursuant to paragraph (2) and is 
     aggrieved by an order assessing a civil penalty may file a 
     petition for judicial review of the order with the United 
     States Court of Appeals for the District of Columbia Circuit 
     or for any other circuit in which the person resides or 
     transacts business. The petition may only be filed during the 
     30-day period beginning on the date of issuance of the order 
     making the assessment.
       ``(6) If a person fails to pay an assessment of a civil 
     penalty--
       ``(A) after the order making the assessment has become a 
     final order and without filing a petition for judicial review 
     in accordance with paragraph (5); or
       ``(B) after a court has entered a final judgment in favor 
     of the Secretary,

     the Attorney General shall recover the amount assessed (plus 
     interest at currently prevailing rates from the last day of 
     the 30-day period referred to in paragraph (5) or the date of 
     the final judgment, as the case may be) in an action brought 
     in an appropriate district court of the United States. In the 
     action, the validity, amount, and appropriateness of the 
     penalty shall not be subject to review.
       ``(d) Effective Date.--
       ``(1) In general.-- This section shall take effect on the 
     date which is 180 days after the date of enactment of the 
     Improving America's Schools Act of 1994, except as provided 
     in paragraph (2).
       ``(2) Collective bargaining agreements.--
       ``(A) In the case of a person described in subsection (a) 
     who employs individuals who are members of a labor 
     organization and provide elementary or secondary educational 
     services pursuant to a collective bargaining agreement that--
       ``(i) took effect before the date of enactment of the 
     Improving America's Schools Act of 1994, and
       ``(ii) includes provisions relating to smoking privileges 
     that are in violation of this section;
     this section shall take effect on the date that is 180 days 
     after the date of enactment of the Improving America's 
     Schools Act of 1994 or the date specified in subparagraph 
     (B), whichever is later.
       ``(B) The date specified in this subparagraph is the 
     earlier of--
       ``(i) the first expiration date (after the date of 
     enactment of the Improving America's Schools Act of 1994) of 
     the collective bargaining agreement containing the provisions 
     relating to smoking privileges, or
       ``(ii) the date that is 1 year after the date of enactment 
     of the Improving America's Schools Act of 1994.
       ``(e) Preemption.--Nothing in this section shall preempt or 
     otherwise affect any provision of law of a State or political 
     subdivision of a State that is as restrictive or more 
     restrictive than a provision of this section.
           By Mr. FARR:
     --Page 406, after line 18, insert the following:0

           ``PART J--NATIONAL CENTER FOR LANGUAGE DEVELOPMENT

     ``SEC. 3941. SHORT TITLE.

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

     ``SEC. 3942. FINDINGS.

       ``The Congress finds that--
       ``(1) at a time when international opportunities and 
     challenges are escalating, no national education effort 
     exists to develop second language capabilities in the United 
     States;
       ``(2) in the present international economic context, it is 
     critical for Americans to become skilled speakers of other 
     languages;
       ``(3) there is widespread recognition of the need for 
     skilled speakers of other languages, 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;
       ``(4) the technological and conceptual advances need to be 
     incorporated in language instruction and in the professional 
     development of language teachers;
       ``(5) 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-English 
     proficiency, because without fluency in the English language 
     these individuals remain an untapped national resource; and
       ``(6) the concentration of talent focused on research of 
     second language acquisition, language instruction, teaching 
     technology, training of language professionals, and 
     curriculum development and publications housed at the Defense 
     Language Institute (located in Monterey, California) and 
     related instructional and research organizations located in 
     the Monterey Bay region of California, provides an optimal 
     environment for the development of a nationwide effort in 
     second language training and acquisition.

     ``SEC. 3943. PURPOSE.

       ``The purpose of this part is to 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. 3944. 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 may include representation 
     from--
       ``(1) the Defense Language Institute; and
       ``(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 may--
       ``(1) assess the economic and social benefits of second 
     language capabilities for the population of the United 
     States;
       ``(2) make recommendations to the Secretary of the most 
     appropriate means of increasing widespread second language 
     capabilities in the United States; and
       ``(3) effectuate a greater second language capability 
     within the United States through activities that include: 
     developing and implementing model programs for children, 
     college students and adults, conducting research on effective 
     ways to teach second languages; developing teacher training 
     programs; and, developing teaching materials.
           By Mr. Foglietta:
     --Amend section 2343(a) on page 296, line 22 by adding the 
     following: ``The Secretary shall establish one specialized 
     center for urban education and one specialized center for 
     rural education to provide training and technical assistance 
     to local education agencies. The urban center shall provide 
     training and technical assistance to local educational 
     agencies which serve the largest central city in a State, or 
     which enroll more than 30,000 students and serve a central 
     city with a population of at least 200,000 in a metropolitan 
     statistical area.''
           By Mr. FORD of Michigan:
     --In section 101 of the bill, at the end of title VIII of the 
     Elementary and Secondary Education Act of 1965 (as proposed 
     to be added by such section 101), add the following new 
     section:

     ``SEC. 8014. LIMITATION ON BASIC SUPPORT PAYMENTS 
                   ATTRIBUTABLE TO CHILDREN CONNECTED WITH DEFENSE 
                   ACTIVITIES UNDER SECTION 8004.

     ``The Secretary shall make basic support payments 
     attributable to children connected with defense activities, 
     as described in subparagraphs (B) and (D) of section 
     8004(a)(1), to local educational agencies under such section 
     for a fiscal year only to the extent the Secretary of Defense 
     transfers to the Secretary of Education amounts for such 
     fiscal year for the purpose of making such payments.''
           By Mr. GOODLING:
     --On page 114, after line 18, add the following, ``(3) 
     However, no state may receive less under this section [for 
     fiscal years 1995 and 1996] than it received the preceding 
     year, or fiscal year 1993, whichever is greater, as a result 
     of the application of paragraph (2).''
     --On page 112, after line 21, add the following, ``(3) 
     However, no State may receive less under this section [for 
     fiscal years 1995 and 1996] than it received the preceding 
     year, or fiscal year 1993, whichever is greater, as a result 
     of application of paragraph (2).''
     --On page 112, after line 21, add the following, ``(3) 
     However, no State may receive less under this section [for 
     fiscal years 1995 and 1996] than it received the preceding 
     year, or fiscal year 1993, whichever is greater, as a result 
     of application of paragraph (2).''
     --On page 114, after line 18, add the following, ``(3) 
     However, no state may receive less under this section [for 
     fiscal years 1995 and 1996] than it received the preceding 
     year, or fiscal year 1993, whichever is greater, as a result 
     of the application of paragraph (2).''
     --Page 768, after line 21, insert the following new section:

     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 
     actual contraception or abortion services.
     --Page 901, after line 4, insert the following:
                  TITLE VI--BASIC PROGRAM ALLOCATIONS

     SEC. 601. STANDARDS AND ASSESSMENTS.

       Subsection (b) of section 1111 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:
       ``(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; and
       ``(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 (5).
       ``(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) shall measure the proficiency of students in the core 
     academic subjects in which a State has adopted challenging 
     content and performance standards and be administered some 
     time during grades 3 through 5, grades 6 through 9, 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) Each State plan shall identify the languages other 
     than English that are present in the participating student 
     population and indicate the languages for which yearly 
     student assessments are not available and are needed. The 
     State shall make every effort to develop such assessments and 
     shall notify the Secretary if linguistically- accessible 
     assessment measures are needed. Upon notification, the 
     Secretary shall assist with the identification of appropriate 
     assessment measures in the needed languages through the 
     Office of Bilingual Education and Minority Language Affairs.
       ``(5) 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).
       ``(6) 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.
       ``(7)(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 1116.

     SEC. 602. PEER REVIEW AND SECRETARIAL APPROVAL.

       Paragraph (3) of subsection (d) of section 1111 of the 
     Elementary and Secondary Education Act of 1965, as amended by 
     section 101 of this Act, is further amended to read as 
     follows:
       ``(3)(A) shall, if the Secretary determines that the State 
     plan does not meet the requirements of subsection (a), (b) or 
     (c), immediately notify the State of such determination and 
     the reasons for 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 (a), (b) 
     and (c) and a hearing; and
       ``(C) may withhold funds until determining that the plan 
     meets the requirements of this section.

     SEC. 603. NO FEDERAL CONTROL OF STANDARDS.

       Subsection(b) and (g) of section 1111 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:
       ``(g) No Federal Control of Standards.--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 for 
     eligibility to receive funds under this title.

     SEC. 604. STANDARDS AND ASSESSMENT PROVISIONS.

       Paragraph (4) of subsection (b) of section 1112 of the 
     Elementary and Secondary Education Act of 1965, as amended by 
     section 101 of this Act, is further amended to read as 
     follows:
       ``(4) a description of the strategies the local educational 
     agency will use to implement standards for all students under 
     this title;.''

     SEC. 605. LOCAL REVIEW.

       Subsection (a) of section 1116 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:
       ``(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) or section 1112(b)(2), as 
     appropriate, 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)(F); 
     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 such schools to meet the 
     State's high performance standards.

     SEC. 606. SYSTEM FOR SUPPORT.

       Subsection (a) of section 1117 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:
       ``(a) System for Support.--(1) Each State educational 
     agency shall establish a statewide system of intensive and 
     sustained support and improvement for schools receiving funds 
     under this title, including all schoolwide programs and all 
     schools in need of program improvement, in order to increase 
     the opportunity for all students in such schools to meet the 
     State's content and performance standards.
       ``(2) Funds appropriated pursuant to section 1002(6) shall 
     be used to meet the requirements of this section. In addition 
     and notwithstanding section 1002(1), a State or local 
     educational agency may use funds made available under section 
     1002(1) and other available funds to meet such requirements.

     SEC. 607. BUILDING CAPACITY FOR INVOLVEMENT.

       Paragraph (1) of subsection (f) of section 1118 of the 
     Elementary and Secondary Education Act of 1965, as amended by 
     section 101 of this Act, is further amended to read as 
     follows:
       ``(1) shall 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 a child's progress and work with educators to improve 
     the performance of their children;''.

     SEC. 608. REVIEW.

       Subsection (h) of section 1119 of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:
       ``(h) Review Professional Development Activities.--(1) The 
     State educational agency shall review the local educational 
     agency's plan to determine if such agency's professional 
     development activities--
       ``(A) are tied to challenging State student content and 
     performance standards;
       ``(B) reflect recent research on teaching and learning;
       ``(C) are of sufficient intensity and duration to have a 
     positive impact on the teacher's performance in the 
     classroom;
       ``(D) are part of the everyday activities of the school and 
     create an orientation toward continuous improvement in the 
     classroom or throughout the school;
       ``(E) include methods to teach children with special needs;
       ``(F) are developed with the extensive participation of 
     teachers; and
       (G) include gender-equitable education methods, techniques 
     and practices.''

     SEC. 609. FUND FOR THE IMPROVEMENT OF EDUCATION.

       Subparagraph (A) of paragraph (1) of subsection (b) of 
     section 3201 of the Elementary and Secondary Education Act of 
     1965, as amended by section 101 of this Act, is further 
     amended to read as follows:
       ``(A) activities that will promote systemic educational 
     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;
           By Mr. GUNDERSON:
     --Page 901, after line 4, insert the following:
       Title VI--Innovative Education Program Strategies 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

     ``SEC. 6401. 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. 6402. 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. 6403. 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. 6404. 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. 6405. 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. 6406. 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. 6407. 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. 6408. 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. 6409. 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. 6410. 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. 6411. 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. 6412. 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. 6413. 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. 6414. 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. 6415. 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. 6416. 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. 6417. 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. 6418. 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. 6419. 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.
           By Mr. HANCOCK:
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. PROHIBITION AGAINST FUNDS FOR HOMOSEXUAL 
                   SUPPORT.

       ``(a) Prohibition.--No local educational agency that 
     receives funds under this Act shall implement or carry out a 
     program or activity that has either the purpose or effect of 
     encouraging or supporting homosexuality as a positive 
     lifestyle alternative.
       ``(b) Definition.--A program or activity, for purposes of 
     this section, includes the distribution of instructional 
     materials, instruction, counseling, or other services on 
     school grounds, or referral of a pupil to an organization 
     that affirms a homosexual lifestyle.
           By Mr. HANCOCK:
     --Page 762, after line 8, insert the following:

     ``SEC. 9508. PROHIBITION AGAINST FUNDS FOR HOMOSEXUAL 
                   SUPPORT.

       ``(a) Prohibition.--No local education agency that receives 
     funds under this Act shall implement or carry out a program 
     or activity as provided by this Act that has either the 
     purpose or effect of encouraging or supporting homosexuality 
     as positive lifestyle alternative.
       ``(b) Definition.--A program or activity, for purposes of 
     this section, includes the distribution of instructional 
     materials, instruction, counseling, or other services on 
     school grounds, or referral of pupil to an organization that 
     affirms a homosexual lifestyle.
           By Mr. KILDEE:
     --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.''
     --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 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) are using any of the voluntary model State 
     opportunity to learn standards that may have been implemented 
     and whether they are useful in improving learning.''
           By Mr. MILLER of California:
     --Page 688, line 8, strike ``$40,000,000'' and insert 
     ``$100,000,000''.
     --  Page 762, beginning on line 15, strike ``policy'' and all 
     that follows through page 763, line 3, and insert the 
     following: ``policy--
       ``(1) shall require that any student who is determined to 
     have brought a gun to school in violation of such policy 
     shall be expelled from such school for a period of not less 
     than one year, except that the chief administrator of the 
     local educational agency may modify such expulsion 
     requirement for a student on a case-by-case basis; and
       ``(2) may include the provision for--
       ``(A) alternative educational placement or services for a 
     student who violates the policy and is expelled; and
       ``(B) opportunity for a hearing to address an expulsion 
     decision for violation of the policy.
           By Mr. MILLER of Florida:
     --Beginning on page 240, strike line 1 and all that follows 
     through line 4 on page 264 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 264, strike line 5 and all that follows 
     through line 4 on page 272 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 284, strike line 9 and all that follows 
     through line 5 on page 290 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 290, strike line 6 and all that follows 
     through line 7 on page 293.
     --Beginning on page 190, strike line 1 and all that follows 
     through line 13 on page 194 (and redesignate the subsequent 
     sections accordingly).
     --Beginning on page 240, strike line 2 and all that follows 
     through line 4 on page 264 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 264, strike line 5 and all that follows 
     through line 4 on page 272 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 284, strike line 9 and all that follows 
     through line 5 on page 290 (and redesignate the subsequent 
     subparts accordingly).
     --Beginning on page 290, strike line 6 and all that follows 
     through line 7 on page 293.
     --Page 350, strike line 13.
     --Beginning on page 354, strike line 1 and all that follows 
     through line 22 on page 363 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 367, strike line 1 and all that follows 
     through line 19 on page 372 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 372, strike line 20 and all that follows 
     through line 22 on page 397 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 398, strike line 1 and all that follows 
     through line 21 on page 404 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 404, strike line 22 and all that follows 
     through line 18 on page 406 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 456, strike line 5 and all that follows 
     through line 15 on page 458 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 768, strike line 22 and all that follows 
     through line 7 on page 776 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 776, strike line 8 and all that follows 
     through line 19 on page 798 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 776, strike line 10 and all that follows 
     through line 12 on page 791 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 791, strike line 13 and all that follows 
     through line 19 on page 798 (and redesignate the subsequent 
     parts accordingly).
     --Beginning on page 870, strike line 1 and all that follows 
     through line 20 on page 875 (and redesignate the subsequent 
     parts accordingly).
           By Mr. PETRI:
       Page 901, after line 4, insert the following:
                  TITLE VI--BASIC PROGRAM ALLOCATIONS

     SEC. 601. ALLOCATIONS.

       Subpart 2 of part A of title I of the Elementary and 
     Secondary Education Act of 1965, as amended by section 101 of 
     this Act, is further amended to read as follows:

                        ``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 up to 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 undersubsection (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 paragraph (3)), 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 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 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 paragraph (3), 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, until 
     adoption of its Compact of Free Association, 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 living in institutions for 
     neglected or delinquent children (other than such 
     institutions operated by the United States) 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--
       ``(i) the number of children counted under section 1123(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 1123(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 subsection (c) 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 1123(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 1123(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 1123(a)(1) 
     of this chapter for the fiscal year for which the 
     determination is being made divided by the total number of 
     children counted under section 1123(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 subsection (c) 
     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 
     1123(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 1123.
       ``(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 paragraph (3), 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 1123 and 1123A, 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 
     1124(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 1124(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 1123(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 (i) through (iii), above, 
     represents of the total population aged 5-17 years in the 
     local educational agency. Weighting factors shall be assigned 
     according to the following scale: if the percentage is 
     greater than 0 but less than or equal to 14.265, the 
     weighting factor shall be 1.00; if the percentage is greater 
     than 14.265 and less than or equal to 21.553, the weighting 
     factor shall be 1.125; if the percentage is greater than 
     21.553 and less than or equal to 29.223, the weighting factor 
     shall be 1.250; if the percentage is greater than 29.223 and 
     less than or equal to 36.538, the weighting factor shall be 
     1.375; and if the percentage is greater than 36.538, the 
     weighting factor shall be 1.500. For the Commonwealth of 
     Puerto Rico, the weighting factor shall be no greater than 
     1.125.
       ``(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 
     populationsof fewer than 20,000 persons are sufficiently 
     reliable to be used to determine final grants to such areas.
       ``(e) 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 
     section 1125 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) Hold-Harmless Amounts.--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 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 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.
       ``(c) 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.
       ``(d) 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.''.
           By Mr. QUILLEN:
     --Page 694, after line 7, insert the following:
       ``(e) School District Containing Forest Service Land and 
     Serving Certain Counties.--Beginning with fiscal year 1995, a 
     school district shall be deemed to meet the requirements of 
     subsection (a)(1)(C) if such school district meets the 
     following requirements:
       ``(1) The school district contains between 50,000 and 
     55,000 acres of land that has been acquired by the Forest 
     Service of the Department of Agriculture between 1915 and 
     1990, as demonstrated by written evidence from the Forest 
     Service satisfactory to the Secretary.
       ``(2) The school district serves a county chartered by 
     State law in 1875.
           By Mr. SISISKY:
     --At the end of the matter proposed to be inserted by the 
     amendment, add the following new section:

     ``SEC. 8014. WAIVER OF REQUIREMENT TO TRANSFER DEFENSE FUNDS 
                   TO MAKE PAYMENTS UNDER SECTION 8004.

       ``The Secretary of Defense may waive the operation of any 
     provision of law requiring the transfer to the Secretary of 
     Education of funds to make impact aid payments associated 
     with children connected with defense activities, as described 
     in section 8004, and decline to make the transfer of funds 
     otherwise required by that provision of law, if the Secretary 
     of Defense determines that such a waiver is in the national 
     security interest of the United States. In the event of such 
     a waiver, the Secretary of Education shall use other funds 
     available to the Secretary to make such payments.
     --At the end of the matter to be inserted by the amendment, 
     add the following new section:

     ``SEC. 8014. PROHIBITION ON TRANSFER OF DEFENSE FUNDS TO MAKE 
                   PAYMENTS UNDER SECTION 8004.

       ``Notwithstanding any other provision of law, amounts 
     available to the Secretary of Defense shall not be 
     transferred to the Secretary of Education to make impact aid 
     payments associated with children connected with defense 
     activities, as described in section 8004. The Secretary of 
     Education shall use other funds available to the Secretary to 
     make such payments.
     --At the end of the matter proposed to be inserted by the 
     amendment, add the following new section:

     ``SEC. 8014. PROHIBITION ON ACCEPTANCE OF DEFENSE FUNDS TO 
                   MAKE PAYMENTS UNDER SECTION 8004.

       ``Notwithstanding any other provision of law, the Secretary 
     of Education may not accept the transfer of any funds from 
     the Secretary of Defense for the purpose of making impact aid 
     payments associated with children connected with defense 
     activities, as described in section 8004. The Secretary of 
     Education shall use other funds available to the Secretary to 
     make such payments.
     --At the end of the matter proposed to be inserted by the 
     amendment, add the following new section:

     ``SEC. 8014. WAIVER OF REQUIREMENT TO TRANSFER DEFENSE FUNDS 
                   TO MAKE PAYMENTS UNDER SECTION 8004.

       ``The Secretary of Education may not accept the transfer of 
     any funds from the Secretary of Defense for the purpose of 
     making impact aid payments associated with children connected 
     with defense activities, as described in section 8004, unless 
     the Secretary of Education secures the written assurances of 
     the Secretary of Defense that such transfer is in the 
     national security interest of the United States. In the 
     absence of such a written assurance, the Secretary of 
     Education shall use other funds available to the Secretary to 
     make such payments.
     --At the end of the matter proposed to be inserted by the 
     amendment, add the following new section:

     ``SEC. 8014. CONDITION ON ACCEPTANCE OF DEFENSE FUNDS TO MAKE 
                   PAYMENTS UNDER SECTION 8004.

       ``Notwithstanding any other provision of law, the Secretary 
     of Education may not accept a transfer of funds in a fiscal 
     year from the Secretary of Defense for the purpose of making 
     impact aid payments associated with children connected with 
     defense activities, as described in section 8004, unless such 
     transfer is specifically authorized for that fiscal year in a 
     law making annual authorizations of appropriations for the 
     operation and maintenance of the Armed Forces for that fiscal 
     year. In the absence of such a specific authorization for a 
     fiscal year, the Secretary of Education shall use other funds 
     available to the Secretary to make such payments.
     --At the end of the matter proposed to be inserted by the 
     amendment, add the following new section:

     ``SEC. 8014. CONDITION ON TRANSFER OF DEFENSE FUNDS TO MAKE 
                   PAYMENTS UNDER SECTION 8004.

       ``Notwithstanding any other provision of law, the Secretary 
     of Defense may not transfer funds in a fiscal year to the 
     Secretary of Education to make impact aid payments associated 
     with children connected with defense activities, as described 
     in section 8004, unless such transfer is specifically 
     authorized for that fiscal year in a law making annual 
     authorizations of appropriations for the operation and 
     maintenance of the Armed Forces for that fiscal year. In the 
     absence of such a specific authorization for a fiscal year, 
     the Secretary of Education shall use other funds available to 
     the Secretary to make such payments.
           By Mr. WILLIAMS:
     --Page 738, line 8, strike section 9104 and insert the 
     following:
       ``Sec. 9104. For purposes of any competitive program under 
     this Act, a consortia of schools operated by the Bureau of 
     Indian Affairs, a school operated under a contract or grant 
     with the Bureau of Indian Affairs in consortia with another 
     contract or grant school or tribal or community organization, 
     or a Bureau of Indian Affairs school in consortia with an 
     Institution of Higher Education, a contract or grant school 
     and tribal or community organization shall be given the same 
     consideration as a local education agency. Such consortia 
     shall apply through the Bureau of Indian Affairs which shall 
     apply to the Department of Education on their behalf.''
           By Ms. WOOLSEY:
     --page 743, after line 20, insert the following:

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

       ``(a) Flexible Program Funds.--With 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.''.
     --On page 763, after line 3, insert the following:

                ``TITLE X--COORDINATED SERVICES PROJECTS

     ``SEC. 10001. FINDINGS AND PURPOSE.

       ``(a) Findings.--The Congress makes the following findings:
       ``(1) Growing numbers of children and youth 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 
     and youth 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 youth 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 planning or implementing a coordinated 
     services project.
       ``(b) Project Development.--The application for 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 partner ship that links public and private 
     agencies providing services to children and families; and
       ``(3) identify and 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 a 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 Sec. 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.
       ``(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.