[Congressional Record (Bound Edition), Volume 146 (2000), Part 5]
[Senate]
[Pages 7216-7260]
[From the U.S. Government Publishing Office, www.gpo.gov]



                          AMENDMENTS SUBMITTED

                                 ______
                                 

                     EDUCATIONAL OPPORTUNITIES ACT

                                 ______
                                 

               LIEBERMAN (AND OTHERS) AMENDMENT NO. 3127

  Mr. LIEBERMAN (for himself, Mr. Bayh, Ms. Landrieu, Mrs. Lincoln, Mr. 
Kohl, Mr. Graham, Mr. Robb, Mr. Breaux, Mr. Bryan, and Mrs. Feinstein) 
proposed an amendment to the bill (S. 2) to extend programs and 
activities under the Elementary and Secondary Education Act of 1965; as 
follows:

       Beginning on page 1, line 3, strike ``1.'' and all that 
     follows through line 18 on page 922, and insert the 
     following:

     1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Public 
     Education Reinvestment, Reinvention, and Responsibility Act 
     (Three R's)''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Declaration of priorities.

                      TITLE I--STUDENT PERFORMANCE

Sec. 101. Heading.
Sec. 102. Findings, policy, and purpose.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation for school improvement.

Part A--Improving Basic Programs Operated by Local Educational Agencies

Sec. 105. State plans.
Sec. 106. Local educational agency plans.
Sec. 107. Schoolwide programs.
Sec. 108. School choice.
Sec. 109. Assessment and local educational agency and school 
              improvement.
Sec. 110. State assistance for school support and improvement.
Sec. 111. Parental involvement changes.
Sec. 112. Qualifications for teachers and paraprofessionals.
Sec. 113. Professional development.
Sec. 114. Fiscal requirements.
Sec. 115. Coordination requirements.
Sec. 116. Grants for the outlying areas and the Secretary of the 
              Interior.
Sec. 117. Amounts for grants.
Sec. 118. Basic grants to local educational agencies.
Sec. 119. Concentration grants.
Sec. 120. Targeted grants.
Sec. 121. Special allocation procedures.

              Part B--Even Start Family Literacy Programs

Sec. 131. Program authorized.
Sec. 132. Applications.
Sec. 133. Research.

                Part C--Education of Migratory Children

Sec. 141. Comprehensive needs assessment and service-delivery plan; 
              authorized activities.

Part D--Prevention and Intervention Programs for Children and Youth Who 
         Are Neglected, Delinquent, or at Risk of Dropping Out

Sec. 151. State plan and State agency applications.
Sec. 152. Use of funds.

  Part E--Federal Evaluations, Demonstrations, and Transition Projects

Sec. 161. Evaluations.
Sec. 162. Demonstrations of innovative practices.

             Part F--Rural Education Development Initiative

Sec. 171. Rural education development initiative.

                       Part G--General Provisions

Sec. 181. Federal regulations.
Sec. 182. State administration.

TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
                               CLASS SIZE

Sec. 201. Teacher and principal quality, professional development, and 
              class size.

TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND 
                        ALASKA NATIVE EDUCATION

Sec. 301. Language minority students.
Sec. 302. Emergency immigrant education program.
Sec. 303. Indian, Native Hawaiian, and Alaska Native education.

                     TITLE IV--PUBLIC SCHOOL CHOICE

Sec. 401. Public school choice.
Sec. 402. Development of public school choice programs; report cards.

                          TITLE V--IMPACT AID

Sec. 501. Impact aid.

      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

Sec. 601. High performance and quality education initiatives.

                       TITLE VII--ACCOUNTABILITY

Sec. 701. Accountability.

               TITLE VIII--GENERAL PROVISIONS AND REPEALS

Sec. 801. Repeals, transfers, and redesignations regarding titles VIII 
              and XIV.
Sec. 802. Other repeals.

     SEC. 2. REFERENCES.

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

     SEC. 3. DECLARATION OF PRIORITIES.

       Congress declares that our national educational priorities 
     are to--
       (1) introduce real accountability by making public 
     elementary school and secondary school education funding 
     performance-based rather than a guaranteed source of revenue 
     for States and local educational agencies;
       (2) require State educational agencies and local 
     educational agencies to establish high student performance 
     objectives, and to provide the State educational agencies and 
     local educational agencies with flexibility in using Federal 
     resources to ensure that the performance objectives are met;
       (3) concentrate Federal funding around a small number of 
     central education goals, including compensatory education for 
     disadvantaged children and youth, teacher quality and 
     professional development, programs for limited English 
     proficient students, public school choice programs, 
     innovative educational programs, student safety, and the 
     incorporation of educational technology;
       (4) concentrate Federal education funding on impoverished 
     areas where elementary schools and secondary schools are most 
     likely to be in distress;
       (5) sanction State educational agencies and local 
     educational agencies that consistently fail to meet 
     established benchmarks; and
       (6) reward State educational agencies, local educational 
     agencies, and elementary schools and secondary schools that 
     demonstrate high performance.

                      TITLE I--STUDENT PERFORMANCE

     SEC. 101. HEADING.

       The heading for title I (20 U.S.C. 6301 et seq.) is amended 
     to read as follows:

                   ``TITLE I--STUDENT PERFORMANCE''.

     SEC. 102. FINDINGS, POLICY, AND PURPOSE.

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

     ``SEC. 1001. FINDINGS, POLICY AND PURPOSE.

       ``(a) Findings.--Congress makes the following findings:
       ``(1) Despite more than 3 decades of Federal assistance, a 
     sizable achievement gap remains between low-income and 
     middle-class students.
       ``(2) The 1994 reauthorization of the Elementary and 
     Secondary Education Act of 1965 was an important step in 
     focusing our Nation's priorities on closing the achievement 
     gap between poor and affluent students in the United States. 
     The Federal Government must continue to build on these 
     improvements made in 1994 by holding States and local 
     educational agencies accountable for student achievement.
       ``(3) States can help close this achievement gap by 
     developing challenging curriculum content and student 
     performance standards so that all elementary school and 
     secondary school students perform at an advanced level. 
     States should implement vigorous and comprehensive student 
     performance assessments, such as the National Assessment of 
     Educational Progress (NAEP) so as to measure fully the 
     progress of our Nation's students.
       ``(4) In order to ensure that no child is left behind in 
     the new economy, the Federal Government must better target 
     Federal resources on those children who are most at-risk for 
     falling behind academically.
       ``(5)(A) Title I funds have been targeted on high-poverty 
     areas, but not to the degree they should be as demonstrated 
     by the following:
       ``(B) Although 95 percent of schools with poverty levels of 
     75 percent to 100 percent receive title I funding, 20 percent 
     of schools with poverty levels of 50 to 74 percent do not 
     receive any title I funding.
       ``(C) Only 64 percent of schools with poverty levels in the 
     35 percent to 49 percent range receive title I funding.
       ``(6) Title I funding should be significantly increased and 
     more effectively targeted to ensure that all low-income 
     students have an opportunity to excel academically.

[[Page 7217]]

       ``(7) The Federal Government should provide greater 
     decisionmaking authority and flexibility to schools and 
     teachers in exchange for greater responsibility for student 
     performance. Federal, State, and local efforts should be 
     focused on raising the academic achievement of all students. 
     Our Nation's children deserve nothing less than holding 
     accountable those responsible for shaping our childrens' 
     future and our country's future.
       ``(b) Policy.--Congress declares that it is the policy of 
     the United States to ensure that all students receive a high-
     quality education by holding States, local educational 
     agencies, and elementary schools and secondary schools 
     accountable for increased student academic performance 
     results, and by facilitating improved classroom instruction.
       ``(c) Purposes.--The purposes of this title are as follows:
       ``(1) To eliminate the existing 2-tiered educational 
     system, which set lower academic expectations for 
     impoverished students than for affluent students.
       ``(2) To require all States to have challenging content and 
     student performance standards and assessment measures in 
     place.
       ``(3) To require all States to ensure adequate yearly 
     progress for all students by establishing annual, numerical 
     performance objectives.
       ``(4) To ensure that all title I students receive 
     educational instruction from a fully qualified teacher.
       ``(5) To support State and local educational agencies in 
     identifying, assisting, and correcting low-performing 
     schools.
       ``(6) To increase Federal funding for part A programs for 
     disadvantaged students in return for increased academic 
     performance of all students.
       ``(7) To target Federal funding to local educational 
     agencies serving the highest percentages of low-income 
     students.''.

     SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Local Educational Agency Grants.--For the purpose of 
     carrying out part A, other than section 1120(e), there are 
     authorized to be appropriated $12,000,000,000 for fiscal year 
     2001 and such sums as may be necessary for each of the 4 
     succeeding fiscal years.
       ``(b) Even Start.--For the purpose of carrying out part B, 
     there are authorized to be appropriated such sums as may be 
     necessary for fiscal year 2001 and each of the 4 succeeding 
     fiscal years.
       ``(c) Education of Migratory Children.--For the purpose of 
     carrying out part C, there are authorized to be appropriated 
     such sums as may be necessary for fiscal year 2001 and each 
     of the 4 succeeding fiscal years.
       ``(d) Prevention and Intervention Programs for Youth Who 
     Are Neglected, Delinquent, or At Risk of Dropping Out.--For 
     the purpose of carrying out part D, there are authorized to 
     be appropriated such sums as may be necessary for fiscal year 
     2001 and each of the 4 succeeding fiscal years.
       ``(e) Capital Expenses.--For the purpose of carrying out 
     section 1120(e), there are authorized to be appropriated 
     $12,000,000 for fiscal year 2001 and $5,000,000 for fiscal 
     year 2002.
       ``(f) Federal Activities.--For the purpose of carrying out 
     sections 1501 and 1502, there are authorized to be 
     appropriated such sums as may be necessary for fiscal year 
     2001 and each of the 4 succeeding fiscal years.''.

     SEC. 104. RESERVATION FOR SCHOOL IMPROVEMENT.

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

     ``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

       ``(a) State Reservations.--
       ``(1) In general.--Each State educational agency shall 
     reserve 2.5 percent of the amount the State educational 
     agency receives under part A for fiscal years 2001 and 2002, 
     and 3.5 percent of that amount for fiscal years 2003 through 
     2005, to carry out paragraph (2) and to carry out the State 
     educational agency's responsibilities under sections 1116 and 
     1117, including the State educational agency's statewide 
     system of technical assistance and support for local 
     educational agencies.
       ``(2) Uses.--Of the amount reserved under paragraph (1) for 
     any fiscal year, the State educational agency shall make 
     available at least 80 percent of such amount directly to 
     local educational agencies.

PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES

     SEC. 105. STATE PLANS.

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

     ``SEC. 1111. STATE PLANS.

       ``(a) Plans Required.--
       ``(1) In general.--Any State educational agency desiring a 
     grant under this part shall submit to the Secretary a plan, 
     developed in consultation with local educational agencies, 
     teachers, pupil services personnel, administrators (including 
     administrators of programs described in other parts of this 
     title), local school boards, other staff, and parents, that 
     satisfies the requirements of this section and that is 
     coordinated with other programs under this Act, the 
     Individuals with Disabilities Education Act, the Carl D. 
     Perkins Vocational and Technical Education Act of 1998, and 
     the Head Start Act.
       ``(2) Consolidated plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidated plan 
     under section 8302.
       ``(b) Standards, Assessments, and Accountability.--
       ``(1) Challenging standards.--
       ``(A) In general.--Each State plan shall demonstrate that 
     the State has adopted challenging content standards and 
     challenging student performance standards that will be used 
     by the State, and the local educational agencies, and 
     elementary schools and secondary schools, within the State to 
     carry out this part.
       ``(B) Uniformity.--The standards required by subparagraph 
     (A) shall be the same standards that the State applies to all 
     elementary schools and secondary schools within the State and 
     all children attending such schools.
       ``(C) Subjects.--The State shall have such standards for 
     elementary school and secondary school children served under 
     this part in subjects determined by the State, but including 
     at least mathematics, science, and English language arts, and 
     which shall include the same knowledge, skills, and levels of 
     performance expected of all children.
       ``(D) Standards.--Standards under this paragraph shall 
     include--
       ``(i) challenging content standards in academic subjects 
     that--

       ``(I) specify what children are expected to know and be 
     able to do;
       ``(II) contain coherent and rigorous content; and
       ``(III) encourage the teaching of advanced skills; and

       ``(ii) challenging student performance standards that--

       ``(I) are aligned with the State's content standards;
       ``(II) describe 2 levels of high performance, proficient 
     and advanced levels of performance, that determine how well 
     children are mastering the material in the State content 
     standards; and
       ``(III) describe a third level of performance, a basic 
     level of performance, to provide complete information about 
     the progress of the lower performing children toward 
     achieving to the proficient and advanced levels of 
     performance.

       ``(E) Additional subjects.--For the subjects in which 
     students will be served under this part, but for which a 
     State is not required under subparagraphs (A), (B), and (C) 
     to develop, and has not otherwise developed, challenging 
     content and student performance standards, the State plan 
     shall describe a strategy for ensuring that such students are 
     taught the same knowledge and skills and held to the same 
     expectations as are all children.
       ``(F) Special rule.--In the case of a State that allows 
     local educational agencies to adopt more rigorous standards 
     than those set by the State, local educational agencies shall 
     be allowed to implement such standards.
       ``(2) Adequate yearly progress.--
       ``(A) In general.--Each State plan shall demonstrate, based 
     on assessments described under paragraph (4), what 
     constitutes adequate yearly progress of--
       ``(i) any school served under this part toward enabling all 
     children to meet the State's challenging student performance 
     standards;
       ``(ii) any local educational agency that receives funds 
     under this part toward enabling all children in schools 
     served by the local educational agency and receiving 
     assistance under this part to meet the State's challenging 
     student performance standards; and
       ``(iii) the State in enabling all children in schools 
     receiving assistance under this part to meet the State's 
     challenging student performance standards.
       ``(B) Definition.--Adequate yearly progress shall be 
     defined by the State in a manner that--
       ``(i) applies the same high standards of academic 
     performance to all students in the State;
       ``(ii) takes into account the progress of all students in 
     the State and in each local educational agency and school 
     served under section 1114 or 1115;
       ``(iii) uses the State challenging content and challenging 
     student performance standards and assessments described in 
     paragraphs (1) and (4);
       ``(iv) compares separately, within each State, local 
     educational agency, and school, the performance and progress 
     of students, by each major ethnic and racial group, by 
     gender, by English proficiency status, and by economically 
     disadvantaged students as compared to students who are not 
     economically disadvantaged (except that such disaggregation 
     shall not be required in a case in which the number of 
     students in a category is insufficient to yield statistically 
     reliable information or the results would reveal individually 
     identifiable information about an individual student);
       ``(v) compares the proportions of students at the basic, 
     proficient, and advanced levels

[[Page 7218]]

     of performance with the proportions of students at each of 
     the 3 performance levels in the same grade in the previous 
     school year;
       ``(vi) endeavors to include other academic measures such as 
     promotion, attendance, drop-out rates, completion of college 
     preparatory courses, college admission tests taken, and 
     secondary school completion, except that failure to meet 
     another academic measure, other than student performance on 
     State assessments aligned with State standards, shall not 
     provide the sole basis for designating a district or school 
     as in need of improvement;
       ``(vii) includes annual numerical objectives for improving 
     the performance of all groups described in clause (iv) and 
     narrowing gaps in performance between these groups in, at 
     least, the areas of mathematics and English language arts; 
     and
       ``(viii) includes a timeline for ensuring that each group 
     of students described in clause (iv) meets or exceeds the 
     State's proficient level of performance on each State 
     assessment used for the purposes of this section and section 
     1116 not later than 10 years after the date of enactment of 
     the Public Education Reinvestment, Reinvention, and 
     Responsibility Act.
       ``(C) Accountability.--Each State plan shall demonstrate 
     that the State has developed and is implementing a statewide 
     accountability system that has been or will be effective in 
     ensuring that all local educational agencies, elementary 
     schools, and secondary schools are making adequate yearly 
     progress as defined in section 1111(b)(2)(B). Each State 
     accountability system shall--
       ``(i) be based on the standards and assessments adopted 
     under paragraphs (1) and (4) and take into account the 
     performance of all students required by law to be included in 
     such assessments;
       ``(ii) be the same accountability system the State uses for 
     all schools or all local educational agencies, if the State 
     has an accountability system for all schools or all local 
     educational agencies;
       ``(iii) provide for the identification of schools or local 
     educational agencies receiving funds under this part that for 
     2 consecutive years have exceeded such schools' or agencies' 
     adequate yearly progress goals so that information about the 
     practices and strategies of such schools or agencies can be 
     disseminated to other schools in the local educational agency 
     and in the State and such schools can be considered for 
     rewards provided under title VII of this Act;
       ``(iv) provide for the identification of schools and local 
     educational agencies in need of improvement, as required by 
     section 1116, and for the provision of technical assistance, 
     professional development, and other capacity-building as 
     needed, including those measures specified in sections 
     1116(d)(9) and 1117, to ensure that schools and local 
     educational agencies so identified have the resources, 
     skills, and knowledge needed to carry out their obligations 
     under sections 1114 and 1115 and to meet the requirements for 
     annual improvement described in paragraph (2); and
       ``(v) provide for the identification of schools and local 
     educational agencies for corrective action or actions as 
     required by section 1116, and for the implementation of 
     corrective actions against school and school districts when 
     such actions are required under such section.
       ``(D) Annual improvement for states.--For a State to make 
     adequate yearly progress under subparagraph (A)(iii), not 
     less than 90 percent of the local educational agencies within 
     the State shall meet the State's criteria for adequate yearly 
     progress.
       ``(E) Annual improvement for local educational agencies.--
     For a local educational agency to make adequate yearly 
     progress under subparagraph (A)(ii), not less than 90 percent 
     of the schools served by the local educational agency shall 
     meet the State's criteria for adequate yearly progress.
       ``(F) Annual improvement for schools.--For an elementary 
     school or a secondary school to make adequate yearly progress 
     under subparagraph (A)(i), not less than 90 percent of each 
     group of students described in subparagraph (B)(iv) who are 
     enrolled in such school shall take the assessments described 
     in paragraph (4)(D) and in section 612(a)(17)(A) of the 
     Individuals with Disabilities Education Act.
       ``(G) Public notice and comment.--
       ``(i) In general.--Each State shall submit information in 
     the State plan demonstrating that in developing such plan--

       ``(I) the State diligently sought public comment from a 
     range of institutions and individuals in the State with an 
     interest in improved student achievement; and
       ``(II) the State made and will continue to make a 
     substantial effort to ensure that information regarding 
     content standards, performance standards, assessments, and 
     the State accountability system is widely known and 
     understood by the public, parents, teachers, and school 
     administrators throughout the State.

       ``(ii) Efforts.--The efforts described in clause (i), at a 
     minimum, shall include annual publication of such information 
     and explanatory text to the public through such means as the 
     Internet, the media, and public agencies. Non-English 
     language shall be used to communicate with parents where 
     appropriate.
       ``(H) Review.--The Secretary shall review information from 
     each State on the adequate yearly progress of schools and 
     local educational agencies within the State required under 
     subparagraphs (A) and (B) for the purpose of determining 
     State and local compliance with section 1116.
       ``(3) State authority.--If a State educational agency 
     provides evidence that is satisfactory to the Secretary that 
     neither the State educational agency nor any other State 
     government official, agency, or entity has sufficient 
     authority under State law to adopt curriculum content and 
     student performance standards, and assessments aligned with 
     such standards, that will be applicable to all students 
     enrolled in the State's public schools, then the State 
     educational agency may meet the requirements of this 
     subsection by--
       ``(A) adopting curriculum content and student performance 
     standards and assessments that meet the requirements of this 
     subsection, on a statewide basis, and limiting the 
     applicability of such standards and assessments to students 
     served under this part; or
       ``(B) adopting and implementing policies that ensure that 
     each local educational agency within a State receiving a 
     grant under this part will adopt curriculum content and 
     student performance standards and assessments--
       ``(i) that are aligned with the standards described in 
     subparagraph (A); and
       ``(ii) that meet the criteria in this subsection and any 
     regulations regarding such standards and assessments that the 
     Secretary may publish and that are applicable to all students 
     served by each such local educational agency.
       ``(4) Assessments.--Each State plan shall demonstrate that 
     the State has implemented a set of high quality, yearly 
     student assessments that include, at a minimum, assessments 
     in mathematics, science, and English language arts, that will 
     be used, starting not later than the 2000-2001 school year as 
     the primary means of determining the yearly performance of 
     each local educational agency and school served by the State 
     under this title in enabling all children to meet the State's 
     challenging content and student performance standards. Such 
     assessments shall--
       ``(A) be the same assessments used to measure the 
     performance of all children, if the State measures the 
     performance of all children;
       ``(B) be aligned with the State's challenging content and 
     student performance standards, and provide coherent 
     information about the local educational agency's contribution 
     to the student attainment of such standards;
       ``(C) be used only for purposes for which such assessments 
     are valid and reliable, and be consistent with relevant, 
     nationally recognized professional and technical standards 
     for such assessments;
       ``(D) measure the performance of students against the 
     challenging State content and student performance standards, 
     and be administered not less than once during--
       ``(i) grades 3 through 5;
       ``(ii) grades 6 through 9; and
       ``(iii) grades 10 through 12;
       ``(E) include multiple, up-to-date measures of student 
     performance and the local educational agency's contribution 
     to student performance, including measures that assess higher 
     order thinking skills and understanding;
       ``(F) provide for--
       ``(i) the participation in such assessments of all 
     students;
       ``(ii) the reasonable adaptations and accommodations for 
     students with disabilities as defined in 602(3) of the 
     Individuals with Disabilities Education Act necessary to 
     measure the achievement of such students relative to State 
     content and student performance standards;
       ``(iii) in the case of a student with limited English 
     proficiency, the assessment of such student in the student's 
     native language if such a native language assessment is more 
     likely than an English language assessment to yield accurate 
     and reliable information on what that student knows and is 
     able to do; and
       ``(iv) notwithstanding clause (iii), the assessment (using 
     tests written in English) of English language arts of any 
     student who has attended school in the United States (not 
     including the Commonwealth of Puerto Rico) for 3 or more 
     consecutive school years, except if the local educational 
     agency determines, on a case-by-case individual basis, that 
     assessments in another language and form would likely yield 
     more accurate and reliable information on what such students 
     know and can do, the local educational agency may assess such 
     students in the appropriate language other than English for 1 
     additional consecutive year beyond the third consecutive 
     year; and
       ``(G) include students who have attended schools in a local 
     educational agency for a full academic year but have not 
     attended a single school for a full academic year, except 
     that the performance of students who have attended more than 
     1 school in the local educational agency in any academic year 
     shall be used only in determining the progress of the local 
     educational agency;

[[Page 7219]]

       ``(H) provide individual student reports to be submitted to 
     parents, including assessment scores or other information on 
     the attainment of student performance standards; and
       ``(I) enable results to be disaggregated 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.
       ``(5) Rigorous criteria.--States are encouraged to use 
     rigorous criteria assessment measures.
       ``(6) First grade literacy assessment.--In addition to 
     those assessments described in paragraph (4), each State 
     receiving funds under this part shall describe in its State 
     plan what reasonable steps it is taking to assist and 
     encourage local educational agencies--
       ``(A) to measure literacy skills of first graders in 
     schools receiving funds under this part by providing 
     assessments of first graders that are--
       ``(i) developmentally appropriate;
       ``(ii) aligned with State content and student performance 
     standards; and
       ``(iii) scientifically research-based; and
       ``(B) to assist and encourage local educational agencies 
     receiving funds under this part in identifying and taking 
     developmentally appropriate and effective interventions in 
     any school served under this part in which a substantial 
     number of first graders have not demonstrated grade-level 
     literacy proficiency by the end of the school year.
       ``(7) Language assessments.--Each State plan shall identify 
     the languages other than English and Spanish that are present 
     in the participating student populations in the State, and 
     indicate the languages for which yearly student assessments 
     are not available and are needed. The State may request 
     assistance from the Secretary if linguistically accessible 
     assessment measures are needed. Upon request, the Secretary 
     shall assist with the identification of appropriate 
     assessment measures in the needed languages, but shall not 
     mandate a specific assessment or mode of instruction.
       ``(8) Assessment development.--A State shall develop and 
     implement the State assessments, including, at a minimum, 
     mathematics and English language arts, by the 2000-2001 
     school year.
       ``(9) Requirement.--Each State plan shall describe--
       ``(A) how the State educational agency will assist each 
     local educational agency and school affected by the State 
     plan to develop the capacity to comply with each of the 
     requirements of sections 1114(b), 1115(c), and 1116 that are 
     applicable to such agency or school;
       ``(B) how the State educational agency will--
       ``(i) hold each local educational agency affected by the 
     State plan accountable for improved student performance, 
     including a procedure for--

       ``(I) identifying local educational agencies and schools in 
     need of improvement; and
       ``(II) assisting local educational agencies and schools 
     identified under subclause (I) to address achievement 
     problems, including thorough descriptions of the amounts and 
     types of professional development to be provided 
     instructional staff, the amount of any financial assistance 
     to be provided by the State under section 1003, and the 
     amount of any funds to be provided by other sources and the 
     activities to be provided by those sources; and

       ``(ii) implementing corrective action if assistance is not 
     effective;
       ``(C) how the State educational agency is providing low-
     performing students additional academic instruction, such as 
     before- and after-school programs and summer academic 
     programs;
       ``(D) such other factors the State considers appropriate to 
     provide students an opportunity to achieve the knowledge and 
     skills described in the State's challenging content 
     standards;
       ``(E) the specific steps the State educational agency will 
     take or the specific strategies the State educational agency 
     will use to ensure that--
       ``(i) all teachers in both schoolwide programs and targeted 
     assistance programs are fully qualified not later than 
     December 31, 2005; and
       ``(ii) low-income students and minority students are not 
     taught at higher rates than other students by unexperienced, 
     uncertified, or out-of-field teachers; and
       ``(F) the measures the State educational agency will use to 
     evaluate and publicly report the State's progress in 
     improving the quality of instruction in the schools served by 
     the State educational agency and local educational agencies 
     receiving funding under this Act.
       ``(c) Other Provisions To Support Teaching and Learning.--
     Each State plan shall contain assurances that--
       ``(1) the State educational agency will work with other 
     agencies, including educational service agencies or other 
     local consortia and institutions to provide technical 
     assistance to local educational agencies and elementary 
     schools and secondary schools to carry out the State 
     educational agency's responsibilities under this part, 
     including technical assistance in providing professional 
     development under section 1119(A) and technical assistance 
     under section 1117; and
       ``(2)(A) where educational service agencies exist, the 
     State educational agency will consider providing professional 
     development and technical assistance through such agencies; 
     and
       ``(B) where educational service agencies do not exist, the 
     State educational agency will consider providing professional 
     development and technical assistance through other 
     cooperative agreements, such as through a consortium of local 
     educational agencies;
       ``(3) the State educational agency will use the 
     disaggregated results of the student assessments required 
     under subsection (b)(4), and other measures or indicators 
     available to the State, to review annually the progress of 
     each local educational agency and school served under this 
     part to determine whether each such agency and school is 
     making the annual progress necessary to ensure that all 
     students will meet the proficient level of performance on the 
     assessments described in subsection (b)(4) within 10 years of 
     the date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act;
       ``(4) the State educational agency will provide the least 
     restrictive and burdensome regulations for local educational 
     agencies and individual elementary schools and secondary 
     schools participating in a program assisted under this part;
       ``(5) the State educational agency will regularly inform 
     the Secretary and the public in the State of how Federal 
     laws, if any, hinder the ability of States to hold local 
     educational agencies and schools accountable for student 
     academic performance;
       ``(6) the State educational agency will encourage 
     elementary schools and secondary schools to consolidate funds 
     from other Federal, State, and local sources for schoolwide 
     reform in schoolwide programs under section 1114;
       ``(7) the State educational agency will modify or eliminate 
     State fiscal and accounting barriers so that elementary 
     schools and secondary schools can easily consolidate funds 
     from other Federal, State, and local sources for schoolwide 
     programs under section 1114;
       ``(8) the State educational agency has involved the 
     committee of practitioners established under section 1703(b) 
     (as redesignated by section 161(2)) in developing and 
     monitoring the implementation of the State plan; and
       ``(9) the State educational agency will inform local 
     educational agencies of the local educational agency's 
     authority to obtain waivers under title VIII and, if the 
     State is an Ed-Flex Partnership State, waivers under the 
     Education Flexibility Partnership Act of 1999.
       ``(d) Peer Review and Secretarial Approval.--The Secretary 
     shall--
       ``(1) establish a peer review process to assist in the 
     review of State plans;
       ``(2) only approve a State plan meeting each of the 
     requirements of this section;
       ``(3) if the Secretary determines that the State plan does 
     not meet each of the requirements of subsection (a), (b), or 
     (c), immediately notify the State of such determination and 
     the reasons for such determination;
       ``(4) not disapprove a State plan before--
       ``(A) notifying the State educational agency in writing of 
     the specific deficiencies of the State plan;
       ``(B) offering the State an opportunity to revise the State 
     plan;
       ``(C) providing technical assistance in order to assist the 
     State to meet the requirements under subsections (a), (b), 
     and (c); and
       ``(D) providing a hearing;
       ``(5) have the authority to disapprove a State plan for not 
     meeting the requirements of this section, but shall not have 
     the authority to require a State, as a condition of approval 
     of the State plan, to include in, or delete from, such plan 1 
     or more specific elements of the challenging State content 
     standards or to use specific assessment instruments or items; 
     and
       ``(6) require a State to submit a revised State plan that 
     meets the requirements of this section to the Secretary for 
     approval not later than 1 year after the date of enactment of 
     the Public Education Reinvestment, Reinvention, and 
     Responsibility Act.
       ``(e) Duration of the Plan.--
       ``(1) In general.--Each State plan shall--
       ``(A) remain in effect for the duration of the State's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the State, as 
     necessary, to reflect changes in the State's strategies and 
     programs under this part.
       ``(2) Additional information.--If the State makes 
     significant changes in its State plan, such as the adoption 
     of new challenging State content standards and State student 
     performance standards, new assessments, or a new definition 
     of adequate yearly progress, the State shall submit such 
     information to the Secretary.
       ``(f) Limitation on Conditions.--Nothing in this part shall 
     be construed to authorize an officer or employee of the 
     Federal Government to mandate, direct, or control a State's, 
     local educational agency's, or elementary school's or 
     secondary school's specific challenging content or student 
     performance standards, assessments, curricula, or

[[Page 7220]]

     program of instruction, as a condition of eligibility to 
     receive funds under this part.
       ``(g) Penalties.--
       ``(1) In general.--If a State fails to meet the statutory 
     deadlines for demonstrating that the State has in place 
     challenging content standards and student performance 
     standards, assessments, a system for measuring and monitoring 
     adequate yearly progress, and a statewide system for holding 
     schools and local educational agencies accountable for making 
     adequate yearly progress with each group of students 
     specified in subsection (b)(2)(B)(iv), the State shall be 
     ineligible to receive any administrative funds under section 
     1703(c) that exceed the amount received by the State for such 
     purposes in the previous year.
       ``(2) Additional funds.--Based on the extent to which 
     challenging content standards and student performance 
     standards, assessments, systems for measuring and monitoring 
     adequate yearly progress, and a statewide system for holding 
     schools and local educational agencies accountable for making 
     adequate yearly progress with each group of students 
     specified in subsection (b)(2)(B)(iv), are not in place, the 
     Secretary shall withhold additional administrative funds in 
     such amount as the Secretary determines appropriate, except 
     that for each additional year that the State fails to comply 
     with such requirements, the Secretary shall withhold not less 
     than \1/5\ of the amount the State receives for 
     administrative expenses under section 1703(c).
       ``(3) Waiver.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     notwithstanding part D of title VIII, the Education 
     Flexibility Partnership Act of 1999, or any other provision 
     of law, a waiver of this section shall not be granted, except 
     that a State may request a 1-time, 1-year waiver to meet the 
     requirements of this section.
       ``(B) Exception.--A waiver granted pursuant to subparagraph 
     (A) shall not apply to the requirements described under 
     subsection (h).
       ``(h) Special Rule on Science Standards and Assessments.--
     Notwithstanding subsection (b) and part D of title IV, no 
     State shall be required to meet the requirements under this 
     title relating to science standards or assessments until the 
     beginning of the 2005-2006 school year.''.

     SEC. 106. LOCAL EDUCATIONAL AGENCY PLANS.

       (a) Subgrants.--Section 1112(a)(1) (20 U.S.C. 6312(a)(1)) 
     is amended by striking ``'' and all that follows and 
     inserting ``the Individuals with Disabilities Education Act, 
     the Carl D. Perkins Vocational and Technical Education Act of 
     1998, the Head Start Act, and other Acts, as appropriate.''.
       (b) Plan Provisions.--Section 1112(b) (20 U.S.C. 6312(b)) 
     is amended--
       (1) by striking ``Each'' and inserting ``In order to help 
     low-achieving children achieve high standards, each'';
       (2) in paragraph (1)--
       (A) by striking ``part'' each place it appears and 
     inserting ``title''; and
       (B) in subparagraph (B), by inserting ``low-achieving'' 
     before ``children'';
       (3) in paragraph (4)--
       (A) in subparagraph (A)--
       (i) by striking ``program,'' and inserting ``programs 
     and''; and
       (ii) by striking ``, and school-to-work transition 
     programs''; and
       (B) in subparagraph (B), by striking ``under part C'' and 
     all that follows through ``dropping out'' and inserting 
     ``under part C, neglected or delinquent youth,'';
       (4) in paragraph (7), by striking ``eligible'';
       (5) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (6) by adding at the end the following new paragraphs:
       ``(10) a description of the actions the local educational 
     agency will take to assist the low-performing schools served 
     by the local educational agency, including schools identified 
     under section 1116 as in need of improvement; and
       ``(11) a description of how the local educational agency 
     will promote the use of alternative instructional methods, 
     and extended learning time, such as an extended school year, 
     before- and after-school programs, and summer programs.''.
       (c) Assurances.--Section 1112(c) (20 U.S.C. 6312(c)) is 
     amended to read as follows:
       ``(c) Assurances.--
       ``(1) In general.--Each local educational agency plan shall 
     provide assurances that the local educational agency will--
       ``(A) specify the steps the local educational agency will 
     take to ensure that all teachers in both schoolwide programs 
     and targeted assistance are fully qualified not later than 
     December 31, 2005 and the strategies the local educational 
     agency will use to ensure that low-income students and 
     minority students are not taught at higher rates than other 
     children by inexperienced, uncertified, or out-of-field 
     teachers, and the measures the agency will use to evaluate 
     and publicly report progress in improving the quality of 
     instruction in schools served by the local educational agency 
     and receiving funding under this Act;
       ``(B) reserve not less than 10 percent of the funds the 
     agency receives under this part for high quality professional 
     development, as defined in section 1119, for professional 
     instruction staff;
       ``(C) provide eligible schools and parents with information 
     regarding schoolwide project authority and the ability of 
     such schools to consolidate funds from Federal, State, and 
     local sources;
       ``(D) provide technical assistance and support to 
     schoolwide programs;
       ``(E) work in consultation with schools as the schools 
     develop a school plan pursuant to section 1114(b)(2), and 
     assist schools in implementing such plans or undertaking 
     activities pursuant to section 1115(c), so that each school 
     can make adequate yearly progress toward meeting the 
     challenging State student performance standards;
       ``(F) use the disaggregated results of the student 
     assessments required under section 1111(b)(4), and other 
     measures or indicators available to the agency, to review 
     annually the progress of each school served by the agency and 
     receiving funds under this title to determine whether or not 
     all schools are making the annual progress necessary to 
     ensure that all students will meet the proficient level of 
     performance on the assessments described in section 
     1111(b)(4) within 10 years of the date of enactment of the 
     Public Education Reinvestment, Reinvention, and 
     Responsibility Act;
       ``(G) set and hold schools served by the local educational 
     agency accountable for meeting annual numerical goals for 
     improving the performance of all groups of students based on 
     the performance standards set by the State under section 
     1111(b)(1)(D)(ii);
       ``(H) fulfill the local educational agency's school 
     improvement responsibilities under section 1116, including 
     taking corrective actions under section 1116(c)(9);
       ``(I) provide the State educational agency with--
       ``(i) an annual, up-to-date, and accurate list of all 
     schools served by the local educational agency that are 
     eligible for school improvement and corrective action;
       ``(ii) the reasons why each school described in clause (i) 
     was identified for school improvement or corrective action; 
     and
       ``(iii) the specific plans for improving student 
     performance in each of the schools described in clause (i), 
     including the specific numerical achievement goals for the 
     succeeding 2 school years, for each group of students 
     specified in section 1111(b)(2)(B)(iv) enrolled in each such 
     school;
       ``(J) provide services to eligible children attending 
     private elementary schools and secondary schools in 
     accordance with section 1120, and provide timely and 
     meaningful consultation with private school officials 
     regarding such services;
       ``(K) take into account the experience of model programs 
     for the educationally disadvantaged and the findings of 
     relevant scientifically based research when developing 
     technical assistance plans for, and delivering technical 
     assistance to, schools served by the local educational agency 
     that are receiving funds under this part and are in school 
     improvement or corrective action;
       ``(L) in the case of a local educational agency that 
     chooses to use funds under this part to provide early 
     childhood development services to low-income children below 
     the age of compulsory school attendance, ensure that such 
     services comply with the performance standards established 
     under section 641A(a) of the Head Start Act;
       ``(M) comply with the requirements of section 1119 
     regarding the qualifications of teachers and 
     paraprofessionals;
       ``(N) inform eligible schools served by the local 
     educational agency of the agency's authority to obtain 
     waivers on such school's behalf under title VIII, and if the 
     State is an Ed-Flex Partnership State, under the Education 
     Flexibility Partnership Act of 1999; and
       ``(O) coordinate and collaborate, to the extent feasible 
     and necessary as determined by the local educational agency, 
     with other agencies providing services to children, youth, 
     and their families.
       ``(2) Model programs; scientifically based research.--In 
     carrying out paragraph (1)(K)--
       ``(A) the Secretary shall consult with the Secretary of 
     Health and Human Services on the implementation of such 
     subparagraph, and shall establish procedures (taking into 
     consideration existing State and local laws and local teacher 
     contracts) to assist local educational agencies to comply 
     with such subparagraph;
       ``(B) the Secretary shall disseminate to local educational 
     agencies the Head Start performance standards under section 
     641A(a) of the Head Start Act upon such standard's 
     publication; and
       ``(C) local educational agencies affected by such 
     subparagraph shall plan for the implementation of such 
     subparagraph (taking into consideration existing State and 
     local laws, and local teacher contracts), including pursuing 
     the availability of other Federal, State, and local funding 
     sources to assist in compliance with such subparagraph.
       ``(3) Inapplicability.--The provisions of this subsection 
     shall not apply to preschool programs using the Even Start 
     model or to Even Start programs.''.
       (d) Plan Development and Duration.--Section 1112(d) (20 
     U.S.C. 6312(d)) is amended to read as follows:
       ``(d) Plan Development and Duration.--

[[Page 7221]]

       ``(1) Consultation.--Each local educational agency plan 
     shall be developed in consultation with teachers, principals, 
     local school boards, administrators (including administrators 
     of programs described in other parts of this title), other 
     appropriate school personnel, and parents of children in 
     elementary schools and secondary schools served under this 
     part.
       ``(2) Duration.--Each plan described in paragraph (1) shall 
     remain in effect for the duration of the local educational 
     agency's participation under this part.
       ``(3) Review.--Each local educational agency shall 
     periodically review, and as necessary, revise its plan.''.
       (e) State Approval.--Section 1112(e) (20 U.S.C. 6312(e)) is 
     amended to read as follows:
       ``(e) Peer Review and State Approval.--
       ``(1) In general.--Each local educational agency plan shall 
     be filed according to a schedule established by the State 
     educational agency.
       ``(2) Approval.--The State educational agency shall 
     establish a peer review process to assist in the review of 
     local educational agency plans. The State educational agency 
     shall approve a local educational agency plan only if the 
     State educational agency determines that the local 
     educational agency plan--
       ``(A) will enable elementary schools and secondary schools 
     served by the local educational agency and under this part to 
     help all groups of students specified in section 1111(b)(1) 
     meet or exceed the proficient level of performance on the 
     assessments required under section 1111(b)(4) within 10 years 
     of the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act; and
       ``(B) meets each of the requirements of this section.
       ``(3) State review.--Each State educational agency shall at 
     least annually review each local agency plan approved under 
     this subsection against the results of the disaggregated 
     assessments required under section 1111(b)(4) for each local 
     educational agency to ensure that the progress of all 
     students in schools served by each local educational agency 
     under this part is adequate to ensure that all students in 
     the State will meet or exceed the proficient standard level 
     of performance on assessments within 10 years of the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act.
       ``(4) Public review.--Each State educational agency will 
     make publicly available each local educational agency 
     plan.''.
       (f) Parental Notification for English Language 
     Instruction.--Section 1112 (20 U.S.C. 6312) is amended by 
     adding at the end the following:
       ``(g) Parental Notification for English Language 
     Instruction.--
       ``(1) Notification.--If a local educational agency uses 
     funds under this part to provide English language instruction 
     to limited English proficient students, the local educational 
     agency shall inform a parent or the parents of a child 
     participating in an English language assistance educational 
     program assisted under this part of--
       ``(A) the reasons for the identification of the child as 
     being in need of English language instruction;
       ``(B) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(C) how the English language assistance educational 
     program will specifically help the child learn English and 
     meet age-appropriate standards for grade promotion and 
     graduation;
       ``(D) the specific exit requirements of the English 
     language assistance educational program;
       ``(E) the expected rate of graduation from the English 
     language assistance educational program into mainstream 
     classes; and
       ``(F) the expected rate of graduation from secondary school 
     if funds under this part are used for children in secondary 
     schools.
       ``(2) Parental rights.--
       ``(A) In general.--A parent or the parents of a child 
     participating in an English language assistance educational 
     program under this part shall--
       ``(i) have the option of selecting among methods of 
     instruction, if more than one method is offered in the 
     program; and
       ``(ii) have the right to have their child immediately 
     removed from the program upon their request.
       ``(B) Receipt of information.--A parent or the parents of a 
     child identified for participation in an English language 
     assistance educational program under this part shall receive, 
     in a manner and form understandable to the parent or parents, 
     the information required by this subsection. At a minimum, 
     the parent or parents shall receive--
       ``(i) timely information about English language assistance 
     educational programs for limited English proficient children 
     assisted under this part; and
       ``(ii) if a parent of a participating child so desires, 
     notice of opportunities for regular meetings of parents of 
     limited English proficient children participating in English 
     language assistance educational programs under this part for 
     the purpose of formulating and responding to recommendations 
     from such parents.
       ``(3) Basis for admission or exclusion.--No student shall 
     be admitted to or excluded from any federally assisted 
     education program solely on the basis of a surname or 
     language minority status.''.

     SEC. 107. SCHOOLWIDE PROGRAMS.

       (a) Use of Funds for Schoolwide Programs.--Section 1114(a) 
     (20 U.S.C. 6314(a)) is amended--
       (1) in paragraph (1), by striking ``school described in 
     subparagraph (A)'' and all that follows through ``such 
     families.'' the second place it appears and inserting 
     ``school that serves an eligible school attendance area in 
     which--
       ``(A) not less than 40 percent of the children are from 
     low-income families; or
       ``(B) not less than 40 percent of the children enrolled in 
     the school are from such families.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``subsections (c)(1) 
     and (e) of''; and
       (B) in subparagraph (B), by striking ``subsections (c)(1) 
     and (e) of''.
       (b) Components of a Schoolwide Program.--Section 1114(b) 
     (20 U.S.C. 6314(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``section 1111(b)(1)'' 
     and inserting ``section 1111(b)'';
       (B) in subparagraph (B)--
       (i) in clause (i), by striking ``section 1111(b)(1)(D)'' 
     and inserting ``1111(b)'';
       (ii) in clause (iii)(II), by inserting ``and'' after the 
     semicolon;
       (iii) in clause (iv)(II), by striking ``; and'' and 
     inserting a period; and
       (iv) by striking clause (vii); and
       (C) in subparagraph (G), by striking ``section 1112(b)(1)'' 
     and inserting ``section 1112''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A)--
       (i) by striking ``Improving America's Schools Act of 1994'' 
     and inserting ``Public Education Reinvestment, Reinvention, 
     and Responsibility Act'';
       (ii) by striking ``subsections (c)(1) and (e) of''; and
       (iii) in clause (iv), by striking ``section 1111(b)(3)'' 
     and inserting ``section 1111(b)(4)'';
       (B) in subparagraph (B), by striking ``paragraphs (1) and 
     (3) of section 1111(b)'' and inserting ``paragraphs (1) and 
     (4) of section 1111(b)''; and
       (C) in subparagraph (C)(i)--
       (i) in subclause (I), by striking ``subsections (c) and (e) 
     of''; and
       (ii) in subclause (II), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act''.

     SEC. 108. SCHOOL CHOICE.

       Section 1115A (20 U.S.C. 6316) is amended to read as 
     follows:

     ``SEC. 1115A. SCHOOL CHOICE.

       ``(a) Choice Programs.--A local educational agency may use 
     funds under this part, in combination with State, local, and 
     private funds, to develop and implement public school choice 
     programs, for children eligible for assistance under this 
     part, that permit parents to select the public school that 
     their child will attend and are consistent with State and 
     local law, policy, and practice related to public school 
     choice and local pupil transfer.
       ``(b) Choice Plan.--A local educational agency that chooses 
     to implement a public school choice program under this 
     section shall first develop a plan that--
       ``(1) contains an assurance that all eligible students 
     across grade levels served under this part will have equal 
     access to the program;
       ``(2) contains an assurance that the program does not 
     include elementary schools or secondary schools that follow a 
     racially discriminatory policy;
       ``(3) describes how elementary schools or secondary schools 
     will use resources under this part, and from other sources, 
     to implement the plan;
       ``(4) contains an assurance that the plan will be developed 
     with the involvement of parents and others in the community 
     to be served, and individuals who will carry out the plan, 
     including administrators, teachers, principals, and other 
     staff;
       ``(5) contains an assurance that parents of eligible 
     students served by the local educational agency will be given 
     prompt notice of the existence of the public school choice 
     program, the program's availability to such parents, and a 
     clear explanation of how the program will operate;
       ``(6) contains an assurance that the public school choice 
     program--
       ``(A) shall include charter schools and any other public 
     elementary school and secondary school; and
       ``(B) shall not include as a `receiving school' an 
     elementary school or a secondary school that--
       ``(i) is or has been identified as a school in, or eligible 
     for, school improvement or corrective action;
       ``(ii) has been in school improvement or corrective action 
     within the last 2 consecutive academic years; or
       ``(iii) is at risk of being eligible for school improvement 
     within the next school year;

[[Page 7222]]

       ``(7) contains an assurance that transportation services or 
     the costs of transportation to and from the public school 
     choice program--
       ``(A) may be provided by the local educational agency with 
     funds under this part and from other sources; and
       ``(B) shall not be provided from funds made available under 
     this part to the local educational agency that exceed 10 
     percent of such funds; and
       ``(8) contains an assurance that such local educational 
     agency will comply with the other requirements of this 
     part.''.

     SEC. 109. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
                   IMPROVEMENT.

       (a) Local Review.--Section 1116(a) (20 U.S.C. 6317(a)) is 
     amended--
       (1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and 
     inserting ``1111(b)(2)(B)'';
       (2) in paragraph (3)--
       (A) by striking ``individual school performance profiles'' 
     and inserting ``school report cards'';
       (B) by striking ``1111(b)(3)(I)'' and inserting 
     ``1111(b)(4)(I)''; and
       (C) by striking ``and'' after the semicolon;
       (3) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (4) by adding at the end the following:
       ``(5) review the effectiveness of the actions and 
     activities the schools are carrying out under this part with 
     respect to parental involvement assisted under this Act.''.
       (b) School Improvement.--Section 1116(c) (20 U.S.C. 
     6317(c)) is amended to read as follows:
       ``(c) School Improvement.--
       ``(1) In general.--A local educational agency shall 
     identify for school improvement any elementary school or 
     secondary school served under this part that--
       ``(A) for 2 consecutive years failed to make adequate 
     yearly progress as defined in the State's plan under section 
     1111(b)(2); or
       ``(B) was in, or was eligible for, school improvement 
     status under this section on the day preceding the date of 
     the enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act.
       ``(2) Transition.--The 2-year period described in paragraph 
     (1)(A) shall include any continuous period of time 
     immediately preceding the date of the enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act 
     during which an elementary school or a secondary school did 
     not make adequate yearly progress as defined in the State's 
     plan, as such plan was in effect on the day preceding the 
     date of enactment of the Public Education Reinvestment, 
     Reinvention and Responsibility Act.
       ``(3) Targeted assistance schools.--To determine if an 
     elementary school or a secondary school that is conducting a 
     targeted assistance program under section 1115 should be 
     identified as in need of improvement under this subsection, a 
     local educational agency may choose to review the progress of 
     only those students in such school who are served, or are 
     eligible for services, under this part.
       ``(4) Opportunity to review and present evidence.--(A) 
     Before identifying an elementary school or a secondary school 
     for school improvement under paragraph (1), the local 
     educational agency shall provide the school with an 
     opportunity to review the school level data, including 
     assessment data, on which the proposed identification is 
     based.
       ``(B) If the principal of a school proposed for 
     identification as in need of school improvement believes that 
     the proposed identification is in error for statistical or 
     other substantive reasons, the principal may provide 
     supporting evidence to the local educational agency, which 
     the agency shall consider before making a final 
     determination.
       ``(5) Time limits.--Not later than 30 days after a local 
     educational agency makes its initial determination that a 
     school served by the agency and receiving assistance under 
     this part is eligible for school improvement, the local 
     educational agency shall make public a final determination on 
     the status of the school.
       ``(6) Notification to parents.--A local educational agency 
     shall, in an easily understandable format, and in the 3 
     languages, other than English, spoken by the greatest number 
     of individuals in the area served by the local educational 
     agency, provide in writing to parents of each student in an 
     elementary school or a secondary school identified for school 
     improvement--
       ``(A) an explanation of what the school improvement 
     identification means, and how the school identified for 
     improvement compares in terms of academic performance to 
     other elementary schools or secondary schools served by the 
     local educational agency and the State educational agency;
       ``(B) the reasons for such identification;
       ``(C) the data on which such identification was based;
       ``(D) an explanation of what the school identified for 
     improvement is doing to address the problem of low 
     achievement;
       ``(E) an explanation of what the local educational agency 
     or State educational agency is doing to help the school 
     address its achievement problems, including the amounts and 
     types of professional development being provided to the 
     instructional staff in such school, the amount of any 
     financial assistance being provided by the State educational 
     agency under section 1003, and the activities that are being 
     provided with such financial assistance;
       ``(F) an explanation of how parents described in this 
     paragraph can become involved in addressing the academic 
     issues that caused the school to be identified as in need of 
     improvement; and
       ``(G) an explanation of the right of parents, pursuant to 
     paragraph (7), to transfer their child to a higher performing 
     public school, including a public charter school or magnet 
     school, that is not in school improvement, and how such 
     transfer shall operate.
       ``(7) Public school choice option.--
       ``(A) Schools in corrective action.--
       ``(i) Schools in corrective action on or before date of 
     enactment.--In the case of a school identified for corrective 
     action on or before the date of enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act, 
     a local educational agency shall not later than 18 months 
     after such date of enactment provide all students enrolled in 
     the school an option to transfer (consistent with State and 
     local law, policy, and practices related to public school 
     choice and local pupil transfer) to any other higher 
     performing public school, including a public charter or 
     magnet school, that--

       ``(I) has not been identified for school improvement or 
     corrective action;
       ``(II) is not at risk of being identified for school 
     improvement or corrective action within the succeeding 
     academic year; and
       ``(III) has not been in corrective action at any time 
     during the 2 preceding academic years.

       ``(ii) Schools identified after date of enactment.--In the 
     case of a school identified for corrective action after the 
     date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act, a local educational 
     agency shall not later than 12 months after the date on which 
     a local educational agency identifies the school for 
     corrective action provide all students enrolled in the school 
     with the transfer option described in clause (i).
       ``(B) Cooperative agreement.--If all public schools served 
     by the local educational agency to which a child may transfer 
     under clause (i) are identified for corrective action, or, if 
     public schools in the agency's jurisdiction that are not in 
     corrective action cannot accommodate all of the students who 
     are eligible to transfer because of capacity, or State or 
     local law, policy, and practices related to public school 
     choice and local pupil transfer, the local educational agency 
     shall, to the extent practicable, establish a cooperative 
     agreement with other local educational agencies that serve 
     geographic areas in proximity to the geographic area served 
     by the local educational agency, to enable a child to 
     transfer (consistent with State and local law, policy, and 
     practices related to public school choice and local pupil 
     transfer) to a school served by such other local educational 
     agencies that meets the requirements described in 
     subparagraph (A)(i).
       ``(C) Transportation.--A local educational agency that 
     serves a school that has been identified for corrective 
     action shall provide transportation services or the costs of 
     such services for children of parents who choose to transfer 
     their children pursuant to this paragraph to a different 
     school. Not more than 10 percent of the funds allocated to a 
     local educational agency under this part may be used to 
     provide such transportation services or costs of such 
     services.
       ``(D) Continuation option.--Once a school is no longer 
     identified for or in corrective action, the local educational 
     agency shall continue to provide public school choice as an 
     option to students in such schools for a period of not less 
     than 2 years.
       ``(8) School plan.--(A) Each school identified under 
     paragraph (1) for school improvement shall, after being so 
     identified, develop or revise a school plan, in consultation 
     with parents, school staff, the local educational agency 
     serving the school, the local school board, and other outside 
     experts, for approval by such local educational agency. The 
     school plan shall--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic programs in the school and 
     address the specific academic issues that caused the school 
     to be identified for school improvement;
       ``(ii) adopt policies and practices in the school's core 
     academic program that have the greatest likelihood of 
     ensuring that all groups of students specified in section 
     1111(b)(2)(B)(iv) enrolled in the school will meet or exceed 
     the State's proficient level of performance on the assessment 
     required in section 1111(b)(4) within 10 years of the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act;
       ``(iii) assure that the school will reserve not less than 
     10 percent of the funds made available to it under this part 
     for each fiscal year that the school is in school improvement 
     for the purpose of providing the school's teachers and 
     principal high quality professional development that--
       ``(I) directly addresses the academic achievement problem 
     that caused the school to be identified for school 
     improvement; and

[[Page 7223]]

       ``(II) meets the requirements for professional development 
     activities under section 1119;
       ``(iv) specify how the funds described in clause (iii) will 
     be used to remove the school from school improvement status;
       ``(v) establish specific annual, numerical progress goals 
     for each group of students specified in section 
     1111(b)(2)(B)(iv) enrolled in the school that will ensure 
     that all such groups of students meet or exceed the State's 
     proficient standard level of performance within 10 years of 
     the date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act;
       ``(vi) identify how the school will provide written 
     notification to parents of each child enrolled in such 
     school, in a format and, to the extent practicable, in a 
     language such parents can understand; and
       ``(vii) specify the responsibilities of the school, the 
     local educational agency, and the State educational agency 
     serving such school under the plan.
       ``(B) The local educational agency described in 
     subparagraph (A)(vi) may condition approval of a school plan 
     on inclusion of 1 or more of the corrective actions specified 
     in paragraph (10)(C).
       ``(C) A school shall implement the school plan or revised 
     plan expeditiously, but not later than the beginning of the 
     school year following the school year in which the school was 
     identified for improvement.
       ``(D) The local educational agency described in 
     subparagraph (A)(vi) shall establish a peer review process to 
     assist with review of a school improvement plan prepared by 
     the school served by the local educational agency, promptly 
     review the school plan, work with the school as necessary, 
     and approve the school plan if the school plan meets the 
     requirements of this paragraph.
       ``(9) Technical assistance.--(A) For each school identified 
     for school improvement under paragraph (1), the local 
     educational agency serving the school shall provide technical 
     assistance as the school develops and implements its school 
     plan.
       ``(B) Such technical assistance--
       ``(i) shall include assistance in analyzing data from the 
     assessments required under section 1111(b)(4), and other 
     samples of student work, to identify and address 
     instructional problems and solutions;
       ``(ii) shall include assistance in identifying and 
     implementing scientifically based instructional strategies 
     and methods that have proven effective in addressing the 
     specific instructional issues that caused the school to be 
     identified for school improvement;
       ``(iii) shall include assistance in analyzing and revising 
     the school's budget such that the school resources are more 
     effectively focused on those activities most likely to 
     increase student achievement and to remove the school from 
     school improvement status;
       ``(iv) may be provided directly by the local educational 
     agency, through mechanisms authorized under section 1117, or 
     with the local educational agency's approval, by the State 
     educational agency, an institution of higher education in 
     full compliance with all the reporting provisions of title II 
     of the Higher Education Act of 1965, a private not-for-profit 
     organization or for-profit organization, an educational 
     service agency, the recipient of a Federal contract or 
     cooperative agreement as described under section 7005, or 
     other entity with experience in helping schools improve 
     achievement.
       ``(C) Technical assistance provided under this section by a 
     local educational agency or an entity authorized by such 
     agency shall be based upon scientifically based research.
       ``(10) Corrective action.--In order to help students served 
     under this part meet challenging State standards, each local 
     educational agency shall implement a system of corrective 
     action in accordance with the following:
       ``(A) After providing technical assistance under paragraph 
     (9) and subject to subparagraph (F), the local educational 
     agency--
       ``(i) may take corrective action at any time with respect 
     to a school served by the local educational agency that has 
     been identified under paragraph (1);
       ``(ii) shall take corrective action with respect to any 
     school served by the local educational agency that fails to 
     make adequate yearly progress, as defined by the State under 
     section 1111(b)(2)(B), after the end of the second year 
     following the school year in which the school was identified 
     under paragraph (1); and
       ``(iii) shall continue to provide technical assistance 
     while instituting any corrective action under clause (i) or 
     (ii).
       ``(B) As used in this paragraph, the term `corrective 
     action' means action, consistent with State and local law, 
     that--
       ``(i) substantially and directly responds to--

       ``(I) the consistent academic failure of a school that 
     caused the local educational agency to take such action; and
       ``(II) any underlying staffing, curricula, or other problem 
     in the school; and

       ``(ii) is designed to increase substantially the likelihood 
     that students enrolled in the school subject to corrective 
     action will perform at the proficient and advanced 
     performance levels.
       ``(C) In the case of a school described in subparagraph 
     (A)(ii), the local educational agency shall take not less 
     than 1 of the following corrective actions:
       ``(i) Withhold funds from the school.
       ``(ii) Make alternative governance arrangements, including 
     reopening the school as a public charter school.
       ``(iii) Reconstitute the relevant school staff.
       ``(iv)(I) Authorize students to transfer to other higher 
     performing public schools served by the local educational 
     agency, including public charter and magnet schools.
       ``(II) Provide such students transportation services, or 
     the costs of transportation, to such schools (except that 
     such funds used to provide transportation services or costs 
     of transportation shall not exceed 10 percent of the amount 
     authorized under section 1122(a)(2)).
       ``(III) Take not less than 1 additional action described 
     under this subparagraph.
       ``(v) Institute and fully implement a new curriculum, 
     including appropriate professional development for all 
     relevant staff, that is based upon scientifically based 
     research and offers substantial promise of improving 
     educational achievement for low-performing students.
       ``(D) A local educational agency may delay, for a period 
     not to exceed 1 year, implementation of corrective action 
     only if the failure to make adequate yearly progress was 
     justified due to exceptional or uncontrollable circumstances, 
     such as a natural disaster or a precipitous and unforeseen 
     decline in the financial resources of the local educational 
     agency or school.
       ``(E) The local educational agency shall publish and 
     disseminate to the public and to the parents of each student 
     enrolled in a school subject to corrective action, in a 
     format and, to the extent practicable, in a language that the 
     parents can understand, information regarding any corrective 
     action the local educational agency takes under this 
     paragraph through such means as the Internet, the media, and 
     public agencies.
       ``(F)(i) Before taking corrective action with respect to 
     any school under this paragraph, a local educational agency 
     shall provide the school an opportunity to review the school 
     level data, including assessment data, on which the proposed 
     determination is made.
       ``(ii) If the school believes that the proposed 
     determination is in error for statistical or other 
     substantive reasons, the school principal may provide 
     supporting evidence to the local educational agency, which 
     shall consider such evidence before making a final 
     determination.
       ``(G) Time limits.--Not later than 30 days after the local 
     educational agency makes its initial determination that a 
     school served by the local educational agency and receiving 
     assistance under this part is eligible for corrective action, 
     the local educational agency shall make a final and public 
     determination on the status of the school.
       ``(11) State educational agency responsibilities.--If a 
     State educational agency determines that a local educational 
     agency failed to carry out its responsibilities under this 
     section, or determines that, after 1 year of implementation 
     of the corrective action, such action has not resulted in 
     sufficient progress in increased student performance, the 
     State educational agency shall take such action as the agency 
     finds necessary, including designating a course of corrective 
     action described in paragraph (10)(C), consistent with this 
     section, to improve the affected schools and to ensure that 
     the local educational agency carries out the local 
     educational agency's responsibilities under this section.
       ``(12) Special rules.--Schools that, for at least 2 of the 
     3 years following identification under paragraph (1), make 
     adequate yearly progress toward meeting the State's 
     proficient and advanced levels of performance shall no longer 
     be identified for school improvement.''.
       (c) State Review and Local Educational Agency 
     Improvement.--Section 1116(d) (20 U.S.C. 6317(d)) is amended 
     to read as follows:
       ``(d) State Review and Local Educational Agency 
     Improvement.--
       ``(1) In general.--A State educational agency shall 
     annually review the progress of each local educational agency 
     within the State receiving funds under this part to determine 
     whether schools served by such agencies and receiving 
     assistance under this part are making adequate yearly 
     progress, as defined in section 1111(b)(2), toward meeting 
     the State's student performance standards and to determine 
     whether each local educational agency is carrying out its 
     responsibilities under sections 1116 and 1117.
       ``(2) Identification of local educational agency for 
     improvement.--A State educational agency shall identify for 
     improvement any local educational agency that--
       ``(A) for 2 consecutive years fails to make adequate yearly 
     progress as defined in the State's plan under section 
     1111(b)(2); or
       ``(B) had been identified for, or was eligible for, 
     improvement under this section as this section was in effect 
     on the day preceding the date of enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act.
       ``(3) Transition.--The 2-year period described in paragraph 
     (2)(A) shall include any continuous period of time 
     immediately preceding the date of the enactment of the Public 
     Education Reinvestment, Reinvention,

[[Page 7224]]

     and Responsibility Act during which a local educational 
     agency did not make adequate yearly progress as defined in 
     the State's plan, as such plan was in effect on the day 
     preceding the date of the enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act.
       ``(4) Targeted assistance schools.--For purposes of 
     targeted assistance schools within a local educational 
     agency, a State educational agency may choose to review the 
     progress of only the students in such schools who are served 
     under this part.
       ``(5) Opportunity to review and present evidence.--(A) 
     Before identifying a local educational agency for improvement 
     under paragraph (2), a State educational agency shall provide 
     the local educational agency with an opportunity to review 
     the local educational agency data, including assessment data, 
     on which the proposed identification is based.
       ``(B) If the local educational agency believes that the 
     proposed identification is in error for statistical or other 
     substantive reasons, the local educational agency may provide 
     supporting evidence to the State educational agency, which 
     the State educational agency shall consider before making a 
     final determination.
       ``(6) Time limits.--Not later than 45 days after the State 
     educational agency makes its initial determination that a 
     local educational agency within the State and receiving 
     assistance under this part is eligible for improvement, the 
     State educational agency shall make public a final 
     determination on the status of the local educational agency.
       ``(7) Notification to parents.--The State educational 
     agency shall promptly notify parents of each student enrolled 
     in a school served by a local educational agency identified 
     for improvement, in a format, and to the extent practicable, 
     in a language the parents can understand, of the reasons for 
     such agency's identification and how parents can participate 
     in upgrading the quality of the local educational agency.
       ``(8) Local educational agency revisions.--
       ``(A) In general.--Each local educational agency identified 
     under paragraph (2) shall, after being so identified, develop 
     or revise a local educational agency plan, in consultation 
     with the local school board, parents, teachers, school staff, 
     and others, for approval by the State educational agency. 
     Such plan shall--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic program in the local 
     educational agency;
       ``(ii) identify specific annual numerical academic 
     achievement objectives in at least the areas of mathematics 
     and English language arts that the local educational agency 
     will meet, with such objectives being calculated in a manner 
     such that their achievement will ensure that each group of 
     students enrolled in each school served by the local 
     educational agency will meet or exceed the proficient 
     standard level of performance in assessments required under 
     section 1111(b)(4) within 10 years of the date of enactment 
     of the Public Education Reinvestment, Reinvention, and 
     Responsibility Act; and
       ``(iii) assure that the local educational agency will--

       ``(I) reserve not less than 10 percent of the funds made 
     available to the local educational agency under this part for 
     each fiscal year that the agency is in improvement for the 
     purpose of providing high quality professional development to 
     teachers and principals at schools served by the agency and 
     receiving funds under this part that directly address the 
     academic achievement problem that caused the local 
     educational agency to be identified for improvement and shall 
     be in keeping with the definition of professional development 
     provided in section 1119; and
       ``(II) the improvement plan shall specify how these funds 
     will be used to remove the local educational agency from 
     improvement status;

       ``(iv) identify how the local educational agency will 
     provide written notification to parents described in 
     paragraph (7) in a format, and to the extent practicable in a 
     language, that the parents can understand, pursuant to 
     paragraph (7);
       ``(v) specify the responsibilities of the State educational 
     agency and the local educational agency under the plan; and
       ``(vi) include a review of the local educational agency 
     budget to ensure that resources are focused on those 
     activities that are most likely to improve student 
     achievement and to remove the agency from improvement status.
       ``(B) Peer review.--The State educational agency shall 
     establish a peer review process to assist with the review of 
     the local educational agency improvement plan, promptly 
     review the plan, work with the local educational agency as 
     necessary, and approve the plan if the plan meets the 
     requirements of this paragraph.
       ``(C) Deadline for implementation.--The local educational 
     agency shall implement the local educational agency plan or 
     revised plan expeditiously, but not later than the beginning 
     of the school year following the school year in which the 
     agency was identified for improvement.
       ``(D) Resources reallocation.--If the local educational 
     agency budget fails to allocate resources, consistent with, 
     subparagraph (A)(iv), the State educational agency may direct 
     the local educational agency to reallocate resources to more 
     effective activities.
       ``(9) State educational agency responsibility.--For each 
     local educational agency identified under paragraph (2), the 
     State educational agency shall provide technical or other 
     assistance, if requested, as authorized under section 1117, 
     to better enable the local educational agency--
       ``(A) to develop and implement the local educational agency 
     plan or revised plan as approved by the State educational 
     agency consistent with the requirements of this section; and
       ``(B) to work with schools served by the local educational 
     agency that are identified for improvement.
       ``(10) Technical assistance.--Technical assistance provided 
     by the State educational agency--
       ``(A) shall include assistance in analyzing data from the 
     assessments required under section 1111(b)(4) to identify and 
     address instructional problems and solutions;
       ``(B) shall include assistance in identifying and 
     implementing scientifically based instructional strategies 
     and methods that have proven effective in addressing the 
     specific instructional issues that caused the local 
     educational agency to be identified for improvement;
       ``(C) shall include assistance in analyzing and revising 
     the local educational agency's budget such that the agency's 
     resources are more effectively focused on those activities 
     most likely to increase student achievement and to remove the 
     agency from improvement status; and
       ``(D) may be provided by--
       ``(i) the State educational agency; or
       ``(ii) with the local educational agency's approval, by an 
     institution of higher education (in full compliance with all 
     the reporting provisions of title II of the Higher Education 
     Act of 1965), a private not-for-profit or for-profit 
     organization, an educational service agency, the recipient of 
     a Federal contract or cooperative agreement as described 
     under section 7005, or any other entity with experience in 
     helping schools improve achievement.
       ``(11) Resources reallocation.--The State educational 
     agency may, as a condition of providing the local educational 
     agency with technical assistance and financial support in 
     developing and carrying out an improvement plan, require that 
     the local educational agency reallocate resources away from 
     ineffective or inefficient activities to activities that, 
     through scientific research, have proven to have the greatest 
     impact on increasing student achievement and closing the 
     achievement gap between groups of students.
       ``(12) Corrective action.--In order to help students served 
     under this part meet challenging State standards, each State 
     educational agency shall implement a system of corrective 
     action in accordance with the following:
       ``(A) After providing technical assistance under paragraph 
     (10), and subject to subparagraph (D), the State educational 
     agency--
       ``(i) shall take corrective action with respect to any 
     local educational agency that fails to make adequate yearly 
     progress, as defined by the State, after the end of the 
     second year following its identification under paragraph (2); 
     and
       ``(ii) shall continue to provide technical assistance while 
     instituting any corrective action under clause (i) or (ii).
       ``(B) As used in this paragraph, the term `corrective 
     action' means action, consistent with State law, that--
       ``(i) substantially and directly responds to--

       ``(I) the consistent academic failure of schools served by 
     a local educational agency that caused the State educational 
     agency to take such action with respect to the local 
     educational agency; and
       ``(II) any underlying staffing, curricular, or other 
     problem in the schools served by the local educational 
     agency; and

       ``(ii) is designed to meet the goal of having all students 
     served under this part perform at the proficient and advanced 
     performance levels.
       ``(C) In the case of a local educational agency described 
     in subparagraph (A)(ii), the State educational agency shall 
     take not less than 1 of the following corrective actions:
       ``(i) Withhold funds from the local educational agency.
       ``(ii) Reconstitute the relevant local educational agency 
     personnel.
       ``(iii) Remove particular schools from the area served by 
     the local educational agency, and establish alternative 
     arrangements for public governance and supervision of such 
     schools.
       ``(iv) Appoint, through the State educational agency, a 
     receiver or trustee to administer the affairs of the local 
     educational agency in place of the local educational agency's 
     superintendent and school board.
       ``(v) Abolish or restructure the local educational agency.
       ``(vi)(I) Authorize students to transfer from a school 
     operated by the local educational agency to a higher 
     performing public school, including a public charter or 
     magnet school,

[[Page 7225]]

     operated by another local educational agency.
       ``(II) Provide students described in subclause (I) 
     transportation services, or the costs of transportation, not 
     to exceed 10 percent of the funds allocated to a local 
     educational agency under this part, to such higher performing 
     schools or public charter schools.
       ``(III) Take not less than 1 additional action described 
     under this subparagraph.
       ``(D) Prior to implementing any corrective action, the 
     State educational agency shall provide notice and a 
     opportunity for a hearing to the affected local educational 
     agency, if State law provides for such notice and 
     opportunity.
       ``(E) Not later than 45 days after the State educational 
     agency makes its initial determination that a local 
     educational agency in the State and receiving assistance 
     under this part is eligible for improvement, the State 
     educational agency shall make public a final determination on 
     the status of the local educational agency.
       ``(F) The State educational agency shall publish and 
     disseminate to parents described in paragraph (7) and the 
     public information regarding any corrective action the State 
     educational agency takes under this paragraph through such 
     means as the Internet, the media, and public agencies.
       ``(G) The State educational agency may delay, for a period 
     not to exceed 1 year, implementation of corrective action if 
     the local educational agency's failure to make adequate 
     yearly progress was justified due to exceptional or 
     uncontrollable circumstances, such as a natural disaster or a 
     precipitous and unforeseen decline in the financial resources 
     of the local educational agency or schools served by the 
     local educational agency.''.

     SEC. 110. STATE ASSISTANCE FOR SCHOOL SUPPORT AND 
                   IMPROVEMENT.

       Section 1117 (20 U.S.C. 6318) is amended to read as 
     follows:

     ``SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND 
                   IMPROVEMENT.

       ``(a) System for Support.--Using funds allocated under 
     section 1003(a)(1), each State educational agency shall 
     establish a statewide system of intensive and sustained 
     support and improvement for local educational agencies, 
     elementary schools, and secondary schools receiving funds 
     under this part, in order to ensure that all groups of 
     students specified in section 1111 and attending such schools 
     meet or exceed the proficient standard level performance on 
     the assessments required by section 1111(b)(4) within 10 
     years of the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act.
       ``(b) Priorities.--In carrying out this section, a State 
     educational agency shall--
       ``(1) first, provide support and assistance to local 
     educational agencies and schools identified as in need of 
     improvement under section 1116;
       ``(2) second, provide support and assistance to local 
     educational agencies subject to corrective action under 
     section 1116, and assist elementary schools and secondary 
     schools, in accordance with section 1116(c)(11), for which a 
     local educational agency has failed to carry out its 
     responsibilities under section 1116(c) (9) and (10); and
       ``(3) third, provide support and assistance to local 
     educational agencies and schools that are at risk of being 
     identified as being in need of improvement within the next 
     academic year, participating under this part.
       ``(c) Approaches.--In order to achieve the purpose 
     described in subsection (a), each statewide system shall 
     provide technical assistance and support through approaches 
     such as--
       ``(1) school support teams, composed of individuals who are 
     knowledgeable about scientifically based research, teaching 
     and learning practices, and particularly about strategies for 
     improving educational results for low-achieving children; and
       ``(2) designating and using Distinguished Educators, who 
     are chosen from schools served under this part that have been 
     especially successful in improving academic achievement.
       ``(d) Funds.--Each State educational agency--
       ``(1) shall use funds reserved under section 1003(a)(1), 
     but not used under section 1003(a)(2), to carry out this 
     section; and
       ``(2) may use State administrative funds authorized under 
     section 1703(c) to carry out this section.
       ``(e) Alternatives.--The State educational agency may--
       ``(1) devise additional approaches to providing the 
     technical assistance and support described in subsection (c), 
     such as providing assistance through institutions of higher 
     education, educational service agencies, or other local 
     consortia; and
       ``(2) seek approval from the Secretary to use funds under 
     section 1003(a)(2) for such approaches as part of the State 
     plan.''.

     SEC. 111. PARENTAL INVOLVEMENT CHANGES.

       (a) Local Educational Agency Policy.--Section 1118(a) (20 
     U.S.C. 6319(a)) is amended--
       (1) in paragraph (1), by striking ``programs, activities, 
     and procedures'' and inserting ``activities and procedures'';
       (2) in paragraph (2), by striking subparagraphs (E) and (F) 
     and inserting the following:
       ``(E) conduct, with the involvement of parents, an annual 
     evaluation of the content and effectiveness of the parental 
     involvement policy in improving the academic quality of the 
     schools served under this part;
       ``(F) involve parents in the activities of the schools 
     served under this part; and
       ``(G) promote consumer friendly environments within the 
     local educational agency and schools served under this 
     part.'';
       (3) in paragraph (3), by adding at the end the following 
     new subparagraph:
       ``(C) Not less than 90 percent of the funds reserved under 
     subparagraph (A) shall be distributed to schools served under 
     this part.''.
       (b) Notice.--Section 1118(b)(1) (20 U.S.C. 6319(b)(1)) is 
     amended by inserting after the first sentence ``Parents shall 
     be notified of the policy in a format, and to the extent 
     practicable in a language, that the parents can 
     understand.''.
       (c) Parental Involvement.--Section 1118(c)(4) (20 U.S.C. 
     6319(c)(4)) is amended--
       (1) in subparagraph (B), by striking ``school performance 
     profiles required under section 1116(a)(3)'' and inserting 
     ``school reports described under section 4401'';
       (2) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (F) and (G), respectively;
       (3) by inserting after subparagraph (C) the following:
       ``(D) notice of the school's designation as a school in 
     need of improvement under section 1116(b), if applicable, and 
     a clear explanation of what such designation means;
       ``(E) notice of corrective action taken against the school 
     under section 1116(c)(9) and 1116(d)(12), if applicable, and 
     a clear explanation of what such action means;''; and
       (4) in subparagraph (G) (as redesignated by paragraph (2)), 
     by striking ``subparagraph (D)'' and inserting ``subparagraph 
     (F)''.
       (d) Building Capacity for Involvement.--Section 1118(e) (20 
     U.S.C 6319(e)) is amended--
       (1) in paragraph (1), by striking ``National Educational 
     Goals,'';
       (2) by redesignating paragraphs (14) and (15) as paragraphs 
     (16) and (17), respectively;
       (3) by inserting after paragraph (13) the following:
       ``(14) may establish a district wide parent advisory 
     council to advise on all matters related to parental 
     involvement in programs supported under this part;''; and
       (4) by redesignating paragraph (5) as paragraph (15) and 
     transferring such paragraph to follow paragraph 14 (as 
     redesignated by paragraph (3));
       (5) by inserting after paragraph (4) the following:
       ``(5) shall expand the use of electronic communications 
     among teachers, students, and parents, such as through the 
     use of websites and e-mail communications;'';
       (6) in paragraph (8), by inserting ``, to the extent 
     practicable, in a language and format the parent can 
     understand'' before the semicolon; and
       (7) in paragraph (15) (as redesignated by paragraph (4)), 
     by striking ``shall'' and inserting ``may''.
       (e) Accessibility.--Section 1118(f) (20 U.S.C. 6319(f)) is 
     amended by striking ``, including'' and all that follows 
     through the period and inserting ``and of parents of 
     migratory children, including providing information and 
     school reports required under section 1111 and described in 
     section 4401 in a language and form such parents 
     understand.''.

     SEC. 112. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

       Title I of the Act (20 U.S.C. 6301 et seq.) is amended--
       (1) by redesignating section 1119 (20 U.S.C. 6320) as 
     section 1119A; and
       (2) by inserting after section 1118 the following:

     ``SEC. 1119. QUALIFICATIONS FOR TEACHERS AND 
                   PARAPROFESSIONALS.

       ``(a) In General.--
       ``(1) Plan.--Each State educational agency receiving 
     assistance under this part shall develop and submit to the 
     Secretary a plan to ensure that all teachers teaching within 
     the State are fully qualified, as defined in section 2001(1), 
     not later than December 31, 2005. Such plan shall include an 
     assurance that the State educational agency will require each 
     local educational agency and school receiving funds under 
     this part publicly to report the annual progress with respect 
     to the local educational agency's and school's performance in 
     increasing the percentage of classes in core academic areas 
     taught by fully qualified teachers.
       ``(2) Special rule.--Notwithstanding any other provision of 
     law, the provisions of this section governing teacher 
     qualifications shall not supersede State laws governing 
     public charter schools.
       ``(b) New Paraprofessionals.--Each local educational agency 
     receiving assistance under this part shall ensure that each 
     paraprofessional hired after December 31, 2002, and working 
     in a program assisted under this part--
       ``(1) has completed at least the number of courses at an 
     institution of higher education in the area of elementary 
     education, or in the related subject area in which the 
     paraprofessional is working, for a minor degree at such 
     institution;

[[Page 7226]]

       ``(2) has obtained an associate's (or higher) degree; or
       ``(3) has met a rigorous standard of quality that 
     demonstrates, through formal State certification (as 
     established in subsection (h)),--
       ``(A) knowledge of, and the ability to provide tutorial 
     assistance in, reading, writing, and mathematics; or
       ``(B) knowledge of, and the ability to provide tutorial 
     assistance in, reading readiness, writing readiness, and 
     mathematics readiness, as appropriate.
       ``(c) Existing Paraprofessionals.--Each local educational 
     agency receiving assistance under this part shall ensure that 
     each paraprofessional working in a program assisted under 
     this part shall, not later than 4 years after the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act, satisfy the requirements of 
     subsection (b).
       ``(d) Exceptions for Translation and Parental Involvement 
     Activities.--Subsections (b) and (c) shall not apply to a 
     paraprofessional--
       ``(1) who is proficient in English and a language other 
     than English, and who provides services primarily to enhance 
     the participation of children in programs under this part by 
     acting as a translator; or
       ``(2) whose duties consist solely of conducting parental 
     involvement activities consistent with section 1118 or other 
     school readiness activities that are noninstructional.
       ``(e) General Requirement for All Paraprofessionals.--Each 
     local educational agency receiving assistance under this part 
     shall ensure that each paraprofessional working in a program 
     assisted under this part, regardless of the 
     paraprofessional's hiring date, possesses a secondary school 
     diploma or its recognized equivalent.
       ``(f) Duties of Paraprofessionals.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that a 
     paraprofessional working in a program assisted under this 
     part is not assigned a duty inconsistent with this 
     subsection.
       ``(2) Authorized responsibilities.--A paraprofessional 
     described in paragraph (1) may be assigned--
       ``(A) to provide 1-on-1 tutoring for eligible students 
     under this part, if the tutoring is scheduled at a time when 
     the student would not otherwise receive instruction from a 
     teacher;
       ``(B) to assist with classroom management, such as 
     organizing instructional and other materials;
       ``(C) to provide assistance in a computer laboratory;
       ``(D) to conduct parental involvement activities or school 
     readiness activities that are noninstructional;
       ``(E) to provide support in a library or media center;
       ``(F) to act as a translator; or
       ``(G) to provide assistance with extra curricular 
     activities which are noninstructional.
       ``(3) Limitations.--A paraprofessional described in 
     paragraph (1)--
       ``(A) shall not perform the duties of a certified teacher 
     or a substitute; and
       ``(B) shall not perform any duty assigned under paragraph 
     (2) unless under the direct supervision of a fully qualified 
     teacher or other appropriate professional.
       ``(g) Uses of Funds.--
       ``(1) Professional development.--Notwithstanding subsection 
     (h)(2), a local educational agency receiving funds under this 
     part may use such funds to support ongoing training and 
     professional development to assist teachers and 
     paraprofessionals in satisfying the requirements of this 
     section.
       ``(2) Limitation on use of funds for paraprofessionals.--
       ``(A) In general.--Beginning on the date of enactment of 
     the Public Education Reinvestment, Reinvention, and 
     Responsibility Act, a local educational agency may not use 
     funds received under this part to fund any paraprofessional 
     hired after such date unless--
       ``(i) the hiring is to fill a vacancy created by the 
     departure of another paraprofessional funded under this part; 
     or
       ``(ii) the local educational agency can demonstrate that a 
     significant influx of population has substantially increased 
     student enrollment, or demonstrate an increased need for 
     translators or assistance with parent involvement activities.
       ``(B) Exception.--Subparagraph (A) shall not apply to a 
     local educational agency that can demonstrate to the State 
     that all core classes taught in the schools served by the 
     local educational agency are taught by fully qualified 
     teachers.
       ``(h) State Certification.--Each State educational agency 
     receiving assistance under this part shall--
       ``(1) ensure that the State educational agency has in place 
     State criteria for the certification of paraprofessionals by 
     December 31, 2002; and
       ``(2) ensure that paraprofessionals hired before December 
     31, 2002, are in high-quality professional development 
     activities that ensure that the paraprofessional has the 
     ability to provide tutorial assistance in--
       ``(A) reading, writing, and mathematics: or
       ``(B) reading readiness, writing readiness, and mathematics 
     readiness, as appropriate.
       ``(i) Verification of Compliance.--
       ``(1) In general.--In verifying compliance with this 
     section, each local educational agency, at a minimum, shall 
     require that the principal of each elementary school and 
     secondary school operating a program under section 1114 or 
     1115 annually attest in writing as to whether each such 
     school is in compliance with the requirements of this 
     section.
       ``(2) Availability of information.--Copies of the annual 
     certification described in paragraph (1)--
       ``(A) shall be maintained at each elementary school and 
     secondary school operating a program under section 1114 or 
     1115 and at the main office of the local educational agency; 
     and
       ``(B) shall be available to any member of the general 
     public upon request.''.

     SEC. 113. PROFESSIONAL DEVELOPMENT.

       Section 1119A (as redesignated by section 112(a)) is 
     amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Purpose.--The purpose of this section is to assist 
     each local educational agency receiving assistance under this 
     part in increasing the academic achievement of eligible 
     children (as identified under section 1115(b)(1)(B)) (in this 
     section referred to as eligible children) through improved 
     teacher quality.'';
       (2) in subsection (b)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Required activities.--Each local educational agency 
     receiving assistance under this part shall provide 
     professional development activities under this section that 
     shall--
       ``(A) give teachers, principals, and administrators the 
     knowledge and skills to provide eligible children with the 
     opportunity to meet challenging State or local content 
     standards and student performance standards;
       ``(B) support the recruiting, hiring, and training of fully 
     qualified teachers, including teachers fully qualified 
     through State and local alternative routes;
       ``(C) advance teacher understanding of effective 
     instructional strategies, based on scientifically based 
     research, for improving eligible children achievement, at a 
     minimum, in mathematics, science, and English language arts;
       ``(D) be directly related to the curricula and content 
     areas in which the teacher provides instruction;
       ``(E) be designed to enhance the ability of a teacher to 
     understand and use the State's standards for the subject area 
     in which the teacher provides instruction;
       ``(F) be tied to scientifically based research that 
     demonstrates the effectiveness of such professional 
     development activities or programs in increasing eligible 
     children achievement or substantially increasing the 
     knowledge and teaching skills of teachers;
       ``(G) be of sufficient intensity and duration (not to 
     include 1-day or short-term workshops and conferences) to 
     have a positive and lasting impact on the teacher's 
     performance in the classroom, except that this subparagraph 
     shall not apply to an activity if such activity is one 
     component of a long-term comprehensive professional 
     development plan established by the teacher and the teacher's 
     supervisor based upon an assessment of their needs, their 
     eligible children's needs, and the needs of the local 
     educational agency;
       ``(H) be developed with extensive participation of 
     teachers, principals, parents, administrators of schools, and 
     local school boards of schools to be served under this part;
       ``(I) to the extent appropriate, provide training for 
     teachers in the use of technology so that technology and its 
     applications are effectively used in the classroom to improve 
     teaching and learning in the curricula and academic content 
     areas in which the teachers provide instruction;
       ``(J) as a whole, be regularly evaluated for such 
     activities' impact on increased teacher effectiveness and 
     improved student achievement, with the findings of such 
     evaluations used to improve the quality of professional 
     development; and
       ``(K) include strategies for identifying and eliminating 
     gender and racial bias in instructional materials, methods, 
     and practices.'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``and data to inform 
     and instruct classroom practice'' before the semicolon;
       (ii) by striking subparagraphs (D) and (G);
       (iii) by redesignating subparagraphs (E), (F), (H), and 
     (I), as subparagraphs (D), (E), (F) and (G), respectively; 
     and
       (iv) by inserting after subparagraph (G) (as redesignated 
     by clause (iii)) the following new subparagraph:
       ``(H) instruction in the ways that teachers, principals, 
     and guidance counselors can work with parents and students 
     from groups, such as females and minorities, that are 
     underrepresented in careers in mathematics, science, 
     engineering, and technology, to encourage and maintain the 
     interest of such students in those careers.'';
       (3) by striking subsections (f) through (i); and

[[Page 7227]]

       (4) by adding after subsection (e) the following:
       ``(f) Consolidation of Funds.--Funds provided under this 
     part that are used for professional development purposes may 
     be consolidated with funds provided under title II of this 
     Act and other sources.
       ``(g) Definition.--The term `fully qualified' has the same 
     meaning given such term in section 2001(1).
       ``(h) Special Rule.--
       ``(1) In general.--No State educational agency shall 
     require a local educational agency or elementary school or 
     secondary school to expend a specific amount of funds for 
     professional development activities under this part.
       ``(2) Exception.--Paragraph (1) shall not apply with 
     respect to requirements under section 1116(d)(9).''.

     SEC. 114. FISCAL REQUIREMENTS.

       Section 1120A(a) (20 U.S.C. 6322(a)) is amended by striking 
     ``section 14501'' and inserting ``section 8501''.

     SEC. 115. COORDINATION REQUIREMENTS.

       Section 1120B (20 U.S.C. 6323) is amended--
       (1) in subsection (a), by striking ``to the extent 
     feasible'' and all that follows through the period and 
     inserting ``in coordination with local Head Start agencies, 
     and if feasible, other early childhood development 
     programs.'';
       (2) in subsection (b)--
       (A) in paragraph (3) by striking ``and'' after the 
     semicolon;
       (B) in paragraph (4) by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end, the following:
       ``(5) linking the educational services provided in such 
     local educational agency with the services provided in local 
     Head Start agencies.''.

     SEC. 115A. LIMITATIONS ON FUNDS.

       Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is 
     amended by inserting after section 1120B (20 U.S.C. 6321) the 
     following:

     ``SEC. 1120C. LIMITATIONS ON FUNDS.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, a local educational agency shall use funds received 
     under this subpart only to provide instruction to students, 
     and for services directly related to instruction, in 
     preschool through grade 12 to assist eligible children to 
     improve their academic achievement and to meet achievement 
     standards established by the State.
       ``(b) Permissible and Prohibited Activities.--In this 
     subpart, the term `academic instruction'--
       ``(1) includes--
       ``(A) the employment of teachers and other instructional 
     personnel, including providing teachers and instructional 
     personnel with employee benefits;
       ``(B) the extension of academic instruction beyond the 
     normal school day and year, including summer school;
       ``(C) the provision of instructional services to pre-
     kindergarten children to prepare such children for the 
     transition to kindergarten;
       ``(D) the purchase of instructional resources, such as 
     books, materials, computers, and other instructional 
     equipment and wiring to support instructional equipment;
       ``(E) the development and administration of curriculum, 
     educational materials, and assessments;
       ``(F) the implementation of--
       ``(i) instructional interventions in schools in need of 
     improvement; and
       ``(ii) corrective actions to improve student achievement; 
     and
       ``(G) the transportation of students to assist them in 
     improving academic achievement, except that not more than 10 
     percent of the funds made available under this subpart to a 
     local educational agency shall be used to carry out this 
     subparagraph;
       ``(2) but does not include--
       ``(A) the purchase or provision of janitorial services and 
     utility costs;
       ``(B) the construction or operation of facilities;
       ``(C) the acquisition of real property;
       ``(D) costs for food and refreshments; or
       ``(E) the purchase or lease of vehicles.''.

     SEC. 116. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF 
                   THE INTERIOR.

       Section 1121 (20 U.S.C. 6331) is amended to read as 
     follows:

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

       ``(a) Reservation of Funds.--From the amount appropriated 
     for payments to States for any fiscal year under section 
     1002(a), the Secretary shall reserve a total of 1 percent to 
     provide assistance to--
       ``(1) the outlying areas in the amount determined in 
     accordance with subsection (b); and
       ``(2) the Secretary of the Interior in the amount necessary 
     to make payments pursuant to subsection (d).
       ``(b) Assistance to Outlying Areas.--
       ``(1) Grants authorized.--From the amount made available 
     for a fiscal year under subsection (a), the Secretary shall 
     award grants to the outlying areas and freely associated 
     States to carry out the purposes of this part.
       ``(2) Competitive grants.--For each of fiscal years 2000 
     and 2001, the Secretary shall ensure that grants are awarded 
     under this subsection on a competitive basis in accordance 
     with paragraph (3).
       ``(3) Requirements and limitation for competitive grants.--
       ``(A) Recommendations.--The Secretary shall award grants 
     under this subsection on the basis of the recommendations of 
     the Pacific Region Educational Laboratory in Honolulu, 
     Hawaii.
       ``(B) Termination of eligibility.--Notwithstanding any 
     other provision of law, the freely associated States shall 
     not be eligible to receive funds under this part after 
     September 30, 2001.
       ``(C) Administrative costs.--The Secretary may provide that 
     not more than 5 percent of the amount reserved for grants 
     under this subsection will be used to pay the administrative 
     costs of the Pacific Region Educational Laboratory for 
     services provided under subparagraph (A).
       ``(4) Special rule.--The provisions of Public Law 95-134 
     (91 Stat. 1159) that permit the consolidation of grants by 
     the outlying areas shall not apply to funds provided to the 
     freely associated States under this subsection.
       ``(5) Funding.--The amount reserved by the Secretary to 
     award grants under this subsection shall not exceed the 
     amount reserved under this section (as this section existed 
     on the day prior to the date of enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act) 
     for the freely associated States for fiscal year 1999.
       ``(6) Definitions.--In this subsection and subsection (a):
       ``(A) Freely associated states.--The term `freely 
     associated States' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       ``(B) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(c) Allotment to the Secretary of the Interior.--
       ``(1) In general.--The amount allotted for payments to the 
     Secretary of the Interior under subsection (a)(2) for any 
     fiscal year shall be, as determined pursuant to criteria 
     established by the Secretary, the amount necessary to meet 
     the special educational needs of--
       ``(A) Indian children on reservations served by elementary 
     and secondary schools for Indian children operated or 
     supported by the Department of the Interior; and
       ``(B) out-of-State Indian children in elementary and 
     secondary schools in local educational agencies under special 
     contracts with the Department of the Interior.
       ``(2) Payments.--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 
     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. 117. AMOUNTS FOR GRANTS.

       Section 1122 (20 U.S.C. 6332) is amended to read as 
     follows:

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

       ``(a) Allocation Formula.--
       ``(1) Allocation to States.--Of the amount appropriated to 
     carry out this part for each of fiscal years 2001 through 
     2005 (each such year, as appropriate, shall be referred to in 
     this subsection as the `current fiscal year'), the amount to 
     be allocated to States for a fiscal year based on population 
     data for local educational agencies in such States, shall be 
     equal to the sum of--
       ``(A) an amount equal to the sum of--
       ``(i) the amount made available to carry out section 1124 
     (as such section existed on the day prior to the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act) for fiscal year 1999; and
       ``(ii) 21.25 percent of the amount, if any, by which the 
     amount appropriated under section 1002(a) for the current 
     fiscal year exceeds the amount appropriated under such 
     section (as such section existed on the day prior to the date 
     of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) for fiscal year 1999, to 
     be allocated in accordance with section 1124;
       ``(B) an amount equal to the sum of--
       ``(i) the amount made available to carry out section 1124A 
     (as such section existed on the day prior to the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act) for fiscal year 1999; and
       ``(ii) 3.75 percent of the amount, if any, by which the 
     amount appropriated under section 1002(a) for the current 
     fiscal year exceeds the amount appropriated under such 
     section (as such section existed on the day prior to the date 
     of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) for fiscal year 1999, to 
     be allocated in accordance with section 1124A; and

[[Page 7228]]

       ``(C) an amount equal to 75 percent of the amount, if any, 
     by which the amount appropriated under section 1002(a) for 
     the current fiscal year exceeds the amount appropriated under 
     such section (as such section existed on the day prior to the 
     date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) for fiscal year 1999, to 
     be allocated in accordance with section 1125.
       ``(2) Allocation to local educational agencies.--Of the 
     total amounts allocated to a State under this part for each 
     of fiscal years 2001 and 2002, 96.5 percent shall be 
     allocated by the State educational agency to local 
     educational agencies, and for each of fiscal years 2003 
     through 2005, 95.5 percent shall be allocated to local 
     educational agencies, of which--
       ``(A) 75 percent shall be allocated in accordance with 
     section 1125;
       ``(B) 21.25 percent shall be allocated in accordance with 
     section 1124; and
       ``(C) 3.75 percent shall be allocated in accordance with 
     section 1124A.
       ``(b) Adjustments Where Necessitated by Appropriations.--
       ``(1) In general.--If the sums available under this part 
     for any fiscal year are insufficient to pay the full amounts 
     that all States and local educational agencies are eligible 
     to receive under sections 1124, 1124A, and 1125 for such 
     fiscal year, the Secretary shall ratably reduce the 
     allocations to such States and local educational agencies, 
     subject to subsections (c) and (d).
       ``(2) Additional funds.--If additional funds become 
     available for making payments under sections 1124, 1124A, and 
     1125 for such fiscal year, allocations that were reduced 
     under paragraph (1) shall be increased on the same basis as 
     they were reduced.
       ``(c) Hold-Harmless Amounts.--
       ``(1) Grants to states.--The total amount allocated to each 
     State under this part in each fiscal year shall not be less 
     than the amount allocated to each State in the preceding 
     fiscal year.
       ``(2) Grants to local educational agencies.--The total 
     amount allocated to each local educational agency under this 
     part in each fiscal year shall not be less than an amount 
     equal to 85 percent of the amount allocated to each local 
     educational agency in the preceding fiscal year.
       ``(d) Ratable Reductions.--
       ``(1) In general.--If the sums made available under this 
     part for any fiscal year are insufficient to pay the full 
     amounts that all States are eligible to receive under 
     subsection (c) for such year, the Secretary shall ratably 
     reduce such amounts for such year.
       ``(2) Additional funds.--If additional funds become 
     available for making payments under subsection (c) for such 
     fiscal year, amounts that were reduced under paragraph (1) 
     shall be increased on the same basis as such amounts were 
     reduced.
       ``(e) Definition.--For the purpose of this section and 
     sections 1124, 1124A, and 1125, the term `State' means each 
     of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.''.

     SEC. 118. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       Section 1124 (20 U.S.C. 6333) is amended to read as 
     follows:

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

       ``(a) Amount of Grants.--
       ``(1) Grants for local educational agencies and puerto 
     rico.--Except as provided in paragraph (3) and in section 
     1126, the amount of a grant that a local educational agency 
     is eligible to receive under this section for a fiscal year 
     shall be determined by multiplying--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State involved, except that the amount determined under 
     this subparagraph shall not be less than 32 percent or more 
     than 48 percent, of the average per-pupil expenditure in the 
     United States.
       ``(2) Calculation of grants.--
       ``(A) Allocations to local educational agencies.--The 
     Secretary shall calculate the amount of grants under this 
     section on the basis of the number of children counted under 
     subsection (c) for local educational agencies. For purposes 
     of this subparagraph, the Secretary and the Secretary of 
     Commerce shall publicly disclose the reasoning for their 
     determinations under subsection (c) in detail.
       ``(B) Allocations to large and small local educational 
     agencies.--
       ``(i) Application of provision.--The Secretary shall 
     determine the amount of grant awards under this section for 
     each large or small local educational agency.
       ``(ii) Large agencies.--The amount of a grant awarded under 
     this section for each large local educational agency shall be 
     the amount determined by the Secretary under clause (i).
       ``(iii) Small agencies.--With respect to the amount of a 
     grant awarded under this section to a small local educational 
     agency, the State educational agency may--

       ``(I) provide such grant in an amount determined by the 
     Secretary under clause (i); or
       ``(II) use an alternative method approved by the Secretary 
     to distribute the portion of the State's total grants under 
     this section that is based on the number of small local 
     educational agencies.

       ``(iv) Alternative method.--An alternative method approved 
     under clause (iii)(II) shall be based on population data that 
     the State educational agency determines best reflects the 
     current distribution of children in poor families among the 
     State's small local educational agencies that meet the 
     eligibility criteria of subsection (b).
       ``(v) Appeals.--A small local educational agency that is 
     dissatisfied with the determination of its grant amount by 
     the State educational agency under clause (iii)(II), may 
     appeal that determination to the Secretary, who shall respond 
     not later than 45 days after receipt of such appeal.
       ``(vi) Definition.--In this subparagraph:

       ``(I) large local educational agency.--The term `large 
     local educational agency' means a local educational agency 
     serving an area with a total population of 20,000 or more.
       ``(II) Small local educational agency.--The term `small 
     local educational agency' means a local educational agency 
     serving an area with a total population of less than 20,000.

       ``(3) Puerto rico.--
       ``(A) In general.--For each fiscal year, the amount of the 
     grant that the Commonwealth of Puerto Rico shall be eligible 
     to receive under this section shall be determined by 
     multiplying the number of children counted under subsection 
     (c) for the Commonwealth of Puerto Rico by the product of--
       ``(i) 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; 
     and
       ``(ii) 32 percent of the average per pupil expenditure in 
     the United States.
       ``(B) Minimum percentage.--The percentage in subparagraph 
     (A)(i) shall not be less than--
       ``(i) for fiscal year 2000, 75.0 percent;
       ``(ii) for fiscal year 2001, 77.5 percent;
       ``(iii) for fiscal year 2002, 80.0 percent;
       ``(iv) for fiscal year 2003, 82.5 percent; and
       ``(v) for fiscal year 2004, and succeeding fiscal years, 
     85.0 percent.
       ``(C) Limitation.--If the application of subparagraph (B) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this part than the State or 
     District received under this part for the preceding fiscal 
     year, the percentage shall be the greater of the percentage 
     described in subparagraph (A)(i) or the percentage used for 
     the preceding fiscal year.
       ``(4) Definition.--In this subsection, the term `State' 
     does not include Guam, American Samoa, the Virgin Islands, 
     and the Northern Mariana Islands.
       ``(b) Minimum Number of Children To Qualify.--A local 
     educational agency shall be eligible for a basic grant under 
     this section for any fiscal year only if--
       ``(1) there are 10 or more children counted under 
     subsection (c) with respect to that agency; and
       ``(2) such children make up more than 2 percent of the 
     total school-age population in the agency's jurisdiction.
       ``(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 ages 5 to 17, inclusive, in 
     the school district of the local educational agency involved 
     from families below the poverty level as determined under 
     paragraph (2); and
       ``(B) the number of children (determined under paragraph 
     (4) for either the preceding year as described in that 
     paragraph, or for the second preceding year, as the Secretary 
     finds appropriate) ages 5 to 17, inclusive, in the school 
     district of the local educational agency involved in 
     institutions for neglected and delinquent children (other 
     than such institutions operated by the United States), but 
     not counted pursuant to subpart 1 of part D for the purposes 
     of a grant to a State agency, or being supported in foster 
     homes with public funds.
       ``(2) Determination of number of children.--
       ``(A) Number of children below the poverty level.--For 
     purposes of this subsection, the Secretary shall determine 
     the number of children ages 5 to 17, inclusive, from families 
     below the poverty level on the basis of the most recent 
     satisfactory data, described in paragraph (3), that is 
     available from the Department of Commerce.
       ``(B) Special rules.--
       ``(i) District of columbia and puerto rico.--The District 
     of Columbia and the Commonwealth of Puerto Rico shall be 
     treated as individual local educational agencies for purposes 
     of this paragraph.
       ``(ii) Multiple counties.--If a local educational agency 
     contains 2 or more counties in their entirety, then each 
     county will be treated as if such county were a separate 
     local educational agency for purposes of calculating grants 
     under this part. The total of grants for such counties shall 
     be allocated to such local educational agency and the local 
     educational agency shall distribute to schools in each county 
     within such agency a share of the local educational agency's 
     total grant in an amount that is not less than the county's 
     share of the population counts used to calculate the local 
     educational agency's grant.

[[Page 7229]]

       ``(3) Population updates.--
       ``(A) In general.--In fiscal year 2001, and every 2 years 
     thereafter, the Secretary shall use updated data on the 
     number of children, ages 5 to 17, inclusive, from families 
     below the poverty level for local educational agencies or 
     counties, as published by the Department of Commerce, unless 
     the Secretary and the Secretary of Commerce determine that 
     the use of the updated population data would be inappropriate 
     or unreliable.
       ``(B) Criteria of poverty.--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.
       ``(C) Inappropriate or unreliable data.--If the Secretary 
     and the Secretary of Commerce determine that some or all of 
     the data referred to in subparagraph (A) are inappropriate or 
     unreliable, the Secretaries shall publicly disclose the 
     reasons for such determination.
       ``(4) Other children to be counted.--
       ``(A) In general.--For the purposes of this section, the 
     Secretary shall--
       ``(i) determine the number of children ages 5 to 17, 
     inclusive, from families above the poverty line on the basis 
     of the number of such children from families receiving an 
     annual income in excess of the annual income current criteria 
     of poverty for payments under a State program funded under 
     part A of title IV of the Social Security Act; and
       ``(ii) in making a determination under clause (i), 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.
       ``(B) Caseload data.--The Secretary shall determine the 
     number of children described in subparagraph (A) and the 
     number of children ages 5 to 17, inclusive, 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 year 
     preceding the fiscal year for which the determination is 
     being made (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. For the purpose of this section, the Secretary 
     shall consider all children who are in correctional 
     institutions to be living in institutions for delinquent 
     children.
       ``(C) Collection and transmission of data.--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.
       ``(5) Estimate.--When requested by the Secretary, the 
     Secretary of Commerce shall make a special updated estimate 
     of the number of children of such ages who are from families 
     below the poverty level in each school district, and the 
     Secretary may pay (either in advance or by way of 
     reimbursement) the Secretary of Commerce the cost of making 
     this special estimate. The Secretary of Commerce shall give 
     consideration to any request of the chief executive of a 
     State for the collection of additional census information.
       ``(d) State Minimum.--Notwithstanding section 1122, the 
     aggregate amount allotted for all local educational agencies 
     within a State may not be less than the lesser of--
       ``(1) 0.25 percent of total amount of grants awarded under 
     this section; or
       ``(2) the average of--
       ``(A) one-quarter of 1 percent of the total amount 
     available for such fiscal year under this section; and
       ``(B) the number of children in such State counted under 
     subsection (c) in the fiscal year multiplied by 150 percent 
     of the national average per pupil payment made with funds 
     available under this section for that year.''.

     SEC. 119. CONCENTRATION GRANTS.

       Section 1124A (20 U.S.C. 6334.) is amended to read as 
     follows:

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

       ``(a) Eligibility for and Amount of Grants.--
       ``(1) Eligibility.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, each local educational agency in a State other 
     than Guam, American Samoa, the Virgin Islands, and the 
     Commonwealth of the Northern Mariana Islands, that is 
     eligible for a grant under section 1124 for any fiscal year 
     shall be eligible for an additional grant under this section 
     for that fiscal year if the number of children counted under 
     section 1124(c) with respect to the agency exceeds--
       ``(i) 6,500; or
       ``(ii) 15 percent of the total number of children ages 5 
     through 17, inclusive, in the agency.
       ``(B) Minimum amount.--Notwithstanding section 1122, no 
     State described in subparagraph (A) shall receive an amount 
     under this section that is less than the lesser of--
       ``(i) 0.25 percent of the total amount of grants awarded 
     under this section; or
       ``(ii) the average of--

       ``(I) one-quarter of 1 percent of the amounts made 
     available to carry out this section for such fiscal year; and
       ``(II) the greater of--

     ``(aa) $340,000; or
     ``(bb) the number of children in such State counted for 
     purposes of this section in that fiscal year multiplied by 
     150 percent of the national average per pupil payment made 
     with funds available under this section for that year.
       ``(2) Special rule.--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 number of children counted under section 1124(c) 
     for that fiscal year; and
       ``(B) the quotient resulting from the division of the 
     amount determined for those agencies under section 1124(a)(1) 
     for the fiscal year for which the determination is being made 
     divided by the total number of children counted under section 
     1124(c) for that agency for that fiscal year.
       ``(3) Amount.--The amount of an additional grant for which 
     an eligible local educational agency is eligible under this 
     section for any fiscal year shall be an amount that bears the 
     same ratio to the amount available to carry out this section 
     for that fiscal year as the product determined under 
     paragraph (2) for such local educational agency for that 
     fiscal year bears to the sum of such product for all local 
     educational agencies in the United States for that fiscal 
     year.
       ``(4) Local allocations.--Grant amounts under this section 
     shall be determined in accordance with section 1124(a)(2) and 
     (3).
       ``(b) States Receiving Minimum Grants.--With respect to a 
     State that receives a grant for the minimum amount under 
     subsection (a)(1)(B), the State educational agency shall 
     allocate such amount among the local educational agencies in 
     each State either--
       ``(1) in accordance with paragraphs (2) and (4) of 
     subsection (a); or
       ``(2) based on their respective concentrations and numbers 
     of children counted under section 1124(c), except that only 
     those local educational agencies with concentrations or 
     numbers of children counted under section 1124(c) that exceed 
     the statewide average percentage of such children or the 
     statewide average number of such children shall receive any 
     funds on the basis of this paragraph.''.

     SEC. 120. TARGETED GRANTS.

       Section 1125 (20 U.S.C 6335) is amended to read as follows:

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

       ``(a) Eligibility of Local Educational Agencies.--A local 
     educational agency in a State shall be eligible to receive a 
     targeted grant under this section for any fiscal year if the 
     number of children in the local educational agency counted 
     under subsection 1124(c), before the application of the 
     weighting factor described in subsection (c), is at least 10, 
     and if the number of children counted for grants under 
     section 1124 is at least 5 percent of the total population 
     age 5 to 17 years, inclusive, in the local educational 
     agency.
       ``(b) Grants for Local Educational Agencies, the District 
     of Columbia, and Puerto Rico.--
       ``(1) In general.--The amount of a 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 equal to the product of--
       ``(A) the weighted child count determined under subsection 
     (c); and
       ``(B) the amount determined under section 1124(a)(1)(B).
       ``(2) Puerto rico.--For each fiscal year, the amount of the 
     grant for which the Commonwealth of Puerto Rico is eligible 
     to receive under this section shall be equal to the number of 
     children counted under subsection (c) for Puerto Rico, 
     multiplied by the amount determined under section 1124(a)(4).
       ``(c) Weighted Child Count.--
       ``(1) In general.--For each fiscal year, the weighted child 
     count used to determine a local educational agency's grant 
     under this section shall be equal to the sum of--
       ``(A) the number of children determined under section 
     1124(c) for that local educational agency constituting up to 
     14.265 percent, inclusive, of the agency's total population 
     ages 5 to 17, inclusive, multiplied by 1.0;
       ``(B) the number of such children constituting more than 
     14.265 percent, but not more than 21.553 percent, of such 
     population, multiplied by 1.75;
       ``(C) the number of such children constituting more than 
     21.553 percent, but not more than 29.223 percent, of such 
     population, multiplied by 2.5;
       ``(D) the number of such children constituting more than 
     29.223 percent, but not more than 36.538 percent, of such 
     population, multiplied by 3.25; and

[[Page 7230]]

       ``(E) the number of such children constituting more than 
     36.538 percent of such population, multiplied by 4.0.
       ``(2) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighted child count for Puerto Rico under this paragraph 
     shall not be greater than the total number of children 
     counted under section 1124(c) multiplied by 1.72.
       ``(d) Calculation of Grant Amounts.--Grants under this 
     section shall be calculated in accordance with section 
     1124(a)(2) and (3).
       ``(e) State Minimum.--Notwithstanding any other provision 
     of this section or section 1122, from the total amount made 
     available for any fiscal year to carry out this section, each 
     State shall be allotted at least the lesser of--
       ``(1) 0.25 percent of the total amount of grants awarded 
     under this section; or
       ``(2) the average of--
       ``(A) one-quarter of 1 percent of the total amount 
     available for such fiscal year to carry out this section; and
       ``(B) 150 percent of the national average grant under this 
     section per child described in section 1124(c), without 
     application of a weighting factor, multiplied by the State's 
     total number of children described in section 1124(c), 
     without application of a weighting factor.''.

     SEC. 121. SPECIAL ALLOCATION PROCEDURES.

       Section 1126 (20 U.S.C. 6337) is amended to read as 
     follows:

     ``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

              PART B--EVEN START FAMILY LITERACY PROGRAMS

     SEC. 131. PROGRAM AUTHORIZED.

       Section 1202(c) (20 U.S.C. 6362(c)) is amended--
       (1) in paragraph (1), by striking ``section 2260(b)(3)'' 
     and inserting ``section 7004(c)'';
       (2) by striking paragraph (2)(C); and
       (3) in paragraph (3)--
       (A) by striking ``is defined'' and inserting ``was 
     defined''; and
       (B) by inserting ``as such section was in effect on the day 
     preceding the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act'' after 
     ``2252''.

     SEC. 132. APPLICATIONS.

       Section 1207(c)(1)(F) (20 U.S.C. 6367(c)(1)(F)) is amended 
     by striking ``the Goals 2000'' and all that follows through 
     the period and inserting ``or other Acts, as appropriate, 
     consistent with section 8305.''.

     SEC. 133. RESEARCH.

       Section 1211(b) (20 U.S.C. 6396b(b)) is amended to read as 
     follows:
       ``(b) Dissemination.--The Secretary shall disseminate, or 
     designate another entity to disseminate, the results of the 
     research described in subsection (a) to States and recipients 
     of subgrants under this part.''.

                PART C--EDUCATION OF MIGRATORY CHILDREN

     SEC. 141. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY 
                   PLAN; AUTHORIZED ACTIVITIES.

       Section 1306(a)(1) (20 U.S.C. 6369(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``the Goals 2000'' and 
     all that follows through the period and inserting ``or other 
     Acts, as appropriate, consistent with section 8305;'';
       (2) in subparagraph (B), by striking ``section 14302'' and 
     inserting ``section 8302''; and
       (3) in subparagraph (F), by striking ``bilingual 
     education'' and all that follows and inserting ``language 
     instruction programs under title III; and''.

PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH WHO 
         ARE NEGLECTED, DELINQUENT, OR AT RISK OF DROPPING OUT

     SEC. 151. STATE PLAN AND STATE AGENCY APPLICATIONS.

       Section 1414 (20 U.S.C. 6434) is amended--
       (1) in subsection (a)(1), by striking ``the Goals 2000'' 
     and all that follows through the period and inserting ``or 
     other Acts, as appropriate, consistent with section 8305.''; 
     and
       (2) in subsection (c)--
       (A) in paragraph (6), by striking ``section 14701'' and 
     inserting ``section 8701''; and
       (B) in paragraph (7), by striking ``section 14501'' and 
     inserting ``section 8501''.

     SEC. 152. USE OF FUNDS.

       Section 1415(a)(2)(D) (20 U.S.C. 6435(a)(2)(D)) is amended 
     by striking ``section 14701'' and inserting ``section 8701''.

  PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

     SEC. 161. EVALUATIONS.

       Section 1501 (20 U.S.C. 6491) is amended--
       (1) in subsection (a)(4)--
       (A) by striking ``January 1, 1996'' and inserting ``January 
     1, 2002''; and
       (B) by striking ``January 1, 1999'' and inserting ``January 
     1, 2005'';
       (2) in subsection (b)(1), by striking ``December 31, 1997'' 
     and inserting ``December 31, 2003''; and
       (3) in subsection (e)(2), by striking ``December 31, 1996'' 
     and inserting ``December 31, 2002''.

     SEC. 162. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

       Section 1502 (20 U.S.C. 6492) is amended to read as 
     follows:

     ``SEC. 1502. COMPREHENSIVE SCHOOL REFORM.

       ``(a) Findings and Purpose.--
       ``(1) Findings.--Congress finds the following:
       ``(A) A number of schools across the country have shown 
     impressive gains in student performance through the use of 
     comprehensive models for schoolwide change that incorporate 
     virtually all aspects of school operations.
       ``(B) No single comprehensive school reform model may be 
     suitable for every school, however, schools should be 
     encouraged to examine successful, externally developed 
     comprehensive school reform approaches as they undertake 
     comprehensive school reform.
       ``(C) Comprehensive school reform is an important means by 
     which children are assisted in meeting challenging State 
     student performance standards.
       ``(2) Purpose.--The purpose of this section is to provide 
     financial incentives for schools to develop comprehensive 
     school reforms, based upon scientifically based research and 
     effective practices that include an emphasis on basic 
     academics and parental involvement so that all children can 
     meet challenging State content and performance standards.
       ``(b) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to provide 
     grants to State educational agencies to provide subgrants to 
     local educational agencies to carry out the purpose described 
     in subsection (a)(2).
       ``(2) Allocation.--
       ``(A) Reservation.--Of the amount appropriated under this 
     section, the Secretary may reserve--
       ``(i) not more than 1 percent for schools supported by the 
     Bureau of Indian Affairs and in the United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands; and
       ``(ii) not more than 1 percent to conduct national 
     evaluation activities described under subsection (e).
       ``(B) In general.--Of the amount of funds remaining after 
     the reservation under subparagraph (A), the Secretary shall 
     allocate to each State for a fiscal year, an amount that 
     bears the same ratio to the amount appropriated for that 
     fiscal year as the amount made available under section 1124 
     to the State for the preceding fiscal year bears to the total 
     amount allocated under section 1124 to all States for that 
     year.
       ``(C) Reallocation.--If a State does not apply for funds 
     under this section, the Secretary shall reallocate such funds 
     to other States that do apply in proportion to the amount 
     allocated to such States under subparagraph (B).
       ``(c) State Awards.--
       ``(1) State application.--
       ``(A) In general.--Each State educational agency that 
     desires to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner and 
     containing such other information as the Secretary may 
     reasonably require.
       ``(B) Contents.--Each State application shall also 
     describe--
       ``(i) the process and selection criteria by which the State 
     educational agency, using expert review, will select local 
     educational agencies to receive subgrants under this section;
       ``(ii) how the agency will ensure that only comprehensive 
     school reforms that are based

[[Page 7231]]

     on scientifically based research receive funds under this 
     section;
       ``(iii) how the agency will disseminate materials regarding 
     information on comprehensive school reforms that are based on 
     scientifically based research;
       ``(iv) how the agency will evaluate the implementation of 
     such reforms and measure the extent to which the reforms 
     resulted in increased student academic performance; and
       ``(v) how the agency will provide, upon request, technical 
     assistance to the local educational agency in evaluating, 
     developing, and implementing comprehensive school reform.
       ``(2) Uses of funds.--
       ``(A) In general.--Except as provided in subparagraph (E), 
     a State educational agency that receives an award under this 
     section shall use such funds to provide competitive grants to 
     local educational agencies receiving funds under part A.
       ``(B) Grant requirements.--A grant to a local educational 
     agency shall be--
       ``(i) of sufficient size and scope to support the initial 
     costs for the particular comprehensive school reform plan 
     selected or designed by each school identified in the 
     application of the local educational agency;
       ``(ii) in an amount not less than $50,000 to each 
     participating school; and
       ``(iii) renewable for two additional 1-year periods after 
     the initial 1-year grant is made if schools are making 
     substantial progress in the implementation of their reforms.
       ``(C) Priority.--The State, in awarding grants under this 
     paragraph, shall give priority to local educational agencies 
     that--
       ``(i) plan to use the funds in schools identified as being 
     in need of improvement or corrective action under section 
     1116(c); and
       ``(ii) demonstrate a commitment to assist schools with 
     budget allocation, professional development, and other 
     strategies necessary to ensure the comprehensive school 
     reforms are properly implemented and are sustained in the 
     future.
       ``(D) Grant consideration.--In making subgrant awards under 
     this part, the State educational agency shall take into 
     account the equitable distribution of awards to different 
     geographic regions within the State, including urban and 
     rural areas, and to schools serving elementary and secondary 
     students.
       ``(E) Administrative costs.--A State educational agency 
     that receives a grant award under this section may reserve 
     not more than 5 percent of such award for administrative, 
     evaluation, and technical assistance expenses.
       ``(F) Supplement.--Funds made available under this section 
     shall be used to supplement, not supplant, any other Federal, 
     State, or local funds that would otherwise be available to 
     carry out this section.
       ``(3) Reporting.--Each State educational agency that 
     receives an award under this section shall provide to the 
     Secretary such information as the Secretary may require, 
     including the names of local educational agencies and schools 
     selected to receive subgrant awards under this section, the 
     amount of such award, and a description of the comprehensive 
     school reform model selected and in use.
       ``(d) Local Awards.--
       ``(1) In general.--Each local educational agency that 
     applies for a subgrant under this section shall--
       ``(A) identify which schools eligible for funds under part 
     A plan to implement a comprehensive school reform program, 
     including the projected costs of such a program;
       ``(B) describe the scientifically based comprehensive 
     school reforms that such schools will implement;
       ``(C) describe how the agency will provide technical 
     assistance and support for the effective implementation of 
     the scientifically based school reforms selected by such 
     schools; and
       ``(D) describe how the agency will evaluate the 
     implementation of such reforms and measure the results 
     achieved in improving student academic performance.
       ``(2) Components of the program.--A local educational 
     agency that receives a subgrant award under this section 
     shall provide such funds to schools that implement a 
     comprehensive school reform program that--
       ``(A) employs innovative strategies and proven methods for 
     student learning, teaching, and school management that are 
     based on scientifically based research and effective 
     practices and have been replicated successfully in schools 
     with diverse characteristics;
       ``(B) integrates a comprehensive design for effective 
     school functioning, including instruction, assessment, 
     classroom management, professional development, parental 
     involvement, and school management, that aligns the school's 
     curriculum, technology, professional development into a 
     comprehensive reform plan for schoolwide change designed to 
     enable all students to meet challenging State content and 
     challenging student performance standards and addresses needs 
     identified through a school needs assessment;
       ``(C) provides high-quality and continuous teacher and 
     staff professional development;
       ``(D) includes measurable goals for student performance and 
     benchmarks for meeting such goals;
       ``(E) is supported by teachers, principals, administrators, 
     and other professional staff;
       ``(F) provides for the meaningful involvement of parents 
     and the local community in planning and implementing school 
     improvement activities;
       ``(G) uses high quality external technical support and 
     assistance from an entity, which may be an institution of 
     higher education, with experience and expertise in schoolwide 
     reform and improvement;
       ``(H) includes a plan for the evaluation of the 
     implementation of school reforms and the student results 
     achieved; and
       ``(I) identifies how other resources, including Federal, 
     State, local, and private resources, available to the school 
     will be used to coordinate services to support and sustain 
     the school reform effort.
       ``(3) Special rule.--A school that receives funds to 
     develop a comprehensive school reform program shall not be 
     limited to using the approaches identified or developed by 
     the Department of Education, but may develop its own 
     comprehensive school reform programs for schoolwide change 
     that comply with paragraph (2).
       ``(e) Evaluation and Report.--
       ``(1) In general.--The Secretary shall develop a plan for a 
     national evaluation of the programs developed pursuant to 
     this section.
       ``(2) Evaluation.--This national evaluation shall evaluate 
     the implementation and results achieved by schools after 3 
     years of implementing comprehensive school reforms, and 
     assess the effectiveness of comprehensive school reforms in 
     schools with diverse characteristics.
       ``(3) Reports.--Prior to the completion of a national 
     evaluation, the Secretary shall submit an interim report 
     outlining first year implementation activities to the 
     Committees on Education and the Workforce and Appropriations 
     of the House of Representatives and the Committees on Health, 
     Education, Labor, and Pensions and Appropriations of the 
     Senate.
       ``(f) Definition.--The term `scientifically based 
     research'--
       ``(1) means the application of rigorous, systematic, and 
     objective procedures in the development of comprehensive 
     school reform models; and
       ``(2) shall include research that--
       ``(A) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(B) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(C) relies on measurements or observational methods that 
     provide valid data across evaluators and observers and across 
     multiple measurements and observations; and
       ``(D) has been accepted by a peer-reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review.
       ``(g) Authorization of Appropriations.--Funds appropriated 
     for any fiscal year under section 1002(f) shall be used for 
     carrying out the activities under this section.''.

             PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

     SEC. 171. RURAL EDUCATION DEVELOPMENT INITIATIVE.

       Title I (20 U.S.C. 6301 et seq.) is amended--
       (1) by redesignating part F (20 U.S.C. 6511 et seq.) as 
     part G;
       (2) by redesignating sections 1601 through 1604 (20 U.S.C. 
     6511, 6514) as sections 1701 through 1704, respectively, and 
     by redesignating accordingly the references to such sections 
     in part G (as so redesignated); and
       (3) by inserting after part E (20 U.S.C. 6491 et seq.) the 
     following:

            ``PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

     ``SEC. 1601. FINDINGS.

       ``Congress makes the following findings:
       ``(1) The National Center for Educational Statistics 
     reports that 46 percent of our Nation's public elementary 
     schools and secondary schools serve rural areas.
       ``(2) While there are rural education initiatives 
     identified at the State and local level, no Federal education 
     policy focuses on the specific and unique needs of rural 
     school districts and schools, especially those that serve 
     poor students.
       ``(3) A critical problem for rural school districts 
     involves the hiring and retention of qualified administrators 
     and certified teachers, especially in science and 
     mathematics. Consequently, teachers in rural schools are 
     almost twice as likely to provide instruction in 3 or more 
     subject areas than teachers in urban schools. Rural schools 
     also face other tough challenges, such as shrinking local tax 
     bases, high transportation costs, aging buildings, limited 
     course offerings, and limited resources.
       ``(4) Data from the National Assessment of Educational 
     Progress (NAEP) consistently shows large gaps between the 
     achievement of students in high poverty schools and those in 
     other schools. High-poverty schools will face special 
     challenges in preparing their students to reach high 
     standards of performance on State and national assessments.

     ``SEC. 1602. DEFINITIONS.

       ``In this part:
       ``(1) Eligible local educational agency.--The term 
     `eligible local educational agency' means a local educational 
     agency that serves--

[[Page 7232]]

       ``(A) a school-age population, not less than 15 percent of 
     which consists of students from families with incomes below 
     the poverty line; and
       ``(B)(i) a rural locality; or
       ``(ii) a school-age population of not more than 800 
     students.
       ``(2) Metropolitan area.--The term `metropolitan area' 
     means an area defined as such by the Secretary of Commerce.
       ``(3) Poverty line.--The term `poverty line' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       ``(4) Rural locality.--The term `rural locality' means a 
     locality that is not within a metropolitan area.
       ``(5) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       ``(6) School age population.--The term `school age 
     population' means the number of students aged 5 through 17.

     ``SEC. 1603. PROGRAM AUTHORIZED.

       ``(a) Grants Authorized.--The Secretary shall award grants, 
     from allotments under subsection (b)(2), to each State having 
     an application approved under section 1604 to enable the 
     State educational agency to award grants to eligible local 
     educational agencies to carry out local authorized activities 
     described in section 1605(b).
       ``(b) Reservation and Allotments.--
       ``(1) Reservation.--From amounts appropriated under section 
     1608 for each fiscal year, the Secretary shall reserve \1/2\ 
     of 1 percent of such amount for payments to the Secretary of 
     the Interior for activities approved by the Secretary, 
     consistent with this subpart, in elementary schools and 
     secondary schools operated or supported by the Bureau of 
     Indian Affairs, on the basis of their respective needs for 
     assistance under this part.
       ``(2) Allotments.--
       ``(A) In general.--From the amounts appropriated under 
     section 1608 for each fiscal year that remain after making 
     the reservation under paragraph (1), the Secretary shall 
     allot to each State having an application approved under 
     section 1604 an amount that bears the same relationship to 
     the remainder as the school age population served by eligible 
     local educational agencies in the State bears to the school 
     age population served by eligible local educational agencies 
     in all States.
       ``(B) Data.--In determining the school age population under 
     subparagraph (A), the Secretary shall use the most recent 
     data available from the Bureau of the Census.
       ``(c) Direct Awards to Eligible Local Educational 
     Agencies.--
       ``(1) Nonparticipating state.--If a State educational 
     agency for a fiscal year elects not to participate in a 
     program under this section, or does not have an application 
     approved under section 1604, an eligible local educational 
     agency in such State desiring a grant under this part for the 
     fiscal year shall apply directly to the Secretary to receive 
     a grant under this subsection.
       ``(2) Direct awards.--The Secretary may award, on a 
     competitive basis, the amount the State educational agency is 
     eligible to receive under subsection (b)(2) directly to 
     eligible local educational agencies in the State desiring a 
     grant under paragraph (1).
       ``(3) Administrative funds.--An eligible local educational 
     agency that receives a direct grant under this subsection may 
     use not more than 1 percent of the grant funds for the 
     administrative costs of carrying out this part in the first 
     year the agency receives a grant under this subsection and 
     0.5 percent for such costs in the second and each succeeding 
     such year.
       ``(d) Matching requirement.--Each eligible local 
     educational agency receiving a grant under subsection (c) or 
     section 1605(a) shall contribute resources with respect to 
     the local authorized activities to be assisted under this 
     part in cash or in-kind, from non-Federal sources, in an 
     amount equal to the Federal funds awarded under the grant.
       ``(e) Relation to Other Federal Funding.--Funds received 
     under this part by a State educational agency or an eligible 
     local educational agency shall not be taken into 
     consideration in determining the eligibility for, or amount 
     of, any other Federal funding awarded to such agencies.

     ``SEC. 1604. APPLICATIONS.

       ``(a) In General.--Each State educational agency desiring a 
     grant under section 1603 and eligible local educational 
     agency desiring a grant under section 1603(c) shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require.
       ``(b) Contents.--Each application submitted under 
     subsection (a) shall--
       ``(1) specify annual, measurable performance goals and 
     objectives, at a minimum, with respect to--
       ``(A) increased student academic achievement;
       ``(B) decreased gaps in achievement between minority and 
     non-minority students, and between economically disadvantaged 
     and non-economically disadvantaged students; and
       ``(C) other factors that the State educational agency or 
     eligible local educational agency may choose to measure;
       ``(2) describe how the State educational agency or eligible 
     local educational agency will hold local educational agencies 
     and elementary schools or secondary schools receiving funds 
     under this part accountable for meeting the annual, 
     measurable goals and objectives;
       ``(3) describe how the State educational agency or eligible 
     local educational agency will provide technical assistance 
     for a local educational agency, an elementary school, or a 
     secondary school that does not meet the annual, measurable 
     goals and objectives; and
       ``(4) describe how the State educational agency or eligible 
     local educational agency will take action against a local 
     educational agency, an elementary school, or a secondary 
     school, if the local educational agency or school fails, over 
     2 consecutive years, to meet the annual, measurable goals and 
     objectives.

     ``SEC. 1605. WITHIN-STATE ALLOCATIONS.

       ``(a) Allocations.--A State educational agency shall award 
     grants under this part to eligible local educational agencies 
     within the State according to a formula developed by the 
     State educational agency and approved by the Secretary.
       ``(b) Uses of Funds.--Grant funds awarded to eligible local 
     educational agencies or made available to elementary schools 
     and secondary schools under this section shall be used for--
       ``(1) educational technology, including software and 
     hardware;
       ``(2) professional development;
       ``(3) technical assistance;
       ``(4) recruitment and retention of fully qualified 
     teachers, as defined in title II, and highly qualified 
     principals;
       ``(5) parental involvement activities; or
       ``(6) academic enrichment or other education programs.
       ``(c) Reservation of Administrative Funds.--
       ``(1) First year.--For the first year that a State 
     educational agency receives a grant under this part, the 
     agency--
       ``(A) shall use not less than 99 percent of the grant funds 
     to award grants to eligible local educational agencies in the 
     State; and
       ``(B) may use not more than 1 percent for State activities 
     and the administrative costs of carrying out this part.
       ``(2) Succeeding years.--For the second and each succeeding 
     year that a State educational agency receives a grant under 
     this part, the agency--
       ``(A) shall use not less than 99.5 percent of the grant 
     funds to award grants to eligible local educational agencies 
     in the State; and
       ``(B) may use not more than 0.5 percent of the grant funds 
     for State activities and the administrative costs of carrying 
     out this part.

     ``SEC. 1606. ACCOUNTABILITY.

       The Secretary, at the end of the third year that a State 
     educational agency or an eligible local educational agency 
     receiving a direct award under section 1603(c) participates 
     in the program under this part, shall permit only those State 
     educational agencies and eligible local educational agencies 
     that meet their annual, measurable goals and objectives for 2 
     consecutive years to receive grant funds for the fourth or 
     fifth fiscal years of the program under this part.

     ``SEC. 1607. REPORTS.

       ``(a) State Reports.--Each State educational agency that 
     receives a grant under this part shall provide an annual 
     report to the Secretary. The report shall describe--
       ``(1) the method the State educational agency used to award 
     grants to eligible local educational agencies and to provide 
     assistance to elementary schools and secondary schools under 
     this part;
       ``(2) how eligible local educational agencies and 
     elementary schools and secondary schools within the State 
     used the grant funds provided under this part; and
       ``(3) the degree to which progress has been made toward 
     meeting the annual, measurable goals and objectives described 
     in the State application.
       ``(b) Reports From Eligible Local Educational Agencies.--
     Each eligible local educational agency receiving a grant 
     under section 1603(c) shall provide an annual report to the 
     Secretary. Such report shall describe--
       ``(1) how such agency used the grant funds provided under 
     this part;
       ``(2) the degree to which progress has been made toward 
     meeting the annual, measurable goals and objectives described 
     in the eligible local educational agency's application; and
       ``(3) how the local educational agency coordinated funds 
     received under this part with other Federal, State, and local 
     funds.
       ``(c) Report to Congress.--The Secretary shall prepare and 
     submit to Congress an annual report setting forth the 
     information provided to the Secretary pursuant to subsections 
     (a) and (b).
       ``(d) Study.--The Comptroller General of the United States 
     shall conduct a study regarding the impact of assistance 
     provided under this part on student achievement, and shall 
     submit such study to Congress.

     ``SEC. 1608. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $200,000,000 for fiscal

[[Page 7233]]

     year 2001 and such sums as may be necessary for each of the 4 
     succeeding fiscal years.''.

                       PART G--GENERAL PROVISIONS

     SEC. 181. FEDERAL REGULATIONS.

       Section 1701(b)(4) (20 U.S.C. 6511(b)(4)) (as redesignated 
     by section 161(2)) is amended by striking ``July 1, 1995'' 
     and inserting ``May 1, 2000''.

     SEC. 182. STATE ADMINISTRATION.

       Section 1703 (20 U.S.C. 6513) (as redesignated by section 
     161(2)) is amended by striking subsection (c).

TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
                               CLASS SIZE

     SEC. 201. TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL 
                   DEVELOPMENT, AND CLASS SIZE.

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

 ``TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, 
                             AND CLASS SIZE

     ``SEC. 2001. PURPOSE.

       ``The purpose of this title is to provide grants to State 
     educational agencies and local educational agencies in order 
     to assist their efforts to increase student academic 
     achievement through such strategies as improving teacher and 
     principal quality, increasing professional development, and 
     decreasing class size.

     ``SEC. 2002. DEFINITIONS.

       ``In this title:
       ``(1) Fully qualified.--The term `fully qualified' means--
       ``(A) in the case of an elementary school teacher (other 
     than a teacher teaching in a public charter school), a 
     teacher who, at a minimum--
       ``(i) has obtained State certification (which may include 
     certification obtained through alternative means), or a State 
     license, to teach in the State in which the teacher teaches;
       ``(ii) holds a bachelor's degree from an institution of 
     higher education; and
       ``(iii) demonstrates subject matter knowledge, teaching 
     knowledge, and the teaching skills required to teach 
     effectively reading, writing, mathematics, science, social 
     studies, and other elements of a liberal arts education; and
       ``(B) in the case of a middle school or secondary school 
     teacher (other than a teacher teaching in a public charter 
     school), a teacher who, at a minimum--
       ``(i) has obtained State certification (which may include 
     certification obtained through alternative means), or a State 
     license, to teach in the State in which the teacher teaches;
       ``(ii) holds a bachelor's degree from an institution of 
     higher education; and
       ``(iii) demonstrates a high level of competence in all 
     subject areas in which the teacher teaches through--

       ``(I) completion of an academic major (or courses totaling 
     an equivalent number of credit hours) in each of the subject 
     areas in which the teacher provides instruction;
       ``(II) in the case of other mid-career professionals 
     entering the teaching profession, achievement of--

       ``(aa) a high level of performance in other professional 
     employment experience in subject areas relevant to the 
     subject areas in which instruction will be provided; and
       ``(bb) a requirement described in subclause (III); or

       ``(III) achievement of a high level of performance on 
     rigorous academic subject area tests administered by the 
     State in which the teacher teaches.

       ``(2) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education, as defined in section 101 of the Higher 
     Education Act of 1965, that--
       ``(A) has not been identified as low performing under 
     section 208 of the Higher Education Act of 1965; and
       ``(B) is in full compliance with the public reporting 
     requirements described in section 207 of the Higher Education 
     Act of 1965.
       ``(3) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(4) Poverty line.--The term `poverty line' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act) applicable 
     to a family of the size involved, for the most recent year.
       ``(5) School-age population.--The term `school-age 
     population' means the population aged 5 through 17, as 
     determined on the basis of the most recent satisfactory data.
       ``(6) State.--The term `State' means each of the several 
     States in the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

  ``PART A--TEACHER AND PRINCIPAL QUALITY AND PROFESSIONAL DEVELOPMENT

     ``SEC. 2011. PROGRAM AUTHORIZED.

       ``(a) Grants Authorized.--The Secretary shall award a 
     grant, from allotments made under subsection (b), to each 
     State having a State plan approved under section 2013, to 
     enable the State to raise the quality of, and provide 
     professional development opportunities for, public elementary 
     school and secondary school teachers, principals, and 
     administrators.
       ``(b) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     section 2023 to carry out this part for each fiscal year, the 
     Secretary shall reserve--
       ``(A) \1/2\ of 1 percent of such amount for payments to the 
     Bureau of Indian Affairs for activities, approved by the 
     Secretary, consistent with this part;
       ``(B) \1/2\ of 1 percent of such amount for payments to 
     outlying areas, to be allotted in accordance with their 
     respective needs as determined by the Secretary, for 
     activities, approved by the Secretary, consistent with this 
     part; and
       ``(C) such sums as may be necessary to continue to support 
     any multiyear partnership program award made under parts A, 
     C, and D (as such parts were in effect on the day preceding 
     the date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) until the termination of 
     the multiyear award.
       ``(2) State allotments.--From the amount appropriated under 
     section 2023 for a fiscal year and remaining after the 
     Secretary makes reservations under paragraph (1), the 
     Secretary shall allot to each State having a State plan 
     approved under section 2013 the sum of--
       ``(A) an amount that bears the same relationship to 50 
     percent of the remainder as the school-age population from 
     families with incomes below the poverty line in the State 
     bears to the school-age population from families with incomes 
     below the poverty line in all States; and
       ``(B) an amount that bears the same relationship to 50 
     percent of the remainder as the school-age population in the 
     State bears to the school-age population in all States.
       ``(c) State Minimum.--For any fiscal year, no State shall 
     be allotted under this section an amount that is less than 
     \1/2\ of 1 percent of the total amount allotted to all States 
     under subsection (b)(2).
       ``(d) Hold-Harmless Amounts.--For fiscal year 2001, 
     notwithstanding subsection (b)(2), the amount allotted to 
     each State under this section shall be not less than 100 
     percent of the total amount the State was allotted under part 
     B (as such part was in effect on the day preceding the date 
     of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) for the preceding fiscal 
     year.
       ``(e) Ratable Reductions.--If the sums made available under 
     subsection (b)(2) for any fiscal year are insufficient to pay 
     the full amounts that all States are eligible to receive 
     under subsection (d) for such year, the Secretary shall 
     ratably reduce such amounts for such year.

     ``SEC. 2012. WITHIN STATE ALLOCATION.

       ``(a) In General.--Each State educational agency for a 
     State receiving a grant under section 2011(a) shall--
       ``(1) set aside 10 percent of the grant funds to award 
     educator partnership grants under section 2021;
       ``(2) set aside not more than 5 percent of the grant funds 
     to carry out activities described the State plan submitted 
     under section 2013; and
       ``(3) using the remaining 85 percent of the grant funds, 
     make subgrants by allocating to each local educational agency 
     in the State the sum of--
       ``(A) an amount that bears the same relationship to 60 
     percent of the remainder as the school-age population from 
     families with incomes below the poverty line in the area 
     served by the local educational agency bears to the school-
     age population from families with incomes below the poverty 
     line in the area served by all local educational agencies in 
     the State; and
       ``(B) an amount that bears the same relationship to 40 
     percent of the remainder as the school-age population in the 
     area served by the local educational agency bears to the 
     school-age population in the area served by all local 
     educational agencies in the State.
       ``(b) Hold-Harmless Amounts.--
       ``(1) Fiscal year 2001.--For fiscal year 2001, 
     notwithstanding subsection (a), the amount allocated to each 
     local educational agency under this section shall be not less 
     than 100 percent of the total amount the local educational 
     agency was allocated under this title (as in effect on the 
     day preceding the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act) for fiscal 
     year 2000.
       ``(2) Fiscal year 2002.--For fiscal year 2002, 
     notwithstanding subsection (a), the amount allocated to each 
     local educational agency under this section shall be not less 
     than 85 percent of the amount allocated to the local 
     educational agency under this section for fiscal year 2001.
       ``(3) Fiscal years 2003-2005.--For each of fiscal years 
     2003 through 2005, notwithstanding subsection (a), the amount 
     allocated to each local educational agency under this section 
     shall be not less than 70 percent of the amount allocated to 
     the local educational agency under this section for the 
     previous fiscal year.
       ``(c) Ratable Reductions.--If the sums made available under 
     subsection (a)(3) for

[[Page 7234]]

     any fiscal year are insufficient to pay the full amounts that 
     all local educational agencies are eligible to receive under 
     subsection (b) for such year, the State educational agency 
     shall ratably reduce such amounts for such year.

     ``SEC. 2013. STATE PLANS.

       ``(a) Plan Required.--
       ``(1) Comprehensive state plan.--The entity or agency 
     responsible for teacher certification or licensing under the 
     laws of the State desiring a grant under this part shall 
     submit a State plan to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may require. If the State educational agency is not the 
     entity or agency designated under the laws of the State as 
     responsible for teacher certification or licensing in the 
     State, then the plan shall be developed in consultation with 
     the State educational agency. The entity or agency shall 
     provide annual evidence of such consultation to the 
     Secretary.
       ``(2) Consolidated plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidated plan 
     under section 8302.
       ``(b) Contents.--Each plan submitted under subsection (a) 
     shall--
       ``(1) describe how the State is taking reasonable steps 
     to--
       ``(A) reform teacher certification, recertification, or 
     licensure requirements to ensure that--
       ``(i) teachers have the necessary teaching skills and 
     academic content knowledge in the academic subjects in which 
     the teachers are assigned to teach;
       ``(ii) such requirements are aligned with the challenging 
     State content standards;
       ``(iii) teachers have the knowledge and skills necessary to 
     help students meet the challenging State student performance 
     standards;
       ``(iv) such requirements take into account the need, as 
     determined by the State, for greater access to, and 
     participation in, the teaching profession by individuals from 
     historically underrepresented groups; and
       ``(v) teachers have the necessary technological skills to 
     integrate more effectively technology in the teaching of 
     content required by State and local standards in all academic 
     subjects in which the teachers provide instruction;
       ``(B) develop and implement rigorous testing procedures for 
     teachers, as required in section 2002(1)(A), to ensure that 
     the teachers have teaching skills and academic content 
     knowledge necessary to teach effectively the content called 
     for by State and local standards in all academic subjects in 
     which the teachers provide instruction;
       ``(C) establish, expand, or improve alternative routes to 
     State certification of teachers, especially in the areas of 
     mathematics and science, for highly qualified individuals 
     with a baccalaureate degree, including mid-career 
     professionals form other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates who have records of academic distinction and who 
     demonstrate the potential to become highly effective 
     teachers;
       ``(D) reduce emergency teacher certification;
       ``(E) develop and implement effective programs, and provide 
     financial assistance, to assist local educational agencies, 
     elementary schools, and secondary schools in effectively 
     recruiting and retaining fully qualified teachers and 
     principals, particularly in schools that have the lowest 
     proportion of fully qualified teachers or the highest 
     proportion of low-performing students;
       ``(F) provide professional development programs that meet 
     the requirements described in section 2019;
       ``(G) provide programs that are designed to assist new 
     teachers during their first 3 years of teaching, such as 
     mentoring programs that--
       ``(i) provide mentoring to new teachers from veteran 
     teachers with expertise in the same subject matter as the new 
     teachers are teaching;
       ``(ii) provide mentors time for activities such as 
     coaching, observing, and assisting teachers who are being 
     mentored; and
       ``(iii) use standards or assessments that are consistent 
     with the State's student performance standards and the 
     requirements for professional development activities 
     described in section 2019 in order to guide the new teachers;
       ``(H) provide technical assistance to local educational 
     agencies in developing and implementing activities described 
     in section 2018; and
       ``(I) ensure that programs in core academic subjects, 
     particularly in mathematics and science, will take into 
     account the need for greater access to, and participation in, 
     such core academic subjects by students from historically 
     underrepresented groups, including females, minorities, 
     individuals with limited English proficiency, the 
     economically disadvantaged, and individuals with 
     disabilities, by incorporating pedagogical strategies and 
     techniques that meet such students' educational needs;
       ``(2) describe the activities for which assistance is 
     sought under the grant, and how such activities will improve 
     students' academic achievement and close academic achievement 
     gaps of low-income, minority, and limited English proficient 
     students;
       ``(3) describe how the State will establish annual 
     numerical performance objectives under section 2014 for 
     improving the qualifications of teachers and the professional 
     development of teachers, principals, administrators, and 
     mental health professionals;
       ``(4) contain an assurance that the State consulted with 
     local educational agencies, education-related community 
     groups, nonprofit organizations, parents, teachers, school 
     administrators, local school boards, institutions of higher 
     education in the State, and content specialists in 
     establishing the performance objectives described in section 
     2014;
       ``(5) describe how the State will hold local educational 
     agencies, elementary schools, and secondary schools 
     accountable for meeting the performance objectives described 
     in section 2014 and for reporting annually on the local 
     educational agencies' and schools' progress in meeting the 
     performance objectives;
       ``(6) describe how the State will ensure that a local 
     educational agency receiving a subgrant under section 2012 
     will comply with the requirements of this part;
       ``(7) provide an assurance that the State will require each 
     local educational agency, elementary school, or secondary 
     school receiving funds under this part to report publicly the 
     local educational agency's or school's annual progress with 
     respect to the performance objectives described in section 
     2014; and
       ``(8) describe how the State will coordinate professional 
     development activities authorized under this part with 
     professional development activities provided under other 
     Federal, State, and local programs, including programs 
     authorized under titles I and III and, where appropriate, the 
     Individuals with Disabilities Education Act and the Carl D. 
     Perkins Vocational and Technical Education Act of 1998.
       ``(c) Secretary Approval.--The Secretary shall, using a 
     peer review process, approve a State plan if the plan meets 
     the requirements of this section.
       ``(d) Duration of the Plan.--
       ``(1) In general.--Each State plan shall--
       ``(A) remain in effect for the duration of the State's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the State, as 
     necessary, to reflect changes to the State's strategies and 
     programs carried out under this part.
       ``(2) Additional information.--If a State receiving a grant 
     under this part makes significant changes to the State plan, 
     such as the adoption of new performance objectives, the State 
     shall submit information regarding the significant changes to 
     the Secretary.

     ``SEC. 2014. PERFORMANCE OBJECTIVES.

       ``(a) In General.--Each State receiving a grant under this 
     part shall establish annual numerical performance objectives 
     with respect to progress in improving the qualifications of 
     teachers and the professional development of teachers, 
     principals, administrators and mental health professionals. 
     For each annual numerical performance objective established, 
     the State shall specify an incremental percentage increase 
     for the objective to be attained for each of the fiscal years 
     for which the State receives a grant under this part, 
     relative to the preceding fiscal year.
       ``(b) Required Objectives.--At a minimum, the annual 
     numerical performance objectives described in subsection (a) 
     shall include an incremental increase in the percentage of--
       ``(1) classes in core academic subjects that are being 
     taught by fully qualified teachers;
       ``(2) new teachers and principals receiving professional 
     development support, including mentoring for teachers, during 
     the teachers' first 3 years of teaching;
       ``(3) teachers, principals, and administrators 
     participating in high quality professional development 
     programs that are consistent with section 2019; and
       ``(4) fully qualified teachers teaching in the State, to 
     ensure that all teachers teaching in such State are fully 
     qualified by December 31, 2005.
       ``(c) Requirement for Fully Qualified Teachers.--Each State 
     receiving a grant under this part shall ensure that all 
     public elementary school and secondary school teachers in the 
     State are fully qualified not later than December 31, 2005.
       ``(d) Accountability.--
       ``(1) In general.--Each State receiving a grant under this 
     part shall be held accountable for--
       ``(A) meeting the State's annual numerical performance 
     objectives; and
       ``(B) meeting the reporting requirements described in 
     section 4401.
       ``(2) Sanctions.--Any State that fails to meet the 
     requirement described in paragraph (1)(A) shall be subject to 
     sanctions under section 7001.
       ``(e) Special Rule.--Notwithstanding any other provision of 
     law, the provisions of subsection (c) shall not supersede 
     State laws governing public charter schools.
       ``(f) Coordination.--Each State that receives a grant under 
     this part and a grant under section 202 of the Higher 
     Education Act of 1965 shall coordinate the activities the 
     State carries out under such section 202 with the activities 
     the State carries out under this section.

[[Page 7235]]



     ``SEC. 2015. OPTIONAL ACTIVITIES.

       ``Each State receiving a grant under section 2011(a) may 
     use the grant funds--
       ``(1) to develop and implement a system to measure the 
     effectiveness of specific professional development programs 
     and strategies;
       ``(2) to increase the portability of teacher pensions and 
     reciprocity of teaching certification or licensure among 
     States, except that no reciprocity agreement developed under 
     this section may lead to the weakening of any State teacher 
     certification or licensing requirement;
       ``(3) to develop or assist local educational agencies in 
     the development and utilization of proven, innovative 
     strategies to deliver intensive professional development 
     programs that are cost effective and easily accessible, such 
     as programs offered through the use of technology and 
     distance learning;
       ``(4) to provide assistance to local educational agencies 
     for the development and implementation of innovative 
     professional development programs that train teachers to use 
     technology to improve teaching and learning and that are 
     consistent with the requirements of section 2019;
       ``(5) to provide professional development to enable 
     teachers to ensure that female students, minority students, 
     limited English proficient students, students with 
     disabilities, and economically disadvantaged students have 
     the full opportunity to achieve challenging State content and 
     performance standards in the core academic subjects;
       ``(6) to increase the number of women, minorities, and 
     individuals with disabilities who teach in the State and who 
     are fully qualified and provide instruction in core academic 
     subjects in which such individuals are underrepresented; and
       ``(7) to increase the number of highly qualified women, 
     minorities, and individuals from other underrepresented 
     groups who are involved in the administration of elementary 
     schools and secondary schools within the State.

     ``SEC. 2016. STATE ADMINISTRATIVE EXPENSES.

       ``Each State receiving a grant under section 2011(a) may 
     use not more than 5 percent of the amount set aside in 
     section 2012(a)(2) for the cost of--
       ``(1) planning and administering the activities described 
     in section 2013(b); and
       ``(2) making subgrants to local educational agencies under 
     section 2012.

     ``SEC. 2017. LOCAL PLANS.

       ``(a) In General.--Each local educational agency desiring a 
     grant from the State under section 2012(a)(3) shall submit a 
     local plan to the State educational agency--
       ``(1) at such time, in such manner, and accompanied by such 
     information as the State educational agency may require; and
       ``(2) that describes how the local educational agency will 
     coordinate the activities for which assistance is sought 
     under this part with other programs carried out under this 
     Act, or other Acts, as appropriate.
       ``(b) Local Plan Contents.--The local plan described in 
     subsection (a) shall, at a minimum--
       ``(1) describe how the local educational agency will use 
     the grant funds to meet the State performance objectives for 
     teacher qualifications and professional development described 
     in section 2014;
       ``(2) describe how the local educational agency will hold 
     elementary schools and secondary schools accountable for 
     meeting the requirements described in this part;
       ``(3) contain an assurance that the local educational 
     agency will target funds to elementary schools and secondary 
     schools served by the local educational agency that--
       ``(A) have the lowest proportion of fully qualified 
     teachers; and
       ``(B) are identified for school improvement under section 
     1116;
       ``(4) describe how the local educational agency will 
     coordinate professional development activities authorized 
     under section 2018(a) with professional development 
     activities provided through other Federal, State, and local 
     programs, including those authorized under titles I and III 
     and, where applicable, the Individuals with Disabilities 
     Education Act and the Carl D. Perkins Vocational and 
     Technical Education Act of 1998; and
       ``(5) describe how the local educational agency has 
     collaborated with teachers, principals, parents, and 
     administrators in the preparation of the local plan.

     ``SEC. 2018. LOCAL ACTIVITIES.

       ``(a) In General.--Each local educational agency receiving 
     a grant under section 2012(a)(3) shall use the grant funds 
     to--
       ``(1) support professional development activities, 
     consistent with section 2019, for--
       ``(A) teachers, in at least the areas of reading, 
     mathematics, and science; and
       ``(B) teachers, principals, administrators and mental 
     health professionals in order to provide such individuals 
     with the knowledge and skills to provide all students, 
     including female students, minority students, limited English 
     proficient students, students with disabilities, and 
     economically disadvantaged students, with the opportunity to 
     meet challenging State content and student performance 
     standards;
       ``(2) provide professional development to teachers, 
     principals, and administrators to enhance the use of 
     technology within elementary schools and secondary schools in 
     order to deliver more effective curricula instruction;
       ``(3) recruit and retain fully qualified teachers and 
     highly qualified principals, particularly for elementary 
     schools and secondary schools located in areas with high 
     percentages of low-performing students and students from 
     families below the poverty line;
       ``(4) recruit and retain fully qualified teachers and high 
     quality principals to serve in the elementary schools and 
     secondary schools with the highest proportion of low-
     performing students, such as through--
       ``(A) mentoring programs for newly hired teachers, 
     including programs provided by master teachers, and for newly 
     hired principals; and
       ``(B) programs that provide other incentives, including 
     financial incentives, to retain--
       ``(i) teachers who have a record of success in helping low-
     performing students improve those students' academic success; 
     and
       ``(ii) principals who have a record of improving the 
     performance of all students, or significantly narrowing the 
     gaps between minority students and nonminority students, and 
     economically disadvantaged students and noneconomically 
     disadvantaged students, within the elementary schools or 
     secondary schools served by the principals;
       ``(5) provide professional development that incorporates 
     effective strategies, techniques, methods, and practices for 
     meeting the educational needs of diverse groups of students, 
     including female students, minority students, students with 
     disabilities, limited English proficient students, and 
     economically disadvantaged students; and
       ``(6) provide professional development for mental health 
     professionals, including school psychologists, school 
     counselors, and school social workers, that is focused on 
     enhancing the skills and knowledge of such individuals so 
     that they may help students exhibiting distress (such as 
     substance abuse, disruptive behavior, and suicidal behavior) 
     meet the challenging State student performance standards.
       ``(b) Optional Activities.--Each local educational agency 
     receiving a grant under section 2012(a)(3) may use the 
     subgrant funds--
       ``(1) to provide a signing bonus or other financial 
     incentive, such as differential pay for--
       ``(A) a teacher to teach in an academic subject for which 
     there exists a shortage of fully qualified teachers within 
     the elementary school or secondary school in which the 
     teacher teaches or within the elementary schools and 
     secondary schools served by the local educational agency; or
       ``(B) a highly qualified principal in a school in which 
     there is a large percentage of children--
       ``(i) from low-income families; or
       ``(ii) with high percentages of low-performance scores on 
     State assessments;
       ``(2) to establish programs that--
       ``(A) recruit professionals into teaching from other fields 
     and provide such professionals with alternative routes to 
     teacher certification, especially in the areas of 
     mathematics, science, and English language arts; and
       ``(B) provide increased teaching and administration 
     opportunities for fully qualified females, minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching or school administration 
     professions;
       ``(3) to establish programs and activities that are 
     designed to improve the quality of the teacher and principal 
     force, such as innovative professional development programs 
     (which may be provided through partnerships, including 
     partnerships with institutions of higher education), and 
     including programs that--
       ``(A) train teachers and principals to utilize technology 
     to improve teaching and learning; and
       ``(B) are consistent with the requirements of section 2019;
       ``(4) to provide collaboratively designed performance pay 
     systems for teachers and principals that encourage teachers 
     and principals to work together to raise student performance;
       ``(5) to establish professional development programs that 
     provide instruction in how to teach children with different 
     learning styles, particularly children with disabilities and 
     children with special learning needs (including children who 
     are gifted and talented);
       ``(6) to establish professional development programs that 
     provide instruction in how best to discipline children in the 
     classroom, and to identify early and appropriate 
     interventions to help children described in paragraph (5) 
     learn;
       ``(7) to provide professional development programs that 
     provide instruction in how to teach character education in a 
     manner that--
       ``(A) reflects the values of parents, teachers, and local 
     communities; and
       ``(B) incorporates elements of good character, including 
     honesty, citizenship, courage, justice, respect, personal 
     responsibility, and trustworthiness;
       ``(8) to provide scholarships or other incentives to assist 
     teachers in attaining national board certification;
       ``(9) to support activities designed to provide effective 
     professional development for

[[Page 7236]]

     teachers of limited English proficient students;
       ``(10) to establish other activities designed--
       ``(A) to improve professional development for teachers, 
     principals, and administrators that are consistent with 
     section 2019; and
       ``(B) to recruit and retain fully qualified teachers and 
     highly qualified principals; and
       ``(11) to establish master teacher programs to increase 
     teacher salaries and employee benefits for teachers who enter 
     into contracts with the local educational agency to serve as 
     master teachers, in accordance with the requirements of 
     subsection (c).
       ``(c) Requirements for Master Teacher Programs.--
       ``(1) Definitions.--In this subsection:
       ``(A) Low-performing students.--The term `low-performing 
     students' means students who, based on multiple measures, 
     perform below a basic level of proficiency for their grade 
     level, as determined by the State.
       ``(B) Master teacher.--The term `master teacher' means a 
     teacher who--
       ``(i) is fully qualified;
       ``(ii) has been teaching for at least 5 years in a public 
     or private school or institution of higher education;
       ``(iii) is selected upon application and recommendation by 
     administrators and other teachers;
       ``(iv) at the time of submission of such application, is 
     teaching and based in a public school;
       ``(v) assists other teachers in improving instructional 
     strategies, improves the skills of other teachers, performs 
     mentoring, develops curriculum, and offers other professional 
     development; and
       ``(vi) enters into a contract with the local educational 
     agency to continue to teach and serve as a master teacher for 
     at least 5 years.
       ``(2) Requirements for master teacher contracts.--A local 
     educational agency that establishes a master teacher program 
     under subsection (b)(11) shall negotiate the terms of 
     contracts of master teachers with the local labor 
     organizations that represent teachers in the school districts 
     served by that agency. A contract with a master teacher 
     entered into in accordance with this paragraph shall specify 
     that a breach of the contract shall be deemed to have 
     occurred if the master teacher voluntarily withdraws or 
     terminates the contract or is dismissed by the local 
     educational agency or school district (as applicable) for 
     nonperformance of duties, subject to any statutory or 
     negotiated due process procedures that may apply. The 
     contract shall require in the event of a breach of contract 
     that a teacher repay the local educational agency all funds 
     provided to the teacher under the contract.

     ``SEC. 2019. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

       ``(a) Limitation Relating to Curriculum and Content 
     Areas.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     local educational agency may not use grant funds allocated 
     under section 2012(a)(3) to support a professional 
     development activity for a teacher that is not--
       ``(A) directly related to the curriculum for which and 
     content areas in which the teacher provides instruction; or
       ``(B) designed to enhance the ability of the teacher to 
     understand and use the State's challenging content standards 
     for the academic subject in which the teacher provides 
     instruction.
       ``(2) Exception.--Paragraph (1) shall not apply to 
     professional development activities that provide instruction 
     in methods of disciplining children.
       ``(b) Professional Development Activity.--A professional 
     development activity carried out under this part shall--
       ``(1) be measured, in terms of progress described in 
     section 2014(a), using the specific performance indicators 
     established by the State in accordance with section 2014;
       ``(2) be tied to challenging State or local content 
     standards and student performance standards;
       ``(3) be tied to scientifically based research 
     demonstrating the effectiveness of such activities in 
     increasing student achievement or substantially increasing 
     the knowledge and teaching skills of teachers;
       ``(4) be of sufficient intensity and duration (such as not 
     to include 1-day or short-term workshops and conferences) to 
     have a positive and lasting impact on teachers' performance 
     in the classroom, except that this paragraph shall not apply 
     to an activity that is 1 component described in a long-term 
     comprehensive professional development plan established by a 
     teacher and the teacher's supervisor, and based upon an 
     assessment of the needs of the teacher, the teacher's 
     students, and the local educational agency;
       ``(5) be developed with extensive participation of 
     teachers, principals, parents, administrators, and local 
     school boards of elementary schools and secondary schools to 
     be served under this part, and institutions of higher 
     education in the State, and, with respect to any professional 
     development program described in paragraph (6) or (7) of 
     section 2018(b), shall, if applicable, be developed with 
     extensive coordination with, and participation of, 
     professionals with expertise in such type of professional 
     development;
       ``(6) to the extent appropriate, provide training for 
     teachers regarding using technology and applying technology 
     effectively in the classroom to improve teaching and learning 
     concerning the curriculum and academic content areas, in 
     which those teachers provide instruction; and
       ``(7) be directly related to the content areas in which the 
     teachers provide instruction and the State content standards.
       ``(c) Accountability.--
       ``(1) In general.--A State shall notify a local educational 
     agency that the agency may be subject to the action described 
     in paragraph (3) if, after any fiscal year, the State 
     determines that the programs or activities funded by the 
     agency under this part fail to meet the requirements of 
     subsections (a) and (b).
       ``(2) Technical assistance.--A local educational agency 
     that has received notification pursuant to paragraph (1) may 
     request technical assistance from the State and an 
     opportunity for such local educational agency to comply with 
     the requirements of subsections (a) and (b).
       ``(3) State educational agency action.--If a State 
     educational agency determines that a local educational agency 
     failed to carry out the local educational agency's 
     responsibilities under this section, the State educational 
     agency shall take such action as the agency determines to be 
     necessary, consistent with this section, to provide, or 
     direct the local educational agency to provide, high-quality 
     professional development for teachers, principals, and 
     administrators.

     ``SEC. 2020. PARENTS' RIGHT TO KNOW.

       ``Each local educational agency receiving a grant under 
     section 2012(a)(3) shall meet the reporting requirements with 
     respect to teacher qualifications described in section 
     4401(h).

     ``SEC. 2021. STATE REPORTS AND GAO STUDY.

       ``(a) State Reports.--Each State educational agency 
     receiving a grant under this part shall annually provide a 
     report to the Secretary describing--
       ``(1) the progress the State is making in increasing the 
     percentages of fully qualified teachers in the State to 
     ensure that all teachers are fully qualified not later than 
     December 31, 2005, including information regarding--
       ``(A) the percentage increase over the previous fiscal year 
     in the number of fully qualified teachers teaching in 
     elementary schools and secondary schools served by local 
     educational agencies receiving funds under title I; and
       ``(B) the percentage increase over the previous fiscal year 
     in the number of core classes being taught by fully qualified 
     teachers in elementary schools and secondary schools being 
     served under title I;
       ``(2) the activities undertaken by the State educational 
     agency and local educational agencies in the State to attract 
     and retain fully qualified teachers, especially in geographic 
     areas and content subject areas in which a shortage of such 
     teachers exist; and
       ``(3) the approximate percentage of Federal, State, local, 
     and nongovernmental resources being expended to carry out 
     activities described in paragraph (2).
       ``(b) GAO Study.--Not later than September 30, 2004, the 
     Comptroller General of the United States shall prepare and 
     submit to the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate a study setting 
     forth information regarding the progress of States' 
     compliance in increasing the percentage of fully qualified 
     teachers, as defined in section 2002(1), for fiscal years 
     2000 through 2003.

     ``SEC. 2021. EDUCATOR PARTNERSHIP GRANTS.

       ``(a) Subgrants.--
       ``(1) In general.--A State receiving a grant under section 
     2011(a) shall award subgrants, on a competitive basis, from 
     amounts made available under section 2012(a)(1), to local 
     educational agencies, elementary schools, or secondary 
     schools that have formed educator partnerships, for the 
     design and implementation of programs that will enhance 
     professional development opportunities for teachers, 
     principals, and administrators, and will increase the number 
     of fully qualified teachers.
       ``(2) Allocations.--A State awarding subgrants under this 
     subsection shall allocate the subgrant funds on a competitive 
     basis and in a manner that results in an equitable 
     distribution of the subgrant funds by geographic areas within 
     the State.
       ``(3) Administrative expenses.--Each educator partnership 
     receiving a subgrant under this subsection may use not more 
     than 5 percent of the subgrant funds for any fiscal year for 
     the cost of planning and administering programs under this 
     section.
       ``(b) Educator Partnerships.--An educator partnership 
     described in subsection (a) includes a cooperative 
     arrangement between--
       ``(1) a public elementary school or secondary school 
     (including a charter school), or a local educational agency; 
     and
       ``(2) 1 or more of the following:
       ``(A) An institution of higher education.
       ``(B) An educational service agency.
       ``(C) A public or private not-for-profit education 
     organization.
       ``(D) A for-profit education organization.

[[Page 7237]]

       ``(E) An entity from outside the traditional education 
     arena, including a corporation or consulting firm.
       ``(c) Use of Funds.--An educator partnership receiving a 
     subgrant under this section shall use the subgrant funds 
     for--
       ``(1) developing and enhancing of professional development 
     activities for teachers in core academic subjects to ensure 
     that the teachers have content knowledge in the academic 
     subjects in which the teachers provide instruction;
       ``(2) developing and providing assistance to local 
     educational agencies and elementary schools and secondary 
     schools for sustained, high-quality professional development 
     activities for teachers, principals, and administrators, 
     that--
       ``(A) ensure that teachers, principals, and administrators 
     are able to use State content standards, performance 
     standards, and assessments to improve instructional practices 
     and student achievement; and
       ``(B) may include intensive programs designed to prepare a 
     teacher who participates in such a program to provide 
     professional development instruction to other teachers within 
     the participating teacher's school;
       ``(3) increasing the number of fully qualified teachers 
     available to provide high-quality education to limited 
     English proficient students by--
       ``(A) working with institutions of higher education that 
     offer degree programs, to attract more people into such 
     programs, and to prepare better new, English language 
     teachers to provide effective language instruction to limited 
     English proficient students; and
       ``(B) supporting development and implementation of 
     professional development programs for language instruction 
     teachers to improve the language proficiency of limited 
     English proficient students;
       ``(4) developing and implementing professional development 
     activities for principals and administrators to enable the 
     principals and administrators to be effective school leaders 
     and to improve student achievement on challenging State 
     content and student performance standards, including 
     professional development relating to--
       ``(A) leadership skills;
       ``(B) recruitment, assignment, retention, and evaluation of 
     teachers and other staff;
       ``(C) effective instructional practices, including the use 
     of technology; and
       ``(D) parental and community involvement; and
       ``(5) providing activities that enhance professional 
     development opportunities for teachers, principals, and 
     administrators or will increase the number of fully qualified 
     teachers.
       ``(d) Application Required.--Each educator partnership 
     desiring a subgrant under this section shall submit an 
     application to the appropriate State educational agency at 
     such time, in such manner, and accompanied by such 
     information as the State educational agency may reasonably 
     require.
       ``(e) Coordination.--Each educator partnership that 
     receives a subgrant under this section and a grant under 
     section 203 of the Higher Education Act of 1965 shall 
     coordinate the activities carried out under such section 203 
     with any related activities carried out under this section.

     ``SEC. 2023. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $1,600,000,000 for fiscal year 2001 and such sums as may 
     be necessary for each of the 4 succeeding fiscal years.

                     ``PART B--CLASS SIZE REDUCTION

     ``SEC. 2031. FINDINGS.

       ``Congress makes the following findings:
       ``(1) Rigorous research has shown that students attending 
     small classes in the early grades make more rapid educational 
     gains than students in larger classes, and that those gains 
     persist through at least the eighth grade.
       ``(2) The benefits of smaller classes are greatest for 
     lower-achieving, minority, poor, and inner-city children, as 
     demonstrated by a study that found that urban fourth graders 
     in smaller-than-average classes were \3/4\ of a school year 
     ahead of their counterparts in larger-than-average classes.
       ``(3) Teachers in small classes can provide students with 
     more individualized attention, spend more time on instruction 
     and less time on other tasks, and cover more material 
     effectively, and are better able to work with parents to 
     further their children's education, than teachers in large 
     classes.
       ``(4) Smaller classes allow teachers to identify and work 
     with students who have learning disabilities sooner than is 
     possible with larger classes, potentially reducing those 
     students' needs for special education services in the later 
     grades.
       ``(5) The National Research Council report, `Preventing 
     Reading Difficulties in Young Children', recommends reducing 
     class sizes, accompanied by providing high-quality 
     professional development for teachers, as a strategy for 
     improving student achievement in reading.
       ``(6) Efforts to improve educational outcomes by reducing 
     class sizes in the early grades are likely to be successful 
     only if well-qualified teachers are hired to fill additional 
     classroom positions, and if teachers receive intensive, 
     ongoing professional development.
       ``(7) Several States and school districts have begun 
     serious efforts to reduce class sizes in the early elementary 
     school grades, but those efforts may be impeded by financial 
     limitations or difficulties in hiring highly qualified 
     teachers.
       ``(8) The Federal Government can assist in those efforts by 
     providing funding for class size reductions in grades 1 
     through 3, and by helping to ensure that both new and current 
     teachers who are moving into smaller classrooms are well 
     prepared.

     ``SEC. 2032. PURPOSE.

       ``The purpose of this part is to help States and local 
     educational agencies recruit, train, and hire 100,000 
     additional teachers in order to--
       ``(1) reduce nationally class size in grades 1 through 3 to 
     an average of 18 students per regular classroom; and
       ``(2) improve teaching in the early elementary school 
     grades so that all students can learn to read independently 
     and well by the end of the third grade.

     ``SEC. 2033. ALLOTMENTS TO STATES.

       ``(a) Reservations for the Outlying Areas and the Bureau of 
     Indian Affairs.--From the amount appropriated under section 
     2042 for any fiscal year, the Secretary shall reserve a total 
     of not more than 1 percent to make payments to--
       ``(1) outlying areas, on the basis of their respective 
     needs, for activities, approved by the Secretary, consistent 
     with this part; and
       ``(2) the Secretary of the Interior for activities approved 
     by the Secretary of Education, consistent with this part, in 
     schools operated or supported by the Bureau of Indian 
     Affairs, on the basis of their respective needs.
       ``(b) Allotments to States.--
       ``(1) In general.--From the amount appropriated under 
     section 2042 for a fiscal year and remaining after the 
     Secretary makes reservations under subsection (a), the 
     Secretary shall make grants by allotting to each State having 
     a State application approved under section 2034(c) an amount 
     that bears the same relationship to the remainder as the 
     greater of the amounts that the State received in the 
     preceding fiscal year under sections 1122 and 2202(b) (as 
     such sections were in effect on the day preceding the date of 
     enactment of the Public Education Reinvestment, Reinvention, 
     and Rededication Act) bears to the total of the greater 
     amounts that all States received under such sections for the 
     preceding fiscal year.
       ``(2) Ratable reduction.--If the sums made available under 
     paragraph (1) for any fiscal year are insufficient to pay the 
     full amounts that all States are eligible to receive under 
     paragraph (1) for such year, the Secretary shall ratably 
     reduce such amounts for such year.
       ``(3) Reallotment.--If any State chooses not to participate 
     in the program carried out under this part, or fails to 
     submit an approvable application under this part, the 
     Secretary shall reallot the amount that such State would have 
     received under paragraphs (1) and (2) to States having 
     applications approved under section 2034(c), in accordance 
     with paragraphs (1) and (2).

     ``SEC. 2034. APPLICATIONS.

       ``(a) Applications Required.--The State educational agency 
     for each State desiring a grant under this part shall submit 
     an application to the Secretary at such time, in such form, 
     and containing such information as the Secretary may require.
       ``(b) Contents.--The application shall include--
       ``(1) a description of the State's goals for using funds 
     under this part to reduce average class sizes in regular 
     classrooms in grades 1 through 3, including a description of 
     class sizes in those classrooms, for each local educational 
     agency in the State (as of the date of submission of the 
     application);
       ``(2) a description of how the State educational agency 
     will allocate program funds made available through the grant 
     within the State;
       ``(3) a description of how the State will use other funds, 
     including other Federal funds, to reduce class sizes and to 
     improve teacher quality and reading achievement within the 
     State; and
       ``(4) an assurance that the State educational agency will 
     submit to the Secretary such reports and information as the 
     Secretary may reasonably require.
       ``(c) Approval of Applications.--The Secretary shall 
     approve a State application submitted under this section if 
     the application meets the requirements of this section and 
     holds reasonable promise of achieving the purpose of this 
     part.

     ``SEC. 2035. WITHIN-STATE ALLOCATIONS.

       ``(a) Allocations to Local Educational Agencies.--Each 
     State receiving a grant under this part for any fiscal year 
     may reserve not more than 1 percent of the grant funds for 
     the cost of administering this part and, using the remaining 
     funds, shall make subgrants by allocating to each local 
     educational agency in the State the sum of--
       ``(1) an amount that bears the same relationship to 80 
     percent of the remainder as the school-age population from 
     families with incomes below the poverty line in the area 
     served by the local educational agency bears to the school-
     age population from families with incomes below the poverty 
     line in the

[[Page 7238]]

     area served by all local educational agencies in the State; 
     and
       ``(2) an amount that bears the same relationship to 20 
     percent of the remainder as the enrollment of the school-age 
     population in public and private nonprofit elementary schools 
     and secondary schools in the area served by the local 
     educational agency bears to the enrollment of the school-age 
     population in public and private nonprofit elementary schools 
     and secondary schools in the area served by all local 
     educational agencies in the State.
       ``(b) Reallocation.--If any local educational agency 
     chooses not to participate in the program carried out under 
     this part, or fails to submit an approvable application under 
     this part, the State educational agency shall reallocate the 
     amount such local educational agency would have received 
     under subsection (a) to local educational agencies having 
     applications approved under section 2036(b), in accordance 
     with subsection (a).

     ``SEC. 2036. LOCAL APPLICATIONS.

       ``(a) In General.--Each local educational agency desiring a 
     subgrant under section 2035(a) shall submit an application to 
     the appropriate State educational agency at such time, in 
     such form, and containing such information as the State 
     educational agency may require, including a description of 
     the local educational agency's program to reduce class sizes 
     by hiring additional highly qualified teachers.
       ``(b) Approval of Applications.--The State educational 
     agency shall approve a local agency application submitted 
     under subsection (a) if the application meets the 
     requirements of subsection (a) and holds reasonable promise 
     of achieving the purpose of this part.

     ``SEC. 2037. USES OF FUNDS.

       ``(a) Administrative Expenses.--Each local educational 
     agency receiving a subgrant under section 2035(a) may use not 
     more than 3 percent of the subgrant funds for any fiscal year 
     for the cost of administering this part.
       ``(b) Recruitment, Teacher Testing, and Professional 
     Development.--
       ``(1) In general.--Each local educational agency receiving 
     subgrant funds under this section shall use such subgrant 
     funds to carry out effective approaches to reducing class 
     size with fully qualified teachers who are certified within 
     the State (including teachers certified through State or 
     local alternative routes) and who demonstrate competency in 
     the areas in which the teachers provide instruction, to 
     improve educational achievement for both regular and special 
     needs children, with particular consideration given to 
     reducing class size in the early elementary grades.
       ``(2) Local activities.--
       ``(A) In general.--Each local educational agency receiving 
     subgrant funds under this section may use such subgrant funds 
     for--
       ``(i) recruiting (including through the use of signing 
     bonuses, and other financial incentives), hiring, and 
     training fully qualified regular and special education 
     teachers (which may include hiring special education teachers 
     to team-teach with regular teachers in classrooms that 
     contain both children with disabilities and non-disabled 
     children) and teachers of special-needs children, who are 
     certified within the State, including teachers who are 
     certified through State or local alternative routes, have a 
     bachelor's degree, and demonstrate the general knowledge, 
     teaching skills, and subject matter knowledge required to 
     teach in the content areas in which the teachers provide 
     instruction;
       ``(ii) testing new teachers for academic content knowledge 
     and satisfaction of State certification requirements 
     consistent with title II of the Higher Education Act of 1965; 
     and
       ``(iii) providing professional development (which may 
     include such activities as promoting retention and mentoring) 
     to teachers, including special education teachers and 
     teachers of special-needs children, in order to meet the goal 
     of ensuring that all instructional staff have the subject 
     matter knowledge, teaching knowledge, and teaching skills 
     necessary to teach effectively in the content area or areas 
     in which they provide instruction, consistent with title II 
     of the Higher Education Act of 1965.
       ``(B) Limitations.--
       ``(i) In general.--Except as provided in clause (ii), a 
     local educational agency may use not more than a total of 25 
     percent of the award received under this section for 
     activities described in subparagraph (A)(ii) and (iii).
       ``(ii) Ed-flex.--

       ``(I) Waiver.--A local educational agency located in a 
     State designated as an Ed-Flex Partnership State under 
     section 4(a)(1)(B) of the Education Flexibility Partnership 
     Act of 1999, and in which 10 percent or more of teachers in 
     elementary schools, as defined by section 8101(14), have not 
     met applicable State and local certification requirements 
     (including certification through State or local alternative 
     routes), or if such requirements have been waived, may apply 
     to the State educational agency for a waiver that would 
     permit the agency to use more than 25 percent of the funds it 
     receives under this section for activities described in 
     subparagraph (A)(iii) for the purpose of helping teachers to 
     become certified.
       ``(II) Approval.--If the State educational agency approves 
     the local educational agency's application for a waiver under 
     subclause (I), the local educational agency may use the funds 
     subject to the waiver for activities described in 
     subparagraph (A)(iii) that are needed to ensure that at least 
     90 percent of the teachers in elementary schools within the 
     State are certified.

       ``(C) Additional uses.--
       ``(i) In general.--A local educational agency that has 
     already reduced class size in the early grades to 18 or less 
     children (or has already reduced class size to a State or 
     local class size reduction goal that was in effect on the day 
     before the enactment of the Department of Education 
     Appropriations Act, 2000, if that State or local educational 
     agency goal is 20 or fewer children) may use funds received 
     under this section--

       ``(I) to make further class size reductions in grades 
     kindergarten through 3;
       ``(II) to reduce class size in other grades; or
       ``(III) to carry out activities to improve teacher quality, 
     including professional development.

       ``(ii) Professional development.--If a local educational 
     agency has already reduced class size in the early grades to 
     18 or fewer children and intends to use funds provided under 
     this Part to carry out professional development activities, 
     including activities to improve teacher quality, then the 
     State shall make the award under section 2035 to the local 
     educational agency.
       ``(c) Special Rule.--Notwithstanding subsection (b), if the 
     award to a local educational agency under section 2035 is 
     less than the starting salary for a new fully qualified 
     teacher teaching in a school served by that agency, and such 
     teacher is certified within the State (which may include 
     certification through State or local alternative routes), has 
     a bachelor's degree, and demonstrates the general knowledge, 
     teaching skills, and subject matter knowledge required to 
     teach in the content areas the teacher is assigned to provide 
     instruction, then the agency may use grant funds under this 
     part to--
       ``(1) help pay the salary of a full- or part-time teacher 
     hired to reduce class size, which may be in combination with 
     other Federal, State, or local funds; or
       ``(2) pay for activities described in subsection (b), which 
     may be related to teaching in smaller classes.

     ``SEC. 2038. PRIVATE SCHOOLS.

       ``If a local educational agency uses funds made available 
     under this Part for professional development activities, the 
     local educational agency shall ensure the equitable 
     participation of private nonprofit elementary schools and 
     secondary schools in such activities.

     ``SEC. 2039. TEACHER SALARIES AND BENEFITS.

       ``A local educational agency may use grant funds provided 
     under this part--
       ``(1) except as provided in paragraph (2), to increase the 
     salaries of, or provide benefits (other than participation in 
     professional development and enrichment programs) to, 
     teachers only if such teachers were hired under this part; 
     and
       ``(2) to pay the salaries of teachers hired under section 
     307 of the Department of Education Appropriations Act of 1999 
     who, not later than the beginning of the 2001-2002 school 
     year, are fully qualified, as defined in section 2002(1).

     ``SEC. 2040. STATE REPORT REQUIREMENTS.

       ``(a) Report on Activities.--A State educational agency 
     receiving funds under this part shall submit a report to the 
     Secretary providing information about the activities in the 
     State assisted under this part.
       ``(b) Report to Parents.--Each State educational agency and 
     local educational agency receiving funds under this part 
     shall publicly issue a report to parents of children who 
     attend schools assisted under this part describing--
       ``(1) the agency's progress in reducing class size;
       ``(2) the agency's progress in increasing the percentage of 
     classes in core academic areas that are taught by fully 
     qualified teachers who are certified within the State and 
     demonstrate competency in the content areas in which the 
     teachers provide instruction; and
       ``(3) the impact, if any, that hiring additional highly 
     qualified teachers and reducing class size has had on 
     increasing student academic achievement in schools served by 
     the agency.
       ``(c) Professional Qualifications Report.--Upon the request 
     of a parent of a child attending a school receiving 
     assistance under this part, such school shall provide the 
     parent with information regarding the professional 
     qualifications of their child's teacher.

     ``SEC. 2041. SUPPLEMENT NOT SUPPLANT.

       ``Each local educational agency receiving grant funds under 
     this part shall use such funds only to supplement, and not to 
     supplant, State and local funds that, in the absence of such 
     funds, would otherwise be spent for activities under this 
     part.

     ``SEC. 2042. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated

[[Page 7239]]

     $1,400,000,000 for fiscal year 2001, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.''.

TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND 
                        ALASKA NATIVE EDUCATION

     SEC. 301. LANGUAGE MINORITY STUDENTS.

       Title III (20 U.S.C. 6801 et seq.) is amended--
       (1) by amending the heading for title III to read as 
     follows:

 ``TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, 
                     AND ALASKA NATIVE EDUCATION'';

       (2) by repealing section 3101 (20 U.S.C. 6801) and part A 
     (20 U.S.C. 6811 et seq.); and
       (3) by inserting after the heading for title III (as 
     amended by paragraph (1)) the following:

                ``Subtitle A--Language Minority Students

     ``SEC. 3101. FINDINGS, POLICY, AND PURPOSE.

       ``(a) Findings.--Congress makes the following findings:
       ``(1)(A) Educating limited English proficient students is 
     an urgent goal for many local educational agencies, but that 
     goal is not being achieved.
       ``(B) Each year, 640,000 limited English proficient 
     students are not served by any sort of program targeted to 
     the students' unique needs.
       ``(C) In 1998, only 15 percent of local educational 
     agencies that applied for funding under enhancement grants 
     and comprehensive school grants received such funding.
       ``(2)(A) The school dropout rate for Hispanic students, the 
     largest group of limited English proficient students, is 
     approximately 25 percent, and is approximately 46 percent for 
     Hispanic students born outside of the United States.
       ``(B) A United States Department of Education report 
     regarding school dropout rates states that language 
     difficulty `may be a barrier to participation in United 
     States schools'.
       ``(C) Reading ability is a key predictor of graduation and 
     academic success.
       ``(3) Through fiscal year 1999, bilingual education 
     capacity and demonstration grants--
       ``(A) have spread funding too broadly to make an impact on 
     language instruction educational programs implemented by 
     State educational agencies and local educational agencies; 
     and
       ``(B) have lacked concrete performance measures.
       ``(4)(A) Since 1979, the number of limited English 
     proficient children in schools in the United States has 
     doubled to more than 3,000,000, and demographic trends 
     indicate the population of limited English proficient 
     children will continue to increase.
       ``(B) Language-minority Americans speak virtually all world 
     languages plus many that are indigenous to the United States.
       ``(C) The rich linguistic diversity language-minority 
     students bring to America's classrooms enhances the learning 
     environment for all students and should be valued for the 
     significant, positive impact such diversity has on the entire 
     school environment.
       ``(D) Parent and community participation in educational 
     language programs for limited English proficient students 
     contributes to program effectiveness.
       ``(E) The Federal Government, as reflected in title VI of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and 
     section 204(f) of the Equal Education Opportunities Act of 
     1974 (20 U.S.C. 1703), has a special and continuing 
     obligation to ensure that States and local educational 
     agencies take appropriate action to provide equal educational 
     opportunities to limited English proficient children and 
     youth.
       ``(F) The Federal Government also, as exemplified by 
     programs authorized under this title, has a special and 
     continuing obligation to assist States and local educational 
     agencies to develop the capacity to provide programs of 
     instruction that offer limited English proficient children 
     and youth equal educational opportunities.
       ``(5) Limited English proficient children and youth face a 
     number of challenges in receiving an education that will 
     enable them to participate fully in American society, 
     including--
       ``(A) disproportionate attendance in high-poverty schools, 
     as demonstrated by the fact that, in 1994, 75 percent of 
     limited English proficient students attended schools in which 
     as least half of all students were eligible for free or 
     reduced-price meals;
       ``(B) the limited ability of parents of such children and 
     youth to participate fully in the education of their children 
     because of the parents' own limited English proficiency;
       ``(C) a shortage of teachers and other staff who are 
     professionally trained and qualified to serve such children 
     and youth; and
       ``(D) lack of appropriate performance and assessment 
     standards that distinguish between language and academic 
     achievement so that there is equal accountability on the part 
     of State educational agencies and local educational agencies 
     for the achievement of limited English proficient students in 
     academic content while acquiring English language skills.
       ``(b) Policy.--Congress declares it to be the policy of the 
     United States that in order to ensure equal educational 
     opportunity for all children and youth, and to promote 
     educational excellence, the Federal Government should--
       ``(1) assist State educational agencies, local educational 
     agencies, and community-based organizations to build their 
     capacity to establish, implement, and sustain programs of 
     instruction and English language development for children and 
     youth of limited English proficiency;
       ``(2) hold State educational agencies and local educational 
     agencies accountable for increases in English proficiency and 
     core content knowledge among limited English proficient 
     students; and
       ``(3) promote parental and community participation in 
     limited English proficiency programs.
       ``(c)  Purpose.--The purpose of this subtitle is to assist 
     all limited English proficient students so that those 
     students can meet or exceed the State proficient standard 
     level for academic performance in core subject areas expected 
     of all elementary school and secondary school students, and 
     succeed in our Nation's society, by--
       ``(1) streamlining existing language instruction programs 
     into a performance-based grant for State and local 
     educational agencies to help limited English proficient 
     students become proficient in English;
       ``(2) increasing significantly the amount of Federal 
     assistance to local educational agencies serving such 
     students while requiring that State educational agencies and 
     local educational agencies demonstrate annual improvements in 
     the English proficiency of such students from the preceding 
     fiscal year; and
       ``(3) providing State educational agencies and local 
     educational agencies with the flexibility to implement 
     instructional programs based on scientific research that the 
     agencies believe to be the most effective for teaching 
     English.

     ``SEC. 3102. DEFINITIONS.

       ``Except as otherwise provided, for purposes of this 
     subtitle:
       ``(1) Limited English proficient student.--The term 
     `limited English proficient student' means an individual aged 
     5 through 17 enrolled in an elementary school or secondary 
     school--
       ``(A) who--
       ``(i) was not born in the United States or whose native 
     language is a language other than English; or
       ``(ii) is a Native American or Alaska Native, or who is a 
     native resident of the outlying areas and comes from an 
     environment where a language other than English has had a 
     significant impact on such individual's level of English 
     language proficiency; or
       ``(iii) is migratory and whose native language is other 
     than English, and who comes from an environment where a 
     language other than English is dominant; and
       ``(B) who has sufficient difficulty speaking, reading, 
     writing, or understanding the English language, and whose 
     difficulties may deny such individual the opportunity to 
     learn successfully in classrooms where the language of 
     instruction is English or to participate fully in our 
     society.
       ``(2) Language instruction educational program.--The term 
     `language instruction educational program' means an 
     instructional course in which a limited English proficient 
     student is placed for the purpose of becoming proficient in 
     the English language.
       ``(3) Specially qualified agency.--The term `specially 
     qualified agency' means a local educational agency in a State 
     that does not participate in a program under this subtitle 
     for a fiscal year.
       ``(4) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

     ``SEC. 3103. PROGRAM AUTHORIZED.

       ``(a) Grants Authorized.--The Secretary shall award grants, 
     from allotments under subsection (b), to each State having a 
     State plan approved under section 3105(c), to enable the 
     State to help limited English proficient students become 
     proficient in English.
       ``(b) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     section 3110 to carry out this subtitle for each fiscal year, 
     the Secretary shall reserve--
       ``(A) \1/2\ of 1 percent of such amount for payments to the 
     Secretary of the Interior for activities approved by the 
     Secretary, consistent with this subtitle, in schools operated 
     or supported by the Bureau of Indian Affairs, on the basis of 
     their respective needs for assistance under this subtitle; 
     and
       ``(B) \1/2\ of 1 percent of such amount for payments to 
     outlying areas, to be allotted in accordance with their 
     respective needs as determined by the Secretary, for 
     activities, approved by the Secretary, consistent with this 
     subtitle.
       ``(2) State allotments.--From the amount appropriated under 
     section 3110 for any of the fiscal years 2001 through 2005 
     that remains after making reservations under paragraph (1), 
     the Secretary shall allot to each State having a State plan 
     approved under section 3105(c) an amount that bears the same 
     relationship to the remainder as the number of limited 
     English proficient students in the State bears to the number 
     of limited English proficient students in all States.

[[Page 7240]]

       ``(3) Data.--For the purpose of determining the number of 
     limited English proficient students in a State and in all 
     States for each fiscal year, the Secretary shall use data 
     that will yield the most accurate, up-to-date, numbers of 
     such students, including--
       ``(A) data available from the Bureau of the Census; or
       ``(B) data submitted to the Secretary by the States to 
     determine the number of limited English proficient students 
     in a State and in all States.
       ``(4) Hold-harmless amounts.--For fiscal year 2001, and for 
     each of the 4 succeeding fiscal years, notwithstanding 
     paragraph (2), the total amount allotted to each State under 
     this subsection shall be not less than 85 percent of the 
     total amount the State was allotted under parts A and B of 
     title VII (as such title was in effect on the day preceding 
     the date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act).
       ``(c) Direct Awards to Specially Qualified Agencies.--
       ``(1) Nonparticipating state.--If a State educational 
     agency for a fiscal year elects not to participate in a 
     program under this subtitle, or does not have an application 
     approved under section 3105(c), a specially qualified agency 
     in such State desiring a grant under this subtitle for the 
     fiscal year shall apply directly to the Secretary to receive 
     a grant under this subsection.
       ``(2) Direct awards.--The Secretary may award, on a 
     competitive basis, the amount the State educational agency is 
     eligible to receive under subsection (b)(2) directly to 
     specially qualified agencies in the State desiring a grant 
     under paragraph (1) and having an application approved under 
     section 3105(c).
       ``(3) Administrative funds.--A specially qualified agency 
     that receives a direct grant under this subsection may use 
     not more than 1 percent of the grant funds for the 
     administrative costs of carrying out this subtitle in the 
     first year the agency receives a grant under this subsection 
     and 0.5 percent for such costs in the second and each 
     succeeding such year.

     ``SEC. 3104. WITHIN-STATE ALLOCATIONS.

       ``(a) Grant Awards.--Each State educational agency 
     receiving a grant under section 3103(a) shall use 95 percent 
     of the grant funds to award subgrants, from allotments under 
     subsection (b), to local educational agencies in the State to 
     carry out the activities described in section 3107.
       ``(b) Allotment Formula.--Each State educational agency 
     receiving a grant under this subtitle shall award a grant to 
     each local educational agency in the State having a plan 
     approved under section 3106 in an amount that bears the same 
     relationship to the amount of funds appropriated under 
     section 3110 as the school-age population of limited English 
     proficient students in schools served by the local 
     educational agency bears to the school-age population of 
     limited English proficient students in schools served by all 
     local educational agencies in the State.
       ``(c) Reservations.--
       ``(1) State activities.--Each State educational agency 
     receiving a grant under this subtitle may reserve not more 
     than 5 percent of the grant funds to carry out activities 
     described in the State plan submitted under section 3105.
       ``(2) Administrative expenses.--From the amount reserved 
     under paragraph (1), a State educational agency may use not 
     more than 2 percent for the planning costs and administrative 
     costs of carrying out the activities described in the State 
     plan and providing grants to local educational agencies.

     ``SEC. 3105. STATE AND SPECIALLY QUALIFIED AGENCY PLAN.

       ``(a) Plan Required.--Each State educational agency and 
     specially qualified agency desiring a grant under this 
     subtitle shall submit a plan to the Secretary at such time, 
     in such manner and accompanied by such information as the 
     Secretary may require.
       ``(b) Contents.--Each State plan submitted under subsection 
     (a) shall--
       ``(1) describe how the State or specially qualified agency 
     will--
       ``(A) establish standards and benchmarks for English 
     language development that are aligned with the State content 
     and student performance standards described in section 1111;
       ``(B) develop high-quality, annual assessments to measure 
     English language proficiency, including proficiency in the 4 
     recognized domains of speaking, listening, reading, and 
     writing; and
       ``(C) develop annual performance objectives, based on the 
     English language development standards described in 
     subparagraph (A), to raise the level of English proficiency 
     of each limited English proficient student;
       ``(2) contain an assurance that the State educational 
     agency or specially qualified agency consulted with local 
     educational agencies, education-related community groups and 
     nonprofit organizations, parents, teachers, school 
     administrators, and English language instruction specialists, 
     in the setting of the performance objectives;
       ``(3) describe how--
       ``(A) in the case of a State educational agency, the State 
     educational agency will hold local educational agencies and 
     elementary schools and secondary schools accountable for--
       ``(i) meeting the English proficiency performance 
     objectives described in section 3109; and
     ``(ii) making adequate yearly progress with limited English 
     proficient students in the subject areas of core content 
     knowledge as described in section 1111; and
       ``(B) in the case of a specially qualified agency, the 
     agency will hold elementary schools and secondary schools 
     accountable for meeting the English proficiency performance 
     objectives described in section 3109, and making adequate 
     yearly progress, including annual numerical goals for 
     improving the performance of limited English proficient 
     students on performance standards described in section 
     1111(b)(1)(D)(ii);
       ``(4) describe the activities for which assistance is 
     sought, and how the activities will increase the speed and 
     effectiveness with which students learn English;
       ``(5) in the case of a State educational agency, describe 
     how local educational agencies in the State will be given the 
     flexibility to teach English--
       ``(A) using language instruction curriculum that is 
     scientifically research based; and
       ``(B) in the manner the local educational agencies 
     determine to be the most effective; and
       ``(6) describe how--
       ``(A) in the case of a State educational agency, the State 
     educational agency will provide technical assistance to local 
     educational agencies and elementary schools and secondary 
     schools for the purposes of identifying and implementing 
     English language instruction educational programs and 
     curricula that are scientifically research based; and
       ``(B) in the case of a specially qualified agency, the 
     specially qualified agency will provide technical assistance 
     to elementary schools and secondary schools served by the 
     specially qualified agency for the purposes of identifying 
     and implementing English language instruction educational 
     programs and curricula that are scientifically research 
     based.
       ``(c) Approval.--The Secretary, using a peer review 
     process, shall approve a State plan or a specially qualified 
     agency plan if the plan meets the requirements of this 
     section, and holds reasonable promise of achieving the 
     purpose described in section 3101(c).
       ``(d) Duration of the Plan.--
       ``(1) In general.--Each State plan or specially qualified 
     agency plan shall--
       ``(A) remain in effect for the duration of the State's or 
     specially qualified agency's participation under this 
     subtitle; and;
       ``(B) be periodically reviewed and revised by the State or 
     specially qualified agency, as necessary, to reflect changes 
     in the State's or specially qualified agency's strategies and 
     programs under this subtitle.
       ``(2) Additional information.--If the State educational 
     agency or specially qualified agency makes significant 
     changes in its plan, such as the adoption of new performance 
     objectives or assessment measures, the State educational 
     agency or specially qualified agency shall submit such 
     information to the Secretary.
       ``(e) Consolidated Plan.--A State plan submitted under 
     subsection (a) may be submitted as part of a consolidated 
     plan under section 8302.
       ``(f) Secretary Assistance.--Pursuant to section 
     7004(a)(3), the Secretary shall provide assistance, if 
     required, in the development of English language development 
     standards and English language proficiency assessments.

     ``SEC. 3106. LOCAL PLANS.

       ``(a) Plan Required.--Each local educational agency 
     desiring a grant from the State educational agency under 
     section 3104(a) shall submit a plan to the State educational 
     agency at such time, in such manner, and accompanied by such 
     information as the State educational agency may require.
       ``(b) Contents.--Each local educational agency plan 
     submitted under subsection (a) shall--
       ``(1) describe how the local educational agency shall use 
     the grant funds to meet the English proficiency performance 
     objective described in section 3109;
       ``(2) describe how the local educational agency will hold 
     elementary schools and secondary schools accountable for 
     meeting the performance objectives;
       ``(3) contain an assurance that the local educational 
     agency consulted with elementary schools and secondary 
     schools, education-related community groups and nonprofit 
     organizations, institutions of higher education, parents, 
     language instruction teachers, school administrators, and 
     English language instruction specialists, in developing the 
     local educational agency plan; and
       ``(4) contain an assurance that the local educational 
     agency will use the disaggregated results of the student 
     assessments required under section 1111(b)(4), and other 
     measures or indicators available to the agency, to review 
     annually the progress of each school served by the agency 
     under this part and under title I to determine whether the 
     schools are making the annual progress necessary to ensure 
     that limited English proficient students attending the 
     schools will meet the proficient State content and student 
     performance standard within 10 years of

[[Page 7241]]

     enactment of the Public Education Reinvestment, Reinvention, 
     and Responsibility Act.

     ``SEC. 3107. USES OF FUNDS.

       ``(a) Administrative Expenses.--Each local educational 
     agency receiving a grant under section 3104 may use not more 
     than 1 percent of the grant funds for any fiscal year for the 
     cost of administering this subtitle.
       ``(b) Activities.--Each local educational agency receiving 
     grant funds under section 3104 shall use the grant funds that 
     are not used under subsection (a)--
       ``(1) to increase limited English proficient students' 
     proficiency in English by providing high-quality English 
     language instruction programs, such as bilingual education 
     programs and transitional education or English immersion 
     education programs, that are--
       ``(A) tied to scientifically based research demonstrating 
     the effectiveness of the programs in increasing English 
     proficiency; and
       ``(B) approved by the State educational agency;
       ``(2) to provide high-quality professional development 
     activities for teachers of limited English proficient 
     students that are--
       ``(A) designed to enhance the ability of such teachers to 
     understand and use curricula, assessment measures, and 
     instructional strategies for limited English proficient 
     students;
       ``(B) tied to scientifically based research demonstrating 
     the effectiveness of such programs in increasing students' 
     English proficiency or substantially increasing the knowledge 
     and teaching skills of such teachers; and
       ``(C) of sufficient intensity and duration (such as not to 
     include 1-day or short-term workshops and conferences) to 
     have a positive and lasting impact on the teacher's 
     performance in the classroom, except that this paragraph 
     shall not apply to an activity that is 1 component of a long-
     term, comprehensive professional development plan established 
     by a teacher and the teacher's supervisor based upon an 
     assessment of the teacher's and supervisor's needs, the 
     student's needs, and the needs of the local educational 
     agency;
       ``(3) to identify, acquire, and upgrade curricula, 
     instructional materials, educational software, and assessment 
     procedures; and
       ``(4) to provide parent and community participation 
     programs to improve English language instruction programs for 
     limited English proficient students.

     ``SEC. 3108. PROGRAM REQUIREMENTS.

       ``(a) Prohibition.--In carrying out this subtitle the 
     Secretary shall neither mandate nor preclude a particular 
     curricular or pedagogical approach to educating limited 
     English proficient students.
       ``(b) Teacher English Fluency.--Each local educational 
     agency receiving grant funds under section 3104 shall certify 
     to the State educational agency that all teachers in any 
     language instruction program for limited English proficient 
     students funded under this subtitle are fluent in English.

     ``SEC. 3109. PERFORMANCE OBJECTIVES.

       ``(a) In General.--Each State educational agency or 
     specifically qualified agency receiving a grant under this 
     subtitle shall develop annual numerical performance 
     objectives with respect to helping limited English proficient 
     students become proficient in English. The objectives shall 
     include incremental percentage increases for each fiscal year 
     a State receives a grant under this subtitle, including 
     increases in the number of limited English proficient 
     students demonstrating an increase in performance on annual 
     assessments in reading, writing, speaking, and listening 
     comprehension, from the preceding fiscal year.
       ``(b) Accountability.--Each State educational agency or 
     specially qualified agency receiving a grant under this 
     subtitle shall be held accountable for meeting the annual 
     numerical performance objectives under this subtitle and the 
     adequate yearly progress levels for limited English 
     proficient students under section 1111(b)(2)(B)(iv) and 
     (vii). Any State educational agency or specially qualified 
     agency that fails to meet the annual performance objectives 
     shall be subject to sanctions under section 7001.

     ``SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subtitle $1,000,000,000 for fiscal year 2001, and such sums 
     as may be necessary for each of the 4 succeeding fiscal 
     years.

     ``SEC. 3111. REGULATIONS AND NOTIFICATION.

       ``(a) Regulation Rule.--In developing regulations under 
     this subtitle, the Secretary shall consult with State 
     educational agencies, local educational agencies, 
     organizations representing limited English proficient 
     individuals, and organizations representing teachers and 
     other personnel involved in the education of limited English 
     proficient students.
       ``(b) Parental Notification.--
       ``(1) In general.--Each local educational agency shall 
     notify parents of a student participating in a language 
     instruction educational program under this subtitle of--
       ``(A) the student's level of English proficiency, how such 
     level was assessed, the status of the student's academic 
     achievement, and the implications of the student's 
     educational strengths and needs for age- and grade-
     appropriate academic attainment, promotion, and graduation;
       ``(B) what programs are available to meet the student's 
     educational strengths and needs, and how such programs differ 
     in content and instructional goals from other language 
     instruction educational programs and, in the case of a 
     student with a disability, how such program meets the 
     objectives of the individualized education program of such a 
     student; and
       ``(C) the instructional goals of the language instruction 
     educational program, and how the program will specifically 
     help the limited English proficient student learn English and 
     meet age-appropriate standards for grade promotion and 
     graduation, including--
       ``(i) the characteristics, benefits, and past academic 
     results of the language instruction educational program and 
     of instructional alternatives; and
       ``(ii) the reasons the student was identified as being in 
     need of a language instruction educational program.
       ``(2) Option to decline.--
       ``(A) In general.--Each parent described in paragraph (1) 
     shall also be informed that the parent has the option of 
     declining the enrollment of their children or youth in a 
     language instruction educational program, and shall be given 
     an opportunity to decline such enrollment if the parent so 
     chooses.
       ``(B) Obligations.--A local educational agency shall not be 
     relieved of any of the agency's obligations under title VI of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) if a 
     parent chooses not to enroll their child in a language 
     instruction educational program.
       ``(3) Receipt of information.--A parent described in 
     paragraph (1) shall receive, in a manner and form 
     understandable to the parent including, if necessary and to 
     the extent feasible, in the native language of the parent, 
     the information required by this subsection. At a minimum, 
     the parent shall receive--
       ``(A) timely information about projects funded under this 
     subtitle; and
       ``(B) if the parent of a participating child so desires, 
     notice of opportunities for regular meetings for the purpose 
     of formulating and responding to recommendations from parents 
     of children assisted under this subtitle.
       ``(4) Special rule.--A student shall not be admitted to, or 
     excluded from, any Federally assisted language instruction 
     educational program solely on the basis of a surname or 
     language-minority status.
       ``(5) Limitations on conditions.--Nothing in this subtitle 
     shall be construed to authorize an officer or employee of the 
     Federal Government to mandate, direct, or control a State's, 
     local educational agency's, elementary school's, or secondary 
     school's specific challenging English language development 
     standards or assessments, curricula, or program of 
     instruction, as a condition of eligibility to receive grant 
     funds under this subtitle.''.

     SEC. 302. EMERGENCY IMMIGRANT EDUCATION PROGRAM.

       (a) Repeals, Transfers, and Redesignations.--Title III (20 
     U.S.C. 6801 et seq.) is further amended--
       (1) by repealing part B (20 U.S.C. 6891 et seq.), part C 
     (20 U.S.C. 6921 et seq.), part D (20 U.S.C. 6951 et seq.), 
     and part E (20 U.S.C. 6971 et seq. );
       (2) by transferring part C of title VII (20 U.S.C. 7541 et 
     seq.) to title III and inserting such part after subtitle A 
     (as inserted by section 301(3));
       (3) by redesignating the heading for part C of title VII 
     (as transferred by paragraph (2)) as the heading for subtitle 
     B, and redesignating accordingly the references to such part 
     as the references to such subtitle; and
       (4) by redesignating section 7301 through 7309 (20 U.S.C. 
     7541, 7549) (as transferred by paragraph (2)) as sections 
     3201 through 3209, respectively, and redesignating 
     accordingly the references to such sections.
       (b) Amendments.--Subtitle B of title III (as so transferred 
     and redesignated) is amended--
       (1) in section 3205(a)(2) (as redesignated by subsection 
     (a)(4)), by striking ``the Goals 2000: Educate America 
     Act,''; and
       (2) in section 3209 (as redesignated by subsection (a)(4)), 
     by striking ``$100,000,000'' and all that follows through 
     ``necessary for'' and inserting ``such sums as may be 
     necessary for fiscal year 2001 and''.

     SEC. 303. INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE 
                   EDUCATION.

       (a) Repeals, Transfers, and Redesignations.--Title III (20 
     U.S.C 6801 et seq.) is further amended--
       (1) by transferring title IX (20 U.S.C. 7801 et seq.) to 
     title III and inserting such title after subtitle B (as 
     inserted by section 302(a)(2));
       (2) by redesignating the heading for title IX (as 
     transferred by paragraph (1)) as the heading for subtitle C, 
     and redesignating accordingly the references to such title as 
     the references to such subtitle;
       (3) by redesignating sections 9101 and 9102 (20 U.S.C. 
     7801, 7802) (as transferred by paragraph (1)) as sections 
     3301 and 3302, respectively, and redesignating accordingly 
     the references to such sections;
       (4) by redesignating sections 9111 through 9118 (20 U.S.C. 
     7811, 7818) (as transferred by paragraph (1)) as sections 
     3311 through 3318, respectively, and redesignating 
     accordingly the references to such sections;

[[Page 7242]]

       (5) by redesignating sections 9121 through 9125 (20 U.S.C. 
     7831, 7835) (as transferred by paragraph (1)) as sections 
     3321 through 3325, and redesignating accordingly the 
     references to such section;
       (6) by redesignating sections 9131 and 9141 (20 U.S.C. 
     7851, 7861) (as transferred by paragraph (1)) as sections 
     3331 and 3341, respectively, and redesignating accordingly 
     the references to such sections;
       (7) by redesignating sections 9151 through 9154 (20 U.S.C. 
     7871, 7874) (as transferred by paragraph (1)) as sections 
     3351 through 3354, respectively, and redesignating 
     accordingly the references to such sections;
       (8) by redesignating sections 9161 and 9162 (20 U.S.C. 
     7881, 7882) (as transferred by paragraph (1)) as sections 
     3361 and 3362, respectively, and redesignating accordingly 
     the references to such sections;
       (9) by redesignating sections 9201 through 9212 (20 U.S.C. 
     7901, 7912) (as transferred by paragraph (1)) as sections 
     3401 through 3412, respectively, and redesignating 
     accordingly the references to such sections; and
       (10) by redesignating sections 9301 through 9308 (20 U.S.C. 
     7931, 7938) (as transferred by paragraph (1)) as sections 
     3501 through 3508, and redesignating accordingly the 
     references to such sections.
       (b) Amendments.--Subtitle C of title III (as so transferred 
     and redesignated) is amended--
       (1) by amending section 3314(b)(2)(A) (as redesignated by 
     subsection (a)(4)) to read as follows:
       ``(2)(A) is consistent with, and promotes the goals in, the 
     State and local improvement plans under sections 1111 and 
     1112'';
       (2) by amending section 3325(e) (as redesignated by 
     subsection (a)(5)) to read as follows:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subpart for fiscal year 2001 and each of 
     the 4 succeeding years.'';
       (3) in section 3361(4)(E) (as redesignated by subsection 
     (a)(8)), by striking ``the Act entitled the `Improving 
     America's Schools Act of 1994''' and inserting ``the Public 
     Education Reinvestment, Reinvention, and Responsibility 
     Act'';
       (4) by amending section 3362 (as redesignated by subsection 
     (a)(8)) to read as follows:

     ``SEC. 3262. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out subparts 1 through 5 of 
     this part, there are authorized to be appropriated to the 
     Department of Education such sums as may be necessary for 
     fiscal year 2001 and each of the 4 succeeding years.'';
       (5) in section 3404 (as redesignated by subsection 
     (a)(9))--
       (A) in subsection (i), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act''; and
       (B) in subsection (j), by striking ``$500,000 for fiscal 
     year 1995, and such sums as may be necessary'' and inserting 
     ``such sums as may be necessary for fiscal year 2001, and'';
       (6) in section 3405(c) (as redesignated by subsection 
     (a)(9)), by striking ``$6,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (7) in section 3406(e) (as redesignated by subsection 
     (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (8) in section 3407(e) (as redesignated by subsection 
     (a)(9)), by striking ``$1,500,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (9) in section 3408(c) (as redesignated by subsection 
     (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (10) in section 3409(d) (as redesignated by subsection 
     (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (11) in section 3410(d) (as redesignated by subsection 
     (a)(9)), by striking ``$1,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (12) in section 3504(c) (as redesignated by subsection 
     (a)(10)), by striking ``$5,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and'';
       (13) in section 3505(e) (as redesignated by subsection 
     (a)(10)), by striking ``$2,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and''; and
       (14) in section 3506(d) (as redesignated by subsection 
     (a)(10)), by striking ``$1,000,000 for fiscal year 1995, and 
     such sums as may be necessary'' and inserting ``such sums as 
     may be necessary for fiscal year 2001, and''.

                     TITLE IV--PUBLIC SCHOOL CHOICE

     SEC. 401. PUBLIC SCHOOL CHOICE.

       (a) Magnet Schools Amendments.--Section 5113(a) (20 U.S.C. 
     7213(a)) is amended--
       (1) by striking ``$120,000,000'' and inserting 
     ``$130,000,000''; and
       (2) by striking ``1995'' and inserting ``2001''.
       (b) Charter Schools Amendments.--
       (1) Parallel accountability.--Section 10302 (20 U.S.C. 
     8062) is amended by adding at the end the following:
       ``(g) Parallel Accountability.--Each State educational 
     agency receiving a grant under this part shall hold charter 
     schools assisted under this part accountable for adequate 
     yearly progress for improving student performance under title 
     I and as established in the school's charter, including the 
     use of the same standards and assessments as established 
     under title I.''.
       (2) Authorization of appropriations.--Section 10311 (20 
     U.S.C. 8067) is amended.--
       (A) by striking ``$100,000,000'' and inserting 
     ``$200,000,000''; and
       (B) by striking ``1999'' and inserting ``2001''.
       (c) Repeals, Transfers and Redesignations.--The Act (20 
     U.S.C. 6301 et seq.) is amended--
       (1) by amending the heading for title IV (20 U.S.C. 7101 et 
     seq.) to read as follows:

                  ``TITLE IV--PUBLIC SCHOOL CHOICE'';

       (2) by amending section 4001 to read as follows:

     ``SEC. 4001. FINDINGS, POLICY, AND PURPOSE.

       ``(a) Findings.--Congress makes the following findings:
       ``(1)(A) Charter schools and magnet schools are an integral 
     part of the educational system in the United States.
       ``(1)(B) Thirty-four States and the District of Columbia 
     have established charter schools.
       ``(1)(C) Magnet schools have been established throughout 
     the United States.
       ``(1)(D) A Department of Education evaluation of charter 
     schools shows that 59 percent of charter schools reported 
     that lack of start-up funds posed a difficult or very 
     difficult challenge for the school.
       ``(2) State educational agencies and local educational 
     agencies should hold all schools accountable for the improved 
     performance of all students, including students attending 
     charter schools and magnet schools, under State standards and 
     student assessment measures.
       ``(3) School report cards constitute the key informational 
     component used by parents for effective public school choice.
       ``(b) Policy.--Congress declares it to be the policy of the 
     United States--
       ``(1) to support and stimulate improved public school 
     performance through increased public elementary school and 
     secondary school competition and increased Federal financial 
     assistance; and
       ``(2) to provide parents with more choices among public 
     school options.
       ``(c) Purposes.--The purposes of this title are as follows:
       ``(1) To consolidate public school choice programs into 1 
     title.
       ``(2) To increase Federal assistance for magnet schools and 
     charter schools.
       ``(3) To help parents make better and more informed choices 
     by--
       ``(A) providing continued support and financial assistance 
     for magnet schools;
       ``(B) providing continued support and expansion of charter 
     schools and charter school districts; and
       ``(C) providing financial assistance to States and local 
     educational agencies for the development of local educational 
     agency and school report cards.'';
       (3) by repealing sections 4002 through 4004 (20 U.S.C. 
     7102, 7104), and part A (20 U.S.C. 7111 et seq.), of title 
     IV;
       (4) by transferring part A of title V (20 U.S.C. 7201 et 
     seq.) (as amended by subsection (a)) to title IV and 
     inserting such part A after section 4001;
       (5) by redesignating sections 5101 through 5113 (20 U.S.C. 
     7201, 7213) (as transferred by paragraph (4)) as sections 
     4101 through 4113, respectively, and by redesignating 
     accordingly the references to such sections in part A of 
     title IV (as so transferred);
       (6) by transferring part C of title X (20 U.S.C. 8061 et 
     seq.) (as amended by subsection (b)) to title IV and 
     inserting such part C after part A of title IV (as 
     transferred by paragraph (4));
       (7) by redesignating part C of title IV (as transferred by 
     paragraph (6)) as part B of title IV; and
       (8) by redesignating sections 10301 through 10311 (20 
     U.S.C. 8061, 8067) (as transferred by paragraph (6)) as 
     sections 4201 through 4211, respectively, and by 
     redesignating accordingly the references to such sections in 
     such part B of title IV (as so transferred and redesignated).

     SEC. 402. DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS; 
                   REPORT CARDS.

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

         ``PART C--DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS

     ``SEC. 4301. GRANTS AUTHORIZED.

       ``(a) In General.--From amounts made available to carry out 
     this part for a fiscal year under section 4305, and not 
     reserved under subsection (b), the Secretary is authorized to 
     award grants, on a competitive basis, to local educational 
     agencies to enable the local educational agencies to develop 
     local public school choice programs.
       ``(b) Reservation for Evaluation, Technical Assistance, and 
     Dissemination.--From the amount appropriated under section 
     4305 for any fiscal year, the Secretary may reserve not more 
     than 5 percent to carry out evaluations under subsection (c), 
     to provide

[[Page 7243]]

     technical assistance, and to disseminate information.
       ``(c) Evaluations.--The Secretary may use funds reserved 
     under subsection (b) to carry out 1 or more evaluations of 
     programs assisted under this part, which shall, at a minimum, 
     address--
       ``(1) how, and the extent to which, the programs supported 
     with funds under this part promote educational equity and 
     excellence; and
       ``(2) the extent to which public schools of choice 
     supported with funds under this part are--
       ``(A) held accountable to the public;
       ``(B) effective in improving public education; and
       ``(C) open and accessible to all students.
       ``(b) Duration.--Grants under this part may be awarded for 
     a period not to exceed 3 years.

     ``SEC. 4302. DEFINITION OF HIGH-POVERTY LOCAL EDUCATIONAL 
                   AGENCY.

       ``In this part, the term `high-poverty local educational 
     agency' means a local educational agency in which the 
     percentage of children, ages 5 to 17, from families with 
     incomes below the poverty line (as defined by the Office of 
     Management and Budget and revised annually in accordance with 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2))) applicable to a family of the size involved 
     for the most recent fiscal year for which satisfactory data 
     are available is 20 percent or greater.

     ``SEC. 4303. USES OF FUNDS.

       ``(a) In General.--
       ``(1) Public school choice.--Funds under this part may be 
     used to demonstrate, develop, implement, evaluate, and 
     disseminate information on innovative approaches to promote 
     public school choice, including the design and development of 
     new public school choice options, the development of new 
     strategies for overcoming barriers to effective public school 
     choice, and the design and development of public school 
     choice systems that promote high standards for all students 
     and the continuous improvement of all public schools.
       ``(2) Innovative approaches.--Such approaches at the 
     school, local educational agency, and State levels may 
     include--
       ``(A) inter-district approaches to public school choice, 
     including approaches that increase equal access to high-
     quality educational programs and diversity in schools;
       ``(B) public elementary and secondary programs that involve 
     partnerships with institutions of higher education and that 
     are located on the campuses of those institutions;
       ``(C) programs that allow students in public secondary 
     schools to enroll in postsecondary courses and to receive 
     both secondary and postsecondary academic credit;
       ``(D) worksite satellite schools, in which State or local 
     educational agencies form partnerships with public or private 
     employers, to create public schools at parents' places of 
     employment; and
       ``(E) approaches to school desegregation that provide 
     students and parents choice through strategies other than 
     magnet schools.
       ``(b) Limitations.--Funds under this part--
       ``(1) shall supplement, and not supplant, non-Federal funds 
     expended for existing public school choice programs; and
       ``(2) may be used for providing transportation services or 
     costs, except that not more than 10 percent of the funds 
     received under this part shall be used by the local 
     educational agency to provide such services or costs.

     ``SEC. 4304. GRANT APPLICATION; PRIORITIES.

       ``(a) Application Required.--A State or local educational 
     agency desiring to receive a grant under this part shall 
     submit an application to the Secretary.
       ``(b) Application Contents.--Each application shall 
     include--
       ``(1) a description of the program for which funds are 
     sought and the goals for such program;
       ``(2) a description of how the program funded under this 
     part will be coordinated with, and will complement and 
     enhance, programs under other related Federal and non-Federal 
     projects;
       ``(3) if the program includes partners, the name of each 
     partner and a description of the partner's responsibilities;
       ``(4) a description of the policies and procedures the 
     applicant will use to ensure--
       ``(A) its accountability for results, including its goals 
     and performance indicators; and
       ``(B) that the program is open and accessible to, and will 
     promote high academic standards for, all students; and
       ``(5) such other information as the Secretary may require.
       ``(c) Priorities.--
       ``(1) High-poverty agencies.--The Secretary shall give a 
     priority to applications for projects that would serve high-
     poverty local educational agencies.
       ``(2) Partnerships.--The Secretary may give a priority to 
     applications demonstrating that the applicant will carry out 
     the applicant's project in partnership with 1 or more public 
     and private agencies, organizations, and institutions, 
     including institutions of higher education and public and 
     private employers.

     ``SEC. 4305. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     part $100,000,000 for fiscal year 2001 and such sums as may 
     be necessary for each of the 4 succeeding fiscal years.

                         ``PART D--REPORT CARDS

     ``SEC. 4401. REPORT CARDS.

       ``(a) Grants Authorized.--The Secretary shall award a 
     grant, from allotments under subsection (b), to each State 
     having a State report card meeting the requirements described 
     in subsection (g), to enable the State annually to publish 
     report cards for each elementary school and secondary school 
     that receives funding under this Act and is served by the 
     State.
       ``(b) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     subsection (e) to carry out this part for each fiscal year, 
     the Secretary shall reserve--
       ``(A) \1/2\ of 1 percent of such amount for payments to the 
     Secretary of the Interior for activities approved by the 
     Secretary, consistent with this part, in schools operated or 
     supported by the Bureau of Indian Affairs, on the basis of 
     their respective needs for assistance under this part; and
       ``(B) \1/2\ of 1 percent of such amount for payments to 
     outlying areas, to be allotted in accordance with their 
     respective needs for assistance under this part, as 
     determined by the Secretary, for activities, approved by the 
     Secretary, consistent with this part.
       ``(2) State allotments.--From the amount appropriated under 
     subsection (e) for a fiscal year and remaining after the 
     Secretary makes reservations under paragraph (1), the 
     Secretary shall allot to each State having a State report 
     card meeting the requirements described in subsection (g) an 
     amount that bears the same relationship to the remainder as 
     the number of public school students enrolled in elementary 
     schools and secondary schools in the State bears to the 
     number of such students so enrolled in all States.
       ``(c) Within-State Allocations.--Each State educational 
     agency receiving a grant under subsection (a) shall allocate 
     the grant funds that remain after making the reservation 
     described in subsection (d) to each local educational agency 
     in the State in an amount that bears the same relationship to 
     the remainder as the number of public school students 
     enrolled in elementary schools and secondary schools served 
     by the local educational agency bears to the number of such 
     students so enrolled in all local educational agencies within 
     the State.
       ``(d) State Reservation of Funds.--Each State educational 
     agency receiving a grant under subsection (a) may reserve--
       ``(1) not more than 10 percent of the grant funds to carry 
     out activities described under subsections (f) and (g), and 
     (i)(1) for fiscal year 2001; and
       ``(2) not more than 5 percent of the grant funds to carry 
     out activities described under subsections (f) and (g), and 
     (i)(1) for fiscal year 2002 and each of the 3 succeeding 
     fiscal years.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part 
     $5,000,000 for fiscal year 2001 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(f) Annual State Report.--
       ``(1) Reports required.--
       ``(A) In general.--Except as provided in paragraph (3), not 
     later than the beginning of the 2001-2002 school year, a 
     State that receives assistance under this Act shall prepare 
     and disseminate an annual report on all public elementary 
     schools and secondary schools within the State that receive 
     funds under this Act.
       ``(B) State report cards on education.--In the case of a 
     State that publishes State report cards on education, the 
     State shall include in such report cards the information 
     described in subsection (g).
       ``(C) Report cards on all public schools.--In the case of a 
     State that publishes a report card on all public elementary 
     schools and secondary schools in the State, the State shall 
     include, at a minimum, the information described in 
     subsection (g) for all public schools that receive funds 
     under this Act.
       ``(2) Implementation; requirements.--
       ``(A) Implementation.--The State shall ensure 
     implementation at all levels of the report cards described in 
     paragraph (1).
       ``(B) Requirements.--Annual report cards under this part 
     shall be--
       ``(i) concise; and
       ``(ii) presented in a format and manner that parents can 
     understand including, to the extent practicable, in a 
     language the parents can understand.
       ``(3) Publication through other means.--In the event that 
     the State provides no such report card, the State shall, not 
     later than the beginning of the 2001-2002 school year, 
     publicly report the information described in subsection (g) 
     for all public schools that receive funds under this Act.
       ``(g) Content of Annual State Reports.--
       ``(1) Required information.--Each State described in 
     subsection (f)(1)(A), at a minimum, shall include in the 
     annual State report information on each local educational 
     agency and public school that receives funds under this Act, 
     including information regarding--
       ``(A) student performance on statewide assessments for the 
     year for which the annual

[[Page 7244]]

     State report is made, and the preceding year, in at least 
     English language arts and mathematics, including--
       ``(i) a comparison of the proportions of students who 
     performed at the basic, proficient, and advanced levels in 
     each subject area, for each grade level at which assessments 
     are required under title I, with proportions in each of the 
     same 4 levels at the same grade levels in the previous school 
     year;
       ``(ii) a statement on the 3-year trend in the percentage of 
     students performing at the basic, proficient, and advanced 
     levels in each subject area, for each grade level for which 
     assessments are required under title I; and
       ``(iii) a statement of the percentage of students not 
     tested and a listing of categories of the reasons why such 
     students were not tested;
       ``(B) student retention rates in grades, the number of 
     students completing advanced placement courses, and 4-year 
     graduation rates;
       ``(C) the professional qualifications of teachers in the 
     aggregate, including the percentage of teachers teaching with 
     emergency or provisional credentials, the percentage of class 
     sections not taught by fully qualified teachers, and the 
     percentage of teachers who are fully qualified; and
       ``(D) the professional qualifications of paraprofessionals 
     in the aggregate, the number of paraprofessionals in the 
     aggregate, and the ratio of paraprofessionals to teachers in 
     the classroom.
       ``(2) Student data.--Student data in each report shall 
     contain disaggregated results for the following categories:
       ``(A) Racial and ethnic groups.
       ``(B) Gender.
       ``(C) Economically disadvantaged students, as compared to 
     students who are not economically disadvantaged.
       ``(D) Students with limited English proficiency, as 
     compared to students who are proficient in English.
       ``(3) Optional information.--A State may include in the 
     State annual report any other information the State 
     determines appropriate to reflect school quality and school 
     achievement, including by grade level information on average 
     class size and information on school safety, such as the 
     incidence of school violence and drug and alcohol abuse, and 
     the incidence of student suspensions and expulsions.
       ``(4) Waiver.--The Secretary may grant a waiver to a State 
     seeking a waiver of the requirements of this subsection if 
     the State demonstrates to the Secretary that--
       ``(A) the content of existing State report cards meets the 
     goals of this part; and
       ``(B) the State is taking identifiable steps to meet the 
     requirements of this subsection.
       ``(h) Local Educational Agency and School Report Cards.--
       ``(1) Report required.--
       ``(A) In general.--The State shall ensure that each local 
     educational agency, public elementary school, or public 
     secondary school that receives funds under this Act, collects 
     appropriate data and publishes an annual report card 
     consistent with this subsection.
       ``(B) Required information.--Each local educational agency, 
     elementary school, and secondary school described in 
     subparagraph (A), at a minimum, shall include in its annual 
     report card--
       ``(i) the information described in subsections (g)(1) and 
     (2) for each local educational agency and school;
       ``(ii) in the case of a local educational agency--

       ``(I) information regarding the number and percentage of 
     schools identified for school improvement, including schools 
     identified under section 1116 of this Act, served by the 
     local educational agency;
       ``(II) information on the 3-year trend in the number and 
     percentage of elementary schools and secondary schools 
     identified for school improvement; and
       ``(III) information that shows how students in the schools 
     served by the local educational agency perform on the 
     statewide assessment compared to students in the State as a 
     whole;

       ``(iii) in the case of an elementary school or a secondary 
     school--

       ``(I) information regarding whether the school has been 
     identified for school improvement; and
       ``(II) information that shows how the school's students 
     performed on the statewide assessment compared to students in 
     schools served by the same local educational agency and to 
     all students in the State; and

       ``(iii) other appropriate information, whether or not the 
     information is included in the annual State report.
       ``(2) Special rule.--A local educational agency that issues 
     report cards for all public elementary schools and secondary 
     schools served by the agency shall include, at a minimum, the 
     information described in subsection (g) for all public 
     schools that receive funds under this Act.
       ``(i) Dissemination and Accessibility of Reports and Report 
     Cards.--
       ``(1) State reports.--State annual reports under subsection 
     (g) shall be disseminated to all elementary schools, 
     secondary schools, and local educational agencies in the 
     State, and made broadly available to the public through means 
     such as posting on the Internet and distribution to the 
     media, and through public agencies.
       ``(2) Local report cards.--Local educational agency report 
     cards under subsection (h) shall be disseminated to all 
     elementary schools and secondary schools served by the local 
     educational agency and to all parents of students attending 
     such schools, and made broadly available to the public 
     through means such as posting on the Internet and 
     distribution to the media, and through public agencies.
       ``(3) School report cards.--Elementary school and secondary 
     school report cards under subsection (h) shall be 
     disseminated to all parents of students attending that 
     school, and made broadly available to the public, through 
     means such as posting on the Internet and distribution to the 
     media, and through public agencies.
       ``(j) Parents Right-to-Know.--
       ``(1) Qualifications.--A local educational agency that 
     receives funds part A of title I or part A of title II shall 
     provide, upon request, in an understandable and uniform 
     format, to any parent of a student attending any school 
     receiving funds under part A of title I or part A of title 
     II, information regarding the professional qualifications of 
     the student's classroom teachers, including, at a minimum--
       ``(A) whether the teacher has met State certification or 
     licensing criteria for the grade levels and subject areas in 
     which the teacher provides instruction;
       ``(B) whether the teacher is teaching under emergency or 
     other provisional status through which State certification or 
     licensing criteria are waived;
       ``(C) the baccalaureate degree major of the teacher, any 
     other graduate certification or degree held by the teacher, 
     and the field of discipline of each such certification or 
     degree; and
       ``(D) whether the student is provided services by 
     paraprofessionals, and the qualifications of any such 
     paraprofessional.
       ``(2) Additional information.--In addition to the 
     information that parents may request under paragraph (1), and 
     the information provided in report cards under this part, a 
     school that receives funds under part A of title I or part A 
     of title II shall provide, to the extent practicable, to each 
     individual parent or guardian--
       ``(A) information on the level of performance of the 
     individual student, for whom they are the parent or guardian, 
     in each of the State assessments as required under part A of 
     title I; and
       ``(B) timely notice that the student, for whom they are the 
     parent or guardian, was assigned or taught for 2 or more 
     consecutive weeks by a substitute teacher or by a teacher not 
     fully qualified.
       ``(k) Coordination of State Plan Content.--A State shall 
     include in its plan under part A of title I or part A of 
     title II, an assurance that the State has in effect a policy 
     that meets the requirements of this section.
       ``(l) Privacy.--Information collected under this section 
     shall be collected and disseminated in a manner that protects 
     the privacy of individuals.
       ``(m) Definition.--The term `State' means each of the 
     several States of the United States, the District of 
     Columbia, and the Commonwealth of Puerto Rico.

                          TITLE V--IMPACT AID

     SEC. 501. IMPACT AID.

       (a) Section 8014 (20 U.S.C. 7714) is amended--
       (1) in subsection (a)--
       (A) by striking ``$16,750,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for'';
       (2) in subsection (b)--
       (A) by striking ``$775,000,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for'';
       (3) in subsection (c)--
       (A) by striking ``$45,000,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for'';
       (4) in subsection (d)--
       (A) by striking ``$2,000,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for'';
       (5) in subsection (e)--
       (A) by striking ``$25,000,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for'';
       (6) in subsection (f)--
       (A) by striking ``$2,000,000 for fiscal year 1995 and''; 
     and
       (B) by inserting ``fiscal year 2001 and'' after ``necessary 
     for''; and
       (7) in subsection (g), by striking ``1998'' and inserting 
     ``2001''.
       (b) Repeals, Transfers, and Redesignations.--The Act (20 
     U.S.C. 6301 et seq.) is amended--
       (1) by repealing title V (20 U.S.C. 7201 et seq.);
       (2) by redesignating title VIII (20 U.S.C. 7701 et seq.) 
     (as amended by subsection (a)) as title V, and transferring 
     the title to follow title IV (as amended by section 402);
       (3) by redesignating references to title VIII as references 
     to title V (as redesignated and transferred by paragraph 
     (2)); and

[[Page 7245]]

       (4) by redesignating sections 8001 through 8014 (20 U.S.C. 
     7701, 7714) (as transferred by paragraph (2)) as sections 
     5001 through 5014, respectively, and redesignating 
     accordingly the references to such sections.

      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

     SEC. 601. HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES.

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

     ``TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

     ``SEC. 6001. FINDINGS, POLICY, AND PURPOSE.

       ``(a) Findings.--Congress makes the following findings:
       ``(1)(A) Congress embraces the view that educators most 
     familiar with schools, including school superintendents, 
     principals, teachers, and school support personnel, have a 
     critical role in knowing what is needed and how best to meet 
     the educational needs of students.
       ``(B) Local educational agencies should therefore have 
     primary responsibility for deciding how to implement funds.
       ``(2)(A) Since the Elementary and Secondary Education Act 
     was first authorized in 1965, the Federal Government has 
     created numerous grant programs, each of which was created to 
     address 1 among the myriad challenges and problems facing 
     education.
       ``(B) Only a few of the Federal grant programs established 
     before the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act can be tied 
     to significant quantitative results.
       ``(C) Because Federal education dollars are distributed 
     through a patchwork of programs, with each program having its 
     own set of requirements and restrictions, local educational 
     agencies and schools have found it difficult to leverage 
     funds for maximum impact.
       ``(D) In many cases, Federal education dollars distributed 
     through competitive grant programs are too diffused to 
     provide a true impact at the school level.
       ``(E) As a result of the Federal elementary and secondary 
     education policies in place before the date of enactment of 
     the Public Education Reinvestment, Reinvention, and 
     Responsibility Act, the focus of Federal, State, and local 
     educational agencies has been diverted from comprehensive 
     student achievement to administrative compliance.
       ``(3)(A) Every elementary school and secondary school 
     should provide a drug- and violence-free learning 
     environment.
       ``(B) The widespread illegal use of alcohol and drugs among 
     the Nation's secondary school students, and increasingly 
     among elementary school students, constitutes a grave threat 
     to students' physical and mental well-being, and 
     significantly impedes the learning process.
       ``(C) Drug and violence prevention programs are essential 
     components of a comprehensive strategy to promote school 
     safety, youth development, and positive school outcomes, and 
     reduce the demand for and illegal use of alcohol, tobacco, 
     and drugs throughout the Nation.
       ``(D) Schools, local organizations, parents, students, and 
     communities throughout the Nation have a special 
     responsibility to work together to combat the continuing 
     epidemic of violence and illegal drug use, and should measure 
     the success of programs established to address this epidemic 
     against clearly defined goals and objectives.
       ``(E) Drug and violence prevention programs are most 
     effective when implemented within a research-based, drug and 
     violence prevention framework of proven effectiveness.
       ``(F) Substance abuse and violence are intricately related, 
     and must be dealt with in a holistic manner.
       ``(4)(A) Technology can produce far greater opportunities 
     for all students to meet high learning standards, promote 
     efficiency and effectiveness in education, and help 
     immediately and dramatically reform our Nation's educational 
     system.
       ``(B) Because most Federal and State educational technology 
     programs have focused on acquiring educational technologies, 
     rather than emphasizing the utilization of those technologies 
     in the classroom and the training and infrastructure required 
     efficiently to support the technologies, the full potential 
     of educational technology has rarely been realized.
       ``(C) The effective use of technology in education has been 
     inhibited by the inability of many State educational agencies 
     and local educational agencies to invest in and support 
     needed technologies, and to obtain sufficient resources to 
     seek expert technical assistance in developing high-quality 
     professional development activities for teachers and keeping 
     pace with the rapid technological advances.
       ``(D) To remain competitive in the global economy, which is 
     increasingly reliant on a workforce that is comfortable with 
     technology and able to integrate rapid technological changes 
     into production processes, it is imperative that our Nation 
     maintain a work-ready labor force.
       ``(b) Policy.--Congress declares it to be the policy of the 
     United States--
       ``(1) to facilitate significant innovation in elementary 
     school and secondary school education programs;
       ``(2) to enrich the learning environment of students;
       ``(3) to provide a safe learning environment for all 
     students;
       ``(3) to ensure that all students are technologically 
     literate; and
       ``(4) to assist State educational agencies and local 
     educational agencies in building the agencies' capacity to 
     establish, implement, and sustain innovative programs for 
     public elementary and secondary school students.
       ``(c) Purposes.--The purposes of this title are as follows:
       ``(1) To provide supplementary assistance for school 
     improvement to elementary schools, secondary schools, and 
     local educational agencies--
       ``(A) that have been or are at risk of being identified as 
     being in need of improvement, as defined in section 1116 (c) 
     and (d), to carry out activities (as described in such 
     schools' or agencies' improvement plans developed under such 
     section) that are designed to remedy the circumstances that 
     caused such schools or agencies to be identified as in need 
     of improvement; or
       ``(B) to improve core content curriculum and instructional 
     practices and materials in core subject areas to ensure that 
     all students are at the proficient standard level within 10 
     years of the date of enactment of the Public Education 
     Reinvestment, Reinvention, and Responsibility Act.
       ``(2) To provide assistance to local educational agencies 
     and schools for innovative programs and activities that will 
     transform schools into 21st century opportunities for 
     students by--
       ``(A) creating a challenging learning environment and 
     facilitating academic enrichment through innovative academic 
     programs; or
       ``(B) providing extra learning, time, and opportunities for 
     students.
       ``(3) To provide assistance to local educational agencies, 
     schools, and communities to strengthen existing programs or 
     develop and implement new programs based on proven 
     researched-based strategies that create safe learning 
     environments by--
       ``(A) preventing violence and other high-risk behavior from 
     occurring in and around schools; and
       ``(B) preventing the illegal use of alcohol, tobacco, and 
     drugs among students.
       ``(4) To create New Economy Technology Schools (NETs) by 
     providing assistance to local educational agencies and 
     schools for--
       ``(A) the acquisition, development, interconnection, 
     implementation, improvement, and maintenance of an effective 
     educational technology infrastructure;
       ``(B) the acquisition and maintenance of technology 
     equipment and the provision of training in the use of such 
     equipment for teachers, school library and media personnel, 
     and administrators;
       ``(C) the acquisition or development of technology-enhanced 
     curricula and instructional materials that are aligned with 
     challenging State content and student performance standards; 
     and
       ``(D) the acquisition or development and implementation of 
     high-quality professional development for teachers in the use 
     of technology and its integration with challenging State 
     content and student performance standards.

     ``SEC. 6002. DEFINITIONS OF STATE.

       ``In this title:
       ``(1) Authentic task.--The term `authentic task' means a 
     real world task that--
       ``(A) is challenging, meaningful, multidisciplinary, and 
     interactive;
       ``(B) involves reasoning, problem solving, and composition; 
     and
       ``(C) is not a discrete component skill that has no obvious 
     connection with students' activities outside of school.
       ``(2) State.--The term `State' means each of the several 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.

     ``SEC. 6003. PROGRAMS AUTHORIZED.

       ``(a) Grants Authorized.--From the amount appropriated 
     under section 6009 for a fiscal year, the Secretary shall 
     award a grant to each State educational agency having a State 
     plan approved under section 6005(a)(4) to enable the State 
     educational agency to award grants to local educational 
     agencies in the State.
       ``(b) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     section 6009 for a fiscal year, the Secretary shall reserve--
       ``(A) not more than \1/2\ of 1 percent of such amount for 
     payments to the Bureau of Indian Affairs for activities, 
     approved by the Secretary, consistent with this title;
       ``(B) not more than \1/2\ of 1 percent of such amounts for 
     payments to outlying areas, to be allotted in accordance with 
     their respective needs for assistance under this title as 
     determined by the Secretary, for activities, approved by the 
     Secretary, consistent with this title; and
       ``(C) such sums as may be necessary to continue to support 
     any multiyear award made under titles III, IV, V (part B), or 
     X (as such titles were in effect on the day preceding the 
     date of enactment of the Public Education Reinvestment, 
     Reinvention, and Responsibility Act) until the completion of 
     the multiyear award.

[[Page 7246]]

       ``(2) State allotments.--
       ``(A) In general.--From the amount appropriated under 
     section 6009 for a fiscal year and remaining after the 
     Secretary makes reservations under paragraph (1), the 
     Secretary shall allot to each State having a State plan 
     approved under section 6005(a)(4) the sum of--
       ``(i) an amount that bears the same relationship to 50 
     percent of the remainder as the amount the State received 
     under part A of title I bears to the amount all States 
     received under such part; and
       ``(ii) an amount that bears the same relationship to 50 
     percent of the remainder as the school-age population in the 
     State bears to the school-age population in all States.
       ``(B) Data.--For the purposes of determining the school-age 
     population in a State and in all States, the Secretary shall 
     use the latest available Bureau of the Census data.
       ``(c) State Minimum.--For any fiscal year, no State shall 
     be allotted under this section an amount that is less than 
     0.4 percent of the total amount allotted to all States under 
     subsection (b)(2).
       ``(d) Hold-Harmless Amounts.--For fiscal year 2001, 
     notwithstanding subsection (e), the amount allotted to each 
     State under this section shall be not less than 100 percent 
     of the total amount the State was allotted in formula grants 
     under titles III, IV, and VI (as such titles were in effect 
     on the day preceding the date of enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act) 
     for the preceding fiscal year.
       ``(e) Ratable Reductions.--If the sums made available under 
     subsection (b)(2)(A) for any fiscal year are insufficient to 
     pay the full amounts that all State educational agencies are 
     eligible to receive under that subsection for such year, the 
     Secretary shall ratably reduce such amounts for such year.

     ``SEC. 6004. WITHIN STATE ALLOCATION.

       ``(a) Short Title.--Each State educational agency for a 
     State receiving a grant award under section 6003(b)(2) 
     shall--
       ``(1) set aside not more than 1 percent of the grant funds 
     for the cost of administering the activities under this 
     title;
       ``(2) set aside not more than 4 percent of the grant funds 
     to--
       ``(A) provide for the establishment of high-quality, 
     internationally competitive content and student performance 
     standards and strategies that all students will be expected 
     to meet;
       ``(B) provide for the establishment of high-quality, 
     rigorous assessments that include multiple measures and 
     demonstrate comprehensive knowledge;
       ``(C) encourage and enable all State educational agencies 
     and local educational agencies to develop, implement, and 
     strengthen comprehensive education improvement plans that 
     address student achievement, teacher quality, parent 
     involvement, and reliable measurement and evaluation methods; 
     and
       ``(D) encourage and enable all States to develop and 
     implement value-added assessments, including model value-
     added assessments identified by the Secretary under section 
     7004(a)(6); and
       ``(3) using the remaining 95 percent of the grant funds, 
     make grants by allocating to each local educational agency in 
     the State having a local educational agency plan approved 
     under section 6005(b)(3) the sum of--
       ``(A) an amount that bears the same relationship to 50 
     percent of such remainder as the amount the local educational 
     agency received under part A of title I bears to the amount 
     all local educational agencies in the State received under 
     such part; and
       ``(B) an amount that bears the same relationship to 50 
     percent of such remainder as the school-age population in the 
     area served by the local educational agency bears to the 
     school-age population in the area served by all local 
     educational agencies in the State.
       ``(b) Matching Requirement.--
       ``(1) In general.--Each eligible local educational agency 
     receiving a grant under subsection (a) shall contribute 
     resources with respect to the local authorized activities to 
     be assisted under this title in case or in-kind from non-
     Federal sources in an amount equal to 25 percent of the 
     Federal funds awarded under the grant.
       ``(2) Waiver.--A local educational agency may apply to the 
     State educational agency may grant a waiver of the 
     requirements of paragraph (1) to a local educational agency 
     that--
       ``(A) applies for such a waiver; and
       ``(B) demonstrates extreme circumstances for being unable 
     to meet such requirements.

     ``SEC. 6005. PLANS.

       ``(a) State Plans.--
       ``(1) In general.--The State educational agency for each 
     State desiring a grant under this title shall submit a State 
     plan to the Secretary at such time, in such manner, and 
     accompanied by such information as the Secretary may require.
       ``(2) Consolidated plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidated plan 
     under section 8302.
       ``(3) Contents.--Each plan submitted under paragraph (1) 
     shall--
       ``(A) describe how the State educational agency will assist 
     each local educational agency and school served under this 
     title to comply with the requirements described in section 
     6006 that are applicable to the local educational agency or 
     school;
       ``(B) certify that the State has in place the standards and 
     assessments required under section 1111;
       ``(C) certify that the State educational agency has a 
     system, as required under section 1111, for--
       ``(i) holding each local educational agency and school 
     accountable for adequate yearly progress (as defined in 
     section 1111(b)(2)(B));
       ``(ii) identifying local educational agencies and schools 
     that are in need of improvement and corrective action (as 
     required in sections 1116 and 1117);
       ``(iii) assisting local educational agencies and schools 
     that are identified for improvement with the development of 
     improvement plans; and
       ``(iv) providing technical assistance, professional 
     development, and other capacity building as needed to get 
     such agencies and schools out of improvement status;
       ``(D) certify that the State educational agency shall use 
     the disaggregated results of student assessments required 
     under section 1111(b)(4), and other measures or indicators 
     available, to review annually the progress of each local 
     educational agency and school served under this title to 
     determine whether or not each such agency and school is 
     making adequate yearly progress as required under section 
     1111;
       ``(E) certify that the State educational agency will take 
     action against a local educational agency that is in 
     corrective action and receiving funds under this title as 
     described in section 6006(d)(1);
       ``(F) describe what, if any, State and other resources will 
     be provided to local educational agencies and schools served 
     under this title to carry out activities consisted with this 
     title; and
       ``(G) certify that the State educational agency has a 
     system to hold local educational agencies accountable for 
     meeting the annual performance objectives required under 
     subsection (b)(2)(C).
       ``(4) Approval.--The Secretary, using a peer review 
     process, shall approve a State plan if the State plan meets 
     the requirements of this subsection.
       ``(5) Duration of the plan.--Each State plan shall remain 
     in effect for the duration of the State's participation under 
     this title.
       ``(6) Requirement.--A State shall not be eligible to 
     receive funds under this title unless the State has 
     established the standards and assessments required under 
     section 1111.
       ``(b) Local Plans.--
       ``(1) In general.--Each local educational agency shall 
     annually submit a local educational agency plan to the State 
     educational agency at such time, in such manner, and 
     accompanied by such information as the State educational 
     agency may require.
       ``(2) Contents.--Each local educational agency shall--
       ``(A) describe the programs for which funds allocated under 
     section 6004(3) will be used and the reasons for the 
     selection of such programs;
       ``(B) describe the methods the local educational agency 
     will use to measure the annual impact of programs described 
     under subparagraph (A) and the extent to which such programs 
     will increase student academic performance;
       ``(C) describe the annual, quantifiable, and measurable 
     performance goals and objectives for each program described 
     under subparagraph (A) and the extent to which such goals and 
     objectives are aligned with State content and student 
     performance standards;
       ``(D) describe how the local educational agency will hold 
     schools accountable for meeting the intended performance 
     objectives for each program described under subparagraph (C);
       ``(E) provide an assurance that the local educational 
     agency has met the local plan requirements described in 
     section 1112 for--
       ``(i) holding schools accountable for adequate yearly 
     progress, including meeting annual numerical goals for 
     improving the performance of all groups of students based on 
     the student performance standards set by the State under 
     section 1111(b)(1)(D)(ii);
       ``(ii) identifying schools for school improvement or 
     corrective action;
       ``(iii) fulfilling the local educational agency's school 
     improvement responsibilities described in section 1116, 
     including taking corrective actions under section 
     1116(c)(10); and
       ``(iv) providing technical assistance, professional 
     development, or other capacity building to schools served by 
     the agency;
       ``(F) certify that the local educational agency will take 
     action against a school that is in corrective action and 
     receiving funds under this title as described under section 
     6006(d)(2);
       ``(G) describe what State and local resources will be 
     contributed to carrying out programs described under 
     subparagraph (A);
       ``(H) provide assurances that the local educational agency 
     consulted, at a minimum, with parents, school board members, 
     teachers, administrators, business partners, education 
     organizations, and community groups to develop the local 
     educational plan and select the programs to be assisted under 
     this title; and
       ``(J) provide assurances that the local educational agency 
     will continue such consultation on a regular basis and will 
     provide the

[[Page 7247]]

     State with annual evidence of such consultation.
       ``(3) Approval.--The State, using a peer review process, 
     shall approve a local educational agency plan if the plan 
     meets the requirements of this subsection.
       ``(4) Duration of the plan.--Each local educational agency 
     plan shall remain in effect for the duration of the local 
     educational agency's participation under this title.
       ``(5) Public review.--Each State educational agency will 
     make publicly available each local educational agency plan 
     approved under paragraph (3).

     ``SEC. 6006. LOCAL USES OF FUNDS AND ACCOUNTABILITY.

       ``(a) Administrative Expenses.--Each local educational 
     agency receiving a grant award under section 6004(3) may use 
     not more than 1 percent of the grant funds for any fiscal 
     year for the cost of administering this title.
       ``(b) Required Activities.--Each local educational agency 
     receiving a grant award under section 6004(3) shall use the 
     grant funds pursuant to this subsection to establish and 
     carry out programs that are designed to achieve, separately 
     or cumulatively, each of the goals described in the category 
     areas described in paragraphs (1) through (4).
       ``(1) School improvement.--Each local educational agency 
     shall use 30 percent of the grant funds--
       ``(A) in the case of a school that has been identified as 
     being in need of improvement under section 1116(c), for 
     activities or strategies that are described in section 
     1116(c) that focus on removing such school from improvement 
     status; or
       ``(B) for programs that seek to raise the academic 
     achievement levels of all elementary school and secondary 
     school students based on challenging State content and 
     student performance standards and, to the greatest extent 
     possible,--
       ``(i) incorporate the best practices developed from 
     research-based methods and practices;
       ``(ii) are aligned with challenging State content and 
     performance standards and focused on reinforcing and boosting 
     the core academic skills and knowledge of students who are 
     struggling academically, as determined by State assessments 
     under section 1111(b)(4) and local evaluations;
       ``(iii) focus on accelerated learning rather than 
     remediation, so that students will master the high level of 
     skills and knowledge needed to meet the highest State 
     standards or to perform at high levels on all State 
     assessments;
       ``(iv) offer teachers, principals, and administrators 
     professional development and technical assistance that are 
     aligned with the content of such programs; and
       ``(v) address local needs, as determined by the local 
     educational agency's evaluation of school and districtwide 
     data.
       ``(2) 21st century opportunities.--Each local educational 
     agency shall use 25 percent of the grant funds for--
       ``(A) programs that provide for extra learning, time, and 
     opportunities for students so that all students may achieve 
     high levels of learning and meet the State proficient 
     standard level within 10 years of the date of enactment of 
     the Public Education Reinvestment, Reinvention, and 
     Responsibility Act;
       ``(B) programs to improve higher order thinking skills of 
     all students, especially disadvantaged students;
       ``(C) promising innovative education reform projects that 
     are consistent with challenging State content and student 
     performance standards; or
       ``(D) programs that focus on ensuring that disadvantaged 
     students enter elementary school with the basic skills needed 
     to meet the highest State content and student performance 
     standards.
       ``(3) Safe learning environments.--Each local educational 
     agency shall use 15 percent of the grant funds for programs 
     that help ensure that all elementary school and secondary 
     school students learn in a safe and supportive environment 
     by--
       ``(A) reducing drugs, violence, and other high-risk 
     behavior in schools;
       ``(B) providing safe, extended-day opportunities for 
     students;
       ``(C) providing professional development activities for 
     teachers, principals, mental health professionals, and 
     guidance counselors in dealing with students exhibiting 
     distress (such as substance abuse, disruptive behavior, and 
     suicidal behavior);
       ``(D) recruiting or retaining high-quality mental health 
     professionals;
       ``(E) providing character education for students; or
       ``(F) meeting other objectives that are established under 
     State standards regarding safety or that address local 
     community concerns.
       ``(4) New economy technology schools.--
       ``(A) In general.--Each local educational agency shall use 
     30 percent of the grant funds to establish technology 
     programs that will transform schools into New Economy 
     Technology Schools (NETs) and, to the greatest extent 
     possible, will--
       ``(i) increase student performance related to an authentic 
     task;
       ``(ii) integrate the use of technology into activities that 
     are a core part of classroom curricula and are available to 
     all students;
       ``(iii) emphasize how to use technology to accomplish 
     authentic tasks;
       ``(iv) provide professional development and technical 
     assistance to teachers so that teachers may integrate 
     technology into daily teaching activities that are directly 
     aligned with State content and student performance standards; 
     and
       ``(v) enable the local educational agency annually to 
     increase the percentage of classrooms with access to 
     technology, particularly in schools in which not less than 50 
     percent of the school-age population comes from families with 
     incomes below the poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance 
     with section 673(2) of the Community Services Block Grant Act 
     (42 U.S.C. 9902(2))) applicable to a family of the size 
     involved.
       ``(B) Limitation.--Each local educational agency shall use 
     not more than 50 percent of the grant funds described in 
     subparagraph (A) to purchase, upgrade, or retrofit computer 
     hardware in schools in which not less than 50 percent of the 
     school-age population comes from families at or below the 
     poverty line, as defined in subparagraph (A)(v).
       ``(c) Transfer of Funds.--Notwithstanding subsection (b)--
       ``(1) a local educational agency that meets adequate yearly 
     progress requirements for student performance, as established 
     by the State educational agency under section 1111, may 
     allocate, at the local educational agency's discretion, not 
     more than 30 percent of the grant funds received under 
     section 6004(3) among the 4 funding categories described in 
     subsection (b);
       ``(2) a local educational agency that exceeds the adequate 
     yearly progress requirements described in paragraph (1) by a 
     significant amount, as determined by the State educational 
     agency, may allocate, at the local educational agency's 
     discretion, not more than 50 percent of the grant funds 
     received under section 6004(3) among the 4 funding categories 
     described in subsection (b); and
       ``(3) a local educational agency that is identified as in 
     need of improvement, as defined under section 1117, may apply 
     not more than 25 percent of the grant funds described in 
     subsection (b) (2), (3), or (4) to school improvement 
     activities described in subsection (b)(1).
       ``(d) Limitations for Schools and Local Educational 
     Agencies in Corrective Action.--
       ``(1) Local educational agencies in corrective action.--If 
     a local educational agency is identified for corrective 
     action under section 1116(d), the State educational agency 
     shall--
       ``(A) notwithstanding any other provision of law, specify 
     how the local educational agency shall spend the grant funds 
     in order to focus the local educational agency on activities 
     that will be the most effective in raising student 
     performance levels; and
       ``(B) implement corrective action in accordance with the 
     provisions for corrective action described in section 
     1116(d).
       ``(2) Schools in corrective action.--If a school is 
     identified for corrective action under section 1116(c), the 
     local educational agency shall--
       ``(A) specify how the school shall spend grant funds 
     received under this section in order to focus on activities 
     that will be the most effective in raising student 
     performance levels; and
       ``(B) implement corrective action in accordance with the 
     provisions for corrective action described in section 
     1116(c)(10).
       ``(3) Duration.--Limitations imposed on schools and local 
     educational agencies in corrective action under paragraphs 
     (1) and (2) shall remain in effect until such time as the 
     school or local educational agency has made sufficient 
     improvement, as determined by the State educational agency, 
     and is no longer in corrective action.

     ``SEC. 6007. STATE AND LOCAL RESPONSIBILITIES.

       ``(a) Data Review.--
       ``(1) State and local review.--A State educational agency 
     shall jointly review with a local educational agency 
     described in section 6006(d)(1) the local educational 
     agency's data gathered from student assessments and other 
     measures required under section 1111(b)(4), in order to 
     determine how the local educational agency shall spend the 
     grant funds pursuant to section 6006(d)(1)(A) in order to 
     substantially increase student performance levels.
       ``(1) School and local review.--A local educational agency 
     shall jointly review with a school described in section 
     6006(d)(2) the school's data gathered from student 
     assessments and other measures required under section 
     1111(b)(4), in order to determine how the school shall spend 
     grant funds pursuant to section 6006(d)(2) in order to 
     substantially increase student performance levels.
       ``(b) Technical Assistance.--
       ``(1) State assistance.--
       ``(A) A State educational agency shall provide, upon 
     request by a local educational agency receiving grant funds 
     under this title, technical assistance to the local 
     educational agency and schools served by the local 
     educational agency, including assistance in analyzing student 
     performance and

[[Page 7248]]

     the impact of programs assisted under this title and 
     identifying the best instructional strategies and methods for 
     carrying out such programs.
       ``(B) State assistance may be provided by--
       ``(i) the State educational agency; or
       ``(ii) with the local educational agency's approval, by an 
     institution of higher education, a private not-for-profit or 
     for-profit organization, an educational service agency, the 
     recipient of a Federal contract or cooperative agreement as 
     described in section 7005, a nontraditional entity such as a 
     corporation or consulting firm, or any other entity with 
     experience in the program area for which the assistance is 
     being sought.
       ``(2) Local assistance.--
       ``(A) A local educational agency shall provide, upon 
     request by an elementary school or secondary school served by 
     the agency, technical assistance to such school, including 
     assistance in analyzing student performance and the impact of 
     programs assisted under this title, and identifying the best 
     instructional strategies and methods for carrying out such 
     programs.
       ``(B) Local assistance may be provided by--
       ``(i) the State educational agency or local educational 
     agency; or
       ``(ii) with the school's approval, by an institution of 
     higher education, a private not-for-profit or for-profit 
     organization, an educational service agency, the recipient of 
     a Federal contract or cooperative agreement as described in 
     section 7005, a nontraditional entity such as a corporation 
     or consulting firm, or any other entity with experience in 
     the program area for which the assistance is being sought.

     ``SEC. 6008. LOCAL REPORTS.

       ``Each local educational agency receiving funds under this 
     title shall annually publish and disseminate to the public in 
     a format and, to the extent practicable, in a language that 
     parents can understand, a report on--
       ``(1) information describing the use of funds in the 4 
     category areas described in section 6006(b);
       ``(2) the impact of such programs and an assessment of such 
     programs' effectiveness; and
       ``(3) the local educational agency's progress toward 
     attaining the goals and objectives described under section 
     6005(b), and the extent to which programs assisted under this 
     title have increased student achievement.

     ``SEC. 6009. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $2,700,000,000 for fiscal year 2001, and such sums as 
     may be necessary for each of the 4 succeeding fiscal 
     years.''.

                       TITLE VII--ACCOUNTABILITY

     SEC. 701. ACCOUNTABILITY.

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

                      ``TITLE VII--ACCOUNTABILITY

     ``SEC. 7001. SANCTIONS.

       ``(a) Third Fiscal Year.--If performance objectives 
     established under a covered provision have not been met by a 
     State receiving grant funds under such provision by the end 
     of the third fiscal year for which the State receives such 
     grant funds, the Secretary shall reduce by 50 percent the 
     amount the State is entitled to receive for administrative 
     expenses under such provision.
       ``(b) Fourth Fiscal Year.--If the State fails to meet the 
     performance objectives established under a covered provision 
     by the end of the fourth fiscal year for which the State 
     receives grant funds under the covered provision, the 
     Secretary shall reduce the total amount the State receives 
     under title VI by 30 percent.
       ``(c) Duration.--If the Secretary determines, under 
     subsection (a) or (b), that a State failed to meet the 
     performance objectives established under a covered provision 
     for a fiscal year, the Secretary shall reduce grant funds in 
     accordance with subsection (a) or (b) for the State for each 
     subsequent fiscal year until the State demonstrates that the 
     State met the performance objectives for the fiscal year 
     preceding the demonstration.
       ``(d) Technical Assistance.--The Secretary shall provide 
     technical assistance, if sought, to a State subjected to 
     sanctions under subsection (a) or (b).
       ``(e) Local Sanctions.--
       ``(1) In general.--Each State receiving assistance under 
     title I, II, III, or VI shall develop a system to hold local 
     educational agencies accountable for meeting--
       ``(A) the performance objectives established under part A 
     of title II, part A of title III, and title VI; and
       ``(B) the adequate yearly progress requirements established 
     under part A of title I, and required under part A of title 
     III and title VI.
       ``(2) Sanctions.--A system developed under paragraph (c) 
     shall include a mechanism for sanctioning local educational 
     agencies for low performance with regard to failure to meet 
     such performance objectives and adequate yearly progress 
     levels.
       ``(f) Definitions.--In this section:
       ``(1) Covered provision.--The term `covered provision' 
     means part A of title I, part A of title II, part A of title 
     III, and section 6005(b)(2)(C).
       ``(2) Performance objectives.--The term `performance 
     objectives' means in the case of--
       ``(A) part A of title I, the adequate yearly progress 
     levels established under subsections (b)(2)(A)(iii) and 
     (b)(2)(B) of section 1111;
       ``(B) part A of title II, the set of performance objectives 
     established in section 2014;
       ``(C) part A of title III, the set of performance 
     objectives established in section 3109; and
       ``(D) title VI, the set of performance objectives set by 
     each local educational agency in section 6005(b)(2)(C).

     ``SEC. 7002. REWARDING HIGH PERFORMANCE.

       ``(a) State Rewards.--
       ``(1) In general.--From amounts appropriated under 
     subsection (d), and from amounts made available as a result 
     of reductions under section 7001, the Secretary shall make 
     awards to States that--
       ``(A) for 3 consecutive years have--
       ``(i) exceeded the States' performance objectives 
     established for any title under this Act;
       ``(ii) exceeded their adequate yearly progress levels 
     established in section 1111(b);
       ``(iii) significantly narrowed the gaps between minority 
     and non-minority students, and between economically 
     disadvantaged and non-economically disadvantaged students;
       ``(iv) raised all students to the proficient standard level 
     prior to 10 years from the date of enactment of the Public 
     Education Reinvention, Reinvestment, and Responsibility Act; 
     or
       ``(v) significantly increased the percentage of core 
     classes being taught by fully qualified teachers teaching in 
     schools receiving funds under part A of title I; or
       ``(B) by not later than fiscal year 2003, ensure that all 
     teachers teaching in the States' public elementary schools 
     and secondary schools are fully qualified.
       ``(2) State use of funds.--
       ``(A) Demonstration sites.--Each State receiving an award 
     under paragraph (1) shall use a portion of the award that is 
     not distributed under subsection (b) to establish 
     demonstration sites with respect to high-performing schools 
     (based on achievement or performance levels) objectives and 
     adequate yearly progress in order to help low-performing 
     schools.
       ``(B) Improvement of performance.--Each State receiving an 
     award under paragraph (1) shall use the portion of the award 
     that is not used pursuant to subparagraph (A) or (C) and is 
     not distributed under subsection (b) for the purpose of 
     improving the level of performance of all elementary and 
     secondary school students in the State, based on State 
     content and performance standards.
       ``(C) Reservation for administrative expenses.--Each State 
     receiving an award under paragraph (1) may set aside not more 
     than \1/2\ of 1 percent of the award for the planning and 
     administrative costs of carrying out this section, including 
     the costs of distributing awards to local educational 
     agencies.
       ``(b) Local Educational Agency Awards.--
       ``(1) In general.--Each State receiving an award under 
     subsection (a)(1) shall distribute 80 percent of the award 
     funds to local educational agencies in the State that--
       ``(A) for 3 consecutive years have--
       ``(i) exceeded the State-established local educational 
     agency performance objectives established for any title under 
     this Act;
       ``(ii) exceeded the adequate yearly progress level 
     established under section 1111(b)(2);
       ``(iii) significantly narrowed the gaps between minority 
     and nonminority students, and between economically 
     disadvantaged and noneconomically disadvantaged students;
       ``(iv) raised all students enrolled in schools within the 
     local educational agency to the proficient standard level 
     prior to 10 years from the date of enactment of the Public 
     Education Reinvestment, Reinvention, and Responsibility Act; 
     or
       ``(v) significantly increased the percentage of core 
     classes being taught by fully qualified teachers teaching in 
     schools receiving funds under part A of title I; or
       ``(B) not later than December 31, 2003, ensured that all 
     teachers teaching in the elementary schools and secondary 
     schools served by the local educational agencies are fully 
     qualified; or
       ``(C) have attained consistently high achievement in 
     another area that the State deems appropriate to reward.
       ``(2) School-based performance awards.--A local educational 
     agency may use funds made available under paragraph (1) for 
     activities such as school-based performance awards.
       ``(3) Reservation for administrative expenses.--Each local 
     educational agency receiving an award under paragraph (1) may 
     set aside not more than \1/2\ of 1 percent of the award for 
     the planning and administrative costs of carrying out this 
     section, including the costs of distributing awards to 
     eligible elementary schools and secondary schools, teachers, 
     and principals.
       ``(c) School Rewards.--Each local educational agency 
     receiving an award under subsection (b) shall consult with 
     teachers and principals to develop a reward system, and shall 
     use the award funds--
       ``(1) to reward individual schools that demonstrate high 
     performance with respect to--
       ``(A) increasing the academic achievement of all students;

[[Page 7249]]

       ``(B) narrowing the academic achievement gap described in 
     section 1111(b)(2)(B)(vii);
       ``(C) improving teacher quality;
       ``(D) increasing high-quality professional development for 
     teachers, principals, and administrators; or
       ``(E) improving the English proficiency of limited English 
     proficient students;
       ``(2) to reward collaborative teams of teachers, or teams 
     of teachers and principals, that--
       ``(A) significantly increase the annual performance of low-
     performing students; or
       ``(B) significantly improve in a fiscal year the English 
     proficiency of limited English proficient students;
       ``(3) to reward principals who successfully raise the 
     performance of a substantial number of low-performing 
     students to high academic levels;
       ``(4) to develop or implement school district-wide programs 
     or policies to increase the level of student performance on 
     State assessments that are aligned with State content 
     standards; and
       ``(5) to reward schools for consistently high achievement 
     in another area that the local educational agency deems 
     appropriate to reward.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $200,000,000 for fiscal year 2001, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(e) Definition.--The term `low-performing student' means 
     students who are below the basic State standard level.

     ``SEC. 7003. SUPPLEMENT NOT SUPPLANT.

       ``A State educational agency and local educational agency 
     shall use funds under this title to supplement, and, not 
     supplant, Federal, State, and local funds that, in the 
     absence of funds under this title, would otherwise be spent 
     for activities of the type described in section 7002.

     ``SEC. 7004. SECRETARY'S ACTIVITIES.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, from amounts appropriated under subsection (b) and 
     not reserved under subsection (c), the Secretary may--
       ``(1) support activities of the National Board for 
     Professional Teaching Standards;
       ``(2) study and disseminate information regarding model 
     programs assisted under this Act;
       ``(3) provide training and technical assistance to States, 
     local educational agencies, elementary schools and secondary 
     schools, Indian tribes, and other recipients of grant funds 
     under this Act that are carrying out activities assisted 
     under this Act, including entering into contracts or 
     cooperative agreements with public or private nonprofit 
     entities or consortia of such entities, in order to provide 
     comprehensive training and technical assistance related to 
     the administration and implementation of activities assisted 
     under this Act;
       ``(4) support activities that will promote systemic 
     education reform at the State and local levels;
       ``(5) award grants or contracts to public or private 
     nonprofit entities to enable the entities--
       ``(A) to develop and disseminate exemplary reading, 
     mathematics, science, and technology educational practices, 
     and instructional materials to States, local educational 
     agencies, and elementary schools and secondary schools; and
       ``(B) to provide technical assistance for the 
     implementation of teaching methods and assessment tools for 
     use by elementary schools and secondary school students, 
     teachers, and administrators;
       ``(6) disseminate information on models of value-added 
     assessments;
       ``(7) award a grant or contract to a public or private 
     nonprofit entity or consortium of such entities for the 
     development and dissemination of exemplary programs and 
     curricula for accelerated and advanced learning for all 
     students, including gifted and talented students;
       ``(8) award a grant or contract with Reading Is 
     Fundamental, Inc. and other public or private nonprofit 
     entities to support and promote programs which include the 
     distribution of inexpensive books to students and literacy 
     activities that motivate children to read; and
       ``(9) provide assistance to States--
       ``(A) by assisting in the development of English language 
     development standards and high-quality assessments, if 
     requested by a State participating in activities under 
     subtitle A of title III; and
       ``(B) by developing native language tests for limited 
     English proficient students that a State may administer to 
     such students to assess student achievement in at least 
     reading, science, and mathematics, consistent with section 
     1111.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $150,000,000 for fiscal year 2001, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(c) Reservation.--From the amounts appropriated under 
     subsection (b) the Secretary shall reserve $10,000,000 for 
     the purposes of carrying out activities under section 
     1202(c).
       ``(d) Special Rule for Secretary Awards.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, a recipient of funds provided under a direct award 
     made by the Secretary, or a contract or cooperative agreement 
     entered into with the Secretary, shall include the following 
     in any application or plan required under such programs:
       ``(A) How funds provided under the program will be used and 
     how such use will increase student academic achievement.
       ``(B) The goals and objectives to be met, including goals 
     for dissemination and use of the information or materials 
     produced.
       ``(C) How the recipient will track and report annually to 
     the Secretary--
       ``(i) the successful dissemination of information or 
     materials produced;
       ``(ii) where information or materials produced are being 
     used; and
       ``(iii) what is the impact of such use and, if applicable, 
     the extent to which such use increased student academic 
     achievement.
       ``(2) Requirement.--If no application or plan is required 
     under a program, contract, or cooperative agreement described 
     in paragraph (1), the Secretary shall require the recipient 
     of funds to submit a plan containing the information required 
     under paragraph (1).
       ``(3) Failure to achieve goals and objectives.--
       ``(A) In general.--The Secretary shall evaluate the 
     information submitted under this subsection to determine 
     whether the recipient has met the goals and objectives 
     described in paragraph (1)(B), assess the magnitude of 
     dissemination, and assess the effectiveness of the activity 
     funded in raising student academic achievement in places 
     where information or materials produced with such funds are 
     used.
       ``(B) Ineligibility.--The Secretary shall consider the 
     recipient ineligible for future grants under the program, 
     contract, or cooperative agreement described in paragraph (1) 
     if--
       ``(i) the goals and objectives described in paragraph 
     (1)(B) have not been met;
       ``(ii) dissemination has not been of a magnitude to ensure 
     national goals are being addressed; and
       ``(iii) the information or materials produced have not made 
     a significant impact on raising student achievement in places 
     where such information or materials are used.''.

               TITLE VIII--GENERAL PROVISIONS AND REPEALS

     SEC. 801. REPEALS, TRANSFERS, AND REDESIGNATIONS REGARDING 
                   TITLES VIII AND XIV.

       (a) In General.--The Act (20 U.S.C. 6301 et seq.) is 
     amended--
       (1) by inserting after title VII the following:

                  ``TITLE VIII--GENERAL PROVISIONS'';

       (2) by repealing sections 14514 and 14603 (20 U.S.C. 8904, 
     8923);
       (3)(A) by transferring title XIV (20 U.S.C. 8801 et seq.) 
     to title VIII and inserting such title after the title 
     heading for title VIII; and
       (B) by striking the title heading for title XIV;
       (4)(A) by redesignating part H of title VIII (as 
     redesignated by paragraph (3)) as part I of title VIII; and
       (B) by redesignating the references to part H of title VIII 
     as references to part I of title VIII;
       (5) by inserting after part G of title VIII the following:

                   ``PART H--SUPPLEMENT, NOT SUPPLANT

     ``SEC. 8801. SUPPLEMENT, NOT SUPPLANT.

       ``A State educational agency or local educational agency 
     shall use funds received under the Act to supplement, and not 
     supplant, State and local funds that, in the absence of funds 
     under this Act, would otherwise be spent for activities under 
     this Act.'';
       (6) by redesignating the references to title XIV as 
     references to title VIII;
       (7)(A) by redesignating sections 14101 through 14103 (20 
     U.S.C. 8801, 8803) (as transferred by paragraph (3)) as 
     sections 8101 through 8103, respectively; and
       (B) by redesignating the references to such sections 14101 
     through 14103 as references to sections 8101 through 8103, 
     respectively;
       (8)(A) by redesignating sections 14201 through 14206 (20 
     U.S.C. 8821, 8826) (as transferred by paragraph (3)) as 
     sections 8201 through 8206, respectively; and
       (B) by redesignating the references to such sections 14201 
     through 14206 as references to sections 8201 through 8206, 
     respectively;
       (9)(A) by redesignating sections 14301 through 14307 (20 
     U.S.C. 8851, 8857) (as transferred by paragraph (3)) as 
     sections 8301 through 8307, respectively; and
       (B) by redesignating the references to such sections 14301 
     through 14307 as references to sections 8301 through 8307, 
     respectively;
       (10)(A) by redesignating section 14401 (20 U.S.C. 8881) (as 
     transferred by paragraph (3)) as section 8401; and
       (B) by redesignating the references to such section 14401 
     as references to section 8401;
       (11)(A) by redesignating sections 14501 through 14513 (20 
     U.S.C. 8891, 8903) (as transferred by paragraph (3)) as 
     sections 8501 through 8513, respectively; and
       (B) by redesignating the references to such sections 14501 
     through 14513 as references to sections 8501 through 8513, 
     respectively;
       (12)(A) by redesignating sections 14601 and 14602 (20 
     U.S.C. 8921, 8922) (as transferred by

[[Page 7250]]

     paragraph (3)) as sections 8601 and 8602, respectively; and
       (B) by redesignating the references to such sections 14601 
     and 14602 as references to sections 8601 and 8602, 
     respectively;
       (13)(A) by redesignating section 14701 (20 U.S.C. 8941) (as 
     transferred by paragraph (3)) as section 8701; and
       (B) by redesignating the references to such section 14701 
     as references to section 8701; and
       (14)(A) by redesignating sections 14801 and 14802 (20 
     U.S.C. 8961, 8962) (as transferred by paragraph (3)) as 
     sections 8901 and 8902, respectively; and
       (B) by redesignating the references to such sections 14801 
     and 14802 as references to sections 8901 and 8902, 
     respectively.
       (b) Amendments.--Title VIII (as so transferred and 
     redesignated) is amended--
       (1) in section 8101(10) (as redesignated by subsection 
     (a)(7))--
       (A) by striking subparagraphs (C) through (F); and
       (B) by adding after subparagraph (B) the following:
       ``(C) part A of title II;
       ``(D) part A of title III; and
       ``(E) title IV.'';
       (2) in section 8102 (as redesignated by subsection (a)(7)), 
     by striking ``VIII'' and inserting ``V'';
       (3) in section 8201 (as redesignated by subsection 
     (a)(8))--
       (A) in subsection (a)(2), by striking ``, and 
     administrative funds under section 308(c) of the Goals 2000: 
     Educate America Act''; and
       (B) by striking subsection (f);
       (4) in section 8203(b) (as redesignated by subsection 
     (a)(8)), by striking ``Improving America's Schools Act of 
     1994'' and inserting ``Public Education Reinvestment, 
     Reinvention, and Responsibility Act'';
       (5) in section 8204 (as redesignated by subsection 
     (a)(8))--
       (A) by striking subsection (b); and
       (B) in subsection (a)--
       (i) in paragraph (2)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``1995'' and inserting ``2001'';
       (II) in subparagraph (B), by inserting ``professional 
     development,'' after ``curriculum development,''; and

       (ii) in paragraph (4)--

       (I) by striking ``and section 410(b) of the Improving 
     America's Schools Act of 1994''; and
       (II) by striking ``paragraph (2)'' and inserting 
     ``subsection (a)(2)'';
       (III) by striking the following:

       ``(4) Results.--'' and inserting the following:
       ``(b) Results.--'';

       (IV) by striking the following:

       ``(A) develop'' and inserting the following:
       ``(1) develop''; and

       (V) by striking the following:

       ``(B) within'' and inserting the following:
       ``(2) within'';
       (6) in section 8205(a)(1) (as redesignated by subsection 
     (a)(8)), by striking ``part A of title IX'' and inserting 
     ``part B of title III'';
       (7) in section 8206 (as redesignated by subsection 
     (a)(8))--
       (A) by striking ``(a) Unneeded Program Funds.--''; and
       (B) by striking subsection (b);
       (8) in section 8302(a)(2) (as redesignated by subsection 
     (a)(9))--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively;
       (9) in section 8304(b) (as redesignated by subsection 
     (a)(9)), by striking ``Improving America's Schools Act of 
     1994'' and inserting ``Public Education Reinvestment, 
     Reinvention, and Responsibility Act'';
       (10) in section 8401 (as redesignated by subsection 
     (a)(10))--
       (A) in subsection (a), by striking ``Except as provided in 
     subsection (c),'' and inserting ``Notwithstanding any other 
     provision regarding waivers in this Act and except as 
     provided in subsection (c),''; and
       (B) in subsection (c)(8), by striking ``part C of title X'' 
     and inserting ``part B of title IV'';
       (11) in section 8502 (as redesignated by subsection 
     (a)(11)), by striking ``VIII'' and inserting ``V'';
       (12) in section 8503(b)(1) (as redesignated by subsection 
     (a)(11))--
       (A) by striking subparagraphs (B) through (E);
       (B) by redesignating subparagraph (A) as subparagraph (B);
       (C) by inserting before subparagraph (B) the following:
       ``(A) part A of title I;''; and
       (D) by adding at the end the following:
       ``(C) title II;
       ``(D) title III;
       ``(E) title VI.''; and
       (13) in section 8506(d) (as redesignated by subsection 
     (a)(11)), by striking ``Improving America's Schools Act of 
     1994'' and inserting ``Public Education Reinvestment, 
     Reinvention, and Responsibility Act'';
       (14) in section 8513 (as redesignated by subsection 
     (a)(11)), by striking ``Improving America's Schools Act of 
     1994'' each place it appears and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act'';
       (15) in section 8601 (as redesignated by subsection 
     (a)(12))--
       (A) in subsection (b)(3)--
       (i) in subparagraph (A), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act''; and
       (ii) in subparagraph (B), by striking ``Improving America's 
     Schools Act'' and inserting ``Public Education Reinvestment, 
     Reinvention, and Responsibility Act''; and
       (B) in subsection (f), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act''; and
       (16) in section 8701(b) (as redesignated by subsection 
     (a)(13))--
       (A) in paragraph (1)--
       (i) in subparagraph (B)--

       (I) in clause (i), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ``Public Education 
     Reinvestment, Reinvention, and Responsibility Act'';
       (II) in clause (ii), by striking ``such as the initiatives 
     under the Goals 2000: Educate America Act, and'' and 
     inserting ``under''; and
       (III) in clause (v), by striking ``, the Advisory Council 
     on Education Statistics, and the National Education Goals 
     Panel'' and inserting ``and the Advisory Council on Education 
     Statistics''; and

       (ii) in subparagraph (C)(ii), by striking ``the School-to-
     Work Opportunities Act of 1994, and the Goals 2000: Educate 
     America Act'' and inserting ``and the School-to-Work 
     Opportunities Act of 1994''; and
       (B) in paragraph (3), by striking ``1998'' and inserting 
     ``2004''.

     SEC. 802. OTHER REPEALS.

       Titles V, X, XI, XII, and XIII (20 U.S.C. 7201 et seq., 
     8001 et seq., 8401 et seq., 8501 et seq., 8601 et seq.) and 
     the Goals 2000: Educate America Act (20 U.S.C. 5801 et seq.) 
     are repealed.
                                 ______
                                 

                        HELMS AMENDMENT NO. 3128

  (Ordered to lie on the table.)
  Mr. HELMS submitted an amendment intended to be proposed by him to 
the bill, S. 2, supra; as follows:

       At the end, add the following:

     SEC. __. FUNDING CONTINGENT ON RESPECT FOR CONSTITUTIONALLY 
                   PERMISSIBLE SCHOOL PRAYER.

       (a) Short Title.--This section may be cited as the 
     ``Voluntary School Prayer Protection Act''.
       (b) Prohibition.--Notwithstanding any other provision of 
     law, no funds made available through the Department of 
     Education shall be provided to any State, or local 
     educational agency, that has a policy of denying, or that 
     effectively prevents participation in, prayer permissible 
     under the Constitution in public schools by individuals on a 
     voluntary basis.
       (c) Special Rules.--No person shall be required to 
     participate in prayer in a public school. No State, or local 
     educational agency, shall influence the form or content of 
     any prayer by a student that is permissible under the 
     Constitution in a public school.
                                 ______
                                 

                        BIDEN AMENDMENT NO. 3129

  (Ordered to lie on the table.)
  Mr. BIDEN submitted an amendment intended to be proposed by him to 
the bill, S. 2, supra; as follows:

       At the appropriate place, insert the following:
       (a) The Senate finds that:
       tens of millions of Americans have served in the Armed 
     Forces of the United States during the past century;
       hundreds of thousands of Americans have given their lives 
     while serving in the Armed Forces during the past century;
       the contributions and sacrifices of the men and women who 
     served in the Armed Forces have been vital in maintaining our 
     freedoms and way of life;
       the advent of the all-volunteer Armed Forces has resulted 
     in a sharp decline in the number of individuals and families 
     who have had any personal connection with the Armed Forces;
       this reduction in familiarity with the Armed Forces has 
     resulted in a marked decrease in the awareness by young 
     people of the nature and importance of the accomplishments of 
     those who have served in our Armed Forces, despite the 
     current educational efforts of the Department of Veterans 
     Affairs and the veterans service organizations; and
       our system of civilian control of the Armed Forces makes it 
     essential that the country's future leaders understand the 
     history of military action and the contributions and 
     sacrifices of those who conduct such actions.
       (b) It is the sense of the Senate that--
       (1) the Secretary of Education should work with the 
     Secretary of Veterans Affairs, the Veterans Day National 
     Committee, and the veterans service organizations to 
     encourage, prepare, and disseminate educational materials and 
     activities for elementary and secondary school students aimed 
     at increasing awareness of the contributions of veterans to 
     the prosperity and freedoms enjoyed by United States 
     citizens;
       (2) the week that includes Veterans Day be designated as 
     ``National Veterans Awareness Week'' for the purpose of 
     presenting such materials and activities; and
       (3) the President should issue a proclamation calling on 
     the people of the United

[[Page 7251]]

     States to observe such week with appropriate educational 
     activities.
                                 ______
                                 

                        GRAMS AMENDMENT NO. 3130

  (Ordered to lie on the table.)
  Mr. GRAMS submitted an amendment intended to be proposed by him to 
the bill, S. 2, supra; as follows:

       On page 31, between lines 3 and 4, insert the following:
       (E) by adding at the end the following:
       ``(9) Notwithstanding the preceding paragraphs of this 
     subsection--
       ``(A) a State may develop or adopt alternative sets of 
     standards and assessments; and
       ``(B) a State plan shall be considered as satisfying the 
     requirements of this subsection if the plan allows local 
     educational agencies to conduct assessments with--
       ``(i) a national norm-referenced standardized achievement 
     examination; and
       ``(ii) assessments developed--

       ``(I) by such agencies; or
       ``(II) with respect to individual local classrooms.'';

                                 ______
                                 

                      SESSIONS AMENDMENT NO. 3131

  (Ordered to lie on the table.)
  Mr. SESSIONS submitted an amendment intended to be proposed by him to 
the bill, S. 2, supra; as follows:

       On page 922, strike line 18 and insert the following:

     ``be necessary for each of the 4 succeeding fiscal years.''.

     SEC. 11302. AMENDMENT TO THE INDIVIDUALS WITH DISABILITIES 
                   EDUCATION ACT.

       Section 615 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1415) is amended by adding at the end the 
     following:
       ``(n) Uniform Policies.--Notwithstanding any other 
     provision of this Act, a State educational agency or local 
     educational agency may establish and implement uniform 
     policies with respect to discipline and order applicable to 
     all children in the jurisdiction of such agency to ensure the 
     safety and appropriate educational atmosphere in schools in 
     the jurisdiction of such agency.''.
                                 ______
                                 

                ASHCROFT (AND OTHERS) AMENDMENT NO. 3132

  (Ordered to lie on the table.)
  Mr. ASHCROFT (for himself, Mr. Sessions, Mr. Bond, and Mr. Helms) 
submitted an amendment intended to be proposed by them to the bill, S. 
2, supra; as follows:

       On page 922, strike line 18 and insert the following:

     be necessary for each of the 4 succeeding fiscal years.

                           PART_-- AMENDMENTS

     SEC. __. AMENDMENT TO THE INDIVIDUALS WITH DISABILITIES 
                   EDUCATION ACT.

       (a) Procedural Safeguards.-- Section 615 of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1415) is amended 
     by adding at the end the following:
       ``(n) Discipline by Local Authority with respect to Illegal 
     or Unlawful Items or Substances and Teacher Assaults.--
       ``(1) Authority of school personnel with respect to illegal 
     or unlawful items or substances and teacher assaults.--
     Notwithstanding any other provision of this title, school 
     personnel may discipline (including expel or suspend) a child 
     with a disability in the same manner in which such personnel 
     may discipline a child without a disability if the child with 
     a disability--
       ``(A) carries, possesses, or distributes any illegal or 
     unlawful item or substance, in violation of a Federal or 
     State law, to or at a school, on school premises, or to or at 
     a school function under the jurisdiction of a State or a 
     local educational agency;
       ``(B) threatens to carry, possess, or distribute any 
     illegal or unlawful item or substance, in violation of a 
     Federal or State law, to or at a school, on school premises, 
     or to or at a school function under the jurisdiction of a 
     State or a local educational agency; or
       ``(C) assaults or threatens to assault a teacher, teacher's 
     aid, principal, school counselor, or other school personnel, 
     including independent contractors and volunteers.
       ``(2) Individual determinations.--In carrying out any 
     disciplinary action described in paragraph (1), school 
     personnel have discretion to consider all germane factors in 
     each individual case and modify any disciplinary action on a 
     case-by-case basis.
       ``(3) Defense.--Nothing in paragraph (1) shall be construed 
     to prevent a child with a disability who is disciplined 
     pursuant to the authority provided under paragraph (1) from 
     asserting a defense that the alleged act was unintentional or 
     innocent.
       ``(4) Free appropriate public education.--
       ``(A) Ceasing to provide education.--Notwithstanding 
     section 612(a)(1)(A), or any other provision of this title, a 
     child expelled or suspended under paragraph (1) shall not be 
     entitled to continued educational services, including a free 
     appropriate public education, under this subsection, during 
     the term of such expulsion or suspension, if the State in 
     which the local educational agency responsible for providing 
     educational services to such child does not require a child 
     without a disability to receive educational services after 
     being expelled or suspended.
       ``(B) Providing education.--Notwithstanding subparagraph 
     (A), the local educational agency responsible for providing 
     educational services to a child with a disability who is 
     expelled or suspended under paragraph (1) may choose to 
     continue to provide educational services to such child. If 
     the local educational agency so chooses to continue to 
     provide the services--
       ``(i) nothing in this subsection shall be construed to 
     require the local educational agency to provide such child 
     with a free appropriate public education, or any particular 
     level of service; and
       ``(ii) the location where the local educational agency 
     provides the services shall be left to the discretion of the 
     local educational agency.
       ``(5) Relationship to other requirements.--
       ``(A) Plan requirements.--No agency shall be considered to 
     be in violation of section 612 or 613 because the agency has 
     provided discipline, services, or assistance in accordance 
     with this subsection.
       ``(B) Procedure.--None of the procedural safeguards or 
     disciplinary procedures of this Act shall apply to this 
     subsection, and the relevant procedural safeguards and 
     disciplinary procedures applicable to children without 
     disabilities may be applied to the child with a disability in 
     the same manner in which such safeguards and procedures would 
     be applied to children without disabilities.
       ``(6) Definitions.--In this subsection, the terms 
     `assault', `unintentional', and `innocent' have the meanings 
     given such terms under State law.''.
       (b) Conforming Amendments.--Section 615 of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1415) is amended--
       (1) in subsection (f)(1), by striking ``Whenever'' and 
     inserting the following: ``Except as provided in section 
     615(n), whenever''; and
       (2) in subsection (k)--
       (A) in paragraph (1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) In any disciplinary situation except for such 
     situations as described in subsection (n), school personnel 
     under this section may order a change in the placement of a 
     child with a disability to an appropriate interim alternative 
     educational setting, another setting, or suspension, for not 
     more than 10 school days (to the extent such alternatives 
     would apply to children without disabilities).'';
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Any interim alternative educational setting in which 
     a child is placed under paragraph (1) or (2) shall--
       ``(A) be selected so as to enable the child to continue to 
     participate in the general curriculum, although in another 
     setting, and to continue to receive those services and 
     modifications, including those described in the child's 
     current IEP, that will enable the child to meet the goals set 
     out in that IEP; and
       ``(B) include services and modifications designed to 
     address the behavior described in paragraphs (1) or (2) so 
     that it does not recur.'';
       (C) in paragraph (6)(B)--
       (i) in clause (i), by striking ``(i) In reviewing'' and 
     inserting ``In reviewing''; and
       (ii) by striking clause (ii);
       (D) in paragraph (7)--
       (i) in subparagraph (A), by striking ``paragraph (1)(A)(ii) 
     or'' each place it appears; and
       (ii) in subparagraph (B), by striking ``paragraph 
     (1)(A)(ii) or''; and
       (E) by striking paragraph (10) and inserting the following:
       ``(10) Substantial evidence.--The term `substantial 
     evidence' means beyond a preponderance of the evidence.''.
       (c) Application.--The amendments made by this section shall 
     not apply to conduct occurring prior to the date of enactment 
     of this section.

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

       Section 6131(b)(1) (as amended by section 601) is amended--
       (1) in subparagraph (M), by striking ``and'';
       (2) in subparagraph (N), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(O) alternative education programs for those students who 
     have been expelled or suspended from their regular 
     educational setting.''.
                                 ______
                                 

                   ASHCROFT AMENDMENTS NOS. 3133-3135

  (Ordered to lie on the table.)
  Mr. ASHCROFT submitted three amendments intended to be proposed by 
him to the bill, S. 2, supra, as follows:

                           Amendment No. 3133

       On page 667, line 3, strike the end quotation marks and the 
     second period.


[[Page 7252]]


       On page 667, between lines 3 and 4, insert the following:

        ``PART I--FUNDING FOR ELEMENTARY AND SECONDARY EDUCATION

     ``SEC. 6901. SHORT TITLE.

       ``This part may be cited as the `Excellent Schools for All 
     Our Children Act'.

     ``SEC. 6902. FINDINGS; PURPOSES.

       ``(a) Findings.--Congress finds that--
       ``(1) flexibility when merited and accountability when 
     warranted should be the Federal Government's approach to the 
     use of Federal education resources; and
       ``(2) the Federal Government should encourage better, 
     smarter uses of Federal funds where the need is greatest, 
     specifically, in failing school districts, so that children 
     in those school districts will have a real opportunity to 
     achieve academic excellence and create a brighter future for 
     themselves.
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to promote excellence in elementary and secondary 
     education programs in the Nation;
       ``(2) to increase parental involvement in the education of 
     their children;
       ``(3) to boost student achievement in academic subjects to 
     high levels;
       ``(4) to improve basic skills instruction, and to increase 
     teacher performance and accountability; and
       ``(5) to improve the academic achievement of students in 
     failing school districts by focusing the resources of the 
     Federal Government upon such achievement.

     ``SEC. 6903. DEFINITION OF FAILING LOCAL EDUCATIONAL AGENCY.

       ``In this part, the term `failing local educational agency' 
     means a local educational agency that has been classified as 
     unaccredited or failing (or would be so classified if not for 
     a court order or pending court settlement agreement involving 
     the local educational agency) under its State's performance-
     based accreditation or categorization standards.

     ``SEC. 6904. REQUIREMENTS FOR FAILING LOCAL EDUCATIONAL 
                   AGENCIES.

       ``(a) Funding.--
       ``(1) In general.--Notwithstanding any other provision of 
     law--
       ``(A) a failing local educational agency shall use Federal 
     funds made available under the provisions of law described in 
     paragraph (2) only for purposes directly related to improving 
     elementary school and secondary school students' academic 
     performance consistent with subsection (c);
       ``(B) the requirements of the provisions of law described 
     in paragraph (2) shall not apply to a failing local 
     educational agency, except as provided in subparagraph (C);
       ``(C) the allocations of funds to failing local educational 
     agencies under the provisions of law described in paragraph 
     (2) (other than title VI) shall remain in effect; and
       ``(D) in the case of allocation of funds under title VI to 
     a failing local educational agency for a fiscal year, the 
     failing local educational agency shall receive from the State 
     under title VI for the fiscal year an amount that bears the 
     same relation to the amount made available to the State under 
     title VI for the fiscal year as the amount the local 
     educational agency received from the State under title VI for 
     the fiscal year preceding the fiscal year for which the 
     determination is made bears to the amount made available to 
     the State under title VI for such preceding fiscal year.
       ``(2) Provisions of law.--The provisions of law referred to 
     in paragraph (1) are the following:
       ``(A) Parts A, B, and C of title I.
       ``(B) Part B of title III.
       ``(C) Section 5132.
       ``(D) Title VI.
       ``(E) Part C of title VII.
       ``(F) Comprehensive school reform programs as authorized 
     under section 1502 and described on pages 96-99 of the Joint 
     Explanatory Statement of the Committee of Conference included 
     in House Report 105-390 (Conference Report on the Departments 
     of Labor, Health and Human Services, and Education, and 
     Related Agencies Appropriations Act, 1998).
       ``(G) Subtitle B of title VII of the Stewart B. McKinney 
     Homeless Assistance Act.
       ``(b) Failing Local Agency Plan.--
       ``(1) Plan required.--Each failing local educational agency 
     shall submit a plan to the Secretary at such time and in such 
     manner as the Secretary may require. A plan submitted under 
     this subsection--
       ``(A) shall describe the activities to be funded by the 
     failing local educational agency under subsection (a) 
     consistent with subsection (c); and
       ``(B) may request an exemption from the uses of funds 
     restrictions under subsection (c) for elementary schools and 
     secondary schools served by the failing local educational 
     agency that met the State's performance-based accreditation 
     or categorization standards for the previous fiscal year.
       ``(2) Plan approval.--The Secretary shall approve a plan 
     submitted under paragraph (1) if the plan meets the 
     requirements described in paragraph (1).
       ``(3) Plan dissemination.--Each failing local educational 
     agency having a plan approved under paragraph (2) shall 
     widely disseminate such plan, throughout the area served by 
     such agency, and post the plan on the Internet.
       ``(c) Uses of Funds.--Each failing local educational agency 
     having a plan approved under subsection (b)(2) for a fiscal 
     year shall use the funds awarded under the provisions of law 
     described in subsection (a)(2) for such fiscal year only for 
     the following activities:
       ``(1) To recruit, retain, and reward high-quality teachers.
       ``(2) To focus on teaching basic educational skills.
       ``(3) To provide remedial instruction in core academic 
     subjects that are assessed by standards set by the State 
     educational agency or local educational agency.
       ``(4) To fund mentoring programs for elementary school and 
     secondary school students who need assistance in reading, 
     writing, or arithmetic.
       ``(5) To use proven methods of instruction, such as 
     phonics, that are based upon reliable research.
       ``(6) To provide for extended day learning.
       ``(7) To ensure that parents of elementary school and 
     secondary school students realize that parents play a 
     significant role in their child's educational success, and to 
     encourage parents to become active in their child's 
     education.
       ``(8) To provide any other activity that a local 
     educational agency proposes, and the Secretary approves, as 
     an activity that relates directly to improving students' 
     academic performance.
       ``(e) Annual Report.--
       ``(1) Report.--A failing local educational agency shall 
     annually submit a report to the Secretary describing--
       ``(A) the use of funds under this section; and
       ``(B) the annual performance of all children served by the 
     failing local educational agency as measured by its State's 
     performance-based accreditation or categorization standards.
       ``(2) Privacy.--The report required under this section 
     shall not contain any information, such as names, addresses, 
     or grades, that might be used to identify the children whose 
     performance is described in the report.
       ``(3) Dissemination.--A failing local educational agency 
     shall widely disseminate the report submitted under paragraph 
     (1) throughout the area served by such agency, and post the 
     report on the Internet, so that parents and others in the 
     community can account for Federal education funding under 
     this part.
       ``(f) Meeting Standards.--
       ``(1) In general.--If, for 2 consecutive fiscal years after 
     a failing local educational agency is required to use funds 
     in accordance with subsection (a), such local educational 
     agency succeeds in meeting its State's performance-based 
     accreditation or categorization standards, then the local 
     educational agency may--
       ``(A) continue to use Federal funding under subsection (a) 
     in accordance with this part;
       ``(B) use funding under the provisions of law described in 
     subsection (a)(2) in accordance with such provisions; or
       ``(C) participate in the program under part H in the same 
     manner as a local educational agency participates in such 
     program pursuant to section 6806.
       ``(2) Bonus awards.--
       ``(A) In general.--A local educational agency that meets 
     the standards described in paragraph (1) may receive a bonus 
     award from amounts appropriated under subparagraph (C), to 
     use for purposes such as rewarding elementary school and 
     secondary school teachers and principals who improved student 
     performance, and for professional development opportunities 
     for such teachers and principals.
       ``(B) Distribution.--A local educational agency receiving a 
     bonus award under this paragraph shall determine how to 
     distribute the award to individual elementary schools and 
     secondary schools. An elementary school or a secondary school 
     receiving such an award shall determine how such award shall 
     be spent.
       ``(C) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this paragraph 
     $10,000,000 for each of fiscal years 2003 through 2007.
       ``(g) Penalty.--If a failing local educational agency 
     spends funds subject to the use of funds restrictions 
     described in subsection (c) in a manner inconsistent with 
     subsection (c) for a fiscal year, then the State shall reduce 
     the funds such agency receives under this part for the 
     succeeding fiscal year by an amount equal to the amount spent 
     improperly by such agency.''.
                                  ____


                           Amendment No. 3134

       On page 490, strike lines 16 and 17, and insert the 
     following: ``$125,000,000 for fiscal year 2001 and such sums 
     as may be necessary for each of the 4 succeeding fiscal 
     years, except that the Secretary shall make available not 
     less than $25,000,000 of the amount appropriated under this 
     subsection in each fiscal year to carry out activities under 
     subsection (b)(1).''.
                                  ____


                           Amendment No. 3135

       At the end of title XI, insert the following:

                   PART--HIGHER EDUCATION ACT OF 1965

     SEC. __. GOOD STUDENT SCHOLARSHIPS.

       Part A of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1070 et seq.) is amended by adding at the end the 
     following:

[[Page 7253]]



                 ``Subpart 9--Good Student Scholarships

     ``SEC. 420N. GOOD STUDENT SCHOLARSHIPS.

       ``(a) Short Title.--This section may be cited as the ``Good 
     Student Scholarship Act''.
       ``(b) Purpose.--The purpose of this section is to provide 
     achievement-based scholarships for undergraduate education to 
     eligible students graduating from schools or school districts 
     that are failing or unaccredited.
       ``(c) Definition of Eligible Student.--In this section, the 
     term `eligible student' means a secondary school student--
       ``(1) who graduates from a public secondary school, or a 
     public or private secondary school in a school district, that 
     is failing or unaccredited, as determined by the State 
     educational agency serving the State in which the secondary 
     school or school district is located;
       ``(2) who has been in attendance at the school referred to 
     in paragraph (1) for not less than 2 years;
       ``(3) who ranks in the top 10 percent academically in such 
     student's class;
       ``(4) who has an average ACT or SAT score that is equal to 
     or greater than the national average such score; and
       ``(5) whose family income is not more than $100,000.
       ``(d) Designation.--Scholarships made under this section 
     shall be referred to as `Good Student Scholarships'.
       ``(e) Scholarships Authorized.--
       ``(1) In general.--From amounts appropriated under 
     subsection (g) for a fiscal year, the Secretary shall award 
     scholarships to each eligible student submitting an 
     application consistent with paragraph (2) to enable the 
     eligible student to pay the cost of attendance at an 
     institution of higher education during the eligible student's 
     first 4 academic years of undergraduate education.
       ``(2) Application required.--Each eligible student desiring 
     a scholarship under this section shall submit, for each year 
     of the scholarship award, an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require.
       ``(3) Amount of award.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the amount of a scholarship awarded under this section for an 
     academic year shall be equal to the maximum appropriated 
     Federal Pell Grant for such year.
       ``(B) Adjustment for insufficient appropriations.--If, 
     after the Secretary determines the total number of eligible 
     applicants for an academic year, funds available to carry out 
     this section are insufficient to fully fund all scholarship 
     awards under subparagraph (A) for such academic year, the 
     amount of the scholarship paid to each eligible student shall 
     be reduced proportionately.
       ``(C) Assistance not to exceed cost of attendance.--The 
     amount of a scholarship awarded under this paragraph to an 
     eligible student, in combination with Federal Pell Grant 
     assistance and any other student financial assistance the 
     eligible student receives, may not exceed the eligible 
     student's cost of attendance.
       ``(f) Lists From State Educational Agencies.--Each State 
     educational agency shall annually provide a list to the 
     Secretary identifying each public secondary school and each 
     school district within the State that the State educational 
     agency determines is failing or unaccredited.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $_______ for fiscal year 2001 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.''.
                                 ______
                                 

                  HUTCHINSON AMENDMENTS NOS. 3136-3137

  (Ordered to lie on the table.)
  Mr. HUTCHINSON submitted two amendments intended to be proposed by 
him to the bill, S. 2, supra; as follows:

                           Amendment No. 3136

       At the end of title VI, insert the following:

     SEC. __. TRANSFERABILITY.

       Title VI (20 U.S.C. 6701 et seq.) is amended by adding at 
     the end the following:

                       ``PART I--TRANSFERABILITY

     ``SEC. 6901. SHORT TITLE.

       ``This part may be cited as the `State and Local 
     Transferability Act'.

     ``SEC. 6902. PURPOSE.

       ``The purpose of this part is to grant flexibility to 
     States and school districts to target--
       ``(1) Federal funds to Federal programs that most 
     effectively address the unique needs of States and 
     localities; and
       ``(2) additional Federal funds to title I programs.

     ``SEC. 6903. TRANSFERABILITY.

       ``(a) State Transfer Authority.--
       ``(1) In general.--A State may transfer up to 100 percent 
     of nonadministrative State funds allocated to such State 
     which are authorized to be used for State-level activities 
     under any of the following provisions to the allocation of 
     the State under any other of such provisions:
       ``(A) Title II (excluding national activities).
       ``(B) Part A of title IV.
       ``(C) Subpart 2 of part A of title V.
       ``(D) This title.
       ``(E) Part C of title VII.
       ``(F) Comprehensive school reform programs as authorized 
     under section 1502 as described on pages 96-99 of the Joint 
     Explanatory Statement of the Committee of Conference included 
     in House Report No. 105-390 (Conference Report on the 
     Departments of Labor, Health, and Human Services, and 
     Education, and Related Agencies Appropriations Act, 1998).
       ``(2) Supplemental funds for title i.--A State may transfer 
     any funds allocated to the State under a provision listed in 
     paragraph (1) to its allocation under title I.
       ``(b) Local Educational Agency Transfer Authority.--
       ``(1) Transfer of funds.--
       ``(A) In general.--Subject to subparagraphs (C) and (D), a 
     local educational agency may transfer funds allocated to such 
     agency under any of the provisions listed in paragraph (2) to 
     any other such provision.
       ``(B) Supplemental funds for title i.--Subject to 
     subparagraphs (C) and (D), a local educational agency may 
     transfer funds allocated to such agency under a provision 
     listed in paragraph (2) to its allocation under title I.
       ``(C) Under 30 percent.--A transfer under subparagraph (A) 
     or (B) of up to 30 percent of the funds allocated to a local 
     educational agency under a provision listed in paragraph (2) 
     in a fiscal year may be made without State approval.
       ``(D) Over 30 percent.--Subject to paragraph (3), a 
     transfer under subparagraph (A) or (B) in a fiscal year of 
     funds allocated to a local educational agency under a 
     provision listed in paragraph (2) in a fiscal year the amount 
     of which, when added to the amount of other transfers by the 
     agency of such funds in such fiscal year, is more than 30 
     percent of such funds may be made only with the approval of 
     the State.
       ``(2) Applicable provisions.--The provisions from which a 
     local educational agency may transfer funds under this 
     subsection are as follows:
       ``(A) Title II (excluding national activities).
       ``(B) Part A of title IV.
       ``(C) Subpart 2 of part A of title V.
       ``(D) This title.
       ``(E) Part C of title VII.
       ``(F) Section 310 of the Department of Education Act, 2000, 
     included in the Departments of Labor, Health and Human 
     Services, and Education, and Related Agencies Appropriations 
     Act, 2000 (as enacted into law by section 1000(a)(4) of 
     Public Law 106-113).
       ``(3) Special approval.--If a local educational agency 
     submits to its State a written request to make a transfer 
     under this subsection that requires State approval, such 
     transfer shall be deemed approved by the State unless the 
     State, within 60 days after receipt of such transfer request, 
     disapproves such request or promptly notifies the agency in 
     writing of such revisions as may be necessary before the 
     State will approve the transfer.
       ``(c) Limitation.--A State or a local educational agency 
     may not transfer any funds allocated to it under title I to 
     any other program pursuant to this part.
       ``(d) State Plan and Application Modification; 
     Prenotification.--Each State transferring funds under this 
     section shall--
       ``(1) modify any plan or application of the State that is 
     applicable to such funds to account for such transfer and 
     submit, within 30 days after the date of such transfer, a 
     copy of such modified plan or application to the Department; 
     and
       ``(2) notify the Department not less than 30 days before 
     the effective date of such transfer.
       ``(e) Local Plan and Application Modification; 
     Prenotification.--Each local educational agency transferring 
     funds under this section shall--
       ``(1) modify any plan or application of the agency that is 
     applicable to such funds to account for such transfer and 
     submit, within 30 days after the date of such transfer, a 
     copy of such modified plan or application to the State; and
       ``(2) notify the State not less than 30 days before the 
     effective date of such transfer.
       ``(f) Applicable Rules.--Except as otherwise provided in 
     this subsection, when funds are transferred to an allocation 
     under this section, the funds become funds of the allocation 
     to which the funds are transferred and subject to all the 
     requirements that are applicable to that allocation.''.
                                  ____


                           Amendment No. 3137

       At the end of title X, insert the following:

     SEC. __. INVESTIGATION.

       Not later than 6 months after the date of the enactment of 
     this Act, the Comptroller General of the United States shall 
     conduct and complete a comprehensive investigation for fraud 
     at the Department of Education, including any audits the 
     Comptroller determines necessary. The Comptroller General 
     shall submit a report setting forth the results of the 
     investigation to the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Education and 
     the Workforce of the House of Representatives.

[[Page 7254]]


                                 ______
                                 

                      BROWNBACK AMENDMENT NO. 3138

  (Ordered to lie on the table.)
  Mr. BROWNBACK (for himself, Mr. Gregg, and Mr. Coverdell) submitted 
an amendment intended to be proposed by them to the bill, S. 2, supra; 
as follows:

       On page 532, line 3, strike the end quotation marks and the 
     second period.
       On page 532, between lines 3 and 4, insert the following:

    ``PART G--DISTRICT OF COLUMBIA STUDENT OPPORTUNITY SCHOLARSHIPS

     ``SEC. 5961. SHORT TITLE; FINDINGS; PRECEDENTS.

       ``(a) Short Title.--This part may be cited as the 
     ``District of Columbia Student Opportunity Scholarship Act of 
     2000''.
       ``(b) Findings.--Congress makes the following findings:
       ``(1) Public education in the District of Columbia is in a 
     crisis, as evidenced by the following:
       ``(A) The District of Columbia schools have the lowest 
     average of any school system in the Nation on the National 
     Assessment of Education Progress.
       ``(B) 72 percent of fourth graders in the District of 
     Columbia tested below basic proficiency on the National 
     Assessment of Education Progress in 1994.
       ``(C) Since 1991, there has been a net decline in the 
     reading skills of District of Columbia students as measured 
     in scores on the standardized Comprehensive Test of Basic 
     Skills.
       ``(D) At least 40 percent of District of Columbia students 
     drop out of or leave the school system before graduation.
       ``(E) The National Education Goals Panel reported in 1996 
     that both students and teachers in District of Columbia 
     schools are subjected to levels of violence that are twice 
     the national average.
       ``(F) Nearly two-thirds of District of Columbia teachers 
     reported that violent student behavior is a serious 
     impediment to teaching.
       ``(G) Many of the District of Columbia's 152 schools are in 
     a state of terrible disrepair, including leaking roofs, 
     bitterly cold classrooms, and numerous fire code violations.
       ``(H) According to the Department of Education, 85 percent 
     of all District of Columbia schools participating in the 
     program under part A of title I are in school improvement 
     under section 1116.
       ``(2) Significant improvements in the education of 
     educationally deprived children in the District of Columbia 
     can be accomplished by--
       ``(A) increasing educational opportunities for the children 
     by expanding the range of educational choices that best meet 
     the needs of the children;
       ``(B) fostering diversity and competition among school 
     programs for the children;
       ``(C) providing the families of the children more of the 
     educational choices already available to affluent families; 
     and
       ``(D) enhancing the overall quality of education in the 
     District of Columbia by increasing parental involvement in 
     the direction of the education of the children.
       ``(3) The 350 private schools in the District of Columbia 
     and the surrounding area offer a more safe and stable 
     learning environment than District of Columbia public schools 
     in school improvement under section 1116.
       ``(4) Costs are often much lower in private schools than 
     corresponding costs in public schools.
       ``(5) Not all children are alike and therefore there is no 
     one school or program that fits the needs of all children.
       ``(6) The formation of sound values and moral character is 
     crucial to helping young people escape from lives of poverty, 
     family break-up, drug abuse, crime, and school failure.
       ``(7) In addition to offering knowledge and skills, 
     education should contribute positively to the formation of 
     the internal norms and values which are vital to a child's 
     success in life and to the well-being of society.
       ``(8) Schools should help to provide young people with a 
     sound moral foundation which is consistent with the values of 
     their parents. To find such a school, parents need a full 
     range of choice to determine where their children can best be 
     educated.
       ``(c) Precedents.--The United States Supreme Court has 
     determined that programs giving parents choice and increased 
     input in their children's education, including the choice of 
     a religious education, do not violate the Constitution. The 
     Supreme Court has held that as long as the beneficiary 
     decides where education funds will be spent on such 
     individual's behalf, public funds can be used for education 
     in a religious institution because the public entity has 
     neither advanced nor hindered a particular religion and 
     therefore has not violated the establishment clause of the 
     first amendment to the Constitution. Supreme Court precedents 
     include--
       ``(1) Wisconsin v. Yoder, 406 U.S. 205 (1972); Pierce v. 
     Society of Sisters, 268 U.S. 510 (1925); and Meyer v. 
     Nebraska, 262 U.S. 390 (1923) which held that parents have 
     the primary role in and are the primary decision makers in 
     all areas regarding the education and upbringing of their 
     children;
       ``(2) Mueller v. Allen, 463 U.S. 388 (1983) which declared 
     a Minnesota tax deduction program that provided State income 
     tax benefits for educational expenditures by parents, 
     including tuition in religiously affiliated schools, does not 
     violate the Constitution;
       ``(3) Witters v. Department of Services for the Blind, 474 
     U.S. 481 (1986) in which the Supreme Court ruled unanimously 
     that public funds for the vocational training of the blind 
     could be used at a Bible college for ministry training; and
       ``(4) Zobrest v. Catalina Foothills School District, 509 
     U.S. 1 (1993) which held that a deaf child could receive an 
     interpreter, paid for by the public, in a private religiously 
     affiliated school under the Individual with Disabilities 
     Education Act (20 U.S.C. 1400 et seq.). The case held that 
     providing an interpreter in a religiously affiliated school 
     did not violate the establishment clause of the first 
     amendment of the Constitution.

     ``SEC. 5962. DEFINITIONS.

       ``As used in this part--
       ``(1) the term `Board' means the Board of Directors of the 
     Corporation established under section 5963(b)(1);
       ``(2) the term `Corporation' means the District of Columbia 
     Scholarship Corporation established under section 5963(a);
       ``(3) the term `eligible institution'--
       ``(A) in the case of an eligible institution serving a 
     student who receives a tuition scholarship under section 
     5964(d)(1), means a public, private, or independent 
     elementary or secondary school; and
       ``(B) in the case of an eligible institution serving a 
     student who receives an enhanced achievement scholarship 
     under section 5964(d)(2), means an elementary or secondary 
     school, or an entity that provides services to a student 
     enrolled in an elementary or secondary school to enhance such 
     student's achievement through activities described in section 
     5964(d)(2); and
       ``(4) the term `poverty line' means the poverty line (as 
     defined by the Office of Management and Budget, and revised 
     annually in accordance with section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
     family of the size involved.

     ``SEC. 5963. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

       ``(a) General Requirements.--
       ``(1) In general.--There is authorized to be established a 
     private, nonprofit corporation, to be known as the ``District 
     of Columbia Scholarship Corporation'', which is neither an 
     agency nor establishment of the United States Government or 
     the District of Columbia Government.
       ``(2) Duties.--
       ``(A) In general.--The Corporation shall have the 
     responsibility and authority to administer, publicize, and 
     evaluate the scholarship program in accordance with this 
     part.
       ``(B) Eligibility determination.--The Corporation--
       ``(i) shall make the determination of whether a student is 
     eligible for participation in the scholarship program;
       ``(ii) shall identify the public kindergartens, elementary 
     schools, and secondary schools in the District of Columbia 
     that are in school improvement under section 1116; and
       ``(iii) shall identify any other school the Corporation 
     determines, based on performance standards chosen by the 
     Corporation, eligible for participation under this part.
       ``(3) Consultation.--The Corporation shall exercise its 
     authority--
       ``(A) in a manner consistent with maximizing educational 
     opportunities for the maximum number of interested families; 
     and
       ``(B) in consultation with the District of Columbia Board 
     of Education or entity exercising administrative jurisdiction 
     over the District of Columbia Public Schools, the 
     Superintendent of the District of Columbia Public Schools, 
     and other school scholarship programs in the District of 
     Columbia.
       ``(4) Application of provisions.--The Corporation shall be 
     subject to the provisions of this part, and, to the extent 
     consistent with this part, to the District of Columbia 
     Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.).
       ``(5) Residence.--The Corporation shall have its place of 
     business in the District of Columbia and shall be considered, 
     for purposes of venue in civil actions, to be a resident of 
     the District of Columbia.
       ``(6) Fund.--There is established in the Treasury a fund 
     that shall be known as the District of Columbia Scholarship 
     Fund, to be administered by the Secretary of the Treasury.
       ``(7) Disbursement.--The Secretary of the Treasury shall 
     make available and disburse to the Corporation, before 
     October 15 of each fiscal year or not later than 15 days 
     after the date of enactment of an Act making appropriations 
     for the District of Columbia for such year, whichever occurs 
     later, such funds as have been appropriated to the District 
     of Columbia Scholarship Fund for the fiscal year in which 
     such disbursement is made.
       ``(8) Availability.--Funds authorized to be appropriated 
     under this part shall remain available until expended.
       ``(9) Uses.--Funds authorized to be appropriated under this 
     part shall be used by the

[[Page 7255]]

     Corporation in a prudent and financially responsible manner, 
     solely for scholarships, contracts, and administrative costs.
       ``(10) Authorization.--
       ``(A) In general.--There are authorized to be appropriated 
     to the District of Columbia Scholarship Fund--
       ``(i) $7,000,000 for fiscal year 2001;
       ``(ii) $8,000,000 for fiscal year 2002; and
       ``(iii) $10,000,000 for each of fiscal years 2003 through 
     2005.
       ``(B) Limitation.--Not more than $500,000 of the amount 
     appropriated to carry out this part for any fiscal year may 
     be used by the Corporation for any purpose other than 
     assistance to students.
       ``(b) Organization and Management; Board of Directors.--
       ``(1) Board of directors; membership.--
       ``(A) In general.--The Corporation shall have a Board of 
     Directors (referred to in this part as the `Board'), 
     comprised of 7 members with 6 members of the Board appointed 
     by the President not later than 30 days after receipt of 
     nominations from the Speaker of the House of Representatives 
     and the majority leader of the Senate.
       ``(B) House nominations.--The President shall appoint 3 of 
     the members from a list of 9 individuals nominated by the 
     Speaker of the House of Representatives in consultation with 
     the minority leader of the House of Representatives.
       ``(C) Senate nominations.--The President shall appoint 3 
     members from a list of 9 individuals nominated by the 
     majority leader of the Senate in consultation with the 
     minority leader of the Senate.
       ``(D) Deadline.--The Speaker of the House of 
     Representatives and majority leader of the Senate shall 
     submit their nominations to the President not later than 30 
     days after the date of the enactment of this part.
       ``(E) Appointee of mayor.--The Mayor shall appoint 1 member 
     of the Board not later than 60 days after the date of the 
     enactment of this part.
       ``(F) Possible interim members.--If the President does not 
     appoint the 6 members of the Board in the 30-day period 
     described in subparagraph (A), then the Speaker of the House 
     of Representatives and the Majority Leader of the Senate 
     shall each appoint 2 members of the Board, and the Minority 
     Leader of the House of Representatives and the Minority 
     Leader of the Senate shall each appoint 1 member of the 
     Board, from among the individuals nominated pursuant to 
     subparagraphs (A) and (B), as the case may be. The appointees 
     under the preceding sentence together with the appointee of 
     the Mayor, shall serve as an interim Board with all the 
     powers and other duties of the Board described in this part, 
     until the President makes the appointments as described in 
     this subsection.
       ``(2) Powers.--All powers of the Corporation shall vest in 
     and be exercised under the authority of the Board.
       ``(3) Elections.--Members of the Board annually shall elect 
     1 of the members of the Board to be chairperson of the Board.
       ``(4) Residency.--All members appointed to the Board shall 
     be residents of the District of Columbia at the time of 
     appointment and while serving on the Board.
       ``(5) Nonemployee.--No member of the Board may be an 
     employee of the United States Government or the District of 
     Columbia Government when appointed to or during tenure on the 
     Board, unless the individual is on a leave of absence from 
     such a position while serving on the Board.
       ``(6) Incorporation.--The members of the initial Board 
     shall serve as incorporators and shall take whatever steps 
     are necessary to establish the Corporation under the District 
     of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 
     et seq.).
       ``(7) General term.--The term of office of each member of 
     the Board shall be 5 years, except that any member appointed 
     to fill a vacancy occurring prior to the expiration of the 
     term for which the predecessor was appointed shall be 
     appointed for the remainder of such term.
       ``(8) Consecutive term.--No member of the Board shall be 
     eligible to serve in excess of 2 consecutive terms of 5 years 
     each. A partial term shall be considered as 1 full term. Any 
     vacancy on the Board shall not affect the Board's power, but 
     shall be filled in a manner consistent with this part.
       ``(9) No benefit.--No part of the income or assets of the 
     Corporation shall inure to the benefit of any Director, 
     officer, or employee of the Corporation, except as salary or 
     reasonable compensation for services.
       ``(10) Political activity.--The Corporation may not 
     contribute to or otherwise support any political party or 
     candidate for elective public office.
       ``(11) No officers or employees.--The members of the Board 
     shall not, by reason of such membership, be considered to be 
     officers or employees of the United States Government or of 
     the District of Columbia Government.
       ``(12) Stipends.--The members of the Board, while attending 
     meetings of the Board or while engaged in duties related to 
     such meetings or other activities of the Board pursuant to 
     this part, shall be provided a stipend. Such stipend shall be 
     at the rate of $150 per day for which the member of the Board 
     is officially recorded as having worked, except that no 
     member may be paid a total stipend amount in any calendar 
     year in excess of $5,000.
       ``(c) Officers and Staff.--
       ``(1) Executive director.--The Corporation shall have an 
     Executive Director, and such other staff, as may be appointed 
     by the Board for terms and at rates of compensation, not to 
     exceed level EG-16 of the Educational Service of the District 
     of Columbia, to be fixed by the Board.
       ``(2) Staff.--With the approval of the Board, the Executive 
     Director may appoint and fix the salary of such additional 
     personnel as the Executive Director considers appropriate.
       ``(3) Annual rate.--No staff of the Corporation may be 
     compensated by the Corporation at an annual rate of pay 
     greater than the annual rate of pay of the Executive 
     Director.
       ``(4) Service.--All officers and employees of the 
     Corporation shall serve at the pleasure of the Board.
       ``(5) Qualification.--No political test or qualification 
     may be used in selecting, appointing, promoting, or taking 
     other personnel actions with respect to officers, agents, or 
     employees of the Corporation.
       ``(d) Powers of the Corporation.--
       ``(1) Generally.--The Corporation is authorized to obtain 
     grants from, and make contracts with, individuals and with 
     private, State, and Federal agencies, organizations, and 
     institutions.
       ``(2) Hiring authority.--The Corporation may hire, or 
     accept the voluntary services of, consultants, experts, 
     advisory boards, and panels to aid the Corporation in 
     carrying out this part.
       ``(e) Financial Management and Records.--
       ``(1) Audits.--The financial statements of the Corporation 
     shall be--
       ``(A) maintained in accordance with generally accepted 
     accounting principles for nonprofit corporations; and
       ``(B) audited annually by independent certified public 
     accountants.
       ``(2) Report.--The report for each such audit shall be 
     included in the annual report to Congress required by section 
     5973(c).

     ``SEC. 5964. SCHOLARSHIPS AUTHORIZED.

       ``(a) Eligible Students.--The Corporation is authorized to 
     award tuition scholarships under subsection (d)(1) and 
     enhanced achievement scholarships under subsection (d)(2) to 
     kindergarten through grade 12 students--
       ``(1) who are residents of the District of Columbia;
       ``(2) whose family income does not exceed 185 percent of 
     the poverty line; and
       ``(3) who attended, prior to receipt of the scholarship, a 
     public kindergarten, elementary school, or secondary school 
     that is in school improvement under section 1116 or 
     identified under clause (ii) or (iii) of section 
     5963(a)(2)(B), except that this paragraph shall not apply 
     with respect to a student who is seeking a scholarship under 
     this part after the first year such student receives a 
     scholarship under this part.
       ``(b) Scholarship Priority.--
       ``(1) First.--The Corporation first shall award 
     scholarships to students described in subsection (a) who have 
     received a scholarship from the Corporation in the year 
     preceding the year for which the scholarship is awarded.
       ``(2) Second.--If funds remain for a fiscal year for 
     awarding scholarships after awarding scholarships under 
     paragraph (1), the Corporation shall award scholarships to 
     students described in subsection (a) who are not described in 
     paragraph (1).
       ``(c) Special Rule.--The Corporation shall attempt to 
     ensure an equitable distribution of scholarship funds to 
     students at diverse academic achievement levels.
       ``(d) Use of Scholarship.--
       ``(1) Tuition scholarships.--A tuition scholarship may be 
     used for the payment of the cost of the tuition and mandatory 
     fees at a public, private, or independent school located 
     within the geographic boundaries of the District of Columbia 
     or the cost of the tuition and mandatory fees at a public, 
     private, or independent school located within Montgomery 
     County, Maryland; Prince Georges County, Maryland; Arlington 
     County, Virginia; Alexandria City, Virginia; Falls Church 
     City, Virginia; or Fairfax County, Virginia.
       ``(2) Enhanced achievement scholarship.--An enhanced 
     achievement scholarship may be used only for the payment of 
     the costs of tuition and mandatory fees for, or 
     transportation to attend, a program of instruction provided 
     by an eligible institution which enhances student achievement 
     of the core curriculum and is operated outside of regular 
     school hours to supplement the regular school program.
       ``(e) Not School Aid.--A scholarship under this part shall 
     be considered assistance to the student and shall not be 
     considered assistance to an eligible institution.

     ``SEC. 5965. SCHOLARSHIP PAYMENTS AND AMOUNTS.

       ``(a) Awards.--From the funds made available under this 
     part, the Corporation shall award a scholarship to a student 
     and make payments in accordance with section 5970 on behalf 
     of such student to a participating eligible institution 
     chosen by the parent of the student.
       ``(b) Notification.--Each eligible institution that desires 
     to receive a payment under

[[Page 7256]]

     subsection (a) shall notify the Corporation not later than 10 
     days after--
       ``(1) the date that a student receiving a scholarship under 
     this part is enrolled, of the name, address, and grade level 
     of such student;
       ``(2) the date of the withdrawal or expulsion of any 
     student receiving a scholarship under this part, of the 
     withdrawal or expulsion; and
       ``(3) the date that a student receiving a scholarship under 
     this part is refused admission, of the reasons for such a 
     refusal.
       ``(c) Tuition Scholarship.--
       ``(1) Equal to or below poverty line.--For a student whose 
     family income is equal to or below the poverty line, a 
     tuition scholarship may not exceed the lesser of--
       ``(A) the cost of tuition and mandatory fees for, and 
     transportation to attend, an eligible institution; or
       ``(B) $3,200 for fiscal year 2001, with such amount 
     adjusted in proportion to changes in the Consumer Price Index 
     for all urban consumers published by the Department of Labor 
     for each of fiscal years 2002 through 2005.
       ``(2) Above poverty line.--For a student whose family 
     income is greater than the poverty line, but not more than 
     185 percent of the poverty line, a tuition scholarship may 
     not exceed the lesser of--
       ``(A) 75 percent of the cost of tuition and mandatory fees 
     for, and transportation to attend, an eligible institution; 
     or
       ``(B) $2,400 for fiscal year 2001, with such amount 
     adjusted in proportion to changes in the Consumer Price Index 
     for all urban consumers published by the Department of Labor 
     for each of fiscal years 2002 through 2005.
       ``(d) Enhanced Achievement Scholarship.--An enhanced 
     achievement scholarship may not exceed the lesser of--
       ``(1) the costs of tuition and mandatory fees for, or 
     transportation to attend, a program of instruction at an 
     eligible institution; or
       ``(2) $500 for 2001, with such amount adjusted in 
     proportion to changes in the Consumer Price Index for all 
     urban consumers published by the Department of Labor for each 
     of fiscal years 2002 through 2005.

     ``SEC. 5966. CERTIFICATION OF ELIGIBLE INSTITUTIONS.

       ``(a) Application.--An eligible institution that desires to 
     receive a payment on behalf of a student who receives a 
     scholarship under this part shall file an application with 
     the Corporation for certification for participation in the 
     scholarship program under this part. Each such application 
     shall--
       ``(1) demonstrate that the eligible institution has 
     operated with not less than 25 students during the 3 years 
     preceding the year for which the determination is made unless 
     the eligible institution is applying for certification as a 
     new eligible institution under subsection (c);
       ``(2) contain an assurance that the eligible institution 
     will comply with all applicable requirements of this part;
       ``(3) contain an annual statement of the eligible 
     institution's budget; and
       ``(4) describe the eligible institution's proposed program, 
     including personnel qualifications and fees.
       ``(b) Certification.--
       ``(1) In general.--Except as provided in paragraph (3), not 
     later than 60 days after receipt of an application in 
     accordance with subsection (a), the Corporation shall certify 
     an eligible institution to participate in the scholarship 
     program under this part.
       ``(2) Continuation.--An eligible institution's 
     certification to participate in the scholarship program shall 
     continue unless such eligible institution's certification is 
     revoked in accordance with subsection (d).
       ``(c) New Eligible Institution.--
       ``(1) In general.--An eligible institution that did not 
     operate with at least 25 students in the 3 years preceding 
     the year for which the determination is made may apply for a 
     1-year provisional certification to participate in the 
     scholarship program under this part for a single year by 
     providing to the Corporation not later than July 1 of the 
     year preceding the year for which the determination is made--
       ``(A) a list of the eligible institution's board of 
     directors;
       ``(B) letters of support from not less than 10 members of 
     the community served by such eligible institution;
       ``(C) a business plan;
       ``(D) an intended course of study;
       ``(E) assurances that the eligible institution will begin 
     operations with not less than 25 students;
       ``(F) assurances that the eligible institution will comply 
     with all applicable requirements of this part; and
       ``(G) a statement that satisfies the requirements of 
     paragraphs (2) and (4) of subsection (a).
       ``(2) Certification.--Not later than 60 days after the date 
     of receipt of an application described in paragraph (1), the 
     Corporation shall certify in writing the eligible 
     institution's provisional certification to participate in the 
     scholarship program under this part unless the Corporation 
     determines that good cause exists to deny certification.
       ``(3) Renewal of provisional certification.--After receipt 
     of an application under paragraph (1) from an eligible 
     institution that includes a statement of the eligible 
     institution's budget completed not earlier than 12 months 
     before the date such application is filed, the Corporation 
     shall renew an eligible institution's provisional 
     certification for the second and third years of the school's 
     participation in the scholarship program under this part 
     unless the Corporation finds--
       ``(A) good cause to deny the renewal, including a finding 
     of a pattern of violation of requirements described in 
     section 5967(a); or
       ``(B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this part and attending 
     such school to make appropriate progress (as determined by 
     the Corporation) in academic achievement.
       ``(4) Denial of certification.--If provisional 
     certification or renewal of provisional certification under 
     this subsection is denied, then the Corporation shall provide 
     a written explanation to the eligible institution of the 
     reasons for such denial.
       ``(d) Revocation of Eligibility.--
       ``(1) In general.--The Corporation, after notice and 
     hearing, may revoke an eligible institution's certification 
     to participate in the scholarship program under this part for 
     a year succeeding the year for which the determination is 
     made for--
       ``(A) good cause, including a finding of a pattern of 
     violation of program requirements described in section 
     5967(a); or
       ``(B) consistent failure of 25 percent or more of the 
     students receiving scholarships under this part and attending 
     such school to make appropriate progress (as determined by 
     the Corporation) in academic achievement.
       ``(2) Explanation.--If the certification of an eligible 
     institution is revoked, the Corporation shall provide a 
     written explanation of its decision to such eligible 
     institution and require a pro rata refund of the payments 
     received under this part.

     ``SEC. 5967. PARTICIPATION REQUIREMENTS FOR ELIGIBLE 
                   INSTITUTIONS.

       ``(a) Requirements.--Each eligible institution 
     participating in the scholarship program under this part 
     shall--
       ``(1) provide to the Corporation not later than June 30 of 
     each year the most recent annual statement of the eligible 
     institution's budget; and
       ``(2) charge a student that receives a scholarship under 
     this part not more than the cost of tuition and mandatory 
     fees for, and transportation to attend, such eligible 
     institution as other students who are residents of the 
     District of Columbia and enrolled in such eligible 
     institution.
       ``(b) Compliance.--The Corporation may require 
     documentation of compliance with the requirements of 
     subsection (a), but neither the Corporation nor any 
     governmental entity may impose additional requirements upon 
     an eligible institution as a condition of participation in 
     the scholarship program under this part.

     ``SEC. 5968. CIVIL RIGHTS.

       ``(a) In General.--An eligible institution participating in 
     the scholarship program under this part shall comply with 
     title IV of the Civil Rights Act of 1964 and not discriminate 
     on the basis of race, color, or national origin.
       ``(b) Revocation.--Notwithstanding section 5967(b), if the 
     Secretary of Education determines that an eligible 
     institution participating in the scholarship program under 
     this part is in violation of any of the laws listed in 
     subsection (a), then the Corporation shall revoke such 
     eligible institution's certification to participate in the 
     program.

     ``SEC. 5969. CHILDREN WITH DISABILITIES.

       ``Nothing in this part shall be construed to affect the 
     rights of students, or the obligations of the District of 
     Columbia public schools, under the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.).

     ``SEC. 5970. SCHOLARSHIP PAYMENTS.

       ``(a) In General.--
       ``(1) Proportional payment.--The Corporation shall make 
     scholarship payments to participating eligible institutions 
     for an academic year in 2 installments. The Corporation shall 
     make the first payment not later than October 15 of the 
     academic year in an amount equal to one-half the total amount 
     of the scholarship assistance awarded to students enrolled at 
     such institution for the academic year. The Corporation shall 
     make the second payment not later than January 15 of the 
     academic year in an amount equal to one-half of such total 
     amount.
       ``(2) Pro rata amounts for student withdrawal.--
       ``(A) Before payment.--If a student receiving a scholarship 
     withdraws or is expelled from an eligible institution before 
     a scholarship payment is made, the eligible institution shall 
     receive a pro rata payment based on the amount of the 
     scholarship and the number of days the student was enrolled 
     in the eligible institution.
       ``(B) After payment.--If a student receiving a scholarship 
     withdraws or is expelled after a scholarship payment is made, 
     the eligible institution shall refund to the Corporation on a 
     pro rata basis the proportion of any scholarship payment 
     received for the remaining days of the school year. Such 
     refund shall occur not later than 30 days after the date of 
     the withdrawal or expulsion of the student.

[[Page 7257]]

       ``(b) Fund Transfers.--The Corporation shall make 
     scholarship payments to participating eligible institutions 
     by electronic funds transfer. If such an arrangement is not 
     available, then the eligible institution shall submit an 
     alternative payment proposal to the Corporation for approval.

     ``SEC. 5971. APPLICATION SCHEDULE AND PROCEDURES.

       ``The Corporation shall implement a schedule and procedures 
     for processing applications for awarding student scholarships 
     under this part that includes a list of certified eligible 
     institutions, distribution of information to parents and the 
     general public (including through a newspaper of general 
     circulation), and deadlines for steps in the scholarship 
     application and award process.

     ``SEC. 5972. REPORTING REQUIREMENTS.

       ``(a) In General.--An eligible institution participating in 
     the scholarship program under this part shall report not 
     later than July 30 of each year in a manner prescribed by the 
     Corporation, the following data:
       ``(1) Student achievement in the eligible institution's 
     programs.
       ``(2) Grade advancement for scholarship students.
       ``(3) Disciplinary actions taken with respect to 
     scholarship students.
       ``(4) Graduation, college admission test scores, and 
     college admission rates, if applicable for scholarship 
     students.
       ``(5) Types and amounts of parental involvement required 
     for all families of scholarship students.
       ``(6) Student attendance for scholarship and nonscholarship 
     students.
       ``(7) General information on curriculum, programs, 
     facilities, credentials of personnel, and disciplinary rules 
     at the eligible institution.
       ``(8) Number of scholarship students enrolled.
       ``(9) Such other information as may be required by the 
     Corporation for program appraisal.
       ``(b) Confidentiality.--No personal identifiers may be used 
     in such report, except that the Corporation may request such 
     personal identifiers solely for the purpose of verification.

     ``SEC. 5973. PROGRAM APPRAISAL.

       ``(a) Study.--Not later than 4 years after the date of 
     enactment of this part, the Comptroller General shall enter 
     into a contract, with an evaluating agency that has 
     demonstrated experience in conducting evaluations, for an 
     independent evaluation of the scholarship program under this 
     part, including--
       ``(1) a comparison of test scores between scholarship 
     students and District of Columbia public school students of 
     similar backgrounds, taking into account the students' 
     academic achievement at the time of the award of their 
     scholarships and the students' family income level;
       ``(2) a comparison of graduation rates between scholarship 
     students and District of Columbia public school students of 
     similar backgrounds, taking into account the students' 
     academic achievement at the time of the award of their 
     scholarships and the students' family income level;
       ``(3) the satisfaction of parents of scholarship students 
     with the scholarship program; and
       ``(4) the impact of the scholarship program on the District 
     of Columbia public schools, including changes in the public 
     school enrollment, and any improvement in the academic 
     performance of the public schools.
       ``(b) Public Review of Data.--All data gathered in the 
     course of the study described in subsection (a) shall be made 
     available to the public upon request except that no personal 
     identifiers shall be made public.
       ``(c) Report to Congress.--Not later than September 1 of 
     each year, the Corporation shall submit a progress report on 
     the scholarship program to the appropriate committees of 
     Congress. Such report shall include a review of how 
     scholarship funds were expended, including the initial 
     academic achievement levels of students who have participated 
     in the scholarship program.
       ``(d) Authorization.--There are authorized to be 
     appropriated for the study described in subsection (a), 
     $250,000, which shall remain available until expended.

     ``SEC. 5974. JUDICIAL REVIEW.

       ``(a) In General.--The United States District Court for the 
     District of Columbia shall have jurisdiction in any action 
     challenging the scholarship program under this part and shall 
     provide expedited review.
       ``(b) Appeal to Supreme Court.--Notwithstanding any other 
     provision of law, any order of the United States District 
     Court for the District of Columbia which is issued pursuant 
     to an action brought under subsection (a) shall be reviewable 
     by appeal directly to the Supreme Court of the United 
     States.''.
                                 ______
                                 

                STEVENS (AND OTHERS) AMENDMENT NO. 3139

  Mr. STEVENS (for himself, Mr. Kennedy, and Mr. Jeffords, Mr. Dodd, 
Mr. Domenici, Mr. Bond, Mr. Kerry, Mr. Voinovich, Mr. Lautenberg, Mrs. 
Murray, Mr. Cochran, Mr. Bingaman, Mr. Smith of Oregon, Mr. Durbin, Mr. 
L. Chafee, Mr. Baucus, Mr. Murkowski, Mr. Robb, Mr. Rockefeller, Mr. 
Roberts, Mr. Wellstone, Mrs. Feinstein, Ms. Mikulski, Ms. Snowe, Mrs. 
Boxer, Mr. Kerrey, Mr. Specter, and Mr. Warner) proposed an amendment 
to the bill, S. 2, supra, as follows:

       On page 922, after line 18, insert the following:

                  PART D--EARLY LEARNING OPPORTUNITIES

     SEC. 11401. SHORT TITLE; FINDINGS.

       (a) Short Title.--This part may be cited as the ``Early 
     Learning Opportunities Act''.
       (b) Findings.--Congress finds that--
       (1) medical research demonstrates that adequate stimulation 
     of a young child's brain between birth and age 5 is critical 
     to the physical development of the young child's brain;
       (2) parents are the most significant and effective teachers 
     of their children, and they alone are responsible for 
     choosing the best early learning opportunities for their 
     child;
       (3) parent education and parent involvement are critical to 
     the success of any early learning program or activity;
       (4) the more intensively parents are involved in their 
     child's early learning, the greater the cognitive and 
     noncognitive benefits to their children;
       (5) many parents have difficulty finding the information 
     and support the parents seek to help their children grow to 
     their full potential;
       (6) each day approximately 13,000,000 young children, 
     including 6,000,000 infants or toddlers, spend some or all of 
     their day being cared for by someone other than their 
     parents;
       (7) quality early learning programs, including those 
     designed to promote effective parenting, can increase the 
     literacy rate, the secondary school graduation rate, the 
     employment rate, and the college enrollment rate for children 
     who have participated in voluntary early learning programs 
     and activities;
       (8) early childhood interventions can yield substantial 
     advantages to participants in terms of emotional and 
     cognitive development, education, economic well-being, and 
     health, with the latter 2 advantages applying to the 
     children's families as well;
       (9) participation in quality early learning programs, 
     including those designed to promote effective parenting, can 
     decrease the future incidence of teenage pregnancy, welfare 
     dependency, at-risk behaviors, and juvenile delinquency for 
     children;
       (10) several cost-benefit analysis studies indicate that 
     for each $1 invested in quality early learning programs, the 
     Federal Government can save over $5 by reducing the number of 
     children and families who participate in Federal Government 
     programs like special education and welfare;
       (11) for children placed in the care of others during the 
     workday, the low salaries paid to the child care staff, the 
     lack of career progression for the staff, and the lack of 
     child development specialists involved in early learning and 
     child care programs, make it difficult to attract and retain 
     the quality of staff necessary for a positive early learning 
     experience;
       (12) Federal Government support for early learning has 
     primarily focused on out-of-home care programs like those 
     established under the Head Start Act, the Child Care and 
     Development Block Grant of 1990, and part C of the 
     Individuals with Disabilities Education Act, and these 
     programs--
       (A) serve far fewer than half of all eligible children;
       (B) are not primarily designed to provide support for 
     parents who care for their young children in the home; and
       (C) lack a means of coordinating early learning 
     opportunities in each community; and
       (13) by helping communities increase, expand, and better 
     coordinate early learning opportunities for children and 
     their families, the productivity and creativity of future 
     generations will be improved, and the Nation will be prepared 
     for continued leadership in the 21st century.

     SEC. 11402. PURPOSES.

       The purposes of this part are--
       (1) to increase the availability of voluntary programs, 
     services, and activities that support early childhood 
     development, increase parent effectiveness, and promote the 
     learning readiness of young children so that young children 
     enter school ready to learn;
       (2) to support parents, child care providers, and 
     caregivers who want to incorporate early learning activities 
     into the daily lives of young children;
       (3) to remove barriers to the provision of an accessible 
     system of early childhood learning programs in communities 
     throughout the United States;
       (4) to increase the availability and affordability of 
     professional development activities and compensation for 
     caregivers and child care providers; and
       (5) to facilitate the development of community-based 
     systems of collaborative service delivery models 
     characterized by resource sharing, linkages between 
     appropriate supports, and local planning for services.

     SEC. 11403. DEFINITIONS.

       In this part:
       (1) Caregiver.--The term ``caregiver'' means an individual, 
     including a relative,

[[Page 7258]]

     neighbor, or family friend, who regularly or frequently 
     provides care, with or without compensation, for a child for 
     whom the individual is not the parent.
       (2) Child care provider.--The term ``child care provider'' 
     means a provider of non-residential child care services 
     (including center-based, family-based, and in-home child care 
     services) for compensation who or that is legally operating 
     under State law, and complies with applicable State and local 
     requirements for the provision of child care services.
       (3) Early learning.--The term ``early learning'', used with 
     respect to a program or activity, means learning designed to 
     facilitate the development of cognitive, language, motor, and 
     social-emotional skills for, and to promote learning 
     readiness in, young children.
       (4) Early learning program.--The term ``early learning 
     program'' means--
       (A) a program of services or activities that helps parents, 
     caregivers, and child care providers incorporate early 
     learning into the daily lives of young children; or
       (B) a program that directly provides early learning to 
     young children.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (6) Local Council.--The term ``Local Council'' means a 
     Local Council established or designated under section 
     11414(a) that serves one or more localities.
       (7) Locality.--The term ``locality'' means a city, county, 
     borough, township, or area served by another general purpose 
     unit of local government, an Indian tribe, a Regional 
     Corporation, or a Native Hawaiian entity.
       (8) Parent.--The term ``parent'' means a biological parent, 
     an adoptive parent, a stepparent, a foster parent, or a legal 
     guardian of, or a person standing in loco parentis to, a 
     child.
       (9) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (10) Regional corporation.--The term ``Regional 
     Corporation'' has the meaning given the term in section 3 of 
     the Alaskan Native Claims Settlement Act (43 U.S.C. 1602).
       (11) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (12) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       (13) Training.--The term ``training'' means instruction in 
     early learning that--
       (A) is required for certification under State and local 
     laws, regulations, and policies;
       (B) is required to receive a nationally or State recognized 
     credential or its equivalent;
       (C) is received in a postsecondary education program 
     focused on early learning or early childhood development in 
     which the individual is enrolled; or
       (D) is provided, certified, or sponsored by an organization 
     that is recognized for its expertise in promoting early 
     learning or early childhood development.
       (14) Young child.--The term ``young child'' means any child 
     from birth to the age of mandatory school attendance in the 
     State where the child resides.

     SEC. 11404. PROHIBITIONS.

       (a) Participation Not Required.--No person, including a 
     parent, shall be required to participate in any program of 
     early childhood education, early learning, parent education, 
     or developmental screening pursuant to the provisions of this 
     part.
       (b) Rights of Parents.--Nothing in this part shall be 
     construed to affect the rights of parents otherwise 
     established in Federal, State, or local law.
       (c) Particular Methods or Settings.--No entity that 
     receives funds under this part shall be required to provide 
     services under this part through a particular instructional 
     method or in a particular instructional setting to comply 
     with this part.

     SEC. 11405. AUTHORIZATION AND APPROPRIATION OF FUNDS.

       There are authorized to be appropriated to the Department 
     of Health and Human Services to carry out this part--
       (1) $750,000,000 for fiscal year 2001;
       (2) $1,000,000,000 for fiscal year 2002; and
       (3) $1,500,000,000 for fiscal year 2003.

     SEC. 11406. COORDINATION OF FEDERAL PROGRAMS.

       (a) Coordination.--The Secretary and the Secretary of 
     Education shall develop mechanisms to resolve administrative 
     and programmatic conflicts between Federal programs that 
     would be a barrier to parents, caregivers, service providers, 
     or children related to the coordination of services and 
     funding for early learning programs.
       (b) Use of Equipment and Supplies.--In the case of a 
     collaborative activity funded under this part and another 
     provision of law providing for Federal child care or early 
     learning programs, the use of equipment and nonconsumable 
     supplies purchased with funds made available under this part 
     or such provision shall not be restricted to children 
     enrolled or otherwise participating in the program carried 
     out under this part or such provision, during a period in 
     which the activity is predominately funded under this part or 
     such provision.

     SEC. 11407. PROGRAM AUTHORIZED.

       (a) Grants.--From amounts appropriated under section 11405 
     the Secretary shall award grants to States to enable the 
     States to award grants to Local Councils to pay the Federal 
     share of the cost of carrying out early learning programs in 
     the locality served by the Local Council.
       (b) Federal Share.--
       (1) In general.--The Federal share of the cost described in 
     subsection (a) shall be 85 percent for the first and second 
     years of the grant, 80 percent for the third and fourth years 
     of the grant, and 75 percent for the fifth and subsequent 
     years of the grant.
       (2) Non-federal share.--The non-Federal share of the cost 
     described in subsection (a) may be contributed in cash or in 
     kind, fairly evaluated, including facilities, equipment, or 
     services, which may be provided from State or local public 
     sources, or through donations from private entities. For the 
     purposes of this paragraph the term ``facilities'' includes 
     the use of facilities, but the term ``equipment'' means 
     donated equipment and not the use of equipment.
       (c) Maintenance of Effort.--The Secretary shall not award a 
     grant under this part to any State unless the Secretary first 
     determines that the total expenditures by the State and its 
     political subdivisions to support early learning programs 
     (other than funds used to pay the non-Federal share under 
     subsection (b)(2)) for the fiscal year for which the 
     determination is made is equal to or greater than such 
     expenditures for the preceding fiscal year.
       (d) Supplement Not Supplant.--Amounts received under this 
     part shall be used to supplement and not supplant other 
     Federal, State, and local public funds expended to promote 
     early learning.

     SEC. 11408. USES OF FUNDS.

       (a) In General.--Subject to section 11410, grant funds 
     under this part shall be used to pay for developing, 
     operating, or enhancing voluntary early learning programs 
     that are likely to produce sustained gains in early learning.
       (b) Limited Uses.--Subject to section 11410, Lead State 
     Agencies and Local Councils shall ensure that funds made 
     available under this part to the agencies and Local Councils 
     are used for 3 or more of the following activities:
       (1) Helping parents, caregivers, child care providers, and 
     educators increase their capacity to facilitate the 
     development of cognitive, language comprehension, expressive 
     language, social-emotional, and motor skills, and promote 
     learning readiness.
       (2) Promoting effective parenting.
       (3) Enhancing early childhood literacy.
       (4) Developing linkages among early learning programs 
     within a community and between early learning programs and 
     health care services for young children.
       (5) Increasing access to early learning opportunities for 
     young children with special needs, including developmental 
     delays, by facilitating coordination with other programs 
     serving such young children.
       (6) Increasing access to existing early learning programs 
     by expanding the days or times that the young children are 
     served, by expanding the number of young children served, or 
     by improving the affordability of the programs for low-income 
     families.
       (7) Improving the quality of early learning programs 
     through professional development and training activities, 
     increased compensation, and recruitment and retention 
     incentives, for early learning providers.
       (8) Removing ancillary barriers to early learning, 
     including transportation difficulties and absence of programs 
     during nontraditional work times.
       (c) Requirements.--Each Lead State Agency designated under 
     section 11410(c) and Local Councils receiving a grant under 
     this part shall ensure--
       (1) that Local Councils described in section 11414 work 
     with local educational agencies to identify cognitive, 
     social, emotional, and motor developmental abilities which 
     are necessary to support children's readiness for school;
       (2) that the programs, services, and activities assisted 
     under this part will represent developmentally appropriate 
     steps toward the acquisition of those abilities; and
       (3) that the programs, services, and activities assisted 
     under this part collectively provide benefits for children 
     cared for in their own homes as well as children placed in 
     the care of others.
       (d) Sliding Scale Payments.--States and Local Councils 
     receiving assistance under this part shall ensure that 
     programs, services, and activities assisted under this part 
     which customarily require a payment for such programs, 
     services, or activities, adjust the cost of such programs, 
     services, and activities provided to the individual or the 
     individual's child based on the individual's ability to pay.

     SEC. 11409. RESERVATIONS AND ALLOTMENTS.

       (a) Reservation for Indian Tribes, Alaska Natives, and 
     Native Hawaiians.--The Secretary shall reserve 1 percent of 
     the total amount appropriated under section 11405 for

[[Page 7259]]

     each fiscal year, to be allotted to Indian tribes, Regional 
     Corporations, and Native Hawaiian entities, of which--
       (1) 0.5 percent shall be available to Indian tribes; and
       (2) 0.5 percent shall be available to Regional Corporations 
     and Native Hawaiian entities.
       (b) Allotments.--From the funds appropriated under this 
     part for each fiscal year that are not reserved under 
     subsection (a), the Secretary shall allot to each State the 
     sum of--
       (1) an amount that bears the same ratio to 50 percent of 
     such funds as the number of children 4 years of age and 
     younger in the State bears to the number of such children in 
     all States; and
       (2) an amount that bears the same ratio to 50 percent of 
     such funds as the number of children 4 years of age and 
     younger living in families with incomes below the poverty 
     line in the State bears to the number of such children in all 
     States.
       (c) Minimum Allotment.--No State shall receive an allotment 
     under subsection (b) for a fiscal year in an amount that is 
     less than .40 percent of the total amount appropriated for 
     the fiscal year under this part.
       (d) Availability of Funds.--Any portion of the allotment to 
     a State that is not expended for activities under this part 
     in the fiscal year for which the allotment is made shall 
     remain available to the State for 2 additional years, after 
     which any unexpended funds shall be returned to the 
     Secretary. The Secretary shall use the returned funds to 
     carry out a discretionary grant program for research-based 
     early learning demonstration projects.
       (e) Data.--The Secretary shall make allotments under this 
     part on the basis of the most recent data available to the 
     Secretary.

     SEC. 11410. GRANT ADMINISTRATION.

       (a) Federal Administrative Costs.--The Secretary may use 
     not more than 3 percent of the amount appropriated under 
     section 11405 for a fiscal year to pay for the administrative 
     costs of carrying out this part, including the monitoring and 
     evaluation of State and local efforts.
       (b) State Administrative Costs.--A State that receives a 
     grant under this part may use--
       (1) not more than 2 percent of the funds made available 
     through the grant to carry out activities designed to 
     coordinate early learning programs on the State level, 
     including programs funded or operated by the State 
     educational agency, health, children and family, and human 
     service agencies, and any State-level collaboration or 
     coordination council involving early learning and education, 
     such as the entities funded under section 640(a)(5) of the 
     Head Start Act (42 U.S.C. 9835 (a)(5));
       (2) not more than 2 percent of the funds made available 
     through the grant for the administrative costs of carrying 
     out the grant program and the costs of reporting State and 
     local efforts to the Secretary; and
       (3) not more than 3 percent of the funds made available 
     through the grant for training, technical assistance, and 
     wage incentives provided by the State to Local Councils.
       (c) Lead State Agency.--
       (1) In general.--To be eligible to receive an allotment 
     under this part, the Governor of a State shall appoint, after 
     consultation with the leadership of the State legislature, a 
     Lead State Agency to carry out the functions described in 
     paragraph (2).
       (2) Lead state agency.--
       (A) Allocation of funds.--The Lead State Agency described 
     in paragraph (1) shall allocate funds to Local Councils as 
     described in section 11412.
       (B) Functions of agency.--In addition to allocating funds 
     pursuant to subparagraph (A), the Lead State Agency shall--
       (i) advise and assist Local Councils in the performance of 
     their duties under this part;
       (ii) develop and submit the State application;
       (iii) evaluate and approve applications submitted by Local 
     Councils under section 11413;
       (iv) ensure collaboration with respect to assistance 
     provided under this part between the State agency responsible 
     for education and the State agency responsible for children 
     and family services;
       (v) prepare and submit to the Secretary, an annual report 
     on the activities carried out in the State under this part, 
     which shall include a statement describing how all funds 
     received under this part are expended and documentation of 
     the effects that resources under this part have had on--

       (I) parental capacity to improve learning readiness in 
     their young children;
       (II) early childhood literacy;
       (III) linkages among early learning programs;
       (IV) linkages between early learning programs and health 
     care services for young children;
       (V) access to early learning activities for young children 
     with special needs;
       (VI) access to existing early learning programs through 
     expansion of the days or times that children are served;
       (VII) access to existing early learning programs through 
     expansion of the number of young children served;
       (VIII) access to and affordability of existing early 
     learning programs for low-income families;
       (IX) the quality of early learning programs resulting from 
     professional development, and recruitment and retention 
     incentives for caregivers; and
       (X) removal of ancillary barriers to early learning, 
     including transportation difficulties and absence of programs 
     during nontraditional work times; and

       (vi) ensure that training and research is made available to 
     Local Councils and that such training and research reflects 
     the latest available brain development and early childhood 
     development research related to early learning.

     SEC. 11411. STATE REQUIREMENTS.

       (a) Eligibility.--To be eligible for a grant under this 
     part, a State shall--
       (1) ensure that funds received by the State under this part 
     shall be subject to appropriation by the State legislature, 
     consistent with the terms and conditions required under State 
     law;
       (2) designate a Lead State Agency under section 11410(c) to 
     administer and monitor the grant and ensure State-level 
     coordination of early learning programs;
       (3) submit to the Secretary an application at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may require;
       (4) ensure that funds made available under this part are 
     distributed on a competitive basis throughout the State to 
     Local Councils serving rural, urban, and suburban areas of 
     the State; and
       (5) assist the Secretary in developing mechanisms to ensure 
     that Local Councils receiving funds under this part comply 
     with the requirements of this part.
       (b) State Preference.--In awarding grants to Local Councils 
     under this part, the State, to the maximum extent possible, 
     shall ensure that a broad variety of early learning programs 
     that provide a continuity of services across the age spectrum 
     assisted under this part are funded under this part, and 
     shall give preference to supporting--
       (1) a Local Council that meets criteria, that are specified 
     by the State and approved by the Secretary, for qualifying as 
     serving an area of greatest need for early learning programs; 
     and
       (2) a Local Council that demonstrates, in the application 
     submitted under section 11413, the Local Council's potential 
     to increase collaboration as a means of maximizing use of 
     resources provided under this part with other resources 
     available for early learning programs.
       (c) Local Preference.--In awarding grants under this part, 
     Local Councils shall give preference to supporting--
       (1) projects that demonstrate their potential to 
     collaborate as a means of maximizing use of resources 
     provided under this part with other resources available for 
     early learning programs;
       (2) programs that provide a continuity of services for 
     young children across the age spectrum, individually, or 
     through community-based networks or cooperative agreements; 
     and
       (3) programs that help parents and other caregivers promote 
     early learning with their young children.
       (d) Performance Goals.--
       (1) Assessments.--Based on information and data received 
     from Local Councils, and information and data available 
     through State resources, the State shall biennially assess 
     the needs and available resources related to the provision of 
     early learning programs within the State.
       (2) Performance goals.--Based on the analysis of 
     information described in paragraph (1), the State shall 
     establish measurable performance goals to be achieved through 
     activities assisted under this part.
       (3) Requirement.--The State shall award grants to Local 
     Councils only for purposes that are consistent with the 
     performance goals established under paragraph (2).
       (4) Report.--The State shall report to the Secretary 
     annually regarding the State's progress toward achieving the 
     performance goals established in paragraph (2) and any 
     necessary modifications to those goals, including the 
     rationale for the modifications.

     SEC. 11412. LOCAL ALLOCATIONS.

       (a) In General.--The Lead State Agency shall allocate to 
     Local Councils in the State not less than 93 percent of the 
     funds provided to the State under this part for a fiscal 
     year.
       (b) Limitation.--The Lead State Agency shall allocate funds 
     provided under this part on the basis of the population of 
     the locality served by the Local Council.

     SEC. 11413. LOCAL APPLICATIONS.

       (a) In General.--To be eligible to receive assistance under 
     this part, the Local Council shall submit an application to 
     the Lead State Agency at such time, in such manner, and 
     containing such information as the Lead State Agency may 
     require.
       (b) Contents.--Each application submitted pursuant to 
     subsection (a) shall include a statement ensuring that the 
     local government entity, Indian tribe, Regional Corporation, 
     or Native Hawaiian entity has established or designated a 
     Local Council under section 11414, and the Local Council has 
     developed a local plan for carrying out early learning 
     programs under this part that includes--

[[Page 7260]]

       (1) a needs and resources assessment concerning early 
     learning services and a statement describing how early 
     learning programs will be funded consistent with the 
     assessment;
       (2) a statement of how the Local Council will ensure that 
     early learning programs will meet the performance goals 
     reported by the Lead State Agency under this part; and
       (3) a description of how the Local Council will form 
     collaboratives among local youth, social service, and 
     educational providers to maximize resources and concentrate 
     efforts on areas of greatest need.

     SEC. 11414. LOCAL ADMINISTRATION.

       (a) Local Council.--
       (1) In general.--To be eligible to receive funds under this 
     part, a local government entity, Indian tribe, Regional 
     Corporation, or Native Hawaiian entity, as appropriate, shall 
     establish or designate a Local Council, which shall be 
     composed of--
       (A) representatives of local agencies directly affected by 
     early learning programs assisted under this part;
       (B) parents;
       (C) other individuals concerned with early learning issues 
     in the locality, such as representative entities providing 
     elementary education, child care resource and referral 
     services, early learning opportunities, child care, and 
     health services; and
       (D) other key community leaders.
       (2) Designating existing entity.--If a local government 
     entity, Indian tribe, Regional Corporation, or Native 
     Hawaiian entity has, before the date of enactment of the 
     Early Learning Opportunities Act, a Local Council or a 
     regional entity that is comparable to the Local Council 
     described in paragraph (1), the entity, tribe or corporation 
     may designate the council or entity as a Local Council under 
     this part, and shall be considered to have established a 
     Local Council in compliance with this subsection.
       (3) Functions.--The Local Council shall be responsible for 
     preparing and submitting the application described in section 
     11413.
       (b) Administration.--
       (1) Administrative costs.--Not more than 3 percent of the 
     funds received by a Local Council under this part shall be 
     used to pay for the administrative costs of the Local Council 
     in carrying out this part.
       (2) Fiscal agent.--A Local Council may designate any 
     entity, with a demonstrated capacity for administering 
     grants, that is affected by, or concerned with, early 
     learning issues, including the State, to serve as fiscal 
     agent for the administration of grant funds received by the 
     Local Council under this part.
                                 ______
                                 

                 USE OF CAPITOL GROUNDS FOR BIKE RODEO

                                 ______
                                 

                      McCONNELL AMENDMENT NO. 3140

  Mr. BROWNBACK (for Mr. McConnell) proposed an amendment to the 
concurrent resolution (H. Con. Res. 314) authorizing the use of the 
Capitol Grounds for a bike rodeo to be conducted by the Earth Force 
Youth Bike Summit; as follows:

       On page 3, line 9, after ``sales,'' insert 
     ``advertisements,''.
                                 ______
                                 

    USE OF CAPITOL GROUNDS FOR THE GREATER WASHINGTON SOAP BOX DERBY

                                 ______
                                 

                      McCONNELL AMENDMENT NO. 3141

  Mr. BROWNBACK (for Mr. McConnell) proposed an amendment to the 
concurrent resolution (H. Con. Res. 277) authorizing the use of the 
Capitol grounds for the Greater Washington Soap Box Derby; as follows:

       On page 3, line 10, after ``sales,'' insert 
     ``advertisements,''.
                                 ______
                                 

  CONGRESSIONAL ACCOUNTABILITY FOR REGULATORY INFORMATION ACT OF 1999

                                 ______
                                 

                        LEVIN AMENDMENT NO. 3142

  Mr. BROWNBACK (for Mr. Levin) proposed an amendment to the bill (S. 
1198) to amend chapter 8 of title 5, United States Code, to provide for 
a report by the General Accounting Office to Congress on agency 
regulatory actions, and for other purposes; as follows:

       On page 7, strike lines 15 through 19 and insert the 
     following:
       (1) Request for review.--When an agency publishes an 
     economically significant rule, a chairman or ranking member 
     of a committee of jurisdiction of either House of Congress 
     may request the Comptroller General of the United States to 
     review the rule.
                                 ______
                                 

                     EDUCATIONAL OPPORTUNITIES ACT

                                 ______
                                 

                      DOMENICI AMENDMENT NO. 3143

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted an amendment intended to be proposed by him to 
the bill, S. 2, supra; as follows:

       On page 478, between lines 2 and 3, insert the following:

     SEC. 542. CHARTER SCHOOL DISTRICTS.

       Section 5402 (as transferred and so redesignated by section 
     541) is amended by adding at the end the following
       ``(g) Eligibility of Charter School Districts.--
       ``(1) In general.--For purposes of this part, a charter 
     school district--
       ``(A) in the case of a State that elects not to participate 
     in the program under this part or does not have an 
     application approved under section 5403, may be an eligible 
     applicant under subsection (b); or
       ``(A) shall be eligible to receive a subgrant under section 
     5404(f)(1).
       ``(2) Definition.--In this subsection, the term `charter 
     school district' means a school district that--
       ``(A) has been designated under a specific State statute as 
     a charter school district; and
       ``(B) meets other requirements determined appropriate by 
     the Secretary to further the purposes of this part.''.
                                 ______
                                 

                DOMENICI (AND OTHERS) AMENDMENT NO. 3144

  (Ordered to lie on the table.)
  Mr. DOMENICI (for himself, Mr. Dodd, Mr. Cochran, Mr. Cleland, and 
Ms. Mikulski) submitted an amendment intended to be proposed by them to 
the bill, S. 2, supra; as follows:

       On page 490, strike lines 14 through 17 and insert the 
     following:
       ``(d) Authorization of Appropriations.--
       ``(1) Partnerships in character education program.--There 
     are authorized to be appropriated to carry out programs 
     described in section 5702 with funds provided under this 
     section, $50,000,000 for fiscal year 2001 and such sums as 
     may be necessary for each of the 4 succeeding fiscal years.
       ``(2) Other programs, projects, and activities.--There are 
     authorized to be appropriated to carry out other programs, 
     projects, and activities described in this part (other than 
     programs described in section 5702) with funds provided under 
     this section, $100,000,000 for fiscal year 2001 and such sums 
     as may be necessary for each of the 4 succeeding fiscal 
     years.
       On page 501, between lines 2 and 3, insert the following:
       ``(h) Amount of Grants for State Educational Agencies.--
     Subject to the availability of appropriations, the Secretary 
     shall make grants under this section in amounts of not less 
     than $500,000 to State educational agencies in partnerships 
     described in subsection (a)(2) that submit applications under 
     subsection (b) that meet such requirements as the Secretary 
     may establish under this section.

                          ____________________