[Congressional Record (Bound Edition), Volume 147 (2001), Part 18]
[House]
[Pages 25623-25914]
[From the U.S. Government Publishing Office, www.gpo.gov]



     CONFERENCE REPORT ON H.R. 1, NO CHILD LEFT BEHIND ACT OF 2001

  Mr. BOEHNER submitted the following conference report and statement 
on the bill (H.R. 1) to close the achievement gap with accountability, 
flexibility, and choice, so that no child is left behind:

                  Conference Report (H. Rept. 107-334)

  The committee of conference on the disagreeing votes of the two 
Houses on the amendment of the Senate to the bill (H.R. 1), to close 
the achievement gap with accountability, flexibility, and choice, so 
that no child is left behind, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
  That the House recede from its disagreement to the amendment of the 
Senate and agree to the same with an amendment as follows:
  In lieu of the matter proposed to be inserted by the Senate 
amendment, inserting the following:

     SECTION 1. SHORT TITLE.

       This title may be cited as the ``No Child Left Behind Act 
     of 2001''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

Sec. 101. Improving the academic achievement of the disadvantaged.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.

  TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

Sec. 301. Language instruction for limited English proficient children 
              and immigrant children and youth.

                     TITLE IV--21ST CENTURY SCHOOLS

Sec. 401. 21st century schools.

  TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.

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

Sec. 701. Indians.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.

                     TITLE VIII--IMPACT AID PROGRAM

Sec. 801. Payments relating to Federal acquisition of real property.
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                            PART A--REPEALS

Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.

                         PART B--REDESIGNATIONS

Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education 
              Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.

                       PART C--HOMELESS EDUCATION

Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.

             PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian school.
Sec. 1045. Enrollment and general assistance payments.

                  PART E--HIGHER EDUCATION ACT OF 1965

Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.

                PART F--GENERAL EDUCATION PROVISIONS ACT

Sec. 1061. Student privacy, parental access to information, and 
              administration of certain physical examinations to 
              minors.
Sec. 1062. Technical corrections.

                  PART G--MISCELLANEOUS OTHER STATUTES

Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.

[[Page 25624]]

Sec. 1074. Educational Research, Development, Dissemination, and 
              Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.

     SEC. 3. 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. 4. TRANSITION.

       (a) Multi-Year Awards.--Except as otherwise provided in 
     this Act, the recipient of a multi-year award under the 
     Elementary and Secondary Education Act of 1965, as that Act 
     was in effect prior to the date of enactment of this Act, 
     shall continue to receive funds in accordance with the terms 
     of that award, except that no additional funds may be awarded 
     after September 30, 2002.
       (b) Planning and Transition.--Notwithstanding any other 
     provision of law, a recipient of funds under the Elementary 
     and Secondary Education Act of 1965, as that Act was in 
     effect prior to the date of enactment of this Act, may use 
     funds available to the recipient under that predecessor 
     authority to carry out necessary and reasonable planning and 
     transition activities in order to ensure an orderly 
     implementation of programs authorized by this Act, and the 
     amendments made by this Act.
       (c) Orderly Transition.--The Secretary shall take such 
     steps as are necessary to provide for the orderly transition 
     to, and implementation of, programs authorized by this Act, 
     and by the amendments made by this Act, from programs 
     authorized by the Elementary and Secondary Education Act of 
     1965, as that Act was in effect prior to the date of 
     enactment of this Act.

     SEC. 5. EFFECTIVE DATE.

       (a) In General.--Except as otherwise provided in this Act, 
     this Act, and the amendments made by this Act, shall be 
     effective upon the date of enactment of this Act.
       (b) Noncompetitive Programs.--With respect to 
     noncompetitive programs under which any funds are allotted by 
     the Secretary of Education to recipients on the basis of a 
     formula, this Act, and the amendments made by this Act, shall 
     take effect on July 1, 2002.
       (c) Competitive Programs.--With respect to programs that 
     are conducted by the Secretary on a competitive basis, this 
     Act, and the amendments made by this Act, shall take effect 
     with respect to appropriations for use under those programs 
     for fiscal year 2002.
       (d) Impact Aid.--With respect to title VIII (Impact Aid), 
     this Act, and the amendments made by this Act, shall take 
     effect with respect to appropriations for use under that 
     title for fiscal year 2002.

     SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY 
                   EDUCATION ACT OF 1965.

       The Act is amended--
       (1) in the heading of section 1, by striking ``table of 
     contents'' and inserting ``short title''; and
       (2) by adding after section 1 the following new section:

     ``SEC. 2. TABLE OF CONTENTS.

       ``The table of contents for this Act is as follows:

``Sec. 1. Short title.
``Sec. 2. Table of contents.
   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.

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

                ``Subpart 1--Basic Program Requirements

``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and 
              school improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.

                        ``Subpart 2--Allocations

``Sec. 1121. Grants for the outlying areas and the secretary of the 
              interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local 
              educational agencies in fiscal years after fiscal year 
              2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.

                    ``Subpart 2--Early Reading First

``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local early reading first grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.

        ``Subpart 4--Improving Literacy Through School Libraries

``Sec. 1251. Improving literacy through school libraries.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan; 
              authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.

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

``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.

                   ``Subpart 1--State Agency Programs

``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.

                   ``Subpart 2--Local Agency Programs

``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving 
              funds under this section.
``Sec. 1426. Accountability.

                    ``Subpart 3--General Provisions

``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close up fellowship program.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.
``Sec. 1708. Authorization of appropriations.

                  ``PART H--SCHOOL DROPOUT PREVENTION

``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

[[Page 25625]]

           ``Subpart 2--School Dropout Prevention Initiative

``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.
``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.

                      ``PART I--GENERAL PROVISIONS

``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or 
              control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.
 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.

                     ``Subpart 1--Grants to States

``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.

          ``Subpart 2--Subgrants to Local Educational Agencies

``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.

            ``Subpart 3--Subgrants to Eligible Partnerships

``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.

                      ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

``Sec. 2151. National activities of demonstrated effectiveness.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification 
              programs.
``Sec. 2307. Reporting requirements.

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining 
              teachers.

                    ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

                 ``Subpart 2--National Writing Project

``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.

                      ``Subpart 3--Civic Education

``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education 
              exchange programs.
``Sec. 2346. Authorization of appropriations.

         ``Subpart 4--Teaching of Traditional American History

``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.

               ``Subpart 5--Teacher Liability Protection

``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.

             ``Subpart 1--State and Local Technology Grants

``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.

              ``Subpart 2--National Technology Activities

``Sec. 2421. National activities.
 ``Sec. 2422. National education technology plan.

                 ``Subpart 3--Ready-to-Learn Television

``Sec. 2431. Ready-to-Learn Television.

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``Sec. 2441. Internet safety.
 ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS
``Sec. 3001. Authorizations of appropriations; condition on 
              effectiveness of parts.

   ``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
                        ACADEMIC ACHIEVEMENT ACT

``Sec. 3101. Short title.
``Sec. 3102. Purposes.

``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.

             ``Subpart 2--Accountability and Administration

``Sec. 3121. Evaluations.
``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
 ``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

     ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.

            ``Subpart 1--Program Development and Enhancement

``Sec. 3211. Financial assistance for language instruction educational 
              programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement 
              activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.

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

``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.

                 ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.

                      ``Subpart 5--Administration

``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.

                      ``PART C--GENERAL PROVISIONS

``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.
                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``PART A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.

                       ``Subpart 1--State Grants

``Sec. 4111. Reservations and allotments.

[[Page 25626]]

``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.

                     ``Subpart 2--National Programs

``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory 
              Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.

                      ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                    ``Subpart 4--General Provisions

``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.

           ``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS

``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.

                 ``PART C--ENVIRONMENTAL TOBACCO SMOKE

``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.
 ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                     ``PART A--INNOVATIVE PROGRAMS

``Sec. 5101. Purposes, State and local responsibility.

                 ``Subpart 1--State and Local Programs

``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.

                      ``Subpart 2--State Programs

``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.

            ``Subpart 3--Local Innovative Education Programs

``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.

                    ``Subpart 4--General Provisions

``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for 
              successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.

 ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.

          ``Subpart 3--Voluntary Public School Choice Programs

``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.

                  ``PART C--MAGNET SCHOOLS ASSISTANCE

``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.

            ``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

``Sec. 5401. Authorization of appropriations.

           ``Subpart 1--Fund for the Improvement of Education

``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``Sec. 5421. Elementary and secondary school counseling programs.

            ``Subpart 3--Partnerships in Character Education

``Sec. 5431. Partnerships in Character Education program.

               ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller Learning Communities.

  ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                Program

``Sec. 5451. Inexpensive book distribution program for reading 
              motivation.

               ``Subpart 6--Gifted and Talented Students

``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.

                   ``Subpart 7--Star Schools Program

``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.

                      ``Subpart 8--Ready to Teach

``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.

                    ``Subpart 10--Physical Education

``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.

               ``Subpart 11--Community Technology Centers

``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
             Whaling and Trading Partners in Massachusetts

``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.

             ``Subpart 13--Excellence in Economic Education

``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.

     ``Subpart 14--Grants to Improve the Mental Health of Children

``Sec. 5541. Grants for the integration of schools and mental health 
              systems.
``Sec. 5542. Promotion of school readiness through early childhood 
              emotional and social development.

                    ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.

               ``Subpart 17--Combatting Domestic Violence

``Sec. 5571. Grants to combat the impact of experiencing or witnessing 
              domestic violence on elementary and secondary school 
              children.

            ``Subpart 18--Healthy, High-Performance Schools

``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.

[[Page 25627]]

``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.

   ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. mination.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
           Agencies Impacted by Federal Property Acquisition

``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.

              ``Subpart 21--Women's Educational Equity Act

``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purposes.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.
               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                      ``Subpart 1--Accountability

``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.

 ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.

         ``Subpart 3--State and Local Flexibility Demonstration

``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.

                  ``PART B--RURAL EDUCATION INITIATIVE

``Sec. 6201. Short title.
``Sec. 6202. Purpose.

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

``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.

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

``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.

                    ``Subpart 3--General Provisions

``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. Authorization of appropriations.

                      ``PART C--GENERAL PROVISIONS

``Sec. 6301. Prohibition against Federal mandates, direction, or 
              control.
``Sec. 6302. Rule of construction on equalized spending.
   ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``PART A--INDIAN EDUCATION

``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.

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

``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.

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

``Sec. 7121. Improvement of educational opportunities for Indian 
              children.
``Sec. 7122. Professional development for teachers and education 
              professionals.

                    ``Subpart 3--National Activities

``Sec. 7131. National research activities.
``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and 
              development.
``Sec. 7136. Improvement of educational opportunities for adult 
              Indians.

                  ``Subpart 4--Federal Administration

``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.

                  ``PART B--NATIVE HAWAIIAN EDUCATION

``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.

                   ``PART C--ALASKA NATIVE EDUCATION

``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.
                        ``TITLE VIII--IMPACT AID
``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
``Sec. 8004. Policies and procedures relating to children residing on 
              Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.
                     ``TITLE IX--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated 
              schools.

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

``Sec. 9201. Consolidation of State administrative funds for elementary 
              and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior 
              funds.

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

``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency 
              assurances.
``Sec. 9305. Consolidated local plans or applications.
``Sec. 9306. Other general assurances.

                           ``PART D--WAIVERS

``Sec. 9401. Waivers of statutory and regulatory requirements.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school 
              children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or 
              instruction.
``Sec. 9506. Private, religious, and home schools.

                     ``Subpart 2--Other Provisions

``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal 
              funds.
``Sec. 9528. Armed forces recruiter access to students and student 
              recruiting information.

[[Page 25628]]

``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for 
              teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.

                         ``PART F--EVALUATIONS

``Sec. 9601. Evaluations.''.
    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

     SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE 
                   DISADVANTAGED.

       Title I of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6301 et seq.) is amended to read as follows:
   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

     ``SEC. 1001. STATEMENT OF PURPOSE.

       ``The purpose of this title is to ensure that all children 
     have a fair, equal, and significant opportunity to obtain a 
     high-quality education and reach, at a minimum, proficiency 
     on challenging State academic achievement standards and state 
     academic assessments. This purpose can be accomplished by--
       ``(1) ensuring that high-quality academic assessments, 
     accountability systems, teacher preparation and training, 
     curriculum, and instructional materials are aligned with 
     challenging State academic standards so that students, 
     teachers, parents, and administrators can measure progress 
     against common expectations for student academic achievement;
       ``(2) meeting the educational needs of low-achieving 
     children in our Nation's highest-poverty schools, limited 
     English proficient children, migratory children, children 
     with disabilities, Indian children, neglected or delinquent 
     children, and young children in need of reading assistance;
       ``(3) closing the achievement gap between high- and low-
     performing children, especially the achievement gaps between 
     minority and nonminority students, and between disadvantaged 
     children and their more advantaged peers;
       ``(4) holding schools, local educational agencies, and 
     States accountable for improving the academic achievement of 
     all students, and identifying and turning around low-
     performing schools that have failed to provide a high-quality 
     education to their students, while providing alternatives to 
     students in such schools to enable the students to receive a 
     high-quality education;
       ``(5) distributing and targeting resources sufficiently to 
     make a difference to local educational agencies and schools 
     where needs are greatest;
       ``(6) improving and strengthening accountability, teaching, 
     and learning by using State assessment systems designed to 
     ensure that students are meeting challenging State academic 
     achievement and content standards and increasing achievement 
     overall, but especially for the disadvantaged;
       ``(7) providing greater decisionmaking authority and 
     flexibility to schools and teachers in exchange for greater 
     responsibility for student performance;
       ``(8) providing children an enriched and accelerated 
     educational program, including the use of schoolwide programs 
     or additional services that increase the amount and quality 
     of instructional time;
       ``(9) promoting schoolwide reform and ensuring the access 
     of children to effective, scientifically based instructional 
     strategies and challenging academic content;
       ``(10) significantly elevating the quality of instruction 
     by providing staff in participating schools with substantial 
     opportunities for professional development;
       ``(11) coordinating services under all parts of this title 
     with each other, with other educational services, and, to the 
     extent feasible, with other agencies providing services to 
     youth, children, and families; and
       ``(12) affording parents substantial and meaningful 
     opportunities to participate in the education of their 
     children.

     ``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Local Educational Agency Grants.--For the purpose of 
     carrying out part A, there are authorized to be 
     appropriated--
       ``(1) $13,500,000,000 for fiscal year 2002;
       ``(2) $16,000,000,000 for fiscal year 2003;
       ``(3) $18,500,000,000 for fiscal year 2004;
       ``(4) $20,500,000,000 for fiscal year 2005;
       ``(5) $22,750,000,000 for fiscal year 2006; and
       ``(6) $25,000,000,000 for fiscal year 2007.
       ``(b) Reading First.--
       ``(1) Reading first.--For the purpose of carrying out 
     subpart 1 of part B, there are authorized to be appropriated 
     $900,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(2) Early reading first.--For the purpose of carrying out 
     subpart 2 of part B, there are authorized to be appropriated 
     $75,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(3) Even start.--For the purpose of carrying out subpart 
     3 of part B, there are authorized to be appropriated 
     $260,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(4) Improving literacy through school libraries.--For the 
     purpose of carrying out subpart 4 of part B, there are 
     authorized to be appropriated $250,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(c) Education of Migratory Children.--For the purpose of 
     carrying out part C, there are authorized to be appropriated 
     $410,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(d) Prevention and Intervention Programs for Youth Who 
     Are Neglected, Delinquent, or at Risk.--For the purpose of 
     carrying out part D, there are authorized to be appropriated 
     $50,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(e) Federal Activities.--
       ``(1) Sections 1501 and 1502.--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 
     2002 and each of the 5 succeeding fiscal years.
       ``(2) Section 1504.--
       ``(A) In general.--For the purpose of carrying out section 
     1504, there are authorized to be appropriated such sums as 
     may be necessary for fiscal year 2002 and for each of the 5 
     succeeding fiscal years.
       ``(B) Special rule.--Of the funds appropriated pursuant to 
     subparagraph (A), not more than 30 percent may be used for 
     teachers associated with students participating in the 
     programs described in subsections (a)(1), (b)(1), and (c)(1).
       ``(f) Comprehensive School Reform.--For the purpose of 
     carrying out part F, there are authorized to be appropriated 
     such sums as may be necessary for fiscal year 2002 and each 
     of the 5 succeeding fiscal years.
       ``(g) Advanced Placement.--For the purposes of carrying out 
     part G, there are authorized to be appropriated such sums for 
     fiscal year 2002 and each 5 succeeding fiscal year.
       ``(h) School Dropout Prevention.--For the purpose of 
     carrying out part H, there are authorized to be appropriated 
     $125,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years, of 
     which--
       ``(1) up to 10 percent shall be available to carry out 
     subpart 1 of part H for each fiscal year; and
       ``(2) the remainder shall be available to carry out subpart 
     2 of part H for each fiscal year.
       ``(i) School Improvement.--For the purpose of carrying out 
     section 1003(g), there are authorized to be appropriated 
     $500,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.

     ``SEC. 1003. SCHOOL IMPROVEMENT.

       ``(a) State Reservations.--Each State shall reserve 2 
     percent of the amount the State receives under subpart 2 of 
     part A for fiscal years 2002 and 2003, and 4 percent of the 
     amount received under such subpart for fiscal years 2004 
     through 2007, to carry out subsection (b) and to carry out 
     the State's responsibilities under sections 1116 and 1117, 
     including carrying out the State educational agency's 
     statewide system of technical assistance and support for 
     local educational agencies.
       ``(b) Uses.--Of the amount reserved under subsection (a) 
     for any fiscal year, the State educational agency--
       ``(1) shall allocate not less than 95 percent of that 
     amount directly to local educational agencies for schools 
     identified for school improvement, corrective action, and 
     restructuring, for activities under section 1116(b); or
       ``(2) may, with the approval of the local educational 
     agency, directly provide for these activities or arrange for 
     their provision through other entities such as school support 
     teams or educational service agencies.
       ``(c) Priority.--The State educational agency, in 
     allocating funds to local educational agencies under this 
     section, shall give priority to local educational agencies 
     that--
       ``(1) serve the lowest-achieving schools;
       ``(2) demonstrate the greatest need for such funds; and
       ``(3) demonstrate the strongest commitment to ensuring that 
     such funds are used to enable the lowest-achieving schools to 
     meet the progress goals in school improvement plans under 
     section 1116 (b)(3)(A)(v).
       ``(d) Unused Funds.--If, after consultation with local 
     educational agencies in the State, the State educational 
     agency determines that the amount of funds reserved to carry 
     out subsection (b) is greater than the amount needed to 
     provide the assistance described in that subsection, the 
     State educational agency shall allocate the excess amount to 
     local educational agencies in accordance with--
       ``(1) the relative allocations the State educational agency 
     made to those agencies for that fiscal year under subpart 2 
     of part A; or
       ``(2) section 1126(c).
       ``(e) Special Rule.--Notwithstanding any other provision of 
     this section, the amount of funds reserved by the State 
     educational agency under subsection (a) in any fiscal year 
     shall not decrease the amount of funds each local educational 
     agency receives under subpart 2 below the amount received by 
     such local educational agency under such subpart for the 
     preceding fiscal year.
       ``(f) Reporting.--The State educational agency shall make 
     publicly available a list of those schools that have received 
     funds or services pursuant to subsection (b) and the 
     percentage of students from each school from families with 
     incomes below the poverty line.
       ``(g) Assistance for Local School Improvement.--
       ``(1) Program authorized.--The Secretary shall award grants 
     to States to enable the States to provide subgrants to local 
     educational agencies for the purpose of providing assistance 
     for school improvement consistent with section 1116.

[[Page 25629]]

       ``(2) State allotments.--Such grants shall be allotted 
     among States, the Bureau of Indian Affairs, and the outlying 
     areas, in proportion to the funds received by the States, the 
     Bureau of Indian Affairs, and the outlying areas, 
     respectively, for the fiscal year under parts A, C, and D of 
     this title. The Secretary shall expeditiously allot a portion 
     of such funds to States for the purpose of assisting local 
     educational agencies and schools that were in school 
     improvement status on the date preceding the date of 
     enactment of the No Child Left Behind Act of 2001.
       ``(3) Reallocations.--If a State does not receive funds 
     under this subsection, the Secretary shall reallocate such 
     funds to other States in the same proportion funds are 
     allocated under paragraph (2).
       ``(4) State applications.--Each State educational agency 
     that desires to receive funds under this subsection shall 
     submit an application to the Secretary at such time, and 
     containing such information, as the Secretary shall 
     reasonably require, except that such requirement shall be 
     waived if a State educational agency submitted such 
     information as part of its State plan under this part. Each 
     State application shall describe how the State educational 
     agency will allocate such funds in order to assist the State 
     educational agency and local educational agencies in 
     complying with school improvement, corrective action, and 
     restructuring requirements of section 1116.
       ``(5) Local educational agency grants.--A grant to a local 
     educational agency under this subsection shall be--
       ``(A) of sufficient size and scope to support the 
     activities required under sections 1116 and 1117, but not 
     less than $50,000 and not more than $500,000 for each 
     participating school;
       ``(B) integrated with other funds awarded by the State 
     under this Act; and
       ``(C) renewable for 2 additional 1-year periods if schools 
     are meeting the goals in their school improvement plans 
     developed under section 1116.
       ``(6) Priority.--The State, in awarding such grants, shall 
     give priority to local educational agencies with the lowest-
     achieving schools that demonstrate--
       ``(A) the greatest need for such funds; and
       ``(B) the strongest commitment to ensuring that such funds 
     are used to provide adequate resources to enable the lowest-
     achieving schools to meet the goals under school and local 
     educational agency improvement, corrective action, and 
     restructuring plans under section 1116.
       ``(7) Allocation.--A State educational agency that receives 
     a grant under this subsection shall allocate at least 95 
     percent of the grant funds directly to local educational 
     agencies for schools identified for school improvement, 
     corrective action, or restructuring to carry out activities 
     under section 1116(b), or may, with the approval of the local 
     educational agency, directly provide for these activities or 
     arrange for their provision through other entities such as 
     school support teams or educational service agencies.
       ``(8) Administrative costs.--A State educational agency 
     that receives a grant award under this subsection may reserve 
     not more than 5 percent of such grant funds for 
     administration, evaluation, and technical assistance 
     expenses.
       ``(9) Local awards.--Each local educational agency that 
     applies for assistance under this subsection shall describe 
     how it will provide the lowest-achieving schools the 
     resources necessary to meet goals under school and local 
     educational agency improvement, corrective action, and 
     restructuring plans under section 1116.

     ``SEC. 1004. STATE ADMINISTRATION.

       ``(a) In General.--Except as provided in subsection (b), to 
     carry out administrative duties assigned under parts A, C, 
     and D of this title, each State may reserve the greater of--
       ``(1) 1 percent of the amounts received under such parts; 
     or
       ``(2) $400,000 ($50,000 in the case of each outlying area).
       ``(b) Exception.--If the sum of the amounts appropriated 
     for parts A, C, and D of this title is equal to or greater 
     than $14,000,000,000, then the reservation described in 
     subsection (a)(1) shall not exceed 1 percent of the amount 
     the State would receive, if $14,000,000,000 were allocated 
     among the States for parts A, C, and D of this title.

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

                ``Subpart 1--Basic Program Requirements

     ``SEC. 1111. STATE PLANS.

       ``(a) Plans Required.--
       ``(1) In general.--Any State desiring to receive a grant 
     under this part shall submit to the Secretary a plan, 
     developed in consultation with local educational agencies, 
     teachers, principals, pupil services personnel, 
     administrators (including administrators of programs 
     described in other parts of this title), 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, the 
     Head Start Act, the Adult Education and Family Literacy Act, 
     and the McKinney-Vento Homeless Assistance Act.
       ``(2) Consolidated plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidated plan 
     under section 9302.
       ``(b) Academic Standards, Academic Assessments, and 
     Accountability.--
       ``(1) Challenging academic standards.--
       ``(A) In general.--Each State plan shall demonstrate that 
     the State has adopted challenging academic content standards 
     and challenging student academic achievement standards that 
     will be used by the State, its local educational agencies, 
     and its schools to carry out this part, except that a State 
     shall not be required to submit such standards to the 
     Secretary.
       ``(B) Same standards.--The academic standards required by 
     subparagraph (A) shall be the same academic standards that 
     the State applies to all schools and children in the State.
       ``(C) Subjects.--The State shall have such academic 
     standards for all public elementary school and secondary 
     school children, including children served under this part, 
     in subjects determined by the State, but including at least 
     mathematics, reading or language arts, and (beginning in the 
     2005-2006 school year) science, which shall include the same 
     knowledge, skills, and levels of achievement expected of all 
     children.
       ``(D) Challenging academic standards.--Standards under this 
     paragraph shall include--
       ``(i) challenging academic 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 academic achievement standards 
     that--

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

       ``(E) Information.--For the subjects in which students will 
     be served under this part, but for which a State is not 
     required by subparagraphs (A), (B), and (C) to develop, and 
     has not otherwise developed, such academic standards, the 
     State plan shall describe a strategy for ensuring that 
     students are taught the same knowledge and skills in such 
     subjects and held to the same expectations as are all 
     children.
       ``(F) Existing standards.--Nothing in this part shall 
     prohibit a State from revising, consistent with this section, 
     any standard adopted under this part before or after the date 
     of enactment of the No Child Left Behind Act of 2001.
       ``(2) Accountability.--
       ``(A) In general.--Each State plan shall demonstrate that 
     the State has developed and is implementing a single, 
     statewide State accountability system that will be effective 
     in ensuring that all local educational agencies, public 
     elementary schools, and public secondary schools make 
     adequate yearly progress as defined under this paragraph. 
     Each State accountability system shall--
       ``(i) be based on the academic standards and academic 
     assessments adopted under paragraphs (1) and (3), and other 
     academic indicators consistent with subparagraph (C)(vi) and 
     (vii), and shall take into account the achievement of all 
     public elementary school and secondary school students;
       ``(ii) be the same accountability system the State uses for 
     all public elementary schools and secondary schools or all 
     local educational agencies in the State, except that public 
     elementary schools, secondary schools, and local educational 
     agencies not participating under this part are not subject to 
     the requirements of section 1116; and
       ``(iii) include sanctions and rewards, such as bonuses and 
     recognition, the State will use to hold local educational 
     agencies and public elementary schools and secondary schools 
     accountable for student achievement and for ensuring that 
     they make adequate yearly progress in accordance with the 
     State's definition under subparagraphs (B) and (C).
       ``(B) Adequate yearly progress.--Each State plan shall 
     demonstrate, based on academic assessments described in 
     paragraph (3), and in accordance with this paragraph, what 
     constitutes adequate yearly progress of the State, and of all 
     public elementary schools, secondary schools, and local 
     educational agencies in the State, toward enabling all public 
     elementary school and secondary school students to meet the 
     State's student academic achievement standards, while working 
     toward the goal of narrowing the achievement gaps in the 
     State, local educational agencies, and schools.
       ``(C) Definition.--`Adequate yearly progress' shall be 
     defined by the State in a manner that--
       ``(i) applies the same high standards of academic 
     achievement to all public elementary school and secondary 
     school students in the State;
       ``(ii) is statistically valid and reliable;
       ``(iii) results in continuous and substantial academic 
     improvement for all students;
       ``(iv) measures the progress of public elementary schools, 
     secondary schools and local educational agencies and the 
     State based primarily on the academic assessments described 
     in paragraph (3);
       ``(v) includes separate measurable annual objectives for 
     continuous and substantial improvement for each of the 
     following:

       ``(I) The achievement of all public elementary school and 
     secondary school students.
       ``(II) The achievement of--

       ``(aa) economically disadvantaged students;
       ``(bb) students from major racial and ethnic groups;

[[Page 25630]]

       ``(cc) students with disabilities; and
       ``(dd) students with limited English proficiency;

     except that disaggregation of data under subclause (II) 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 personally 
     identifiable information about an individual student;

       ``(vi) in accordance with subparagraph (D), includes 
     graduation rates for public secondary school students and at 
     least 1 other academic indicator, as determined by the State 
     for all public elementary school students; and
       ``(vii) in accordance with subparagraph (D), at the State's 
     discretion, may also include other academic indicators, as 
     determined by the State for all public school students, 
     measured separately for each group described in clause (v), 
     such as achievement on additional State or locally 
     administered assessments, decreases in grade-to-grade 
     retention rates, attendance rates, and changes in the 
     percentages of students completing gifted and talented, 
     advanced placement, and college preparatory courses.
       ``(D) Requirements for other indicators.--In carrying out 
     subparagraph (C)(vi) and (vii), the State--
       ``(i) shall ensure that the indicators described in those 
     provisions are valid and reliable, and are consistent with 
     relevant, nationally recognized professional and technical 
     standards, if any; and
       ``(ii) except as provided in subparagraph (I)(i), may not 
     use those indicators to reduce the number of, or change, the 
     schools that would otherwise be subject to school 
     improvement, corrective action, or restructuring under 
     section 1116 if those additional indicators were not used, 
     but may use them to identify additional schools for school 
     improvement or in need of corrective action or restructuring.
       ``(E) Starting point.--Each State, using data for the 2001-
     2002 school year, shall establish the starting point for 
     measuring, under subparagraphs (G) and (H), the percentage of 
     students meeting or exceeding the State's proficient level of 
     academic achievement on the State assessments under paragraph 
     (3) and pursuant to the timeline described in subparagraph 
     (F). The starting point shall be, at a minimum, based on the 
     higher of the percentage of students at the proficient level 
     who are in--
       ``(i) the State's lowest achieving group of students 
     described in subparagraph (C)(v)(II); or
       ``(ii) the school at the 20th percentile in the State, 
     based on enrollment, among all schools ranked by the 
     percentage of students at the proficient level.
       ``(F) Timeline.--Each State shall establish a timeline for 
     adequate yearly progress. The timeline shall ensure that not 
     later than 12 years after the end of the 2001-2002 school 
     year, all students in each group described in subparagraph 
     (C)(v) will meet or exceed the State's proficient level of 
     academic achievement on the State assessments under paragraph 
     (3).
       ``(G) Measurable objectives.--Each State shall establish 
     statewide annual measurable objectives, pursuant to 
     subparagraph (C)(v), for meeting the requirements of this 
     paragraph, and which--
       ``(i) shall be set separately for the assessments of 
     mathematics and reading or language arts under subsection 
     (a)(3);
       ``(ii) shall be the same for all schools and local 
     educational agencies in the State;
       ``(iii) shall identify a single minimum percentage of 
     students who are required to meet or exceed the proficient 
     level on the academic assessments that applies separately to 
     each group of students described in subparagraph (C)(v);
       ``(iv) shall ensure that all students will meet or exceed 
     the State's proficient level of academic achievement on the 
     State assessments within the State's timeline under 
     subparagraph (F); and
       ``(v) may be the same for more than 1 year, subject to the 
     requirements of subparagraph (H).
       ``(H) Intermediate goals for annual yearly progress.--Each 
     State shall establish intermediate goals for meeting the 
     requirements, including the measurable objectives in 
     subparagraph (G), of this paragraph and that shall--
       ``(i) increase in equal increments over the period covered 
     by the State's timeline under subparagraph (F);
       ``(ii) provide for the first increase to occur in not more 
     than two years; and
       ``(iii) provide for each following increase to occur in not 
     more than three years.
       ``(I) Annual improvement for schools.--Each year, for a 
     school to make adequate yearly progress under this 
     paragraph--
       ``(i) each group of students described in subparagraph 
     (C)(v) must meet or exceed the objectives set by the State 
     under subparagraph (G), except that if any group described in 
     subparagraph (C)(v) does not meet those objectives in any 
     particular year, the school shall be considered to have made 
     adequate yearly progress if the percentage of students in 
     that group who did not meet or exceed the proficient level of 
     academic achievement on the State assessments under paragraph 
     (3) for that year decreased by 10 percent of that percentage 
     from the preceding school year and that group made progress 
     on one or more of the academic indicators described in 
     subparagraph (C)(vi) or (vii); and
       ``(ii) not less than 95 percent of each group of students 
     described in subparagraph (C)(v) who are enrolled in the 
     school are required to take the assessments, consistent with 
     paragraph (3)(C)(xi) and with accommodations, guidelines, and 
     alternative assessments provided in the same manner as those 
     provided under section 612(a)(17)(A) of the Individuals with 
     Disabilities Education Act and paragraph (3), on which 
     adequate yearly progress is based (except that the 95 percent 
     requirement described in this clause shall not apply in a 
     case in which the number of students in a category is 
     insufficient to yield statistically reliable information or 
     the results would reveal personally identifiable information 
     about an individual student).
       ``(J) Uniform averaging procedure.--For the purpose of 
     determining whether schools are making adequate yearly 
     progress, the State may establish a uniform procedure for 
     averaging data which includes one or more of the following:
       ``(i) The State may average data from the school year for 
     which the determination is made with data from one or two 
     school years immediately preceding that school year.
       ``(ii) Until the assessments described in paragraph (3) are 
     administered in such manner and time to allow for the 
     implementation of the uniform procedure for averaging data 
     described in clause (i), the State may use the academic 
     assessments that were required under paragraph (3) as that 
     paragraph was in effect on the day preceding the date of 
     enactment of the No Child Left Behind Act of 2001, provided 
     that nothing in this clause shall be construed to undermine 
     or delay the determination of adequate yearly progress, the 
     requirements of section 1116, or the implementation of 
     assessments under this section.
       ``(iii) The State may use data across grades in a school.
       ``(3) Academic assessments.--
       ``(A) In general.--Each State plan shall demonstrate that 
     the State, in consultation with local educational agencies, 
     has implemented a set of high-quality, yearly student 
     academic assessments that include, at a minimum, academic 
     assessments in mathematics, reading or language arts, and 
     science that will be used as the primary means of determining 
     the yearly performance of the State and of each local 
     educational agency and school in the State in enabling all 
     children to meet the State's challenging student academic 
     achievement standards, except that no State shall be required 
     to meet the requirements of this part relating to science 
     assessments until the beginning of the 2007-2008 school year.
       ``(B) Use of assessments.--Each State may incorporate the 
     data from the assessments under this paragraph into a State-
     developed longitudinal data system that links student test 
     scores, length of enrollment, and graduation records over 
     time.
       ``(C) Requirements.--Such assessments shall--
       ``(i) be the same academic assessments used to measure the 
     achievement of all children;
       ``(ii) be aligned with the State's challenging academic 
     content and student academic achievement standards, and 
     provide coherent information about student attainment of such 
     standards;
       ``(iii) be used for purposes for which such assessments are 
     valid and reliable, and be consistent with relevant, 
     nationally recognized professional and technical standards;
       ``(iv) be used only if the State provides to the Secretary 
     evidence from the test publisher or other relevant sources 
     that the assessments used are of adequate technical quality 
     for each purpose required under this Act and are consistent 
     with the requirements of this section, and such evidence is 
     made public by the Secretary upon request;
       ``(v)(I) except as otherwise provided for grades 3 through 
     8 under clause vii, measure the proficiency of students in, 
     at a minimum, mathematics and reading or language arts, and 
     be administered not less than once during--

       ``(aa) grades 3 through 5;
       ``(bb) grades 6 through 9; and
       ``(cc) grades 10 through 12;

       ``(II) beginning not later than school year 2007-2008, 
     measure the proficiency of all students in science and be 
     administered not less than one time during--

       ``(aa) grades 3 through 5;
       ``(bb) grades 6 through 9; and
       ``(cc) grades 10 through 12;

       ``(vi) involve multiple up-to-date measures of student 
     academic achievement, including measures that assess higher-
     order thinking skills and understanding;
       ``(vii) beginning not later than school year 2005-2006, 
     measure the achievement of students against the challenging 
     State academic content and student academic achievement 
     standards in each of grades 3 through 8 in, at a minimum, 
     mathematics, and reading or language arts, except that the 
     Secretary may provide the State 1 additional year if the 
     State demonstrates that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     State, prevented full implementation of the academic 
     assessments by that deadline and that the State will complete 
     implementation within the additional 1-year period;
       ``(viii) at the discretion of the State, measure the 
     proficiency of students in academic subjects not described in 
     clauses (v), (vi), (vii) in which the State has adopted 
     challenging academic content and academic achievement 
     standards;
       ``(ix) provide for--

       ``(I) the participation in such assessments of all 
     students;
       ``(II) the reasonable adaptations and accommodations for 
     students with disabilities (as defined under section 602(3) 
     of the Individuals with Disabilities Education Act) necessary 
     to measure the academic achievement of such students relative 
     to State academic content and

[[Page 25631]]

     State student academic achievement standards; and
       ``(III) the inclusion of limited English proficient 
     students, who shall be assessed in a valid and reliable 
     manner and provided reasonable accommodations on assessments 
     administered to such students under this paragraph, 
     including, to the extent practicable, assessments in the 
     language and form most likely to yield accurate data on what 
     such students know and can do in academic content areas, 
     until such students have achieved English language 
     proficiency as determined under paragraph (7);

       ``(x) notwithstanding subclause (III), the academic 
     assessment (using tests written in English) of reading or 
     language arts of any student who has attended school in the 
     United States (not including Puerto Rico) for 3 or more 
     consecutive school years, except that if the local 
     educational agency determines, on a case-by-case individual 
     basis, that academic assessments in another language or form 
     would likely yield more accurate and reliable information on 
     what such student knows and can do, the local educational 
     agency may make a determination to assess such student in the 
     appropriate language other than English for a period that 
     does not exceed 2 additional consecutive years, provided that 
     such student has not yet reached a level of English language 
     proficiency sufficient to yield valid and reliable 
     information on what such student knows and can do on tests 
     (written in English) of reading or language arts;
       ``(xi) 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;
       ``(xii) produce individual student interpretive, 
     descriptive, and diagnostic reports, consistent with clause 
     (iii) that allow parents, teachers, and principals to 
     understand and address the specific academic needs of 
     students, and include information regarding achievement on 
     academic assessments aligned with State academic achievement 
     standards, and that are provided to parents, teachers, and 
     principals, as soon as is practicably possible after the 
     assessment is given, in an understandable and uniform format, 
     and to the extent practicable, in a language that parents can 
     understand;
       ``(xiii) 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, by migrant status, by students with disabilities as 
     compared to nondisabled students, and by economically 
     disadvantaged students as compared to students who are not 
     economically disadvantaged, except that, in the case of a 
     local educational agency or a school, such disaggregation 
     shall not be required in a case in which the number of 
     students in a category is insufficient to yield statistically 
     reliable information or the results would reveal personally 
     identifiable information about an individual student;
       ``(xiv) be consistent with widely accepted professional 
     testing standards, objectively measure academic achievement, 
     knowledge, and skills, and be tests that do not evaluate or 
     assess personal or family beliefs and attitudes, or publicly 
     disclose personally identifiable information; and
       ``(xv) enable itemized score analyses to be produced and 
     reported, consistent with clause (iii), to local educational 
     agencies and schools, so that parents, teachers, principals, 
     and administrators can interpret and address the specific 
     academic needs of students as indicated by the students' 
     achievement on assessment items.
       ``(D) Deferral.--A State may defer the commencement, or 
     suspend the administration, but not cease the development, of 
     the assessments described in this paragraph, that were not 
     required prior to the date of enactment of the No Child Left 
     Behind Act of 2001, for 1 year for each year for which the 
     amount appropriated for grants under section 6204(c) is less 
     than--
       ``(i) $370,000,000 for fiscal year 2002;
       ``(ii) $380,000,000 for fiscal year 2003;
       ``(iii) $390,000,000 for fiscal year 2004; and
       ``(iv) $400,000,000 for fiscal years 2005 through 2007.
       ``(4) Special rule.--Academic assessment measures in 
     addition to those in paragraph (3) that do not meet the 
     requirements of such paragraph may be included in the 
     assessment under paragraph (3) as additional measures, but 
     may not be used in lieu of the academic assessments required 
     under paragraph (3). Such additional assessment measures may 
     not be used to reduce the number of or change, the schools 
     that would otherwise be subject to school improvement, 
     corrective action, or restructuring under section 1116 if 
     such additional indicators were not used, but may be used to 
     identify additional schools for school improvement or in need 
     of corrective action or restructuring except as provided in 
     paragraph (2)(i)(I).
       ``(5) State authority.--If a State educational agency 
     provides evidence, which is satisfactory to the Secretary, 
     that neither the State educational agency nor any other State 
     government official, agency, or entity has sufficient 
     authority, under State law, to adopt curriculum content and 
     student academic achievement standards, and academic 
     assessments aligned with such academic standards, which will 
     be applicable to all students enrolled in the State's public 
     elementary schools and secondary schools, then the State 
     educational agency may meet the requirements of this 
     subsection by--
       ``(A) adopting academic standards and academic assessments 
     that meet the requirements of this subsection, on a statewide 
     basis, and limiting their applicability to students served 
     under this part; or
       ``(B) adopting and implementing policies that ensure that 
     each local educational agency in the State that receives 
     grants under this part will adopt curriculum content and 
     student academic achievement standards, and academic 
     assessments aligned with such standards, which--
       ``(i) meet all of the criteria in this subsection and any 
     regulations regarding such standards and assessments that the 
     Secretary may publish; and
       ``(ii) are applicable to all students served by each such 
     local educational agency.
       ``(6) Language assessments.--Each State plan shall identify 
     the languages other than English that are present in the 
     participating student population and indicate the languages 
     for which yearly student academic assessments are not 
     available and are needed. The State shall make every effort 
     to develop such assessments and may request assistance from 
     the Secretary if linguistically accessible academic 
     assessment measures are needed. Upon request, the Secretary 
     shall assist with the identification of appropriate academic 
     assessment measures in the needed languages, but shall not 
     mandate a specific academic assessment or mode of 
     instruction.
       ``(7) Academic assessments of english language 
     proficiency.--Each State plan shall demonstrate that local 
     educational agencies in the State will, beginning not later 
     than school year 2002-2003, provide for an annual assessment 
     of English proficiency (measuring students' oral language, 
     reading, and writing skills in English) of all students with 
     limited English proficiency in the schools served by the 
     State, except that the Secretary may provide the State 1 
     additional year if the State demonstrates that exceptional or 
     uncontrollable circumstances, such as a natural disaster or a 
     precipitous and unforeseen decline in the financial resources 
     of the State, prevented full implementation of this paragraph 
     by that deadline and that the State will complete 
     implementation within the additional 1-year period.
       ``(8) 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 1112(c)(1)(D), 1114(b), and 1115(c) 
     that is applicable to such agency or school;
       ``(B) how the State educational agency will assist each 
     local educational agency and school affected by the State 
     plan to provide additional educational assistance to 
     individual students assessed as needing help to achieve the 
     State's challenging academic achievement standards;
       ``(C) the specific steps the State educational agency will 
     take to ensure that both schoolwide programs and targeted 
     assistance schools provide instruction by highly qualified 
     instructional staff as required by sections 1114(b)(1)(C) and 
     1115(c)(1)(E), including steps that the State educational 
     agency will take to ensure that poor and minority children 
     are not taught at higher rates than other children by 
     inexperienced, unqualified, or out-of-field teachers, and the 
     measures that the State educational agency will use to 
     evaluate and publicly report the progress of the State 
     educational agency with respect to such steps;
       ``(D) an assurance that the State educational agency will 
     assist local educational agencies in developing or 
     identifying high-quality effective curricula aligned with 
     State academic achievement standards and how the State 
     educational agency will disseminate such curricula to each 
     local educational agency and school within the State; and
       ``(E) such other factors the State determines appropriate 
     to provide students an opportunity to achieve the knowledge 
     and skills described in the challenging academic content 
     standards adopted by the State.
       ``(9) Factors affecting student achievement.--Each State 
     plan shall include an assurance that the State will 
     coordinate and collaborate, to the extent feasible and 
     necessary as determined by the State, with agencies providing 
     services to children, youth, and families, with respect to 
     local educational agencies within the State that are 
     identified under section 1116 and that request assistance 
     with addressing major factors that have significantly 
     affected the academic achievement of students in the local 
     educational agency or schools served by such agency.
       ``(10) Use of academic assessment results to improve 
     student academic achievement.--Each State plan shall describe 
     how the State will ensure that the results of the State 
     assessments described in paragraph (3)--
       ``(A) will be promptly provided to local educational 
     agencies, schools, and teachers in a manner that is clear and 
     easy to understand, but not later than before the beginning 
     of the next school year; and
       ``(B) be used by those local educational agencies, schools, 
     and teachers to improve the educational achievement of 
     individual students.
       ``(c) Other Provisions To Support Teaching and Learning.--
     Each State plan shall contain assurances that--
       ``(1) the State will meet the requirements of subsection 
     (h)(1) and, beginning with the 2002-2003 school year, will 
     produce the annual State report cards described in such 
     subsection, except that the Secretary may provide the State 1 
     additional year if the State demonstrates that exceptional or 
     uncontrollable circumstances, such as a natural disaster or a 
     precipitous and unforeseen decline in the financial resources 
     of the

[[Page 25632]]

     State, prevented full implementation of this paragraph by 
     that deadline and that the State will complete implementation 
     within the additional 1-year period;
       ``(2) the State will, beginning in school year 2002-2003, 
     participate in biennial State academic assessments of 4th and 
     8th grade reading and mathematics under the National 
     Assessment of Educational Progress carried out under section 
     411(b)(2) of the National Education Statistics Act of 1994 if 
     the Secretary pays the costs of administering such 
     assessments;
       ``(3) the State educational agency, in consultation with 
     the Governor, will include, as a component of the State plan, 
     a plan to carry out the responsibilities of the State under 
     sections 1116 and 1117, including carrying out the State 
     educational agency's statewide system of technical assistance 
     and support for local educational agencies;
       ``(4) the State educational agency will work with other 
     agencies, including educational service agencies or other 
     local consortia, and institutions to provide technical 
     assistance to local educational agencies and schools, 
     including technical assistance in providing professional 
     development under section 1119, technical assistance under 
     section 1117, and technical assistance relating to parental 
     involvement under section 1118;
       ``(5)(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;
       ``(6) the State educational agency will notify local 
     educational agencies and the public of the content and 
     student academic achievement standards and academic 
     assessments developed under this section, and of the 
     authority to operate schoolwide programs, and will fulfill 
     the State educational agency's responsibilities regarding 
     local educational agency improvement and school improvement 
     under section 1116, including such corrective actions as are 
     necessary;
       ``(7) the State educational agency will provide the least 
     restrictive and burdensome regulations for local educational 
     agencies and individual schools participating in a program 
     assisted under this part;
       ``(8) the State educational agency will inform the 
     Secretary and the public of how Federal laws, if at all, 
     hinder the ability of States to hold local educational 
     agencies and schools accountable for student academic 
     achievement;
       ``(9) the State educational agency will encourage schools 
     to consolidate funds from other Federal, State, and local 
     sources for schoolwide reform in schoolwide programs under 
     section 1114;
       ``(10) the State educational agency will modify or 
     eliminate State fiscal and accounting barriers so that 
     schools can easily consolidate funds from other Federal, 
     State, and local sources for schoolwide programs under 
     section 1114;
       ``(11) the State educational agency has involved the 
     committee of practitioners established under section 1903(b) 
     in developing the plan and monitoring its implementation;
       ``(12) the State educational agency will inform local 
     educational agencies in the State of the local educational 
     agency's authority to transfer funds under title VI, to 
     obtain waivers under part D of title IX, and, if the State is 
     an Ed-Flex Partnership State, to obtain waivers under the 
     Education Flexibility Partnership Act of 1999;
       ``(13) the State will coordinate activities funded under 
     this part with other Federal activities as appropriate; and
       ``(14) the State educational agency will encourage local 
     educational agencies and individual schools participating in 
     a program assisted under this part to offer family literacy 
     services (using funds under this part), if the agency or 
     school determines that a substantial number of students 
     served under this part by the agency or school have parents 
     who do not have a secondary school diploma or its recognized 
     equivalent or who have low levels of literacy.
       ``(d) Parental Involvement.--Each State plan shall describe 
     how the State will support the collection and dissemination 
     to local educational agencies and schools of effective 
     parental involvement practices. Such practices shall--
       ``(1) be based on the most current research that meets the 
     highest professional and technical standards, on effective 
     parental involvement that fosters achievement to high 
     standards for all children; and
       ``(2) be geared toward lowering barriers to greater 
     participation by parents in school planning, review, and 
     improvement experienced.
       ``(e) Peer Review and Secretarial Approval.--
       ``(1) Secretarial duties.--The Secretary shall--
       ``(A) establish a peer-review process to assist in the 
     review of State plans;
       ``(B) appoint individuals to the peer-review process who 
     are representative of parents, teachers, State educational 
     agencies, and local educational agencies, and who are 
     familiar with educational standards, assessments, 
     accountability, the needs of low-performing schools, and 
     other educational needs of students;
       ``(C) approve a State plan within 120 days of its 
     submission unless the Secretary determines that the plan does 
     not meet the requirements of this section;
       ``(D) if the Secretary determines that the State plan does 
     not meet the requirements of subsection (a), (b), or (c), 
     immediately notify the State of such determination and the 
     reasons for such determination;
       ``(E) not decline to approve a State's plan before--
       ``(i) offering the State an opportunity to revise its plan;
       ``(ii) providing technical assistance in order to assist 
     the State to meet the requirements of subsections (a), (b), 
     and (c); and
       ``(iii) providing a hearing; and
       ``(F) have the authority to disapprove a State plan for not 
     meeting the requirements of this part, but shall not have the 
     authority to require a State, as a condition of approval of 
     the State plan, to include in, or delete from, such plan one 
     or more specific elements of the State's academic content 
     standards or to use specific academic assessment instruments 
     or items.
       ``(2) State revisions.--A State shall revise its State plan 
     if necessary to satisfy the requirements of this section.
       ``(f) 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 to its State plan, such as the adoption 
     of new State academic content standards and State student 
     achievement standards, new academic assessments, or a new 
     definition of adequate yearly progress, the State shall 
     submit such information to the Secretary.
       ``(g) Penalties.--
       ``(1) Failure to meet deadlines enacted in 1994.--
       ``(A) In general.--If a State fails to meet the deadlines 
     established by the Improving America's Schools Act of 1994 
     (or under any waiver granted by the Secretary or under any 
     compliance agreement with the Secretary) for demonstrating 
     that the State has in place challenging academic content 
     standards and student achievement standards, and a system for 
     measuring and monitoring adequate yearly progress, the 
     Secretary shall withhold 25 percent of the funds that would 
     otherwise be available to the State for State administration 
     and activities under this part in each year until the 
     Secretary determines that the State meets those requirements.
       ``(B) No extension.--Notwithstanding any other provision of 
     law, 90 days after the date of enactment of the No Child Left 
     Behind Act of 2001 the Secretary shall not grant any 
     additional waivers of, or enter into any additional 
     compliance agreements to extend, the deadlines described in 
     subparagraph (A) for any State.
       ``(2) Failure to meet requirements enacted in 2001.--If a 
     State fails to meet any of the requirements of this section, 
     other than the requirements described in paragraph (1), then 
     the Secretary may withhold funds for State administration 
     under this part until the Secretary determines that the State 
     has fulfilled those requirements.
       ``(h) Reports.--
       ``(1) Annual state report card.--
       ``(A) In general.--Not later than the beginning of the 
     2002-2003 school year, unless the State has received a 1-year 
     extension pursuant to subsection (c)(1), a State that 
     receives assistance under this part shall prepare and 
     disseminate an annual State report card.
       ``(B) Implementation.--The State report card shall be--
       ``(i) concise; and
       ``(ii) presented in an understandable and uniform format 
     and, to the extent practicable, provided in a language that 
     the parents can understand.
       ``(C) Required information.--The State shall include in its 
     annual State report card--
       ``(i) information, in the aggregate, on student achievement 
     at each proficiency level on the State academic assessments 
     described in subsection (b)(3) (disaggregated by race, 
     ethnicity, gender, disability status, migrant status, English 
     proficiency, and status as 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 personally identifiable information about an 
     individual student);
       ``(ii) information that provides a comparison between the 
     actual achievement levels of each group of students described 
     in subsection (b)(2)(C)(v) and the State's annual measurable 
     objectives for each such group of students on each of the 
     academic assessments required under this part;
       ``(iii) the percentage of students not tested 
     (disaggregated by the same categories and subject to the same 
     exception described in clause (i));
       ``(iv) the most recent 2-year trend in student achievement 
     in each subject area, and for each grade level, for which 
     assessments under this section are required;
       ``(v) aggregate information on any other indicators used by 
     the State to determine the adequate yearly progress of 
     students in achieving State academic achievement standards;
       ``(vi) graduation rates for secondary school students 
     consistent with subsection (b)(2)(B)(vii);
       ``(vii) information on the performance of local educational 
     agencies in the State regarding making adequate yearly 
     progress, including the number and names of each school 
     identified for school improvement under section 1116; and

[[Page 25633]]

       ``(viii) the professional qualifications of teachers in the 
     State, the percentage of such teachers teaching with 
     emergency or provisional credentials, and the percentage of 
     classes in the State not taught by highly qualified teachers, 
     in the aggregate and disaggregated by high-poverty compared 
     to low-poverty schools which, for the purpose of this clause, 
     means schools in the top quartile of poverty and the bottom 
     quartile of poverty in the State.
       ``(D) Optional information.--The State may include in its 
     annual State report card such other information as the State 
     believes will best provide parents, students, and other 
     members of the public with information regarding the progress 
     of each of the State's public elementary schools and public 
     secondary schools. Such information may include information 
     regarding--
       ``(i) school attendance rates;
       ``(ii) average class size in each grade;
       ``(iii) academic achievement and gains in English 
     proficiency of limited English proficient students;
       ``(iv) the incidence of school violence, drug abuse, 
     alcohol abuse, student suspensions, and student expulsions;
       ``(v) the extent and type of parental involvement in the 
     schools;
       ``(vi) the percentage of students completing advanced 
     placement courses, and the rate of passing of advanced 
     placement tests; and
       ``(vii) a clear and concise description of the State's 
     accountability system, including a description of the 
     criteria by which the State evaluates school performance, and 
     the criteria that the State has established, consistent with 
     subsection (b)(2), to determine the status of schools 
     regarding school improvement, corrective action, and 
     restructuring.
       ``(2) Annual local educational agency report cards.--
       ``(A) Report cards.--
       ``(i) In general.--Not later than the beginning of the 
     2002-2003 school year, a local educational agency that 
     receives assistance under this part shall prepare and 
     disseminate an annual local educational agency report card, 
     except that the State may provide the local educational 
     agency 1 additional year if the local educational agency 
     demonstrates that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     local educational agency, prevented full implementation of 
     this paragraph by that deadline and that the local 
     educational agency will complete implementation within the 
     additional 1-year period.
       ``(ii) Special rule.--If a State has received an extension 
     pursuant to subsection (c)(1), then a local educational 
     agency within that State shall not be required to include the 
     information required under paragraph (1)(C) in such report 
     card during such extension.
       ``(B) Minimum requirements.--The State shall ensure that 
     each local educational agency collects appropriate data and 
     includes in the local educational agency's annual report the 
     information described in paragraph (1)(C) as applied to the 
     local educational agency and each school served by the local 
     educational agency, and--
       ``(i) in the case of a local educational agency--

       ``(I) the number and percentage of schools identified for 
     school improvement under section 1116(c) and how long the 
     schools have been so identified; and
       ``(II) information that shows how students served by the 
     local educational agency achieved on the statewide academic 
     assessment compared to students in the State as a whole; and

       ``(ii) in the case of a school--

       ``(I) whether the school has been identified for school 
     improvement; and

       ``(II) information that shows how the school's students 
     achievement on the statewide academic assessments and other 
     indicators of adequate yearly progress compared to students 
     in the local educational agency and the State as a whole.

       ``(C) Other information.--A local educational agency may 
     include in its annual local educational agency report card 
     any other appropriate information, whether or not such 
     information is included in the annual State report card.
       ``(D) Data.--A local educational agency or school shall 
     only include in its annual local educational agency report 
     card data that are sufficient to yield statistically reliable 
     information, as determined by the State, and that do not 
     reveal personally identifiable information about an 
     individual student.
       ``(E) Public dissemination.--The local educational agency 
     shall, not later than the beginning of the 2002-2003 school 
     year, unless the local educational agency has received a 1-
     year extension pursuant to subparagraph (A), publicly 
     disseminate the information described in this paragraph to 
     all schools in the school district served by the local 
     educational agency and to all parents of students attending 
     those schools in an understandable and uniform format and, to 
     the extent practicable, provided in a language that the 
     parents can understand, and make the information widely 
     available through public means, such as posting on the 
     Internet, distribution to the media, and distribution through 
     public agencies, except that if a local educational agency 
     issues a report card for all students, the local educational 
     agency may include the information under this section as part 
     of such report.
       ``(3) Preexisting report cards.--A State educational agency 
     or local educational agency that was providing public report 
     cards on the performance of students, schools, local 
     educational agencies, or the State prior to the enactment of 
     the No Child Left Behind Act of 2001 may use those report 
     cards for the purpose of this subsection, so long as any such 
     report card is modified, as may be needed, to contain the 
     information required by this subsection.
       ``(4) Annual state report to the secretary.--Each State 
     receiving assistance under this part shall report annually to 
     the Secretary, and make widely available within the State--
       ``(A) beginning with school year 2002-2003, information on 
     the State's progress in developing and implementing the 
     academic assessments described in subsection (b)(3);
       ``(B) beginning not later than school year 2002-2003, 
     information on the achievement of students on the academic 
     assessments required by subsection (b)(3), including the 
     disaggregated results for the categories of students 
     identified in subsection (b)(2)(C)(v);
       ``(C) in any year before the State begins to provide the 
     information described in subparagraph (B), information on the 
     results of student academic assessments (including 
     disaggregated results) required under this section;
       ``(D) beginning not later than school year 2002-2003, 
     unless the State has received an extension pursuant to 
     subsection (c)(1), information on the acquisition of English 
     proficiency by children with limited English proficiency;
       ``(E) the number and names of each school identified for 
     school improvement under section 1116(c), the reason why each 
     school was so identified, and the measures taken to address 
     the achievement problems of such schools;
       ``(F) the number of students and schools that participated 
     in public school choice and supplemental service programs and 
     activities under this title; and
       ``(G) beginning not later than the 2002-2003 school year, 
     information on the quality of teachers and the percentage of 
     classes being taught by highly qualified teachers in the 
     State, local educational agency, and school.
       ``(5) Report to congress.--The Secretary shall transmit 
     annually to the Committee on Education and the Workforce of 
     the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate a report that 
     provides national and State-level data on the information 
     collected under paragraph (4).
       ``(6) Parents right-to-know.--
       ``(A) Qualifications.--At the beginning of each school 
     year, a local educational agency that receives funds under 
     this part shall notify the parents of each student attending 
     any school receiving funds under this part that the parents 
     may request, and the agency will provide the parents on 
     request (and in a timely manner), information regarding the 
     professional qualifications of the student's classroom 
     teachers, including, at a minimum, the following:
       ``(i) Whether the teacher has met State qualification and 
     licensing criteria for the grade levels and subject areas in 
     which the teacher provides instruction.
       ``(ii) Whether the teacher is teaching under emergency or 
     other provisional status through which State qualification or 
     licensing criteria have been waived.
       ``(iii) The baccalaureate degree major of the teacher and 
     any other graduate certification or degree held by the 
     teacher, and the field of discipline of the certification or 
     degree.
       ``(iv) Whether the child is provided services by 
     paraprofessionals and, if so, their qualifications.
       ``(B) Additional information.--In addition to the 
     information that parents may request under subparagraph (A), 
     a school that receives funds under this part shall provide to 
     each individual parent--
       ``(i) information on the level of achievement of the 
     parent's child in each of the State academic assessments as 
     required under this part; and
       ``(ii) timely notice that the parent's child has been 
     assigned, or has been taught for 4 or more consecutive weeks 
     by, a teacher who is not highly qualified.
       ``(C) Format.--The notice and information provided to 
     parents under this paragraph shall be in an understandable 
     and uniform format and, to the extent practicable, provided 
     in a language that the parents can understand.
       ``(i) Privacy.--Information collected under this section 
     shall be collected and disseminated in a manner that protects 
     the privacy of individuals.
       ``(j) Technical Assistance.--The Secretary shall provide a 
     State educational agency, at the State educational agency's 
     request, technical assistance in meeting the requirements of 
     this section, including the provision of advice by experts in 
     the development of high-quality academic assessments, the 
     setting of State standards, the development of measures of 
     adequate yearly progress that are valid and reliable, and 
     other relevant areas.
       ``(k) Voluntary Partnerships.--A State may enter into a 
     voluntary partnership with another State to develop and 
     implement the academic assessments and standards required 
     under this section.
       ``(l) Construction.--Nothing in this part shall be 
     construed to prescribe the use of the academic assessments 
     described in this part for student promotion or graduation 
     purposes.
       ``(m) Special Rule With Respect to Bureau-Funded Schools.--
     In determining the assessments to be used by each operated or 
     funded by BIA school receiving funds under this part, the 
     following shall apply:
       ``(1) Each such school that is accredited by the State in 
     which it is operating shall use the

[[Page 25634]]

     assessments the State has developed and implemented to meet 
     the requirements of this section, or such other appropriate 
     assessment as approved by the Secretary of the Interior.
       ``(2) Each such school that is accredited by a regional 
     accrediting organization shall adopt an appropriate 
     assessment, in consultation with and with the approval of, 
     the Secretary of the Interior and consistent with assessments 
     adopted by other schools in the same State or region, that 
     meets the requirements of this section.
       ``(3) Each such school that is accredited by a tribal 
     accrediting agency or tribal division of education shall use 
     an assessment developed by such agency or division, except 
     that the Secretary of the Interior shall ensure that such 
     assessment meets the requirements of this section.

     ``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

       ``(a) Plans Required.--
       ``(1) Subgrants.--A local educational agency may receive a 
     subgrant under this part for any fiscal year only if such 
     agency has on file with the State educational agency a plan, 
     approved by the State educational agency, that is coordinated 
     with other programs under this Act, the Individuals with 
     Disabilities Education Act, the Carl D. Perkins Vocational 
     and Technical Education Act of 1998, the McKinney-Vento 
     Homeless Assistance Act, and other Acts, as appropriate.
       ``(2) Consolidated application.--The plan may be submitted 
     as part of a consolidated application under section 9305.
       ``(b) Plan Provisions.--
       ``(1) In general.--In order to help low-achieving children 
     meet challenging achievement academic standards, each local 
     educational agency plan shall include--
       ``(A) a description of high-quality student academic 
     assessments, if any, that are in addition to the academic 
     assessments described in the State plan under section 
     1111(b)(3), that the local educational agency and schools 
     served under this part will use--
       ``(i) to determine the success of children served under 
     this part in meeting the State student academic achievement 
     standards, and to provide information to teachers, parents, 
     and students on the progress being made toward meeting the 
     State student academic achievement standards described in 
     section 1111(b)(1)(D)(ii);
       ``(ii) to assist in diagnosis, teaching, and learning in 
     the classroom in ways that best enable low-achieving children 
     served under this part to meet State student achievement 
     academic standards and do well in the local curriculum;
       ``(iii) to determine what revisions are needed to projects 
     under this part so that such children meet the State student 
     academic achievement standards; and
       ``(iv) to identify effectively students who may be at risk 
     for reading failure or who are having difficulty reading, 
     through the use of screening, diagnostic, and classroom-based 
     instructional reading assessments, as defined under section 
     1208;
       ``(B) at the local educational agency's discretion, a 
     description of any other indicators that will be used in 
     addition to the academic indicators described in section 1111 
     for the uses described in such section;
       ``(C) a description of how the local educational agency 
     will provide additional educational assistance to individual 
     students assessed as needing help in meeting the State's 
     challenging student academic achievement standards;
       ``(D) a description of the strategy the local educational 
     agency will use to coordinate programs under this part with 
     programs under title II to provide professional development 
     for teachers and principals, and, if appropriate, pupil 
     services personnel, administrators, parents and other staff, 
     including local educational agency level staff in accordance 
     with sections 1118 and 1119;
       ``(E) a description of how the local educational agency 
     will coordinate and integrate services provided under this 
     part with other educational services at the local educational 
     agency or individual school level, such as--
       ``(i) Even Start, Head Start, Reading First, Early Reading 
     First, and other preschool programs, including plans for the 
     transition of participants in such programs to local 
     elementary school programs; and
       ``(ii) services for children with limited English 
     proficiency, children with disabilities, migratory children, 
     neglected or delinquent youth, Indian children served under 
     part A of title VII, homeless children, and immigrant 
     children in order to increase program effectiveness, 
     eliminate duplication, and reduce fragmentation of the 
     instructional program;
       ``(F) an assurance that the local educational agency will 
     participate, if selected, in the State National Assessment of 
     Educational Progress in 4th and 8th grade reading and 
     mathematics carried out under section 411(b)(2) of the 
     National Education Statistics Act of 1994;
       ``(G) a description of the poverty criteria that will be 
     used to select school attendance areas under section 1113;
       ``(H) a description of how teachers, in consultation with 
     parents, administrators, and pupil services personnel, in 
     targeted assistance schools under section 1115, will identify 
     the eligible children most in need of services under this 
     part;
       ``(I) a general description of the nature of the programs 
     to be conducted by such agency's schools under sections 1114 
     and 1115 and, where appropriate, educational services outside 
     such schools for children living in local institutions for 
     neglected or delinquent children, and for neglected and 
     delinquent children in community day school programs;
       ``(J) a description of how the local educational agency 
     will ensure that migratory children and formerly migratory 
     children who are eligible to receive services under this part 
     are selected to receive such services on the same basis as 
     other children who are selected to receive services under 
     this part;
       ``(K) if appropriate, a description of how the local 
     educational agency will use funds under this part to support 
     preschool programs for children, particularly children 
     participating in Early Reading First, or in a Head Start or 
     Even Start program, which services may be provided directly 
     by the local educational agency or through a subcontract with 
     the local Head Start agency designated by the Secretary of 
     Health and Human Services under section 641 of the Head Start 
     Act, or an agency operating an Even Start program, an Early 
     Reading First program, or another comparable public early 
     childhood development program;
       ``(L) a description of the actions the local educational 
     agency will take to assist its low-achieving schools 
     identified under section 1116 as in need of improvement;
       ``(M) a description of the actions the local educational 
     agency will take to implement public school choice and 
     supplemental services, consistent with the requirements of 
     section 1116;
       ``(N) a description of how the local educational agency 
     will meet the requirements of section 1119;
       ``(O) a description of the services the local educational 
     agency will provide homeless children, including services 
     provided with funds reserved under section 1113(c)(3)(A);
       ``(P) a description of the strategy the local educational 
     agency will use to implement effective parental involvement 
     under section 1118; and
       ``(Q) where appropriate, a description of how the local 
     educational agency will use funds under this part to support 
     after school, (including before school and summer school) and 
     school-year extension programs).
       ``(2) Exception.--The academic assessments and indicators 
     described in subparagraphs (A) and (B) of paragraph (1) shall 
     not be used--
       ``(A) in lieu of the academic assessments required under 
     section 1111(b)(3) and other State academic indicators under 
     section 1111(b)(2); or
       ``(B) to reduce the number of, or change which, schools 
     would otherwise be subject to school improvement, corrective 
     action, or restructuring under section 1116, if such 
     additional assessments or indicators described in such 
     subparagraphs were not used, but such assessments and 
     indicators may be used to identify additional schools for 
     school improvement or in need of corrective action or 
     restructuring.
       ``(c) Assurances.--
       ``(1) In general.--Each local educational agency plan shall 
     provide assurances that the local educational agency will--
       ``(A) inform eligible schools and parents of schoolwide 
     program authority and the ability of such schools to 
     consolidate funds from Federal, State, and local sources;
       ``(B) provide technical assistance and support to 
     schoolwide programs;
       ``(C) work in consultation with schools as the schools 
     develop the schools' plans pursuant to section 1114 and 
     assist schools as the schools implement such plans or 
     undertake activities pursuant to section 1115 so that each 
     school can make adequate yearly progress toward meeting the 
     State student academic achievement standards;
       ``(D) fulfill such agency's school improvement 
     responsibilities under section 1116, including taking actions 
     under paragraphs (7) and (8) of section 1116(b);
       ``(E) provide services to eligible children attending 
     private elementary schools and secondary schools in 
     accordance with section 1120, and timely and meaningful 
     consultation with private school officials regarding such 
     services;
       ``(F) take into account the experience of model programs 
     for the educationally disadvantaged, and the findings of 
     relevant scientifically based research indicating that 
     services may be most effective if focused on students in the 
     earliest grades at schools that receive funds under this 
     part;
       ``(G) 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;
       ``(H) work in consultation with schools as the schools 
     develop and implement their plans or activities under 
     sections 1118 and 1119;
       ``(I) comply with the requirements of section 1119 
     regarding the qualifications of teachers and 
     paraprofessionals and professional development;
       ``(J) inform eligible schools of the local educational 
     agency's authority to obtain waivers on the school's behalf 
     under title IX and, if the State is an Ed-Flex Partnership 
     State, to obtain waivers under the Education Flexibility 
     Partnership Act of 1999;
       ``(K) coordinate and collaborate, to the extent feasible 
     and necessary as determined by the local educational agency, 
     with the State educational agency and other agencies 
     providing services to children, youth, and families with 
     respect to a school in school improvement, corrective action, 
     or restructuring under section 1116 if such a school requests 
     assistance from the local educational agency in addressing 
     major factors that have significantly affected student 
     achievement at the school;

[[Page 25635]]

       ``(L) ensure, through incentives for voluntary transfers, 
     the provision of professional development, recruitment 
     programs, or other effective strategies, that low-income 
     students and minority students are not taught at higher rates 
     than other students by unqualified, out-of-field, or 
     inexperienced teachers;
       ``(M) use the results of the student academic assessments 
     required under section 1111(b)(3), and other measures or 
     indicators available to the agency, to review annually the 
     progress of each school served by the agency and receiving 
     funds under this part to determine whether all of the schools 
     are making the progress necessary to ensure that all students 
     will meet the State's proficient level of achievement on the 
     State academic assessments described in section 1111(b)(3) 
     within 12 years from the baseline year described in section 
     1111(b)(2)(E)(ii);
       ``(N) ensure that the results from the academic assessments 
     required under section 1111(b)(3) will be provided to parents 
     and teachers as soon as is practicably possible after the 
     test is taken, in an understandable and uniform format and, 
     to the extent practicable, provided in a language that the 
     parents can understand; and
       ``(O) assist each school served by the agency and assisted 
     under this part in developing or identifying examples of 
     high-quality, effective curricula consistent with section 
     1111(b)(8)(D).
       ``(2) Special rule.--In carrying out subparagraph (G) of 
     paragraph (1), the Secretary--
       ``(A) shall consult with the Secretary of Health and Human 
     Services 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; and
       ``(B) shall disseminate to local educational agencies the 
     Head Start performance standards as in effect under section 
     641A(a) of the Head Start Act, and such 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.--Paragraph (1)(G) of this subsection 
     shall not apply to preschool programs using the Even Start 
     model or to Even Start programs that are expanded through the 
     use of funds under this part.
       ``(d) Plan Development and Duration.--
       ``(1) Consultation.--Each local educational agency plan 
     shall be developed in consultation with teachers, principals, 
     administrators (including administrators of programs 
     described in other parts of this title), and other 
     appropriate school personnel, and with parents of children in 
     schools served under this part.
       ``(2) Duration.--Each such plan shall be submitted for the 
     first year for which this part is in effect following the 
     date of enactment of the No Child Left Behind Act of 2001 and 
     shall remain in effect for the duration of the agency's 
     participation under this part.
       ``(3) Review.--Each local educational agency shall 
     periodically review and, as necessary, revise its plan.
       ``(e) 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 approve 
     a local educational agency's plan only if the State 
     educational agency determines that the local educational 
     agency's plan--
       ``(A) enables schools served under this part to 
     substantially help children served under this part meet the 
     academic standards expected of all children described in 
     section 1111(b)(1); and
       ``(B) meets the requirements of this section.
       ``(3) Review.--The State educational agency shall review 
     the local educational agency's plan to determine if such 
     agencies activities are in accordance with sections 1118 and 
     1119.
       ``(f) Program Responsibility.--The local educational agency 
     plan shall reflect the shared responsibility of schools, 
     teachers, and the local educational agency in making 
     decisions regarding activities under sections 1114 and 1115.
       ``(g) Parental Notification.--
       ``(1) In general.--
       ``(A) Notice.--Each local educational agency using funds 
     under this part to provide a language instruction educational 
     program as determined in part C of title III shall, not later 
     than 30 days after the beginning of the school year, inform a 
     parent or parents of a limited English proficient child 
     identified for participation or participating in, such a 
     program of--
       ``(i) the reasons for the identification of their child as 
     limited English proficient and in need of placement in a 
     language instruction educational program;
       ``(ii) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(iii) the methods of instruction used in the program in 
     which their child is, or will be participating, and the 
     methods of instruction used in other available programs, 
     including how such programs differ in content, instructional 
     goals, and the use of English and a native language in 
     instruction;
       ``(iv) how the program in which their child is, or will be 
     participating, will meet the educational strengths and needs 
     of their child;
       ``(v) how such program will specifically help their child 
     learn English, and meet age-appropriate academic achievement 
     standards for grade promotion and graduation;
       ``(vi) the specific exit requirements for the program, 
     including the expected rate of transition from such program 
     into classrooms that are not tailored for limited English 
     proficient children, and the expected rate of graduation from 
     secondary school for such program if funds under this part 
     are used for children in secondary schools;
       ``(vii) in the case of a child with a disability, how such 
     program meets the objectives of the individualized education 
     program of the child;
       ``(viii) information pertaining to parental rights that 
     includes written guidance--

       ``(I) detailing--

       ``(aa) the right that parents have to have their child 
     immediately removed from such program upon their request; and
       ``(bb) the options that parents have to decline to enroll 
     their child in such program or to choose another program or 
     method of instruction, if available; and

       ``(II) assisting parents in selecting among various 
     programs and methods of instruction, if more than one program 
     or method is offered by the eligible entity.

       ``(B) Separate notification.--In addition to providing the 
     information required to be provided under paragraph (1), each 
     eligible entity that is using funds provided under this part 
     to provide a language instruction educational program, and 
     that has failed to make progress on the annual measurable 
     achievement objectives described in section 3122 for any 
     fiscal year for which part A is in effect, shall separately 
     inform a parent or the parents of a child identified for 
     participation in such program, or participating in such 
     program, of such failure not later than 30 days after such 
     failure occurs.
       ``(2) Notice.--The notice and information provided in 
     paragraph (1) to a parent or parents of a child identified 
     for participation in a language instruction educational 
     program for limited English proficient children shall be in 
     an understandable and uniform format and, to the extent 
     practicable, provided in a language that the parents can 
     understand.
       ``(3) Special rule applicable during the school year.--For 
     those children who have not been identified as limited 
     English proficient prior to the beginning of the school year 
     the local educational agency shall notify parents within the 
     first 2 weeks of the child being placed in a language 
     instruction educational program consistent with paragraphs 
     (1) and (2).
       ``(4) Parental participation.--Each local educational 
     agency receiving funds under this part shall implement an 
     effective means of outreach to parents of limited English 
     proficient students to inform the parents regarding how the 
     parents can be involved in the education of their children, 
     and be active participants in assisting their children to 
     attain English proficiency, achieve at high levels in core 
     academic subjects, and meet challenging State academic 
     achievement standards and State academic content standards 
     expected of all students, including holding, and sending 
     notice of opportunities for, regular meetings for the purpose 
     of formulating and responding to recommendations from parents 
     of students assisted under this part.
       ``(5) Basis for admission or exclusion.--A student shall 
     not be admitted to, or excluded from, any federally assisted 
     education program on the basis of a surname or language-
     minority status.

     ``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

       ``(a) Determination.--
       ``(1) In general.--A local educational agency shall use 
     funds received under this part only in eligible school 
     attendance areas.
       ``(2) Eligible school attendance areas.--For the purposes 
     of this part--
       ``(A) the term `school attendance area' means, in relation 
     to a particular school, the geographical area in which the 
     children who are normally served by that school reside; and
       ``(B) the term `eligible school attendance area' means a 
     school attendance area in which the percentage of children 
     from low-income families is at least as high as the 
     percentage of children from low-income families served by the 
     local educational agency as a whole.
       ``(3) Ranking order.--If funds allocated in accordance with 
     subsection (c) are insufficient to serve all eligible school 
     attendance areas, a local educational agency shall--
       ``(A) annually rank, without regard to grade spans, such 
     agency's eligible school attendance areas in which the 
     concentration of children from low-income families exceeds 75 
     percent from highest to lowest according to the percentage of 
     children from low-income families; and
       ``(B) serve such eligible school attendance areas in rank 
     order.
       ``(4) Remaining funds.--If funds remain after serving all 
     eligible school attendance areas under paragraph (3), a local 
     educational agency shall--
       ``(A) annually rank such agency's remaining eligible school 
     attendance areas from highest to lowest either by grade span 
     or for the entire local educational agency according to the 
     percentage of children from low-income families; and
       ``(B) serve such eligible school attendance areas in rank 
     order either within each grade-span grouping or within the 
     local educational agency as a whole.
       ``(5) Measures.--The local educational agency shall use the 
     same measure of poverty, which measure shall be the number of 
     children ages 5 through 17 in poverty counted in the most 
     recent census data approved by the Secretary, the number of 
     children eligible for free and reduced priced lunches under 
     the Richard B. Russell National School Lunch Act, the number 
     of children in families receiving assistance under the State

[[Page 25636]]

     program funded under part A of title IV of the Social 
     Security Act, or the number of children eligible to receive 
     medical assistance under the Medicaid program, or a composite 
     of such indicators, with respect to all school attendance 
     areas in the local educational agency--
       ``(A) to identify eligible school attendance areas;
       ``(B) to determine the ranking of each area; and
       ``(C) to determine allocations under subsection (c).
       ``(6) Exception.--This subsection shall not apply to a 
     local educational agency with a total enrollment of less than 
     1,000 children.
       ``(7) Waiver for Desegregation Plans.--The Secretary may 
     approve a local educational agency's written request for a 
     waiver of the requirements of subsections (a) and (c), and 
     permit such agency to treat as eligible, and serve, any 
     school that children attend with a State-ordered, court-
     ordered school desegregation plan or a plan that continues to 
     be implemented in accordance with a State-ordered or court-
     ordered desegregation plan, if--
       ``(A) the number of economically disadvantaged children 
     enrolled in the school is at least 25 percent of the school's 
     total enrollment; and
       ``(B) the Secretary determines on the basis of a written 
     request from such agency and in accordance with such criteria 
     as the Secretary establishes, that approval of that request 
     would further the purposes of this part.
       ``(b) Local educational agency discretion.--
       ``(1) In general.--Notwithstanding subsection (a)(2), a 
     local educational agency may--
       ``(A) designate as eligible any school attendance area or 
     school in which at least 35 percent of the children are from 
     low-income families;
       ``(B) use funds received under this part in a school that 
     is not in an eligible school attendance area, if the 
     percentage of children from low-income families enrolled in 
     the school is equal to or greater than the percentage of such 
     children in a participating school attendance area of such 
     agency;
       ``(C) designate and serve a school attendance area or 
     school that is not eligible under this section, but that was 
     eligible and that was served in the preceding fiscal year, 
     but only for 1 additional fiscal year; and
       ``(D) elect not to serve an eligible school attendance area 
     or eligible school that has a higher percentage of children 
     from low-income families if--
       ``(i) the school meets the comparability requirements of 
     section 1120A(c);
       ``(ii) the school is receiving supplemental funds from 
     other State or local sources that are spent according to the 
     requirements of section 1114 or 1115; and
       ``(iii) the funds expended from such other sources equal or 
     exceed the amount that would be provided under this part.
       ``(2) Special rule.--Notwithstanding paragraph (1)(D), the 
     number of children attending private elementary schools and 
     secondary schools who are to receive services, and the 
     assistance such children are to receive under this part, 
     shall be determined without regard to whether the public 
     school attendance area in which such children reside is 
     assisted under subparagraph (A).
       ``(c) Allocations.--
       ``(1) In general.--A local educational agency shall 
     allocate funds received under this part to eligible school 
     attendance areas or eligible schools, identified under 
     subsections (a) and (b), in rank order, on the basis of the 
     total number of children from low-income families in each 
     area or school.
       ``(2) Special rule.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the per-pupil amount of funds allocated to each school 
     attendance area or school under paragraph (1) shall be at 
     least 125 percent of the per-pupil amount of funds a local 
     educational agency received for that year under the poverty 
     criteria described by the local educational agency in the 
     plan submitted under section 1112, except that this paragraph 
     shall not apply to a local educational agency that only 
     serves schools in which the percentage of such children is 35 
     percent or greater.
       ``(B) Exception.--A local educational agency may reduce the 
     amount of funds allocated under subparagraph (A) for a school 
     attendance area or school by the amount of any supplemental 
     State and local funds expended in that school attendance area 
     or school for programs that meet the requirements of section 
     1114 or 1115.
       ``(3) Reservation.--A local educational agency shall 
     reserve such funds as are necessary under this part to 
     provide services comparable to those provided to children in 
     schools funded under this part to serve--
       ``(A) homeless children who do not attend participating 
     schools, including providing educationally related support 
     services to children in shelters and other locations where 
     children may live;
       ``(B) children in local institutions for neglected 
     children; and
       ``(C) if appropriate, children in local institutions for 
     delinquent children, and neglected or delinquent children in 
     community day school programs.
       ``(4) Financial incentives and rewards reservation.--A 
     local educational agency may reserve such funds as are 
     necessary from those funds received by the local educational 
     agency under title II, and not more than 5 percent of those 
     funds received by the local educational agency under subpart 
     2, to provide financial incentives and rewards to teachers 
     who serve in schools eligible under this section and 
     identified for school improvement, corrective action, and 
     restructuring under section 1116(b) for the purpose of 
     attracting and retaining qualified and effective teachers.

     ``SEC. 1114. SCHOOLWIDE PROGRAMS.

       ``(a) Use of Funds for Schoolwide Programs.--
       ``(1) In general.--A local educational agency may 
     consolidate and use funds under this part, together with 
     other Federal, State, and local funds, in order to upgrade 
     the entire educational program of a school that serves an 
     eligible school attendance area in which not less than 40 
     percent of the children are from low-income families, or not 
     less than 40 percent of the children enrolled in the school 
     are from such families.
       ``(2) Identification of students not required.--
       ``(A) In general.--No school participating in a schoolwide 
     program shall be required--
       ``(i) to identify particular children under this part as 
     eligible to participate in a schoolwide program; or
       ``(ii) to provide services to such children that are 
     supplementary, as otherwise required by section 1120A(b).
       ``(B) Supplemental funds.--A school participating in a 
     schoolwide program shall use funds available to carry out 
     this section only to supplement the amount of funds that 
     would, in the absence of funds under this part, be made 
     available from non-Federal sources for the school, including 
     funds needed to provide services that are required by law for 
     children with disabilities and children with limited English 
     proficiency.
       ``(3) Exemption from statutory and regulatory 
     requirements.--
       ``(A) Exemption.--Except as provided in subsection (b), the 
     Secretary may, through publication of a notice in the Federal 
     Register, exempt schoolwide programs under this section from 
     statutory or regulatory provisions of any other 
     noncompetitive formula grant program administered by the 
     Secretary (other than formula or discretionary grant programs 
     under the Individuals with Disabilities Education Act, except 
     as provided in section 613(a)(2)(D) of such Act), or any 
     discretionary grant program administered by the Secretary, to 
     support schoolwide programs if the intent and purposes of 
     such other programs are met.
       ``(B) Requirements.--A school that chooses to use funds 
     from such other programs shall not be relieved of the 
     requirements relating to health, safety, civil rights, 
     student and parental participation and involvement, services 
     to private school children, maintenance of effort, 
     comparability of services, uses of Federal funds to 
     supplement, not supplant non-Federal funds, or the 
     distribution of funds to State educational agencies or local 
     educational agencies that apply to the receipt of funds from 
     such programs.
       ``(C) Records.--A school that consolidates and uses funds 
     from different Federal programs under this section shall not 
     be required to maintain separate fiscal accounting records, 
     by program, that identify the specific activities supported 
     by those particular funds as long as the school maintains 
     records that demonstrate that the schoolwide program, 
     considered as a whole, addresses the intent and purposes of 
     each of the Federal programs that were consolidated to 
     support the schoolwide program.
       ``(4) Professional development.--Each school receiving 
     funds under this part for any fiscal year shall devote 
     sufficient resources to effectively carry out the activities 
     described in subsection (b)(1)(D) in accordance with section 
     1119 for such fiscal year, except that a school may enter 
     into a consortium with another school to carry out such 
     activities.
       ``(b) Components of a Schoolwide Program.--
       ``(1) In general.--A schoolwide program shall include the 
     following components:
       ``(A) A comprehensive needs assessment of the entire school 
     (including taking into account the needs of migratory 
     children as defined in section 1309(2)) that is based on 
     information which includes the achievement of children in 
     relation to the State academic content standards and the 
     State student academic achievement standards described in 
     section 1111(b)(1).
       ``(B) Schoolwide reform strategies that--
       ``(i) provide opportunities for all children to meet the 
     State's proficient and advanced levels of student academic 
     achievement described in section 1111(b)(1)(D);
       ``(ii) use effective methods and instructional strategies 
     that are based on scientifically based research that--

       ``(I) strengthen the core academic program in the school;
       ``(II) increase the amount and quality of learning time, 
     such as providing an extended school year and before- and 
     after-school and summer programs and opportunities, and help 
     provide an enriched and accelerated curriculum; and
       ``(III) include strategies for meeting the educational 
     needs of historically underserved populations;

       ``(iii)(I) include strategies to address the needs of all 
     children in the school, but particularly the needs of low-
     achieving children and those at risk of not meeting the State 
     student academic achievement standards who are members of the 
     target population of any program that is included in the 
     schoolwide program, which may include--

       ``(aa) counseling, pupil services, and mentoring services;

[[Page 25637]]

       ``(bb) college and career awareness and preparation, such 
     as college and career guidance, personal finance education, 
     and innovative teaching methods, which may include applied 
     learning and team-teaching strategies; and
       ``(cc) the integration of vocational and technical 
     education programs; and

       ``(II) address how the school will determine if such needs 
     have been met; and
       ``(iv) are consistent with, and are designed to implement, 
     the State and local improvement plans, if any.
       ``(C) Instruction by highly qualified teachers.
       ``(D) In accordance with section 1119 and subsection 
     (a)(4), high-quality and ongoing professional development for 
     teachers, principals, and paraprofessionals and, if 
     appropriate, pupil services personnel, parents, and other 
     staff to enable all children in the school to meet the 
     State's student academic achievement standards.
       ``(E) Strategies to attract high-quality highly qualified 
     teachers to high-need schools.
       ``(F) Strategies to increase parental involvement in 
     accordance with section 1118, such as family literary 
     services.
       ``(G) Plans for assisting preschool children in the 
     transition from early childhood programs, such as Head Start, 
     Even Start, Early Reading First, or a State-run preschool 
     program, to local elementary school programs.
       ``(H) Measures to include teachers in the decisions 
     regarding the use of academic assessments described in 
     section 1111(b)(3) in order to provide information on, and to 
     improve, the achievement of individual students and the 
     overall instructional program.
       ``(I) Activities to ensure that students who experience 
     difficulty mastering the proficient or advanced levels of 
     academic achievement standards required by section 1111(b)(1) 
     shall be provided with effective, timely additional 
     assistance which shall include measures to ensure that 
     students' difficulties are identified on a timely basis and 
     to provide sufficient information on which to base effective 
     assistance.
       ``(J) Coordination and integration of Federal, State, and 
     local services and programs, including programs supported 
     under this Act, violence prevention programs, nutrition 
     programs, housing programs, Head Start, adult education, 
     vocational and technical education, and job training.
       ``(2) Plan.--
       ``(A) In general.--Any eligible school that desires to 
     operate a schoolwide program shall first develop (or amend a 
     plan for such a program that was in existence on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001), in consultation with the local educational agency 
     and its school support team or other technical assistance 
     provider under section 1117, a comprehensive plan for 
     reforming the total instructional program in the school 
     that--
       ``(i) describes how the school will implement the 
     components described in paragraph (1);
       ``(ii) describes how the school will use resources under 
     this part and from other sources to implement those 
     components;
       ``(iii) includes a list of State educational agency and 
     local educational agency programs and other Federal programs 
     under subsection (a)(3) that will be consolidated in the 
     schoolwide program; and
       ``(iv) describes how the school will provide individual 
     student academic assessment results in a language the parents 
     can understand, including an interpretation of those results, 
     to the parents of a child who participates in the academic 
     assessments required by section 1111(b)(3).
       ``(B) Plan development.--The comprehensive plan shall be--
       ``(i) developed during a one-year period, unless--

       ``(I) the local educational agency, after considering the 
     recommendation of the technical assistance providers under 
     section 1117, determines that less time is needed to develop 
     and implement the schoolwide program; or
       ``(II) the school is operating a schoolwide program on the 
     day preceding the date of enactment of the No Child Left 
     Behind Act of 2001, in which case such school may continue to 
     operate such program, but shall develop amendments to its 
     existing plan during the first year of assistance after that 
     date to reflect the provisions of this section;

       ``(ii) developed with the involvement of parents and other 
     members of the community to be served and individuals who 
     will carry out such plan, including teachers, principals, and 
     administrators (including administrators of programs 
     described in other parts of this title), and, if appropriate, 
     pupil services personnel, technical assistance providers, 
     school staff, and, if the plan relates to a secondary school, 
     students from such school;
       ``(iii) in effect for the duration of the school's 
     participation under this part and reviewed and revised, as 
     necessary, by the school;
       ``(iv) available to the local educational agency, parents, 
     and the public, and the information contained in such plan 
     shall be in an understandable and uniform format and, to the 
     extent practicable, provided in a language that the parents 
     can understand; and
       ``(v) if appropriate, developed in coordination with 
     programs under Reading First, Early Reading First, Even 
     Start, Carl D. Perkins Vocational and Technical Education Act 
     of 1998, and the Head Start Act.
       ``(c) Prekindergarten Program.--A school that is eligible 
     for a schoolwide program under this section may use funds 
     made available under this part to establish or enhance 
     prekindergarten programs for children below the age of 6, 
     such as Even Start programs or Early Reading First programs.

     ``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

       ``(a) In General.--In all schools selected to receive funds 
     under section 1113(c) that are ineligible for a schoolwide 
     program under section 1114, or that choose not to operate 
     such a schoolwide program, a local educational agency serving 
     such school may use funds received under this part only for 
     programs that provide services to eligible children under 
     subsection (b) identified as having the greatest need for 
     special assistance.
       ``(b) Eligible Children.--
       ``(1) Eligible population.--
       ``(A) In general.--The eligible population for services 
     under this section is--
       ``(i) children not older than age 21 who are entitled to a 
     free public education through grade 12; and
       ``(ii) children who are not yet at a grade level at which 
     the local educational agency provides a free public 
     education.
       ``(B) Eligible children from eligible population.--From the 
     population described in subparagraph (A), eligible children 
     are children identified by the school as failing, or most at 
     risk of failing, to meet the State's challenging student 
     academic achievement standards on the basis of multiple, 
     educationally related, objective criteria established by the 
     local educational agency and supplemented by the school, 
     except that children from preschool through grade 2 shall be 
     selected solely on the basis of such criteria as teacher 
     judgment, interviews with parents, and developmentally 
     appropriate measures.
       ``(2) Children included.--
       ``(A) In general.--Children who are economically 
     disadvantaged, children with disabilities, migrant children 
     or limited English proficient children, are eligible for 
     services under this part on the same basis as other children 
     selected to receive services under this part.
       ``(B) Head start, even start, or early reading first 
     children.--A child who, at any time in the 2 years preceding 
     the year for which the determination is made, participated in 
     a Head Start, Even Start, or Early Reading First program, or 
     in preschool services under this title, is eligible for 
     services under this part.
       ``(C) Part c children.--A child who, at any time in the 2 
     years preceding the year for which the determination is made, 
     received services under part C is eligible for services under 
     this part.
       ``(D) Neglected or delinquent children.--A child in a local 
     institution for neglected or delinquent children and youth or 
     attending a community day program for such children is 
     eligible for services under this part.
       ``(E) Homeless children.--A child who is homeless and 
     attending any school served by the local educational agency 
     is eligible for services under this part.
       ``(3) Special rule.--Funds received under this part may not 
     be used to provide services that are otherwise required by 
     law to be made available to children described in paragraph 
     (2) but may be used to coordinate or supplement such 
     services.
       ``(c) Components of a Targeted Assistance School Program.--
       ``(1) In general.--To assist targeted assistance schools 
     and local educational agencies to meet their responsibility 
     to provide for all their students served under this part the 
     opportunity to meet the State's challenging student academic 
     achievement standards in subjects as determined by the State, 
     each targeted assistance program under this section shall--
       ``(A) use such program's resources under this part to help 
     participating children meet such State's challenging student 
     academic achievement standards expected for all children;
       ``(B) ensure that planning for students served under this 
     part is incorporated into existing school planning;
       ``(C) use effective methods and instructional strategies 
     that are based on scientifically based research that 
     strengthens the core academic program of the school and 
     that--
       ``(i) give primary consideration to providing extended 
     learning time, such as an extended school year, before- and 
     after-school, and summer programs and opportunities;
       ``(ii) help provide an accelerated, high-quality 
     curriculum, including applied learning; and
       ``(iii) minimize removing children from the regular 
     classroom during regular school hours for instruction 
     provided under this part;
       ``(D) coordinate with and support the regular education 
     program, which may include services to assist preschool 
     children in the transition from early childhood programs such 
     as Head Start, Even Start, Early Reading First or State-run 
     preschool programs to elementary school programs;
       ``(E) provide instruction by highly qualified teachers;
       ``(F) in accordance with subsection (e)(3) and section 
     1119, provide opportunities for professional development with 
     resources provided under this part, and, to the extent 
     practicable, from other sources, for teachers, principals, 
     and paraprofessionals, including, if appropriate, pupil 
     services personnel, parents, and other staff, who work with 
     participating children in programs under this section or in 
     the regular education program;
       ``(G) provide strategies to increase parental involvement 
     in accordance with section 1118, such as family literacy 
     services; and
       ``(H) coordinate and integrate Federal, State, and local 
     services and programs, including programs supported under 
     this Act, violence prevention programs, nutrition programs, 
     housing

[[Page 25638]]

     programs, Head Start, adult education, vocational and 
     technical education, and job training.
       ``(2) Requirements.--Each school conducting a program under 
     this section shall assist participating children selected in 
     accordance with subsection (b) to meet the State's proficient 
     and advanced levels of achievement by--
       ``(A) the coordinating of resources provided under this 
     part with other resources; and
       ``(B) reviewing, on an ongoing basis, the progress of 
     participating children and revising the targeted assistance 
     program, if necessary, to provide additional assistance to 
     enable such children to meet the State's challenging student 
     academic achievement standards, such as an extended school 
     year, before- and after-school, and summer programs and 
     opportunities, training for teachers regarding how to 
     identify students who need additional assistance, and 
     training for teachers regarding how to implement student 
     academic achievement standards in the classroom.
       ``(d) Integration of Professional Development.--To promote 
     the integration of staff supported with funds under this part 
     into the regular school program and overall school planning 
     and improvement efforts, public school personnel who are paid 
     with funds received under this part may--
       ``(1) participate in general professional development and 
     school planning activities; and
       ``(2) assume limited duties that are assigned to similar 
     personnel who are not so paid, including duties beyond 
     classroom instruction or that do not benefit participating 
     children, so long as the amount of time spent on such duties 
     is the same proportion of total work time as prevails with 
     respect to similar personnel at the same school.
       ``(e) Special Rules.--
       ``(1) Simultaneous service.--Nothing in this section shall 
     be construed to prohibit a school from serving students under 
     this section simultaneously with students with similar 
     educational needs, in the same educational settings where 
     appropriate.
       ``(2) Comprehensive services.--If--
       ``(A) health, nutrition, and other social services are not 
     otherwise available to eligible children in a targeted 
     assistance school and such school, if appropriate, has 
     engaged in a comprehensive needs assessment and established a 
     collaborative partnership with local service providers; and
       ``(B) funds are not reasonably available from other public 
     or private sources to provide such services, then a portion 
     of the funds provided under this part may be used as a last 
     resort to provide such services, including--
       ``(i) the provision of basic medical equipment, such as 
     eyeglasses and hearing aids;
       ``(ii) compensation of a coordinator; and
       ``(iii) professional development necessary to assist 
     teachers, pupil services personnel, other staff, and parents 
     in identifying and meeting the comprehensive needs of 
     eligible children.
       ``(3) Professional development.--Each school receiving 
     funds under this part for any fiscal year shall devote 
     sufficient resources to carry out effectively the 
     professional development activities described in subparagraph 
     (F) of subsection (c)(1) in accordance with section 1119 for 
     such fiscal year, and a school may enter into a consortium 
     with another school to carry out such activities.

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

       ``(a) Local Review.--
       ``(1) In general.--Each local educational agency receiving 
     funds under this part shall--
       ``(A) use the State academic assessments and other 
     indicators described in the State plan to review annually the 
     progress of each school served under this part to determine 
     whether the school is making adequate yearly progress as 
     defined in section 1111(b)(2);
       ``(B) at the local educational agency's discretion, use any 
     academic assessments or any other academic indicators 
     described in the local educational agency's plan under 
     section 1112(b)(1)(A) and (B) to review annually the progress 
     of each school served under this part to determine whether 
     the school is making adequate yearly progress as defined in 
     section 1111(b)(2), except that the local educational agency 
     may not use such indicators (other than as provided for in 
     section 1111(b)(2)(I)) if the indicators reduce the number or 
     change the schools that would otherwise be subject to school 
     improvement, corrective action, or restructuring under 
     section 1116 if such additional indicators were not used, but 
     may identify additional schools for school improvement or in 
     need of corrective action or restructuring;
       ``(C) publicize and disseminate the results of the local 
     annual review described in paragraph (1) to parents, 
     teachers, principals, schools, and the community so that the 
     teachers, principals, other staff, and schools can 
     continually refine, in an instructionally useful manner, the 
     program of instruction to help all children served under this 
     part meet the challenging State student academic achievement 
     standards established under section 1111(b)(1); and
       ``(D) review the effectiveness of the actions and 
     activities the schools are carrying out under this part with 
     respect to parental involvement, professional development, 
     and other activities assisted under this part.
       ``(2) Available results.--The State educational agency 
     shall ensure that the results of State academic assessments 
     administered in that school year are available to the local 
     educational agency before the beginning of the next school 
     year.
       ``(b) School Improvement.--
       ``(1) General requirements.--
       ``(A) Identification.--Subject to subparagraph (C), a local 
     educational agency shall identify for school improvement any 
     elementary school or secondary school served under this part 
     that fails, for 2 consecutive years, to make adequate yearly 
     progress as defined in the State's plan under section 
     1111(b)(2).
       ``(B) Deadline.--The identification described in 
     subparagraph (A) shall take place before the beginning of the 
     school year following such failure to make adequate yearly 
     progress.
       ``(C) Application.--Subparagraph (A) shall not apply to a 
     school if almost every student in each group specified in 
     section 1111(b)(2)(C)(v) enrolled in such school is meeting 
     or exceeding the State's proficient level of academic 
     achievement.
       ``(D) 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 for school improvement, corrective action, or 
     restructuring under this section, a local educational agency 
     may choose to review the progress of only the students in the 
     school who are served, or are eligible for services, under 
     this part.
       ``(E) Public school choice.--
       ``(i) In general.--In the case of a school identified for 
     school improvement under this paragraph, the local 
     educational agency shall, not later than the first day of the 
     school year following such identification, provide all 
     students enrolled in the school with the option to transfer 
     to another public school served by the local educational 
     agency, which may include a public charter school, that has 
     not been identified for school improvement under this 
     paragraph, unless such an option is prohibited by State law.
       ``(ii) Rule.--In providing students the option to transfer 
     to another public school, the local educational agency shall 
     give priority to the lowest achieving children from low-
     income families, as determined by the local educational 
     agency for purposes of allocating funds to schools under 
     section 1113(c)(1).
       ``(F) Transfer.--Students who use the option to transfer 
     under subparagraph (E) and paragraph (5)(A), (7)(C)(i), or 
     (8)(A)(i) or subsection (c)(10)(C)(vii) shall be enrolled in 
     classes and other activities in the public school to which 
     the students transfer in the same manner as all other 
     children at the public school.
       ``(2) Opportunity to review and present evidence; time 
     limit.--
       ``(A) Identification.--Before identifying an elementary 
     school or a secondary school for school improvement under 
     paragraphs (1) or (5)(A), for corrective action under 
     paragraph (7), or for restructuring under paragraph (8), the 
     local educational agency shall provide the school with an 
     opportunity to review the school-level data, including 
     academic assessment data, on which the proposed 
     identification is based.
       ``(B) Evidence.--If the principal of a school proposed for 
     identification under paragraph (1), (5)(A), (7), or (8) 
     believes, or a majority of the parents of the students 
     enrolled in such school believe, that the proposed 
     identification is in error for statistical or other 
     substantive reasons, the principal may provide supporting 
     evidence to the local educational agency, which shall 
     consider that evidence before making a final determination.
       ``(C) Final determination.--Not later than 30 days after a 
     local educational agency provides the school with the 
     opportunity to review such school-level data, the local 
     educational agency shall make public a final determination on 
     the status of the school with respect to the identification.
       ``(3) School plan.--
       ``(A) Revised plan.--After the resolution of a review under 
     paragraph (2), each school identified under paragraph (1) for 
     school improvement shall, not later than 3 months after being 
     so identified, develop or revise a school plan, in 
     consultation with parents, school staff, the local 
     educational agency serving the school, and outside experts, 
     for approval by such local educational agency. The school 
     plan shall cover a 2-year period and--
       ``(i) incorporate strategies based on scientifically based 
     research that will strengthen the core academic subjects in 
     the school and address the specific academic issues that 
     caused the school to be identified for school improvement, 
     and may include a strategy for the implementation of a 
     comprehensive school reform model that includes each of the 
     components described in part F;
       ``(ii) adopt policies and practices concerning the school's 
     core academic subjects that have the greatest likelihood of 
     ensuring that all groups of students specified in section 
     1111(b)(2)(C)(v) and enrolled in the school will meet the 
     State's proficient level of achievement on the State academic 
     assessment described in section 1111(b)(3) not later than 12 
     years after the end of the 2001-2002 school year;
       ``(iii) provide an assurance that the school will spend not 
     less than 10 percent of the funds made available to the 
     school under section 1113 for each fiscal year that the 
     school is in school improvement status, for the purpose of 
     providing to the school's teachers and principal high-quality 
     professional development that--

       ``(I) directly addresses the academic achievement problem 
     that caused the school to be identified for school 
     improvement;

       ``(II) meets the requirements for professional development 
     activities under section 1119; and

       ``(III) is provided in a manner that affords increased 
     opportunity for participating in that professional 
     development;

[[Page 25639]]

       ``(iv) specify how the funds described in clause (iii) will 
     be used to remove the school from school improvement status;
       ``(v) establish specific annual, measurable objectives for 
     continuous and substantial progress by each group of students 
     specified in section 1111(b)(2)(C)(v) and enrolled in the 
     school that will ensure that all such groups of students 
     will, in accordance with adequate yearly progress as defined 
     in section 1111(b)(2), meet the State's proficient level of 
     achievement on the State academic assessment described in 
     section 1111(b)(3) not later than 12 years after the end of 
     the 2001-2002 school year;
       ``(vi) describe how the school will provide written notice 
     about the identification to parents of each student enrolled 
     in such school, in a format and, to the extent practicable, 
     in a language that the parents can understand;
       ``(vii) specify the responsibilities of the school, the 
     local educational agency, and the State educational agency 
     serving the school under the plan, including the technical 
     assistance to be provided by the local educational agency 
     under paragraph (4) and the local educational agency's 
     responsibilities under section 1120A;
       ``(viii) include strategies to promote effective parental 
     involvement in the school;
       ``(ix) incorporate, as appropriate, activities before 
     school, after school, during the summer, and during any 
     extension of the school year; and
       ``(x) incorporate a teacher mentoring program.
       ``(B) Conditional approval.--The local educational agency 
     may condition approval of a school plan under this paragraph 
     on--
       ``(i) inclusion of one or more of the corrective actions 
     specified in paragraph (7)(C)(iv); or
       ``(ii) feedback on the school improvement plan from parents 
     and community leaders.
       ``(C) Plan implementation.--Except as provided in 
     subparagraph (D), a school shall implement the school plan 
     (including a revised plan) expeditiously, but not later than 
     the beginning of the next full school year following the 
     identification under paragraph (1).
       ``(D) Plan approved during school year.--Notwithstanding 
     subparagraph (C), if a plan is not approved prior to the 
     beginning of a school year, such plan shall be implemented 
     immediately upon approval.
       ``(E) Local educational agency approval.--The local 
     educational agency, within 45 days of receiving a school 
     plan, shall--
       ``(i) establish a peer review process to assist with review 
     of the school plan; and
       ``(ii) promptly review the school plan, work with the 
     school as necessary, and approve the school plan if the plan 
     meets the requirements of this paragraph.
       ``(4) Technical assistance.--
       ``(A) In general.--For each school identified for school 
     improvement under paragraph (1), the local educational agency 
     serving the school shall ensure the provision of technical 
     assistance as the school develops and implements the school 
     plan under paragraph (3) throughout the plan's duration.
       ``(B) Specific assistance.--Such technical assistance--
       ``(i) shall include assistance in analyzing data from the 
     assessments required under section 1111(b)(3), and other 
     examples of student work, to identify and address, problems 
     in instruction and problems, if any, in implementing the 
     parental involvement requirements described in section 1118, 
     the professional development requirements described in 
     section 1119, and the responsibilities of the school and 
     local educational agency under the school plan, and to 
     identify and address solutions to such problems;
       ``(ii) shall include assistance in identifying and 
     implementing professional development, instructional 
     strategies, and methods of instruction that are based on 
     scientifically based research and that have proven effective 
     in addressing the specific instructional issues that caused 
     the school to be identified for school improvement;
       ``(iii) shall include assistance in analyzing and revising 
     the school's budget so that the school's resources are more 
     effectively allocated to the activities most likely to 
     increase student academic achievement and to remove the 
     school from school improvement status; and
       ``(iv) may be provided--

       ``(I) by the local educational agency, through mechanisms 
     authorized under section 1117; or
       ``(II) by the State educational agency, an institution of 
     higher education (that is in full compliance with all the 
     reporting provisions of title II of the Higher Education Act 
     of 1965), a private not-for-profit organization or for-profit 
     organization, an educational service agency, or another 
     entity with experience in helping schools improve academic 
     achievement.

       ``(C) Scientifically based research.--Technical assistance 
     provided under this section by a local educational agency or 
     an entity approved by that agency shall be based on 
     scientifically based research.
       ``(5) Failure to make adequate yearly progress after 
     identification.--In the case of any school served under this 
     part that fails to make adequate yearly progress, as defined 
     by the State under section 1111(b)(2), by the end of the 
     first full school year after identification under paragraph 
     (1), the local educational agency serving such school--
       ``(A) shall continue to provide all students enrolled in 
     the school with the option to transfer to another public 
     school served by the local educational agency in accordance 
     with subparagraphs (E) and (F);
       ``(B) shall make supplemental educational services 
     available consistent with subsection (e)(1); and
       ``(C) shall continue to provide technical assistance.
       ``(6) Notice to parents.--A local educational agency shall 
     promptly provide to a parent or parents (in an understandable 
     and uniform format and, to the extent practicable, in a 
     language the parents can understand) of each student enrolled 
     in an elementary school or a secondary school identified for 
     school improvement under paragraph (1), for corrective action 
     under paragraph (7), or for restructuring under paragraph 
     (8)--
       ``(A) an explanation of what the identification means, and 
     how the school compares in terms of academic achievement to 
     other elementary schools or secondary schools served by the 
     local educational agency and the State educational agency 
     involved;
       ``(B) the reasons for the identification;
       ``(C) an explanation of what the school identified for 
     school improvement is doing to address the problem of low 
     achievement;
       ``(D) an explanation of what the local educational agency 
     or State educational agency is doing to help the school 
     address the achievement problem;
       ``(E) an explanation of how the parents can become involved 
     in addressing the academic issues that caused the school to 
     be identified for school improvement; and
       ``(F) an explanation of the parents' option to transfer 
     their child to another public school under paragraphs (1)(E), 
     (5)(A), (7)(C)(i), (8)(A)(i), and subsection (c)(10)(C)(vii) 
     (with transportation provided by the agency when required by 
     paragraph (9)) or to obtain supplemental educational services 
     for the child, in accordance with subsection (e).
       ``(7) Corrective action.--
       ``(A) In general.--In this subsection, the term `corrective 
     action' means action, consistent with State law, that--
       ``(i) substantially and directly responds to--

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

       ``(ii) is designed to increase substantially the likelihood 
     that each group of students described in 1111(b)(2)(C) 
     enrolled in the school identified for corrective action will 
     meet or exceed the State's proficient levels of achievement 
     on the State academic assessments described in section 
     1111(b)(3).
       ``(B) System.--In order to help students served under this 
     part meet challenging State student academic achievement 
     standards, each local educational agency shall implement a 
     system of corrective action in accordance with subparagraphs 
     (C) through (E).
       ``(C) Role of local educational agency.--In the case of any 
     school served by a local educational agency under this part 
     that fails to make adequate yearly progress, as defined by 
     the State under section 1111(b)(2), by the end of the second 
     full school year after the identification under paragraph 
     (1), the local educational agency shall--
       ``(i) continue to provide all students enrolled in the 
     school with the option to transfer to another public school 
     served by the local educational agency, in accordance with 
     paragraph (1)(E) and (F);
       ``(ii) continue to provide technical assistance consistent 
     with paragraph (4) while instituting any corrective action 
     under clause (iv);
       ``(iii) continue to make supplemental educational services 
     available, in accordance with subsection (e), to children who 
     remain in the school; and
       ``(iv) identify the school for corrective action and take 
     at least one of the following corrective actions:

       ``(I) Replace the school staff who are relevant to the 
     failure to make adequate yearly progress.
       ``(II) Institute and fully implement a new curriculum, 
     including providing appropriate professional development for 
     all relevant staff, that is based on scientifically based 
     research and offers substantial promise of improving 
     educational achievement for low-achieving students and 
     enabling the school to make adequate yearly progress.
       ``(III) Significantly decrease management authority at the 
     school level.
       ``(IV) Appoint an outside expert to advise the school on 
     its progress toward making adequate yearly progress, based on 
     its school plan under paragraph (3).
       ``(V) Extend the school year or school day for the school.
       ``(VI) Restructure the internal organizational structure of 
     the school.

       ``(D) Delay.--Notwithstanding any other provision of this 
     paragraph, the local educational agency may delay, for a 
     period not to exceed 1 year, implementation of the 
     requirements under paragraph (5), corrective action under 
     this paragraph, or restructuring under paragraph (8) if the 
     school makes adequate yearly progress for 1 year or if its 
     failure to make adequate yearly progress is 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. No such period shall be taken into account in 
     determining the number of consecutive years of failure to 
     make adequate yearly progress.
       ``(E) Publication and dissemination.--The local educational 
     agency shall publish and disseminate information regarding 
     any corrective action the local educational agency takes 
     under this paragraph at a school--
       ``(i) to the public and to the parents of each student 
     enrolled in the school subject to corrective action;

[[Page 25640]]

       ``(ii) in an understandable and uniform format and, to the 
     extent practicable, provided in a language that the parents 
     can understand; and
       ``(iii) through such means as the Internet, the media, and 
     public agencies.
       ``(8) Restructuring.--
       ``(A) Failure to make adequate yearly progress.--If, after 
     1 full school year of corrective action under paragraph (7), 
     a school subject to such corrective action continues to fail 
     to make adequate yearly progress, then the local educational 
     agency shall--
       ``(i) continue to provide all students enrolled in the 
     school with the option to transfer to another public school 
     served by the local educational agency, in accordance with 
     paragraph (1)(E) and (F);
       ``(ii) continue to make supplemental educational services 
     available, in accordance with subsection (e), to children who 
     remain in the school; and
       ``(iii) prepare a plan and make necessary arrangements to 
     carry out subparagraph (B).
       ``(B) Alternative governance.--Not later than the beginning 
     of the school year following the year in which the local 
     educational agency implements subparagraph (A), the local 
     educational agency shall implement one of the following 
     alternative governance arrangements for the school consistent 
     with State law:
       ``(i) Reopening the school as a public charter school.
       ``(ii) Replacing all or most of the school staff (which may 
     include the principal) who are relevant to the failure to 
     make adequate yearly progress.
       ``(iii) Entering into a contract with an entity, such as a 
     private management company, with a demonstrated record of 
     effectiveness, to operate the public school.
       ``(iv) Turning the operation of the school over to the 
     State, if permitted under State law and agreed to by the 
     State.
       ``(v) Any other major restructuring of the school's 
     governance arrangement that makes fundamental reforms, such 
     as significant changes in the school's staffing and 
     governance, to improve student academic achievement in the 
     school and that has substantial promise of enabling the 
     school to make adequate yearly progress as defined in the 
     State plan under section 1111(b)(2). In the case of a rural 
     local educational agency with a total of less than 600 
     students in average daily attendance at the schools that are 
     served by the agency and all of whose schools have a School 
     Locale Code of 7 or 8, as determined by the Secretary, the 
     Secretary shall, at such agency's request, provide technical 
     assistance to such agency for the purpose of implementing 
     this clause.
       ``(C) Prompt notice.--The local educational agency shall--
       ``(i) provide prompt notice to teachers and parents 
     whenever subparagraph (A) or (B) applies; and
       ``(ii) provide the teachers and parents with an adequate 
     opportunity to--

       ``(I) comment before taking any action under those 
     subparagraphs; and
       ``(II) participate in developing any plan under 
     subparagraph (A)(iii).

       ``(9) Transportation.--In any case described in paragraph 
     (1)(E) for schools described in paragraphs (1)(A), (5), 
     (7)(C)(i), and (8)(A), and subsection (c)(10)(C)(vii), the 
     local educational agency shall provide, or shall pay for the 
     provision of, transportation for the student to the public 
     school the student attends.
       ``(10) Funds for transportation and supplemental 
     educational services.--
       ``(A) In general.--Unless a lesser amount is needed to 
     comply with paragraph (9) and to satisfy all requests for 
     supplemental educational services under subsection (e), a 
     local educational agency shall spend an amount equal to 20 
     percent of its allocation under subpart 2, from which the 
     agency shall spend--
       ``(i) an amount equal to 5 percent of its allocation under 
     subpart 2 to provide, or pay for, transportation under 
     paragraph (9);
       ``(ii) an amount equal to 5 percent of its allocation under 
     subpart 2 to provide supplemental educational services under 
     subsection (e); and
       ``(iii) an amount equal to the remaining 10 percent of its 
     allocation under subpart 2 for transportation under paragraph 
     (9), supplemental educational services under subsection (e), 
     or both, as the agency determines.
       ``(B) Total amount.--The total amount described in 
     subparagraph (A)(ii) is the maximum amount the local 
     educational agency shall be required to spend under this part 
     on supplemental educational services described in subsection 
     (e).
       ``(C) Insufficient funds.--If the amount of funds described 
     in subparagraph (A)(ii) or (iii) and available to provide 
     services under this subsection is insufficient to provide 
     supplemental educational services to each child whose parents 
     request the services, the local educational agency shall give 
     priority to providing the services to the lowest-achieving 
     children.
       ``(D) Prohibition.--A local educational agency shall not, 
     as a result of the application of this paragraph, reduce by 
     more than 15 percent the total amount made available under 
     section 1113(c) to a school described in paragraph (7)(C) or 
     (8)(A) of subsection (b).
       ``(11) Cooperative agreement.--In any case described in 
     paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or 
     subsection (c)(10)(C)(vii) if all public schools served by 
     the local educational agency to which a child may transfer 
     are identified for school improvement, corrective action or 
     restructuring, the agency shall, to the extent practicable, 
     establish a cooperative agreement with other local 
     educational agencies in the area for a transfer.
       ``(12) Duration.--If any school identified for school 
     improvement, corrective action, or restructuring makes 
     adequate yearly progress for 2 consecutive school years, the 
     local educational agency shall no longer subject the school 
     to the requirements of school improvement, corrective action, 
     or restructuring or identify the school for school 
     improvement for the succeeding school year.
       ``(13) Special rule.--A local educational agency shall 
     permit a child who transferred to another school under this 
     subsection to remain in that school until the child has 
     completed the highest grade in that school. The obligation of 
     the local educational agency to provide, or to provide for, 
     transportation for the child ends at the end of a school year 
     if the local educational agency determines that the school 
     from which the child transferred is no longer identified for 
     school improvement or subject to corrective action or 
     restructuring.
       ``(14) State educational agency responsibilities.--The 
     State educational agency shall--
       ``(A) make technical assistance under section 1117 
     available to schools identified for school improvement, 
     corrective action, or restructuring under this subsection 
     consistent with section 1117(a)(2);
       ``(B) if the State educational agency determines that a 
     local educational agency failed to carry out its 
     responsibilities under this subsection, take such corrective 
     actions as the State educational agency determines to be 
     appropriate and in compliance with State law;
       ``(C) ensure that academic assessment results under this 
     part are provided to schools before any identification of a 
     school may take place under this subsection; and
       ``(D) for local educational agencies or schools identified 
     for improvement under this subsection, notify the Secretary 
     of major factors that were brought to the attention of the 
     State educational agency under section 1111(b)(9) that have 
     significantly affected student academic achievement.
       ``(c) State Review and Local Educational Agency 
     Improvement.--
       ``(1) In general.--A State shall--
       ``(A) annually review the progress of each local 
     educational agency receiving funds under this part to 
     determine whether schools receiving assistance under this 
     part are making adequate yearly progress as defined in 
     section 1111(b)(2) toward meeting the State's student 
     academic achievement standards and to determine if each local 
     educational agency is carrying out its responsibilities under 
     this section and sections 1117, 1118, and 1119; and
       ``(B) publicize and disseminate to local educational 
     agencies, teachers and other staff, parents, students, and 
     the community the results of the State review, including 
     statistically sound disaggregated results, as required by 
     section 1111(b)(2).
       ``(2) Rewards.--In the case of a local educational agency 
     that, for 2 consecutive years, has exceeded adequate yearly 
     progress as defined in the State plan under section 
     1111(b)(2), the State may make rewards of the kinds described 
     under section 1117 to the agency.
       ``(3) Identification of local educational agency for 
     improvement.--A State shall identify for improvement any 
     local educational agency that, for 2 consecutive years, 
     including the period immediately prior to the date of 
     enactment of the No Child Left Behind Act of 2001, failed to 
     make adequate yearly progress as defined in the State's plan 
     under section 1111(b)(2).
       ``(4) Targeted assistance schools.--When reviewing targeted 
     assistance schools served by a local educational agency, a 
     State educational agency may choose to review the progress of 
     only the students in such schools who are served, or are 
     eligible for services, under this part.
       ``(5) Opportunity to review and present evidence.--
       ``(A) Review.--Before identifying a local educational 
     agency for improvement under paragraph (3) or corrective 
     action under paragraph (10), a State educational agency shall 
     provide the local educational agency with an opportunity to 
     review the data, including academic assessment data, on which 
     the proposed identification is based.
       ``(B) Evidence.--If the local educational agency believes 
     that the proposed identification is in error for statistical 
     or other substantive reasons, the agency may provide 
     supporting evidence to the State educational agency, which 
     shall consider the evidence before making a final 
     determination not later than 30 days after the State 
     educational agency provides the local educational agency with 
     the opportunity to review such data under subparagraph (A).
       ``(6) Notification to parents.--The State educational 
     agency shall promptly provide to the parents (in a format 
     and, to the extent practicable, in a language the parents can 
     understand) of each student enrolled in a school served by a 
     local educational agency identified for improvement, the 
     results of the review under paragraph (1) and, if the agency 
     is identified for improvement, the reasons for that 
     identification and how parents can participate in upgrading 
     the quality of the local educational agency.
       ``(7) Local educational agency revisions.--
       ``(A) Plan.--Each local educational agency identified under 
     paragraph (3) shall, not later than 3 months after being so 
     identified, develop or revise a local educational agency 
     plan, in

[[Page 25641]]

     consultation with parents, school staff, and others. Such 
     plan shall--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic program in schools served 
     by the local educational agency;
       ``(ii) identify actions that have the greatest likelihood 
     of improving the achievement of participating children in 
     meeting the State's student academic achievement standards;
       ``(iii) address the professional development needs of the 
     instructional staff serving the agency by committing to spend 
     not less than 10 percent of the funds received by the local 
     educational agency under subpart 2 for each fiscal year in 
     which the agency is identified for improvement for 
     professional development (including funds reserved for 
     professional development under subsection (b)(3)(A)(iii)), 
     but excluding funds reserved for professional development 
     under section 1119;
       ``(iv) include specific measurable achievement goals and 
     targets for each of the groups of students identified in the 
     disaggregated data pursuant to section 1111(b)(2)(C)(v), 
     consistent with adequate yearly progress as defined under 
     section 1111(b)(2);
       ``(v) address the fundamental teaching and learning needs 
     in the schools of that agency, and the specific academic 
     problems of low-achieving students, including a determination 
     of why the local educational agency's prior plan failed to 
     bring about increased student academic achievement;
       ``(vi) incorporate, as appropriate, activities before 
     school, after school, during the summer, and during an 
     extension of the school year;
       ``(vii) specify the responsibilities of the State 
     educational agency and the local educational agency under the 
     plan, including specifying the technical assistance to be 
     provided by the State educational agency under paragraph (9) 
     and the local educational agency's responsibilities under 
     section 1120A; and
       ``(viii) include strategies to promote effective parental 
     involvement in the school.
       ``(B) Implementation.--The local educational agency shall 
     implement the plan (including a revised plan) expeditiously, 
     but not later than the beginning of the next school year 
     after the school year in which the agency was identified for 
     improvement.
       ``(9) State educational agency responsibility.--
       ``(A) Technical or other assistance.--For each local 
     educational agency identified under paragraph (3), the State 
     educational agency shall provide technical or other 
     assistance if requested, as authorized under section 1117, to 
     better enable the local educational agency to--
       ``(i) develop and implement the local educational agency's 
     plan; and
       ``(ii) work with schools needing improvement.
       ``(B) Methods and strategies.--Technical assistance 
     provided under this section by the State educational agency 
     or an entity authorized by such agency shall be supported by 
     effective methods and instructional strategies based on 
     scientifically based research. Such technical assistance 
     shall address problems, if any, in implementing the parental 
     involvement activities described in section 1118 and the 
     professional development activities described in section 
     1119.
       ``(10) Corrective action.--In order to help students served 
     under this part meet challenging State student academic 
     achievement standards, each State shall implement a system of 
     corrective action in accordance with the following:
       ``(A) Definition.--As used in this paragraph, the term 
     `corrective action' means action, consistent with State law, 
     that--
       ``(i) substantially and directly responds to the consistent 
     academic failure that caused the State to take such action 
     and to any underlying staffing, curricular, or other problems 
     in the agency; and
       ``(ii) is designed to meet the goal of having all students 
     served under this part achieve at the proficient and advanced 
     student academic achievement levels.
       ``(B) General requirements.--After providing technical 
     assistance under paragraph (9) and subject to subparagraph 
     (E), the State--
       ``(i) may take corrective action at any time with respect 
     to a local educational agency that has been identified under 
     paragraph (3);
       ``(ii) shall take corrective action with respect to any 
     local educational agency that fails to make adequate yearly 
     progress, as defined by the State, by the end of the second 
     full school year after the identification of the agency under 
     paragraph (3); and


  ``(iii) shall continue to provide technical assistance while 
instituting any corrective action under clause (i) or (ii).
      ``(C) Certain corrective actions required.--In the case of a 
local educational agency identified for corrective action, the State 
educational agency shall take at least one of the following 
corrective actions:
  ``(i) Deferring programmatic funds or reducing administrative 
funds.
       ``(ii) Instituting and fully implementing a new curriculum 
     that is based on State and local academic content and 
     achievement standards, including providing appropriate 
     professional development based on scientifically based 
     research for all relevant staff, that offers substantial 
     promise of improving educational achievement for low-
     achieving students.
       ``(iii) Replacing the local educational agency personnel 
     who are relevant to the failure to make adequate yearly 
     progress.
       ``(iv) Removing particular schools from the jurisdiction of 
     the local educational agency and establishing alternative 
     arrangements for public governance and supervision of such 
     schools.
       ``(v) Appointing, through the State educational agency, a 
     receiver or trustee to administer the affairs of the local 
     educational agency in place of the superintendent and school 
     board.
       ``(vi) Abolishing or restructuring the local educational 
     agency.
       ``(vii) Authorizing students to transfer from a school 
     operated by the local educational agency to a higher-
     performing public school operated by another local 
     educational agency in accordance with subsections (b)(1)(E) 
     and (F), and providing to such students transportation (or 
     the costs of transportation) to such schools consistent with 
     subsection (b)(9), in conjunction with carrying out not less 
     than 1 additional action described under this subparagraph.
       ``(D) Hearing.--Prior to implementing any corrective action 
     under this paragraph, the State educational agency shall 
     provide notice and a hearing to the affected local 
     educational agency, if State law provides for such notice and 
     hearing. The hearing shall take place not later than 45 days 
     following the decision to implement corrective action.
       ``(E) Notice to parents.--The State educational agency 
     shall publish, and disseminate to parents and the public, 
     information on any corrective action the State educational 
     agency takes under this paragraph through such means as the 
     Internet, the media, and public agencies.
       ``(F) Delay.--Notwithstanding subparagraph (B)(ii), a State 
     educational agency may delay, for a period not to exceed 1 
     year, implementation of corrective action under this 
     paragraph if the local educational agency makes adequate 
     yearly progress for 1 year or its failure to make adequate 
     yearly progress is 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. No such period shall be taken into 
     account in determining the number of consecutive years of 
     failure to make adequate yearly progress.
       ``(11) Special rule.--If a local educational agency makes 
     adequate yearly progress for 2 consecutive school years 
     beginning after the date of identification of the agency 
     under paragraph (3), the State educational agency need no 
     longer subject the local educational agency to corrective 
     action for the succeeding school year.
       ``(d) Construction.--Nothing in this section shall be 
     construed to alter or otherwise affect the rights, remedies, 
     and procedures afforded school or school district employees 
     under Federal, State, or local laws (including applicable 
     regulations or court orders) or under the terms of collective 
     bargaining agreements, memoranda of understanding, or other 
     agreements between such employees and their employers.
       ``(e) Supplemental Educational Services.--
       ``(1) Supplemental educational services.--In the case of 
     any school described in paragraph (5), (7), or (8) of 
     subsection (b), the local educational agency serving such 
     school shall, subject to this subsection, arrange for the 
     provision of supplemental educational services to eligible 
     children in the school from a provider with a demonstrated 
     record of effectiveness, that is selected by the parents and 
     approved for that purpose by the State educational agency in 
     accordance with reasonable criteria, consistent with 
     paragraph (5), that the State educational agency shall adopt.
       ``(2) Local educational agency responsibilities.--Each 
     local educational agency subject to this subsection shall--
       ``(A) provide, at a minimum, annual notice to parents (in 
     an understandable and uniform format and, to the extent 
     practicable, in a language the parents can understand) of--
       ``(i) the availability of services under this subsection;
       ``(ii) the identity of approved providers of those services 
     that are within the local educational agency or whose 
     services are reasonably available in neighboring local 
     educational agencies; and
       ``(iii) a brief description of the services, 
     qualifications, and demonstrated effectiveness of each such 
     provider;
       ``(B) if requested, assist parents in choosing a provider 
     from the list of approved providers maintained by the State;
       ``(C) apply fair and equitable procedures for serving 
     students if the number of spaces at approved providers is not 
     sufficient to serve all students; and
       ``(D) not disclose to the public the identity of any 
     student who is eligible for, or receiving, supplemental 
     educational services under this subsection without the 
     written permission of the parents of the student.
       ``(3) Agreement.--In the case of the selection of an 
     approved provider by a parent, the local educational agency 
     shall enter into an agreement with such provider. Such 
     agreement shall--
       ``(A) require the local educational agency to develop, in 
     consultation with parents (and the provider chosen by the 
     parents), a statement of specific achievement goals for the 
     student, how the student's progress will be measured, and a 
     timetable for improving achievement that, in the case of a 
     student with disabilities, is consistent with the student's 
     individualized education program under section 614(d) of the 
     Individuals with Disabilities Education Act;
       ``(B) describe how the student's parents and the student's 
     teacher or teachers will be regularly informed of the 
     student's progress;
       ``(C) provide for the termination of such agreement if the 
     provider is unable to meet such goals and timetables;
       ``(D) contain provisions with respect to the making of 
     payments to the provider by the local educational agency; and

[[Page 25642]]

       ``(E) prohibit the provider from disclosing to the public 
     the identity of any student eligible for, or receiving, 
     supplemental educational services under this subsection 
     without the written permission of the parents of such 
     student.
       ``(4) State educational agency responsibilities.--A State 
     educational agency shall--
       ``(A) in consultation with local educational agencies, 
     parents, teachers, and other interested members of the 
     public, promote maximum participation by providers to ensure, 
     to the extent practicable, that parents have as many choices 
     as possible;
       ``(B) develop and apply objective criteria, consistent with 
     paragraph (5), to potential providers that are based on a 
     demonstrated record of effectiveness in increasing the 
     academic proficiency of students in subjects relevant to 
     meeting the State academic content and student achievement 
     standards adopted under section 1111(b)(1);
       ``(C) maintain an updated list of approved providers across 
     the State, by school district, from which parents may select;
       ``(D) develop, implement, and publicly report on standards 
     and techniques for monitoring the quality and effectiveness 
     of the services offered by approved providers under this 
     subsection, and for withdrawing approval from providers that 
     fail, for 2 consecutive years, to contribute to increasing 
     the academic proficiency of students served under this 
     subsection as described in subparagraph (B); and
       ``(E) provide annual notice to potential providers of 
     supplemental educational services of the opportunity to 
     provide services under this subsection and of the applicable 
     procedures for obtaining approval from the State educational 
     agency to be an approved provider of those services.
       ``(5) Criteria for providers.--In order for a provider to 
     be included on the State list under paragraph (4)(C), a 
     provider shall agree to carry out the following:
       ``(A) Provide parents of children receiving supplemental 
     educational services under this subsection and the 
     appropriate local educational agency with information on the 
     progress of the children in increasing achievement, in a 
     format and, to the extent practicable, a language that such 
     parents can understand.
       ``(B) Ensure that instruction provided and content used by 
     the provider are consistent with the instruction provided and 
     content used by the local educational agency and State, and 
     are aligned with State student academic achievement 
     standards.
       ``(C) Meet all applicable Federal, State, and local health, 
     safety, and civil rights laws.
       ``(D) Ensure that all instruction and content under this 
     subsection are secular, neutral, and nonideological.
       ``(6) Amounts for supplemental educational services.--The 
     amount that a local educational agency shall make available 
     for supplemental educational services for each child 
     receiving those services under this subsection shall be the 
     lesser of--
       ``(A) the amount of the agency's allocation under subpart 
     2, divided by the number of children from families below the 
     poverty level counted under section 1124(c)(1)(A); or
       ``(B) the actual costs of the supplemental educational 
     services received by the child.
       ``(7) Funds provided by state educational agency.--Each 
     State educational agency may use funds that the agency 
     reserves under this part, and part A of title V, to assist 
     local educational agencies that do not have sufficient funds 
     to provide services under this subsection for all eligible 
     students requesting such services.
       ``(8) Duration.--The local educational agency shall 
     continue to provide supplemental educational services to a 
     child receiving such services under this subsection until the 
     end of the school year in which such services were first 
     received.
       ``(9) Prohibition.--Nothing contained in this subsection 
     shall permit the making of any payment for religious worship 
     or instruction.
       ``(10) Waiver.--
       ``(A) Requirement.--At the request of a local educational 
     agency, a State educational agency may waive, in whole or in 
     part, the requirement of this subsection to provide 
     supplemental educational services if the State educational 
     agency determines that--
       ``(i) none of the providers of those services on the list 
     approved by the State educational agency under paragraph 
     (4)(C) makes those services available in the area served by 
     the local educational agency or within a reasonable distance 
     of that area; and
       ``(ii) the local educational agency provides evidence that 
     it is not able to provide those services.
       ``(B) Notification.--The State educational agency shall 
     notify the local educational agency, within 30 days of 
     receiving the local educational agency's request for a waiver 
     under subparagraph (A), whether the request is approved or 
     disapproved and, if disapproved, the reasons for the 
     disapproval, in writing.
       ``(11) Special rule.--If State law prohibits a State 
     educational agency from carrying out one or more of its 
     responsibilities under paragraph (4) with respect to those 
     who provide, or seek approval to provide, supplemental 
     educational services, each local educational agency in the 
     State shall carry out those responsibilities with respect to 
     its students who are eligible for those services.
       ``(12) Definitions.--In this subsection--
       ``(A) the term `eligible child' means a child from a low-
     income family, as determined by the local educational agency 
     for purposes of allocating funds to schools under section 
     1113(c)(1);
       ``(B) the term `provider' means a non-profit entity, a for-
     profit entity, or a local educational agency that--
       ``(i) has a demonstrated record of effectiveness in 
     increasing student academic achievement;
       ``(ii) is capable of providing supplemental educational 
     services that are consistent with the instructional program 
     of the local educational agency and the academic standards 
     described under section 1111; and
       ``(iii) is financially sound; and
       ``(C) the term `supplemental educational services' means 
     tutoring and other supplemental academic enrichment services 
     that are--
       ``(i) in addition to instruction provided during the school 
     day; and
       ``(ii) are of high quality, research-based, and 
     specifically designed to increase the academic achievement of 
     eligible children on the academic assessments required under 
     section 1111 and attain proficiency in meeting the State's 
     academic achievement standards.
       ``(f) Schools and LEAs Previously Identified for 
     Improvement or Corrective Action.--
       ``(1) Schools.--
       ``(A) School improvement.--
       ``(i) Schools in school-improvement status before date of 
     enactment.--Any school that was in the first year of school 
     improvement status under this section on the day preceding 
     the date of enactment of the No Child Left Behind Act of 2001 
     (as this section was in effect on such day) shall be treated 
     by the local educational agency as a school that is in the 
     first year of school improvement status under paragraph (1).
       ``(ii) Schools in school-improvement status for 2 or more 
     years before date of enactment.--Any school that was in 
     school improvement status under this section for 2 or more 
     consecutive school years preceding the date of enactment of 
     the No Child Left Behind Act of 2001 (as this section was in 
     effect on such day) shall be treated by the local educational 
     agency as a school described in subsection (b)(5).
       ``(B) Corrective action.--Any school that was in corrective 
     action status under this section on the day preceding the 
     date of enactment of the No Child Left Behind Act of 2001 (as 
     this section was in effect on such day) shall be treated by 
     the local educational agency as a school described in 
     paragraph (7).
       ``(2) LEAs.--
       ``(A) LEA improvement.--A State shall identify for 
     improvement under subsection (c)(3) any local educational 
     agency that was in improvement status under this section as 
     this section was in effect on the day preceding the date of 
     enactment of the No Child Left Behind Act of 2001.
       ``(B) Corrective action.--A State shall identify for 
     corrective action under subsection (c)(10) any local 
     educational agency that was in corrective action status under 
     this section as this section was in effect on the day 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001.
       ``(C) Special rule.--For the schools and other local 
     educational agencies described under paragraphs (1) and (2), 
     as required, the State shall ensure that public school choice 
     in accordance with subparagraphs (b)(1)(E) and (F) and 
     supplemental education services in accordance with subsection 
     (e) are provided not later than the first day of the 2002-
     2003 school year.
       ``(D) Transition.--With respect to a determination that a 
     local educational agency has for 2 consecutive years failed 
     to make adequate yearly progress as defined in the State plan 
     under section 1111(b)(2), such determination shall include in 
     such 2-year period any continuous period of time immediately 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001 during which the agency has failed to make such 
     progress.
       ``(g) Schools Funded by the Bureau of Indian Affairs.--
       ``(1) Adequate yearly progress for bureau funded schools.--
       ``(A) Development of definition.--
       ``(i) Definition.--The Secretary of the Interior, in 
     consultation with the Secretary if the Secretary of Interior 
     requests the consultation, using the process set out in 
     section 1138(b) of the Education Amendments of 1978, shall 
     define adequate yearly progress, consistent with section 
     1111(b), for the schools funded by the Bureau of Indian 
     Affairs on a regional or tribal basis, as appropriate, taking 
     into account the unique circumstances and needs of such 
     schools and the students served by such schools.
       ``(ii) Use of definition.--The Secretary of the Interior, 
     consistent with clause (i), may use the definition of 
     adequate yearly progress that the State in which the school 
     that is funded by the Bureau is located uses consistent with 
     section 1111(b), or in the case of schools that are located 
     in more than 1 State, the Secretary of the Interior may use 
     whichever State definition of adequate yearly progress that 
     best meets the unique circumstances and needs of such school 
     or schools and the students the schools serve.
       ``(B) Waiver.--The tribal governing body or school board of 
     a school funded by the Bureau of Indian Affairs may waive, in 
     part or in whole, the definition of adequate yearly progress 
     established pursuant to paragraph (A) where such definition 
     is determined by such body or school board to be 
     inappropriate. If such definition is waived, the tribal 
     governing body or school board shall, within 60 days 
     thereafter, submit to the Secretary of Interior a proposal 
     for an alternative definition of adequate yearly progress, 
     consistent with section

[[Page 25643]]

     1111(b), that takes into account the unique circumstances and 
     needs of such school or schools and the students served. The 
     Secretary of the Interior, in consultation with the Secretary 
     if the Secretary of Interior requests the consultation, shall 
     approve such alternative definition unless the Secretary 
     determines that the definition does not meet the requirements 
     of section 1111(b), taking into account the unique 
     circumstances and needs of such school or schools and the 
     students served.
       ``(C) Technical assistance.--The Secretary of Interior 
     shall, in consultation with the Secretary if the Secretary of 
     Interior requests the consultation, either directly or 
     through a contract, provide technical assistance, upon 
     request, to a tribal governing body or school board of a 
     school funded by the Bureau of Indian Affairs that seeks to 
     develop an alternative definition of adequate yearly 
     progress.
       ``(2) Accountability for bia schools.--For the purposes of 
     this section, schools funded by the Bureau of Indian Affairs 
     shall be considered schools subject to subsection (b), as 
     specifically provided for in this subsection, except that 
     such schools shall not be subject to subsection (c), or the 
     requirements to provide public school choice and supplemental 
     educational services under subsections (b) and (e).
       ``(3) School improvement for bureau schools.--
       ``(A) Contract and grant schools.--For a school funded by 
     the Bureau of Indian Affairs which is operated under a 
     contract issued by the Secretary of the Interior pursuant to 
     the Indian Self-Determination Act (25 U.S.C. 450 et seq.) or 
     under a grant issued by the Secretary of the Interior 
     pursuant to the Tribally Controlled Schools Act of 1988 (25 
     U.S.C. 2501 et seq.), the school board of such school shall 
     be responsible for meeting the requirements of subsection (b) 
     relating to development and implementation of any school 
     improvement plan as described in subsections (b)(1) through 
     (b)(3), and subsection (b)(5), other than subsection 
     (b)(1)(E). The Bureau of Indian Affairs shall be responsible 
     for meeting the requirements of subsection (b)(4) relating to 
     technical assistance.
       ``(B) Bureau operated schools.--For schools operated by the 
     Bureau of Indian Affairs, the Bureau shall be responsible for 
     meeting the requirements of subsection (b) relating to 
     development and implementation of any school improvement plan 
     as described in subsections (b)(1) through (b)(5), other than 
     subsection (b)(1)(E).
       ``(4) Corrective action and restructuring for bureau funded 
     schools.--
       ``(A) Contract and grant schools.--For a school funded by 
     the Bureau of Indian Affairs which is operated under a 
     contract issued by the Secretary of the Interior pursuant to 
     the Indian Self-Determination Act (25 U.S.C. 450 et seq.) or 
     under a grant issued by the Secretary of the Interior 
     pursuant to the Tribally Controlled Schools Act of 1988 (25 
     U.S.C. 2501 et seq.), the school board of such school shall 
     be responsible for meeting the requirements of subsection (b) 
     relating to corrective action and restructuring as described 
     in subsection (b)(7) and (b)(8). Any action taken by such 
     school board under subsection (b)(7) or (b)(8) shall take 
     into account the unique circumstances and structure of the 
     Bureau of Indian Affairs-funded school system and the laws 
     governing that system.
       ``(B) Bureau operated schools.--For schools operated by the 
     Bureau of Indian Affairs, the Bureau shall be responsible for 
     meeting the requirements of subsection (b) relating to 
     corrective action and restructuring as described in 
     subsection (b)(7) and (b)(8). Any action taken by the Bureau 
     under subsection (b)(7) or (b)(8) shall take into account the 
     unique circumstances and structure of the Bureau of Indian 
     Affairs-funded school system and the laws governing that 
     system.
       ``(5) Annual report.--On an annual basis, the Secretary of 
     the Interior shall report to the Secretary of Education and 
     to the appropriate committees of Congress regarding any 
     schools funded by the Bureau of Indian Affairs which have 
     been identified for school improvement. Such report shall 
     include--
       ``(A) the identity of each school;
       B) a statement from each affected school board regarding 
     the factors that lead to such identification; and
       ``(C) an analysis by the Secretary of the Interior, in 
     consultation with the Secretary if the Secretary of Interior 
     requests the consultation, as to whether sufficient resources 
     were available to enable such school to achieve adequate 
     yearly progress.
       ``(h) Other Agencies.--After receiving the notice described 
     in subsection (b)(14)(D), the Secretary may notify, to the 
     extent feasible and necessary as determined by the Secretary, 
     other relevant Federal agencies regarding the major factors 
     that were determined by the State educational agency to have 
     significantly affected student academic achievement.

     ``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

       ``(a) System for Support.--
       ``(1) In general.--Each State shall establish a statewide 
     system of intensive and sustained support and improvement for 
     local educational agencies and schools receiving funds under 
     this part, in order to increase the opportunity for all 
     students served by those agencies and schools to meet the 
     State's academic content standards and student academic 
     achievement standards.
       ``(2) Priorities.--In carrying out this subsection, a State 
     shall--
       ``(A) first, provide support and assistance to local 
     educational agencies with schools subject to corrective 
     action under section 1116 and assist those schools, in 
     accordance with section 1116(b)(11), for which a local 
     educational agency has failed to carry out its 
     responsibilities under paragraphs (7) and (8) of section 
     1116(b);
       ``(B) second, provide support and assistance to other local 
     educational agencies with schools identified as in need of 
     improvement under section 1116(b); and
       ``(C) third, provide support and assistance to other local 
     educational agencies and schools participating under this 
     part that need that support and assistance in order to 
     achieve the purpose of this part.
       ``(3) Regional centers.--Such a statewide system shall, to 
     the extent practicable, work with and receive support and 
     assistance from the comprehensive regional technical 
     assistance centers and the regional educational laboratories 
     under section 941(h) of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994, or 
     other providers of technical assistance.
       ``(4) Statewide system.--
       ``(A) In order to achieve the purpose described in 
     paragraph (1), the statewide system shall include, at a 
     minimum, the following approaches:
       ``(i) Establishing school support teams in accordance with 
     subparagraph (C) for assignment to, and working in, schools 
     in the State that are described in paragraph (2).
       ``(ii) Providing such support as the State educational 
     agency determines necessary and available in order to ensure 
     the effectiveness of such teams.
       ``(iii) Designating and using distinguished teachers and 
     principals who are chosen from schools served under this part 
     that have been especially successful in improving academic 
     achievement.
       ``(iv) Devising additional approaches to providing the 
     assistance described in paragraph (1), such as providing 
     assistance through institutions of higher education and 
     educational service agencies or other local consortia, and 
     private providers of scientifically based technical 
     assistance.
       ``(B) Priority.--The State educational agency shall give 
     priority to the approach described in clause (i) of 
     subparagraph (A).
       ``(5) School support teams.--
       ``(A) Composition.--Each school support team established 
     under this section shall be composed of persons knowledgeable 
     about scientifically based research and practice on teaching 
     and learning and about successful schoolwide projects, school 
     reform, and improving educational opportunities for low-
     achieving students, including--
       ``(i) highly qualified or distinguished teachers and 
     principals;
       ``(ii) pupil services personnel;
       ``(iii) parents;
       ``(iv) representatives of institutions of higher education;
       ``(v) representatives of regional educational laboratories 
     or comprehensive regional technical assistance centers;
       ``(vi) representatives of outside consultant groups; or
       ``(vii) other individuals as the State educational agency, 
     in consultation with the local educational agency, may 
     determine appropriate.
       ``(B) Functions.--Each school support team assigned to a 
     school under this section shall--
       ``(i) review and analyze all facets of the school's 
     operation, including the design and operation of the 
     instructional program, and assist the school in developing 
     recommendations for improving student performance in that 
     school;
       ``(ii) collaborate with parents and school staff and the 
     local educational agency serving the school in the design, 
     implementation, and monitoring of a plan that, if fully 
     implemented, can reasonably be expected to improve student 
     performance and help the school meet its goals for 
     improvement, including adequate yearly progress under section 
     1111(b)(2)(B);
       ``(iii) evaluate, at least semiannually, the effectiveness 
     of school personnel assigned to the school, including 
     identifying outstanding teachers and principals, and make 
     findings and recommendations to the school, the local 
     educational agency, and, where appropriate, the State 
     educational agency; and
       ``(iv) make additional recommendations as the school 
     implements the plan described in clause (ii) to the local 
     educational agency and the State educational agency 
     concerning additional assistance that is needed by the school 
     or the school support team.
       ``(C) Continuation of assistance.--After 1 school year, 
     from the beginning of the activities, such school support 
     team, in consultation with the local educational agency, may 
     recommend that the school support team continue to provide 
     assistance to the school, or that the local educational 
     agency or the State educational agency, as appropriate, take 
     alternative actions with regard to the school.
       ``(b) State Recognition.--
       ``(1) Academic achievement awards program.--
       ``(A) In general.--Each State receiving a grant under this 
     part--
       ``(i) shall establish a program for making academic 
     achievement awards to recognize schools that meet the 
     criteria described in subparagraph (B); and
       ``(ii) as appropriate and as funds are available under 
     subsection (c)(2)(A), may financially reward schools served 
     under this part that meet the criteria described in clause 
     (ii).
       ``(B) Criteria.--The criteria referred to in subparagraph 
     (A) are that a school--
       ``(i) significantly closed the achievement gap between the 
     groups of students described in section 1111(b)(2); or

[[Page 25644]]

       ``(ii) exceeded their adequate yearly progress, consistent 
     with section 1111(b)(2), for 2 or more consecutive years.
       ``(2) Distinguished schools.--Of those schools meeting the 
     criteria described in paragraph (2), each State shall 
     designate as distinguished schools those schools that have 
     made the greatest gains in closing the achievement gap as 
     described in subparagraph (B)(i) or exceeding adequate yearly 
     progress as described in subparagraph (B)(ii). Such 
     distinguished schools may serve as models for and provide 
     support to other schools, especially schools identified for 
     improvement under section 1116, to assist such schools in 
     meeting the State's academic content standards and student 
     academic achievement standards.
       ``(3) Awards to teachers.--A State program under paragraph 
     (1) may also recognize and provide financial awards to 
     teachers teaching in a school described in such paragraph 
     that consistently makes significant gains in academic 
     achievement in the areas in which the teacher provides 
     instruction, or to teachers or principals designated as 
     distinguished under subsection (a)(4)(A)(iii).
       ``(c) Funding.--
       ``(1) In general.--Each State--
       ``(A) shall use funds reserved under section 1003(a) and 
     may use funds made available under section 1003(g) for the 
     approaches described under subsection (a)(4)(A); and
       ``(B) shall use State administrative funds authorized under 
     section 1004(a) to establish the statewide system of support 
     described under subsection (a).
       ``(2) Reservations of funds by state.--
       ``(A) Awards program.--For the purpose of carrying out 
     subsection (b)(1), each State receiving a grant under this 
     part may reserve, from the amount (if any) by which the funds 
     received by the State under subpart 2 for a fiscal year 
     exceed the amount received by the State under that subpart 
     for the preceding fiscal year, not more than 5 percent of 
     such excess amount.
       ``(B) Teacher awards.--For the purpose of carrying out 
     subsection (b)(3), a State educational agency may reserve 
     such funds as necessary from funds made available under 
     section 2113.
       ``(3) Use within 3 years.--Notwithstanding any other 
     provision of law, the amount reserved under subparagraph (A) 
     by a State for each fiscal year shall remain available to the 
     State until expended for a period not exceeding 3 years 
     receipt of funds.
       ``(4) Special allocation rule for schools in high-poverty 
     areas.--
       ``(A) In general.--Each State shall distribute not less 
     than 75 percent of any amount reserved under paragraph (2)(A) 
     for each fiscal year to schools described in subparagraph 
     (B), or to teachers consistent with subsection (b)(3).
       ``(B) School described.--A school described in 
     subparagraph) (A) is a school whose student population is in 
     the highest quartile of schools statewide in terms of the 
     percentage of children from low income families.

     ``SEC. 1118. PARENTAL INVOLVEMENT.

       ``(a) Local Educational Agency Policy.--
       ``(1) In general.--A local educational agency may receive 
     funds under this part only if such agency implements 
     programs, activities, and procedures for the involvement of 
     parents in programs assisted under this part consistent with 
     this section. Such programs, activities, and procedures shall 
     be planned and implemented with meaningful consultation with 
     parents of participating children.
       ``(2) Written policy.--Each local educational agency that 
     receives funds under this part shall develop jointly with, 
     agree on with, and distribute to, parents of participating 
     children a written parent involvement policy. The policy 
     shall be incorporated into the local educational agency's 
     plan developed under section 1112, establish the agency's 
     expectations for parent involvement, and describe how the 
     agency will--
       ``(A) involve parents in the joint development of the plan 
     under section 1112, and the process of school review and 
     improvement under section 1116;
       ``(B) provide the coordination, technical assistance, and 
     other support necessary to assist participating schools in 
     planning and implementing effective parent involvement 
     activities to improve student academic achievement and school 
     performance;
       ``(C) build the schools' and parents' capacity for strong 
     parental involvement as described in subsection (e);
       ``(D) coordinate and integrate parental involvement 
     strategies under this part with parental involvement 
     strategies under other programs, such as the Head Start 
     program, Reading First program, Early Reading First program, 
     Even Start program, Parents as Teachers program, and Home 
     Instruction Program for Preschool Youngsters, and State-run 
     preschool programs;
       ``(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, including identifying 
     barriers to greater participation by parents in activities 
     authorized by this section (with particular attention to 
     parents who are economically disadvantaged, are disabled, 
     have limited English proficiency, have limited literacy, or 
     are of any racial or ethnic minority background), and use the 
     findings of such evaluation to design strategies for more 
     effective parental involvement, and to revise, if necessary, 
     the parental involvement policies described in this section; 
     and
       ``(F) involve parents in the activities of the schools 
     served under this part.
       ``(3) Reservation.--
       ``(A) In general.--Each local educational agency shall 
     reserve not less than 1 percent of such agency's allocation 
     under subpart 2 of this part to carry out this section, 
     including promoting family literacy and parenting skills, 
     except that this paragraph shall not apply if 1 percent of 
     such agency's allocation under subpart 2 of this part for the 
     fiscal year for which the determination is made is $5,000 or 
     less.
       ``(B) Parental input.--Parents of children receiving 
     services under this part shall be involved in the decisions 
     regarding how funds reserved under subparagraph (A) are 
     allotted for parental involvement activities.
       ``(C) Distribution of funds.--Not less than 95 percent of 
     the funds reserved under subparagraph (A) shall be 
     distributed to schools served under this part.
       ``(b) School Parental Involvement Policy.--
       ``(1) In general.--Each school served under this part shall 
     jointly develop with, and distribute to, parents of 
     participating children a written parental involvement policy, 
     agreed on by such parents, that shall describe the means for 
     carrying out the requirements of subsections (c) through (f). 
     Parents shall be notified of the policy in an understandable 
     and uniform format and, to the extent practicable, provided 
     in a language the parents can understand. Such policy shall 
     be made available to the local community and updated 
     periodically to meet the changing needs of parents and the 
     school.
       ``(2) Special rule.--If the school has a parental 
     involvement policy that applies to all parents, such school 
     may amend that policy, if necessary, to meet the requirements 
     of this subsection.
       ``(3) Amendment.--If the local educational agency involved 
     has a school district-level parental involvement policy that 
     applies to all parents, such agency may amend that policy, if 
     necessary, to meet the requirements of this subsection.
       ``(4) Parental comments.--If the plan under section 1112 is 
     not satisfactory to the parents of participating children, 
     the local educational agency shall submit any parent comments 
     with such plan when such local educational agency submits the 
     plan to the State.
       ``(c) Policy Involvement.--Each school served under this 
     part shall--
       ``(1) convene an annual meeting, at a convenient time, to 
     which all parents of participating children shall be invited 
     and encouraged to attend, to inform parents of their school's 
     participation under this part and to explain the requirements 
     of this part, and the right of the parents to be involved;
       ``(2) offer a flexible number of meetings, such as meetings 
     in the morning or evening, and may provide, with funds 
     provided under this part, transportation, child care, or home 
     visits, as such services relate to parental involvement;
       ``(3) involve parents, in an organized, ongoing, and timely 
     way, in the planning, review, and improvement of programs 
     under this part, including the planning, review, and 
     improvement of the school parental involvement policy and the 
     joint development of the schoolwide program plan under 
     section 1114(b)(2), except that if a school has in place a 
     process for involving parents in the joint planning and 
     design of the school's programs, the school may use that 
     process, if such process includes an adequate representation 
     of parents of participating children;
       ``(4) provide parents of participating children--
       ``(A) timely information about programs under this part;
       ``(B) a description and explanation of the curriculum in 
     use at the school, the forms of academic assessment used to 
     measure student progress, and the proficiency levels students 
     are expected to meet; and
       ``(C) if requested by parents, opportunities for regular 
     meetings to formulate suggestions and to participate, as 
     appropriate, in decisions relating to the education of their 
     children, and respond to any such suggestions as soon as 
     practicably possible; and
       ``(5) if the schoolwide program plan under section 
     1114(b)(2) is not satisfactory to the parents of 
     participating children, submit any parent comments on the 
     plan when the school makes the plan available to the local 
     educational agency.
       (d) Shared Responsibilities for High Student Academic 
     Achievement.--As a component of the school-level parental 
     involvement policy developed under subsection (b), each 
     school served under this part shall jointly develop with 
     parents for all children served under this part a school-
     parent compact that outlines how parents, the entire school 
     staff, and students will share the responsibility for 
     improved student academic achievement and the means by which 
     the school and parents will build and develop a partnership 
     to help children achieve the State's high standards. Such 
     compact shall--
       (1) describe the school's responsibility to provide high-
     quality curriculum and instruction in a supportive and 
     effective learning environment that enables the children 
     served under this part to meet the State's student academic 
     achievement standards, and the ways in which each parent will 
     be responsible for supporting their children's learning, such 
     as monitoring attendance, homework completion, and television 
     watching; volunteering in their child's classroom; and 
     participating, as appropriate, in decisions relating to the 
     education of their children and positive use of 
     extracurricular time; and

[[Page 25645]]

       (2) address the importance of communication between 
     teachers and parents on an ongoing basis through, at a 
     minimum--
       (A) parent-teacher conferences in elementary schools, at 
     least annually, during which the compact shall be discussed 
     as the compact relates to the individual child's achievement;
       (B) frequent reports to parents on their children's 
     progress; and
       (C) reasonable access to staff, opportunities to volunteer 
     and participate in their child's class, and observation of 
     classroom activities.
       ``(e) Building Capacity for Involvement.--To ensure 
     effective involvement of parents and to support a partnership 
     among the school involved, parents, and the community to 
     improve student academic achievement, each school and local 
     educational agency assisted under this part--
       ``(1) shall provide assistance to parents of children 
     served by the school or local educational agency, as 
     appropriate, in understanding such topics as the State's 
     academic content standards and State student academic 
     achievement standards, State and local academic assessments, 
     the requirements of this part, and how to monitor a child's 
     progress and work with educators to improve the achievement 
     of their children;
       ``(2) shall provide materials and training to help parents 
     to work with their children to improve their children's 
     achievement, such as literacy training and using technology, 
     as appropriate, to foster parental involvement;
       ``(3) shall educate teachers, pupil services personnel, 
     principals, and other staff, with the assistance of parents, 
     in the value and utility of contributions of parents, and in 
     how to reach out to, communicate with, and work with parents 
     as equal partners, implement and coordinate parent programs, 
     and build ties between parents and the school;
       ``(4) shall, to the extent feasible and appropriate, 
     coordinate and integrate parent involvement programs and 
     activities with Head Start, Reading First, Early Reading 
     First, Even Start, the Home Instruction Programs for 
     Preschool Youngsters, the Parents as Teachers Program, and 
     public preschool and other programs, and conduct other 
     activities, such as parent resource centers, that encourage 
     and support parents in more fully participating in the 
     education of their children;
       ``(5) shall ensure that information related to school and 
     parent programs, meetings, and other activities is sent to 
     the parents of participating children in a format and, to the 
     extent practicable, in a language the parents can understand;
       ``(6) may involve parents in the development of training 
     for teachers, principals, and other educators to improve the 
     effectiveness of such training;
       ``(7) may provide necessary literacy training from funds 
     received under this part if the local educational agency has 
     exhausted all other reasonably available sources of funding 
     for such training;
       ``(8) may pay reasonable and necessary expenses associated 
     with local parental involvement activities, including 
     transportation and child care costs, to enable parents to 
     participate in school-related meetings and training sessions;
       ``(9) may train parents to enhance the involvement of other 
     parents;
       ``(10) may arrange school meetings at a variety of times, 
     or conduct in-home conferences between teachers or other 
     educators, who work directly with participating children, 
     with parents who are unable to attend such conferences at 
     school, in order to maximize parental involvement and 
     participation;
       ``(11) may adopt and implement model approaches to 
     improving parental involvement;
       ``(12) may establish a districtwide parent advisory council 
     to provide advice on all matters related to parental 
     involvement in programs supported under this section;
       ``(13) may develop appropriate roles for community-based 
     organizations and businesses in parent involvement 
     activities; and
       ``(14) shall provide such other reasonable support for 
     parental involvement activities under this section as parents 
     may request.
       ``(f) Accessibility.--In carrying out the parental 
     involvement requirements of this part, local educational 
     agencies and schools, to the extent practicable, shall 
     provide full opportunities for the participation of parents 
     with limited English proficiency, parents with disabilities, 
     and parents of migratory children, including providing 
     information and school reports required under section 1111 in 
     a format and, to the extent practicable, in a language such 
     parents understand.
       ``(g) Information From Parental Information and Resource 
     Centers.--In a State where a parental information and 
     resource center is established to provide training, 
     information, and support to parents and individuals who work 
     with local parents, local educational agencies, and schools 
     receiving assistance under this part, each local educational 
     agency or school that receives assistance under this part and 
     is located in the State shall assist parents and parental 
     organizations by informing such parents and organizations of 
     the existence and purpose of such centers.
       ``(h) Review.--The State educational agency shall review 
     the local educational agency's parental involvement policies 
     and practices to determine if the policies and practices meet 
     the requirements of this section.

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

       ``(a) Teacher Qualifications and Measurable Objectives.--
       ``(1) In general.--Beginning with the first day of the 
     first school year after the date of enactment of the No Child 
     Left Behind Act of 2001, each local educational agency 
     receiving assistance under this part shall ensure that all 
     teachers hired after such day and teaching in a program 
     supported with funds under this part are highly qualified.
       ``(2) State plan.--As part of the plan described in section 
     1111, each State educational agency receiving assistance 
     under this part shall develop a plan to ensure that all 
     teachers teaching in core academic subjects within the State 
     are highly qualified not later than the end of the 2005-2006 
     school year. Such plan shall establish annual measurable 
     objectives for each local educational agency and school that, 
     at a minimum--
       ``(A) shall include an annual increase in the percentage of 
     highly qualified teachers at each local educational agency 
     and school, to ensure that all teachers teaching in core 
     academic subjects in each public elementary school and 
     secondary school are highly qualified not later than the end 
     of the 2005-2006 school year;
       ``(B) shall include an annual increase in the percentage of 
     teachers who are receiving high-quality professional 
     development to enable such teachers to become highly 
     qualified and successful classroom teachers; and
       ``(C) may include such other measures as the State 
     educational agency determines to be appropriate to increase 
     teacher qualifications.
       ``(3) Local plan.--As part of the plan described in section 
     1112, each local educational agency receiving assistance 
     under this part shall develop a plan to ensure that all 
     teachers teaching within the school district served by the 
     local educational agency are highly qualified not later than 
     the end of the 2005-2006 school year.
       ``(b) Reports.--
       ``(1) Annual state and local reports.--
       ``(A) Local reports.--Each State educational agency 
     described in subsection (a)(2) shall require each local 
     educational agency receiving funds under this part to 
     publicly report, each year, beginning with the 2002-2003 
     school year, the annual progress of the local educational 
     agency as a whole and of each of the schools served by the 
     agency, in meeting the measurable objectives described in 
     subsection (a)(2).
       ``(B) State reports.--Each State educational agency 
     receiving assistance under this part shall prepare and submit 
     each year, beginning with the 2002-2003 school year, a report 
     to the Secretary, describing the State educational agency's 
     progress in meeting the measurable objectives described in 
     subsection (a)(2).
       ``(C) Information from other reports.--A State educational 
     agency or local educational agency may submit information 
     from the reports described in section 1111(h) for the 
     purposes of this subsection, if such report is modified, as 
     may be necessary, to contain the information required by this 
     subsection, and may submit such information as a part of the 
     reports required under section 1111(h).
       ``(2) Annual reports by the secretary.--Each year, 
     beginning with the 2002-2003 school year, the Secretary shall 
     publicly report the annual progress of State educational 
     agencies, local educational agencies, and schools, in meeting 
     the measurable objectives described in subsection (a)(2).
       ``(c) New Paraprofessionals.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that all 
     paraprofessionals hired after the date of enactment of the No 
     Child Left Behind Act of 2001 and working in a program 
     supported with funds under this part shall have--
       ``(A) completed at least 2 years of study at an institution 
     of higher education;
       ``(B) obtained an associate's (or higher) degree; or
       ``(C) met a rigorous standard of quality and can 
     demonstrate, through a formal State or local academic 
     assessment--
       ``(i) knowledge of, and the ability to assist in 
     instructing, reading, writing, and mathematics; or
       ``(ii) knowledge of, and the ability to assist in 
     instructing, reading readiness, writing readiness, and 
     mathematics readiness, as appropriate.
       ``(2) Clarification.--The receipt of a secondary school 
     diploma (or its recognized equivalent) shall be necessary but 
     not sufficient to satisfy the requirements of paragraph 
     (1)(C).
       ``(d) Existing Paraprofessionals.--Each local educational 
     agency receiving assistance under this part shall ensure that 
     all paraprofessionals hired before the date of enactment of 
     the No Child Left Behind Act of 2001, and working in a 
     program supported with funds under this part shall, not later 
     than 4 years after the date of enactment satisfy the 
     requirements of subsection (b).
       ``(e) Exceptions for Translation and Parental Involvement 
     Activities.--Subsections (c) and (d) 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.
       ``(f) General Requirement for All Paraprofessionals.--Each 
     local educational agency

[[Page 25646]]

     receiving assistance under this part shall ensure that all 
     paraprofessionals working in a program supported with funds 
     under this part, regardless of the paraprofessionals' hiring 
     date, have earned a secondary school diploma or its 
     recognized equivalent.
       ``(g) Duties of Paraprofessionals.--
       ``(1) In general.--Each local educational agency receiving 
     assistance under this part shall ensure that a 
     paraprofessional working in a program supported with funds 
     under this part is not assigned a duty inconsistent with this 
     subsection.
       ``(2) Responsibilities paraprofessionals may be assigned.--
     A paraprofessional described in paragraph (1) may be 
     assigned--
       ``(A) to provide one-on-one tutoring for eligible students, 
     if the tutoring is scheduled at a time when a 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;
       ``(E) to provide support in a library or media center;
       ``(F) to act as a translator; or
       ``(G) to provide instructional services to students in 
     accordance with paragraph (3).
       ``(3) Additional limitations.--A paraprofessional described 
     in paragraph (1)--
       ``(A) may not provide any instructional service to a 
     student unless the paraprofessional is working under the 
     direct supervision of a teacher consistent with section 1119; 
     and
       ``(B) may assume limited duties that are assigned to 
     similar personnel who are not working in a program supported 
     with funds under this part, including duties beyond classroom 
     instruction or that do not benefit participating children, so 
     long as the amount of time spent on such duties is the same 
     proportion of total work time as prevails with respect to 
     similar personnel at the same school.
       ``(h) Use of Funds.--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.
       ``(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 school operating a program 
     under section 1114 or 1115 attest annually in writing as to 
     whether such school is in compliance with the requirements of 
     this section.
       ``(2) Availability of information.--Copies of attestations 
     under paragraph (1)--
       ``(A) shall be maintained at each 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 on request.
       ``(j) Combinations of Funds.--Funds provided under this 
     part that are used for professional development purposes may 
     be combined with funds provided under title II of this Act, 
     other Acts, and other sources.
       ``(k) Special Rule.--Except as provided in subsection (l), 
     no State educational agency shall require a school or a local 
     educational agency to expend a specific amount of funds for 
     professional development activities under this part, except 
     that this paragraph shall not apply with respect to 
     requirements under section 1116(c)(3).
       ``(l) Minimum Expenditures.--Each local educational agency 
     that receives funds under this part shall use not less than 5 
     percent, or more than 10 percent, of such funds for each of 
     fiscal years 2002 and 2003, and not less than 5 percent of 
     the funds for each subsequent fiscal year, for professional 
     development activities to ensure that teachers who are not 
     highly qualified become highly qualified not later than the 
     end of the 2005-2006 school year.

     ``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       ``(a) General Requirement.--
       ``(1) In general.--To the extent consistent with the number 
     of eligible children identified under section 1115(b) in the 
     school district served by a local educational agency who are 
     enrolled in private elementary schools and secondary schools, 
     a local educational agency shall, after timely and meaningful 
     consultation with appropriate private school officials, 
     provide such children, on an equitable basis, special 
     educational services or other benefits under this part (such 
     as dual enrollment, educational radio and television, 
     computer equipment and materials, other technology, and 
     mobile educational services and equipment) that address their 
     needs, and shall ensure that teachers and families of the 
     children participate, on an equitable basis, in services and 
     activities developed pursuant to sections 1118 and 1119.
       ``(2) Secular, neutral, nonideological.--Such educational 
     services or other benefits, including materials and 
     equipment, shall be secular, neutral, and nonideological.
       ``(3) Equity.--Educational services and other benefits for 
     such private school children shall be equitable in comparison 
     to services and other benefits for public school children 
     participating under this part, and shall be provided in a 
     timely manner.
       ``(4) Expenditures.--Expenditures for educational services 
     and other benefits to eligible private school children shall 
     be equal to the proportion of funds allocated to 
     participating school attendance areas based on the number of 
     children from low-income families who attend private schools, 
     which the local educational agency may determine each year or 
     every 2 years.
       ``(5) Provision of services.--The local educational agency 
     may provide services under this section directly or through 
     contracts with public and private agencies, organizations, 
     and institutions.
       ``(b) Consultation.--
       ``(1) In general.--To ensure timely and meaningful 
     consultation, a local educational agency shall consult with 
     appropriate private school officials during the design and 
     development of such agency's programs under this part, on 
     issues such as--
       ``(A) how the children's needs will be identified;
       ``(B) what services will be offered;
       ``(C) how, where, and by whom the services will be 
     provided;
       ``(D) how the services will be academically assessed and 
     how the results of that assessment will be used to improve 
     those services;
       ``(E) the size and scope of the equitable services to be 
     provided to the eligible private school children, and the 
     proportion of funds that is allocated under subsection (a)(4) 
     for such services;
       ``(F) the method or sources of data that are used under 
     subsection (c) and section 1113(c)(1) to determine the number 
     of children from low-income families in participating school 
     attendance areas who attend private schools;
       ``(G) how and when the agency will make decisions about the 
     delivery of services to such children, including a thorough 
     consideration and analysis of the views of the private school 
     officials on the provision of services through a contract 
     with potential third-party providers; and
       ``(H) how, if the agency disagrees with the views of the 
     private school officials on the provision of services through 
     a contract, the local educational agency will provide in 
     writing to such private school officials an analysis of the 
     reasons why the local educational agency has chosen not to 
     use a contractor.
       ``(2) Timing.--Such consultation shall include meetings of 
     agency and private school officials and shall occur before 
     the local educational agency makes any decision that affects 
     the opportunities of eligible private school children to 
     participate in programs under this part. Such meetings shall 
     continue throughout implementation and assessment of services 
     provided under this section.
       ``(3) Discussion.--Such consultation shall include a 
     discussion of service delivery mechanisms a local educational 
     agency can use to provide equitable services to eligible 
     private school children.
       ``(4) Documentation.--Each local educational agency shall 
     maintain in the agency's records and provide to the State 
     educational agency involved a written affirmation signed by 
     officials of each participating private school that the 
     consultation required by this section has occurred. If such 
     officials do not provide such affirmation within a reasonable 
     period of time, the local educational agency shall forward 
     the documentation that such consultation has taken place to 
     the State educational agency.
       ``(5) Compliance.--
       ``(A) In general.--A private school official shall have the 
     right to complain to the State educational agency that the 
     local educational agency did not engage in consultation that 
     was meaningful and timely, or did not give due consideration 
     to the views of the private school official.
       ``(B) Procedure.--If the private school official wishes to 
     complain, the official shall provide the basis of the 
     noncompliance with this section by the local educational 
     agency to the State educational agency, and the local 
     educational agency shall forward the appropriate 
     documentation to the State educational agency.
       ``(c) Allocation for Equitable Service to Private School 
     Students.--
       ``(1) Calculation.--A local educational agency shall have 
     the final authority, consistent with this section, to 
     calculate the number of children, ages 5 through 17, who are 
     from low-income families and attend private schools by--
       ``(A) using the same measure of low income used to count 
     public school children;
       ``(B) using the results of a survey that, to the extent 
     possible, protects the identity of families of private school 
     students, and allowing such survey results to be extrapolated 
     if complete actual data are unavailable;
       ``(C) applying the low-income percentage of each 
     participating public school attendance area, determined 
     pursuant to this section, to the number of private school 
     children who reside in that school attendance area; or
       ``(D) using an equated measure of low income correlated 
     with the measure of low income used to count public school 
     children.
       ``(2) Complaint process.--Any dispute regarding low-income 
     data for private school students shall be subject to the 
     complaint process authorized in section 9505.
       ``(d) Public Control of Funds.--
       ``(1) In general.--The control of funds provided under this 
     part, and title to materials, equipment, and property 
     purchased with such funds, shall be in a public agency, and a 
     public agency shall administer such funds materials, 
     equipment, and property.
       ``(2) Provision of services.--
       ``(A) Provider.--The provision of services under this 
     section shall be provided--
       ``(i) by employees of a public agency; or
       ``(ii) through contract by such public agency with an 
     individual, association, agency, or organization.

[[Page 25647]]

       ``(B) Requirement.--In the provision of such services, such 
     employee, individual, association, agency, or organization 
     shall be independent of such private school and of any 
     religious organization, and such employment or contract shall 
     be under the control and supervision of such public agency.
       ``(e) Standards for a Bypass.--If a local educational 
     agency is prohibited by law from providing for the 
     participation in programs on an equitable basis of eligible 
     children enrolled in private elementary schools and secondary 
     schools, or if the Secretary determines that a local 
     educational agency has substantially failed or is unwilling, 
     to provide for such participation, as required by this 
     section, the Secretary shall--
       ``(1) waive the requirements of this section for such local 
     educational agency;
       ``(2) arrange for the provision of services to such 
     children through arrangements that shall be subject to the 
     requirements of this section and sections 9503 and 9504; and
       ``(3) in making the determination under this subsection, 
     consider one or more factors, including the quality, size, 
     scope, and location of the program and the opportunity of 
     eligible children to participate.

     ``SEC. 1120A. FISCAL REQUIREMENTS.

       ``(a) Maintenance of Effort.--A local educational agency 
     may receive funds under this part for any fiscal year only if 
     the State educational agency involved finds that the local 
     educational agency has maintained the agency's fiscal effort 
     in accordance with section 9521.
       ``(b) Federal Funds To Supplement, Not Supplant, Non-
     Federal Funds.--
       ``(1) In general.--A State educational agency or local 
     educational agency shall use Federal funds received under 
     this part only to supplement the funds that would, in the 
     absence of such Federal funds, be made available from non-
     Federal sources for the education of pupils participating in 
     programs assisted under this part, and not to supplant such 
     funds.
       ``(2) Special rule.--No local educational agency shall be 
     required to provide services under this part through a 
     particular instructional method or in a particular 
     instructional setting in order to demonstrate such agency's 
     compliance with paragraph (1).
       ``(c) Comparability of Services.--
       ``(1) In general.--
       ``(A) Comparable services.--Except as provided in 
     paragraphs (4) and (5), a local educational agency may 
     receive funds under this part only if State and local funds 
     will be used in schools served under this part to provide 
     services that, taken as a whole, are at least comparable to 
     services in schools that are not receiving funds under this 
     part.
       ``(B) Substantially comparable services.--If the local 
     educational agency is serving all of such agency's schools 
     under this part, such agency may receive funds under this 
     part only if such agency will use State and local funds to 
     provide services that, taken as a whole, are substantially 
     comparable in each school.
       ``(C) Basis.--A local educational agency may meet the 
     requirements of subparagraphs (A) and (B) on a grade-span by 
     grade-span basis or a school-by-school basis.
       ``(2) Written assurance.--
       ``(A) Equivalence.--A local educational agency shall be 
     considered to have met the requirements of paragraph (1) if 
     such agency has filed with the State educational agency a 
     written assurance that such agency has established and 
     implemented--
       ``(i) a local educational agency-wide salary schedule;
       ``(ii) a policy to ensure equivalence among schools in 
     teachers, administrators, and other staff; and
       ``(iii) a policy to ensure equivalence among schools in the 
     provision of curriculum materials and instructional supplies.
       ``(B) Determinations.--For the purpose of this subsection, 
     in the determination of expenditures per pupil from State and 
     local funds, or instructional salaries per pupil from State 
     and local funds, staff salary differentials for years of 
     employment shall not be included in such determinations.
       ``(C) Exclusions.--A local educational agency need not 
     include unpredictable changes in student enrollment or 
     personnel assignments that occur after the beginning of a 
     school year in determining comparability of services under 
     this subsection.
       ``(3) Procedures and records.--Each local educational 
     agency assisted under this part shall--
       ``(A) develop procedures for compliance with this 
     subsection; and
       ``(B) maintain records that are updated biennially 
     documenting such agency's compliance with this subsection.
       ``(4) Inapplicability.--This subsection shall not apply to 
     a local educational agency that does not have more than one 
     building for each grade span.
       ``(5) Compliance.--For the purpose of determining 
     compliance with paragraph (1), a local educational agency may 
     exclude State and local funds expended for--
       ``(A) language instruction educational programs; and
       ``(B) the excess costs of providing services to children 
     with disabilities as determined by the local educational 
     agency.
         ``(d) Exclusion of Funds.--For the purpose of complying 
     with subsections (b) and (c), a State educational agency or 
     local educational agency may exclude supplemental State or 
     local funds expended in any school attendance area or school 
     for programs that meet the intent and purposes of this part.

     ``SEC. 1120B. COORDINATION REQUIREMENTS.

       ``(a) In General.--Each local educational agency receiving 
     assistance under this part shall carry out the activities 
     described in subsection (b) with Head Start agencies and, if 
     feasible, other entities carrying out early childhood 
     development programs such as the Early Reading First program.
       ``(b) Activities.--The activities referred to in subsection 
     (a) are activities that increase coordination between the 
     local educational agency and a Head Start agency and, if 
     feasible, other entities carrying out early childhood 
     development programs, such as the Early Reading First 
     program, serving children who will attend the schools of the 
     local educational agency, including--
       ``(1) developing and implementing a systematic procedure 
     for receiving records regarding such children, transferred 
     with parental consent from a Head Start program or, where 
     applicable, another early childhood development program such 
     as the Early Reading First program;
       ``(2) establishing channels of communication between school 
     staff and their counterparts (including teachers, social 
     workers, and health staff) in such Head Start agencies or 
     other entities carrying out early childhood development 
     programs such as the Early Reading First program, as 
     appropriate, to facilitate coordination of programs;
       ``(3) conducting meetings involving parents, kindergarten 
     or elementary school teachers, and Head Start teachers or, if 
     appropriate, teachers from other early childhood development 
     programs such as the Early Reading First program, to discuss 
     the developmental and other needs of individual children;
       ``(4) organizing and participating in joint transition-
     related training of school staff, Head Start program staff, 
     Early Reading First program staff, and, where appropriate, 
     other early childhood development program staff; and
       ``(5) linking the educational services provided by such 
     local educational agency with the services provided by local 
     Head Start agencies and entities carrying out Early Reading 
     First programs.
       ``(c) Coordination of Regulations.--The Secretary shall 
     work with the Secretary of Health and Human Services to 
     coordinate regulations promulgated under this part with 
     regulations promulgated under the Head Start Act.

                        ``Subpart 2--Allocations

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

       ``(a) Reservation of Funds.--From the amount appropriated 
     for payments to States for any fiscal year under section 
     1002(a) and 1125A(f), 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) Funds reserved.--From the amount made available for 
     any fiscal year under subsection (a), the Secretary shall 
     award grants to local educational agencies in the outlying 
     areas.
       ``(2) Competitive grants.--Until each appropriate outlying 
     area enters into an agreement for extension of United States 
     educational assistance under the Compact of Free Association 
     after the date of enactment of the No Child Left Behind Act 
     of 2001, the Secretary shall carry out the competition 
     described in paragraph (3), except that the amount reserved 
     to carry out such competition shall not exceed $5,000,000.
       ``(3) Limitation for competitive grants.--
       ``(A) Competitive grants.--The Secretary shall use funds 
     described in paragraph (2) to award grants to the outlying 
     areas and freely associated States to carry out the purposes 
     of this part.
       ``(B) Award basis.--The Secretary shall award grants under 
     subparagraph (A) on a competitive basis, taking into 
     consideration the recommendations of the Pacific Region 
     Educational Laboratory in Honolulu, Hawaii.
       ``(C) Uses.--Except as provided in subparagraph (D), grant 
     funds awarded under this paragraph may be used only--
       ``(i) for programs described in this Act, including teacher 
     training, curriculum development, instructional materials, or 
     general school improvement and reform; and
       ``(ii) to provide direct educational services that assist 
     all students with meeting challenging State academic content 
     standards.
       ``(D) Administrative costs.--The Secretary may provide not 
     more than 5 percent of the amount reserved for grants under 
     this paragraph to pay the administrative costs of the Pacific 
     Region Educational Laboratory under subparagraph (B).
       ``(4) Special rule.--The provisions of Public Law 95-134, 
     permitting the consolidation of grants by the outlying areas, 
     shall not apply to funds provided to the freely associated 
     States under this section.
       ``(c) Definitions.--For the purpose of subsections (a) and 
     (b)--
       ``(1) the term ``freely associated States'' means the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau; and
       ``(2) the term ``outlying area'' means the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(d) Allotment to the Secretary of the Interior.--

[[Page 25648]]

       ``(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 
     schools and secondary schools for Indian children operated or 
     supported by the Department of the Interior; and
       ``(B) out-of-State Indian children in elementary schools 
     and secondary schools in local educational agencies under 
     special contracts with the Department of the Interior.
       ``(2) Payments.--From the amount 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, on 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. 1122. ALLOCATIONS TO STATES.

       ``(a) Allocation Formula.--Of the amount appropriated under 
     section 1002(a) to carry out this part for each of fiscal 
     years 2002 through 2007 (referred to in this subsection as 
     the current fiscal year)--
       ``(1) an amount equal to the amount made available to carry 
     out section 1124 for fiscal year 2001 shall be allocated in 
     accordance with section 1124;
       ``(2) an amount equal to the amount made available to carry 
     out section 1124A for fiscal year 2001 shall be allocated in 
     accordance with section 1124A; and
       ``(3) an amount equal to 100 percent of the amount, if any, 
     by which the amount made available to carry out sections 
     1124, 1124A, and 1125 for the current fiscal year for which 
     the determination is made exceeds the amount available to 
     carry out sections 1124 and 1124A for fiscal year 2001 shall 
     be allocated in accordance with section 1125.
       ``(b) Adjustments Where Necessitated by Appropriations.--
       ``(1) In general.--If the sums available under this subpart 
     for any fiscal year are insufficient to pay the full amounts 
     that all local educational agencies in States are eligible to 
     receive under sections 1124, 1124A, and 1125 for such year, 
     the Secretary shall ratably reduce the allocations to such 
     local educational agencies, subject to subsections (c) and 
     (d) of this section.
       ``(2) 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) Amounts for sections 1124, 1124a, and 1125.--For each 
     fiscal year, the amount made available to each local 
     educational agency under each of sections 1124, 1124A, and 
     1125 shall be--
       ``(A) not less than 95 percent of the amount made available 
     for the preceding fiscal year if the number of children 
     counted for grants under section 1124 is not less than 30 
     percent of the total number of children aged 5 to 17 years, 
     inclusive, in the local educational agency;
       ``(B) not less than 90 percent of the amount made available 
     for the preceding fiscal year if the percentage described in 
     subparagraph (A) is between 15 percent and 30 percent; and
       ``(C) not less than 85 percent of the amount made available 
     for the preceding fiscal year if the percentage described in 
     subparagraph (A) is below 15 percent.
       ``(2) Payments.--If sufficient funds are appropriated, the 
     amounts described in paragraph (1) shall be paid to all local 
     educational agencies that received grants under section 1124A 
     for the preceding fiscal year, regardless of whether the 
     local educational agency meets the minimum eligibility 
     criteria for that fiscal year described in section 
     1124A(a)(1)(A) except that a local educational agency that 
     does not meet such minimum eligibility criteria for 4 
     consecutive years shall no longer be eligible to receive a 
     hold harmless amount referred to in paragraph (1).
       ``(3) Applicability.--Notwithstanding any other provision 
     of law, the Secretary shall not take into consideration the 
     hold-harmless provisions of this subsection for any fiscal 
     year for purposes of calculating State or local allocations 
     for the fiscal year under any program administered by the 
     Secretary other than a program authorized under this part.
       ``(4) Population data.--For any fiscal year for which the 
     Secretary calculates grants on the basis of population data 
     for counties, the Secretary shall apply the hold-harmless 
     percentages in paragraphs (1) and (2) to counties and, if the 
     Secretary's allocation for a county is not sufficient to meet 
     the hold-harmless requirements of this subsection for every 
     local educational agency within that county, the State 
     educational agency shall reallocate funds proportionately 
     from all other local educational agencies in the State that 
     are receiving funds in excess of the hold-harmless amounts 
     specified in this subsection.
       ``(d) Ratable Reductions.--
       ``(1) In general.--If the sums made available under this 
     subpart for any fiscal year are insufficient to pay the full 
     amounts that local educational agencies in 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, 1125, and 1125A, the term ``State'' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

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

       ``(a) Amount of Grants.--
       ``(1) Grants for local educational agencies and puerto 
     rico.--Except as provided in paragraph (4) and in section 
     1126, the grant that a local educational agency is eligible 
     to receive under this section for a fiscal year is the amount 
     determined by multiplying--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     subparagraph shall not be less than 32 percent, 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 grants under this section on the 
     basis of the number of children counted under subsection (c) 
     for local educational agencies, unless the Secretary and the 
     Secretary of Commerce determine that some or all of those 
     data are unreliable or that their use would be otherwise 
     inappropriate, in which case--
       ``(i) the 2 Secretaries shall publicly disclose the reasons 
     for their determination in detail; and
       ``(ii) paragraph (3) shall apply.
       ``(B) Allocations to large and small local educational 
     agencies.--
       ``(i) For any fiscal year to which this paragraph applies, 
     the Secretary shall calculate grants under this section for 
     each local educational agency.
       ``(ii) The amount of a grant under this section for each 
     large local educational agency shall be the amount determined 
     under clause (i).
       ``(iii) For small local educational agencies, the State 
     educational agency may either--

       ``(I) distribute grants under this section in amounts 
     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 those small agencies.

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

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

       ``(3) Allocations to counties.--
       ``(A) Calculation.--For any fiscal year to which this 
     paragraph applies, the Secretary shall calculate grants under 
     this section on the basis of the number of children counted 
     under subsection (c) for counties, and State educational 
     agencies shall suballocate county amounts to local 
     educational agencies, in accordance with regulations issued 
     by the Secretary.
       ``(B) Direct allocations.--In any State in which a large 
     number of local educational agencies overlap county 
     boundaries, or for which the State believes it has data that 
     would better target funds than allocating them by county, the 
     State educational agency may apply to the Secretary for 
     authority to make the allocations under this subpart for a 
     particular fiscal year directly to local educational agencies 
     without regard to counties.
       ``(C) Allocations to local educational agencies.--If the 
     Secretary approves the State educational agency's application 
     under subparagraph (B), the State educational agency shall 
     provide the Secretary an assurance that such allocations 
     shall be made--
       ``(i) using precisely the same factors for determining a 
     grant as are used under this subpart; or
       ``(ii) using data that the State educational agency submits 
     to the Secretary for approval that more accurately target 
     poverty.
       ``(D) Appeal.--The State educational agency shall provide 
     the Secretary an assurance that it will establish a procedure 
     through which a local educational agency that is dissatisfied 
     with its determinations under subparagraph (B) may appeal 
     directly to the Secretary for a final determination.
       ``(4) Puerto rico.--
       ``(A) In general.--For each fiscal year, the grant that the 
     Commonwealth of Puerto Rico shall be eligible to receive 
     under this section

[[Page 25649]]

     shall be the amount determined by multiplying the number of 
     children counted under subsection (c) for the Commonwealth of 
     Puerto Rico by the product of--
       ``(i) subject to subparagraph (B), the percentage that the 
     average per-pupil expenditure in the Commonwealth of Puerto 
     Rico is of the lowest average per-pupil expenditure of any of 
     the 50 States; and
       ``(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 2002, 77.5 percent;
       ``(ii) for fiscal year 2003, 80.0 percent;
       ``(iii) for fiscal year 2004, 82.5 percent;
       ``(iv) for fiscal year 2005, 85.0 percent;
       ``(v) for fiscal year 2006, 92.5 percent; and
       ``(vi) for fiscal year 2007 and succeeding fiscal years, 
     100.0 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 subpart than it received 
     under this subpart for the preceding fiscal year, the 
     percentage in subparagraph (A) shall be the greater of--
       ``(i) the percentage in subparagraph (A)(i);
       ``(ii) the percentage specified in subparagraph (B) for the 
     preceding fiscal year; or
       ``(iii) the percentage used for the preceding fiscal year.
       ``(b) Minimum Number of Children to Qualify.--A local 
     educational agency is eligible for a basic grant under this 
     section for any fiscal year only if the number of children 
     counted under subsection (c) for that agency is both--
       ``(1) 10 or more; and
       ``(2) 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 aged 5 to 17, inclusive, in 
     the school district of the local educational agency from 
     families below the poverty level as determined under 
     paragraph (2);
       ``(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) aged 5 to 17, inclusive, in the school 
     district of such agency in institutions for neglected and 
     delinquent children (other than such institutions operated by 
     the United States), 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; and
       ``(C) the number of children aged 5 to 17, inclusive, in 
     the school district of such agency from families above the 
     poverty level as determined under paragraph (4).
       ``(2) Determination of number of children.--For the 
     purposes of this section, the Secretary shall determine the 
     number of children aged 5 to 17, inclusive, from families 
     below the poverty level on the basis of the most recent 
     satisfactory data, described in paragraph (3), available from 
     the Department of Commerce. The District of Columbia and the 
     Commonwealth of Puerto Rico shall be treated as individual 
     local educational agencies. If a local educational agency 
     contains 2 or more counties in their entirety, then each 
     county 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 a local educational agency, which local 
     educational agency shall distribute to schools in each county 
     within such agency a share of the local educational agency's 
     total grant that is no less than the county's share of the 
     population counts used to calculate the local educational 
     agency's grant.
       ``(3) Population updates.--
       ``(A) In general.--In fiscal year 2002 and each subsequent 
     fiscal year, the Secretary shall use updated data on the 
     number of children, aged 5 to 17, inclusive, from families 
     below the poverty level for counties or local educational 
     agencies, published by the Department of Commerce, unless the 
     Secretary and the Secretary of Commerce determine that the 
     use of the updated population data would be inappropriate or 
     unreliable. If appropriate and reliable data are not 
     available annually, the Secretary shall use data which are 
     updated every 2 years.
       ``(B) 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 Secretary and the Secretary of Commerce shall 
     publicly disclose their reasons.
       ``(C) Criteria of poverty.--In determining the families 
     that are below the poverty level, the Secretary shall use the 
     criteria of poverty used by the Bureau of the Census in 
     compiling the most recent decennial census, as the criteria 
     have been updated by increases in the Consumer Price Index 
     for All Urban Consumers, published by the Bureau of Labor 
     Statistics.
       ``(4) Other children to be counted.--
       ``(A) For the purpose of this section, the Secretary shall 
     determine the number of children aged 5 to 17, inclusive, 
     from families above the poverty level on the basis of the 
     number of such children from families receiving an annual 
     income, in excess of the current criteria of poverty, from 
     payments under a State program funded under part A of title 
     IV of the Social Security Act; and in making such 
     determinations, the Secretary shall use the criteria of 
     poverty used by the Bureau of the Census in compiling the 
     most recent decennial census for a family of 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) The Secretary shall determine the number of such 
     children and the number of children aged 5 through 17 living 
     in institutions for neglected or delinquent children, or 
     being supported in foster homes with public funds, on the 
     basis of the caseload data for the month of October of the 
     preceding fiscal year (using, in the case of children 
     described in the preceding sentence, the criteria of poverty 
     and the form of such criteria required by such sentence which 
     were determined for the calendar year preceding such month of 
     October) or, to the extent that such data are not available 
     to the Secretary before January of the calendar year in which 
     the Secretary's determination is made, then on the basis of 
     the most recent reliable data available to the Secretary at 
     the time of such determination.
       ``(C) Except for the data on children living in 
     institutions for neglected or delinquent children, 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.
       ``(D) For the purpose of this section, the Secretary shall 
     consider all children who are in correctional institutions to 
     be living in institutions for delinquent children.
       ``(5) Estimate.--When requested by the Secretary, the 
     Secretary of Commerce shall make a special updated estimate 
     of the number of children of such ages who are from families 
     below the poverty level (as determined under paragraph 
     (1)(A)) in each school district, and the Secretary is 
     authorized to pay (either in advance or by way of 
     reimbursement) the Secretary of Commerce the cost of making 
     this special estimate. The Secretary of Commerce shall give 
     consideration to any request of the chief executive of a 
     State for the collection of additional census information.
       ``(d) State Minimum.--Notwithstanding section 1122, the 
     aggregate amount allotted for all local educational agencies 
     within a State may not be less than the lesser of--
       ``(1) 0.25 percent of the total amount allocated to States 
     under this section for fiscal year 2001, plus 0.35 percent of 
     the total amount allocated to States under this section in 
     excess of the amount allocated for fiscal year 2001; or
       ``(2) the average of--
       ``(A) the amount calculated in paragraph (1), above; 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. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL 
                   AGENCIES.

       ``(a) Eligibility for and Amount of Grants.--
       ``(1) In general.--(A) Except as otherwise provided in this 
     paragraph, each local educational agency which is eligible 
     for a grant under section 1124 for any fiscal year is 
     eligible for an additional grant under this section for that 
     fiscal year if the number of children counted under section 
     1124(c) in the agency exceeds either--
       ``(i) 6,500; or
       ``(ii) 15 percent of the total number of children aged 5 
     through 17 in the agency.
       ``(B) Notwithstanding section 1122, no State shall receive 
     less than the lesser of--
       ``(i) 0.25 percent of the total amount allocated to States 
     under this section for fiscal year 2001, plus 0.35 percent of 
     the total amount allocated to States under this section in 
     excess of the amount allocated for fiscal year 2001; or
       ``(ii) the average of--
       ``(I) the amount calculated under clause (i); 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) Determination.--For each county or local educational 
     agency eligible to receive an additional grant under this 
     section for any fiscal year, the Secretary shall determine 
     the product of--
       ``(A) the number of children counted under section 1124(c) 
     for that fiscal year; and
       ``(B) the amount in section 1124(a)(1)(B) for each State 
     except the Commonwealth of Puerto Rico, and the amount in 
     section 1124(a)(4) for the Commonwealth of Puerto Rico.
       ``(3) Amount.--The amount of the additional grant for which 
     an eligible local educational agency or county is eligible 
     under this section for any fiscal year shall be an amount 
     which bears the same ratio to the amount available to carry 
     out this section for that fiscal year as the product 
     determined under paragraph (2) for such local educational 
     agency for that fiscal year bears to the sum of such products 
     for all local educational agencies in the United States for 
     that fiscal year.
       ``(4) Local allocations.--(A) Grant amounts under this 
     section shall be determined in accordance with section 
     1124(a)(2), (3) and (4).
       ``(B) For any fiscal year for which the Secretary allocates 
     funds under this section on the basis of counties, a State 
     may reserve not more than 2 percent of its allocation under 
     this section to make grants to local educational agencies 
     that meet the criteria of paragraph (1)(A)(i)

[[Page 25650]]

     or (ii) and are in ineligible counties that do not meet these 
     criteria.
       ``(b) Small States.--In any State for which on the date of 
     enactment of the No Child Left Behind Act of 2001 the number 
     of children counted under Section 1124(c) is less than 0.25 
     percent of the number of those children counted for all 
     States, the State educational agency shall allocate funds 
     under this section among the local educational agencies in 
     the 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. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Eligibility of Local Educational Agencies.--
       ``(1) In general.--A local educational agency in a State is 
     eligible to receive a targeted grant under this section for 
     any fiscal year if--
       ``(A) the number of children in the local educational 
     agency counted under section 1124(c), before application of 
     the weighted child count described in subsection (c), is at 
     least 10; and
       ``(B) if the number of children counted for grants under 
     section 1124(c), before application of the weighted child 
     count described in subsection (c), is at least 5 percent of 
     the total number of children aged 5 to 17 years, inclusive, 
     in the school district of the local educational agency.
       ``(2) Special rule.--For any fiscal year for which the 
     Secretary allocates funds under this section on the basis of 
     counties, funds made available as a result of applying this 
     subsection shall be reallocated by the State educational 
     agency to other eligible local educational agencies in the 
     State in proportion to the distribution of other funds under 
     this section.
       ``(b) Grants for Local Educational Agencies, the District 
     of Columbia, and the Commonwealth of Puerto Rico.--
       ``(1) In general.--The amount of the grant that a local 
     educational agency in a State (other than the Commonwealth of 
     Puerto Rico) is eligible to receive under this section for 
     any fiscal year shall be the product of--
       ``(A) the weighted child count determined under subsection 
     (c); and
       ``(B) the amount determined under section 1124(a)(1)(B).
       ``(2) Puerto rico.--For each fiscal year, the amount of the 
     grant the Commonwealth of Puerto Rico is eligible to receive 
     under this section shall be equal to the number of children 
     counted under subsection (c) for the Commonwealth of Puerto 
     Rico, multiplied by the amount determined in section 
     1124(a)(4) for the Commonwealth of Puerto Rico.
       ``(c) Weighted Child Count.--
       ``(1) Weights for allocations to counties.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under subparagraphs (B) and (C).
       ``(B) By percentage of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) for that county who constitute not more than 15.00 
     percent, inclusive, of the county's total population aged 5 
     to 17, inclusive, multiplied by 1.0;
       ``(ii) the number of such children who constitute more than 
     15.00 percent, but not more than 19.00 percent, of such 
     population, multiplied by 1.75;
       ``(iii) the number of such children who constitute more 
     than 19.00 percent, but not more than 24.20 percent, of such 
     population, multiplied by 2.5;
       ``(iv) the number of such children who constitute more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 3.25; and
       ``(v) the number of such children who constitute more than 
     29.20 percent of such population, multiplied by 4.0.
       ``(C) By number of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) who constitute not more than 2,311, inclusive, of the 
     county's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(ii) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 1.5;
       ``(iii) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 2.0;
       ``(iv) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 2.5; and
       ``(v) the number of such children in excess of 93,811 in 
     such population, multiplied by 3.0.
       ``(D) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighting factor for the Commonwealth of Puerto Rico under 
     this paragraph shall not be greater than the total number of 
     children counted under section 1124(c) multiplied by 1.82.
       ``(2) Weights for allocations to local educational 
     agencies.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under subparagraphs (B) and (C).
       ``(B) By percentage of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) for that local educational agency who constitute not 
     more than 15.58 percent, inclusive, of the agency's total 
     population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(ii) the number of such children who constitute more than 
     15.58 percent, but not more than 22.11 percent, of such 
     population, multiplied by 1.75;
       ``(iii) the number of such children who constitute more 
     than 22.11 percent, but not more than 30.16 percent, of such 
     population, multiplied by 2.5;
       ``(iv) the number of such children who constitute more than 
     30.16 percent, but not more than 38.24 percent, of such 
     population, multiplied by 3.25; and
       ``(v) the number of such children who constitute more than 
     38.24 percent of such population, multiplied by 4.0.
       ``(C) By number of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) who constitute not more than 691, inclusive, of the 
     agency's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(ii) the number of such children between 692 and 2,262, 
     inclusive, in such population, multiplied by 1.5;
       ``(iii) the number of such children between 2,263 and 
     7,851, inclusive, in such population, multiplied by 2.0;
       ``(iv) the number of such children between 7,852 and 
     35,514, inclusive, in such population, multiplied by 2.5; and
       ``(v) the number of such children in excess of 35,514 in 
     such population, multiplied by 3.0.
       ``(D) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighting factor for the Commonwealth of Puerto Rico under 
     this paragraph shall not be greater than the total number of 
     children counted under section 1124(c) multiplied by 1.82.
       ``(d) Calculation of Grant Amounts.--Grant amounts under 
     this section shall be calculated in the same manner as grant 
     amounts are calculated under section 1124(a) (2) and (3).
       ``(e) State Minimum.--Notwithstanding any other provision 
     of this section or section 1122, from the total amount 
     available for any fiscal year to carry out this section, each 
     State shall be allotted at least the lesser of--
       ``(1) 0.35 percent of the total amount available to carry 
     out this section; or
       ``(2) the average of--
       ``(A) 0.35 percent of the total amount available 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. 1125AA. ADEQUACY OF FUNDING OF TARGETED GRANTS TO 
                   LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS 
                   AFTER FISCAL YEAR 2001.

       ``(a) Findings.--Congress makes the following findings:
       ``(1) The current Basic Grant Formula for the distribution 
     of funds under this part often does not provide funds for the 
     economically disadvantaged students for which such funds are 
     targeted.
       ``(2) Any school district in which more than 2 percent of 
     the students live below the poverty level qualifies for 
     funding under the Basic Grant Formula. As a result, 9 out of 
     every 10 school districts in the country receive some form of 
     aid under the Formula.
       ``(3) 58 percent of all schools receive at least some 
     funding under this part, including many suburban schools with 
     predominantly well-off students.
       ``(4) 1 out of every 5 schools with concentrations of poor 
     students between 50 and 75 percent receive no funding at all 
     under this part.
       ``(5) In passing the Improving America's Schools Act in 
     1994, Congress declared that grants under this part would 
     more sharply target high poverty schools by using the 
     Targeted Grant Formula, but annual appropriation Acts have 
     prevented the use of that Formula.
       ``(6) The advantage of the Targeted Grant Formula over 
     other funding formulas under this part is that the Targeted 
     Grant Formula provides increased grants per poor child as the 
     percentage of economically disadvantaged children in a school 
     district increases.
       ``(7) Studies have found that the poverty of a child's 
     family is much more likely to be associated with educational 
     disadvantage if the family lives in an area with large 
     concentrations of poor families.
       ``(8) States with large populations of high poverty 
     students would receive significantly more funding if more 
     funds under this part were allocated through the Targeted 
     Grant Formula.
       ``(9) Congress has an obligation to allocate funds under 
     this part so that such funds will positively affect the 
     largest number of economically disadvantaged students.
       ``(b) Limitation on Allocation of Title I Funds Contingent 
     on Adequate Funding of Targeted Grants.--Pursuant to section 
     1122, the total amount allocated in any fiscal year after 
     fiscal year 2001 for programs and activities under this part 
     shall not exceed the amount allocated in fiscal year 2001 for 
     such programs and activities unless the amount available for

[[Page 25651]]

     targeted grants to local educational agencies under section 
     1125 in the applicable fiscal year meets the requirements of 
     section 1122(a).

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

       ``(a) Grants.--From funds appropriated under subsection (f) 
     the Secretary is authorized to make grants to States, from 
     allotments under subsection (b), to carry out the programs 
     and activities of this part.
       ``(b) Distribution Based Upon Fiscal Effort and Equity.--
       ``(1) In general.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     funds appropriated pursuant to subsection (f) shall be 
     allotted to each State based upon the number of children 
     counted under section 1124(c) in such State multiplied by the 
     product of--
       ``(i) the amount in section 1124(a)(1)(B) for all States 
     other than the Commonwealth of Puerto Rico, except that the 
     amount determined under that subparagraph shall not be less 
     that 34 percent or more than 46 percent of the average per 
     pupil expenditure in the United States, and the amount in 
     section 1124(a)(4) for the Commonwealth of Puerto Rico, 
     except that the amount in section 1124(a)(4)(A)(ii) shall be 
     34 percent of the average per pupil expenditure in the United 
     States; multiplied by
       ``(ii) such State's effort factor described in paragraph 
     (2); multiplied by
       ``(iii) 1.30 minus such State's equity factor described in 
     paragraph (3).
       ``(B) State minimum.--Notwithstanding any other provision 
     of this section or section 1122, from the total amount 
     available for any fiscal year to carry out this section, each 
     State shall be allotted at least the lesser of--
       ``(i) 0.35 percent of total appropriations; or
       ``(ii) the average of--

       ``(I) 0.35 percent of the total amount available to carry 
     out this section; and
       ``(II) 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.

       ``(2) Effort factor.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the effort factor for a State shall be determined in 
     accordance with the succeeding sentence, except that such 
     factor shall not be less than 0.95 nor greater than 1.05. The 
     effort factor determined under this sentence shall be a 
     fraction the numerator of which is the product of the 3-year 
     average per-pupil expenditure in the State multiplied by the 
     3-year average per capita income in the United States and the 
     denominator of which is the product of the 3-year average per 
     capita income in such State multiplied by the 3-year average 
     per-pupil expenditure in the United States.
       ``(B) Commonwealth of puerto rico.--The effort factor for 
     the Commonwealth of Puerto Rico shall be equal to the lowest 
     effort factor calculated under subparagraph (A) for any 
     State.
       ``(3) Equity factor.--
       ``(A) Determination.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     the Secretary shall determine the equity factor under this 
     section for each State in accordance with clause (ii).
       ``(ii) Computation.--

       ``(I) In general.--For each State, the Secretary shall 
     compute a weighted coefficient of variation for the per-pupil 
     expenditures of local educational agencies in accordance with 
     subclauses (II), (III), and (IV).
       ``(II) Variation.--In computing coefficients of variation, 
     the Secretary shall weigh the variation between per-pupil 
     expenditures in each local educational agency and the average 
     per-pupil expenditures in the State according to the number 
     of pupils served by the local educational agency.

       ``(III) Number of pupils.--In determining the number of 
     pupils under this paragraph served by each local educational 
     agency and in each State, the Secretary shall multiply the 
     number of children counted under section 1124(c) by a factor 
     of 1.4.
       ``(IV) Enrollment requirement.--In computing coefficients 
     of variation, the Secretary shall include only those local 
     educational agencies with an enrollment of more than 200 
     students.

       ``(B) Special rule.--The equity factor for a State that 
     meets the disparity standard described in section 222.162 of 
     title 34, Code of Federal Regulations (as such section was in 
     effect on the day preceding the date of enactment of the No 
     Child Left Behind Act of 2001) or a State with only 1 local 
     educational agency shall be not greater than 0.10.
       ``(c) Use of Funds; Eligibility of Local Educational 
     Agencies.--All funds awarded to each State under this section 
     shall be allocated to local educational agencies under the 
     following provisions. Within local educational agencies, 
     funds allocated under this section shall be distributed to 
     schools on a basis consistent with section 1113, and may only 
     be used to carry out activities under this part. A local 
     educational agency in a State is eligible to receive a 
     targeted grant under this section for any fiscal year if--
       ``(A) the number of children in the local educational 
     agency counted under section 1124(c), before application of 
     the weighted child count described in paragraph (3), is at 
     least 10; and
       ``(B) if the number of children counted for grants under 
     section 1124(c), before application of the weighted child 
     count described in paragraph (3), is at least 5 percent of 
     the total number of children aged 5 to 17 years, inclusive, 
     in the school district of the local educational agency.
       ``For any fiscal year for which the Secretary allocates 
     funds under this section on the basis of counties, funds made 
     available as a result of applying this subsection shall be 
     reallocated by the State educational agency to other eligible 
     local educational agencies in the State in proportion to the 
     distribution of other funds under this section.
       ``(d) Allocation of Funds to Eligible Local Educational 
     Agencies.--Funds received by States under this section shall 
     be allocated within States to eligible local educational 
     agencies on the basis of weighted child counts calculated in 
     accordance with paragraph (1), (2), or (3), as appropriate 
     for each State.
       ``(1) States with an equity factor less than .10.--In 
     States with an equity factor less than .10, the weighted 
     child counts referred to in subsection (d) shall be 
     calculated as follows:
       ``(A) Weights for allocations to counties.--
       ``(i) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause ``(i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that county who constitute not more than 15.00 
     percent, inclusive, of the county's total population aged 5 
     to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.00 percent, but not more than 19.00 percent, of such 
     population, multiplied by 1.75;
       ``(III) the number of such children who constitute more 
     than 19.00 percent, but not more than 24.20 percent, of such 
     population, multiplied by 2.5;
       ``(IV) the number of such children who constitute more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 3.25; and
       ``(V) the number of such children who constitute more than 
     29.20 percent of such population, multiplied by 4.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 2,311, inclusive, of the 
     county's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 2.0;
       ``(IV) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 2.5; and
       ``(V) the number of such children in excess of 93,811 in 
     such population, multiplied by 3.0.

       ``(B) Weights for allocations to local educational 
     agencies.--
       ``(i) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that local educational agency who constitute not 
     more than 15.58 percent, inclusive, of the agency's total 
     population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.58 percent, but not more than 22.11 percent, of such 
     population, multiplied by 1.75;
       ``(III) the number of such children who constitute more 
     than 22.11 percent, but not more than 30.16 percent, of such 
     population, multiplied by 2.5;
       ``(IV) the number of such children who constitute more than 
     30.16 percent, but not more than 38.24 percent, of such 
     population, multiplied by 3.25; and
       ``(V) the number of such children who constitute more than 
     38.24 percent of such population, multiplied by 4.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 691, inclusive, of the 
     agency's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 692 and 2,262, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 2,263 and 
     7,851, inclusive, in such population, multiplied by 2.0;
       ``(IV) the number of such children between 7,852 and 
     35,514, inclusive, in such population, multiplied by 2.5; and
       ``(V) the number of such children in excess of 35,514 in 
     such population, multiplied by 3.0.

       ``(2) States with an equity factor greater than or equal to 
     .10 and less than .20.--In States with an equity factor 
     greater than or equal to .10 and less than .20,the weighted 
     child counts referred to in subsection (d) shall be 
     calculated as follows:
       ``(A) Weights for allocations to counties.--

[[Page 25652]]

       ``(i) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that county who constitute not more than 15.00 
     percent, inclusive, of the county's total population aged 5 
     to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.00 percent, but not more than 19.00 percent, of such 
     population, multiplied by 1.5;
       ``(III) the number of such children who constitute more 
     than 19.00 percent, but not more than 24.20 percent, of such 
     population, multiplied by 3.0;
       ``(IV) the number of such children who constitute more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 4.5; and
       ``(V) the number of such children who constitute more than 
     29.20 percent of such population, multiplied by 6.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 2,311, inclusive, of the 
     county's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 2.25;
       ``(IV) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 3.375; 
     and
       ``(V) the number of such children in excess of 93,811 in 
     such population, multiplied by 4.5.

       ``(B) Weights for allocations to local educational 
     agencies.--
       ``(i) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that local educational agency who constitute not 
     more than 15.58 percent, inclusive, of the agency's total 
     population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.58 percent, but not more than 22.11 percent, of such 
     population, multiplied by 1.5;
       ``(III) the number of such children who constitute more 
     than 22.11 percent, but not more than 30.16 percent, of such 
     population, multiplied by 3.0;
       ``(IV) the number of such children who constitute more than 
     30.16 percent, but not more than 38.24 percent, of such 
     population, multiplied by 4.5; and
       ``(V) the number of such children who constitute more than 
     38.24 percent of such population, multiplied by 6.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 691, inclusive, of the 
     agency's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 692 and 2,262, 
     inclusive, in such population, multiplied by 1.5;
       ``(III) the number of such children between 2,263 and 
     7,851, inclusive, in such population, multiplied by 2.25;
       ``(IV) the number of such children between 7,852 and 
     35,514, inclusive, in such population, multiplied by 3.375; 
     and
       ``(V) the number of such children in excess of 35,514 in 
     such population, multiplied by 4.5.

       ``(3) States with an equity factor greater than or equal to 
     .20.--In States with an equity factor greater than or equal 
     to .20, the weighted child counts referred to in subsection 
     (d) shall be calculated as follows:
       ``(A) Weights for allocations to counties.--
       ``(i) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that county who constitute not more than 15.00 
     percent, inclusive, of the county's total population aged 5 
     to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.00 percent, but not more than 19.00 percent, of such 
     population, multiplied by 2.0;
       ``(III) the number of such children who constitute more 
     than 19.00 percent, but not more than 24.20 percent, of such 
     population, multiplied by 4.0;
       ``(IV) the number of such children who constitute more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 6.0; and
       ``(V) the number of such children who constitute more than 
     29.20 percent of such population, multiplied by 8.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 2,311, inclusive, of the 
     county's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 2.0;
       ``(III) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 3.0;
       ``(IV) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 4.5; and
       ``(V) the number of such children in excess of 93,811 in 
     such population, multiplied by 6.0.

       ``(B) Weights for allocations to local educational 
     agencies.--
       ``(i) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under clauses (ii) and (iii).
       ``(ii) By percentage of children.--The amount referred to 
     in clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) for that local educational agency who constitute not 
     more than 15.58 percent, inclusive, of the agency's total 
     population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(II) the number of such children who constitute more than 
     15.58 percent, but not more than 22.11 percent, of such 
     population, multiplied by 2.0;
       ``(III) the number of such children who constitute more 
     than 22.11 percent, but not more than 30.16 percent, of such 
     population, multiplied by 4.0;
       ``(IV) the number of such children who constitute more than 
     30.16 percent, but not more than 38.24 percent, of such 
     population, multiplied by 6.0; and
       ``(V) the number of such children who constitute more than 
     38.24 percent of such population, multiplied by 8.0.

       ``(iii) By number of children.--The amount referred to in 
     clause (i) is determined by adding--

       ``(I) the number of children determined under section 
     1124(c) who constitute not more than 691, inclusive, of the 
     agency's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(II) the number of such children between 692 and 2,262, 
     inclusive, in such population, multiplied by 2.0;
       ``(III) the number of such children between 2,263 and 
     7,851, inclusive, in such population, multiplied by 3.0;
       ``(IV) the number of such children between 7,852 and 
     35,514, inclusive, in such population, multiplied by 4.5; and

       ``(V) the number of such children in excess of 35,514 in 
     such population, multiplied by 6.0.

       ``(e) Maintenance of Effort.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State is entitled to receive its full allotment of funds 
     under this section for any fiscal year if the Secretary finds 
     that either the combined fiscal effort per student or the 
     aggregate expenditures within the State with respect to the 
     provision of free public education for the fiscal year 
     preceding the fiscal year for which the determination is made 
     was not less than 90 percent of such combined fiscal effort 
     or aggregate expenditures for the second fiscal year 
     preceding the fiscal year for which the determination is 
     made.
       ``(2) Reduction of funds.--The Secretary shall reduce the 
     amount of funds awarded to any State under this section in 
     any fiscal year in the exact proportion to which the State 
     fails to meet the requirements of paragraph (1) by falling 
     below 90 percent of both the fiscal effort per student and 
     aggregate expenditures (using the measure most favorable to 
     the State), and no such lesser amount shall be used for 
     computing the effort required under paragraph (1) for 
     subsequent years.
       ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
     only, the requirements of this subsection if the Secretary 
     determines that such a waiver would be equitable due to 
     exceptional or uncontrollable circumstances such as a natural 
     disaster or a precipitous and unforeseen decline in the 
     financial resources of the State.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2002 and for each of 
     the 5 succeeding fiscal years.
       ``(g) Adjustments Where Necessitated by Appropriations.--
       ``(1) In general.--If the sums available under this section 
     for any fiscal year are insufficient to pay the full amounts 
     that all local educational agencies in States are eligible to 
     receive under this section for such year, the Secretary shall 
     ratably reduce the allocations to such local educational 
     agencies, subject to paragraphs (2) and (3).
       ``(2) Additional funds.--If additional funds become 
     available for making payments under this section for such 
     fiscal year, allocations that were reduced under paragraph 
     (1) shall be increased on the same basis as they were 
     reduced.
       ``(3) Hold-harmless amounts.--For each fiscal year, if 
     sufficient funds are available, the amount made available to 
     each local educational agency under this section shall be

[[Page 25653]]

       ``(A) not less than 95 percent of the amount made available 
     for the preceding fiscal year if the number of children 
     counted for grants under section 1124 is not less than 30 
     percent of the total number of children aged 5 to 17 years, 
     inclusive, in the local educational agency;
       ``(B) not less than 90 percent of the amount made available 
     for the preceding fiscal year if the percentage described in 
     subparagraph (A) is between 15 percent and 30 percent; and
       ``(C) not less than 85 percent of the amount made available 
     for the preceding fiscal year if the percentage described in 
     subparagraph (A) is below 15 percent.
       ``(4) Applicability.--Notwithstanding any other provision 
     of law, the Secretary shall not take into consideration the 
     hold-harmless provisions of this subsection for any fiscal 
     year for purposes of calculating State or local allocations 
     for the fiscal year under any program administered by the 
     Secretary other than a program authorized under this part.

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

     ``SEC. 1127. CARRYOVER AND WAIVER.

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

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

     ``SEC. 1201. PURPOSES.

       ``The purposes of this subpart are as follows:
       ``(1) To provide assistance to State educational agencies 
     and local educational agencies in establishing reading 
     programs for students in kindergarten through grade 3 that 
     are based on scientifically based reading research, to ensure 
     that every student can read at grade level or above not later 
     than the end of grade 3.
       ``(2) To provide assistance to State educational agencies 
     and local educational agencies in preparing teachers, 
     including special education teachers, through professional 
     development and other support, so the teachers can identify 
     specific reading barriers facing their students and so the 
     teachers have the tools to effectively help their students 
     learn to read.
       ``(3) To provide assistance to State educational agencies 
     and local educational agencies in selecting or administering 
     screening, diagnostic, and classroom-based instructional 
     reading assessments.
       ``(4) To provide assistance to State educational agencies 
     and local educational agencies in selecting or developing 
     effective instructional materials (including classroom-based 
     materials to assist teachers in implementing the essential 
     components of reading instruction), programs, learning 
     systems, and strategies to implement methods that have been 
     proven to prevent or remediate reading failure within a 
     State.
       ``(5) To strengthen coordination among schools, early 
     literacy programs, and family literacy programs to improve 
     reading achievement for all children.

     ``SEC. 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.

       ``(a) In General.--
       ``(1) Authorization to make grants.--In the case of each 
     State educational agency that in accordance with section 1203 
     submits to the Secretary an application for a 6-year period, 
     the Secretary, from amounts appropriated under section 
     1002(b)(1) and subject to the application's approval, shall 
     make a grant to the State educational agency for the uses 
     specified in subsections (c) and (d). For each fiscal year, 
     the funds provided under the grant shall equal the allotment 
     determined for the State educational agency under subsection 
     (b).
       ``(2) Duration of grants.--Subject to subsection (e)(3), a 
     grant under this section shall be awarded for a period of not 
     more than 6 years.
       ``(b) Determination of Amount of Allotments.--
       ``(1) Reservations from appropriations.--From the total 
     amount made available to carry out this subpart for a fiscal 
     year, the Secretary--
       ``(A) shall reserve \1/2\ of 1 percent for allotments for 
     the United States Virgin Islands, Guam, American Samoa, and 
     the Commonwealth of the Northern Mariana Islands, to be 
     distributed among these outlying areas on the basis of their 
     relative need, as determined by the Secretary in accordance 
     with the purposes of this subpart;
       ``(B) shall reserve \1/2\ of 1 percent for the Secretary of 
     the Interior for programs under this subpart in schools 
     operated or funded by the Bureau of Indian Affairs;
       ``(C) may reserve not more than 2\1/2\ percent or 
     $25,000,000, whichever is less, to carry out section 1205 
     (relating to external evaluation) and section 1206 (relating 
     to national activities);
       ``(D) shall reserve $5,000,000 to carry out sections 1207 
     and 1224 (relating to information dissemination); and
       ``(E) for any fiscal year, beginning with fiscal year 2004, 
     for which the amount appropriated to carry out this subpart 
     exceeds the amount appropriated for fiscal year 2003, shall 
     reserve, to carry out section 1204, the lesser of--
       ``(i) $90,000,000; or
       ``(ii) 10 percent of such excess amount.
       ``(2) State allotments.--In accordance with paragraph (3), 
     the Secretary shall allot among each of the States the total 
     amount made available to carry out this subpart for any 
     fiscal year and not reserved under paragraph (1).
       ``(3) Determination of state allotment amounts.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall allot the amount made available under 
     paragraph (2) for a fiscal year among the States in 
     proportion to the number of children, aged 5 to 17, who 
     reside within the State and are from families with incomes 
     below the poverty line for the most recent fiscal year for 
     which satisfactory data are available, compared to the number 
     of such individuals who reside in all such States for that 
     fiscal year.
       ``(B) Exceptions.--
       ``(i) Minimum grant amount.--Subject to clause (ii), no 
     State receiving an allotment under subparagraph (A) may 
     receive less than \1/4\ of 1 percent of the total amount 
     allotted under such subparagraph.
       ``(ii) Puerto rico.--The percentage of the amount allotted 
     under subparagraph (A) that is allotted to the Commonwealth 
     of Puerto Rico for a fiscal year may not exceed the 
     percentage that was received by the Commonwealth of Puerto 
     Rico of the funds allocated to all States under subpart 2 of 
     part A for the preceding fiscal year.
       ``(4) Distribution of subgrants.--The Secretary may make a 
     grant to a State educational agency only if the State 
     educational agency agrees to expend at least 80 percent of 
     the amount of the funds provided under the grant for the 
     purpose of making, in accordance with subsection (c), 
     competitive subgrants to eligible local educational agencies.
       ``(5) Reallotment.--If a State educational agency described 
     in paragraph (2) does not apply for an allotment under this 
     section for any fiscal year, or if the State educational 
     agency's application is not approved, the Secretary shall 
     reallot such amount to the remaining State educational 
     agencies in accordance with paragraph (3).
       ``(6) Definition of state.--For purposes of this 
     subsection, the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(c) Subgrants to Local Educational Agencies.--
       ``(1) Authorization to make subgrants.--In accordance with 
     paragraph (2), a State educational agency that receives a 
     grant under this section shall make competitive subgrants to 
     eligible local educational agencies.
       ``(2) Allocation.--
       ``(A) Minimum subgrant amount.--In making subgrants under 
     paragraph (1), a State educational agency shall allocate to 
     each eligible local educational agency that receives such a 
     subgrant, at a minimum, an amount that bears the same 
     relation to the funds made available under subsection (b)(4) 
     as the amount the eligible local educational agency received 
     under part A for the preceding fiscal year bears to the 
     amount all the local educational agencies in the State 
     received under part A for the preceding fiscal year.
       ``(B) Priority.--In making subgrants under paragraph (1), a 
     State educational agency shall give priority to eligible 
     local educational agencies in which at least--

[[Page 25654]]

       ``(i) 15 percent of the children served by the eligible 
     local educational agency are from families with incomes below 
     the poverty line; or
       ``(ii) 6,500 children served by the eligible local 
     educational agency are from families with incomes below the 
     poverty line.
       ``(3) Notice.--A State educational agency receiving a grant 
     under this section shall provide notice to all eligible local 
     educational agencies in the State of the availability of 
     competitive subgrants under this subsection and of the 
     requirements for applying for the subgrants.
       ``(4) Local application.--To be eligible to receive a 
     subgrant under this subsection, an eligible local educational 
     agency shall submit an application to the State educational 
     agency at such time, in such manner, and containing such 
     information as the State educational agency may reasonably 
     require.
       ``(5) State requirement.--In distributing subgrant funds to 
     eligible local educational agencies under this subsection, a 
     State educational agency shall--
       ``(A) provide funds in sufficient size and scope to enable 
     the eligible local educational agencies to improve reading 
     instruction; and
       ``(B) provide the funds in amounts related to the number or 
     percentage of students in kindergarten through grade 3 who 
     are reading below grade level.
       ``(6) Limitation to certain schools.--In distributing 
     subgrant funds under this subsection, an eligible local 
     educational agency shall provide funds only to schools that 
     both--
       ``(A) are among the schools served by that eligible local 
     educational agency with the highest percentages or numbers of 
     students in kindergarten through grade 3 reading below grade 
     level, based on the most currently available data; and
       ``(B)(i) are identified for school improvement under 
     section 1116(b); or
       ``(ii) have the highest percentages or numbers of children 
     counted under section 1124(c).
       ``(7) Local uses of funds.--
       ``(A) Required uses.--Subject to paragraph (8), an eligible 
     local educational agency that receives a subgrant under this 
     subsection shall use the funds provided under the subgrant to 
     carry out the following activities:
       ``(i) Selecting and administering screening, diagnostic, 
     and classroom-based instructional reading assessments.
       ``(ii) Selecting and implementing a learning system or 
     program of reading instruction based on scientifically based 
     reading research that--

       ``(I) includes the essential components of reading 
     instruction; and
       ``(II) provides such instruction to the children in 
     kindergarten through grade 3 in the schools served by the 
     eligible local educational agency, including children who--

       ``(aa) may have reading difficulties;
       ``(bb) are at risk of being referred to special education 
     based on these difficulties;
       ``(cc) have been evaluated under section 614 of the 
     Individuals with Disabilities Education Act but, in 
     accordance with section 614(b)(5) of that Act, have not been 
     identified as being a child with a disability (as defined in 
     section 602 of that Act);
       ``(dd) are being served under such Act primarily due to 
     being identified as being a child with a specific learning 
     disability (as defined in section 602 of that Act) related to 
     reading;
       ``(ee) are deficient in the essential components of reading 
     skills, as listed in subparagraphs (A) through (E) of section 
     1208(3); or
       ``(ff) are identified as having limited English 
     proficiency.
       ``(iii) Procuring and implementing instructional materials, 
     including education technology such as software and other 
     digital curricula, that are based on scientifically based 
     reading research.
       ``(iv) Providing professional development for teachers of 
     kindergarten through grade 3, and special education teachers 
     of kindergarten through grade 12, that--

       ``(I) will prepare these teachers in all of the essential 
     components of reading instruction;
       ``(II) shall include--

       ``(aa) information on instructional materials, programs, 
     strategies, and approaches based on scientifically based 
     reading research, including early intervention, classroom 
     reading materials, and remedial programs and approaches; and
       ``(bb) instruction in the use of screening, diagnostic, and 
     classroom-based instructional reading assessments and other 
     procedures that effectively identify students who may be at 
     risk for reading failure or who are having difficulty 
     reading;

       ``(III) shall be provided by eligible professional 
     development providers; and
       ``(IV) will assist teachers in becoming fully qualified in 
     reading instruction in accordance with the requirements of 
     section 1119.

       ``(v) Collecting and summarizing data--

       ``(I) to document the effectiveness of activities carried 
     out under this subpart in individual schools and in the local 
     educational agency as a whole; and
       ``(II) to stimulate and accelerate improvement by 
     identifying the schools that produce significant gains in 
     reading achievement.

       ``(vi) Reporting data for all students and categories of 
     students described in section 1111(b)(2)(C)(v)(II).
       ``(vii) Promoting reading and library programs that provide 
     access to engaging reading material, including coordination 
     with programs funded through grants received under subpart 4, 
     where applicable.
       ``(B) Additional uses.--Subject to paragraph (8), an 
     eligible local educational agency that receives a subgrant 
     under this subsection may use the funds provided under the 
     subgrant to carry out the following activities:
       ``(i) Humanities-based family literacy programs (which may 
     be referred to as ``Prime Time Family Reading Time'') that 
     bond families around the acts of reading and using public 
     libraries.
       ``(ii) Providing training in the essential components of 
     reading instruction to a parent or other individual who 
     volunteers to be a student's reading tutor, to enable such 
     parent or individual to support instructional practices that 
     are based on scientifically based reading research and are 
     being used by the student's teacher.
       ``(iii) Assisting parents, through the use of materials and 
     reading programs, strategies, and approaches (including 
     family literacy services) that are based on scientifically 
     based reading research, to encourage reading and support 
     their child's reading development.
       ``(8) Local planning and administration.--An eligible local 
     educational agency that receives a subgrant under this 
     subsection may use not more than 3.5 percent of the funds 
     provided under the subgrant for planning and administration.
       ``(d) State Uses of Funds.--
       ``(1) In general.--A State educational agency that receives 
     a grant under this section may expend not more than a total 
     of 20 percent of the grant funds to carry out the activities 
     described in paragraphs (3), (4), and (5).
       ``(2) Priority.--A State educational agency shall give 
     priority to carrying out the activities described in 
     paragraphs (3), (4), and (5) for schools described in 
     subsection (c)(6).
       ``(3) Professional inservice and preservice development and 
     review.--A State educational agency may expend not more than 
     65 percent of the amount of the funds made available under 
     paragraph (1)--
       ``(A) to develop and implement a program of professional 
     development for teachers, including special education 
     teachers, of kindergarten through grade 3 that--
       ``(i) will prepare these teachers in all the essential 
     components of reading instruction;
       ``(ii) shall include--

       ``(I) information on instructional materials, programs, 
     strategies, and approaches based on scientifically based 
     reading research, including early intervention and reading 
     remediation materials, programs, and approaches; and
       ``(II) instruction in the use of screening, diagnostic, and 
     classroom-based instructional reading assessments and other 
     scientifically based procedures that effectively identify 
     students who may be at risk for reading failure or who are 
     having difficulty reading; and

       ``(iii) shall be provided by eligible professional 
     development providers;
       ``(B) to strengthen and enhance preservice courses for 
     students preparing, at all public institutions of higher 
     education in the State, to teach kindergarten through grade 3 
     by--
       ``(i) reviewing such courses to determine whether the 
     courses' content is consistent with the findings of the most 
     current scientifically based reading research, including 
     findings on the essential components of reading instruction;
       ``(ii) following up such reviews with recommendations to 
     ensure that such institutions offer courses that meet the 
     highest standards; and
       ``(iii) preparing a report on the results of such reviews, 
     submitting the report to the reading and literacy partnership 
     for the State established under section 1203(d), and making 
     the report available for public review by means of the 
     Internet; and
       ``(C) to make recommendations on how the State licensure 
     and certification standards in the area of reading might be 
     improved.
       ``(4) Technical assistance for local educational agencies 
     and schools.--A State educational agency may expend not more 
     than 25 percent of the amount of the funds made available 
     under paragraph (1) for 1 or more of the following:
       ``(A) Assisting local educational agencies in accomplishing 
     the tasks required to design and implement a program under 
     this subpart, including--
       ``(i) selecting and implementing a program or programs of 
     reading instruction based on scientifically based reading 
     research;
       ``(ii) selecting screening, diagnostic, and classroom-based 
     instructional reading assessments; and
       ``(iii) identifying eligible professional development 
     providers to help prepare reading teachers to teach students 
     using the programs and assessments described in clauses (i) 
     and (ii).
       ``(B) Providing expanded opportunities to students in 
     kindergarten through grade 3 who are served by eligible local 
     educational agencies for receiving reading assistance from 
     alternative providers that includes--
       ``(i) screening, diagnostic, and classroom-based 
     instructional reading assessments; and
       ``(ii) as need is indicated by the assessments under clause 
     (i), instruction based on scientifically based reading 
     research that includes the essential components of reading 
     instruction.
       ``(5) Planning, administration, and reporting.--
       ``(A) Expenditure of funds.--A State educational agency may 
     expend not more than 10 percent of the amount of funds made 
     available under paragraph (1) for the activities described in 
     this paragraph.
       ``(B) Planning and administration.--A State educational 
     agency that receives a grant under this section may expend 
     funds made available under subparagraph (A) for planning and 
     administration relating to the State uses of funds

[[Page 25655]]

     authorized under this subpart, including the following:
       ``(i) Administering the distribution of competitive 
     subgrants to eligible local educational agencies under 
     subsection (c) and section 1204(d).
       ``(ii) Assessing and evaluating, on a regular basis, 
     eligible local educational agency activities assisted under 
     this subpart, with respect to whether they have been 
     effective in increasing the number of children in grades 1, 
     2, and 3 served under this subpart who can read at or above 
     grade level.
       ``(C) Annual reporting.--
       ``(i) In general.--A State educational agency that receives 
     a grant under this section shall expend funds made available 
     under subparagraph (A) to provide the Secretary annually with 
     a report on the implementation of this subpart.
       ``(ii) Information included.--Each report under this 
     subparagraph shall include information on the following:

       ``(I) Evidence that the State educational agency is 
     fulfilling its obligations under this subpart.
       ``(II) Specific identification of those schools and local 
     educational agencies that report the largest gains in reading 
     achievement.
       ``(III) The progress the State educational agency and local 
     educational agencies within the State are making in reducing 
     the number of students served under this subpart in grades 1, 
     2, and 3 who are reading below grade level, as demonstrated 
     by such information as teacher reports and school evaluations 
     of mastery of the essential components of reading 
     instruction.
       ``(IV) Evidence on whether the State educational agency and 
     local educational agencies within the State have 
     significantly increased the number of students reading at 
     grade level or above, significantly increased the percentages 
     of students described in section 1111(b)(2)(C)(v)(II) who are 
     reading at grade level or above, and successfully implemented 
     this subpart.

       ``(iii) Privacy protection.--Data in the report shall be 
     reported in a manner that protects the privacy of 
     individuals.
       ``(iv) Contract.--To the extent practicable, a State 
     educational agency shall enter into a contract with an entity 
     that conducts scientifically based reading research, under 
     which contract the entity will assist the State educational 
     agency in producing the reports required to be submitted 
     under this subparagraph.
       ``(e) Review.--
       ``(1) Progress report.--
       ``(A) Submission.--Not later than 60 days after the 
     termination of the third year of the grant period, each State 
     educational agency receiving a grant under this section shall 
     submit a progress report to the Secretary.
       ``(B) Information included.--The progress report shall 
     include information on the progress the State educational 
     agency and local educational agencies within the State are 
     making in reducing the number of students served under this 
     subpart in grades 1, 2, and 3 who are reading below grade 
     level (as demonstrated by such information as teacher reports 
     and school evaluations of mastery of the essential components 
     of reading instruction). The report shall also include 
     evidence from the State educational agency and local 
     educational agencies within the State that the State 
     educational agency and the local educational agencies have 
     significantly increased the number of students reading at 
     grade level or above, significantly increased the percentages 
     of students described in section 1111(b)(2)(C)(v)(II) who are 
     reading at grade level or above, and successfully implemented 
     this subpart.
       ``(2) Peer review.--The progress report described in 
     paragraph (1) shall be reviewed by the peer review panel 
     convened under section 1203(c)(2).
       ``(3) Consequences of insufficient progress.--After 
     submission of the progress report described in paragraph (1), 
     if the Secretary determines that the State educational agency 
     is not making significant progress in meeting the purposes of 
     this subpart, the Secretary may withhold from the State 
     educational agency, in whole or in part, further payments 
     under this section in accordance with section 455 of the 
     General Education Provisions Act or take such other action 
     authorized by law as the Secretary determines necessary, 
     including providing technical assistance upon request of the 
     State educational agency.
       ``(f) Funds not used for state level activities.--Any 
     portion of funds described in subsection (d)(1) that a State 
     educational agency does not expend in accordance with 
     subsection (d)(1) shall be expended for the purpose of making 
     subgrants in accordance with subsection (c).

     ``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

       ``(a) Applications.--
       ``(1) In general.--A State educational agency that desires 
     to receive a grant under section 1202 shall submit an 
     application to the Secretary at such time and in such form as 
     the Secretary may require. The application shall contain the 
     information described in subsection (b).
       ``(2) Special application provisions.--For those State 
     educational agencies that have received a grant under part C 
     of title II (as such part was in effect on the day before the 
     date of enactment of the No Child Left Behind Act of 2001), 
     the Secretary shall establish a modified set of requirements 
     for an application under this section that takes into account 
     the information already submitted and approved under that 
     program and minimizes the duplication of effort on the part 
     of such State educational agencies.
       ``(b) Contents.--An application under this section shall 
     contain the following:
       ``(1) An assurance that the Governor of the State, in 
     consultation with the State educational agency, has 
     established a reading and literacy partnership described in 
     subsection (d), and a description of how such partnership--
       ``(A) coordinated the development of the application; and
       ``(B) will assist in the oversight and evaluation of the 
     State educational agency's activities under this subpart.
       ``(2) A description, if applicable, of the State's strategy 
     to expand, continue, or modify activities authorized under 
     part C of title II (as such part was in effect on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001).
       ``(3) An assurance that the State educational agency, and 
     any local educational agencies receiving a subgrant from that 
     State educational agency under section 1202, will, if 
     requested, participate in the external evaluation under 
     section 1205.
       ``(4) A State educational agency plan containing a 
     description of the following:
       ``(A) How the State educational agency will assist local 
     educational agencies in identifying screening, diagnostic, 
     and classroom-based instructional reading assessments.
       ``(B) How the State educational agency will assist local 
     educational agencies in identifying instructional materials, 
     programs, strategies, and approaches, based on scientifically 
     based reading research, including early intervention and 
     reading remediation materials, programs, and approaches.
       ``(C) How the State educational agency will ensure that 
     professional development activities related to reading 
     instruction and provided under section 1202 are--
       ``(i) coordinated with other Federal, State, and local 
     level funds, and used effectively to improve instructional 
     practices for reading; and
       ``(ii) based on scientifically based reading research.
       ``(D) How the activities assisted under section 1202 will 
     address the needs of teachers and other instructional staff 
     in implementing the essential components of reading 
     instruction.
       ``(E) How subgrants made by the State educational agency 
     under section 1202 will meet the requirements of section 
     1202, including how the State educational agency will ensure 
     that eligible local educational agencies receiving subgrants 
     under section 1202 will use practices based on scientifically 
     based reading research.
       ``(F) How the State educational agency will, to the extent 
     practicable, make grants to eligible local educational 
     agencies in both rural and urban areas.
       ``(G) How the State educational agency will build on, and 
     promote coordination among literacy programs in the State 
     (including federally funded programs such as programs under 
     the Adult Education and Family Literacy Act, the Individuals 
     with Disabilities Education Act, and subpart 2), to increase 
     the effectiveness of the programs in improving reading for 
     adults and children and to avoid duplication of the efforts 
     of the program.
       ``(H) How the State educational agency will assess and 
     evaluate, on a regular basis, eligible local educational 
     agency activities assisted under section 1202, with respect 
     to whether the activities have been effective in achieving 
     the purposes of section 1202.
       ``(I) Any other information that the Secretary may 
     reasonably require.
       ``(c) Approval of Applications.--
       ``(1) In general.--The Secretary shall approve an 
     application of a State educational agency under this section 
     only if such application meets the requirements of this 
     section.
       ``(2) Peer review.--
       ``(A) In general.--The Secretary, in consultation with the 
     National Institute for Literacy, shall convene a panel to 
     evaluate applications under this section. At a minimum, the 
     panel shall include--
       ``(i) 3 individuals selected by the Secretary;
       ``(ii) 3 individuals selected by the National Institute for 
     Literacy;
       ``(iii) 3 individuals selected by the National Research 
     Council of the National Academy of Sciences; and
       ``(iv) 3 individuals selected by the National Institute of 
     Child Health and Human Development.
       ``(B) Experts.--The panel shall include--
       ``(i) experts who are competent, by virtue of their 
     training, expertise, or experience, to evaluate applications 
     under this section;
       ``(ii) experts who provide professional development to 
     individuals who teach reading to children and adults based on 
     scientifically based reading research;
       ``(iii) experts who provide professional development to 
     other instructional staff based on scientifically based 
     reading research; and
       ``(iv) an individual who has expertise in screening, 
     diagnostic, and classroom-based instructional reading 
     assessments.
       ``(C) Recommendations.--The panel shall recommend grant 
     applications from State educational agencies under this 
     section to the Secretary for funding or for disapproval.
       ``(d) Reading and Literacy Partnerships.--
       ``(1) In general.--For a State educational agency to 
     receive a grant under section 1202, the Governor of the 
     State, in consultation with the State educational agency, 
     shall establish a reading and literacy partnership.
       ``(2) Required participants.--The reading and literacy 
     partnership shall include the following participants:
       ``(A) The Governor of the State.
       ``(B) The chief State school officer.
       ``(C) The chairman and the ranking member of each committee 
     of the State legislature that is responsible for education 
     policy.

[[Page 25656]]

       ``(D) A representative, selected jointly by the Governor 
     and the chief State school officer, of at least 1 eligible 
     local educational agency.
       ``(E) A representative, selected jointly by the Governor 
     and the chief State school officer, of a community-based 
     organization working with children to improve their reading 
     skills, particularly a community-based organization using 
     tutors and scientifically based reading research.
       ``(F) State directors of appropriate Federal or State 
     programs with a strong reading component, selected jointly by 
     the Governor and the chief State school officer.
       ``(G) A parent of a public or private school student or a 
     parent who educates the parent's child in the parent's home, 
     selected jointly by the Governor and the chief State school 
     officer.
       ``(H) A teacher, who may be a special education teacher, 
     who successfully teaches reading, and another instructional 
     staff member, selected jointly by the Governor and the chief 
     State school officer.
       ``(I) A family literacy service provider selected jointly 
     by the Governor and the chief State school officer.
       ``(3) Optional participants.--The reading and literacy 
     partnership may include additional participants, who shall be 
     selected jointly by the Governor and the chief State school 
     officer, and who may include a representative of--
       ``(A) an institution of higher education operating a 
     program of teacher preparation in the State that is based on 
     scientifically based reading research;
       ``(B) a local educational agency;
       ``(C) a private nonprofit or for-profit eligible 
     professional development provider providing instruction based 
     on scientifically based reading research;
       ``(D) an adult education provider;
       ``(E) a volunteer organization that is involved in reading 
     programs; or
       ``(F) a school library or a public library that offers 
     reading or literacy programs for children or families.
       ``(4) Preexisting partnership.--If, before the date of 
     enactment of the No Child Left Behind Act of 2001, a State 
     educational agency established a consortium, partnership, or 
     any other similar body that was considered a reading and 
     literacy partnership for purposes of part C of title II of 
     this Act (as such part was in effect on the day before the 
     date of enactment of No Child Left Behind Act of 2001), that 
     consortium, partnership, or body may be considered a reading 
     and literacy partnership for purposes of this subsection 
     consistent with the provisions of this subpart.

     ``SEC. 1204. TARGETED ASSISTANCE GRANTS.

       ``(a) Eligibility Criteria for Awarding Targeted Assistance 
     Grants to States.--Beginning with fiscal year 2004, from 
     funds appropriated under section 1202(b)(1)(E), the Secretary 
     shall make grants, on a competitive basis, to those State 
     educational agencies that--
       ``(1) for each of 2 consecutive years, demonstrate that an 
     increasing percentage of third graders in each of the groups 
     described in section 1111(b)(2)(C)(v)(II) in the schools 
     served by the local educational agencies receiving funds 
     under section 1202 are reaching the proficient level in 
     reading; and
       ``(2) for each of the same such consecutive 2 years, 
     demonstrate that schools receiving funds under section 1202 
     are improving the reading skills of students in grades 1, 2, 
     and 3 based on screening, diagnostic, and classroom-based 
     instructional reading assessments.
       ``(b) Continuation of Performance Awards.--For any State 
     educational agency that receives a competitive grant under 
     this section, the Secretary shall make an award for each of 
     the succeeding years that the State educational agency 
     demonstrates it is continuing to meet the criteria described 
     in subsection (a).
       ``(c) Distribution of Targeted Assistance Grants.--
       ``(1) In general.--The Secretary shall make a grant to each 
     State educational agency with an application approved under 
     this section in an amount that bears the same relation to the 
     amount made available to carry out this section for a fiscal 
     year as the number of children counted under section 1124(c) 
     for the State bears to the number of such children so counted 
     for all States with applications approved for that year.
       ``(2) Peer review.--The peer review panel convened under 
     section 1203(c)(2) shall review the applications submitted 
     under this subsection. The panel shall recommend such 
     applications to the Secretary for funding or for disapproval.
       ``(3) Application contents.--A 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 accompanied by such information as the Secretary 
     may require. Each such application shall include the 
     following:
       ``(A) Evidence that the State educational agency has 
     carried out its obligations under section 1203.
       ``(B) Evidence that the State educational agency has met 
     the criteria described in subsection (a).
       ``(C) The amount of funds requested by the State 
     educational agency and a description of the criteria the 
     State educational agency intends to use in distributing 
     subgrants to eligible local educational agencies under this 
     section to continue or expand activities under subsection 
     (d)(5).
       ``(D) Evidence that the State educational agency has 
     increased significantly the percentage of students reading at 
     grade level or above.
       ``(E) Any additional evidence that demonstrates success in 
     the implementation of this section.
       ``(d) Subgrants to Eligible Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State educational agency under this section only if the State 
     educational agency agrees to expend 100 percent of the amount 
     of the funds provided under the grant for the purpose of 
     making competitive subgrants in accordance with this 
     subsection to eligible local educational agencies.
       ``(2) Notice.--A State educational agency receiving a grant 
     under this section shall provide notice to all local 
     educational agencies in the State of the availability of 
     competitive subgrants under this subsection and of the 
     requirements for applying for the subgrants.
       ``(3) Application.--To be eligible to receive a subgrant 
     under this subsection, an eligible local educational agency 
     shall submit an application to the State educational agency 
     at such time, in such manner, and containing such information 
     as the State educational agency may reasonably require.
       ``(4) Distribution.--
       ``(A) In general.--A State educational agency shall 
     distribute subgrants under this section through a competitive 
     process based on relative need of eligible local educational 
     agencies and the evidence described in this paragraph.
       ``(B) Evidence used in all years.--For all fiscal years, a 
     State educational agency shall distribute subgrants under 
     this section based on evidence that an eligible local 
     educational agency--
       ``(i) satisfies the requirements of section 1202(c)(4);
       ``(ii) will carry out its obligations under this subpart;
       ``(iii) will work with other local educational agencies in 
     the State that have not received a subgrant under this 
     subsection to assist such nonreceiving agencies in increasing 
     the reading achievement of students; and
       ``(iv) is meeting the criteria described in subsection (a).
       ``(5) Local uses of funds.--An eligible local educational 
     agency that receives a subgrant under this subsection--
       ``(A) shall use the funds provided under the subgrant to 
     carry out the activities described in section 1202(c)(7)(A); 
     and
       ``(B) may use such funds to carry out the activities 
     described in section 1202(c)(7)(B).

     ``SEC. 1205. EXTERNAL EVALUATION.

       ``(a) In General.--From funds reserved under section 
     1202(b)(1)(C), the Secretary shall contract with an 
     independent organization outside of the Department for a 5-
     year, rigorous, scientifically valid, quantitative evaluation 
     of this subpart.
       ``(b) Process.--The evaluation under subsection (a) shall 
     be conducted by an organization that is capable of designing 
     and carrying out an independent evaluation that identifies 
     the effects of specific activities carried out by State 
     educational agencies and local educational agencies under 
     this subpart on improving reading instruction. Such 
     evaluation shall take into account factors influencing 
     student performance that are not controlled by teachers or 
     education administrators.
       ``(c) Analysis.--The evaluation under subsection (a) shall 
     include the following:
       ``(1) An analysis of the relationship between each of the 
     essential components of reading instruction and overall 
     reading proficiency.
       ``(2) An analysis of whether assessment tools used by State 
     educational agencies and local educational agencies measure 
     the essential components of reading.
       ``(3) An analysis of how State reading standards correlate 
     with the essential components of reading instruction.
       ``(4) An analysis of whether the receipt of a targeted 
     assistance grant under section 1204 results in an increase in 
     the number of children who read proficiently.
       ``(5) A measurement of the extent to which specific 
     instructional materials improve reading proficiency.
       ``(6) A measurement of the extent to which specific 
     screening, diagnostic, and classroom-based instructional 
     reading assessments assist teachers in identifying specific 
     reading deficiencies.
       ``(7) A measurement of the extent to which professional 
     development programs implemented by State educational 
     agencies using funds received under this subpart improve 
     reading instruction.
       ``(8) A measurement of how well students preparing to enter 
     the teaching profession are prepared to teach the essential 
     components of reading instruction.
       ``(9) An analysis of changes in students' interest in 
     reading and time spent reading outside of school.
       ``(10) Any other analysis or measurement pertinent to this 
     subpart that is determined to be appropriate by the 
     Secretary.
       ``(d) Program Improvement.--The findings of the evaluation 
     conducted under this section shall be provided to State 
     educational agencies and local educational agencies on a 
     periodic basis for use in program improvement.

     ``SEC. 1206. NATIONAL ACTIVITIES.

       ``From funds reserved under section 1202(b)(1)(C), the 
     Secretary--
       ``(1) may provide technical assistance in achieving the 
     purposes of this subpart to State educational agencies, local 
     educational agencies, and schools requesting such assistance;
       ``(2) shall, at a minimum, evaluate the impact of services 
     provided to children under this subpart with respect to their 
     referral to, and eligibility for, special education services 
     under the

[[Page 25657]]

     Individuals with Disabilities Education Act (based on their 
     difficulties learning to read); and
       ``(3) shall carry out the external evaluation as described 
     in section 1205.

     ``SEC. 1207. INFORMATION DISSEMINATION.

       ``(a) In General.--From funds reserved under section 
     1202(b)(1)(D), the National Institute for Literacy, in 
     collaboration with the Secretary of Education, the Secretary 
     of Health and Human Services, and the Director of the 
     National Institute for Child Health and Human Development 
     shall--
       ``(1) disseminate information on scientifically based 
     reading research pertaining to children, youth, and adults;
       ``(2) identify and disseminate information about schools, 
     local educational agencies, and State educational agencies 
     that have effectively developed and implemented classroom 
     reading programs that meet the requirements of this subpart, 
     including those State educational agencies, local educational 
     agencies, and schools that have been identified as effective 
     through the evaluation and peer review provisions of this 
     subpart; and
       ``(3) support the continued identification and 
     dissemination of information on reading programs that contain 
     the essential components of reading instruction as supported 
     by scientifically based reading research, that can lead to 
     improved reading outcomes for children, youth, and adults.
       ``(b) Dissemination and Coordination.--At a minimum, the 
     National Institute for Literacy shall disseminate the 
     information described in subsection (a) to--
       ``(1) recipients of Federal financial assistance under this 
     title, title III, the Head Start Act, the Individuals with 
     Disabilities Education Act, and the Adult Education and 
     Family Literacy Act; and
       ``(2) each Bureau funded school (as defined in section 1141 
     of the Education Amendments of 1978).
       ``(c) Use of Existing Networks.--In carrying out this 
     section, the National Institute for Literacy shall, to the 
     extent practicable, use existing information and 
     dissemination networks developed and maintained through other 
     public and private entities including through the Department 
     and the National Center for Family Literacy.
       ``(d) National Institute for Literacy--For purposes of 
     funds reserved under section 1202(b)(1)(D) to carry out this 
     section, the National Institute for Literacy shall administer 
     such funds in accordance with section 242(b) of Public Law 
     105-220 (relating to the establishment and administration of 
     the National Institute for Literacy).

     ``SEC. 1208. DEFINITIONS.

       ``In this subpart:
       ``(1) Eligible local educational agency.--The term 
     `eligible local educational agency' means a local educational 
     agency that--
       ``(A) is among the local educational agencies in the State 
     with the highest numbers or percentages of students in 
     kindergarten through grade 3 reading below grade level, based 
     on the most currently available data; and
       ``(B) has--
       ``(i) jurisdiction over a geographic area that includes an 
     area designated as an empowerment zone, or an enterprise 
     community, under part I of subchapter U of chapter 1 of the 
     Internal Revenue Code of 1986;
       ``(ii) jurisdiction over a significant number or percentage 
     of schools that are identified for school improvement under 
     section 1116(b); or
       ``(iii) the highest numbers or percentages of children who 
     are counted under section 1124(c), in comparison to other 
     local educational agencies in the State.
       ``(2) Eligible professional development provider.--The term 
     `eligible professional development provider' means a provider 
     of professional development in reading instruction to 
     teachers, including special education teachers, that is based 
     on scientifically based reading research.
       ``(3) Essential components of reading instruction.--The 
     term `essential components of reading instruction' means 
     explicit and systematic instruction in--
       ``(A) phonemic awareness;
       ``(B) phonics;
       ``(C) vocabulary development;
       ``(D) reading fluency, including oral reading skills; and
       ``(E) reading comprehension strategies.
       ``(4) Instructional staff.--The term `instructional 
     staff'--
       ``(A) means individuals who have responsibility for 
     teaching children to read; and
       ``(B) includes principals, teachers, supervisors of 
     instruction, librarians, library school media specialists, 
     teachers of academic subjects other than reading, and other 
     individuals who have responsibility for assisting children to 
     learn to read.
       ``(5) Reading.--The term `reading' means a complex system 
     of deriving meaning from print that requires all of the 
     following:
       ``(A) The skills and knowledge to understand how phonemes, 
     or speech sounds, are connected to print.
       ``(B) The ability to decode unfamiliar words.
       ``(C) The ability to read fluently.
       ``(D) Sufficient background information and vocabulary to 
     foster reading comprehension.
       ``(E) The development of appropriate active strategies to 
     construct meaning from print.
       ``(F) The development and maintenance of a motivation to 
     read.
       ``(6) Scientifically based reading research.--The term 
     `scientifically based reading research' means research that--
       ``(A) applies rigorous, systematic, and objective 
     procedures to obtain valid knowledge relevant to reading 
     development, reading instruction, and reading difficulties; 
     and
       ``(B) includes research that--
       ``(i) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(iii) relies on measurements or observational methods 
     that provide valid data across evaluators and observers and 
     across multiple measurements and observations; and
       ``(iv) has been accepted by a peer-reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review.
       ``(7) Screening, diagnostic, and classroom-based 
     instructional reading assessments.--
       ``(A) In general.--The term `screening, diagnostic, and 
     classroom-based instructional reading assessments' means--
       ``(i) screening reading assessments;
       ``(ii) diagnostic reading assessments; and
       ``(iii) classroom-based instructional reading assessments.
       ``(B) Screening reading assessment.--The term `screening 
     reading assessment' means an assessment that is--
       ``(i) valid, reliable, and based on scientifically based 
     reading research; and
       ``(ii) a brief procedure designed as a first step in 
     identifying children who may be at high risk for delayed 
     development or academic failure and in need of further 
     diagnosis of their need for special services or additional 
     reading instruction.
       ``(C) Diagnostic reading assessment.--The term `diagnostic 
     reading assessment' means an assessment that is--
       ``(i) valid, reliable, and based on scientifically based 
     reading research; and
       ``(ii) used for the purpose of--

       ``(I) identifying a child's specific areas of strengths and 
     weaknesses so that the child has learned to read by the end 
     of grade 3;
       ``(II) determining any difficulties that a child may have 
     in learning to read and the potential cause of such 
     difficulties; and
       ``(III) helping to determine possible reading intervention 
     strategies and related special needs.

       ``(D) Classroom-based instructional reading assessment.--
     The term `classroom-based instructional reading assessment' 
     means an assessment that--
       ``(i) evaluates children's learning based on systematic 
     observations by teachers of children performing academic 
     tasks that are part of their daily classroom experience; and
       ``(ii) is used to improve instruction in reading, including 
     classroom instruction.

                    ``Subpart 2--Early Reading First

     ``SEC. 1221. PURPOSES; DEFINITIONS.

       ``(a) Purposes.--The purposes of this subpart are as 
     follows:
       ``(1) To support local efforts to enhance the early 
     language, literacy, and prereading development of preschool 
     age children, particularly those from low-income families, 
     through strategies and professional development that are 
     based on scientifically based reading research.
       ``(2) To provide preschool age children with cognitive 
     learning opportunities in high-quality language and 
     literature-rich environments, so that the children can attain 
     the fundamental knowledge and skills necessary for optimal 
     reading development in kindergarten and beyond.
       ``(3) To demonstrate language and literacy activities based 
     on scientifically based reading research that supports the 
     age-appropriate development of--
       ``(A) recognition, leading to automatic recognition, of 
     letters of the alphabet;
       ``(B) knowledge of letter sounds, the blending of sounds, 
     and the use of increasingly complex vocabulary;
       ``(C) an understanding that written language is composed of 
     phonemes and letters each representing 1 or more speech 
     sounds that in combination make up syllables, words, and 
     sentences;
       ``(D) spoken language, including vocabulary and oral 
     comprehension abilities; and
       ``(E) knowledge of the purposes and conventions of print.
       ``(4) To use screening assessments to effectively identify 
     preschool age children who may be at risk for reading 
     failure.
       ``(5) To integrate such scientific reading research-based 
     instructional materials and literacy activities with existing 
     programs of preschools, child care agencies and programs, 
     Head Start centers, and family literacy services.
       ``(b) Definitions.--For purposes of this subpart:
       ``(1) Eligible applicant.--The term `eligible applicant' 
     means--
       ``(A) one or more local educational agencies that are 
     eligible to receive a subgrant under subpart 1;
       ``(B) one or more public or private organizations or 
     agencies, acting on behalf of 1 or more programs that serve 
     preschool age children (such as a program at a Head Start 
     center, a child care program, or a family literacy program), 
     which organizations or agencies shall be located in a 
     community served by a local educational agency described in 
     subparagraph (A); or
       ``(C) one or more local educational agencies described in 
     subparagraph (A) in collaboration with 1 or more 
     organizations or agencies described in subparagraph (B).

[[Page 25658]]

       ``(2) Scientifically based reading research.--The term 
     `scientifically based reading research' has the same meaning 
     given to that term in section 1208.
       ``(3) Screening reading assessment.--The term `screening 
     reading assessment' has the same meaning given to that term 
     in section 1208.

     ``SEC. 1222. LOCAL EARLY READING FIRST GRANTS.

       ``(a) Program Authorized.--From amounts appropriated under 
     section 1002(b)(2), the Secretary shall award grants, on a 
     competitive basis, for periods of not more than 6 years, to 
     eligible applicants to enable the eligible applicants to 
     carry out the authorized activities described in subsection 
     (d).
       ``(b) Applications.--An eligible applicant that desires to 
     receive a grant under this section shall submit an 
     application to the Secretary, which shall include a 
     description of--
       ``(1) the programs to be served by the proposed project, 
     including demographic and socioeconomic information on the 
     preschool age children enrolled in the programs;
       ``(2) how the proposed project will enhance the school 
     readiness of preschool age children in high-quality oral 
     language and literature-rich environments;
       ``(3) how the proposed project will prepare and provide 
     ongoing assistance to staff in the programs, through 
     professional development and other support, to provide high-
     quality language, literacy, and prereading activities using 
     scientifically based reading research, for preschool age 
     children;
       ``(4) how the proposed project will provide services and 
     use instructional materials that are based on scientifically 
     based reading research on early language acquisition, 
     prereading activities, and the development of spoken 
     vocabulary skills;
       ``(5) how the proposed project will help staff in the 
     programs to meet more effectively the diverse needs of 
     preschool age children in the community, including such 
     children with limited English proficiency, disabilities, or 
     other special needs;
       ``(6) how the proposed project will integrate such 
     instructional materials and literacy activities with existing 
     preschool programs and family literacy services;
       ``(7) how the proposed project will help children, 
     particularly children experiencing difficulty with spoken 
     language, prereading, and early reading skills, to make the 
     transition from preschool to formal classroom instruction in 
     school;
       ``(8) if the eligible applicant has received a subgrant 
     under subpart 1, how the activities conducted under this 
     subpart will be coordinated with the eligible applicant's 
     activities under subpart 1 at the kindergarten through grade 
     3 level;
       ``(9) how the proposed project will evaluate the success of 
     the activities supported under this subpart in enhancing the 
     early language, literacy, and prereading development of 
     preschool age children served by the project; and
       ``(10) such other information as the Secretary may require.
       ``(c) Approval of Local Applications.--The Secretary shall 
     select applicants for funding under this subpart based on the 
     quality of the applications and the recommendations of a peer 
     review panel convened under section 1203(c)(2), that 
     includes, at a minimum, 3 individuals, selected from the 
     entities described in clauses (ii), (iii), and (iv) of 
     section 1203(c)(2)(A), who are experts in early reading 
     development and early childhood development.
       ``(d) Authorized Activities.--An eligible applicant that 
     receives a grant under this subpart shall use the funds 
     provided under the grant to carry out the following 
     activities:
       ``(1) Providing preschool age children with high-quality 
     oral language and literature-rich environments in which to 
     acquire language and prereading skills.
       ``(2) Providing professional development that is based on 
     scientifically based reading research knowledge of early 
     language and reading development for the staff of the 
     eligible applicant and that will assist in developing the 
     preschool age children's--
       ``(A) recognition, leading to automatic recognition, of 
     letters of the alphabet, knowledge of letters, sounds, 
     blending of letter sounds, and increasingly complex 
     vocabulary;
       ``(B) understanding that written language is composed of 
     phonemes and letters each representing 1 or more speech 
     sounds that in combination make up syllables, words, and 
     sentences;
       ``(C) spoken language, including vocabulary and oral 
     comprehension abilities; and
       ``(D) knowledge of the purposes and conventions of print.
       ``(3) Identifying and providing activities and 
     instructional materials that are based on scientifically 
     based reading research for use in developing the skills and 
     abilities described in paragraph (2).
       ``(4) Acquiring, providing training for, and implementing 
     screening reading assessments or other appropriate measures 
     that are based on scientifically based reading research to 
     determine whether preschool age children are developing the 
     skills described in this subsection.
       ``(5) Integrating such instructional materials, activities, 
     tools, and measures into the programs offered by the eligible 
     applicant.
       ``(e) Award Amounts.--The Secretary may establish a maximum 
     award amount, or ranges of award amounts, for grants under 
     this subpart.

     ``SEC. 1223. FEDERAL ADMINISTRATION.

       ``The Secretary shall consult with the Secretary of Health 
     and Human Services to coordinate the activities under this 
     subpart with preschool age programs administered by the 
     Department of Health and Human Services.

     ``SEC. 1224. INFORMATION DISSEMINATION.

       ``From the funds the National Institute for Literacy 
     receives under section 1202(b)(1)(D), the National Institute 
     for Literacy, in consultation with the Secretary, shall 
     disseminate information regarding projects assisted under 
     this subpart that have proven effective.

     ``SEC. 1225. REPORTING REQUIREMENTS.

       ``Each eligible applicant receiving a grant under this 
     subpart shall report annually to the Secretary regarding the 
     eligible applicant's progress in addressing the purposes of 
     this subpart. Such report shall include, at a minimum, a 
     description of--
       ``(1) the research-based instruction, materials, and 
     activities being used in the programs funded under the grant;
       ``(2) the types of programs funded under the grant and the 
     ages of children served by such programs;
       ``(3) the qualifications of the program staff who provide 
     early literacy instruction under such programs and the type 
     of ongoing professional development provided to such staff; 
     and
       ``(4) the results of the evaluation described in section 
     1222(b)(9).

     ``SEC. 1226. EVALUATION.

       ``(a) In General.--From the total amount made available 
     under section 1002(b)(2) for the period beginning October 1, 
     2002, and ending September 30, 2006, the Secretary shall 
     reserve not more than $3,000,000 to conduct an independent 
     evaluation of the effectiveness of this subpart.
       ``(b) Reports.--
       ``(1) Interim report.--Not later than October 1, 2004, the 
     Secretary shall submit an interim report 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.
       ``(2) Final report.--Not later than September 30, 2006, the 
     Secretary shall submit a final report to the committees 
     described in paragraph (1).
       ``(c) Contents.--The reports submitted under subsection (b) 
     shall include information on the following:
       ``(1) How the grant recipients under this subpart are 
     improving the prereading skills of preschool children.
       ``(2) The effectiveness of the professional development 
     program assisted under this subpart.
       ``(3) How early childhood teachers are being prepared with 
     scientifically based reading research on early reading 
     development.
       ``(4) What activities and instructional practices are most 
     effective.
       ``(5) How prereading instructional materials and literacy 
     activities based on scientifically based reading research are 
     being integrated into preschools, child care agencies and 
     programs, programs carried out under the Head Start Act, and 
     family literacy programs.
       ``(6) Any recommendations on strengthening or modifying 
     this subpart.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

     ``SEC. 1231. STATEMENT OF PURPOSE.

       ``It is the purpose of this subpart to help break the cycle 
     of poverty and illiteracy by--
       ``(1) improving the educational opportunities of the 
     Nation's low-income families by integrating early childhood 
     education, adult literacy or adult basic education, and 
     parenting education into a unified family literacy program, 
     to be referred to as `Even Start'; and
       ``(2) establishing a program that shall--
       ``(A) be implemented through cooperative projects that 
     build on high-quality existing community resources to create 
     a new range of services;
       ``(B) promote the academic achievement of children and 
     adults;
       ``(C) assist children and adults from low-income families 
     to achieve to challenging State content standards and 
     challenging State student achievement standards; and
       ``(D) use instructional programs based on scientifically 
     based reading research and addressing the prevention of 
     reading difficulties for children and adults, to the extent 
     such research is available.

     ``SEC. 1232. PROGRAM AUTHORIZED.

       ``(a) Reservation for Migrant Programs, Outlying Areas, and 
     Indian Tribes.--
       ``(1) In general.--For each fiscal year, the Secretary 
     shall reserve 5 percent of the amount appropriated under 
     section 1002(b)(3) (or, if such appropriated amount exceeds 
     $200,000,000, 6 percent of such amount) for programs, under 
     such terms and conditions as the Secretary shall establish, 
     that are consistent with the purpose of this subpart, and 
     according to their relative needs, for--
       ``(A) children of migratory workers;
       ``(B) the outlying areas; and
       ``(C) Indian tribes and tribal organizations.
       ``(2) Special rule.--After December 21, 2000, the Secretary 
     shall award a grant, on a competitive basis, of sufficient 
     size and for a period of sufficient duration to demonstrate 
     the effectiveness of a family literacy program in a prison 
     that houses women and their preschool age children and that 
     has the capability of developing a program of high quality.
       ``(3) Coordination of programs for american indians.--The 
     Secretary shall ensure that programs under paragraph (1)(C) 
     are coordinated with family literacy programs operated by the 
     Bureau of Indian Affairs in order to avoid

[[Page 25659]]

     duplication and to encourage the dissemination of information 
     on high-quality family literacy programs serving American 
     Indians.
       ``(b) Reservation for Federal Activities.--
       ``(1) Evaluation, technical assistance, program 
     improvement, and replication activities.--Subject to 
     paragraph (2), from amounts appropriated under section 
     1002(b)(3), the Secretary may reserve not more than 3 percent 
     of such amounts for purposes of--
       ``(A) carrying out the evaluation required by section 1239; 
     and
       ``(B) providing, through grants or contracts with eligible 
     organizations, technical assistance, program improvement, and 
     replication activities.
       ``(2) Research.--In any fiscal year, if the amount 
     appropriated under section 1002(b)(3) for such year--
       ``(A) is equal to or less than the amount appropriated for 
     the preceding fiscal year, the Secretary may reserve from 
     such amount only the amount necessary to continue multi-year 
     activities carried out pursuant to section 1241(b) that began 
     during or prior to the fiscal year preceding the fiscal year 
     for which the determination is made; or
       ``(B) exceeds the amount appropriated for the preceding 
     fiscal year, then the Secretary shall reserve from such 
     excess amount $2,000,000 or 50 percent, whichever is less, to 
     carry out section 1241(b).
       ``(c) Reservation for Grants.--
       ``(1) Grants authorized.--
       ``(A) In general.--For any fiscal year for which at least 1 
     State educational agency applies and submits an application 
     that meets the requirements and goals of this subsection and 
     for which the amount appropriated under section 1002(b)(3) 
     exceeds the amount appropriated under that section for the 
     preceding fiscal year, the Secretary shall reserve, from the 
     amount of the excess remaining after the application of 
     subsection (b)(2), the amount of the remainder or $1,000,000, 
     whichever is less, to award grants, on a competitive basis, 
     to State educational agencies to enable them to plan and 
     implement statewide family literacy initiatives to coordinate 
     and, where appropriate, integrate existing Federal, State, 
     and local literacy resources consistent with the purposes of 
     this subpart.
       ``(B) Coordination and integration.--The coordination and 
     integration described in subparagraph (A) shall include 
     coordination and integration of funds available under the 
     Adult Education and Family Literacy Act, the Head Start Act, 
     this subpart, part A of this title, and part A of title IV of 
     the Social Security Act.
       ``(C) Restriction.--No State educational agency may receive 
     more than 1 grant under this subsection.
       ``(2) Consortia.--
       ``(A) Establishment.--To receive a grant under this 
     subsection, a State educational agency shall establish a 
     consortium of State-level programs under the following 
     provisions of laws:
       ``(i) This title (other than part D).
       ``(ii) The Head Start Act.
       ``(iii) The Adult Education and Family Literacy Act.
       ``(iv) All other State-funded preschool programs and 
     programs providing literacy services to adults.
       ``(B) Plan.--To receive a grant under this subsection, the 
     consortium established by a State educational agency shall 
     create a plan to use a portion of the State educational 
     agency's resources, derived from the programs referred to in 
     subparagraph (A), to strengthen and expand family literacy 
     services in the State.
       ``(C) Coordination with subpart 1.--The consortium shall 
     coordinate its activities under this paragraph with the 
     activities of the reading and literacy partnership for the 
     State educational agency established under section 1203(d), 
     if the State educational agency receives a grant under 
     section 1202.
       ``(3) Reading instruction.--Statewide family literacy 
     initiatives implemented under this subsection shall base 
     reading instruction on scientifically based reading research.
       ``(4) Technical assistance.--The Secretary shall provide, 
     directly or through a grant or contract with an organization 
     with experience in the development and operation of 
     successful family literacy services, technical assistance to 
     State educational agencies receiving a grant under this 
     subsection.
       ``(5) Matching requirement.--The Secretary shall not make a 
     grant to a State educational agency under this subsection 
     unless the State educational agency agrees that, with respect 
     to the costs to be incurred by the eligible consortium in 
     carrying out the activities for which the grant was awarded, 
     the State educational agency will make available non-Federal 
     contributions in an amount equal to not less than the Federal 
     funds provided under the grant.
       ``(d) State Educational Agency Allocation.--
       ``(1) In general.--From amounts appropriated under section 
     1002(b)(3) and not reserved under subsection (a), (b), or 
     (c), the Secretary shall make grants to State educational 
     agencies from allocations under paragraph (2).
       ``(2) Allocations.--Except as provided in paragraph (3), 
     from the total amount available under paragraph (1) for 
     allocation to State educational agencies in any fiscal year, 
     each State educational agency shall be eligible to receive a 
     grant under paragraph (1) in an amount that bears the same 
     ratio to the total amount as the amount allocated under part 
     A to that State educational agency bears to the total amount 
     allocated under that part to all State educational agencies.
       ``(3) Minimum.--No State educational agency shall receive a 
     grant under paragraph (1) in any fiscal year in an amount 
     that is less than $250,000, or \1/2\ of 1 percent of the 
     amount appropriated under section 1002(b)(3) and not reserved 
     under subsections (a), (b), and (c) for such year, whichever 
     is greater.
       ``(e) Definitions.--For the purpose of this subpart--
       ``(1) the term `eligible entity' means a partnership 
     composed of--
       ``(A) a local educational agency; and
       ``(B) a nonprofit community-based organization, a public 
     agency other than a local educational agency, an institution 
     of higher education, or a public or private nonprofit 
     organization other than a local educational agency, of 
     demonstrated quality;
       ``(2) the term `eligible organization' means any public or 
     private nonprofit organization with a record of providing 
     effective services to family literacy providers, such as the 
     National Center for Family Literacy, Parents as Teachers, 
     Inc., the Home Instruction Program for Preschool Youngsters, 
     and the Home and School Institute, Inc.;
       ``(3) the terms `Indian tribe' and `tribal organization' 
     have the meanings given those terms in section 4 of the 
     Indian Self-Determination and Education Assistance Act;
       ``(4) the term `scientifically based reading research' has 
     the meaning given that term in section 1208; and
       ``(5) the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     ``SEC. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

       ``(a) State Educational Agency Level Activities.--Each 
     State educational agency that receives a grant under section 
     1232(d)(1) may use not more than a total of 6 percent of the 
     grant funds for the costs of--
       ``(1) administration, which amount shall not exceed half of 
     the total;
       ``(2) providing, through 1 or more subgrants or contracts, 
     technical assistance for program improvement and replication, 
     to eligible entities that receive subgrants under subsection 
     (b); and
       ``(3) carrying out sections 1240 and 1234(c).
       ``(b) Subgrants for Local Programs.--
       ``(1) In general.--Each State educational agency shall use 
     the grant funds received under section 1232(d)(1) and not 
     reserved under subsection (a) to award subgrants to eligible 
     entities to carry out Even Start programs.
       ``(2) Minimum subgrant amounts.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), no State educational agency shall award a subgrant 
     under paragraph (1) in an amount less than $75,000.
       ``(B) Subgrantees in ninth and succeeding years.--No State 
     educational agency shall award a subgrant under paragraph (1) 
     in an amount less than $52,500 to an eligible entity for a 
     fiscal year to carry out an Even Start program that is 
     receiving assistance under this subpart or its predecessor 
     authority for the ninth (or any subsequent) fiscal year.
       ``(C) Exception for single subgrant.--A State educational 
     agency may award 1 subgrant in each fiscal year of sufficient 
     size, scope, and quality to be effective in an amount less 
     than $75,000 if, after awarding subgrants under paragraph (1) 
     for that fiscal year in accordance with subparagraphs (A) and 
     (B), less than $75,000 is available to the State educational 
     agency to award those subgrants.

     ``SEC. 1234. USES OF FUNDS.

       ``(a) In General.--In carrying out an Even Start program 
     under this subpart, a recipient of funds under this subpart 
     shall use those funds to pay the Federal share of the cost of 
     providing intensive family literacy services that involve 
     parents and children, from birth through age 7, in a 
     cooperative effort to help parents become full partners in 
     the education of their children and to assist children in 
     reaching their full potential as learners.
       ``(b) Federal Share Limitation.--
       ``(1) In general.--
       ``(A) Federal share.--Except as provided in paragraph (2), 
     the Federal share under this subpart may not exceed--
       ``(i) 90 percent of the total cost of the program in the 
     first year that the program receives assistance under this 
     subpart or its predecessor authority;
       ``(ii) 80 percent in the second year;
       ``(iii) 70 percent in the third year;
       ``(iv) 60 percent in the fourth year;
       ``(v) 50 percent in the fifth, sixth, seventh, and eighth 
     such years; and
       ``(vi) 35 percent in any subsequent year.
       ``(B) Remaining cost.--The remaining cost of a program 
     assisted under this subpart may be provided in cash or in 
     kind, fairly evaluated, and may be obtained from any source, 
     including other Federal funds under this Act.
       ``(2) Waiver.--The State educational agency may waive, in 
     whole or in part, the Federal share described in paragraph 
     (1) for an eligible entity if the entity--
       ``(A) demonstrates that it otherwise would not be able to 
     participate in the program assisted under this subpart; and
       ``(B) negotiates an agreement with the State educational 
     agency with respect to the amount of the remaining cost to 
     which the waiver will be applicable.
       ``(3) Prohibition.--Federal funds provided under this 
     subpart may not be used for the indirect costs of a program 
     assisted under this subpart, except that the Secretary may 
     waive this paragraph if an eligible recipient of funds 
     reserved under section 1232(a)(1)(C) demonstrates to the 
     Secretary's satisfaction that the recipient

[[Page 25660]]

     otherwise would not be able to participate in the program 
     assisted under this subpart.
       ``(c) Use of Funds for Family Literacy Services.--
       ``(1) In general.--A State educational agency may use a 
     portion of funds reserved under section 1233(a), to assist 
     eligible entities receiving a subgrant under section 1233(b) 
     in improving the quality of family literacy services provided 
     under Even Start programs under this subpart, except that in 
     no case may a State educational agency's use of funds for 
     this purpose for a fiscal year result in a decrease from the 
     level of activities and services provided to program 
     participants in the preceding year.
       ``(2) Priority.--In carrying out paragraph (1), a State 
     educational agency shall give priority to programs that were 
     of low quality, as evaluated based on the indicators of 
     program quality developed by the State educational agency 
     under section 1240.
       ``(3) Technical assistance to help local programs raise 
     additional funds.--In carrying out paragraph (1), a State 
     educational agency may use the funds referred to in that 
     paragraph to provide technical assistance to help local 
     programs of demonstrated effectiveness to access and leverage 
     additional funds for the purpose of expanding services and 
     reducing waiting lists, including requesting and applying for 
     non-Federal resources.
       ``(4) Technical assistance and training.--Assistance under 
     paragraph (1) shall be in the form of technical assistance 
     and training, provided by a State educational agency through 
     a grant, contract, or cooperative agreement with an entity 
     that has experience in offering high-quality training and 
     technical assistance to family literacy providers.

     ``SEC. 1235. PROGRAM ELEMENTS.

       ``Each program assisted under this subpart shall--
       ``(1) include the identification and recruitment of 
     families most in need of services provided under this 
     subpart, as indicated by a low level of income, a low level 
     of adult literacy or English language proficiency of the 
     eligible parent or parents, and other need-related 
     indicators;
       ``(2) include screening and preparation of parents, 
     including teenage parents, and children to enable those 
     parents and children to participate fully in the activities 
     and services provided under this subpart, including testing, 
     referral to necessary counselling, other developmental and 
     support services, and related services;
       ``(3) be designed to accommodate the participants' work 
     schedule and other responsibilities, including the provision 
     of support services, when those services are unavailable from 
     other sources, necessary for participation in the activities 
     assisted under this subpart, such as--
       ``(A) scheduling and locating of services to allow joint 
     participation by parents and children;
       ``(B) child care for the period that parents are involved 
     in the program provided under this subpart; and
       ``(C) transportation for the purpose of enabling parents 
     and their children to participate in programs authorized by 
     this subpart;
       ``(4) include high-quality, intensive instructional 
     programs that promote adult literacy and empower parents to 
     support the educational growth of their children, 
     developmentally appropriate early childhood educational 
     services, and preparation of children for success in regular 
     school programs;
       ``(5) with respect to the qualifications of staff the cost 
     of whose salaries are paid, in whole or in part, with Federal 
     funds provided under this subpart, ensure that--
       ``(A) not later than December 21, 2004--
       ``(i) a majority of the individuals providing academic 
     instruction--

       ``(I) shall have obtained an associate's, bachelor's, or 
     graduate degree in a field related to early childhood 
     education, elementary school or secondary school education, 
     or adult education; and
       ``(II) if applicable, shall meet qualifications established 
     by the State for early childhood education, elementary school 
     or secondary school education, or adult education provided as 
     part of an Even Start program or another family literacy 
     program;

       ``(ii) the individual responsible for administration of 
     family literacy services under this subpart has received 
     training in the operation of a family literacy program; and
       ``(iii) paraprofessionals who provide support for academic 
     instruction have a secondary school diploma or its recognized 
     equivalent; and
       ``(B) all new personnel hired to provide academic 
     instruction--
       ``(i) have obtained an associate's, bachelor's, or graduate 
     degree in a field related to early childhood education, 
     elementary school or secondary school education, or adult 
     education; and
       ``(ii) if applicable, meet qualifications established by 
     the State for early childhood education, elementary school or 
     secondary school education, or adult education provided as 
     part of an Even Start program or another family literacy 
     program;
       ``(6) include special training of staff, including child-
     care staff, to develop the skills necessary to work with 
     parents and young children in the full range of instructional 
     services offered through this subpart;
       ``(7) provide and monitor integrated instructional services 
     to participating parents and children through home-based 
     programs;
       ``(8) operate on a year-round basis, including the 
     provision of some program services, including instructional 
     and enrichment services, during the summer months;
       ``(9) be coordinated with--
       ``(A) other programs assisted under this Act;
       ``(B) any relevant programs under the Adult Education and 
     Family Literacy Act, the Individuals with Disabilities 
     Education Act, and title I of the Workforce Investment Act of 
     1998; and
       ``(C) the Head Start program, volunteer literacy programs, 
     and other relevant programs;
       ``(10) use instructional programs based on scientifically 
     based reading research for children and adults, to the extent 
     that research is available;
       ``(11) encourage participating families to attend regularly 
     and to remain in the program a sufficient time to meet their 
     program goals;
       ``(12) include reading-readiness activities for preschool 
     children based on scientifically based reading research, to 
     the extent available, to ensure that children enter school 
     ready to learn to read;
       ``(13) if applicable, promote the continuity of family 
     literacy to ensure that individuals retain and improve their 
     educational outcomes;
       ``(14) ensure that the programs will serve those families 
     most in need of the activities and services provided by this 
     subpart; and
       ``(15) provide for an independent evaluation of the 
     program, to be used for program improvement.

     ``SEC. 1236. ELIGIBLE PARTICIPANTS.

       ``(a) In General.--Except as provided in subsection (b), 
     eligible participants in an Even Start program are--
       ``(1) a parent or parents--
       ``(A) who are eligible for participation in adult education 
     and literacy activities under the Adult Education and Family 
     Literacy Act; or
       ``(B) who are within the State's compulsory school 
     attendance age range, so long as a local educational agency 
     provides (or ensures the availability of) the basic education 
     component required under this subpart, or who are attending 
     secondary school; and
       ``(2) the child or children, from birth through age 7, of 
     any individual described in paragraph (1).
       ``(b) Eligibility for Certain Other Participants.--
       ``(1) In general.--Family members of eligible participants 
     described in subsection (a) may participate in activities and 
     services provided under this subpart, when appropriate to 
     serve the purpose of this subpart.
       ``(2) Special rule.--Any family participating in a program 
     assisted under this subpart that becomes ineligible to 
     participate as a result of 1 or more members of the family 
     becoming ineligible to participate may continue to 
     participate in the program until all members of the family 
     become ineligible to participate, which--
       ``(A) in the case of a family in which ineligibility was 
     due to the child or children of the family attaining the age 
     of 8, shall be in 2 years or when the parent or parents 
     become ineligible due to educational advancement, whichever 
     occurs first; and
       ``(B) in the case of a family in which ineligibility was 
     due to the educational advancement of the parent or parents 
     of the family, shall be when all children in the family 
     attain the age of 8.
       ``(3) Children 8 years of age or older.--If an Even Start 
     program assisted under this subpart collaborates with a 
     program under part A, and funds received under the part A 
     program contribute to paying the cost of providing programs 
     under this subpart to children 8 years of age or older, the 
     Even Start program may, notwithstanding subsection (a)(2), 
     permit the participation of children 8 years of age or older 
     if the focus of the program continues to remain on families 
     with young children.

     ``SEC. 1237. APPLICATIONS.

       ``(a) Submission.--To be eligible to receive a subgrant 
     under this subpart, an eligible entity shall submit an 
     application to the State educational agency in such form and 
     containing or accompanied by such information as the State 
     educational agency shall require.
       ``(b) Required Documentation.--Each application shall 
     include documentation, satisfactory to the State educational 
     agency, that the eligible entity has the qualified personnel 
     needed--
       ``(1) to develop, administer, and implement an Even Start 
     program under this subpart; and
       ``(2) to provide access to the special training necessary 
     to prepare staff for the program, which may be offered by an 
     eligible organization.
       ``(c) Plan.--
       ``(1) In general.--The application shall also include a 
     plan of operation and continuous improvement for the program, 
     that includes--
       ``(A) a description of the program objectives, strategies 
     to meet those objectives, and how those strategies and 
     objectives are consistent with the program indicators 
     established by the State;
       ``(B) a description of the activities and services that 
     will be provided under the program, including a description 
     of how the program will incorporate the program elements 
     required by section 1235;
       ``(C) a description of the population to be served and an 
     estimate of the number of participants to be served;
       ``(D) as appropriate, a description of the applicant's 
     collaborative efforts with institutions of higher education, 
     community-based organizations, the State educational agency, 
     private elementary schools, or other eligible organizations 
     in carrying out the program for which assistance is sought;
       ``(E) a statement of the methods that will be used--

[[Page 25661]]

       ``(i) to ensure that the programs will serve families most 
     in need of the activities and services provided by this 
     subpart;
       ``(ii) to provide services under this subpart to 
     individuals with special needs, such as individuals with 
     limited English proficiency and individuals with 
     disabilities; and
       ``(iii) to encourage participants to remain in the program 
     for a time sufficient to meet the program's purpose;
       ``(F) a description of how the plan is integrated with 
     other programs under this Act or other Acts, as appropriate; 
     and
       ``(G) a description of how the plan provides for rigorous 
     and objective evaluation of progress toward the program 
     objectives described in subparagraph (A) and for continuing 
     use of evaluation data for program improvement.
       ``(2) Duration of the plan.--Each plan submitted under 
     paragraph (1) shall--
       ``(A) remain in effect for the duration of the eligible 
     entity's participation under this subpart; and
       ``(B) be periodically reviewed and revised by the eligible 
     entity as necessary.
       ``(d) Consolidated Application.--The plan described in 
     subsection (c)(1)(F) may be submitted as part of a 
     consolidated application under section 9302.

     ``SEC. 1238. AWARD OF SUBGRANTS.

       ``(a) Selection Process.--
       ``(1) In general.--The State educational agency shall 
     establish a review panel in accordance with paragraph (3) 
     that will approve applications that--
       ``(A) are most likely to be successful in--
       ``(i) meeting the purpose of this subpart; and
       ``(ii) effectively implementing the program elements 
     required under section 1235;
       ``(B) demonstrate that the area to be served by the program 
     has a high percentage or a large number of children and 
     families who are in need of those services as indicated by 
     high levels of poverty, illiteracy, unemployment, limited 
     English proficiency, or other need-related indicators, such 
     as a high percentage of children to be served by the program 
     who reside in a school attendance area served by a local 
     educational agency eligible for participation in programs 
     under part A, a high number or percentage of parents who have 
     been victims of domestic violence, or a high number or 
     percentage of parents who are receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.);
       ``(C) provide services for at least a 3-year age range, 
     which may begin at birth;
       ``(D) demonstrate the greatest possible cooperation and 
     coordination between a variety of relevant service providers 
     in all phases of the program;
       ``(E) include cost-effective budgets, given the scope of 
     the application;
       ``(F) demonstrate the applicant's ability to provide the 
     non-Federal share required by section 1234(b);
       ``(G) are representative of urban and rural regions of the 
     State; and
       ``(H) show the greatest promise for providing models that 
     may be adopted by other family literacy projects and other 
     local educational agencies.
       ``(2) Priority for subgrants.--The State educational agency 
     shall give priority for subgrants under this subsection to 
     applications that--
       ``(A) target services primarily to families described in 
     paragraph (1)(B); or
       ``(B) are located in areas designated as empowerment zones 
     or enterprise communities.
       ``(3) Review panel.--A review panel shall consist of at 
     least 3 members, including 1 early childhood professional, 1 
     adult education professional, and 1 individual with expertise 
     in family literacy programs, and may include other 
     individuals, such as 1 or more of the following:
       ``(A) A representative of a parent-child education 
     organization.
       ``(B) A representative of a community-based literacy 
     organization.
       ``(C) A member of a local board of education.
       ``(D) A representative of business and industry with a 
     commitment to education.
       ``(E) An individual who has been involved in the 
     implementation of programs under this title in the State.
       ``(b) Duration.--
       ``(1) In general.--Subgrants under this subpart may be 
     awarded for a period not to exceed 4 years.
       ``(2) Startup period.--The State educational agency may 
     provide subgrant funds to an eligible recipient, at the 
     recipient's request, for a 3- to 6-month start-up period 
     during the first year of the 4-year grant period, which may 
     include staff recruitment and training, and the coordination 
     of services, before requiring full implementation of the 
     program.
       ``(3) Continuing eligibility.--In awarding subgrant funds 
     to continue a program under this subpart after the first 
     year, the State educational agency shall review the progress 
     of each eligible entity in meeting the objectives of the 
     program referred to in section 1237(c)(1)(A) and shall 
     evaluate the program based on the indicators of program 
     quality developed by the State under section 1240.
       ``(4) Insufficient progress.--The State educational agency 
     may refuse to award subgrant funds to an eligible entity if 
     the agency finds that the eligible entity has not 
     sufficiently improved the performance of the program, as 
     evaluated based on the indicators of program quality 
     developed by the State under section 1240, after--
       ``(A) providing technical assistance to the eligible 
     entity; and
       ``(B) affording the eligible entity notice and an 
     opportunity for a hearing.
       ``(5) Grant renewal.--(A) An eligible entity that has 
     previously received a subgrant under this subpart may reapply 
     under this subpart for additional subgrants.
       ``(B) The Federal share of any subgrant renewed under 
     subparagraph (A) shall be limited in accordance with section 
     1234(b).

     ``SEC. 1239. EVALUATION.

       ``From funds reserved under section 1232(b)(1), the 
     Secretary shall provide for an independent evaluation of 
     programs assisted under this subpart--
       ``(1) to determine the performance and effectiveness of 
     programs assisted under this subpart;
       ``(2) to identify effective Even Start programs assisted 
     under this subpart that can be duplicated and used in 
     providing technical assistance to Federal, State, and local 
     programs; and
       ``(3) to provide State educational agencies and eligible 
     entities receiving a subgrant under this subpart, directly or 
     through a grant or contract with an organization with 
     experience in the development and operation of successful 
     family literacy services, technical assistance to ensure that 
     local evaluations undertaken under section 1235(15) provide 
     accurate information on the effectiveness of programs 
     assisted under this subpart.

     ``SEC. 1240. INDICATORS OF PROGRAM QUALITY.

       ``Each State educational agency receiving funds under this 
     subpart shall develop, based on the best available research 
     and evaluation data, indicators of program quality for 
     programs assisted under this subpart. The indicators shall be 
     used to monitor, evaluate, and improve those programs within 
     the State. The indicators shall include the following:
       ``(1) With respect to eligible participants in a program 
     who are adults--
       ``(A) achievement in the areas of reading, writing, 
     English-language acquisition, problem solving, and numeracy;
       ``(B) receipt of a secondary school diploma or a general 
     equivalency diploma (GED);
       ``(C) entry into a postsecondary school, job retraining 
     program, or employment or career advancement, including the 
     military; and
       ``(D) such other indicators as the State may develop.
       ``(2) With respect to eligible participants in a program 
     who are children--
       ``(A) improvement in ability to read on grade level or 
     reading readiness;
       ``(B) school attendance;
       ``(C) grade retention and promotion; and
       ``(D) such other indicators as the State may develop.

     ``SEC. 1241. RESEARCH.

       ``(a) In General.--The Secretary shall carry out, through 
     grant or contract, research into the components of successful 
     family literacy services, in order to--
       ``(1) improve the quality of existing programs assisted 
     under this subpart or other family literacy programs carried 
     out under this Act or the Adult Education and Family Literacy 
     Act; and
       ``(2) develop models for new programs to be carried out 
     under this Act or the Adult Education and Family Literacy 
     Act.
       ``(b) Scientifically Based Research on Family Literacy.--
       ``(1) In general.--From amounts reserved under section 
     1232(b)(2), the National Institute for Literacy, in 
     consultation with the Secretary, shall carry out research 
     that--
       ``(A) is scientifically based reading research; and
       ``(B) determines--
       ``(i) the most effective ways of improving the literacy 
     skills of adults with reading difficulties; and
       ``(ii) how family literacy services can best provide 
     parents with the knowledge and skills the parents need to 
     support their children's literacy development.
       ``(2) Use of expert entity.--The National Institute for 
     Literacy, in consultation with the Secretary, shall carry out 
     the research under paragraph (1) through an entity, including 
     a Federal agency, that has expertise in carrying out 
     longitudinal studies of the development of literacy skills in 
     children and has developed effective interventions to help 
     children with reading difficulties.
       ``(c) Dissemination.--The National Institute for Literacy 
     shall disseminate, pursuant to section 1207, the results of 
     the research described in subsections (a) and (b) to State 
     educational agencies and recipients of subgrants under this 
     subpart.

     ``SEC. 1242. CONSTRUCTION.

       ``Nothing in this subpart shall be construed to prohibit a 
     recipient of funds under this subpart from serving students 
     participating in Even Start simultaneously with students with 
     similar educational needs, in the same educational settings 
     where appropriate.

        ``Subpart 4--Improving Literacy Through School Libraries

     ``SEC. 1251. IMPROVING LITERACY THROUGH SCHOOL LIBRARIES.

       ``(a) Purposes.--The purpose of this subpart is to improve 
     literacy skills and academic achievement of students by 
     providing students with increased access to up-to-date school 
     library materials, a well-equipped, technologically advanced 
     school library media center, and well-trained, professionally 
     certified school library media specialists.
       ``(b) Reservation.--From the funds appropriated under 
     section 1002(b)(4) for a fiscal year, the Secretary shall 
     reserve--

[[Page 25662]]

       ``(1) \1/2\ of 1 percent to award assistance under this 
     section to the Bureau of Indian Affairs to carry out 
     activities consistent with the purpose of this subpart; and
       ``(2) \1/2\ of 1 percent to award assistance under this 
     section to the outlying areas according to their respective 
     needs for assistance under this subpart.
       ``(c) Grants.--
       ``(1) Competitive grants to eligible local educational 
     agencies.--If the amount of funds appropriated under section 
     1002(b)(4) for a fiscal year is less than $100,000,000, then 
     the Secretary shall award grants, on a competitive basis, to 
     eligible local educational agencies under subsection (e).
       ``(2) Formula grants to states.--If the amount of funds 
     appropriated under section 1002(b)(4) for a fiscal year 
     equals or exceeds $100,000,000, then the Secretary shall 
     award grants to State educational agencies from allotments 
     under subsection (d).
       ``(3) Definition of eligible local educational agency.--In 
     this section the term `eligible local educational agency' 
     means--
       ``(A) in the case of a local educational agency receiving 
     assistance made available under paragraph (1), a local 
     educational agency in which 20 percent of the students served 
     by the local educational agency are from families with 
     incomes below the poverty line; and
       ``(B) in the case of a local educational agency receiving 
     assistance from State allocations made available under 
     paragraph (2), a local educational agency in which--
       ``(i) 15 percent of the students who are served by the 
     local educational agency are from such families; or
       ``(ii) the percentage of students from such families who 
     are served by the local educational agency is greater than 
     the statewide percentage of children from such families.
       ``(d) State Grants.--
       ``(1) Allotments.--From funds made available under 
     subsection (c)(2) and not reserved under subsections (b) and 
     (j) for a fiscal year, the Secretary shall allot to each 
     State educational agency having an application approved under 
     subsection (f)(1) an amount that bears the same relation to 
     the funds as the amount the State educational agency received 
     under part A for the preceding fiscal year bears to the 
     amount all such State educational agencies received under 
     part A for the preceding fiscal year, to increase literacy 
     and reading skills by improving school libraries.
       ``(2) Competitive grants to eligible local educational 
     agencies.--Each State educational agency receiving an 
     allotment under paragraph (1) for a fiscal year--
       ``(A) may reserve not more than 3 percent of the allotted 
     funds to provide technical assistance, disseminate 
     information about school library media programs that are 
     effective and based on scientifically based research, and pay 
     administrative costs related to activities under this 
     section; and
       ``(B) shall use the allotted funds that remain after making 
     the reservation under subparagraph (A) to award grants, for a 
     period of 1 year, on a competitive basis, to eligible local 
     educational agencies in the State that have an application 
     approved under subsection (f)(2) for activities described in 
     subsection (g).
       ``(3) Reallotment.--If a State educational agency does not 
     apply for an allotment under this section for any fiscal 
     year, or if the State educational agency's application is not 
     approved, the Secretary shall reallot the amount of the State 
     educational agency's allotment to the remaining State 
     educational agencies in accordance with paragraph (1).
       ``(e) Direct Competitive Grants to Eligible Local 
     Educational Agencies.--
       ``(1) In general.--From amounts made available under 
     subsection (c)(1) and not reserved under subsections (b) and 
     (j) for a fiscal year, the Secretary shall award grants, on a 
     competitive basis, to eligible local educational agencies 
     that have applications approved under subsection (f)(2) for 
     activities described in subsection (g).
       ``(2) Duration.--The Secretary shall award grants under 
     this subsection for a period of 1 year.
       ``(3) Distribution.--The Secretary shall ensure that grants 
     under this subsection are equitably distributed among the 
     different geographic regions of the United States, and among 
     local educational agencies serving urban and rural areas.
       ``(f) Applications.--
       ``(1) State educational agency.--Each State educational 
     agency desiring assistance under this section shall submit to 
     the Secretary an application at such time, in such manner, 
     and containing such information as the Secretary shall 
     require. The application shall contain a description of--
       ``(A) how the State educational agency will assist eligible 
     local educational agencies in meeting the requirements of 
     this section and in using scientifically based research to 
     implement effective school library media programs; and
       ``(B) the standards and techniques the State educational 
     agency will use to evaluate the quality and impact of 
     activities carried out under this section by eligible local 
     educational agencies to determine the need for technical 
     assistance and whether to continue to provide additional 
     funding to the agencies under this section.
       ``(2) Eligible local educational agency.--Each eligible 
     local educational agency desiring assistance under this 
     section shall submit to the Secretary or State educational 
     agency, as appropriate, an application at such time, in such 
     manner, and containing such information as the Secretary or 
     State educational agency, respectively, shall require. The 
     application shall contain a description of--
       ``(A) a needs assessment relating to the need for school 
     library media improvement, based on the age and condition of 
     school library media resources, including book collections, 
     access of school library media centers to advanced 
     technology, and the availability of well-trained, 
     professionally certified school library media specialists, in 
     schools served by the eligible local educational agency;
       ``(B) the manner in which the eligible local educational 
     agency will use the funds made available through the grant to 
     carry out the activities described in subsection (g);
       ``(C) how the eligible local educational agency will 
     extensively involve school library media specialists, 
     teachers, administrators, and parents in the activities 
     assisted under this section, and the manner in which the 
     eligible local educational agency will carry out the 
     activities described in subsection (g) using programs and 
     materials that are grounded in scientifically based research;
       ``(D) the manner in which the eligible local educational 
     agency will effectively coordinate the funds and activities 
     provided under this section with Federal, State, and local 
     funds and activities under this subpart and other literacy, 
     library, technology, and professional development funds and 
     activities; and
       ``(E) the manner in which the eligible local educational 
     agency will collect and analyze data on the quality and 
     impact of activities carried out under this section by 
     schools served by the eligible local educational agency.
       ``(g) Local Activities.--Funds under this section may be 
     used to--
       ``(1) acquire up-to-date school library media resources, 
     including books;
       ``(2) acquire and use advanced technology, incorporated 
     into the curricula of the school, to develop and enhance the 
     information literacy, information retrieval, and critical 
     thinking skills of students;
       ``(3) facilitate Internet links and other resource-sharing 
     networks among schools and school library media centers, and 
     public and academic libraries, where possible;
       ``(4) provide professional development described in section 
     1222(d)(2) for school library media specialists, and 
     activities that foster increased collaboration between school 
     library media specialists, teachers, and administrators; and
       ``(5) provide students with access to school libraries 
     during nonschool hours, including the hours before and after 
     school, during weekends, and during summer vacation periods.
       ``(h) Accountability and Reporting.--
       ``(1) Local reports.--Each eligible local educational 
     agency that receives funds under this section for a fiscal 
     year shall report to the Secretary or State educational 
     agency, as appropriate, on how the funding was used and the 
     extent to which the availability of, the access to, and the 
     use of, up-to-date school library media resources in the 
     elementary schools and secondary schools served by the 
     eligible local educational agency was increased.
       ``(2) State report.--Each State educational agency that 
     receives funds under this section shall compile the reports 
     received under paragraph (1) and submit the compiled reports 
     to the Secretary.
       ``(i) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds expended to carry out 
     activities relating to library, technology, or professional 
     development activities.
       ``(j) National Activities.--
       ``(1) Evaluations.--From the funds appropriated under 
     section 1002(b)(4) for each fiscal year, the Secretary shall 
     reserve not more than 1 percent for annual, independent, 
     national evaluations of the activities assisted under this 
     section and their impact on improving the reading skills of 
     students. The evaluations shall be conducted not later than 3 
     years after the date of enactment of the No Child Left Behind 
     Act of 2001, and biennially thereafter.
       ``(2) Report to congress.--The Secretary shall transmit the 
     State reports received under subsection (h)(2) and the 
     evaluations conducted under paragraph (1) 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.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

     ``SEC. 1301. PROGRAM PURPOSE.

       ``It is the purpose of this part to assist States to--
       ``(1) support high-quality and comprehensive educational 
     programs for migratory children to help reduce the 
     educational disruptions and other problems that result from 
     repeated moves;
       ``(2) ensure that migratory children who move among the 
     States are not penalized in any manner by disparities among 
     the States in curriculum, graduation requirements, and State 
     academic content and student academic achievement standards;
       ``(3) ensure that migratory children are provided with 
     appropriate educational services (including supportive 
     services) that address their special needs in a coordinated 
     and efficient manner;
       ``(4) ensure that migratory children receive full and 
     appropriate opportunities to meet the same challenging State 
     academic content and student academic achievement standards 
     that all children are expected to meet;

[[Page 25663]]

       ``(5) design programs to help migratory children overcome 
     educational disruption, cultural and language barriers, 
     social isolation, various health-related problems, and other 
     factors that inhibit the ability of such children to do well 
     in school, and to prepare such children to make a successful 
     transition to postsecondary education or employment; and
       ``(6) ensure that migratory children benefit from State and 
     local systemic reforms.

     ``SEC. 1302. PROGRAM AUTHORIZED.

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

     ``SEC. 1303. STATE ALLOCATIONS.

       ``(a) State Allocations.--
       ``(1) Fiscal year 2002.--For fiscal year 2002, each State 
     (other than the Commonwealth of Puerto Rico) is entitled to 
     receive under this part an amount equal to--
       ``(A) the sum of the estimated number of migratory children 
     aged 3 through 21 who reside in the State full time and the 
     full-time equivalent of the estimated number of migratory 
     children aged 3 through 21 who reside in the State part time, 
     as determined in accordance with subsection (e); multiplied 
     by
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     paragraph shall not be less than 32 percent, nor more than 48 
     percent, of the average per-pupil expenditure in the United 
     States.
       ``(2) Subsequent years.--
       ``(A) Base amount.--
       ``(i) In general.--Except as provided in subsection (b) and 
     clause (ii), each State (other than the Commonwealth of 
     Puerto Rico) is entitled to receive under this part, for 
     fiscal year 2003 and succeeding fiscal years, an amount equal 
     to--

       ``(I) the amount that such State received under this part 
     for fiscal year 2002; plus
       ``(II) the amount allocated to the State under subparagraph 
     (B).

       ``(ii) Nonparticipating states.--In the case of a State 
     (other than the Commonwealth of Puerto Rico) that did not 
     receive any funds for fiscal year 2002 under this part, the 
     State shall receive, for fiscal year 2003 and succeeding 
     fiscal years, an amount equal to--

       ``(I) the amount that such State would have received under 
     this part for fiscal year 2002 if its application under 
     section 1304 for the year had been approved; plus
       ``(II) the amount allocated to the State under subparagraph 
     (B).

       ``(B) Allocation of additional amount.--For fiscal year 
     2003 and succeeding fiscal years, the amount (if any) by 
     which the funds appropriated to carry out this part for the 
     year exceed such funds for fiscal year 2002 shall be 
     allocated to a State (other than the Commonwealth of Puerto 
     Rico) so that the State receives an amount equal to--
       ``(i) the sum of--

       ``(I) the number of identified eligible migratory children, 
     aged 3 through 21, residing in the State during the previous 
     year; and
       ``(II) the number of identified eligible migratory 
     children, aged 3 through 21, who received services under this 
     part in summer or intersession programs provided by the State 
     during such year; multiplied by

       ``(ii) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     clause may not be less than 32 percent, or more than 48 
     percent, of the average per-pupil expenditure in the United 
     States.
       ``(b) Allocation to Puerto Rico.--
       ``(1) In general.--For each fiscal year, the grant which 
     the Commonwealth of Puerto Rico shall be eligible to receive 
     under this part shall be the amount determined by multiplying 
     the number of children who would be counted under subsection 
     (a)(1)(A) if such subsection applied to the Commonwealth of 
     Puerto Rico by the product of--
       ``(A) 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
       ``(B) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(2) Minimum percentage.--The percentage in paragraph 
     (1)(A) shall not be less than--
       ``(A) for fiscal year 2002, 77.5 percent;
       ``(B) for fiscal year 2003, 80.0 percent;
       ``(C) for fiscal year 2004, 82.5 percent; and
       ``(D) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(3) Limitation.--If the application of paragraph (2) for 
     any fiscal year would result in any of the 50 States or the 
     District of Columbia receiving less under this part than it 
     received under this part for the preceding fiscal year, then 
     the percentage described in paragraph (1)(A) that is used for 
     the Commonwealth of Puerto Rico for the fiscal year for which 
     the determination is made shall be the greater of the 
     percentage in paragraph (1)(A) for such fiscal year or the 
     percentage used for the preceding fiscal year.
       ``(c) Ratable Reductions; Reallocations.--
       ``(1) In general.--(A) If, after the Secretary reserves 
     funds under section 1308(c), the amount appropriated to carry 
     out this part for any fiscal year is insufficient to pay in 
     full the amounts for which all States are eligible, the 
     Secretary shall ratably reduce each such amount.
       ``(B) If additional funds become available for making such 
     payments for any fiscal year, the Secretary shall allocate 
     such funds to States in amounts that the Secretary determines 
     will best carry out the purpose of this part.
       ``(2) Special rule.--(A) The Secretary shall further reduce 
     the amount of any grant to a State under this part for any 
     fiscal year if the Secretary determines, based on available 
     information on the numbers and needs of migratory children in 
     the State and the program proposed by the State to address 
     such needs, that such amount exceeds the amount required 
     under section 1304.
       ``(B) The Secretary shall reallocate such excess funds to 
     other States whose grants under this part would otherwise be 
     insufficient to provide an appropriate level of services to 
     migratory children, in such amounts as the Secretary 
     determines are appropriate.
       ``(d) Consortium Arrangements.--
       ``(1) In general.--In the case of a State that receives a 
     grant of $1,000,000 or less under this section, the Secretary 
     shall consult with the State educational agency to determine 
     whether consortium arrangements with another State or other 
     appropriate entity would result in delivery of services in a 
     more effective and efficient manner.
       ``(2) Proposals.--Any State, regardless of the amount of 
     such State's allocation, may submit a consortium arrangement 
     to the Secretary for approval.
       ``(3) Approval.--The Secretary shall approve a consortium 
     arrangement under paragraph (1) or (2) if the proposal 
     demonstrates that the arrangement will--
       ``(A) reduce administrative costs or program function costs 
     for State programs; and
       ``(B) make more funds available for direct services to add 
     substantially to the welfare or educational attainment of 
     children to be served under this part.
       ``(e) Determining Numbers of Eligible Children.--In order 
     to determine the estimated number of migratory children 
     residing in each State for purposes of this section, the 
     Secretary shall--
       ``(1) use such information as the Secretary finds most 
     accurately reflects the actual number of migratory children;
       ``(2) develop and implement a procedure for more accurately 
     reflecting cost factors for different types of summer and 
     intersession program designs;
       ``(3) adjust the full-time equivalent number of migratory 
     children who reside in each State to take into account--
       ``(A) the special needs of those children participating in 
     special programs provided under this part that operate during 
     the summer and intersession periods; and
       ``(B) the additional costs of operating such programs; and
       ``(4) conduct an analysis of the options for adjusting the 
     formula so as to better direct services to the child whose 
     education has been interrupted.

     ``SEC. 1304. STATE APPLICATIONS; SERVICES.

       ``(a) Application Required.--Any State desiring to receive 
     a grant under this part for any fiscal year shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require.
       ``(b) Program Information.--Each such application shall 
     include--
       ``(1) a description of how, in planning, implementing, and 
     evaluating programs and projects assisted under this part, 
     the State and its local operating agencies will ensure that 
     the special educational needs of migratory children, 
     including preschool migratory children, are identified and 
     addressed through--
       ``(A) the full range of services that are available for 
     migratory children from appropriate local, State, and Federal 
     educational programs;
       ``(B) joint planning among local, State, and Federal 
     educational programs serving migrant children, including 
     language instruction educational programs under part A or B 
     of title III;
       ``(C) the integration of services available under this part 
     with services provided by those other programs; and
       ``(D) measurable program goals and outcomes;
       ``(2) a description of the steps the State is taking to 
     provide all migratory students with the opportunity to meet 
     the same challenging State academic content standards and 
     challenging State student academic achievement standards that 
     all children are expected to meet;
       ``(3) a description of how the State will use funds 
     received under this part to promote interstate and intrastate 
     coordination of services for migratory children, including 
     how, consistent with procedures the Secretary may require, 
     the State will provide for educational continuity through the 
     timely transfer of pertinent school records, including 
     information on health, when children move from one school to 
     another, whether or not such move occurs during the regular 
     school year;
       ``(4) a description of the State's priorities for the use 
     of funds received under this part, and how such priorities 
     relate to the State's assessment of needs for services in the 
     State;
       ``(5) a description of how the State will determine the 
     amount of any subgrants the State will award to local 
     operating agencies, taking into account the numbers and needs 
     of migratory children, the requirements of subsection (d), 
     and the availability of funds from other Federal, State, and 
     local programs;
       ``(6) such budgetary and other information as the Secretary 
     may require; and


       ``(7) a description of how the State will encourage 
     programs and projects assisted under this part to offer 
     family literacy services if the program or project serves a 
     substantial number of migratory children who

[[Page 25664]]

     have parents who do not have a high school diploma or its 
     recognized equivalent or who have low levels of literacy.
       ``(c) Assurances.--Each such application shall also include 
     assurances, satisfactory to the Secretary, that--
       ``(1) funds received under this part will be used only--
       ``(A) for programs and projects, including the acquisition 
     of equipment, in accordance with section 1306; and
       ``(B) to coordinate such programs and projects with similar 
     programs and projects within the State and in other States, 
     as well as with other Federal programs that can benefit 
     migratory children and their families;
       ``(2) such programs and projects will be carried out in a 
     manner consistent with the objectives of section 1114, 
     subsections (b) and (d) of section 1115, subsections (b) and 
     (c) of section 1120A, and part I;
       ``(3) in the planning and operation of programs and 
     projects at both the State and local agency operating level, 
     there is consultation with parent advisory councils for 
     programs of 1 school year in duration, and that all such 
     programs and projects are carried out--
       ``(A) in a manner that provides for the same parental 
     involvement as is required for programs and projects under 
     section 1118, unless extraordinary circumstances make such 
     provision impractical; and
       ``(B) in a format and language understandable to the 
     parents;
       ``(4) in planning and carrying out such programs and 
     projects, there has been, and will be, adequate provision for 
     addressing the unmet education needs of preschool migratory 
     children;
       ``(5) the effectiveness of such programs and projects will 
     be determined, where feasible, using the same approaches and 
     standards that will be used to assess the performance of 
     students, schools, and local educational agencies under part 
     A;
       ``(6) to the extent feasible, such programs and projects 
     will provide for--
       ``(A) advocacy and outreach activities for migratory 
     children and their families, including informing such 
     children and families of, or helping such children and 
     families gain access to, other education, health, nutrition, 
     and social services;
       ``(B) professional development programs, including 
     mentoring, for teachers and other program personnel;
       ``(C) family literacy programs, including such programs 
     that use models developed under Even Start;
       ``(D) the integration of information technology into 
     educational and related programs; and
       ``(E) programs to facilitate the transition of secondary 
     school students to postsecondary education or employment; and
       ``(7) the State will assist the Secretary in determining 
     the number of migratory children under paragraphs (1)(A) and 
     (2)(B)(i) of section 1303(a), through such procedures as the 
     Secretary may require.
       ``(d) Priority for Services.--In providing services with 
     funds received under this part, each recipient of such funds 
     shall give priority to migratory children who are failing, or 
     most at risk of failing, to meet the State's challenging 
     State academic content standards and challenging State 
     student academic achievement standards, and whose education 
     has been interrupted during the regular school year.
       ``(e) Continuation of Services.--Notwithstanding any other 
     provision of this part--
       ``(1) a child who ceases to be a migratory child during a 
     school term shall be eligible for services until the end of 
     such term;
       ``(2) a child who is no longer a migratory child may 
     continue to receive services for 1 additional school year, 
     but only if comparable services are not available through 
     other programs; and
       ``(3) secondary school students who were eligible for 
     services in secondary school may continue to be served 
     through credit accrual programs until graduation.

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

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

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

       ``(a) Comprehensive Plan.--
       ``(1) In general.--Each State that receives assistance 
     under this part shall ensure that the State and its local 
     operating agencies identify and address the special 
     educational needs of migratory children in accordance with a 
     comprehensive State plan that--
       ``(A) is integrated with other programs under this Act or 
     other Acts, as appropriate;
       ``(B) may be submitted as a part of consolidated 
     application under section 9302, if--
       ``(i) the special needs of migratory children are 
     specifically addressed in the comprehensive State plan;
       ``(ii) the comprehensive State plan is developed in 
     collaboration with parents of migratory children; and
       ``(iii) the comprehensive State planning is not used to 
     supplant State efforts regarding, or administrative funding 
     for, this part;
       ``(C) provides that migratory children will have an 
     opportunity to meet the same challenging State academic 
     content standards and challenging State student academic 
     achievement standards that all children are expected to meet;
       ``(D) specifies measurable program goals and outcomes;
       ``(E) encompasses the full range of services that are 
     available for migratory children from appropriate local, 
     State, and Federal educational programs;
       ``(F) is the product of joint planning among such local, 
     State, and Federal programs, including programs under part A, 
     early childhood programs, and language instruction 
     educational programs under part A or B of title III; and
       ``(G) provides for the integration of services available 
     under this part with services provided by such other 
     programs.
       ``(2) Duration of the plan.--Each such comprehensive 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.
       ``(b) Authorized Activities.--
       ``(1) Flexibility.--In implementing the comprehensive plan 
     described in subsection (a), each State educational agency, 
     where applicable through its local educational agencies, 
     shall have the flexibility to determine the activities to be 
     provided with funds made available under this part, except 
     that such funds first shall be used to meet the identified 
     needs of migratory children that result from their migratory 
     lifestyle, and to permit these children to participate 
     effectively in school.
       ``(2) Unaddressed needs.--Funds provided under this part 
     shall be used to address the needs of migratory children that 
     are not addressed by services available from other Federal or 
     non-Federal programs, except that migratory children who are 
     eligible to receive services under part A may receive those 
     services through funds provided under that part, or through 
     funds under this part that remain after the agency addresses 
     the needs described in paragraph (1).
       ``(3) Construction.--Nothing in this part shall be 
     construed to prohibit a local educational agency from serving 
     migratory children simultaneously with students with similar 
     educational needs in the same educational settings, where 
     appropriate.
       ``(4) Special rule.--Notwithstanding section 1114, a school 
     that receives funds under this part shall continue to address 
     the identified needs described in paragraph (1), and shall 
     meet the special educational needs of migratory children 
     before using funds under this part for schoolwide programs 
     under section 1114.

     ``SEC. 1307. BYPASS.

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

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

       ``(a) Improvement of Coordination.--
       ``(1) In general.--The Secretary, in consultation with the 
     States, may make grants to, or enter into contracts with, 
     State educational agencies, local educational agencies, 
     institutions of higher education, and other public and 
     private nonprofit entities to improve the interstate and 
     intrastate coordination among such agencies' educational 
     programs, including the establishment or improvement of 
     programs for credit accrual and exchange, available to 
     migratory students.
       ``(2) Duration.--Grants under this subsection may be 
     awarded for not more than 5 years.
       ``(b) Student Records.--
       ``(1) Assistance.--The Secretary shall assist States in 
     developing effective methods for the electronic transfer of 
     student records and in determining the number of migratory 
     children in each State.
       ``(2) Information system.--
       ``(A) In general.--The Secretary, in consultation with the 
     States, shall ensure the linkage of migrant student record 
     systems for the purpose of electronically exchanging, among 
     the States, health and educational information regarding all 
     migratory students. The Secretary shall ensure such linkage 
     occurs in a cost-effective manner, utilizing systems used by 
     the States prior to, or developed after, the date of 
     enactment of the No Child Left Behind Act of 2001, and shall 
     determine the minimum data elements that each State receiving 
     funds under this part shall collect and maintain. Such 
     elements may include--
       ``(i) immunization records and other health information;

[[Page 25665]]

       ``(ii) elementary and secondary academic history (including 
     partial credit), credit accrual, and results from State 
     assessments required under section 1111(b);
       ``(iii) other academic information essential to ensuring 
     that migratory children achieve to high standards; and
       ``(iv) eligibility for services under the Individuals with 
     Disabilities Education Act.
       ``(B) Notice and comment.--After consulting with the States 
     under subparagraph (A), the Secretary shall publish a notice 
     in the Federal Register seeking public comment on the 
     proposed data elements that each State receiving funds under 
     this part shall be required to collect for purposes of 
     electronic transfer of migratory student information and the 
     requirements that States shall meet for immediate electronic 
     access to such information. Such publication shall occur not 
     later than 120 days after the date of enactment of the No 
     Child Left Behind Act of 2001.
       ``(3) No cost for certain transfers.--A State educational 
     agency or local educational agency receiving assistance under 
     this part shall make student records available to another 
     State educational agency or local educational agency that 
     requests the records at no cost to the requesting agency, if 
     the request is made in order to meet the needs of a migratory 
     child.
       ``(4) Report to congress.--
       ``(A) In general.--Not later than April 30, 2003, the 
     Secretary shall report to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on 
     Education and the Workforce of the House of Representatives 
     the Secretary's findings and recommendations regarding the 
     maintenance and transfer of health and educational 
     information for migratory students by the States.
       ``(B) Required contents.--The Secretary shall include in 
     such report--
       ``(i) a review of the progress of States in developing and 
     linking electronic records transfer systems;
       ``(ii) recommendations for the development and linkage of 
     such systems; and
       ``(iii) recommendations for measures that may be taken to 
     ensure the continuity of services provided for migratory 
     students.
       ``(c) Availability of Funds.--For the purpose of carrying 
     out this section in any fiscal year, the Secretary shall 
     reserve not more than $10,000,000 of the amount appropriated 
     to carry out this part for such year.
       ``(d) Incentive Grants.--From the amounts made available to 
     carry out this section for any fiscal year, the Secretary may 
     reserve not more than $3,000,000 to award grants of not more 
     than $250,000 on a competitive basis to State educational 
     agencies that propose a consortium arrangement with another 
     State or other appropriate entity that the Secretary 
     determines, pursuant to criteria that the Secretary shall 
     establish, will improve the delivery of services to migratory 
     children whose education is interrupted.
       ``(e) Data Collection.--The Secretary shall direct the 
     National Center for Education Statistics to collect data on 
     migratory children.

     ``SEC. 1309. DEFINITIONS.

       ``As used in this part:
       ``(1) Local operating agency.--The term `local operating 
     agency' means--
       ``(A) a local educational agency to which a State 
     educational agency makes a subgrant under this part;
       ``(B) a public or nonprofit private agency with which a 
     State educational agency or the Secretary makes an 
     arrangement to carry out a project under this part; or
       ``(C) a State educational agency, if the State educational 
     agency operates the State's migrant education program or 
     projects directly.
       ``(2) Migratory child.--The term `migratory child' means a 
     child who is, or whose parent or spouse is, a migratory 
     agricultural worker, including a migratory dairy worker, or a 
     migratory fisher, and who, in the preceding 36 months, in 
     order to obtain, or accompany such parent or spouse, in order 
     to obtain, temporary or seasonal employment in agricultural 
     or fishing work--
       ``(A) has moved from one school district to another;
       ``(B) in a State that is comprised of a single school 
     district, has moved from one administrative area to another 
     within such district; or
       ``(C) resides in a school district of more than 15,000 
     square miles, and migrates a distance of 20 miles or more to 
     a temporary residence to engage in a fishing activity.

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

     ``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

       ``(a) Purpose.--It is the purpose of this part--
       ``(1) to improve educational services for children and 
     youth in local and State institutions for neglected or 
     delinquent children and youth so that such children and youth 
     have the opportunity to meet the same challenging State 
     academic content standards and challenging State student 
     academic achievement standards that all children in the State 
     are expected to meet;
       ``(2) to provide such children and youth with the services 
     needed to make a successful transition from 
     institutionalization to further schooling or employment; and
       ``(3) to prevent at-risk youth from dropping out of school, 
     and to provide dropouts, and children and youth returning 
     from correctional facilities or institutions for neglected or 
     delinquent children and youth, with a support system to 
     ensure their continued education.
       ``(b) Program Authorized.--In order to carry out the 
     purpose of this part and from amounts appropriated under 
     section 1002(d), the Secretary shall make grants to State 
     educational agencies to enable such agencies to award 
     subgrants to State agencies and local educational agencies to 
     establish or improve programs of education for neglected, 
     delinquent, or at-risk children and youth.

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

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

                   ``Subpart 1--State Agency Programs

     ``SEC. 1411. ELIGIBILITY.

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

     ``SEC. 1412. ALLOCATION OF FUNDS.

       ``(a) Subgrants to State Agencies.--
       ``(1) In general.--Each State agency described in section 
     1411 (other than an agency in the Commonwealth of Puerto 
     Rico) is eligible to receive a subgrant under this subpart, 
     for each fiscal year, in an amount equal to the product of--
       ``(A) the number of neglected or delinquent children and 
     youth described in section 1411 who--
       ``(i) are enrolled for at least 15 hours per week in 
     education programs in adult correctional institutions; and
       ``(ii) are enrolled for at least 20 hours per week--

       ``(I) in education programs in institutions for neglected 
     or delinquent children and youth; or
       ``(II) in community day programs for neglected or 
     delinquent children and youth; and

       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     subparagraph shall not be less than 32 percent, nor more than 
     48 percent, of the average per-pupil expenditure in the 
     United States.
       ``(2) Special rule.--The number of neglected or delinquent 
     children and youth determined under paragraph (1) shall--
       ``(A) be determined by the State agency by a deadline set 
     by the Secretary, except that no State agency shall be 
     required to determine the number of such children and youth 
     on a specific date set by the Secretary; and
       ``(B) be adjusted, as the Secretary determines is 
     appropriate, to reflect the relative length of such agency's 
     annual programs.
       ``(b) Subgrants to State Agencies in Puerto Rico.--
       ``(1) In general.--For each fiscal year, the amount of the 
     subgrant which a State agency in the Commonwealth of Puerto 
     Rico shall be eligible to receive under this subpart shall be 
     the amount determined by multiplying the number of children 
     counted under subsection (a)(1)(A) for the Commonwealth of 
     Puerto Rico by the product of--
       ``(A) 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
       ``(B) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(2) Minimum percentage.--The percentage in paragraph 
     (1)(A) shall not be less than--
       ``(A) for fiscal year 2002, 77.5 percent;
       ``(B) for fiscal year 2003, 80.0 percent;
       ``(C) for fiscal year 2004, 82.5 percent; and
       ``(D) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(3) Limitation.--If the application of paragraph (2) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this subpart than it received 
     under this subpart for the preceding fiscal year, then the 
     percentage described in paragraph (1)(A) that is used for the 
     Commonwealth of Puerto Rico for the fiscal year for which the 
     determination is made shall be the greater of--
       ``(A) the percentage in paragraph (1)(A) for such fiscal 
     year; or
       ``(B) the percentage used for the preceding fiscal year.
       ``(c) Ratable Reductions in Case of Insufficient 
     Appropriations.--If the amount appropriated for any fiscal 
     year for subgrants under subsections (a) and (b) is 
     insufficient to pay the full amount for which all State 
     agencies are eligible under such subsections, the Secretary 
     shall ratably reduce each such amount.

     ``SEC. 1413. STATE REALLOCATION OF FUNDS.

       ``If a State educational agency determines that a State 
     agency does not need the full amount of the subgrant for 
     which such State agency is eligible under this subpart for 
     any fiscal year, the State educational agency may reallocate 
     the amount that will not be needed to

[[Page 25666]]

     other eligible State agencies that need additional funds to 
     carry out the purpose of this part, in such amounts as the 
     State educational agency shall determine.

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

       ``(a) State Plan.--
       ``(1) In general.--Each State educational agency that 
     desires to receive a grant under this subpart shall submit, 
     for approval by the Secretary, a plan--
       ``(A) for meeting the educational needs of neglected, 
     delinquent, and at-risk children and youth;
       ``(B) for assisting in the transition of children and youth 
     from correctional facilities to locally operated programs; 
     and
       ``(C) that is integrated with other programs under this Act 
     or other Acts, as appropriate.
       ``(2) Contents.--Each such State plan shall--
       ``(A) describe the program goals, objectives, and 
     performance measures established by the State that will be 
     used to assess the effectiveness of the program in improving 
     the academic, vocational, and technical skills of children in 
     the program;
       ``(B) provide that, to the extent feasible, such children 
     will have the same opportunities to achieve as such children 
     would have if such children were in the schools of local 
     educational agencies in the State; and
       ``(C) contain an assurance that the State educational 
     agency will--
       ``(i) ensure that programs assisted under this subpart will 
     be carried out in accordance with the State plan described in 
     this subsection;
       ``(ii) carry out the evaluation requirements of section 
     1431;
       ``(iii) ensure that the State agencies receiving subgrants 
     under this subpart comply with all applicable statutory and 
     regulatory requirements; and
       ``(iv) provide such other information as the Secretary may 
     reasonably require.
       ``(3) Duration of the plan.--Each such 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.
       ``(b) Secretarial Approval and Peer Review.--
       ``(1) Secretarial approval.--The Secretary shall approve 
     each State plan that meets the requirements of this subpart.
       ``(2) Peer review.--The Secretary may review any State plan 
     with the assistance and advice of individuals with relevant 
     expertise.
       ``(c) State Agency Applications.--Any State agency that 
     desires to receive funds to carry out a program under this 
     subpart shall submit an application to the State educational 
     agency that--
       ``(1) describes the procedures to be used, consistent with 
     the State plan under section 1111, to assess the educational 
     needs of the children to be served under this subpart;
       ``(2) provide an assurance that in making services 
     available to children and youth in adult correctional 
     institutions, priority will be given to such children and 
     youth who are likely to complete incarceration within a 2-
     year period;
       ``(3) describes the program, including a budget for the 
     first year of the program, with annual updates to be provided 
     to the State educational agency;
       ``(4) describes how the program will meet the goals and 
     objectives of the State plan;
       ``(5) describes how the State agency will consult with 
     experts and provide the necessary training for appropriate 
     staff, to ensure that the planning and operation of 
     institution-wide projects under section 1416 are of high 
     quality;
       ``(6) describes how the State agency will carry out the 
     evaluation requirements of section 9601 and how the results 
     of the most recent evaluation will be used to plan and 
     improve the program;
       ``(7) includes data showing that the State agency has 
     maintained the fiscal effort required of a local educational 
     agency, in accordance with section 9521;
       ``(8) describes how the programs will be coordinated with 
     other appropriate State and Federal programs, such as 
     programs under title I of Public Law 105-220, vocational and 
     technical education programs, State and local dropout 
     prevention programs, and special education programs;
       ``(9) describes how the State agency will encourage 
     correctional facilities receiving funds under this subpart to 
     coordinate with local educational agencies or alternative 
     education programs attended by incarcerated children and 
     youth prior to their incarceration to ensure that student 
     assessments and appropriate academic records are shared 
     jointly between the correctional facility and the local 
     educational agency or alternative education program;
       ``(10) describes how appropriate professional development 
     will be provided to teachers and other staff;
       ``(11) designates an individual in each affected 
     correctional facility or institution for neglected or 
     delinquent children and youth to be responsible for issues 
     relating to the transition of children and youth from such 
     facility or institution to locally operated programs;
       ``(12) describes how the State agency will endeavor to 
     coordinate with businesses for training and mentoring for 
     participating children and youth;
       ``(13) provides an assurance that the State agency will 
     assist in locating alternative programs through which 
     students can continue their education if the students are not 
     returning to school after leaving the correctional facility 
     or institution for neglected or delinquent children and 
     youth;
       ``(14) provides assurances that the State agency will work 
     with parents to secure parents' assistance in improving the 
     educational achievement of their children and youth, and 
     preventing their children's and youth's further involvement 
     in delinquent activities;
       ``(15) provides an assurance that the State agency will 
     work with children and youth with disabilities in order to 
     meet an existing individualized education program and an 
     assurance that the agency will notify the child's or youth's 
     local school if the child or youth--
       ``(A) is identified as in need of special education 
     services while the child or youth is in the correctional 
     facility or institution for neglected or delinquent children 
     and youth; and
       ``(B) intends to return to the local school;
       ``(16) provides an assurance that the State agency will 
     work with children and youth who dropped out of school before 
     entering the correctional facility or institution for 
     neglected or delinquent children and youth to encourage the 
     children and youth to reenter school once the term of the 
     incarceration is completed or provide the child or youth with 
     the skills necessary to gain employment, continue the 
     education of the child or youth, or achieve a secondary 
     school diploma or its recognized equivalent if the child or 
     youth does not intend to return to school;
       ``(17) provides an assurance that teachers and other 
     qualified staff are trained to work with children and youth 
     with disabilities and other students with special needs 
     taking into consideration the unique needs of such students;
       ``(18) describes any additional services to be provided to 
     children and youth, such as career counseling, distance 
     learning, and assistance in securing student loans and 
     grants; and
       ``(19) provides an assurance that the program under this 
     subpart will be coordinated with any programs operated under 
     the Juvenile Justice and Delinquency Prevention Act of 1974 
     (42 U.S.C. 5601 et seq.) or other comparable programs, if 
     applicable.

     ``SEC. 1415. USE OF FUNDS.

       ``(a) Uses.--
       ``(1) In general.--A State agency shall use funds received 
     under this subpart only for programs and projects that--
       ``(A) are consistent with the State plan under section 
     1414(a); and
       ``(B) concentrate on providing participants with the 
     knowledge and skills needed to make a successful transition 
     to secondary school completion, vocational or technical 
     training, further education, or employment.
       ``(2) Programs and projects.--Such programs and projects--
       ``(A) may include the acquisition of equipment;
       ``(B) shall be designed to support educational services 
     that--
       ``(i) except for institution-wide projects under section 
     1416, are provided to children and youth identified by the 
     State agency as failing, or most at-risk of failing, to meet 
     the State's challenging academic content standards and 
     student academic achievement standards;
       ``(ii) supplement and improve the quality of the 
     educational services provided to such children and youth by 
     the State agency; and
       ``(iii) afford such children and youth an opportunity to 
     meet challenging State academic achievement standards;
       ``(C) shall be carried out in a manner consistent with 
     section 1120A and part I (as applied to programs and projects 
     under this part); and
       ``(D) may include the costs of meeting the evaluation 
     requirements of section 9601.
       ``(b) Supplement, Not Supplant.--A program under this 
     subpart that supplements the number of hours of instruction 
     students receive from State and local sources shall be 
     considered to comply with the supplement, not supplant 
     requirement of section 1120A (as applied to this part) 
     without regard to the subject areas in which instruction is 
     given during those hours.

     ``SEC. 1416. INSTITUTION-WIDE PROJECTS.

       ``A State agency that provides free public education for 
     children and youth in an institution for neglected or 
     delinquent children and youth (other than an adult 
     correctional institution) or attending a community-day 
     program for such children and youth may use funds received 
     under this subpart to serve all children in, and upgrade the 
     entire educational effort of, that institution or program if 
     the State agency has developed, and the State educational 
     agency has approved, a comprehensive plan for that 
     institution or program that--
       ``(1) provides for a comprehensive assessment of the 
     educational needs of all children and youth in the 
     institution or program serving juveniles;
       ``(2) provides for a comprehensive assessment of the 
     educational needs of youth aged 20 and younger in adult 
     facilities who are expected to complete incarceration within 
     a 2-year period;
       ``(3) describes the steps the State agency has taken, or 
     will take, to provide all children and youth under age 21 
     with the opportunity to meet challenging State academic 
     content standards and student academic achievement standards 
     in order to improve the likelihood that the children and 
     youth will complete secondary school, attain a secondary 
     diploma or its recognized equivalent, or find employment 
     after leaving the institution;
       ``(4) describes the instructional program, pupil services, 
     and procedures that will be used to meet the needs described 
     in paragraph (1), including, to the extent feasible, the 
     provision of

[[Page 25667]]

     mentors for the children and youth described in paragraph 
     (1);
       ``(5) specifically describes how such funds will be used;
       ``(6) describes the measures and procedures that will be 
     used to assess student progress;
       ``(7) describes how the agency has planned, and will 
     implement and evaluate, the institution-wide or program-wide 
     project in consultation with personnel providing direct 
     instructional services and support services in institutions 
     or community-day programs for neglected or delinquent 
     children and youth, and with personnel from the State 
     educational agency; and
       ``(8) includes an assurance that the State agency has 
     provided for appropriate training for teachers and other 
     instructional and administrative personnel to enable such 
     teachers and personnel to carry out the project effectively.

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

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

     ``SEC. 1418. TRANSITION SERVICES.

       ``(a) Transition Services.--Each State agency shall reserve 
     not less than 15 percent and not more than 30 percent of the 
     amount such agency receives under this subpart for any fiscal 
     year to support--
       ``(1) projects that facilitate the transition of children 
     and youth from State-operated institutions to schools served 
     by local educational agencies; or
       ``(2) the successful reentry of youth offenders, who are 
     age 20 or younger and have received a secondary school 
     diploma or its recognized equivalent, into postsecondary 
     education, or vocational and technical training programs, 
     through strategies designed to expose the youth to, and 
     prepare the youth for, postsecondary education, or vocational 
     and technical training programs, such as--
       ``(A) preplacement programs that allow adjudicated or 
     incarcerated youth to audit or attend courses on college, 
     university, or community college campuses, or through 
     programs provided in institutional settings;
       ``(B) worksite schools, in which institutions of higher 
     education and private or public employers partner to create 
     programs to help students make a successful transition to 
     postsecondary education and employment; and
       ``(C) essential support services to ensure the success of 
     the youth, such as--
       ``(i) personal, vocational and technical, and academic, 
     counseling;
       ``(ii) placement services designed to place the youth in a 
     university, college, or junior college program;
       ``(iii) information concerning, and assistance in 
     obtaining, available student financial aid;
       ``(iv) counseling services; and
       ``(v) job placement services.
       ``(b) Conduct of Projects.--A project supported under this 
     section may be conducted directly by the State agency, or 
     through a contract or other arrangement with one or more 
     local educational agencies, other public agencies, or private 
     nonprofit organizations.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit a school that receives funds under 
     subsection (a) from serving neglected and delinquent children 
     and youth simultaneously with students with similar 
     educational needs, in the same educational settings where 
     appropriate.

     ``SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL MODEL 
                   PROGRAM.

       ``The Secretary may reserve not more than 2.5 percent of 
     the amount made available to carry out this subpart for a 
     fiscal year--
       ``(1) to develop a uniform model to evaluate the 
     effectiveness of programs assisted under this subpart; and
       ``(2) to provide technical assistance to and support the 
     capacity building of State agency programs assisted under 
     this subpart.

                   ``Subpart 2--Local Agency Programs

     ``SEC. 1421. PURPOSE.

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

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

       ``(a) Local Subgrants.--With funds made available under 
     section 1402(b), the State educational agency shall award 
     subgrants to local educational agencies with high numbers or 
     percentages of children and youth residing in locally 
     operated (including county operated) correctional facilities 
     for children and youth (including facilities involved in 
     community day programs).
       ``(b) Special Rule.--A local educational agency that serves 
     a school operated by a correctional facility is not required 
     to operate a program of support for children and youth 
     returning from such school to a school that is not operated 
     by a correctional agency but served by such local educational 
     agency, if more than 30 percent of the children and youth 
     attending the school operated by the correctional facility 
     will reside outside the boundaries served by the local 
     educational agency after leaving such facility.
       ``(c) Notification.--A State educational agency shall 
     notify local educational agencies within the State of the 
     eligibility of such agencies to receive a subgrant under this 
     subpart.
       ``(d) Transitional and Academic Services.--Transitional and 
     supportive programs operated in local educational agencies 
     under this subpart shall be designed primarily to meet the 
     transitional and academic needs of students returning to 
     local educational agencies or alternative education programs 
     from correctional facilities. Services to students at-risk of 
     dropping out of school shall not have a negative impact on 
     meeting the transitional and academic needs of the students 
     returning from correctional facilities.

     ``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

       ``Each local educational agency desiring assistance under 
     this subpart shall submit an application to the State 
     educational agency that contains such information as the 
     State educational agency may require. Each such application 
     shall include--
       ``(1) a description of the program to be assisted;
       ``(2) a description of formal agreements, regarding the 
     program to be assisted, between--
       ``(A) the local educational agency; and
       ``(B) correctional facilities and alternative school 
     programs serving children and youth involved with the 
     juvenile justice system;
       ``(3) as appropriate, a description of how participating 
     schools will coordinate with facilities working with 
     delinquent children and youth to ensure that such children 
     and youth are participating in an education program 
     comparable to one operating in the local school such youth 
     would attend;
       ``(4) a description of the program operated by 
     participating schools for children and youth returning from 
     correctional facilities and, as appropriate, the types of 
     services that such schools will provide such children and 
     youth and other at-risk children and youth;
       ``(5) a description of the characteristics (including 
     learning difficulties, substance abuse problems, and other 
     special needs) of the children and youth who will be 
     returning from correctional facilities and, as appropriate, 
     other at-risk children and youth expected to be served by the 
     program, and a description of how the school will coordinate 
     existing educational programs to meet the unique educational 
     needs of such children and youth;
       ``(6) as appropriate, a description of how schools will 
     coordinate with existing social, health, and other services 
     to meet the needs of students returning from correctional 
     facilities, at-risk children or youth, and other 
     participating children or youth, including prenatal health 
     care and nutrition services related to the health of the 
     parent and the child or youth, parenting and child 
     development classes, child care, targeted reentry and 
     outreach programs, referrals to community resources, and 
     scheduling flexibility;
       ``(7) as appropriate, a description of any partnerships 
     with local businesses to develop training, curriculum-based 
     youth entrepreneurship education, and mentoring services for 
     participating students;
       ``(8) as appropriate, a description of how the program will 
     involve parents in efforts to improve the educational 
     achievement of their children, assist in dropout prevention 
     activities, and prevent the involvement of their children in 
     delinquent activities;
       ``(9) a description of how the program under this subpart 
     will be coordinated with other Federal, State, and local 
     programs, such as programs under title I of Public Law 105-
     220 and vocational and technical education programs serving 
     at-risk children and youth;
       ``(10) a description of how the program will be coordinated 
     with programs operated under the Juvenile Justice and 
     Delinquency Prevention Act of 1974 and other comparable 
     programs, if applicable;
       ``(11) as appropriate, a description of how schools will 
     work with probation officers to assist in meeting the needs 
     of children and youth returning from correctional facilities;
       ``(12) a description of the efforts participating schools 
     will make to ensure correctional facilities working with 
     children and youth are aware of a child's or youth's existing 
     individualized education program; and
       ``(13) as appropriate, a description of the steps 
     participating schools will take to find alternative 
     placements for children and youth interested in continuing 
     their education but unable to participate in a regular public 
     school program.

     ``SEC. 1424. USES OF FUNDS.

       ``Funds provided to local educational agencies under this 
     subpart may be used, as appropriate, for--
       ``(1) programs that serve children and youth returning to 
     local schools from correctional facilities, to assist in the 
     transition of such children and youth to the school 
     environment and help them remain in school in order to 
     complete their education;
       ``(2) dropout prevention programs which serve at-risk 
     children and youth, including pregnant and parenting teens, 
     children and youth who have come in contact with the juvenile 
     justice system, children and youth at least 1 year behind 
     their expected grade level, migrant youth, immigrant youth, 
     students with limited English proficiency, and gang members;

[[Page 25668]]

       ``(3) the coordination of health and social services for 
     such individuals if there is a likelihood that the provision 
     of such services, including day care, drug and alcohol 
     counseling, and mental health services, will improve the 
     likelihood such individuals will complete their education;
       ``(4) special programs to meet the unique academic needs of 
     participating children and youth, including vocational and 
     technical education, special education, career counseling, 
     curriculum-based youth entrepreneurship education, and 
     assistance in securing student loans or grants for 
     postsecondary education; and
       ``(5) programs providing mentoring and peer mediation.

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

       ``Each correctional facility entering into an agreement 
     with a local educational agency under section 1423(2) to 
     provide services to children and youth under this subpart 
     shall--
       ``(1) where feasible, ensure that educational programs in 
     the correctional facility are coordinated with the student's 
     home school, particularly with respect to a student with an 
     individualized education program under part B of the 
     Individuals with Disabilities Education Act;
       ``(2) if the child or youth is identified as in need of 
     special education services while in the correctional 
     facility, notify the local school of the child or youth of 
     such need;
       ``(3) where feasible, provide transition assistance to help 
     the child or youth stay in school, including coordination of 
     services for the family, counseling, assistance in accessing 
     drug and alcohol abuse prevention programs, tutoring, and 
     family counseling;
       ``(4) provide support programs that encourage children and 
     youth who have dropped out of school to reenter school once 
     their term at the correctional facility has been completed, 
     or provide such children and youth with the skills necessary 
     to gain employment or seek a secondary school diploma or its 
     recognized equivalent;
       ``(5) work to ensure that the correctional facility is 
     staffed with teachers and other qualified staff who are 
     trained to work with children and youth with disabilities 
     taking into consideration the unique needs of such children 
     and youth;
       ``(6) ensure that educational programs in the correctional 
     facility are related to assisting students to meet high 
     academic achievement standards;
       ``(7) to the extent possible, use technology to assist in 
     coordinating educational programs between the correctional 
     facility and the community school;
       ``(8) where feasible, involve parents in efforts to improve 
     the educational achievement of their children and prevent the 
     further involvement of such children in delinquent 
     activities;
       ``(9) coordinate funds received under this subpart with 
     other local, State, and Federal funds available to provide 
     services to participating children and youth, such as funds 
     made available under title I of Public Law 105-220, and 
     vocational and technical education funds;
       ``(10) coordinate programs operated under this subpart with 
     activities funded under the Juvenile Justice and Delinquency 
     Prevention Act of 1974 and other comparable programs, if 
     applicable; and
       ``(11) if appropriate, work with local businesses to 
     develop training, curriculum-based youth entrepreneurship 
     education, and mentoring programs for children and youth.

     ``SEC. 1426. ACCOUNTABILITY.

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

                    ``Subpart 3--General Provisions

     ``SEC. 1431. PROGRAM EVALUATIONS.

       ``(a) Scope of Evaluation.--Each State agency or local 
     educational agency that conducts a program under subpart 1 or 
     2 shall evaluate the program, disaggregating data on 
     participation by gender, race, ethnicity, and age, not less 
     than once every 3 years, to determine the program's impact on 
     the ability of participants--
       ``(1) to maintain and improve educational achievement;
       ``(2) to accrue school credits that meet State requirements 
     for grade promotion and secondary school graduation;
       ``(3) to make the transition to a regular program or other 
     education program operated by a local educational agency;
       ``(4) to complete secondary school (or secondary school 
     equivalency requirements) and obtain employment after leaving 
     the correctional facility or institution for neglected or 
     delinquent children and youth; and
       ``(5) as appropriate, to participate in postsecondary 
     education and job training programs.
       ``(b) Exception.--The disaggregation required under 
     subsection (a) 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 personally identifiable information about an 
     individual student.
       ``(c) Evaluation Measures.--In conducting each evaluation 
     under subsection (a), a State agency or local educational 
     agency shall use multiple and appropriate measures of student 
     progress.
       ``(d) Evaluation Results.--Each State agency and local 
     educational agency shall--
       ``(1) submit evaluation results to the State educational 
     agency and the Secretary; and
       ``(2) use the results of evaluations under this section to 
     plan and improve subsequent programs for participating 
     children and youth.

     ``SEC. 1432. DEFINITIONS.

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

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

     ``SEC. 1501. EVALUATIONS.

       ``(a) National Assessment of Title I.--
       ``(1) In general.--The Secretary shall conduct a national 
     assessment of the programs assisted under this title and the 
     impact of this title on States, local educational agencies, 
     schools, and students.
       ``(2) Issues to be examined.--In conducting the assessment 
     under this subsection, the Secretary shall examine, at a 
     minimum, the following:
       ``(A) The implementation of programs assisted under this 
     title and the impact of such implementation on increasing 
     student academic achievement (particularly in schools with 
     high concentrations of children living in poverty), relative 
     to the goal of all students reaching the proficient level of 
     achievement based on State academic assessments, challenging 
     State academic content standards, and challenging State 
     student academic achievement standards under section 1111.
       ``(B) The types of programs and services that have 
     demonstrated the greatest likelihood of helping students 
     reach the proficient and advanced levels of achievement based 
     on State student academic achievement standards and State 
     academic content standards.
       ``(C) The implementation of State academic standards, 
     assessments, and accountability systems developed under this 
     title, including--
       ``(i) the time and cost required for the development of 
     academic assessments for students in grades 3 through 8;
       ``(ii) how well such State assessments meet the 
     requirements for assessments described in this title; and
       ``(iii) the impact of such standards, assessments, and 
     accountability systems on educational programs and 
     instruction at the local level.
       ``(D) Each State's definition of adequate yearly progress, 
     including--
       ``(i) the impact of applying this definition to schools, 
     local educational agencies, and the States;
       ``(ii) the number of schools and local educational agencies 
     not meeting this definition; and
       ``(iii) the changes in the identification of schools in 
     need of improvement as a result of such definition.
       ``(E) How schools, local educational agencies, and States 
     have--
       ``(i) publicized and disseminated the local educational 
     agency report cards required under section 1111(b) to 
     teachers, school staff, students, parents, and the community;
       ``(ii) used funds made available under this title to 
     provide preschool and family literacy services and the impact 
     of these services on students' school readiness;
       ``(iii) implemented the provisions of section 1118 and 
     afforded parents meaningful opportunities to be involved in 
     the education of their children;
       ``(iv) used Federal, State, and local educational agency 
     funds and resources to support schools and provide technical 
     assistance to improve the achievement of students in low-
     performing schools, including the impact of the technical 
     assistance on such achievement; and
       ``(v) used State educational agency and local educational 
     agency funds and resources to help

[[Page 25669]]

     schools in which 50 percent or more of the students are from 
     families with incomes below the poverty line meet the 
     requirement described in section 1119 of having all teachers 
     highly qualified not later than the end of the 2005-2006 
     school year
       ``(F) The implementation of schoolwide programs and 
     targeted assistance programs under this title and the impact 
     of such programs on improving student academic achievement, 
     including the extent to which schools meet the requirements 
     of such programs.
       ``(G) The extent to which varying models of comprehensive 
     school reform are funded and implemented under this title, 
     and the effect of the implementation of such models on 
     improving achievement of disadvantaged students.
       ``(H) The costs as compared to the benefits of the 
     activities assisted under this title.
       ``(I) The extent to which actions authorized under section 
     1116 are implemented by State educational agencies and local 
     educational agencies to improve the academic achievement of 
     students in low-performing schools, and the effectiveness of 
     the implementation of such actions, including the following:
       ``(i) The number of schools identified for school 
     improvement and how many years the schools remain in this 
     status.
       ``(ii) The types of support provided by the State 
     educational agencies and local educational agencies to 
     schools and local educational agencies respectively 
     identified as in need of improvement, and the impact of such 
     support on student achievement.
       ``(iii) The number of parents who take advantage of the 
     public school choice provisions of this title, the costs 
     (including transportation costs) associated with implementing 
     these provisions, the implementation of these provisions, and 
     the impact of these provisions (including the impact of 
     attending another school) on student achievement.
       ``(iv) The number of parents who choose to take advantage 
     of the supplemental services option, the criteria used by the 
     States to determine the quality of providers, the kinds of 
     services that are available and utilized, the costs 
     associated with implementing this option, and the impact of 
     receiving supplemental services on student achievement.
       ``(v) The implementation and impact of actions that are 
     taken with regard to schools and local educational agencies 
     identified for corrective action and restructuring.
       ``(J) The extent to which State and local fiscal accounting 
     requirements under this title affect the flexibility of 
     schoolwide programs.
       ``(K) The implementation and impact of the professional 
     development activities assisted under this title and title II 
     on instruction, student academic achievement, and teacher 
     qualifications.
       ``(L) The extent to which the assistance made available 
     under this title, including funds under section 1002, is 
     targeted to disadvantaged students, schools, and local 
     educational agencies with the greatest need.
       ``(M) The effectiveness of Federal administration 
     assistance made available under this title, including 
     monitoring and technical assistance.
       ``(N) The academic achievement of the groups of students 
     described in section 1111(b)(2)(C)(v)(II).
       ``(O) Such other issues as the Secretary considers 
     appropriate.
       ``(3) Sources of information.--In conducting the assessment 
     under this subsection, the Secretary shall use information 
     from a variety of sources, including the National Assessment 
     of Educational Progress (carried out under section 411 of the 
     National Education Statistics Act of 1994), State 
     evaluations, and other research studies.
       ``(4) Coordination.--In carrying out this subsection, the 
     Secretary shall--
       ``(A) coordinate the national assessment under this 
     subsection with the longitudinal study described in 
     subsection (c); and
       ``(B) ensure that the independent review panel described in 
     subsection (d) participates in conducting the national 
     assessment under this subsection, including planning for and 
     reviewing the assessment.
       ``(5) Developmentally appropriate measures.--In conducting 
     the national assessment under this subsection, the Secretary 
     shall use developmentally appropriate measures to assess 
     student academic achievement.
       ``(6) Reports.--
       ``(A) Interim report.--Not later than 3 years after the 
     date of enactment of the No Child Left Behind Act of 2001, 
     the Secretary shall transmit to the President, the Committee 
     on Education and the Workforce of the House of 
     Representatives, and the Committee on Health, Education, 
     Labor, and Pensions of the Senate an interim report on the 
     national assessment conducted under this subsection.
       ``(B) Final report.--Not later than 5 years after the date 
     of enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall transmit to the President, 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 final report on the national assessment 
     conducted under this subsection.
       ``(b) Studies and Data Collection.--
       ``(1) In general.--In addition to other activities 
     described in this section, the Secretary may, directly or 
     through awarding grants to or entering into contracts with 
     appropriate entities--
       ``(A) assess the implementation and effectiveness of 
     programs under this title;
       ``(B) collect the data necessary to comply with the 
     Government Performance and Results Act of 1993; and
       ``(C) provide guidance and technical assistance to State 
     educational agencies and local educational agencies in 
     developing and maintaining management information systems 
     through which such agencies may develop program performance 
     indicators to improve services and performance.
       ``(2) Minimum information.--In carrying out this 
     subsection, the Secretary shall collect, at a minimum, trend 
     information on the effect of each program authorized under 
     this title, which shall complement the data collected and 
     reported under subsections (a) and (c).
       ``(c) National Longitudinal Study.--
       ``(1) In general.--The Secretary shall conduct a 
     longitudinal study of schools receiving assistance under part 
     A.
       ``(2) Issues to be examined.--In carrying out this 
     subsection, the Secretary shall ensure that the study 
     referred to in paragraph (1) provides Congress and educators 
     with each of the following:
       ``(A) An accurate description and analysis of the short- 
     and long-term effect of the assistance made available under 
     this title on academic achievement.
       ``(B) Information that can be used to improve the 
     effectiveness of the assistance made available under this 
     title in enabling students to meet challenging academic 
     achievement standards.
       ``(C) An analysis of educational practices or model 
     programs that are effective in improving the achievement of 
     disadvantaged children.
       ``(D) An analysis of the costs as compared to the benefits 
     of the assistance made available under this title in 
     improving the achievement of disadvantaged children.
       ``(E) An analysis of the effects of the availability of 
     school choice options under section 1116 on the academic 
     achievement of disadvantaged students, on schools in school 
     improvement, and on schools from which students have 
     transferred under such options.
       ``(F) Such other information as the Secretary considers 
     appropriate.
       ``(3) Scope.--In conducting the study referred to in 
     paragraph (1), the Secretary shall ensure that the study--
       ``(A) bases its analysis on a nationally representative 
     sample of schools participating in programs under this title;
       ``(B) to the extent practicable, includes in its analysis 
     students who transfer to different schools during the course 
     of the study; and
       ``(C) analyzes varying models or strategies for delivering 
     school services, including--
       ``(i) schoolwide and targeted services; and
       ``(ii) comprehensive school reform models.
       ``(d) Independent Review Panel.--
       ``(1) In general.--The Secretary shall establish an 
     independent review panel (in this subsection referred to as 
     the `Review Panel') to advise the Secretary on methodological 
     and other issues that arise in carrying out subsections (a) 
     and (c).
       ``(2) Appointment of members.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall appoint members of the Review Panel from 
     among qualified individuals who are--
       ``(i) specialists in statistics, evaluation, research, and 
     assessment;
       ``(ii) education practitioners, including teachers, 
     principals, and local and State superintendents;
       ``(iii) parents and members of local school boards or other 
     organizations involved with the implementation and operation 
     of programs under this title; and
       ``(iv) other individuals with technical expertise who will 
     contribute to the overall rigor and quality of the program 
     evaluation.
       ``(B) Limitations.--In appointing members of the Review 
     Panel, the Secretary shall ensure that--
       ``(i) in order to ensure diversity, the Review Panel 
     includes individuals appointed under subparagraph (A)(i) who 
     represent disciplines or programs outside the field of 
     education; and
       ``(ii) the total number of the individuals appointed under 
     subparagraph (A)(ii) or (A)(iv) does not exceed \1/4\ of the 
     total number of the individuals appointed under this 
     paragraph.
       ``(3) Functions.--The Review Panel shall consult with and 
     advise the Secretary--
       ``(A) to ensure that the assessment conducted under 
     subsection (a) and the study conducted under subsection (c)--
       ``(i) adhere to the highest possible standards of quality 
     with respect to research design, statistical analysis, and 
     the dissemination of findings; and
       ``(ii) use valid and reliable measures to document program 
     implementation and impacts; and
       ``(B) to ensure--
       ``(i) that the final report described in subsection 
     (a)(6)(B) is reviewed not later than 120 days after its 
     completion by not less than 2 independent experts in program 
     evaluation (who may be from among the members of the Review 
     Panel appointed under paragraph (2));
       ``(ii) that such experts evaluate and comment on the degree 
     to which the report complies with subsection (a); and
       ``(iii) that the comments of such experts are transmitted 
     with the report under subsection (a)(6)(B).

     ``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

       ``(a) In General.--From the funds appropriated for any 
     fiscal year under section 1002(e)(1), the Secretary may award 
     grants to State educational agencies, local educational 
     agencies, other public agencies, nonprofit organizations, 
     public or private partnerships involving business and 
     industry organizations, and

[[Page 25670]]

     consortia of such entities to carry out demonstration 
     projects that show the most promise of enabling children 
     served under this title to meet challenging State academic 
     content standards and challenging State student academic 
     achievement standards.
       ``(b) Evaluation.--The Secretary shall evaluate the 
     demonstration projects supported under this title, using 
     rigorous methodological designs and techniques, including 
     control groups and random assignment, to the extent feasible, 
     to produce reliable evidence of effectiveness.
       ``(c) Partnerships.--From funds appropriated under section 
     1002(e)(1) for any fiscal year, the Secretary may, directly 
     or through grants or contracts, work in partnership with 
     State educational agencies, local educational agencies, other 
     public agencies, and nonprofit organizations to disseminate 
     and use the highest quality research and knowledge about 
     effective practices to improve the quality of teaching and 
     learning in schools assisted under this title.

     ``SEC. 1503. ASSESSMENT EVALUATION.

       ``(a) In General.--The Secretary shall conduct an 
     independent study of assessments used for State 
     accountability purposes and for making decisions about the 
     promotion and graduation of students. Such research shall be 
     conducted over a period not to exceed 5 years and shall 
     address the components described in subsection (d).
       ``(b) Contract Authorized.--The Secretary is authorized to 
     award a contract, through a peer review process, to an 
     organization or entity capable of conducting rigorous, 
     independent research. The Assistant Secretary of Educational 
     Research and Improvement shall appoint peer reviewers to 
     evaluate the applications for this contract.
       ``(c) Study.--The study shall--
       ``(1) synthesize and analyze existing research that meets 
     standards of quality and scientific rigor; and
       ``(2) evaluate academic assessment and accountability 
     systems in State educational agencies, local educational 
     agencies, and schools; and
       ``(3) make recommendations to the Department and to the 
     Committee on Education and the Workforce of the United States 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the United States Senate, 
     based on the findings of the study.
       ``(d) Components of the Research Program.--The study 
     described in subsection (a) shall examine--
       ``(1) the effect of the assessment and accountability 
     systems described in section (c) on students, teachers, 
     parents, families, schools, school districts, and States, 
     including correlations between such systems and--
       ``(A) student academic achievement, progress to the State-
     defined level of proficiency, and progress toward closing 
     achievement gaps, based on independent measures;
       ``(B) changes in course offerings, teaching practices, 
     course content, and instructional material;
       ``(C) changes in turnover rates among teachers, principals, 
     and pupil-services personnel;
       ``(D) changes in dropout, grade-retention, and graduation 
     rates for students; and
       ``(E) such other effects as may be appropriate;
       ``(2) the effect of the academic assessments on students 
     with disabilities;
       ``(3) the effect of the academic assessments on low, 
     middle, and high socioeconomic status students, limited and 
     nonlimited English proficient students, racial and ethnic 
     minority students, and nonracial or nonethnic minority 
     students;
       ``(4) guidelines for assessing the validity, reliability, 
     and consistency of those systems using nationally recognized 
     professional and technical standards; and
       ``(5) the relationship between accountability systems and 
     the inclusion or exclusion of students from the assessment 
     system; and
       ``(6) such other factors as the Secretary finds 
     appropriate.
       ``(d) Reporting.--Not later than 3 years after the contract 
     described in section (b) is awarded, the organization or 
     entity conducting the study shall submit an interim report to 
     the Committee on Education and the Workforce of the United 
     States House of Representatives and the Committee on Health, 
     Education, Labor and Pensions of the United States Senate, 
     Congress, and to the President and the States, and shall make 
     the report widely available to the public. The organization 
     or entity shall submit a final report to the same recipients 
     as soon as possible after the completion of the study. 
     Additional reports may be periodically prepared and released 
     as necessary.
       ``(e) Reservation of Funds.--The Secretary may reserve up 
     to 15 percent of the funds authorized to be appropriated for 
     this part to carry out the study, except such reservation of 
     funds shall not exceed $1,500,000.

     ``SEC. 1504. CLOSE UP FELLOWSHIP PROGRAM.

       ``(a) Program for Middle School and Secondary School 
     Students.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing civic responsibility and understanding 
     of the Federal Government among middle school and secondary 
     school students.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to economically 
     disadvantaged students who participate in the programs 
     described in subparagraph (A).
       ``(C) Name of fellowships.--Financial assistance received 
     by students pursuant to this subsection shall be known as 
     Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up fellowships provided under this subsection 
     shall be made to economically disadvantaged middle school and 
     secondary school students;
       ``(ii) every effort shall be made to ensure the 
     participation of students from rural, small town, and urban 
     areas;
       ``(iii) in awarding the fellowships to economically 
     disadvantaged students, special consideration shall be given 
     to the participation of those students with special 
     educational needs, including students with disabilities, 
     ethnic minority students, and students with migrant parents; 
     and
       ``(iv) the funds received under this subsection shall be 
     properly disbursed.
       ``(b) Program for Middle School and Secondary School 
     Teachers.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of professional development for middle school and 
     secondary school teachers and its programs to increase civic 
     responsibility and understanding of the Federal Government 
     among the teachers' students.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to teachers who 
     participate in the programs described in subparagraph (A).
       ``(C) Name of fellowships.--Financial assistance received 
     by teachers pursuant to this subsection shall be known as 
     Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up fellowships provided under this subsection 
     shall be made only to a teacher who has worked with at least 
     1 student from such teacher's school who participates in a 
     program described in subsection (a)(1)(A);
       ``(ii) no teacher shall receive more than 1 such fellowship 
     in any fiscal year; and
       ``(iii) the funds received under this subsection shall be 
     properly disbursed.
       ``(c) Programs for New Americans.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing civic responsibility and understanding 
     of the Federal Government among economically disadvantaged 
     middle school and secondary school recent immigrant students.
       ``(B) Definition.--In this subsection, the term `recent 
     immigrant student' means a student who is a member of a 
     family that immigrated to the United States within 5 years of 
     the student's participation in such a program.
       ``(C) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to economically 
     disadvantaged recent immigrant students and their teachers 
     who participate in the programs described in subparagraph 
     (A).
       ``(D) Name of fellowships.--Financial assistance received 
     by students and teachers pursuant to this subsection shall be 
     known as Close Up Fellowships for New Americans.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up Fellowships for New Americans shall be made 
     to economically disadvantaged middle school and secondary 
     school recent immigrant students;
       ``(ii) every effort shall be made to ensure the 
     participation of recent immigrant students from rural, small 
     town, and urban areas;
       ``(iii) in awarding the fellowships to economically 
     disadvantaged recent immigrant students, special 
     consideration shall be given to the participation of those 
     students with special educational needs, including students 
     with disabilities, students with migrant parents, and ethnic 
     minority students;
       ``(iv) fully describe the activities to be carried out with 
     the proceeds of the grant made under paragraph (1); and
       ``(v) the funds received under this subsection shall be 
     properly disbursed.

[[Page 25671]]

       ``(d) General Provisions.--
       ``(1) Administrative provisions.--
       ``(A) Accountability.--In consultation with the Secretary, 
     the Close Up Foundation shall devise and implement procedures 
     to measure the efficacy of the programs authorized in 
     subsections (a), (b), and (c) in attaining objectives that 
     include the following:
       ``(i) Providing young people with an increased 
     understanding of the Federal Government.
       ``(ii) Heightening a sense of civic responsibility among 
     young people.
       ``(iii) Enhancing the skills of educators in teaching young 
     people about civic responsibility, the Federal Government, 
     and attaining citizenship competencies.
       ``(B) General rule.--Payments under this section may be 
     made in installments, in advance, or by way of reimbursement, 
     with necessary adjustments on account of underpayments or 
     overpayments.
       ``(C) Audit rule.--The Comptroller General of the United 
     States or any of the Comptroller General's duly authorized 
     representatives shall have access for the purpose of audit 
     and examination to any books, documents, papers, and records 
     that are pertinent to any grant under this section.
        ``(2) Continuation of awards.--Notwithstanding any other 
     provision of this Act, any person or entity that was awarded 
     a grant under part G of title X before the date of enactment 
     of the No Child Left Behind Act of 2001 shall continue to 
     receive funds in accordance with the terms of such award 
     until the date on which the award period terminates under 
     such terms.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

     ``SEC. 1601. PURPOSE.

       ``The purpose of this part 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 academic content and academic 
     achievement standards.

     ``SEC. 1602. PROGRAM AUTHORIZATION.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to State educational agencies, from allotments under 
     paragraph (2), to enable the State educational agencies to 
     award subgrants to local educational agencies to carry out 
     the purpose described in section 1601.
       ``(2) Allotments.--
       ``(A) Reservations.--Of the amount appropriated under 
     section 1002(f), the Secretary may reserve--
       ``(i) not more than 1 percent for each fiscal year to 
     provide assistance to schools supported by the Bureau of 
     Indian Affairs and in the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands according to their respective needs for assistance 
     under this part;
       ``(ii) not more than 1 percent for each fiscal year to 
     conduct national evaluation activities described in section 
     1607; and
       ``(iii) not more than 3 percent of the amount appropriated 
     in fiscal year 2002 to carry out this part, for quality 
     initiatives described in section 1608.
       ``(B) In general.--Of the amount appropriated under section 
     1002(f) that remains after making the reservation under 
     subparagraph (A) for a fiscal year, the Secretary shall allot 
     to each State for the fiscal year an amount that bears the 
     same ratio to the remainder for that fiscal year as the 
     amount made available under section 1124 to the State for the 
     preceding fiscal year bears to the total amount made 
     available under section 1124 to all States for that year.
       ``(C) Reallotment.--If a State does not apply for funds 
     under this section, the Secretary shall reallot such funds to 
     other States that do apply in proportion to the amount 
     allotted to such other States under subparagraph (B).

     ``SEC. 1603. STATE APPLICATIONS.

       ``(a) In General.--Each State educational agency that 
     desires to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each such application shall describe--
       ``(1) the process and selection criteria by which the State 
     educational agency, using expert review, will select local 
     educational agencies to receive subgrants under this section;
       ``(2) how the State educational agency will ensure that 
     funds under this part are limited to comprehensive school 
     reform programs that--
       ``(A) include each of the components described in section 
     1606(a);
       ``(B) have the capacity to improve the academic achievement 
     of all students in core academic subjects within 
     participating schools; and
       ``(C) are supported by technical assistance providers that 
     have a successful track record, financial stability, and the 
     capacity to deliver high quality materials, professional 
     development for school personnel, and on-site support during 
     the full implementation period of the reforms;
       ``(3) how the State educational agency will disseminate 
     materials and information on comprehensive school reforms 
     that are based on scientifically based research and effective 
     practices;
       ``(4) how the State educational agency will evaluate 
     annually the implementation of such reforms and measure the 
     extent to which the reforms have resulted in increased 
     student academic achievement; and
       ``(5) how the State educational agency will provide 
     technical assistance to the local educational agency or 
     consortia of local educational agencies, and to participating 
     schools, in evaluating, developing, and implementing 
     comprehensive school reform.

     ``SEC. 1604. STATE USE OF FUNDS.

       ``(a) In General.--Except as provided in subsection (e), a 
     State educational agency that receives a grant under this 
     part shall use the grant funds to award subgrants, on a 
     competitive basis, to local educational agencies or consortia 
     of local educational agencies in the State that receive funds 
     under part A, to support comprehensive school reforms in 
     schools that are eligible for funds under part A.
       ``(b) Subgrant Requirements.--A subgrant to a local 
     educational agency or consortium shall be--
       ``(1) of sufficient size and scope to support the initial 
     costs of comprehensive school reforms selected or designed by 
     each school identified in the application of the local 
     educational agency or consortium;
       ``(2) in an amount not less than $50,000--
       ``(A) for each participating school; or
       ``(B) for each participating consortium of small schools 
     (which for purposes of this subparagraph means a consortium 
     of small schools serving a total of not more than 500 
     students); and
       ``(3) renewable for 2 additional 1-year subgrant periods 
     after the initial 1-year subgrant is made if the school is or 
     the schools are making substantial progress in the 
     implementation of reforms.
       ``(c) Priority.--A State educational agency, in awarding 
     subgrants under this part, shall give priority to local 
     educational agencies or consortia that--
       ``(1) plan to use the funds in schools identified as being 
     in need of improvement or corrective action under section 
     1116(c); and
       ``(2) demonstrate a commitment to assist schools with 
     budget allocation, professional development, and other 
     strategies necessary to ensure the comprehensive school 
     reforms are properly implemented and are sustained in the 
     future.
       ``(d) Grant Consideration.--In awarding subgrants under 
     this part, the State educational agency shall take into 
     consideration the equitable distribution of subgrants to 
     different geographic regions within the State, including 
     urban and rural areas, and to schools serving elementary and 
     secondary students.
       ``(e) Administrative Costs.--A State educational agency 
     that receives a grant under this part may reserve not more 
     than 5 percent of the grant funds for administrative, 
     evaluation, and technical assistance expenses.
       ``(f) Supplement.--Funds made available under this part 
     shall be used to supplement, and not supplant, any other 
     Federal, State, or local funds that would otherwise be 
     available to carry out the activities assisted under this 
     part.
       ``(g) Reporting.--Each State educational agency that 
     receives a grant under this part shall provide to the 
     Secretary such information as the Secretary may require, 
     including the names of local educational agencies and schools 
     receiving assistance under this part, the amount of the 
     assistance, a description of the comprehensive school reforms 
     selected and used, and a copy of the State's annual 
     evaluation of the implementation of comprehensive school 
     reforms supported under this part and the student achievement 
     results.

     ``SEC. 1605. LOCAL APPLICATIONS.

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

     ``SEC. 1606. LOCAL USE OF FUNDS.

       ``(a) Uses of Funds.--A local educational agency or 
     consortium that receives a subgrant under this part shall 
     provide the subgrant funds to schools that are eligible for 
     assistance under part A and served by the agency, to enable 
     the schools to implement a comprehensive school reform 
     program that--
       ``(1) employs proven 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;
       ``(2) 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, and professional development into a 
     comprehensive school reform plan for schoolwide change 
     designed to enable all

[[Page 25672]]

     students to meet challenging State content and student 
     academic achievement standards and addresses needs identified 
     through a school needs assessment;
       ``(3) provides high quality and continuous teacher and 
     staff professional development;
       ``(4) includes measurable goals for student academic 
     achievement and benchmarks for meeting such goals;
       ``(5) is supported by teachers, principals, administrators, 
     school personnel staff, and other professional staff;
       ``(6) provides support for teachers, principals, 
     administrators, and other school staff;
       ``(7) provides for the meaningful involvement of parents 
     and the local community in planning, implementing, and 
     evaluating school improvement activities consistent with 
     section 1118;
       ``(8) uses high quality external technical support and 
     assistance from an entity that has experience and expertise 
     in schoolwide reform and improvement, which may include an 
     institution of higher education;
       ``(9) includes a plan for the annual evaluation of the 
     implementation of school reforms and the student results 
     achieved;
       ``(10) identifies other resources, including Federal, 
     State, local, and private resources, that shall be used to 
     coordinate services that will support and sustain the 
     comprehensive school reform effort; and
       ``(11)(A) has been found, through scientifically based 
     research to significantly improve the academic achievement of 
     students participating in such program as compared to 
     students in schools who have not participated in such 
     program; or
       ``(B) has been found to have strong evidence that such 
     program will significantly improve the academic achievement 
     of participating children.
       ``(b) Special Rule.--A school that receives funds to 
     develop a comprehensive school reform program shall not be 
     limited to using nationally available approaches, but may 
     develop the school's own comprehensive school reform program 
     for schoolwide change as described in subsection (a).

     ``SEC. 1607. EVALUATION AND REPORTS.

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

     ``SEC. 1608. QUALITY INITIATIVES.

       ``The Secretary, through grants or contracts, shall provide 
     funds for--
       ``(1) a public-private effort, in which funds are matched 
     by private organizations, to assist States, local educational 
     agencies, and schools, in making informed decisions regarding 
     approving or selecting providers of comprehensive school 
     reform, consistent with the requirements described in section 
     1606(a); and
       ``(2) activities to foster the development of comprehensive 
     school reform models and to provide effective capacity 
     building for comprehensive school reform providers to expand 
     their work in more schools, assure quality, and promote 
     financial stability.

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

     ``SEC. 1701. SHORT TITLE.

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

     ``SEC. 1702. PURPOSES.

       The purposes of this part are--
       ``(1) to support State and local efforts to raise academic 
     standards through advanced placement programs, and thus 
     further increase the number of students who participate and 
     succeed in advanced placement programs;
       ``(2) to encourage more of the 600,000 students who take 
     advanced placement courses each year but do not take advanced 
     placement exams each year, to demonstrate their achievements 
     through taking the exams;
       ``(3) to build on the many benefits of advanced placement 
     programs for students, which benefits may include the 
     acquisition of skills that are important to many employers, 
     Scholastic Aptitude Test (SAT) scores that are 100 points 
     above the national averages, and the achievement of better 
     grades in secondary school and in college than the grades of 
     students who have not participated in the programs;
       ``(4) to increase the availability and broaden the range of 
     schools, including middle schools, that have advanced 
     placement and pre-advanced placement programs;
       ``(5) to demonstrate that larger and more diverse groups of 
     students can participate and succeed in advanced placement 
     programs;
       ``(6) to provide greater access to advanced placement and 
     pre-advanced placement courses and highly trained teachers 
     for low-income and other disadvantaged students;
       ``(7) to provide access to advanced placement courses for 
     secondary school students at schools that do not offer 
     advanced placement programs, increase the rate at which 
     secondary school students participate in advanced placement 
     courses, and increase the numbers of students who receive 
     advanced placement test scores for which college academic 
     credit is awarded;
       ``(8) to increase the participation of low-income 
     individuals in taking advanced placement tests through the 
     payment or partial payment of the costs of the advanced 
     placement test fees; and
       ``(9) to increase the number of individuals that achieve a 
     baccalaureate or advanced degree, and to decrease the amount 
     of time such individuals require to attain such degrees.

     ``SEC. 1703. FUNDING DISTRIBUTION RULE.

       ``From amounts appropriated under section 1002(g) for a 
     fiscal year, the Secretary shall give priority to funding 
     activities under section 1704 and shall distribute any 
     remaining funds under section 1705.

     ``SEC. 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

       ``(a) Grants Authorized.--From amounts made available under 
     section 1703 for a fiscal year, the Secretary shall award 
     grants to State educational agencies having applications 
     approved under this section to enable the State educational 
     agencies to reimburse low-income individuals to cover part or 
     all of the costs of advanced placement test fees, if the low-
     income individuals--
       ``(1) are enrolled in an advanced placement course; and
       ``(2) plan to take an advanced placement test.
       ``(b) Award Basis.--In determining the amount of the grant 
     awarded to a State educational agency under this section for 
     a fiscal year, the Secretary shall consider the number of 
     children eligible to be counted under section 1124(c) in the 
     State in relation to the number of such children so counted 
     in all the States.
       ``(c) Information Dissemination.--A State educational 
     agency awarded a grant under this section shall disseminate 
     information regarding the availability of advanced placement 
     test fee payments under this section to eligible individuals 
     through secondary school teachers and guidance counselors.
       ``(d) Applications.--Each State educational agency desiring 
     to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. At a minimum, each State educational agency 
     application shall--
       ``(1) describe the advanced placement test fees the State 
     educational agency will pay on behalf of low-income 
     individuals in the State from grant funds awarded under this 
     section;
       ``(2) provide an assurance that any grant funds awarded 
     under this section shall be used only to pay for advanced 
     placement test fees; and
       ``(3) contain such information as the Secretary may require 
     to demonstrate that the State educational agency will ensure 
     that a student is eligible for payments authorized under this 
     section, including documentation required under chapter 1 of 
     subpart 2 of part A of title IV of the Higher Education Act 
     of 1965.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out this section.
       ``(f) Report.--
       ``(1) In general.--Each State educational agency awarded a 
     grant under this section shall, with respect to each advanced 
     placement subject, annually report to the Secretary on--
       ``(A) the number of students in the State who are taking an 
     advanced placement course in that subject;
       ``(B) the number of advanced placement tests taken by 
     students in the State who have taken an advanced placement 
     course in that subject;
       ``(C) the number of students in the State scoring at 
     different levels on advanced placement tests in that subject; 
     and
       ``(D) demographic information regarding individuals in the 
     State taking advanced placement courses and tests in that 
     subject disaggregated by race, ethnicity, sex, English 
     proficiency status, and socioeconomic status.
       ``(2) Report to congress.--The Secretary shall annually 
     compile the information received from each State educational 
     agency under paragraph (1) and report to the appropriate 
     Committees of Congress regarding the information.
       ``(g) BIA as SEA.--For purposes of this section the Bureau 
     of Indian Affairs shall be treated as a State educational 
     agency.

     ``SEC. 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM GRANTS.

       ``(a) Grants authorized.--
       ``(1) In general.--From amounts made available under 
     section 1703 for a fiscal year, the Secretary shall award 
     grants, on a competitive basis, to eligible entities to 
     enable those entities to carry out the authorized activities 
     described in subsection (d).
       ``(2) Duration and payments.--
       ``(A) Duration.--The Secretary shall award a grant under 
     this section for a period of not more than 3 years.
       ``(B) Payments.--The Secretary shall make grant payments 
     under this section on an annual basis.
       ``(3) Definition of eligible entity.--In this section, the 
     term `eligible entity' means a State educational agency, 
     local educational agency, or national nonprofit educational 
     entity with expertise in advanced placement services.
       ``(b) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(c) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to

[[Page 25673]]

     an eligible entity that submits an application under 
     subsection (b) that--
       ``(1) demonstrates a pervasive need for access to advanced 
     placement incentive programs;
       ``(2) provides for the involvement of business and 
     community organizations in the activities to be assisted;
       ``(3) assures the availability of matching funds from 
     State, local, or other sources to pay for the cost of 
     activities to be assisted;
       ``(4) demonstrates a focus on developing or expanding 
     advanced placement programs and participation in the core 
     academic areas of English, mathematics, and science;
       ``(5) demonstrates an intent to carry out activities that 
     target--
       ``(A) local educational agencies serving schools with a 
     high concentration of low-income students; or
       ``(B) schools with a high concentration of low-income 
     students; and
       ``(6) in the case of a local educational agency, assures 
     that the local educational agency serves schools with a high 
     concentration of low-income students; or
       ``(7) demonstrates an intent to carry out activities to 
     increase the availability of, and participation in, on-line 
     advanced placement courses.
       ``(d) Authorized Activities.--
       ``(1) In general.--Subject to paragraph (2), an eligible 
     entity shall use grant funds made available under this 
     section to expand access for low-income individuals to 
     advanced placement incentive programs that involve--
       ``(A) teacher training;
       ``(B) pre-advanced placement course development;
       ``(C) coordination and articulation between grade levels to 
     prepare students for academic achievement in advanced 
     placement courses;
       ``(D) books and supplies; or
       ``(E) activities to increase the availability of, and 
     participation in, on-line advanced placement courses; or
       ``(F) any other activity directly related to expanding 
     access to and participation in advanced placement incentive 
     programs, particularly for low-income individuals.
       ``(2) State educational agency.--In the case of an eligible 
     entity that is a State educational agency, the entity may use 
     grant funds made available under this section to award 
     subgrants to local educational agencies to enable the local 
     educational agencies to carry out the activities under 
     paragraph (1).
       ``(e) Contracts.--An eligible entity awarded a grant to 
     provide online advanced placement courses under this part may 
     enter into a contract with a nonprofit or for profit 
     organization to provide the online advanced placement 
     courses, including contracting for necessary support 
     services.
       ``(f) Data Collection and Reporting.--
       ``(1) Data collection.--Each eligible entity awarded a 
     grant under this section shall, with respect to each advanced 
     placement subject, annually report to the Secretary on--
       ``(A) the number of students served by the eligible entity 
     who are taking an advanced placement course in that subject;
       ``(B) the number of advanced placement tests taken by 
     students served by the eligible entity in that subject;
       ``(C) the number of students served by the eligible entity 
     scoring at different levels on advanced placement tests in 
     that subject; and
       ``(D) demographic information regarding individuals served 
     by such agency who taking advanced placement courses and 
     tests in that subject disaggregated by race, ethnicity, sex, 
     English proficiency status, and socioeconomic status.
       ``(2) Report.--The Secretary shall annually compile the 
     information received from each eligible entity under 
     paragraph (1) and report to the appropriate Committees of 
     Congress regarding the information.

     ``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

       Grant funds provided under this part shall supplement, and 
     not supplant, other non-Federal funds that are available to 
     assist low-income individuals to pay for the cost of advanced 
     placement test fees or to expand access to advanced placement 
     and pre-advanced placement courses.

     ``SEC. 1707. DEFINITIONS.

       ``In this part:
       ``(1) Advanced placement test.--The term `advanced 
     placement test' means an advanced placement test administered 
     by the College Board or approved by the Secretary.
       ``(2) High concentration of low-income students.--The term 
     `high concentration of low-income students', used with 
     respect to a school, means a school that serves a student 
     population 40 percent or more of whom are low-income 
     individuals.
       ``(3) Low-income individual.--The term `low-income 
     individual' means an individual who is determined by a State 
     educational agency or local educational agency to be a child, 
     ages 5 through 17, from a low-income family, on the basis of 
     data used by the Secretary to determine allocations under 
     section 1124 of this Act, data on children eligible for free 
     or reduced-price lunches under the National School Lunch Act, 
     data on children in families receiving assistance under part 
     A of title IV of the Social Security Act, or data on children 
     eligible to receive medical assistance under the medicaid 
     program under title XIX of the Social Security Act, or 
     through an alternate method that combines or extrapolates 
     from those data.

                  ``PART H--SCHOOL DROPOUT PREVENTION

     ``SEC. 1801. SHORT TITLE.

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

     ``SEC. 1802. PURPOSE.

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

     ``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $125,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 5 
     succeeding fiscal years, of which--
       ``(1) 10 percent shall be available to carry out subpart 1 
     for each fiscal year; and
       ``(2) 90 percent shall be available to carry out subpart 2 
     for each fiscal year.

               ``Subpart 1--Coordinated National Strategy

     ``SEC. 1811. NATIONAL ACTIVITIES.

       ``(a) In General.--The Secretary is authorized--
       ``(1) to collect systematic data on the effectiveness of 
     the programs assisted under this part in reducing school 
     dropout rates and increasing school reentry and secondary 
     school graduation rates;
       ``(2) to establish a national clearinghouse of information 
     on effective school dropout prevention and reentry programs 
     that shall disseminate to State educational agencies, local 
     educational agencies, and schools--
       ``(A) the results of research on school dropout prevention 
     and reentry; and
       ``(B) information on effective programs, best practices, 
     and Federal resources to--
       ``(i) reduce annual school dropout rates;
       ``(ii) increase school reentry; and
       ``(iii) increase secondary school graduation rates;
       ``(3) to provide technical assistance to State educational 
     agencies, local educational agencies, and schools in 
     designing and implementing programs and securing resources to 
     implement effective school dropout prevention and reentry 
     programs;
       ``(4) to establish and consult with an interagency working 
     group that shall--
       ``(A) address inter- and intra-agency program coordination 
     issues at the Federal level with respect to school dropout 
     prevention and reentry, and assess the targeting of existing 
     Federal services to students who are most at risk of dropping 
     out of school, and the cost-effectiveness of various programs 
     and approaches used to address school dropout prevention and 
     reentry;
       ``(B) describe the ways in which State educational agencies 
     and local educational agencies can implement effective school 
     dropout prevention and reentry programs using funds from a 
     variety of Federal programs, including the programs under 
     this part; and
       ``(C) examine Federal programs that may have a positive 
     impact on secondary school graduation or school reentry;
       ``(5) to carry out a national recognition program in 
     accordance with subsection (b) that recognizes schools that 
     have made extraordinary progress in lowering school dropout 
     rates; and
       ``(6) to use funds made available for this subpart to carry 
     out the evaluation required under section 1830(c).
       ``(b) Recognition Program.--
       ``(1) Establishment.--The Secretary shall--
       ``(A) establish a national recognition program; and
       ``(B) develop uniform national guidelines for the 
     recognition program that shall be used to recognize eligible 
     schools from nominations submitted by State educational 
     agencies.
       ``(2) Recognition.--The Secretary shall recognize, under 
     the recognition program established under paragraph (1), 
     eligible schools.
       ``(3) Support.--The Secretary may make monetary awards to 
     an eligible school recognized under this subsection in 
     amounts determined appropriate by the Secretary that shall be 
     used for dissemination activities within the eligible school 
     district or nationally.
       ``(4) Definition of eligible school.--In this subsection, 
     the term `eligible school' means a public middle school or 
     secondary school, including a charter school, that has 
     implemented comprehensive reforms that have been effective in 
     lowering school dropout rates for all students--
       ``(A) in that secondary school or charter school; or
       ``(B) in the case of a middle school, in the secondary 
     school that the middle school feeds students into.
       ``(c) Capacity Building.--
       ``(1) In general.--The Secretary, through a contract with 1 
     or more non-Federal entities, may conduct a capacity building 
     and design initiative in order to increase the types of 
     proven strategies for school dropout prevention and reentry 
     that address the needs of an entire school population rather 
     than a subset of students.
       ``(2) Number and duration.--
       ``(A) Number.--The Secretary may award not more than 5 
     contracts under this subsection.
       ``(B) Duration.--The Secretary may award a contract under 
     this subsection for a period of not more than 5 years.
       ``(d) Support for Existing Reform Networks.--
       ``(1) In general.--The Secretary may provide appropriate 
     support to eligible entities to enable

[[Page 25674]]

     the eligible entities to provide training, materials, 
     development, and staff assistance to schools assisted under 
     this part.
       ``(2) Definition of eligible entity.--In this subsection, 
     the term `eligible entity' means an entity that, prior to the 
     date of enactment of the Dropout Prevention Act--
       ``(A) provided training, technical assistance, and 
     materials related to school dropout prevention or reentry to 
     100 or more elementary schools or secondary schools; and
       ``(B) developed and published a specific educational 
     program or design related to school dropout prevention or 
     reentry for use by the schools.

           ``Subpart 2--School Dropout Prevention Initiative

     ``SEC. 1821. DEFINITIONS.

       ``In this subpart:
       ``(1) Low-income student.--The term `low-income student' 
     means a student who is determined by a local educational 
     agency to be from a low-income family using the measures 
     described in section 1113(c).
       ``(2) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and the Bureau of Indian Affairs 
     for purposes of serving schools funded by the Bureau.

     ``SEC. 1822. PROGRAM AUTHORIZED.

       ``(a) Grants to State Educational Agencies and Local 
     Educational Agencies.--
       ``(1) Amount less than $75,000,000.--
       ``(A) In general.--If the amount appropriated under section 
     1803 for a fiscal year equals or is less than $75,000,000, 
     then the Secretary shall use such amount to award grants, on 
     a competitive basis, to--
       ``(i) State educational agencies to support activities--

       ``(I) in schools that--

       ``(aa) serve students in grades 6 through 12; and
       ``(bb) have annual school dropout rates that are above the 
     State average annual school dropout rate; or

       ``(II) in the middle schools that feed students into the 
     schools described in subclause (I); or

       ``(ii) local educational agencies that operate--

       ``(I) schools that--

       ``(aa) serve students in grades 6 through 12; and
       ``(bb) have annual school dropout rates that are above the 
     State average annual school dropout rate; or

       ``(II) middle schools that feed students into the schools 
     described in subclause (I).

       ``(B) Use of grant funds.--Grant funds awarded under this 
     paragraph shall be used to fund effective, sustainable, and 
     coordinated school dropout prevention and reentry programs 
     that may include the activities described in subsection 
     (b)(2), in--
       ``(i) schools serving students in grades 6 through 12 that 
     have annual school dropout rates that are above the State 
     average annual school dropout rate; or
       ``(ii) the middle schools that feed students into the 
     schools described in clause (i).
       ``(2) Amount less than $250,000,000 but more than 
     $75,000,000.--If the amount appropriated under section 1803 
     for a fiscal year is less than $250,000,000 but more than 
     $75,000,000, then the Secretary shall use such amount to 
     award grants, on a competitive basis, to State educational 
     agencies to enable the State educational agencies to award 
     subgrants under subsection (b).
       ``(3) Amount equal to or exceeds $250,000,000.--If the 
     amount appropriated under section 1803 for a fiscal year 
     equals or exceeds $250,000,000, then the Secretary shall use 
     such amount to award a grant to each State educational agency 
     in an amount that bears the same relation to such 
     appropriated amount as the amount the State educational 
     agency received under part A for the preceding fiscal year 
     bears to the amount received by all State educational 
     agencies under such part for the preceding fiscal year, to 
     enable the State educational agency to award subgrants under 
     subsection (b).
       ``(b) Subgrants to Local Educational Agencies.--
       ``(1) In general.--From amounts made available to a State 
     educational agency under paragraph (2) or (3) of subsection 
     (a), the State educational agency shall award subgrants, on a 
     competitive basis, to local educational agencies that operate 
     public schools that serve students in grades 6 through 12 and 
     that have annual school dropout rates that are above the 
     State average annual school dropout rate, to enable those 
     schools, or the middle schools that feed students into those 
     schools, to implement effective, sustainable, and coordinated 
     school dropout prevention and reentry programs that involve 
     activities such as--
       ``(A) professional development;
       ``(B) obtaining curricular materials;
       ``(C) release time for professional staff to obtain 
     professional development;
       ``(D) planning and research;
       ``(E) remedial education;
       ``(F) reduction in pupil-to-teacher ratios;
       ``(G) efforts to meet State student academic achievement 
     standards;
       ``(H) counseling and mentoring for at-risk students;
       ``(I) implementing comprehensive school reform models, such 
     as creating smaller learning communities; and
       ``(J) school reentry activities.
       ``(2) Amount.--Subject to paragraph (3), a subgrant under 
     this subpart shall be awarded--
       ``(A) in the first year that a local educational agency 
     receives a subgrant payment under this subpart, in an amount 
     that is based on factors such as--
       ``(i) the size of schools operated by the local educational 
     agency;
       ``(ii) costs of the model or set of prevention and reentry 
     strategies being implemented; and
       ``(iii) local cost factors such as poverty rates;
       ``(B) in the second year, in an amount that is not less 
     than 75 percent of the amount the local educational agency 
     received under this subpart in the first such year;
       ``(C) in the third year, in an amount that is not less than 
     50 percent of the amount the local educational agency 
     received under this subpart in the first such year; and
       ``(D) in each succeeding year, in an amount that is not 
     less than 30 percent of the amount the local educational 
     agency received under this subpart in the first year.
       ``(3) Duration.--A subgrant under this subpart shall be 
     awarded for a period of 3 years, and may be continued for a 
     period of 2 additional years if the State educational agency 
     determines, based on the annual reports described in section 
     1830(a), that significant progress has been made in lowering 
     the annual school dropout rate for secondary schools 
     participating in the program assisted under this subpart.

     ``SEC. 1823. APPLICATIONS.

       ``(a) In General.--To receive--
       ``(1) a grant under this subpart, a State educational 
     agency or local educational agency shall submit an 
     application and plan to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require; and
       ``(2) a subgrant under this subpart, a local educational 
     agency shall submit an application and plan to the State 
     educational agency at such time, in such manner, and 
     accompanied by such information as the State educational 
     agency may reasonably require.
       ``(b) Contents.--
       ``(1) State educational agency and local educational 
     agency.--Each application and plan submitted under subsection 
     (a) shall--
       ``(A) include an outline--
       ``(i) of the State educational agency's or local 
     educational agency's strategy for reducing the State 
     educational agency or local educational agency's annual 
     school dropout rate;
       ``(ii) for targeting secondary schools, and the middle 
     schools that feed students into those secondary schools, that 
     have the highest annual school dropout rates; and
       ``(iii) for assessing the effectiveness of the efforts 
     described in the plan;
       ``(B) contain an identification of the schools in the State 
     or operated by the local educational agency that have annual 
     school dropout rates that are greater than the average annual 
     school dropout rate for the State;
       ``(C) describe the instructional strategies to be 
     implemented, how the strategies will serve all students, and 
     the effectiveness of the strategies;
       ``(D) describe a budget and timeline for implementing the 
     strategies;
       ``(E) contain evidence of coordination with existing 
     resources;
       ``(F) provide an assurance that funds provided under this 
     subpart will supplement, and not supplant, other State and 
     local funds available for school dropout prevention and 
     reentry programs; and
       ``(G) describe how the activities to be assisted conform 
     with research knowledge about school dropout prevention and 
     reentry.
       ``(2) Local educational agency.--Each application and plan 
     submitted under subsection (a) by a local educational agency 
     shall contain, in addition to the requirements of paragraph 
     (1)--
       ``(A) an assurance that the local educational agency is 
     committed to providing ongoing operational support for such 
     schools to address the problem of school dropouts for a 
     period of 5 years; and
       ``(B) an assurance that the local educational agency will 
     support the plan, including--
       ``(i) provision of release time for teacher training;
       ``(ii) efforts to coordinate activities for secondary 
     schools and the middle schools that feed students into those 
     secondary schools; and
       ``(iii) encouraging other schools served by the local 
     educational agency to participate in the plan.

     ``SEC. 1824. STATE RESERVATION.

       ``A State educational agency that receives a grant under 
     paragraph (2) or (3) of section 1822(a) may reserve not more 
     than 5 percent of the grant funds for administrative costs 
     and State activities related to school dropout prevention and 
     reentry activities, of which not more than 2 percent of the 
     grant funds may be used for administrative costs.

     ``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

       ``Each local educational agency receiving a grant or 
     subgrant under this subpart and each State educational agency 
     receiving a grant under this subpart shall implement 
     scientifically based, sustainable, and widely replicated 
     strategies for school dropout prevention and reentry. The 
     strategies may include--
       ``(1) specific strategies for targeted purposes, such as--
       ``(A) effective early intervention programs designed to 
     identify at-risk students;
       ``(B) effective programs serving at-risk students, 
     including racial and ethnic minorities and pregnant and 
     parenting teenagers, designed

[[Page 25675]]

     to prevent such students from dropping out of school; and
       ``(C) effective programs to identify and encourage youth 
     who have already dropped out of school to reenter school and 
     complete their secondary education; and
       ``(2) approaches such as breaking larger schools down into 
     smaller learning communities and other comprehensive reform 
     approaches, creating alternative school programs, and 
     developing clear linkages to career skills and employment.

     ``SEC. 1826. SELECTION OF LOCAL EDUCATIONAL AGENCIES FOR 
                   SUBGRANTS.

       ``(a) State Educational Agency Review and Award.--The State 
     educational agency shall review applications submitted under 
     section 1823(a)(2) and award subgrants to local educational 
     agencies with the assistance and advice of a panel of experts 
     on school dropout prevention and reentry.
       ``(b) Eligibility.--A local educational agency is eligible 
     to receive a subgrant under this subpart if the local 
     educational agency operates a public school (including a 
     public alternative school)--
       ``(1) that is eligible to receive assistance under part A; 
     and
       ``(2)(A) that serves students 50 percent or more of whom 
     are low-income students; or
       ``(B) in which a majority of the students come from feeder 
     schools that serve students 50 percent or more of whom are 
     low-income students.

     ``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

       ``A local educational agency that receives a grant or 
     subgrant under this subpart and a State educational agency 
     that receives a grant under this subpart may use the funds to 
     secure necessary services from a community-based organization 
     or other government agency if the funds are used to provide 
     school dropout prevention and reentry activities related to 
     schoolwide efforts.

     ``SEC. 1828. TECHNICAL ASSISTANCE.

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

     ``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

       ``For purposes of calculating an annual school dropout rate 
     under this subpart, a school shall use the annual event 
     school dropout rate for students leaving a school in a single 
     year determined in accordance with the National Center for 
     Education Statistics' Common Core of Data.

     ``SEC. 1830. REPORTING AND ACCOUNTABILITY.

       ``(a) Local Educational Agency Reports.--
       ``(1) In general.--To receive funds under this subpart for 
     a fiscal year after the first fiscal year that a local 
     educational agency receives funds under this subpart, the 
     local educational agency shall provide, on an annual basis, a 
     report regarding the status of the implementation of 
     activities funded under this subpart, and the dropout data 
     for students at schools assisted under this subpart, 
     disaggregated by race and ethnicity, to the--
       ``(A) Secretary, if the local educational agency receives a 
     grant under section 1822(a)(1); or
       ``(B) State educational agency, if the local educational 
     agency receives a subgrant under paragraph (2) or (3) of 
     section 1822(a).
       ``(2) Dropout data.--The dropout data under paragraph (1) 
     shall include annual school dropout rates for each fiscal 
     year, starting with the 2 fiscal years before the local 
     educational agency received funds under this subpart.
       ``(b) State Report on Program Activities.--Each State 
     educational agency receiving funds under this subpart shall 
     provide to the Secretary, at such time and in such format as 
     the Secretary may require, information on the status of the 
     implementation of activities funded under this subpart and 
     outcome data for students in schools assisted under this 
     subpart.
       ``(c) Accountability.--The Secretary shall evaluate the 
     effect of the activities assisted under this subpart on 
     school dropout prevention compared, if feasible, to a control 
     group using control procedures. The Secretary may use funds 
     appropriated for subpart 1 to carry out this evaluation.

                      ``PART I--GENERAL PROVISIONS

     ``SEC. 1901. FEDERAL REGULATIONS.

       ``(a) In General.--The Secretary may issue such regulations 
     as are necessary to reasonably ensure that there is 
     compliance with this title.
       ``(b) Negotiated Rulemaking Process.--
       ``(1) In general.--Before publishing in the Federal 
     Register proposed regulations to carry out this title, the 
     Secretary shall obtain the advice and recommendations of 
     representatives of Federal, State, and local administrators, 
     parents, teachers, paraprofessionals, and members of local 
     school boards and other organizations involved with the 
     implementation and operation of programs under this title.
       ``(2) Meetings and electronic exchange.--Such advice and 
     recommendations may be obtained through such mechanisms as 
     regional meetings and electronic exchanges of information.
       ``(3) Proposed regulations.--After obtaining such advice 
     and recommendations, and before publishing proposed 
     regulations, the Secretary shall--
       ``(A) establish a negotiated rulemaking process on, at a 
     minimum, standards and assessments;
       ``(B) select individuals to participate in such process 
     from among individuals or groups that provided advice and 
     recommendations, including representation from all geographic 
     regions of the United States, in such numbers as will provide 
     an equitable balance between representatives of parents and 
     students and representatives of educators and education 
     officials; and
       ``(C) prepare a draft of proposed policy options that shall 
     be provided to the individuals selected by the Secretary 
     under subparagraph (B) not less than 15 days before the first 
     meeting under such process.
       ``(4) Process.--Such process--
       ``(A) shall be conducted in a timely manner to ensure that 
     final regulations are issued by the Secretary not later than 
     1 year after the date of enactment of the No Child Left 
     Behind Act of 2001; and
       ``(B) shall not be subject to the Federal Advisory 
     Committee Act, but shall otherwise follow the provisions of 
     the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
       ``(5) Emergency situation.--In an emergency situation in 
     which regulations to carry out this title must be issued 
     within a very limited time to assist State educational 
     agencies and local educational agencies with the operation of 
     a program under this title, the Secretary may issue proposed 
     regulations without following such process but shall, 
     immediately thereafter and before issuing final regulations, 
     conduct regional meetings to review such proposed 
     regulations.
       ``(c) Limitation.--Regulations to carry out this part may 
     not require local programs to follow a particular 
     instructional model, such as the provision of services 
     outside the regular classroom or school program.

     ``SEC. 1902. AGREEMENTS AND RECORDS.

       ``(a) Agreements.--All published proposed regulations shall 
     conform to agreements that result from negotiated rulemaking 
     described in section 1901 unless the Secretary reopens the 
     negotiated rulemaking process or provides a written 
     explanation to the participants involved in the process 
     explaining why the Secretary decided to depart from, and not 
     adhere to, such agreements.
       ``(b) Records.--The Secretary shall ensure that an accurate 
     and reliable record of agreements reached during the 
     negotiations process is maintained.

     ``SEC. 1903. STATE ADMINISTRATION.

       ``(a) Rulemaking.--
       ``(1) In general.--Each State that receives funds under 
     this title shall--
       ``(A) ensure that any State rules, regulations, and 
     policies relating to this title conform to the purposes of 
     this title and provide any such proposed rules, regulations, 
     and policies to the committee of practitioners created under 
     subsection (b) for review and comment;
       ``(B) minimize such rules, regulations, and policies to 
     which the State's local educational agencies and schools are 
     subject;
       ``(C) eliminate or modify State and local fiscal accounting 
     requirements in order to facilitate the ability of schools to 
     consolidate funds under schoolwide programs; and
       ``(D) identify any such rule, regulation, or policy as a 
     State-imposed requirement.
       ``(2) Support and facilitation.--State rules, regulations, 
     and policies under this title shall support and facilitate 
     local educational agency and school-level systemic reform 
     designed to enable all children to meet the challenging State 
     student academic achievement standards.
       ``(b) Committee of Practitioners.--
       ``(1) In general.--Each State educational agency that 
     receives funds under this title shall create a State 
     committee of practitioners to advise the State in carrying 
     out its responsibilities under this title.
       ``(2) Membership.--Each such committee shall include--
       ``(A) as a majority of its members, representatives from 
     local educational agencies;
       ``(B) administrators, including the administrators of 
     programs described in other parts of this title;
       ``(C) teachers, including vocational educators;
       ``(D) parents;
       ``(E) members of local school boards;
       ``(F) representatives of private school children; and
       ``(G) pupil services personnel.
       ``(3) Duties.--The duties of such committee shall include a 
     review, before publication, of any proposed or final State 
     rule or regulation pursuant to this title. In an emergency 
     situation where such rule or regulation must be issued within 
     a very limited time to assist local educational agencies with 
     the operation of the program under this title, the State 
     educational agency may issue a regulation without prior 
     consultation, but shall immediately thereafter convene the 
     State committee of practitioners to review the emergency 
     regulation before issuance in final form.

     ``SEC. 1904. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

       ``(a) Audits.--The Comptroller General of the United States 
     shall conduct audits of not less than 6 local educational 
     agencies that receive funds under part A in each fiscal year 
     to determine more clearly and specifically how local 
     educational agencies are expending such funds. Such audits--
       ``(1) shall be conducted in 6 local educational agencies 
     that represent the size, ethnic, economic, and geographic 
     diversity of local educational agencies; and
       ``(2) shall examine the extent to which funds have been 
     expended for academic instruction in the core curriculum and 
     activities unrelated to academic instruction in the core 
     curriculum,

[[Page 25676]]

     such as the payment of janitorial, utility, and other 
     maintenance services, the purchase and lease of vehicles, and 
     the payment for travel and attendance costs at conferences.
       ``(b) Report.--Not later than 3 months after the completion 
     of the audits under subsection (a) each year, the Comptroller 
     General of the United States shall submit a report on each 
     audit 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.

     ``SEC. 1905. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, 
                   OR CONTROL.

       ``Nothing in this title shall be construed to authorize an 
     officer or employee of the Federal Government to mandate, 
     direct, or control a State, local educational agency, or 
     school's specific instructional content, academic achievement 
     standards and assessments, curriculum, or program of 
     instruction.

     ``SEC. 1906. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

       ``Nothing in this title shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.

     ``SEC. 1907. STATE REPORT ON DROPOUT DATA.

       ``Not later than 1 year after a State educational agency 
     receives funds under this title, the agency shall report to 
     the Secretary and statewide, all school district data 
     regarding annual school dropout rates in the State 
     disaggregated by race and ethnicity according to procedures 
     that conform with the National Center for Education 
     Statistics' Common Core of Data.

     ``SEC. 1908. REGULATIONS FOR SECTIONS 1111 AND 1116.

       ``The Secretary shall issue regulations for sections 1111 
     and 1116 not later than 6 months after the date of enactment 
     of the No Child Left Behind Act of 2001.''.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

     SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.

       Title II (20 U.S.C. 6601 et seq.) is amended to read as 
     follows:
 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

     ``SEC. 2101. PURPOSE.

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

     ``SEC. 2102. DEFINITIONS.

       ``In this part:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers one or more academic majors in disciplines or content 
     areas corresponding to the academic subjects in which 
     teachers teach; and
       ``(B) when referring to a specific academic subject, the 
     disciplines or content areas in which an academic major is 
     offered by an organizational unit described in subparagraph 
     (A).
       ``(2) Charter school.--The term `charter school' has the 
     meaning given the term in section 5210.
       ``(3) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency--
       ``(A)(i) that serves not fewer than 10,000 children from 
     families with incomes below the poverty line; or
       ``(ii) for which not less than 20 percent of the children 
     served by the agency are from families with incomes below the 
     poverty line; and
       ``(B)(i) for which there is a high percentage of teachers 
     not teaching in the academic subjects or grade levels that 
     the teachers were trained to teach; or
       ``(ii) for which there is a high percentage of teachers 
     with emergency, provisional, or temporary certification or 
     licensing.
       ``(4) Highly qualified paraprofessional.--The term `highly 
     qualified paraprofessional' means a paraprofessional who has 
     not less than 2 years of--
       ``(A) experience in a classroom; and
       ``(B) postsecondary education or demonstrated competence in 
     a field or academic subject for which there is a significant 
     shortage of qualified teachers.
       ``(5) Out-of-field teacher.--The term `out-of-field 
     teacher' means a teacher who is teaching an academic subject 
     or a grade level for which the teacher is not highly 
     qualified.
       ``(6) Principal.--The term `principal' includes an 
     assistant principal.

     ``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) Grants to States, Local Educational Agencies, and 
     Eligible Partnerships.--There are authorized to be 
     appropriated to carry out this part (other than subpart 5) 
     $3,175,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(b) National Programs.--There are authorized to be 
     appropriated to carry out subpart 5 such sums as may be 
     necessary for fiscal year 2002 and each of the 5 succeeding 
     fiscal years.

                     ``Subpart 1--Grants to States

     ``SEC. 2111. ALLOTMENTS TO STATES.

       ``(a) In General.--The Secretary shall make grants to 
     States with applications approved under section 2112 to pay 
     for the Federal share of the cost of carrying out the 
     activities specified in section 2113. Each grant shall 
     consist of the allotment determined for a State under 
     subsection (b).
       ``(b) Determination of Allotments.--
       ``(1) Reservation of funds.--
       ``(A) In general.--From the total amount appropriated under 
     section 2103(a) for a fiscal year, the Secretary shall 
     reserve--
       ``(i) \1/2\ of 1 percent for allotments for the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, to be 
     distributed among those outlying areas on the basis of their 
     relative need, as determined by the Secretary, in accordance 
     with the purpose of this part; and
       ``(ii) \1/2\ of 1 percent for the Secretary of the Interior 
     for programs under this part in schools operated or funded by 
     the Bureau of Indian Affairs.
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     funds appropriated under section 2103(a) for any fiscal year 
     and not reserved under paragraph (1), the Secretary shall 
     allot to each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico an amount equal to the total 
     amount that such State received for fiscal year 2001 under--

       ``(I) section 2202(b) of this Act (as in effect on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001); and
       ``(II) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).

       ``(ii) Ratable reduction.--If the funds described in clause 
     (i) are insufficient to pay the full amounts that all States 
     are eligible to receive under clause (i) for any fiscal year, 
     the Secretary shall ratably reduce those amounts for the 
     fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the funds appropriated under section 2103(a) 
     and not reserved under paragraph (1) exceed the total amount 
     required to make allotments under subparagraph (A), the 
     Secretary shall allot to each of the States described in 
     subparagraph (A) the sum of--

       ``(I) an amount that bears the same relationship to 35 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the State, as determined by the Secretary on 
     the basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined; and
       ``(II) an amount that bears the same relationship to 65 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line, in the State, as determined by the Secretary on the 
     basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined.

       ``(ii) Exception.--No State receiving an allotment under 
     clause (i) may receive less than \1/2\ of 1 percent of the 
     total excess amount allotted under such clause for a fiscal 
     year.
       ``(3) Reallotment.--If any State does not apply for an 
     allotment under this subsection for any fiscal year, the 
     Secretary shall reallot the amount of the allotment to the 
     remaining States in accordance with this subsection.

     ``SEC. 2112. STATE APPLICATIONS.

       ``(a) In General.--For a State to be eligible to receive a 
     grant under this part, the State educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall include the following:
       ``(1) A description of how the activities to be carried out 
     by the State educational agency under this subpart will be 
     based on a review of scientifically based research and an 
     explanation of why the activities are expected to improve 
     student academic achievement.
       ``(2) A description of how the State educational agency 
     will ensure that a local educational agency receiving a 
     subgrant to carry out subpart 2 will comply with the 
     requirements of such subpart.
       ``(3) A description of how the State educational agency 
     will ensure that activities assisted under this subpart are 
     aligned with challenging State academic content and student 
     academic achievement standards, State assessments, and State 
     and local curricula.
       ``(4) A description of how the State educational agency 
     will use funds under this part to improve the quality of the 
     State's teachers and principals.
       ``(5)(A) A description of how the State educational agency 
     will coordinate professional development activities 
     authorized under this part with professional development 
     activities provided under other Federal, State, and local 
     programs.
       ``(B) A description of the comprehensive strategy that the 
     State educational agency will use, as part of such 
     coordination effort, to ensure that teachers are trained in 
     the use of technology so that technology and applications of 
     technology are effectively used in the classroom

[[Page 25677]]

     to improve teaching and learning in all curricula and 
     academic subjects, as appropriate.
       ``(6) A description of how the State educational agency 
     will encourage the development of proven, innovative 
     strategies to deliver intensive professional development 
     programs that are both cost-effective and easily accessible, 
     such as strategies that involve delivery through the use of 
     technology, peer networks, and distance learning.
       ``(7)(A) A description of how the State educational agency 
     will ensure compliance with the requirements for professional 
     development activities described in section 9101 and how the 
     activities to be carried out under the grant will be 
     developed collaboratively and based on the input of teachers, 
     principals, parents, administrators, paraprofessionals, and 
     other school personnel.
       ``(B) In the case of a State in which the State educational 
     agency is not the entity responsible for teacher professional 
     standards, certification, and licensing, an assurance that 
     the State activities carried out under this subpart are 
     carried out in conjunction with the entity responsible for 
     such standards, certification, and licensing under State law.
       ``(8) A description of how the State educational agency 
     will ensure that the professional development (including 
     teacher mentoring) needs of teachers will be met using funds 
     under this subpart and subpart 2.
       ``(9) A description of the State educational agency's 
     annual measurable objectives under section 1119(a)(2).
       ``(10) A description of how the State educational agency 
     will use funds under this part to meet the teacher and 
     paraprofessional requirements of section 1119 and how the 
     State educational agency will hold local educational agencies 
     accountable for meeting the annual measurable objectives 
     described in section 1119(a)(2).
       ``(11) In the case of a State that has a charter school law 
     that exempts teachers from State certification and licensing 
     requirements, the specific portion of the State law that 
     provides for the exemption.
       ``(12) An assurance that the State educational agency will 
     comply with section 9501 (regarding participation by private 
     school children and teachers).
       ``(c) Deemed Approval.--An application submitted by a State 
     educational agency pursuant to subsection (a) shall be deemed 
     to be approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the application, that the application is not in compliance 
     with this subpart.
       ``(d) Disapproval.--The Secretary shall not finally 
     disapprove the application, except after giving the State 
     educational agency notice and an opportunity for a hearing.
       ``(e) Notification.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     this subpart, the Secretary shall--
       ``(1) give the State educational agency notice and an 
     opportunity for a hearing; and
       ``(2) notify the State educational agency of the finding of 
     noncompliance and, in such notification, shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(f) Response.--If the State educational agency responds 
     to the Secretary's notification described in subsection 
     (e)(2) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     application with the requested information described in 
     subsection (e)(2)(B), the Secretary shall approve or 
     disapprove such application prior to the later of--
       ``(1) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(2) the expiration of the 120-day period described in 
     subsection (c).
       ``(g) Failure to Respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     subsection (e)(2) during the 45-day period beginning on the 
     date on which the agency received the notification, such 
     application shall be deemed to be disapproved.

     ``SEC. 2113. STATE USE OF FUNDS.

       ``(a) In General.--A State that receives a grant under 
     section 2111 shall--
       ``(1) reserve 95 percent of the funds made available 
     through the grant to make subgrants to local educational 
     agencies as described in subpart 2;
       ``(2) reserve 2.5 percent (or, for a fiscal year described 
     in subsection (b), the percentage determined under subsection 
     (b)) of the funds to make subgrants to local partnerships as 
     described in subpart 3; and
       ``(3) use the remainder of the funds for State activities 
     described in subsection (c).
       ``(b) Special Rule.--For any fiscal year for which the 
     total amount that would be reserved by all States under 
     subsection (a)(2), if the States applied a 2.5 percentage 
     rate, exceeds $125,000,000, the Secretary shall determine an 
     alternative percentage that the States shall apply for that 
     fiscal year under subsection (a)(2) so that the total amount 
     reserved by all States under subsection (a)(2) equals 
     $125,000,000.
       ``(c) State Activities.--The State educational agency for a 
     State that receives a grant under section 2111 shall use the 
     funds described in subsection (a)(3) to carry out one or more 
     of the following activities, which may be carried out through 
     a grant or contract with a for-profit or nonprofit entity:
       ``(1) Reforming teacher and principal certification 
     (including recertification) or licensing requirements to 
     ensure that--
       ``(A)(i) teachers have the necessary subject matter 
     knowledge and teaching skills in the academic subjects that 
     the teachers teach; and
       ``(ii) principals have the instructional leadership skills 
     to help teachers teach and students learn;
       ``(B) teacher certification (including recertification) or 
     licensing requirements are aligned with challenging State 
     academic content standards; and
       ``(C) teachers have the subject matter knowledge and 
     teaching skills, including technology literacy, and 
     principals have the instructional leadership skills, 
     necessary to help students meet challenging State student 
     academic achievement standards.
       ``(2) Carrying out programs that provide support to 
     teachers or principals, including support for teachers and 
     principals new to their profession, such as programs that--
       ``(A) provide teacher mentoring, team teaching, reduced 
     class schedules, and intensive professional development; and
       ``(B) use standards or assessments for guiding beginning 
     teachers that are consistent with challenging State student 
     academic achievement standards and with the requirements for 
     professional development activities described in section 
     9101.
       ``(3) Carrying out programs that establish, expand, or 
     improve alternative routes for State certification of 
     teachers and principals, especially in the areas of 
     mathematics and science, for highly qualified individuals 
     with a baccalaureate or master's degree, including mid-career 
     professionals from other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates with records of academic distinction who 
     demonstrate the potential to become highly effective teachers 
     or principals.
       ``(4) Developing and implementing mechanisms to assist 
     local educational agencies and schools in effectively 
     recruiting and retaining highly qualified teachers, including 
     specialists in core academic subjects, principals, and pupil 
     services personnel, except that funds made available under 
     this paragraph may be used for pupil services personnel 
     only--
       ``(A) if the State educational agency is making progress 
     toward meeting the annual measurable objectives described in 
     section 1119(a)(2); and
       ``(B) in a manner consistent with mechanisms to assist 
     local educational agencies and schools in effectively 
     recruiting and retaining highly qualified teachers and 
     principals.
       ``(5) Reforming tenure systems, implementing teacher 
     testing for subject matter knowledge, and implementing 
     teacher testing for State certification or licensing, 
     consistent with title II of the Higher Education Act of 1965.
       ``(6) Providing professional development for teachers and 
     principals and, in cases in which a State educational agency 
     determines support to be appropriate, supporting the 
     participation of pupil services personnel in the same type of 
     professional development activities as are made available to 
     teachers and principals.
       ``(7) Developing systems to measure the effectiveness of 
     specific professional development programs and strategies to 
     document gains in student academic achievement or increases 
     in teacher mastery of the academic subjects the teachers 
     teach.
       ``(8) Fulfilling the State educational agency's 
     responsibilities concerning proper and efficient 
     administration of the programs carried out under this part, 
     including provision of technical assistance to local 
     educational agencies.
       ``(9) Funding projects to promote reciprocity of teacher 
     and principal certification or licensing between or among 
     States, except that no reciprocity agreement developed under 
     this paragraph or developed using funds provided under this 
     part may lead to the weakening of any State teaching 
     certification or licensing requirement.
       ``(10) Developing or assisting local educational agencies 
     in the development and use of proven, innovative strategies 
     to deliver intensive professional development programs that 
     are both cost-effective and easily accessible, such as 
     strategies that involve delivery through the use of 
     technology, peer networks, and distance learning.
       ``(11) Encouraging and supporting the training of teachers 
     and administrators to effectively integrate technology into 
     curricula and instruction, including training to improve the 
     ability to collect, manage, and analyze data to improve 
     teaching, decisionmaking, school improvement efforts, and 
     accountability.
       ``(12) Developing, or assisting local educational agencies 
     in developing, merit-based performance systems, and 
     strategies that provide differential and bonus pay for 
     teachers in high-need academic subjects such as reading, 
     mathematics, and science and teachers in high-poverty schools 
     and districts.
       ``(13) Providing assistance to local educational agencies 
     for the development and implementation of professional 
     development programs for principals that enable the 
     principals to be effective school leaders and prepare all 
     students to meet challenging State academic content and 
     student academic achievement standards, and the development 
     and support of school leadership academies to help 
     exceptionally talented aspiring or current principals and 
     superintendents become outstanding managers and educational 
     leaders.

[[Page 25678]]

       ``(14) Developing, or assisting local educational agencies 
     in developing, teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths (such 
     as paths to becoming a career teacher, mentor teacher, or 
     exemplary teacher) and pay differentiation.
       ``(15) Providing assistance to teachers to enable them to 
     meet certification, licensing, or other requirements needed 
     to become highly qualified by the end of the fourth year for 
     which the State receives funds under this part (as amended by 
     the No Child Left Behind Act of 2001).
       ``(16) Supporting activities that ensure that teachers are 
     able to use challenging State academic content standards and 
     student academic achievement standards, and State 
     assessments, to improve instructional practices and improve 
     student academic achievement.
       ``(17) Funding projects and carrying out programs to 
     encourage men to become elementary school teachers.
       ``(18) Establishing and operating a center that--
       ``(A) serves as a statewide clearinghouse for the 
     recruitment and placement of kindergarten, elementary school, 
     and secondary school teachers; and
       ``(B) establishes and carries out programs to improve 
     teacher recruitment and retention within the State.
       ``(d) Administrative Costs.--A State educational agency or 
     State agency for higher education receiving a grant under 
     this part may use not more than 1 percent of the grant funds 
     for planning and administration related to carrying out 
     activities under subsection (c) and subpart 3.
       ``(e) Coordination.--A State that receives a grant to carry 
     out this subpart and a grant under section 202 of the Higher 
     Education Act of 1965 shall coordinate the activities carried 
     out under this subpart and the activities carried out under 
     that section.
       ``(f) Supplement, Not Supplant.--Funds received under this 
     subpart shall be used to supplement, and not supplant, non-
     Federal funds that would otherwise be used for activities 
     authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

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

       ``(a) Subgrants to Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under subpart 1 only if the State educational agency 
     agrees to distribute the funds described in this subsection 
     as subgrants to local educational agencies under this 
     subpart.
       ``(2) Hold harmless.--
       ``(A) In general.--From the funds reserved by a State under 
     section 2113(a)(1), the State educational agency shall 
     allocate to each local educational agency in the State an 
     amount equal to the total amount that such agency received 
     for fiscal year 2001 under--
       ``(i) section 2203(1)(B) of this Act (as in effect on the 
     day before the date of enactment of the No Child Left Behind 
     Act of 2001); and
       ``(ii) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).
       ``(B) Nonparticipating agencies.--In the case of a local 
     educational agency that did not receive any funds for fiscal 
     year 2001 under one or both of the provisions referred to in 
     clauses (i) and (ii) of subparagraph (A), the amount 
     allocated to the agency under such subparagraph shall be the 
     total amount that the agency would have received for fiscal 
     year 2001 if the agency had elected to participate in all of 
     the programs for which the agency was eligible under each of 
     the provisions referred to in those clauses.
       ``(C) Ratable reduction.--If the funds described in 
     subparagraph (A) are insufficient to pay the full amounts 
     that all local educational agencies in the State are eligible 
     to receive under subparagraph (A) for any fiscal year, the 
     State educational agency shall ratably reduce such amounts 
     for the fiscal year.
       ``(3) Allocation of additional funds.--For any fiscal year 
     for which the funds reserved by a State under section 
     2113(a)(1) exceed the total amount required to make 
     allocations under paragraph (2), the State educational agency 
     shall allocate to each of the eligible local educational 
     agencies in the State the sum of--
       ``(A) an amount that bears the same relationship to 20 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the geographic area served by the agency, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data, bears to the number of those individuals 
     in the geographic areas served by all the local educational 
     agencies in the State, as so determined; and
       ``(B) an amount that bears the same relationship to 80 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line in the geographic area served by the agency, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data, bears to the number of those individuals 
     in the geographic areas served by all the local educational 
     agencies in the State, as so determined.

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

       ``(a) In General.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall submit 
     an application to the State educational agency at such time, 
     in such manner, and containing such information as the State 
     educational agency may reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall be based on the needs assessment required in 
     subsection (c) and shall include the following:
       ``(1)(A) A description of the activities to be carried out 
     by the local educational agency under this subpart and how 
     these activities will be aligned with--
       ``(i) challenging State academic content standards and 
     student academic achievement standards, and State 
     assessments; and
       ``(ii) the curricula and programs tied to the standards 
     described in clause (i).
       ``(B) A description of how the activities will be based on 
     a review of scientifically based research and an explanation 
     of why the activities are expected to improve student 
     academic achievement.
       ``(2) A description of how the activities will have a 
     substantial, measurable, and positive impact on student 
     academic achievement and how the activities will be used as 
     part of a broader strategy to eliminate the achievement gap 
     that separates low-income and minority students from other 
     students.
       ``(3) An assurance that the local educational agency will 
     target funds to schools within the jurisdiction of the local 
     educational agency that--
       ``(A) have the lowest proportion of highly qualified 
     teachers;
       ``(B) have the largest average class size; or
       ``(C) are identified for school improvement under section 
     1116(b).
       ``(4) A description of how the local educational agency 
     will coordinate professional development activities 
     authorized under this subpart with professional development 
     activities provided through other Federal, State, and local 
     programs.
       ``(5) A description of the professional development 
     activities that will be made available to teachers and 
     principals under this subpart and how the local educational 
     agency will ensure that the professional development (which 
     may include teacher mentoring) needs of teachers and 
     principals will be met using funds under this subpart.
       ``(6) A description of how the local educational agency 
     will integrate funds under this subpart with funds received 
     under part D that are used for professional development to 
     train teachers to integrate technology into curricula and 
     instruction to improve teaching, learning, and technology 
     literacy.
       ``(7) A description of how the local educational agency, 
     teachers, paraprofessionals, principals, other relevant 
     school personnel, and parents have collaborated in the 
     planning of activities to be carried out under this subpart 
     and in the preparation of the application.
       ``(8) A description of the results of the needs assessment 
     described in subsection (c).
       ``(9) A description of how the local educational agency 
     will provide training to enable teachers to--
       ``(A) teach and address the needs of students with 
     different learning styles, particularly students with 
     disabilities, students with special learning needs (including 
     students who are gifted and talented), and students with 
     limited English proficiency;
       ``(B) improve student behavior in the classroom and 
     identify early and appropriate interventions to help students 
     described in subparagraph (A) learn;
       ``(C) involve parents in their child's education; and
       ``(D) understand and use data and assessments to improve 
     classroom practice and student learning.
       ``(10) A description of how the local educational agency 
     will use funds under this subpart to meet the requirements of 
     section 1119.
       ``(11) An assurance that the local educational agency will 
     comply with section 9501 (regarding participation by private 
     school children and teachers).
       ``(c) Needs Assessment.--
       ``(1) In general.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall conduct 
     an assessment of local needs for professional development and 
     hiring, as identified by the local educational agency and 
     school staff.
       ``(2) Requirements.--Such needs assessment shall be 
     conducted with the involvement of teachers, including 
     teachers participating in programs under part A of title I, 
     and shall take into account the activities that need to be 
     conducted in order to give teachers the means, including 
     subject matter knowledge and teaching skills, and to give 
     principals the instructional leadership skills to help 
     teachers, to provide students with the opportunity to meet 
     challenging State and local student academic achievement 
     standards.

     ``SEC. 2123. LOCAL USE OF FUNDS.

       ``(a) In General.--A local educational agency that receives 
     a subgrant under section 2121 shall use the funds made 
     available through the subgrant to carry out one or more of 
     the following activities, including carrying out the 
     activities through a grant or contract with a for-profit or 
     nonprofit entity:
       ``(1) Developing and implementing mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers, including specialists in core academic 
     subjects, principals, and pupil services personnel, except 
     that funds made available under this paragraph may be used 
     for pupil services personnel only--
       ``(A) if the local educational agency is making progress 
     toward meeting the annual measurable objectives described in 
     section 1119(a)(2); and

[[Page 25679]]

       ``(B) in a manner consistent with mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers and principals.
       ``(2) Developing and implementing initiatives to assist in 
     recruiting highly qualified teachers (particularly 
     initiatives that have proven effective in retaining highly 
     qualified teachers), and hiring highly qualified teachers, 
     who will be assigned teaching positions within their fields, 
     including--
       ``(A) providing scholarships, signing bonuses, or other 
     financial incentives, such as differential pay, for teachers 
     to teach--
       ``(i) in academic subjects in which there exists a shortage 
     of highly qualified teachers within a school or within the 
     local educational agency; and
       ``(ii) in schools in which there exists a shortage of 
     highly qualified teachers;
       ``(B) recruiting and hiring highly qualified teachers to 
     reduce class size, particularly in the early grades; and
       ``(C) establishing programs that--
       ``(i) train and hire regular and special education teachers 
     (which may include hiring special education teachers to team-
     teach in classrooms that contain both children with 
     disabilities and nondisabled children);
       ``(ii) train and hire highly qualified teachers of special 
     needs children, as well as teaching specialists in core 
     academic subjects who will provide increased individualized 
     instruction to students;
       ``(iii) recruit qualified professionals from other fields, 
     including highly qualified paraprofessionals, and provide 
     such professionals with alternative routes to teacher 
     certification, including developing and implementing hiring 
     policies that ensure comprehensive recruitment efforts as a 
     way to expand the applicant pool, such as through identifying 
     teachers certified through alternative routes, and using a 
     system of intensive screening designed to hire the most 
     qualified applicants; and
       ``(iv) provide increased opportunities for minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching profession.
       ``(3) Providing professional development activities--
       ``(A) that improve the knowledge of teachers and principals 
     and, in appropriate cases, paraprofessionals, concerning--
       ``(i) one or more of the core academic subjects that the 
     teachers teach; and
       ``(ii) effective instructional strategies, methods, and 
     skills, and use of challenging State academic content 
     standards and student academic achievement standards, and 
     State assessments, to improve teaching practices and student 
     academic achievement; and
       ``(B) that improve the knowledge of teachers and principals 
     and, in appropriate cases, paraprofessionals, concerning 
     effective instructional practices and that--
       ``(i) involve collaborative groups of teachers and 
     administrators;
       ``(ii) provide training in how to teach and address the 
     needs of students with different learning styles, 
     particularly students with disabilities, students with 
     special learning needs (including students who are gifted and 
     talented), and students with limited English proficiency;
       ``(iii) provide training in methods of--

       ``(I) improving student behavior in the classroom; and

       ``(II) identifying early and appropriate interventions to 
     help students described in clause (ii) learn;

       ``(iv) provide training to enable teachers and principals 
     to involve parents in their child's education, especially 
     parents of limited English proficient and immigrant children; 
     and
       ``(v) provide training on how to understand and use data 
     and assessments to improve classroom practice and student 
     learning.
       ``(4) Developing and implementing initiatives to promote 
     retention of highly qualified teachers and principals, 
     particularly within elementary schools and secondary schools 
     with a high percentage of low-achieving students, including 
     programs that provide--
       ``(A) teacher mentoring from exemplary teachers, 
     principals, or superintendents;
       ``(B) induction and support for teachers and principals 
     during their first 3 years of employment as teachers or 
     principals, respectively;
       ``(C) incentives, including financial incentives, to retain 
     teachers who have a record of success in helping low-
     achieving students improve their academic achievement; or
       ``(D) incentives, including financial incentives, to 
     principals who have a record of improving the academic 
     achievement of all students, but particularly students from 
     economically disadvantaged families, students from racial and 
     ethnic minority groups, and students with disabilities.
       ``(5) Carrying out programs and activities that are 
     designed to improve the quality of the teacher force, such 
     as--
       ``(A) innovative professional development programs (which 
     may be provided through partnerships including institutions 
     of higher education), including programs that train teachers 
     and principals to integrate technology into curricula and 
     instruction to improve teaching, learning, and technology 
     literacy, are consistent with the requirements of section 
     9101, and are coordinated with activities carried out under 
     part D;
       ``(B) development and use of proven, cost-effective 
     strategies for the implementation of professional development 
     activities, such as through the use of technology and 
     distance learning;
       ``(C) tenure reform;
       ``(D) merit pay programs; and
       ``(E) testing of elementary school and secondary school 
     teachers in the academic subjects that the teachers teach.
       ``(6) Carrying out professional development activities 
     designed to improve the quality of principals and 
     superintendents, including the development and support of 
     academies to help talented aspiring or current principals and 
     superintendents become outstanding managers and educational 
     leaders.
       ``(7) Hiring highly qualified teachers, including teachers 
     who become highly qualified through State and local 
     alternative routes to certification, and special education 
     teachers, in order to reduce class size, particularly in the 
     early grades.
       ``(8) Carrying out teacher advancement initiatives that 
     promote professional growth and emphasize multiple career 
     paths (such as paths to becoming a career teacher, mentor 
     teacher, or exemplary teacher) and pay differentiation.
       ``(10) Carrying out programs and activities related to 
     exemplary teachers.
       ``(b) Supplement, Not Supplant.--Funds received under this 
     subpart shall be used to supplement, and not supplant, non-
     Federal funds that would otherwise be used for activities 
     authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

     ``SEC. 2131. DEFINITIONS.

       ``In this subpart:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means an entity that--
       ``(A) shall include--
       ``(i) a private or State institution of higher education 
     and the division of the institution that prepares teachers 
     and principals;
       ``(ii) a school of arts and sciences; and
       ``(iii) a high-need local educational agency; and
       ``(B) may include another local educational agency, a 
     public charter school, an elementary school or secondary 
     school, an educational service agency, a nonprofit 
     educational organization, another institution of higher 
     education, a school of arts and sciences within such an 
     institution, the division of such an institution that 
     prepares teachers and principals, a nonprofit cultural 
     organization, an entity carrying out a prekindergarten 
     program, a teacher organization, a principal organization, or 
     a business.
       ``(2) Low-performing school.--The term `low-performing 
     school' means an elementary school or secondary school that 
     is identified under section 1116.

     ``SEC. 2132. SUBGRANTS.

       ``(a) In General.--The State agency for higher education 
     for a State that receives a grant under section 2111, working 
     in conjunction with the State educational agency (if such 
     agencies are separate), shall use the funds reserved under 
     section 2113(a)(2) to make subgrants, on a competitive basis, 
     to eligible partnerships to enable such partnerships to carry 
     out the activities described in section 2134.
       ``(b) Distribution.--The State agency for higher education 
     shall ensure that--
       ``(1) such subgrants are equitably distributed by 
     geographic area within a State; or
       ``(2) eligible partnerships in all geographic areas within 
     the State are served through the subgrants.
       ``(c) Special Rule.--No single participant in an eligible 
     partnership may use more than 50 percent of the funds made 
     available to the partnership under this section.

     ``SEC. 2133. APPLICATIONS.

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

     ``SEC. 2134. USE OF FUNDS.

       ``(a) In General.--An eligible partnership that receives a 
     subgrant under section 2132 shall use the subgrant funds 
     for--
       ``(1) professional development activities in core academic 
     subjects to ensure that--
       ``(A) teachers and highly qualified paraprofessionals, and, 
     if appropriate, principals have subject matter knowledge in 
     the academic subjects that the teachers teach, including the 
     use of computer related technology to enhance student 
     learning; and
       ``(B) principals have the instructional leadership skills 
     that will help such principals work most effectively with 
     teachers to help students master core academic subjects; and
       ``(2) developing and providing assistance to local 
     educational agencies and individuals who are teachers, highly 
     qualified paraprofessionals, or principals of schools served 
     by such agencies, for sustained, high-quality professional 
     development activities that--
       ``(A) ensure that the individuals are able to use 
     challenging State academic content standards and student 
     academic achievement standards, and State assessments, to 
     improve instructional practices and improve student academic 
     achievement;
       ``(B) may include intensive programs designed to prepare 
     such individuals who will return to a school to provide 
     instruction related to the professional development described 
     in subparagraph (A) to other such individuals within such 
     school; and
       ``(C) may include activities of partnerships between one or 
     more local educational agencies, one or more schools served 
     by such local educational agencies, and one or more 
     institutions of higher education for the purpose of improving 
     teaching and learning at low-performing schools.
       ``(b) Coordination.--An eligible partnership that receives 
     a subgrant to carry out this subpart and a grant under 
     section 203 of the Higher

[[Page 25680]]

     Education Act of 1965 shall coordinate the activities carried 
     out under this subpart and the activities carried out under 
     that section 203.

                      ``Subpart 4--Accountability

     ``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

       ``(a) Improvement Plan.--After the second year of the plan 
     described in section 1119(a)(2), if a State educational 
     agency determines, based on the reports described in section 
     1119(b)(1), that a local educational agency in the State has 
     failed to make progress toward meeting the annual measurable 
     objectives described in section 1119(a)(2), for 2 consecutive 
     years, such local educational agency shall develop an 
     improvement plan that will enable the agency to meet such 
     annual measurable objectives and that specifically addresses 
     issues that prevented the agency from meeting such annual 
     measurable objectives.
       ``(b) Technical Assistance.--During the development of the 
     improvement plan described in subsection (a) and throughout 
     implementation of the plan, the State educational agency 
     shall--
       ``(1) provide technical assistance to the local educational 
     agency; and
       ``(2) provide technical assistance, if applicable, to 
     schools served by the local educational agency that need 
     assistance to enable the local educational agency to meet the 
     annual measurable objectives described in section 1119(a)(2).
       ``(c) Accountability.--After the third year of the plan 
     described in section 1119(a)(2), if the State educational 
     agency determines, based on the reports described in section 
     1119(b)(1), that the local educational agency has failed to 
     make progress toward meeting the annual measurable objectives 
     described in section 1119(a)(2), and has failed to make 
     adequate yearly progress as described under section 
     1111(b)(2)(B), for 3 consecutive years, the State educational 
     agency shall enter into an agreement with such local 
     educational agency on the use of that agency's funds under 
     this part. As part of this agreement, the State educational 
     agency--
       ``(1) shall develop, in conjunction with the local 
     educational agency, teachers, and principals, professional 
     development strategies and activities, based on 
     scientifically based research, that the local educational 
     agency will use to meet the annual measurable objectives 
     described in section 1119(a)(2) and require such agency to 
     utilize such strategies and activities; and
       ``(2)(A) except as provided in subparagraphs (B) and (C), 
     shall prohibit the use of funds received under part A of 
     title I to fund any paraprofessional hired after the date 
     such determination is made;
       ``(B) shall allow the use of such funds to fund a 
     paraprofessional hired after that date if the local 
     educational agency can demonstrate that the hiring is to fill 
     a vacancy created by the departure of another 
     paraprofessional funded under title I and such new 
     paraprofessional satisfies the requirements of section 
     1119(c); and
       ``(C) may allow the use of such funds to fund a 
     paraprofessional hired after that date if the local 
     educational agency can demonstrate--
       ``(i) that a significant influx of population has 
     substantially increased student enrollment; or
       ``(ii) that there is an increased need for translators or 
     assistance with parental involvement activities.
       ``(d) Special Rule.--During the development of the 
     strategies and activities described in subsection (c)(1), the 
     State educational agency shall, in conjunction with the local 
     educational agency, provide from funds allocated to such 
     local educational agency under subpart 2 directly to one or 
     more schools served by such local educational agency, to 
     enable teachers at the schools to choose, with continuing 
     consultation with the principal involved, professional 
     development activities that--
       ``(1) meet the requirements for professional development 
     activities described in section 9101; and
       ``(2) are coordinated with other reform efforts at the 
     schools.

                    ``Subpart 5--National Activities

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

       ``(a) National Teacher Recruitment Campaign.--The Secretary 
     is authorized to establish and carry out a national teacher 
     recruitment campaign, which may include activities carried 
     out through the National Teacher Recruitment Clearinghouse, 
     to assist high-need local educational agencies in recruiting 
     teachers (particularly those activities that are effective in 
     retaining new teachers) and training teachers and to conduct 
     a national public service campaign concerning the resources 
     for, and the routes to, entering the field of teaching. In 
     carrying out the campaign, the Secretary may promote and link 
     the activities of the campaign to the information and 
     referral activities of the National Teacher Recruitment 
     Clearinghouse. The Secretary shall coordinate activities 
     under this subsection with State and regional recruitment 
     activities.
       ``(b) School Leadership.--
       ``(1) In general.--The Secretary is authorized to establish 
     and carry out a national principal recruitment program to 
     assist high-need local educational agencies in recruiting and 
     training principals (including assistant principals) through 
     such activities as--
       ``(A) providing financial incentives to aspiring new 
     principals;
       ``(B) providing stipends to principals who mentor new 
     principals;
       ``(C) carrying out professional development programs in 
     instructional leadership and management; and
       ``(D) providing incentives that are appropriate for 
     teachers or individuals from other fields who want to become 
     principals and that are effective in retaining new 
     principals.
       ``(2) Grants.--If the Secretary uses sums made available 
     under section 2103(b) to carry out paragraph (1), the 
     Secretary shall carry out such paragraph by making grants, on 
     a competitive basis, to--
       ``(A) high-need local educational agencies;
       ``(B) consortia of high-need local educational agencies; 
     and
       ``(C) partnerships of high-need local educational agencies, 
     nonprofit organizations, and institutions of higher 
     education.
       ``(c) Advanced Certification or Advanced Credentialing.--
       ``(1) In general.--The Secretary is authorized to support 
     activities to encourage and support teachers seeking advanced 
     certification or advanced credentialing through high quality 
     professional teacher enhancement programs designed to improve 
     teaching and learning.
       ``(2) Implementation.--In carrying out paragraph (1), the 
     Secretary shall make grants to eligible entities to--
       ``(A) develop teacher standards that include measures tied 
     to increased student academic achievement; and
       ``(B) promote outreach, teacher recruitment, teacher 
     subsidy, or teacher support programs, related to teacher 
     certification or credentialing by the National Board for 
     Professional Teaching Standards, the National Council on 
     Teacher Quality, or other nationally recognized certification 
     or credentialing organizations.
       ``(3) Eligible entities.--In this subsection, the term 
     `eligible entity' includes--
       ``(A) a State educational agency;
       ``(B) a local educational agency;
       ``(C) the National Board for Professional Teaching 
     Standards, in partnership with a high-need local educational 
     agency or a State educational agency;
       ``(D) the National Council on Teacher Quality, in 
     partnership with a high-need local educational agency or a 
     State educational agency; or
       ``(E) another recognized entity, including another 
     recognized certification or credentialing organization, in 
     partnership with a high-need local educational agency or a 
     State educational agency.
       ``(d) Special Education Teacher Training.--The Secretary is 
     authorized to award a grant to the University of Northern 
     Colorado to enable such university to provide, to other 
     institutions of higher education, assistance in training 
     special education teachers.
       ``(e) Early Childhood Educator Professional Development.--
       ``(1) Purpose.--The purpose of this subsection is to 
     enhance the school readiness of young children, particularly 
     disadvantaged young children, and to prevent young children 
     from encountering difficulties once the children enter 
     school, by improving the knowledge and skills of early 
     childhood educators who work in communities that have high 
     concentrations of children living in poverty.
       ``(2) Program authorized.--
       ``(A) Grants to partnerships.--The Secretary is authorized 
     to carry out the purpose of this subsection by awarding 
     grants, on a competitive basis, to partnerships consisting 
     of--
       ``(i)(I) one or more institutions of higher education that 
     provide professional development for early childhood 
     educators who work with children from low-income families in 
     high-need communities; or
       ``(II) another public or private entity that provides such 
     professional development;
       ``(ii) one or more public agencies (including local 
     educational agencies, State educational agencies, State human 
     services agencies, and State and local agencies administering 
     programs under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.), Head Start agencies, or 
     private organizations; and
       ``(iii) to the extent feasible, an entity with demonstrated 
     experience in providing training to educators in early 
     childhood education programs concerning identifying and 
     preventing behavior problems or working with children 
     identified as or suspected to be victims of abuse.
       ``(B) Duration and number of grants.--
       ``(i) Duration.--The Secretary shall award grants under 
     this subsection for periods of not more than 4 years.
       ``(ii) Number.--No partnership may receive more than one 
     grant under this subsection.
       ``(3) Applications.--
       ``(A) Applications required.--Any partnership that desires 
     to receive a grant under this subsection shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(B) Contents.--Each such application shall include--
       ``(i) a description of the high-need community to be served 
     by the project proposed to be carried out through the grant, 
     including such demographic and socioeconomic information as 
     the Secretary may request;
       ``(ii) information on the quality of the early childhood 
     educator professional development program currently conducted 
     (as of the date of the submission of the application) by the 
     institution of higher education or another provider in the 
     partnership;
       ``(iii) the results of a needs assessment that the entities 
     in the partnership have undertaken to determine the most 
     critical professional development needs of the early 
     childhood educators to be served by the partnership and in 
     the

[[Page 25681]]

     broader community, and a description of how the proposed 
     project will address those needs;
       ``(iv) a description of how the proposed project will be 
     carried out, including a description of--

       ``(I) how individuals will be selected to participate;
       ``(II) the types of professional development activities, 
     based on scientifically based research, that will be carried 
     out;
       ``(III) how research on effective professional development 
     and on adult learning will be used to design and deliver 
     project activities;
       ``(IV) how the project will be coordinated with and build 
     on, and will not supplant or duplicate, early childhood 
     education professional development activities in the high-
     need community;
       ``(V) how the project will train early childhood educators 
     to provide developmentally appropriate school-readiness 
     services that are based on the best available research on 
     early childhood pedagogy and child development and learning 
     domains;
       ``(VI) how the project will train early childhood educators 
     to meet the diverse educational needs of children in the 
     community, including children who have limited English 
     proficiency, children with disabilities, or children with 
     other special needs; and
       ``(VII) how the project will train early childhood 
     educators in identifying and preventing behavioral problems 
     in children or working with children identified as or 
     suspected to be victims of abuse;

       ``(v) a description of--

       ``(I) the specific objectives that the partnership will 
     seek to attain through the project, and the methods that the 
     partnership will use to measure progress toward attainment of 
     those objectives; and
       ``(II) how the objectives and the measurement methods align 
     with the achievement indicators established by the Secretary 
     under paragraph (6)(A);

       ``(vi) a description of the partnership's plan for 
     continuing the activities carried out under the project after 
     Federal funding ceases;
       ``(vii) an assurance that, where applicable, the project 
     will provide appropriate professional development to 
     volunteers working directly with young children, as well as 
     to paid staff; and
       ``(viii) an assurance that, in developing the application 
     and in carrying out the project, the partnership has 
     consulted with, and will consult with, relevant agencies, 
     early childhood educator organizations, and early childhood 
     providers that are not members of the partnership.
       ``(4) Selection of grant recipients.--
       ``(A) Criteria.--The Secretary shall select partnerships to 
     receive grants under this subsection on the basis of the 
     degree to which the communities proposed to be served require 
     assistance and the quality of the applications submitted 
     under paragraph (3).
       ``(B) Geographic distribution.--In selecting partnerships 
     to receive grants under this subsection, the Secretary shall 
     seek to ensure that communities in different regions of the 
     Nation, as well as both urban and rural communities, are 
     served.
       ``(5) Uses of funds.--
       ``(A) In general.--Each partnership receiving a grant under 
     this subsection shall use the grant funds to carry out 
     activities that will improve the knowledge and skills of 
     early childhood educators who are working in early childhood 
     programs that are located in high-need communities and serve 
     concentrations of children from low-income families.
       ``(B) Allowable activities.--Such activities may include--
       ``(i) professional development for early childhood 
     educators, particularly to familiarize those educators with 
     the application of recent research on child, language, and 
     literacy development and on early childhood pedagogy;
       ``(ii) professional development for early childhood 
     educators in working with parents, so that the educators and 
     parents can work together to provide and support 
     developmentally appropriate school-readiness services that 
     are based on scientifically based research on early childhood 
     pedagogy and child development and learning domains;
       ``(iii) professional development for early childhood 
     educators to work with children who have limited English 
     proficiency, children with disabilities, and children with 
     other special needs;
       ``(iv) professional development to train early childhood 
     educators in identifying and preventing behavioral problems 
     in children or working with children identified as or 
     suspected to be victims of abuse;
       ``(v) activities that assist and support early childhood 
     educators during their first 3 years in the field;
       ``(vi) development and implementation of early childhood 
     educator professional development programs that make use of 
     distance learning and other technologies;
       ``(vii) professional development activities related to the 
     selection and use of screening and diagnostic assessments to 
     improve teaching and learning; and
       ``(viii) data collection, evaluation, and reporting needed 
     to meet the requirements of paragraph (6) relating to 
     accountability.
       ``(6) Accountability.--
       ``(A) Achievement indicators.--On the date on which the 
     Secretary first issues a notice soliciting applications for 
     grants under this subsection, the Secretary shall announce 
     achievement indicators for this subsection, which shall be 
     designed--
       ``(i) to measure the quality and accessibility of the 
     professional development provided;
       ``(ii) to measure the impact of that professional 
     development on the early childhood education provided by the 
     individuals who receive the professional development; and
       ``(iii) to provide such other measures of program impact as 
     the Secretary determines to be appropriate.
       ``(B) Annual reports; termination.--
       ``(i) Annual reports.--Each partnership receiving a grant 
     under this subsection shall report annually to the Secretary 
     on the partnership's progress toward attaining the 
     achievement indicators.
       ``(ii) Termination.--The Secretary may terminate a grant 
     under this subsection at any time if the Secretary determines 
     that the partnership receiving the grant is not making 
     satisfactory progress toward attaining the achievement 
     indicators.
       ``(7) Cost-sharing.--
       ``(A) In general.--Each partnership carrying out a project 
     through a grant awarded under this subsection shall provide, 
     from sources other than the program carried out under this 
     subsection, which may include Federal sources--
       ``(i) at least 50 percent of the total cost of the project 
     for the grant period; and
       ``(ii) at least 20 percent of the project cost for each 
     year.
       ``(B) Acceptable contributions.--A partnership may meet the 
     requirements of subparagraph (A) by providing contributions 
     in cash or in kind, fairly evaluated, including plant, 
     equipment, and services.
       ``(C) Waivers.--The Secretary may waive or modify the 
     requirements of subparagraph (A) for partnerships in cases of 
     demonstrated financial hardship.
       ``(8) Federal coordination.--The Secretary and the 
     Secretary of Health and Human Services shall coordinate 
     activities carried out through programs under this subsection 
     with activities carried out through other early childhood 
     programs administered by the Secretary or the Secretary of 
     Health and Human Services.
       ``(9) Definitions.--In this subsection:
       ``(A) Early childhood educator.--The term `early childhood 
     educator' means a person providing, or employed by a provider 
     of, nonresidential child care services (including center-
     based, family-based, and in-home child care services) that is 
     legally operating under State law, and that complies with 
     applicable State and local requirements for the provision of 
     child care services to children at any age from birth through 
     the age at which a child may start kindergarten in that 
     State.
       ``(B) High-need community.--
       ``(i) In general.--The term `high-need community' means--

       ``(I) a political subdivision of a State, or a portion of a 
     political subdivision of a State, in which at least 50 
     percent of the children are from low-income families; or
       ``(II) a political subdivision of a State that is among the 
     10 percent of political subdivisions of the State having the 
     greatest numbers of such children.

       ``(ii) Determination.--In determining which communities are 
     described in clause (i), the Secretary shall use such data as 
     the Secretary determines are most accurate and appropriate.
       ``(C) Low-income family.--The term `low-income family' 
     means a family with an income below the poverty line for the 
     most recent fiscal year for which satisfactory data are 
     available.
       ``(f) Teacher Mobility.--
       ``(1) Establishment.--The Secretary is authorized to 
     establish a panel to be known as the National Panel on 
     Teacher Mobility (referred to in this subsection as the 
     `panel').
       ``(2) Membership.--The panel shall be composed of 12 
     members appointed by the Secretary. The Secretary shall 
     appoint the members from among practitioners and experts with 
     experience relating to teacher mobility, such as teachers, 
     members of teacher certification or licensing bodies, faculty 
     of institutions of higher education that prepare teachers, 
     and State policymakers with such experience.
       ``(3) Period of appointment; vacancies.--Members shall be 
     appointed for the life of the panel. Any vacancy in the panel 
     shall not affect the powers of the panel, but shall be filled 
     in the same manner as the original appointment.
       ``(4) Duties.--
       ``(A) Study.--
       ``(i) In general.--The panel shall study strategies for 
     increasing mobility and employment opportunities for highly 
     qualified teachers, especially for States with teacher 
     shortages and States with school districts or schools that 
     are difficult to staff.
       ``(ii) Data and analysis.--As part of the study, the panel 
     shall evaluate the desirability and feasibility of State 
     initiatives that support teacher mobility by collecting data 
     and conducting effective analysis concerning--

       ``(I) teacher supply and demand;
       ``(II) the development of recruitment and hiring strategies 
     that support teachers; and
       ``(III) increasing reciprocity of certification and 
     licensing across States.

       ``(B) Report.--Not later than 1 year after the date on 
     which all members of the panel have been appointed, the panel 
     shall submit to the Secretary and to the appropriate 
     committees of Congress a report containing the results of the 
     study.
       ``(5) Powers.--
       ``(A) Hearings.--The panel may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the panel considers advisable to 
     carry out the objectives of this subsection.
       ``(B) Information from federal agencies.--The panel may 
     secure directly from any Federal

[[Page 25682]]

     department or agency such information as the panel considers 
     necessary to carry out the provisions of this subsection. 
     Upon request of a majority of the members of the panel, the 
     head of such department or agency shall furnish such 
     information to the panel.
       ``(C) Postal services.--The panel may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       ``(6) Personnel.--
       ``(A) Travel expenses.--The members of the panel shall not 
     receive compensation for the performance of services for the 
     panel, but shall be allowed travel expenses, including per 
     diem in lieu of subsistence, at rates authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5, United States Code, while away from their homes or 
     regular places of business in the performance of services for 
     the panel. Notwithstanding section 1342 of title 31, United 
     States Code, the Secretary may accept the voluntary and 
     uncompensated services of members of the panel.
       ``(B) Detail of government employees.--Any Federal 
     Government employee may be detailed to the panel without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       ``(7) Permanent committee.--Section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

     ``SEC. 2201. PURPOSE; DEFINITIONS.

       ``(a) Purpose.--The purpose of this part is to improve the 
     academic achievement of students in the areas of mathematics 
     and science by encouraging State educational agencies, 
     institutions of higher education, local educational agencies, 
     elementary schools, and secondary schools to participate in 
     programs that--
       ``(1) improve and upgrade the status and stature of 
     mathematics and science teaching by encouraging institutions 
     of higher education to assume greater responsibility for 
     improving mathematics and science teacher education through 
     the establishment of a comprehensive, integrated system of 
     recruiting, training, and advising mathematics and science 
     teachers;
       ``(2) focus on the education of mathematics and science 
     teachers as a career-long process that continuously 
     stimulates teachers' intellectual growth and upgrades 
     teachers' knowledge and skills;
       ``(3) bring mathematics and science teachers in elementary 
     schools and secondary schools together with scientists, 
     mathematicians, and engineers to increase the subject matter 
     knowledge of mathematics and science teachers and improve 
     such teachers' teaching skills through the use of 
     sophisticated laboratory equipment and work space, computing 
     facilities, libraries, and other resources that institutions 
     of higher education are better able to provide than the 
     elementary schools and secondary schools;
       ``(4) develop more rigorous mathematics and science 
     curricula that are aligned with challenging State and local 
     academic content standards and with the standards expected 
     for postsecondary study in engineering, mathematics, and 
     science; and
       ``(5) improve and expand training of mathematics and 
     science teachers, including training such teachers in the 
     effective integration of technology into curricula and 
     instruction.
       ``(b) Definitions.--In this part:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means a partnership that--
       ``(A) shall include--
       ``(i) if grants are awarded under section 2202(a)(1), a 
     State educational agency;
       ``(ii) an engineering, mathematics, or science department 
     of an institution of higher education; and
       ``(iii) a high-need local educational agency; and
       ``(B) may include--
       ``(i) another engineering, mathematics, science, or teacher 
     training department of an institution of higher education;
       ``(ii) additional local educational agencies, public 
     charter schools, public or private elementary schools or 
     secondary schools, or a consortium of such schools;
       ``(iii) a business; or
       ``(iv) a nonprofit or for-profit organization of 
     demonstrated effectiveness in improving the quality of 
     mathematics and science teachers.
       ``(2) Summer workshop or institute.--The term `summer 
     workshop or institute' means a workshop or institute, 
     conducted during the summer, that--
       ``(A) is conducted for a period of not less than 2 weeks;
       ``(B) includes, as a component, a program that provides 
     direct interaction between students and faculty; and
       ``(C) provides for followup training during the academic 
     year that is conducted in the classroom for a period of not 
     less than 3 consecutive or nonconsecutive days, except that--
       ``(i) if the workshop or institute is conducted during a 2-
     week period, the followup training shall be conducted for a 
     period of not less than 4 days; and
       ``(ii) if the followup training is for teachers in rural 
     school districts, the followup training may be conducted 
     through distance learning.

     ``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS.

       ``(a) Grants Authorized.--
       ``(1) Grants to partnerships.--For any fiscal year for 
     which the funds appropriated under section 2203 are less than 
     $100,000,000, the Secretary is authorized to award grants, on 
     a competitive basis, to eligible partnerships to carry out 
     the authorized activities described in subsection (c).
       ``(2) Grants to state educational agencies.--
       ``(A) In general.--For any fiscal year for which the funds 
     appropriated under section 2203 equal or exceed 
     $100,000,000--
       ``(i) if an eligible partnership in the State was 
     previously awarded a grant under paragraph (1), and the grant 
     period has not ended, the Secretary shall reserve funds in a 
     sufficient amount to make payments to the partnership in 
     accordance with the terms of the grant; and
       ``(ii) the Secretary is authorized to award grants to State 
     educational agencies to enable such agencies to award 
     subgrants, on a competitive basis, to eligible partnerships 
     to carry out the authorized activities described in 
     subsection (c).
       ``(B) Allotment.--The Secretary shall allot the amount made 
     available under this part for a fiscal year and not reserved 
     under subparagraph (A)(i) among the State educational 
     agencies in proportion to the number of children, aged 5 to 
     17, who are from families with incomes below the poverty line 
     and reside in a State for the most recent fiscal year for 
     which satisfactory data are available, as compared to the 
     number of such children who reside in all such States for 
     such year.
       ``(C) Minimum allotment.--The amount of any State 
     educational agency's allotment under subparagraph (B) for any 
     fiscal year may not be less than \1/2\ of 1 percent of the 
     amount made available under this part for such year.
       ``(3) Duration.--The Secretary shall award grants under 
     this part for a period of 3 years.
       ``(4) Supplement, not supplant.--Funds received under this 
     part shall be used to supplement, and not supplant, funds 
     that would otherwise be used for activities authorized under 
     this part.
       ``(b) Application Requirements.--
       ``(1) In general.--Each eligible partnership desiring a 
     grant or subgrant under this part shall submit an 
     application--
       ``(A) in the case of grants awarded pursuant to subsection 
     (a)(1), to the Secretary, at such time, in such manner, and 
     accompanied by such information as the Secretary may require; 
     or
       ``(B) in the case of subgrants awarded pursuant to 
     subsection (a)(2), to the State educational agency, at such 
     time, in such manner, and accompanied by such information as 
     the State educational agency may require.
       ``(2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall include--
       ``(A) the results of a comprehensive assessment of the 
     teacher quality and professional development needs of any 
     schools, local educational agencies, and State educational 
     agencies that comprise the eligible partnership with respect 
     to the teaching and learning of mathematics and science;
       ``(B) a description of how the activities to be carried out 
     by the eligible partnership will be aligned with challenging 
     State academic content and student academic achievement 
     standards in mathematics and science and with other 
     educational reform activities that promote student academic 
     achievement in mathematics and science;
       ``(C) a description of how the activities to be carried out 
     by the eligible partnership will be based on a review of 
     scientifically based research, and an explanation of how the 
     activities are expected to improve student academic 
     achievement and strengthen the quality of mathematics and 
     science instruction;
       ``(D) a description of--
       ``(i) how the eligible partnership will carry out the 
     authorized activities described in subsection (c); and
       ``(ii) the eligible partnership's evaluation and 
     accountability plan described in subsection (e); and
       ``(E) a description of how the eligible partnership will 
     continue the activities funded under this part after the 
     original grant or subgrant period has expired.
       ``(c) Authorized Activities.--An eligible partnership shall 
     use funds provided under this part for one or more of the 
     following activities related to elementary schools or 
     secondary schools:
       ``(1) Creating opportunities for enhanced and ongoing 
     professional development of mathematics and science teachers 
     that improves the subject matter knowledge of such teachers.
       ``(2) Promoting strong teaching skills for mathematics and 
     science teachers and teacher educators, including integrating 
     reliable scientifically based research teaching methods and 
     technology-based teaching methods into the curriculum.
       ``(3) Establishing and operating mathematics and science 
     summer workshops or institutes, including followup training, 
     for elementary school and secondary school mathematics and 
     science teachers that--
       ``(A) shall--
       ``(i) directly relate to the curriculum and academic areas 
     in which the teacher provides instruction, and focus only 
     secondarily on pedagogy;
       ``(ii) enhance the ability of the teacher to understand and 
     use the challenging State academic content standards for 
     mathematics and science and to select appropriate curricula; 
     and
       ``(iii) train teachers to use curricula that are--

       ``(I) based on scientific research;
       ``(II) aligned with challenging State academic content 
     standards; and
       ``(III) object-centered, experiment-oriented, and concept- 
     and content-based; and

       ``(B) may include--

[[Page 25683]]

       ``(i) programs that provide teachers and prospective 
     teachers with opportunities to work under the guidance of 
     experienced teachers and college faculty;
       ``(ii) instruction in the use of data and assessments to 
     inform and instruct classroom practice; and
       ``(iii) professional development activities, including 
     supplemental and followup activities, such as curriculum 
     alignment, distance learning, and activities that train 
     teachers to utilize technology in the classroom.
       ``(4) Recruiting mathematics, engineering, and science 
     majors to teaching through the use of--
       ``(A) signing and performance incentives that are linked to 
     activities proven effective in retaining teachers, for 
     individuals with demonstrated professional experience in 
     mathematics, engineering, or science;
       ``(B) stipends provided to mathematics and science teachers 
     for certification through alternative routes;
       ``(C) scholarships for teachers to pursue advanced course 
     work in mathematics, engineering, or science; and
       ``(D) other programs that the State educational agency 
     determines to be effective in recruiting and retaining 
     individuals with strong mathematics, engineering, or science 
     backgrounds.
       ``(5) Developing or redesigning more rigorous mathematics 
     and science curricula that are aligned with challenging State 
     and local academic content standards and with the standards 
     expected for postsecondary study in mathematics and science.
       ``(6) Establishing distance learning programs for 
     mathematics and science teachers using curricula that are 
     innovative, content-based, and based on scientifically based 
     research that is current as of the date of the program 
     involved.
       ``(7) Designing programs to prepare a mathematics or 
     science teacher at a school to provide professional 
     development to other mathematics or science teachers at the 
     school and to assist beginning and other teachers at the 
     school, including (if applicable) a mechanism to integrate 
     the teacher's experiences from a summer workshop or institute 
     into the provision of professional development and 
     assistance.
       ``(8) Establishing and operating programs to bring 
     mathematics and science teachers into contact with working 
     scientists, mathematicians, and engineers, to expand such 
     teachers' subject matter knowledge of and research in science 
     and mathematics.
       ``(9) Designing programs to identify and develop exemplary 
     mathematics and science teachers in the kindergarten through 
     grade 8 classrooms.
       ``(10) Training mathematics and science teachers and 
     developing programs to encourage young women and other 
     underrepresented individuals in mathematics and science 
     careers (including engineering and technology) to pursue 
     postsecondary degrees in majors leading to such careers.
       ``(d) Coordination and Consultation.--
       ``(1) Partnership grants.--An eligible partnership 
     receiving a grant under section 203 of the Higher Education 
     Act of 1965 shall coordinate the use of such funds with any 
     related activities carried out by such partnership with funds 
     made available under this part.
       ``(2) National science foundation.--In carrying out the 
     activities authorized by this part, the Secretary shall 
     consult and coordinate with the Director of the National 
     Science Foundation, particularly with respect to the 
     appropriate roles for the Department and the Foundation in 
     the conduct of summer workshops, institutes, or partnerships 
     to improve mathematics and science teaching in elementary 
     schools and secondary schools.
       ``(e) Evaluation and Accountability Plan.--
       ``(1) In general.--Each eligible partnership receiving a 
     grant or subgrant under this part shall develop an evaluation 
     and accountability plan for activities assisted under this 
     part that includes rigorous objectives that measure the 
     impact of activities funded under this part.
       ``(2) Contents.--The plan developed pursuant to paragraph 
     (1)--
       ``(A) shall include measurable objectives to increase the 
     number of mathematics and science teachers who participate in 
     content-based professional development activities;
       ``(B) shall include measurable objectives for improved 
     student academic achievement on State mathematics and science 
     assessments or, where applicable, an International 
     Mathematics and Science Study assessment; and
       ``(C) may include objectives and measures for--
       ``(i) increased participation by students in advanced 
     courses in mathematics and science;
       ``(ii) increased percentages of elementary school teachers 
     with academic majors or minors, or group majors or minors, in 
     mathematics, engineering, or the sciences; and
       ``(iii) increased percentages of secondary school classes 
     in mathematics and science taught by teachers with academic 
     majors in mathematics, engineering, and science.
       ``(f) Report.--Each eligible partnership receiving a grant 
     or subgrant under this part shall report annually to the 
     Secretary regarding the eligible partnership's progress in 
     meeting the objectives described in the accountability plan 
     of the partnership under subsection (e).

     ``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $450,000,000 for fiscal year 2002 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

     ``SEC. 2301. DEFINITIONS.

       ``In this chapter:
       ``(1) Armed forces.--The term `Armed Forces' means the 
     Army, Navy, Air Force, Marine Corps, and Coast Guard.
       ``(2) Member of the armed forces.--The term `member of the 
     Armed Forces' includes a former member of the Armed Forces.
       ``(3) Program.--The term `Program' means the Troops-to-
     Teachers Program authorized by this chapter.
       ``(4) Reserve component.--The term `reserve component' 
     means--
       ``(A) the Army National Guard of the United States;
       ``(B) the Army Reserve;
       ``(C) the Naval Reserve;
       ``(D) the Marine Corps Reserve;
       ``(E) the Air National Guard of the United States;
       ``(F) the Air Force Reserve; and
       ``(G) the Coast Guard Reserve.
       ``(5) Secretary concerned.--The term `Secretary concerned' 
     means--
       ``(A) the Secretary of the Army, with respect to matters 
     concerning a reserve component of the Army;
       ``(B) the Secretary of the Navy, with respect to matters 
     concerning reserve components named in subparagraphs (C) and 
     (D) of paragraph (4);
       ``(C) the Secretary of the Air Force, with respect to 
     matters concerning a reserve component of the Air Force; and
       ``(D) the Secretary of Transportation, with respect to 
     matters concerning the Coast Guard Reserve.

     ``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

       ``(a) Purpose.--The purpose of this section is to authorize 
     a mechanism for the funding and administration of the Troops-
     to-Teachers Program, which was originally established by the 
     Troops-to-Teachers Program Act of 1999 (title XVII of the 
     National Defense Authorization Act for Fiscal Year 2000) (20 
     U.S.C. 9301 et seq.).
       ``(b) Program Authorized.--The Secretary may carry out a 
     program (to be known as the `Troops-to-Teachers Program')--
       ``(1) to assist eligible members of the Armed Forces 
     described in section 2303 to obtain certification or 
     licensing as elementary school teachers, secondary school 
     teachers, or vocational or technical teachers, and to become 
     highly qualified teachers; and
       ``(2) to facilitate the employment of such members--
       ``(A) by local educational agencies or public charter 
     schools that the Secretary identifies as--
       ``(i) receiving grants under part A of title I as a result 
     of having within their jurisdictions concentrations of 
     children from low-income families; or
       ``(ii) experiencing a shortage of highly qualified 
     teachers, in particular a shortage of science, mathematics, 
     special education, or vocational or technical teachers; and
       ``(B) in elementary schools or secondary schools, or as 
     vocational or technical teachers.
       ``(c) Administration of Program.--The Secretary shall enter 
     into a memorandum of agreement with the Secretary of Defense 
     under which the Secretary of Defense, acting through the 
     Defense Activity for Non-Traditional Education Support of the 
     Department of Defense, will perform the actual administration 
     of the Program, other than section 2306. Using funds 
     appropriated to the Secretary to carry out this chapter, the 
     Secretary shall transfer to the Secretary of Defense such 
     amounts as may be necessary to administer the Program 
     pursuant to the memorandum of agreement.
       ``(d) Information Regarding Program.--The Secretary shall 
     provide to the Secretary of Defense information regarding the 
     Program and applications to participate in the Program, for 
     distribution as part of preseparation counseling provided 
     under section 1142 of title 10, United States Code, to 
     members of the Armed Forces described in section 2303.
       ``(e) Placement Assistance and Referral Services.--The 
     Secretary may, with the agreement of the Secretary of 
     Defense, provide placement assistance and referral services 
     to members of the Armed Forces who meet the criteria 
     described in section 2303, including meeting education 
     qualification requirements under subsection 2303(c)(2). Such 
     members shall not be eligible for financial assistance under 
     subsections (c) and (d) of section 2304.

     ``SEC. 2303. RECRUITMENT AND SELECTION OF PROGRAM 
                   PARTICIPANTS.

       ``(a) Eligible Members.--The following members of the Armed 
     Forces are eligible for selection to participate in the 
     Program:
       ``(1) Any member who--
       ``(A) on or after October 1, 1999, becomes entitled to 
     retired or retainer pay in the manner provided in title 10 or 
     title 14, United States Code;
       ``(B) has an approved date of retirement that is within 1 
     year after the date on which the member submits an 
     application to participate in the Program; or
       ``(C) has been transferred to the Retired Reserve.
       ``(2) Any member who, on or after the date of enactment of 
     the No Child Left Behind Act of 2001--
       ``(A)(i) is separated or released from active duty after 6 
     or more years of continuous active

[[Page 25684]]

     duty immediately before the separation or release; or
       ``(ii) has completed a total of at least 10 years of active 
     duty service, 10 years of service computed under section 
     12732 of title 10, United States Code, or 10 years of any 
     combination of such service; and
       ``(B) executes a reserve commitment agreement for a period 
     of not less than 3 years under subsection (e)(2).
       ``(3) Any member who, on or after the date of enactment of 
     the No Child Left Behind Act of 2001, is retired or separated 
     for physical disability under chapter 61 of title 10, United 
     States Code.
       ``(4) Any member who--
       ``(A) during the period beginning on October 1, 1990, and 
     ending on September 30, 1999, was involuntarily discharged or 
     released from active duty for purposes of a reduction of 
     force after 6 or more years of continuous active duty 
     immediately before the discharge or release; or
       ``(B) applied for the teacher placement program 
     administered under section 1151 of title 10, United States 
     Code, before the repeal of that section, and satisfied the 
     eligibility criteria specified in subsection (c) of such 
     section 1151.
       ``(b) Submission of Applications.--
       ``(1) Form and submission.--Selection of eligible members 
     of the Armed Forces to participate in the Program shall be 
     made on the basis of applications submitted to the Secretary 
     within the time periods specified in paragraph (2). An 
     application shall be in such form and contain such 
     information as the Secretary may require.
       ``(2) Time for submission.--An application shall be 
     considered to be submitted on a timely basis under paragraph 
     (1) if--
       ``(A) in the case of a member described in paragraph 
     (1)(A), (2), or (3) of subsection (a), the application is 
     submitted not later than 4 years after the date on which the 
     member is retired or separated or released from active duty, 
     whichever applies to the member; or
       ``(B) in the case of a member described in subsection 
     (a)(4), the application is submitted not later than September 
     30, 2003.
       ``(c) Selection Criteria.--
       ``(1) Establishment.--Subject to paragraphs (2) and (3), 
     the Secretary shall prescribe the criteria to be used to 
     select eligible members of the Armed Forces to participate in 
     the Program.
       ``(2) Educational background.--
       ``(A) Elementary or secondary school teacher.--If a member 
     of the Armed Forces described in paragraph (1), (2), or (3) 
     of subsection (a) is applying for assistance for placement as 
     an elementary school or secondary school teacher, the 
     Secretary shall require the member to have received a 
     baccalaureate or advanced degree from an accredited 
     institution of higher education.
       ``(B) Vocational or technical teacher.--If a member of the 
     Armed Forces described in paragraph (1), (2), or (3) of 
     subsection (a) is applying for assistance for placement as a 
     vocational or technical teacher, the Secretary shall require 
     the member--
       ``(i) to have received the equivalent of 1 year of college 
     from an accredited institution of higher education and have 6 
     or more years of military experience in a vocational or 
     technical field; or
       ``(ii) to otherwise meet the certification or licensing 
     requirements for a vocational or technical teacher in the 
     State in which the member seeks assistance for placement 
     under the Program.
       ``(3) Honorable service.--A member of the Armed Forces is 
     eligible to participate in the Program only if the member's 
     last period of service in the Armed Forces was honorable, as 
     characterized by the Secretary concerned (as defined in 
     section 101(a)(9) of title 10, United States Code). A member 
     selected to participate in the Program before the retirement 
     of the member or the separation or release of the member from 
     active duty may continue to participate in the Program after 
     the retirement, separation, or release only if the member's 
     last period of service is characterized as honorable by the 
     Secretary concerned (as so defined).
       ``(d) Selection Priorities.--In selecting eligible members 
     of the Armed Forces to receive assistance under the Program, 
     the Secretary shall give priority to members who have 
     educational or military experience in science, mathematics, 
     special education, or vocational or technical subjects and 
     agree to seek employment as science, mathematics, or special 
     education teachers in elementary schools or secondary schools 
     or in other schools under the jurisdiction of a local 
     educational agency.
       ``(e) Other Conditions on Selection.--
       ``(1) Selection subject to funding.--The Secretary may not 
     select an eligible member of the Armed Forces to participate 
     in the Program under this section and receive financial 
     assistance under section 2304 unless the Secretary has 
     sufficient appropriations for the Program available at the 
     time of the selection to satisfy the obligations to be 
     incurred by the United States under section 2304 with respect 
     to the member.
       ``(2) Reserve commitment agreement.--The Secretary may not 
     select an eligible member of the Armed Forces described in 
     subsection (a)(2)(A) to participate in the Program under this 
     section and receive financial assistance under section 2304 
     unless--
       ``(A) the Secretary notifies the Secretary concerned and 
     the member that the Secretary has reserved a full stipend or 
     bonus under section 2304 for the member; and
       ``(B) the member executes a written agreement with the 
     Secretary concerned to serve as a member of the Selected 
     Reserve of a reserve component of the Armed Forces for a 
     period of not less than 3 years (in addition to any other 
     reserve commitment the member may have).

     ``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL 
                   ASSISTANCE.

       ``(a) Participation Agreement.--
       ``(1) In general.--An eligible member of the Armed Forces 
     selected to participate in the Program under section 2303 and 
     receive financial assistance under this section shall be 
     required to enter into an agreement with the Secretary in 
     which the member agrees--
       ``(A) within such time as the Secretary may require, to 
     obtain certification or licensing as an elementary school 
     teacher, secondary school teacher, or vocational or technical 
     teacher, and to become a highly qualified teacher; and
       ``(B) to accept an offer of full-time employment as an 
     elementary school teacher, secondary school teacher, or 
     vocational or technical teacher for not less than 3 school 
     years with a high-need local educational agency or public 
     charter school, as such terms are defined in section 2101, to 
     begin the school year after obtaining that certification or 
     licensing.
       ``(2) Waiver.--The Secretary may waive the 3-year 
     commitment described in paragraph (1)(B) for a participant if 
     the Secretary determines such waiver to be appropriate. If 
     the Secretary provides the waiver, the participant shall not 
     be considered to be in violation of the agreement and shall 
     not be required to provide reimbursement under subsection 
     (f), for failure to meet the 3-year commitment.
       ``(b) Violation of Participation Agreement; Exceptions.--A 
     participant in the Program shall not be considered to be in 
     violation of the participation agreement entered into under 
     subsection (a) during any period in which the participant--
       ``(1) is pursuing a full-time course of study related to 
     the field of teaching at an institution of higher education;
       ``(2) is serving on active duty as a member of the Armed 
     Forces;
       ``(3) is temporarily totally disabled for a period of time 
     not to exceed 3 years as established by sworn affidavit of a 
     qualified physician;
       ``(4) is unable to secure employment for a period not to 
     exceed 12 months by reason of the care required by a spouse 
     who is disabled;
       ``(5) is a highly qualified teacher who is seeking and 
     unable to find full-time employment as a teacher in an 
     elementary school or secondary school or as a vocational or 
     technical teacher for a single period not to exceed 27 
     months; or
       ``(6) satisfies the provisions of additional reimbursement 
     exceptions that may be prescribed by the Secretary.
       ``(c) Stipend for Participants.--
       ``(1) Stipend authorized.--Subject to paragraph (2), the 
     Secretary may pay to a participant in the Program selected 
     under section 2303 a stipend in an amount of not more than 
     $5,000.
       ``(2) Limitation.--The total number of stipends that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     5,000.
       ``(d) Bonus for Participants.--
       ``(1) Bonus authorized.--Subject to paragraph (2), the 
     Secretary may, in lieu of paying a stipend under subsection 
     (c), pay a bonus of $10,000 to a participant in the Program 
     selected under section 2303 who agrees in the participation 
     agreement under subsection (a) to become a highly qualified 
     teacher and to accept full-time employment as an elementary 
     school teacher, secondary school teacher, or vocational or 
     technical teacher for not less than 3 school years in a high-
     need school.
       ``(2) Limitation.--The total number of bonuses that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     3,000.
       ``(3) High-need school defined.--In this subsection, the 
     term `high-need school' means a public elementary school, 
     public secondary school, or public charter school that meets 
     one or more of the following criteria:
       ``(A) Low-income children.--At least 50 percent of the 
     students enrolled in the school were from low-income families 
     (as described in section 2302(b)(2)(A)(i)).
       ``(B) Children with disabilities.--The school has a large 
     percentage of students who qualify for assistance under part 
     B of the Individuals with Disabilities Education Act.
       ``(e) Treatment of Stipend and Bonus.--A stipend or bonus 
     paid under this section to a participant in the Program shall 
     be taken into account in determining the eligibility of the 
     participant for Federal student financial assistance provided 
     under title IV of the Higher Education Act of 1965.
       ``(f) Reimbursement Under Certain Circumstances.--
       ``(1) Reimbursement required.--A participant in the Program 
     who is paid a stipend or bonus under this section shall be 
     required to repay the stipend or bonus under the following 
     circumstances:
       ``(A) Failure to obtain qualifications or employment.--The 
     participant fails to obtain teacher certification or 
     licensing, to become a highly qualified teacher, or to obtain 
     employment as an elementary school teacher, secondary school 
     teacher, or vocational or technical teacher as required by 
     the participation agreement under subsection (a).
       ``(B) Termination of employment.--The participant 
     voluntarily leaves, or is terminated for cause from, 
     employment as an elementary school teacher, secondary school 
     teacher, or vocational or technical teacher during the 3 
     years of required service in violation of the participation 
     agreement.
       ``(C) Failure to complete service under reserve commitment 
     agreement.--The participant executed a written agreement with 
     the

[[Page 25685]]

     Secretary concerned under section 2303(e)(2) to serve as a 
     member of a reserve component of the Armed Forces for a 
     period of 3 years and fails to complete the required term of 
     service.
       ``(2) Amount of reimbursement.--A participant required to 
     reimburse the Secretary for a stipend or bonus paid to the 
     participant under this section shall pay an amount that bears 
     the same ratio to the amount of the stipend or bonus as the 
     unserved portion of required service bears to the 3 years of 
     required service. Any amount owed by the participant shall 
     bear interest at the rate equal to the highest rate being 
     paid by the United States on the day on which the 
     reimbursement is determined to be due for securities having 
     maturities of 90 days or less and shall accrue from the day 
     on which the participant is first notified of the amount due.
       ``(3) Treatment of obligation.--The obligation to reimburse 
     the Secretary under this subsection is, for all purposes, a 
     debt owing the United States. A discharge in bankruptcy under 
     title 11, United States Code, shall not release a participant 
     from the obligation to reimburse the Secretary under this 
     subsection.
       ``(4) Exceptions to reimbursement requirement.--A 
     participant shall be excused from reimbursement under this 
     subsection if the participant becomes permanently totally 
     disabled as established by sworn affidavit of a qualified 
     physician. The Secretary may also waive the reimbursement in 
     cases of extreme hardship to the participant, as determined 
     by the Secretary.
       ``(g) Relationship to Educational Assistance Under 
     Montgomery GI Bill.--The receipt by a participant in the 
     Program of a stipend or bonus under this section shall not 
     reduce or otherwise affect the entitlement of the participant 
     to any benefits under chapter 30 of title 38, United States 
     Code, or chapter 1606 of title 10, United States Code.

     ``SEC. 2305. PARTICIPATION BY STATES.

       ``(a) Discharge of State Activities Through Consortia of 
     States.--The Secretary may permit States participating in the 
     Program to carry out activities authorized for such States 
     under the Program through one or more consortia of such 
     States.
       ``(b) Assistance to States.--
       ``(1) Grants authorized.--Subject to paragraph (2), the 
     Secretary may make grants to States participating in the 
     Program, or to consortia of such States, in order to permit 
     such States or consortia of States to operate offices for 
     purposes of recruiting eligible members of the Armed Forces 
     for participation in the Program and facilitating the 
     employment of participants in the Program as elementary 
     school teachers, secondary school teachers, and vocational or 
     technical teachers.
       ``(2) Limitation.--The total amount of grants made under 
     paragraph (1) in any fiscal year may not exceed $5,000,000.

     ``SEC. 2306. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER 
                   CERTIFICATION PROGRAMS.

       ``(a) Purpose.--The purpose of this section is to provide 
     funding to develop, implement, and demonstrate teacher 
     certification programs.
       ``(b) Development, Implementation and Demonstration.--The 
     Secretary may enter into a memorandum of agreement with a 
     State educational agency, an institution of higher education, 
     or a consortia of State educational agencies or institutions 
     of higher education, to develop, implement, and demonstrate 
     teacher certification programs for members of the Armed 
     Forces described in section 2303(a)(1)(B) for the purpose of 
     assisting such members to consider and prepare for a career 
     as a highly qualified elementary school teacher, secondary 
     school teacher, or vocational or technical teacher upon 
     retirement from the Armed Forces.
       ``(c) Program Elements.--A teacher certification program 
     under subsection (b) shall--
       ``(1) provide recognition of military experience and 
     training as related to certification or licensing 
     requirements;
       ``(2) provide courses of instruction that may be conducted 
     on or near a military installation;
       ``(3) incorporate alternative approaches to achieve teacher 
     certification, such as innovative methods to gaining field-
     based teaching experiences, and assessment of background and 
     experience as related to skills, knowledge, and abilities 
     required of elementary school teachers, secondary school 
     teachers, or vocational or technical teachers;
       ``(4) provide for courses to be delivered via distance 
     education methods; and
       ``(5) address any additional requirements or specifications 
     established by the Secretary.
       ``(d) Application Procedures.--
       ``(1) In general.--A State educational agencies or 
     institution of higher education (or a consortium of State 
     educational agencies or institutions of higher education) 
     that desires to enter into a memorandum under subsection (b) 
     shall prepare and submit to the Secretary a proposal, at such 
     time, in such manner, and containing such information as the 
     Secretary may require, including an assurance that the State 
     educational agency, institution, or consortium is operating a 
     program leading to State approved teacher certification.
       ``(2) Preference.--The Secretary shall give preference to 
     State educational agencies, institutions, and consortia that 
     submit proposals that provide for cost sharing with respect 
     to the program involved.
       ``(e) Continuation of Programs.--Upon successful completion 
     of the demonstration phase of teacher certification programs 
     funded under this section, the continued operation of the 
     teacher certification programs shall not be the 
     responsibility of the Secretary. A State educational agency, 
     institution, or consortium that desires to continue a program 
     that is funded under this section after such funding is 
     terminated shall use amounts derived from tuition charges to 
     continue such program.
       ``(f) Funding Limitation.--The total amount obligated by 
     the Secretary under this section for any fiscal year may not 
     exceed $10,000,000.

     ``SEC. 2307. REPORTING REQUIREMENTS.

       ``(a) Report Required.--Not later than March 31, 2006, the 
     Secretary (in consultation with the Secretary of Defense and 
     the Secretary of Transportation) and the Comptroller General 
     of the United States shall submit to Congress a report on the 
     effectiveness of the Program in the recruitment and retention 
     of qualified personnel by local educational agencies and 
     public charter schools.
       ``(b) Elements of Report.--The report submitted under 
     subsection (a) shall include information on the following:
       ``(1) The number of participants in the Program.
       ``(2) The schools in which the participants are employed.
       ``(3) The grade levels at which the participants teach.
       ``(4) The academic subjects taught by the participants.
       ``(5) The rates of retention of the participants by the 
     local educational agencies and public charter schools 
     employing the participants.
       ``(6) Such other matters as the Secretary or the 
     Comptroller General of the United States, as the case may be, 
     considers to be appropriate.

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

     ``SEC. 2311. PURPOSES.

       ``The purposes of this chapter are--
       ``(1) to establish a program to recruit and retain highly 
     qualified mid-career professionals (including highly 
     qualified paraprofessionals), and recent graduates of an 
     institution of higher education, as teachers in high-need 
     schools, including recruiting teachers through alternative 
     routes to certification; and
       ``(2) to encourage the development and expansion of 
     alternative routes to certification under State-approved 
     programs that enable individuals to be eligible for teacher 
     certification within a reduced period of time, relying on the 
     experience, expertise, and academic qualifications of an 
     individual, or other factors in lieu of traditional course 
     work in the field of education.

     ``SEC. 2312. DEFINITIONS.

       ``In this chapter:
       ``(1) Eligible participant.--The term `eligible 
     participant' means--
       ``(A) an individual with substantial, demonstrable career 
     experience, including a highly qualified paraprofessional; or
       ``(B) an individual who is a graduate of an institution of 
     higher education who--
       ``(i) has graduated not more than 3 years before applying 
     to an eligible entity to teach under this chapter; and
       ``(ii) in the case of an individual wishing to teach in a 
     secondary school, has completed an academic major (or courses 
     totaling an equivalent number of credit hours) in the 
     academic subject that the individual will teach.
       ``(2) High-need local educational agency.--The term `high-
     need local educational agency' has the meaning given the term 
     in section 2102.
       ``(3) High-need school.--The term `high-need school' means 
     a school that--
       ``(A) is located in an area in which the percentage of 
     students from families with incomes below the poverty line is 
     30 percent or more; or
       ``(B)(i) is located in an area with a high percentage of 
     out-of-field teachers, as defined in section 2102;
       ``(ii) is within the top quartile of elementary schools and 
     secondary schools statewide, as ranked by the number of 
     unfilled, available teacher positions at the schools;
       ``(iii) is located in an area in which there is a high 
     teacher turnover rate; or
       ``(iv) is located in an area in which there is a high 
     percentage of teachers who are not certified or licensed.

     ``SEC. 2313. GRANT PROGRAM.

       ``(a) In General.--The Secretary may establish a program to 
     make grants on a competitive basis to eligible entities to 
     develop State and local teacher corps or other programs to 
     establish, expand, or enhance teacher recruitment and 
     retention efforts.
       ``(b) Eligible entity.--To be eligible to receive a grant 
     under this section, an entity shall be--
       ``(1) a State educational agency;
       ``(2) a high-need local educational agency;
       ``(3) a for-profit or nonprofit organization that has a 
     proven record of effectively recruiting and retaining highly 
     qualified teachers, in a partnership with a high-need local 
     educational agency or with a State educational agency;
       ``(4) an institution of higher education, in a partnership 
     with a high-need local educational agency or with a State 
     educational agency;
       ``(5) a regional consortium of State educational agencies; 
     or
       ``(6) a consortium of high-need local educational agencies.
       ``(c) Priority.--In making such a grant, the Secretary 
     shall give priority to a partnership or consortium that 
     includes a high-need State educational agency or local 
     educational agency.
       ``(d) Application.--
       ``(1) In general.--To be eligible to receive a grant under 
     this section, an entity described in subsection (b) shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require.

[[Page 25686]]

       ``(2) Contents.--The application shall describe--
       ``(A) one or more target recruitment groups on which the 
     applicant will focus its recruitment efforts;
       ``(B) the characteristics of each such target group that--
       ``(i) show the knowledge and experience of the group's 
     members; and
       ``(ii) demonstrate that the members are eligible to achieve 
     the objectives of this section;
       ``(C) describe how the applicant will use funds received 
     under this section to develop a teacher corps or other 
     program to recruit and retain highly qualified midcareer 
     professionals (which may include highly qualified 
     paraprofessionals), recent college graduates, and recent 
     graduate school graduates, as highly qualified teachers in 
     high-need schools operated by high-need local educational 
     agencies;
       ``(D) explain how the program carried out under the grant 
     will meet the relevant State laws (including regulations) 
     related to teacher certification or licensing and facilitate 
     the certification or licensing of such teachers;
       ``(E) describe how the grant will increase the number of 
     highly qualified teachers, in high-need schools operated by 
     high-need local educational agencies (in urban or rural 
     school districts), and in high-need academic subjects, in the 
     jurisdiction served by the applicant; and
       ``(F) describe how the applicant will collaborate, as 
     needed, with other institutions, agencies, or organizations 
     to recruit (particularly through activities that have proven 
     effective in retaining highly qualified teachers), train, 
     place, support, and provide teacher induction programs to 
     program participants under this chapter, including providing 
     evidence of the commitment of the institutions, agencies, or 
     organizations to the applicant's programs.
       ``(e) Duration of Grants.--The Secretary may make grants 
     under this section for periods of 5 years. At the end of the 
     5-year period for such a grant, the grant recipient may apply 
     for an additional grant under this section.
       ``(f) Equitable Distribution.--To the extent practicable, 
     the Secretary shall ensure an equitable geographic 
     distribution of grants under this section among the regions 
     of the United States.
       ``(g) Uses of Funds.--
       ``(1) In general.--An entity that receives a grant under 
     this section shall use the funds made available through the 
     grant to develop a teacher corps or other program in order to 
     establish, expand, or enhance a teacher recruitment and 
     retention program for highly qualified mid-career 
     professionals (including highly qualified paraprofessionals), 
     and recent graduates of an institution of higher education, 
     who are eligible participants, including activities that 
     provide alternative routes to teacher certification.
       ``(2) Authorized activities.--The entity shall use the 
     funds to carry out a program that includes two or more of the 
     following activities:
       ``(A) Providing scholarships, stipends, bonuses, and other 
     financial incentives, that are linked to participation in 
     activities that have proven effective in retaining teachers 
     in high-need schools operated by high-need local educational 
     agencies, to all eligible participants, in an amount not to 
     exceed $5,000 per participant.
       ``(B) Carrying out pre- and post-placement induction or 
     support activities that have proven effective in recruiting 
     and retaining teachers, such as--
       ``(i) teacher mentoring;
       ``(ii) providing internships;
       ``(iii) providing high-quality, preservice coursework; and
       ``(iv) providing high-quality, sustained inservice 
     professional development.
       ``(C) Carrying out placement and ongoing activities to 
     ensure that teachers are placed in fields in which the 
     teachers are highly qualified to teach and are placed in 
     high-need schools.
       ``(D) Making payments to pay for costs associated with 
     accepting teachers recruited under this section from among 
     eligible participants or provide financial incentives to 
     prospective teachers who are eligible participants.
       ``(E) Collaborating with institutions of higher education 
     in developing and implementing programs to facilitate teacher 
     recruitment (including teacher credentialing) and teacher 
     retention programs.
       ``(F) Carrying out other programs, projects, and activities 
     that are designed and have proven to be effective in 
     recruiting and retaining teachers, and that the Secretary 
     determines to be appropriate.
       ``(G) Developing long-term recruitment and retention 
     strategies including developing--
       ``(i) a statewide or regionwide clearinghouse for the 
     recruitment and placement of teachers;
       ``(ii) administrative structures to develop and implement 
     programs to provide alternative routes to certification;
       ``(iii) reciprocity agreements between or among States for 
     the certification or licensing of teachers; or
       ``(iv) other long-term teacher recruitment and retention 
     strategies.
       ``(3) Effective programs.--The entity shall use the funds 
     only for programs that have proven to be effective in both 
     recruiting and retaining teachers.
       ``(h) Requirements.--
       ``(1) Targeting.--An entity that receives a grant under 
     this section to carry out a program shall ensure that 
     participants in the program recruited with funds made 
     available under this section are placed in high-need schools 
     operated by high-need local educational agencies. In placing 
     the participants in the schools, the entity shall give 
     priority to the schools that are located in areas with the 
     highest percentages of students from families with incomes 
     below the poverty line.
       ``(2) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     State and local public funds expended for teacher recruitment 
     and retention programs, including programs to recruit the 
     teachers through alternative routes to certification.
       ``(3) Partnerships and consortia of local educational 
     agencies.--In the case of a partnership established by a 
     local educational agency to carry out a program under this 
     chapter, or a consortium of such agencies established to 
     carry out a program under this chapter, the local educational 
     agency or consortium shall not be eligible to receive funds 
     through a State program under this chapter.
       ``(i) Period of Service.--A program participant in a 
     program under this chapter who receives training through the 
     program shall serve a high-need school operated by a high-
     need local educational agency for at least 3 years.
       ``(j) Repayment.--The Secretary shall establish such 
     requirements as the Secretary determines to be appropriate to 
     ensure that program participants who receive a stipend or 
     other financial incentive under subsection (g)(2)(A), but 
     fail to complete their service obligation under subsection 
     (i), repay all or a portion of such stipend or other 
     incentive.
       ``(k) Administrative Funds.--No entity that receives a 
     grant under this section shall use more than 5 percent of the 
     funds made available through the grant for the administration 
     of a program under this chapter carried out under the grant.


       ``(7) a description of how the State will encourage 
     programs and projects assisted under this part to offer 
     family literacy services if the program or project serves a 
     substantial number of migratory children who

[[Page 25664]]

     have parents who do not have a high school diploma or its 
     recognized equivalent or who have low levels of literacy.
       ``(c) Assurances.--Each such application shall also include 
     assurances, satisfactory to the Secretary, that--
       ``(1) funds received under this part will be used only--
       ``(A) for programs and projects, including the acquisition 
     of equipment, in accordance with section 1306; and
       ``(B) to coordinate such programs and projects with similar 
     programs and projects within the State and in other States, 
     as well as with other Federal programs that can benefit 
     migratory children and their families;
       ``(2) such programs and projects will be carried out in a 
     manner consistent with the objectives of section 1114, 
     subsections (b) and (d) of section 1115, subsections (b) and 
     (c) of section 1120A, and part I;
       ``(3) in the planning and operation of programs and 
     projects at both the State and local agency operating level, 
     there is consultation with parent advisory councils for 
     programs of 1 school year in duration, and that all such 
     programs and projects are carried out--
       ``(A) in a manner that provides for the same parental 
     involvement as is required for programs and projects under 
     section 1118, unless extraordinary circumstances make such 
     provision impractical; and
       ``(B) in a format and language understandable to the 
     parents;
       ``(4) in planning and carrying out such programs and 
     projects, there has been, and will be, adequate provision for 
     addressing the unmet education needs of preschool migratory 
     children;
       ``(5) the effectiveness of such programs and projects will 
     be determined, where feasible, using the same approaches and 
     standards that will be used to assess the performance of 
     students, schools, and local educational agencies under part 
     A;
       ``(6) to the extent feasible, such programs and projects 
     will provide for--
       ``(A) advocacy and outreach activities for migratory 
     children and their families, including informing such 
     children and families of, or helping such children and 
     families gain access to, other education, health, nutrition, 
     and social services;
       ``(B) professional development programs, including 
     mentoring, for teachers and other program personnel;
       ``(C) family literacy programs, including such programs 
     that use models developed under Even Start;
       ``(D) the integration of information technology into 
     educational and related programs; and
       ``(E) programs to facilitate the transition of secondary 
     school students to postsecondary education or employment; and
       ``(7) the State will assist the Secretary in determining 
     the number of migratory children under paragraphs (1)(A) and 
     (2)(B)(i) of section 1303(a), through such procedures as the 
     Secretary may require.
       ``(d) Priority for Services.--In providing services with 
     funds received under this part, each recipient of such funds 
     shall give priority to migratory children who are failing, or 
     most at risk of failing, to meet the State's challenging 
     State academic content standards and challenging State 
     student academic achievement standards, and whose education 
     has been interrupted during the regular school year.
       ``(e) Continuation of Services.--Notwithstanding any other 
     provision of this part--
       ``(1) a child who ceases to be a migratory child during a 
     school term shall be eligible for services until the end of 
     such term;
       ``(2) a child who is no longer a migratory child may 
     continue to receive services for 1 additional school year, 
     but only if comparable services are not available through 
     other programs; and
       ``(3) secondary school students who were eligible for 
     services in secondary school may continue to be served 
     through credit accrual programs until graduation.

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

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

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

       ``(a) Comprehensive Plan.--
       ``(1) In general.--Each State that receives assistance 
     under this part shall ensure that the State and its local 
     operating agencies identify and address the special 
     educational needs of migratory children in accordance with a 
     comprehensive State plan that--
       ``(A) is integrated with other programs under this Act or 
     other Acts, as appropriate;
       ``(B) may be submitted as a part of consolidated 
     application under section 9302, if--
       ``(i) the special needs of migratory children are 
     specifically addressed in the comprehensive State plan;
       ``(ii) the comprehensive State plan is developed in 
     collaboration with parents of migratory children; and
       ``(iii) the comprehensive State planning is not used to 
     supplant State efforts regarding, or administrative funding 
     for, this part;
       ``(C) provides that migratory children will have an 
     opportunity to meet the same challenging State academic 
     content standards and challenging State student academic 
     achievement standards that all children are expected to meet;
       ``(D) specifies measurable program goals and outcomes;
       ``(E) encompasses the full range of services that are 
     available for migratory children from appropriate local, 
     State, and Federal educational programs;
       ``(F) is the product of joint planning among such local, 
     State, and Federal programs, including programs under part A, 
     early childhood programs, and language instruction 
     educational programs under part A or B of title III; and
       ``(G) provides for the integration of services available 
     under this part with services provided by such other 
     programs.
       ``(2) Duration of the plan.--Each such comprehensive 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.
       ``(b) Authorized Activities.--
       ``(1) Flexibility.--In implementing the comprehensive plan 
     described in subsection (a), each State educational agency, 
     where applicable through its local educational agencies, 
     shall have the flexibility to determine the activities to be 
     provided with funds made available under this part, except 
     that such funds first shall be used to meet the identified 
     needs of migratory children that result from their migratory 
     lifestyle, and to permit these children to participate 
     effectively in school.
       ``(2) Unaddressed needs.--Funds provided under this part 
     shall be used to address the needs of migratory children that 
     are not addressed by services available from other Federal or 
     non-Federal programs, except that migratory children who are 
     eligible to receive services under part A may receive those 
     services through funds provided under that part, or through 
     funds under this part that remain after the agency addresses 
     the needs described in paragraph (1).
       ``(3) Construction.--Nothing in this part shall be 
     construed to prohibit a local educational agency from serving 
     migratory children simultaneously with students with similar 
     educational needs in the same educational settings, where 
     appropriate.
       ``(4) Special rule.--Notwithstanding section 1114, a school 
     that receives funds under this part shall continue to address 
     the identified needs described in paragraph (1), and shall 
     meet the special educational needs of migratory children 
     before using funds under this part for schoolwide programs 
     under section 1114.

     ``SEC. 1307. BYPASS.

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

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

       ``(a) Improvement of Coordination.--
       ``(1) In general.--The Secretary, in consultation with the 
     States, may make grants to, or enter into contracts with, 
     State educational agencies, local educational agencies, 
     institutions of higher education, and other public and 
     private nonprofit entities to improve the interstate and 
     intrastate coordination among such agencies' educational 
     programs, including the establishment or improvement of 
     programs for credit accrual and exchange, available to 
     migratory students.
       ``(2) Duration.--Grants under this subsection may be 
     awarded for not more than 5 years.
       ``(b) Student Records.--
       ``(1) Assistance.--The Secretary shall assist States in 
     developing effective methods for the electronic transfer of 
     student records and in determining the number of migratory 
     children in each State.
       ``(2) Information system.--
       ``(A) In general.--The Secretary, in consultation with the 
     States, shall ensure the linkage of migrant student record 
     systems for the purpose of electronically exchanging, among 
     the States, health and educational information regarding all 
     migratory students. The Secretary shall ensure such linkage 
     occurs in a cost-effective manner, utilizing systems used by 
     the States prior to, or developed after, the date of 
     enactment of the No Child Left Behind Act of 2001, and shall 
     determine the minimum data elements that each State receiving 
     funds under this part shall collect and maintain. Such 
     elements may include--
       ``(i) immunization records and other health information;

[[Page 25665]]

       ``(ii) elementary and secondary academic history (including 
     partial credit), credit accrual, and results from State 
     assessments required under section 1111(b);
       ``(iii) other academic information essential to ensuring 
     that migratory children achieve to high standards; and
       ``(iv) eligibility for services under the Individuals with 
     Disabilities Education Act.
       ``(B) Notice and comment.--After consulting with the States 
     under subparagraph (A), the Secretary shall publish a notice 
     in the Federal Register seeking public comment on the 
     proposed data elements that each State receiving funds under 
     this part shall be required to collect for purposes of 
     electronic transfer of migratory student information and the 
     requirements that States shall meet for immediate electronic 
     access to such information. Such publication shall occur not 
     later than 120 days after the date of enactment of the No 
     Child Left Behind Act of 2001.
       ``(3) No cost for certain transfers.--A State educational 
     agency or local educational agency receiving assistance under 
     this part shall make student records available to another 
     State educational agency or local educational agency that 
     requests the records at no cost to the requesting agency, if 
     the request is made in order to meet the needs of a migratory 
     child.
       ``(4) Report to congress.--
       ``(A) In general.--Not later than April 30, 2003, the 
     Secretary shall report to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on 
     Education and the Workforce of the House of Representatives 
     the Secretary's findings and recommendations regarding the 
     maintenance and transfer of health and educational 
     information for migratory students by the States.
       ``(B) Required contents.--The Secretary shall include in 
     such report--
       ``(i) a review of the progress of States in developing and 
     linking electronic records transfer systems;
       ``(ii) recommendations for the development and linkage of 
     such systems; and
       ``(iii) recommendations for measures that may be taken to 
     ensure the continuity of services provided for migratory 
     students.
       ``(c) Availability of Funds.--For the purpose of carrying 
     out this section in any fiscal year, the Secretary shall 
     reserve not more than $10,000,000 of the amount appropriated 
     to carry out this part for such year.
       ``(d) Incentive Grants.--From the amounts made available to 
     carry out this section for any fiscal year, the Secretary may 
     reserve not more than $3,000,000 to award grants of not more 
     than $250,000 on a competitive basis to State educational 
     agencies that propose a consortium arrangement with another 
     State or other appropriate entity that the Secretary 
     determines, pursuant to criteria that the Secretary shall 
     establish, will improve the delivery of services to migratory 
     children whose education is interrupted.
       ``(e) Data Collection.--The Secretary shall direct the 
     National Center for Education Statistics to collect data on 
     migratory children.

     ``SEC. 1309. DEFINITIONS.

       ``As used in this part:
       ``(1) Local operating agency.--The term `local operating 
     agency' means--
       ``(A) a local educational agency to which a State 
     educational agency makes a subgrant under this part;
       ``(B) a public or nonprofit private agency with which a 
     State educational agency or the Secretary makes an 
     arrangement to carry out a project under this part; or
       ``(C) a State educational agency, if the State educational 
     agency operates the State's migrant education program or 
     projects directly.
       ``(2) Migratory child.--The term `migratory child' means a 
     child who is, or whose parent or spouse is, a migratory 
     agricultural worker, including a migratory dairy worker, or a 
     migratory fisher, and who, in the preceding 36 months, in 
     order to obtain, or accompany such parent or spouse, in order 
     to obtain, temporary or seasonal employment in agricultural 
     or fishing work--
       ``(A) has moved from one school district to another;
       ``(B) in a State that is comprised of a single school 
     district, has moved from one administrative area to another 
     within such district; or
       ``(C) resides in a school district of more than 15,000 
     square miles, and migrates a distance of 20 miles or more to 
     a temporary residence to engage in a fishing activity.

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

     ``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

       ``(a) Purpose.--It is the purpose of this part--
       ``(1) to improve educational services for children and 
     youth in local and State institutions for neglected or 
     delinquent children and youth so that such children and youth 
     have the opportunity to meet the same challenging State 
     academic content standards and challenging State student 
     academic achievement standards that all children in the State 
     are expected to meet;
       ``(2) to provide such children and youth with the services 
     needed to make a successful transition from 
     institutionalization to further schooling or employment; and
       ``(3) to prevent at-risk youth from dropping out of school, 
     and to provide dropouts, and children and youth returning 
     from correctional facilities or institutions for neglected or 
     delinquent children and youth, with a support system to 
     ensure their continued education.
       ``(b) Program Authorized.--In order to carry out the 
     purpose of this part and from amounts appropriated under 
     section 1002(d), the Secretary shall make grants to State 
     educational agencies to enable such agencies to award 
     subgrants to State agencies and local educational agencies to 
     establish or improve programs of education for neglected, 
     delinquent, or at-risk children and youth.

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

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

                   ``Subpart 1--State Agency Programs

     ``SEC. 1411. ELIGIBILITY.

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

     ``SEC. 1412. ALLOCATION OF FUNDS.

       ``(a) Subgrants to State Agencies.--
       ``(1) In general.--Each State agency described in section 
     1411 (other than an agency in the Commonwealth of Puerto 
     Rico) is eligible to receive a subgrant under this subpart, 
     for each fiscal year, in an amount equal to the product of--
       ``(A) the number of neglected or delinquent children and 
     youth described in section 1411 who--
       ``(i) are enrolled for at least 15 hours per week in 
     education programs in adult correctional institutions; and
       ``(ii) are enrolled for at least 20 hours per week--

       ``(I) in education programs in institutions for neglected 
     or delinquent children and youth; or
       ``(II) in community day programs for neglected or 
     delinquent children and youth; and

       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     subparagraph shall not be less than 32 percent, nor more than 
     48 percent, of the average per-pupil expenditure in the 
     United States.
       ``(2) Special rule.--The number of neglected or delinquent 
     children and youth determined under paragraph (1) shall--
       ``(A) be determined by the State agency by a deadline set 
     by the Secretary, except that no State agency shall be 
     required to determine the number of such children and youth 
     on a specific date set by the Secretary; and
       ``(B) be adjusted, as the Secretary determines is 
     appropriate, to reflect the relative length of such agency's 
     annual programs.
       ``(b) Subgrants to State Agencies in Puerto Rico.--
       ``(1) In general.--For each fiscal year, the amount of the 
     subgrant which a State agency in the Commonwealth of Puerto 
     Rico shall be eligible to receive under this subpart shall be 
     the amount determined by multiplying the number of children 
     counted under subsection (a)(1)(A) for the Commonwealth of 
     Puerto Rico by the product of--
       ``(A) 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
       ``(B) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(2) Minimum percentage.--The percentage in paragraph 
     (1)(A) shall not be less than--
       ``(A) for fiscal year 2002, 77.5 percent;
       ``(B) for fiscal year 2003, 80.0 percent;
       ``(C) for fiscal year 2004, 82.5 percent; and
       ``(D) for fiscal year 2005 and succeeding fiscal years, 
     85.0 percent.
       ``(3) Limitation.--If the application of paragraph (2) 
     would result in any of the 50 States or the District of 
     Columbia receiving less under this subpart than it received 
     under this subpart for the preceding fiscal year, then the 
     percentage described in paragraph (1)(A) that is used for the 
     Commonwealth of Puerto Rico for the fiscal year for which the 
     determination is made shall be the greater of--
       ``(A) the percentage in paragraph (1)(A) for such fiscal 
     year; or
       ``(B) the percentage used for the preceding fiscal year.
       ``(c) Ratable Reductions in Case of Insufficient 
     Appropriations.--If the amount appropriated for any fiscal 
     year for subgrants under subsections (a) and (b) is 
     insufficient to pay the full amount for which all State 
     agencies are eligible under such subsections, the Secretary 
     shall ratably reduce each such amount.

     ``SEC. 1413. STATE REALLOCATION OF FUNDS.

       ``If a State educational agency determines that a State 
     agency does not need the full amount of the subgrant for 
     which such State agency is eligible under this subpart for 
     any fiscal year, the State educational agency may reallocate 
     the amount that will not be needed to

[[Page 25666]]

     other eligible State agencies that need additional funds to 
     carry out the purpose of this part, in such amounts as the 
     State educational agency shall determine.

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

       ``(a) State Plan.--
       ``(1) In general.--Each State educational agency that 
     desires to receive a grant under this subpart shall submit, 
     for approval by the Secretary, a plan--
       ``(A) for meeting the educational needs of neglected, 
     delinquent, and at-risk children and youth;
       ``(B) for assisting in the transition of children and youth 
     from correctional facilities to locally operated programs; 
     and
       ``(C) that is integrated with other programs under this Act 
     or other Acts, as appropriate.
       ``(2) Contents.--Each such State plan shall--
       ``(A) describe the program goals, objectives, and 
     performance measures established by the State that will be 
     used to assess the effectiveness of the program in improving 
     the academic, vocational, and technical skills of children in 
     the program;
       ``(B) provide that, to the extent feasible, such children 
     will have the same opportunities to achieve as such children 
     would have if such children were in the schools of local 
     educational agencies in the State; and
       ``(C) contain an assurance that the State educational 
     agency will--
       ``(i) ensure that programs assisted under this subpart will 
     be carried out in accordance with the State plan described in 
     this subsection;
       ``(ii) carry out the evaluation requirements of section 
     1431;
       ``(iii) ensure that the State agencies receiving subgrants 
     under this subpart comply with all applicable statutory and 
     regulatory requirements; and
       ``(iv) provide such other information as the Secretary may 
     reasonably require.
       ``(3) Duration of the plan.--Each such 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.
       ``(b) Secretarial Approval and Peer Review.--
       ``(1) Secretarial approval.--The Secretary shall approve 
     each State plan that meets the requirements of this subpart.
       ``(2) Peer review.--The Secretary may review any State plan 
     with the assistance and advice of individuals with relevant 
     expertise.
       ``(c) State Agency Applications.--Any State agency that 
     desires to receive funds to carry out a program under this 
     subpart shall submit an application to the State educational 
     agency that--
       ``(1) describes the procedures to be used, consistent with 
     the State plan under section 1111, to assess the educational 
     needs of the children to be served under this subpart;
       ``(2) provide an assurance that in making services 
     available to children and youth in adult correctional 
     institutions, priority will be given to such children and 
     youth who are likely to complete incarceration within a 2-
     year period;
       ``(3) describes the program, including a budget for the 
     first year of the program, with annual updates to be provided 
     to the State educational agency;
       ``(4) describes how the program will meet the goals and 
     objectives of the State plan;
       ``(5) describes how the State agency will consult with 
     experts and provide the necessary training for appropriate 
     staff, to ensure that the planning and operation of 
     institution-wide projects under section 1416 are of high 
     quality;
       ``(6) describes how the State agency will carry out the 
     evaluation requirements of section 9601 and how the results 
     of the most recent evaluation will be used to plan and 
     improve the program;
       ``(7) includes data showing that the State agency has 
     maintained the fiscal effort required of a local educational 
     agency, in accordance with section 9521;
       ``(8) describes how the programs will be coordinated with 
     other appropriate State and Federal programs, such as 
     programs under title I of Public Law 105-220, vocational and 
     technical education programs, State and local dropout 
     prevention programs, and special education programs;
       ``(9) describes how the State agency will encourage 
     correctional facilities receiving funds under this subpart to 
     coordinate with local educational agencies or alternative 
     education programs attended by incarcerated children and 
     youth prior to their incarceration to ensure that student 
     assessments and appropriate academic records are shared 
     jointly between the correctional facility and the local 
     educational agency or alternative education program;
       ``(10) describes how appropriate professional development 
     will be provided to teachers and other staff;
       ``(11) designates an individual in each affected 
     correctional facility or institution for neglected or 
     delinquent children and youth to be responsible for issues 
     relating to the transition of children and youth from such 
     facility or institution to locally operated programs;
       ``(12) describes how the State agency will endeavor to 
     coordinate with businesses for training and mentoring for 
     participating children and youth;
       ``(13) provides an assurance that the State agency will 
     assist in locating alternative programs through which 
     students can continue their education if the students are not 
     returning to school after leaving the correctional facility 
     or institution for neglected or delinquent children and 
     youth;
       ``(14) provides assurances that the State agency will work 
     with parents to secure parents' assistance in improving the 
     educational achievement of their children and youth, and 
     preventing their children's and youth's further involvement 
     in delinquent activities;
       ``(15) provides an assurance that the State agency will 
     work with children and youth with disabilities in order to 
     meet an existing individualized education program and an 
     assurance that the agency will notify the child's or youth's 
     local school if the child or youth--
       ``(A) is identified as in need of special education 
     services while the child or youth is in the correctional 
     facility or institution for neglected or delinquent children 
     and youth; and
       ``(B) intends to return to the local school;
       ``(16) provides an assurance that the State agency will 
     work with children and youth who dropped out of school before 
     entering the correctional facility or institution for 
     neglected or delinquent children and youth to encourage the 
     children and youth to reenter school once the term of the 
     incarceration is completed or provide the child or youth with 
     the skills necessary to gain employment, continue the 
     education of the child or youth, or achieve a secondary 
     school diploma or its recognized equivalent if the child or 
     youth does not intend to return to school;
       ``(17) provides an assurance that teachers and other 
     qualified staff are trained to work with children and youth 
     with disabilities and other students with special needs 
     taking into consideration the unique needs of such students;
       ``(18) describes any additional services to be provided to 
     children and youth, such as career counseling, distance 
     learning, and assistance in securing student loans and 
     grants; and
       ``(19) provides an assurance that the program under this 
     subpart will be coordinated with any programs operated under 
     the Juvenile Justice and Delinquency Prevention Act of 1974 
     (42 U.S.C. 5601 et seq.) or other comparable programs, if 
     applicable.

     ``SEC. 1415. USE OF FUNDS.

       ``(a) Uses.--
       ``(1) In general.--A State agency shall use funds received 
     under this subpart only for programs and projects that--
       ``(A) are consistent with the State plan under section 
     1414(a); and
       ``(B) concentrate on providing participants with the 
     knowledge and skills needed to make a successful transition 
     to secondary school completion, vocational or technical 
     training, further education, or employment.
       ``(2) Programs and projects.--Such programs and projects--
       ``(A) may include the acquisition of equipment;
       ``(B) shall be designed to support educational services 
     that--
       ``(i) except for institution-wide projects under section 
     1416, are provided to children and youth identified by the 
     State agency as failing, or most at-risk of failing, to meet 
     the State's challenging academic content standards and 
     student academic achievement standards;
       ``(ii) supplement and improve the quality of the 
     educational services provided to such children and youth by 
     the State agency; and
       ``(iii) afford such children and youth an opportunity to 
     meet challenging State academic achievement standards;
       ``(C) shall be carried out in a manner consistent with 
     section 1120A and part I (as applied to programs and projects 
     under this part); and
       ``(D) may include the costs of meeting the evaluation 
     requirements of section 9601.
       ``(b) Supplement, Not Supplant.--A program under this 
     subpart that supplements the number of hours of instruction 
     students receive from State and local sources shall be 
     considered to comply with the supplement, not supplant 
     requirement of section 1120A (as applied to this part) 
     without regard to the subject areas in which instruction is 
     given during those hours.

     ``SEC. 1416. INSTITUTION-WIDE PROJECTS.

       ``A State agency that provides free public education for 
     children and youth in an institution for neglected or 
     delinquent children and youth (other than an adult 
     correctional institution) or attending a community-day 
     program for such children and youth may use funds received 
     under this subpart to serve all children in, and upgrade the 
     entire educational effort of, that institution or program if 
     the State agency has developed, and the State educational 
     agency has approved, a comprehensive plan for that 
     institution or program that--
       ``(1) provides for a comprehensive assessment of the 
     educational needs of all children and youth in the 
     institution or program serving juveniles;
       ``(2) provides for a comprehensive assessment of the 
     educational needs of youth aged 20 and younger in adult 
     facilities who are expected to complete incarceration within 
     a 2-year period;
       ``(3) describes the steps the State agency has taken, or 
     will take, to provide all children and youth under age 21 
     with the opportunity to meet challenging State academic 
     content standards and student academic achievement standards 
     in order to improve the likelihood that the children and 
     youth will complete secondary school, attain a secondary 
     diploma or its recognized equivalent, or find employment 
     after leaving the institution;
       ``(4) describes the instructional program, pupil services, 
     and procedures that will be used to meet the needs described 
     in paragraph (1), including, to the extent feasible, the 
     provision of

[[Page 25667]]

     mentors for the children and youth described in paragraph 
     (1);
       ``(5) specifically describes how such funds will be used;
       ``(6) describes the measures and procedures that will be 
     used to assess student progress;
       ``(7) describes how the agency has planned, and will 
     implement and evaluate, the institution-wide or program-wide 
     project in consultation with personnel providing direct 
     instructional services and support services in institutions 
     or community-day programs for neglected or delinquent 
     children and youth, and with personnel from the State 
     educational agency; and
       ``(8) includes an assurance that the State agency has 
     provided for appropriate training for teachers and other 
     instructional and administrative personnel to enable such 
     teachers and personnel to carry out the project effectively.

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

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

     ``SEC. 1418. TRANSITION SERVICES.

       ``(a) Transition Services.--Each State agency shall reserve 
     not less than 15 percent and not more than 30 percent of the 
     amount such agency receives under this subpart for any fiscal 
     year to support--
       ``(1) projects that facilitate the transition of children 
     and youth from State-operated institutions to schools served 
     by local educational agencies; or
       ``(2) the successful reentry of youth offenders, who are 
     age 20 or younger and have received a secondary school 
     diploma or its recognized equivalent, into postsecondary 
     education, or vocational and technical training programs, 
     through strategies designed to expose the youth to, and 
     prepare the youth for, postsecondary education, or vocational 
     and technical training programs, such as--
       ``(A) preplacement programs that allow adjudicated or 
     incarcerated youth to audit or attend courses on college, 
     university, or community college campuses, or through 
     programs provided in institutional settings;
       ``(B) worksite schools, in which institutions of higher 
     education and private or public employers partner to create 
     programs to help students make a successful transition to 
     postsecondary education and employment; and
       ``(C) essential support services to ensure the success of 
     the youth, such as--
       ``(i) personal, vocational and technical, and academic, 
     counseling;
       ``(ii) placement services designed to place the youth in a 
     university, college, or junior college program;
       ``(iii) information concerning, and assistance in 
     obtaining, available student financial aid;
       ``(iv) counseling services; and
       ``(v) job placement services.
       ``(b) Conduct of Projects.--A project supported under this 
     section may be conducted directly by the State agency, or 
     through a contract or other arrangement with one or more 
     local educational agencies, other public agencies, or private 
     nonprofit organizations.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit a school that receives funds under 
     subsection (a) from serving neglected and delinquent children 
     and youth simultaneously with students with similar 
     educational needs, in the same educational settings where 
     appropriate.

     ``SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL MODEL 
                   PROGRAM.

       ``The Secretary may reserve not more than 2.5 percent of 
     the amount made available to carry out this subpart for a 
     fiscal year--
       ``(1) to develop a uniform model to evaluate the 
     effectiveness of programs assisted under this subpart; and
       ``(2) to provide technical assistance to and support the 
     capacity building of State agency programs assisted under 
     this subpart.

                   ``Subpart 2--Local Agency Programs

     ``SEC. 1421. PURPOSE.

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

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

       ``(a) Local Subgrants.--With funds made available under 
     section 1402(b), the State educational agency shall award 
     subgrants to local educational agencies with high numbers or 
     percentages of children and youth residing in locally 
     operated (including county operated) correctional facilities 
     for children and youth (including facilities involved in 
     community day programs).
       ``(b) Special Rule.--A local educational agency that serves 
     a school operated by a correctional facility is not required 
     to operate a program of support for children and youth 
     returning from such school to a school that is not operated 
     by a correctional agency but served by such local educational 
     agency, if more than 30 percent of the children and youth 
     attending the school operated by the correctional facility 
     will reside outside the boundaries served by the local 
     educational agency after leaving such facility.
       ``(c) Notification.--A State educational agency shall 
     notify local educational agencies within the State of the 
     eligibility of such agencies to receive a subgrant under this 
     subpart.
       ``(d) Transitional and Academic Services.--Transitional and 
     supportive programs operated in local educational agencies 
     under this subpart shall be designed primarily to meet the 
     transitional and academic needs of students returning to 
     local educational agencies or alternative education programs 
     from correctional facilities. Services to students at-risk of 
     dropping out of school shall not have a negative impact on 
     meeting the transitional and academic needs of the students 
     returning from correctional facilities.

     ``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

       ``Each local educational agency desiring assistance under 
     this subpart shall submit an application to the State 
     educational agency that contains such information as the 
     State educational agency may require. Each such application 
     shall include--
       ``(1) a description of the program to be assisted;
       ``(2) a description of formal agreements, regarding the 
     program to be assisted, between--
       ``(A) the local educational agency; and
       ``(B) correctional facilities and alternative school 
     programs serving children and youth involved with the 
     juvenile justice system;
       ``(3) as appropriate, a description of how participating 
     schools will coordinate with facilities working with 
     delinquent children and youth to ensure that such children 
     and youth are participating in an education program 
     comparable to one operating in the local school such youth 
     would attend;
       ``(4) a description of the program operated by 
     participating schools for children and youth returning from 
     correctional facilities and, as appropriate, the types of 
     services that such schools will provide such children and 
     youth and other at-risk children and youth;
       ``(5) a description of the characteristics (including 
     learning difficulties, substance abuse problems, and other 
     special needs) of the children and youth who will be 
     returning from correctional facilities and, as appropriate, 
     other at-risk children and youth expected to be served by the 
     program, and a description of how the school will coordinate 
     existing educational programs to meet the unique educational 
     needs of such children and youth;
       ``(6) as appropriate, a description of how schools will 
     coordinate with existing social, health, and other services 
     to meet the needs of students returning from correctional 
     facilities, at-risk children or youth, and other 
     participating children or youth, including prenatal health 
     care and nutrition services related to the health of the 
     parent and the child or youth, parenting and child 
     development classes, child care, targeted reentry and 
     outreach programs, referrals to community resources, and 
     scheduling flexibility;
       ``(7) as appropriate, a description of any partnerships 
     with local businesses to develop training, curriculum-based 
     youth entrepreneurship education, and mentoring services for 
     participating students;
       ``(8) as appropriate, a description of how the program will 
     involve parents in efforts to improve the educational 
     achievement of their children, assist in dropout prevention 
     activities, and prevent the involvement of their children in 
     delinquent activities;
       ``(9) a description of how the program under this subpart 
     will be coordinated with other Federal, State, and local 
     programs, such as programs under title I of Public Law 105-
     220 and vocational and technical education programs serving 
     at-risk children and youth;
       ``(10) a description of how the program will be coordinated 
     with programs operated under the Juvenile Justice and 
     Delinquency Prevention Act of 1974 and other comparable 
     programs, if applicable;
       ``(11) as appropriate, a description of how schools will 
     work with probation officers to assist in meeting the needs 
     of children and youth returning from correctional facilities;
       ``(12) a description of the efforts participating schools 
     will make to ensure correctional facilities working with 
     children and youth are aware of a child's or youth's existing 
     individualized education program; and
       ``(13) as appropriate, a description of the steps 
     participating schools will take to find alternative 
     placements for children and youth interested in continuing 
     their education but unable to participate in a regular public 
     school program.

     ``SEC. 1424. USES OF FUNDS.

       ``Funds provided to local educational agencies under this 
     subpart may be used, as appropriate, for--
       ``(1) programs that serve children and youth returning to 
     local schools from correctional facilities, to assist in the 
     transition of such children and youth to the school 
     environment and help them remain in school in order to 
     complete their education;
       ``(2) dropout prevention programs which serve at-risk 
     children and youth, including pregnant and parenting teens, 
     children and youth who have come in contact with the juvenile 
     justice system, children and youth at least 1 year behind 
     their expected grade level, migrant youth, immigrant youth, 
     students with limited English proficiency, and gang members;

[[Page 25668]]

       ``(3) the coordination of health and social services for 
     such individuals if there is a likelihood that the provision 
     of such services, including day care, drug and alcohol 
     counseling, and mental health services, will improve the 
     likelihood such individuals will complete their education;
       ``(4) special programs to meet the unique academic needs of 
     participating children and youth, including vocational and 
     technical education, special education, career counseling, 
     curriculum-based youth entrepreneurship education, and 
     assistance in securing student loans or grants for 
     postsecondary education; and
       ``(5) programs providing mentoring and peer mediation.

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

       ``Each correctional facility entering into an agreement 
     with a local educational agency under section 1423(2) to 
     provide services to children and youth under this subpart 
     shall--
       ``(1) where feasible, ensure that educational programs in 
     the correctional facility are coordinated with the student's 
     home school, particularly with respect to a student with an 
     individualized education program under part B of the 
     Individuals with Disabilities Education Act;
       ``(2) if the child or youth is identified as in need of 
     special education services while in the correctional 
     facility, notify the local school of the child or youth of 
     such need;
       ``(3) where feasible, provide transition assistance to help 
     the child or youth stay in school, including coordination of 
     services for the family, counseling, assistance in accessing 
     drug and alcohol abuse prevention programs, tutoring, and 
     family counseling;
       ``(4) provide support programs that encourage children and 
     youth who have dropped out of school to reenter school once 
     their term at the correctional facility has been completed, 
     or provide such children and youth with the skills necessary 
     to gain employment or seek a secondary school diploma or its 
     recognized equivalent;
       ``(5) work to ensure that the correctional facility is 
     staffed with teachers and other qualified staff who are 
     trained to work with children and youth with disabilities 
     taking into consideration the unique needs of such children 
     and youth;
       ``(6) ensure that educational programs in the correctional 
     facility are related to assisting students to meet high 
     academic achievement standards;
       ``(7) to the extent possible, use technology to assist in 
     coordinating educational programs between the correctional 
     facility and the community school;
       ``(8) where feasible, involve parents in efforts to improve 
     the educational achievement of their children and prevent the 
     further involvement of such children in delinquent 
     activities;
       ``(9) coordinate funds received under this subpart with 
     other local, State, and Federal funds available to provide 
     services to participating children and youth, such as funds 
     made available under title I of Public Law 105-220, and 
     vocational and technical education funds;
       ``(10) coordinate programs operated under this subpart with 
     activities funded under the Juvenile Justice and Delinquency 
     Prevention Act of 1974 and other comparable programs, if 
     applicable; and
       ``(11) if appropriate, work with local businesses to 
     develop training, curriculum-based youth entrepreneurship 
     education, and mentoring programs for children and youth.

     ``SEC. 1426. ACCOUNTABILITY.

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

                    ``Subpart 3--General Provisions

     ``SEC. 1431. PROGRAM EVALUATIONS.

       ``(a) Scope of Evaluation.--Each State agency or local 
     educational agency that conducts a program under subpart 1 or 
     2 shall evaluate the program, disaggregating data on 
     participation by gender, race, ethnicity, and age, not less 
     than once every 3 years, to determine the program's impact on 
     the ability of participants--
       ``(1) to maintain and improve educational achievement;
       ``(2) to accrue school credits that meet State requirements 
     for grade promotion and secondary school graduation;
       ``(3) to make the transition to a regular program or other 
     education program operated by a local educational agency;
       ``(4) to complete secondary school (or secondary school 
     equivalency requirements) and obtain employment after leaving 
     the correctional facility or institution for neglected or 
     delinquent children and youth; and
       ``(5) as appropriate, to participate in postsecondary 
     education and job training programs.
       ``(b) Exception.--The disaggregation required under 
     subsection (a) 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 personally identifiable information about an 
     individual student.
       ``(c) Evaluation Measures.--In conducting each evaluation 
     under subsection (a), a State agency or local educational 
     agency shall use multiple and appropriate measures of student 
     progress.
       ``(d) Evaluation Results.--Each State agency and local 
     educational agency shall--
       ``(1) submit evaluation results to the State educational 
     agency and the Secretary; and
       ``(2) use the results of evaluations under this section to 
     plan and improve subsequent programs for participating 
     children and youth.

     ``SEC. 1432. DEFINITIONS.

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

                ``PART E--NATIONAL ASSESSMENT OF TITLE I

     ``SEC. 1501. EVALUATIONS.

       ``(a) National Assessment of Title I.--
       ``(1) In general.--The Secretary shall conduct a national 
     assessment of the programs assisted under this title and the 
     impact of this title on States, local educational agencies, 
     schools, and students.
       ``(2) Issues to be examined.--In conducting the assessment 
     under this subsection, the Secretary shall examine, at a 
     minimum, the following:
       ``(A) The implementation of programs assisted under this 
     title and the impact of such implementation on increasing 
     student academic achievement (particularly in schools with 
     high concentrations of children living in poverty), relative 
     to the goal of all students reaching the proficient level of 
     achievement based on State academic assessments, challenging 
     State academic content standards, and challenging State 
     student academic achievement standards under section 1111.
       ``(B) The types of programs and services that have 
     demonstrated the greatest likelihood of helping students 
     reach the proficient and advanced levels of achievement based 
     on State student academic achievement standards and State 
     academic content standards.
       ``(C) The implementation of State academic standards, 
     assessments, and accountability systems developed under this 
     title, including--
       ``(i) the time and cost required for the development of 
     academic assessments for students in grades 3 through 8;
       ``(ii) how well such State assessments meet the 
     requirements for assessments described in this title; and
       ``(iii) the impact of such standards, assessments, and 
     accountability systems on educational programs and 
     instruction at the local level.
       ``(D) Each State's definition of adequate yearly progress, 
     including--
       ``(i) the impact of applying this definition to schools, 
     local educational agencies, and the States;
       ``(ii) the number of schools and local educational agencies 
     not meeting this definition; and
       ``(iii) the changes in the identification of schools in 
     need of improvement as a result of such definition.
       ``(E) How schools, local educational agencies, and States 
     have--
       ``(i) publicized and disseminated the local educational 
     agency report cards required under section 1111(b) to 
     teachers, school staff, students, parents, and the community;
       ``(ii) used funds made available under this title to 
     provide preschool and family literacy services and the impact 
     of these services on students' school readiness;
       ``(iii) implemented the provisions of section 1118 and 
     afforded parents meaningful opportunities to be involved in 
     the education of their children;
       ``(iv) used Federal, State, and local educational agency 
     funds and resources to support schools and provide technical 
     assistance to improve the achievement of students in low-
     performing schools, including the impact of the technical 
     assistance on such achievement; and
       ``(v) used State educational agency and local educational 
     agency funds and resources to help

[[Page 25669]]

     schools in which 50 percent or more of the students are from 
     families with incomes below the poverty line meet the 
     requirement described in section 1119 of having all teachers 
     highly qualified not later than the end of the 2005-2006 
     school year
       ``(F) The implementation of schoolwide programs and 
     targeted assistance programs under this title and the impact 
     of such programs on improving student academic achievement, 
     including the extent to which schools meet the requirements 
     of such programs.
       ``(G) The extent to which varying models of comprehensive 
     school reform are funded and implemented under this title, 
     and the effect of the implementation of such models on 
     improving achievement of disadvantaged students.
       ``(H) The costs as compared to the benefits of the 
     activities assisted under this title.
       ``(I) The extent to which actions authorized under section 
     1116 are implemented by State educational agencies and local 
     educational agencies to improve the academic achievement of 
     students in low-performing schools, and the effectiveness of 
     the implementation of such actions, including the following:
       ``(i) The number of schools identified for school 
     improvement and how many years the schools remain in this 
     status.
       ``(ii) The types of support provided by the State 
     educational agencies and local educational agencies to 
     schools and local educational agencies respectively 
     identified as in need of improvement, and the impact of such 
     support on student achievement.
       ``(iii) The number of parents who take advantage of the 
     public school choice provisions of this title, the costs 
     (including transportation costs) associated with implementing 
     these provisions, the implementation of these provisions, and 
     the impact of these provisions (including the impact of 
     attending another school) on student achievement.
       ``(iv) The number of parents who choose to take advantage 
     of the supplemental services option, the criteria used by the 
     States to determine the quality of providers, the kinds of 
     services that are available and utilized, the costs 
     associated with implementing this option, and the impact of 
     receiving supplemental services on student achievement.
       ``(v) The implementation and impact of actions that are 
     taken with regard to schools and local educational agencies 
     identified for corrective action and restructuring.
       ``(J) The extent to which State and local fiscal accounting 
     requirements under this title affect the flexibility of 
     schoolwide programs.
       ``(K) The implementation and impact of the professional 
     development activities assisted under this title and title II 
     on instruction, student academic achievement, and teacher 
     qualifications.
       ``(L) The extent to which the assistance made available 
     under this title, including funds under section 1002, is 
     targeted to disadvantaged students, schools, and local 
     educational agencies with the greatest need.
       ``(M) The effectiveness of Federal administration 
     assistance made available under this title, including 
     monitoring and technical assistance.
       ``(N) The academic achievement of the groups of students 
     described in section 1111(b)(2)(C)(v)(II).
       ``(O) Such other issues as the Secretary considers 
     appropriate.
       ``(3) Sources of information.--In conducting the assessment 
     under this subsection, the Secretary shall use information 
     from a variety of sources, including the National Assessment 
     of Educational Progress (carried out under section 411 of the 
     National Education Statistics Act of 1994), State 
     evaluations, and other research studies.
       ``(4) Coordination.--In carrying out this subsection, the 
     Secretary shall--
       ``(A) coordinate the national assessment under this 
     subsection with the longitudinal study described in 
     subsection (c); and
       ``(B) ensure that the independent review panel described in 
     subsection (d) participates in conducting the national 
     assessment under this subsection, including planning for and 
     reviewing the assessment.
       ``(5) Developmentally appropriate measures.--In conducting 
     the national assessment under this subsection, the Secretary 
     shall use developmentally appropriate measures to assess 
     student academic achievement.
       ``(6) Reports.--
       ``(A) Interim report.--Not later than 3 years after the 
     date of enactment of the No Child Left Behind Act of 2001, 
     the Secretary shall transmit to the President, the Committee 
     on Education and the Workforce of the House of 
     Representatives, and the Committee on Health, Education, 
     Labor, and Pensions of the Senate an interim report on the 
     national assessment conducted under this subsection.
       ``(B) Final report.--Not later than 5 years after the date 
     of enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall transmit to the President, 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 final report on the national assessment 
     conducted under this subsection.
       ``(b) Studies and Data Collection.--
       ``(1) In general.--In addition to other activities 
     described in this section, the Secretary may, directly or 
     through awarding grants to or entering into contracts with 
     appropriate entities--
       ``(A) assess the implementation and effectiveness of 
     programs under this title;
       ``(B) collect the data necessary to comply with the 
     Government Performance and Results Act of 1993; and
       ``(C) provide guidance and technical assistance to State 
     educational agencies and local educational agencies in 
     developing and maintaining management information systems 
     through which such agencies may develop program performance 
     indicators to improve services and performance.
       ``(2) Minimum information.--In carrying out this 
     subsection, the Secretary shall collect, at a minimum, trend 
     information on the effect of each program authorized under 
     this title, which shall complement the data collected and 
     reported under subsections (a) and (c).
       ``(c) National Longitudinal Study.--
       ``(1) In general.--The Secretary shall conduct a 
     longitudinal study of schools receiving assistance under part 
     A.
       ``(2) Issues to be examined.--In carrying out this 
     subsection, the Secretary shall ensure that the study 
     referred to in paragraph (1) provides Congress and educators 
     with each of the following:
       ``(A) An accurate description and analysis of the short- 
     and long-term effect of the assistance made available under 
     this title on academic achievement.
       ``(B) Information that can be used to improve the 
     effectiveness of the assistance made available under this 
     title in enabling students to meet challenging academic 
     achievement standards.
       ``(C) An analysis of educational practices or model 
     programs that are effective in improving the achievement of 
     disadvantaged children.
       ``(D) An analysis of the costs as compared to the benefits 
     of the assistance made available under this title in 
     improving the achievement of disadvantaged children.
       ``(E) An analysis of the effects of the availability of 
     school choice options under section 1116 on the academic 
     achievement of disadvantaged students, on schools in school 
     improvement, and on schools from which students have 
     transferred under such options.
       ``(F) Such other information as the Secretary considers 
     appropriate.
       ``(3) Scope.--In conducting the study referred to in 
     paragraph (1), the Secretary shall ensure that the study--
       ``(A) bases its analysis on a nationally representative 
     sample of schools participating in programs under this title;
       ``(B) to the extent practicable, includes in its analysis 
     students who transfer to different schools during the course 
     of the study; and
       ``(C) analyzes varying models or strategies for delivering 
     school services, including--
       ``(i) schoolwide and targeted services; and
       ``(ii) comprehensive school reform models.
       ``(d) Independent Review Panel.--
       ``(1) In general.--The Secretary shall establish an 
     independent review panel (in this subsection referred to as 
     the `Review Panel') to advise the Secretary on methodological 
     and other issues that arise in carrying out subsections (a) 
     and (c).
       ``(2) Appointment of members.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall appoint members of the Review Panel from 
     among qualified individuals who are--
       ``(i) specialists in statistics, evaluation, research, and 
     assessment;
       ``(ii) education practitioners, including teachers, 
     principals, and local and State superintendents;
       ``(iii) parents and members of local school boards or other 
     organizations involved with the implementation and operation 
     of programs under this title; and
       ``(iv) other individuals with technical expertise who will 
     contribute to the overall rigor and quality of the program 
     evaluation.
       ``(B) Limitations.--In appointing members of the Review 
     Panel, the Secretary shall ensure that--
       ``(i) in order to ensure diversity, the Review Panel 
     includes individuals appointed under subparagraph (A)(i) who 
     represent disciplines or programs outside the field of 
     education; and
       ``(ii) the total number of the individuals appointed under 
     subparagraph (A)(ii) or (A)(iv) does not exceed \1/4\ of the 
     total number of the individuals appointed under this 
     paragraph.
       ``(3) Functions.--The Review Panel shall consult with and 
     advise the Secretary--
       ``(A) to ensure that the assessment conducted under 
     subsection (a) and the study conducted under subsection (c)--
       ``(i) adhere to the highest possible standards of quality 
     with respect to research design, statistical analysis, and 
     the dissemination of findings; and
       ``(ii) use valid and reliable measures to document program 
     implementation and impacts; and
       ``(B) to ensure--
       ``(i) that the final report described in subsection 
     (a)(6)(B) is reviewed not later than 120 days after its 
     completion by not less than 2 independent experts in program 
     evaluation (who may be from among the members of the Review 
     Panel appointed under paragraph (2));
       ``(ii) that such experts evaluate and comment on the degree 
     to which the report complies with subsection (a); and
       ``(iii) that the comments of such experts are transmitted 
     with the report under subsection (a)(6)(B).

     ``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

       ``(a) In General.--From the funds appropriated for any 
     fiscal year under section 1002(e)(1), the Secretary may award 
     grants to State educational agencies, local educational 
     agencies, other public agencies, nonprofit organizations, 
     public or private partnerships involving business and 
     industry organizations, and

[[Page 25670]]

     consortia of such entities to carry out demonstration 
     projects that show the most promise of enabling children 
     served under this title to meet challenging State academic 
     content standards and challenging State student academic 
     achievement standards.
       ``(b) Evaluation.--The Secretary shall evaluate the 
     demonstration projects supported under this title, using 
     rigorous methodological designs and techniques, including 
     control groups and random assignment, to the extent feasible, 
     to produce reliable evidence of effectiveness.
       ``(c) Partnerships.--From funds appropriated under section 
     1002(e)(1) for any fiscal year, the Secretary may, directly 
     or through grants or contracts, work in partnership with 
     State educational agencies, local educational agencies, other 
     public agencies, and nonprofit organizations to disseminate 
     and use the highest quality research and knowledge about 
     effective practices to improve the quality of teaching and 
     learning in schools assisted under this title.

     ``SEC. 1503. ASSESSMENT EVALUATION.

       ``(a) In General.--The Secretary shall conduct an 
     independent study of assessments used for State 
     accountability purposes and for making decisions about the 
     promotion and graduation of students. Such research shall be 
     conducted over a period not to exceed 5 years and shall 
     address the components described in subsection (d).
       ``(b) Contract Authorized.--The Secretary is authorized to 
     award a contract, through a peer review process, to an 
     organization or entity capable of conducting rigorous, 
     independent research. The Assistant Secretary of Educational 
     Research and Improvement shall appoint peer reviewers to 
     evaluate the applications for this contract.
       ``(c) Study.--The study shall--
       ``(1) synthesize and analyze existing research that meets 
     standards of quality and scientific rigor; and
       ``(2) evaluate academic assessment and accountability 
     systems in State educational agencies, local educational 
     agencies, and schools; and
       ``(3) make recommendations to the Department and to the 
     Committee on Education and the Workforce of the United States 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the United States Senate, 
     based on the findings of the study.
       ``(d) Components of the Research Program.--The study 
     described in subsection (a) shall examine--
       ``(1) the effect of the assessment and accountability 
     systems described in section (c) on students, teachers, 
     parents, families, schools, school districts, and States, 
     including correlations between such systems and--
       ``(A) student academic achievement, progress to the State-
     defined level of proficiency, and progress toward closing 
     achievement gaps, based on independent measures;
       ``(B) changes in course offerings, teaching practices, 
     course content, and instructional material;
       ``(C) changes in turnover rates among teachers, principals, 
     and pupil-services personnel;
       ``(D) changes in dropout, grade-retention, and graduation 
     rates for students; and
       ``(E) such other effects as may be appropriate;
       ``(2) the effect of the academic assessments on students 
     with disabilities;
       ``(3) the effect of the academic assessments on low, 
     middle, and high socioeconomic status students, limited and 
     nonlimited English proficient students, racial and ethnic 
     minority students, and nonracial or nonethnic minority 
     students;
       ``(4) guidelines for assessing the validity, reliability, 
     and consistency of those systems using nationally recognized 
     professional and technical standards; and
       ``(5) the relationship between accountability systems and 
     the inclusion or exclusion of students from the assessment 
     system; and
       ``(6) such other factors as the Secretary finds 
     appropriate.
       ``(d) Reporting.--Not later than 3 years after the contract 
     described in section (b) is awarded, the organization or 
     entity conducting the study shall submit an interim report to 
     the Committee on Education and the Workforce of the United 
     States House of Representatives and the Committee on Health, 
     Education, Labor and Pensions of the United States Senate, 
     Congress, and to the President and the States, and shall make 
     the report widely available to the public. The organization 
     or entity shall submit a final report to the same recipients 
     as soon as possible after the completion of the study. 
     Additional reports may be periodically prepared and released 
     as necessary.
       ``(e) Reservation of Funds.--The Secretary may reserve up 
     to 15 percent of the funds authorized to be appropriated for 
     this part to carry out the study, except such reservation of 
     funds shall not exceed $1,500,000.

     ``SEC. 1504. CLOSE UP FELLOWSHIP PROGRAM.

       ``(a) Program for Middle School and Secondary School 
     Students.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing civic responsibility and understanding 
     of the Federal Government among middle school and secondary 
     school students.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to economically 
     disadvantaged students who participate in the programs 
     described in subparagraph (A).
       ``(C) Name of fellowships.--Financial assistance received 
     by students pursuant to this subsection shall be known as 
     Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up fellowships provided under this subsection 
     shall be made to economically disadvantaged middle school and 
     secondary school students;
       ``(ii) every effort shall be made to ensure the 
     participation of students from rural, small town, and urban 
     areas;
       ``(iii) in awarding the fellowships to economically 
     disadvantaged students, special consideration shall be given 
     to the participation of those students with special 
     educational needs, including students with disabilities, 
     ethnic minority students, and students with migrant parents; 
     and
       ``(iv) the funds received under this subsection shall be 
     properly disbursed.
       ``(b) Program for Middle School and Secondary School 
     Teachers.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of professional development for middle school and 
     secondary school teachers and its programs to increase civic 
     responsibility and understanding of the Federal Government 
     among the teachers' students.
       ``(B) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to teachers who 
     participate in the programs described in subparagraph (A).
       ``(C) Name of fellowships.--Financial assistance received 
     by teachers pursuant to this subsection shall be known as 
     Close Up fellowships.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up fellowships provided under this subsection 
     shall be made only to a teacher who has worked with at least 
     1 student from such teacher's school who participates in a 
     program described in subsection (a)(1)(A);
       ``(ii) no teacher shall receive more than 1 such fellowship 
     in any fiscal year; and
       ``(iii) the funds received under this subsection shall be 
     properly disbursed.
       ``(c) Programs for New Americans.--
       ``(1) Establishment.--
       ``(A) General authority.--In accordance with this 
     subsection, the Secretary may make grants to the Close Up 
     Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing civic responsibility and understanding 
     of the Federal Government among economically disadvantaged 
     middle school and secondary school recent immigrant students.
       ``(B) Definition.--In this subsection, the term `recent 
     immigrant student' means a student who is a member of a 
     family that immigrated to the United States within 5 years of 
     the student's participation in such a program.
       ``(C) Use of funds.--Grants under this subsection shall be 
     used only to provide financial assistance to economically 
     disadvantaged recent immigrant students and their teachers 
     who participate in the programs described in subparagraph 
     (A).
       ``(D) Name of fellowships.--Financial assistance received 
     by students and teachers pursuant to this subsection shall be 
     known as Close Up Fellowships for New Americans.
       ``(2) Applications.--
       ``(A) Application required.--No grant under this subsection 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(B) Contents of application.--Each application submitted 
     under this paragraph shall contain assurances that--
       ``(i) Close Up Fellowships for New Americans shall be made 
     to economically disadvantaged middle school and secondary 
     school recent immigrant students;
       ``(ii) every effort shall be made to ensure the 
     participation of recent immigrant students from rural, small 
     town, and urban areas;
       ``(iii) in awarding the fellowships to economically 
     disadvantaged recent immigrant students, special 
     consideration shall be given to the participation of those 
     students with special educational needs, including students 
     with disabilities, students with migrant parents, and ethnic 
     minority students;
       ``(iv) fully describe the activities to be carried out with 
     the proceeds of the grant made under paragraph (1); and
       ``(v) the funds received under this subsection shall be 
     properly disbursed.

[[Page 25671]]

       ``(d) General Provisions.--
       ``(1) Administrative provisions.--
       ``(A) Accountability.--In consultation with the Secretary, 
     the Close Up Foundation shall devise and implement procedures 
     to measure the efficacy of the programs authorized in 
     subsections (a), (b), and (c) in attaining objectives that 
     include the following:
       ``(i) Providing young people with an increased 
     understanding of the Federal Government.
       ``(ii) Heightening a sense of civic responsibility among 
     young people.
       ``(iii) Enhancing the skills of educators in teaching young 
     people about civic responsibility, the Federal Government, 
     and attaining citizenship competencies.
       ``(B) General rule.--Payments under this section may be 
     made in installments, in advance, or by way of reimbursement, 
     with necessary adjustments on account of underpayments or 
     overpayments.
       ``(C) Audit rule.--The Comptroller General of the United 
     States or any of the Comptroller General's duly authorized 
     representatives shall have access for the purpose of audit 
     and examination to any books, documents, papers, and records 
     that are pertinent to any grant under this section.
        ``(2) Continuation of awards.--Notwithstanding any other 
     provision of this Act, any person or entity that was awarded 
     a grant under part G of title X before the date of enactment 
     of the No Child Left Behind Act of 2001 shall continue to 
     receive funds in accordance with the terms of such award 
     until the date on which the award period terminates under 
     such terms.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

     ``SEC. 1601. PURPOSE.

       ``The purpose of this part 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 academic content and academic 
     achievement standards.

     ``SEC. 1602. PROGRAM AUTHORIZATION.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to State educational agencies, from allotments under 
     paragraph (2), to enable the State educational agencies to 
     award subgrants to local educational agencies to carry out 
     the purpose described in section 1601.
       ``(2) Allotments.--
       ``(A) Reservations.--Of the amount appropriated under 
     section 1002(f), the Secretary may reserve--
       ``(i) not more than 1 percent for each fiscal year to 
     provide assistance to schools supported by the Bureau of 
     Indian Affairs and in the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands according to their respective needs for assistance 
     under this part;
       ``(ii) not more than 1 percent for each fiscal year to 
     conduct national evaluation activities described in section 
     1607; and
       ``(iii) not more than 3 percent of the amount appropriated 
     in fiscal year 2002 to carry out this part, for quality 
     initiatives described in section 1608.
       ``(B) In general.--Of the amount appropriated under section 
     1002(f) that remains after making the reservation under 
     subparagraph (A) for a fiscal year, the Secretary shall allot 
     to each State for the fiscal year an amount that bears the 
     same ratio to the remainder for that fiscal year as the 
     amount made available under section 1124 to the State for the 
     preceding fiscal year bears to the total amount made 
     available under section 1124 to all States for that year.
       ``(C) Reallotment.--If a State does not apply for funds 
     under this section, the Secretary shall reallot such funds to 
     other States that do apply in proportion to the amount 
     allotted to such other States under subparagraph (B).

     ``SEC. 1603. STATE APPLICATIONS.

       ``(a) In General.--Each State educational agency that 
     desires to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each such application shall describe--
       ``(1) the process and selection criteria by which the State 
     educational agency, using expert review, will select local 
     educational agencies to receive subgrants under this section;
       ``(2) how the State educational agency will ensure that 
     funds under this part are limited to comprehensive school 
     reform programs that--
       ``(A) include each of the components described in section 
     1606(a);
       ``(B) have the capacity to improve the academic achievement 
     of all students in core academic subjects within 
     participating schools; and
       ``(C) are supported by technical assistance providers that 
     have a successful track record, financial stability, and the 
     capacity to deliver high quality materials, professional 
     development for school personnel, and on-site support during 
     the full implementation period of the reforms;
       ``(3) how the State educational agency will disseminate 
     materials and information on comprehensive school reforms 
     that are based on scientifically based research and effective 
     practices;
       ``(4) how the State educational agency will evaluate 
     annually the implementation of such reforms and measure the 
     extent to which the reforms have resulted in increased 
     student academic achievement; and
       ``(5) how the State educational agency will provide 
     technical assistance to the local educational agency or 
     consortia of local educational agencies, and to participating 
     schools, in evaluating, developing, and implementing 
     comprehensive school reform.

     ``SEC. 1604. STATE USE OF FUNDS.

       ``(a) In General.--Except as provided in subsection (e), a 
     State educational agency that receives a grant under this 
     part shall use the grant funds to award subgrants, on a 
     competitive basis, to local educational agencies or consortia 
     of local educational agencies in the State that receive funds 
     under part A, to support comprehensive school reforms in 
     schools that are eligible for funds under part A.
       ``(b) Subgrant Requirements.--A subgrant to a local 
     educational agency or consortium shall be--
       ``(1) of sufficient size and scope to support the initial 
     costs of comprehensive school reforms selected or designed by 
     each school identified in the application of the local 
     educational agency or consortium;
       ``(2) in an amount not less than $50,000--
       ``(A) for each participating school; or
       ``(B) for each participating consortium of small schools 
     (which for purposes of this subparagraph means a consortium 
     of small schools serving a total of not more than 500 
     students); and
       ``(3) renewable for 2 additional 1-year subgrant periods 
     after the initial 1-year subgrant is made if the school is or 
     the schools are making substantial progress in the 
     implementation of reforms.
       ``(c) Priority.--A State educational agency, in awarding 
     subgrants under this part, shall give priority to local 
     educational agencies or consortia that--
       ``(1) plan to use the funds in schools identified as being 
     in need of improvement or corrective action under section 
     1116(c); and
       ``(2) demonstrate a commitment to assist schools with 
     budget allocation, professional development, and other 
     strategies necessary to ensure the comprehensive school 
     reforms are properly implemented and are sustained in the 
     future.
       ``(d) Grant Consideration.--In awarding subgrants under 
     this part, the State educational agency shall take into 
     consideration the equitable distribution of subgrants to 
     different geographic regions within the State, including 
     urban and rural areas, and to schools serving elementary and 
     secondary students.
       ``(e) Administrative Costs.--A State educational agency 
     that receives a grant under this part may reserve not more 
     than 5 percent of the grant funds for administrative, 
     evaluation, and technical assistance expenses.
       ``(f) Supplement.--Funds made available under this part 
     shall be used to supplement, and not supplant, any other 
     Federal, State, or local funds that would otherwise be 
     available to carry out the activities assisted under this 
     part.
       ``(g) Reporting.--Each State educational agency that 
     receives a grant under this part shall provide to the 
     Secretary such information as the Secretary may require, 
     including the names of local educational agencies and schools 
     receiving assistance under this part, the amount of the 
     assistance, a description of the comprehensive school reforms 
     selected and used, and a copy of the State's annual 
     evaluation of the implementation of comprehensive school 
     reforms supported under this part and the student achievement 
     results.

     ``SEC. 1605. LOCAL APPLICATIONS.

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

     ``SEC. 1606. LOCAL USE OF FUNDS.

       ``(a) Uses of Funds.--A local educational agency or 
     consortium that receives a subgrant under this part shall 
     provide the subgrant funds to schools that are eligible for 
     assistance under part A and served by the agency, to enable 
     the schools to implement a comprehensive school reform 
     program that--
       ``(1) employs proven 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;
       ``(2) 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, and professional development into a 
     comprehensive school reform plan for schoolwide change 
     designed to enable all

[[Page 25672]]

     students to meet challenging State content and student 
     academic achievement standards and addresses needs identified 
     through a school needs assessment;
       ``(3) provides high quality and continuous teacher and 
     staff professional development;
       ``(4) includes measurable goals for student academic 
     achievement and benchmarks for meeting such goals;
       ``(5) is supported by teachers, principals, administrators, 
     school personnel staff, and other professional staff;
       ``(6) provides support for teachers, principals, 
     administrators, and other school staff;
       ``(7) provides for the meaningful involvement of parents 
     and the local community in planning, implementing, and 
     evaluating school improvement activities consistent with 
     section 1118;
       ``(8) uses high quality external technical support and 
     assistance from an entity that has experience and expertise 
     in schoolwide reform and improvement, which may include an 
     institution of higher education;
       ``(9) includes a plan for the annual evaluation of the 
     implementation of school reforms and the student results 
     achieved;
       ``(10) identifies other resources, including Federal, 
     State, local, and private resources, that shall be used to 
     coordinate services that will support and sustain the 
     comprehensive school reform effort; and
       ``(11)(A) has been found, through scientifically based 
     research to significantly improve the academic achievement of 
     students participating in such program as compared to 
     students in schools who have not participated in such 
     program; or
       ``(B) has been found to have strong evidence that such 
     program will significantly improve the academic achievement 
     of participating children.
       ``(b) Special Rule.--A school that receives funds to 
     develop a comprehensive school reform program shall not be 
     limited to using nationally available approaches, but may 
     develop the school's own comprehensive school reform program 
     for schoolwide change as described in subsection (a).

     ``SEC. 1607. EVALUATION AND REPORTS.

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

     ``SEC. 1608. QUALITY INITIATIVES.

       ``The Secretary, through grants or contracts, shall provide 
     funds for--
       ``(1) a public-private effort, in which funds are matched 
     by private organizations, to assist States, local educational 
     agencies, and schools, in making informed decisions regarding 
     approving or selecting providers of comprehensive school 
     reform, consistent with the requirements described in section 
     1606(a); and
       ``(2) activities to foster the development of comprehensive 
     school reform models and to provide effective capacity 
     building for comprehensive school reform providers to expand 
     their work in more schools, assure quality, and promote 
     financial stability.

                 ``PART G--ADVANCED PLACEMENT PROGRAMS

     ``SEC. 1701. SHORT TITLE.

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

     ``SEC. 1702. PURPOSES.

       The purposes of this part are--
       ``(1) to support State and local efforts to raise academic 
     standards through advanced placement programs, and thus 
     further increase the number of students who participate and 
     succeed in advanced placement programs;
       ``(2) to encourage more of the 600,000 students who take 
     advanced placement courses each year but do not take advanced 
     placement exams each year, to demonstrate their achievements 
     through taking the exams;
       ``(3) to build on the many benefits of advanced placement 
     programs for students, which benefits may include the 
     acquisition of skills that are important to many employers, 
     Scholastic Aptitude Test (SAT) scores that are 100 points 
     above the national averages, and the achievement of better 
     grades in secondary school and in college than the grades of 
     students who have not participated in the programs;
       ``(4) to increase the availability and broaden the range of 
     schools, including middle schools, that have advanced 
     placement and pre-advanced placement programs;
       ``(5) to demonstrate that larger and more diverse groups of 
     students can participate and succeed in advanced placement 
     programs;
       ``(6) to provide greater access to advanced placement and 
     pre-advanced placement courses and highly trained teachers 
     for low-income and other disadvantaged students;
       ``(7) to provide access to advanced placement courses for 
     secondary school students at schools that do not offer 
     advanced placement programs, increase the rate at which 
     secondary school students participate in advanced placement 
     courses, and increase the numbers of students who receive 
     advanced placement test scores for which college academic 
     credit is awarded;
       ``(8) to increase the participation of low-income 
     individuals in taking advanced placement tests through the 
     payment or partial payment of the costs of the advanced 
     placement test fees; and
       ``(9) to increase the number of individuals that achieve a 
     baccalaureate or advanced degree, and to decrease the amount 
     of time such individuals require to attain such degrees.

     ``SEC. 1703. FUNDING DISTRIBUTION RULE.

       ``From amounts appropriated under section 1002(g) for a 
     fiscal year, the Secretary shall give priority to funding 
     activities under section 1704 and shall distribute any 
     remaining funds under section 1705.

     ``SEC. 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

       ``(a) Grants Authorized.--From amounts made available under 
     section 1703 for a fiscal year, the Secretary shall award 
     grants to State educational agencies having applications 
     approved under this section to enable the State educational 
     agencies to reimburse low-income individuals to cover part or 
     all of the costs of advanced placement test fees, if the low-
     income individuals--
       ``(1) are enrolled in an advanced placement course; and
       ``(2) plan to take an advanced placement test.
       ``(b) Award Basis.--In determining the amount of the grant 
     awarded to a State educational agency under this section for 
     a fiscal year, the Secretary shall consider the number of 
     children eligible to be counted under section 1124(c) in the 
     State in relation to the number of such children so counted 
     in all the States.
       ``(c) Information Dissemination.--A State educational 
     agency awarded a grant under this section shall disseminate 
     information regarding the availability of advanced placement 
     test fee payments under this section to eligible individuals 
     through secondary school teachers and guidance counselors.
       ``(d) Applications.--Each State educational agency desiring 
     to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. At a minimum, each State educational agency 
     application shall--
       ``(1) describe the advanced placement test fees the State 
     educational agency will pay on behalf of low-income 
     individuals in the State from grant funds awarded under this 
     section;
       ``(2) provide an assurance that any grant funds awarded 
     under this section shall be used only to pay for advanced 
     placement test fees; and
       ``(3) contain such information as the Secretary may require 
     to demonstrate that the State educational agency will ensure 
     that a student is eligible for payments authorized under this 
     section, including documentation required under chapter 1 of 
     subpart 2 of part A of title IV of the Higher Education Act 
     of 1965.
       ``(e) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out this section.
       ``(f) Report.--
       ``(1) In general.--Each State educational agency awarded a 
     grant under this section shall, with respect to each advanced 
     placement subject, annually report to the Secretary on--
       ``(A) the number of students in the State who are taking an 
     advanced placement course in that subject;
       ``(B) the number of advanced placement tests taken by 
     students in the State who have taken an advanced placement 
     course in that subject;
       ``(C) the number of students in the State scoring at 
     different levels on advanced placement tests in that subject; 
     and
       ``(D) demographic information regarding individuals in the 
     State taking advanced placement courses and tests in that 
     subject disaggregated by race, ethnicity, sex, English 
     proficiency status, and socioeconomic status.
       ``(2) Report to congress.--The Secretary shall annually 
     compile the information received from each State educational 
     agency under paragraph (1) and report to the appropriate 
     Committees of Congress regarding the information.
       ``(g) BIA as SEA.--For purposes of this section the Bureau 
     of Indian Affairs shall be treated as a State educational 
     agency.

     ``SEC. 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM GRANTS.

       ``(a) Grants authorized.--
       ``(1) In general.--From amounts made available under 
     section 1703 for a fiscal year, the Secretary shall award 
     grants, on a competitive basis, to eligible entities to 
     enable those entities to carry out the authorized activities 
     described in subsection (d).
       ``(2) Duration and payments.--
       ``(A) Duration.--The Secretary shall award a grant under 
     this section for a period of not more than 3 years.
       ``(B) Payments.--The Secretary shall make grant payments 
     under this section on an annual basis.
       ``(3) Definition of eligible entity.--In this section, the 
     term `eligible entity' means a State educational agency, 
     local educational agency, or national nonprofit educational 
     entity with expertise in advanced placement services.
       ``(b) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(c) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to

[[Page 25673]]

     an eligible entity that submits an application under 
     subsection (b) that--
       ``(1) demonstrates a pervasive need for access to advanced 
     placement incentive programs;
       ``(2) provides for the involvement of business and 
     community organizations in the activities to be assisted;
       ``(3) assures the availability of matching funds from 
     State, local, or other sources to pay for the cost of 
     activities to be assisted;
       ``(4) demonstrates a focus on developing or expanding 
     advanced placement programs and participation in the core 
     academic areas of English, mathematics, and science;
       ``(5) demonstrates an intent to carry out activities that 
     target--
       ``(A) local educational agencies serving schools with a 
     high concentration of low-income students; or
       ``(B) schools with a high concentration of low-income 
     students; and
       ``(6) in the case of a local educational agency, assures 
     that the local educational agency serves schools with a high 
     concentration of low-income students; or
       ``(7) demonstrates an intent to carry out activities to 
     increase the availability of, and participation in, on-line 
     advanced placement courses.
       ``(d) Authorized Activities.--
       ``(1) In general.--Subject to paragraph (2), an eligible 
     entity shall use grant funds made available under this 
     section to expand access for low-income individuals to 
     advanced placement incentive programs that involve--
       ``(A) teacher training;
       ``(B) pre-advanced placement course development;
       ``(C) coordination and articulation between grade levels to 
     prepare students for academic achievement in advanced 
     placement courses;
       ``(D) books and supplies; or
       ``(E) activities to increase the availability of, and 
     participation in, on-line advanced placement courses; or
       ``(F) any other activity directly related to expanding 
     access to and participation in advanced placement incentive 
     programs, particularly for low-income individuals.
       ``(2) State educational agency.--In the case of an eligible 
     entity that is a State educational agency, the entity may use 
     grant funds made available under this section to award 
     subgrants to local educational agencies to enable the local 
     educational agencies to carry out the activities under 
     paragraph (1).
       ``(e) Contracts.--An eligible entity awarded a grant to 
     provide online advanced placement courses under this part may 
     enter into a contract with a nonprofit or for profit 
     organization to provide the online advanced placement 
     courses, including contracting for necessary support 
     services.
       ``(f) Data Collection and Reporting.--
       ``(1) Data collection.--Each eligible entity awarded a 
     grant under this section shall, with respect to each advanced 
     placement subject, annually report to the Secretary on--
       ``(A) the number of students served by the eligible entity 
     who are taking an advanced placement course in that subject;
       ``(B) the number of advanced placement tests taken by 
     students served by the eligible entity in that subject;
       ``(C) the number of students served by the eligible entity 
     scoring at different levels on advanced placement tests in 
     that subject; and
       ``(D) demographic information regarding individuals served 
     by such agency who taking advanced placement courses and 
     tests in that subject disaggregated by race, ethnicity, sex, 
     English proficiency status, and socioeconomic status.
       ``(2) Report.--The Secretary shall annually compile the 
     information received from each eligible entity under 
     paragraph (1) and report to the appropriate Committees of 
     Congress regarding the information.

     ``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

       Grant funds provided under this part shall supplement, and 
     not supplant, other non-Federal funds that are available to 
     assist low-income individuals to pay for the cost of advanced 
     placement test fees or to expand access to advanced placement 
     and pre-advanced placement courses.

     ``SEC. 1707. DEFINITIONS.

       ``In this part:
       ``(1) Advanced placement test.--The term `advanced 
     placement test' means an advanced placement test administered 
     by the College Board or approved by the Secretary.
       ``(2) High concentration of low-income students.--The term 
     `high concentration of low-income students', used with 
     respect to a school, means a school that serves a student 
     population 40 percent or more of whom are low-income 
     individuals.
       ``(3) Low-income individual.--The term `low-income 
     individual' means an individual who is determined by a State 
     educational agency or local educational agency to be a child, 
     ages 5 through 17, from a low-income family, on the basis of 
     data used by the Secretary to determine allocations under 
     section 1124 of this Act, data on children eligible for free 
     or reduced-price lunches under the National School Lunch Act, 
     data on children in families receiving assistance under part 
     A of title IV of the Social Security Act, or data on children 
     eligible to receive medical assistance under the medicaid 
     program under title XIX of the Social Security Act, or 
     through an alternate method that combines or extrapolates 
     from those data.

                  ``PART H--SCHOOL DROPOUT PREVENTION

     ``SEC. 1801. SHORT TITLE.

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

     ``SEC. 1802. PURPOSE.

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

     ``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this part, there are 
     authorized to be appropriated $125,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 5 
     succeeding fiscal years, of which--
       ``(1) 10 percent shall be available to carry out subpart 1 
     for each fiscal year; and
       ``(2) 90 percent shall be available to carry out subpart 2 
     for each fiscal year.

               ``Subpart 1--Coordinated National Strategy

     ``SEC. 1811. NATIONAL ACTIVITIES.

       ``(a) In General.--The Secretary is authorized--
       ``(1) to collect systematic data on the effectiveness of 
     the programs assisted under this part in reducing school 
     dropout rates and increasing school reentry and secondary 
     school graduation rates;
       ``(2) to establish a national clearinghouse of information 
     on effective school dropout prevention and reentry programs 
     that shall disseminate to State educational agencies, local 
     educational agencies, and schools--
       ``(A) the results of research on school dropout prevention 
     and reentry; and
       ``(B) information on effective programs, best practices, 
     and Federal resources to--
       ``(i) reduce annual school dropout rates;
       ``(ii) increase school reentry; and
       ``(iii) increase secondary school graduation rates;
       ``(3) to provide technical assistance to State educational 
     agencies, local educational agencies, and schools in 
     designing and implementing programs and securing resources to 
     implement effective school dropout prevention and reentry 
     programs;
       ``(4) to establish and consult with an interagency working 
     group that shall--
       ``(A) address inter- and intra-agency program coordination 
     issues at the Federal level with respect to school dropout 
     prevention and reentry, and assess the targeting of existing 
     Federal services to students who are most at risk of dropping 
     out of school, and the cost-effectiveness of various programs 
     and approaches used to address school dropout prevention and 
     reentry;
       ``(B) describe the ways in which State educational agencies 
     and local educational agencies can implement effective school 
     dropout prevention and reentry programs using funds from a 
     variety of Federal programs, including the programs under 
     this part; and
       ``(C) examine Federal programs that may have a positive 
     impact on secondary school graduation or school reentry;
       ``(5) to carry out a national recognition program in 
     accordance with subsection (b) that recognizes schools that 
     have made extraordinary progress in lowering school dropout 
     rates; and
       ``(6) to use funds made available for this subpart to carry 
     out the evaluation required under section 1830(c).
       ``(b) Recognition Program.--
       ``(1) Establishment.--The Secretary shall--
       ``(A) establish a national recognition program; and
       ``(B) develop uniform national guidelines for the 
     recognition program that shall be used to recognize eligible 
     schools from nominations submitted by State educational 
     agencies.
       ``(2) Recognition.--The Secretary shall recognize, under 
     the recognition program established under paragraph (1), 
     eligible schools.
       ``(3) Support.--The Secretary may make monetary awards to 
     an eligible school recognized under this subsection in 
     amounts determined appropriate by the Secretary that shall be 
     used for dissemination activities within the eligible school 
     district or nationally.
       ``(4) Definition of eligible school.--In this subsection, 
     the term `eligible school' means a public middle school or 
     secondary school, including a charter school, that has 
     implemented comprehensive reforms that have been effective in 
     lowering school dropout rates for all students--
       ``(A) in that secondary school or charter school; or
       ``(B) in the case of a middle school, in the secondary 
     school that the middle school feeds students into.
       ``(c) Capacity Building.--
       ``(1) In general.--The Secretary, through a contract with 1 
     or more non-Federal entities, may conduct a capacity building 
     and design initiative in order to increase the types of 
     proven strategies for school dropout prevention and reentry 
     that address the needs of an entire school population rather 
     than a subset of students.
       ``(2) Number and duration.--
       ``(A) Number.--The Secretary may award not more than 5 
     contracts under this subsection.
       ``(B) Duration.--The Secretary may award a contract under 
     this subsection for a period of not more than 5 years.
       ``(d) Support for Existing Reform Networks.--
       ``(1) In general.--The Secretary may provide appropriate 
     support to eligible entities to enable

[[Page 25674]]

     the eligible entities to provide training, materials, 
     development, and staff assistance to schools assisted under 
     this part.
       ``(2) Definition of eligible entity.--In this subsection, 
     the term `eligible entity' means an entity that, prior to the 
     date of enactment of the Dropout Prevention Act--
       ``(A) provided training, technical assistance, and 
     materials related to school dropout prevention or reentry to 
     100 or more elementary schools or secondary schools; and
       ``(B) developed and published a specific educational 
     program or design related to school dropout prevention or 
     reentry for use by the schools.

           ``Subpart 2--School Dropout Prevention Initiative

     ``SEC. 1821. DEFINITIONS.

       ``In this subpart:
       ``(1) Low-income student.--The term `low-income student' 
     means a student who is determined by a local educational 
     agency to be from a low-income family using the measures 
     described in section 1113(c).
       ``(2) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, and the Bureau of Indian Affairs 
     for purposes of serving schools funded by the Bureau.

     ``SEC. 1822. PROGRAM AUTHORIZED.

       ``(a) Grants to State Educational Agencies and Local 
     Educational Agencies.--
       ``(1) Amount less than $75,000,000.--
       ``(A) In general.--If the amount appropriated under section 
     1803 for a fiscal year equals or is less than $75,000,000, 
     then the Secretary shall use such amount to award grants, on 
     a competitive basis, to--
       ``(i) State educational agencies to support activities--

       ``(I) in schools that--

       ``(aa) serve students in grades 6 through 12; and
       ``(bb) have annual school dropout rates that are above the 
     State average annual school dropout rate; or

       ``(II) in the middle schools that feed students into the 
     schools described in subclause (I); or

       ``(ii) local educational agencies that operate--

       ``(I) schools that--

       ``(aa) serve students in grades 6 through 12; and
       ``(bb) have annual school dropout rates that are above the 
     State average annual school dropout rate; or

       ``(II) middle schools that feed students into the schools 
     described in subclause (I).

       ``(B) Use of grant funds.--Grant funds awarded under this 
     paragraph shall be used to fund effective, sustainable, and 
     coordinated school dropout prevention and reentry programs 
     that may include the activities described in subsection 
     (b)(2), in--
       ``(i) schools serving students in grades 6 through 12 that 
     have annual school dropout rates that are above the State 
     average annual school dropout rate; or
       ``(ii) the middle schools that feed students into the 
     schools described in clause (i).
       ``(2) Amount less than $250,000,000 but more than 
     $75,000,000.--If the amount appropriated under section 1803 
     for a fiscal year is less than $250,000,000 but more than 
     $75,000,000, then the Secretary shall use such amount to 
     award grants, on a competitive basis, to State educational 
     agencies to enable the State educational agencies to award 
     subgrants under subsection (b).
       ``(3) Amount equal to or exceeds $250,000,000.--If the 
     amount appropriated under section 1803 for a fiscal year 
     equals or exceeds $250,000,000, then the Secretary shall use 
     such amount to award a grant to each State educational agency 
     in an amount that bears the same relation to such 
     appropriated amount as the amount the State educational 
     agency received under part A for the preceding fiscal year 
     bears to the amount received by all State educational 
     agencies under such part for the preceding fiscal year, to 
     enable the State educational agency to award subgrants under 
     subsection (b).
       ``(b) Subgrants to Local Educational Agencies.--
       ``(1) In general.--From amounts made available to a State 
     educational agency under paragraph (2) or (3) of subsection 
     (a), the State educational agency shall award subgrants, on a 
     competitive basis, to local educational agencies that operate 
     public schools that serve students in grades 6 through 12 and 
     that have annual school dropout rates that are above the 
     State average annual school dropout rate, to enable those 
     schools, or the middle schools that feed students into those 
     schools, to implement effective, sustainable, and coordinated 
     school dropout prevention and reentry programs that involve 
     activities such as--
       ``(A) professional development;
       ``(B) obtaining curricular materials;
       ``(C) release time for professional staff to obtain 
     professional development;
       ``(D) planning and research;
       ``(E) remedial education;
       ``(F) reduction in pupil-to-teacher ratios;
       ``(G) efforts to meet State student academic achievement 
     standards;
       ``(H) counseling and mentoring for at-risk students;
       ``(I) implementing comprehensive school reform models, such 
     as creating smaller learning communities; and
       ``(J) school reentry activities.
       ``(2) Amount.--Subject to paragraph (3), a subgrant under 
     this subpart shall be awarded--
       ``(A) in the first year that a local educational agency 
     receives a subgrant payment under this subpart, in an amount 
     that is based on factors such as--
       ``(i) the size of schools operated by the local educational 
     agency;
       ``(ii) costs of the model or set of prevention and reentry 
     strategies being implemented; and
       ``(iii) local cost factors such as poverty rates;
       ``(B) in the second year, in an amount that is not less 
     than 75 percent of the amount the local educational agency 
     received under this subpart in the first such year;
       ``(C) in the third year, in an amount that is not less than 
     50 percent of the amount the local educational agency 
     received under this subpart in the first such year; and
       ``(D) in each succeeding year, in an amount that is not 
     less than 30 percent of the amount the local educational 
     agency received under this subpart in the first year.
       ``(3) Duration.--A subgrant under this subpart shall be 
     awarded for a period of 3 years, and may be continued for a 
     period of 2 additional years if the State educational agency 
     determines, based on the annual reports described in section 
     1830(a), that significant progress has been made in lowering 
     the annual school dropout rate for secondary schools 
     participating in the program assisted under this subpart.

     ``SEC. 1823. APPLICATIONS.

       ``(a) In General.--To receive--
       ``(1) a grant under this subpart, a State educational 
     agency or local educational agency shall submit an 
     application and plan to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require; and
       ``(2) a subgrant under this subpart, a local educational 
     agency shall submit an application and plan to the State 
     educational agency at such time, in such manner, and 
     accompanied by such information as the State educational 
     agency may reasonably require.
       ``(b) Contents.--
       ``(1) State educational agency and local educational 
     agency.--Each application and plan submitted under subsection 
     (a) shall--
       ``(A) include an outline--
       ``(i) of the State educational agency's or local 
     educational agency's strategy for reducing the State 
     educational agency or local educational agency's annual 
     school dropout rate;
       ``(ii) for targeting secondary schools, and the middle 
     schools that feed students into those secondary schools, that 
     have the highest annual school dropout rates; and
       ``(iii) for assessing the effectiveness of the efforts 
     described in the plan;
       ``(B) contain an identification of the schools in the State 
     or operated by the local educational agency that have annual 
     school dropout rates that are greater than the average annual 
     school dropout rate for the State;
       ``(C) describe the instructional strategies to be 
     implemented, how the strategies will serve all students, and 
     the effectiveness of the strategies;
       ``(D) describe a budget and timeline for implementing the 
     strategies;
       ``(E) contain evidence of coordination with existing 
     resources;
       ``(F) provide an assurance that funds provided under this 
     subpart will supplement, and not supplant, other State and 
     local funds available for school dropout prevention and 
     reentry programs; and
       ``(G) describe how the activities to be assisted conform 
     with research knowledge about school dropout prevention and 
     reentry.
       ``(2) Local educational agency.--Each application and plan 
     submitted under subsection (a) by a local educational agency 
     shall contain, in addition to the requirements of paragraph 
     (1)--
       ``(A) an assurance that the local educational agency is 
     committed to providing ongoing operational support for such 
     schools to address the problem of school dropouts for a 
     period of 5 years; and
       ``(B) an assurance that the local educational agency will 
     support the plan, including--
       ``(i) provision of release time for teacher training;
       ``(ii) efforts to coordinate activities for secondary 
     schools and the middle schools that feed students into those 
     secondary schools; and
       ``(iii) encouraging other schools served by the local 
     educational agency to participate in the plan.

     ``SEC. 1824. STATE RESERVATION.

       ``A State educational agency that receives a grant under 
     paragraph (2) or (3) of section 1822(a) may reserve not more 
     than 5 percent of the grant funds for administrative costs 
     and State activities related to school dropout prevention and 
     reentry activities, of which not more than 2 percent of the 
     grant funds may be used for administrative costs.

     ``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

       ``Each local educational agency receiving a grant or 
     subgrant under this subpart and each State educational agency 
     receiving a grant under this subpart shall implement 
     scientifically based, sustainable, and widely replicated 
     strategies for school dropout prevention and reentry. The 
     strategies may include--
       ``(1) specific strategies for targeted purposes, such as--
       ``(A) effective early intervention programs designed to 
     identify at-risk students;
       ``(B) effective programs serving at-risk students, 
     including racial and ethnic minorities and pregnant and 
     parenting teenagers, designed

[[Page 25675]]

     to prevent such students from dropping out of school; and
       ``(C) effective programs to identify and encourage youth 
     who have already dropped out of school to reenter school and 
     complete their secondary education; and
       ``(2) approaches such as breaking larger schools down into 
     smaller learning communities and other comprehensive reform 
     approaches, creating alternative school programs, and 
     developing clear linkages to career skills and employment.

     ``SEC. 1826. SELECTION OF LOCAL EDUCATIONAL AGENCIES FOR 
                   SUBGRANTS.

       ``(a) State Educational Agency Review and Award.--The State 
     educational agency shall review applications submitted under 
     section 1823(a)(2) and award subgrants to local educational 
     agencies with the assistance and advice of a panel of experts 
     on school dropout prevention and reentry.
       ``(b) Eligibility.--A local educational agency is eligible 
     to receive a subgrant under this subpart if the local 
     educational agency operates a public school (including a 
     public alternative school)--
       ``(1) that is eligible to receive assistance under part A; 
     and
       ``(2)(A) that serves students 50 percent or more of whom 
     are low-income students; or
       ``(B) in which a majority of the students come from feeder 
     schools that serve students 50 percent or more of whom are 
     low-income students.

     ``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

       ``A local educational agency that receives a grant or 
     subgrant under this subpart and a State educational agency 
     that receives a grant under this subpart may use the funds to 
     secure necessary services from a community-based organization 
     or other government agency if the funds are used to provide 
     school dropout prevention and reentry activities related to 
     schoolwide efforts.

     ``SEC. 1828. TECHNICAL ASSISTANCE.

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

     ``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

       ``For purposes of calculating an annual school dropout rate 
     under this subpart, a school shall use the annual event 
     school dropout rate for students leaving a school in a single 
     year determined in accordance with the National Center for 
     Education Statistics' Common Core of Data.

     ``SEC. 1830. REPORTING AND ACCOUNTABILITY.

       ``(a) Local Educational Agency Reports.--
       ``(1) In general.--To receive funds under this subpart for 
     a fiscal year after the first fiscal year that a local 
     educational agency receives funds under this subpart, the 
     local educational agency shall provide, on an annual basis, a 
     report regarding the status of the implementation of 
     activities funded under this subpart, and the dropout data 
     for students at schools assisted under this subpart, 
     disaggregated by race and ethnicity, to the--
       ``(A) Secretary, if the local educational agency receives a 
     grant under section 1822(a)(1); or
       ``(B) State educational agency, if the local educational 
     agency receives a subgrant under paragraph (2) or (3) of 
     section 1822(a).
       ``(2) Dropout data.--The dropout data under paragraph (1) 
     shall include annual school dropout rates for each fiscal 
     year, starting with the 2 fiscal years before the local 
     educational agency received funds under this subpart.
       ``(b) State Report on Program Activities.--Each State 
     educational agency receiving funds under this subpart shall 
     provide to the Secretary, at such time and in such format as 
     the Secretary may require, information on the status of the 
     implementation of activities funded under this subpart and 
     outcome data for students in schools assisted under this 
     subpart.
       ``(c) Accountability.--The Secretary shall evaluate the 
     effect of the activities assisted under this subpart on 
     school dropout prevention compared, if feasible, to a control 
     group using control procedures. The Secretary may use funds 
     appropriated for subpart 1 to carry out this evaluation.

                      ``PART I--GENERAL PROVISIONS

     ``SEC. 1901. FEDERAL REGULATIONS.

       ``(a) In General.--The Secretary may issue such regulations 
     as are necessary to reasonably ensure that there is 
     compliance with this title.
       ``(b) Negotiated Rulemaking Process.--
       ``(1) In general.--Before publishing in the Federal 
     Register proposed regulations to carry out this title, the 
     Secretary shall obtain the advice and recommendations of 
     representatives of Federal, State, and local administrators, 
     parents, teachers, paraprofessionals, and members of local 
     school boards and other organizations involved with the 
     implementation and operation of programs under this title.
       ``(2) Meetings and electronic exchange.--Such advice and 
     recommendations may be obtained through such mechanisms as 
     regional meetings and electronic exchanges of information.
       ``(3) Proposed regulations.--After obtaining such advice 
     and recommendations, and before publishing proposed 
     regulations, the Secretary shall--
       ``(A) establish a negotiated rulemaking process on, at a 
     minimum, standards and assessments;
       ``(B) select individuals to participate in such process 
     from among individuals or groups that provided advice and 
     recommendations, including representation from all geographic 
     regions of the United States, in such numbers as will provide 
     an equitable balance between representatives of parents and 
     students and representatives of educators and education 
     officials; and
       ``(C) prepare a draft of proposed policy options that shall 
     be provided to the individuals selected by the Secretary 
     under subparagraph (B) not less than 15 days before the first 
     meeting under such process.
       ``(4) Process.--Such process--
       ``(A) shall be conducted in a timely manner to ensure that 
     final regulations are issued by the Secretary not later than 
     1 year after the date of enactment of the No Child Left 
     Behind Act of 2001; and
       ``(B) shall not be subject to the Federal Advisory 
     Committee Act, but shall otherwise follow the provisions of 
     the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
       ``(5) Emergency situation.--In an emergency situation in 
     which regulations to carry out this title must be issued 
     within a very limited time to assist State educational 
     agencies and local educational agencies with the operation of 
     a program under this title, the Secretary may issue proposed 
     regulations without following such process but shall, 
     immediately thereafter and before issuing final regulations, 
     conduct regional meetings to review such proposed 
     regulations.
       ``(c) Limitation.--Regulations to carry out this part may 
     not require local programs to follow a particular 
     instructional model, such as the provision of services 
     outside the regular classroom or school program.

     ``SEC. 1902. AGREEMENTS AND RECORDS.

       ``(a) Agreements.--All published proposed regulations shall 
     conform to agreements that result from negotiated rulemaking 
     described in section 1901 unless the Secretary reopens the 
     negotiated rulemaking process or provides a written 
     explanation to the participants involved in the process 
     explaining why the Secretary decided to depart from, and not 
     adhere to, such agreements.
       ``(b) Records.--The Secretary shall ensure that an accurate 
     and reliable record of agreements reached during the 
     negotiations process is maintained.

     ``SEC. 1903. STATE ADMINISTRATION.

       ``(a) Rulemaking.--
       ``(1) In general.--Each State that receives funds under 
     this title shall--
       ``(A) ensure that any State rules, regulations, and 
     policies relating to this title conform to the purposes of 
     this title and provide any such proposed rules, regulations, 
     and policies to the committee of practitioners created under 
     subsection (b) for review and comment;
       ``(B) minimize such rules, regulations, and policies to 
     which the State's local educational agencies and schools are 
     subject;
       ``(C) eliminate or modify State and local fiscal accounting 
     requirements in order to facilitate the ability of schools to 
     consolidate funds under schoolwide programs; and
       ``(D) identify any such rule, regulation, or policy as a 
     State-imposed requirement.
       ``(2) Support and facilitation.--State rules, regulations, 
     and policies under this title shall support and facilitate 
     local educational agency and school-level systemic reform 
     designed to enable all children to meet the challenging State 
     student academic achievement standards.
       ``(b) Committee of Practitioners.--
       ``(1) In general.--Each State educational agency that 
     receives funds under this title shall create a State 
     committee of practitioners to advise the State in carrying 
     out its responsibilities under this title.
       ``(2) Membership.--Each such committee shall include--
       ``(A) as a majority of its members, representatives from 
     local educational agencies;
       ``(B) administrators, including the administrators of 
     programs described in other parts of this title;
       ``(C) teachers, including vocational educators;
       ``(D) parents;
       ``(E) members of local school boards;
       ``(F) representatives of private school children; and
       ``(G) pupil services personnel.
       ``(3) Duties.--The duties of such committee shall include a 
     review, before publication, of any proposed or final State 
     rule or regulation pursuant to this title. In an emergency 
     situation where such rule or regulation must be issued within 
     a very limited time to assist local educational agencies with 
     the operation of the program under this title, the State 
     educational agency may issue a regulation without prior 
     consultation, but shall immediately thereafter convene the 
     State committee of practitioners to review the emergency 
     regulation before issuance in final form.

     ``SEC. 1904. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

       ``(a) Audits.--The Comptroller General of the United States 
     shall conduct audits of not less than 6 local educational 
     agencies that receive funds under part A in each fiscal year 
     to determine more clearly and specifically how local 
     educational agencies are expending such funds. Such audits--
       ``(1) shall be conducted in 6 local educational agencies 
     that represent the size, ethnic, economic, and geographic 
     diversity of local educational agencies; and
       ``(2) shall examine the extent to which funds have been 
     expended for academic instruction in the core curriculum and 
     activities unrelated to academic instruction in the core 
     curriculum,

[[Page 25676]]

     such as the payment of janitorial, utility, and other 
     maintenance services, the purchase and lease of vehicles, and 
     the payment for travel and attendance costs at conferences.
       ``(b) Report.--Not later than 3 months after the completion 
     of the audits under subsection (a) each year, the Comptroller 
     General of the United States shall submit a report on each 
     audit 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.

     ``SEC. 1905. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, 
                   OR CONTROL.

       ``Nothing in this title shall be construed to authorize an 
     officer or employee of the Federal Government to mandate, 
     direct, or control a State, local educational agency, or 
     school's specific instructional content, academic achievement 
     standards and assessments, curriculum, or program of 
     instruction.

     ``SEC. 1906. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

       ``Nothing in this title shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.

     ``SEC. 1907. STATE REPORT ON DROPOUT DATA.

       ``Not later than 1 year after a State educational agency 
     receives funds under this title, the agency shall report to 
     the Secretary and statewide, all school district data 
     regarding annual school dropout rates in the State 
     disaggregated by race and ethnicity according to procedures 
     that conform with the National Center for Education 
     Statistics' Common Core of Data.

     ``SEC. 1908. REGULATIONS FOR SECTIONS 1111 AND 1116.

       ``The Secretary shall issue regulations for sections 1111 
     and 1116 not later than 6 months after the date of enactment 
     of the No Child Left Behind Act of 2001.''.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

     SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.

       Title II (20 U.S.C. 6601 et seq.) is amended to read as 
     follows:
 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

     ``SEC. 2101. PURPOSE.

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

     ``SEC. 2102. DEFINITIONS.

       ``In this part:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers one or more academic majors in disciplines or content 
     areas corresponding to the academic subjects in which 
     teachers teach; and
       ``(B) when referring to a specific academic subject, the 
     disciplines or content areas in which an academic major is 
     offered by an organizational unit described in subparagraph 
     (A).
       ``(2) Charter school.--The term `charter school' has the 
     meaning given the term in section 5210.
       ``(3) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency--
       ``(A)(i) that serves not fewer than 10,000 children from 
     families with incomes below the poverty line; or
       ``(ii) for which not less than 20 percent of the children 
     served by the agency are from families with incomes below the 
     poverty line; and
       ``(B)(i) for which there is a high percentage of teachers 
     not teaching in the academic subjects or grade levels that 
     the teachers were trained to teach; or
       ``(ii) for which there is a high percentage of teachers 
     with emergency, provisional, or temporary certification or 
     licensing.
       ``(4) Highly qualified paraprofessional.--The term `highly 
     qualified paraprofessional' means a paraprofessional who has 
     not less than 2 years of--
       ``(A) experience in a classroom; and
       ``(B) postsecondary education or demonstrated competence in 
     a field or academic subject for which there is a significant 
     shortage of qualified teachers.
       ``(5) Out-of-field teacher.--The term `out-of-field 
     teacher' means a teacher who is teaching an academic subject 
     or a grade level for which the teacher is not highly 
     qualified.
       ``(6) Principal.--The term `principal' includes an 
     assistant principal.

     ``SEC. 2103. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) Grants to States, Local Educational Agencies, and 
     Eligible Partnerships.--There are authorized to be 
     appropriated to carry out this part (other than subpart 5) 
     $3,175,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.
       ``(b) National Programs.--There are authorized to be 
     appropriated to carry out subpart 5 such sums as may be 
     necessary for fiscal year 2002 and each of the 5 succeeding 
     fiscal years.

                     ``Subpart 1--Grants to States

     ``SEC. 2111. ALLOTMENTS TO STATES.

       ``(a) In General.--The Secretary shall make grants to 
     States with applications approved under section 2112 to pay 
     for the Federal share of the cost of carrying out the 
     activities specified in section 2113. Each grant shall 
     consist of the allotment determined for a State under 
     subsection (b).
       ``(b) Determination of Allotments.--
       ``(1) Reservation of funds.--
       ``(A) In general.--From the total amount appropriated under 
     section 2103(a) for a fiscal year, the Secretary shall 
     reserve--
       ``(i) \1/2\ of 1 percent for allotments for the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, to be 
     distributed among those outlying areas on the basis of their 
     relative need, as determined by the Secretary, in accordance 
     with the purpose of this part; and
       ``(ii) \1/2\ of 1 percent for the Secretary of the Interior 
     for programs under this part in schools operated or funded by 
     the Bureau of Indian Affairs.
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     funds appropriated under section 2103(a) for any fiscal year 
     and not reserved under paragraph (1), the Secretary shall 
     allot to each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico an amount equal to the total 
     amount that such State received for fiscal year 2001 under--

       ``(I) section 2202(b) of this Act (as in effect on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001); and
       ``(II) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).

       ``(ii) Ratable reduction.--If the funds described in clause 
     (i) are insufficient to pay the full amounts that all States 
     are eligible to receive under clause (i) for any fiscal year, 
     the Secretary shall ratably reduce those amounts for the 
     fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the funds appropriated under section 2103(a) 
     and not reserved under paragraph (1) exceed the total amount 
     required to make allotments under subparagraph (A), the 
     Secretary shall allot to each of the States described in 
     subparagraph (A) the sum of--

       ``(I) an amount that bears the same relationship to 35 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the State, as determined by the Secretary on 
     the basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined; and
       ``(II) an amount that bears the same relationship to 65 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line, in the State, as determined by the Secretary on the 
     basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined.

       ``(ii) Exception.--No State receiving an allotment under 
     clause (i) may receive less than \1/2\ of 1 percent of the 
     total excess amount allotted under such clause for a fiscal 
     year.
       ``(3) Reallotment.--If any State does not apply for an 
     allotment under this subsection for any fiscal year, the 
     Secretary shall reallot the amount of the allotment to the 
     remaining States in accordance with this subsection.

     ``SEC. 2112. STATE APPLICATIONS.

       ``(a) In General.--For a State to be eligible to receive a 
     grant under this part, the State educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall include the following:
       ``(1) A description of how the activities to be carried out 
     by the State educational agency under this subpart will be 
     based on a review of scientifically based research and an 
     explanation of why the activities are expected to improve 
     student academic achievement.
       ``(2) A description of how the State educational agency 
     will ensure that a local educational agency receiving a 
     subgrant to carry out subpart 2 will comply with the 
     requirements of such subpart.
       ``(3) A description of how the State educational agency 
     will ensure that activities assisted under this subpart are 
     aligned with challenging State academic content and student 
     academic achievement standards, State assessments, and State 
     and local curricula.
       ``(4) A description of how the State educational agency 
     will use funds under this part to improve the quality of the 
     State's teachers and principals.
       ``(5)(A) A description of how the State educational agency 
     will coordinate professional development activities 
     authorized under this part with professional development 
     activities provided under other Federal, State, and local 
     programs.
       ``(B) A description of the comprehensive strategy that the 
     State educational agency will use, as part of such 
     coordination effort, to ensure that teachers are trained in 
     the use of technology so that technology and applications of 
     technology are effectively used in the classroom

[[Page 25677]]

     to improve teaching and learning in all curricula and 
     academic subjects, as appropriate.
       ``(6) A description of how the State educational agency 
     will encourage the development of proven, innovative 
     strategies to deliver intensive professional development 
     programs that are both cost-effective and easily accessible, 
     such as strategies that involve delivery through the use of 
     technology, peer networks, and distance learning.
       ``(7)(A) A description of how the State educational agency 
     will ensure compliance with the requirements for professional 
     development activities described in section 9101 and how the 
     activities to be carried out under the grant will be 
     developed collaboratively and based on the input of teachers, 
     principals, parents, administrators, paraprofessionals, and 
     other school personnel.
       ``(B) In the case of a State in which the State educational 
     agency is not the entity responsible for teacher professional 
     standards, certification, and licensing, an assurance that 
     the State activities carried out under this subpart are 
     carried out in conjunction with the entity responsible for 
     such standards, certification, and licensing under State law.
       ``(8) A description of how the State educational agency 
     will ensure that the professional development (including 
     teacher mentoring) needs of teachers will be met using funds 
     under this subpart and subpart 2.
       ``(9) A description of the State educational agency's 
     annual measurable objectives under section 1119(a)(2).
       ``(10) A description of how the State educational agency 
     will use funds under this part to meet the teacher and 
     paraprofessional requirements of section 1119 and how the 
     State educational agency will hold local educational agencies 
     accountable for meeting the annual measurable objectives 
     described in section 1119(a)(2).
       ``(11) In the case of a State that has a charter school law 
     that exempts teachers from State certification and licensing 
     requirements, the specific portion of the State law that 
     provides for the exemption.
       ``(12) An assurance that the State educational agency will 
     comply with section 9501 (regarding participation by private 
     school children and teachers).
       ``(c) Deemed Approval.--An application submitted by a State 
     educational agency pursuant to subsection (a) shall be deemed 
     to be approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the application, that the application is not in compliance 
     with this subpart.
       ``(d) Disapproval.--The Secretary shall not finally 
     disapprove the application, except after giving the State 
     educational agency notice and an opportunity for a hearing.
       ``(e) Notification.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     this subpart, the Secretary shall--
       ``(1) give the State educational agency notice and an 
     opportunity for a hearing; and
       ``(2) notify the State educational agency of the finding of 
     noncompliance and, in such notification, shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(f) Response.--If the State educational agency responds 
     to the Secretary's notification described in subsection 
     (e)(2) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     application with the requested information described in 
     subsection (e)(2)(B), the Secretary shall approve or 
     disapprove such application prior to the later of--
       ``(1) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(2) the expiration of the 120-day period described in 
     subsection (c).
       ``(g) Failure to Respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     subsection (e)(2) during the 45-day period beginning on the 
     date on which the agency received the notification, such 
     application shall be deemed to be disapproved.

     ``SEC. 2113. STATE USE OF FUNDS.

       ``(a) In General.--A State that receives a grant under 
     section 2111 shall--
       ``(1) reserve 95 percent of the funds made available 
     through the grant to make subgrants to local educational 
     agencies as described in subpart 2;
       ``(2) reserve 2.5 percent (or, for a fiscal year described 
     in subsection (b), the percentage determined under subsection 
     (b)) of the funds to make subgrants to local partnerships as 
     described in subpart 3; and
       ``(3) use the remainder of the funds for State activities 
     described in subsection (c).
       ``(b) Special Rule.--For any fiscal year for which the 
     total amount that would be reserved by all States under 
     subsection (a)(2), if the States applied a 2.5 percentage 
     rate, exceeds $125,000,000, the Secretary shall determine an 
     alternative percentage that the States shall apply for that 
     fiscal year under subsection (a)(2) so that the total amount 
     reserved by all States under subsection (a)(2) equals 
     $125,000,000.
       ``(c) State Activities.--The State educational agency for a 
     State that receives a grant under section 2111 shall use the 
     funds described in subsection (a)(3) to carry out one or more 
     of the following activities, which may be carried out through 
     a grant or contract with a for-profit or nonprofit entity:
       ``(1) Reforming teacher and principal certification 
     (including recertification) or licensing requirements to 
     ensure that--
       ``(A)(i) teachers have the necessary subject matter 
     knowledge and teaching skills in the academic subjects that 
     the teachers teach; and
       ``(ii) principals have the instructional leadership skills 
     to help teachers teach and students learn;
       ``(B) teacher certification (including recertification) or 
     licensing requirements are aligned with challenging State 
     academic content standards; and
       ``(C) teachers have the subject matter knowledge and 
     teaching skills, including technology literacy, and 
     principals have the instructional leadership skills, 
     necessary to help students meet challenging State student 
     academic achievement standards.
       ``(2) Carrying out programs that provide support to 
     teachers or principals, including support for teachers and 
     principals new to their profession, such as programs that--
       ``(A) provide teacher mentoring, team teaching, reduced 
     class schedules, and intensive professional development; and
       ``(B) use standards or assessments for guiding beginning 
     teachers that are consistent with challenging State student 
     academic achievement standards and with the requirements for 
     professional development activities described in section 
     9101.
       ``(3) Carrying out programs that establish, expand, or 
     improve alternative routes for State certification of 
     teachers and principals, especially in the areas of 
     mathematics and science, for highly qualified individuals 
     with a baccalaureate or master's degree, including mid-career 
     professionals from other occupations, paraprofessionals, 
     former military personnel, and recent college or university 
     graduates with records of academic distinction who 
     demonstrate the potential to become highly effective teachers 
     or principals.
       ``(4) Developing and implementing mechanisms to assist 
     local educational agencies and schools in effectively 
     recruiting and retaining highly qualified teachers, including 
     specialists in core academic subjects, principals, and pupil 
     services personnel, except that funds made available under 
     this paragraph may be used for pupil services personnel 
     only--
       ``(A) if the State educational agency is making progress 
     toward meeting the annual measurable objectives described in 
     section 1119(a)(2); and
       ``(B) in a manner consistent with mechanisms to assist 
     local educational agencies and schools in effectively 
     recruiting and retaining highly qualified teachers and 
     principals.
       ``(5) Reforming tenure systems, implementing teacher 
     testing for subject matter knowledge, and implementing 
     teacher testing for State certification or licensing, 
     consistent with title II of the Higher Education Act of 1965.
       ``(6) Providing professional development for teachers and 
     principals and, in cases in which a State educational agency 
     determines support to be appropriate, supporting the 
     participation of pupil services personnel in the same type of 
     professional development activities as are made available to 
     teachers and principals.
       ``(7) Developing systems to measure the effectiveness of 
     specific professional development programs and strategies to 
     document gains in student academic achievement or increases 
     in teacher mastery of the academic subjects the teachers 
     teach.
       ``(8) Fulfilling the State educational agency's 
     responsibilities concerning proper and efficient 
     administration of the programs carried out under this part, 
     including provision of technical assistance to local 
     educational agencies.
       ``(9) Funding projects to promote reciprocity of teacher 
     and principal certification or licensing between or among 
     States, except that no reciprocity agreement developed under 
     this paragraph or developed using funds provided under this 
     part may lead to the weakening of any State teaching 
     certification or licensing requirement.
       ``(10) Developing or assisting local educational agencies 
     in the development and use of proven, innovative strategies 
     to deliver intensive professional development programs that 
     are both cost-effective and easily accessible, such as 
     strategies that involve delivery through the use of 
     technology, peer networks, and distance learning.
       ``(11) Encouraging and supporting the training of teachers 
     and administrators to effectively integrate technology into 
     curricula and instruction, including training to improve the 
     ability to collect, manage, and analyze data to improve 
     teaching, decisionmaking, school improvement efforts, and 
     accountability.
       ``(12) Developing, or assisting local educational agencies 
     in developing, merit-based performance systems, and 
     strategies that provide differential and bonus pay for 
     teachers in high-need academic subjects such as reading, 
     mathematics, and science and teachers in high-poverty schools 
     and districts.
       ``(13) Providing assistance to local educational agencies 
     for the development and implementation of professional 
     development programs for principals that enable the 
     principals to be effective school leaders and prepare all 
     students to meet challenging State academic content and 
     student academic achievement standards, and the development 
     and support of school leadership academies to help 
     exceptionally talented aspiring or current principals and 
     superintendents become outstanding managers and educational 
     leaders.

[[Page 25678]]

       ``(14) Developing, or assisting local educational agencies 
     in developing, teacher advancement initiatives that promote 
     professional growth and emphasize multiple career paths (such 
     as paths to becoming a career teacher, mentor teacher, or 
     exemplary teacher) and pay differentiation.
       ``(15) Providing assistance to teachers to enable them to 
     meet certification, licensing, or other requirements needed 
     to become highly qualified by the end of the fourth year for 
     which the State receives funds under this part (as amended by 
     the No Child Left Behind Act of 2001).
       ``(16) Supporting activities that ensure that teachers are 
     able to use challenging State academic content standards and 
     student academic achievement standards, and State 
     assessments, to improve instructional practices and improve 
     student academic achievement.
       ``(17) Funding projects and carrying out programs to 
     encourage men to become elementary school teachers.
       ``(18) Establishing and operating a center that--
       ``(A) serves as a statewide clearinghouse for the 
     recruitment and placement of kindergarten, elementary school, 
     and secondary school teachers; and
       ``(B) establishes and carries out programs to improve 
     teacher recruitment and retention within the State.
       ``(d) Administrative Costs.--A State educational agency or 
     State agency for higher education receiving a grant under 
     this part may use not more than 1 percent of the grant funds 
     for planning and administration related to carrying out 
     activities under subsection (c) and subpart 3.
       ``(e) Coordination.--A State that receives a grant to carry 
     out this subpart and a grant under section 202 of the Higher 
     Education Act of 1965 shall coordinate the activities carried 
     out under this subpart and the activities carried out under 
     that section.
       ``(f) Supplement, Not Supplant.--Funds received under this 
     subpart shall be used to supplement, and not supplant, non-
     Federal funds that would otherwise be used for activities 
     authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

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

       ``(a) Subgrants to Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under subpart 1 only if the State educational agency 
     agrees to distribute the funds described in this subsection 
     as subgrants to local educational agencies under this 
     subpart.
       ``(2) Hold harmless.--
       ``(A) In general.--From the funds reserved by a State under 
     section 2113(a)(1), the State educational agency shall 
     allocate to each local educational agency in the State an 
     amount equal to the total amount that such agency received 
     for fiscal year 2001 under--
       ``(i) section 2203(1)(B) of this Act (as in effect on the 
     day before the date of enactment of the No Child Left Behind 
     Act of 2001); and
       ``(ii) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).
       ``(B) Nonparticipating agencies.--In the case of a local 
     educational agency that did not receive any funds for fiscal 
     year 2001 under one or both of the provisions referred to in 
     clauses (i) and (ii) of subparagraph (A), the amount 
     allocated to the agency under such subparagraph shall be the 
     total amount that the agency would have received for fiscal 
     year 2001 if the agency had elected to participate in all of 
     the programs for which the agency was eligible under each of 
     the provisions referred to in those clauses.
       ``(C) Ratable reduction.--If the funds described in 
     subparagraph (A) are insufficient to pay the full amounts 
     that all local educational agencies in the State are eligible 
     to receive under subparagraph (A) for any fiscal year, the 
     State educational agency shall ratably reduce such amounts 
     for the fiscal year.
       ``(3) Allocation of additional funds.--For any fiscal year 
     for which the funds reserved by a State under section 
     2113(a)(1) exceed the total amount required to make 
     allocations under paragraph (2), the State educational agency 
     shall allocate to each of the eligible local educational 
     agencies in the State the sum of--
       ``(A) an amount that bears the same relationship to 20 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the geographic area served by the agency, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data, bears to the number of those individuals 
     in the geographic areas served by all the local educational 
     agencies in the State, as so determined; and
       ``(B) an amount that bears the same relationship to 80 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line in the geographic area served by the agency, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data, bears to the number of those individuals 
     in the geographic areas served by all the local educational 
     agencies in the State, as so determined.

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

       ``(a) In General.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall submit 
     an application to the State educational agency at such time, 
     in such manner, and containing such information as the State 
     educational agency may reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall be based on the needs assessment required in 
     subsection (c) and shall include the following:
       ``(1)(A) A description of the activities to be carried out 
     by the local educational agency under this subpart and how 
     these activities will be aligned with--
       ``(i) challenging State academic content standards and 
     student academic achievement standards, and State 
     assessments; and
       ``(ii) the curricula and programs tied to the standards 
     described in clause (i).
       ``(B) A description of how the activities will be based on 
     a review of scientifically based research and an explanation 
     of why the activities are expected to improve student 
     academic achievement.
       ``(2) A description of how the activities will have a 
     substantial, measurable, and positive impact on student 
     academic achievement and how the activities will be used as 
     part of a broader strategy to eliminate the achievement gap 
     that separates low-income and minority students from other 
     students.
       ``(3) An assurance that the local educational agency will 
     target funds to schools within the jurisdiction of the local 
     educational agency that--
       ``(A) have the lowest proportion of highly qualified 
     teachers;
       ``(B) have the largest average class size; or
       ``(C) are identified for school improvement under section 
     1116(b).
       ``(4) A description of how the local educational agency 
     will coordinate professional development activities 
     authorized under this subpart with professional development 
     activities provided through other Federal, State, and local 
     programs.
       ``(5) A description of the professional development 
     activities that will be made available to teachers and 
     principals under this subpart and how the local educational 
     agency will ensure that the professional development (which 
     may include teacher mentoring) needs of teachers and 
     principals will be met using funds under this subpart.
       ``(6) A description of how the local educational agency 
     will integrate funds under this subpart with funds received 
     under part D that are used for professional development to 
     train teachers to integrate technology into curricula and 
     instruction to improve teaching, learning, and technology 
     literacy.
       ``(7) A description of how the local educational agency, 
     teachers, paraprofessionals, principals, other relevant 
     school personnel, and parents have collaborated in the 
     planning of activities to be carried out under this subpart 
     and in the preparation of the application.
       ``(8) A description of the results of the needs assessment 
     described in subsection (c).
       ``(9) A description of how the local educational agency 
     will provide training to enable teachers to--
       ``(A) teach and address the needs of students with 
     different learning styles, particularly students with 
     disabilities, students with special learning needs (including 
     students who are gifted and talented), and students with 
     limited English proficiency;
       ``(B) improve student behavior in the classroom and 
     identify early and appropriate interventions to help students 
     described in subparagraph (A) learn;
       ``(C) involve parents in their child's education; and
       ``(D) understand and use data and assessments to improve 
     classroom practice and student learning.
       ``(10) A description of how the local educational agency 
     will use funds under this subpart to meet the requirements of 
     section 1119.
       ``(11) An assurance that the local educational agency will 
     comply with section 9501 (regarding participation by private 
     school children and teachers).
       ``(c) Needs Assessment.--
       ``(1) In general.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall conduct 
     an assessment of local needs for professional development and 
     hiring, as identified by the local educational agency and 
     school staff.
       ``(2) Requirements.--Such needs assessment shall be 
     conducted with the involvement of teachers, including 
     teachers participating in programs under part A of title I, 
     and shall take into account the activities that need to be 
     conducted in order to give teachers the means, including 
     subject matter knowledge and teaching skills, and to give 
     principals the instructional leadership skills to help 
     teachers, to provide students with the opportunity to meet 
     challenging State and local student academic achievement 
     standards.

     ``SEC. 2123. LOCAL USE OF FUNDS.

       ``(a) In General.--A local educational agency that receives 
     a subgrant under section 2121 shall use the funds made 
     available through the subgrant to carry out one or more of 
     the following activities, including carrying out the 
     activities through a grant or contract with a for-profit or 
     nonprofit entity:
       ``(1) Developing and implementing mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers, including specialists in core academic 
     subjects, principals, and pupil services personnel, except 
     that funds made available under this paragraph may be used 
     for pupil services personnel only--
       ``(A) if the local educational agency is making progress 
     toward meeting the annual measurable objectives described in 
     section 1119(a)(2); and

[[Page 25679]]

       ``(B) in a manner consistent with mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers and principals.
       ``(2) Developing and implementing initiatives to assist in 
     recruiting highly qualified teachers (particularly 
     initiatives that have proven effective in retaining highly 
     qualified teachers), and hiring highly qualified teachers, 
     who will be assigned teaching positions within their fields, 
     including--
       ``(A) providing scholarships, signing bonuses, or other 
     financial incentives, such as differential pay, for teachers 
     to teach--
       ``(i) in academic subjects in which there exists a shortage 
     of highly qualified teachers within a school or within the 
     local educational agency; and
       ``(ii) in schools in which there exists a shortage of 
     highly qualified teachers;
       ``(B) recruiting and hiring highly qualified teachers to 
     reduce class size, particularly in the early grades; and
       ``(C) establishing programs that--
       ``(i) train and hire regular and special education teachers 
     (which may include hiring special education teachers to team-
     teach in classrooms that contain both children with 
     disabilities and nondisabled children);
       ``(ii) train and hire highly qualified teachers of special 
     needs children, as well as teaching specialists in core 
     academic subjects who will provide increased individualized 
     instruction to students;
       ``(iii) recruit qualified professionals from other fields, 
     including highly qualified paraprofessionals, and provide 
     such professionals with alternative routes to teacher 
     certification, including developing and implementing hiring 
     policies that ensure comprehensive recruitment efforts as a 
     way to expand the applicant pool, such as through identifying 
     teachers certified through alternative routes, and using a 
     system of intensive screening designed to hire the most 
     qualified applicants; and
       ``(iv) provide increased opportunities for minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching profession.
       ``(3) Providing professional development activities--
       ``(A) that improve the knowledge of teachers and principals 
     and, in appropriate cases, paraprofessionals, concerning--
       ``(i) one or more of the core academic subjects that the 
     teachers teach; and
       ``(ii) effective instructional strategies, methods, and 
     skills, and use of challenging State academic content 
     standards and student academic achievement standards, and 
     State assessments, to improve teaching practices and student 
     academic achievement; and
       ``(B) that improve the knowledge of teachers and principals 
     and, in appropriate cases, paraprofessionals, concerning 
     effective instructional practices and that--
       ``(i) involve collaborative groups of teachers and 
     administrators;
       ``(ii) provide training in how to teach and address the 
     needs of students with different learning styles, 
     particularly students with disabilities, students with 
     special learning needs (including students who are gifted and 
     talented), and students with limited English proficiency;
       ``(iii) provide training in methods of--

       ``(I) improving student behavior in the classroom; and

       ``(II) identifying early and appropriate interventions to 
     help students described in clause (ii) learn;

       ``(iv) provide training to enable teachers and principals 
     to involve parents in their child's education, especially 
     parents of limited English proficient and immigrant children; 
     and
       ``(v) provide training on how to understand and use data 
     and assessments to improve classroom practice and student 
     learning.
       ``(4) Developing and implementing initiatives to promote 
     retention of highly qualified teachers and principals, 
     particularly within elementary schools and secondary schools 
     with a high percentage of low-achieving students, including 
     programs that provide--
       ``(A) teacher mentoring from exemplary teachers, 
     principals, or superintendents;
       ``(B) induction and support for teachers and principals 
     during their first 3 years of employment as teachers or 
     principals, respectively;
       ``(C) incentives, including financial incentives, to retain 
     teachers who have a record of success in helping low-
     achieving students improve their academic achievement; or
       ``(D) incentives, including financial incentives, to 
     principals who have a record of improving the academic 
     achievement of all students, but particularly students from 
     economically disadvantaged families, students from racial and 
     ethnic minority groups, and students with disabilities.
       ``(5) Carrying out programs and activities that are 
     designed to improve the quality of the teacher force, such 
     as--
       ``(A) innovative professional development programs (which 
     may be provided through partnerships including institutions 
     of higher education), including programs that train teachers 
     and principals to integrate technology into curricula and 
     instruction to improve teaching, learning, and technology 
     literacy, are consistent with the requirements of section 
     9101, and are coordinated with activities carried out under 
     part D;
       ``(B) development and use of proven, cost-effective 
     strategies for the implementation of professional development 
     activities, such as through the use of technology and 
     distance learning;
       ``(C) tenure reform;
       ``(D) merit pay programs; and
       ``(E) testing of elementary school and secondary school 
     teachers in the academic subjects that the teachers teach.
       ``(6) Carrying out professional development activities 
     designed to improve the quality of principals and 
     superintendents, including the development and support of 
     academies to help talented aspiring or current principals and 
     superintendents become outstanding managers and educational 
     leaders.
       ``(7) Hiring highly qualified teachers, including teachers 
     who become highly qualified through State and local 
     alternative routes to certification, and special education 
     teachers, in order to reduce class size, particularly in the 
     early grades.
       ``(8) Carrying out teacher advancement initiatives that 
     promote professional growth and emphasize multiple career 
     paths (such as paths to becoming a career teacher, mentor 
     teacher, or exemplary teacher) and pay differentiation.
       ``(10) Carrying out programs and activities related to 
     exemplary teachers.
       ``(b) Supplement, Not Supplant.--Funds received under this 
     subpart shall be used to supplement, and not supplant, non-
     Federal funds that would otherwise be used for activities 
     authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

     ``SEC. 2131. DEFINITIONS.

       ``In this subpart:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means an entity that--
       ``(A) shall include--
       ``(i) a private or State institution of higher education 
     and the division of the institution that prepares teachers 
     and principals;
       ``(ii) a school of arts and sciences; and
       ``(iii) a high-need local educational agency; and
       ``(B) may include another local educational agency, a 
     public charter school, an elementary school or secondary 
     school, an educational service agency, a nonprofit 
     educational organization, another institution of higher 
     education, a school of arts and sciences within such an 
     institution, the division of such an institution that 
     prepares teachers and principals, a nonprofit cultural 
     organization, an entity carrying out a prekindergarten 
     program, a teacher organization, a principal organization, or 
     a business.
       ``(2) Low-performing school.--The term `low-performing 
     school' means an elementary school or secondary school that 
     is identified under section 1116.

     ``SEC. 2132. SUBGRANTS.

       ``(a) In General.--The State agency for higher education 
     for a State that receives a grant under section 2111, working 
     in conjunction with the State educational agency (if such 
     agencies are separate), shall use the funds reserved under 
     section 2113(a)(2) to make subgrants, on a competitive basis, 
     to eligible partnerships to enable such partnerships to carry 
     out the activities described in section 2134.
       ``(b) Distribution.--The State agency for higher education 
     shall ensure that--
       ``(1) such subgrants are equitably distributed by 
     geographic area within a State; or
       ``(2) eligible partnerships in all geographic areas within 
     the State are served through the subgrants.
       ``(c) Special Rule.--No single participant in an eligible 
     partnership may use more than 50 percent of the funds made 
     available to the partnership under this section.

     ``SEC. 2133. APPLICATIONS.

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

     ``SEC. 2134. USE OF FUNDS.

       ``(a) In General.--An eligible partnership that receives a 
     subgrant under section 2132 shall use the subgrant funds 
     for--
       ``(1) professional development activities in core academic 
     subjects to ensure that--
       ``(A) teachers and highly qualified paraprofessionals, and, 
     if appropriate, principals have subject matter knowledge in 
     the academic subjects that the teachers teach, including the 
     use of computer related technology to enhance student 
     learning; and
       ``(B) principals have the instructional leadership skills 
     that will help such principals work most effectively with 
     teachers to help students master core academic subjects; and
       ``(2) developing and providing assistance to local 
     educational agencies and individuals who are teachers, highly 
     qualified paraprofessionals, or principals of schools served 
     by such agencies, for sustained, high-quality professional 
     development activities that--
       ``(A) ensure that the individuals are able to use 
     challenging State academic content standards and student 
     academic achievement standards, and State assessments, to 
     improve instructional practices and improve student academic 
     achievement;
       ``(B) may include intensive programs designed to prepare 
     such individuals who will return to a school to provide 
     instruction related to the professional development described 
     in subparagraph (A) to other such individuals within such 
     school; and
       ``(C) may include activities of partnerships between one or 
     more local educational agencies, one or more schools served 
     by such local educational agencies, and one or more 
     institutions of higher education for the purpose of improving 
     teaching and learning at low-performing schools.
       ``(b) Coordination.--An eligible partnership that receives 
     a subgrant to carry out this subpart and a grant under 
     section 203 of the Higher

[[Page 25680]]

     Education Act of 1965 shall coordinate the activities carried 
     out under this subpart and the activities carried out under 
     that section 203.

                      ``Subpart 4--Accountability

     ``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

       ``(a) Improvement Plan.--After the second year of the plan 
     described in section 1119(a)(2), if a State educational 
     agency determines, based on the reports described in section 
     1119(b)(1), that a local educational agency in the State has 
     failed to make progress toward meeting the annual measurable 
     objectives described in section 1119(a)(2), for 2 consecutive 
     years, such local educational agency shall develop an 
     improvement plan that will enable the agency to meet such 
     annual measurable objectives and that specifically addresses 
     issues that prevented the agency from meeting such annual 
     measurable objectives.
       ``(b) Technical Assistance.--During the development of the 
     improvement plan described in subsection (a) and throughout 
     implementation of the plan, the State educational agency 
     shall--
       ``(1) provide technical assistance to the local educational 
     agency; and
       ``(2) provide technical assistance, if applicable, to 
     schools served by the local educational agency that need 
     assistance to enable the local educational agency to meet the 
     annual measurable objectives described in section 1119(a)(2).
       ``(c) Accountability.--After the third year of the plan 
     described in section 1119(a)(2), if the State educational 
     agency determines, based on the reports described in section 
     1119(b)(1), that the local educational agency has failed to 
     make progress toward meeting the annual measurable objectives 
     described in section 1119(a)(2), and has failed to make 
     adequate yearly progress as described under section 
     1111(b)(2)(B), for 3 consecutive years, the State educational 
     agency shall enter into an agreement with such local 
     educational agency on the use of that agency's funds under 
     this part. As part of this agreement, the State educational 
     agency--
       ``(1) shall develop, in conjunction with the local 
     educational agency, teachers, and principals, professional 
     development strategies and activities, based on 
     scientifically based research, that the local educational 
     agency will use to meet the annual measurable objectives 
     described in section 1119(a)(2) and require such agency to 
     utilize such strategies and activities; and
       ``(2)(A) except as provided in subparagraphs (B) and (C), 
     shall prohibit the use of funds received under part A of 
     title I to fund any paraprofessional hired after the date 
     such determination is made;
       ``(B) shall allow the use of such funds to fund a 
     paraprofessional hired after that date if the local 
     educational agency can demonstrate that the hiring is to fill 
     a vacancy created by the departure of another 
     paraprofessional funded under title I and such new 
     paraprofessional satisfies the requirements of section 
     1119(c); and
       ``(C) may allow the use of such funds to fund a 
     paraprofessional hired after that date if the local 
     educational agency can demonstrate--
       ``(i) that a significant influx of population has 
     substantially increased student enrollment; or
       ``(ii) that there is an increased need for translators or 
     assistance with parental involvement activities.
       ``(d) Special Rule.--During the development of the 
     strategies and activities described in subsection (c)(1), the 
     State educational agency shall, in conjunction with the local 
     educational agency, provide from funds allocated to such 
     local educational agency under subpart 2 directly to one or 
     more schools served by such local educational agency, to 
     enable teachers at the schools to choose, with continuing 
     consultation with the principal involved, professional 
     development activities that--
       ``(1) meet the requirements for professional development 
     activities described in section 9101; and
       ``(2) are coordinated with other reform efforts at the 
     schools.

                    ``Subpart 5--National Activities

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

       ``(a) National Teacher Recruitment Campaign.--The Secretary 
     is authorized to establish and carry out a national teacher 
     recruitment campaign, which may include activities carried 
     out through the National Teacher Recruitment Clearinghouse, 
     to assist high-need local educational agencies in recruiting 
     teachers (particularly those activities that are effective in 
     retaining new teachers) and training teachers and to conduct 
     a national public service campaign concerning the resources 
     for, and the routes to, entering the field of teaching. In 
     carrying out the campaign, the Secretary may promote and link 
     the activities of the campaign to the information and 
     referral activities of the National Teacher Recruitment 
     Clearinghouse. The Secretary shall coordinate activities 
     under this subsection with State and regional recruitment 
     activities.
       ``(b) School Leadership.--
       ``(1) In general.--The Secretary is authorized to establish 
     and carry out a national principal recruitment program to 
     assist high-need local educational agencies in recruiting and 
     training principals (including assistant principals) through 
     such activities as--
       ``(A) providing financial incentives to aspiring new 
     principals;
       ``(B) providing stipends to principals who mentor new 
     principals;
       ``(C) carrying out professional development programs in 
     instructional leadership and management; and
       ``(D) providing incentives that are appropriate for 
     teachers or individuals from other fields who want to become 
     principals and that are effective in retaining new 
     principals.
       ``(2) Grants.--If the Secretary uses sums made available 
     under section 2103(b) to carry out paragraph (1), the 
     Secretary shall carry out such paragraph by making grants, on 
     a competitive basis, to--
       ``(A) high-need local educational agencies;
       ``(B) consortia of high-need local educational agencies; 
     and
       ``(C) partnerships of high-need local educational agencies, 
     nonprofit organizations, and institutions of higher 
     education.
       ``(c) Advanced Certification or Advanced Credentialing.--
       ``(1) In general.--The Secretary is authorized to support 
     activities to encourage and support teachers seeking advanced 
     certification or advanced credentialing through high quality 
     professional teacher enhancement programs designed to improve 
     teaching and learning.
       ``(2) Implementation.--In carrying out paragraph (1), the 
     Secretary shall make grants to eligible entities to--
       ``(A) develop teacher standards that include measures tied 
     to increased student academic achievement; and
       ``(B) promote outreach, teacher recruitment, teacher 
     subsidy, or teacher support programs, related to teacher 
     certification or credentialing by the National Board for 
     Professional Teaching Standards, the National Council on 
     Teacher Quality, or other nationally recognized certification 
     or credentialing organizations.
       ``(3) Eligible entities.--In this subsection, the term 
     `eligible entity' includes--
       ``(A) a State educational agency;
       ``(B) a local educational agency;
       ``(C) the National Board for Professional Teaching 
     Standards, in partnership with a high-need local educational 
     agency or a State educational agency;
       ``(D) the National Council on Teacher Quality, in 
     partnership with a high-need local educational agency or a 
     State educational agency; or
       ``(E) another recognized entity, including another 
     recognized certification or credentialing organization, in 
     partnership with a high-need local educational agency or a 
     State educational agency.
       ``(d) Special Education Teacher Training.--The Secretary is 
     authorized to award a grant to the University of Northern 
     Colorado to enable such university to provide, to other 
     institutions of higher education, assistance in training 
     special education teachers.
       ``(e) Early Childhood Educator Professional Development.--
       ``(1) Purpose.--The purpose of this subsection is to 
     enhance the school readiness of young children, particularly 
     disadvantaged young children, and to prevent young children 
     from encountering difficulties once the children enter 
     school, by improving the knowledge and skills of early 
     childhood educators who work in communities that have high 
     concentrations of children living in poverty.
       ``(2) Program authorized.--
       ``(A) Grants to partnerships.--The Secretary is authorized 
     to carry out the purpose of this subsection by awarding 
     grants, on a competitive basis, to partnerships consisting 
     of--
       ``(i)(I) one or more institutions of higher education that 
     provide professional development for early childhood 
     educators who work with children from low-income families in 
     high-need communities; or
       ``(II) another public or private entity that provides such 
     professional development;
       ``(ii) one or more public agencies (including local 
     educational agencies, State educational agencies, State human 
     services agencies, and State and local agencies administering 
     programs under the Child Care and Development Block Grant Act 
     of 1990 (42 U.S.C. 9858 et seq.), Head Start agencies, or 
     private organizations; and
       ``(iii) to the extent feasible, an entity with demonstrated 
     experience in providing training to educators in early 
     childhood education programs concerning identifying and 
     preventing behavior problems or working with children 
     identified as or suspected to be victims of abuse.
       ``(B) Duration and number of grants.--
       ``(i) Duration.--The Secretary shall award grants under 
     this subsection for periods of not more than 4 years.
       ``(ii) Number.--No partnership may receive more than one 
     grant under this subsection.
       ``(3) Applications.--
       ``(A) Applications required.--Any partnership that desires 
     to receive a grant under this subsection shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(B) Contents.--Each such application shall include--
       ``(i) a description of the high-need community to be served 
     by the project proposed to be carried out through the grant, 
     including such demographic and socioeconomic information as 
     the Secretary may request;
       ``(ii) information on the quality of the early childhood 
     educator professional development program currently conducted 
     (as of the date of the submission of the application) by the 
     institution of higher education or another provider in the 
     partnership;
       ``(iii) the results of a needs assessment that the entities 
     in the partnership have undertaken to determine the most 
     critical professional development needs of the early 
     childhood educators to be served by the partnership and in 
     the

[[Page 25681]]

     broader community, and a description of how the proposed 
     project will address those needs;
       ``(iv) a description of how the proposed project will be 
     carried out, including a description of--

       ``(I) how individuals will be selected to participate;
       ``(II) the types of professional development activities, 
     based on scientifically based research, that will be carried 
     out;
       ``(III) how research on effective professional development 
     and on adult learning will be used to design and deliver 
     project activities;
       ``(IV) how the project will be coordinated with and build 
     on, and will not supplant or duplicate, early childhood 
     education professional development activities in the high-
     need community;
       ``(V) how the project will train early childhood educators 
     to provide developmentally appropriate school-readiness 
     services that are based on the best available research on 
     early childhood pedagogy and child development and learning 
     domains;
       ``(VI) how the project will train early childhood educators 
     to meet the diverse educational needs of children in the 
     community, including children who have limited English 
     proficiency, children with disabilities, or children with 
     other special needs; and
       ``(VII) how the project will train early childhood 
     educators in identifying and preventing behavioral problems 
     in children or working with children identified as or 
     suspected to be victims of abuse;

       ``(v) a description of--

       ``(I) the specific objectives that the partnership will 
     seek to attain through the project, and the methods that the 
     partnership will use to measure progress toward attainment of 
     those objectives; and
       ``(II) how the objectives and the measurement methods align 
     with the achievement indicators established by the Secretary 
     under paragraph (6)(A);

       ``(vi) a description of the partnership's plan for 
     continuing the activities carried out under the project after 
     Federal funding ceases;
       ``(vii) an assurance that, where applicable, the project 
     will provide appropriate professional development to 
     volunteers working directly with young children, as well as 
     to paid staff; and
       ``(viii) an assurance that, in developing the application 
     and in carrying out the project, the partnership has 
     consulted with, and will consult with, relevant agencies, 
     early childhood educator organizations, and early childhood 
     providers that are not members of the partnership.
       ``(4) Selection of grant recipients.--
       ``(A) Criteria.--The Secretary shall select partnerships to 
     receive grants under this subsection on the basis of the 
     degree to which the communities proposed to be served require 
     assistance and the quality of the applications submitted 
     under paragraph (3).
       ``(B) Geographic distribution.--In selecting partnerships 
     to receive grants under this subsection, the Secretary shall 
     seek to ensure that communities in different regions of the 
     Nation, as well as both urban and rural communities, are 
     served.
       ``(5) Uses of funds.--
       ``(A) In general.--Each partnership receiving a grant under 
     this subsection shall use the grant funds to carry out 
     activities that will improve the knowledge and skills of 
     early childhood educators who are working in early childhood 
     programs that are located in high-need communities and serve 
     concentrations of children from low-income families.
       ``(B) Allowable activities.--Such activities may include--
       ``(i) professional development for early childhood 
     educators, particularly to familiarize those educators with 
     the application of recent research on child, language, and 
     literacy development and on early childhood pedagogy;
       ``(ii) professional development for early childhood 
     educators in working with parents, so that the educators and 
     parents can work together to provide and support 
     developmentally appropriate school-readiness services that 
     are based on scientifically based research on early childhood 
     pedagogy and child development and learning domains;
       ``(iii) professional development for early childhood 
     educators to work with children who have limited English 
     proficiency, children with disabilities, and children with 
     other special needs;
       ``(iv) professional development to train early childhood 
     educators in identifying and preventing behavioral problems 
     in children or working with children identified as or 
     suspected to be victims of abuse;
       ``(v) activities that assist and support early childhood 
     educators during their first 3 years in the field;
       ``(vi) development and implementation of early childhood 
     educator professional development programs that make use of 
     distance learning and other technologies;
       ``(vii) professional development activities related to the 
     selection and use of screening and diagnostic assessments to 
     improve teaching and learning; and
       ``(viii) data collection, evaluation, and reporting needed 
     to meet the requirements of paragraph (6) relating to 
     accountability.
       ``(6) Accountability.--
       ``(A) Achievement indicators.--On the date on which the 
     Secretary first issues a notice soliciting applications for 
     grants under this subsection, the Secretary shall announce 
     achievement indicators for this subsection, which shall be 
     designed--
       ``(i) to measure the quality and accessibility of the 
     professional development provided;
       ``(ii) to measure the impact of that professional 
     development on the early childhood education provided by the 
     individuals who receive the professional development; and
       ``(iii) to provide such other measures of program impact as 
     the Secretary determines to be appropriate.
       ``(B) Annual reports; termination.--
       ``(i) Annual reports.--Each partnership receiving a grant 
     under this subsection shall report annually to the Secretary 
     on the partnership's progress toward attaining the 
     achievement indicators.
       ``(ii) Termination.--The Secretary may terminate a grant 
     under this subsection at any time if the Secretary determines 
     that the partnership receiving the grant is not making 
     satisfactory progress toward attaining the achievement 
     indicators.
       ``(7) Cost-sharing.--
       ``(A) In general.--Each partnership carrying out a project 
     through a grant awarded under this subsection shall provide, 
     from sources other than the program carried out under this 
     subsection, which may include Federal sources--
       ``(i) at least 50 percent of the total cost of the project 
     for the grant period; and
       ``(ii) at least 20 percent of the project cost for each 
     year.
       ``(B) Acceptable contributions.--A partnership may meet the 
     requirements of subparagraph (A) by providing contributions 
     in cash or in kind, fairly evaluated, including plant, 
     equipment, and services.
       ``(C) Waivers.--The Secretary may waive or modify the 
     requirements of subparagraph (A) for partnerships in cases of 
     demonstrated financial hardship.
       ``(8) Federal coordination.--The Secretary and the 
     Secretary of Health and Human Services shall coordinate 
     activities carried out through programs under this subsection 
     with activities carried out through other early childhood 
     programs administered by the Secretary or the Secretary of 
     Health and Human Services.
       ``(9) Definitions.--In this subsection:
       ``(A) Early childhood educator.--The term `early childhood 
     educator' means a person providing, or employed by a provider 
     of, nonresidential child care services (including center-
     based, family-based, and in-home child care services) that is 
     legally operating under State law, and that complies with 
     applicable State and local requirements for the provision of 
     child care services to children at any age from birth through 
     the age at which a child may start kindergarten in that 
     State.
       ``(B) High-need community.--
       ``(i) In general.--The term `high-need community' means--

       ``(I) a political subdivision of a State, or a portion of a 
     political subdivision of a State, in which at least 50 
     percent of the children are from low-income families; or
       ``(II) a political subdivision of a State that is among the 
     10 percent of political subdivisions of the State having the 
     greatest numbers of such children.

       ``(ii) Determination.--In determining which communities are 
     described in clause (i), the Secretary shall use such data as 
     the Secretary determines are most accurate and appropriate.
       ``(C) Low-income family.--The term `low-income family' 
     means a family with an income below the poverty line for the 
     most recent fiscal year for which satisfactory data are 
     available.
       ``(f) Teacher Mobility.--
       ``(1) Establishment.--The Secretary is authorized to 
     establish a panel to be known as the National Panel on 
     Teacher Mobility (referred to in this subsection as the 
     `panel').
       ``(2) Membership.--The panel shall be composed of 12 
     members appointed by the Secretary. The Secretary shall 
     appoint the members from among practitioners and experts with 
     experience relating to teacher mobility, such as teachers, 
     members of teacher certification or licensing bodies, faculty 
     of institutions of higher education that prepare teachers, 
     and State policymakers with such experience.
       ``(3) Period of appointment; vacancies.--Members shall be 
     appointed for the life of the panel. Any vacancy in the panel 
     shall not affect the powers of the panel, but shall be filled 
     in the same manner as the original appointment.
       ``(4) Duties.--
       ``(A) Study.--
       ``(i) In general.--The panel shall study strategies for 
     increasing mobility and employment opportunities for highly 
     qualified teachers, especially for States with teacher 
     shortages and States with school districts or schools that 
     are difficult to staff.
       ``(ii) Data and analysis.--As part of the study, the panel 
     shall evaluate the desirability and feasibility of State 
     initiatives that support teacher mobility by collecting data 
     and conducting effective analysis concerning--

       ``(I) teacher supply and demand;
       ``(II) the development of recruitment and hiring strategies 
     that support teachers; and
       ``(III) increasing reciprocity of certification and 
     licensing across States.

       ``(B) Report.--Not later than 1 year after the date on 
     which all members of the panel have been appointed, the panel 
     shall submit to the Secretary and to the appropriate 
     committees of Congress a report containing the results of the 
     study.
       ``(5) Powers.--
       ``(A) Hearings.--The panel may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the panel considers advisable to 
     carry out the objectives of this subsection.
       ``(B) Information from federal agencies.--The panel may 
     secure directly from any Federal

[[Page 25682]]

     department or agency such information as the panel considers 
     necessary to carry out the provisions of this subsection. 
     Upon request of a majority of the members of the panel, the 
     head of such department or agency shall furnish such 
     information to the panel.
       ``(C) Postal services.--The panel may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       ``(6) Personnel.--
       ``(A) Travel expenses.--The members of the panel shall not 
     receive compensation for the performance of services for the 
     panel, but shall be allowed travel expenses, including per 
     diem in lieu of subsistence, at rates authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5, United States Code, while away from their homes or 
     regular places of business in the performance of services for 
     the panel. Notwithstanding section 1342 of title 31, United 
     States Code, the Secretary may accept the voluntary and 
     uncompensated services of members of the panel.
       ``(B) Detail of government employees.--Any Federal 
     Government employee may be detailed to the panel without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       ``(7) Permanent committee.--Section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
     panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

     ``SEC. 2201. PURPOSE; DEFINITIONS.

       ``(a) Purpose.--The purpose of this part is to improve the 
     academic achievement of students in the areas of mathematics 
     and science by encouraging State educational agencies, 
     institutions of higher education, local educational agencies, 
     elementary schools, and secondary schools to participate in 
     programs that--
       ``(1) improve and upgrade the status and stature of 
     mathematics and science teaching by encouraging institutions 
     of higher education to assume greater responsibility for 
     improving mathematics and science teacher education through 
     the establishment of a comprehensive, integrated system of 
     recruiting, training, and advising mathematics and science 
     teachers;
       ``(2) focus on the education of mathematics and science 
     teachers as a career-long process that continuously 
     stimulates teachers' intellectual growth and upgrades 
     teachers' knowledge and skills;
       ``(3) bring mathematics and science teachers in elementary 
     schools and secondary schools together with scientists, 
     mathematicians, and engineers to increase the subject matter 
     knowledge of mathematics and science teachers and improve 
     such teachers' teaching skills through the use of 
     sophisticated laboratory equipment and work space, computing 
     facilities, libraries, and other resources that institutions 
     of higher education are better able to provide than the 
     elementary schools and secondary schools;
       ``(4) develop more rigorous mathematics and science 
     curricula that are aligned with challenging State and local 
     academic content standards and with the standards expected 
     for postsecondary study in engineering, mathematics, and 
     science; and
       ``(5) improve and expand training of mathematics and 
     science teachers, including training such teachers in the 
     effective integration of technology into curricula and 
     instruction.
       ``(b) Definitions.--In this part:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means a partnership that--
       ``(A) shall include--
       ``(i) if grants are awarded under section 2202(a)(1), a 
     State educational agency;
       ``(ii) an engineering, mathematics, or science department 
     of an institution of higher education; and
       ``(iii) a high-need local educational agency; and
       ``(B) may include--
       ``(i) another engineering, mathematics, science, or teacher 
     training department of an institution of higher education;
       ``(ii) additional local educational agencies, public 
     charter schools, public or private elementary schools or 
     secondary schools, or a consortium of such schools;
       ``(iii) a business; or
       ``(iv) a nonprofit or for-profit organization of 
     demonstrated effectiveness in improving the quality of 
     mathematics and science teachers.
       ``(2) Summer workshop or institute.--The term `summer 
     workshop or institute' means a workshop or institute, 
     conducted during the summer, that--
       ``(A) is conducted for a period of not less than 2 weeks;
       ``(B) includes, as a component, a program that provides 
     direct interaction between students and faculty; and
       ``(C) provides for followup training during the academic 
     year that is conducted in the classroom for a period of not 
     less than 3 consecutive or nonconsecutive days, except that--
       ``(i) if the workshop or institute is conducted during a 2-
     week period, the followup training shall be conducted for a 
     period of not less than 4 days; and
       ``(ii) if the followup training is for teachers in rural 
     school districts, the followup training may be conducted 
     through distance learning.

     ``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS.

       ``(a) Grants Authorized.--
       ``(1) Grants to partnerships.--For any fiscal year for 
     which the funds appropriated under section 2203 are less than 
     $100,000,000, the Secretary is authorized to award grants, on 
     a competitive basis, to eligible partnerships to carry out 
     the authorized activities described in subsection (c).
       ``(2) Grants to state educational agencies.--
       ``(A) In general.--For any fiscal year for which the funds 
     appropriated under section 2203 equal or exceed 
     $100,000,000--
       ``(i) if an eligible partnership in the State was 
     previously awarded a grant under paragraph (1), and the grant 
     period has not ended, the Secretary shall reserve funds in a 
     sufficient amount to make payments to the partnership in 
     accordance with the terms of the grant; and
       ``(ii) the Secretary is authorized to award grants to State 
     educational agencies to enable such agencies to award 
     subgrants, on a competitive basis, to eligible partnerships 
     to carry out the authorized activities described in 
     subsection (c).
       ``(B) Allotment.--The Secretary shall allot the amount made 
     available under this part for a fiscal year and not reserved 
     under subparagraph (A)(i) among the State educational 
     agencies in proportion to the number of children, aged 5 to 
     17, who are from families with incomes below the poverty line 
     and reside in a State for the most recent fiscal year for 
     which satisfactory data are available, as compared to the 
     number of such children who reside in all such States for 
     such year.
       ``(C) Minimum allotment.--The amount of any State 
     educational agency's allotment under subparagraph (B) for any 
     fiscal year may not be less than \1/2\ of 1 percent of the 
     amount made available under this part for such year.
       ``(3) Duration.--The Secretary shall award grants under 
     this part for a period of 3 years.
       ``(4) Supplement, not supplant.--Funds received under this 
     part shall be used to supplement, and not supplant, funds 
     that would otherwise be used for activities authorized under 
     this part.
       ``(b) Application Requirements.--
       ``(1) In general.--Each eligible partnership desiring a 
     grant or subgrant under this part shall submit an 
     application--
       ``(A) in the case of grants awarded pursuant to subsection 
     (a)(1), to the Secretary, at such time, in such manner, and 
     accompanied by such information as the Secretary may require; 
     or
       ``(B) in the case of subgrants awarded pursuant to 
     subsection (a)(2), to the State educational agency, at such 
     time, in such manner, and accompanied by such information as 
     the State educational agency may require.
       ``(2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall include--
       ``(A) the results of a comprehensive assessment of the 
     teacher quality and professional development needs of any 
     schools, local educational agencies, and State educational 
     agencies that comprise the eligible partnership with respect 
     to the teaching and learning of mathematics and science;
       ``(B) a description of how the activities to be carried out 
     by the eligible partnership will be aligned with challenging 
     State academic content and student academic achievement 
     standards in mathematics and science and with other 
     educational reform activities that promote student academic 
     achievement in mathematics and science;
       ``(C) a description of how the activities to be carried out 
     by the eligible partnership will be based on a review of 
     scientifically based research, and an explanation of how the 
     activities are expected to improve student academic 
     achievement and strengthen the quality of mathematics and 
     science instruction;
       ``(D) a description of--
       ``(i) how the eligible partnership will carry out the 
     authorized activities described in subsection (c); and
       ``(ii) the eligible partnership's evaluation and 
     accountability plan described in subsection (e); and
       ``(E) a description of how the eligible partnership will 
     continue the activities funded under this part after the 
     original grant or subgrant period has expired.
       ``(c) Authorized Activities.--An eligible partnership shall 
     use funds provided under this part for one or more of the 
     following activities related to elementary schools or 
     secondary schools:
       ``(1) Creating opportunities for enhanced and ongoing 
     professional development of mathematics and science teachers 
     that improves the subject matter knowledge of such teachers.
       ``(2) Promoting strong teaching skills for mathematics and 
     science teachers and teacher educators, including integrating 
     reliable scientifically based research teaching methods and 
     technology-based teaching methods into the curriculum.
       ``(3) Establishing and operating mathematics and science 
     summer workshops or institutes, including followup training, 
     for elementary school and secondary school mathematics and 
     science teachers that--
       ``(A) shall--
       ``(i) directly relate to the curriculum and academic areas 
     in which the teacher provides instruction, and focus only 
     secondarily on pedagogy;
       ``(ii) enhance the ability of the teacher to understand and 
     use the challenging State academic content standards for 
     mathematics and science and to select appropriate curricula; 
     and
       ``(iii) train teachers to use curricula that are--

       ``(I) based on scientific research;
       ``(II) aligned with challenging State academic content 
     standards; and
       ``(III) object-centered, experiment-oriented, and concept- 
     and content-based; and

       ``(B) may include--

[[Page 25683]]

       ``(i) programs that provide teachers and prospective 
     teachers with opportunities to work under the guidance of 
     experienced teachers and college faculty;
       ``(ii) instruction in the use of data and assessments to 
     inform and instruct classroom practice; and
       ``(iii) professional development activities, including 
     supplemental and followup activities, such as curriculum 
     alignment, distance learning, and activities that train 
     teachers to utilize technology in the classroom.
       ``(4) Recruiting mathematics, engineering, and science 
     majors to teaching through the use of--
       ``(A) signing and performance incentives that are linked to 
     activities proven effective in retaining teachers, for 
     individuals with demonstrated professional experience in 
     mathematics, engineering, or science;
       ``(B) stipends provided to mathematics and science teachers 
     for certification through alternative routes;
       ``(C) scholarships for teachers to pursue advanced course 
     work in mathematics, engineering, or science; and
       ``(D) other programs that the State educational agency 
     determines to be effective in recruiting and retaining 
     individuals with strong mathematics, engineering, or science 
     backgrounds.
       ``(5) Developing or redesigning more rigorous mathematics 
     and science curricula that are aligned with challenging State 
     and local academic content standards and with the standards 
     expected for postsecondary study in mathematics and science.
       ``(6) Establishing distance learning programs for 
     mathematics and science teachers using curricula that are 
     innovative, content-based, and based on scientifically based 
     research that is current as of the date of the program 
     involved.
       ``(7) Designing programs to prepare a mathematics or 
     science teacher at a school to provide professional 
     development to other mathematics or science teachers at the 
     school and to assist beginning and other teachers at the 
     school, including (if applicable) a mechanism to integrate 
     the teacher's experiences from a summer workshop or institute 
     into the provision of professional development and 
     assistance.
       ``(8) Establishing and operating programs to bring 
     mathematics and science teachers into contact with working 
     scientists, mathematicians, and engineers, to expand such 
     teachers' subject matter knowledge of and research in science 
     and mathematics.
       ``(9) Designing programs to identify and develop exemplary 
     mathematics and science teachers in the kindergarten through 
     grade 8 classrooms.
       ``(10) Training mathematics and science teachers and 
     developing programs to encourage young women and other 
     underrepresented individuals in mathematics and science 
     careers (including engineering and technology) to pursue 
     postsecondary degrees in majors leading to such careers.
       ``(d) Coordination and Consultation.--
       ``(1) Partnership grants.--An eligible partnership 
     receiving a grant under section 203 of the Higher Education 
     Act of 1965 shall coordinate the use of such funds with any 
     related activities carried out by such partnership with funds 
     made available under this part.
       ``(2) National science foundation.--In carrying out the 
     activities authorized by this part, the Secretary shall 
     consult and coordinate with the Director of the National 
     Science Foundation, particularly with respect to the 
     appropriate roles for the Department and the Foundation in 
     the conduct of summer workshops, institutes, or partnerships 
     to improve mathematics and science teaching in elementary 
     schools and secondary schools.
       ``(e) Evaluation and Accountability Plan.--
       ``(1) In general.--Each eligible partnership receiving a 
     grant or subgrant under this part shall develop an evaluation 
     and accountability plan for activities assisted under this 
     part that includes rigorous objectives that measure the 
     impact of activities funded under this part.
       ``(2) Contents.--The plan developed pursuant to paragraph 
     (1)--
       ``(A) shall include measurable objectives to increase the 
     number of mathematics and science teachers who participate in 
     content-based professional development activities;
       ``(B) shall include measurable objectives for improved 
     student academic achievement on State mathematics and science 
     assessments or, where applicable, an International 
     Mathematics and Science Study assessment; and
       ``(C) may include objectives and measures for--
       ``(i) increased participation by students in advanced 
     courses in mathematics and science;
       ``(ii) increased percentages of elementary school teachers 
     with academic majors or minors, or group majors or minors, in 
     mathematics, engineering, or the sciences; and
       ``(iii) increased percentages of secondary school classes 
     in mathematics and science taught by teachers with academic 
     majors in mathematics, engineering, and science.
       ``(f) Report.--Each eligible partnership receiving a grant 
     or subgrant under this part shall report annually to the 
     Secretary regarding the eligible partnership's progress in 
     meeting the objectives described in the accountability plan 
     of the partnership under subsection (e).

     ``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $450,000,000 for fiscal year 2002 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

     ``SEC. 2301. DEFINITIONS.

       ``In this chapter:
       ``(1) Armed forces.--The term `Armed Forces' means the 
     Army, Navy, Air Force, Marine Corps, and Coast Guard.
       ``(2) Member of the armed forces.--The term `member of the 
     Armed Forces' includes a former member of the Armed Forces.
       ``(3) Program.--The term `Program' means the Troops-to-
     Teachers Program authorized by this chapter.
       ``(4) Reserve component.--The term `reserve component' 
     means--
       ``(A) the Army National Guard of the United States;
       ``(B) the Army Reserve;
       ``(C) the Naval Reserve;
       ``(D) the Marine Corps Reserve;
       ``(E) the Air National Guard of the United States;
       ``(F) the Air Force Reserve; and
       ``(G) the Coast Guard Reserve.
       ``(5) Secretary concerned.--The term `Secretary concerned' 
     means--
       ``(A) the Secretary of the Army, with respect to matters 
     concerning a reserve component of the Army;
       ``(B) the Secretary of the Navy, with respect to matters 
     concerning reserve components named in subparagraphs (C) and 
     (D) of paragraph (4);
       ``(C) the Secretary of the Air Force, with respect to 
     matters concerning a reserve component of the Air Force; and
       ``(D) the Secretary of Transportation, with respect to 
     matters concerning the Coast Guard Reserve.

     ``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM.

       ``(a) Purpose.--The purpose of this section is to authorize 
     a mechanism for the funding and administration of the Troops-
     to-Teachers Program, which was originally established by the 
     Troops-to-Teachers Program Act of 1999 (title XVII of the 
     National Defense Authorization Act for Fiscal Year 2000) (20 
     U.S.C. 9301 et seq.).
       ``(b) Program Authorized.--The Secretary may carry out a 
     program (to be known as the `Troops-to-Teachers Program')--
       ``(1) to assist eligible members of the Armed Forces 
     described in section 2303 to obtain certification or 
     licensing as elementary school teachers, secondary school 
     teachers, or vocational or technical teachers, and to become 
     highly qualified teachers; and
       ``(2) to facilitate the employment of such members--
       ``(A) by local educational agencies or public charter 
     schools that the Secretary identifies as--
       ``(i) receiving grants under part A of title I as a result 
     of having within their jurisdictions concentrations of 
     children from low-income families; or
       ``(ii) experiencing a shortage of highly qualified 
     teachers, in particular a shortage of science, mathematics, 
     special education, or vocational or technical teachers; and
       ``(B) in elementary schools or secondary schools, or as 
     vocational or technical teachers.
       ``(c) Administration of Program.--The Secretary shall enter 
     into a memorandum of agreement with the Secretary of Defense 
     under which the Secretary of Defense, acting through the 
     Defense Activity for Non-Traditional Education Support of the 
     Department of Defense, will perform the actual administration 
     of the Program, other than section 2306. Using funds 
     appropriated to the Secretary to carry out this chapter, the 
     Secretary shall transfer to the Secretary of Defense such 
     amounts as may be necessary to administer the Program 
     pursuant to the memorandum of agreement.
       ``(d) Information Regarding Program.--The Secretary shall 
     provide to the Secretary of Defense information regarding the 
     Program and applications to participate in the Program, for 
     distribution as part of preseparation counseling provided 
     under section 1142 of title 10, United States Code, to 
     members of the Armed Forces described in section 2303.
       ``(e) Placement Assistance and Referral Services.--The 
     Secretary may, with the agreement of the Secretary of 
     Defense, provide placement assistance and referral services 
     to members of the Armed Forces who meet the criteria 
     described in section 2303, including meeting education 
     qualification requirements under subsection 2303(c)(2). Such 
     members shall not be eligible for financial assistance under 
     subsections (c) and (d) of section 2304.

     ``SEC. 2303. RECRUITMENT AND SELECTION OF PROGRAM 
                   PARTICIPANTS.

       ``(a) Eligible Members.--The following members of the Armed 
     Forces are eligible for selection to participate in the 
     Program:
       ``(1) Any member who--
       ``(A) on or after October 1, 1999, becomes entitled to 
     retired or retainer pay in the manner provided in title 10 or 
     title 14, United States Code;
       ``(B) has an approved date of retirement that is within 1 
     year after the date on which the member submits an 
     application to participate in the Program; or
       ``(C) has been transferred to the Retired Reserve.
       ``(2) Any member who, on or after the date of enactment of 
     the No Child Left Behind Act of 2001--
       ``(A)(i) is separated or released from active duty after 6 
     or more years of continuous active

[[Page 25684]]

     duty immediately before the separation or release; or
       ``(ii) has completed a total of at least 10 years of active 
     duty service, 10 years of service computed under section 
     12732 of title 10, United States Code, or 10 years of any 
     combination of such service; and
       ``(B) executes a reserve commitment agreement for a period 
     of not less than 3 years under subsection (e)(2).
       ``(3) Any member who, on or after the date of enactment of 
     the No Child Left Behind Act of 2001, is retired or separated 
     for physical disability under chapter 61 of title 10, United 
     States Code.
       ``(4) Any member who--
       ``(A) during the period beginning on October 1, 1990, and 
     ending on September 30, 1999, was involuntarily discharged or 
     released from active duty for purposes of a reduction of 
     force after 6 or more years of continuous active duty 
     immediately before the discharge or release; or
       ``(B) applied for the teacher placement program 
     administered under section 1151 of title 10, United States 
     Code, before the repeal of that section, and satisfied the 
     eligibility criteria specified in subsection (c) of such 
     section 1151.
       ``(b) Submission of Applications.--
       ``(1) Form and submission.--Selection of eligible members 
     of the Armed Forces to participate in the Program shall be 
     made on the basis of applications submitted to the Secretary 
     within the time periods specified in paragraph (2). An 
     application shall be in such form and contain such 
     information as the Secretary may require.
       ``(2) Time for submission.--An application shall be 
     considered to be submitted on a timely basis under paragraph 
     (1) if--
       ``(A) in the case of a member described in paragraph 
     (1)(A), (2), or (3) of subsection (a), the application is 
     submitted not later than 4 years after the date on which the 
     member is retired or separated or released from active duty, 
     whichever applies to the member; or
       ``(B) in the case of a member described in subsection 
     (a)(4), the application is submitted not later than September 
     30, 2003.
       ``(c) Selection Criteria.--
       ``(1) Establishment.--Subject to paragraphs (2) and (3), 
     the Secretary shall prescribe the criteria to be used to 
     select eligible members of the Armed Forces to participate in 
     the Program.
       ``(2) Educational background.--
       ``(A) Elementary or secondary school teacher.--If a member 
     of the Armed Forces described in paragraph (1), (2), or (3) 
     of subsection (a) is applying for assistance for placement as 
     an elementary school or secondary school teacher, the 
     Secretary shall require the member to have received a 
     baccalaureate or advanced degree from an accredited 
     institution of higher education.
       ``(B) Vocational or technical teacher.--If a member of the 
     Armed Forces described in paragraph (1), (2), or (3) of 
     subsection (a) is applying for assistance for placement as a 
     vocational or technical teacher, the Secretary shall require 
     the member--
       ``(i) to have received the equivalent of 1 year of college 
     from an accredited institution of higher education and have 6 
     or more years of military experience in a vocational or 
     technical field; or
       ``(ii) to otherwise meet the certification or licensing 
     requirements for a vocational or technical teacher in the 
     State in which the member seeks assistance for placement 
     under the Program.
       ``(3) Honorable service.--A member of the Armed Forces is 
     eligible to participate in the Program only if the member's 
     last period of service in the Armed Forces was honorable, as 
     characterized by the Secretary concerned (as defined in 
     section 101(a)(9) of title 10, United States Code). A member 
     selected to participate in the Program before the retirement 
     of the member or the separation or release of the member from 
     active duty may continue to participate in the Program after 
     the retirement, separation, or release only if the member's 
     last period of service is characterized as honorable by the 
     Secretary concerned (as so defined).
       ``(d) Selection Priorities.--In selecting eligible members 
     of the Armed Forces to receive assistance under the Program, 
     the Secretary shall give priority to members who have 
     educational or military experience in science, mathematics, 
     special education, or vocational or technical subjects and 
     agree to seek employment as science, mathematics, or special 
     education teachers in elementary schools or secondary schools 
     or in other schools under the jurisdiction of a local 
     educational agency.
       ``(e) Other Conditions on Selection.--
       ``(1) Selection subject to funding.--The Secretary may not 
     select an eligible member of the Armed Forces to participate 
     in the Program under this section and receive financial 
     assistance under section 2304 unless the Secretary has 
     sufficient appropriations for the Program available at the 
     time of the selection to satisfy the obligations to be 
     incurred by the United States under section 2304 with respect 
     to the member.
       ``(2) Reserve commitment agreement.--The Secretary may not 
     select an eligible member of the Armed Forces described in 
     subsection (a)(2)(A) to participate in the Program under this 
     section and receive financial assistance under section 2304 
     unless--
       ``(A) the Secretary notifies the Secretary concerned and 
     the member that the Secretary has reserved a full stipend or 
     bonus under section 2304 for the member; and
       ``(B) the member executes a written agreement with the 
     Secretary concerned to serve as a member of the Selected 
     Reserve of a reserve component of the Armed Forces for a 
     period of not less than 3 years (in addition to any other 
     reserve commitment the member may have).

     ``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL 
                   ASSISTANCE.

       ``(a) Participation Agreement.--
       ``(1) In general.--An eligible member of the Armed Forces 
     selected to participate in the Program under section 2303 and 
     receive financial assistance under this section shall be 
     required to enter into an agreement with the Secretary in 
     which the member agrees--
       ``(A) within such time as the Secretary may require, to 
     obtain certification or licensing as an elementary school 
     teacher, secondary school teacher, or vocational or technical 
     teacher, and to become a highly qualified teacher; and
       ``(B) to accept an offer of full-time employment as an 
     elementary school teacher, secondary school teacher, or 
     vocational or technical teacher for not less than 3 school 
     years with a high-need local educational agency or public 
     charter school, as such terms are defined in section 2101, to 
     begin the school year after obtaining that certification or 
     licensing.
       ``(2) Waiver.--The Secretary may waive the 3-year 
     commitment described in paragraph (1)(B) for a participant if 
     the Secretary determines such waiver to be appropriate. If 
     the Secretary provides the waiver, the participant shall not 
     be considered to be in violation of the agreement and shall 
     not be required to provide reimbursement under subsection 
     (f), for failure to meet the 3-year commitment.
       ``(b) Violation of Participation Agreement; Exceptions.--A 
     participant in the Program shall not be considered to be in 
     violation of the participation agreement entered into under 
     subsection (a) during any period in which the participant--
       ``(1) is pursuing a full-time course of study related to 
     the field of teaching at an institution of higher education;
       ``(2) is serving on active duty as a member of the Armed 
     Forces;
       ``(3) is temporarily totally disabled for a period of time 
     not to exceed 3 years as established by sworn affidavit of a 
     qualified physician;
       ``(4) is unable to secure employment for a period not to 
     exceed 12 months by reason of the care required by a spouse 
     who is disabled;
       ``(5) is a highly qualified teacher who is seeking and 
     unable to find full-time employment as a teacher in an 
     elementary school or secondary school or as a vocational or 
     technical teacher for a single period not to exceed 27 
     months; or
       ``(6) satisfies the provisions of additional reimbursement 
     exceptions that may be prescribed by the Secretary.
       ``(c) Stipend for Participants.--
       ``(1) Stipend authorized.--Subject to paragraph (2), the 
     Secretary may pay to a participant in the Program selected 
     under section 2303 a stipend in an amount of not more than 
     $5,000.
       ``(2) Limitation.--The total number of stipends that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     5,000.
       ``(d) Bonus for Participants.--
       ``(1) Bonus authorized.--Subject to paragraph (2), the 
     Secretary may, in lieu of paying a stipend under subsection 
     (c), pay a bonus of $10,000 to a participant in the Program 
     selected under section 2303 who agrees in the participation 
     agreement under subsection (a) to become a highly qualified 
     teacher and to accept full-time employment as an elementary 
     school teacher, secondary school teacher, or vocational or 
     technical teacher for not less than 3 school years in a high-
     need school.
       ``(2) Limitation.--The total number of bonuses that may be 
     paid under paragraph (1) in any fiscal year may not exceed 
     3,000.
       ``(3) High-need school defined.--In this subsection, the 
     term `high-need school' means a public elementary school, 
     public secondary school, or public charter school that meets 
     one or more of the following criteria:
       ``(A) Low-income children.--At least 50 percent of the 
     students enrolled in the school were from low-income families 
     (as described in section 2302(b)(2)(A)(i)).
       ``(B) Children with disabilities.--The school has a large 
     percentage of students who qualify for assistance under part 
     B of the Individuals with Disabilities Education Act.
       ``(e) Treatment of Stipend and Bonus.--A stipend or bonus 
     paid under this section to a participant in the Program shall 
     be taken into account in determining the eligibility of the 
     participant for Federal student financial assistance provided 
     under title IV of the Higher Education Act of 1965.
       ``(f) Reimbursement Under Certain Circumstances.--
       ``(1) Reimbursement required.--A participant in the Program 
     who is paid a stipend or bonus under this section shall be 
     required to repay the stipend or bonus under the following 
     circumstances:
       ``(A) Failure to obtain qualifications or employment.--The 
     participant fails to obtain teacher certification or 
     licensing, to become a highly qualified teacher, or to obtain 
     employment as an elementary school teacher, secondary school 
     teacher, or vocational or technical teacher as required by 
     the participation agreement under subsection (a).
       ``(B) Termination of employment.--The participant 
     voluntarily leaves, or is terminated for cause from, 
     employment as an elementary school teacher, secondary school 
     teacher, or vocational or technical teacher during the 3 
     years of required service in violation of the participation 
     agreement.
       ``(C) Failure to complete service under reserve commitment 
     agreement.--The participant executed a written agreement with 
     the

[[Page 25685]]

     Secretary concerned under section 2303(e)(2) to serve as a 
     member of a reserve component of the Armed Forces for a 
     period of 3 years and fails to complete the required term of 
     service.
       ``(2) Amount of reimbursement.--A participant required to 
     reimburse the Secretary for a stipend or bonus paid to the 
     participant under this section shall pay an amount that bears 
     the same ratio to the amount of the stipend or bonus as the 
     unserved portion of required service bears to the 3 years of 
     required service. Any amount owed by the participant shall 
     bear interest at the rate equal to the highest rate being 
     paid by the United States on the day on which the 
     reimbursement is determined to be due for securities having 
     maturities of 90 days or less and shall accrue from the day 
     on which the participant is first notified of the amount due.
       ``(3) Treatment of obligation.--The obligation to reimburse 
     the Secretary under this subsection is, for all purposes, a 
     debt owing the United States. A discharge in bankruptcy under 
     title 11, United States Code, shall not release a participant 
     from the obligation to reimburse the Secretary under this 
     subsection.
       ``(4) Exceptions to reimbursement requirement.--A 
     participant shall be excused from reimbursement under this 
     subsection if the participant becomes permanently totally 
     disabled as established by sworn affidavit of a qualified 
     physician. The Secretary may also waive the reimbursement in 
     cases of extreme hardship to the participant, as determined 
     by the Secretary.
       ``(g) Relationship to Educational Assistance Under 
     Montgomery GI Bill.--The receipt by a participant in the 
     Program of a stipend or bonus under this section shall not 
     reduce or otherwise affect the entitlement of the participant 
     to any benefits under chapter 30 of title 38, United States 
     Code, or chapter 1606 of title 10, United States Code.

     ``SEC. 2305. PARTICIPATION BY STATES.

       ``(a) Discharge of State Activities Through Consortia of 
     States.--The Secretary may permit States participating in the 
     Program to carry out activities authorized for such States 
     under the Program through one or more consortia of such 
     States.
       ``(b) Assistance to States.--
       ``(1) Grants authorized.--Subject to paragraph (2), the 
     Secretary may make grants to States participating in the 
     Program, or to consortia of such States, in order to permit 
     such States or consortia of States to operate offices for 
     purposes of recruiting eligible members of the Armed Forces 
     for participation in the Program and facilitating the 
     employment of participants in the Program as elementary 
     school teachers, secondary school teachers, and vocational or 
     technical teachers.
       ``(2) Limitation.--The total amount of grants made under 
     paragraph (1) in any fiscal year may not exceed $5,000,000.

     ``SEC. 2306. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER 
                   CERTIFICATION PROGRAMS.

       ``(a) Purpose.--The purpose of this section is to provide 
     funding to develop, implement, and demonstrate teacher 
     certification programs.
       ``(b) Development, Implementation and Demonstration.--The 
     Secretary may enter into a memorandum of agreement with a 
     State educational agency, an institution of higher education, 
     or a consortia of State educational agencies or institutions 
     of higher education, to develop, implement, and demonstrate 
     teacher certification programs for members of the Armed 
     Forces described in section 2303(a)(1)(B) for the purpose of 
     assisting such members to consider and prepare for a career 
     as a highly qualified elementary school teacher, secondary 
     school teacher, or vocational or technical teacher upon 
     retirement from the Armed Forces.
       ``(c) Program Elements.--A teacher certification program 
     under subsection (b) shall--
       ``(1) provide recognition of military experience and 
     training as related to certification or licensing 
     requirements;
       ``(2) provide courses of instruction that may be conducted 
     on or near a military installation;
       ``(3) incorporate alternative approaches to achieve teacher 
     certification, such as innovative methods to gaining field-
     based teaching experiences, and assessment of background and 
     experience as related to skills, knowledge, and abilities 
     required of elementary school teachers, secondary school 
     teachers, or vocational or technical teachers;
       ``(4) provide for courses to be delivered via distance 
     education methods; and
       ``(5) address any additional requirements or specifications 
     established by the Secretary.
       ``(d) Application Procedures.--
       ``(1) In general.--A State educational agencies or 
     institution of higher education (or a consortium of State 
     educational agencies or institutions of higher education) 
     that desires to enter into a memorandum under subsection (b) 
     shall prepare and submit to the Secretary a proposal, at such 
     time, in such manner, and containing such information as the 
     Secretary may require, including an assurance that the State 
     educational agency, institution, or consortium is operating a 
     program leading to State approved teacher certification.
       ``(2) Preference.--The Secretary shall give preference to 
     State educational agencies, institutions, and consortia that 
     submit proposals that provide for cost sharing with respect 
     to the program involved.
       ``(e) Continuation of Programs.--Upon successful completion 
     of the demonstration phase of teacher certification programs 
     funded under this section, the continued operation of the 
     teacher certification programs shall not be the 
     responsibility of the Secretary. A State educational agency, 
     institution, or consortium that desires to continue a program 
     that is funded under this section after such funding is 
     terminated shall use amounts derived from tuition charges to 
     continue such program.
       ``(f) Funding Limitation.--The total amount obligated by 
     the Secretary under this section for any fiscal year may not 
     exceed $10,000,000.

     ``SEC. 2307. REPORTING REQUIREMENTS.

       ``(a) Report Required.--Not later than March 31, 2006, the 
     Secretary (in consultation with the Secretary of Defense and 
     the Secretary of Transportation) and the Comptroller General 
     of the United States shall submit to Congress a report on the 
     effectiveness of the Program in the recruitment and retention 
     of qualified personnel by local educational agencies and 
     public charter schools.
       ``(b) Elements of Report.--The report submitted under 
     subsection (a) shall include information on the following:
       ``(1) The number of participants in the Program.
       ``(2) The schools in which the participants are employed.
       ``(3) The grade levels at which the participants teach.
       ``(4) The academic subjects taught by the participants.
       ``(5) The rates of retention of the participants by the 
     local educational agencies and public charter schools 
     employing the participants.
       ``(6) Such other matters as the Secretary or the 
     Comptroller General of the United States, as the case may be, 
     considers to be appropriate.

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

     ``SEC. 2311. PURPOSES.

       ``The purposes of this chapter are--
       ``(1) to establish a program to recruit and retain highly 
     qualified mid-career professionals (including highly 
     qualified paraprofessionals), and recent graduates of an 
     institution of higher education, as teachers in high-need 
     schools, including recruiting teachers through alternative 
     routes to certification; and
       ``(2) to encourage the development and expansion of 
     alternative routes to certification under State-approved 
     programs that enable individuals to be eligible for teacher 
     certification within a reduced period of time, relying on the 
     experience, expertise, and academic qualifications of an 
     individual, or other factors in lieu of traditional course 
     work in the field of education.

     ``SEC. 2312. DEFINITIONS.

       ``In this chapter:
       ``(1) Eligible participant.--The term `eligible 
     participant' means--
       ``(A) an individual with substantial, demonstrable career 
     experience, including a highly qualified paraprofessional; or
       ``(B) an individual who is a graduate of an institution of 
     higher education who--
       ``(i) has graduated not more than 3 years before applying 
     to an eligible entity to teach under this chapter; and
       ``(ii) in the case of an individual wishing to teach in a 
     secondary school, has completed an academic major (or courses 
     totaling an equivalent number of credit hours) in the 
     academic subject that the individual will teach.
       ``(2) High-need local educational agency.--The term `high-
     need local educational agency' has the meaning given the term 
     in section 2102.
       ``(3) High-need school.--The term `high-need school' means 
     a school that--
       ``(A) is located in an area in which the percentage of 
     students from families with incomes below the poverty line is 
     30 percent or more; or
       ``(B)(i) is located in an area with a high percentage of 
     out-of-field teachers, as defined in section 2102;
       ``(ii) is within the top quartile of elementary schools and 
     secondary schools statewide, as ranked by the number of 
     unfilled, available teacher positions at the schools;
       ``(iii) is located in an area in which there is a high 
     teacher turnover rate; or
       ``(iv) is located in an area in which there is a high 
     percentage of teachers who are not certified or licensed.

     ``SEC. 2313. GRANT PROGRAM.

       ``(a) In General.--The Secretary may establish a program to 
     make grants on a competitive basis to eligible entities to 
     develop State and local teacher corps or other programs to 
     establish, expand, or enhance teacher recruitment and 
     retention efforts.
       ``(b) Eligible entity.--To be eligible to receive a grant 
     under this section, an entity shall be--
       ``(1) a State educational agency;
       ``(2) a high-need local educational agency;
       ``(3) a for-profit or nonprofit organization that has a 
     proven record of effectively recruiting and retaining highly 
     qualified teachers, in a partnership with a high-need local 
     educational agency or with a State educational agency;
       ``(4) an institution of higher education, in a partnership 
     with a high-need local educational agency or with a State 
     educational agency;
       ``(5) a regional consortium of State educational agencies; 
     or
       ``(6) a consortium of high-need local educational agencies.
       ``(c) Priority.--In making such a grant, the Secretary 
     shall give priority to a partnership or consortium that 
     includes a high-need State educational agency or local 
     educational agency.
       ``(d) Application.--
       ``(1) In general.--To be eligible to receive a grant under 
     this section, an entity described in subsection (b) shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require.

[[Page 25686]]

       ``(2) Contents.--The application shall describe--
       ``(A) one or more target recruitment groups on which the 
     applicant will focus its recruitment efforts;
       ``(B) the characteristics of each such target group that--
       ``(i) show the knowledge and experience of the group's 
     members; and
       ``(ii) demonstrate that the members are eligible to achieve 
     the objectives of this section;
       ``(C) describe how the applicant will use funds received 
     under this section to develop a teacher corps or other 
     program to recruit and retain highly qualified midcareer 
     professionals (which may include highly qualified 
     paraprofessionals), recent college graduates, and recent 
     graduate school graduates, as highly qualified teachers in 
     high-need schools operated by high-need local educational 
     agencies;
       ``(D) explain how the program carried out under the grant 
     will meet the relevant State laws (including regulations) 
     related to teacher certification or licensing and facilitate 
     the certification or licensing of such teachers;
       ``(E) describe how the grant will increase the number of 
     highly qualified teachers, in high-need schools operated by 
     high-need local educational agencies (in urban or rural 
     school districts), and in high-need academic subjects, in the 
     jurisdiction served by the applicant; and
       ``(F) describe how the applicant will collaborate, as 
     needed, with other institutions, agencies, or organizations 
     to recruit (particularly through activities that have proven 
     effective in retaining highly qualified teachers), train, 
     place, support, and provide teacher induction programs to 
     program participants under this chapter, including providing 
     evidence of the commitment of the institutions, agencies, or 
     organizations to the applicant's programs.
       ``(e) Duration of Grants.--The Secretary may make grants 
     under this section for periods of 5 years. At the end of the 
     5-year period for such a grant, the grant recipient may apply 
     for an additional grant under this section.
       ``(f) Equitable Distribution.--To the extent practicable, 
     the Secretary shall ensure an equitable geographic 
     distribution of grants under this section among the regions 
     of the United States.
       ``(g) Uses of Funds.--
       ``(1) In general.--An entity that receives a grant under 
     this section shall use the funds made available through the 
     grant to develop a teacher corps or other program in order to 
     establish, expand, or enhance a teacher recruitment and 
     retention program for highly qualified mid-career 
     professionals (including highly qualified paraprofessionals), 
     and recent graduates of an institution of higher education, 
     who are eligible participants, including activities that 
     provide alternative routes to teacher certification.
       ``(2) Authorized activities.--The entity shall use the 
     funds to carry out a program that includes two or more of the 
     following activities:
       ``(A) Providing scholarships, stipends, bonuses, and other 
     financial incentives, that are linked to participation in 
     activities that have proven effective in retaining teachers 
     in high-need schools operated by high-need local educational 
     agencies, to all eligible participants, in an amount not to 
     exceed $5,000 per participant.
       ``(B) Carrying out pre- and post-placement induction or 
     support activities that have proven effective in recruiting 
     and retaining teachers, such as--
       ``(i) teacher mentoring;
       ``(ii) providing internships;
       ``(iii) providing high-quality, preservice coursework; and
       ``(iv) providing high-quality, sustained inservice 
     professional development.
       ``(C) Carrying out placement and ongoing activities to 
     ensure that teachers are placed in fields in which the 
     teachers are highly qualified to teach and are placed in 
     high-need schools.
       ``(D) Making payments to pay for costs associated with 
     accepting teachers recruited under this section from among 
     eligible participants or provide financial incentives to 
     prospective teachers who are eligible participants.
       ``(E) Collaborating with institutions of higher education 
     in developing and implementing programs to facilitate teacher 
     recruitment (including teacher credentialing) and teacher 
     retention programs.
       ``(F) Carrying out other programs, projects, and activities 
     that are designed and have proven to be effective in 
     recruiting and retaining teachers, and that the Secretary 
     determines to be appropriate.
       ``(G) Developing long-term recruitment and retention 
     strategies including developing--
       ``(i) a statewide or regionwide clearinghouse for the 
     recruitment and placement of teachers;
       ``(ii) administrative structures to develop and implement 
     programs to provide alternative routes to certification;
       ``(iii) reciprocity agreements between or among States for 
     the certification or licensing of teachers; or
       ``(iv) other long-term teacher recruitment and retention 
     strategies.
       ``(3) Effective programs.--The entity shall use the funds 
     only for programs that have proven to be effective in both 
     recruiting and retaining teachers.
       ``(h) Requirements.--
       ``(1) Targeting.--An entity that receives a grant under 
     this section to carry out a program shall ensure that 
     participants in the program recruited with funds made 
     available under this section are placed in high-need schools 
     operated by high-need local educational agencies. In placing 
     the participants in the schools, the entity shall give 
     priority to the schools that are located in areas with the 
     highest percentages of students from families with incomes 
     below the poverty line.
       ``(2) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     State and local public funds expended for teacher recruitment 
     and retention programs, including programs to recruit the 
     teachers through alternative routes to certification.
       ``(3) Partnerships and consortia of local educational 
     agencies.--In the case of a partnership established by a 
     local educational agency to carry out a program under this 
     chapter, or a consortium of such agencies established to 
     carry out a program under this chapter, the local educational 
     agency or consortium shall not be eligible to receive funds 
     through a State program under this chapter.
       ``(i) Period of Service.--A program participant in a 
     program under this chapter who receives training through the 
     program shall serve a high-need school operated by a high-
     need local educational agency for at least 3 years.
       ``(j) Repayment.--The Secretary shall establish such 
     requirements as the Secretary determines to be appropriate to 
     ensure that program participants who receive a stipend or 
     other financial incentive under subsection (g)(2)(A), but 
     fail to complete their service obligation under subsection 
     (i), repay all or a portion of such stipend or other 
     incentive.
       ``(k) Administrative Funds.--No entity that receives a 
     grant under this section shall use more than 5 percent of the 
     funds made available through the grant for the administration 
     of a program under this chapter carried out under the grant.

     ``SEC. 2314. EVALUATION AND ACCOUNTABILITY FOR RECRUITING AND 
                   RETAINING TEACHERS.

       ``(a) Evaluation.--Each entity that receives a grant under 
     this chapter shall conduct--
       ``(1) an interim evaluation of the program funded under the 
     grant at the end of the third year of the grant period; and
       ``(2) a final evaluation of the program at the end of the 
     fifth year of the grant period.
       ``(b) Contents.--In conducting the evaluation, the entity 
     shall describe the extent to which local educational agencies 
     that received funds through the grant have met the goals 
     relating to teacher recruitment and retention described in 
     the application.
       ``(c) Reports.--The entity shall prepare and submit to the 
     Secretary and to Congress interim and final reports 
     containing the results of the interim and final evaluations, 
     respectively.
       ``(d) Revocation.--If the Secretary determines that the 
     recipient of a grant under this chapter has not made 
     substantial progress in meeting such goals and the objectives 
     of the grant by the end of the third year of the grant 
     period, the Secretary--
       ``(1) shall revoke the payment made for the fourth year of 
     the grant period; and
       ``(2) shall not make a payment for the fifth year of the 
     grant period.

     ``CHAPTER C--GENERAL PROVISIONS

     ``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart $150,000,000 for fiscal year 2002 
     and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(b) Reservation.--From the funds appropriated to carry 
     out this subpart for fiscal year 2002, the Secretary shall 
     reserve not more than $30,000,000 to carry out chapter A.

                 ``Subpart 2--National Writing Project

     ``SEC. 2331. PURPOSES.

       ``The purposes of this subpart are--
       ``(1) to support and promote the expansion of the National 
     Writing Project network of sites so that teachers in every 
     region of the United States will have access to a National 
     Writing Project program;
       ``(2) to ensure the consistent high quality of the sites 
     through ongoing review, evaluation and technical assistance;
       ``(3) to support and promote the establishment of programs 
     to disseminate effective practices and research findings 
     about the teaching of writing; and
       ``(4) to coordinate activities assisted under this subpart 
     with activities assisted under this Act.

     ``SEC. 2332. NATIONAL WRITING PROJECT.

       ``(a) Authorization.--The Secretary is authorized to award 
     a grant to the National Writing Project, a nonprofit 
     educational organization that has as its primary purpose the 
     improvement of the quality of student writing and learning 
     (hereafter in this section referred to as the `grantee') to 
     improve the teaching of writing and the use of writing as a 
     part of the learning process in our Nation's classrooms.
       ``(b) Requirements of Grant.--The grant shall provide 
     that--
       ``(1) the grantee will enter into contracts with 
     institutions of higher education or other nonprofit 
     educational providers (hereafter in this section referred to 
     as `contractors') under which the contractors will agree to 
     establish, operate, and provide the non-Federal share of the 
     cost of teacher training programs in effective approaches and 
     processes for the teaching of writing;
       ``(2) funds made available by the Secretary to the grantee 
     pursuant to any contract entered into under this section will 
     be used to pay the Federal share of the cost of establishing 
     and operating teacher training programs as provided in 
     paragraph (1); and

[[Page 25687]]

       ``(3) the grantee will meet such other conditions and 
     standards as the Secretary determines to be necessary to 
     assure compliance with the provisions of this section and 
     will provide such technical assistance as may be necessary to 
     carry out the provisions of this section.
       ``(c) Teacher Training Programs.--The teacher training 
     programs authorized in subsection (a) shall--
       ``(1) be conducted during the school year and during the 
     summer months;
       ``(2) train teachers who teach grades kindergarten through 
     college;
       ``(3) select teachers to become members of a National 
     Writing Project teacher network whose members will conduct 
     writing workshops for other teachers in the area served by 
     each National Writing Project site; and
       ``(4) encourage teachers from all disciplines to 
     participate in such teacher training programs.
       ``(d) Federal Share.--
       ``(1) In general.--Except as provided in paragraph (2) or 
     (3) and for purposes of subsection (a), the term `Federal 
     share' means, with respect to the costs of teacher training 
     programs authorized in subsection (a), 50 percent of such 
     costs to the contractor.
       ``(2) Waiver.--The Secretary may waive the provisions of 
     paragraph (1) on a case-by-case basis if the National 
     Advisory Board described in subsection (e) determines, on the 
     basis of financial need, that such waiver is necessary.
       ``(3) Maximum.--The Federal share of the costs of teacher 
     training programs conducted pursuant to subsection (a) may 
     not exceed $100,000 for any one contractor, or $200,000 for a 
     statewide program administered by any one contractor in at 
     least five sites throughout the State.
       ``(e) National Advisory Board.--
       ``(1) Establishment.--The National Writing Project shall 
     establish and operate a National Advisory Board.
       ``(2) Composition.--The National Advisory Board established 
     pursuant to paragraph (1) shall consist of--
       ``(A) national educational leaders;
       ``(B) leaders in the field of writing; and
       ``(C) such other individuals as the National Writing 
     Project determines necessary.
       ``(3) Duties.--The National Advisory Board established 
     pursuant to paragraph (1) shall--
       ``(A) advise the National Writing Project on national 
     issues related to student writing and the teaching of 
     writing;
       ``(B) review the activities and programs of the National 
     Writing Project; and
       ``(C) support the continued development of the National 
     Writing Project.
       ``(f) Evaluation.--
       ``(1) In general.--The Secretary shall conduct an 
     independent evaluation by grant or contract of the teacher 
     training programs administered pursuant to this subpart. Such 
     evaluation shall specify the amount of funds expended by the 
     National Writing Project and each contractor receiving 
     assistance under this section for administrative costs. The 
     results of such evaluation shall be made available to the 
     appropriate committees of Congress.
       ``(2) Funding limitation.--The Secretary shall reserve not 
     more than $150,000 from the total amount appropriated 
     pursuant to the authority of subsection (h) for fiscal year 
     2002 and each of the 5 succeeding fiscal years to conduct the 
     evaluation described in paragraph (1).
       ``(g) Application Review.--
       ``(1) Review board.--The National Writing Project shall 
     establish and operate a National Review Board that shall 
     consist of--
       ``(A) leaders in the field of research in writing; and
       ``(B) such other individuals as the National Writing 
     Project deems necessary.
       ``(2) Duties.--The National Review Board shall--
       ``(A) review all applications for assistance under this 
     subsection; and
       ``(B) recommend applications for assistance under this 
     subsection for funding by the National Writing Project.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart 
     $15,000,000 as may be necessary for fiscal year 2002 and each 
     of the 5 succeeding fiscal years.

                      ``Subpart 3--Civic Education

     ``SEC. 2341. SHORT TITLE.

       ``This subpart may be cited as the `Education for Democracy 
     Act'.

     ``SEC. 2342. PURPOSE.

       ``It is the purpose of this subpart--
       ``(1) to improve the quality of civics and government 
     education by educating students about the history and 
     principles of the Constitution of the United States, 
     including the Bill of Rights;
       ``(2) to foster civic competence and responsibility; and
       ``(3) to improve the quality of civic education and 
     economic education through cooperative civic education and 
     economic education exchange programs with emerging 
     democracies.

     ``SEC. 2343. GENERAL AUTHORITY.

       ``(a) Authority.--The Secretary is authorized to award 
     grants to, or enter into contracts with--
       ``(1) the Center for Civic Education, to carry out civic 
     education activities under sections 2344 and 2345;
       ``(2) the National Council on Economic Education, to carry 
     out economic education activities under section 2345; and
       ``(3) organizations experienced in the development of 
     curricula and programs in civics and government education and 
     economic education for students in elementary schools and 
     secondary schools in countries other than the United States, 
     to carry out civic education activities under section 2345.
       ``(b) Distribution for Cooperative Civic Education and 
     Economic Education Exchange Programs.--
       ``(1) Limitation.--Not more than 40 percent of the amount 
     appropriated under section 2346 for a fiscal year shall be 
     used to carry out section 2345.
       ``(2) Distribution.--Of the amount used to carry out 
     section 2345 for a fiscal year (consistent with paragraph 
     (1)), the Secretary shall use--
       ``(A) 37.5 percent for a grant or contract for the Center 
     for Civic Education;
       ``(B) 37.5 percent for a grant or contract for the National 
     Council on Economic Education; and
       ``(C) 25 percent for not less than 1, but not more than 3, 
     grants or contracts for organizations described in subsection 
     (a)(3).

     ``SEC. 2344. WE THE PEOPLE PROGRAM.

       ``(a) The Citizen and the Constitution.--
       ``(1) Educational activities.--The Center for Civic 
     Education--
       ``(A) shall use funds made available under grants or 
     contracts under section 2343(a)(1)--
       ``(i) to continue and expand the educational activities of 
     the program entitled the `We the People . . . The Citizen and 
     the Constitution' program administered by such center;
       ``(ii) to carry out activities to enhance student 
     attainment of challenging academic content standards in 
     civics and government;
       ``(iii) to provide a course of instruction on the basic 
     principles of the Nation's constitutional democracy and the 
     history of the Constitution of the United States, including 
     the Bill of Rights;
       ``(iv) to provide, at the request of a participating 
     school, school and community simulated congressional hearings 
     following the course of instruction described in clause 
     (iii); and
       ``(v) to provide an annual national competition of 
     simulated congressional hearings for secondary school 
     students who wish to participate in such a program; and
       ``(B) may use funds made available under grants or 
     contracts under section 2343(a)(1)--
       ``(i) to provide advanced, sustained, and ongoing training 
     of teachers about the Constitution of the United States and 
     the political system of the United States;
       ``(ii) to provide materials and methods of instruction, 
     including teacher training, that utilize the latest 
     advancements in educational technology; and
       ``(iii) to provide civic education materials and services 
     to address specific problems such as the prevention of school 
     violence and the abuse of drugs and alcohol.
       ``(2) Availability of program.--The education program 
     authorized under this subsection shall be made available to 
     public and private elementary schools and secondary schools, 
     including Bureau funded schools, in the 435 congressional 
     districts, and in the District of Columbia, the Commonwealth 
     of Puerto Rico, the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands.
       ``(b) Project Citizen.--
       ``(1) Educational activities.--The Center for Civic 
     Education--
       ``(A) shall use funds made available under grants or 
     contracts under section 2343(a)(1)--
       ``(i) to continue and expand the educational activities of 
     the program entitled the `We the People . . . Project 
     Citizen' program administered by the Center;
       ``(ii) to carry out activities to enhance student 
     attainment of challenging academic content standards in 
     civics and government;
       ``(iii) to provide a course of instruction at the middle 
     school level on the roles of State and local governments in 
     the Federal system established by the Constitution of the 
     United States; and
       ``(iv) to provide an annual national showcase or 
     competition; and
       ``(B) may use funds made available under grants or 
     contracts under section 2343(a)(1)--
       ``(i) to provide optional school and community simulated 
     State legislative hearings;
       ``(ii) to provide advanced, sustained, and ongoing training 
     of teachers on the roles of State and local governments in 
     the Federal system established by the Constitution of the 
     United States;
       ``(iii) to provide materials and methods of instruction, 
     including teacher training, that utilize the latest 
     advancements in educational technology; and
       ``(iv) to provide civic education materials and services to 
     address specific problems such as the prevention of school 
     violence and the abuse of drugs and alcohol.
       ``(2) Availability of program.--The education program 
     authorized under this subsection shall be made available to 
     public and private middle schools, including Bureau funded 
     schools, in the 50 States of the United States, the District 
     of Columbia, the Commonwealth of Puerto Rico, the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(c) Bureau-Funded School Defined.--In this section, the 
     term `Bureau-funded school'

[[Page 25688]]

     has the meaning given such term in section 1146 of the 
     Education Amendments of 1978 (25 U.S.C. 2026).

     ``SEC. 2345. COOPERATIVE CIVIC EDUCATION AND ECONOMIC 
                   EDUCATION EXCHANGE PROGRAMS.

       ``(a) Cooperative Education Exchange Programs.--The Center 
     for Civic Education, the National Council on Economic 
     Education, and organizations described in section 2343(a)(3) 
     shall use funds made available under grants or contracts 
     under section 2343 to carry out cooperative education 
     exchange programs in accordance with this section.
       ``(b) Purpose.--The purpose of the cooperative education 
     exchange programs carried out under this section shall be--
       ``(1) to make available to educators from eligible 
     countries exemplary curriculum and teacher training programs 
     in civics and government education, and economics education, 
     developed in the United States;
       ``(2) to assist eligible countries in the adaptation, 
     implementation, and institutionalization of such programs;
       ``(3) to create and implement civics and government 
     education, and economic education, programs for students that 
     draw upon the experiences of the participating eligible 
     countries;
       ``(4) to provide a means for the exchange of ideas and 
     experiences in civics and government education, and economic 
     education, among political, educational, governmental, and 
     private sector leaders of participating eligible countries; 
     and
       ``(5) to provide support for--
       ``(A) independent research and evaluation to determine the 
     effects of educational programs on students' development of 
     the knowledge, skills, and traits of character essential for 
     the preservation and improvement of constitutional democracy; 
     and
       ``(B) effective participation in, and the preservation and 
     improvement of, an efficient market economy.
       ``(c) Activities.--In carrying out the cooperative 
     education exchange programs assisted under this section, the 
     Center for Civic Education, the National Council on Economic 
     Education, and organizations described in section 2343(a)(3) 
     shall--
       ``(1) provide to the participants from eligible countries--
       ``(A) seminars on the basic principles of United States 
     constitutional democracy and economic system, including 
     seminars on the major governmental and economic institutions 
     and systems in the United States, and visits to such 
     institutions;
       ``(B) visits to school systems, institutions of higher 
     education, and nonprofit organizations conducting exemplary 
     programs in civics and government education, and economic 
     education, in the United States;
       ``(C) translations and adaptations with respect to United 
     States civics and government education, and economic 
     education, curricular programs for students and teachers, and 
     in the case of training programs for teachers, translations 
     and adaptations into forms useful in schools in eligible 
     countries, and joint research projects in such areas; and
       ``(D) independent research and evaluation assistance--
       ``(i) to determine the effects of the cooperative education 
     exchange programs on students' development of the knowledge, 
     skills, and traits of character essential for the 
     preservation and improvement of constitutional democracy; and
       ``(ii) to identify effective participation in, and the 
     preservation and improvement of, an efficient market economy;
       ``(2) provide to the participants from the United States--
       ``(A) seminars on the histories, economies, and systems of 
     government of eligible countries;
       ``(B) visits to school systems, institutions of higher 
     education, and organizations conducting exemplary programs in 
     civics and government education, and economic education, 
     located in eligible countries;
       ``(C) assistance from educators and scholars in eligible 
     countries in the development of curricular materials on the 
     history, government, and economy of such countries that are 
     useful in United States classrooms;
       ``(D) opportunities to provide onsite demonstrations of 
     United States curricula and pedagogy for educational leaders 
     in eligible countries; and
       ``(E) independent research and evaluation assistance to 
     determine--
       ``(i) the effects of the cooperative education exchange 
     programs assisted under this section on students' development 
     of the knowledge, skills, and traits of character essential 
     for the preservation and improvement of constitutional 
     democracy; and
       ``(ii) effective participation in, and improvement of, an 
     efficient market economy; and
       ``(3) assist participants from eligible countries and the 
     United States to participate in international conferences on 
     civics and government education, and economic education, for 
     educational leaders, teacher trainers, scholars in related 
     disciplines, and educational policymakers.
       ``(d) Participants.--The primary participants in the 
     cooperative education exchange programs assisted under this 
     section shall be educational leaders in the areas of civics 
     and government education, and economic education, including 
     teachers, curriculum and teacher training specialists, 
     scholars in relevant disciplines, and educational 
     policymakers, and government and private sector leaders from 
     the United States and eligible countries.
       ``(e) Consultation.--The Secretary may award a grant to, or 
     enter into a contract with, the entities described in section 
     2343 to carry out programs assisted under this section only 
     if the Secretary of State concurs with the Secretary that 
     such grant, or contract, respectively, is consistent with the 
     foreign policy of the United States.
       ``(f) Avoidance of Duplication.--With the concurrence of 
     the Secretary of State, the Secretary shall ensure that--
       ``(1) the activities carried out under the programs 
     assisted under this section are not duplicative of other 
     activities conducted in eligible countries; and
       ``(2) any institutions in eligible countries, with which 
     the Center for Civic Education, the National Council on 
     Economic Education, or organizations described in section 
     2343(a)(3) may work in conducting such activities, are 
     creditable.
       ``(g) Eligible Country Defined.--In this section, the term 
     `eligible country' means a Central European country, an 
     Eastern European country, Lithuania, Latvia, Estonia, the 
     independent states of the former Soviet Union as defined in 
     section 3 of the FREEDOM Support Act (22 U.S.C. 5801), the 
     Republic of Ireland, the province of Northern Ireland in the 
     United Kingdom, and any developing country (as such term is 
     defined in section 209(d) of the Education for the Deaf Act) 
     if the Secretary, with the concurrence of the Secretary of 
     State, determines that such developing country has a 
     democratic form of government.

     ``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $30,000,000 for fiscal year 2002 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.

         ``Subpart 4--Teaching of Traditional American History

     ``SEC. 2351. ESTABLISHMENT OF PROGRAM.

       ``(a) In General.--The Secretary may establish and 
     implement a program to be known as the `Teaching American 
     History Grant Program', under which the Secretary shall award 
     grants on a competitive basis to local educational agencies--
       ``(1) to carry out activities to promote the teaching of 
     traditional American history in elementary schools and 
     secondary schools as a separate academic subject (not as a 
     component of social studies); and
       ``(2) for the development, implementation, and 
     strengthening of programs to teach traditional American 
     history as a separate academic subject (not as a component of 
     social studies) within elementary school and secondary school 
     curricula, including the implementation of activities--
       ``(A) to improve the quality of instruction; and
       ``(B) to provide professional development and teacher 
     education activities with respect to American history.
       ``(b) Required Partnership.--A local educational agency 
     that receives a grant under subsection (a) shall carry out 
     activities under the grant in partnership with one or more of 
     the following:
       ``(1) An institution of higher education.
       ``(2) A nonprofit history or humanities organization.
       ``(3) A library or museum.
       ``(c) Application.--To be eligible to receive an grant 
     under this section, a local educational agency shall submit 
     an application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.

     ``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for fiscal year 2002 
     and each of the 5 succeeding fiscal years.

               ``Subpart 5--Teacher Liability Protection

     ``SEC. 2361. SHORT TITLE.

       ``This subpart may be cited as the `Paul D. Coverdell 
     Teacher Protection Act of 2001'.

     ``SEC. 2362. PURPOSE.

       ``The purpose of this subpart is to provide teachers, 
     principals, and other school professionals the tools they 
     need to undertake reasonable actions to maintain order, 
     discipline, and an appropriate educational environment.

     ``SEC. 2363. DEFINITIONS.

       ``For purposes of this subpart:
       ``(1) Economic loss.--The term `economic loss' means any 
     pecuniary loss resulting from harm (including the loss of 
     earnings or other benefits related to employment, medical 
     expense loss, replacement services loss, loss due to death, 
     burial costs, and loss of business or employment 
     opportunities) to the extent recovery for such loss is 
     allowed under applicable State law.
       ``(2) Harm.--The term `harm' includes physical, 
     nonphysical, economic, and noneconomic losses.
       ``(3) Noneconomic loss.--The term `noneconomic loss' means 
     loss for physical or emotional pain, suffering, 
     inconvenience, physical impairment, mental anguish, 
     disfigurement, loss of enjoyment of life, loss of society or 
     companionship, loss of consortium (other than loss of 
     domestic service), hedonic damages, injury to reputation, or 
     any other nonpecuniary loss of any kind or nature.
       ``(4) School.--The term `school' means a public or private 
     kindergarten, a public or private elementary school or 
     secondary school, or a home school.

[[Page 25689]]

       ``(5) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, any other territory or possession 
     of the United States, or any political subdivision of any 
     such State, territory, or possession.
       ``(6) Teacher.--The term `teacher' means--
       ``(A) a teacher, instructor, principal, or administrator;
       ``(B) another educational professional who works in a 
     school;
       ``(C) a professional or nonprofessional employee who--
       ``(i) works in a school; and
       ``(ii)(I) in the employee's job, maintains discipline or 
     ensures safety; or
       ``(II) in an emergency, is called on to maintain discipline 
     or ensure safety; or
       ``(D) an individual member of a school board (as distinct 
     from the board).

     ``SEC. 2364. APPLICABILITY.

       ``This subpart shall only apply to States that receive 
     funds under this Act, and shall apply to such a State as a 
     condition of receiving such funds.

     ``SEC. 2365. PREEMPTION AND ELECTION OF STATE 
                   NONAPPLICABILITY.

       ``(a) Preemption.--This subpart preempts the laws of any 
     State to the extent that such laws are inconsistent with this 
     subpart, except that this subpart shall not preempt any State 
     law that provides additional protection from liability 
     relating to teachers.
       ``(b) Election of State Regarding Nonapplicability.--This 
     subpart shall not apply to any civil action in a State court 
     against a teacher with respect to claims arising within that 
     State if such State enacts a statute in accordance with State 
     requirements for enacting legislation--
       ``(1) citing the authority of this subsection;
       ``(2) declaring the election of such State that this 
     subpart shall not apply, as of a date certain, to such civil 
     action in the State; and
       ``(3) containing no other provisions.

     ``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS.

       ``(a) Liability Protection for Teachers.--Except as 
     provided in subsection (b), no teacher in a school shall be 
     liable for harm caused by an act or omission of the teacher 
     on behalf of the school if--
       ``(1) the teacher was acting within the scope of the 
     teacher's employment or responsibilities to a school or 
     governmental entity;
       ``(2) the actions of the teacher were carried out in 
     conformity with Federal, State, and local laws (including 
     rules and regulations) in furtherance of efforts to control, 
     discipline, expel, or suspend a student or maintain order or 
     control in the classroom or school;
       ``(3) if appropriate or required, the teacher was properly 
     licensed, certified, or authorized by the appropriate 
     authorities for the activities or practice involved in the 
     State in which the harm occurred, where the activities were 
     or practice was undertaken within the scope of the teacher's 
     responsibilities;
       ``(4) the harm was not caused by willful or criminal 
     misconduct, gross negligence, reckless misconduct, or a 
     conscious, flagrant indifference to the rights or safety of 
     the individual harmed by the teacher; and
       ``(5) the harm was not caused by the teacher operating a 
     motor vehicle, vessel, aircraft, or other vehicle for which 
     the State requires the operator or the owner of the vehicle, 
     craft, or vessel to--
       ``(A) possess an operator's license; or
       ``(B) maintain insurance.
       ``(b) Exceptions to Teacher Liability Protection.--If the 
     laws of a State limit teacher liability subject to one or 
     more of the following conditions, such conditions shall not 
     be construed as inconsistent with this section:
       ``(1) A State law that requires a school or governmental 
     entity to adhere to risk management procedures, including 
     mandatory training of teachers.
       ``(2) A State law that makes the school or governmental 
     entity liable for the acts or omissions of its teachers to 
     the same extent as an employer is liable for the acts or 
     omissions of its employees.
       ``(3) A State law that makes a limitation of liability 
     inapplicable if the civil action was brought by an officer of 
     a State or local government pursuant to State or local law.
       ``(c) Limitation on Punitive Damages Based on the Actions 
     of Teachers.--
       ``(1) General rule.--Punitive damages may not be awarded 
     against a teacher in an action brought for harm based on the 
     act or omission of a teacher acting within the scope of the 
     teacher's employment or responsibilities to a school or 
     governmental entity unless the claimant establishes by clear 
     and convincing evidence that the harm was proximately caused 
     by an act or omission of such teacher that constitutes 
     willful or criminal misconduct, or a conscious, flagrant 
     indifference to the rights or safety of the individual 
     harmed.
       ``(2) Construction.--Paragraph (1) does not create a cause 
     of action for punitive damages and does not preempt or 
     supersede any Federal or State law to the extent that such 
     law would further limit the award of punitive damages.
       ``(d) Exceptions to Limitations on Liability.--
       ``(1) In general.--The limitations on the liability of a 
     teacher under this subpart shall not apply to any misconduct 
     that--
       ``(A) constitutes a crime of violence (as that term is 
     defined in section 16 of title 18, United States Code) or act 
     of international terrorism (as that term is defined in 
     section 2331 of title 18, United States Code) for which the 
     defendant has been convicted in any court;
       ``(B) involves a sexual offense, as defined by applicable 
     State law, for which the defendant has been convicted in any 
     court;
       ``(C) involves misconduct for which the defendant has been 
     found to have violated a Federal or State civil rights law; 
     or
       ``(D) where the defendant was under the influence (as 
     determined pursuant to applicable State law) of intoxicating 
     alcohol or any drug at the time of the misconduct.
       ``(2) Hiring.--The limitations on the liability of a 
     teacher under this subpart shall not apply to misconduct 
     during background investigations, or during other actions, 
     involved in the hiring of a teacher.
       ``(e) Rules of Construction.--
       ``(1) Concerning responsibility of teachers to schools and 
     governmental entities.-- Nothing in this section shall be 
     construed to affect any civil action brought by any school or 
     any governmental entity against any teacher of such school.
       ``(2) Concerning corporal punishment.--Nothing in this 
     subpart shall be construed to affect any State or local law 
     (including a rule or regulation) or policy pertaining to the 
     use of corporal punishment.

     ``SEC. 2367. ALLOCATION OF RESPONSIBILITY FOR NONECONOMIC 
                   LOSS.

       ``(a) General Rule.--In any civil action against a teacher, 
     based on an act or omission of a teacher acting within the 
     scope of the teacher's employment or responsibilities to a 
     school or governmental entity, the liability of the teacher 
     for noneconomic loss shall be determined in accordance with 
     subsection (b).
       ``(b) Amount of Liability.--
       ``(1) In general.--
       ``(A) Liability.--Each defendant who is a teacher shall be 
     liable only for the amount of noneconomic loss allocated to 
     that defendant in direct proportion to the percentage of 
     responsibility of that defendant (determined in accordance 
     with paragraph (2)) for the harm to the claimant with respect 
     to which that defendant is liable.
       ``(B) Separate judgment.--The court shall render a separate 
     judgment against each defendant in an amount determined 
     pursuant to subparagraph (A).
       ``(2) Percentage of responsibility.--For purposes of 
     determining the amount of noneconomic loss allocated to a 
     defendant who is a teacher under this section, the trier of 
     fact shall determine the percentage of responsibility of each 
     person responsible for the claimant's harm, whether or not 
     such person is a party to the action.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to preempt or supersede any Federal or State law 
     that further limits the application of joint liability in a 
     civil action described in subsection (a), beyond the 
     limitations established in this section.

     ``SEC. 2368. EFFECTIVE DATE.

       ``(a) In General.--This subpart shall take effect 90 days 
     after the date of enactment of the No Child Left Behind Act 
     of 2001.
       ``(b) Application.--This subpart applies to any claim for 
     harm caused by an act or omission of a teacher if that claim 
     is filed on or after the effective date of the No Child Left 
     Behind Act of 2001 without regard to whether the harm that is 
     the subject of the claim or the conduct that caused the harm 
     occurred before such effective date.

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

     ``SEC. 2401. SHORT TITLE.

       ``This part may be cited as the `Enhancing Education 
     Through Technology Act of 2001'.

     ``SEC. 2402. PURPOSES AND GOALS.

       ``(a) Purposes.--The purposes of this part are the 
     following:
       ``(1) To provide assistance to States and localities for 
     the implementation and support of a comprehensive system that 
     effectively uses technology in elementary schools and 
     secondary schools to improve student academic achievement.
       ``(2) To encourage the establishment or expansion of 
     initiatives, including initiatives involving public-private 
     partnerships, designed to increase access to technology, 
     particularly in schools served by high-need local educational 
     agencies.
       ``(3) To assist States and localities in the acquisition, 
     development, interconnection, implementation, improvement, 
     and maintenance of an effective educational technology 
     infrastructure in a manner that expands access to technology 
     for students (particularly for disadvantaged students) and 
     teachers.
       ``(4) To promote initiatives that provide school teachers, 
     principals, and administrators with the capacity to integrate 
     technology effectively into curricula and instruction that 
     are aligned with challenging State academic content and 
     student academic achievement standards, through such means as 
     high-quality professional development programs.
       ``(5) To enhance the ongoing professional development of 
     teachers, principals, and administrators by providing 
     constant access to training and updated research in teaching 
     and learning through electronic means.
       ``(6) To support the development and utilization of 
     electronic networks and other innovative methods, such as 
     distance learning, of delivering specialized or rigorous 
     academic courses and curricula for students in areas that 
     would

[[Page 25690]]

     not otherwise have access to such courses and curricula, 
     particularly in geographically isolated regions.
       ``(7) To support the rigorous evaluation of programs funded 
     under this part, particularly regarding the impact of such 
     programs on student academic achievement, and ensure that 
     timely information on the results of such evaluations is 
     widely accessible through electronic means.
       ``(8) To support local efforts using technology to promote 
     parent and family involvement in education and communication 
     among students, parents, teachers, principals, and 
     administrators.
       ``(b) Goals.--
       ``(1) Primary goal.--The primary goal of this part is to 
     improve student academic achievement through the use of 
     technology in elementary schools and secondary schools.
       ``(2) Additional goals.--The additional goals of this part 
     are the following:
       ``(A) To assist every student in crossing the digital 
     divide by ensuring that every student is technologically 
     literate by the time the student finishes the eighth grade, 
     regardless of the student's race, ethnicity, gender, family 
     income, geographic location, or disability.
       ``(B) To encourage the effective integration of technology 
     resources and systems with teacher training and curriculum 
     development to establish research-based instructional methods 
     that can be widely implemented as best practices by State 
     educational agencies and local educational agencies.

     ``SEC. 2403. DEFINITIONS.

       ``In this part:
       ``(1) Eligible local entity.--The term `eligible local 
     entity' means--
       ``(A) a high-need local educational agency; or
       ``(B) an eligible local partnership.
       ``(2) Eligible local partnership.--The term `eligible local 
     partnership' means a partnership that--
       ``(A) shall include at least one high-need local 
     educational agency and at least one--
       ``(i) local educational agency that can demonstrate that 
     teachers in schools served by the agency are effectively 
     integrating technology and proven teaching practices into 
     instruction, based on a review of relevant research, and that 
     the integration results in improvement in--

       ``(I) classroom instruction in the core academic subjects; 
     and
       ``(II) the preparation of students to meet challenging 
     State academic content and student academic achievement 
     standards;

       ``(ii) institution of higher education that is in full 
     compliance with the reporting requirements of section 207(f) 
     of the Higher Education Act of 1965 and that has not been 
     identified by its State as low-performing under section 208 
     of such Act;
       ``(iii) for-profit business or organization that develops, 
     designs, manufactures, or produces technology products or 
     services, or has substantial expertise in the application of 
     technology in instruction; or
       ``(iv) public or private nonprofit organization with 
     demonstrated experience in the application of educational 
     technology to instruction; and
       ``(B) may include other local educational agencies, 
     educational service agencies, libraries, or other educational 
     entities appropriate to provide local programs.
       ``(3) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency that--
       ``(A) is among the local educational agencies in a State 
     with the highest numbers or percentages of children from 
     families with incomes below the poverty line; and
       ``(B)(i) operates one or more schools identified under 
     section 1116; or
       ``(ii) has a substantial need for assistance in acquiring 
     and using technology.

     ``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out subparts 1 and 2 $1,000,000,000 for fiscal year 
     2002, and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(b) Allocation of Funds Between State and Local and 
     National Initiatives.--The amount of funds made available 
     under subsection (a) for a fiscal year shall be allocated so 
     that--
       ``(1) not less than 98 percent is made available to carry 
     out subpart 1; and
       ``(2) not more than 2 percent is made available to carry 
     out subpart 2.
       ``(c) Allocation of Funds for Study.--Of the total amount 
     of funds allocated under subsection (b)(2) for fiscal years 
     2002 through 2007, not more than $15,000,000 may be used to 
     carry out section 2421(a).
       ``(d) Limitation.--Of the amount of funds made available to 
     a recipient of funds under this part for a fiscal year, not 
     more than 5 percent may be used by the recipient for 
     administrative costs or technical assistance, of which not 
     more than 60 percent may be used by the recipient for 
     administrative costs.

             ``Subpart 1--State and Local Technology Grants

     ``SEC. 2411. ALLOTMENT AND REALLOTMENT.

       ``(a) Reservations and Allotment.--From the amount made 
     available to carry out this subpart under section 2404(b)(1) 
     for a fiscal year--
       ``(1) the Secretary shall reserve--
       ``(A) \3/4\ of 1 percent for the Secretary of the Interior 
     for programs under this subpart for schools operated or 
     funded by the Bureau of Indian Affairs;
       ``(B) \1/2\ of 1 percent to provide assistance under this 
     subpart to the outlying areas; and
       ``(C) such sums as may be necessary for continuation awards 
     on grants awarded under section 3136 prior to the date of 
     enactment of the No Child Left Behind Act of 2001; and
       ``(2) from the remainder of such amount and subject to 
     subsection (b), the Secretary shall make grants by allotting 
     to each eligible State educational agency under this subpart 
     an amount that bears the same relationship to such remainder 
     for such year as the amount received under part A of title I 
     for such year by such State educational agency bears to the 
     amount received under such part for such year by all State 
     educational agencies.
       ``(b) Minimum Allotment.--The amount of any State 
     educational agency's allotment under subsection (a)(2) for 
     any fiscal year may not be less than \1/2\ of 1 percent of 
     the amount made available for allotments to States under this 
     part for such year.
       ``(c) Reallotment of Unused Funds.--If any State 
     educational agency does not apply for an allotment under this 
     subpart for a fiscal year, or does not use its entire 
     allotment under this subpart for that fiscal year, the 
     Secretary shall reallot the amount of the State educational 
     agency's allotment, or the unused portion of the allotment, 
     to the remaining State educational agencies that use their 
     entire allotments under this subpart in accordance with this 
     section.
       ``(d) State Educational Agency Defined.--In this section, 
     the term `State educational agency' does not include an 
     agency of an outlying area or the Bureau of Indian Affairs.

     ``SEC. 2412. USE OF ALLOTMENT BY STATE.

       ``(a) In General.--Of the amount provided to a State 
     educational agency (from the agency's allotment under section 
     2411(a)(2)) for a fiscal year--
       ``(1) the State educational agency may use not more than 5 
     percent to carry out activities under section 2415; and
       ``(2) the State educational agency shall distribute the 
     remainder as follows:
       ``(A) From 50 percent of the remainder, the State 
     educational agency shall award subgrants by allocating to 
     each eligible local educational agency that has submitted an 
     application to the State educational agency under section 
     2414, for the activities described in section 2416, an amount 
     that bears the same relationship to 50 percent of the 
     remainder for such year as the amount received under part A 
     of title I for such year by such local educational agency 
     bears to the amount received under such part for such year by 
     all local educational agencies within the State.
       ``(B) From 50 percent of the remainder and subject to 
     subsection (b), the State educational agency shall award 
     subgrants, through a State-determined competitive process, to 
     eligible local entities that have submitted applications to 
     the State educational agency under section 2414, for the 
     activities described in section 2416.
       ``(b) Sufficient Amounts.--
       ``(1) Special rule.--In awarding a subgrant under 
     subsection (a)(2)(B), the State educational agency shall--
       ``(A) determine the local educational agencies that--
       ``(i) received allocations under subsection (a)(2)(A) that 
     are not of sufficient size to be effective, consistent with 
     the purposes of this part; and
       ``(ii) are eligible local entities;
       ``(B) give priority to applications submitted by eligible 
     local educational agencies described in subparagraph (A); and
       ``(C) determine the minimum amount for awards under 
     subsection (a)(2)(B) to ensure that subgrants awarded under 
     that subsection are of sufficient size to be effective.
       ``(2) Sufficiency.--In awarding subgrants under subsection 
     (a)(2)(B), each State educational agency shall ensure that 
     each subgrant is of sufficient size and duration, and that 
     the program funded by the subgrant is of sufficient scope and 
     quality, to carry out the purposes of this part effectively.
       ``(3) Distribution.--In awarding subgrants under subsection 
     (a)(2)(B), each State educational agency shall ensure an 
     equitable distribution of assistance under this subpart among 
     urban and rural areas of the State, according to the 
     demonstrated need of those local educational agencies serving 
     the areas.
       ``(c) Fiscal Agent.--If an eligible local partnership 
     receives a subgrant under subsection (a)(2)(B), a local 
     educational agency in the partnership shall serve as the 
     fiscal agent for the partnership.
       ``(d) Technical Assistance.--Each State educational agency 
     receiving a grant under section 2411(a) shall--
       ``(1) identify the local educational agencies served by the 
     State educational agency that--
       ``(A) have the highest numbers or percentages of children 
     from families with incomes below the poverty line; and
       ``(B) demonstrate to such State educational agency the 
     greatest need for technical assistance in developing an 
     application under section 2414; and
       ``(2) offer the technical assistance described in paragraph 
     (1)(B) to those local educational agencies.

     ``SEC. 2413. STATE APPLICATIONS.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State educational agency shall submit to the 
     Secretary, at such time and in such manner as the Secretary 
     may specify, an application containing a new or updated 
     statewide long-range strategic educational

[[Page 25691]]

     technology plan (which shall address the educational 
     technology needs of local educational agencies) and such 
     other information as the Secretary may reasonably require.
       ``(b) Contents.--Each State application submitted under 
     subsection (a) shall include each of the following:
       ``(1) An outline of the State educational agency's long-
     term strategies for improving student academic achievement, 
     including technology literacy, through the effective use of 
     technology in classrooms throughout the State, including 
     through improving the capacity of teachers to integrate 
     technology effectively into curricula and instruction.
       ``(2) A description of the State educational agency's goals 
     for using advanced technology to improve student academic 
     achievement, and how those goals are aligned with challenging 
     State academic content and student academic achievement 
     standards.
       ``(3) A description of how the State educational agency 
     will take steps to ensure that all students and teachers in 
     the State, particularly students and teachers in districts 
     served by high-need local educational agencies, have 
     increased access to technology.
       ``(4) A description of the process and accountability 
     measures that the State educational agency will use to 
     evaluate the extent to which activities funded under this 
     subpart are effective in integrating technology into 
     curricula and instruction.
       ``(5) A description of how the State educational agency 
     will encourage the development and utilization of innovative 
     strategies for the delivery of specialized or rigorous 
     academic courses and curricula through the use of technology, 
     including distance learning technologies, particularly for 
     those areas of the State that would not otherwise have access 
     to such courses and curricula due to geographical isolation 
     or insufficient resources.
       ``(6) An assurance that financial assistance provided under 
     this subpart will supplement, and not supplant, State and 
     local funds.
       ``(7) A description of how the plan incorporates teacher 
     education, professional development, and curriculum 
     development, and how the State educational agency will work 
     to ensure that teachers and principals in a State receiving 
     funds under this part are technologically literate.
       ``(8) A description of--
       ``(A) how the State educational agency will provide 
     technical assistance to applicants under section 2414, 
     especially to those applicants serving the highest numbers or 
     percentages of children in poverty or with the greatest need 
     for technical assistance; and
       ``(B) the capacity of the State educational agency to 
     provide such assistance.
       ``(9) A description of technology resources and systems 
     that the State will provide for the purpose of establishing 
     best practices that can be widely replicated by State 
     educational agencies and local educational agencies in the 
     State and in other States.
       ``(10) A description of the State's long-term strategies 
     for financing technology to ensure that all students, 
     teachers, and classrooms have access to technology.
       ``(11) A description of the State's strategies for using 
     technology to increase parental involvement.
       ``(12) A description of how the State educational agency 
     will ensure that each subgrant awarded under section 
     2412(a)(2)(B) is of sufficient size and duration, and that 
     the program funded by the subgrant is of sufficient scope and 
     quality, to carry out the purposes of this part effectively.
       ``(13) A description of how the State educational agency 
     will ensure ongoing integration of technology into school 
     curricula and instructional strategies in all schools in the 
     State, so that technology will be fully integrated into the 
     curricula and instruction of the schools by December 31, 
     2006.
       ``(14) A description of how the local educational agencies 
     in the State will provide incentives to teachers who are 
     technologically literate and teaching in rural or urban 
     areas, to encourage such teachers to remain in those areas.
       ``(15) A description of how public and private entities 
     will participate in the implementation and support of the 
     plan.
       ``(c) Deemed Approval.--An application submitted by a State 
     educational agency pursuant to subsection (a) shall be deemed 
     to be approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the application, that the application is not in compliance 
     with this part.
       ``(d) Disapproval.--The Secretary shall not finally 
     disapprove the application, except after giving the State 
     educational agency notice and an opportunity for a hearing.
       ``(e) Notification.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     this part, the Secretary shall--
       ``(1) give the State educational agency notice and an 
     opportunity for a hearing; and
       ``(2) notify the State educational agency of the finding of 
     noncompliance and, in such notification, shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(f) Response.--If the State educational agency responds 
     to the Secretary's notification described in subsection 
     (e)(2) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     application with the requested information described in 
     subsection (e)(2)(B), the Secretary shall approve or 
     disapprove such application prior to the later of--
       ``(1) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(2) the expiration of the 120-day period described in 
     subsection (c).
       ``(g) Failure to Respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     subsection (e)(2) during the 45-day period beginning on the 
     date on which the agency received the notification, such 
     application shall be deemed to be disapproved.

     ``SEC. 2414. LOCAL APPLICATIONS.

       ``(a) In General.--To be eligible to receive a subgrant 
     from a State educational agency under this subpart, a local 
     educational agency or eligible local entity shall submit to 
     the State educational agency an application containing a new 
     or updated local long-range strategic educational technology 
     plan that is consistent with the objectives of the statewide 
     educational technology plan described in section 2413(a), and 
     such other information as the State educational agency may 
     reasonably require, at such time and in such manner as the 
     State educational agency may require.
       ``(b) Contents.--The application shall include each of the 
     following:
       ``(1) A description of how the applicant will use Federal 
     funds under this subpart to improve the student academic 
     achievement, including technology literacy, of all students 
     attending schools served by the local educational agency and 
     to improve the capacity of all teachers teaching in schools 
     served by the local educational agency to integrate 
     technology effectively into curricula and instruction.
       ``(2) A description of the applicant's specific goals for 
     using advanced technology to improve student academic 
     achievement, aligned with challenging State academic content 
     and student academic achievement standards.
       ``(3) A description of the steps the applicant will take to 
     ensure that all students and teachers in schools served by 
     the local educational agency involved have increased access 
     to educational technology, including how the agency would use 
     funds under this subpart (such as combining the funds with 
     funds from other sources), to help ensure that--
       ``(A) students in high-poverty and high-needs schools, or 
     schools identified under section 1116, have access to 
     technology; and
       ``(B) teachers are prepared to integrate technology 
     effectively into curricula and instruction.
       ``(4) A description of how the applicant will--
       ``(A) identify and promote curricula and teaching 
     strategies that integrate technology effectively into 
     curricula and instruction, based on a review of relevant 
     research, leading to improvements in student academic 
     achievement, as measured by challenging State academic 
     content and student academic achievement standards; and
       ``(B) provide ongoing, sustained professional development 
     for teachers, principals, administrators, and school library 
     media personnel serving the local educational agency, to 
     further the effective use of technology in the classroom or 
     library media center, including, if applicable, a list of the 
     entities that will be partners with the local educational 
     agency involved in providing the ongoing, sustained 
     professional development.
       ``(5) A description of the type and costs of technologies 
     to be acquired under this subpart, including services, 
     software, and digital curricula, and including specific 
     provisions for interoperability among components of such 
     technologies.
       ``(6) A description of how the applicant will coordinate 
     activities carried out with funds provided under this subpart 
     with technology-related activities carried out with funds 
     available from other Federal, State, and local sources.
       ``(7) A description of how the applicant will integrate 
     technology (including software and other electronically 
     delivered learning materials) into curricula and instruction, 
     and a timeline for such integration.
       ``(8) A description of how the applicant will encourage the 
     development and utilization of innovative strategies for the 
     delivery of specialized or rigorous academic courses and 
     curricula through the use of technology, including distance 
     learning technologies, particularly for those areas that 
     would not otherwise have access to such courses and curricula 
     due to geographical isolation or insufficient resources.
       ``(9) A description of how the applicant will ensure the 
     effective use of technology to promote parental involvement 
     and increase communication with parents, including a 
     description of how parents will be informed of the technology 
     being applied in their child's education so that the parents 
     are able to reinforce at home the instruction their child 
     receives at school.
       ``(10) A description of how programs will be developed, 
     where applicable, in collaboration with adult literacy 
     service providers, to maximize the use of technology.
       ``(11) A description of the process and accountability 
     measures that the applicant will use to evaluate the extent 
     to which activities funded under this subpart are effective 
     in integrating technology into curricula and instruction, 
     increasing the ability of teachers to teach,

[[Page 25692]]

     and enabling students to meet challenging State academic 
     content and student academic achievement standards.
       ``(12) A description of the supporting resources (such as 
     services, software, other electronically delivered learning 
     materials, and print resources) that will be acquired to 
     ensure successful and effective uses of technology.
       ``(c) Combined Applications.--A local educational agency 
     that is an eligible local entity and submits an application 
     to the State educational agency under this section for funds 
     awarded under section 2412(a)(2)(A) may combine the agency's 
     application for funds awarded under that section with an 
     application for funds awarded under section 2412(a)(2)(B).
       ``(d) Special Rule.--
       ``(1) Consortium applications.--
       ``(A) In general.--For any fiscal year, a local educational 
     agency applying for financial assistance described in section 
     2412(a)(2)(A) may apply as part of a consortium that includes 
     other local educational agencies, institutions of higher 
     education, educational service agencies, libraries, or other 
     educational entities appropriate to provide local programs.
       ``(B) Fiscal agent.--If a local educational agency applies 
     for and receives financial assistance described in section 
     2412(a)(2)(A) as part of a consortium, the local educational 
     agency shall serve as the fiscal agent for the consortium.
       ``(2) State educational agency assistance.--At the request 
     of a local educational agency, a State educational agency may 
     assist the local educational agency in the formation of a 
     consortium described in paragraph (1) to provide services for 
     the teachers and students served by the local educational 
     agency.

     ``SEC. 2415. STATE ACTIVITIES.

       ``From funds made available under section 2412(a)(1), a 
     State educational agency shall carry out activities and 
     assist local efforts to carry out the purposes of this part, 
     which may include the following activities:
       ``(1) Developing, or assisting applicants or recipients of 
     funds under this subpart in the development and utilization 
     of, innovative strategies for the delivery of specialized or 
     rigorous academic courses and curricula through the use of 
     technology, including distance learning technologies, and 
     providing other technical assistance to such applicants or 
     recipients throughout the State, with priority given to high-
     need local educational agencies.
       ``(2) Establishing or supporting public-private initiatives 
     (such as interest-free or reduced-cost loans) for the 
     acquisition of educational technology for high-need local 
     educational agencies and students attending schools served by 
     such agencies.
       ``(3) Assisting recipients of funds under this subpart in 
     providing sustained and intensive, high-quality professional 
     development based on a review of relevant research in the 
     integration of advanced technologies, including emerging 
     technologies, into curricula and instruction and in using 
     those technologies to create new learning environments, 
     including training in the use of technology to--
       ``(A) access data and resources to develop curricula and 
     instructional materials;
       ``(B) enable teachers--
       ``(i) to use the Internet and other technology to 
     communicate with parents, other teachers, principals, and 
     administrators; and
       ``(ii) to retrieve Internet-based learning resources; and
       ``(C) lead to improvements in classroom instruction in the 
     core academic subjects, that effectively prepare students to 
     meet challenging State academic content standards and student 
     academic achievement standards.
       ``(4) Assisting recipients of funds under this subpart in 
     providing all students (including students with disabilities 
     and students with limited English proficiency) and teachers 
     with access to educational technology.
       ``(5) Developing performance measurement systems to 
     determine the effectiveness of educational technology 
     programs funded under this subpart, particularly in 
     determining the extent to which activities funded under this 
     subpart are effective in integrating technology into 
     curricula and instruction, increasing the ability of teachers 
     to teach, and enabling students to meet challenging State 
     academic content and student academic achievement standards.
       ``(6) Collaborating with other State educational agencies 
     on distance learning, including making specialized or 
     rigorous academic courses and curricula available to students 
     in areas that would not otherwise have access to such courses 
     and curricula.

     ``SEC. 2416. LOCAL ACTIVITIES.

       ``(a) Professional Development.--
       ``(1) In general.--A recipient of funds made available 
     under section 2412(a)(2) shall use not less than 25 percent 
     of such funds to provide ongoing, sustained, and intensive, 
     high-quality professional development. The recipient shall 
     provide professional development in the integration of 
     advanced technologies, including emerging technologies, into 
     curricula and instruction and in using those technologies to 
     create new learning environments, such as professional 
     development in the use of technology--
       ``(A) to access data and resources to develop curricula and 
     instructional materials;
       ``(B) to enable teachers--
       ``(i) to use the Internet and other technology to 
     communicate with parents, other teachers, principals, and 
     administrators; and
       ``(ii) to retrieve Internet-based learning resources; and
       ``(C) to lead to improvements in classroom instruction in 
     the core academic subjects, that effectively prepare students 
     to meet challenging State academic content standards, 
     including increasing student technology literacy, and student 
     academic achievement standards.
       ``(2) Waivers.--Paragraph (1) shall not apply to a 
     recipient of funds made available under section 2412(a)(2) 
     that demonstrates, to the satisfaction of the State 
     educational agency involved, that the recipient already 
     provides ongoing, sustained, and intensive, high-quality 
     professional development that is based on a review of 
     relevant research, to all teachers in core academic subjects 
     in the integration of advanced technologies, including 
     emerging technologies, into curricula and instruction.
       ``(b) Other Activities.--In addition to the activities 
     described in subsection (a), a recipient of funds made 
     available by a State educational agency under section 
     2412(a)(2) shall use such funds to carry out other activities 
     consistent with this subpart, which may include the 
     following:
       ``(1) Establishing or expanding initiatives, particularly 
     initiatives involving public-private partnerships, designed 
     to increase access to technology for students and teachers, 
     with special emphasis on the access of high-need schools to 
     technology.
       ``(2) Adapting or expanding existing and new applications 
     of technology to enable teachers to increase student academic 
     achievement, including technology literacy--
       ``(A) through the use of teaching practices that are based 
     on a review of relevant research and are designed to prepare 
     students to meet challenging State academic content and 
     student academic achievement standards; and
       ``(B) by the development and utilization of innovative 
     distance learning strategies to deliver specialized or 
     rigorous academic courses and curricula to areas that would 
     not otherwise have access to such courses and curricula.
       ``(3) Acquiring proven and effective courses and curricula 
     that include integrated technology and are designed to help 
     students meet challenging State academic content and student 
     academic achievement standards.
       ``(4) Utilizing technology to develop or expand efforts to 
     connect schools and teachers with parents and students to 
     promote meaningful parental involvement, to foster increased 
     communication about curricula, assignments, and assessments 
     between students, parents, and teachers, and to assist 
     parents to understand the technology being applied in their 
     child's education, so that parents are able to reinforce at 
     home the instruction their child receives at school.
       ``(5) Preparing one or more teachers in elementary schools 
     and secondary schools as technology leaders who are provided 
     with the means to serve as experts and train other teachers 
     in the effective use of technology, and providing bonus 
     payments to the technology leaders.
       ``(6) Acquiring, adapting, expanding, implementing, 
     repairing, and maintaining existing and new applications of 
     technology, to support the school reform effort and to 
     improve student academic achievement, including technology 
     literacy.
       ``(7) Acquiring connectivity linkages, resources, and 
     services (including the acquisition of hardware and software 
     and other electronically delivered learning materials) for 
     use by teachers, students, academic counselors, and school 
     library media personnel in the classroom, in academic and 
     college counseling centers, or in school library media 
     centers, in order to improve student academic achievement.
       ``(8) Using technology to collect, manage, and analyze data 
     to inform and enhance teaching and school improvement 
     efforts.
       ``(9) Implementing performance measurement systems to 
     determine the effectiveness of education technology programs 
     funded under this subpart, particularly in determining the 
     extent to which activities funded under this subpart are 
     effective in integrating technology into curricula and 
     instruction, increasing the ability of teachers to teach, and 
     enabling students to meet challenging State academic content 
     and student academic achievement standards.
       ``(10) Developing, enhancing, or implementing information 
     technology courses.

              ``Subpart 2--National Technology Activities

     ``SEC. 2421. NATIONAL ACTIVITIES.

       ``(a) Study.--Using funds made available under section 
     2404(b)(2), the Secretary--
       ``(1) shall conduct an independent, long-term study, 
     utilizing scientifically based research methods and control 
     groups or control conditions--
       ``(A) on the conditions and practices under which 
     educational technology is effective in increasing student 
     academic achievement; and
       ``(B) on the conditions and practices that increase the 
     ability of teachers to integrate technology effectively into 
     curricula and instruction, that enhance the learning 
     environment and opportunities, and that increase student 
     academic achievement, including technology literacy;
       ``(2) shall establish an independent review panel to advise 
     the Secretary on methodological and other issues that arise 
     in conducting the long-term study;
       ``(3) shall consult with other interested Federal 
     departments or agencies, State and local educational 
     practitioners and policymakers (including teachers, 
     principals, and superintendents), and experts in technology, 
     regarding the study; and
       ``(4) shall submit to Congress interim reports, when 
     appropriate, and a final report, to be submitted not later 
     than April 1, 2006, on the findings of the study.
       ``(b) Dissemination.--Using funds made available under 
     section 2404(b)(2), the Secretary

[[Page 25693]]

     shall make widely available, including through dissemination 
     on the Internet and to all State educational agencies and 
     other recipients of funds under this part, findings 
     identified through activities carried out under this section 
     regarding the conditions and practices under which 
     educational technology is effective in increasing student 
     academic achievement.
       ``(c) Technical Assistance.--Using funds made available 
     under section 2404(b)(2), the Secretary may provide technical 
     assistance (directly or through the competitive award of 
     grants or contracts) to State educational agencies, local 
     educational agencies, and other recipients of funds, 
     particularly in rural areas, under this part, in order to 
     assist such State educational agencies, local educational 
     agencies, and other recipients to achieve the purposes of 
     this part.

     ``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.

       ``(a) In General.--Based on the Nation's progress and an 
     assessment by the Secretary of the continuing and future 
     needs of the Nation's schools in effectively using technology 
     to provide all students the opportunity to meet challenging 
     State academic content and student academic achievement 
     standards, the Secretary shall update and publish, in a form 
     readily accessible to the public, a national long-range 
     technology plan, by not later than 12 months after the date 
     of enactment of the No Child Left Behind Act of 2001.
       ``(b) Contents.--The plan referred to in subsection (a) 
     shall include each of the following:
       ``(1) A description of the manner in which the Secretary 
     will promote--
       ``(A) higher student academic achievement through the 
     integration of advanced technologies, including emerging 
     technologies, into curricula and instruction;
       ``(B) increased access to technology for teaching and 
     learning for schools with a high number or percentage of 
     children from families with incomes below the poverty line; 
     and
       ``(C) the use of technology to assist in the implementation 
     of State systemic reform strategies.
       ``(2) A description of joint activities of the Department 
     of Education and other Federal departments or agencies that 
     will promote the use of technology in education.

                 ``Subpart 3--Ready-to-Learn Television

     ``SEC. 2431. READY-TO-LEARN TELEVISION.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to, or enter into contracts or cooperative agreements 
     with, eligible entities described in paragraph (3) to enable 
     such entities--
       ``(A) to develop, produce, and distribute educational and 
     instructional video programming for preschool and elementary 
     school children and their parents in order to facilitate 
     student academic achievement;
       ``(B) to facilitate the development, directly or through 
     contracts with producers of children and family educational 
     television programming, of educational programming for 
     preschool and elementary school children, and the 
     accompanying support materials and services that promote the 
     effective use of such programming;
       ``(C) to facilitate the development of programming and 
     digital content containing Ready-to-Learn-based children's 
     programming and resources for parents and caregivers that is 
     specially designed for nationwide distribution over public 
     television stations' digital broadcasting channels and the 
     Internet;
       ``(D) to contract with entities (such as public 
     telecommunications entities) so that programs developed under 
     this section are disseminated and distributed to the widest 
     possible audience appropriate to be served by the 
     programming, and through the use of the most appropriate 
     distribution technologies; and
       ``(E) to develop and disseminate education and training 
     materials, including interactive programs and programs 
     adaptable to distance learning technologies, that are 
     designed--
       ``(i) to promote school readiness; and
       ``(ii) to promote the effective use of materials developed 
     under subparagraphs (B) and (C) among parents, teachers, Head 
     Start providers, Even Start providers, providers of family 
     literacy services, child care providers, early childhood 
     development personnel, elementary school teachers, public 
     libraries, and after-school program personnel caring for 
     preschool and elementary school children.
       ``(2) Availability.--In awarding grants, contracts, or 
     cooperative agreements under this section, the Secretary 
     shall ensure that eligible entities make programming widely 
     available, with support materials as appropriate, to young 
     children, parents, child care workers, Head Start providers, 
     Even Start providers, and providers of family literacy 
     services to increase the effective use of such programming.
       ``(3) Eligible entities.--To be eligible to receive a 
     grant, contract, or cooperative agreements under this 
     section, an entity shall be a public telecommunications 
     entity that is able to demonstrate each of the following:
       ``(A) A capacity for the development and national 
     distribution of educational and instructional television 
     programming of high quality that is accessible by a large 
     majority of disadvantaged preschool and elementary school 
     children.
       ``(B) A capacity to contract with the producers of 
     children's television programming for the purpose of 
     developing educational television programming of high 
     quality.
       ``(C) A capacity, consistent with the entity's mission and 
     nonprofit nature, to negotiate such contracts in a manner 
     that returns to the entity an appropriate share of any 
     ancillary income from sales of any program-related products.
       ``(D) A capacity to localize programming and materials to 
     meet specific State and local needs and to provide 
     educational outreach at the local level.
       ``(4) Coordination of activities.--An entity receiving a 
     grant, contract, or cooperative agreement under this section 
     shall consult with the Secretary and the Secretary of Health 
     and Human Services--
       ``(A) to maximize the utilization of quality educational 
     programming by preschool and elementary school children, and 
     make such programming widely available to federally funded 
     programs serving such populations; and
       ``(B) to coordinate activities with Federal programs that 
     have major training components for early childhood 
     development, including programs under the Head Start Act (42 
     U.S.C. 9831 et seq.) and Even Start, and State training 
     activities funded under the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858 et seq.), regarding the 
     availability and utilization of materials developed under 
     paragraph (1)(E) to enhance parent and child care provider 
     skills in early childhood development and education.
       ``(b) Applications.--To be eligible to receive a grant, 
     contract, or cooperative agreement under subsection (a), an 
     entity shall submit to the Secretary an application at such 
     time, in such manner, and containing such information as the 
     Secretary may reasonably require.
       ``(c) Reports and Evaluations.--
       ``(1) Annual report to the secretary.--An entity receiving 
     a grant, contract, or cooperative agreement under this 
     section shall prepare and submit to the Secretary an annual 
     report that contains such information as the Secretary may 
     require. At a minimum, the report shall describe the program 
     activities undertaken with funds received under the grant, 
     contract, or cooperative agreement, including each of the 
     following:
       ``(A) The programming that has been developed, directly or 
     indirectly, by the eligible entity, and the target population 
     of the programs developed.
       ``(B) The support and training materials that have been 
     developed to accompany the programming, and the method by 
     which the materials are distributed to consumers and users of 
     the programming.
       ``(C) The means by which programming developed under this 
     section has been distributed, including the distance learning 
     technologies that have been utilized to make programming 
     available, and the geographic distribution achieved through 
     such technologies.
       ``(D) The initiatives undertaken by the entity to develop 
     public-private partnerships to secure non-Federal support for 
     the development, distribution, and broadcast of educational 
     and instructional programming.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit to the relevant committees of Congress a biannual 
     report that includes the following:
       ``(A) A summary of the activities assisted under subsection 
     (a).
       ``(B) A description of the education and training materials 
     made available under subsection (a)(1)(E), the manner in 
     which outreach has been conducted to inform parents and child 
     care providers of the availability of such materials, and the 
     manner in which such materials have been distributed in 
     accordance with such subsection.
       ``(d) Administrative Costs.--An entity that receives a 
     grant, contract, or cooperative agreement under this section 
     may use up to 5 percent of the amount received under the 
     grant, contract, or agreement for the normal and customary 
     expenses of administering the grant, contract, or agreement.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary for 
     fiscal year 2002, and for each of the 5 succeeding fiscal 
     years.
       ``(2) Funding rule.--Not less than 60 percent of the amount 
     appropriated under paragraph (1) for each fiscal year shall 
     be used to carry out activities under subparagraphs (B) 
     through (D) of subsection (a)(1).

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

     ``SEC. 2441. INTERNET SAFETY.

       ``(a) In General.--No funds made available under this part 
     to a local educational agency for an elementary school or 
     secondary school that does not receive services at discount 
     rates under section 254(h)(5) of the Communications Act of 
     1934 (47 U.S.C. 254(h)(5)) may be used to purchase computers 
     used to access the Internet, or to pay for direct costs 
     associated with accessing the Internet, for such school 
     unless the school, school board, local educational agency, or 
     other authority with responsibility for administration of 
     such school both--
       ``(1)(A) has in place a policy of Internet safety for 
     minors that includes the operation of a technology protection 
     measure with respect to any of its computers with Internet 
     access that protects against access through such computers to 
     visual depictions that are--
       ``(i) obscene;
       ``(ii) child pornography; or
       ``(iii) harmful to minors; and
       ``(B) is enforcing the operation of such technology 
     protection measure during any use of such computers by 
     minors; and
       ``(2)(A) has in place a policy of Internet safety that 
     includes the operation of a technology protection measure 
     with respect to any of its computers with Internet access 
     that protects against access through such computers to visual 
     depictions that are--

[[Page 25694]]

       ``(i) obscene; or
       ``(ii) child pornography; and
       ``(B) is enforcing the operation of such technology 
     protection measure during any use of such computers.
       ``(b) Timing and Applicability of Implementation.--
       ``(1) In general.--The local educational agency with 
     responsibility for a school covered by subsection (a) shall 
     certify the compliance of such school with the requirements 
     of subsection (a) as part of the application process for the 
     next program funding year under this Act following December 
     21, 2000, and for each subsequent program funding year 
     thereafter.
       ``(2) Process.--
       ``(A) Schools with internet safety policies and technology 
     protection measures in place.--A local educational agency 
     with responsibility for a school covered by subsection (a) 
     that has in place an Internet safety policy meeting the 
     requirements of subsection (a) shall certify its compliance 
     with subsection (a) during each annual program application 
     cycle under this Act.
       ``(B) Schools without internet safety policies and 
     technology protection measures in place.--
       ``(i) Certification.--A local educational agency with 
     responsibility for a school covered by subsection (a) that 
     does not have in place an Internet safety policy meeting the 
     requirements of subsection (a)--

       ``(I) for the first program year after December 21, 2000, 
     in which the local educational agency is applying for funds 
     for such school under this Act, shall certify that it is 
     undertaking such actions, including any necessary procurement 
     procedures, to put in place an Internet safety policy that 
     meets such requirements; and
       ``(II) for the second program year after December 21, 2000, 
     in which the local educational agency is applying for funds 
     for such school under this Act, shall certify that such 
     school is in compliance with such requirements.

       ``(ii) Ineligibility.--Any school covered by subsection (a) 
     for which the local educational agency concerned is unable to 
     certify compliance with such requirements in such second 
     program year shall be ineligible for all funding under this 
     part for such second program year and all subsequent program 
     years until such time as such school comes into compliance 
     with such requirements.
       ``(C) Waivers.--Any school subject to a certification under 
     subparagraph (B)(i)(II) for which the local educational 
     agency concerned cannot make the certification otherwise 
     required by that subparagraph may seek a waiver of that 
     subparagraph if State or local procurement rules or 
     regulations or competitive bidding requirements prevent the 
     making of the certification otherwise required by that 
     subparagraph. The local educational agency concerned shall 
     notify the Secretary of the applicability of that 
     subparagraph to the school. Such notice shall certify that 
     the school will be brought into compliance with the 
     requirements in subsection (a) before the start of the third 
     program year after December 21, 2000, in which the school is 
     applying for funds under this part.
       ``(c) Disabling During Certain Use.--An administrator, 
     supervisor, or person authorized by the responsible authority 
     under subsection (a) may disable the technology protection 
     measure concerned to enable access for bona fide research or 
     other lawful purposes.
       ``(d) Noncompliance.--
       ``(1) Use of general education provisions act remedies.--
     Whenever the Secretary has reason to believe that any 
     recipient of funds under this part is failing to comply 
     substantially with the requirements of this section, the 
     Secretary may--
       ``(A) withhold further payments to the recipient under this 
     part;
       ``(B) issue a complaint to compel compliance of the 
     recipient through a cease and desist order; or
       ``(C) enter into a compliance agreement with a recipient to 
     bring it into compliance with such requirements,
     in same manner as the Secretary is authorized to take such 
     actions under sections 455, 456, and 457, respectively, of 
     the General Education Provisions Act.
       ``(2) Recovery of funds prohibited.--The actions authorized 
     by paragraph (1) are the exclusive remedies available with 
     respect to the failure of a school to comply substantially 
     with a provision of this section, and the Secretary shall not 
     seek a recovery of funds from the recipient for such failure.
       ``(3) Recommencement of payments.--Whenever the Secretary 
     determines (whether by certification or other appropriate 
     evidence) that a recipient of funds who is subject to the 
     withholding of payments under paragraph (1)(A) has cured the 
     failure providing the basis for the withholding of payments, 
     the Secretary shall cease the withholding of payments to the 
     recipient under that paragraph.
       ``(e) Definitions.--In this subpart:
       ``(1) Computer.--The term `computer' includes any hardware, 
     software, or other technology attached or connected to, 
     installed in, or otherwise used in connection with a 
     computer.
       ``(2) Access to internet.--A computer shall be considered 
     to have access to the Internet if such computer is equipped 
     with a modem or is connected to a computer network that has 
     access to the Internet.
       ``(3) Acquisition or operation.--An elementary school or 
     secondary school shall be considered to have received funds 
     under this part for the acquisition or operation of any 
     computer if such funds are used in any manner, directly or 
     indirectly--
       ``(A) to purchase, lease, or otherwise acquire or obtain 
     the use of such computer; or
       ``(B) to obtain services, supplies, software, or other 
     actions or materials to support, or in connection with, the 
     operation of such computer.
       ``(4) Minor.--The term `minor' means an individual who has 
     not attained the age of 17.
       ``(5) Child pornography.--The term `child pornography' has 
     the meaning given that term in section 2256 of title 18, 
     United States Code.
       ``(6) Harmful to minors.--The term `harmful to minors' 
     means any picture, image, graphic image file, or other visual 
     depiction that--
       ``(A) taken as a whole and with respect to minors, appeals 
     to a prurient interest in nudity, sex, or excretion;
       ``(B) depicts, describes, or represents, in a patently 
     offensive way with respect to what is suitable for minors, an 
     actual or simulated sexual act or sexual contact, actual or 
     simulated normal or perverted sexual acts, or a lewd 
     exhibition of the genitals; and
       ``(C) taken as a whole, lacks serious literary, artistic, 
     political, or scientific value as to minors.
       ``(7) Obscene.--The term `obscene' has the meaning 
     applicable to that term under section 1460 of title 18, 
     United States Code.
       ``(8) Sexual act and sexual contact.--The terms `sexual 
     act' and `sexual contact' have the meanings given those terms 
     in section 2246 of title 18, United States Code.
       ``(f) Severability.--If any provision of this section is 
     held invalid, the remainder of this section shall not be 
     affected thereby.''.

     SEC. 202. CONTINUATION OF AWARDS.

       Notwithstanding any other provision of this Act or the 
     Elementary and Secondary Education Act of 1965, in the case 
     of--
       (1) a person or entity that, prior to the date of enactment 
     of this Act, was awarded funds appropriated under the 
     Department of Education Appropriations Act, 2001 for new 
     teacher recruitment initiatives; or
       (2) a person or agency that, prior to the date of enactment 
     of this Act, was awarded a grant or contract under part K of 
     title X of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 8331 et seq.),

     the Secretary of Education shall continue to provide funds in 
     accordance with the terms of such award until the date on 
     which the award period terminates.
  TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

     SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT 
                   CHILDREN AND IMMIGRANT CHILDREN AND YOUTH.

       Title III (20 U.S.C. 6801 et seq.) is amended to read as 
     follows:
 ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

     ``SEC. 3001. AUTHORIZATIONS OF APPROPRIATIONS; CONDITION ON 
                   EFFECTIVENESS OF PARTS.

       ``(a) Authorizations of Appropriations.--
       ``(1) In general.--Subject to subsection (b), there are 
     authorized to be appropriated to carry out this title, except 
     for subpart 4 of part B, $750,000,000 for fiscal year 2002 
     and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(2) Emergency immigrant education program.--There are 
     authorized to be appropriated to carry out subpart 4 of part 
     B (when such part is in effect) such sums as may be necessary 
     for fiscal year 2002 and each of the 5 succeeding fiscal 
     years.
       ``(b) Conditions on Effectiveness of Parts A and B.--
       ``(1) Part a.--Part A shall be in effect for any fiscal 
     year for which the amount appropriated under paragraphs (1) 
     and (2) of subsection (a) equals or exceeds $650,000,000.
       ``(2) Part b.--Part B shall be in effect only for a fiscal 
     year for which part A is not in effect.
       ``(c) References.--In any fiscal year for which part A is 
     in effect, references in Federal law (other than this title) 
     to part B shall be considered to be references to part A. In 
     any fiscal year for which part B is in effect, references in 
     Federal law (other than this title) to part A shall be 
     considered to be references to part B.

   ``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
                        ACADEMIC ACHIEVEMENT ACT

     ``SEC. 3101. SHORT TITLE.

       ``This part may be cited as the `English Language 
     Acquisition, Language Enhancement, and Academic Achievement 
     Act'.

     ``SEC. 3102. PURPOSES.

       ``The purposes of this part are--
       ``(1) to help ensure that children who are limited English 
     proficient, including immigrant children and youth, attain 
     English proficiency, develop high levels of academic 
     attainment in English, and meet the same challenging State 
     academic content and student academic achievement standards 
     as all children are expected to meet;
       ``(2) to assist all limited English proficient children, 
     including immigrant children and youth, to achieve at high 
     levels in the core academic subjects so that those children 
     can meet the same challenging State academic content and 
     student academic achievement standards as all children are 
     expected to meet, consistent with section 1111(b)(1);
       ``(3) to develop high-quality language instruction 
     educational programs designed to assist

[[Page 25695]]

     State educational agencies, local educational agencies, and 
     schools in teaching limited English proficient children and 
     serving immigrant children and youth;
       ``(4) to assist State educational agencies and local 
     educational agencies to develop and enhance their capacity to 
     provide high-quality instructional programs designed to 
     prepare limited English proficient children, including 
     immigrant children and youth, to enter all-English 
     instruction settings;
       ``(5) to assist State educational agencies, local 
     educational agencies, and schools to build their capacity to 
     establish, implement, and sustain language instruction 
     educational programs and programs of English language 
     development for limited English proficient children;
       ``(6) to promote parental and community participation in 
     language instruction educational programs for the parents and 
     communities of limited English proficient children;
       ``(7) to streamline language instruction educational 
     programs into a program carried out through formula grants to 
     State educational agencies and local educational agencies to 
     help limited English proficient children, including immigrant 
     children and youth, develop proficiency in English, while 
     meeting challenging State academic content and student 
     academic achievement standards;
       ``(8) to hold State educational agencies, local educational 
     agencies, and schools accountable for increases in English 
     proficiency and core academic content knowledge of limited 
     English proficient children by requiring--
       ``(A) demonstrated improvements in the English proficiency 
     of limited English proficient children each fiscal year; and
       ``(B) adequate yearly progress for limited English 
     proficient children, including immigrant children and youth, 
     as described in section 1111(b)(2)(B); and
       ``(9) to provide State educational agencies and local 
     educational agencies with the flexibility to implement 
     language instruction educational programs, based on 
     scientifically based research on teaching limited English 
     proficient children, that the agencies believe to be the most 
     effective for teaching English.

``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

     ``SEC. 3111. FORMULA GRANTS TO STATES.

       ``(a) In General.--In the case of each State educational 
     agency having a plan approved by the Secretary for a fiscal 
     year under section 3113, the Secretary shall make a grant for 
     the year to the agency for the purposes specified in 
     subsection (b). The grant shall consist of the allotment 
     determined for the State educational agency under subsection 
     (c).
       ``(b) Use of Funds.--
       ``(1) Subgrants to eligible entities.--The Secretary may 
     make a grant under subsection (a) only if the State 
     educational agency involved agrees to expend at least 95 
     percent of the State educational agency's allotment under 
     subsection (c) for a fiscal year--
       ``(A) to award subgrants, from allocations under section 
     3114, to eligible entities to carry out the activities 
     described in section 3115 (other than subsection (e)); and
       ``(B) to award subgrants under section 3114(d)(1) to 
     eligible entities that are described in that section to carry 
     out the activities described in section 3115(e).
       ``(2) State activities.--Subject to paragraph (3), each 
     State educational agency receiving a grant under subsection 
     (a) may reserve not more than 5 percent of the agency's 
     allotment under subsection (c) to carry out one or more of 
     the following activities:
       ``(A) Professional development activities, and other 
     activities, that assist personnel in meeting State and local 
     certification and licensing requirements for teaching limited 
     English proficient children.
       ``(B) Planning, evaluation, administration, and interagency 
     coordination related to the subgrants referred to in 
     paragraph (1).
       ``(C) Providing technical assistance and other forms of 
     assistance to eligible entities that are receiving subgrants 
     from a State educational agency under this subpart, including 
     assistance in--
       ``(i) identifying and implementing language instruction 
     educational programs and curricula that are based on 
     scientifically based research on teaching limited English 
     proficient children;
       ``(ii) helping limited English proficient children meet the 
     same challenging State academic content and student academic 
     achievement standards as all children are expected to meet;
       ``(iii) identifying or developing, and implementing, 
     measures of English proficiency; and
       ``(iv) promoting parental and community participation in 
     programs that serve limited English proficient children.
       ``(D) Providing recognition, which may include providing 
     financial awards, to subgrantees that have exceeded their 
     annual measurable achievement objectives pursuant to section 
     3122.
       ``(3) Administrative expenses.--From the amount reserved 
     under paragraph (2), a State educational agency may use not 
     more than 60 percent of such amount or $175,000, whichever is 
     greater, for the planning and administrative costs of 
     carrying out paragraphs (1) and (2).
       ``(c) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     section 3001(a) for each fiscal year, the Secretary shall 
     reserve--
       ``(A) 0.5 percent or $5,000,000 of such amount, whichever 
     is greater, for payments to eligible entities that are 
     defined under section 3112(a) for activities, approved by the 
     Secretary, consistent with this subpart;
       ``(B) 0.5 percent of such amount for payments to outlying 
     areas, to be allotted in accordance with their respective 
     needs for assistance under this subpart, as determined by the 
     Secretary, for activities, approved by the Secretary, 
     consistent with this subpart;
       ``(C) 6.5 percent of such amount for national activities 
     under sections 3131 and 3303, except that not more than 0.5 
     percent of such amount shall be reserved for evaluation 
     activities conducted by the Secretary and not more than 
     $2,000,000 of such amount may be reserved for the National 
     Clearinghouse for English Language Acquisition and Language 
     Instruction Educational Programs described in section 3303; 
     and
       ``(D) such sums as may be necessary to make continuation 
     awards under paragraph (2).
       ``(2) Continuation awards.--
       ``(A) In general.--Before making allotments to State 
     educational agencies under paragraph (3) for any fiscal year, 
     the Secretary shall use the sums reserved under paragraph 
     (1)(D) to make continuation awards to recipients who received 
     grants or fellowships for the fiscal year preceding any 
     fiscal year described in section 3001(b)(1)(A) under--
       ``(i) subparts 1 and 3 of part A of title VII (as in effect 
     on the day before the date of enactment of the No Child Left 
     Behind Act of 2001); or
       ``(ii) subparts 1 and 3 of part B of this title.
       ``(B) Use of funds.--The Secretary shall make the awards in 
     order to allow such recipients to receive awards for the 
     complete period of their grants or fellowships under the 
     appropriate subparts.
       ``(3) State allotments.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     from the amount appropriated under section 3001(a) for each 
     fiscal year that remains after making the reservations under 
     paragraph (1), the Secretary shall allot to each State 
     educational agency having a plan approved under section 
     3113(c)--
       ``(i) an amount that bears the same relationship to 80 
     percent of the remainder as the number of limited English 
     proficient children in the State bears to the number of such 
     children in all States; and
       ``(ii) an amount that bears the same relationship to 20 
     percent of the remainder as the number of immigrant children 
     and youth in the State bears to the number of such children 
     and youth in all States.
       ``(B) Minimum allotments.--No State educational agency 
     shall receive an allotment under this paragraph that is less 
     than $500,000.
       ``(C) Reallotment.--If any State educational agency 
     described in subparagraph (A) does not submit a plan to the 
     Secretary for a fiscal year, or submits a plan (or any 
     amendment to a plan) that the Secretary, after reasonable 
     notice and opportunity for a hearing, determines does not 
     satisfy the requirements of this subpart, the Secretary--
       ``(i) shall endeavor to make the State's allotment 
     available on a competitive basis to specially qualified 
     agencies within the State to satisfy the requirements of 
     section 3115 (and any additional requirements that the 
     Secretary may impose), consistent with the purposes of such 
     section, and to carry out required and authorized activities 
     under such section; and
       ``(ii) shall reallot any portion of such allotment 
     remaining after the application of clause (i) to the 
     remaining State educational agencies in accordance with 
     subparagraph (A).
       ``(D) Special rule for puerto rico.--The total amount 
     allotted to Puerto Rico for any fiscal year under 
     subparagraph (A) shall not exceed 0.5 percent of the total 
     amount allotted to all States for that fiscal year.
       ``(4) Use of data for determinations.--
       ``(A) In general.--In making State allotments under 
     paragraph (3), for the purpose of determining the number of 
     limited English proficient children in a State and in all 
     States, and the number of immigrant children and youth 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 children and youth.
       ``(B) Special rule.--
       ``(i) First 2 years.--In making determinations under 
     subparagraph (A) for the 2 fiscal years following the date of 
     enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall determine the number of limited English 
     proficient children in a State and in all States, and the 
     number of immigrant children and youth in a State and in all 
     States, using data available from the Bureau of Census or 
     submitted by the States to the Secretary.
       ``(ii) Subsequent years.--For subsequent fiscal years, the 
     Secretary shall determine the number of limited English 
     proficient children in a State and in all States, and the 
     number of immigrant children and youth in a State and in all 
     States, using the more accurate of--

       ``(I) the data available from the American Community Survey 
     available from the Department of Commerce; or
       ``(II) the number of children being assessed for English 
     proficiency in a State as required under section 1111(b)(7).

     ``SEC. 3112. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN 
                   SCHOOL.

       ``(a) Eligible Entities.--For the purpose of carrying out 
     programs under this part for individuals served by elementary 
     schools, secondary schools, and postsecondary schools 
     operated predominately for Native American children 
     (including Alaska Native children), the following shall be 
     considered to be an eligible entity:

[[Page 25696]]

       ``(1) An Indian tribe.
       ``(2) A tribally sanctioned educational authority.
       ``(3) A Native Hawaiian or Native American Pacific Islander 
     native language educational organization.
       ``(4) An elementary school or secondary school that is 
     operated or funded by the Bureau of Indian Affairs, or a 
     consortium of such schools.
       ``(5) An elementary school or secondary school operated 
     under a contract with or grant from the Bureau of Indian 
     Affairs, in consortium with another such school or a tribal 
     or community organization.
       ``(6) An elementary school or secondary school operated by 
     the Bureau of Indian Affairs and an institution of higher 
     education, in consortium with an elementary school or 
     secondary school operated under a contract with or grant from 
     the Bureau of Indian Affairs or a tribal or community 
     organization.
       ``(b) Submission of Applications for Assistance.--
     Notwithstanding any other provision of this part, an entity 
     that is considered to be an eligible entity under subsection 
     (a), and that desires to receive Federal financial assistance 
     under this subpart, shall submit an application to the 
     Secretary.
       ``(c) Special Rule.--An eligible entity described in 
     subsection (a) that receives Federal financial assistance 
     pursuant to this section shall not be eligible to receive a 
     subgrant under section 3114.

     ``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

       ``(a) Plan Required.--Each State educational agency and 
     specially qualified agency desiring a grant under this 
     subpart shall submit a plan to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       ``(b) Contents.--Each plan submitted under subsection (a) 
     shall--
       ``(1) describe the process that the agency will use in 
     making subgrants to eligible entities under section 
     3114(d)(1);
       ``(2) describe how the agency will establish standards and 
     objectives for raising the level of English proficiency that 
     are derived from the 4 recognized domains of speaking, 
     listening, reading, and writing, and that are aligned with 
     achievement of the challenging State academic content and 
     student academic achievement standards described in section 
     1111(b)(1);
       ``(3) contain an assurance that--
       ``(A) in the case of a State educational agency, the agency 
     consulted with local educational agencies, education-related 
     community groups and nonprofit organizations, parents, 
     teachers, school administrators, and researchers, in 
     developing the annual measurable achievement objectives 
     described in section 3122;
       ``(B) in the case of a specially qualified agency, the 
     agency consulted with education-related community groups and 
     nonprofit organizations, parents, teachers, and researchers, 
     in developing the annual measurable achievement objectives 
     described in section 3122;
       ``(C) the agency will ensure that eligible entities 
     receiving a subgrant under this subpart comply with the 
     requirement in section 1111(b)(7) to annually assess in 
     English children who have been in the United States for 3 or 
     more consecutive years;
       ``(D) the agency will ensure that eligible entities 
     receiving a subgrant under this subpart annually assess the 
     English proficiency of all limited English proficient 
     children participating in a program funded under this 
     subpart, consistent with section 1111(b)(7);
       ``(E) in awarding subgrants under section 3114, the agency 
     will address the needs of school systems of all sizes and in 
     all geographic areas, including school systems with rural and 
     urban schools;
       ``(F) subgrants to eligible entities under section 
     3114(d)(1) will be of sufficient size and scope to allow such 
     entities to carry out high-quality language instruction 
     educational programs for limited English proficient children; 
     and
       ``(G) the agency will require an eligible entity receiving 
     a subgrant under this subpart to use the subgrant in ways 
     that will build such recipient's capacity to continue to 
     offer high-quality language instruction educational programs 
     that assist limited English proficient children in meeting 
     challenging State academic content and student academic 
     achievement standards once assistance under this subpart is 
     no longer available;
       ``(4) describe how the agency will coordinate its programs 
     and activities under this subpart with its other programs and 
     activities under this Act and other Acts, as appropriate;
       ``(5) describe how the agency will hold local educational 
     agencies, eligible entities, elementary schools, and 
     secondary schools accountable for--
       ``(A) meeting all annual measurable achievement objectives 
     described in section 3122;
       ``(B) making adequate yearly progress for limited English 
     proficient children, as described in section 1111(b)(2)(B); 
     and
       ``(C) achieving the purposes of this part; and
       ``(6) describe how eligible entities in the State will be 
     given the flexibility to teach limited English proficient 
     children--
       ``(A) using a language instruction curriculum that is tied 
     to scientifically based research on teaching limited English 
     proficient children and that has been demonstrated to be 
     effective; and
       ``(B) in the manner the eligible entities determine to be 
     the most effective.
       ``(c) Approval.--The Secretary, after using a peer review 
     process, shall approve a plan submitted under subsection (a) 
     if the plan meets the requirements of this section.
       ``(d) Duration of Plan.--
       ``(1) In general.--Each plan submitted by a State 
     educational agency or specially qualified agency and approved 
     under subsection (c) shall--
       ``(A) remain in effect for the duration of the agency's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the agency, 
     as necessary, to reflect changes to the agency's strategies 
     and programs carried out under this part.
       ``(2) Additional information.--
       ``(A) Amendments.--If the State educational agency or 
     specially qualified agency amends the plan, the agency shall 
     submit such amendment to the Secretary.
       ``(B) Approval.--The Secretary shall approve such amendment 
     to an approved plan, unless the Secretary determines that the 
     amendment will result in the agency not meeting the 
     requirements, or fulfilling the purposes, of this part.
       ``(e) Consolidated Plan.--A plan submitted under subsection 
     (a) may be submitted as part of a consolidated plan under 
     section 9302.
       ``(f) Secretary Assistance.--The Secretary shall provide 
     technical assistance, if requested, in the development of 
     English proficiency standards, objectives, and assessments.

     ``SEC. 3114. WITHIN-STATE ALLOCATIONS.

       ``(a) In General.--After making the reservation required 
     under subsection (d)(1), each State educational agency 
     receiving a grant under section 3111(c)(3) shall award 
     subgrants for a fiscal year by allocating to each eligible 
     entity in the State having a plan approved under section 3116 
     an amount that bears the same relationship to the amount 
     received under the grant and remaining after making such 
     reservation as the population of limited English proficient 
     children in schools served by the eligible entity bears to 
     the population of limited English proficient children in 
     schools served by all eligible entities in the State.
       ``(b) Limitation.--A State educational agency shall not 
     award a subgrant from an allocation made under subsection (a) 
     if the amount of such subgrant would be less than $10,000.
       ``(c) Reallocation.--Whenever a State educational agency 
     determines that an amount from an allocation made to an 
     eligible entity under subsection (a) for a fiscal year will 
     not be used by the entity for the purpose for which the 
     allocation was made, the agency shall, in accordance with 
     such rules as it determines to be appropriate, reallocate 
     such amount, consistent with such subsection, to other 
     eligible entities in the State that the agency determines 
     will use the amount to carry out that purpose.
       ``(d) Required Reservation.--A State educational agency 
     receiving a grant under this subpart for a fiscal year--
       ``(1) shall reserve not more than 15 percent of the 
     agency's allotment under section 3111(c)(3) to award 
     subgrants to eligible entities in the State that have 
     experienced a significant increase, as compared to the 
     average of the 2 preceding fiscal years, in the percentage or 
     number of immigrant children and youth, who have enrolled, 
     during the fiscal year preceding the fiscal year for which 
     the subgrant is made, in public and nonpublic elementary 
     schools and secondary schools in the geographic areas under 
     the jurisdiction of, or served by, such entities; and
       ``(2) in awarding subgrants under paragraph (1)--
       ``(A) shall equally consider eligible entities that satisfy 
     the requirement of such paragraph but have limited or no 
     experience in serving immigrant children and youth; and
       ``(B) shall consider the quality of each local plan under 
     section 3116 and ensure that each subgrant is of sufficient 
     size and scope to meet the purposes of this part.

     ``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.

       ``(a) Purposes of Subgrants.--A State educational agency 
     may make a subgrant to an eligible entity from funds received 
     by the agency under this subpart only if the entity agrees to 
     expend the funds to improve the education of limited English 
     proficient children, by assisting the children to learn 
     English and meet challenging State academic content and 
     student academic achievement standards. In carrying out 
     activities with such funds, the entity shall use approaches 
     and methodologies based on scientifically based research on 
     teaching limited English proficient children and immigrant 
     children and youth for the following purposes:
       ``(1) Developing and implementing new language instruction 
     educational programs and academic content instruction 
     programs for such children, and such children and youth, 
     including programs of early childhood education, elementary 
     school programs, and secondary school programs.
       ``(2) Carrying out highly focused, innovative, locally 
     designed activities to expand or enhance existing language 
     instruction educational programs and academic content 
     instruction programs for such children, and such children and 
     youth.
       ``(3) Implementing, within an individual school, schoolwide 
     programs for restructuring, reforming, and upgrading all 
     relevant programs, activities, and operations relating to 
     language instruction educational programs and academic 
     content instruction for such children, and such children and 
     youth.
       ``(4) Implementing, within the entire jurisdiction of a 
     local educational agency, agencywide programs for 
     restructuring, reforming, and upgrading all relevant 
     programs, activities, and

[[Page 25697]]

     operations relating to language instruction educational 
     programs and academic content instruction for such children, 
     and such children and youth.
       ``(b) Administrative Expenses.--Each eligible entity 
     receiving funds under section 3114(a) for a fiscal year may 
     use not more than 2 percent of such funds for the cost of 
     administering this subpart.
       ``(c) Required Subgrantee Activities.--An eligible entity 
     receiving funds under section 3114(a) shall use the funds--
       ``(1) to increase the English proficiency of limited 
     English proficient children by providing high-quality 
     language instruction educational programs that are based on 
     scientifically based research demonstrating the effectiveness 
     of the programs in increasing--
       ``(A) English proficiency; and
       ``(B) student academic achievement in the core academic 
     subjects; and
       ``(2) to provide high-quality professional development to 
     classroom teachers (including teachers in classroom settings 
     that are not the settings of language instruction educational 
     programs), principals, administrators, and other school or 
     community-based organizational personnel, that is--
       ``(A) designed to improve the instruction and assessment of 
     limited English proficient children;
       ``(B) designed to enhance the ability of such teachers to 
     understand and use curricula, assessment measures, and 
     instruction strategies for limited English proficient 
     children;
       ``(C) based on scientifically based research demonstrating 
     the effectiveness of the professional development in 
     increasing children's English proficiency or substantially 
     increasing the subject matter knowledge, teaching knowledge, 
     and teaching skills of such teachers; and
       ``(D) of sufficient intensity and duration (which shall not 
     include activities such as one-day or short-term workshops 
     and conferences) to have a positive and lasting impact on the 
     teachers' performance in the classroom, except that this 
     subparagraph shall not apply to an activity that is one 
     component of a long-term, comprehensive professional 
     development plan established by a teacher and the teacher's 
     supervisor based on an assessment of the needs of the 
     teacher, the supervisor, the students of the teacher, and any 
     local educational agency employing the teacher.
       ``(d) Authorized Subgrantee Activities.--Subject to 
     subsection (c), an eligible entity receiving funds under 
     section 3114(a) may use the funds to achieve one of the 
     purposes described in subsection (a) by undertaking one or 
     more of the following activities:
       ``(1) Upgrading program objectives and effective 
     instruction strategies.
       ``(2) Improving the instruction program for limited English 
     proficient children by identifying, acquiring, and upgrading 
     curricula, instruction materials, educational software, and 
     assessment procedures.
       ``(3) Providing--
       ``(A) tutorials and academic or vocational education for 
     limited English proficient children; and
       ``(B) intensified instruction.
       ``(4) Developing and implementing elementary school or 
     secondary school language instruction educational programs 
     that are coordinated with other relevant programs and 
     services.
       ``(5) Improving the English proficiency and academic 
     achievement of limited English proficient children.
       ``(6) Providing community participation programs, family 
     literacy services, and parent outreach and training 
     activities to limited English proficient children and their 
     families--
       ``(A) to improve the English language skills of limited 
     English proficient children; and
       ``(B) to assist parents in helping their children to 
     improve their academic achievement and becoming active 
     participants in the education of their children.
       ``(7) Improving the instruction of limited English 
     proficient children by providing for--
       ``(A) the acquisition or development of educational 
     technology or instructional materials;
       ``(B) access to, and participation in, electronic networks 
     for materials, training, and communication; and
       ``(C) incorporation of the resources described in 
     subparagraphs (A) and (B) into curricula and programs, such 
     as those funded under this subpart.
       ``(8) Carrying out other activities that are consistent 
     with the purposes of this section.
       ``(e) Activities by Agencies Experiencing Substantial 
     Increases in Immigrant Children and Youth.--
       ``(1) In general.--An eligible entity receiving funds under 
     section 3114(d)(1) shall use the funds to pay for activities 
     that provide enhanced instructional opportunities for 
     immigrant children and youth, which may include--
       ``(A) family literacy, parent outreach, and training 
     activities designed to assist parents to become active 
     participants in the education of their children;
       ``(B) support for personnel, including teacher aides who 
     have been specifically trained, or are being trained, to 
     provide services to immigrant children and youth;
       ``(C) provision of tutorials, mentoring, and academic or 
     career counseling for immigrant children and youth;
       ``(D) identification and acquisition of curricular 
     materials, educational software, and technologies to be used 
     in the program carried out with funds;
       ``(E) basic instruction services that are directly 
     attributable to the presence in the school district involved 
     of immigrant children and youth, including the payment of 
     costs of providing additional classroom supplies, costs of 
     transportation, or such other costs as are directly 
     attributable to such additional basic instruction services;
       ``(F) other instruction services that are designed to 
     assist immigrant children and youth to achieve in elementary 
     schools and secondary schools in the United States, such as 
     programs of introduction to the educational system and civics 
     education; and
       ``(G) activities, coordinated with community-based 
     organizations, institutions of higher education, private 
     sector entities, or other entities with expertise in working 
     with immigrants, to assist parents of immigrant children and 
     youth by offering comprehensive community services.
       ``(2) Duration of subgrants.--The duration of a subgrant 
     made by a State educational agency under section 3114(d)(1) 
     shall be determined by the agency in its discretion.
       ``(f) Selection of Method of Instruction.--
       ``(1) In general.--To receive a subgrant from a State 
     educational agency under this subpart, an eligible entity 
     shall select one or more methods or forms of instruction to 
     be used in the programs and activities undertaken by the 
     entity to assist limited English proficient children to 
     attain English proficiency and meet challenging State 
     academic content and student academic achievement standards.
       ``(2) Consistency.--Such selection shall be consistent with 
     sections 3125 through 3127.
       ``(g) Supplement, Not Supplant.--Federal funds made 
     available under this subpart shall be used so as to 
     supplement the level of Federal, State, and local public 
     funds that, in the absence of such availability, would have 
     been expended for programs for limited English proficient 
     children and immigrant children and youth and in no case to 
     supplant such Federal, State, and local public funds.

     ``SEC. 3116. LOCAL PLANS.

       ``(a) Plan Required.--Each eligible entity desiring a 
     subgrant from the State educational agency under section 3114 
     shall submit a plan to the State educational agency at such 
     time, in such manner, and containing such information as the 
     State educational agency may require.
       ``(b) Contents.--Each plan submitted under subsection (a) 
     shall--
       ``(1) describe the programs and activities proposed to be 
     developed, implemented and administered under the subgrant;
       ``(2) describe how the eligible entity will use the 
     subgrant funds to meet all annual measurable achievement 
     objectives described in section 3122;
       ``(3) describe how the eligible entity will hold elementary 
     schools and secondary schools receiving funds under this 
     subpart accountable for--
       ``(A) meeting the annual measurable achievement objectives 
     described in section 3122;
       ``(B) making adequate yearly progress for limited English 
     proficient children, as described in section 1111(b)(2)(B); 
     and
       ``(C) annually measuring the English proficiency of limited 
     English proficient children, so that such children served by 
     the programs carried out under this part develop proficiency 
     in English while meeting State academic content and student 
     academic achievement standards as required by section 
     1111(b)(1);
       ``(4) describe how the eligible entity will promote 
     parental and community participation in programs for limited 
     English proficient children;
       ``(5) contain an assurance that the eligible entity 
     consulted with teachers, researchers, school administrators, 
     and parents, and, if appropriate, with education-related 
     community groups and nonprofit organizations, and 
     institutions of higher education, in developing such plan; 
     and
       ``(6) describe how language instruction educational 
     programs carried out under the subgrant will ensure that 
     limited English proficient children being served by the 
     programs develop English proficiency.
       ``(c) Teacher English Fluency.--Each eligible entity 
     receiving a subgrant under section 3114 shall include in its 
     plan a certification that all teachers in any language 
     instruction educational program for limited English 
     proficient children that is, or will be, funded under this 
     part are fluent in English and any other language used for 
     instruction, including having written and oral communications 
     skills.
       ``(d) Other Requirements for Approval.--Each local plan 
     shall also contain assurances that--
       ``(1) each local educational agency that is included in the 
     eligible entity is complying with section 3302 prior to, and 
     throughout, each school year;
       ``(2) the eligible entity annually will assess the English 
     proficiency of all children with limited English proficiency 
     participating in programs funded under this part;
       ``(3) the eligible entity has based its proposed plan on 
     scientifically based research on teaching limited English 
     proficient children;
       ``(4) the eligible entity will ensure that the programs 
     will enable children to speak, read, write, and comprehend 
     the English language and meet challenging State academic 
     content and student academic achievement standards; and
       ``(5) the eligible entity is not in violation of any State 
     law, including State constitutional law, regarding the 
     education of limited English proficient children, consistent 
     with sections 3126 and 3127.

             ``Subpart 2--Accountability and Administration

     ``SEC. 3121. EVALUATIONS.

       ``(a) In General.--Each eligible entity that receives a 
     subgrant from a State educational

[[Page 25698]]

     agency under subpart 1 shall provide such agency, at the 
     conclusion of every second fiscal year during which the 
     subgrant is received, with an evaluation, in a form 
     prescribed by the agency, that includes--
       ``(1) a description of the programs and activities 
     conducted by the entity with funds received under subpart 1 
     during the 2 immediately preceding fiscal years;
       ``(2) a description of the progress made by children in 
     learning the English language and meeting challenging State 
     academic content and student academic achievement standards;
       ``(3) the number and percentage of children in the programs 
     and activities attaining English proficiency by the end of 
     each school year, as determined by a valid and reliable 
     assessment of English proficiency; and
       ``(4) a description of the progress made by children in 
     meeting challenging State academic content and student 
     academic achievement standards for each of the 2 years after 
     such children are no longer receiving services under this 
     part.
       ``(b) Use of Evaluation.--An evaluation provided by an 
     eligible entity under subsection (a) shall be used by the 
     entity and the State educational agency--
       ``(1) for improvement of programs and activities;
       ``(2) to determine the effectiveness of programs and 
     activities in assisting children who are limited English 
     proficient to attain English proficiency (as measured 
     consistent with subsection (d)) and meet challenging State 
     academic content and student academic achievement standards; 
     and
       ``(3) in determining whether or not to continue funding for 
     specific programs or activities.
       ``(c) Evaluation Components.--An evaluation provided by an 
     eligible entity under subsection (a) shall--
       ``(1) provide an evaluation of children enrolled in a 
     program or activity conducted by the entity using funds under 
     subpart 1 (including the percentage of children) who--
       ``(A) are making progress in attaining English proficiency, 
     including the percentage of children who have achieved 
     English proficiency;
       ``(B) have transitioned into classrooms not tailored to 
     limited English proficient children, and have a sufficient 
     level of English proficiency to permit them to achieve in 
     English and transition into classrooms not tailored to 
     limited English proficient children;
       ``(C) are meeting the same challenging State academic 
     content and student academic achievement standards as all 
     children are expected to meet; and
       ``(D) are not receiving waivers for the reading or language 
     arts assessments under section 1111(b)(3)(C); and
       ``(2) include such other information as the State 
     educational agency may require.
       ``(d) Evaluation Measures.--A State shall approve 
     evaluation measures for use under subsection (c) that are 
     designed to assess--
       ``(1) the progress of children in attaining English 
     proficiency, including a child's level of comprehension, 
     speaking, listening, reading, and writing skills in English;
       ``(2) student attainment of challenging State student 
     academic achievement standards on assessments described in 
     section 1111(b)(3); and
       ``(3) progress in meeting the annual measurable achievement 
     objectives described in section 3122.
       ``(e) Special Rule for Specially Qualified Agencies.--Each 
     specially qualified agency receiving a grant under this part 
     shall provide the evaluations described in subsection (a) to 
     the Secretary subject to the same requirements as apply to 
     eligible entities providing such evaluations to State 
     educational agencies under such subsection.

     ``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.

       ``(a) Achievement Objectives.--
       ``(1) In general.--Each State educational agency or 
     specially qualified agency receiving a grant under subpart 1 
     shall develop annual measurable achievement objectives for 
     limited English proficient children served under this part 
     that relate to such children's development and attainment of 
     English proficiency while meeting challenging State academic 
     content and student academic achievement standards as 
     required by section 1111(b)(1).
       ``(2) Development of objectives.--Such annual measurable 
     achievement objectives shall be developed in a manner that--
       ``(A) reflects the amount of time an individual child has 
     been enrolled in a language instruction educational program; 
     and
       ``(B) uses consistent methods and measurements to reflect 
     the increases described in subparagraphs (A)(i), (A)(ii), and 
     (B) of paragraph (3).
       ``(3) Contents.--Such annual measurable achievement 
     objectives--
       ``(A) shall include--
       ``(i) at a minimum, annual increases in the number or 
     percentage of children making progress in learning English;
       ``(ii) at a minimum, annual increases in the number or 
     percentage of children attaining English proficiency by the 
     end of each school year, as determined by a valid and 
     reliable assessment of English proficiency consistent with 
     section 1111(b)(7); and
       ``(iii) making adequate yearly progress for limited English 
     proficient children as described in section 1111(b)(2)(B); 
     and
       ``(B) at the discretion of the agency, may include the 
     number or percentage of children not receiving waivers for 
     reading or language arts assessments under section 
     1111(b)(3)(C), but this achievement objective shall not be 
     applied to an eligible entity that, in a given school year--
       ``(i) has experienced a large increase in limited English 
     proficient children or immigrant children and youth;
       ``(ii) enrolls a statistically significant number of 
     immigrant children and youth from countries where such 
     children and youth had little or no access to formal 
     education; or
       ``(iii) has a statistically significant number of immigrant 
     children and youth who have fled from war or natural 
     disaster.
       ``(b) Accountability.--
       ``(1) For states.--Each State educational agency receiving 
     a grant under subpart 1 shall hold eligible entities 
     receiving a subgrant under such subpart accountable for 
     meeting the annual measurable achievement objectives under 
     subsection (a), including making adequate yearly progress for 
     limited English proficient children.
       ``(2) Improvement plan.--If a State educational agency 
     determines, based on the annual measurable achievement 
     objectives described in subsection (a), that an eligible 
     entity has failed to make progress toward meeting such 
     objectives for 2 consecutive years, the agency shall require 
     the entity to develop an improvement plan that will ensure 
     that the entity meets such objectives. The improvement plan 
     shall specifically address the factors that prevented the 
     entity from achieving such objectives.
       ``(3) Technical assistance.--During the development of the 
     improvement plan described in paragraph (2), and throughout 
     its implementation, the State educational agency shall--
       ``(A) provide technical assistance to the eligible entity;
       ``(B) provide technical assistance, if applicable, to 
     schools served by such entity under subpart 1 that need 
     assistance to enable the schools to meet the annual 
     measurable achievement objectives described in subsection 
     (a);
       ``(C) develop, in consultation with the entity, 
     professional development strategies and activities, based on 
     scientifically based research, that the agency will use to 
     meet such objectives;
       ``(D) require such entity to utilize such strategies and 
     activities; and
       ``(E) develop, in consultation with the entity, a plan to 
     incorporate strategies and methodologies, based on 
     scientifically based research, to improve the specific 
     program or method of instruction provided to limited English 
     proficient children.
       ``(4) Accountability.--If a State educational agency 
     determines that an eligible entity has failed to meet the 
     annual measurable achievement objectives described in 
     subsection (a) for 4 consecutive years, the agency shall--
       ``(A) require such entity to modify the entity's 
     curriculum, program, and method of instruction; or
       ``(B)(i) make a determination whether the entity shall 
     continue to receive funds related to the entity's failure to 
     meet such objectives; and
       ``(ii) require such entity to replace educational personnel 
     relevant to the entity's failure to meet such objectives.
       ``(c) Special Rule for Specially Qualified Agencies.--The 
     Secretary shall hold specially qualified agencies receiving a 
     grant under this subpart accountable for meeting the annual 
     measurable achievement objectives described in subsection (a) 
     in the same manner as State educational agencies hold 
     eligible entities accountable under subsection (b).

     ``SEC. 3123. REPORTING REQUIREMENTS.

       ``(a) States.--Based upon the evaluations provided to a 
     State educational agency under section 3121, each such agency 
     that receives a grant under this part shall prepare and 
     submit every second year to the Secretary a report on 
     programs and activities carried out by the State educational 
     agency under this part and the effectiveness of such programs 
     and activities in improving the education provided to 
     children who are limited English proficient.
       ``(b) Secretary.--Every second year, the Secretary 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 
     report--
       ``(1) on programs and activities carried out to serve 
     limited English proficient children under this part, and the 
     effectiveness of such programs and activities in improving 
     the academic achievement and English proficiency of children 
     who are limited English proficient;
       ``(2) on the types of language instruction educational 
     programs used by local educational agencies or eligible 
     entities receiving funding under this part to teach limited 
     English proficient children;
       ``(3) containing a critical synthesis of data reported by 
     eligible entities to States under section 3121(a);
       ``(4) containing a description of technical assistance and 
     other assistance provided by State educational agencies under 
     section 3111(b)(2)(C);
       ``(5) containing an estimate of the number of certified or 
     licensed teachers working in language instruction educational 
     programs and educating limited English proficient children, 
     and an estimate of the number of such teachers that will be 
     needed for the succeeding 5 fiscal years;
       ``(6) containing the major findings of scientifically based 
     research carried out under this part;
       ``(7) containing the number of programs or activities, if 
     any, that were terminated because the entities carrying out 
     the programs or activities were not able to reach program 
     goals;
       ``(8) containing the number of limited English proficient 
     children served by eligible entities receiving funding under 
     this part who were

[[Page 25699]]

     transitioned out of language instruction educational programs 
     funded under this part into classrooms where instruction is 
     not tailored for limited English proficient children; and
       ``(9) containing other information gathered from the 
     evaluations from specially qualified agencies and other 
     reports submitted to the Secretary under this title when 
     applicable.

     ``SEC. 3124. COORDINATION WITH RELATED PROGRAMS.

       ``In order to maximize Federal efforts aimed at serving the 
     educational needs of children of limited English proficiency, 
     the Secretary shall coordinate and ensure close cooperation 
     with other entities carrying out programs serving language-
     minority and limited English proficient children that are 
     administered by the Department and other agencies.

     ``SEC. 3125. RULES OF CONSTRUCTION.

       ``Nothing in this part shall be construed--
       ``(1) to prohibit a local educational agency from serving 
     limited English proficient children simultaneously with 
     children with similar educational needs, in the same 
     educational settings where appropriate;
       ``(2) to require a State or a local educational agency to 
     establish, continue, or eliminate any particular type of 
     instructional program for limited English proficient 
     children; or
       ``(3) to limit the preservation or use of Native American 
     languages.

     ``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW.

       ``Nothing in this part shall be construed to negate or 
     supersede State law, or the legal authority under State law 
     of any State agency, State entity, or State public official, 
     over programs that are under the jurisdiction of the State 
     agency, entity, or official.

     ``SEC. 3127. CIVIL RIGHTS.

       ``Nothing in this part shall be construed in a manner 
     inconsistent with any Federal law guaranteeing a civil right.

     ``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

     ``SEC. 3129. PROHIBITION.

       ``In carrying out this part, the Secretary shall neither 
     mandate nor preclude the use of a particular curricular or 
     pedagogical approach to educating limited English proficient 
     children.

                    ``Subpart 3--National Activities

     ``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT.

       ``The Secretary shall use funds made available under 
     section 3111(c)(1)(C) to award grants on a competitive basis, 
     for a period of not more than 5 years, to institutions of 
     higher education (in consortia with State educational 
     agencies or local educational agencies) to provide for 
     professional development activities that will improve 
     classroom instruction for limited English proficient children 
     and assist educational personnel working with such children 
     to meet high professional standards, including standards for 
     certification and licensure as teachers who work in language 
     instruction educational programs or serve limited English 
     proficient children. Grants awarded under this subsection may 
     be used--
       ``(1) for preservice professional development programs that 
     will assist local schools and institutions of higher 
     education to upgrade the qualifications and skills of 
     educational personnel who are not certified or licensed, 
     especially educational paraprofessionals;
       ``(2) for the development of curricula appropriate to the 
     needs of the consortia participants involved; and
       ``(3) in conjunction with other Federal need-based student 
     financial assistance programs, for financial assistance, and 
     costs related to tuition, fees, and books for enrolling in 
     courses required to complete the degree involved, to meet 
     certification or licensing requirements for teachers who work 
     in language instruction educational programs or serve limited 
     English proficient children.

                        ``Subpart 4--Definitions

     ``SEC. 3141. ELIGIBLE ENTITY.

       ``In this part, the term `eligible entity' means--
       ``(1) one or more local educational agencies; or
       ``(2) one or more local educational agencies, in 
     collaboration with an institution of higher education, 
     community-based organization, or State educational agency.

     ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

     ``SEC. 3201. SHORT TITLE.

       ``This part may be cited as the `Improving Language 
     Instruction Educational Programs For Academic Achievement 
     Act'.

     ``SEC. 3202. PURPOSE.

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

     ``SEC. 3203. NATIVE AMERICAN CHILDREN IN SCHOOL.

       ``(a) Eligible Entities.--For the purpose of carrying out 
     programs under this part for individuals served by elementary 
     schools, secondary schools, and postsecondary schools 
     operated predominately for Native American (including Alaska 
     Native) children and youth, an Indian tribe, a tribally 
     sanctioned educational authority, a Native Hawaiian or Native 
     American Pacific Islander native language education 
     organization, or an elementary school or secondary school 
     that is operated or funded by the Bureau of Indian Affairs 
     shall be considered to be a local educational agency.
       ``(b) Application.--Notwithstanding any other provision of 
     this part, each tribe, authority, organization, or school 
     described in subsection (a) shall submit any application for 
     assistance under this part directly to the Secretary along 
     with timely comments on the need for the program proposed in 
     the application.

     ``SEC. 3204. RESIDENTS OF THE TERRITORIES AND FREELY 
                   ASSOCIATED STATES.

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

            ``Subpart 1--Program Development and Enhancement

     ``SEC. 3211. FINANCIAL ASSISTANCE FOR LANGUAGE INSTRUCTION 
                   EDUCATIONAL PROGRAMS.

       ``The purpose of this subpart is to assist local 
     educational agencies, institutions of higher education, and 
     community-based organizations, through the grants authorized 
     under sections 3212 and 3213--
       ``(1) to develop and enhance their capacity to provide 
     high-quality instruction through language instruction 
     educational programs or special alternative instruction 
     programs to limited English proficient children; and
       ``(2) to help such children--
       ``(A) develop English proficiency and, to the extent 
     possible, proficiency in their native language; and
       ``(B) meet the same challenging State academic content and 
     student academic achievement standards as all children are 
     expected to meet under section 1111(b)(1).

     ``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES.

       ``(a) Program Authorized.--
       ``(1) Authority.--
       ``(A) In general.--The Secretary is authorized to award 
     grants to eligible entities having applications approved 
     under section 3214 to enable such entities to provide 
     innovative, locally designed, high-quality instruction to 
     limited English proficient children, by expanding, 
     developing, or strengthening language instruction educational 
     programs or special alternative instruction programs.
       ``(B) Period.--Each grant awarded under this section shall 
     be awarded for a period of 3 years.
       ``(2) Authorized activities.--
       ``(A) Mandatory activities.--Grants awarded under this 
     section shall be used for--
       ``(i) developing, implementing, expanding, or enhancing 
     comprehensive preschool, elementary, or secondary education 
     programs for limited English proficient children, that are--

       ``(I) aligned with State and local academic content and 
     student academic achievement standards, and local school 
     reform efforts; and
       ``(II) coordinated with related academic services for 
     children;

       ``(ii) providing high-quality professional development to 
     classroom teachers, administrators, and other school or 
     community-based organization personnel to improve the 
     instruction and assessment of limited English proficient 
     children; and
       ``(iii) annually assessing the English proficiency of all 
     limited English proficient children served by activities 
     carried out under this section.
       ``(B) Permissible activities.--Grants awarded under this 
     section may be used for--
       ``(i) implementing programs to upgrade the reading and 
     other academic skills of limited English proficient children;
       ``(ii) developing accountability systems to monitor the 
     academic progress of limited English proficient and formerly 
     limited English proficient children;
       ``(iii) implementing family education programs and parent 
     outreach and training activities designed to assist parents 
     to become active participants in the education of their 
     children;

[[Page 25700]]

       ``(iv) improving the instruction programs for limited 
     English proficient children by identifying, acquiring, and 
     applying effective curricula, instruction materials 
     (including materials provided through technology), and 
     assessments that are all aligned with State and local 
     standards;
       ``(v) providing intensified instruction, including 
     tutorials and academic, or vocational and technical, 
     training, for limited English proficient children;
       ``(vi) adapting best practice models for meeting the needs 
     of limited English proficient children;
       ``(vii) assisting limited English proficient children with 
     disabilities;
       ``(viii) implementing applied learning activities such as 
     service learning to enhance and support comprehensive 
     elementary and secondary language instruction educational 
     programs;
       ``(ix) acquiring or developing education technology or 
     instruction materials for limited English proficient 
     children, including materials in languages other than 
     English;
       ``(x) participating in electronic networks for materials, 
     training, and communication, and incorporating information 
     derived from such participation in curricula and programs; 
     and
       ``(xi) carrying out such other activities related to the 
     purpose of this part as the Secretary may approve.
       ``(b) Priority.--In awarding grants under this section, the 
     Secretary may give priority to an entity that--
       ``(1) serves a school district--
       ``(A) that has a total district enrollment that is less 
     than 10,000 students; or
       ``(B) with a large percentage or number of limited English 
     proficient children; and
       ``(2) has limited or no experience in serving limited 
     English proficient children.
       ``(c) Eligible Entity.--In this section, the term `eligible 
     entity' means--
       ``(1) one or more local educational agencies;
       ``(2) one or more local educational agencies in 
     collaboration with an institution of higher education, 
     community-based organization, or State educational agency; or
       ``(3) a community-based organization or an institution of 
     higher education that has an application approved by the 
     local educational agency to participate in programs carried 
     out under this subpart by enhancing early childhood education 
     or family education programs or conducting instruction 
     programs that supplement the educational services provided by 
     a local educational agency.

     ``SEC. 3213. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT 
                   ACTIVITIES.

       ``(a) Program Authorized.--
       ``(1) Authority.--The Secretary is authorized to award 
     grants to eligible entities having applications approved 
     under section 3214 to enable such entities to develop and 
     implement language instruction educational programs, and 
     improve, reform, or upgrade programs or operations that serve 
     significant percentages or numbers of limited English 
     proficient children.
       ``(2) Mandatory activities.--Grants awarded under this 
     section shall be used for--
       ``(A) improving instruction programs for limited English 
     proficient children by acquiring and upgrading curricula and 
     related instruction materials;
       ``(B) aligning the activities carried out under this 
     section with State and local school reform efforts;
       ``(C) providing training, aligned with State and local 
     standards, to school personnel and participating community-
     based organization personnel to improve the instruction and 
     assessment of limited English proficient children;
       ``(D) developing and implementing plans, coordinated with 
     plans for programs carried out under title II of the Higher 
     Education Act of 1965 (where applicable), and title II of 
     this Act (where applicable), to recruit teachers trained to 
     serve limited English proficient children;
       ``(E) implementing culturally and linguistically 
     appropriate family education programs, or parent outreach and 
     training activities, that are designed to assist parents of 
     limited English proficient children to become active 
     participants in the education of their children;
       ``(F) coordinating the activities carried out under this 
     section with other programs, such as programs carried out 
     under this title;
       ``(G) providing services to meet the full range of the 
     educational needs of limited English proficient children;
       ``(H) annually assessing the English proficiency of all 
     limited English proficient children served by the activities 
     carried out under this section; and
       ``(I) developing or improving accountability systems to 
     monitor the academic progress of limited English proficient 
     children.
       ``(3) Permissible activities.--Grants awarded under this 
     section may be used for--
       ``(A) implementing programs to upgrade reading and other 
     academic skills of limited English proficient children;
       ``(B) developing and using educational technology to 
     improve learning, assessments, and accountability to meet the 
     needs of limited English proficient children;
       ``(C) implementing scientifically based research programs 
     to meet the needs of limited English proficient children;
       ``(D) providing tutorials and academic, or vocational and 
     technical, training for limited English proficient children;
       ``(E) developing and implementing State and local academic 
     content and student academic achievement standards for 
     learning English as a second language, as well as for 
     learning other languages;
       ``(F) developing and implementing programs for limited 
     English proficient children to meet the needs of changing 
     populations of such children;
       ``(G) implementing policies to ensure that limited English 
     proficient children have access to other education programs 
     (other than programs designed to address limited English 
     proficiency);
       ``(H) assisting limited English proficient children with 
     disabilities;
       ``(I) developing and implementing programs to help children 
     become proficient in English and other languages;
       ``(J) acquiring or developing education technology or 
     instruction materials for limited English proficient 
     children, including materials in languages other than 
     English;
       ``(K) participating in electronic networks for materials, 
     training, and communication and incorporating information 
     derived from such participation in curricula and programs; 
     and
       ``(L) carrying out such other activities related to the 
     purpose of this part as the Secretary may approve.
       ``(4) Special rule.--
       ``(A) Planning.--A recipient of a grant under this section, 
     before carrying out activities under this section, shall 
     plan, train personnel, develop curricula, and acquire or 
     develop materials, but shall not use funds made available 
     under this section for planning purposes for more than 45 
     days.
       ``(B) Commencement of activities.-- The recipient shall 
     commence carrying out activities under this section not later 
     than the later of--
       ``(i) the beginning of the first school year that begins 
     after the grant is received; or
       ``(ii) 30 days after the date of receipt of the grant.
       ``(b) Availability of Appropriations.--
       ``(1) Reservation of funds for continued payments.--
       ``(A) Covered grant.--In this paragraph, the term `covered 
     grant' means a grant--
       ``(i) that was awarded under section 7112, 7113, 7114, or 
     7115 (as such sections were in effect on the day before the 
     date of enactment of the No Child Left Behind Act of 2001); 
     and
       ``(ii) for which the grant period has not ended.
       ``(B) Reservation.--For any fiscal year that is part of the 
     grant period of a covered grant, the Secretary shall reserve 
     funds for the payments described in subparagraph (C) from the 
     amount appropriated for the fiscal year under section 3001(a) 
     and made available for carrying out this section.
       ``(C) Payments.--The Secretary shall continue to make grant 
     payments to each entity that received a covered grant, in 
     accordance with the terms of that grant, for the duration of 
     the grant period of the grant, to carry out activities in 
     accordance with the appropriate section described in 
     subparagraph (A)(i).
       ``(2) Availability.--Of the amount appropriated for a 
     fiscal year under section 3001(a) that is made available to 
     carry out this section, and that remains after the Secretary 
     reserves funds for payments under paragraph (1)--
       ``(A) not less than \1/3\ of the remainder shall be used to 
     award grants to eligible entities for activities carried out 
     within an entire school district; and
       ``(B) not less than \2/3\ of the remainder shall be used to 
     award grants to eligible entities for activities carried out 
     within individual schools.
       ``(c) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to an applicant that--
       ``(1) experiences a significant increase in the number or 
     percentage of limited English proficient children enrolled in 
     the applicant's programs and has limited or no experience in 
     serving limited English proficient children;
       ``(2) is a local educational agency that serves a school 
     district that has a total district enrollment that is less 
     than 10,000 students;
       ``(3) demonstrates that the applicant has a proven track 
     record of success in helping limited English proficient 
     children learn English and meet high academic standards; or
       ``(4) serves a school district with a large number or 
     percentage of limited English proficient children.
       ``(d) Eligible Entities.--In this section, the term 
     `eligible entity' means--
       ``(1) one or more local educational agencies; or
       ``(2) one or more local educational agencies, in 
     collaboration with an institution of higher education, 
     community-based organization, or State educational agency.

     ``SEC. 3214. APPLICATIONS.

       ``(a) In General.--
       ``(1) Secretary.--To receive a grant under this subpart, an 
     eligible entity described in section 3212 or 3213 shall 
     submit an application to the Secretary at such time, in such 
     form, and containing such information as the Secretary may 
     require.
       ``(2) State educational agency.--The eligible entity, with 
     the exception of schools funded by the Bureau of Indian 
     Affairs, shall submit a copy of the application submitted by 
     the entity under this section to the State educational 
     agency.
       ``(b) State Review and Comments.--
       ``(1) Deadline.--The State educational agency, not later 
     than 45 days after receipt of an application under this 
     section, shall review the application and submit the written 
     comments of the agency regarding the application to the 
     Secretary.
       ``(2) Comments.--

[[Page 25701]]

       ``(A) Submission of comments.--Regarding applications 
     submitted under this subpart, the State educational agency 
     shall--
       ``(i) submit to the Secretary written comments regarding 
     all such applications; and
       ``(ii) submit to each eligible entity the comments that 
     pertain to such entity.
       ``(B) Subject.--For purposes of this subpart, such comments 
     shall address--
       ``(i) how the activities to be carried out under the grant 
     will further the academic achievement and English proficiency 
     of limited English proficient children served under the 
     grant; and
       ``(ii) how the grant application is consistent with the 
     State plan required under section 1111.
       ``(c) Eligible Entity Comments.--An eligible entity may 
     submit to the Secretary comments that address the comments 
     submitted by the State educational agency.
       ``(d) Comment Consideration.--In making grants under this 
     subpart, the Secretary shall take into consideration comments 
     made by State educational agencies.
       ``(e) Waiver.--Notwithstanding subsection (b), the 
     Secretary is authorized to waive the review requirement 
     specified in subsection (b) if a State educational agency can 
     demonstrate that such review requirement may impede such 
     agency's ability to fulfill the requirements of participation 
     in the program authorized in section 3224, particularly such 
     agency's ability to carry out data collection efforts and 
     such agency's ability to provide technical assistance to 
     local educational agencies not receiving funds under this 
     subpart.
       ``(f) Required Documentation.--Such application shall 
     include documentation that--
       ``(1) the applicant has the qualified personnel required to 
     develop, administer, and implement the program proposed in 
     the application; and
       ``(2) the leadership personnel of each school participating 
     in the program have been involved in the development and 
     planning of the program in the school.
       ``(g) Contents.--
       ``(1) In general.--An application for a grant under this 
     subpart shall contain the following:
       ``(A) A description of the need for the proposed program, 
     including--
       ``(i) data on the number of limited English proficient 
     children in the school or school district to be served;
       ``(ii) information on the characteristics of the children, 
     including--

       ``(I) the native languages of the children;
       ``(II) the proficiency of the children in English and their 
     native language;
       ``(III) achievement data (current as of the date of 
     submission of the application) for the limited English 
     proficient children in--

       ``(aa) reading or language arts (in English and in the 
     native language, if applicable); and
       ``(bb) mathematics;

       ``(IV) a comparison of that data for the children with that 
     data for the English proficient peers of the children; and
       ``(V) the previous schooling experiences of the children;

       ``(iii) the professional development needs of the 
     instruction personnel who will provide services for the 
     limited English proficient children under the proposed 
     program; and
       ``(iv) how the services provided through the grant will 
     supplement the basic services provided to limited English 
     proficient children.
       ``(B) A description of the program to be implemented and 
     how such program's design--
       ``(i) relates to the linguistic and academic needs of the 
     limited English proficient children to be served;
       ``(ii) will ensure that the services provided through the 
     program will supplement the basic services the applicant 
     provides to limited English proficient children;
       ``(iii) will ensure that the program is coordinated with 
     other programs under this Act and other Acts;
       ``(iv) involves the parents of the limited English 
     proficient children to be served;
       ``(v) ensures accountability in achieving high academic 
     standards; and
       ``(vi) promotes coordination of services for the limited 
     English proficient children to be served and their families.
       ``(C) A description, if appropriate, of the applicant's 
     collaborative activities with institutions of higher 
     education, community-based organizations, local educational 
     agencies or State educational agencies, private schools, 
     nonprofit organizations, or businesses in carrying out the 
     proposed program.
       ``(D) An assurance that the applicant will not reduce the 
     level of State and local funds that the applicant expends for 
     language instruction educational programs or special 
     alternative instruction programs if the applicant receives an 
     award under this subpart.
       ``(E) An assurance that the applicant will employ teachers 
     in the proposed program who, individually or in combination, 
     are proficient in--
       ``(i) English, with respect to written, as well as oral, 
     communication skills; and
       ``(ii) the native language of the majority of the children 
     who the teachers teach, if instruction in the program is in 
     the native language as well as English.
       ``(F) A budget for the grant funds.
       ``(2) Additional information.--Each application for a grant 
     under section 3213 shall--
       ``(A) describe--
       ``(i) current services (as of the date of submission of the 
     application) the applicant provides to limited English 
     proficient children;
       ``(ii) what services limited English proficient children 
     will receive under the grant that such children will not 
     otherwise receive;
       ``(iii) how funds received under this subpart will be 
     integrated with all other Federal, State, local, and private 
     resources that may be used to serve limited English 
     proficient children;
       ``(iv) specific achievement and school retention goals for 
     the children to be served by the proposed program and how 
     progress toward achieving such goals will be measured; and
       ``(v) the current family education programs (as of the date 
     of submission of the application) of the eligible entity, if 
     applicable; and
       ``(B) provide assurances that--
       ``(i) the program funded with the grant will be integrated 
     with the overall educational program of the children served 
     through the proposed program; and
       ``(ii) the application has been developed in consultation 
     with parents and other representatives of the children to be 
     served in such program.
       ``(h) Approval of Applications.--An application for a grant 
     under this subpart may be approved only if the Secretary 
     determines that--
       ``(1) the program proposed in the application will use 
     qualified personnel, including personnel who are proficient 
     in the language or languages used for instruction;
       ``(2) in designing the program, the eligible entity has, 
     after consultation with appropriate private school 
     officials--
       ``(A) taken into account the needs of children in nonprofit 
     private elementary schools and secondary schools; and
       ``(B) in a manner consistent with the number of such 
     children enrolled in such schools in the area to be served, 
     whose educational needs are of the type and whose language, 
     and grade levels are of a similar type to the needs, 
     language, and grade levels that the program is intended to 
     address, provided for the participation of such children on a 
     basis comparable to the basis on which public school children 
     participate;
       ``(3)(A) student evaluation and assessment procedures in 
     the program are valid and reliable for limited English 
     proficient children; and
       ``(B) limited English proficient children with disabilities 
     will be identified and served through the program in 
     accordance with the requirements of the Individuals with 
     Disabilities Education Act;
       ``(4) Federal funds made available for the program will be 
     used to supplement the State and local funds that, in the 
     absence of such Federal funds, would be expended for special 
     programs for children of limited English proficient 
     individuals, and in no case to supplant such State and local 
     funds, except that nothing in this paragraph shall be 
     construed to preclude a local educational agency from using 
     funds made available under this subpart--
       ``(A) for activities carried out under an order of a 
     Federal or State court respecting services to be provided to 
     such children; or
       ``(B) to carry out a plan approved by the Secretary as 
     adequate under title VI of the Civil Rights Act of 1964 with 
     respect to services to be provided to such children;
       ``(5)(A) the assistance provided through the grant will 
     contribute toward building the capacity of the eligible 
     entity to provide a program on a regular basis, similar to 
     the proposed program, that will be of sufficient size, scope, 
     and quality to promise significant improvement in the 
     education of limited English proficient children; and
       ``(B) the eligible entity will have the resources and 
     commitment to continue the program of sufficient size, scope, 
     and quality when assistance under this subpart is reduced or 
     no longer available; and
       ``(6) the eligible entity will use State and national 
     dissemination sources for program design and dissemination of 
     results and products.
       ``(i) Consideration.--In determining whether to approve an 
     application under this subpart, the Secretary shall give 
     consideration to--
       ``(1) the degree to which the program for which assistance 
     is sought involves the collaborative efforts of institutions 
     of higher education, community-based organizations, the 
     appropriate local educational agency and State educational 
     agency, or businesses; and
       ``(2) whether the application provides for training for 
     personnel participating in, or preparing to participate in, a 
     program that will assist such personnel in meeting State and 
     local certification requirements.

     ``SEC. 3215. CAPACITY BUILDING.

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

     ``SEC. 3216. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

     ``SEC. 3217. EVALUATIONS.

       ``(a) Evaluation.--Each recipient of funds under this 
     subpart for a program shall annually conduct an evaluation of 
     the program and submit to the Secretary a report concerning 
     the

[[Page 25702]]

     evaluation, in the form prescribed by the Secretary.
       ``(b) Use of Evaluation.--Such evaluation shall be used by 
     the grant recipient--
       ``(1) for program improvement;
       ``(2) to further define the program's goals and objectives; 
     and
       ``(3) to determine program effectiveness.
       ``(c) Evaluation Report Components.--In preparing the 
     evaluation reports, the recipient shall--
       ``(1) use the data provided in the application submitted by 
     the recipient under section 3214 as baseline data against 
     which to report academic achievement and gains in English 
     proficiency for children in the program;
       ``(2) disaggregate the results of the evaluation by gender, 
     native languages spoken by children, socioeconomic status, 
     and whether the children have disabilities;
       ``(3) include data on the progress of the recipient in 
     achieving the objectives of the program, including data 
     demonstrating the extent to which children served by the 
     program are meeting the challenging State academic content 
     and student academic achievement standards, and including 
     data comparing limited English proficient children with 
     English proficient children with regard to school retention 
     and academic achievement concerning--
       ``(A) reading and language arts;
       ``(B) English proficiency;
       ``(C) mathematics; and
       ``(D) the native language of the children, if the program 
     develops native language proficiency;
       ``(4) include information on the extent that professional 
     development activities carried out through the program have 
     resulted in improved classroom practices and improved student 
     academic achievement;
       ``(5) include a description of how the activities carried 
     out through the program are coordinated and integrated with 
     the other Federal, State, or local programs serving limited 
     English proficient children; and
       ``(6) include such other information as the Secretary may 
     require.

     ``SEC. 3218. CONSTRUCTION.

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

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

     ``SEC. 3221. AUTHORITY.

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

     ``SEC. 3222. RESEARCH.

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

     ``SEC. 3223. ACADEMIC EXCELLENCE AWARDS.

       ``(a) Authority.--The Secretary may make grants to State 
     educational agencies to assist the agencies in recognizing 
     local educational agencies and other public and nonprofit 
     entities whose programs have--
       ``(1) demonstrated significant progress in assisting 
     limited English proficient children to learn English 
     according to age appropriate and developmentally appropriate 
     standards; and
       ``(2) demonstrated significant progress in assisting 
     limited English proficient children to meet, according to age 
     appropriate and developmentally appropriate standards, the 
     same challenging State academic content and student academic 
     achievement standards as all children are expected to meet.
       ``(b) Applications.--A State educational agency desiring a 
     grant under this section shall include an application for 
     such grant in the application submitted by the agency under 
     section 3224(e).

     ``SEC. 3224. STATE GRANT PROGRAM.

       ``(a) State Grant Program.--The Secretary is authorized to 
     make an award to a State educational agency that 
     demonstrates, to the satisfaction of the Secretary, that such 
     agency, through such agency's programs and other Federal 
     education programs, effectively provides for the education of 
     limited English proficient children within the State.
       ``(b) Payments.--The amount paid to a State educational 
     agency under subsection (a) shall not exceed 5 percent of the 
     total amount awarded to local educational agencies and 
     entities within the State under subpart 1 for the previous 
     fiscal year, except that in no case shall the amount paid by 
     the Secretary to any State educational agency under this 
     subsection for any fiscal year be less than $100,000.
       ``(c) Use of Funds.--
       ``(1) In general.--A State educational agency shall use 
     funds awarded under this section--
       ``(A) to assist local educational agencies in the State 
     with activities that--
       ``(i) consist of program design, capacity building, 
     assessment of student academic achievement, program 
     evaluation, and development of data collection and 
     accountability systems for limited English proficient 
     children; and
       ``(ii) are aligned with State reform efforts; and
       ``(B) to collect data on the State's limited English 
     proficient populations and document the services available to 
     all such populations.
       ``(2) Training.--The State educational agency may also use 
     funds provided under this section for the training of State 
     educational agency personnel in educational issues affecting 
     limited English proficient children.
       ``(3) Special rule.--Recipients of funds under this section 
     shall not restrict the provision of services under this 
     section to federally funded programs.
       ``(d) State Consultation.--A State educational agency 
     receiving funds under this section shall consult with 
     recipients of grants under this subpart and other individuals 
     or organizations involved in the development or operation of 
     programs serving limited English proficient children to 
     ensure that such funds are used in a manner consistent with 
     the requirements of this subpart.
       ``(e) Applications.--A State educational agency desiring to 
     receive funds under this section shall submit an application 
     to the Secretary at such time, in such form, and containing 
     such information and assurances as the Secretary may require.
       ``(f) Supplement, Not Supplant.--Federal funds made 
     available under this section for any fiscal year shall be 
     used by the State educational agency to supplement and, to 
     the extent practical, to increase the State funds that, in 
     the absence of such Federal funds, would be made available 
     for the purposes described in this section, and in no case to 
     supplant such State funds.
       ``(g) Report to the Secretary.--A State educational agency 
     receiving an award under this section shall provide for the 
     annual submission of a summary report to the Secretary 
     describing such State's use of the funds made available 
     through the award.

     ``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT.

       ``(a) In General.--The Secretary may make grants for the 
     development, publication, and dissemination of high-quality 
     instruction materials--

[[Page 25703]]

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

                 ``Subpart 3--Professional Development

     ``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS.

       ``(a) Purpose.--The purpose of this section is to provide 
     assistance to prepare educators to improve educational 
     services for limited English proficient children by--
       ``(1) supporting professional development programs and 
     activities to prepare teachers, pupil service personnel, 
     administrators, and other educational personnel working in 
     language instruction educational programs to provide 
     effective services to limited English proficient children;
       ``(2) incorporating curricula and resources concerning 
     appropriate and effective instruction and assessment 
     methodologies specific to limited English proficient children 
     into preservice and inservice professional development 
     programs;
       ``(3) upgrading the qualifications and skills of non-
     certified educational personnel, including paraprofessionals, 
     to enable such personnel to meet high professional standards 
     for educating limited English proficient children;
       ``(4) improving the quality of professional development 
     programs in schools or departments of education at 
     institutions of higher education, for educational personnel 
     serving, or preparing to serve, limited English proficient 
     children; and
       ``(5) supporting the recruitment and training of 
     prospective educational personnel to serve limited English 
     proficient children by providing fellowships for 
     undergraduate, graduate, doctoral, and post-doctoral study 
     related to the instruction of such children.
       ``(b) Authorization.--
       ``(1) In general.--The Secretary is authorized to award 
     grants under this section to--
       ``(A) State educational agencies;
       ``(B) local educational agencies;
       ``(C) institutions of higher education; or
       ``(D) consortia of one or more local educational agencies, 
     State educational agencies, institutions of higher education, 
     for-profit organizations, or nonprofit organizations.
       ``(2) Duration.--Each grant awarded under this section 
     shall be awarded for a period of not more than 4 years.
       ``(c) Authorized Activities.--Grants awarded under this 
     section shall be used to conduct high-quality professional 
     development programs and effective activities to improve the 
     quality of instruction and services provided to limited 
     English proficient children, including--
       ``(1) implementing preservice and inservice professional 
     development programs for teachers who serve limited English 
     proficient children, administrators, and other educational 
     personnel who are preparing to provide educational services 
     for limited English proficient children, including 
     professional development programs that assist limited English 
     proficient children to attain English proficiency;
       ``(2) implementing school-based collaborative efforts among 
     teachers to improve instruction in core academic subjects, 
     especially reading, for limited English proficient children;
       ``(3) developing and implementing programs to assist 
     beginning teachers who serve limited English proficient 
     children with transitioning to the teaching profession, 
     including programs that provide mentoring and team teaching 
     with trained and experienced teachers;
       ``(4) implementing programs that support effective teacher 
     use of education technologies to improve instruction and 
     assessment;
       ``(5) developing curricular materials and assessments for 
     teachers that are appropriate to the needs of limited English 
     proficient children, and that are aligned with challenging 
     State academic content and student academic achievement 
     standards, including materials and assessments that ensure 
     limited English proficient children attain English 
     proficiency;
       ``(6) integrating and coordinating activities with entities 
     carrying out other programs consistent with the purpose of 
     this section and supported under this Act, or other Acts as 
     appropriate;
       ``(7) developing and implementing career ladder programs to 
     upgrade the qualifications and skills of non-certified 
     educational personnel working in, or preparing to work in, 
     language instruction educational programs to enable such 
     personnel to meet high professional standards, including 
     standards for certification and licensure as teachers;
       ``(8) developing and implementing activities to help 
     recruit and train secondary school students as teachers who 
     serve limited English proficient children;
       ``(9) providing fellowships and assistance for costs 
     related to enrollment in a course of study at an institution 
     of higher education that addresses the instruction of limited 
     English proficient children in such areas as teacher 
     training, program administration, research, evaluation, and 
     curriculum development, and for the support of dissertation 
     research related to such study, except that any person 
     receiving such a fellowship or assistance shall agree to--
       ``(A) work in an activity related to improving the 
     educational services for limited English proficient children 
     authorized under this subpart, including work as a teacher 
     that serves limited English proficient children, for a period 
     of time equivalent to the period of time during which such 
     person receives assistance under this paragraph; or
       ``(B) repay such assistance; and
       ``(10) carrying out such other activities as are consistent 
     with the purpose of this section.
       ``(d) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such form, and containing such 
     information as the Secretary may require.
       ``(2) Contents.--Each application shall--
       ``(A) describe the programs and activities proposed to be 
     developed, implemented, and administered under the award;
       ``(B) describe how the applicant has consulted with, and 
     assessed the needs of, public and private schools serving 
     limited English proficient children to determine such 
     schools' need for, and the design of, the program for which 
     funds are sought; and
       ``(C) describe how the programs and activities to be 
     carried out under the award will be used to ensure that 
     limited English proficient children meet challenging State 
     academic content and student academic achievement standards 
     and attain English proficiency.
       ``(3) Special rule.--An eligible entity that proposes to 
     conduct a master's-level or doctoral-level program with funds 
     received under this section shall include in the entity's 
     application an assurance that such program will include a 
     training practicum in a local elementary school or secondary 
     school program serving limited English proficient children.
       ``(4) Outreach and technical assistance.--The Secretary 
     shall provide for outreach and technical assistance to 
     institutions of higher education eligible for assistance 
     under title III of the Higher Education Act of 1965, and 
     institutions of higher education that are operated or funded 
     by the Bureau of Indian Affairs, to facilitate the 
     participation of such institutions in programs and activities 
     under this section.
       ``(5) Distribution rule.--In making awards under this 
     section, the Secretary shall ensure adequate representation 
     of Hispanic-serving institutions that demonstrate competence 
     and experience in carrying out the programs and activities 
     authorized under this section and that are otherwise 
     qualified.
       ``(e) Priorities in Awarding Grants.--
       ``(1) Grants to agencies.--In awarding grants to State 
     educational agencies and local educational agencies under 
     this section, the Secretary shall give priority to agencies 
     that propose programs and activities designed to implement 
     professional development programs for teachers and 
     educational personnel who are providing or preparing to 
     provide educational services for limited English proficient 
     children, including services provided through language 
     instruction educational programs, that ensure such children 
     attain English proficiency and meet challenging State 
     academic content and student academic achievement standards.
       ``(2) Grants to institutions of higher education.--In 
     awarding grants to institutions of higher education under 
     this section, the Secretary shall give priority to 
     institutions that propose programs and activities to recruit 
     and upgrade the qualifications and skills of certified and 
     non-certified educational personnel by offering degree 
     programs that prepare beginning teachers to serve limited 
     English proficient children.
       ``(f) Program Evaluations.--Each recipient of an award 
     under this section for a program or activity shall annually 
     conduct an independent evaluation of the program or activity 
     and submit to the Secretary a report containing such 
     evaluation. Such report shall include information on--
       ``(1) the program or activity conducted by the recipient to 
     provide high-quality professional development to participants 
     in such program or activity;
       ``(2) the number of participants served through the program 
     or activity, the number of participants who completed the 
     requirements of the program or activity, and the number of 
     participants who took positions in an instruction setting 
     with limited English proficient children;
       ``(3) the effectiveness of the program or activity in 
     imparting the professional skills necessary for participants 
     to achieve the objectives of the program or activity; and
       ``(4) the teaching effectiveness of graduates of the 
     program or activity or other participants who have completed 
     the program or activity.

           ``Subpart 4--Emergency Immigrant Education Program

     ``SEC. 3241. PURPOSE.

       ``The purpose of this subpart is to assist eligible local 
     educational agencies that experience unexpectedly large 
     increases in their student population due to immigration--
       ``(1) to provide high-quality instruction to immigrant 
     children and youth; and
       ``(2) to help such children and youth--
       ``(A) with their transition into American society; and

[[Page 25704]]

       ``(B) meet the same challenging State academic content and 
     student academic achievement standards as all children are 
     expected to meet.

     ``SEC. 3242. STATE ADMINISTRATIVE COSTS.

       ``For any fiscal year, a State educational agency may 
     reserve not more than 1.5 percent (2 percent if the State 
     educational agency distributes funds received under this 
     subpart to local educational agencies on a competitive basis) 
     of the amount allotted to such agency under section 3244 to 
     pay the costs of performing such agency's administrative 
     functions under this subpart.

     ``SEC. 3243. WITHHOLDING.

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

     ``SEC. 3244. STATE ALLOTMENTS.

       ``(a) Payments.--The Secretary shall, in accordance with 
     the provisions of this section, make payments to State 
     educational agencies for each of the fiscal years 2002 
     through 2008 for the purpose set forth in section 3241.
       ``(b) Allotments.--
       ``(1) In general.--Except as provided in subsections (c) 
     and (d), of the amount appropriated for each fiscal year for 
     this subpart, each State participating in the program 
     assisted under this subpart shall receive an allotment equal 
     to the proportion of the number of immigrant children and 
     youth who are enrolled in public elementary schools or 
     secondary schools under the jurisdiction of each local 
     educational agency described in paragraph (2), and in 
     nonpublic elementary schools or secondary schools within the 
     district served by each such local educational agency within 
     such State, relative to the total number of immigrant 
     children and youth so enrolled in all the States 
     participating in the program assisted under this subpart.
       ``(2) Eligible local educational agencies.--A local 
     educational agency referred to in paragraph (1) is a local 
     educational agency for which the sum of the number of 
     immigrant children and youth who are enrolled in public 
     elementary schools or secondary schools under the 
     jurisdiction of such agency, and in nonpublic elementary 
     schools or secondary schools within the district served by 
     such agency, during the fiscal year for which the payments 
     are to be made under this subpart, is equal to at least--
       ``(A) 500; or
       ``(B) 3 percent of the total number of children enrolled in 
     such public or nonpublic schools during such fiscal year,
     whichever is less.
       ``(c) Determinations of Number of Children and Youth.--
       ``(1) In general.--Determinations by the Secretary under 
     this section for any period with respect to the number of 
     immigrant children and youth shall be made on the basis of 
     data or estimates provided to the Secretary by each State 
     educational agency in accordance with criteria established by 
     the Secretary, unless the Secretary determines, after notice 
     and opportunity for a hearing to the affected State 
     educational agency, that such data or estimates are clearly 
     erroneous.
       ``(2) Special rule.--No such determination with respect to 
     the number of immigrant children and youth shall operate 
     because of an underestimate or overestimate to deprive any 
     State educational agency of the allotment under this section 
     that such State would otherwise have received had such 
     determination been made on the basis of accurate data.
       ``(d) Reallotment.--
       ``(1) In general.--Whenever the Secretary determines that 
     any amount of a payment made to a State under this subpart 
     for a fiscal year will not be used by such State for carrying 
     out the purpose for which the payment was made, the Secretary 
     shall make such amount available for carrying out such 
     purpose to one or more other States to the extent the 
     Secretary determines that such other States will be able to 
     use such additional amount for carrying out such purpose.
       ``(2) Fiscal year.--Any amount made available to a State 
     from any appropriation for a fiscal year in accordance with 
     paragraph (1) shall, for purposes of this subpart, be 
     regarded as part of such State's payment (as determined under 
     subsection (b)) for such year, but shall remain available 
     until the end of the succeeding fiscal year.
       ``(e) Reservation of Funds.--
       ``(1) In general.--Notwithstanding any other provision of 
     this subpart, if the amount appropriated to carry out this 
     subpart exceeds $50,000,000 for a fiscal year, a State 
     educational agency may reserve not more than 20 percent of 
     such agency's payment under this subpart for such year to 
     award grants, on a competitive basis, to local educational 
     agencies within the State as follows:
       ``(A) Agencies with immigrant children and youth.--At least 
     \1/2\ of the funds reserved under this paragraph shall be 
     made available to eligible local educational agencies (as 
     described in subsection (b)(2)) within the State with the 
     highest numbers and percentages of immigrant children and 
     youth.
       ``(B) Agencies with a sudden influx of children and 
     youth.--Funds reserved under this paragraph and not made 
     available under subparagraph (A) may be distributed to local 
     educational agencies within the State that are experiencing a 
     sudden influx of immigrant children and youth and that are 
     otherwise not eligible for assistance under this subpart.
       ``(2) Use of grant funds.--Each local educational agency 
     receiving a grant under paragraph (1) shall use such grant 
     funds to carry out the activities described in section 3247.
       ``(3) Information.--Local educational agencies receiving 
     funds under paragraph (1) with the highest number of 
     immigrant children and youth may make information available 
     on serving immigrant children and youth to local educational 
     agencies in the State with sparse numbers of such children 
     and youth.

     ``SEC. 3245. STATE APPLICATIONS.

       ``(a) Submission.--No State educational agency shall 
     receive any payment under this subpart for any fiscal year 
     unless such agency submits an application to the Secretary at 
     such time, in such manner, and containing or accompanied by 
     such information, as the Secretary may reasonably require. 
     Each such application shall--
       ``(1) provide that the educational programs, services, and 
     activities for which payments under this subpart are made 
     will be administered by or under the supervision of the 
     agency;
       ``(2) provide assurances that payments under this subpart 
     will be used for purposes set forth in sections 3241 and 
     3247, including a description of how local educational 
     agencies receiving funds under this subpart will use such 
     funds to meet such purposes and will coordinate with entities 
     carrying out other programs and activities assisted under 
     this Act, and other Acts as appropriate;
       ``(3) provide an assurance that local educational agencies 
     receiving funds under this subpart will coordinate the use of 
     such funds with entities carrying out programs and activities 
     assisted under part A of title I;
       ``(4) provide assurances that such payments, with the 
     exception of payments reserved under section 3244(e), will be 
     distributed among local educational agencies within that 
     State on the basis of the number of immigrant children and 
     youth counted with respect to each such local educational 
     agency under section 3244(b)(1);
       ``(5) provide assurances that the State educational agency 
     will not finally disapprove in whole or in part any 
     application for funds received under this subpart without 
     first affording the local educational agency submitting an 
     application for such funds reasonable notice and opportunity 
     for a hearing;
       ``(6) provide for making such reports as the Secretary may 
     reasonably require to perform the Secretary's functions under 
     this subpart;
       ``(7) provide assurances--
       ``(A) that to the extent consistent with the number of 
     immigrant children and youth enrolled in the nonpublic 
     elementary schools or secondary schools within the district 
     served by a local educational agency, such agency, after 
     consultation with appropriate officials of such schools, 
     shall provide for the benefit of such children and youth 
     secular, neutral, and nonideological services, materials, and 
     equipment necessary for the education of such children and 
     youth;
       ``(B) that the control of funds provided under this subpart 
     for any materials or equipment, or property repaired, 
     remodeled, or constructed with those funds shall be in a 
     public agency for the uses and purpose provided in this 
     subpart, and a public agency shall administer such funds and 
     property; and
       ``(C) that the provision of services pursuant to this 
     paragraph shall be provided by employees of a public agency 
     or through contract by such public agency with a person, 
     association, agency, or corporation who or which, in the 
     provision of such services, is independent of such nonpublic 
     elementary school or secondary school and of any religious 
     organization, and such employment or contract shall be under 
     the control and supervision of such public agency, and the 
     funds provided under this paragraph shall not be commingled 
     with State or local funds;
       ``(8) provide that funds reserved under section 3244(e) be 
     awarded on a competitive basis based on merit and need in 
     accordance with such section; and
       ``(9) provide an assurance that the State educational 
     agency and local educational agencies in the State receiving 
     funds under this subpart will comply with the requirements of 
     section 1120(b).
       ``(b) Application Review.--
       ``(1) In general.--The Secretary shall review all 
     applications submitted pursuant to this section by State 
     educational agencies.
       ``(2) Approval.--The Secretary shall approve any 
     application submitted by a State educational agency that 
     meets the requirements of this section.
       ``(3) Disapproval.--The Secretary shall disapprove any 
     application submitted by a State educational agency that does 
     not meet the requirements of this section, but shall not 
     finally disapprove an application except after providing 
     reasonable notice, technical assistance, and an opportunity 
     for a hearing to the State educational agency.

     ``SEC. 3246. ADMINISTRATIVE PROVISIONS.

       ``(a) Notification of Amount.--The Secretary, not later 
     than June 1 of each year, shall

[[Page 25705]]

     notify each State educational agency that has an application 
     approved under section 3245 of the amount of such agency's 
     allotment under section 3244 for the succeeding year.
       ``(b) Services to Immigrant Children and Youth Enrolled in 
     Nonpublic Schools.--If by reason of any provision of law a 
     local educational agency is prohibited from providing 
     educational services for immigrant children and youth 
     enrolled in nonpublic elementary schools and secondary 
     schools, as required by section 3245(a)(7), or if the 
     Secretary determines that a local educational agency has 
     substantially failed or is unwilling to provide for the 
     participation on an equitable basis of such children and 
     youth enrolled in such schools, the Secretary may waive such 
     requirement and shall arrange for the provision of services, 
     subject to the requirements of this subpart, to such children 
     and youth. Such waivers shall be subject to consultation, 
     withholding, notice, and judicial review requirements in 
     accordance with the provisions of title I.

     ``SEC. 3247. USES OF FUNDS.

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

     ``SEC. 3248. REPORTS.

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

                      ``Subpart 5--Administration

     ``SEC. 3251. RELEASE TIME.

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

     ``SEC. 3252. NOTIFICATION.

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

     ``SEC. 3253. COORDINATION AND REPORTING REQUIREMENTS.

       ``(a) Coordination With Related Programs.--In order to 
     maximize Federal efforts aimed at serving the educational 
     needs of children and youth of limited English proficiency, 
     the Secretary shall coordinate and ensure close cooperation 
     with other programs serving language-minority and limited 
     English proficient children that are administered by the 
     Department and other agencies. The Secretary shall consult 
     with the Secretary of Labor, the Secretary of Health and 
     Human Services, the Secretary of Agriculture, the Attorney 
     General, and the heads of other relevant agencies to identify 
     and eliminate barriers to appropriate coordination of 
     programs that affect language-minority and limited English 
     proficient children and their families. The Secretary shall 
     provide for continuing consultation and collaboration, 
     between the Office of English Language Acquisition, Language 
     Enhancement, and Academic Achievement for Limited English 
     Proficient Students and relevant programs operated by the 
     Department, including programs under this part and other 
     programs under this Act, in planning, contracts, providing 
     joint technical assistance, providing joint field monitoring 
     activities and in other relevant activities to ensure 
     effective program coordination to provide high-quality 
     educational opportunities to all language-minority and 
     limited English proficient children.
       ``(b) Data.--The Secretary shall, to the extent feasible, 
     ensure that all data collected by the Department shall 
     include the collection and reporting of data on limited 
     English proficient children.
       ``(c) Publication of Proposals.--The Secretary shall 
     publish and disseminate all requests for proposals for 
     programs funded under this part.
       ``(d) Report.--The Director shall prepare and, not later 
     than February 1 of every other year, shall submit to the 
     Secretary, the Committee on Education and the Workforce of 
     the House of Representatives, and the Committee on Health, 
     Education, Labor, and Pensions of the Senate a report--
       ``(1) on programs and activities carried out to serve 
     limited English proficient children under this part, and the 
     effectiveness of such programs and activities in improving 
     the academic achievement and English proficiency of children 
     who are limited English proficient;
       ``(2) containing a critical synthesis of data reported by 
     States under section 3224, when applicable;
       ``(3) containing an estimate of the number of certified or 
     licensed teachers working in language instruction educational 
     programs and educating limited English proficient children, 
     and an estimate of the number of such teachers that will be 
     needed for the succeeding 5 fiscal years;
       ``(4) containing the major findings of scientifically based 
     research carried out under this part; and
       ``(5) containing other information gathered from the 
     reports submitted to the Secretary under this title when 
     applicable.

                      ``PART C--GENERAL PROVISIONS

     ``SEC. 3301. DEFINITIONS.

       ``Except as otherwise provided, in this title:
       ``(1) Child.--The term `child' means any individual aged 3 
     through 21.
       ``(2) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization of 
     demonstrated effectiveness, Indian tribe, or tribally 
     sanctioned educational authority, that is representative of a 
     community or significant segments of a community and that 
     provides educational or related services to individuals in 
     the community. Such term includes a Native Hawaiian or Native 
     American Pacific Islander native language educational 
     organization.
       ``(3) Community college.--The term `community college' 
     means an institution of higher education as defined in 
     section 101 of the Higher Education Act of 1965 that provides 
     not less than a 2-year program that is acceptable for full 
     credit toward a bachelor's degree, including institutions 
     receiving assistance under the Tribally Controlled College or 
     University Assistance Act of 1978.
       ``(4) Director.--The term `Director' means the Director of 
     the Office of English Language Acquisition, Language 
     Enhancement, and Academic Achievement for Limited English 
     Proficient Students established under section 209 of the 
     Department of Education Organization Act.
       ``(5) Family education program.--The term `family education 
     program' means a language instruction educational program or 
     special alternative instruction program that--
       ``(A) is designed--
       ``(i) to help limited English proficient adults and out-of-
     school youths achieve English proficiency; and
       ``(ii) to provide instruction on how parents and family 
     members can facilitate the educational achievement of their 
     children;
       ``(B) when feasible, uses instructional programs based on 
     models developed under the Even Start Family Literacy 
     Programs, which promote adult literacy and train parents to 
     support the educational growth of their children, the Parents 
     as Teachers Program, and the Home Instruction Program for 
     Preschool Youngsters; and
       ``(C) gives preference to participation by parents and 
     immediate family members of children attending school.
       ``(6) Immigrant children and youth.--The term `immigrant 
     children and youth' means individuals who--
       ``(A) are aged 3 through 21;
       ``(B) were not born in any State; and
       ``(C) have not been attending one or more schools in any 
     one or more States for more than 3 full academic years.
       ``(7) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Native village or Regional 
     Corporation or Village Corporation as defined in or 
     established pursuant to the Alaska Native Claims Settlement 
     Act, that is recognized as eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians.
       ``(8) Language instruction educational program.--The term 
     `language instruction educational program' means an 
     instruction course--
       ``(A) in which a limited English proficient child is placed 
     for the purpose of developing and attaining English 
     proficiency, while meeting challenging State academic content 
     and student

[[Page 25706]]

     academic achievement standards, as required by section 
     1111(b)(1); and
       ``(B) that may make instructional use of both English and a 
     child's native language to enable the child to develop and 
     attain English proficiency, and may include the participation 
     of English proficient children if such course is designed to 
     enable all participating children to become proficient in 
     English and a second language.
       ``(9) Native american and native american language.--The 
     terms `Native American' and `Native American language' shall 
     have the meanings given such terms in section 103 of the 
     Native American Languages Act.
       ``(10) Native hawaiian or native american pacific islander 
     native language educational organization.--The term `Native 
     Hawaiian or Native American Pacific Islander native language 
     educational organization' means a nonprofit organization 
     with--
       ``(A) a majority of its governing board and employees 
     consisting of fluent speakers of the traditional Native 
     American languages used in the organization's educational 
     programs; and
       ``(B) not less than 5 years successful experience in 
     providing educational services in traditional Native American 
     languages.
       ``(11) Native language.--The term `native language', when 
     used with reference to an individual of limited English 
     proficiency, means--
       ``(A) the language normally used by such individual; or
       ``(B) in the case of a child or youth, the language 
     normally used by the parents of the child or youth.
       ``(12) Paraprofessional.--The term `paraprofessional' means 
     an individual who is employed in a preschool, elementary 
     school, or secondary school under the supervision of a 
     certified or licensed teacher, including individuals employed 
     in language instruction educational programs, special 
     education, and migrant education.
       ``(13) Specially qualified agency.--The term `specially 
     qualified agency' means an eligible entity, as defined in 
     section 3141, in a State whose State educational agency--
       ``(A) does not participate in a program under subpart 1 of 
     part A for a fiscal year; or
       ``(B) submits a plan (or any amendment to a plan) that the 
     Secretary, after reasonable notice and opportunity for a 
     hearing, determines does not satisfy the requirements of such 
     subpart.
       ``(14) State.--The term `State' means each of the 50 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.
       ``(15) Tribally sanctioned educational authority.--The term 
     `tribally sanctioned educational authority' means--
       ``(A) any department or division of education operating 
     within the administrative structure of the duly constituted 
     governing body of an Indian tribe; and
       ``(B) any nonprofit institution or organization that is--
       ``(i) chartered by the governing body of an Indian tribe to 
     operate a school described in section 3112(a) or otherwise to 
     oversee the delivery of educational services to members of 
     the tribe; and
       ``(ii) approved by the Secretary for the purpose of 
     carrying out programs under subpart 1 of part A for 
     individuals served by a school described in section 3112(a).

     ``SEC. 3302. PARENTAL NOTIFICATION.

       ``(a) In General.--Each eligible entity using funds 
     provided under this title to provide a language instruction 
     educational program shall, not later than 30 days after the 
     beginning of the school year, inform a parent or the parents 
     of a limited English proficient child identified for 
     participation in, or participating in, such program of--
       ``(1) the reasons for the identification of their child as 
     limited English proficient and in need of placement in a 
     language instruction educational program;
       ``(2) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(3) the method of instruction used in the program in 
     which their child is, or will be, participating, and the 
     methods of instruction used in other available programs, 
     including how such programs differ in content, instruction 
     goals, and use of English and a native language in 
     instruction;
       ``(4) how the program in which their child is, or will be 
     participating will meet the educational strengths and needs 
     of the child;
       ``(5) how such program will specifically help their child 
     learn English, and meet age appropriate academic achievement 
     standards for grade promotion and graduation;
       ``(6) the specific exit requirements for such program, the 
     expected rate of transition from such program into classrooms 
     that are not tailored for limited English proficient 
     children, and the expected rate of graduation from secondary 
     school for such program if funds under this title are used 
     for children in secondary schools;
       ``(7) in the case of a child with a disability, how such 
     program meets the objectives of the individualized education 
     program of the child; and
       ``(8) information pertaining to parental rights that 
     includes written guidance--
       ``(A) detailing--
       ``(i) the right that parents have to have their child 
     immediately removed from such program upon their request; and
       ``(ii) the options that parents have to decline to enroll 
     their child in such program or to choose another program or 
     method of instruction, if available; and
       ``(B) assisting parents in selecting among various programs 
     and methods of instruction, if more than one program or 
     method is offered by the eligible entity.
       ``(b) Separate Notification.--In addition to providing the 
     information required to be provided under subsection (a), 
     each eligible entity that is using funds provided under this 
     title to provide a language instruction educational program, 
     and that has failed to make progress on the annual measurable 
     achievement objectives described in section 3122 for any 
     fiscal year for which part A is in effect, shall separately 
     inform a parent or the parents of a child identified for 
     participation in such program, or participating in such 
     program, of such failure not later than 30 days after such 
     failure occurs.
       ``(c) Receipt of Information.--The information required to 
     be provided under subsections (a) and (b) to a parent shall 
     be provided in an understandable and uniform format and, to 
     the extent practicable, in a language that the parent can 
     understand.
       ``(d) Special Rule Applicable During School Year.--For a 
     child who has not been identified for participation in a 
     language instruction educational program prior to the 
     beginning of the school year, the eligible entity shall carry 
     out subsections (a) through (c) with respect to the parents 
     of the child within 2 weeks of the child being placed in such 
     a program.
       ``(e) Parental Participation.--
       ``(1) In General.--Each eligible entity using funds 
     provided under this title to provide a language instruction 
     educational program shall implement an effective means of 
     outreach to parents of limited English proficient children to 
     inform such parents of how they can--
       ``(A) be involved in the education of their children; and
       ``(B) be active participants in assisting their children--
       ``(i) to learn English;
       ``(ii) to achieve at high levels in core academic subjects; 
     and
       ``(iii) to meet the same challenging State academic content 
     and student academic achievement standards as all children 
     are expected to meet.
       ``(2) Receipt of recommendations.--The outreach described 
     in paragraph (1) shall include holding, and sending notice of 
     opportunities for, regular meetings for the purpose of 
     formulating and responding to recommendations from parents 
     described in such paragraph.
       ``(f) Basis for Admission or Exclusion.--A child shall not 
     be admitted to, or excluded from, any federally assisted 
     education program on the basis of a surname or language-
     minority status.

     ``SEC. 3303. NATIONAL CLEARINGHOUSE.

       ``The Secretary shall establish and support the operation 
     of a National Clearinghouse for English Language Acquisition 
     and Language Instruction Educational Programs, which shall 
     collect, analyze, synthesize, and disseminate information 
     about language instruction educational programs for limited 
     English proficient children, and related programs. The 
     National Clearinghouse shall--
       ``(1) be administered as an adjunct clearinghouse of the 
     Educational Resources Information Center Clearinghouses 
     system supported by the Office of Educational Research and 
     Improvement;
       ``(2) coordinate activities with Federal data and 
     information clearinghouses and entities operating Federal 
     dissemination networks and systems;
       ``(3) develop a system for improving the operation and 
     effectiveness of federally funded language instruction 
     educational programs;
       ``(4) collect and disseminate information on--
       ``(A) educational research and processes related to the 
     education of limited English proficient children; and
       ``(B) accountability systems that monitor the academic 
     progress of limited English proficient children in language 
     instruction educational programs, including information on 
     academic content and English proficiency assessments for 
     language instruction educational programs; and
       ``(5) publish, on an annual basis, a list of grant 
     recipients under this title.

     ``SEC. 3304. REGULATIONS.

       ``In developing regulations under this title, the Secretary 
     shall consult with State educational agencies and local 
     educational agencies, organizations representing limited 
     English proficient individuals, and organizations 
     representing teachers and other personnel involved in the 
     education of limited English proficient children.''.
                     TITLE IV--21ST CENTURY SCHOOLS

     SEC. 401. 21ST CENTURY SCHOOLS.

       Title IV (20 U.S.C. 7101 et seq.) is amended to read as 
     follows:
                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``PART A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

     ``SEC. 4001. SHORT TITLE.

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

     ``SEC. 4002. PURPOSE.

       ``The purpose of this part is to support programs that 
     prevent violence in and around schools; that prevent the 
     illegal use of alcohol, tobacco, and drugs; that involve 
     parents and communities; and that are coordinated with 
     related Federal, State, school, and community efforts and 
     resources to foster a safe and drug-free learning environment 
     that supports student academic achievement, through the 
     provision of Federal assistance to--
       ``(1) States for grants to local educational agencies and 
     consortia of such agencies to establish, operate, and improve 
     local programs of

[[Page 25707]]

     school drug and violence prevention and early intervention;
       ``(2) States for grants to, and contracts with, community-
     based organizations and public and private entities for 
     programs of drug and violence prevention and early 
     intervention, including community-wide drug and violence 
     prevention planning and organizing activities;
       ``(3) States for development, training, technical 
     assistance, and coordination activities; and
       ``(4) public and private entities to provide technical 
     assistance; conduct training, demonstrations, and evaluation; 
     and to provide supplementary services and community-wide drug 
     and violence prevention planning and organizing activities 
     for the prevention of drug use and violence among students 
     and youth.

     ``SEC. 4003. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated--
       ``(1) $650,000,000 for fiscal year 2002, and such sums as 
     may be necessary for each of the 5 succeeding fiscal years, 
     for State grants under subpart 1; and
       ``(2) such sums for fiscal year 2002, and for each of the 5 
     succeeding fiscal years, for national programs under subpart 
     2.

                       ``Subpart 1--State Grants

     ``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

       ``(a) Reservations.--
       ``(1) In general.--From the amount made available under 
     section 4003(1) to carry out this subpart for each fiscal 
     year, the Secretary--
       ``(A) shall reserve 1 percent or $4,750,000 (whichever is 
     greater) of such amount for grants to Guam, American Samoa, 
     the United States Virgin Islands, and the Commonwealth of the 
     Northern Mariana Islands, to be allotted in accordance with 
     the Secretary's determination of their respective needs and 
     to carry out programs described in this subpart;
       ``(B) shall reserve 1 percent or $4,750,000 (whichever is 
     greater) of such amount for the Secretary of the Interior to 
     carry out programs described in this subpart for Indian 
     youth; and
       ``(C) shall reserve 0.2 percent of such amount for Native 
     Hawaiians to be used under section 4117 to carry out programs 
     described in this subpart.
       ``(2) Other reservations.--From the amount made available 
     under section 4003(2) to carry out subpart 2 for each fiscal 
     year, the Secretary--
       ``(A) may reserve not more than $2,000,000 for the national 
     impact evaluation required by section 4122(a);
       ``(B) notwithstanding section 3 of the No Child Left Behind 
     Act of 2001, shall reserve an amount necessary to make 
     continuation grants to grantees under the Safe Schools/
     Healthy Students initiative (under the same terms and 
     conditions as provided for in the grants involved).
       ``(b) State Allotments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall, for each fiscal year, allot among the 
     States--
       ``(A) \1/2\ of the remainder not reserved under subsection 
     (a) according to the ratio between the school-aged population 
     of each State and the school-aged population of all the 
     States; and
       ``(B) \1/2\ of such remainder according to the ratio 
     between the amount each State received under section 1124A 
     for the preceding year and the sum of such amounts received 
     by all the States.
       ``(2) Minimum.--For any fiscal year, no State shall be 
     allotted under this subsection an amount that is less than 
     the greater of--
       ``(A) \1/2\ of 1 percent of the total amount allotted to 
     all the States under this subsection; or
       ``(B) the amount such State received for fiscal year 2001 
     under section 4111 as such section was in effect the day 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001.
       ``(3) Reallotment.--
       ``(A) Reallotment for failure to apply.--If any State does 
     not apply for an allotment under this subpart for a fiscal 
     year, the Secretary shall reallot the amount of the State's 
     allotment to the remaining States in accordance with this 
     section.
       ``(B) Reallotment of unused funds.--The Secretary may 
     reallot any amount of any allotment to a State if the 
     Secretary determines that the State will be unable to use 
     such amount within 2 years of such allotment. Such 
     reallotments shall be made on the same basis as allotments 
     are made under paragraph (1).
       ``(4) Definitions.--In this section the term `State' means 
     each of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.
       ``(c) Limitation.--Amounts appropriated under section 
     4003(2) for a fiscal year may not be increased above the 
     amounts appropriated under such section for the previous 
     fiscal year unless the amounts appropriated under section 
     4003(1) for the fiscal year involved are at least 10 percent 
     greater that the amounts appropriated under such section 
     4003(1) for the previous fiscal year.

     ``SEC. 4112. RESERVATION OF STATE FUNDS FOR SAFE AND DRUG-
                   FREE SCHOOLS.

       ``(a) State Reservation for the Chief Executive Officer of 
     a State.--
       ``(1) In general.--The chief executive officer of a State 
     may reserve not more than 20 percent of the total amount 
     allocated to a State under section 4111(b) for each fiscal 
     year to award competitive grants and contracts to local 
     educational agencies, community-based organizations 
     (including community anti-drug coalitions) other public 
     entities and private organizations, and consortia thereof. 
     Such grants and contracts shall be used to carry out the 
     comprehensive State plan described in section 4113(a) through 
     programs or activities that complement and support activities 
     of local educational agencies described in section 4115(b). 
     Such officer shall award grants based on--
       ``(A) the quality of the program or activity proposed; and
       ``(B) how the program or activity meets the principles of 
     effectiveness described in section 4115(a).
       ``(2) Priority.--In making such grants and contracts under 
     this section, a chief executive officer shall give priority 
     to programs and activities that prevent illegal drug use and 
     violence for--
       ``(A) children and youth who are not normally served by 
     State educational agencies or local educational agencies; or
       ``(B) populations that need special services or additional 
     resources (such as youth in juvenile detention facilities, 
     runaway or homeless children and youth, pregnant and 
     parenting teenagers, and school dropouts).
       ``(3) Special consideration.--In awarding funds under 
     paragraph (1), a chief executive officer shall give special 
     consideration to grantees that pursue a comprehensive 
     approach to drug and violence prevention that includes 
     providing and incorporating mental health services related to 
     drug and violence prevention in their program.
       ``(4) Peer review.--Grants or contracts awarded under this 
     section shall be subject to a peer review process.
       ``(5) Use of funds.--Grants and contracts under this 
     section shall be used to implement drug and violence 
     prevention activities, including--
       ``(A) activities that complement and support local 
     educational agency activities under section 4115, including 
     developing and implementing activities to prevent and reduce 
     violence associated with prejudice and intolerance;
       ``(B) dissemination of information about drug and violence 
     prevention; and
       ``(C) development and implementation of community-wide drug 
     and violence prevention planning and organizing.
       ``(6) Administrative costs.--The chief executive officer of 
     a State may use not more than 3 percent of the amount 
     described in paragraph (1) for the administrative costs 
     incurred in carrying out the duties of such officer under 
     this section.
       ``(b) In State Distribution.--
       ``(1) In general.--A State educational agency shall 
     distribute not less than 93 percent of the amount made 
     available to the State under section 4111(b), less the amount 
     reserved under subsection (a) of this section, to its local 
     educational agencies.
       ``(2) State administration costs.--
       ``(A) In general.--A State educational agency may use not 
     more than 3 percent of the amount made available to the State 
     under section 4111(b) for each fiscal year less the amount 
     reserved under subsection (a) of this section, for State 
     educational agency administrative costs, including the 
     implementation of the uniform management information and 
     reporting system as provided for under subsection (c)(3).
       ``(B) Additional amounts for the uniform management 
     information system.--In the case of fiscal year 2002, a State 
     educational agency may, in addition to amounts provided for 
     in subparagraph (A), use 1 percent of the amount made 
     available to the State educational agency under section 
     4111(b) for each fiscal year less the amount reserved under 
     subsection (a) of this section, for implementation of the 
     uniform management information and reporting system as 
     provided for under subsection (c)(3).
       ``(c) State Activities.--
       ``(1) In general.--A State educational agency may use not 
     more than 5 percent of the amount made available to the State 
     under section 4111(b) for each fiscal year less the amount 
     reserved under subsection (a) of this section, for activities 
     described in this subsection.
       ``(2) Activities.--A State educational agency shall use the 
     amounts described in paragraph (1), either directly, or 
     through grants and contracts, to plan, develop, and implement 
     capacity building, technical assistance and training, 
     evaluation, program improvement services, and coordination 
     activities for local educational agencies, community-based 
     organizations, and other public and private entities. Such 
     uses--
       ``(A) shall meet the principles of effectiveness described 
     in section 4115(a);
       ``(B) shall complement and support local uses of funds 
     under section 4115(b);
       ``(C) shall be in accordance with the purposes of this 
     part; and
       ``(D) may include, among others activities--
       ``(i) identification, development, evaluation, and 
     dissemination of drug and violence prevention strategies, 
     programs, activities, and other information;
       ``(ii) training, technical assistance, and demonstration 
     projects to address violence that is associated with 
     prejudice and intolerance; and
       ``(iii) financial assistance to enhance drug and violence 
     prevention resources available in areas that serve large 
     numbers of low-income children, are sparsely populated, or 
     have other special needs.
       ``(3) Uniform management information and reporting 
     system.--
       ``(A) Information and statistics.--A State shall establish 
     a uniform management information and reporting system.
       ``(B) Uses of funds.--A State may use funds described in 
     subparagraphs (A) and (B) of subsection (b)(2), either 
     directly or through grants and contracts, to implement the 
     uniform management information and reporting system described 
     in subparagraph (A), for the collection of information on--

[[Page 25708]]

       ``(i) truancy rates;
       ``(ii) the frequency, seriousness, and incidence of 
     violence and drug-related offenses resulting in suspensions 
     and expulsions in elementary schools and secondary schools in 
     the State;
       ``(iii) the types of curricula, programs, and services 
     provided by the chief executive officer, the State 
     educational agency, local educational agencies, and other 
     recipients of funds under this subpart; and
       ``(iv) the incidence and prevalence, age of onset, 
     perception of health risk, and perception of social 
     disapproval of drug use and violence by youth in schools and 
     communities.
       ``(C) Compilation of statistics.--In compiling the 
     statistics required for the uniform management information 
     and reporting system, the offenses described in subparagraph 
     (B)(ii) shall be defined pursuant to the State's criminal 
     code, but shall not identify victims of crimes or persons 
     accused of crimes. The collected data shall include incident 
     reports by school officials, anonymous student surveys, and 
     anonymous teacher surveys.
       ``(D) Reporting.--The information described under 
     subparagraph (B) shall be reported to the public and the data 
     referenced in clauses (i) and (ii) of such subparagraph shall 
     be reported to the State on a school-by-school basis.
       ``(E) Limitation.--Nothing in this subsection shall be 
     construed to authorize the Secretary to require particular 
     policies, procedures, or practices with respect to crimes 
     committed on school property or school security.

     ``SEC. 4113. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 4111(b) for any fiscal year, a State shall submit to 
     the Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1) contains a comprehensive plan for the use of funds by 
     the State educational agency and the chief executive officer 
     of the State to provide safe, orderly, and drug-free schools 
     and communities through programs and activities that 
     complement and support activities of local educational 
     agencies under section 4115(b), that comply with the 
     principles of effectiveness under section 4115(a), and that 
     otherwise are in accordance with the purpose of this part;
       ``(2) describes how activities funded under this subpart 
     will foster a safe and drug-free learning environment that 
     supports academic achievement;
       ``(3) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials and others, including the chief executive 
     officer, the chief State school officer, the head of the 
     State alcohol and drug abuse agency, the heads of the State 
     health and mental health agencies, the head of the State 
     criminal justice planning agency, the head of the State child 
     welfare agency, the head of the State board of education, or 
     their designees, and representatives of parents, students, 
     and community-based organizations;
       ``(4) describes how the State educational agency will 
     coordinate such agency's activities under this subpart with 
     the chief executive officer's drug and violence prevention 
     programs under this subpart and with the prevention efforts 
     of other State agencies and other programs, as appropriate, 
     in accordance with the provisions in section 9306;
       ``(5) provides an assurance that funds reserved under 
     section 4112(a) will not duplicate the efforts of the State 
     educational agency and local educational agencies with regard 
     to the provision of school-based drug and violence prevention 
     activities and that those funds will be used to serve 
     populations not normally served by the State educational 
     agencies and local educational agencies and populations that 
     need special services, such as school dropouts, suspended and 
     expelled students, youth in detention centers, runaway or 
     homeless children and youth, and pregnant and parenting 
     youth;
       ``(6) provides an assurance that the State will cooperate 
     with, and assist, the Secretary in conducting data collection 
     as required by section 4122;
       ``(7) provides an assurance that the local educational 
     agencies in the State will comply with the provisions of 
     section 9501 pertaining to the participation of private 
     school children and teachers in the programs and activities 
     under this subpart;
       ``(8) provides an assurance that funds under this subpart 
     will be used to increase the level of State, local, and other 
     non-Federal funds that would, in the absence of funds under 
     this subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(9) contains the results of a needs assessment conducted 
     by the State for drug and violence prevention programs, which 
     shall be based on ongoing State evaluation activities, 
     including data on--
       ``(A) the incidence and prevalence of illegal drug use and 
     violence among youth in schools and communities, including 
     the age of onset, the perception of health risks, and the 
     perception of social disapproval among such youth;
       ``(B) the prevalence of risk factors, including high or 
     increasing rates of reported cases of child abuse or domestic 
     violence;
       ``(C) the prevalence of protective factors, buffers, or 
     assets; and
       ``(D) other variables in the school and community 
     identified through scientifically based research;
       ``(10) provides a statement of the State's performance 
     measures for drug and violence prevention programs and 
     activities to be funded under this subpart that will be 
     focused on student behavior and attitudes, derived from the 
     needs assessment described in paragraph (9), and be developed 
     in consultation between the State and local officials, and 
     that consist of--
       ``(A) performance indicators for drug and violence 
     prevention programs and activities; and
       ``(B) levels of performance for each performance indicator;
       ``(11) describes the procedures the State will use for 
     assessing and publicly reporting progress toward meeting the 
     performance measures described in paragraph (10);
       ``(12) provides an assurance that the State application 
     will be available for public review after submission of the 
     application;
       ``(13) describes the special outreach activities that will 
     be carried out by the State educational agency and the chief 
     executive officer of the State to maximize the participation 
     of community-based organizations of demonstrated 
     effectiveness that provide services such as mentoring 
     programs in low-income communities;
       ``(14) describes how funds will be used by the State 
     educational agency and the chief executive officer of the 
     State to support, develop, and implement community-wide 
     comprehensive drug and violence prevention planning and 
     organizing activities;
       ``(15) describes how input from parents will be sought 
     regarding the use of funds by the State educational agency 
     and the chief executive officer of the State;
       ``(16) describes how the State educational agency will 
     review applications from local educational agencies, 
     including how the agency will receive input from parents in 
     such review;
       ``(17) describes how the State educational agency will 
     monitor the implementation of activities under this subpart, 
     and provide technical assistance for local educational 
     agencies, community-based organizations, other public 
     entities, and private organizations;
       ``(18) describes how the chief executive officer of the 
     State will award funds under section 4112(a) and implement a 
     plan for monitoring the performance of, and providing 
     technical assistance to, recipients of such funds; and
       ``(19) includes any other information the Secretary may 
     require.
       ``(b) Interim Application.--
       ``(1) Authority.--Notwithstanding any other provision of 
     this section, a State may submit for fiscal year 2002 a 1-
     year interim application and plan for the use of funds under 
     this subpart that is consistent with the requirements of this 
     section and contains such information as the Secretary may 
     specify in regulations.
       ``(2) Purpose.--The purpose of such interim application and 
     plan shall be to afford the State the opportunity to fully 
     develop and review such State's application and comprehensive 
     plan otherwise required by this section.
       ``(3) Exception.--A State may not receive a grant under 
     this subpart for a fiscal year after fiscal year 2002 unless 
     the Secretary has approved such State's application and 
     comprehensive plan as described in subsection (a).
       ``(c) Approval Process.--
       ``(1) Deemed approval.--An application submitted by a State 
     pursuant to this section shall undergo peer review by the 
     Secretary and shall be deemed to be approved by the Secretary 
     unless the Secretary makes a written determination, prior to 
     the expiration of the 120-day period beginning on the date on 
     which the Secretary received the application, that the 
     application is not in compliance with this subpart.
       ``(2) Disapproval.--The Secretary shall not finally 
     disapprove the application, except after giving the State 
     educational agency and the chief executive officer of the 
     State notice and an opportunity for a hearing.
       ``(3) Notification.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     this subpart, the Secretary shall--
       ``(A) give the State educational agency and the chief 
     executive officer of the State notice and an opportunity for 
     a hearing; and
       ``(B) notify the State educational agency and the chief 
     executive officer of the State of the finding of 
     noncompliance, and in such notification, shall--
       ``(i) cite the specific provisions in the application that 
     are not in compliance; and
       ``(ii) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(4) Response.--If the State educational agency and the 
     chief executive officer of the State respond to the 
     Secretary's notification described in paragraph (3)(B) during 
     the 45-day period beginning on the date on which the agency 
     received the notification, and resubmit the application with 
     the requested information described in paragraph (3)(B)(ii), 
     the Secretary shall approve or disapprove such application 
     prior to the later of--
       ``(A) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(B) the expiration of the 120-day period described in 
     paragraph (1).
       ``(5) Failure to respond.--If the State educational agency 
     and the chief executive officer of the State do not respond 
     to the Secretary's notification described in paragraph (3)(B) 
     during the 45-day period beginning on the date on which the 
     agency received the notification, such application shall be 
     deemed to be disapproved.

     ``SEC. 4114. LOCAL EDUCATIONAL AGENCY PROGRAM.


       ``(a) In General.--
       ``(1) Funds to local educational agencies.--A State shall 
     provide the amount

[[Page 25709]]

     made available to the State under this subpart, less the 
     amounts reserved under section 4112 to local educational 
     agencies for drug and violence prevention and education 
     programs and activities as follows:
       ``(A) 60 percent of such amount based on the relative 
     amount such agencies received under part A of title I for the 
     preceding fiscal year.
       ``(B) 40 percent of such amount based on the relative 
     enrollments in public and private nonprofit elementary 
     schools and secondary schools within the boundaries of such 
     agencies.
       ``(2) Administrative costs.--Of the amount received under 
     paragraph (1), a local educational agency may use not more 
     than 2 percent for the administrative costs of carrying out 
     its responsibilities under this subpart.
       ``(3) Return of funds to state; reallocation.--
       ``(A) Return.--Except as provided in subparagraph (B), upon 
     the expiration of the 1-year period beginning on the date on 
     which a local educational agency receives its allocation 
     under this subpart--
       ``(i) such agency shall return to the State educational 
     agency any funds from such allocation that remain 
     unobligated; and
       ``(ii) the State educational agency shall reallocate any 
     such amount to local educational agencies that have submitted 
     plans for using such amount for programs or activities on a 
     timely basis.
       ``(B) Carryover.--In any fiscal year, a local educational 
     agency, may retain for obligation in the succeeding fiscal 
     year--
       ``(i) an amount equal to not more than 25 percent of the 
     allocation it received under this subpart for such fiscal 
     year; or
       ``(ii) upon a demonstration of good cause by such agency 
     and approval by the State educational agency, an amount that 
     exceeds 25 percent of such allocation.
       ``(C) Reallocation.--If a local educational agency chooses 
     not to apply to receive the amount allocated to such agency 
     under subsection (a), or if such agency's application under 
     subsection (d) is disapproved by the State educational 
     agency, the State educational agency shall reallocate such 
     amount to one or more of its other local educational 
     agencies.
       ``(b) Eligibility.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency desiring a 
     subgrant shall submit an application to the State educational 
     agency in accordance with subsection (d). Such an application 
     shall be amended, as necessary, to reflect changes in the 
     activities and programs of the local educational agency.
       ``(c) Development.--
       ``(1) Consultation.--
       ``(A) In general.--A local educational agency shall develop 
     its application through timely and meaningful consultation 
     with State and local government representatives, 
     representatives of schools to be served (including private 
     schools), teachers and other staff, parents, students, 
     community-based organizations, and others with relevant and 
     demonstrated expertise in drug and violence prevention 
     activities (such as medical, mental health, and law 
     enforcement professionals).
       ``(B) Continued consultation.--On an ongoing basis, the 
     local educational agency shall consult with such 
     representatives and organizations in order to seek advice 
     regarding how best to coordinate such agency's activities 
     under this subpart with other related strategies, programs, 
     and activities being conducted in the community.
       ``(2) Design and development.--To ensure timely and 
     meaningful consultation under paragraph (1), a local 
     educational agency at the initial stages of design and 
     development of a program or activity shall consult, in 
     accordance with this subsection, with appropriate entities 
     and persons on issues regarding the design and development of 
     the program or activity, including efforts to meet the 
     principles of effectiveness described in section 4115(a).
       ``(d) Contents of Applications.--An application submitted 
     by a local educational agency under this section shall 
     contain--
       ``(1) an assurance that the activities or programs to be 
     funded comply with the principles of effectiveness described 
     in section 4115(a) and foster a safe and drug-free learning 
     environment that supports academic achievement;
       ``(2) a detailed explanation of the local educational 
     agency's comprehensive plan for drug and violence prevention, 
     including a description of--
       ``(A) how the plan will be coordinated with programs under 
     this Act, and other Federal, State, and local programs for 
     drug and violence prevention, in accordance with section 
     9306;
       ``(B) the local educational agency's performance measures 
     for drug and violence prevention programs and activities, 
     that shall consist of--
       ``(i) performance indicators for drug and violence 
     prevention programs and activities; including--

       ``(I) specific reductions in the prevalence of identified 
     risk factors; and
       ``(II) specific increases in the prevalence of protective 
     factors, buffers, or assets if any have been identified; and

       ``(ii) levels of performance for each performance 
     indicator;
       ``(C) how such agency will assess and publicly report 
     progress toward attaining its performance measures;
       ``(D) the drug and violence prevention activity or program 
     to be funded, including how the activity or program will meet 
     the principles of effectiveness described in section 4115(a), 
     and the means of evaluating such activity or program; and
       ``(E) how the services will be targeted to schools and 
     students with the greatest need;
       ``(3) a description for how the results of the evaluations 
     of the effectiveness of the program will be used to refine, 
     improve, and strengthen the program;
       ``(4) an assurance that funds under this subpart will be 
     used to increase the level of State, local, and other non-
     Federal funds that would, in the absence of funds under this 
     subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(5) a description of the mechanisms used to provide 
     effective notice to the community of an intention to submit 
     an application under this subpart;
       ``(6) an assurance that drug and violence prevention 
     programs supported under this subpart convey a clear and 
     consistent message that acts of violence and the illegal use 
     of drugs are wrong and harmful;
       ``(7) an assurance that the applicant has, or the schools 
     to be served have, a plan for keeping schools safe and drug-
     free that includes--
       ``(A) appropriate and effective school discipline policies 
     that prohibit disorderly conduct, the illegal possession of 
     weapons, and the illegal use, possession, distribution, and 
     sale of tobacco, alcohol, and other drugs by students;
       ``(B) security procedures at school and while students are 
     on the way to and from school;
       ``(C) prevention activities that are designed to create and 
     maintain safe, disciplined, and drug-free environments;
       ``(D) a crisis management plan for responding to violent or 
     traumatic incidents on school grounds; and
       ``(E) a code of conduct policy for all students that 
     clearly states the responsibilities of students, teachers, 
     and administrators in maintaining a classroom environment 
     that--
       ``(i) allows a teacher to communicate effectively with all 
     students in the class;
       ``(ii) allows all students in the class to learn;
       ``(iii) has consequences that are fair, and developmentally 
     appropriate;
       ``(iv) considers the student and the circumstances of the 
     situation; and
       ``(v) is enforced accordingly;
       ``(8) an assurance that the application and any waiver 
     request under section 4115(a)(3) will be available for public 
     review after submission of the application; and
       ``(9) such other assurances, goals, and objectives 
     identified through scientifically based research that the 
     State may reasonably require in accordance with the purpose 
     of this part.
       ``(e) Review of Application.--
       ``(1) In general.--In reviewing local applications under 
     this section, a State educational agency shall use a peer 
     review process or other methods of assuring the quality of 
     such applications.
       ``(2) Considerations.--In determining whether to approve 
     the application of a local educational agency under this 
     section, a State educational agency shall consider the 
     quality of application and the extent to which the 
     application meets the principles of effectiveness described 
     in section 4115(a).
       ``(f) Approval Process.--
       ``(1) Deemed approval.--An application submitted by a local 
     educational agency pursuant to this section shall be deemed 
     to be approved by the State educational agency unless the 
     State educational agency makes a written determination, prior 
     to the expiration of the 120-day period beginning on the date 
     on which the State educational agency received the 
     application, that the application is not in compliance with 
     this subpart.
       ``(2) Disapproval.--The State educational agency shall not 
     finally disapprove the application, except after giving the 
     local educational agency notice and opportunity for a 
     hearing.
       ``(3) Notification.--If the State educational agency finds 
     that the application is not in compliance, in whole or in 
     part, with this subpart, the State educational agency shall--
       ``(A) give the local educational agency notice and an 
     opportunity for a hearing; and
       ``(B) notify the local educational agency of the finding of 
     noncompliance, and in such notification, shall--
       ``(i) cite the specific provisions in the application that 
     are not in compliance; and
       ``(ii) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(4) Response.--If the local educational agency responds 
     to the State educational agency's notification described in 
     paragraph (3)(B) during the 45-day period beginning on the 
     date on which the agency received the notification, and 
     resubmits the application with the requested information 
     described in paragraph (3)(B)(ii), the State educational 
     agency shall approve or disapprove such application prior to 
     the later of--
       ``(A) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(B) the expiration of the 120-day period described in 
     paragraph (1).
       ``(5) Failure to respond.--If the local educational agency 
     does not respond to the State

[[Page 25710]]

     educational agency's notification described in paragraph 
     (3)(B) during the 45-day period beginning on the date on 
     which the agency received the notification, such application 
     shall be deemed to be disapproved.

     ``SEC. 4115. AUTHORIZED ACTIVITIES.

       ``(a) Principles of Effectiveness.--
       ``(1) In general.--For a program or activity developed 
     pursuant to this subpart to meet the principles of 
     effectiveness, such program or activity shall--
       ``(A) be based on an assessment of objective data regarding 
     the incidence of violence and illegal drug use in the 
     elementary schools and secondary schools and communities to 
     be served, including an objective analysis of the current 
     conditions and consequences regarding violence and illegal 
     drug use, including delinquency and serious discipline 
     problems, among students who attend such schools (including 
     private school students who participate in the drug and 
     violence prevention program) that is based on ongoing local 
     assessment or evaluation activities;
       ``(B) be based on an established set of performance 
     measures aimed at ensuring that the elementary schools and 
     secondary schools and communities to be served by the program 
     have a safe, orderly, and drug-free learning environment;
       ``(C) be based on scientifically based research that 
     provides evidence that the program to be used will reduce 
     violence and illegal drug use;
       ``(D) be based on an analysis of the data reasonably 
     available at the time, of the prevalence of risk factors, 
     including high or increasing rates of reported cases of child 
     abuse and domestic violence; protective factors, buffers, 
     assets; or other variables in schools and communities in the 
     State identified through scientifically based research; and
       ``(E) include meaningful and ongoing consultation with and 
     input from parents in the development of the application and 
     administration of the program or activity.
       ``(2) Periodic evaluation.--
       ``(A) Requirement.--The program or activity shall undergo a 
     periodic evaluation to assess its progress toward reducing 
     violence and illegal drug use in schools to be served based 
     on performance measures described in section 4114(d)(2)(B).
       ``(B) Use of results.--The results shall be used to refine, 
     improve, and strengthen the program, and to refine the 
     performance measures, and shall also be made available to the 
     public upon request, with public notice of such availability 
     provided.
       ``(3) Waiver.--A local educational agency may apply to the 
     State for a waiver of the requirement of subsection (a)(1)(C) 
     to allow innovative activities or programs that demonstrate 
     substantial likelihood of success.
       ``(b) Local Educational Agency Activities.--
       ``(1) Program requirements.--A local educational agency 
     shall use funds made available under section 4114 to develop, 
     implement, and evaluate comprehensive programs and 
     activities, which are coordinated with other school and 
     community-based services and programs, that shall--
       ``(A) foster a safe and drug-free learning environment that 
     supports academic achievement;
       ``(B) be consistent with the principles of effectiveness 
     described in subsection (a)(1);
       ``(C) be designed to--
       ``(i) prevent or reduce violence; the use, possession and 
     distribution of illegal drugs; and delinquency; and
       ``(ii) create a well disciplined environment conducive to 
     learning, which includes consultation between teachers, 
     principals, and other school personnel to identify early 
     warning signs of drug use and violence and to provide 
     behavioral interventions as part of classroom management 
     efforts; and
       ``(D) include activities to--
       ``(i) promote the involvement of parents in the activity or 
     program;
       ``(ii) promote coordination with community groups and 
     coalitions, and government agencies; and
       ``(iii) distribute information about the local educational 
     agency's needs, goals, and programs under this subpart.
       ``(2) Authorized activities.--Each local educational 
     agency, or consortium of such agencies, that receives a 
     subgrant under this subpart may use such funds to carry out 
     activities that comply with the principles of effectiveness 
     described in subsection (a), such as the following:
       ``(A) Age appropriate and developmentally based activities 
     that--
       ``(i) address the consequences of violence and the illegal 
     use of drugs, as appropriate;
       ``(ii) promote a sense of individual responsibility;
       ``(iii) teach students that most people do not illegally 
     use drugs;
       ``(iv) teach students to recognize social and peer pressure 
     to use drugs illegally and the skills for resisting illegal 
     drug use;
       ``(v) teach students about the dangers of emerging drugs;
       ``(vi) engage students in the learning process; and
       ``(vii) incorporate activities in secondary schools that 
     reinforce prevention activities implemented in elementary 
     schools.
       ``(B) Activities that involve families, community sectors 
     (which may include appropriately trained seniors), and a 
     variety of drug and violence prevention providers in setting 
     clear expectations against violence and illegal use of drugs 
     and appropriate consequences for violence and illegal use of 
     drugs.
       ``(C) Dissemination of drug and violence prevention 
     information to schools and the community.
       ``(D) Professional development and training for, and 
     involvement of, school personnel, pupil services personnel, 
     parents, and interested community members in prevention, 
     education, early identification and intervention, mentoring, 
     or rehabilitation referral, as related to drug and violence 
     prevention.
       ``(E) Drug and violence prevention activities that may 
     include the following:
       ``(i) Community-wide planning and organizing activities to 
     reduce violence and illegal drug use, which may include gang 
     activity prevention.
       ``(ii) Acquiring and installing metal detectors, electronic 
     locks, surveillance cameras, or other related equipment and 
     technologies.
       ``(iii) Reporting criminal offenses committed on school 
     property.
       ``(iv) Developing and implementing comprehensive school 
     security plans or obtaining technical assistance concerning 
     such plans, which may include obtaining a security assessment 
     or assistance from the School Security and Technology 
     Resource Center at the Sandia National Laboratory located in 
     Albuquerque, New Mexico.
       ``(v) Supporting safe zones of passage activities that 
     ensure that students travel safely to and from school, which 
     may include bicycle and pedestrian safety programs.
       ``(vi) The hiring and mandatory training, based on 
     scientific research, of school security personnel (including 
     school resource officers) who interact with students in 
     support of youth drug and violence prevention activities 
     under this part that are implemented in the school.
       ``(vii) Expanded and improved school-based mental health 
     services related to illegal drug use and violence, including 
     early identification of violence and illegal drug use, 
     assessment, and direct or group counseling services provided 
     to students, parents, families, and school personnel by 
     qualified school-based mental health service providers.
       ``(viii) Conflict resolution programs, including peer 
     mediation programs that educate and train peer mediators and 
     a designated faculty supervisor, and youth anti-crime and 
     anti-drug councils and activities.
       ``(ix) Alternative education programs or services for 
     violent or drug abusing students that reduce the need for 
     suspension or expulsion or that serve students who have been 
     suspended or expelled from the regular educational settings, 
     including programs or services to assist students to make 
     continued progress toward meeting the State academic 
     achievement standards and to reenter the regular education 
     setting.
       ``(x) Counseling, mentoring, referral services, and other 
     student assistance practices and programs, including 
     assistance provided by qualified school-based mental health 
     services providers and the training of teachers by school-
     based mental health services providers in appropriate 
     identification and intervention techniques for students at 
     risk of violent behavior and illegal use of drugs.
       ``(xi) Programs that encourage students to seek advice 
     from, and to confide in, a trusted adult regarding concerns 
     about violence and illegal drug use.
       ``(xii) Drug and violence prevention activities designed to 
     reduce truancy.
       ``(xiii) Age-appropriate, developmentally-based violence 
     prevention and education programs that address victimization 
     associated with prejudice and intolerance, and that include 
     activities designed to help students develop a sense of 
     individual responsibility and respect for the rights of 
     others, and to resolve conflicts without violence.
       ``(xiv) Consistent with the fourth amendment to the 
     Constitution of the United States, the testing of a student 
     for illegal drug use or the inspecting of a student's locker 
     for weapons or illegal drugs or drug paraphernalia, including 
     at the request of or with the consent of a parent or legal 
     guardian of the student, if the local educational agency 
     elects to so test or inspect.
       ``(xv) Emergency intervention services following traumatic 
     crisis events, such as a shooting, major accident, or a drug-
     related incident that have disrupted the learning 
     environment.
       ``(xvi) Establishing or implementing a system for 
     transferring suspension and expulsion records, consistent 
     with section 444 of the General Education Provisions Act (20 
     U.S.C. 1232g), by a local educational agency to any public or 
     private elementary school or secondary school.
       ``(xvii) Developing and implementing character education 
     programs, as a component of drug and violence prevention 
     programs, that take into account the views of parents of the 
     students for whom the program is intended and such students, 
     such as a program described in subpart 3 of part D of title 
     V.
       ``(xviii) Establishing and maintaining a school safety 
     hotline.
       ``(xix) Community service, including community service 
     performed by expelled students, and service-learning 
     projects.
       ``(xx) Conducting a nationwide background check of each 
     local educational agency employee, regardless of when hired, 
     and prospective employees for the purpose of determining 
     whether the employee or prospective employee has been 
     convicted of a crime that bears upon the employee's fitness--

       ``(I) to be responsible for the safety or well-being of 
     children;
       ``(II) to serve in the particular capacity in which the 
     employee or prospective employee is or will be employed; or

[[Page 25711]]

       ``(III) to otherwise be employed by the local educational 
     agency.

       ``(xxi) Programs to train school personnel to identify 
     warning signs of youth suicide and to create an action plan 
     to help youth at risk of suicide.
       ``(xxii) Programs that respond to the needs of students who 
     are faced with domestic violence or child abuse.
       ``(F) The evaluation of any of the activities authorized 
     under this subsection and the collection of objective data 
     used to assess program needs, program implementation, or 
     program success in achieving program goals and objectives.
       ``(c) Limitation.--
       ``(1) In general.--Except as provided in paragraph (2), not 
     more than 40 percent of the funds available to a local 
     educational agency under this subpart may be used to carry 
     out the activities described in clauses (ii) through (vi) of 
     subsection (b)(2)(E), of which not more than 50 percent of 
     such amount may be used to carry out the activities described 
     in clauses (ii) through (v) of such subsection.
       ``(2) Exception.--A local educational agency may use funds 
     under this subpart for activities described in clauses (ii) 
     through (v) of subsection (b)(2)(E) only if funding for these 
     activities is not received from other Federal agencies.
       ``(d) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit the use of funds under this subpart 
     by any local educational agency or school for the 
     establishment or implementation of a school uniform policy if 
     such policy is part of the overall comprehensive drug and 
     violence prevention plan of the State involved and is 
     supported by the State's needs assessment and other 
     scientifically based research information.

     ``SEC. 4116. REPORTING.

       ``(a) State Report.--
       ``(1) In general.--By December 1, 2003, and every 2 years 
     thereafter, the chief executive officer of the State, in 
     cooperation with the State educational agency, shall submit 
     to the Secretary a report--
       ``(A) on the implementation and outcomes of State programs 
     under section 4112(a)(1) and section 4112(c) and local 
     educational agency programs under section 4115(b), as well as 
     an assessment of their effectiveness;
       ``(B) on the State's progress toward attaining its 
     performance measures for drug and violence prevention under 
     section 4113(a)(10); and
       ``(C) on the State's efforts to inform parents of, and 
     include parents in, violence and drug prevention efforts.
       ``(2) Special rule.--The report required by this subsection 
     shall be--
       ``(A) in the form specified by the Secretary;
       ``(B) based on the State's ongoing evaluation activities, 
     and shall include data on the incidence and prevalence, age 
     of onset, perception of health risk, and perception of social 
     disapproval of drug use and violence by youth in schools and 
     communities; and
       ``(C) made readily available to the public.
       ``(b) Local Educational Agency Report.--
       ``(1) In general.--Each local educational agency receiving 
     funds under this subpart shall submit to the State 
     educational agency such information that the State requires 
     to complete the State report required by subsection (a), 
     including a description of how parents were informed of, and 
     participated in, violence and drug prevention efforts.
       ``(2) Availability.--Information under paragraph (1) shall 
     be made readily available to the public.
       ``(3) Provision of documentation.--Not later than January 1 
     of each year that a State is required to report under 
     subsection (a), the Secretary shall provide to the State 
     education agency all of the necessary documentation required 
     for compliance with this section.

     ``SEC. 4117. PROGRAMS FOR NATIVE HAWAIIANS.

       ``(a) General Authority.--From the funds made available 
     pursuant to section 4111(a)(1)(C) to carry out this section, 
     the Secretary shall make grants to or enter into cooperative 
     agreements or contracts with organizations primarily serving 
     and representing Native Hawaiians for the benefit of Native 
     Hawaiians to plan, conduct, and administer programs, or 
     portions thereof, that are authorized by and consistent with 
     the provisions of this subpart.
       ``(b) Definition of Native Hawaiian.--For the purposes of 
     this section, the term `Native Hawaiian' means any individual 
     any of whose ancestors were natives, prior to 1778, of the 
     area which now comprises the State of Hawaii.

                     ``Subpart 2--National Programs

     ``SEC. 4121. FEDERAL ACTIVITIES.

       ``(a) Program Authorized.--From funds made available to 
     carry out this subpart under section 4003(2), the Secretary, 
     in consultation with the Secretary of Health and Human 
     Services, the Director of the Office of National Drug Control 
     Policy, and the Attorney General, shall carry out programs to 
     prevent the illegal use of drugs and violence among, and 
     promote safety and discipline for, students. The Secretary 
     shall carry out such programs directly, or through grants, 
     contracts, or cooperative agreements with public and private 
     entities and individuals, or through agreements with other 
     Federal agencies, and shall coordinate such programs with 
     other appropriate Federal activities. Such programs may 
     include--
       ``(1) the development and demonstration of innovative 
     strategies for the training of school personnel, parents, and 
     members of the community for drug and violence prevention 
     activities based on State and local needs;
       ``(2) the development, demonstration, scientifically based 
     evaluation, and dissemination of innovative and high quality 
     drug and violence prevention programs and activities, based 
     on State and local needs, which may include--
       ``(A) alternative education models, either established 
     within a school or separate and apart from an existing 
     school, that are designed to promote drug and violence 
     prevention, reduce disruptive behavior, reduce the need for 
     repeat suspensions and expulsions, enable students to meet 
     challenging State academic standards, and enable students to 
     return to the regular classroom as soon as possible;
       ``(B) community service and service-learning projects, 
     designed to rebuild safe and healthy neighborhoods and 
     increase students' sense of individual responsibility;
       ``(C) video-based projects developed by noncommercial 
     telecommunications entities that provide young people with 
     models for conflict resolution and responsible 
     decisionmaking; and
       ``(D) child abuse education and prevention programs for 
     elementary and secondary students;
       ``(3) the provision of information on drug abuse education 
     and prevention to the Secretary of Health and Human Services 
     for dissemination;
       ``(4) the provision of information on violence prevention 
     and education and school safety to the Department of Justice 
     for dissemination;
       ``(5) technical assistance to chief executive officers, 
     State agencies, local educational agencies, and other 
     recipients of funding under this part to build capacity to 
     develop and implement high-quality, effective drug and 
     violence prevention programs consistent with the principles 
     of effectiveness in section 4115(a);
       ``(6) assistance to school systems that have particularly 
     severe drug and violence problems, including hiring drug 
     prevention and school safety coordinators, or assistance to 
     support appropriate response efforts to crisis situations;
       ``(7) the development of education and training programs, 
     curricula, instructional materials, and professional training 
     and development for preventing and reducing the incidence of 
     crimes and conflicts motivated by hate in localities most 
     directly affected by hate crimes;
       ``(8) activities in communities designated as empowerment 
     zones or enterprise communities that will connect schools to 
     community-wide efforts to reduce drug and violence problems; 
     and
       ``(9) other activities in accordance with the purpose of 
     this part, based on State and local needs.
       ``(b) Peer Review.--The Secretary shall use a peer review 
     process in reviewing applications for funds under this 
     section.

     ``SEC. 4122. IMPACT EVALUATION.

       ``(a) Biennial Evaluation.--The Secretary, in consultation 
     with the Safe and Drug-Free Schools and Communities Advisory 
     Committee described in section 4124, shall conduct an 
     independent biennial evaluation of the impact of programs 
     assisted under this subpart and of other recent and new 
     initiatives to combat violence and illegal drug use in 
     schools. The evaluation shall report on whether community and 
     local educational agency programs funded under this subpart--
       ``(1) comply with the principles of effectiveness described 
     in section 4115(a);
       ``(2) have appreciably reduced the level of illegal drug, 
     alcohol and tobacco use, and school violence and the illegal 
     presence of weapons at schools; and
       ``(3) have conducted effective parent involvement and 
     training programs.
       ``(b) Data Collection.--The National Center for Education 
     Statistics shall collect data, that is subject to independent 
     review, to determine the incidence and prevalence of illegal 
     drug use and violence in elementary schools and secondary 
     schools in the States. The collected data shall include 
     incident reports by schools officials, anonymous student 
     surveys, and anonymous teacher surveys.
       ``(c) Biennial Report.--Not later than January 1, 2003, and 
     every 2 years thereafter, the Secretary shall submit to the 
     President and Congress a report on the findings of the 
     evaluation conducted under subsection (a) together with the 
     data collected under subsection (b) and data available from 
     other sources on the incidence and prevalence, age of onset, 
     perception of health risk, and perception of social 
     disapproval of drug use and violence in elementary schools 
     and secondary schools in the States. The Secretary shall 
     include data submitted by the States pursuant to subsection 
     4116(a).

     ``SEC. 4123. HATE CRIME PREVENTION.

       ``(a) Grant Authorization.--From funds made available to 
     carry out this subpart under section 4003(2) the Secretary 
     may make grants to local educational agencies and community-
     based organizations for the purpose of providing assistance 
     to localities most directly affected by hate crimes.
       ``(b) Use of Funds.--
       ``(1) Program development.--Grants under this section may 
     be used to improve elementary and secondary educational 
     efforts, including--
       ``(A) development of education and training programs 
     designed to prevent and to reduce the incidence of crimes and 
     conflicts motivated by hate;
       ``(B) development of curricula for the purpose of improving 
     conflict or dispute resolution skills of students, teachers, 
     and administrators;
       ``(C) development and acquisition of equipment and 
     instructional materials to meet the needs of, or otherwise be 
     part of, hate crime or conflict programs; and
       ``(D) professional training and development for teachers 
     and administrators on the causes, effects, and resolutions of 
     hate crimes or hate-based conflicts.
       ``(2) Application.--In order to be eligible to receive a 
     grant under this section for any fiscal

[[Page 25712]]

     year, a local educational agency, or a local educational 
     agency in conjunction with a community-based organization, 
     shall submit an application to the Secretary in such form and 
     containing such information as the Secretary may reasonably 
     require.
       ``(3) Requirements.--Each application under paragraph (2) 
     shall include--
       ``(A) a request for funds for the purpose described in this 
     section;
       ``(B) a description of the schools and communities to be 
     served by the grants; and
       ``(C) assurances that Federal funds received under this 
     section shall be used to supplement, and not supplant, non-
     Federal funds.
       ``(4) Comprehensive plan.--Each application shall include a 
     comprehensive plan that contains--
       ``(A) a description of the hate crime or conflict problems 
     within the schools or the community targeted for assistance;
       ``(B) a description of the program to be developed or 
     augmented by such Federal and matching funds;
       ``(C) assurances that such program or activity shall be 
     administered by or under the supervision of the applicant;
       ``(D) procedures for the proper and efficient 
     administration of such program; and
       ``(E) fiscal control and fund accounting procedures as may 
     be necessary to ensure prudent use, proper disbursement, and 
     accurate accounting of funds received under this section.
       ``(c) Award of Grants.--
       ``(1) Selection of recipients.--The Secretary shall 
     consider the incidence of crimes and conflicts motivated by 
     bias in the targeted schools and communities in awarding 
     grants under this section.
       ``(2) Geographic distribution.--The Secretary shall 
     attempt, to the extent practicable, to achieve an equitable 
     geographic distribution of grant awards.
       ``(3) Dissemination of information.--The Secretary shall 
     attempt, to the extent practicable, to make available 
     information regarding successful hate crime prevention 
     programs, including programs established or expanded with 
     grants under this section.
       ``(d) Reports.--The Secretary shall submit to Congress a 
     report every 2 years that shall contain a detailed statement 
     regarding grants and awards, activities of grant recipients, 
     and an evaluation of programs established under this section.

     ``SEC. 4124. SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES 
                   ADVISORY COMMITTEE.

       ``(a) Establishment.--
       ``(1) In general.--There is hereby established an advisory 
     committee to be known as the `Safe and Drug Free Schools and 
     Communities Advisory Committee' (referred to in this section 
     as the `Advisory Committee') to--
       ``(A) consult with the Secretary under subsection (b);
       ``(B) coordinate Federal school- and community-based 
     substance abuse and violence prevention programs and reduce 
     duplicative research or services;
       ``(C) develop core data sets and evaluation protocols for 
     safe and drug-free school- and community-based programs;
       ``(D) provide technical assistance and training for safe 
     and drug-free school- and community-based programs;
       ``(E) provide for the diffusion of scientifically based 
     research to safe and drug-free school- and community-based 
     programs; and
       ``(F) review other regulations and standards developed 
     under this title.
       ``(2) Composition.--The Advisory Committee shall be 
     composed of representatives from--
       ``(A) the Department of Education;
       ``(B) the Centers for Disease Control and Prevention;
       ``(C) the National Institute on Drug Abuse;
       ``(D) the National Institute on Alcoholism and Alcohol 
     Abuse;
       ``(E) the Center for Substance Abuse Prevention;
       ``(F) the Center for Mental Health Services;
       ``(G) the Office of Juvenile Justice and Delinquency 
     Prevention;
       ``(H) the Office of National Drug Control Policy;
       ``(I) State and local governments, including education 
     agencies; and
       ``(J) researchers and expert practitioners.
       ``(3) Consultation.--In carrying out its duties under this 
     section, the Advisory Committee shall annually consult with 
     interested State and local coordinators of school- and 
     community-based substance abuse and violence prevention 
     programs and other interested groups.
       ``(b) Programs.--
       ``(1) In general.--From amounts made available under 
     section 4003(2) to carry out this subpart, the Secretary, in 
     consultation with the Advisory Committee, shall carry out 
     scientifically based research programs to strengthen the 
     accountability and effectiveness of the State, chief 
     executive officer's, and national programs under this part.
       ``(2) Grants, contracts or cooperative agreements.--The 
     Secretary shall carry out paragraph (1) directly or through 
     grants, contracts, or cooperative agreements with public and 
     private entities and individuals or through agreements with 
     other Federal agencies.
       ``(3) Coordination.--The Secretary shall coordinate 
     programs under this section with other appropriate Federal 
     activities.
       ``(4) Activities.--Activities that may be carried out under 
     programs funded under this section may include--
       ``(A) the provision of technical assistance and training, 
     in collaboration with other Federal agencies utilizing their 
     expertise and national and regional training systems, for 
     Governors, State educational agencies and local educational 
     agencies to support high quality, effective programs that--
       ``(i) provide a thorough assessment of the substance abuse 
     and violence problem;
       ``(ii) utilize objective data and the knowledge of a wide 
     range of community members;
       ``(iii) develop measurable goals and objectives; and
       ``(iv) implement scientifically based research activities 
     that have been shown to be effective and that meet identified 
     needs;
       ``(B) the provision of technical assistance and training to 
     foster program accountability;
       ``(C) the diffusion and dissemination of best practices and 
     programs;
       ``(D) the development of core data sets and evaluation 
     tools;
       ``(E) program evaluations;
       ``(F) the provision of information on drug abuse education 
     and prevention to the Secretary of Health and Human Services 
     for dissemination by the clearinghouse for alcohol and drug 
     abuse information established under section 501(d)(16) of the 
     Public Health Service Act; and
       ``(G) other activities that meet unmet needs related to the 
     purpose of this part and that are undertaken in consultation 
     with the Advisory Committee.

     ``SEC. 4125. NATIONAL COORDINATOR PROGRAM.

       ``(a) In General.--From funds made available to carry out 
     this subpart under section 4003(2), the Secretary may provide 
     for the establishment of a National Coordinator Program under 
     which the Secretary shall award grants to local educational 
     agencies for the hiring of drug prevention and school safety 
     program coordinators.
       ``(b) Use of Funds.--Amounts received under a grant under 
     subsection (a) shall be used by local educational agencies to 
     recruit, hire, and train individuals to serve as drug 
     prevention and school safety program coordinators in schools 
     with significant drug and school safety problems. Such 
     coordinators shall be responsible for developing, conducting, 
     and analyzing assessments of drug and crime problems at their 
     schools, and administering the safe and drug-free grant 
     program at such schools.

     ``SEC. 4126. COMMUNITY SERVICE GRANT PROGRAM.

       ``(a) In General.--From funds made available to carry out 
     this subpart under section 4003(2), the Secretary may make 
     grants to States to carry out programs under which students 
     expelled or suspended from school are required to perform 
     community service.
       (b) Allocation.--From the amount described in subsection 
     (a), the Secretary shall allocate among the States--
       ``(1) \1/2\ according to the ratio between the school-aged 
     population of each State and the school-aged population of 
     all the States; and
       ``(2) \1/2\ according to the ratio between the amount each 
     State received under section 1124A for the preceding year and 
     the sum of such amounts received by all the States.
       ``(c) 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 the States 
     under this section.
       ``(d) Reallotment.--The Secretary may reallot any amount of 
     any allotment to a State if the Secretary determines that the 
     State will be unable to use such amount within 2 years of 
     such allotment. Such reallotments shall be made on the same 
     basis as allotments are made under subsection (b).
       ``(e) Definition.--In this section, the term `State' means 
     each of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.

     ``SEC. 4127. SCHOOL SECURITY TECHNOLOGY AND RESOURCE CENTER.

       ``(a) Center.--From funds made available to carry out this 
     subpart under section 4003(2), the Secretary, the Attorney 
     General, and the Secretary of Energy may enter into an 
     agreement for the establishment at the Sandia National 
     Laboratories, in partnership with the National Law 
     Enforcement and Corrections Technology Center--Southeast and 
     the National Center for Rural Law Enforcement in Little Rock, 
     Arkansas, of a center to be known as the `School Security 
     Technology and Resource Center' (hereinafter in this section 
     `the Center').
       ``(b) Administration.--The Center established under 
     subsection (a) shall be administered by the Attorney General.
       ``(c) Functions.--The center established under subsection 
     (a) shall be a resource to local educational agencies for 
     school security assessments, security technology development, 
     evaluation and implementation, and technical assistance 
     relating to improving school security. The Center will also 
     conduct and publish school violence research, coalesce data 
     from victim communities, and monitor and report on schools 
     that implement school security strategies.

     ``SEC. 4128. NATIONAL CENTER FOR SCHOOL AND YOUTH SAFETY.

       ``(a) Establishment.--From funds made available to carry 
     out this subpart under section 4003(2), the Secretary of 
     Education and the Attorney General may jointly establish a 
     National Center for School and Youth Safety (in this section 
     referred to as the `Center'). The Secretary of Education and 
     the Attorney General may establish the Center at an existing 
     facility, if the facility has a history of performing two or 
     more of the duties described in subsection (b). The Secretary 
     of Education and the Attorney General shall jointly appoint a 
     Director of the Center to oversee the operation of the 
     Center.

[[Page 25713]]

       ``(b) Duties.--The Center shall carry out emergency 
     response, anonymous student hotline, consultation, and 
     information and outreach activities with respect to 
     elementary and secondary school safety, including the 
     following:
       ``(1) Emergency response.--The staff of the Center, and 
     such temporary contract employees as the Director of the 
     Center shall determine necessary, shall offer emergency 
     assistance to local communities to respond to school safety 
     crises. Such assistance shall include counseling for victims 
     and the community, assistance to law enforcement to address 
     short-term security concerns, and advice on how to enhance 
     school safety, prevent future incidents, and respond to 
     future incidents.
       ``(2) Anonymous student hotline.--The Center shall 
     establish a toll-free telephone number for students to report 
     criminal activity, threats of criminal activity, and other 
     high-risk behaviors such as substance abuse, gang or cult 
     affiliation, depression, or other warning signs of 
     potentially violent behavior. The Center shall relay the 
     reports, without attribution, to local law enforcement or 
     appropriate school hotlines. The Director of the Center shall 
     work with the Attorney General to establish guidelines for 
     Center staff to work with law enforcement around the Nation 
     to relay information reported through the hotline.
       ``(3) Consultation.--The Center shall establish a toll-free 
     number for the public to contact staff of the Center for 
     consultation regarding school safety. The Director of the 
     Center shall hire administrative staff and individuals with 
     expertise in enhancing school safety, including individuals 
     with backgrounds in counseling and psychology, education, law 
     enforcement and criminal justice, and community development 
     to assist in the consultation.
       ``(4) Information and outreach.--The Center shall compile 
     information about the best practices in school violence 
     prevention, intervention, and crisis management, and shall 
     serve as a clearinghouse for model school safety program 
     information. The staff of the Center shall work to ensure 
     local governments, school officials, parents, students, and 
     law enforcement officials and agencies are aware of the 
     resources, grants, and expertise available to enhance school 
     safety and prevent school crime. The staff of the Center 
     shall give special attention to providing outreach to rural 
     and impoverished communities.

     ``SEC. 4129. GRANTS TO REDUCE ALCOHOL ABUSE.

       ``(a) In General.--The Secretary, in consultation with the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, may award grants from funds made 
     available to carry out this subpart under section 4003(2), on 
     a competitive basis, to local educational agencies to enable 
     such agencies to develop and implement innovative and 
     effective programs to reduce alcohol abuse in secondary 
     schools.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     subsection (a), a local educational agency shall prepare and 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require, including--
       ``(1) a description of the activities to be carried out 
     under the grant;
       ``(2) an assurance that such activities will include 1 or 
     more of the proven strategies for reducing underage alcohol 
     abuse as determined by the Substance Abuse and Mental Health 
     Services Administration;
       ``(3) an explanation of how activities to be carried under 
     the grant that are not described in paragraph (2) will be 
     effective in reducing underage alcohol abuse, including 
     references to the past effectiveness of such activities;
       ``(4) an assurance that the applicant will submit to the 
     Secretary an annual report concerning the effectiveness of 
     the programs and activities funded under the grant; and
       ``(5) such other information as the Secretary determines 
     appropriate.
       ``(c) Streamlining of Process for Low-Income and Rural 
     LEAs.--The Secretary, in consultation with the Administrator 
     of the Substance Abuse and Mental Health Services 
     Administration, shall develop procedures to make the 
     application process for grants under this section more user-
     friendly, particularly for low-income and rural local 
     educational agencies.
       ``(d) Reservations.--
       ``(1) Samhsa.--The Secretary may reserve 20 percent of any 
     amount used to carry out this section to enable the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration to provide alcohol abuse resources 
     and start-up assistance to local educational agencies 
     receiving grants under this section.
       ``(2) Low-income and rural areas.--The Secretary may 
     reserve 25 percent of any amount used to carry out this 
     section to award grants to low-income and rural local 
     educational agencies.

     ``SEC. 4130. MENTORING PROGRAMS.

       ``(a) Purpose; Definitions.--
       ``(1) Purpose.--The purpose of this section is to make 
     assistance available to promote mentoring programs for 
     children with greatest need--
       ``(A) to assist such children in receiving support and 
     guidance from a mentor;
       ``(B) to improve the academic achievement of such children;
       ``(C) to improve interpersonal relationships between such 
     children and their peers, teachers, other adults, and family 
     members;
       ``(D) to reduce the dropout rate of such children; and
       ``(E) to reduce juvenile delinquency and involvement in 
     gangs by such children.
       ``(2) Definitions.--In this part:
       ``(A) Child with greatest need.--The term `child with 
     greatest need' means a child who is at risk of educational 
     failure, dropping out of school, or involvement in criminal 
     or delinquent activities, or who lacks strong positive role 
     models.
       ``(B) Eligible entity.--The term `eligible entity' means--
       ``(i) a local educational agency;
       ``(ii) a nonprofit, community-based organization; or
       ``(iii) a partnership between a local educational agency 
     and a nonprofit, community-based organization.
       ``(C) Mentor.--The term `mentor' means a responsible adult, 
     a postsecondary school student, or a secondary school student 
     who works with a child--
       ``(i) to provide a positive role model for the child;
       ``(ii) to establish a supportive relationship with the 
     child; and
       ``(iii) to provide the child with academic assistance and 
     exposure to new experiences and examples of opportunity that 
     enhance the ability of the child to become a responsible 
     adult.
       ``(D) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the United States Virgin Islands, Guam, American Samoa, 
     and the Commonwealth of the Northern Mariana Islands.
       ``(b) Grant Program.--
       ``(1) In general.--The Secretary may award grants from 
     funds made available to carry out this subpart under section 
     4003(2) to eligible entities to assist such entities in 
     establishing and supporting mentoring programs and activities 
     for children with greatest need that--
       ``(A) are designed to link such children (particularly 
     children living in rural areas, high-crime areas, or troubled 
     home environments, or children experiencing educational 
     failure) with mentors who--
       ``(i) have received training and support in mentoring;
       ``(ii) have been screened using appropriate reference 
     checks, child and domestic abuse record checks, and criminal 
     background checks; and
       ``(iii) are interested in working with children with 
     greatest need; and
       ``(B) are intended to achieve 1 or more of the following 
     goals with respect to children with greatest need:
       ``(i) Provide general guidance.
       ``(ii) Promote personal and social responsibility.
       ``(iii) Increase participation in, and enhance the ability 
     to benefit from, elementary and secondary education.
       ``(iv) Discourage illegal use of drugs and alcohol, 
     violence, use of dangerous weapons, promiscuous behavior, and 
     other criminal, harmful, or potentially harmful activity.
       ``(v) Encourage participation in community service and 
     community activities.
       ``(vi) Encourage setting goals and planning for the future, 
     including encouragement of graduation from secondary school 
     and planning for postsecondary education or training.
       ``(viii) Discourage involvement in gangs.
       ``(2) Use of funds.--
       ``(A) In general.--Each eligible entity awarded a grant 
     under this subsection shall use the grant funds for 
     activities that establish or implement a mentoring program, 
     that may include--
       ``(i) hiring of mentoring coordinators and support staff;
       ``(ii) providing for the professional development of 
     mentoring coordinators and support staff;
       ``(iii) recruitment, screening, and training of mentors;
       ``(iv) reimbursement to schools, if appropriate, for the 
     use of school materials or supplies in carrying out the 
     mentoring program;
       ``(v) dissemination of outreach materials;
       ``(vi) evaluation of the mentoring program using 
     scientifically based methods; and
       ``(vii) such other activities as the Secretary may 
     reasonably prescribe by rule.
       ``(B) Prohibited uses.--Notwithstanding subparagraph (A), 
     an eligible entity awarded a grant under this section may not 
     use the grant funds--
       ``(i) to directly compensate mentors;
       ``(ii) to obtain educational or other materials or 
     equipment that would otherwise be used in the ordinary course 
     of the eligible entity's operations;
       ``(iii) to support litigation of any kind; or
       ``(iv) for any other purpose reasonably prohibited by the 
     Secretary by rule.
       ``(3) Availability of funds.--Funds made available through 
     a grant under this section shall be available for obligation 
     for a period not to exceed 3 years.
       ``(4) Application.--Each eligible entity seeking a grant 
     under this section shall submit to the Secretary an 
     application that includes--
       ``(A) a description of the plan for the mentoring program 
     the eligible entity proposes to carry out with such grant;
       ``(B) information on the children expected to be served by 
     the mentoring program for which such grant is sought;
       ``(C) a description of the mechanism the eligible entity 
     will use to match children with mentors based on the needs of 
     the children;
       ``(D) an assurance that no mentor will be assigned to 
     mentor so many children that the assignment will undermine 
     the mentor's ability to be an effective mentor or the 
     mentor's ability to

[[Page 25714]]

     establish a close relationship (a one-to-one relationship, 
     where practicable) with each mentored child;
       ``(E) an assurance that the mentoring program will provide 
     children with a variety of experiences and support, 
     including--
       ``(i) emotional support;
       ``(ii) academic assistance; and
       ``(iii) exposure to experiences that the children might not 
     otherwise encounter on their own;
       ``(F) an assurance that the mentoring program will be 
     monitored to ensure that each child assigned a mentor 
     benefits from that assignment and that the child will be 
     assigned a new mentor if the relationship between the 
     original mentor and the child is not beneficial to the child;
       ``(G) information regarding how mentors and children will 
     be recruited to the mentoring program;
       ``(H) information regarding how prospective mentors will be 
     screened;
       ``(I) information on the training that will be provided to 
     mentors; and
       ``(J) information on the system that the eligible entity 
     will use to manage and monitor information relating to the 
     mentoring program's--
       ``(i) reference checks;
       ``(ii) child and domestic abuse record checks;
       ``(iii) criminal background checks; and
       ``(iv) procedure for matching children with mentors.
       ``(5) Selection.--
       ``(A) Competitive basis.--In accordance with this 
     subsection, the Secretary shall award grants to eligible 
     entities on a competitive basis.
       ``(B) Priority.--In awarding grants under subparagraph (A), 
     the Secretary shall give priority to each eligible entity 
     that--
       ``(i) serves children with greatest need living in rural 
     areas, high-crime areas, or troubled home environments, or 
     who attend schools with violence problems;
       ``(ii) provides high quality background screening of 
     mentors, training of mentors, and technical assistance in 
     carrying out mentoring programs; or
       ``(iii) proposes a school-based mentoring program.
       ``(C) Other considerations.--In awarding grants under 
     subparagraph (A), the Secretary shall also consider--
       ``(i) the degree to which the location of the mentoring 
     program proposed by each eligible entity contributes to a 
     fair distribution of mentoring programs with respect to urban 
     and rural locations;
       ``(ii) the quality of the mentoring program proposed by 
     each eligible entity, including--

       ``(I) the resources, if any, the eligible entity will 
     dedicate to providing children with opportunities for job 
     training or postsecondary education;
       ``(II) the degree to which parents, teachers, community-
     based organizations, and the local community have 
     participated, or will participate, in the design and 
     implementation of the proposed mentoring program;
       ``(III) the degree to which the eligible entity can ensure 
     that mentors will develop longstanding relationships with the 
     children they mentor;
       ``(IV) the degree to which the mentoring program will serve 
     children with greatest need in the 4th through 8th grades; 
     and
       ``(V) the degree to which the mentoring program will 
     continue to serve children from the 9th grade through 
     graduation from secondary school, as needed; and

       ``(iii) the capability of each eligible entity to 
     effectively implement its mentoring program.
       ``(D) Grant to each state.--Notwithstanding any other 
     provision of this subsection, in awarding grants under 
     subparagraph (A), the Secretary shall select not less than 1 
     grant recipient from each State for which there is an 
     eligible entity that submits an application of sufficient 
     quality pursuant to paragraph (4).
       ``(6) Model Screening Guidelines.--
       ``(A) In general.--Based on model screening guidelines 
     developed by the Office of Juvenile Programs of the 
     Department of Justice, the Secretary shall develop and 
     distribute to each eligible entity awarded a grant under this 
     section specific model guidelines for the screening of 
     mentors who seek to participate in mentoring programs 
     assisted under this section.
       ``(B) Background checks.--The guidelines developed under 
     this subsection shall include, at a minimum, a requirement 
     that potential mentors be subject to reference checks, child 
     and domestic abuse record checks, and criminal background 
     checks.

                      ``Subpart 3--Gun Possession

     ``SEC. 4141. GUN-FREE REQUIREMENTS.

       ``(a) Short Title.--This subpart may be cited as the ``Gun-
     Free Schools Act''.
       ``(b) Requirements.--
       ``(1) In general.--Each State receiving Federal funds under 
     the No Child Left Behind Act of 2001 shall have in effect a 
     State law requiring local educational agencies to expel from 
     school for a period of not less than one year a student who 
     is determined to have brought a firearm to a school, or to 
     have possessed a firearm at a school, under the jurisdiction 
     of local educational agencies in that State, except that such 
     State law shall allow the chief administering officer of a 
     local educational agency to modify such expulsion requirement 
     for a student on a case-by-case basis if such modification is 
     in writing.
       ``(2) Construction.--Nothing in this subpart shall be 
     construed to prevent a State from allowing a local 
     educational agency that has expelled a student from such a 
     student's regular school setting from providing educational 
     services to such student in an alternative setting.
       ``(3) Definition.--For the purpose of this section, the 
     term `firearm' has the same meaning given such term in 
     section 921(a) of title 18, United States Code.
       ``(c) Special Rule.--The provisions of this section shall 
     be construed in a manner consistent with the Individuals with 
     Disabilities Education Act.
       ``(d) Report to State.--Each local educational agency 
     requesting assistance from the State educational agency that 
     is to be provided from funds made available to the State 
     under the No Child Left Behind Act of 2001 shall provide to 
     the State, in the application requesting such assistance--
       ``(1) an assurance that such local educational agency is in 
     compliance with the State law required by subsection (b); and
       ``(2) a description of the circumstances surrounding any 
     expulsions imposed under the State law required by subsection 
     (b), including--
       ``(A) the name of the school concerned;
       ``(B) the number of students expelled from such school; and
       ``(C) the type of firearms concerned.
       ``(e) Reporting.--Each State shall report the information 
     described in subsection (d) to the Secretary on an annual 
     basis.
       ``(f) Definition.--For the purpose of subsection (d), the 
     term `school' means any setting that is under the control and 
     supervision of the local educational agency for the purpose 
     of student activities approved and authorized by the local 
     educational agency.
       ``(g) Exception.--Nothing in this section shall apply to a 
     firearm that is lawfully stored inside a locked vehicle on 
     school property, or if it is for activities approved and 
     authorized by the local educational agency and the local 
     educational agency adopts appropriate safeguards to ensure 
     student safety.
       ``(h) Policy Regarding Criminal Justice System Referral.--
       ``(1) In general.--No funds shall be made available under 
     the No Child Left Behind Act of 2001 to any local educational 
     agency unless such agency has a policy requiring referral to 
     the criminal justice or juvenile delinquency system of any 
     student who brings a firearm or weapon to a school served by 
     such agency.
       ``(2) Definitions.--For the purpose of this subsection, the 
     terms `firearm' and `school' have the same meaning given to 
     such terms by section 921(a) of title 18, United States Code.

                    ``Subpart 4--General Provisions

     ``SEC. 4151. DEFINITIONS.

       ``In this part:
       ``(1) Controlled substance.--The term `controlled 
     substance' means a drug or other substance identified under 
     Schedule I, II, III, IV, or V in section 202(c) of the 
     Controlled Substances Act (21 U.S.C. 812(c)).
       ``(2) Drug.--The term `drug' includes controlled 
     substances; the illegal use of alcohol and tobacco; and the 
     harmful, abusive, or addictive use of substances, including 
     inhalants and anabolic steroids.
       ``(3) Drug and violence prevention.--The term `drug and 
     violence prevention' means--
       ``(A) with respect to drugs, prevention, early 
     intervention, rehabilitation referral, or education related 
     to the illegal use of drugs;
       ``(B) with respect to violence, the promotion of school 
     safety, such that students and school personnel are free from 
     violent and disruptive acts, including sexual harassment and 
     abuse, and victimization associated with prejudice and 
     intolerance, on school premises, going to and from school, 
     and at school-sponsored activities, through the creation and 
     maintenance of a school environment that is free of weapons 
     and fosters individual responsibility and respect for the 
     rights of others.
       ``(4) Hate crime.--The term `hate crime' means a crime as 
     described in section 1(b) of the Hate Crime Statistics Act of 
     1990.
       ``(5) Nonprofit.--The term `nonprofit', as applied to a 
     school, agency, organization, or institution means a school, 
     agency, organization, or institution owned and operated by 
     one or more nonprofit corporations or associations, no part 
     of the net earnings of which inures, or may lawfully inure, 
     to the benefit of any private shareholder or individual.
       ``(6) Protective factor, buffer, or asset.--The terms 
     `protective factor', `buffer', and `asset' mean any one of a 
     number of the community, school, family, or peer-individual 
     domains that are known, through prospective, longitudinal 
     research efforts, or which are grounded in a well-established 
     theoretical model of prevention, and have been shown to 
     prevent alcohol, tobacco, or illegal drug use, as well as 
     violent behavior, by youth in the community, and which 
     promote positive youth development.
       ``(7) Risk factor.--The term `risk factor' means any one of 
     a number of characteristics of the community, school, family, 
     or peer-individual domains that are known, through 
     prospective, longitudinal research efforts, to be predictive 
     of alcohol, tobacco, and illegal drug use, as well as violent 
     behavior, by youth in the school and community.
     ``(8) School-aged population.--The term `school-aged 
     population' means the population aged five through 17, as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data available from the Department of Commerce.
       ``(9) School based mental health services provider.--The 
     term `school based mental health services provider' includes 
     a State licensed or State certified school counselor, school 
     psychologist, school social worker, or other

[[Page 25715]]

     State licensed or certified mental health professional 
     qualified under State law to provide such services to 
     children and adolescents.
       ``(10) School personnel.--The term `school personnel' 
     includes teachers, principals, administrators, counselors, 
     social workers, psychologists, nurses, librarians, and other 
     support staff who are employed by a school or who perform 
     services for the school on a contractual basis.
       ``(11) School resource officer.--The term `school resource 
     officer' means a career law enforcement officer, with sworn 
     authority, deployed in community oriented policing, and 
     assigned by the employing police department to a local 
     educational agency to work in collaboration with schools and 
     community based organizations to--
       ``(A) educate students in crime and illegal drug use 
     prevention and safety;
       ``(B) develop or expand community justice initiatives for 
     students; and
       ``(C) train students in conflict resolution, restorative 
     justice, and crime and illegal drug use awareness.

     ``SEC. 4152. MESSAGE AND MATERIALS.

       ``(a) `Wrong and Harmful' Message.--Drug and violence 
     prevention programs supported under this part shall convey a 
     clear and consistent message that the illegal use of drugs 
     and acts of violence are wrong and harmful.
       ``(b) Curriculum.--The Secretary shall not prescribe the 
     use of specific curricula for programs supported under this 
     part.

     ``SEC. 4153. PARENTAL CONSENT.

       ``Upon receipt of written notification from the parents or 
     legal guardians of a student, the local educational agency 
     shall withdraw such student from any program or activity 
     funded under this part. The local educational agency shall 
     make reasonable efforts to inform parents or legal guardians 
     of the content of such programs or activities funded under 
     this part, other than classroom instruction.

     ``SEC. 4154. PROHIBITED USES OF FUNDS.

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

     ``SEC. 4155. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.

       ``(a) Nonapplication of Provisions.--This section shall not 
     apply to any disciplinary records with respect to a 
     suspension or expulsion that are transferred from a private, 
     parochial or other nonpublic school, person, institution, or 
     other entity, that provides education below the college 
     level.
       ``(b) Disciplinary Records.--In accordance with the Family 
     Educational Rights and Privacy Act of 1974 (20 U.S.C. 1232g), 
     not later than 2 years after the date of enactment of this 
     part, each State receiving Federal funds under this Act shall 
     provide an assurance to the Secretary that the State has a 
     procedure in place to facilitate the transfer of disciplinary 
     records, with respect to a suspension or expulsion, by local 
     educational agencies to any private or public elementary 
     school or secondary school for any student who is enrolled or 
     seeks, intends, or is instructed to enroll, on a full- or 
     part-time basis, in the school.

           ``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS

     ``SEC. 4201. PURPOSE; DEFINITIONS.

       ``(a) Purpose.--The purpose of this part is to provide 
     opportunities for communities to establish or expand 
     activities in community learning centers that--
       ``(1) provide opportunities for academic enrichment, 
     including providing tutorial services to help students, 
     particularly students who attend low-performing schools, to 
     meet State and local student academic achievement standards 
     in core academic subjects, such as reading and mathematics;
       ``(2) offer students a broad array of additional services, 
     programs, and activities, such as youth development 
     activities, drug and violence prevention programs, counseling 
     programs, art, music, and recreation programs, technology 
     education programs, and character education programs, that 
     are designed to reinforce and complement the regular academic 
     program of participating students; and
       ``(3) offer families of students served by community 
     learning centers opportunities for literacy and related 
     educational development.
       ``(b) Definitions.--In this part:
       ``(1) Community learning center.--The term `community 
     learning center' means an entity that--
       ``(A) assists students in meeting State and local academic 
     achievement standards in core academic subjects, such as 
     reading and mathematics, by providing the students with 
     opportunities for academic enrichment activities and a broad 
     array of other activities (such as drug and violence 
     prevention, counseling, art, music, recreation, technology, 
     and character education programs) during nonschool hours or 
     periods when school is not in session (such as before and 
     after school or during summer recess) that reinforce and 
     complement the regular academic programs of the schools 
     attended by the students served; and
       ``(B) offers families of students served by such center 
     opportunities for literacy and related educational 
     development.
       ``(2) Covered program.--The term `covered program' means a 
     program for which--
       ``(A) the Secretary made a grant under part I of title X 
     (as such part was in effect on the day before the date of 
     enactment of the No Child Left Behind Act of 2001); and
       ``(B) the grant period had not ended on that date of 
     enactment.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     local educational agency, community-based organization, 
     another public or private entity, or a consortium of 2 or 
     more of such agencies, organizations, or entities.
       ``(4) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.

     ``SEC. 4202. ALLOTMENTS TO STATES.

       ``(a) Reservation.--From the funds appropriated under 
     section 4206 for any fiscal year, the Secretary shall 
     reserve--
       ``(1) such amount as may be necessary to make continuation 
     awards to grant recipients under covered programs (under the 
     terms of those grants);
       ``(2) not more than 1 percent for national activities, 
     which the Secretary may carry out directly or through grants 
     and contracts, such as providing technical assistance to 
     eligible entities carrying out programs under this part or 
     conducting a national evaluation; and
       ``(3) not more than 1 percent for payments to the outlying 
     areas and the Bureau of Indian Affairs, to be allotted in 
     accordance with their respective needs for assistance under 
     this part, as determined by the Secretary, to enable the 
     outlying areas and the Bureau to carry out the purpose of 
     this part.
       ``(b) State Allotments.--
       ``(1) Determination.--From the funds appropriated under 
     section 4206 for any fiscal year and remaining after the 
     Secretary makes reservations under subsection (a), the 
     Secretary shall allot to each State for the fiscal year an 
     amount that bears the same relationship to the remainder as 
     the amount the State received under subpart 2 of part A of 
     title I for the preceding fiscal year bears to the amount all 
     States received under that subpart for the preceding fiscal 
     year, except that no State shall receive less than an amount 
     equal to \1/2\ of 1 percent of the total amount made 
     available to all States under this subsection.
       ``(2) Reallotment of unused funds.--If a State does not 
     receive an allotment under this part for a fiscal year, the 
     Secretary shall reallot the amount of the State's allotment 
     to the remaining States in accordance with this section.
       ``(c) State Use of Funds.--
       ``(1) In general.--Each State that receives an allotment 
     under this part shall reserve not less than 95 percent of the 
     amount allotted to such State under subsection (b), for each 
     fiscal year for awards to eligible entities under section 
     4204.
       ``(2) State administration.--A State educational agency may 
     use not more than 2 percent of the amount made available to 
     the State under subsection (b) for--
       ``(A) the administrative costs of carrying out its 
     responsibilities under this part;
       ``(B) establishing and implementing a peer review process 
     for grant applications described in section 4204(b) 
     (including consultation with the Governor and other State 
     agencies responsible for administering youth development 
     programs and adult learning activities); and
       ``(C) supervising the awarding of funds to eligible 
     entities (in consultation with the Governor and other State 
     agencies responsible for administering youth development 
     programs and adult learning activities).
       ``(3) State activities.--A State educational agency may use 
     not more than 3 percent of the amount made available to the 
     State under subsection (b) for the following activities:
       ``(A) Monitoring and evaluation of programs and activities 
     assisted under this part.
       ``(B) Providing capacity building, training, and technical 
     assistance under this part.
       ``(C) Comprehensive evaluation (directly, or through a 
     grant or contract) of the effectiveness of programs and 
     activities assisted under this part.
       ``(D) Providing training and technical assistance to 
     eligible entities who are applicants for or recipients of 
     awards under this part.

     ``SEC. 4203. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 4202 for any fiscal year, a State shall submit to the 
     Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1) designates the State educational agency as the agency 
     responsible for the administration and supervision of 
     programs assisted under this part;
       ``(2) describes how the State educational agency will use 
     funds received under this part, including funds reserved for 
     State-level activities;
       ``(3) contains an assurance that the State educational 
     agency will make awards under this part only to eligible 
     entities that propose to serve--
       ``(A) students who primarily attend--
       ``(i) schools eligible for schoolwide programs under 
     section 1114; or
       ``(ii) schools that serve a high percentage of students 
     from low-income families; and
       ``(B) the families of students described in subparagraph 
     (A);
       ``(4) describes the procedures and criteria the State 
     educational agency will use for reviewing applications and 
     awarding funds to eligible entities on a competitive basis, 
     which shall include procedures and criteria that take into 
     consideration the likelihood that a proposed community 
     learning center will help participating students meet local 
     content and student academic achievement standards;
       ``(5) describes how the State educational agency will 
     ensure that awards made under this part are--

[[Page 25716]]

       ``(A) of sufficient size and scope to support high-quality, 
     effective programs that are consistent with the purpose of 
     this part; and
       ``(B) in amounts that are consistent with section 4204(h);
       ``(6) describes the steps the State educational agency will 
     take to ensure that programs implement effective strategies, 
     including providing ongoing technical assistance and 
     training, evaluation, and dissemination of promising 
     practices;
       ``(7) describes how programs under this part will be 
     coordinated with programs under this Act, and other programs 
     as appropriate;
       ``(8) contains an assurance that the State educational 
     agency--
       ``(A) will make awards for programs for a period of not 
     less than 3 years and not more than 5 years; and
       ``(B) will require each eligible entity seeking such an 
     award to submit a plan describing how the community learning 
     center to be funded through the award will continue after 
     funding under this part ends;
       ``(9) contains an assurance that funds appropriated to 
     carry out this part will be used to supplement, and not 
     supplant, other Federal, State, and local public funds 
     expended to provide programs and activities authorized under 
     this part and other similar programs;
       ``(10) contains an assurance that the State educational 
     agency will require eligible entities to describe in their 
     applications under section 4204(b) how the transportation 
     needs of participating students will be addressed;
       ``(11) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials, including the chief State school officer, 
     and other State agencies administering before and after 
     school (or summer school) programs, the heads of the State 
     health and mental health agencies or their designees, and 
     representatives of teachers, parents, students, the business 
     community, and community-based organizations;
       ``(12) describes the results of the State's needs and 
     resources assessment for before and after school activities, 
     which shall be based on the results of on-going State 
     evaluation activities;
       ``(13) describes how the State educational agency will 
     evaluate the effectiveness of programs and activities carried 
     out under this part, which shall include, at a minimum--
       ``(A) a description of the performance indicators and 
     performance measures that will be used to evaluate programs 
     and activities; and
       ``(B) public dissemination of the evaluations of programs 
     and activities carried out under this part; and
       ``(14) provides for timely public notice of intent to file 
     an application and an assurance that the application will be 
     available for public review after submission.
       ``(b) Deemed Approval.--An application submitted by a State 
     educational agency pursuant to subsection (a) shall be deemed 
     to be approved by the Secretary unless the Secretary makes a 
     written determination, prior to the expiration of the 120-day 
     period beginning on the date on which the Secretary received 
     the application, that the application is not in compliance 
     with this part.
       ``(c) Disapproval.--The Secretary shall not finally 
     disapprove the application, except after giving the State 
     educational agency notice and opportunity for a hearing.
       ``(d) Notification.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     this part, the Secretary shall--
       ``(1) give the State educational agency notice and an 
     opportunity for a hearing; and
       ``(2) notify the State educational agency of the finding of 
     noncompliance, and, in such notification, shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to the 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(e) Response.--If the State educational agency responds 
     to the Secretary's notification described in subsection 
     (d)(2) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     application with the requested information described in 
     subsection (d)(2)(B), the Secretary shall approve or 
     disapprove such application prior to the later of--
       ``(1) the expiration of the 45-day period beginning on the 
     date on which the application is resubmitted; or
       ``(2) the expiration of the 120-day period described in 
     subsection (b).
       ``(f) Failure to Respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     subsection (d)(2) during the 45-day period beginning on the 
     date on which the agency received the notification, such 
     application shall be deemed to be disapproved.

     ``SEC. 4204. LOCAL COMPETITIVE GRANT PROGRAM.

       ``(a) In General.--A State that receives funds under this 
     part for a fiscal year shall provide the amount made 
     available under section 4202(c)(1) to eligible entities for 
     community learning centers in accordance with this part.
       ``(b) Application.--
       ``(1) In general.--To be eligible to receive an award under 
     this part, an eligible entity shall submit an application to 
     the State educational agency at such time, in such manner, 
     and including such information as the State educational 
     agency may reasonably require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall include--
       ``(A) a description of the before and after school or 
     summer recess activities to be funded, including--
       ``(i) an assurance that the program will take place in a 
     safe and easily accessible facility;
       ``(ii) a description of how students participating in the 
     program carried out by the community learning center will 
     travel safely to and from the center and home; and
       ``(iii) a description of how the eligible entity will 
     disseminate information about the community learning center 
     (including its location) to the community in a manner that is 
     understandable and accessible;
       ``(B) a description of how the activity is expected to 
     improve student academic achievement;
       ``(C) an identification of Federal, State, and local 
     programs that will be combined or coordinated with the 
     proposed program to make the most effective use of public 
     resources;
       ``(D) an assurance that the proposed program was developed, 
     and will be carried out, in active collaboration with the 
     schools the students attend;
       ``(E) a description of how the activities will meet the 
     principles of effectiveness described in section 4205(b);
       ``(F) an assurance that the program will primarily target 
     students who attend schools eligible for schoolwide programs 
     under section 1114 and the families of such students;
       ``(G) an assurance that funds under this part will be used 
     to increase the level of State, local, and other non-Federal 
     funds that would, in the absence of funds under this part, be 
     made available for programs and activities authorized under 
     this part, and in no case supplant Federal, State, local, or 
     non-Federal funds;
       ``(H) a description of the partnership between a local 
     educational agency, a community-based organization, and 
     another public entity or private entity, if appropriate;
       ``(I) an evaluation of the community needs and available 
     resources for the community learning center and a description 
     of how the program proposed to be carried out in the center 
     will address those needs (including the needs of working 
     families);
       ``(J) a demonstration that the eligible entity has 
     experience, or promise of success, in providing educational 
     and related activities that will complement and enhance the 
     academic performance, achievement, and positive youth 
     development of the students;
       ``(K) a description of a preliminary plan for how the 
     community learning center will continue after funding under 
     this part ends;
       ``(L) an assurance that the community will be given notice 
     of an intent to submit an application and that the 
     application and any waiver request will be available for 
     public review after submission of the application;
       ``(M) if the eligible entity plans to use senior volunteers 
     in activities carried out through the community learning 
     center, a description of how the eligible entity will 
     encourage and use appropriately qualified seniors to serve as 
     the volunteers; and
       ``(N) such other information and assurances as the State 
     educational agency may reasonably require.
       ``(c) Approval of Certain Applications.--The State 
     educational agency may approve an application under this part 
     for a program to be located in a facility other than an 
     elementary school or secondary school only if the program 
     will be at least as available and accessible to the students 
     to be served as if the program were located in an elementary 
     school or secondary school.
       ``(d) Permissive Local Match.--
       ``(1) In general.--A State educational agency may require 
     an eligible entity to match funds awarded under this part, 
     except that such match may not exceed the amount of the grant 
     award and may not be derived from other Federal or State 
     funds.
       ``(2) Sliding scale.--The amount of a match under paragraph 
     (1) shall be established based on a sliding fee scale that 
     takes into account--
       ``(A) the relative poverty of the population to be targeted 
     by the eligible entity; and
       ``(B) the ability of the eligible entity to obtain such 
     matching funds.
       ``(3) In-kind contributions.--Each State educational agency 
     that requires an eligible entity to match funds under this 
     subsection shall permit the eligible entity to provide all or 
     any portion of such match in the form of in-kind 
     contributions.
       ``(4) Consideration.--Notwithstanding this subsection, a 
     State educational agency shall not consider an eligible 
     entity's ability to match funds when determining which 
     eligible entities will receive awards under this part.
       ``(e) Peer Review.--In reviewing local applications under 
     this section, a State educational agency shall use a peer 
     review process or other methods of assuring the quality of 
     such applications.
       ``(f) Geographic Diversity.--To the extent practicable, a 
     State educational agency shall distribute funds under this 
     part equitably among geographic areas within the State, 
     including urban and rural communities.
       ``(g) Duration of Awards.--Grants under this part may be 
     awarded for a period of not less than 3 years and not more 
     than 5 years.
       ``(h) Amount of Awards.--A grant awarded under this part 
     may not be made in an amount that is less than $50,000.
       ``(i) Priority.--
       ``(1) In general.--In awarding grants under this part, a 
     State educational agency shall give priority to 
     applications--
       ``(A) proposing to target services to students who attend 
     schools that have been identified as in need of improvement 
     under section 1116; and

[[Page 25717]]

       ``(B) submitted jointly by eligible entities consisting of 
     not less than 1--
       ``(i) local educational agency receiving funds under part A 
     of title I; and
       ``(ii) community-based organization or other public or 
     private entity.
       ``(2) Special rule.--The State educational agency shall 
     provide the same priority under paragraph (1) to an 
     application submitted by a local educational agency if the 
     local educational agency demonstrates that it is unable to 
     partner with a community-based organization in reasonable 
     geographic proximity and of sufficient quality to meet the 
     requirements of this part.

     ``SEC. 4205. LOCAL ACTIVITIES.

       ``(a) Authorized Activities.--Each eligible entity that 
     receives an award under this part may use the award funds to 
     carry out a broad array of before and after school activities 
     (including during summer recess periods) that advance student 
     academic achievement, including--
       ``(1) remedial education activities and academic enrichment 
     learning programs, including providing additional assistance 
     to students to allow the students to improve their academic 
     achievement;
       ``(2) mathematics and science education activities;
       ``(3) arts and music education activities;
       ``(4) entrepreneurial education programs;
       ``(5) tutoring services (including those provided by senior 
     citizen volunteers) and mentoring programs;
       ``(6) programs that provide after school activities for 
     limited English proficient students that emphasize language 
     skills and academic achievement;
       ``(7) recreational activities;
       ``(8) telecommunications and technology education programs;
       ``(9) expanded library service hours;
       ``(10) programs that promote parental involvement and 
     family literacy;
       ``(11) programs that provide assistance to students who 
     have been truant, suspended, or expelled to allow the 
     students to improve their academic achievement; and
       ``(12) drug and violence prevention programs, counseling 
     programs, and character education programs.
       ``(b) Principles of Effectiveness.--
       ``(1) In general.--For a program or activity developed 
     pursuant to this part to meet the principles of 
     effectiveness, such program or activity shall--
       ``(A) be based upon an assessment of objective data 
     regarding the need for before and after school programs 
     (including during summer recess periods) and activities in 
     the schools and communities;
       ``(B) be based upon an established set of performance 
     measures aimed at ensuring the availability of high quality 
     academic enrichment opportunities; and
       ``(C) if appropriate, be based upon scientifically based 
     research that provides evidence that the program or activity 
     will help students meet the State and local student academic 
     achievement standards.
       ``(2) Periodic evaluation.--
       ``(A) In general.--The program or activity shall undergo a 
     periodic evaluation to assess its progress toward achieving 
     its goal of providing high quality opportunities for academic 
     enrichment.
       ``(B) Use of results.--The results of evaluations under 
     subparagraph (A) shall be--
       ``(i) used to refine, improve, and strengthen the program 
     or activity, and to refine the performance measures; and
       ``(ii) made available to the public upon request, with 
     public notice of such availability provided.

     ``SEC. 4206. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated--
       ``(1) $1,250,000,000 for fiscal year 2002;
       ``(2) $1,500,000,000 for fiscal year 2003;
       ``(3) $1,750,000,000 for fiscal year 2004;
       ``(4) $2,000,000,000 for fiscal year 2005;
       ``(5) $2,250,000,000 for fiscal year 2006; and
       ``(6) $2,500,000,000 for fiscal year 2007.

                 ``PART C--ENVIRONMENTAL TOBACCO SMOKE

     ``SEC. 4301. SHORT TITLE.

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

     ``SEC. 4302. DEFINITIONS.

       ``As used in this part:
       ``(1) Children.--The term `children' means individuals who 
     have not attained the age of 18.
       ``(2) Children's services.--The term `children's services' 
     means the provision on a routine or regular basis of health, 
     day care, education, or library services--
       ``(A) that are funded, after the date of enactment of the 
     No Child Left Behind Act of 2001, directly by the Federal 
     Government or through State or local governments, by Federal 
     grant, loan, loan guarantee, or contract programs--
       ``(i) administered by either the Secretary of Health and 
     Human Services or the Secretary of Education (other than 
     services provided and funded solely under titles XVIII and 
     XIX of the Social Security Act); or
       ``(ii) administered by the Secretary of Agriculture in the 
     case of a clinic (as defined in part 246.2 of title 7, Code 
     of Federal Regulations (or any corresponding similar 
     regulation or ruling)) under section 17(b)(6) of the Child 
     Nutrition Act of 1966; or
       ``(B) that are provided in indoor facilities that are 
     constructed, operated, or maintained with such Federal funds, 
     as determined by the appropriate head of a Federal agency in 
     any enforcement action carried out under this part,
     except that nothing in clause (ii) of subparagraph (A) is 
     intended to include facilities (other than clinics) where 
     coupons are redeemed under the Child Nutrition Act of 1966.
       ``(3) Indoor facility.--The term `indoor facility' means a 
     building that is enclosed.
       ``(4) Person.--The term `person' means any State or local 
     subdivision of a State, agency of such State or subdivision, 
     corporation, or partnership that owns or operates or 
     otherwise controls and provides children's services or any 
     individual who owns or operates or otherwise controls and 
     provides such services.
       ``(5) Secretary.--The term `Secretary' means the Secretary 
     of Health and Human Services.

     ``SEC. 4303. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

       ``(a) Prohibition.--After the date of enactment of the No 
     Child Left Behind Act of 2001, no person shall permit smoking 
     within any indoor facility owned or leased or contracted for, 
     and utilized, by such person for provision of routine or 
     regular kindergarten, elementary, or secondary education or 
     library services to children.
       ``(b) Additional Prohibition.--
       ``(1) In general.--After the date of enactment of the No 
     Child Left Behind Act of 2001, no person shall permit smoking 
     within any indoor facility (or portion of such a facility) 
     owned or leased or contracted for, and utilized by, such 
     person for the provision of regular or routine health care or 
     day care or early childhood development (Head Start) 
     services.
       ``(2) Exception.--Paragraph (1) shall not apply to--
       ``(A) any portion of such facility that is used for 
     inpatient hospital treatment of individuals dependent on, or 
     addicted to, drugs or alcohol; and
       ``(B) any private residence.
       ``(c) Federal Agencies.--
       ``(1) Kindergarten, elementary, or secondary education or 
     library services.--After the date of enactment of the No 
     Child Left Behind Act of 2001, no Federal agency shall permit 
     smoking within any indoor facility in the United States 
     operated by such agency, directly or by contract, to provide 
     routine or regular kindergarten, elementary, or secondary 
     education or library services to children.
       ``(2) Health or day care or early childhood development 
     services.--
       ``(A) In general.--After the date of enactment of the No 
     Child Left Behind Act of 2001, no Federal agency shall permit 
     smoking within any indoor facility (or portion of such 
     facility) operated by such agency, directly or by contract, 
     to provide routine or regular health or day care or early 
     childhood development (Head Start) services to children.
       ``(B) Exception.--Subparagraph (A) shall not apply to--
       ``(i) any portion of such facility that is used for 
     inpatient hospital treatment of individuals dependent on, or 
     addicted to, drugs or alcohol; and
       ``(ii) any private residence.
       ``(3) Application of provisions.--The provisions of 
     paragraph (2) shall also apply to the provision of such 
     routine or regular kindergarten, elementary or secondary 
     education or library services in the facilities described in 
     paragraph (2) not subject to paragraph (1).
       ``(d) Notice.--The prohibitions in subsections (a) through 
     (c) shall be published in a notice in the Federal Register by 
     the Secretary (in consultation with the heads of other 
     affected agencies) and by such agency heads in funding 
     arrangements involving the provision of children's services 
     administered by such heads. Such prohibitions shall be 
     effective 90 days after such notice is published, or 270 days 
     after the date of enactment of the No Child Left Behind Act 
     of 2001, whichever occurs first.
       ``(e) Civil Penalties.--
       ``(1) In general.--Any failure to comply with a prohibition 
     in this section shall be considered to be a violation of this 
     section and any person subject to such prohibition who 
     commits such violation may be liable to the United States for 
     a civil penalty in an amount not to exceed $1,000 for each 
     violation, or may be subject to an administrative compliance 
     order, or both, as determined by the Secretary. Each day a 
     violation continues shall constitute a separate violation. In 
     the case of any civil penalty assessed under this section, 
     the total amount shall not exceed fifty percent of the amount 
     of Federal funds received under the No Child Left Behind Act 
     of 2001 by such person for the fiscal year in which the 
     continuing violation occurred. For the purpose of the 
     prohibition in subsection (c), the term `person', as used in 
     this paragraph, shall mean the head of the applicable Federal 
     agency or the contractor of such agency providing the 
     services to children.
       ``(2) Administrative proceeding.--A civil penalty may be 
     assessed in a written notice, or an administrative compliance 
     order may be issued under paragraph (1), by the Secretary 
     only after an opportunity for a hearing in accordance with 
     section 554 of title 5, United States Code. Before making 
     such assessment or issuing such order, or both, the Secretary 
     shall give written notice of the assessment or order to such 
     person by certified mail with return receipt and provide 
     information in the notice of an opportunity to request in 
     writing, not later than 30 days after the date of receipt of 
     such notice, such hearing. The notice shall reasonably 
     describe the violation and be accompanied with the procedures 
     for such hearing and a simple form that may be used to 
     request such hearing if such person desires to use such form. 
     If a hearing is requested, the Secretary shall establish by 
     such certified notice the time and place

[[Page 25718]]

     for such hearing, which shall be located, to the greatest 
     extent possible, at a location convenient to such person. The 
     Secretary (or the Secretary's designee) and such person may 
     consult to arrange a suitable date and location where 
     appropriate.
       ``(3) Circumstances affecting penalty or order.--In 
     determining the amount of the civil penalty or the nature of 
     the administrative compliance order, the Secretary shall take 
     into account, as appropriate--
       ``(A) the nature, circumstances, extent, and gravity of the 
     violation;
       ``(B) with respect to the violator, any good faith efforts 
     to comply, the importance of achieving early and permanent 
     compliance, the ability to pay or comply, the effect of the 
     penalty or order on the ability to continue operation, any 
     prior history of the same kind of violation, the degree of 
     culpability, and any demonstration of willingness to comply 
     with the prohibitions of this section in a timely manner; and
       ``(C) such other matters as justice may require.
       ``(4) Modification.--The Secretary may, as appropriate, 
     compromise, modify, or remit, with or without conditions, any 
     civil penalty or administrative compliance order. In the case 
     of a civil penalty, the amount, as finally determined by the 
     Secretary or agreed upon in compromise, may be deducted from 
     any sums that the United States or the agencies or 
     instrumentalities of the United States owe to the person 
     against whom the penalty is assessed.
       ``(5) Petition for review.--Any person aggrieved by a 
     penalty assessed or an order issued, or both, by the 
     Secretary under this section may file a petition for judicial 
     review of the order with the United States Court of Appeals 
     for the District of Columbia Circuit or for any other circuit 
     in which the person resides or transacts business. Such 
     person shall provide a copy of the petition to the Secretary 
     or the Secretary's designee. The petition shall be filed 
     within 30 days after the Secretary's assessment or order, or 
     both, are final and have been provided to such person by 
     certified mail. The Secretary shall promptly provide to the 
     court a certified copy of the transcript of any hearing held 
     under this section and a copy of the notice or order.
       ``(6) Failure to comply.--If a person fails to pay an 
     assessment of a civil penalty or comply with an order, after 
     the assessment or order, or both, are final under this 
     section, or after a court has entered a final judgment under 
     paragraph (5) in favor of the Secretary, the Attorney 
     General, at the request of the Secretary, shall recover the 
     amount of the civil penalty (plus interest at prevailing 
     rates from the day the assessment or order, or both, are 
     final) or enforce the order in an action brought in the 
     appropriate district court of the United States. In such 
     action, the validity and appropriateness of the penalty or 
     order or the amount of the penalty shall not be subject to 
     review.

     ``SEC. 4304. PREEMPTION.

       ``Nothing in this part is intended to preempt any provision 
     of law of a State or political subdivision of a State that is 
     more restrictive than a provision of this part.''.
  TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

     SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.

       Title V (20 U.S.C. 7201 et seq.) is amended to read as 
     follows:
 ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                     ``PART A--INNOVATIVE PROGRAMS

     ``SEC. 5101. PURPOSES, STATE AND LOCAL RESPONSIBILITY.

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

                 ``Subpart 1--State and Local Programs

     ``SEC. 5111. ALLOTMENT TO STATES.

       ``(a) In General.--From the sums appropriated to carry out 
     this part for each fiscal year and not reserved under 
     subsection (b), the Secretary shall allot, and make available 
     in accordance with this part, to each State educational 
     agency an amount that bears the same ratio to such sums as 
     the school-age population of the State bears to the school-
     age population of all States, except that no State shall 
     receive less than an amount equal to \1/2\ of 1 percent of 
     such sums.
       ``(b) Reservation.--From the sums appropriated to carry out 
     this part for each fiscal year, the Secretary shall reserve 
     not more than 1 percent for payments to the outlying areas, 
     to be allotted in accordance with their respective needs for 
     assistance under this part.

     ``SEC. 5112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Distribution Rule.--
       ``(1) Allocation of base amounts.--From the amount made 
     available to a State educational agency under this part for a 
     fiscal year, the State educational agency shall distribute, 
     to local educational agencies within the State, an amount 
     that is not less than 85 percent of the amount made available 
     to the State educational agency under this part for fiscal 
     year 2002, according to the relative enrollments in public 
     and in private nonprofit schools within the jurisdictions of 
     such local educational agencies, adjusted, in accordance with 
     criteria approved by the Secretary, to provide higher per-
     pupil allocations to local educational agencies that have the 
     greatest numbers or percentages of children whose education 
     imposes a higher-than-average cost per child, such as--
       ``(A) children living in areas with high concentrations of 
     economically disadvantaged families;
       ``(B) children from economically disadvantaged families; 
     and
       ``(C) children living in sparsely populated areas.
       ``(2) Allocation of increased amounts.--From the amount 
     made available to a State educational agency under this part 
     for a fiscal year that exceeds the amount made available to 
     the agency under this part for fiscal year 2002, the State 
     educational agency shall distribute 100 percent (or, in the 
     case of a State educational agency receiving a minimum 
     allotment under section 5111(a), not less than 50 percent, 
     notwithstanding subsection (b)) to local educational agencies 
     within the State, on the same basis as the State educational 
     agency distributes amounts under paragraph (1).
       ``(b) Limitations and Requirements.--Not more than 15 
     percent of funds made available under section 5111 for State 
     programs under this part for any fiscal year may be used for 
     State administration under section 5121.
       ``(c) Calculation of Enrollments.--
       ``(1) In general.--The calculation of relative enrollments 
     under subsection (a)(1) shall be on the basis of the total 
     of--
       ``(A) the number of children enrolled in public schools; 
     and
       ``(B) the number of children enrolled in private nonprofit 
     schools that participated in programs assisted under this 
     part, for the fiscal year preceding the fiscal year for which 
     the determination is made.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall diminish the responsibility of each local educational 
     agency to contact, on an annual basis, appropriate officials 
     from private nonprofit schools within the areas served by 
     such agencies in order to determine whether such schools 
     desire that their children participate in programs assisted 
     under this part.
       ``(3) Adjustments.--
       ``(A) State criteria.--Relative enrollments calculated 
     under subsection (a)(1) shall be adjusted, in accordance with 
     criteria approved by the Secretary under subparagraph (B), to 
     provide higher per-pupil allocations only to local 
     educational agencies that serve the greatest numbers or 
     percentages of--
       ``(i) children living in areas with high concentrations of 
     economically disadvantaged families;
       ``(ii) children from economically disadvantaged families; 
     or
       ``(iii) children living in sparsely populated areas.
       ``(B) Review of criteria.--The Secretary shall review 
     criteria submitted by a State educational agency for 
     adjusting allocations under paragraph (1) and shall approve 
     such criteria only if the Secretary determines that such 
     criteria are reasonably calculated to produce an adjusted 
     allocation that reflects the relative needs of the State's 
     local educational agencies based on the factors set forth in 
     subparagraph (A).
       ``(d) Payment of Allocations.--
       ``(1) Distribution.--From the funds paid to a State 
     educational agency under this subpart for a fiscal year, the 
     State educational agency shall distribute to each eligible 
     local educational agency that has submitted an application as 
     required by section 5133 the amount of such local educational 
     agency's allocation, as determined under subsection (a).
       ``(2) Additional funds.--
       ``(A) Use.--Additional funds resulting from higher per-
     pupil allocations provided to a local educational agency on 
     the basis of adjusted enrollments of children described in 
     subsection (a)(1) may, in the discretion of the local 
     educational agency, be allocated for expenditures to provide 
     services for children enrolled in public schools and private 
     nonprofit schools in direct

[[Page 25719]]

     proportion to the number of children described in subsection 
     (a)(1) and enrolled in such schools within the area served by 
     the local educational agency.
       ``(B) Allocation.--In any fiscal year, any local 
     educational agency that elects to allocate such additional 
     funds in the manner described in subparagraph (A) shall 
     allocate all additional funds to schools within the area 
     served by the local educational agency in such manner.
       ``(C) Rule of construction.--Subparagraphs (A) and (B) may 
     not be construed to require any school to limit the use of 
     the additional funds described in subparagraph (A) to the 
     provision of services to specific students or categories of 
     students.

                      ``Subpart 2--State Programs

     ``SEC. 5121. STATE USES OF FUNDS.

       ``A State educational agency may use funds made available 
     for State use under section 5112(b) only for one or more of 
     the following:
       ``(1) State administration of programs under this part, 
     including--
       ``(A) allocating funds to local educational agencies;
       ``(B) planning, supervising, and processing State 
     educational agency funds; and
       ``(C) monitoring and evaluating programs under this part.
       ``(2) Support for the planning, design, and initial 
     implementation of charter schools as described in part B.
       ``(3) Statewide education reform, school improvement 
     programs and technical assistance and direct grants to local 
     educational agencies, which assist such agencies under 
     section 5131.
       ``(4) Support for the design and implementation of high-
     quality yearly student assessments.
       ``(5) Support for implementation of challenging State and 
     local academic achievement standards.
       ``(6) Support for arrangements that provide for independent 
     analysis to measure and report on school district 
     achievement.
       ``(7) Support for the program described in section 321 of 
     the Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 2001 (as 
     enacted into law by section 1(a)(1) of Public Law 106-554).
       ``(8) Support for programs to assist in the implementation 
     of the policy described in section 9507 which may include 
     payment of reasonable transportation costs and tuition costs 
     for such students.

     ``SEC. 5122. STATE APPLICATIONS.

       ``(a) Application Requirements.--Any State that desires to 
     receive assistance under this part shall submit to the 
     Secretary an application that includes each of the following:
       ``(1) Designation of the State educational agency as the 
     State agency responsible for administration and supervision 
     of programs assisted under this part.
       ``(2) Provision for an annual statewide summary of how 
     assistance under this part is contributing toward improving 
     student academic achievement or improving the quality of 
     education for students.
       ``(3) Information setting forth the allocation of funds 
     required to implement section 5142.
       ``(4) A provision that the State educational agency will 
     keep such records, and provide such information to the 
     Secretary, as may be required for fiscal audit and program 
     evaluation (consistent with the responsibilities of the 
     Secretary under this section).
       ``(5) An assurance that, apart from providing technical and 
     advisory assistance and monitoring compliance with this part, 
     the State educational agency has not exercised, and will not 
     exercise, any influence in the decisionmaking processes of 
     local educational agencies as to the expenditure made 
     pursuant to an application submitted under section 5133.
       ``(6) An assurance that there is compliance with the 
     specific requirements of this part.
       ``(7) Provision for timely public notice and public 
     dissemination of the information provided under paragraph 
     (3).
       ``(b) Statewide Summary.--The statewide summary referred to 
     in subsection (a)(2) shall be submitted annually to the 
     Secretary and shall be derived from the evaluation 
     information submitted by local educational agencies to the 
     State educational agency under section 5133(b)(8). The State 
     educational agency shall determine the format and content of 
     such summary and may include in the summary statistical 
     measures, such as the number of students served by each type 
     of innovative assistance program described in section 5131 
     and the number of teachers trained.
       ``(c) Period of Application.--An application submitted by 
     the State educational agency under subsection (a) shall be 
     for a period not to exceed 3 years. The agency may amend the 
     application annually, as may be necessary to reflect changes, 
     without filing a new application.
       ``(d) Audit Rule.--A local educational agency that receives 
     less than an average of $10,000 under this part for any 3 
     consecutive fiscal years shall not be audited more frequently 
     than once every 5 years.

            ``Subpart 3--Local Innovative Education Programs

     ``SEC. 5131. LOCAL USES OF FUNDS.

       ``(a) Innovative Assistance Programs.--Funds made available 
     to local educational agencies under section 5112 shall be 
     used for innovative assistance programs, which may include 
     any of the following:
       ``(1) Programs to recruit, train, and hire highly qualified 
     teachers to reduce class size, especially in the early 
     grades, and professional development activities carried out 
     in accordance with title II, that give teachers, principals, 
     and administrators the knowledge and skills to provide 
     students with the opportunity to meet challenging State or 
     local academic content standards and student academic 
     achievement standards.
       ``(2) Technology activities related to the implementation 
     of school-based reform efforts, including professional 
     development to assist teachers and other school personnel 
     (including school library media personnel) regarding how to 
     use technology effectively in the classrooms and the school 
     library media centers involved.
       ``(3) Programs for the development or acquisition and use 
     of instructional and educational materials, including library 
     services and materials (including media materials), academic 
     assessments, reference materials, computer software and 
     hardware for instructional use, and other curricular 
     materials that are tied to high academic standards, that will 
     be used to improve student academic achievement, and that are 
     part of an overall education reform program.
       ``(4) Promising education reform projects, including magnet 
     schools.
       ``(5) Programs to improve the academic achievement of 
     educationally disadvantaged elementary school and secondary 
     school students, including activities to prevent students 
     from dropping out of school.
       ``(6) Programs to improve the literacy skills of adults, 
     especially the parents of children served by the local 
     educational agency, including adult education and family 
     literacy programs.
       ``(7) Programs to provide for the educational needs of 
     gifted and talented children.
       ``(8) The planning, design, and initial implementation of 
     charter schools as described in part B.
       ``(9) School improvement programs or activities under 
     sections 1116 and 1117.
       ``(10) Community service programs that use qualified school 
     personnel to train and mobilize young people to measurably 
     strengthen their communities through nonviolence, 
     responsibility, compassion, respect, and moral courage.
       ``(11) Activities to promote consumer, economic, and 
     personal finance education, such as disseminating information 
     on and encouraging use of the best practices for teaching the 
     basic principles of economics and promoting the concept of 
     achieving financial literacy through the teaching of personal 
     financial management skills (including the basic principles 
     involved with earning, spending, saving, and investing).
       ``(12) Activities to promote, implement, or expand public 
     school choice.
       ``(13) Programs to hire and support school nurses.
       ``(14) Expansion and improvement of school-based mental 
     health services, including early identification of drug use 
     and violence, assessment, and direct individual or group 
     counseling services provided to students, parents, and school 
     personnel by qualified school-based mental health services 
     personnel.
       ``(15) Alternative educational programs for those students 
     who have been expelled or suspended from their regular 
     educational setting, including programs to assist students to 
     reenter the regular educational setting upon return from 
     treatment or alternative educational programs.
       ``(16) Programs to establish or enhance prekindergarten 
     programs for children.
       ``(17) Academic intervention programs that are operated 
     jointly with community-based organizations and that support 
     academic enrichment, and counseling programs conducted during 
     the school day (including during extended school day or 
     extended school year programs), for students most at risk of 
     not meeting challenging State academic achievement standards 
     or not completing secondary school.
       ``(18) Programs for cardiopulmonary resuscitation (CPR) 
     training in schools.
       ``(19) Programs to establish smaller learning communities.
       ``(20) Activities that encourage and expand improvements 
     throughout the area served by the local educational agency 
     that are designed to advance student academic achievement.
       ``(21) Initiatives to generate, maintain, and strengthen 
     parental and community involvement.
       ``(22) Programs and activities that expand learning 
     opportunities through best-practice models designed to 
     improve classroom learning and teaching.
       ``(23) Programs to provide same-gender schools and 
     classrooms (consistent with applicable law).
       ``(24) Service learning activities.
       ``(25) School safety programs, including programs to 
     implement the policy described in section 9507 and which may 
     include payment of reasonable transportation costs and 
     tuition costs for such students.
       ``(26) Programs that employ research-based cognitive and 
     perceptual development approaches and rely on a diagnostic-
     prescriptive model to improve students' learning of academic 
     content at the preschool, elementary, and secondary levels.
       ``(27) Supplemental educational services, as defined in 
     section 1116(e).
       ``(b) Requirements.--The innovative assistance programs 
     described in subsection (a) shall be--
       ``(1) tied to promoting challenging academic achievement 
     standards;
       ``(2) used to improve student academic achievement; and
       ``(3) part of an overall education reform strategy.
       ``(c) Guidelines.--Not later than 120 days after the date 
     of enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall issue

[[Page 25720]]

     guidelines for local educational agencies seeking funding for 
     programs described in subsection (a)(23).

     ``SEC. 5132. ADMINISTRATIVE AUTHORITY.

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

     ``SEC. 5133. LOCAL APPLICATIONS.

       ``(a) Submission of Application.--A local educational 
     agency may receive an allocation of funds under this part for 
     any year for which the agency submits an application under 
     this section that the State educational agency certifies 
     under subsection (b).
       ``(b) Certification and Contents of Application.--The State 
     educational agency shall certify each application submitted 
     under subsection (a) that includes each of the following:
       ``(1) A description of locally identified needs relative to 
     the purposes of this part and to the innovative assistance 
     programs described in section 5131.
       ``(2) A statement that sets forth the planned allocation of 
     funds, based on the needs identified in subparagraph (A), 
     among innovative assistance programs described in section 
     5131, a description of the programs that the local 
     educational agency intends to support, and a description of 
     the reasons for the selection of such programs.
       ``(3) Information setting forth the allocation of such 
     funds required to implement section 5142.
       ``(4) A description of how assistance under this part will 
     contribute to improving student academic achievement or 
     improving the quality of education for students.
       ``(5) An assurance that the local educational agency will 
     comply with this part, including the provisions of section 
     5142 concerning the participation of children enrolled in 
     private nonprofit schools.
       ``(6) An assurance that the local educational agency will 
     keep such records, and provide such information to the State 
     educational agency, as may be reasonably required for fiscal 
     audit and program evaluation (consistent with the 
     responsibilities of the State educational agency under this 
     part).
       ``(7) Provision, in the allocation of funds for the 
     assistance authorized by this part and in the planning, 
     design, and implementation of such innovative assistance 
     programs, for systematic consultation with parents of 
     children attending elementary schools and secondary schools 
     in the area served by the local educational agency, with 
     teachers and administrative personnel in such schools, and 
     with such other groups involved in the implementation of this 
     part (such as librarians, school counselors, and other pupil 
     services personnel) as may be considered appropriate by the 
     local educational agency.
       ``(8) An assurance that--
       ``(A) programs carried out under this part will be 
     evaluated annually;
       ``(B) the evaluation will be used to make decisions about 
     appropriate changes in programs for the subsequent year;
       ``(C) the evaluation will describe how assistance under 
     this part affected student academic achievement and will 
     include, at a minimum, information and data on the use of 
     funds, the types of services furnished, and the students 
     served under this part; and
       ``(D) the evaluation will be submitted to the State 
     educational agency at the time and in the manner requested by 
     the State educational agency.
       ``(9) If the local educational agency seeks funds under 
     section 5131(a)(23), a description of how the agency will 
     comply with the guidelines issued by the Secretary regarding 
     same-gender schools and classrooms under section 5131(c).
       ``(b) Period of Application.--An application submitted by a 
     local educational agency under subsection (a) may seek 
     allocations under this part for a period not to exceed 3 
     fiscal years. The agency may amend the application annually, 
     as may be necessary to reflect changes, without the filing of 
     a new application.
       ``(c) Local Educational Agency Discretion.--
       ``(1) In general.--Subject to the limitations and 
     requirements of this part, a local educational agency shall 
     have complete discretion in determining how funds made 
     available to carry out this subpart will be divided among 
     programs described in section 5131.
       ``(2) Limitation.--In exercising the discretion described 
     in paragraph (1), a local educational agency shall ensure 
     that expenditures under this subpart carry out the purposes 
     of this part and are used to meet the educational needs 
     within the schools served by the local educational agency.

                    ``Subpart 4--General Provisions

     ``SEC. 5141. MAINTENANCE OF EFFORT.

       ``(a) In general.--Except as provided in subsection (b), a 
     State educational agency is entitled to receive its full 
     allotment of funds under this part for any fiscal year only 
     if the Secretary determines that either the combined fiscal 
     effort per student or the aggregate expenditures within the 
     State, with respect to the provision of free public education 
     for the fiscal year preceding the fiscal year for which the 
     determination is made, was not less than 90 percent of such 
     combined fiscal effort or aggregate expenditures for the 
     second fiscal year preceding the fiscal year for which the 
     determination is made.
       ``(b) Reduction of funds.--The Secretary shall reduce the 
     amount of the allotment of funds under this part in any 
     fiscal year in the exact proportion by which the State 
     educational agency fails to meet the requirements of 
     subsection (a) by falling below 90 percent of the fiscal 
     effort per student or aggregate expenditures (using the 
     measure most favorable to the State educational agency), and 
     no such lesser amount shall be used for computing the effort 
     or expenditures required under paragraph (1) for subsequent 
     years.
       ``(c) Waiver.--The Secretary may waive, for 1 fiscal year 
     only, the requirements of this section, if the Secretary 
     determines that such a waiver would be equitable due to 
     exceptional or uncontrollable circumstances, such as a 
     natural disaster or a precipitous and unforeseen decline in 
     the financial resources of the State educational agency.

     ``SEC. 5142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE 
                   SCHOOLS.

       ``(a) Participation on Equitable Basis.--
       ``(1) In general.--To the extent consistent with the number 
     of children in the school district of a local educational 
     agency that is eligible to receive funds under this part, or 
     that serves the area in which a program assisted under this 
     part is located, who are enrolled in private nonprofit 
     elementary schools and secondary schools, or, with respect to 
     instructional or personnel training programs funded by the 
     State educational agency from funds made available for State 
     educational agency use, the local educational agency, after 
     consultation with appropriate private school officials--
       ``(A) shall provide, as may be necessary, for the benefit 
     of such children in such schools--
       ``(i) secular, neutral, and nonideological services, 
     materials, and equipment, including the participation of the 
     teachers of such children (and other educational personnel 
     serving such children) in training programs; and
       ``(ii) the repair, minor remodeling, or construction of 
     public facilities (consistent with subsection (c)); or
       ``(B) if such services, materials, and equipment are not 
     feasible or necessary in one or more such private schools, as 
     determined by the local educational agency after consultation 
     with the appropriate private school officials, shall provide 
     such other arrangements as will assure equitable 
     participation of such children in the purposes and benefits 
     of this part.
       ``(2) Other provisions for services.--If no program is 
     carried out under paragraph (1) in the school district of a 
     local educational agency, the State educational agency shall 
     make arrangements, such as through contracts with nonprofit 
     agencies or organizations, under which children in private 
     schools in the district are provided with services and 
     materials to the same extent as would have occurred if the 
     local educational agency had received funds under this part.
       ``(3) Application of requirements.--The requirements of 
     this section relating to the participation of children, 
     teachers, and other personnel serving such children shall 
     apply to programs carried out under this part by a State 
     educational agency or local educational agency, whether 
     directly or through grants to, or contracts with, other 
     public or private agencies, institutions, or organizations.
       ``(b) Equal Expenditures.--
       ``(1) In general.--Expenditures for programs under 
     subsection (a) shall be equal (consistent with the number of 
     children to be served) to expenditures for programs under 
     this part for children enrolled in the public schools of the 
     local educational agency.
       ``(2) Concentrated programs.--Taking into account the needs 
     of the individual children and other factors that relate to 
     the expenditures referred to in paragraph (1), and when funds 
     available to a local educational agency under this part are 
     used to concentrate programs on a particular group, 
     attendance area, or grade or age level, children enrolled in 
     private schools who are included within the group, attendance 
     area, or grade or age level selected for such concentration 
     shall, after consultation with the appropriate private school 
     officials, be assured equitable participation in the purposes 
     and benefits of such programs.
       ``(c) Administrative Requirements.--
       ``(1) Funds and property.--The control of funds provided 
     under this part, and title to materials, equipment, and 
     property repaired, remodeled, or constructed with such funds, 
     shall be in a public agency for the uses and purposes 
     provided in this part, and a public agency shall administer 
     such funds and property.
       ``(2) Provision of services.--Services provided under this 
     part shall be provided by employees of a public agency or 
     through contract by such a public agency with a person, 
     association, agency, or corporation that, in the provision of 
     such services, is independent of the private school and of 
     any religious organizations, and such employment or contract 
     shall be under the control and supervision of such a public 
     agency. The funds provided under this part shall not be 
     commingled with State or local funds.
       ``(d) Waiver.--
       ``(1) State prohibition.--If a State educational agency or 
     local educational agency is prohibited, by reason of any 
     provision of law, from providing for the participation in 
     programs of children enrolled in private elementary schools 
     and secondary schools as required by subsections (a) through 
     (c), the Secretary shall waive such requirements for the 
     agency involved and shall arrange for the provision of 
     services to such children through arrangements that shall be 
     subject to the requirements of this section.

[[Page 25721]]

       ``(2) Failure to comply.--If the Secretary determines that 
     a State educational agency or a local educational agency has 
     substantially failed, or is unwilling, to provide for the 
     participation on an equitable basis of children enrolled in 
     private elementary schools and secondary schools as required 
     by subsections (a) through (c), the Secretary may waive such 
     requirements and shall arrange for the provision of services 
     to such children through arrangements that shall be subject 
     to the requirements of this section.
       ``(e) Withholding of Allotment or Allocation.--Pending 
     final resolution of any investigation or complaint that could 
     result in a waiver under subsection (d)(1) or (d)(2), the 
     Secretary may withhold from the allotment or allocation of 
     the affected State educational agency or local educational 
     agency the amount estimated by the Secretary to be necessary 
     to pay the cost of services to be provided by the Secretary 
     under such subsection.
       ``(f) Duration of Determination.--Any determination by the 
     Secretary under this section shall continue in effect until 
     the Secretary determines that there will no longer be any 
     failure or inability on the part of the State educational 
     agency or local educational agency to meet the requirements 
     of subsections (a) through (c).
       ``(g) Payment From State Allotment.--When the Secretary 
     arranges for services under subsection (d), the Secretary 
     shall, after consultation with the appropriate public school 
     and private school officials, pay the cost of such services, 
     including the administrative costs of arranging for those 
     services, from the appropriate allotment of the State 
     educational agency under this part.
       ``(h) Review of Determination.--
       ``(1) Written objections.--The Secretary shall not take any 
     final action under this section until the State educational 
     agency and the local educational agency affected by such 
     action have had an opportunity, for not less than 45 days 
     after receiving written notice thereof, to submit written 
     objections and to appear before the Secretary or the 
     Secretary's designee to show cause why that action should not 
     be taken.
       ``(2) Court action.--If a State educational agency or local 
     educational agency is dissatisfied with the Secretary's final 
     action after a proceeding under paragraph (1), such agency 
     may, not later than 60 days after notice of such action, file 
     with the United States court of appeals for the circuit in 
     which such State is located a petition for review of that 
     action. A copy of the petition shall be transmitted by the 
     clerk of the court to the Secretary. The Secretary thereupon 
     shall file in the court the record of the proceedings on 
     which the Secretary based the action, as provided in section 
     2112 of title 28, United States Code.
       ``(3) Remand to secretary.--The findings of fact by the 
     Secretary with respect to a proceeding under paragraph (1), 
     if supported by substantial evidence, shall be conclusive. 
     The court, for good cause shown, may remand the case to the 
     Secretary to take further evidence and the Secretary may make 
     new or modified findings of fact and may modify the 
     Secretary's previous action, and shall file in the court the 
     record of the further proceedings. Such new or modified 
     findings of fact shall likewise be conclusive, if supported 
     by substantial evidence.
       ``(4) Court review.--Upon the filing of a petition under 
     paragraph (2), the court shall have jurisdiction to affirm 
     the action of the Secretary or to set such action aside, in 
     whole or in part. The judgment of the court shall be subject 
     to review by the Supreme Court upon certiorari or 
     certification, as provided in section 1254 of title 28, 
     United States Code.
       ``(i) Prior Determination.--Any bypass determination by the 
     Secretary under title VI (as such title was in effect on the 
     day preceding the date of enactment of the No Child Left 
     Behind Act of 2001) shall, to the extent consistent with the 
     purposes of this part, apply to programs under this part.

     ``SEC. 5143. FEDERAL ADMINISTRATION.

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

     ``SEC. 5144. SUPPLEMENT, NOT SUPPLANT.

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

     ``SEC. 5145. DEFINITIONS.

       ``In this part:
       ``(1) Local educational agency.--The term `local 
     educational agency' means a local educational agency or a 
     consortium of such agencies.
       ``(2) Public school.--The term `public school' means a 
     public elementary school or a public secondary school.
       ``(3) School-age population.--The term `school-age 
     population' means the population aged 5 through 17.
       ``(4) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.

     ``SEC. 5146. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part--
       ``(1) $450,000,000 for fiscal year 2002;
       ``(2) $475,000,000 for fiscal year 2003;
       ``(3) $500,000,000 for fiscal year 2004;
       ``(4) $525,000,000 for fiscal year 2005;
       ``(5) $550,000,000 for fiscal year 2006; and
       ``(6) $600,000,000 for fiscal year 2007.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

     ``SEC. 5201. PURPOSE.

       ``It is the purpose of this subpart to increase national 
     understanding of the charter schools model by--
       ``(1) providing financial assistance for the planning, 
     program design, and initial implementation of charter 
     schools;
       ``(2) evaluating the effects of such schools, including the 
     effects on students, student academic achievement, staff, and 
     parents;
       ``(3) expanding the number of high-quality charter schools 
     available to students across the Nation; and
       ``(4) encouraging the States to provide support to charter 
     schools for facilities financing in an amount more nearly 
     commensurate to the amount the States have typically provided 
     for traditional public schools.

     ``SEC. 5202. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary may award grants to State 
     educational agencies having applications approved pursuant to 
     section 5203 to enable such agencies to conduct a charter 
     school grant program in accordance with this subpart.
       ``(b) Special Rule.--If a State educational agency elects 
     not to participate in the program authorized by this subpart 
     or does not have an application approved under section 5203, 
     the Secretary may award a grant to an eligible applicant that 
     serves such State and has an application approved pursuant to 
     section 5203(c).
       ``(c) Program Periods.--
       ``(1) Grants to states.--Grants awarded to State 
     educational agencies under this subpart shall be for a period 
     of not more than 3 years.
       ``(2) Grants to eligible applicants.--Grants awarded by the 
     Secretary to eligible applicants or subgrants awarded by 
     State educational agencies to eligible applicants under this 
     subpart shall be for a period of not more than 3 years, of 
     which the eligible applicant may use--
       ``(A) not more than 18 months for planning and program 
     design;
       ``(B) not more than 2 years for the initial implementation 
     of a charter school; and
       ``(C) not more than 2 years to carry out dissemination 
     activities described in section 5204(f)(6)(B).
       ``(d) Limitation.--A charter school may not receive--
       ``(1) more than 1 grant for activities described in 
     subparagraphs (A) and (B) of subsection (c)(2); or
       ``(2) more than 1 grant for activities under subparagraph 
     (C) of subsection (c)(2).
       ``(e) Priority Treatment.--
       ``(1) In general.--In awarding grants under this subpart 
     for fiscal year 2002 or any succeeding fiscal year from any 
     funds appropriated under section 5211 (other than funds 
     reserved to carry out section 5205(b)), the Secretary shall 
     give priority to States to the extent that the States meet 
     the criteria described in paragraph (2) and 1 or more of the 
     criteria described in subparagraph (A), (B), or (C) of 
     paragraph (3).
       ``(2) Review and evaluation priority criteria.--The 
     criteria referred to in paragraph (1) are that the State 
     provides for periodic review and evaluation by the authorized 
     public chartering agency of each charter school, at least 
     once every 5 years unless required more frequently by State 
     law, to determine whether the charter school is meeting the 
     terms of the school's charter, and is meeting or exceeding 
     the student academic achievement requirements and goals for 
     charter schools as set forth under State law or the school's 
     charter.
       ``(3) Priority criteria.--The criteria referred to in 
     paragraph (1) are the following:
       ``(A) The State has demonstrated progress, in increasing 
     the number of high-quality charter schools that are held 
     accountable in the terms of the schools' charters for meeting 
     clear and measurable objectives for the educational progress 
     of the students attending the schools, in the period prior to 
     the period for which a State educational agency or eligible 
     applicant applies for a grant under this subpart.
       ``(B) The State--
       ``(i) provides for 1 authorized public chartering agency 
     that is not a local educational agency, such as a State 
     chartering board, for each individual or entity seeking to 
     operate a charter school pursuant to such State law; or
       ``(ii) in the case of a State in which local educational 
     agencies are the only authorized public chartering agencies, 
     allows for an appeals process for the denial of an 
     application for a charter school.
       ``(C) The State ensures that each charter school has a high 
     degree of autonomy over the charter school's budgets and 
     expenditures.
       ``(f) Amount Criteria.--In determining the amount of a 
     grant to be awarded under this subpart to a State educational 
     agency, the Secretary shall take into consideration the 
     number of charter schools that are operating, or are approved 
     to open, in the State.

     ``SEC. 5203. APPLICATIONS.

       ``(a) Applications From State Agencies.--Each State 
     educational agency desiring a

[[Page 25722]]

     grant from the Secretary under this subpart shall submit to 
     the Secretary an application at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may require.
       ``(b) Contents of a State Educational Agency Application.--
     Each application submitted pursuant to subsection (a) shall--
       ``(1) describe the objectives of the State educational 
     agency's charter school grant program and a description of 
     how such objectives will be fulfilled, including steps taken 
     by the State educational agency to inform teachers, parents, 
     and communities of the State educational agency's charter 
     school grant program; and
       ``(2) describe how the State educational agency--
       ``(A) will inform each charter school in the State 
     regarding--
       ``(i) Federal funds that the charter school is eligible to 
     receive; and
       ``(ii) Federal programs in which the charter school may 
     participate;
       ``(B) will ensure that each charter school in the State 
     receives the charter school's commensurate share of Federal 
     education funds that are allocated by formula each year, 
     including during the first year of operation of the charter 
     school; and
       ``(C) will disseminate best or promising practices of 
     charter schools to each local educational agency in the 
     State; and
       ``(3) contain assurances that the State educational agency 
     will require each eligible applicant desiring to receive a 
     subgrant to submit an application to the State educational 
     agency containing--
       ``(A) a description of the educational program to be 
     implemented by the proposed charter school, including--
       ``(i) how the program will enable all students to meet 
     challenging State student academic achievement standards;
       ``(ii) the grade levels or ages of children to be served; 
     and
       ``(iii) the curriculum and instructional practices to be 
     used;
       ``(B) a description of how the charter school will be 
     managed;
       ``(C) a description of--
       ``(i) the objectives of the charter school; and
       ``(ii) the methods by which the charter school will 
     determine its progress toward achieving those objectives;
       ``(D) a description of the administrative relationship 
     between the charter school and the authorized public 
     chartering agency;
       ``(E) a description of how parents and other members of the 
     community will be involved in the planning, program design, 
     and implementation of the charter school;
       ``(F) a description of how the authorized public chartering 
     agency will provide for continued operation of the school 
     once the Federal grant has expired, if such agency determines 
     that the school has met the objectives described in 
     subparagraph (C)(i);
       ``(G) a request and justification for waivers of any 
     Federal statutory or regulatory provisions that the eligible 
     applicant believes are necessary for the successful operation 
     of the charter school, and a description of any State or 
     local rules, generally applicable to public schools, that 
     will be waived for, or otherwise not apply to, the school;
       ``(H) a description of how the subgrant funds or grant 
     funds, as appropriate, will be used, including a description 
     of how such funds will be used in conjunction with other 
     Federal programs administered by the Secretary;
       ``(I) a description of how students in the community will 
     be--
       ``(i) informed about the charter school; and
       ``(ii) given an equal opportunity to attend the charter 
     school;
       ``(J) an assurance that the eligible applicant will 
     annually provide the Secretary and the State educational 
     agency such information as may be required to determine if 
     the charter school is making satisfactory progress toward 
     achieving the objectives described in subparagraph (C)(i);
       ``(K) an assurance that the eligible applicant will 
     cooperate with the Secretary and the State educational agency 
     in evaluating the program assisted under this subpart;
       ``(L) a description of how a charter school that is 
     considered a local educational agency under State law, or a 
     local educational agency in which a charter school is 
     located, will comply with sections 613(a)(5) and 613(e)(1)(B) 
     of the Individuals with Disabilities Education Act;
       ``(M) if the eligible applicant desires to use subgrant 
     funds for dissemination activities under section 
     5202(c)(2)(C), a description of those activities and how 
     those activities will involve charter schools and other 
     public schools, local educational agencies, developers, and 
     potential developers; and
       ``(N) such other information and assurances as the 
     Secretary and the State educational agency may require.
       ``(c) Eligible Applicant Application.--Each eligible 
     applicant desiring a grant pursuant to section 5202(b) shall 
     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(d) Contents of Eligible Applicant Application.--Each 
     application submitted pursuant to subsection (c) shall 
     contain--
       ``(1) the information and assurances described in 
     subparagraphs (A) through (N) of subsection (b)(3), except 
     that for purposes of this subsection subparagraphs (J), (K), 
     and (N) of such subsection shall be applied by striking `and 
     the State educational agency' each place such term appears;
       ``(2) assurances that the State educational agency--
       ``(A) will grant, or will obtain, waivers of State 
     statutory or regulatory requirements; and
       ``(B) will assist each subgrantee in the State in receiving 
     a waiver under section 5204(e); and
       ``(3) assurances that the eligible applicant has provided 
     its authorized public chartering authority timely notice, and 
     a copy, of the application, except that the State educational 
     agency (or the Secretary, in the case of an application 
     submitted to the Secretary) may waive the requirement of this 
     paragraph in the case of an application for a precharter 
     planning grant or subgrant if the authorized public 
     chartering authority to which a charter school proposal will 
     be submitted has not been determined at the time the grant or 
     subgrant application is submitted.

     ``SEC. 5204. ADMINISTRATION.

       ``(a) Selection Criteria for State Educational Agencies.--
     The Secretary shall award grants to State educational 
     agencies under this subpart on the basis of the quality of 
     the applications submitted under section 5203(b), after 
     taking into consideration such factors as--
       ``(1) the contribution that the charter schools grant 
     program will make to assisting educationally disadvantaged 
     and other students in meeting State academic content 
     standards and State student academic achievement standards;
       ``(2) the degree of flexibility afforded by the State 
     educational agency to charter schools under the State's 
     charter schools law;
       ``(3) the ambitiousness of the objectives for the State 
     charter school grant program;
       ``(4) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(5) the likelihood that the charter school grant program 
     will meet those objectives and improve educational results 
     for students;
       ``(6) the number of high-quality charter schools created 
     under this subpart in the State; and
       ``(7) in the case of State educational agencies that 
     propose to use grant funds to support dissemination 
     activities under subsection (f)(6)(B), the quality of those 
     activities and the likelihood that those activities will 
     improve student academic achievement.
       ``(b) Selection Criteria for Eligible Applicants.--The 
     Secretary shall award grants to eligible applicants under 
     this subpart on the basis of the quality of the applications 
     submitted under section 5203(c), after taking into 
     consideration such factors as--
       ``(1) the quality of the proposed curriculum and 
     instructional practices;
       ``(2) the degree of flexibility afforded by the State 
     educational agency and, if applicable, the local educational 
     agency to the charter school;
       ``(3) the extent of community support for the application;
       ``(4) the ambitiousness of the objectives for the charter 
     school;
       ``(5) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(6) the likelihood that the charter school will meet 
     those objectives and improve educational results for 
     students; and
       ``(7) in the case of an eligible applicant that proposes to 
     use grant funds to support dissemination activities under 
     subsection (f)(6)(B), the quality of those activities and the 
     likelihood that those activities will improve student 
     achievement.
       ``(c) Peer Review.--The Secretary, and each State 
     educational agency receiving a grant under this subpart, 
     shall use a peer review process to review applications for 
     assistance under this subpart.
       ``(d) Diversity of Projects.--The Secretary and each State 
     educational agency receiving a grant under this subpart, 
     shall award grants and subgrants under this subpart in a 
     manner that, to the extent possible, ensures that such grants 
     and subgrants--
       ``(1) are distributed throughout different areas of the 
     Nation and each State, including urban and rural areas; and
       ``(2) will assist charter schools representing a variety of 
     educational approaches, such as approaches designed to reduce 
     school size.
       ``(e) Waivers.--The Secretary may waive any statutory or 
     regulatory requirement over which the Secretary exercises 
     administrative authority except any such requirement relating 
     to the elements of a charter school described in section 
     5210(1), if--
       ``(1) the waiver is requested in an approved application 
     under this subpart; and
       ``(2) the Secretary determines that granting such a waiver 
     will promote the purpose of this subpart.
       ``(f) Use of Funds.--
       ``(1) State educational agencies.--Each State educational 
     agency receiving a grant under this subpart shall use such 
     grant funds to award subgrants to 1 or more eligible 
     applicants in the State to enable such applicant to plan and 
     implement a charter school in accordance with this subpart, 
     except that the State educational agency may reserve not more 
     than 10 percent of the grant funds to support dissemination 
     activities described in paragraph (6).
       ``(2) Eligible applicants.--Each eligible applicant 
     receiving funds from the Secretary or a State educational 
     agency shall use such funds to plan and implement a charter 
     school, or to disseminate information about the charter 
     school and successful practices in the charter school, in 
     accordance with this subpart.
       ``(3) Allowable activities.--An eligible applicant 
     receiving a grant or subgrant under this subpart may use the 
     grant or subgrant funds only for--

[[Page 25723]]

       (A) post-award planning and design of the educational 
     program, which may include--
       ``(i) refinement of the desired educational results and of 
     the methods for measuring progress toward achieving those 
     results; and
       ``(ii) professional development of teachers and other staff 
     who will work in the charter school; and
       ``(B) initial implementation of the charter school, which 
     may include--
       ``(i) informing the community about the school;
       ``(ii) acquiring necessary equipment and educational 
     materials and supplies;
       ``(iii) acquiring or developing curriculum materials; and
       ``(iv) other initial operational costs that cannot be met 
     from State or local sources.
       ``(4) Administrative expenses.--
       ``(A) State educational agency administrative expenses.--
     Each State educational agency receiving a grant pursuant to 
     this subpart may reserve not more than 5 percent of such 
     grant funds for administrative expenses associated with the 
     charter school grant program assisted under this subpart.
       ``(B) Local administrative expenses.--A local educational 
     agency may not deduct funds for administrative fees or 
     expenses from a subgrant awarded to an eligible applicant, 
     unless the eligible applicant enters voluntarily into a 
     mutually agreed upon arrangement for administrative services 
     with the relevant local educational agency. Absent such 
     approval, the local educational agency shall distribute all 
     such subgrant funds to the eligible applicant without delay.
       ``(5) Revolving loan funds.--Each State educational agency 
     receiving a grant pursuant to this subpart may reserve not 
     more than 10 percent of the grant funds for the establishment 
     of a revolving loan fund. Such fund may be used to make loans 
     to eligible applicants that have received a subgrant under 
     this subpart, under such terms as may be determined by the 
     State educational agency, for the initial operation of the 
     charter school grant program of the eligible applicant until 
     such time as the recipient begins receiving ongoing 
     operational support from State or local financing sources.
       ``(6) Dissemination.--
       ``(A) In general.--A charter school may apply for funds 
     under this subpart, whether or not the charter school has 
     applied for or received funds under this subpart for 
     planning, program design, or implementation, to carry out the 
     activities described in subparagraph (B) if the charter 
     school has been in operation for at least 3 consecutive years 
     and has demonstrated overall success, including--
       ``(i) substantial progress in improving student academic 
     achievement;
       ``(ii) high levels of parent satisfaction; and
       ``(iii) the management and leadership necessary to overcome 
     initial start-up problems and establish a thriving, 
     financially viable charter school.
       ``(B) Activities.--A charter school described in 
     subparagraph (A) may use funds reserved under paragraph (1) 
     to assist other schools in adapting the charter school's 
     program (or certain aspects of the charter school's program), 
     or to disseminate information about the charter school, 
     through such activities as--
       ``(i) assisting other individuals with the planning and 
     start-up of 1 or more new public schools, including charter 
     schools, that are independent of the assisting charter school 
     and the assisting charter school's developers, and that agree 
     to be held to at least as high a level of accountability as 
     the assisting charter school;
       ``(ii) developing partnerships with other public schools, 
     including charter schools, designed to improve student 
     academic achievement in each of the schools participating in 
     the partnership;
       ``(iii) developing curriculum materials, assessments, and 
     other materials that promote increased student achievement 
     and are based on successful practices within the assisting 
     charter school; and
       ``(iv) conducting evaluations and developing materials that 
     document the successful practices of the assisting charter 
     school and that are designed to improve student performance 
     in other schools.
       ``(g) Tribally Controlled Schools.--Each State that 
     receives a grant under this subpart and designates a tribally 
     controlled school as a charter school shall not consider 
     payments to a school under the Tribally Controlled Schools 
     Act of 1988 (25 U.S.C. 2507) in determining--
       ``(1) the eligibility of the school to receive any other 
     Federal, State, or local aid; or
       ``(2) the amount of such aid.

     ``SEC. 5205. NATIONAL ACTIVITIES.

       ``(a) In General.--The Secretary shall reserve for each 
     fiscal year the greater of 5 percent or $5,000,000 of the 
     amount appropriated to carry out this subpart, except that in 
     no fiscal year shall the total amount so reserved exceed 
     $8,000,000, to carry out the following activities:
       ``(1) To provide charter schools, either directly or 
     through State educational agencies, with--
       ``(A) information regarding--
       ``(i) Federal funds that charter schools are eligible to 
     receive; and
       ``(ii) other Federal programs in which charter schools may 
     participate; and
       ``(B) assistance in applying for Federal education funds 
     that are allocated by formula, including assistance with 
     filing deadlines and submission of applications.
       ``(2) To provide for other evaluations or studies that 
     include the evaluation of the impact of charter schools on 
     student academic achievement, including information 
     regarding--
       ``(A) students attending charter schools reported on the 
     basis of race, age, disability, gender, limited English 
     proficiency, and previous enrollment in public school; and
       ``(B) the professional qualifications of teachers within a 
     charter school and the turnover of the teaching force.
       ``(3) To provide--
       ``(A) information to applicants for assistance under this 
     subpart;
       ``(B) assistance to applicants for assistance under this 
     subpart with the preparation of applications under section 
     5203;
       ``(C) assistance in the planning and startup of charter 
     schools;
       ``(D) training and technical assistance to existing charter 
     schools; and
       ``(E) for the dissemination to other public schools of best 
     or promising practices in charter schools.
       ``(4) To provide (including through the use of 1 or more 
     contracts that use a competitive bidding process) for the 
     collection of information regarding the financial resources 
     available to charter schools, including access to private 
     capital, and to widely disseminate to charter schools any 
     such relevant information and model descriptions of 
     successful programs.
       ``(5) To carry out evaluations of, technical assistance 
     for, and information dissemination regarding, the per-pupil 
     facilities aid programs. In carrying out the evaluations, the 
     Secretary may carry out 1 or more evaluations of State 
     programs assisted under this subsection, which shall, at a 
     minimum, address--
       ``(A) how, and the extent to which, the programs promote 
     educational equity and excellence; and
       ``(B) the extent to which charter schools supported through 
     the programs are--
       ``(i) held accountable to the public;
       ``(ii) effective in improving public education; and
       ``(iii) open and accessible to all students.
       ``(b) Per-Pupil Facilities Aid Programs.--
       ``(1) Definition of per-pupil facilities aid program.--In 
     this subsection, the term `per-pupil facilities aid program' 
     means a program in which a State makes payments, on a per-
     pupil basis, to charter schools to provide the schools with 
     financing--
       ``(A) that is dedicated solely for funding charter school 
     facilities; or
       ``(B) a portion of which is dedicated for funding charter 
     school facilities.
       ``(2) Grants.--
       ``(A) In general.--From the amount made available to carry 
     out this subsection under paragraphs (2) and (3)(B) of 
     section 5211(b) for any fiscal year, the Secretary shall make 
     grants, on a competitive basis, to States to pay for the 
     Federal share of the cost of establishing or enhancing, and 
     administering per-pupil facilities aid programs.
       ``(B) Period.--The Secretary shall award grants under this 
     subsection for periods of not more than 5 years.
       ``(C) Federal share.--The Federal share of the cost 
     described in subparagraph (A) for a per-pupil facilities aid 
     program shall be not more than--
       ``(i) 90 percent of the cost, for the first fiscal year for 
     which the program receives assistance under this subsection;
       ``(ii) 80 percent in the second such year;
       ``(iii) 60 percent in the third such year;
       ``(iv) 40 percent in the fourth such year; and
       ``(v) 20 percent in the fifth such year.
       ``(3) Use of funds.--
       ``(A) In general.--A State that receives a grant under this 
     subsection shall use the funds made available through the 
     grant to establish or enhance, and administer, a per-pupil 
     facilities aid program for charter schools in the State.
       ``(B) Evaluations; technical assistance; dissemination.--
     From the amount made available to a State through a grant 
     under this subsection for a fiscal year, the State may 
     reserve not more than 5 percent to carry out evaluations, to 
     provide technical assistance, and to disseminate information.
       ``(C) Supplement, not supplant.--Funds made available under 
     this subsection shall be used to supplement, and not 
     supplant, State and local public funds expended to provide 
     per pupil facilities aid programs, operations financing 
     programs, or other programs, for charter schools.
       ``(4) Requirements.--
       ``(A) Voluntary participation.--No State may be required to 
     participate in a program carried out under this subsection.
       ``(B) State law.--To be eligible to receive a grant under 
     this subsection, a State shall establish or enhance, and 
     administer, a per-pupil facilities aid program for charter 
     schools in the State, that--
       ``(i) is specified in State law; and
       ``(ii) provides annual financing, on a per-pupil basis, for 
     charter school facilities.
       ``(5) Applications.--To be eligible to receive a grant 
     under this subsection, a State shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(6) Priorities.--In making grants under this subsection, 
     the Secretary shall give priority to States that meet the 
     criteria described in paragraph (2), and subparagraphs (A), 
     (B), and (C) of paragraph (3), of section 5202(e).
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to require charter schools to collect any data 
     described in subsection (a).

[[Page 25724]]



     ``SEC. 5206. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND 
                   FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

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

     ``SEC. 5207. SOLICITATION OF INPUT FROM CHARTER SCHOOL 
                   OPERATORS.

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

     ``SEC. 5208. RECORDS TRANSFER.

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

     ``SEC. 5209. PAPERWORK REDUCTION.

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

     ``SEC. 5210. DEFINITIONS.

       ``In this subpart:
       ``(1) Charter school.--The term `charter school' means a 
     public school that--
       ``(A) in accordance with a specific State statute 
     authorizing the granting of charters to schools, is exempt 
     from significant State or local rules that inhibit the 
     flexible operation and management of public schools, but not 
     from any rules relating to the other requirements of this 
     paragraph;
       ``(B) is created by a developer as a public school, or is 
     adapted by a developer from an existing public school, and is 
     operated under public supervision and direction;
       ``(C) operates in pursuit of a specific set of educational 
     objectives determined by the school's developer and agreed to 
     by the authorized public chartering agency;
       ``(D) provides a program of elementary or secondary 
     education, or both;
       ``(E) is nonsectarian in its programs, admissions policies, 
     employment practices, and all other operations, and is not 
     affiliated with a sectarian school or religious institution;
       ``(F) does not charge tuition;
       ``(G) complies with the Age Discrimination Act of 1975, 
     title VI of the Civil Rights Act of 1964, title IX of the 
     Education Amendments of 1972, section 504 of the 
     Rehabilitation Act of 1973, and part B of the Individuals 
     with Disabilities Education Act;
       ``(H) is a school to which parents choose to send their 
     children, and that admits students on the basis of a lottery, 
     if more students apply for admission than can be 
     accommodated;
       ``(I) agrees to comply with the same Federal and State 
     audit requirements as do other elementary schools and 
     secondary schools in the State, unless such requirements are 
     specifically waived for the purpose of this program;
       ``(J) meets all applicable Federal, State, and local health 
     and safety requirements;
       ``(K) operates in accordance with State law; and
       ``(L) has a written performance contract with the 
     authorized public chartering agency in the State that 
     includes a description of how student performance will be 
     measured in charter schools pursuant to State assessments 
     that are required of other schools and pursuant to any other 
     assessments mutually agreeable to the authorized public 
     chartering agency and the charter school.
       ``(2) Developer.--The term `developer' means an individual 
     or group of individuals (including a public or private 
     nonprofit organization), which may include teachers, 
     administrators and other school staff, parents, or other 
     members of the local community in which a charter school 
     project will be carried out.
       ``(3) Eligible applicant.--The term `eligible applicant' 
     means a developer that has--
       ``(A) applied to an authorized public chartering authority 
     to operate a charter school; and
       ``(B) provided adequate and timely notice to that authority 
     under section 5203(d)(3).
       ``(4) Authorized public chartering agency.--The term 
     `authorized public chartering agency' means a State 
     educational agency, local educational agency, or other public 
     entity that has the authority pursuant to State law and 
     approved by the Secretary to authorize or approve a charter 
     school.

     ``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart $300,000,000 for fiscal year 2002 
     and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(b) Reservation.--From the amount appropriated under 
     subsection (a) for each fiscal year, the Secretary shall 
     reserve--
       ``(1) $200,000,000 to carry out this subpart, other than 
     section 5205(b); and
       ``(2) any funds in excess of $200,000,000, that do not 
     exceed $300,000,000, to carry out section 5205(b); and
       ``(3)(A) 50 percent of any funds in excess of $300,000,000 
     to carry out this subpart, other than section 5205(b); and
       ``(B) 50 percent of any funds in excess of $300,000,000 to 
     carry out section 5205(b).

 ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

     ``SEC. 5221. PURPOSE.

       ``The purpose of this subpart is to provide grants to 
     eligible entities to permit the eligible entities to 
     demonstrate innovative credit enhancement initiatives that 
     assist charter schools to address the cost of acquiring, 
     constructing, and renovating facilities.

     ``SEC. 5222. GRANTS TO ELIGIBLE ENTITIES.

       ``(a) Grants.--The Secretary shall use 100 percent of the 
     amount available to carry out this subpart to award not less 
     than 3 grants to eligible entities that have applications 
     approved under this subpart to demonstrate innovative methods 
     of assisting charter schools to address the cost of 
     acquiring, constructing, and renovating facilities by 
     enhancing the availability of loans or bond financing.
       ``(b) Grantee Selection.--
       ``(1) Evaluation of application.--The Secretary shall 
     evaluate each application submitted under section 5223, and 
     shall determine whether the application is sufficient to 
     merit approval.
       ``(2) Distribution of grants.--The Secretary shall award at 
     least 1 grant to an eligible entity described in section 
     5230(2)(A), at least 1 grant to an eligible entity described 
     in section 5230(2)(B), and at least 1 grant to an eligible 
     entity described in section 5230(2)(C), if applications are 
     submitted that permit the Secretary to do so without 
     approving an application that is not of sufficient quality to 
     merit approval.
       ``(c) Grant Characteristics.--Grants under this subpart 
     shall be of a sufficient size, scope, and quality so as to 
     ensure an effective demonstration of an innovative means of 
     enhancing credit for the financing of charter school 
     acquisition, construction, or renovation.
       ``(d) Special Rule.--In the event the Secretary determines 
     that the funds made available under this subpart are 
     insufficient to permit the Secretary to award not less than 3 
     grants in accordance with subsections (a) through (c), such 
     3-grant minimum and subsection (b)(2) shall not apply, and 
     the Secretary may determine the appropriate number of grants 
     to be awarded in accordance with subsection (c).

     ``SEC. 5223. APPLICATIONS.

       ``(a) In General.--To receive a grant under this subpart, 
     an eligible entity shall submit to the Secretary an 
     application in such form as the Secretary may reasonably 
     require.
       ``(b) Contents.--An application submitted under subsection 
     (a) shall contain--
       ``(1) a statement identifying the activities proposed to be 
     undertaken with funds received under this subpart, including 
     how the eligible entity will determine which charter schools 
     will receive assistance, and how much and what types of 
     assistance charter schools will receive;
       ``(2) a description of the involvement of charter schools 
     in the application's development and the design of the 
     proposed activities;
       ``(3) a description of the eligible entity's expertise in 
     capital market financing;
       ``(4) a description of how the proposed activities will 
     leverage the maximum amount of private-sector financing 
     capital relative to the amount of government funding used and 
     otherwise enhance credit available to charter schools;
       ``(5) a description of how the eligible entity possesses 
     sufficient expertise in education to evaluate the likelihood 
     of success of a charter school program for which facilities 
     financing is sought;
       ``(6) in the case of an application submitted by a State 
     governmental entity, a description of the actions that the 
     entity has taken, or will take, to ensure that charter 
     schools within the State

[[Page 25725]]

     receive the funding the charter schools need to have adequate 
     facilities; and
       ``(7) such other information as the Secretary may 
     reasonably require.

     ``SEC. 5224. CHARTER SCHOOL OBJECTIVES.

       ``An eligible entity receiving a grant under this subpart 
     shall use the funds deposited in the reserve account 
     established under section 5225(a) to assist 1 or more charter 
     schools to access private sector capital to accomplish 1 or 
     both of the following objectives:
       ``(1) The acquisition (by purchase, lease, donation, or 
     otherwise) of an interest (including an interest held by a 
     third party for the benefit of a charter school) in improved 
     or unimproved real property that is necessary to commence or 
     continue the operation of a charter school.
       ``(2) The construction of new facilities, or the 
     renovation, repair, or alteration of existing facilities, 
     necessary to commence or continue the operation of a charter 
     school.

     ``SEC. 5225. RESERVE ACCOUNT.

       ``(a) Use of Funds.--To assist charter schools to 
     accomplish the objectives described in section 5224, an 
     eligible entity receiving a grant under this subpart shall, 
     in accordance with State and local law, directly or 
     indirectly, alone or in collaboration with others, deposit 
     the funds received under this subpart (other than funds used 
     for administrative costs in accordance with section 5226) in 
     a reserve account established and maintained by the eligible 
     entity for this purpose. Amounts deposited in such account 
     shall be used by the eligible entity for 1 or more of the 
     following purposes:
       ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
     evidences of debt, loans, and interests therein, the proceeds 
     of which are used for an objective described in section 5224.
       ``(2) Guaranteeing and insuring leases of personal and real 
     property for an objective described in section 5224.
       ``(3) Facilitating financing by identifying potential 
     lending sources, encouraging private lending, and other 
     similar activities that directly promote lending to, or for 
     the benefit of, charter schools.
       ``(4) Facilitating the issuance of bonds by charter 
     schools, or by other public entities for the benefit of 
     charter schools, by providing technical, administrative, and 
     other appropriate assistance (including the recruitment of 
     bond counsel, underwriters, and potential investors and the 
     consolidation of multiple charter school projects within a 
     single bond issue).
       ``(b) Investment.--Funds received under this subpart and 
     deposited in the reserve account established under subsection 
     (a) shall be invested in obligations issued or guaranteed by 
     the United States or a State, or in other similarly low-risk 
     securities.
       ``(c) Reinvestment of Earnings.--Any earnings on funds 
     received under this subpart shall be deposited in the reserve 
     account established under subsection (a) and used in 
     accordance with such subsection.

     ``SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS.

       ``An eligible entity may use not more than 0.25 percent of 
     the funds received under this subpart for the administrative 
     costs of carrying out its responsibilities under this 
     subpart.

     ``SEC. 5227. AUDITS AND REPORTS.

       ``(a) Financial Record Maintenance and Audit.--The 
     financial records of each eligible entity receiving a grant 
     under this subpart shall be maintained in accordance with 
     generally accepted accounting principles and shall be subject 
     to an annual audit by an independent public accountant.
       ``(b) Reports.--
       ``(1) Grantee annual reports.--Each eligible entity 
     receiving a grant under this subpart annually shall submit to 
     the Secretary a report of its operations and activities under 
     this subpart.
       ``(2) Contents.--Each annual report submitted under 
     paragraph (1) shall include--
       ``(A) a copy of the most recent financial statements, and 
     any accompanying opinion on such statements, prepared by the 
     independent public accountant reviewing the financial records 
     of the eligible entity;
       ``(B) a copy of any report made on an audit of the 
     financial records of the eligible entity that was conducted 
     under subsection (a) during the reporting period;
       ``(C) an evaluation by the eligible entity of the 
     effectiveness of its use of the Federal funds provided under 
     this subpart in leveraging private funds;
       ``(D) a listing and description of the charter schools 
     served during the reporting period;
       ``(E) a description of the activities carried out by the 
     eligible entity to assist charter schools in meeting the 
     objectives set forth in section 5224; and
       ``(F) a description of the characteristics of lenders and 
     other financial institutions participating in the activities 
     undertaken by the eligible entity under this subpart during 
     the reporting period.
       ``(3) Secretarial report.--The Secretary shall review the 
     reports submitted under paragraph (1) and shall provide a 
     comprehensive annual report to Congress on the activities 
     conducted under this subpart.

     ``SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE 
                   OBLIGATIONS.

       ``No financial obligation of an eligible entity entered 
     into pursuant to this subpart (such as an obligation under a 
     guarantee, bond, note, evidence of debt, or loan) shall be an 
     obligation of, or guaranteed in any respect by, the United 
     States. The full faith and credit of the United States is not 
     pledged to the payment of funds which may be required to be 
     paid under any obligation made by an eligible entity pursuant 
     to any provision of this subpart.

     ``SEC. 5229. RECOVERY OF FUNDS.

       ``(a) In General.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(1) all of the funds in a reserve account established by 
     an eligible entity under section 5225(a) if the Secretary 
     determines, not earlier than 2 years after the date on which 
     the eligible entity first received funds under this subpart, 
     that the eligible entity has failed to make substantial 
     progress in carrying out the purposes described in section 
     5225(a); or
       ``(2) all or a portion of the funds in a reserve account 
     established by an eligible entity under section 5225(a) if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of the funds in 
     such account to accomplish any purpose described in section 
     5225(a).
       ``(b) Exercise of Authority.--The Secretary shall not 
     exercise the authority provided in subsection (a) to collect 
     from any eligible entity any funds that are being properly 
     used to achieve 1 or more of the purposes described in 
     section 5225(a).
       ``(c) Procedures.--The provisions of sections 451, 452, and 
     458 of the General Education Provisions Act shall apply to 
     the recovery of funds under subsection (a).
       ``(d) Construction.--This section shall not be construed to 
     impair or affect the authority of the Secretary to recover 
     funds under part D of the General Education Provisions Act.

     ``SEC. 5230. DEFINITIONS.

       ``In this subpart:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5210.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a public entity, such as a State or local 
     governmental entity;
       ``(B) a private nonprofit entity; or
       ``(C) a consortium of entities described in subparagraphs 
     (A) and (B).

     ``SEC. 5231. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subpart, there are 
     authorized to be appropriated $150,000,000 for fiscal year 
     2002 and such sums as may be necessary for fiscal year 
     2003.''

          ``Subpart 3--Voluntary Public School Choice Programs

     ``SEC. 5241. GRANTS.

       ``(a) Authorization.--From funds made available under 
     section 5248 to carry out this subpart, the Secretary shall 
     award grants, on a competitive basis, to eligible entities to 
     enable the entities to establish or expand a program of 
     public school choice (referred to in this subpart as a 
     `program') in accordance with this subpart.
       ``(b) Duration.--Grants awarded under subsection (a) may be 
     awarded for a period of not more than 5 years.

     ``SEC. 5242. USES OF FUNDS.

       ``(a) Required Use of Funds.--An eligible entity that 
     receives a grant under this subpart shall use the grant funds 
     to provide students selected to participate in the program 
     with transportation services or the cost of transportation to 
     and from the public elementary schools and secondary schools, 
     including charter schools, that the students choose to attend 
     under the program.
       ``(b) Permissible Uses of Funds.--An eligible entity that 
     receives a grant under this subpart may use the grant funds 
     for--
       ``(1) planning or designing a program (for not more than 1 
     year);
       ``(2) the cost of making tuition transfer payments to 
     public elementary schools or secondary schools to which 
     students transfer under the program;
       ``(3) the cost of capacity-enhancing activities that enable 
     high-demand public elementary schools or secondary schools to 
     accommodate transfer requests under the program;
       ``(4) the cost of carrying out public education campaigns 
     to inform students and parents about the program; and
       ``(5) other costs reasonably necessary to implement the 
     program.
       ``(c) Nonpermissible Uses of Funds.--An eligible entity 
     that receives a grant under this subpart may not use the 
     grant funds for school construction.
       ``(d) Administrative Expenses.--The eligible entity may use 
     not more than 5 percent of the funds made available through 
     the grant for any fiscal year for administrative expenses.

     ``SEC. 5243. APPLICATIONS.

       ``(a) Submission.--An eligible entity that desires a grant 
     under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(b) Contents.--An application submitted under subsection 
     (a) shall include--
       ``(1) a description of the program for which the eligible 
     entity seeks funds and the goals for such program;
       ``(2) a description of how and when parents of students 
     will be given the notice required under section 5245(a)(2);
       ``(3) a description of how students will be selected for 
     the program;
       ``(4) a description of how the program will be coordinated 
     with, and will complement and enhance, other related Federal 
     and non-Federal projects;
       ``(5) if the program is to be carried out by a partnership, 
     the name of each partner and a description of the partner's 
     responsibilities; and
       ``(6) such other information as the Secretary may require.

[[Page 25726]]



     ``SEC. 5244. PRIORITIES.

       ``In awarding grants under this subpart, the Secretary 
     shall give priority to an eligible entity--
       ``(1) whose program would provide the widest variety of 
     choices to all students in participating schools;
       ``(2) whose program would, through various choice options, 
     have the most impact in allowing students in low-performing 
     schools to attend higher-performing schools; and
       ``(3) that is a partnership that seeks to implement an 
     interdistrict approach to carrying out a program.

     ``SEC. 5245. REQUIREMENTS AND VOLUNTARY PARTICIPATION.

       ``(a) Parent and Community Involvement and Notice.--In 
     carrying out a program under this subpart, an eligible entity 
     shall--
       ``(1) develop the program with--
       ``(A) the involvement of parents and others in the 
     community to be served; and
       ``(B) individuals who will carry out the program, including 
     administrators, teachers, principals, and other staff; and
       ``(2) provide to parents of students in the area to be 
     served by the program with prompt notice of--
       ``(A) the existence of the program;
       ``(B) the program's availability; and
       ``(C) a clear explanation of how the program will operate.
       ``(b) Selection of Students.--An eligible entity that 
     receives a grant under this subpart shall select students to 
     participate in a program on the basis of a lottery, if more 
     students apply for admission to the program than can be 
     accommodated.
       ``(c) Voluntary Participation.--Student participation in a 
     program funded under this subpart shall be voluntary.

     ``SEC. 5246. EVALUATIONS.

       ``(a) In General.--From the amount made available to carry 
     out this subpart for any fiscal year, the Secretary may 
     reserve not more than 5 percent--
       ``(1) to carry out evaluations;
       ``(2) to provide technical assistance; and
       ``(3) to disseminate information.
       ``(b) Evaluations.--In carrying out the evaluations under 
     subsection (a), the Secretary shall, at a minimum, address--
       ``(1) how, and the extent to which, the programs promote 
     educational equity and excellence;
       ``(2) the characteristics of the students participating in 
     the programs; and
       ``(3) the effect of the programs on the academic 
     achievement of students participating in the programs, 
     particularly students who move from schools identified under 
     section 1116 to schools not so identified, and on the overall 
     quality of participating schools and districts.

     ``SEC. 5247. DEFINITIONS.

       ``In this subpart:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5210.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) one or more State educational agencies;
       ``(B) one or more local educational agencies; or
       ``(C) a partnership of--
       ``(i) one or more--

       ``(I) State educational agencies; and
       ``(II) local educational agencies or other public, for-
     profit, or nonprofit entities; or

       ``(ii) one or more--

       ``(I) local educational agencies; and
       ``(II) public, for-profit, or nonprofit entities.

       ``(3) Low-performing school.--The term `low-performing 
     school' means a public elementary school or secondary school 
     that has failed to make adequate yearly progress, as 
     described in section 1111(b), for 2 or more consecutive 
     years.

     ``SEC. 5248. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $100,000,000 for fiscal year 2002 and each of the 5 
     succeeding fiscal years.

                  ``PART C--MAGNET SCHOOLS ASSISTANCE

     ``SEC. 5301. FINDINGS AND PURPOSE.

       ``(a) Findings.--Congress makes the following findings:
       ``(1) Magnet schools are a significant part of the Nation's 
     effort to achieve voluntary desegregation in our Nation's 
     schools.
       ``(2) The use of magnet schools has increased dramatically 
     since the inception of the magnet schools assistance program 
     under this Act, with approximately 2,000,000 students 
     nationwide attending such schools, of whom more than 65 
     percent are non-white.
       ``(3) Magnet schools offer a wide range of distinctive 
     programs that have served as models for school improvement 
     efforts.
       ``(4) It is in the best interests of the United States--
       ``(A) to continue the Federal Government's support of local 
     educational agencies that are implementing court-ordered 
     desegregation plans and local educational agencies that are 
     voluntarily seeking to foster meaningful interaction among 
     students of different racial and ethnic backgrounds, 
     beginning at the earliest stage of such students' education;
       ``(B) to ensure that all students have equitable access to 
     a high quality education that will prepare all students to 
     function well in a technologically oriented and a highly 
     competitive economy comprised of people from many different 
     racial and ethnic backgrounds; and
       ``(C) to continue to desegregate and diversify schools by 
     supporting magnet schools, recognizing that segregation 
     exists between minority and nonminority students as well as 
     among students of different minority groups.
       ``(5) Desegregation efforts through magnet school programs 
     are a significant part of our Nation's effort to achieve 
     voluntary desegregation in schools and help to ensure equal 
     educational opportunities for all students.
       ``(b) Purpose.--The purpose of this part is to assist in 
     the desegregation of schools served by local educational 
     agencies by providing financial assistance to eligible local 
     educational agencies for--
       ``(1) the elimination, reduction, or prevention of minority 
     group isolation in elementary schools and secondary schools 
     with substantial proportions of minority students, which 
     shall include assisting in the efforts of the United States 
     to achieve voluntary desegregation in public schools;
       ``(2) the development and implementation of magnet school 
     programs that will assist local educational agencies in 
     achieving systemic reforms and providing all students the 
     opportunity to meet challenging State academic content 
     standards and student academic achievement standards;
       ``(3) the development and design of innovative educational 
     methods and practices that promote diversity and increase 
     choices in public elementary schools and public secondary 
     schools and public educational programs;
       ``(4) courses of instruction within magnet schools that 
     will substantially strengthen the knowledge of academic 
     subjects and the attainment of tangible and marketable 
     vocational, technological, and professional skills of 
     students attending such schools;
       ``(5) improving the capacity of local educational agencies, 
     including through professional development, to continue 
     operating magnet schools at a high performance level after 
     Federal funding for the magnet schools is terminated; and
       ``(6) ensuring that all students enrolled in the magnet 
     school programs have equitable access to high quality 
     education that will enable the students to succeed 
     academically and continue with postsecondary education or 
     productive employment.

     ``SEC. 5302. DEFINITION.

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

     ``SEC. 5303. PROGRAM AUTHORIZED.

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

     ``SEC. 5304. ELIGIBILITY.

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

     ``SEC. 5305. APPLICATIONS AND REQUIREMENTS.

       ``(a) Applications.--An eligible local educational agency, 
     or consortium of such agencies, desiring to receive a grant 
     under this part shall submit an application to the Secretary 
     at such time, in such manner, and containing such information 
     and assurances as the Secretary may reasonably require.
       ``(b) Information and Assurances.--Each application 
     submitted under subsection (a) shall include--
       ``(1) a description of--
       ``(A) how a grant awarded under this part will be used to 
     promote desegregation, including how the proposed magnet 
     school programs will increase interaction among students of 
     different social, economic, ethnic, and racial backgrounds;
       ``(B) the manner and extent to which the magnet school 
     program will increase student academic achievement in the 
     instructional area or areas offered by the school;
       ``(C) how the applicant will continue the magnet school 
     program after assistance under this part is no longer 
     available, and, if applicable, an explanation of why magnet 
     schools established or supported by the applicant with grant 
     funds under this part cannot be continued without the use of 
     grant funds under this part;
       ``(D) how grant funds under this part will be used--

[[Page 25727]]

       ``(i) to improve student academic achievement for all 
     students attending the magnet school programs; and
       ``(ii) to implement services and activities that are 
     consistent with other programs under this Act, and other 
     Acts, as appropriate; and
       ``(E) the criteria to be used in selecting students to 
     attend the proposed magnet school program; and
       ``(2) assurances that the applicant will--
       ``(A) use grant funds under this part for the purposes 
     specified in section 5301(b);
       ``(B) employ highly qualified teachers in the courses of 
     instruction assisted under this part;
       ``(C) not engage in discrimination based on race, religion, 
     color, national origin, sex, or disability in--
       ``(i) the hiring, promotion, or assignment of employees of 
     the applicant or other personnel for whom the applicant has 
     any administrative responsibility;
       ``(ii) the assignment of students to schools, or to courses 
     of instruction within the schools, of such applicant, except 
     to carry out the approved plan; and
       ``(iii) designing or operating extracurricular activities 
     for students;
       ``(D) carry out a high-quality education program that will 
     encourage greater parental decisionmaking and involvement; 
     and
       ``(E) give students residing in the local attendance area 
     of the proposed magnet school program equitable consideration 
     for placement in the program, consistent with desegregation 
     guidelines and the capacity of the applicant to accommodate 
     the students.
       ``(c) Special Rule.--No grant shall be awarded under this 
     part unless the Assistant Secretary of Education for Civil 
     Rights determines that the assurances described in subsection 
     (b)(2)(C) will be met.

     ``SEC. 5306. PRIORITY.

       ``In awarding grants under this part, the Secretary shall 
     give priority to applicants that--
       ``(1) demonstrate the greatest need for assistance, based 
     on the expense or difficulty of effectively carrying out 
     approved desegregation plans and the magnet school program 
     for which the grant is sought;
       ``(2) propose to carry out new magnet school programs, or 
     significantly revise existing magnet school programs; and
       ``(3) propose to select students to attend magnet school 
     programs by methods such as lottery, rather than through 
     academic examination.

     ``SEC. 5307. USE OF FUNDS.

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

     ``SEC. 5308. PROHIBITION.

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

     ``SEC. 5309. LIMITATIONS.

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

     ``SEC. 5310. EVALUATIONS.

       ``(a) Reservation.--The Secretary may reserve not more than 
     2 percent of the funds appropriated under section 5311(a) for 
     any fiscal year to carry out evaluations, provide technical 
     assistance, and carry out dissemination projects with respect 
     to magnet school programs assisted under this part.
       ``(b) Contents.--Each evaluation described in subsection 
     (a), at a minimum, shall address--
       ``(1) how and the extent to which magnet school programs 
     lead to educational quality and improvement;
       ``(2) the extent to which magnet school programs enhance 
     student access to a high quality education;
       ``(3) the extent to which magnet school programs lead to 
     the elimination, reduction, or prevention of minority group 
     isolation in elementary schools and secondary schools with 
     substantial proportions of minority students; and
       ``(4) the extent to which magnet school programs differ 
     from other school programs in terms of the organizational 
     characteristics and resource allocations of such magnet 
     school programs.
       ``(c) Dissemination.--The Secretary shall collect and 
     disseminate to the general public information on successful 
     magnet school programs.

     ``SEC. 5311. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

       ``(a) Authorization.--For the purpose of carrying out this 
     part, there are authorized to be appropriated $125,000,000 
     for fiscal year 2002 and such sums as may be necessary for 
     each of the 5 succeeding fiscal years.
       ``(b) Availability of Funds for Grants to Agencies Not 
     Previously Assisted.--In any fiscal year for which the amount 
     appropriated pursuant to subsection (a) exceeds $75,000,000, 
     the Secretary shall give priority in using such amounts in 
     excess of $75,000,000 to awarding grants to local educational 
     agencies or consortia of such agencies that did not receive a 
     grant under this part in the preceding fiscal year.

            ``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

     ``SEC. 5401. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part the following amounts:
       ``(1) $550,000,000 for fiscal year 2002.
       ``(2) $575,000,000 for fiscal year 2003.
       ``(3) $600,000,000 for fiscal year 2004.
       ``(4) $625,000,000 for fiscal year 2005.
       ``(5) $650,000,000 for fiscal year 2006.
       ``(6) $675,000,000 for fiscal year 2007.

           ``Subpart 1--Fund for the Improvement of Education

     ``SEC. 5411. PROGRAMS AUTHORIZED.

       ``(a) Authorization.--The Secretary is authorized to 
     support nationally significant programs to improve the 
     quality of elementary and secondary education at the State 
     and local levels and help all children meet challenging State 
     academic content and student academic achievement standards. 
     The Secretary may carry out such programs directly, or 
     through grants to, or contracts with--
       ``(1) States or local educational agencies;
       ``(2) institutions of higher education; and
       ``(3) other public and private agencies, organizations, and 
     institutions.
       ``(b) Uses of Funds.--Funds made available under section 
     5401 to carry out this subpart may be used for any of the 
     following programs:
       ``(1) Activities to promote systemic education reform at 
     the State and local levels, including scientifically based 
     research, development, and evaluation designed to improve--
       ``(A) student academic achievement at the State and local 
     level; and
       ``(B) strategies for effective parent and community 
     involvement.
       ``(2) Programs at the State and local levels that are 
     designed to yield significant results, including programs to 
     explore approaches to public school choice and school-based 
     decisionmaking.
       ``(3) Recognition programs, which may include financial 
     awards to States, local educational agencies, and schools 
     that have made the greatest progress, based on the 
     Secretary's determination or on a nomination by the State in 
     which the school is located (or in the case of a Bureau 
     funded school, by the Secretary of the Interior) in--
       ``(A) improving the academic achievement of economically 
     disadvantaged students and students from major racial and 
     ethnic minority groups; and
       ``(B) in closing the academic achievement gap for those 
     groups of students farthest away from the proficient level on 
     the academic assessments administered by the State under 
     section 1111.
       ``(4) Scientifically based studies and evaluations of 
     education reform strategies and innovations, and the 
     dissemination of information on the effectiveness of such 
     strategies and innovations.
       ``(5) Identification and recognition of exemplary schools 
     and programs, such as Blue Ribbon Schools, including programs 
     to evaluate the effectiveness of using the best practices of 
     exemplary or Blue Ribbon Schools to improve academic 
     achievement.

[[Page 25728]]

       ``(6) Activities to support Scholar-Athlete Games programs, 
     including the World Scholar-Athlete Games and the U.S. 
     Scholar-Athlete Games.
       ``(7) Programs to promote voter participation in American 
     elections through programs, such as the National Student/
     Parent Mock Election and Kids Voting USA.
       ``(8) Demonstrations relating to the planning and 
     evaluation of the effectiveness of programs under which local 
     educational agencies or schools contract with private 
     management organizations to reform a school or schools.
       ``(9) Other programs that meet the purposes of this Act.
       ``(c) Basis of Awards.--The Secretary is authorized to--
       ``(1) make awards under this subpart on the basis of 
     competitions announced by the Secretary; and
       ``(2) support meritorious unsolicited proposals for awards 
     under this subpart.
       ``(d) Effectiveness of Programs.--The Secretary shall 
     ensure that programs supported under this subpart are 
     designed so that their effectiveness is readily 
     ascertainable, and shall ensure that such effectiveness is 
     assessed using rigorous, scientifically based research and 
     evaluations.

     ``SEC. 5412. APPLICATIONS.

       ``(a) Submission.--To be eligible for an award under this 
     subpart, an entity shall submit an application to the 
     Secretary, at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(b) Contents.--Each application submitted under 
     subsection (a) shall--
       ``(1) establish clear objectives, which are based on 
     scientifically based research, for the proposed program; and
       ``(2) describe the activities the applicant will carry out 
     in order to meet the objectives described in paragraph (1).
       ``(c) Peer Review.--The Secretary shall use a peer review 
     process in reviewing applications for awards under this 
     subpart and in recognizing States, local educational 
     agencies, and schools under section 5411(b)(3), only if funds 
     are used for such recognition programs. The Secretary may use 
     funds appropriated under this subpart for the cost of such 
     peer review.

     ``SEC. 5413. PROGRAM REQUIREMENTS.

       ``(a) Evaluations.--A recipient of an award under this 
     subpart shall--
       ``(1) evaluate the effectiveness of the program funded 
     under the award in achieving the objectives stated in 
     application submitted under section 5412; and
       ``(2) report to the Secretary such information as may be 
     required to determine the effectiveness of such program, 
     including evidence of progress toward meeting such 
     objectives.
       ``(b) Dissemination of Evaluation Results.--The Secretary 
     shall provide for the dissemination of the evaluations of 
     programs funded under this subpart by making the evaluations 
     publicly available upon request, and shall provide public 
     notice that the evaluations are so available.
       ``(c) Matching Funds.--The Secretary may require recipients 
     of awards under this subpart to provide matching funds from 
     non-Federal sources, and shall permit the recipients to match 
     funds in whole or in part with in-kind contributions.
       ``(d) Special Rule for Recognition Programs.--The 
     application requirements of section 5412(b), and the 
     evaluation requirements of subsections (a) and (b) of this 
     section, do not apply to recognition programs under section 
     5411(b)(3).

     ``SEC. 5414. STUDIES OF NATIONAL SIGNIFICANCE.

       ``(a) Studies.--The Secretary shall conduct the following 
     studies of national significance:
       ``(1) Unhealthy public school buildings.--A study regarding 
     the health and learning impacts of environmentally unhealthy 
     public school buildings on students and teachers. The study 
     shall include the following information:
       ``(A) The characteristics of those public elementary school 
     and secondary school buildings that contribute to unhealthy 
     school environments.
       ``(B) The health and learning impacts of environmental 
     unhealthy public school buildings on students that are 
     attending or that have attended such schools.
       ``(C) Recommendations to Congress on how to assist schools 
     that are out of compliance with Federal or State health and 
     safety codes, and a cost estimate of bringing up 
     environmentally unhealthy public school buildings to minimum 
     Federal health and safety building standards.
       ``(2) Exposure to violent entertainment.--A study regarding 
     how exposure to violent entertainment (such as in movies, 
     music, television, Internet content, video games, and arcade 
     games) affects children's cognitive development and 
     educational achievement.
       ``(3) Sexual abuse in schools.--A study regarding the 
     prevalence of sexual abuse in schools, including 
     recommendations and legislative remedies for addressing the 
     problem of sexual abuse in schools.
       ``(b) Completion Date.--The studies under subsection (a) 
     shall be completed not later than 18 months after the date of 
     enactment of the No Child Left Behind Act of 2001.
       ``(c) Public Dissemination.--The Secretary shall make the 
     study conducted under subsection (a)(1) available to the 
     public through the Educational Resources Information Center 
     National Clearinghouse for Educational Facilities of the 
     Department.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

     ``SEC. 5421. ELEMENTARY AND SECONDARY SCHOOL COUNSELING 
                   PROGRAMS.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to local educational agencies to enable such agencies 
     to establish or expand elementary school and secondary school 
     counseling programs that comply with the requirements of 
     subsection (c)(2).
       ``(2) Special consideration.--In awarding grants under this 
     section, the Secretary shall give special consideration to 
     applications describing programs that--
       ``(A) demonstrate the greatest need for new or additional 
     counseling services among children in the schools served by 
     the local educational agency, in part by providing 
     information on current ratios of students to school 
     counselors, students to school social workers, and students 
     to school psychologists;
       ``(B) propose the most promising and innovative approaches 
     for initiating or expanding school counseling; and
       ``(C) show the greatest potential for replication and 
     dissemination.
       ``(3) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall ensure an equitable 
     geographic distribution among the regions of the United 
     States and among local educational agencies located in urban, 
     rural, and suburban areas.
       ``(4) Duration.--A grant under this section shall be 
     awarded for a period not to exceed 3 years.
       ``(5) Maximum grant.--A grant awarded under this section 
     shall not exceed $400,000 for any fiscal year.
       ``(6) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, or local funds used for providing 
     school-based counseling and mental health services to 
     students.
       ``(b) Applications.--
       ``(1) In general.--Each local educational agency desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       ``(2) Contents.--Each application for a grant under this 
     section shall--
       ``(A) describe the school population to be targeted by the 
     program, the particular counseling needs of such population, 
     and the current school counseling resources available for 
     meeting such needs;
       ``(B) describe the activities, services, and training to be 
     provided by the program and the specific approaches to be 
     used to meet the needs described in subparagraph (A);
       ``(C) describe the methods to be used to evaluate the 
     outcomes and effectiveness of the program;
       ``(D) describe how the local educational agency will 
     involve community groups, social service agencies, and other 
     public and private entities in collaborative efforts to 
     enhance the program and promote school-linked services 
     integration;
       ``(E) document that the local educational agency has the 
     personnel qualified to develop, implement, and administer the 
     program;
       ``(F) describe how diverse cultural populations, if 
     applicable, will be served through the program;
       ``(G) assure that the funds made available under this 
     subpart for any fiscal year will be used to supplement, and 
     not supplant, any other Federal, State, or local funds used 
     for providing school-based counseling and mental health 
     services to students; and
       ``(H) assure that the applicant will appoint an advisory 
     board composed of interested parties, including parents, 
     teachers, school administrators, counseling services 
     providers described in subsection (c)(2)(D), and community 
     leaders, to advise the local educational agency on the design 
     and implementation of the program.
       ``(c) Use of Funds.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to local educational agencies to enable the local 
     educational agencies to initiate or expand elementary school 
     or secondary school counseling programs that comply with the 
     requirements of paragraph (2).
       ``(2) Requirements.--Each program funded under this section 
     shall--
       ``(A) be comprehensive in addressing the counseling and 
     educational needs of all students;
       ``(B) use a developmental, preventive approach to 
     counseling;
       ``(C) increase the range, availability, quantity, and 
     quality of counseling services in the elementary schools and 
     secondary schools of the local educational agency;
       ``(D) expand counseling services through qualified school 
     counselors, school social workers, school psychologists, 
     other qualified psychologists, or child and adolescent 
     psychiatrists;
       ``(E) use innovative approaches to increase children's 
     understanding of peer and family relationships, work and 
     self, decisionmaking, or academic and career planning, or to 
     improve peer interaction;
       ``(F) provide counseling services in settings that meet the 
     range of student needs;
       ``(G) include in-service training appropriate to the 
     activities funded under this Act for teachers, instructional 
     staff, and appropriate school personnel, including in-service 
     training in appropriate identification and early intervention 
     techniques by school counselors, school social workers, 
     school psychologists, other qualified psychologists, and 
     child and adolescent psychiatrists;
       ``(H) involve parents of participating students in the 
     design, implementation, and evaluation of the counseling 
     program;

[[Page 25729]]

       ``(I) involve community groups, social service agencies, or 
     other public or private entities in collaborative efforts to 
     enhance the program and promote school-linked integration of 
     services;
       ``(J) evaluate annually the effectiveness and outcomes of 
     the counseling services and activities assisted under this 
     section;
       ``(K) ensure a team approach to school counseling in the 
     schools served by the local educational agency by working 
     toward ratios recommended by the American School Health 
     Association of 1 school counselor to 250 students, 1 school 
     social worker to 800 students, and 1 school psychologist to 
     1,000 students; and
       ``(L) ensure that school counselors, school psychologists, 
     other qualified psychologists, school social workers, or 
     child and adolescent psychiatrists paid from funds made 
     available under this section spend a majority of their time 
     counseling students or in other activities directly related 
     to the counseling process.
       ``(d) Limitation on Administrative Costs.--Not more than 4 
     percent of the amounts made available under this section for 
     any fiscal year may be used for administrative costs to carry 
     out this section.
       ``(e) Definitions.--For the purpose of this section--
       ``(1) the term `child and adolescent psychiatrist' means an 
     individual who--
       ``(A) possesses State medical licensure; and
       ``(B) has completed residency training programs in both 
     general psychiatry and child and adolescent psychiatry;
       ``(2) the term `other qualified psychologist' means an 
     individual who has demonstrated competence in counseling 
     children in a school setting and who--
       ``(A) is licensed in psychology by the State in which the 
     individual works; and
       ``(B) practices in the scope of the individual's education, 
     training, and experience with children in school settings;
       ``(3) the term `school counselor' means an individual who 
     has documented competence in counseling children and 
     adolescents in a school setting and who--
       ``(A) is licensed by the State or certified by an 
     independent professional regulatory authority;
       ``(B) in the absence of such State licensure or 
     certification, possesses national certification in school 
     counseling or a specialty of counseling granted by an 
     independent professional organization; or
       ``(C) holds a minimum of a master's degree in school 
     counseling from a program accredited by the Council for 
     Accreditation of Counseling and Related Educational Programs 
     or the equivalent;
       ``(4) the term `school psychologist' means an individual 
     who--
       ``(A) has completed a minimum of 60 graduate semester hours 
     in school psychology from an institution of higher education 
     and has completed 1,200 clock hours in a supervised school 
     psychology internship, of which 600 hours are in the school 
     setting;
       ``(B) is licensed or certified in school psychology by the 
     State in which the individual works; or
       ``(C) in the absence of such State licensure or 
     certification, possesses national certification by the 
     National School Psychology Certification Board; and
       ``(5) the term `school social worker' means an individual 
     who--
       ``(A) holds a master's degree in social work from a program 
     accredited by the Council on Social Work Education; and
       ``(B)(i) is licensed or certified by the State in which 
     services are provided; or
       ``(ii) in the absence of such State licensure or 
     certification, possesses a national credential or 
     certification as a school social work specialist granted by 
     an independent professional organization.
       ``(f) Report.--Not later than 2 years after assistance is 
     made available to local educational agencies under subsection 
     (c), the Secretary shall make publicly available a report--
       ``(1) evaluating the programs assisted pursuant to each 
     grant under this subpart; and
       ``(2) outlining the information from local educational 
     agencies regarding the ratios of students to--
       ``(A) school counselors;
       ``(B) school social workers; and
       ``(C) school psychologists.
       ``(g) Special Rule.--
       ``(1) Amount equals or exceeds $40,000,000.--If the amount 
     of funds made available by the Secretary for this subpart 
     equals or exceeds $40,000,000, the Secretary shall award not 
     less than $40,000,000 in grants to local educational agencies 
     to enable the agencies to establish or expand counseling 
     programs in elementary schools.
       ``(2) Amount less than $40,000,000.--If the amount of funds 
     made available by the Secretary for this subpart is less than 
     $40,000,000, the Secretary shall award grants to local 
     educational agencies only to establish or expand counseling 
     programs in elementary schools.

            ``Subpart 3--Partnerships in Character Education

     ``SEC. 5431. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible entities for the design and implementation 
     of character education programs that--
       ``(A) are able to be integrated into classroom instruction 
     and to be consistent with State academic content standards; 
     and
       ``(B) are able to be carried out in conjunction with other 
     educational reform efforts.
       ``(2) Eligible entity.--In this section, the term `eligible 
     entity' means--
       ``(A) a State educational agency in partnership with--
       ``(i) one or more local educational agencies; or
       ``(ii) one or more--

       ``(I) local educational agencies; and
       ``(II) nonprofit organizations or entities, including an 
     institution of higher education;

       ``(B) a local educational agency or consortium of local 
     educational agencies; or
       ``(C) a local educational agency in partnership with one or 
     more nonprofit organizations or entities, including an 
     institution of higher education.
       ``(3) Duration.--Each grant under this section shall be 
     awarded for a period not to exceed 5 years, of which the 
     eligible entity may not use more than 1 year for planning and 
     program design.
       ``(4) Amount of grants for state educational agencies.--
     Subject to the availability of appropriations, the amount of 
     a grant made by the Secretary to a State educational agency 
     under this section shall not be less than $500,000 if the 
     State educational agency--
       ``(A) is in a partnership described in paragraph (2)(A); 
     and
       ``(B) meets such requirements as the Secretary may 
     establish under this section.
       ``(b) Contracts Under Program.--
       ``(1) Evaluation.--Each eligible entity awarded a grant 
     under this section may contract with outside sources, 
     including institutions of higher education and private and 
     nonprofit organizations, for the purposes of--
       ``(A) evaluating the program for which the assistance is 
     made available;
       ``(B) measuring the integration of such program into the 
     curriculum and teaching methods of schools where the program 
     is carried out; and
       ``(C) measuring the success of such program in fostering 
     the elements of character selected by the recipient under 
     subsection (c).
       ``(2) Materials and program development.--Each eligible 
     entity awarded a grant under this section may contract with 
     outside sources, including institutions of higher education 
     and private and nonprofit organizations, for assistance in--
       ``(A) developing secular curricula, materials, teacher 
     training, and other activities related to character 
     education; and
       ``(B) integrating secular character education into the 
     curricula and teaching methods of schools where the program 
     is carried out.
       ``(c) Elements of Character.--
       ``(1) Selection.--
       ``(A) In general.--Each eligible entity awarded a grant 
     under this section may select the elements of character that 
     will be taught under the program for which the grant was 
     awarded.
       ``(B) Consideration of views.--In selecting elements of 
     character under subparagraph (A), the eligible entity shall 
     consider the views of the parents of the students to be 
     taught under the program and the views of the students.
       ``(2) Example elements.--Elements of character selected 
     under this subsection may include any of the following:
       ``(A) Caring.
       ``(B) Civic virtue and citizenship.
       ``(C) Justice and fairness.
       ``(D) Respect.
       ``(E) Responsibility.
       ``(F) Trustworthiness.
       ``(G) Giving.
       ``(H) Any other elements deemed appropriate by the eligible 
     entity.
       ``(d) Use of Funds by State Educational Agency 
     Recipients.--Of the total funds received in any fiscal year 
     under this section by an eligible entity that is a State 
     educational agency--
       ``(1) not more than 3 percent of such funds may be used for 
     administrative purposes; and
       ``(2) the remainder of such funds may be used for--
       ``(A) collaborative initiatives with and between local 
     educational agencies and schools;
       ``(B) the preparation or purchase of materials, and teacher 
     training;
       ``(C) providing assistance to local educational agencies, 
     schools, or institutions of higher education; and
       ``(D) technical assistance and evaluation.
       ``(e) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require.
       ``(2) Required information.--Each application for a grant 
     under this section shall include (together with any other 
     information that the Secretary may require) information 
     that--
       ``(A) demonstrates that the program for which the grant is 
     sought has clear objectives that are based on scientifically 
     based research;
       ``(B) describes any partnerships or collaborative efforts 
     among the organizations and entities of the eligible entity;
       ``(C) describes the activities that will be carried out 
     with the grant funds and how such activities will meet the 
     objectives described in subparagraph (A), including--
       ``(i) how parents, students, students with disabilities 
     (including those with mental or physical disabilities), and 
     other members of the community, including members of private 
     and nonprofit organizations, will be involved in the design 
     and implementation of the program and how the eligible entity 
     will work with the larger community to increase the reach and 
     promise of the program;
       ``(ii) curriculum and instructional practices that will be 
     used or developed; and

[[Page 25730]]

       ``(iii) methods of teacher training and parent education 
     that will be used or developed;
       ``(D) describes how the program for which the grant is 
     sought will be linked to other efforts to improve academic 
     achievement, including--
       ``(i) broader educational reforms that are being instituted 
     by the eligible entity or its partners; and
       ``(ii) State academic content standards;
       ``(E) in the case of an eligible entity that is a State 
     educational agency, describes how the State educational 
     agency--
       ``(i) will provide technical and professional assistance to 
     its local educational agency partners in the development and 
     implementation of character education programs; and
       ``(ii) will assist other interested local educational 
     agencies that are not members of the original partnership in 
     designing and establishing character education programs;
       ``(F) describes how the eligible entity will evaluate the 
     success of its program--
       ``(i) based on the objectives described in subparagraph 
     (A); and
       ``(ii) in cooperation with any national evaluation 
     conducted pursuant to subsection (h)(2)(B)(iii); and
       ``(G) assures that the eligible entity annually will 
     provide to the Secretary such information as may be required 
     to determine the effectiveness of the program.
       ``(f) Selection of Recipients.--
       ``(1) Peer review.--
       ``(A) In general.--In selecting eligible entities to 
     receive grants under this section from among the applicants 
     for such grants, the Secretary shall use a peer review 
     process that includes the participation of experts in the 
     field of character education and development.
       ``(B) Use of funds.--The Secretary may use funds 
     appropriated under this section for the cost of carrying out 
     peer reviews under this paragraph.
       ``(2) Selection criteria.--Each selection under paragraph 
     (1) shall be made on the basis of the quality of the 
     application submitted, taking into consideration such factors 
     as--
       ``(A) the extent to which the program fosters character in 
     students and the potential for improved student academic 
     achievement;
       ``(B) the extent and ongoing nature of parental, student, 
     and community involvement;
       ``(C) the quality of the plan for measuring and assessing 
     success; and
       ``(D) the likelihood that the objectives of the program 
     will be achieved.
       ``(3) Equitable distribution.--In making selections under 
     this subsection, the Secretary shall ensure, to the extent 
     practicable under paragraph (2), that the programs assisted 
     under this section are equitably distributed among the 
     geographic regions of the United States, and among urban, 
     suburban, and rural areas.
       ``(g) Participation by Private School Children and 
     Teachers.--Each eligible entity that receives a grant under 
     this section shall provide, to the extent feasible and 
     appropriate, for the participation in programs and activities 
     under this section of students and teachers in private 
     elementary schools and secondary schools.
       ``(h) Evaluation and Program Development.--
       ``(1) State and local reporting and evaluation.--Each 
     eligible entity receiving a grant under this section shall 
     submit to the Secretary a comprehensive evaluation of the 
     program assisted under this section, including its impact on 
     students, students with disabilities (including those with 
     mental or physical disabilities), teachers, administrators, 
     parents, and others--
       ``(A) by the end of the second year of the program; and
       ``(B) not later than 1 year after completion of the grant 
     period.
       ``(2) National research, dissemination, and evaluation.--
       ``(A) In general.--
       ``(i) Authorization.--The Secretary is authorized to award 
     grants to, or enter into contracts or cooperative agreements 
     with, State educational agencies or local educational 
     agencies, institutions of higher education, tribal 
     organizations, or other public or private agencies or 
     organizations to carry out research, development, 
     dissemination, technical assistance, and evaluation 
     activities that support or inform State and local character 
     education programs.
       ``(ii) Reservation of funds.--The Secretary shall reserve 
     not more than 5 percent of the funds made available under 
     this section to carry out this paragraph.
       ``(B) Uses.--Funds made available under subparagraph (A) 
     may be used for the following:
       ``(i) Conducting research and development activities that 
     focus on matters such as--

       ``(I) the extent to which schools are undertaking character 
     education initiatives;
       ``(II) the effectiveness of instructional models for all 
     students, including students with disabilities (including 
     those with mental or physical disabilities);
       ``(III) materials and curricula for use by programs in 
     character education;
       ``(IV) models of professional development in character 
     education;
       ``(V) the development of measures of effectiveness for 
     character education programs (which may include the factors 
     described in paragraph (3)); and
       ``(VI) the effectiveness of State and local programs 
     receiving funds under this section.

       ``(ii) Providing technical assistance to State and local 
     programs, particularly on matters of program evaluation.
       ``(iii) Conducting evaluations of State and local programs 
     receiving funding under this section, that may be conducted 
     through a national clearinghouse under clause (iv).
       ``(iv) Compiling and disseminating, through a national 
     clearinghouse or other means--

       ``(I) information on model character education programs;
       ``(II) information about high quality character education 
     materials and curricula;
       ``(III) research findings in the area of character 
     education and character development; and
       ``(IV) any other information that will be useful to 
     character education program participants nationwide, 
     including educators, parents, and administrators.

       ``(C) Partnerships.--In carrying out national activities 
     under this paragraph, the Secretary may enter into 
     partnerships with national nonprofit character education 
     organizations and institutions of higher education with 
     expertise and successful experience in implementing--
       ``(i) character education programs that had an effective 
     impact on schools, students, students with disabilities 
     (including those with mental or physical disabilities), and 
     teachers; or
       ``(ii) character education program evaluation and research.
       ``(D) Partnership for activities under subparagraph 
     (B)(iv).--In carrying out national activities under 
     subparagraph (B)(iv), the Secretary may enter into a 
     partnership with a national nonprofit character education 
     organization that will disseminate information to educators, 
     parents, administrators, and others nationwide, including 
     information about the range of model character education 
     programs, materials, and curricula.
       ``(E) Report.--Each entity awarded a grant or entering into 
     a contract or cooperative agreement under this paragraph 
     shall submit an annual report to the Secretary that--
       ``(i) describes the entity's progress in carrying out 
     research, development, dissemination, evaluation, and 
     technical assistance under this paragraph;
       ``(ii) identifies unmet and future information needs in the 
     field of character education; and
       ``(iii) if applicable, describes the progress of the entity 
     in carrying out the requirements of subparagraph (B)(iv), 
     including a listing of--

       ``(I) the number of requests for information received by 
     the entity in the course of carrying out such requirements;
       ``(II) the types of organizations making such requests; and
       ``(III) the types of information requested.

       ``(3) Factors.--Factors that may be considered in 
     evaluating the success of programs funded under this section 
     include the following:
       ``(A) Discipline issues.
       ``(B) Student academic achievement.
       ``(C) Participation in extracurricular activities.
       ``(D) Parental and community involvement.
       ``(E) Faculty and administration involvement.
       ``(F) Student and staff morale.
       ``(G) Overall improvements in school climate for all 
     students, including students with disabilities (including 
     those with mental or physical disabilities).
       ``(i) Permissive Match.--
       ``(1) In general.--The Secretary may require eligible 
     entities to match funds awarded under this section with non-
     Federal funds, except that the amount of the match may not 
     exceed the amount of the grant award.
       ``(2) Sliding scale.--The amount of a match under paragraph 
     (1) shall be established based on a sliding scale that takes 
     into account--
       ``(A) the poverty of the population to be targeted by the 
     eligible entity; and
       ``(B) the ability of the eligible entity to obtain funding 
     for the match.
       ``(3) In-kind contributions.--The Secretary shall permit 
     eligible entities to match funds in whole or in part with in-
     kind contributions.
       ``(4) Consideration.--Notwithstanding this subsection, the 
     Secretary in making awards under this section shall not 
     consider the ability of an eligible entity to match funds.

               ``Subpart 4--Smaller Learning Communities

     ``SEC. 5441. SMALLER LEARNING COMMUNITIES.

       ``(a) Grant Authority.--The Secretary is authorized to 
     award grants to local educational agencies to enable the 
     agencies to create a smaller learning community or 
     communities.
       ``(b) Application.--Each local educational agency desiring 
     a grant under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. The 
     application shall include descriptions of the following:
       ``(1) Strategies and methods the local educational agency 
     will use to create the smaller learning community or 
     communities.
       ``(2) Curriculum and instructional practices, including any 
     particular themes or emphases, to be used in the smaller 
     learning environment.
       ``(3) The extent of involvement of teachers and other 
     school personnel in investigating, designing, implementing, 
     and sustaining the smaller learning community or communities.
       ``(4) The process to be used for involving students, 
     parents, and other stakeholders in the development and 
     implementation of the smaller learning community or 
     communities.
       ``(5) Any cooperation or collaboration among community 
     agencies, organizations, businesses, and others to develop or 
     implement a plan to create the smaller learning community or 
     communities.
       ``(6) The training and professional development activities 
     that will be offered to teachers and others involved in the 
     activities assisted under this subpart.
       ``(7) The objectives of the activities assisted under this 
     subpart, including a description of

[[Page 25731]]

     how such activities will better enable all students to reach 
     challenging State academic content standards and State 
     student academic achievement standards.
       ``(8) The methods by which the local educational agency 
     will assess progress in meeting the objectives described in 
     paragraph (7).
       ``(9) If the smaller learning community or communities 
     exist as a school-within-a-school, the relationship, 
     including governance and administration, of the smaller 
     learning community to the remainder of the school.
       ``(10) The administrative and managerial relationship 
     between the local educational agency and the smaller learning 
     community or communities, including how such agency will 
     demonstrate a commitment to the continuity of the smaller 
     learning community or communities (including the continuity 
     of student and teacher assignment to a particular learning 
     community).
       ``(11) How the local educational agency will coordinate or 
     use funds provided under this subpart with other funds 
     provided under this Act or other Federal laws.
       ``(12) The grade levels or ages of students who will 
     participate in the smaller learning community or communities.
       ``(13) The method of placing students in the smaller 
     learning community or communities, such that students are not 
     placed according to ability or any other measure, but are 
     placed at random or by their own choice, and not pursuant to 
     testing or other judgments.
       ``(c) Authorized Activities.--Funds under this section may 
     be used for one or more of the following:
       ``(1) To study--
       ``(A) the feasibility of creating the smaller learning 
     community or communities; and
       ``(B) effective and innovative organizational and 
     instructional strategies that will be used in the smaller 
     learning community or communities.
       ``(2) To research, develop, and implement--
       ``(A) strategies for creating the smaller learning 
     community or communities; and
       ``(B) strategies for effective and innovative changes in 
     curriculum and instruction, geared to challenging State 
     academic content standards and State student academic 
     achievement standards.
       ``(3) To provide professional development for school staff 
     in innovative teaching methods that--
       ``(A) challenge and engage students; and
       ``(B) will be used in the smaller learning community or 
     communities.
       ``(4) To develop and implement strategies to include 
     parents, business representatives, local institutions of 
     higher education, community-based organizations, and other 
     community members in the smaller learning communities as 
     facilitators of activities that enable teachers to 
     participate in professional development activities and 
     provide links between students and their community.

  ``Subpart 5--Reading is Fundamental--Inexpensive Book Distribution 
                                Program

     ``SEC. 5451. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR 
                   READING MOTIVATION.

       ``(a) Purpose.--The purpose of this subpart is to establish 
     and implement a model partnership between a governmental 
     entity and a private entity, to help prepare young children 
     for reading and to motivate older children to read, through 
     the distribution of inexpensive books. Local reading 
     motivation programs assisted under this section shall use 
     such assistance to provide books, training for volunteers, 
     motivational activities, and other essential literacy 
     resources and shall assign the highest priority to serving 
     the youngest and neediest children in the United States.
       ``(b) Authorization.--The Secretary is authorized to enter 
     into a contract with Reading Is Fundamental (RIF) (hereafter 
     in this section referred to as the `contractor') to support 
     and promote programs, which include the distribution of 
     inexpensive books to young and school-age children, that 
     motivate children to read.
       ``(c) Requirements of Contract.--Any contract entered into 
     under subsection (b) shall contain each of the following:
       ``(1) A provision that the contractor will enter into 
     subcontracts with local private nonprofit groups or 
     organizations, or with public agencies, under which each 
     subcontractor will agree to establish, operate, and provide 
     the non-Federal share of the cost of reading motivation 
     programs that include the distribution of books, by gift (to 
     the extent feasible) or by loan, to children from birth 
     through secondary school age, including children in family 
     literacy programs.
       ``(2) A provision that funds made available to 
     subcontractors will be used only to pay the Federal share of 
     the cost of such programs.
       ``(3) A provision that, in selecting subcontractors for 
     initial funding, the contractor will give priority to 
     programs that will serve a substantial number or percentage 
     of children with special needs, such as the following:
       ``(A) Low-income children, particularly in high-poverty 
     areas.
       ``(B) Children at risk of school failure.
       ``(C) Children with disabilities.
       ``(D) Foster children.
       ``(E) Homeless children.
       ``(F) Migrant children.
       ``(G) Children without access to libraries.
       ``(H) Institutionalized or incarcerated children.
       ``(I) Children whose parents are institutionalized or 
     incarcerated.
       ``(4) A provision that the contractor will provide such 
     training and technical assistance to subcontractors as may be 
     necessary to carry out the purpose of this subpart.
       ``(5) A provision that the contractor will annually report 
     to the Secretary the number, and a description, of programs 
     funded under paragraph (3).
       ``(6) Such other terms and conditions as the Secretary 
     determines to be appropriate to ensure the effectiveness of 
     such programs.
       ``(d) Restriction on Payments.--The Secretary shall make no 
     payment of the Federal share of the cost of acquiring and 
     distributing books under any contract under this section 
     unless the Secretary determines that the contractor or 
     subcontractor, as the case may be, has made arrangements with 
     book publishers or distributors to obtain books at discounts 
     at least as favorable as discounts that are customarily given 
     by such publisher or distributor for book purchases made 
     under similar circumstances in the absence of Federal 
     assistance.
       ``(e) Special Rules for Certain Subcontractors.--
       ``(1) Funds from other federal sources.--Subcontractors 
     operating programs under this section in low-income 
     communities with a substantial number or percentage of 
     children with special needs, as described in subsection 
     (c)(3), may use funds from other Federal sources to pay the 
     non-Federal share of the cost of the program, if those funds 
     do not comprise more than 50 percent of the non-Federal share 
     of the funds used for the cost of acquiring and distributing 
     books.
       ``(2) Waiver authority.--Notwithstanding subsection (c), 
     the contractor may waive, in whole or in part, the 
     requirement in subsection (c)(1) for a subcontractor, if the 
     subcontractor demonstrates that it would otherwise not be 
     able to participate in the program, and enters into an 
     agreement with the contractor with respect to the amount of 
     the non-Federal share to which the waiver will apply. In a 
     case in which such a waiver is granted, the requirement in 
     subsection (c)(2) shall not apply.


       ``(f) Multi-Year Contracts.--The contractor may enter into 
     a multi-year subcontract under this section, if--
       ``(1) the contractor believes that such subcontract will 
     provide the subcontractor with additional leverage in seeking 
     local commitments; and
       ``(2) the subcontract does not undermine the finances of 
     the national program.
       ``(g) Federal Share Defined.--In this section, the term 
     `Federal share' means, with respect to the cost to a 
     subcontractor of purchasing books to be paid for under this 
     section, 75 percent of such costs to the subcontractor, 
     except that the Federal share for programs serving children 
     of migrant or seasonal farmworkers shall be 100 percent of 
     such costs to the subcontractor.

               ``Subpart 6--Gifted and Talented Students

     ``SEC. 5461. SHORT TITLE.

       ``This subpart may be cited as the `Jacob K. Javits Gifted 
     and Talented Students Education Act of 2001'.

     ``SEC. 5462. PURPOSE.

       ``The purpose of this subpart is to initiate a coordinated 
     program of scientifically based research, demonstration 
     projects, innovative strategies, and similar activities 
     designed to build and enhance the ability of elementary 
     schools and secondary schools nationwide to meet the special 
     educational needs of gifted and talented students.

     ``SEC. 5463. RULE OF CONSTRUCTION.

       Nothing in this subpart shall be construed to prohibit a 
     recipient of funds under this subpart from serving gifted and 
     talented students simultaneously with students with similar 
     educational needs, in the same educational settings, where 
     appropriate.

     ``SEC. 5464. AUTHORIZED PROGRAMS.

       ``(a) Establishment of Program.--
       ``(1) In general.--The Secretary (after consultation with 
     experts in the field of the education of gifted and talented 
     students) is authorized to make grants to, or enter into 
     contracts with, State educational agencies, local educational 
     agencies, institutions of higher education, other public 
     agencies, and other private agencies and organizations 
     (including Indian tribes and Indian organizations (as such 
     terms are defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)) 
     and Native Hawaiian organizations) to assist such agencies, 
     institutions, and organizations in carrying out programs or 
     projects authorized by this subpart that are designed to meet 
     the educational needs of gifted and talented students, 
     including the training of personnel in the education of 
     gifted and talented students and in the use, where 
     appropriate, of gifted and talented services, materials, and 
     methods for all students.
       ``(2) Application.--Each entity seeking assistance under 
     this subpart shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require. Each such application 
     shall describe how--
       ``(A) the proposed gifted and talented services, materials, 
     and methods can be adapted, if appropriate, for use by all 
     students; and
       ``(B) the proposed programs can be evaluated.
       ``(b) Use of Funds.--Programs and projects assisted under 
     this section may include each of the following:
       ``(1) Conducting--
       ``(A) scientifically based research on methods and 
     techniques for identifying and teaching gifted and talented 
     students and for using gifted and talented programs and 
     methods to serve all students; and

[[Page 25732]]

       ``(B) program evaluations, surveys, and the collection, 
     analysis, and development of information needed to accomplish 
     the purpose of this subpart.
       ``(2) Carrying out professional development (including 
     fellowships) for personnel (including leadership personnel) 
     involved in the education of gifted and talented students.
       ``(3) Establishing and operating model projects and 
     exemplary programs for serving gifted and talented students, 
     including innovative methods for identifying and educating 
     students who may not be served by traditional gifted and 
     talented programs (such as summer programs, mentoring 
     programs, service learning programs, and cooperative programs 
     involving business, industry, and education).
       ``(4) Implementing innovative strategies, such as 
     cooperative learning, peer tutoring, and service learning.
       ``(5) Carrying out programs of technical assistance and 
     information dissemination, including assistance and 
     information with respect to how gifted and talented programs 
     and methods, where appropriate, may be adapted for use by all 
     students.
       ``(6) Making materials and services available through State 
     regional educational service centers, institutions of higher 
     education, or other entities.
       ``(7) Providing funds for challenging, high-level course 
     work, disseminated through technologies (including distance 
     learning), for individual students or groups of students in 
     schools and local educational agencies that would not 
     otherwise have the resources to provide such course work.
       ``(c) Special Rule.--To the extent that funds appropriated 
     to carry out this subpart for a fiscal year beginning with 
     fiscal year 2002 exceed such funds appropriated for fiscal 
     year 2001, the Secretary shall use such excess funds to award 
     grants, on a competitive basis, to State educational 
     agencies, local educational agencies, or both, to implement 
     activities described in subsection (b).
       ``(d) Center for Research and Development.--
       ``(1) In General.--The Secretary (after consultation with 
     experts in the field of the education of gifted and talented 
     students) shall establish a National Research Center for the 
     Education of Gifted and Talented Children and Youth through 
     grants to, or contracts with, one or more institutions of 
     higher education or State educational agencies, or a 
     combination or consortium of such institutions and agencies 
     and other public or private agencies and organizations, for 
     the purpose of carrying out activities described in 
     subsection (b).
       ``(2) Director.--The National Center shall be headed by a 
     Director. The Secretary may authorize the Director to carry 
     out such functions of the National Center as may be agreed 
     upon through arrangements with institutions of higher 
     education, State educational agencies, local educational 
     agencies, or other public or private agencies and 
     organizations.
       ``(3) Funding.--The Secretary may use not more than 30 
     percent of the funds made available under this subpart for 
     fiscal year 2001 to carry out this subsection.
       ``(e) Coordination.--Scientifically based research 
     activities supported under this subpart--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by such Office; and
       ``(2) may include collaborative scientifically based 
     research activities which are jointly funded and carried out 
     with such Office.

     ``SEC. 5465. PROGRAM PRIORITIES.

       ``(a) General Priority.--In carrying out this subpart, the 
     Secretary shall give highest priority to programs and 
     projects designed to develop new information that--
       ``(1) improves the capability of schools to plan, conduct, 
     and improve programs to identify and serve gifted and 
     talented students; and
       ``(2) assists schools in the identification of, and 
     provision of services to, gifted and talented students 
     (including economically disadvantaged individuals, 
     individuals with limited English proficiency, and individuals 
     with disabilities) who may not be identified and served 
     through traditional assessment methods.
       ``(b) Service Priority.--The Secretary shall ensure that 
     not less than 50 percent of the applications approved under 
     section 5464(a)(2) in a fiscal year address the priority 
     described in subsection (a)(2).

     ``SEC. 5466. GENERAL PROVISIONS.

       ``(a) Participation of Private School Children and 
     Teachers.--In making grants and entering into contracts under 
     this subpart, the Secretary shall ensure, where appropriate, 
     that provision is made for the equitable participation of 
     students and teachers in private nonprofit elementary schools 
     and secondary schools, including the participation of 
     teachers and other personnel in professional development 
     programs serving such students.
       ``(b) Review, Dissemination, and Evaluation.--The Secretary 
     shall--
       ``(1) use a peer review process in reviewing applications 
     under this subpart;
       ``(2) ensure that information on the activities and results 
     of programs and projects funded under this subpart is 
     disseminated to appropriate State educational agencies, local 
     educational agencies, and other appropriate organizations, 
     including nonprofit private organizations; and
       ``(3) evaluate the effectiveness of programs under this 
     subpart in accordance with section 9601, in terms of the 
     impact on students traditionally served in separate gifted 
     and talented programs and on other students, and submit the 
     results of such evaluation to Congress not later than 2 years 
     after the date of enactment of the No Child Left Behind Act 
     of 2001.
       ``(c) Program Operations.--The Secretary shall ensure that 
     the programs under this subpart are administered within the 
     Department by a person who has recognized professional 
     qualifications and experience in the field of the education 
     of gifted and talented students and who shall--
       ``(1) administer and coordinate the programs authorized 
     under this subpart;
       ``(2) serve as a focal point of national leadership and 
     information on the educational needs of gifted and talented 
     students and the availability of educational services and 
     programs designed to meet such needs;
       ``(3) assist the Assistant Secretary for Educational 
     Research and Improvement in identifying research priorities 
     that reflect the needs of gifted and talented students; and
       ``(4) shall disseminate, and consult on, the information 
     developed under this subpart with other offices within the 
     Department.

                   ``Subpart 7--Star Schools Program

     ``SEC. 5471. SHORT TITLE.

       ``This subpart may be cited as the `Star Schools Act'.

     ``SEC. 5472. PURPOSES.

       ``The purposes of this subpart are the following:
       ``(1) To encourage improved instruction in mathematics, 
     science, and foreign languages as well as other subjects 
     (such as literacy skills and vocational education).
       ``(2) To serve underserved populations, including 
     disadvantaged, illiterate, limited English proficient 
     populations, and individuals with disabilities through a Star 
     Schools program under which grants are made to eligible 
     telecommunication partnerships to enable such partnerships--
       ``(A) to develop, construct, acquire, maintain, and operate 
     telecommunications audio and visual facilities and equipment;
       ``(B) to develop and acquire educational and instructional 
     programming; and
       ``(C) to obtain technical assistance for the use of such 
     facilities and instructional programming.

     ``SEC. 5473. GRANT PROGRAM AUTHORIZED.

       ``(a) Authorization.--The Secretary, in conjunction with 
     the Office of Educational Technology, is authorized to make 
     grants, in accordance with the provisions of this subpart, to 
     eligible entities to pay the Federal share of the cost of the 
     following:
       ``(1) Development, construction, acquisition, maintenance, 
     and operation of telecommunications facilities and equipment.
       ``(2) Development and acquisition of live, interactive 
     instructional programming.
       ``(3) Development and acquisition of preservice and 
     inservice teacher training programs based on established 
     research regarding teacher-to-teacher mentoring, and ongoing, 
     in-class instruction.
       ``(4) Establishment of teleconferencing facilities and 
     resources for making interactive training available to 
     teachers.
       ``(5) Obtaining technical assistance.
       ``(6) Coordination of the design and connectivity of 
     telecommunications networks to reach the greatest number of 
     schools.
       ``(b) Duration and Amount.--
       ``(1) In general.--A grant under this section may not 
     exceed--
       ``(A) 5 years in duration (subject to subsection (c)); and
       ``(B) $10,000,000 in any single fiscal year.
       ``(c) Renewal.--
       ``(1) In general.--Grants awarded under subsection (a) may 
     be renewed for a single additional period of 3 years.
       ``(2) Continuing Eligibility.--In order to be eligible to 
     receive a grant renewal under this subsection, a grant 
     recipient shall demonstrate, to the satisfaction of the 
     Secretary, in an addendum to its application submitted under 
     section 5474, that the grant recipient will--
       ``(A) continue to provide services in the subject areas and 
     geographic areas assisted with funds received under this 
     subpart for the previous grant period; and
       ``(B) use all grant funds received under this subpart for 
     the 3 year renewal period to provide expanded services by--
       ``(i) increasing the number of students, schools, or school 
     districts served by the courses of instruction assisted under 
     this part in the previous fiscal year;
       ``(ii) providing new courses of instruction; and
       ``(iii) serving new populations of underserved individuals, 
     such as children or adults who are disadvantaged, have 
     limited English proficiency, are individuals with 
     disabilities, are illiterate, or lack secondary school 
     diplomas or their recognized equivalent.
       ``(3) Supplement, not supplant.--Grant funds received under 
     this subsection shall be used to supplement, and not 
     supplant, services

[[Page 25733]]

     provided by the grant recipient under this subpart in the 
     previous fiscal year.
       ``(d) Reservations.--
       ``(1) Instructional programming.--At least 25 percent of 
     the funds made available to the Secretary for any fiscal year 
     under this subpart shall be used for the cost of 
     instructional programming.
       ``(2) Local educational agency assistance.--At least 50 
     percent of the funds available in any fiscal year under this 
     subpart shall be used for the cost of facilities, equipment, 
     teacher training or retraining, technical assistance, or 
     programming, for local educational agencies that are eligible 
     to receive assistance under part A of title I.
       ``(e) Federal Share.--
       ``(1) Amount.--The Federal share of the cost of projects 
     funded under this section shall not exceed the following 
     amounts:
       ``(A) 75 percent for the first and second years for which 
     an eligible telecommunications partnership receives a grant 
     under this subpart.
       ``(B) 60 percent for the third and fourth such years.
       ``(C) 50 percent for the fifth such year.
       ``(2) Reduction or waiver.--The Secretary may reduce or 
     waive the corresponding non-Federal share under paragraph (1) 
     upon a showing of financial hardship.
       ``(f) Required local educational agency participation.--The 
     Secretary is authorized to make a grant under this section to 
     any eligible entity, if at least one local educational agency 
     is participating in the proposed program.
       ``(g) Assistance Obtaining Satellite Time.--The Secretary 
     may assist recipients of grants made under this section in 
     acquiring satellite time, where appropriate, as economically 
     as possible.

     ``SEC. 5474. APPLICATIONS.

       ``(a) Submission.--Each eligible entity that desires to 
     receive a grant under section 5473 shall submit an 
     application to the Secretary, at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require.
       ``(b) Contents.--An application submitted under subsection 
     (a) shall include each of the following:
       ``(1) A description of how the proposed program will assist 
     all students to have an opportunity to meet challenging State 
     academic achievement standards, how such program will assist 
     State and local educational reform efforts, and how such 
     program will contribute to creating a high-quality system of 
     educational development.
       ``(2) A description of the telecommunications facilities 
     and equipment and technical assistance for which assistance 
     is sought, which may include--
       ``(A) the design, development, construction, acquisition, 
     maintenance, and operation of State or multistate educational 
     telecommunications networks and technology resource centers;
       ``(B) microwave, fiber optics, cable, and satellite 
     transmission equipment or any combination thereof;
       ``(C) reception facilities;
       ``(D) satellite time;
       ``(E) production facilities;
       ``(F) other telecommunications equipment capable of serving 
     a wide geographic area;
       ``(G) the provision of training services to instructors who 
     will be using the facilities and equipment for which 
     assistance is sought, including training in using such 
     facilities and equipment and training in integrating programs 
     into the classroom curriculum; and
       ``(H) the development of educational and related 
     programming for use on a telecommunications network.
       ``(3) In the case of an application for assistance for 
     instructional programming, a description of the types of 
     programming that will be developed to enhance instruction and 
     training and provide an assurance that such programming will 
     be designed in consultation with professionals (including 
     classroom teachers) who are experts in the applicable subject 
     matter and grade level.
       ``(4) A description of how the eligible entity has engaged 
     in sufficient survey and analysis of the area to be served to 
     ensure that the services offered by the eligible entity will 
     increase the availability of courses of instruction in 
     English, mathematics, science, foreign languages, arts, 
     history, geography, or other disciplines.
       ``(5) A description of the professional development 
     policies for teachers and other school personnel to be 
     implemented to ensure the effective use of the 
     telecommunications facilities and equipment for which 
     assistance is sought.
       ``(6) A description of the manner in which historically 
     underserved students (such as students from low-income 
     families, limited English proficient students, students with 
     disabilities, or students who have low literacy skills) and 
     their families, will participate in the benefits of the 
     telecommunications facilities, equipment, technical 
     assistance, and programming assisted under this subpart.
       ``(7) A description of how existing telecommunications 
     equipment, facilities, and services, where available, will be 
     used.
       ``(8) An assurance that the financial interest of the 
     United States in the telecommunications facilities and 
     equipment will be protected for the useful life of such 
     facilities and equipment.
       ``(9) An assurance that a significant portion of any 
     facilities and equipment, technical assistance, and 
     programming for which assistance is sought for elementary 
     schools and secondary schools will be made available to 
     schools or local educational agencies that have a high number 
     or percentage of children eligible to be counted under part A 
     of title I.
       ``(10) An assurance that the applicant will use the funds 
     provided under this subpart to supplement, and not supplant, 
     funds available for the purposes of this subpart.
       ``(11) A description of how funds received under this 
     subpart will be coordinated with funds received for 
     educational technology in the classroom.
       ``(12) A description of the activities or services for 
     which assistance is sought, such as--
       ``(A) providing facilities, equipment, training services, 
     and technical assistance;
       ``(B) making programs accessible to students with 
     disabilities through mechanisms such as closed captioning and 
     descriptive video services;
       ``(C) linking networks around issues of national importance 
     (such as elections) or to provide information about 
     employment opportunities, job training, or student and other 
     social service programs;
       ``(D) sharing curriculum resources between networks and 
     development of program guides which demonstrate cooperative, 
     cross-network listing of programs for specific curriculum 
     areas;
       ``(E) providing teacher and student support services, 
     including classroom and training support materials which 
     permit student and teacher involvement in the live 
     interactive distance learning telecasts;
       ``(F) incorporating community resources, such as libraries 
     and museums, into instructional programs;
       ``(G) providing professional development for teachers, 
     including, as appropriate, training to early childhood 
     development and Head Start teachers and staff and vocational 
     education teachers and staff, and adult and family educators;
       ``(H) providing programs for adults to maximize the use of 
     telecommunications facilities and equipment;
       ``(I) providing teacher training on proposed or established 
     models of exemplary academic content standards in mathematics 
     and science and other disciplines as such standards are 
     developed; and
       ``(J) providing parent education programs during and after 
     the regular school day which reinforce a student's course of 
     study and actively involve parents in the learning process.
       ``(13) A description of how the proposed program as a whole 
     will be financed and how arrangements for future financing 
     will be developed before the program expires.
       ``(14) An assurance that a significant portion of any 
     facilities, equipment, technical assistance, and programming 
     for which assistance is sought for elementary schools and 
     secondary schools will be made available to schools in local 
     educational agencies that have a high percentage of children 
     counted for the purpose of part A of title I.
       ``(15) An assurance that the applicant will provide such 
     information and cooperate in any evaluation that the 
     Secretary may conduct under this subpart.
       ``(16) Such additional assurances as the Secretary may 
     reasonably require.
       ``(c) Approval.--In approving applications submitted under 
     subsection (a) for grants under section 5473, the Secretary 
     shall--
       ``(1) to the extent feasible, ensure an equitable 
     geographic distribution of services provided under this 
     subpart.
       ``(2) give priority to applications describing programs 
     that--
       ``(A) propose high-quality plans, will provide instruction 
     consistent with State academic content standards, or will 
     otherwise provide significant and specific assistance to 
     States and local educational agencies undertaking systemic 
     education reform;
       ``(B) will provide services to programs serving adults, 
     especially parents, with low levels of literacy;
       ``(C) will serve schools with significant numbers of 
     children counted for the purposes of part A of title I;
       ``(D) ensure that the eligible entity will--
       ``(i) serve the broadest range of institutions, programs 
     providing instruction outside of the school setting, programs 
     serving adults, especially parents, with low levels of 
     literacy, institutions of higher education, teacher training 
     centers, research institutes, and private industry;
       ``(ii) have substantial academic and teaching capabilities, 
     including the capability of training, retraining, and 
     inservice upgrading of teaching skills and the capability to 
     provide professional development;
       ``(iii) provide a comprehensive range of courses for 
     educators to teach instructional strategies for students with 
     different skill levels;
       ``(iv) provide training to participating educators in ways 
     to integrate telecommunications courses into existing school 
     curriculum;
       ``(v) provide instruction for students, teachers, and 
     parents;
       ``(vi) serve a multistate area; and
       ``(vii) give priority to the provision of equipment and 
     linkages to isolated areas; and
       ``(E) involve a telecommunications entity (such as a 
     satellite, cable, telephone, computer, or public or private 
     television stations) participating in the eligible entity and 
     donating equipment or in-kind services for telecommunications 
     linkages.

     ``SEC. 5475. OTHER GRANT ASSISTANCE.

       ``(a) Special Statewide Network.--
       ``(1) In general.--The Secretary, in conjunction with the 
     Office of Educational Technology, may provide assistance to a 
     statewide telecommunications network if such network--
       ``(A) provides 2-way full-motion interactive video and 
     audio communications;

[[Page 25734]]

       ``(B) links together public colleges and universities and 
     secondary schools throughout the State; and
       ``(C) meets any other requirements determined appropriate 
     by the Secretary.
       ``(2) Matching contribution.--A statewide 
     telecommunications network assisted under paragraph (1) shall 
     contribute, either directly or through private contributions, 
     non-Federal funds equal to not less than 50 percent of the 
     cost of such network.
       ``(b) Special Local Network.--
       ``(1) In general.--The Secretary is authorized to provide 
     assistance, on a competitive basis, to a local educational 
     agency, or a consortium of such agencies, to enable such 
     agency or consortium to establish a high-technology 
     demonstration program.
       ``(2) Program requirements.--A high-technology 
     demonstration program assisted under paragraph (1) shall--
       ``(A) include 2-way full-motion interactive video, audio, 
     and text communications;
       ``(B) link together elementary schools and secondary 
     schools, colleges, and universities;
       ``(C) provide parent participation and family programs;
       ``(D) include a staff development program; and
       ``(E) have a significant contribution and participation 
     from business and industry.
       ``(3) Matching requirement.--A local educational agency or 
     consortium receiving a grant under paragraph (1) shall 
     provide, either directly or through private contributions, 
     non-Federal matching funds equal to not less than 50 percent 
     of the amount of the grant.
       ``(c) Telecommunications Programs for Continuing 
     Education.--
       ``(1) Authority.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible entities to 
     develop and operate one or more programs that provide online 
     access to educational resources in support of continuing 
     education and curriculum requirements relevant to achieving a 
     secondary school diploma or its recognized equivalent. The 
     program authorized by this subsection shall be designed to 
     advance adult literacy, secondary school completion, and the 
     acquisition of specified competency by the end of the 12th 
     grade.
       ``(2) Applications.--Each eligible entity desiring a grant 
     under this subsection shall submit an application to the 
     Secretary. The application shall include each of the 
     following:
       ``(A) A demonstration that the applicant will use publicly 
     funded or free public telecommunications infrastructure to 
     deliver video, voice, and data in an integrated service to 
     support and assist in the acquisition of a secondary school 
     diploma or its recognized equivalent.
       ``(B) An assurance that the content of the materials to be 
     delivered is consistent with the accreditation requirements 
     of the State for which such materials are used.
       ``(C) To the extent feasible, materials developed in the 
     Federal departments and agencies and under appropriate 
     federally funded programs.
       ``(D) An assurance that the applicant has the technological 
     and substantive experience to carry out the program.
       ``(E) Such additional assurances as the Secretary may 
     reasonably require.

     ``SEC. 5476. ADMINISTRATIVE PROVISIONS.

       ``(a) Leadership, Evaluation, and Peer Review.--
       ``(1) Reservation of funds.--The Secretary may reserve not 
     more than 5 percent of the amount made available to carry out 
     this subpart for a fiscal year for national leadership, 
     evaluation, and peer review activities, which the Secretary 
     may carry out directly or through grants, contracts, and 
     cooperative agreements.
       ``(2) Leadership.--Funds reserved for leadership activities 
     under paragraph (1) may be used for--
       ``(A) disseminating information, including lists and 
     descriptions of services available from grant recipients 
     under this subpart; and
       ``(B) other activities designed to enhance the quality of 
     distance learning activities nationwide.
       ``(3) Evaluation.--Funds reserved for evaluation activities 
     under paragraph (1) may be used to conduct independent 
     evaluations of the activities assisted under this subpart and 
     of distance learning in general, including--
       ``(A) analyses of distance learning efforts (including such 
     efforts that are, or are not, assisted under this subpart); 
     and
       ``(B) comparisons of the effects (including student 
     outcomes) of different technologies in distance learning 
     efforts.
       ``(4) Peer review.--Funds reserved for peer review 
     activities under paragraph (1) may be used for peer review 
     of--
       ``(A) applications for grants under this subpart; and
       ``(B) activities assisted under this subpart.
       ``(b) Coordination.--The Department, the National Science 
     Foundation, the Department of Agriculture, the Department of 
     Commerce, and any other Federal department or agency 
     operating a telecommunications network for educational 
     purposes, shall coordinate the activities assisted under this 
     subpart with the activities of such department or agency 
     relating to a telecommunications network for educational 
     purposes.
       ``(c) Funds From Other Agencies.--The Secretary may accept 
     funds from other Federal departments or agencies to carry out 
     the purposes of this subpart, including funds for the 
     purchase of equipment.
       ``(d) Availability of Funds.--Funds made available to carry 
     out this subpart shall remain available until expended.
       ``(e) Closed Captioning and Descriptive Video.--The 
     Secretary shall encourage each entity receiving funds under 
     this subpart to provide--
       ``(1) closed captioning of the verbal content of the 
     entity's programming, as appropriate; and
       ``(2) descriptive video of the visual content of the 
     entity's programming, as appropriate.

     ``SEC. 5477. DEFINITIONS.

       ``In this subpart:
       ``(1) Educational institution.--The term `educational 
     institution' means an institution of higher education, a 
     local educational agency, or a State educational agency.
       ``(2) Eligible entity.--The term `eligible entity' includes 
     any of the following that is organized on a Statewide or 
     multistate basis:
       ``(A) A public agency or corporation established for the 
     purpose of developing and operating telecommunications 
     networks to enhance educational opportunities provided by 
     educational institutions, teacher training centers, and other 
     entities, except that any such agency or corporation shall 
     represent the interests of elementary schools and secondary 
     schools that are eligible to participate in the program under 
     part A of title I.
       ``(B) A partnership that will provide telecommunications 
     services and that includes three or more of the following 
     entities, at least one of which shall be an agency described 
     in clause (i) or (ii):
       ``(i) A local educational agency that serves a significant 
     number of elementary schools and secondary schools that are 
     eligible for assistance under part A of title I, or 
     elementary schools and secondary schools operated or funded 
     for Indian children by the Department of the Interior 
     eligible under section 1121(d)(1)(A).
       ``(ii) A State educational agency.
       ``(iii) An adult and family education program.
       ``(iv) An institution of higher education or a State higher 
     education agency (as that term is defined in section 103 of 
     the Higher Education Act of 1965 (20 U.S.C. 1003)).
       ``(v) A teacher training center or academy that--

       ``(I) provides teacher preservice and inservice training; 
     and
       ``(II) receives Federal financial assistance or has been 
     approved by a State agency;

       ``(vi)(I) A public or private entity with experience and 
     expertise in the planning and operation of a 
     telecommunications network, including entities involved in 
     telecommunications through satellite, cable, telephone, or 
     computer; or
       ``(II) a public broadcasting entity with such experience.
       ``(vii) A public or private elementary school or secondary 
     school.
       ``(3) Instructional programming.--The term `instructional 
     programming' means courses of instruction and training 
     courses for elementary and secondary students, teachers, and 
     others, and materials for use in such instruction and 
     training that have been prepared in audio and visual form on 
     tape, disc, film, or live, and presented by means of 
     telecommunications devices.
       ``(4) Public broadcasting entity.--The term `public 
     broadcasting entity' has the same meaning given such term in 
     section 397 of the Communications Act of 1934 (47 U.S.C. 
     397).

                      ``Subpart 8--Ready to Teach

     ``SEC. 5481. GRANTS.

       ``(a) In General.--The Secretary is authorized to award 
     grants to a nonprofit telecommunications entity, or 
     partnership of such entities, for the purpose of carrying out 
     a national telecommunications-based program to improve 
     teaching in core curriculum areas. The program shall be 
     designed to assist elementary school and secondary school 
     teachers in preparing all students to achieve challenging 
     State academic content and student academic achievement 
     standards in core curriculum areas.
       ``(b) Digital Educational Programming.--The Secretary is 
     authorized to award grants, as provided for in section 5484, 
     to eligible entities described in subsection (b) of such 
     section, to enable such entities to develop, produce, and 
     distribute innovative educational and instructional video 
     programming that is designed for use by elementary schools 
     and secondary schools and based on challenging State academic 
     content and student academic achievement standards. In 
     awarding such grants, the Secretary shall ensure that 
     eligible entities enter into multiyear content development 
     collaborative arrangements with State educational agencies, 
     local educational agencies, institutions of higher education, 
     businesses, or other agencies or organizations.

     ``SEC. 5482. APPLICATION REQUIRED.

       ``(a) General Application.--
       ``(1) In general.--To be eligible to receive a grant under 
     section 5481(a), a nonprofit telecommunications entity, or 
     partnership of such entities shall submit an application to 
     the Secretary. Each such application shall--
       ``(A) demonstrate that the applicant will use the public 
     broadcasting infrastructure, the Internet, and school digital 
     networks, where available, to deliver video and data in an 
     integrated service to train teachers in the use of materials 
     and learning technologies for achieving challenging State 
     academic content and student academic achievement standards;
       ``(B) ensure that the project for which assistance is 
     sought will be conducted in cooperation with appropriate 
     State educational agencies, local educational agencies, and 
     State or local nonprofit public telecommunications entities;
       ``(C) ensure that a significant portion of the benefits 
     available for elementary schools and

[[Page 25735]]

     secondary schools from the project for which assistance is 
     sought will be available to schools of local educational 
     agencies that have a high percentage of children counted for 
     the purpose of part A of title I; and
       ``(D) contain such additional assurances as the Secretary 
     may reasonably require.
       ``(2) Sites.--In approving applications under paragraph 
     (1), the Secretary shall ensure that the program authorized 
     by section 5481(a) is conducted at elementary school and 
     secondary school sites throughout the United States.
       ``(b) Programming Application.--To be eligible to receive a 
     grant under section 5481(b), an entity shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     reasonably require.

     ``SEC. 5483. REPORTS AND EVALUATION.

       ``An entity receiving a grant under section 5481(a) shall 
     prepare and submit to the Secretary an annual report that 
     contains such information as the Secretary may require. At a 
     minimum, such report shall describe the program activities 
     undertaken with funds received under the grant, including--
       ``(1) the core curriculum areas for which program 
     activities have been undertaken and the number of teachers 
     using the program in each core curriculum area; and
       ``(2) the States in which teachers using the program are 
     located.

     ``SEC. 5484. DIGITAL EDUCATIONAL PROGRAMMING GRANTS.

       ``(a) Grants.--The Secretary is authorized to award grants 
     under section 5481(b) to eligible entities to facilitate the 
     development of educational programming that shall--
       ``(1) include student assessment tools to provide feedback 
     on student academic achievement;
       ``(2) include built-in teacher utilization and support 
     components to ensure that teachers understand and can easily 
     use the content of the programming with group instruction or 
     for individual student use;
       ``(3) be created for, or adaptable to, challenging State 
     academic content standards and student academic achievement 
     standards; and
       ``(4) be capable of distribution through digital 
     broadcasting and school digital networks.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under section 5481(b), an entity shall be a local public 
     telecommunications entity, as defined in section 397(12) of 
     the Communications Act of 1934, that is able to demonstrate a 
     capacity for the development and distribution of educational 
     and instructional television programming of high quality.
       ``(c) Competitive Basis.--Grants under section 5481(b) 
     shall be awarded on a competitive basis as determined by the 
     Secretary.
       ``(d) Matching Requirement.--To be eligible to receive a 
     grant under section 5481(b), an entity shall contribute to 
     the activities assisted under such grant non-Federal matching 
     funds in an amount equal to not less than 100 percent of the 
     amount of the grant. Such matching funds may include funds 
     provided for the transition to digital broadcasting, as well 
     as in-kind contributions.
       ``(e) Duration.--A grant under section 5481(b) shall be 
     awarded for a period of 3 years in order to provide a 
     sufficient period of time for the creation of a substantial 
     body of significant content.

     ``SEC. 5485. ADMINISTRATIVE COSTS.

       ``An entity that receives a grant under this subpart may 
     not use more than 5 percent of the amount received under the 
     grant for administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

     ``SEC. 5491. SHORT TITLE.

       ``This subpart may be cited as the `Foreign Language 
     Assistance Act of 2001'.

     ``SEC. 5492. PROGRAM AUTHORIZED.

       ``(a) Program Authority.--
       ``(1) In general.--The Secretary is authorized to make 
     grants, on a competitive basis, to State educational agencies 
     or local educational agencies to pay the Federal share of the 
     cost of innovative model programs providing for the 
     establishment, improvement, or expansion of foreign language 
     study for elementary school and secondary school students.
       ``(2) Duration.--Each grant under paragraph (1) shall be 
     awarded for a period of 3 years.
       ``(b) Requirements.--
       ``(1) Grants to state educational agencies.--In awarding a 
     grant under subsection (a) to a State educational agency, the 
     Secretary shall support programs that promote systemic 
     approaches to improving foreign language learning in the 
     State.
       ``(2) Grants to local educational agencies.--In awarding a 
     grant under subsection (a) to a local educational agency, the 
     Secretary shall support programs that--
       ``(A) show the promise of being continued beyond the grant 
     period;
       ``(B) demonstrate approaches that can be disseminated and 
     duplicated in other local educational agencies; and
       ``(C) may include a professional development component.
       ``(c) Federal Share.--
       ``(1) In general.--The Federal share for each fiscal year 
     shall be 50 percent.
       ``(2) Waiver.--Notwithstanding paragraph (1), the Secretary 
     may determine the Federal share for any local educational 
     agency which the Secretary determines does not have adequate 
     resources to pay the non-Federal share of the cost of the 
     activities assisted under this subpart.
       ``(d) Special rule.--Not less than \3/4\ of the funds made 
     available under section 5401 to carry out this subpart shall 
     be used for the expansion of foreign language learning in the 
     elementary grades.
       ``(e) Reservation.--The Secretary may reserve not more than 
     5 percent of funds made available under section 5401 to carry 
     out this subpart for a fiscal year to evaluate the efficacy 
     of programs assisted under this subpart.

     ``SEC. 5493. APPLICATIONS.

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

     ``SEC. 5494. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE 
                   PROGRAM.

       ``(a) Incentive Payments.--From amounts made available 
     under section 5401 to carry out this subpart, the Secretary 
     shall make an incentive payment for each fiscal year to each 
     public elementary school that provides to students attending 
     such school a program designed to lead to communicative 
     competency in a foreign language.
       ``(b) Amount.--The Secretary shall determine the amount of 
     the incentive payment under subsection (a) for each public 
     elementary school for each fiscal year on the basis of the 
     number of students participating in a program described in 
     such subsection at such school for such year compared to the 
     total number of such students at all such schools in the 
     United States for such year.
       ``(c) Requirement.--The Secretary shall consider a program 
     to be designed to lead to communicative competency in a 
     foreign language if such program is comparable to a program 
     that provides not less than 45 minutes of instruction in a 
     foreign language for not fewer than 4 days per week 
     throughout an academic year.

                    ``Subpart 10--Physical Education

     ``SEC. 5501. SHORT TITLE.

       ``This subpart may be cited as the `Carol M. White Physical 
     Education Program'.

     ``SEC. 5502. PURPOSE.

       ``The purpose of this subpart is to award grants and 
     contracts to initiate, expand, and improve physical education 
     programs for all kindergarten through 12th-grade students.

     ``SEC. 5503. PROGRAM AUTHORIZED.

       ``(a) Authorization.--The Secretary is authorized to award 
     grants to local educational agencies and community-based 
     organizations (such as Boys and Girls Clubs, Boy Scouts and 
     Girl Scouts, and the Young Men's Christian Organization 
     (YMCA) and Young Women's Christian Organization (YWCA)) to 
     pay the Federal share of the costs of initiating, expanding, 
     and improving physical education programs (including after-
     school programs) for kindergarten through 12th-grade students 
     by--
       ``(1) providing equipment and support to enable students to 
     participate actively in physical education activities; and
       ``(2) providing funds for staff and teacher training and 
     education.
       ``(b) Program Elements.--A physical education program 
     funded under this subpart may provide for one or more of the 
     following:
       ``(1) Fitness education and assessment to help students 
     understand, improve, or maintain their physical well-being.
       ``(2) Instruction in a variety of motor skills and physical 
     activities designed to enhance the physical, mental, and 
     social or emotional development of every student.
       ``(3) Development of, and instruction in, cognitive 
     concepts about motor skill and physical fitness that support 
     a lifelong healthy lifestyle.
       ``(4) Opportunities to develop positive social and 
     cooperative skills through physical activity participation.
       ``(5) Instruction in healthy eating habits and good 
     nutrition.
       ``(6) Opportunities for professional development for 
     teachers of physical education to stay abreast of the latest 
     research, issues, and trends in the field of physical 
     education.
       ``(c) Special Rule.--For the purpose of this subpart, 
     extracurricular activities, such as team sports and Reserve 
     Officers' Training Corps (ROTC) program activities, shall not 
     be considered as part of the curriculum of a physical 
     education program assisted under this subpart.

     ``SEC. 5504. APPLICATIONS.

       ``(a) Submission.--Each local educational agency or 
     community-based organization desiring a grant or contract 
     under this subpart shall submit to the Secretary an 
     application that contains a plan to initiate, expand, or 
     improve physical education programs in order to make progress 
     toward meeting State standards for physical education.

[[Page 25736]]

       ``(b) Private School and Home-Schooled Students.--An 
     application for funds under this subpart may provide for the 
     participation, in the activities funded under this subpart, 
     of--
       ``(1) students enrolled in private nonprofit elementary 
     schools or secondary schools, and their parents and teachers; 
     or
       ``(2) home-schooled students, and their parents and 
     teachers.

     ``SEC. 5505. REQUIREMENTS.

       ``(a) Annual Report to the Secretary.--In order to continue 
     receiving funding after the first year of a multiyear grant 
     or contract under this subpart, the administrator of the 
     grant or contract for the local educational agency or 
     community-based organization shall submit to the Secretary an 
     annual report that--
       ``(1) describes the activities conducted during the 
     preceding year; and
       ``(2) demonstrates that progress has been made toward 
     meeting State standards for physical education.
       ``(b) Administrative Expenses.--Not more than 5 percent of 
     the grant funds made available to a local educational agency 
     or community-based organization under this subpart for any 
     fiscal year may be used for administrative expenses.

     ``SEC. 5506. ADMINISTRATIVE PROVISIONS.

       ``(a) Federal Share.--The Federal share under this subpart 
     may not exceed--
       ``(1) 90 percent of the total cost of a program for the 
     first year for which the program receives assistance under 
     this subpart; and
       ``(2) 75 percent of such cost for the second and each 
     subsequent such year.
       ``(b) Proportionality.--To the extent practicable, the 
     Secretary shall ensure that grants awarded under this subpart 
     shall be equitably distributed among local educational 
     agencies and community-based organizations serving urban and 
     rural areas.
       ``(c) Report to Congress.--Not later than June 1, 2003, the 
     Secretary shall submit a report to Congress that--
       ``(1) describes the programs assisted under this subpart;
       ``(2) documents the success of such programs in improving 
     physical fitness; and
       ``(3) makes such recommendations as the Secretary 
     determines appropriate for the continuation and improvement 
     of the programs assisted under this subpart.
       ``(d) Availability of Funds.--Amounts made available to the 
     Secretary to carry out this subpart shall remain available 
     until expended.

     ``SEC. 5507. SUPPLEMENT, NOT SUPPLANT.

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

               ``Subpart 11--Community Technology Centers

     ``SEC. 5511. PURPOSE AND PROGRAM AUTHORIZATION.

       ``(a) Purpose.--It is the purpose of this subpart to assist 
     eligible applicants--
       ``(1) to create or expand community technology centers that 
     will provide disadvantaged residents of economically 
     distressed urban and rural communities with access to 
     information technology and related training; and
       ``(2) to provide technical assistance and support to 
     community technology centers.
       ``(b) Program Authorization.--The Secretary is authorized, 
     in conjunction with the Office of Educational Technology, to 
     award grants, contracts, or cooperative agreements, on a 
     competitive basis, for a period of not more than 3 years, to 
     eligible applicants in order to assist such applicants in--
       ``(1) creating or expanding community technology centers; 
     or
       ``(2) providing technical assistance and support to 
     community technology centers.
       ``(3) Service of americorps participants.--The Secretary 
     may collaborate with the Chief Executive Officer of the 
     Corporation for National and Community Service on the use in 
     community technology centers of participants in National 
     Service programs carried out under subtitle C of title I of 
     the National and Community Service Act of 1990 (42 U.S.C. 
     12571 et seq.).

     ``SEC. 5512. ELIGIBILITY AND APPLICATION REQUIREMENTS.

       ``(a) Eligible Applicants.--In order to be eligible to 
     receive an award under this subpart, an applicant shall--
       ``(1) be an entity (such as a foundation, museum, library, 
     for-profit business, public or private nonprofit 
     organization, or community-based organization), an 
     institution of higher education, a State educational agency, 
     a local education agency, or a consortium of such entities, 
     institutions, or agencies; and
       ``(2) have the capacity to significantly expand access to 
     computers and related services for disadvantaged residents of 
     economically distressed urban and rural communities (who 
     would otherwise be denied such access).
       ``(b) Application Requirements.--In order to receive an 
     award under this subpart, an eligible applicant shall submit 
     an application to the Secretary at such time, and containing 
     such information, as the Secretary may require. The 
     application shall include each of the following:
       ``(1) A description of the proposed project, including a 
     description of the magnitude of the need for the services and 
     how the project would expand access to information technology 
     and related services to disadvantaged residents of an 
     economically distressed urban or rural community.
       ``(2) A demonstration of--
       ``(A) the commitment, including the financial commitment, 
     of entities (such as institutions, organizations, business 
     and other groups in the community) that will provide support 
     for the creation, expansion, and continuation of the proposed 
     project; and
       ``(B) the extent to which the proposed project coordinates 
     with other appropriate agencies, efforts, and organizations 
     providing services to disadvantaged residents of an 
     economically distressed urban or rural community.
       ``(3) A description of how the proposed project would be 
     sustained once the Federal funds awarded under this subpart 
     end.
       ``(4) A plan for the evaluation of the program, which shall 
     include benchmarks to monitor progress toward specific 
     project objectives.
       ``(c) Matching Requirements.--The Federal share of the cost 
     of any project funded under this subpart shall not exceed 50 
     percent. The non-Federal share of such project may be in cash 
     or in kind, fairly evaluated, including services.

     ``SEC. 5513. USES OF FUNDS.

       ``(a) Required Uses.--A recipient shall use funds under 
     this subpart for--
       ``(1) creating or expanding community technology centers 
     that expand access to information technology and related 
     training for disadvantaged residents of distressed urban or 
     rural communities; and
       ``(2) evaluating the effectiveness of the project.
       ``(b) Permissible Uses.--A recipient may use funds under 
     this subpart for activities, described in its application, 
     that carry out the purposes of this subpart, such as--
       ``(1) supporting a center coordinator, and staff, to 
     supervise instruction and build community partnerships;
       ``(2) acquiring equipment, networking capabilities, and 
     infrastructure to carry out the project; and
       ``(3) developing and providing services and activities for 
     community residents that provide access to computers, 
     information technology, and the use of such technology in 
     support of preschool preparation, academic achievement, 
     educational development, and workforce development, such as 
     the following:
       ``(A) After-school activities in which children and youths 
     use software that provides academic enrichment and assistance 
     with homework, develop their technical skills, explore the 
     Internet, and participate in multimedia activities, including 
     web page design and creation.
       ``(B) Adult education and family literacy activities 
     through technology and the Internet, including--
       ``(i) General Education Development, Language Instruction 
     Educational Programs, and adult basic education classes or 
     programs;
       ``(ii) introduction to computers;
       ``(iii) intergenerational activities; and
       ``(iv) educational development opportunities.
       ``(C) Career development and job preparation activities, 
     such as--
       ``(i) training in basic and advanced computer skills;
       ``(ii) resume writing workshops; and
       ``(iii) access to databases of employment opportunities, 
     career information, and other online materials.
       ``(D) Small business activities, such as--
       ``(i) computer-based training for basic entrepreneurial 
     skills and electronic commerce; and
       ``(ii) access to information on business start-up programs 
     that is available online, or from other sources.
       ``(E) Activities that provide home access to computers and 
     technology, such as assistance and services to promote the 
     acquisition, installation, and use of information technology 
     in the home through low-cost solutions such as networked 
     computers, web-based television devices, and other 
     technology.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
             Whaling and Trading Partners in Massachusetts

     ``SEC. 5521. SHORT TITLE.

       ``This subpart may be cited as the `Alaska Native and 
     Native Hawaiian Education Through Cultural and Historical 
     Organizations Act'.

     ``SEC. 5522. FINDINGS AND PURPOSES.

       ``(a) Findings.--Congress finds the following:
       ``(1) Alaska Natives and Native Hawaiians have been linked 
     for over 200 years to the coastal towns of Salem, 
     Massachusetts, and New Bedford, Massachusetts, through the 
     China trade from Salem and whaling voyages from New Bedford.
       ``(2) Nineteenth-century trading ships sailed from Salem, 
     Massachusetts, around Cape Horn of South America, and up the 
     Northwest coast of the United States to Alaska, where their 
     crews traded with Alaska Native people for furs, and then 
     went on to Hawaii to trade for sandalwood with Native 
     Hawaiians before going on to China.
       ``(3) During the 19th century, over 2,000 whaling voyages 
     sailed out of New Bedford, Massachusetts to the Arctic region 
     of Alaska, and joined Alaska Natives from Barrow, Alaska and 
     other areas in the Arctic region in subsistence whaling 
     activities.
       ``(4) Many New Bedford whaling voyages continued on to 
     Hawaii, where they joined Native Hawaiians from the 
     neighboring islands.
       ``(5) From those commercial and whaling voyages, a rich 
     cultural exchange and strong trading relationships developed 
     among the three peoples involved.
       ``(6) In the past decades, awareness of the historical 
     trading, cultural, and whaling links has faded among Alaska 
     Natives, Native Hawaiians, and the people of the continental 
     United States.
       ``(7) In 2000, the Alaska Native Heritage Center in Alaska, 
     the Bishop Museum in Hawaii,

[[Page 25737]]

     and the Peabody-Essex Museum in Massachusetts initiated the 
     New Trade Winds project to use 21st-century technology, 
     including the Internet, to educate students and their parents 
     about historic and contemporary cultural and trading ties 
     that continue to link the diverse cultures of the peoples 
     involved.
       ``(8) The New Bedford Whaling Museum, in partnership with 
     the New Bedford Whaling National Historical Park, has 
     developed a cultural exchange and educational program with 
     the Inupiat Heritage Center in Barrow, Alaska to bring 
     together the children, parents, and elders from the Arctic 
     region of Alaska with children and families of Massachusetts 
     to learn about their historical ties and about each other's 
     contemporary cultures.
       ``(9) Within the fast-growing cultural sector, meaningful 
     educational and career opportunities based on traditional 
     relationships exist for Alaska Natives, Native Hawaiians, and 
     low-income youth in Massachusetts.
       ``(10) Cultural institutions can provide practical, 
     culturally relevant, education-related internship and 
     apprentice programs, such as the Museum Action Corps at the 
     Peabody-Essex Museum and similar programs at the New Bedford 
     Oceanarium and other institutions, to prepare youths and 
     their families for careers in the cultural sector.
       ``(11) The resources of the institutions described in 
     paragraphs (7) and (8) provide unique opportunities for 
     illustrating and interpreting the contributions of Alaska 
     Natives, Native Hawaiians, the whaling industry, and the 
     China trade to the economic, social, and environmental 
     history of the United States, for educating students and 
     their parents, and for providing opportunities for 
     internships and apprenticeships leading to careers with 
     cultural institutions.
       ``(b) Purposes.--The purposes of this subpart are the 
     following:
       ``(1) To authorize and develop innovative culturally-based 
     educational programs and cultural exchanges to assist Alaska 
     Natives, Native Hawaiians, and children and families of 
     Massachusetts linked by history and tradition to Alaska and 
     Hawaii to learn about shared culture and traditions.
       ``(2) To authorize and develop internship and apprentice 
     programs to assist Alaska Natives, Native Hawaiians, and 
     children and families of Massachusetts linked by history and 
     tradition with Alaska and Hawaii to prepare for careers with 
     cultural institutions.
       ``(3) To supplement programs and authorities in the area of 
     education to further the objectives of this subpart.

     ``SEC. 5523. PROGRAM AUTHORIZATION.

       ``(a) Grants and Contracts.--In order to carry out programs 
     that fulfill the purposes of this subpart, the Secretary is 
     authorized to make grants to, or enter into contracts with, 
     the following:
       ``(1) The Alaska Native Heritage Center in Anchorage, 
     Alaska.
       ``(2) The Inupiat Heritage Center in Barrow, Alaska.
       ``(3) The Bishop Museum in Hawaii.
       ``(4) The Peabody-Essex Museum in Salem, Massachusetts.
       ``(5) The New Bedford Whaling Museum and the New Bedford 
     Oceanarium in New Bedford, Massachusetts.
       ``(6) Other Alaska Native and Native Hawaiian cultural and 
     educational organizations.
       ``(7) Cultural and educational organizations with 
     experience in developing or operating programs that 
     illustrate and interpret the contributions of Alaska Natives, 
     Native Hawaiians, the whaling industry, and the China trade 
     to the economic, social, and environmental history of the 
     United States.
       ``(8) Consortia of the organizations and entities described 
     in this subsection.
       ``(b) Uses of Funds.--Activities provided through programs 
     carried out under this subpart may include one or more of the 
     following:
       ``(1) Development and implementation of educational 
     programs to increase understanding of cultural diversity and 
     multicultural communication among Alaska Natives, Native 
     Hawaiians, and the people of the continental United States, 
     based on historic patterns of trading and commerce.
       ``(2) Development and implementation of programs using 
     modern technology, including the Internet, to educate 
     students, their parents, and teachers about historic and 
     contemporary cultural and trading ties that continue to link 
     the diverse cultures of Alaska Natives, Native Hawaiians, and 
     the people of Massachusetts.
       ``(3) Cultural exchanges of elders, students, parents, and 
     teachers among Alaska Natives, Native Hawaiians, and the 
     people of Massachusetts to increase awareness of diverse 
     cultures among each group.
       ``(4) Sharing of collections among cultural institutions 
     designed to increase awareness of diverse cultures and links 
     among them.
       ``(5) Development and implementation of internship and 
     apprentice programs in cultural institutions to train Alaska 
     Natives, Native Hawaiians and low-income students in 
     Massachusetts for careers with cultural institutions.
       ``(6) Other activities, consistent with the purposes of 
     this subpart, to meet the educational needs of Alaska 
     Natives, Native Hawaiians, and students and their parents in 
     Massachusetts.

     ``SEC. 5524. ADMINISTRATIVE PROVISIONS.

       ``(a) Application Required.--No grant may be made under 
     this subpart, and no contract may be entered into under this 
     subpart, unless the entity seeking the grant or contract 
     submits an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     determine to be necessary to carry out the provisions of this 
     subpart.
       ``(b) Local Educational Agency Coordination.--Each 
     applicant for a grant or contract under this subpart shall 
     inform each local educational agency serving students who 
     will participate in the program to be carried out under the 
     grant or contract about the application.

     ``SEC. 5525. AVAILABILITY OF FUNDS.

       ``If sufficient funds are made available under section 5401 
     to carry out this subpart for a fiscal year, the Secretary 
     shall make available, to support activities described in 
     section 5523(b), the following amounts:
       ``(1) Not less than $2,000,000 each to--
       ``(A) the New Bedford Whaling Museum, in partnership with 
     the New Bedford Oceanarium, in Massachusetts; and
       ``(B) the Inupiat Heritage Center in Alaska.
       ``(2) For the New Trade Winds project, not less than 
     $1,000,000 each to--
       ``(A) the Alaska Native Heritage Center in Alaska;
       ``(B) the Bishop Museum in Hawaii; and
       ``(C) the Peabody-Essex Museum in Massachusetts.
       ``(3) For internship and apprenticeship programs (including 
     the Museum Action Corps of the Peabody-Essex Museum), not 
     less than $1,000,000 each to--
       ``(A) the Alaska Native Heritage Center in Alaska;
       ``(B) the Bishop Museum in Hawaii; and
       ``(C) the Peabody-Essex Museum in Massachusetts.

     ``SEC. 5526. DEFINITIONS.

       ``In this subpart:
       ``(1) Alaska Native.--The term `Alaska Native' has the 
     meaning given that term in section 7306.
       ``(2) Native Hawaiian.--The term `Native Hawaiian' has the 
     meaning given that term in section 7207.

             ``Subpart 13--Excellence in Economic Education

     ``SEC. 5531. SHORT TITLE.

       ``This subpart may be cited as the `Excellence in Economic 
     Education Act of 2001'.

     ``SEC. 5532. PURPOSE AND GOALS.

       ``(a) Purpose.--The purpose of this subpart is to promote 
     economic and financial literacy among all students in 
     kindergarten through grade 12 by awarding a competitive grant 
     to a national nonprofit educational organization that has as 
     its primary purpose the improvement of the quality of student 
     understanding of personal finance and economics.
       ``(b) Objectives.--The objectives of this subpart are the 
     following:
       ``(1) To increase students' knowledge of, and achievement 
     in, economics to enable the students to become more 
     productive and informed citizens.
       ``(2) To strengthen teachers' understanding of, and 
     competency in, economics to enable the teachers to increase 
     student mastery of economic principles and the practical 
     application of those principles.
       ``(3) To encourage economic education research and 
     development, to disseminate effective instructional 
     materials, and to promote replication of best practices and 
     exemplary programs that foster economic literacy.
       ``(4) To assist States in measuring the impact of education 
     in economics.
       ``(5) To leverage and expand private and public support for 
     economic education partnerships at national, State, and local 
     levels.

     ``SEC. 5533. GRANT PROGRAM AUTHORIZED.

       ``(a) Authorization.--The Secretary is authorized to award 
     a competitive grant to a national nonprofit educational 
     organization that has as its primary purpose the improvement 
     of the quality of student understanding of personal finance 
     and economics through effective teaching of economics in the 
     Nation's classrooms (referred to in this subpart as the 
     `grantee').
       ``(b) Uses of funds.--
       ``(1) Direct activities.--The grantee shall use 25 percent 
     of the funds made available through the grant for a fiscal 
     year--
       ``(A) to strengthen and expand the grantee's relationships 
     with State and local personal finance, entrepreneurial, and 
     economic education organizations;
       ``(B) to support and promote training of teachers who teach 
     a grade from kindergarten through grade 12 regarding 
     economics, including the dissemination of information on 
     effective practices and research findings regarding the 
     teaching of economics;
       ``(C) to support research on effective teaching practices 
     and the development of assessment instruments to document 
     student understanding of personal finance and economics; and
       ``(D) to develop and disseminate appropriate materials to 
     foster economic literacy.
       ``(2) Subgrants.--The grantee shall use 75 percent of the 
     funds made available through the grant for a fiscal year to 
     award subgrants to State educational agencies or local 
     educational agencies, and State or local economic, personal 
     finance, or entrepreneurial education organizations (referred 
     to in this section as the `recipient'). The grantee shall 
     award such a subgrant to pay for the Federal share of the 
     cost of enabling the recipient to work in partnership with 
     one or more of the entities described in paragraph (3) for 
     one or more of the following purposes:
       ``(A) Collaboratively establishing and conducting teacher 
     training programs that use effective and innovative 
     approaches to the teaching of economics, personal finance, 
     and entrepreneurship.
       ``(B) Providing resources to school districts that desire 
     to incorporate economics and personal finance into the 
     curricula of the schools in the districts.

[[Page 25738]]

       ``(C) Conducting evaluations of the impact of economic and 
     financial literacy education on students.
       ``(D) Conducting economic and financial literacy education 
     research.
       ``(E) Creating and conducting school-based student 
     activities to promote consumer, economic, and personal 
     finance education (such as saving, investing, and 
     entrepreneurial education) and to encourage awareness and 
     student academic achievement in economics.
       ``(F) Encouraging replication of best practices to promote 
     economic and financial literacy.
       ``(3) Partnership entities.--The entities described in this 
     paragraph are the following:
       ``(A) A private sector entity.
       ``(B) A State educational agency.
       ``(C) A local educational agency.
       ``(D) An institution of higher education.
       ``(E) An organization promoting economic development.
       ``(F) An organization promoting educational excellence.
       ``(G) An organization promoting personal finance or 
     entrepreneurial education.

     ``SEC. 5534. APPLICATIONS.

       ``(a) Grantee Applications.--To be eligible to receive a 
     grant under this subpart, the grantee shall submit to the 
     Secretary an application at such time, in such manner, and 
     accompanied by such information as the Secretary may require.
       ``(b) Recipient Applications.--
       ``(1) Submission.--To be eligible to receive a subgrant 
     under this section, a recipient shall submit an application 
     to the grantee at such time, in such manner, and accompanied 
     by such information as the grantee may require.
       ``(2) Review.--The grantee shall invite the individuals 
     described in paragraph (3) to review all applications from 
     recipients for a subgrant under this section and to make 
     recommendations to the grantee regarding the approval of the 
     applications.
       ``(3) Reviewers.--The individuals described in this 
     paragraph are the following:
       ``(i) Leaders in the fields of economics and education.
       ``(ii) Such other individuals as the grantee determines to 
     be necessary, especially members of the State and local 
     business, banking, and finance communities.

     ``SEC. 5535. REQUIREMENTS.

       ``(a) Administrative costs.--The grantee and each recipient 
     receiving a subgrant under this subpart for a fiscal year may 
     use not more than 5 percent of the funds made available 
     through the grant or subgrant for administrative costs.
       ``(b) Teacher Training Programs.--In carrying out the 
     teacher training programs described in section 5533(b)(2)(A), 
     a recipient shall--
       ``(1) train teachers who teach a grade from kindergarten 
     through grade 12; and
       ``(2) encourage teachers from disciplines other than 
     economics and financial literacy to participate in such 
     teacher training programs, if the training will promote the 
     economic and financial literacy of those teachers' students.
       ``(c) Involvement of Business Community.--In carrying out 
     the activities assisted under this subpart, the grantee and 
     recipients are strongly encouraged to--
       ``(1) include interactions with the local business 
     community to the fullest extent possible to reinforce the 
     connection between economic and financial literacy and 
     economic development; and
       ``(2) work with private businesses to obtain matching 
     contributions for Federal funds and assist recipients in 
     working toward self-sufficiency.
       ``(d) Additional requirements and technical assistance.--
     The grantee shall--
       ``(1) meet such other requirements as the Secretary 
     determines to be necessary to assure compliance with this 
     section; and
       ``(2) receive from the Secretary such technical assistance 
     as may be necessary to carry out this section.

     ``SEC. 5536. ADMINISTRATIVE PROVISIONS.

       ``(a) Federal Share.--The Federal share of the cost 
     described in section 5533(b)(2) shall be 50 percent.
       ``(b) Payment of Non-Federal Share.--The non-Federal share 
     may be paid in cash or in kind (fairly evaluated, including 
     plant, equipment, or services).
       ``(c) Reports to Congress.--Not later than 2 years after 
     the date funds are first made available to carry out this 
     subpart, and every 2 years thereafter, the Secretary shall 
     submit to the appropriate committees of Congress a report 
     regarding activities assisted under this subpart.

     ``SEC. 5537. SUPPLEMENT, NOT SUPPLANT.

       Funds made available to carry out this subpart shall be 
     used to supplement, and not supplant, other Federal, State, 
     and local funds expended for the purpose described in section 
     5532(a).

     ``Subpart 14--Grants to Improve the Mental Health of Children

     ``SEC. 5541. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL 
                   HEALTH SYSTEMS.

       ``(a) Authorization.--The Secretary is authorized to award 
     grants to, or enter into contracts or cooperative agreements 
     with, State educational agencies, local educational agencies, 
     or Indian tribes, for the purpose of increasing student 
     access to quality mental health care by developing innovative 
     programs to link local school systems with the local mental 
     health system.
       ``(b) Duration.--With respect to a grant, contract, or 
     cooperative agreement awarded or entered into under this 
     section, the period during which payments under such grant, 
     contract or agreement are made to the recipient may not 
     exceed 5 years.
       ``(c) Use of funds.--A State educational agency, local 
     educational agency, or Indian tribe that receives a grant, 
     contract, or cooperative agreement under this section shall 
     use amounts made available through such grant, contract, or 
     cooperative agreement for the following:
       ``(1) To enhance, improve, or develop collaborative efforts 
     between school-based service systems and mental health 
     service systems to provide, enhance, or improve prevention, 
     diagnosis, and treatment services to students.
       ``(2) To enhance the availability of crisis intervention 
     services, appropriate referrals for students potentially in 
     need of mental health services, and ongoing mental health 
     services.
       ``(3) To provide training for the school personnel and 
     mental health professionals who will participate in the 
     program carried out under this section.
       ``(4) To provide technical assistance and consultation to 
     school systems and mental health agencies and families 
     participating in the program carried out under this section.
       ``(5) To provide linguistically appropriate and culturally 
     competent services.
       ``(6) To evaluate the effectiveness of the program carried 
     out under this section in increasing student access to 
     quality mental health services, and make recommendations to 
     the Secretary about sustainability of the program.
       ``(d) Applications.--To be eligible to receive a grant, 
     contract, or cooperative agreement under this section, a 
     State educational agency, local educational agency, or Indian 
     tribe shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may reasonably require. The application shall 
     include each of the following:
       ``(1) A description of the program to be funded under the 
     grant, contract, or cooperative agreement.
       ``(2) A description of how such program will increase 
     access to quality mental health services for students.
       ``(3) A description of how the applicant will establish a 
     crisis intervention program to provide immediate mental 
     health services to the school community when necessary.
       ``(4) An assurance that--
       ``(A) persons providing services under the grant, contract, 
     or cooperative agreement are adequately trained to provide 
     such services;
       ``(B) the services will be provided in accordance with 
     subsection (c);
       ``(C) teachers, principal administrators, and other school 
     personnel are aware of the program; and
       ``(D) parents of students participating in services under 
     this section will be involved in the design and 
     implementation of the services.
       ``(5) An explanation of how the applicant will support and 
     integrate existing school-based services with the program to 
     provide appropriate mental health services for students.
       ``(6) An explanation of how the applicant will establish a 
     program that will support students and the school in 
     maintaining an environment conducive to learning.
       ``(e) Interagency agreements.--
       ``(1) Designation of lead agency.--The recipient of each 
     grant, contract, or cooperative agreement shall designate a 
     lead agency to direct the establishment of an interagency 
     agreement among local educational agencies, juvenile justice 
     authorities, mental health agencies, and other relevant 
     entities in the State, in collaboration with local entities 
     and parents and guardians of students.
       ``(2) Contents.--The interagency agreement shall ensure the 
     provision of the services described in subsection (c), 
     specifying with respect to each agency, authority, or 
     entity--
       ``(A) the financial responsibility for the services;
       ``(B) the conditions and terms of responsibility for the 
     services, including quality, accountability, and coordination 
     of the services; and
       ``(C) the conditions and terms of reimbursement among the 
     agencies, authorities, or entities that are parties to the 
     interagency agreement, including procedures for dispute 
     resolution.
       ``(f) Evaluation.--The Secretary shall evaluate each 
     program carried out by a State educational agency, local 
     educational agency, or Indian tribe under this section and 
     shall disseminate the findings with respect to each such 
     evaluation to appropriate public and private entities.
       ``(g) Distribution of awards.--The Secretary shall ensure 
     that grants, contracts, and cooperative agreements awarded or 
     entered into under this section are equitably distributed 
     among the geographical regions of the United States and among 
     urban, suburban, and rural populations.
       ``(h) Rule of Construction.--Nothing in Federal law shall 
     be construed--
       ``(1) to prohibit an entity involved with a program carried 
     out under this section from reporting a crime that is 
     committed by a student to appropriate authorities; or
       ``(2) to prevent State law enforcement and judicial 
     authorities from exercising their responsibilities with 
     regard to the application of Federal and State law to crimes 
     committed by a student.
       ``(i) Supplement, Not Supplant.--Any services provided 
     through programs carried out under this section must 
     supplement, and not supplant, existing mental health 
     services, including any services required to be provided 
     under the Individuals with Disabilities Education Act (20 
     U.S.C. 1400 et seq.).

[[Page 25739]]



     ``SEC. 5542. PROMOTION OF SCHOOL READINESS THROUGH EARLY 
                   CHILDHOOD EMOTIONAL AND SOCIAL DEVELOPMENT.

       ``(a) Authorization.--The Secretary, in consultation with 
     the Secretary of Health and Human Services, may award grants 
     (to be known as `Foundations for Learning Grants') to local 
     educational agencies, local councils, community-based 
     organizations, and other public or nonprofit private entities 
     to assist eligible children to become ready for school.
       ``(b) Applications.--To be eligible to receive a grant 
     under this section, a local educational agency, local 
     council, community-based organization, or other public or 
     nonprofit private entity, or a combination of such entities, 
     shall submit an application to the Secretary at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may reasonably require. The application shall 
     include each of the following:
       ``(1) A description of the population that the applicant 
     intends to serve and the types of services to be provided 
     under the grant.
       ``(2) A description of the manner in which services under 
     the grant will be coordinated with existing similar services 
     provided by public and nonprofit private entities within the 
     State.
       ``(3) An assurance that--
       ``(A) services under the grant shall be provided by or 
     under the supervision of qualified professionals with 
     expertise in early childhood development;
       ``(B) such services shall be culturally competent;
       ``(C) such services shall be provided in accordance with 
     subsection (c);
       ``(D) funds received under this section shall be used to 
     supplement, and not supplant, non-Federal funds; and
       ``(E) parents of students participating in services under 
     this section will be involved in the design and 
     implementation of the services.
       ``(c) Uses of funds.--A local educational agency, local 
     council, community-based organization, or other public or 
     nonprofit private entity that receives funds under this 
     section may use such funds to benefit eligible children, for 
     one or more of the following:
       ``(1) To deliver services to eligible children and their 
     families that foster eligible children's emotional, 
     behavioral, and social development and take into 
     consideration the characteristics described in subsection 
     (f)(1)
       ``(2) To coordinate and facilitate access by eligible 
     children and their families to the services available through 
     community resources, including mental health, physical 
     health, substance abuse, educational, domestic violence 
     prevention, child welfare, and social services.
       ``(3) To provide ancillary services such as transportation 
     or child care in order to facilitate the delivery of any 
     other services or activities authorized by this section.
       ``(4) To develop or enhance early childhood community 
     partnerships and build toward a community system of care that 
     brings together child-serving agencies or organizations to 
     provide individualized supports for eligible children and 
     their families.
       ``(5) To evaluate the success of strategies and services 
     provided pursuant to this section in promoting young 
     children's successful entry to school and to maintain data 
     systems required for effective evaluations.
       ``(6) To pay for the expenses of administering the 
     activities authorized under this section, including 
     assessment of children's eligibility for services.
       ``(d) Limitations.--
       ``(1) Services not otherwise funded.--A local educational 
     agency, local council, community-based organization, or other 
     public or nonprofit private entity may use funds under this 
     section only to pay for services that cannot be paid for 
     using other Federal, State, or local public resources or 
     through private insurance.
       ``(2) Administrative expenses.--A grantee may not use more 
     than 3 percent of the amount of the grant to pay the 
     administrative expenses described in subsection (c)(6).
       ``(e) Evaluations.--The Secretary shall directly evaluate, 
     or enter into a contract for an outside evaluation of, each 
     program carried out under this section and shall disseminate 
     the findings with respect to such evaluation to appropriate 
     public and private entities.
       ``(f) Definitions.--In this section:
       ``(1) Eligible child.--The term `eligible child' means a 
     child who has not attained the age of 7 years, and to whom 
     two or more of the following characteristics apply:
       ``(A) The child has been abused, maltreated, or neglected.
       ``(B) The child has been exposed to violence.
       ``(C) The child has been homeless.
       ``(D) The child has been removed from child care, Head 
     Start, or preschool for behavioral reasons or is at risk of 
     being so removed.
       ``(E) The child has been exposed to parental depression or 
     other mental illness.
       ``(F) The family income with respect to the child is below 
     200 percent of the poverty line.
       ``(G) The child has been exposed to parental substance 
     abuse.
       ``(H) The child has had early behavioral and peer 
     relationship problems.
       ``(I) The child had a low birth weight.
       ``(J) The child has a cognitive deficit or developmental 
     disability.
       ``(2) Local council.--The term `local council' means a 
     council that is established or designated by a local 
     government entity, Indian tribe, regional corporation, or 
     native Hawaiian entity, as appropriate, which is composed of 
     representatives of local agencies directly affected by early 
     learning programs, parents, key community leaders, and other 
     individuals concerned with early learning issues in the 
     locality, such as elementary education, child care resource 
     and referral services, early learning opportunities, child 
     care, and health services.
       ``(3) Provider of early childhood services.--The term 
     `provider of early childhood services' means a public or 
     private entity that has regular contact with young children, 
     including child welfare agencies, child care providers, Head 
     Start and Early Head Start providers, preschools, 
     kindergartens, libraries, mental health professionals, family 
     courts, homeless shelters, and primary care providers.

                    ``Subpart 15--Arts in Education

     ``SEC. 5551. ASSISTANCE FOR ARTS EDUCATION.

       ``(a) Purposes.--The purposes of this subpart are the 
     following:
       ``(1) To support systemic education reform by strengthening 
     arts education as an integral part of the elementary school 
     and secondary school curriculum.
       ``(2) To help ensure that all students meet challenging 
     State academic content standards and challenging State 
     student academic achievement standards in the arts.
       ``(3) To support the national effort to enable all students 
     to demonstrate competence in the arts.
       ``(b) Authority.--The Secretary is authorized to make 
     grants to, or enter into contracts or cooperative agreements 
     with, eligible entities described in subsection (c).
       ``(c) Eligible Entities.--The Secretary may make assistance 
     available under subsection (b) to each of the following 
     eligible entities:
       ``(1) State educational agencies.
       ``(2) Local educational agencies.
       ``(3) Institutions of higher education.
       ``(4) Museums or other cultural institutions.
       ``(5) Any other public or private agencies, institutions, 
     or organizations.
       ``(d) Use of Funds.--Assistance made available under this 
     subpart may be used for any of the following:
       ``(1) Research on arts education.
       ``(2) Planning, developing, acquiring, expanding, 
     improving, or disseminating information about model school-
     based arts education programs.
       ``(3) The development of model State arts education 
     assessments based on State academic achievement standards.
       ``(4) The development and implementation of curriculum 
     frameworks for arts education.
       ``(5) The development of model inservice professional 
     development programs for arts educators and other 
     instructional staff.
       ``(6) Supporting collaborative activities with Federal 
     agencies or institutions involved in arts education, arts 
     educators, and organizations representing the arts, including 
     State and local arts agencies involved in arts education.
       ``(7) Supporting model projects and programs in the 
     performing arts for children and youth through arrangements 
     made with the John F. Kennedy Center for the Performing Arts.
       ``(8) Supporting model projects and programs by Very 
     Special Arts which assure the participation in mainstream 
     settings in arts and education programs of individuals with 
     disabilities.
       ``(9) Supporting model projects and programs to integrate 
     arts education into the regular elementary school and 
     secondary school curriculum.
       ``(10) Other activities that further the purposes of this 
     subpart.
       ``(e) Special Rule.--If the amount made available to the 
     Secretary to carry out this subpart for any fiscal year is 
     $15,000,000 or less, then such amount shall only be available 
     to carry out the activities described in paragraphs (7) and 
     (8) of subsection (d).
       ``(f) Conditions.--As conditions of receiving assistance 
     made available under this subpart, the Secretary shall 
     require each entity receiving such assistance--
       ``(1) to coordinate, to the extent practicable, each 
     project or program carried out with such assistance with 
     appropriate activities of public or private cultural 
     agencies, institutions, and organizations, including museums, 
     arts education associations, libraries, and theaters; and
       ``(2) to use such assistance only to supplement, and not to 
     supplant, any other assistance or funds made available from 
     non-Federal sources for the activities assisted under this 
     subpart.
       ``(g) Consultation.--In carrying out this subpart, the 
     Secretary shall consult with Federal agencies or 
     institutions, arts educators (including professional arts 
     education associations), and organizations representing the 
     arts (including State and local arts agencies involved in 
     arts education).

 ``Subpart 16--Parental Assistance and Local Family Information Centers

     ``SEC. 5561. PURPOSES.

       ``The purposes of this subpart are the following:
       ``(1) To provide leadership, technical assistance, and 
     financial support to nonprofit organizations (including 
     statewide nonprofit organizations) and local educational 
     agencies to help the organizations and agencies implement 
     successful and effective parental involvement policies, 
     programs, and activities that lead to improvements in student 
     academic achievement.
       ``(2) To strengthen partnerships among parents (including 
     parents of children from birth through age 5), teachers, 
     principals, administrators, and other school personnel in 
     meeting the educational needs of children.
       ``(3) To develop and strengthen the relationship between 
     parents and their children's school.

[[Page 25740]]

       ``(4) To further the developmental progress of children 
     assisted under this subpart.
       ``(5) To coordinate activities funded under this subpart 
     with parental involvement initiatives funded under section 
     1118 and other provisions of this Act.
       ``(6) To provide a comprehensive approach to improving 
     student learning, through coordination and integration of 
     Federal, State, and local services and programs.

     ``SEC. 5562. GRANTS AUTHORIZED.

       ``(a) Parental Information and Resource Centers.--The 
     Secretary is authorized to award grants in each fiscal year 
     to nonprofit organizations (including statewide nonprofit 
     organizations), and consortia of such organizations and local 
     educational agencies, to establish school-linked or school-
     based parental information and resource centers that provide 
     comprehensive training, information, and support to--
       ``(1) parents of children enrolled in elementary schools 
     and secondary schools;
       ``(2) individuals who work with the parents of children 
     enrolled in elementary schools and secondary schools;
       ``(3) State educational agencies, local educational 
     agencies, schools, organizations that support family-school 
     partnerships (such as parent-teacher associations and Parents 
     as Teachers organizations), and other organizations that 
     carry out parent education and family involvement programs; 
     and
       ``(4) parents of children from birth through age 5.
       ``(b) Geographic Distribution.--In awarding grants under 
     this subpart, the Secretary shall, to the extent practicable, 
     ensure that such grants are distributed in all geographic 
     regions of the United States.

     ``SEC. 5563. APPLICATIONS.

       ``(a) Submission.--Each nonprofit organization (including a 
     statewide nonprofit organization), or a consortia of such an 
     organization and a local educational agency, that desires a 
     grant under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(b) Contents.--Each application submitted under 
     subsection (a), at a minimum, shall include assurances that 
     the organization or consortium will--
       ``(1)(A) be governed by a board of directors the membership 
     of which includes parents; or
       ``(B) be an organization or consortium that represents the 
     interests of parents;
       ``(2) establish a special advisory committee the membership 
     of which includes--
       ``(A) parents of children enrolled in elementary schools 
     and secondary schools, who shall constitute a majority of the 
     members of the special advisory committee;
       ``(B) representatives of education professionals with 
     expertise in improving services for disadvantaged children; 
     and
       ``(C) representatives of local elementary schools and 
     secondary schools, including students and representatives 
     from local youth organizations;
       ``(3) use at least 50 percent of the funds received under 
     this subpart in each fiscal year to serve areas with high 
     concentrations of low-income families, in order to serve 
     parents who are severely educationally or economically 
     disadvantaged;
       ``(4) operate a center of sufficient size, scope, and 
     quality to ensure that the center is adequate to serve the 
     parents in the area;
       ``(5) serve both urban and rural areas;
       ``(6) design a center that meets the unique training, 
     information, and support needs of parents of children 
     enrolled in elementary schools and secondary schools, 
     particularly such parents who are educationally or 
     economically disadvantaged;
       ``(7) demonstrate the capacity and expertise to conduct the 
     effective training, information, and support activities for 
     which assistance is sought;
       ``(8) network with--
       ``(A) local educational agencies and schools;
       ``(B) parents of children enrolled in elementary schools 
     and secondary schools;
       ``(C) parent training and information centers assisted 
     under section 682 of the Individuals with Disabilities 
     Education Act;
       ``(D) clearinghouses; and
       ``(E) other organizations and agencies;
       ``(9) focus on serving parents of children enrolled in 
     elementary schools and secondary schools who are parents of 
     low-income, minority, and limited English proficient 
     children;
       ``(10) use at least 30 percent of the funds received under 
     this subpart in each fiscal year to establish, expand, or 
     operate Parents as Teachers programs, Home Instruction for 
     Preschool Youngsters programs, or other early childhood 
     parent education programs;
       ``(11) provide assistance to parents in areas such as 
     understanding State and local standards and measures of 
     student and school academic achievement;
       ``(12) work with State educational agencies and local 
     educational agencies to determine parental needs and the best 
     means for delivery of services;
       ``(13) identify and coordinate Federal, State, and local 
     services and programs that support improved student learning, 
     including programs supported under this Act, violence 
     prevention programs, nutrition programs, housing programs, 
     Head Start programs, adult education, and job training; and
       ``(14) work with and foster partnerships with other 
     agencies that provide programs and deliver services described 
     in paragraph (13) to make such programs and services more 
     accessible to children and families.

     ``SEC. 5564. USES OF FUNDS.

       ``(a) In General.--Grant funds received under this subpart 
     shall be used for one or more of the following:
       ``(1) To assist parents in participating effectively in 
     their children's education and to help their children meet 
     State and local standards, such as assisting parents--
       ``(A) to engage in activities that will improve student 
     academic achievement, including understanding the 
     accountability systems in place within their State 
     educational agency and local educational agency and 
     understanding their children's educational academic 
     achievement in comparison to State and local standards;
       ``(B) to provide follow-up support for their children's 
     educational achievement;
       ``(C) to communicate effectively with teachers, principals, 
     counselors, administrators, and other school personnel;
       ``(D) to become active participants in the development, 
     implementation, and review of school-parent compacts, parent 
     involvement policies, and school planning and improvement;
       ``(E) to participate in the design and provision of 
     assistance to students who are not making adequate academic 
     progress;
       ``(F) to participate in State and local decisionmaking; and
       ``(G) to train other parents (such as training related to 
     Parents as Teachers activities).
       ``(2) To obtain information about the range of options, 
     programs, services, and resources available at the national, 
     State, and local levels to assist parents and school 
     personnel who work with parents.
       ``(3) To help the parents learn and use the technology 
     applied in their children's education.
       ``(4) To plan, implement, and fund activities for parents 
     that coordinate the education of their children with other 
     Federal, State, and local services and programs that serve 
     their children or their families.
       ``(5) To provide support for State or local educational 
     personnel, if the participation of such personnel will 
     further the activities assisted under the grant.
       ``(6) To coordinate and integrate early childhood programs 
     with school-age programs.
       ``(b) Permissive Activities.--Grant funds received under 
     this subpart may be used to assist schools with activities 
     including one or more of the following:
       ``(1) Developing and implementing the schools' plans or 
     activities under sections 1118 and 1119.
       ``(2) Developing and implementing school improvement plans, 
     including addressing problems that develop in the 
     implementation of the schools' plans or activities under 
     sections 1118 and 1119.
       ``(3) Providing information about assessment and individual 
     results to parents in a manner and a language the family can 
     understand.
       ``(4) Coordinating the efforts of Federal, State, and local 
     parent education and family involvement initiatives.
       ``(5) Providing training, information, and support to--
       ``(A) State educational agencies;
       ``(B) local educational agencies and schools, especially 
     low-performing local educational agencies and schools; and
       ``(C) organizations that support family-school 
     partnerships.

     ``SEC. 5565. ADMINISTRATIVE PROVISIONS.

       ``(a) Matching Funds for Grant Renewal.--For each fiscal 
     year after the first fiscal year in which an organization or 
     consortium receives assistance under this subpart, the 
     organization or consortium shall demonstrate in the 
     application submitted for such fiscal year, that a portion of 
     the services provided by the organization or consortium is 
     supported through non-Federal contributions, which 
     contributions may be in cash or in kind.
       ``(b) Submission of Information.--
       ``(1) In general.--Each organization or consortium 
     receiving assistance under this subpart shall submit to the 
     Secretary, on an annual basis, information concerning the 
     parental information and resource centers assisted under this 
     subpart, including the following information:
       ``(A) The number of parents (including the number of 
     minority and limited English proficient parents) who receive 
     information and training.
       ``(B) The types and modes of training, information, and 
     support provided under this subpart.
       ``(C) The strategies used to reach and serve parents of 
     minority and limited English proficient children, parents 
     with limited literacy skills, and other parents in need of 
     the services provided under this subpart.
       ``(D) The parental involvement policies and practices used 
     by the center and an evaluation of whether such policies and 
     practices are effective in improving home-school 
     communication, student academic achievement, student and 
     school academic achievement, and parental involvement in 
     school planning, review, and improvement.
       ``(E) The effectiveness of the activities that local 
     educational agencies and schools are carrying out, with 
     regard to parental involvement and other activities assisted 
     under this Act, that lead to improved student academic 
     achievement and improved student and school academic 
     achievement.
       ``(2) Dissemination.--The Secretary shall disseminate 
     annually to Congress and the public the information that each 
     organization or consortium submits under paragraph (1).
       ``(c) Technical Assistance.--The Secretary shall provide 
     technical assistance, by grant or

[[Page 25741]]

     contract, for the establishment, development, and 
     coordination of parent training, information, and support 
     programs and parental information and resource centers.
       ``(d) Rule of Construction.--Nothing in this subpart shall 
     be construed to prohibit a parental information and resource 
     center from--
       ``(1) having its employees or agents meet with a parent at 
     a site that is not on school grounds; or
       ``(2) working with another agency that serves children.
       ``(e) Parental Rights.--Notwithstanding any other provision 
     of this subpart--
       ``(1) no person (including a parent who educates a child at 
     home, a public school parent, or a private school parent) 
     shall be required to participate in any program of parent 
     education or developmental screening under this subpart; and
       ``(2) no program or center assisted under this subpart 
     shall take any action that infringes in any manner on the 
     right of a parent to direct the education of their children.
       ``(f) Continuation of Awards.--The Secretary shall use 
     funds made available under this subpart to continue to make 
     grant or contract payments to each entity that was awarded a 
     multiyear grant or contract under title IV of the Goals 2000: 
     Educate America Act (as such title was in effect on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001) for the duration of the grant or contract award.

     ``SEC. 5566. LOCAL FAMILY INFORMATION CENTERS.

       ``(a) In General.--If the amount made available to carry 
     out this subpart for a fiscal year is more than $50,000,000, 
     the Secretary is authorized to award 50 percent of the amount 
     that exceeds $50,000,000 as grants to, and enter into 
     contracts and cooperative agreements with, local nonprofit 
     parent organizations to enable the organizations to support 
     local family information centers that help ensure that 
     parents of students in elementary schools and secondary 
     schools assisted under this subpart have the training, 
     information, and support the parents need to enable the 
     parents to participate effectively in their children's early 
     childhood education, in their children's elementary and 
     secondary education, and in helping their children to meet 
     challenging State academic content and student academic 
     achievement standards.
       ``(b) Local Nonprofit Parent Organization Defined.--In this 
     section, the term `local nonprofit parent organization' means 
     a private nonprofit organization (other than an institution 
     of higher education) that--
       ``(1) has a demonstrated record of working with low-income 
     individuals and parents;
       ``(2)(A) has a board of directors, the majority of whom are 
     parents of students in elementary schools and secondary 
     schools assisted under part A of title I and located in the 
     geographic area to be served by a local family information 
     center; or
       ``(B) has a special governing committee to direct and 
     implement a local family information center, a majority of 
     the members of whom are parents of students in schools 
     assisted under part A of title I; and
       ``(3) is located in a community with elementary schools and 
     secondary schools that receive funds under part A of title I, 
     and is accessible to the families of students in those 
     schools.

               ``Subpart 17--Combatting Domestic Violence

     ``SEC. 5571. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR 
                   WITNESSING DOMESTIC VIOLENCE ON ELEMENTARY AND 
                   SECONDARY SCHOOL CHILDREN.

       ``(a) Definitions.--In this section:
       ``(1) Domestic violence.--The term `domestic violence' has 
     the meaning given that term in section 2003 of the Omnibus 
     Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-
     2).
       ``(2) Expert.--The term `expert' means--
       ``(A) an expert on domestic violence, sexual assault, and 
     child abuse from the educational, legal, youth, mental 
     health, substance abuse, or victim advocacy field; and
       ``(B) a State or local domestic violence coalition or 
     community-based youth organization.
       ``(3) Witness domestic violence.--
       ``(A) In general.--The term `witness domestic violence' 
     means to witness--
       ``(i) an act of domestic violence that constitutes actual 
     or attempted physical assault; or
       ``(ii) a threat or other action that places the victim in 
     fear of domestic violence.
       ``(B) Witness.--In subparagraph (A), the term `witness' 
     means--
       ``(i) to directly observe an act, threat, or action 
     described in subparagraph (A), or the aftermath of that act, 
     threat, or action; or
       ``(ii) to be within earshot of an act, threat, or action 
     described in subparagraph (A), or the aftermath of that act, 
     threat, or action.
       ``(b) Grants Authorized.--
       ``(1) Authority.--The Secretary is authorized to award 
     grants to local educational agencies that work with experts 
     to enable the elementary schools and secondary schools served 
     by the local educational agency--
       ``(A) to provide training to school administrators, 
     faculty, and staff, with respect to issues concerning 
     children who experience domestic violence in dating 
     relationships or who witness domestic violence, and the 
     impact of the violence on the children;
       ``(B) to provide educational programming for students 
     regarding domestic violence and the impact of experiencing or 
     witnessing domestic violence on children;
       ``(C) to provide support services for students and school 
     personnel to develop and strengthen effective prevention and 
     intervention strategies with respect to issues concerning 
     children who experience domestic violence in dating 
     relationships or who witness domestic violence, and the 
     impact of the violence on the children; and
       ``(D) to develop and implement school system policies 
     regarding appropriate and safe responses to, identification 
     of, and referral procedures for, students who are 
     experiencing or witnessing domestic violence.
       ``(2) Award basis.--The Secretary is authorized to award 
     grants under this section--
       ``(A) on a competitive basis; and
       ``(B) in a manner that ensures that such grants are 
     equitably distributed among local educational agencies 
     located in rural, urban, and suburban areas.
       ``(3) Policy dissemination.--The Secretary shall 
     disseminate to local educational agencies any Department 
     policy guidance regarding the prevention of domestic violence 
     and the impact on children of experiencing or witnessing 
     domestic violence.
       ``(c) Uses of Funds.--Funds made available to carry out 
     this subpart may be used for one or more of the following 
     purposes:
       ``(1) To provide training for elementary school and 
     secondary school administrators, faculty, and staff that 
     addresses issues concerning elementary school and secondary 
     school students who experience domestic violence in dating 
     relationships or who witness domestic violence, and the 
     impact of such violence on those students.
       ``(2) To provide education programs for elementary school 
     and secondary school students that are developmentally 
     appropriate for the students' grade levels and are designed 
     to meet any unique cultural and language needs of the 
     particular student populations.
       ``(3) To develop and implement elementary school and 
     secondary school system policies regarding--
       ``(A) appropriate and safe responses to, identification of, 
     and referral procedures for, students who are experiencing or 
     witnessing domestic violence; and
       ``(B) to develop and implement policies on reporting and 
     referral procedures for those students.
       ``(4) To provide the necessary human resources to respond 
     to the needs of elementary school and secondary school 
     students and personnel who are faced with the issue of 
     domestic violence, such as a resource person who is either 
     on-site or on-call and who is an expert.
       ``(5) To provide media center materials and educational 
     materials to elementary schools and secondary schools that 
     address issues concerning children who experience domestic 
     violence in dating relationships or who witness domestic 
     violence, and the impact of the violence on those children.
       ``(6) To conduct evaluations to assess the impact of 
     programs and policies assisted under this subpart in order to 
     enhance the development of the programs.
       ``(d) Confidentiality.--Policies, programs, training 
     materials, and evaluations developed and implemented under 
     subsection (c) shall address issues of safety and 
     confidentiality for the victim and the victim's family in a 
     manner consistent with applicable Federal and State laws.
       ``(e) Application.--To be eligible for a grant under this 
     section for a fiscal year, a local educational agency, in 
     consultation with an expert, shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require. The 
     application shall include each of the following:
       ``(1) A description of the need for funds provided under 
     the grant and the plan for implementation of any of the 
     activities described in subsection (c).
       ``(2) A description of how the experts will work in 
     consultation and collaboration with the local educational 
     agency.
       ``(3) Measurable objectives for, and expected results from, 
     the use of the funds provided under the grant.
       ``(4) Provisions for appropriate remuneration for 
     collaborating partners.

            ``Subpart 18--Healthy, High-Performance Schools

     ``SEC. 5581. GRANT PROGRAM AUTHORIZED.

       ``The Secretary, in consultation with the Secretary of 
     Energy and the Administrator of the Environmental Protection 
     Agency, is authorized to award grants to State educational 
     agencies to permit such State educational agencies to carry 
     out section 5582.

     ``SEC. 5582. STATE USES OF FUNDS.

       ``(a) Subgrants.--
       ``(1) In general.--A State educational agency receiving a 
     grant under this subpart shall use funds made available under 
     the grant to award subgrants to local educational agencies to 
     permit such local educational agencies to carry out the 
     activities described in section 5583.
       ``(2) Limitation.--A State educational agency shall award 
     subgrants under this subsection to local educational agencies 
     that are the neediest, as determined by the State, and that 
     have made a commitment to develop healthy, high-performance 
     school buildings in accordance with the plan developed and 
     approved under paragraph (3)(A).
       ``(3) Implementation.--
       ``(A) Plans.--A State educational agency shall award 
     subgrants under this subsection only to local educational 
     agencies that, in consultation with the State educational 
     agency and State agencies with responsibilities relating to 
     energy and health, have developed plans that the State 
     educational agency determines to be feasible and appropriate 
     in order to achieve the purposes for which the subgrants are 
     made.

[[Page 25742]]

       ``(B) Supplementing grant funds.--The State educational 
     agency shall encourage local educational agencies that 
     receive subgrants under this subsection to supplement their 
     subgrant funds with funds from other sources in order to 
     implement their plans.
       ``(b) Administration.--A State educational agency receiving 
     a grant under this subpart shall use the grant funds made 
     available under this subpart for one or more of the 
     following:
       ``(1) To evaluate compliance by local educational agencies 
     with the requirements of this subpart.
       ``(2) To distribute information and materials on healthy, 
     high-performance school buildings for both new and existing 
     facilities.
       ``(3) To organize and conduct programs for school board 
     members, school district personnel, and others to disseminate 
     information on healthy, high-performance school buildings.
       ``(4) To provide technical services and assistance in 
     planning and designing healthy, high-performance school 
     buildings.
       ``(5) To collect and monitor information pertaining to 
     healthy, high-performance school building projects.

     ``SEC. 5583. LOCAL USES OF FUNDS.

       ``(a) In General.--A local educational agency that receives 
     a subgrant under section 5582(a) shall use the subgrant funds 
     to plan and prepare for healthy, high-performance school 
     building projects that--
       ``(1) reduce energy use to at least 30 percent below that 
     of a school constructed in compliance with standards 
     prescribed in chapter 8 of the 2000 International Energy 
     Conservation Code, or a similar State code intended to 
     achieve substantially equivalent results;
       ``(2) meet Federal and State health and safety codes; and
       ``(3) support healthful, energy efficient, and 
     environmentally sound practices.
       ``(b) Use of Funds.--A local educational agency that 
     receives a subgrant under section 5582(a) shall use funds for 
     one or more of the following:
       ``(1) To develop a comprehensive energy audit of the energy 
     consumption characteristics of a building and the need for 
     additional energy conservation measures necessary to allow 
     schools to meet the guidelines set out in subsection (a).
       ``(2) To produce a comprehensive analysis of building 
     strategies, designs, materials, and equipment that--
       ``(A) are cost effective, produce greater energy 
     efficiency, and enhance indoor air quality; and
       ``(B) can be used when conducting school construction and 
     renovation or purchasing materials and equipment.
       ``(3) To obtain research and provide technical services and 
     assistance in planning and designing healthy, high-
     performance school buildings, including developing a timeline 
     for implementation of such plans.

     ``SEC. 5584. REPORT TO CONGRESS.

       ``The Secretary shall conduct a biennial review of State 
     actions implementing this subpart and carrying out the plans 
     developed under this subpart through State and local funding, 
     and shall submit a report to Congress on the results of such 
     reviews.

     ``SEC. 5585. LIMITATIONS.

       ``No funds received under this subpart may be used for any 
     of the following:
       ``(1) Payment of maintenance of costs in connection with 
     any projects constructed in whole or in part with Federal 
     funds provided under this subpart.
       ``(2) Construction, renovation, or repair of school 
     facilities.
       ``(3) Construction, renovation, repair, or acquisition of a 
     stadium or other facility primarily used for athletic 
     contests or exhibitions, or other events for which admission 
     is charged to the general public.

     ``SEC. 5586. HEALTHY, HIGH-PERFORMANCE SCHOOL BUILDING 
                   DEFINED.

       ``In this subpart, the term `healthy, high-performance 
     school building' means a school building in which the design, 
     construction, operation, and maintenance--
       ``(1) use energy-efficient and affordable practices and 
     materials;
       ``(2) are cost-effective;
       ``(3) enhance indoor air quality; and
       ``(4) protect and conserve water.

   ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

     ``SEC. 5591. GRANT PROGRAM AUTHORIZED.

       ``The Secretary is authorized to award grants to State 
     educational agencies, from allotments made under section 
     5593, to enable the State educational agencies to award 
     subgrants to local educational agencies to pay for capital 
     expenses in accordance with this subpart.

     ``SEC. 5592. USES OF FUNDS.

       ``A local educational agency that receives a subgrant under 
     this subpart shall use the subgrant funds only to pay for 
     capital expenses incurred in providing equitable services for 
     private school students under section 1120.

     ``SEC. 5593. ALLOTMENTS TO STATES.

       ``From the funds made available to carry out this subpart 
     for a fiscal year, the Secretary shall allot to each State an 
     amount that bears the same ratio to the funds made available 
     as the number of private school students who received 
     services under part A of title I in the State in the most 
     recent year for which data, satisfactory to the Secretary, 
     are available bears to the number of such students in all 
     States in such year.

     ``SEC. 5594. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Applications.--A local educational agency that 
     desires to receive a subgrant under this subpart shall submit 
     an application to the State educational agency involved at 
     such time, in such manner, and containing such information as 
     the State educational agency may require.
       ``(b) Distribution.--A State educational agency shall award 
     subgrants to local educational agencies within the State 
     based on the degree of need set forth in their respective 
     applications submitted under subsection (a).

     ``SEC. 5595. CAPITAL EXPENSES DEFINED.

       ``In this subpart, the term `capital expenses' means--
       ``(1) expenditures for noninstructional goods and services, 
     such as the purchase, lease, or renovation of real and 
     personal property, including mobile educational units and 
     leasing of neutral sites or spaces;
       ``(2) insurance and maintenance costs;
       ``(3) transportation; and
       ``(4) other comparable goods and services.

     ``SEC. 5596. TERMINATION.

       ``The authority provided by this subpart terminates 
     effective October 1, 2003.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
           Agencies Impacted by Federal Property Acquisition

     ``SEC. 5601. RESERVATION.

       ``The Secretary is authorized to provide additional 
     assistance to meet special circumstances relating to the 
     provision of education in local educational agencies eligible 
     to receive assistance under section 8002.

     ``SEC. 5602. ELIGIBILITY.

       ``A local educational agency is eligible to receive 
     additional assistance under this subpart only if such 
     agency--
       ``(1) received a payment under both section 8002 and 
     section 8003(b) for fiscal year 1996 and is eligible to 
     receive payments under those sections for the year of 
     application;
       ``(2) provided a free public education to children 
     described under subparagraphs (A), (B), or (D) of section 
     8003(a)(1);
       ``(3) had a military installation located within the 
     geographic boundaries of the local educational agency that 
     was closed as a result of base closure or realignment and, at 
     the time at which the agency is applying for a payment under 
     this subpart, the agency does not have a military 
     installation located within its geographic boundaries;
       ``(4) remains responsible for the free public education of 
     children residing in housing located on Federal property 
     within the boundaries of the closed military installation but 
     whose parents are on active duty in the uniformed services 
     and assigned to a military activity located within the 
     boundaries of an adjoining local educational agency; and
       ``(5) demonstrates to the satisfaction of the Secretary 
     that such agency's per-pupil revenue derived from local 
     sources for current expenditures is not less than that 
     revenue for the preceding fiscal year.

     ``SEC. 5603. MAXIMUM AMOUNT.

       ``(a) Maximum Amount.--The maximum amount that a local 
     educational agency is eligible to receive under this subpart 
     for any fiscal year, when combined with its payment under 
     section 8002(b), shall not be more than 50 percent of the 
     maximum amount determined under section 8002(b).
       ``(b) Insufficient Funds.--If funds appropriated under 
     section 5401 are insufficient to pay the amount determined 
     under subsection (a), the Secretary shall ratably reduce the 
     payment to each local education agency eligible under this 
     subpart.
       ``(c) Excess Funds.--If funds appropriated under section 
     5401 are in excess of the amount determined under subsection 
     (a), the Secretary shall ratably distribute any excess funds 
     to all local educational agencies eligible for payment under 
     section 8002(b).

              ``Subpart 21--Women's Educational Equity Act

     ``SEC. 5611. SHORT TITLE AND FINDINGS.

       ``(a) Short Title.--This subpart may be cited as the 
     `Women's Educational Equity Act of 2001'.
       ``(b) Findings.--Congress finds that--
       ``(1) since the enactment of title IX of the Education 
     Amendments of 1972, women and girls have made strides in 
     educational achievement and in their ability to avail 
     themselves of educational opportunities;
       ``(2) because of funding provided under the Women's 
     Educational Equity Act, more curricula, training, and other 
     educational materials concerning educational equity for women 
     and girls are available for national dissemination;
       ``(3) teaching and learning practices in the United States 
     are frequently inequitable as such practices relate to women 
     and girls, for example--
       ``(A) sexual harassment, particularly that experienced by 
     girls, undermines the ability of schools to provide a safe 
     and equitable learning or workplace environment;
       ``(B) classroom textbooks and other educational materials 
     do not sufficiently reflect the experiences, achievements, or 
     concerns of women and, in most cases, are not written by 
     women or persons of color;
       ``(C) girls do not take as many mathematics and science 
     courses as boys, girls lose confidence in their mathematics 
     and science ability as girls move through adolescence, and 
     there are few women role models in the sciences; and
       ``(D) pregnant and parenting teenagers are at high risk for 
     dropping out of school and existing

[[Page 25743]]

     dropout prevention programs do not adequately address the 
     needs of such teenagers;
       ``(4) efforts to improve the quality of public education 
     also must include efforts to ensure equal access to quality 
     education programs for all women and girls;
       ``(5) Federal support should address not only research and 
     development of innovative model curricula and teaching and 
     learning strategies to promote gender equity, but should also 
     assist schools and local communities implement gender 
     equitable practices;
       ``(6) Federal assistance for gender equity must be tied to 
     systemic reform, involve collaborative efforts to implement 
     effective gender practices at the local level, and encourage 
     parental participation; and
       ``(7) excellence in education, high educational 
     achievements and standards, and the full participation of 
     women and girls in American society, cannot be achieved 
     without educational equity for women and girls.

     ``SEC. 5612. STATEMENT OF PURPOSES.

       ``It is the purpose of this subpart--
       ``(1) to promote gender equity in education in the United 
     States;
       ``(2) to provide financial assistance to enable educational 
     agencies and institutions to meet the requirements of title 
     IX of the Educational Amendments of 1972; and
       ``(3) to promote equity in education for women and girls 
     who suffer from multiple forms of discrimination based on 
     sex, race, ethnic origin, limited English proficiency, 
     disability, or age.

     ``SEC. 5613. PROGRAMS AUTHORIZED.

       ``(a) In General.--The Secretary is authorized--
       ``(1) to promote, coordinate, and evaluate gender equity 
     policies, programs, activities, and initiatives in all 
     Federal education programs and offices;
       ``(2) to develop, maintain, and disseminate materials, 
     resources, analyses, and research relating to education 
     equity for women and girls;
       ``(3) to provide information and technical assistance to 
     assure the effective implementation of gender equity 
     programs;
       ``(4) to coordinate gender equity programs and activities 
     with other Federal agencies with jurisdiction over education 
     and related programs;
       ``(5) to assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities related to education equity for women and girls; 
     and
       ``(6) to perform any other activities consistent with 
     achieving the purposes of this subpart.
       ``(b) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to, and enter into contracts and cooperative 
     agreements with, public agencies, private nonprofit agencies, 
     organizations, institutions, student groups, community 
     groups, and individuals, for a period not to exceed 4 years, 
     to--
       ``(A) provide grants to develop model equity programs; and
       ``(B) provide funds for the implementation of equity 
     programs in schools throughout the Nation.
       ``(2) Support and technical assistance.--To achieve the 
     purposes of this subpart, the Secretary is authorized to 
     provide support and technical assistance--
       ``(A) to implement effective gender-equity policies and 
     programs at all educational levels, including--
       ``(i) assisting educational agencies and institutions to 
     implement policies and practices to comply with title IX of 
     the Education Amendments of 1972;
       ``(ii) training for teachers, counselors, administrators, 
     and other school personnel, especially preschool and 
     elementary school personnel, in gender equitable teaching and 
     learning practices;
       ``(iii) leadership training for women and girls to develop 
     professional and marketable skills to compete in the global 
     marketplace, improve self-esteem, and benefit from exposure 
     to positive role models;
       ``(iv) school-to-work transition programs, guidance and 
     counseling activities, and other programs to increase 
     opportunities for women and girls to enter a technologically 
     demanding workplace and, in particular, to enter highly 
     skilled, high paying careers in which women and girls have 
     been underrepresented;
       ``(v) enhancing educational and career opportunities for 
     those women and girls who suffer multiple forms of 
     discrimination, based on sex, and on race, ethnic origin, 
     limited English proficiency, disability, socioeconomic 
     status, or age;
       ``(vi) assisting pregnant students and students rearing 
     children to remain in or to return to secondary school, 
     graduate, and prepare their preschool children to start 
     school;
       ``(vii) evaluating exemplary model programs to assess the 
     ability of such programs to advance educational equity for 
     women and girls;
       ``(viii) introduction into the classroom of textbooks, 
     curricula, and other materials designed to achieve equity for 
     women and girls;
       ``(ix) programs and policies to address sexual harassment 
     and violence against women and girls and to ensure that 
     educational institutions are free from threats to the safety 
     of students and personnel;
       ``(x) nondiscriminatory tests of aptitude and achievement 
     and of alternative assessments that eliminate biased 
     assessment instruments from use;
       ``(xi) programs to increase educational opportunities, 
     including higher education, vocational training, and other 
     educational programs for low-income women, including 
     underemployed and unemployed women, and women receiving 
     assistance under a State program funded under part A of title 
     IV of the Social Security Act;
       ``(xii) programs to improve representation of women in 
     educational administration at all levels; and
       ``(xiii) planning, development, and initial implementation 
     of--

       ``(I) comprehensive institutionwide or districtwide 
     evaluation to assess the presence or absence of gender equity 
     in educational settings;

       ``(II) comprehensive plans for implementation of equity 
     programs in State educational agencies and local educational 
     agencies and institutions of higher education, including 
     community colleges; and
       ``(III) innovative approaches to school-community 
     partnerships for educational equity;

       ``(B) for research and development, which shall be 
     coordinated with each of the research institutes of the 
     Office of Educational Research and Improvement to avoid 
     duplication of research efforts, designed to advance gender 
     equity nationwide and to help make policies and practices in 
     educational agencies and institutions, and local communities, 
     gender equitable, including--
       ``(i) research and development of innovative strategies and 
     model training programs for teachers and other education 
     personnel;
       ``(ii) the development of high-quality and challenging 
     assessment instruments that are nondiscriminatory;
       ``(iii) the development and evaluation of model curricula, 
     textbooks, software, and other educational materials to 
     ensure the absence of gender stereotyping and bias;
       ``(iv) the development of instruments and procedures that 
     employ new and innovative strategies to assess whether 
     diverse educational settings are gender equitable;
       ``(v) the development of instruments and strategies for 
     evaluation, dissemination, and replication of promising or 
     exemplary programs designed to assist local educational 
     agencies in integrating gender equity in their educational 
     policies and practices;
       ``(vi) updating high-quality educational materials 
     previously developed through awards made under this subpart;
       ``(vii) the development of policies and programs to address 
     and prevent sexual harassment and violence to ensure that 
     educational institutions are free from threats to safety of 
     students and personnel;
       ``(viii) the development and improvement of programs and 
     activities to increase opportunity for women, including 
     continuing educational activities, vocational education, and 
     programs for low-income women, including underemployed and 
     unemployed women, and women receiving assistance under the 
     State program funded under part A of title IV of the Social 
     Security Act; and
       ``(ix) the development of guidance and counseling 
     activities, including career education programs, designed to 
     ensure gender equity.

     ``SEC. 5614. APPLICATIONS.

       ``An application under this subpart shall--
       ``(1) set forth policies and procedures that will ensure a 
     comprehensive evaluation of the activities assisted under 
     this subpart, including an evaluation of the practices, 
     policies, and materials used by the applicant and an 
     evaluation or estimate of the continued significance of the 
     work of the project following completion of the award period;
       ``(2) demonstrate how the applicant will address 
     perceptions of gender roles based on cultural differences or 
     stereotypes;
       ``(3) for applications for assistance under section 
     5613(b)(1), demonstrate how the applicant will foster 
     partnerships and, where applicable, share resources with 
     State educational agencies, local educational agencies, 
     institutions of higher education, community-based 
     organizations (including organizations serving women), 
     parent, teacher, and student groups, businesses, or other 
     recipients of Federal educational funding which may include 
     State literacy resource centers;
       ``(4) for applications for assistance under section 
     5613(b)(1), demonstrate how parental involvement in the 
     project will be encouraged; and
       ``(5) for applications for assistance under section 
     5613(b)(1), describe plans for continuation of the activities 
     assisted under this subpart with local support following 
     completion of the grant period and termination of Federal 
     support under this subpart.

     ``SEC. 5615. CRITERIA AND PRIORITIES.

       ``(a) Criteria and Priorities.--
       ``(1) In general.--The Secretary shall establish separate 
     criteria and priorities for awards under paragraphs (1) and 
     (2) of section 5613(b) to ensure that funds under this 
     subpart are used for programs that most effectively will 
     achieve the purposes of this subpart.
       ``(2) Criteria.--The criteria described in paragraph (1) 
     may include the extent to which the activities assisted under 
     this subpart--
       ``(A) address the needs of women and girls of color and 
     women and girls with disabilities;
       ``(B) meet locally defined and documented educational 
     equity needs and priorities, including compliance with title 
     IX of the Education Amendments of 1972;
       ``(C) are a significant component of a comprehensive plan 
     for educational equity and compliance with title IX of the 
     Education Amendments of 1972 in the particular school 
     district, institution of higher education, vocational-
     technical institution, or other educational agency or 
     institution; and
       ``(D) implement an institutional change strategy with long-
     term impact that will continue as a central activity of the 
     applicant after the grant under this subpart has terminated.

[[Page 25744]]

       ``(b) Priorities.--In awarding grants under this subpart, 
     the Secretary may give special consideration to 
     applications--
       ``(1) submitted by applicants that have not received 
     assistance under this subpart or this subpart's predecessor 
     authorities;
       ``(2) for projects that will contribute significantly to 
     directly improving teaching and learning practices in the 
     local community; and
       ``(3) for projects that will--
       ``(A) provide for a comprehensive approach to enhancing 
     gender equity in educational institutions and agencies;
       ``(B) draw on a variety of resources, including the 
     resources of local educational agencies, community-based 
     organizations, institutions of higher education, and private 
     organizations;
       ``(C) implement a strategy with long-term impact that will 
     continue as a central activity of the applicant after the 
     grant under this subpart has terminated;
       ``(D) address issues of national significance that can be 
     duplicated; and
       ``(E) address the educational needs of women and girls who 
     suffer multiple or compound discrimination based on sex and 
     on race, ethnic origin, disability, or age.
       ``(c) Special Rule.--To the extent feasible, the Secretary 
     shall ensure that grants awarded under this subpart for each 
     fiscal year address--
       ``(1) all levels of education, including preschool, 
     elementary and secondary education, higher education, 
     vocational education, and adult education;
       ``(2) all regions of the United States; and
       ``(3) urban, rural, and suburban educational institutions.
       ``(d) Coordination.--Research activities supported under 
     this subpart--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out with the Office of 
     Educational Research and Improvement.
       ``(e) Limitation.--Nothing in this subpart shall be 
     construed as prohibiting men and boys from participating in 
     any programs or activities assisted with funds under this 
     subpart.

     ``SEC. 5616. REPORT.

       ``Not later than January 1, 2006, the Secretary shall 
     submit to the President and Congress a report on the status 
     of educational equity for girls and women in the Nation.

     ``SEC. 5617. ADMINISTRATION.

       ``(a) Evaluation and Dissemination.--Not later than January 
     1, 2005, the Secretary shall evaluate and disseminate 
     materials and programs developed under this subpart and shall 
     report to Congress regarding such evaluation materials and 
     programs.
       ``(b) Program Operations.--The Secretary shall ensure that 
     the activities assisted under this subpart are administered 
     within the Department by a person who has recognized 
     professional qualifications and experience in the field of 
     gender equity education.

     ``SEC. 5618. AMOUNT.

       ``From amounts made available to carry out this subpart for 
     a fiscal year, not less than \2/3\ of such amount shall be 
     used to carry out the activities described in section 
     5613(b)(1).

     SEC. 502. CONTINUATION OF AWARDS.

       (a) In general.--Notwithstanding any other provision of 
     this Act or the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6301 et seq.), in the case of any agency or 
     consortium that was awarded a grant under section 5111 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7211) or any person or agency that was awarded a contract or 
     grant under part B, D, or E of title X of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 
     et seq., 8131 et seq.), prior to the date of enactment of 
     this Act, the Secretary of Education shall continue to 
     provide funds in accordance with the terms of such award 
     until the date on which the award period terminates under 
     such terms.
       (b) Special Rule.--Notwithstanding any other provision of 
     this Act, any person or agency that was awarded or entered 
     into a grant, contract, or cooperative agreement under part B 
     of title V of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7231 et seq.), prior to the date of enactment 
     of this Act shall continue to receive funds in accordance 
     with the terms of such grant, contract, or agreement until 
     the date on which the grant, contract, or agreement period 
     terminates under such terms.
                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

     SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.

       Title VI (20 U.S.C. 7301 et seq.) is amended to read as 
     follows:
               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                      ``Subpart 1--Accountability

     ``SEC. 6111. GRANTS FOR STATE ASSESSMENTS AND RELATED 
                   ACTIVITIES.

       ``The Secretary shall make grants to States to enable the 
     States--
       ``(1) to pay the costs of the development of the additional 
     State assessments and standards required by section 1111(b), 
     which may include the costs of working in voluntary 
     partnerships with other States, at the sole discretion of 
     each such State; and
       ``(2) if a State has developed the assessments and 
     standards required by section 1111(b), to administer those 
     assessments or to carry out other activities described in 
     this subpart and other activities related to ensuring that 
     the State's schools and local educational agencies are held 
     accountable for results, such as the following:
       ``(A) Developing challenging State academic content and 
     student academic achievement standards and aligned 
     assessments in academic subjects for which standards and 
     assessments are not required by section 1111(b).
       ``(B) Developing or improving assessments of English 
     language proficiency necessary to comply with section 
     1111(b)(7).
       ``(C) Ensuring the continued validity and reliability of 
     State assessments.
       ``(D) Refining State assessments to ensure their continued 
     alignment with the State's academic content standards and to 
     improve the alignment of curricula and instructional 
     materials.
       ``(E) Developing multiple measures to increase the 
     reliability and validity of State assessment systems.
       ``(F) Strengthening the capacity of local educational 
     agencies and schools to provide all students the opportunity 
     to increase educational achievement, including carrying out 
     professional development activities aligned with State 
     student academic achievement standards and assessments.
       ``(G) Expanding the range of accommodations available to 
     students with limited English proficiency and students with 
     disabilities to improve the rates of inclusion of such 
     students, including professional development activities 
     aligned with State academic achievement standards and 
     assessments.
       ``(H) Improving the dissemination of information on student 
     achievement and school performance to parents and the 
     community, including the development of information and 
     reporting systems designed to identify best educational 
     practices based on scientifically based research or to assist 
     in linking records of student achievement, length of 
     enrollment, and graduation over time.

     ``SEC. 6112. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

       ``(a) Grant Program Authorized.--From funds made available 
     to carry out this subpart, the Secretary shall award, on a 
     competitive basis, grants to State educational agencies that 
     have submitted an application at such time, in such manner, 
     and containing such information as the Secretary may require, 
     which demonstrate to the satisfaction of the Secretary, that 
     the requirements of this section will be met, for the 
     following:
       ``(1) To enable States (or consortia of States) to 
     collaborate with institutions of higher education, other 
     research institutions, or other organizations to improve the 
     quality, validity, and reliability of State academic 
     assessments beyond the requirements for such assessments 
     described in section 1111(b)(3).
       ``(2) To measure student academic achievement using 
     multiple measures of student academic achievement from 
     multiple sources.
       ``(3) To chart student progress over time.
       ``(4) To evaluate student academic achievement through the 
     development of comprehensive academic assessment instruments, 
     such as performance and technology-based academic 
     assessments.
       ``(b) Application.--Each State wishing to apply for funds 
     under this section shall include in its State plan under part 
     A of title I such information as the Secretary may require.
       ``(c) Annual Report.--Each State educational agency 
     receiving a grant under this section shall submit an annual 
     report to the Secretary describing its activities, and the 
     result of those activities, under the grant.

     ``SEC. 6113. FUNDING.

       ``(a) Authorization of Appropriations.--
       ``(1) National assessment of educational progress.--For the 
     purpose of administering the State assessments under the 
     National Assessment of Educational Progress, there are 
     authorized to be appropriated $72,000,000 for fiscal year 
     2002, and such sums as may be necessary for each of the 5 
     succeeding fiscal years.
       ``(2) State assessments and related activities.--For the 
     purpose of carrying out this subpart, there are authorized to 
     be appropriated $490,000,000 for fiscal year 2002, and such 
     sums as may be necessary for each of the 5 succeeding fiscal 
     years.
       ``(b) Allotment of Appropriated Funds.--
       ``(1) In general.--From amounts made available for each 
     fiscal year under subsection (a)(2) that are equal to or less 
     than the amount described in section 1111(b)(3)(D) 
     (hereinafter in this subsection referred to as the `trigger 
     amount'), the Secretary shall--
       ``(A) reserve \1/2\ of 1 percent for the Bureau of Indian 
     Affairs;
       ``(B) reserve \1/2\ of 1 percent for the outlying areas; 
     and
       ``(C) from the remainder, allocate to each State an amount 
     equal to--
       ``(i) $3,000,000; and
       ``(ii) with respect to any amounts remaining after the 
     allocation is made under clause (i), an amount that bears the 
     same relationship to such total remaining amounts as the 
     number of students ages 5 through 17 in the State (as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data) bears to the total number of such students 
     in all States.
       ``(2) Remainder.--Any amounts remaining for a fiscal year 
     after the Secretary carries out paragraph (1) shall be made 
     available as follows:

[[Page 25745]]

       ``(A)(i) To award funds under section 6112 to States 
     according to the quality, needs, and scope of the State 
     application under that section.
       ``(ii) In determining the grant amount under clause (i), 
     the Secretary shall ensure that a State's grant shall include 
     an amount that bears the same relationship to the total funds 
     available under this paragraph for the fiscal year as the 
     number of students ages 5 through 17 in the State (as 
     determined by the Secretary on the basis of the most recent 
     satisfactory data) bears to the total number of such students 
     in all States.
       ``(B) Any amounts remaining after the Secretary awards 
     funds under subparagraph (A) shall be allocated to each State 
     that did not receive a grant under such subparagraph, in an 
     amount that bears the same relationship to the total funds 
     available under this subparagraph as the number of students 
     ages 5 through 17 in the State (as determined by the 
     Secretary on the basis of the most recent satisfactory data) 
     bears to the total number of such students in all States.
       ``(c) State Defined.--In this section, the term `State' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

 ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

     ``SEC. 6121. SHORT TITLE.

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

     ``SEC. 6122. PURPOSE.

       ``The purpose of this subpart is to allow States and local 
     educational agencies the flexibility--
       ``(1) to target Federal funds to Federal programs that most 
     effectively address the unique needs of States and 
     localities; and
       ``(2) to transfer Federal funds allocated to other 
     activities to allocations for certain activities authorized 
     under title I.

     ``SEC. 6123. TRANSFERABILITY OF FUNDS.

       ``(a) Transfers by States.--
       ``(1) In general.--In accordance with this subpart, a State 
     may transfer not more than 50 percent of the 
     nonadministrative State funds (including funds transferred 
     under paragraph (2)) allotted to the State for use for State-
     level activities under the following provisions for a fiscal 
     year to one or more of the State's allotments for such fiscal 
     year under any other of such provisions:
       ``(A) Section 2113(a)(3).
       ``(B) Section 2412(a)(1).
       ``(C) Subsections (a)(1) (with the agreement of the 
     Governor) and (c)(1) of section 4112 and section 4202(c)(3).
       ``(D) Section 5112(b).
       ``(2) Additional funds for title i.--In accordance with 
     this subpart and subject to the 50 percent limitation 
     described in paragraph (1), a State may transfer any funds 
     allotted to the State under a provision listed in paragraph 
     (1) to its allotment under title I.
       ``(b) Transfers by Local Educational Agencies.--
       ``(1) Authority to transfer funds.--
       ``(A) In general.--In accordance with this subpart, a local 
     educational agency (except a local educational agency 
     identified for improvement under section 1116(c) or subject 
     to corrective action under section 1116(c)(9)) may transfer 
     not more than 50 percent of the funds allocated to it 
     (including funds transferred under subparagraph (C)) under 
     each of the provisions listed in paragraph (2) for a fiscal 
     year to one or more of its allocations for such fiscal year 
     under any other provision listed in paragraph (2).
       ``(B) Agencies identified for improvement.--In accordance 
     with this subpart, a local educational agency identified for 
     improvement under section 1116(c) may transfer not more than 
     30 percent of the funds allocated to it (including funds 
     transferred under subparagraph (C)) under each of the 
     provisions listed in paragraph (2) for a fiscal year--
       ``(i) to its allocation for school improvement for such 
     fiscal year under section 1003; or
       ``(ii) to any other allocation for such fiscal year if such 
     transferred funds are used only for local educational agency 
     improvement activities consistent with section 1116(c).
       ``(C) Additional funds for title i.--In accordance with 
     this subpart and subject to the percentage limitation 
     described in subparagraph (A) or (B), as applicable, a local 
     educational agency may transfer funds allocated to such 
     agency under any of the provisions listed in paragraph (2) 
     for a fiscal year to its allocation for part A of title I for 
     that fiscal year.
       ``(2) Applicable provisions.--A local educational agency 
     may transfer funds under subparagraph (A), (B), or (C) of 
     paragraph (1) from allocations made under each of the 
     following provisions:
       ``(A) Section 2121.
       ``(B) Section 2412(a)(2)(A).
       ``(C) Section 4112(b)(1).
       ``(D) Section 5112(a).
       ``(c) No Transfer of Title I Funds.--A State or a local 
     educational agency may not transfer under this subpart to any 
     other program any funds allotted or allocated to it for part 
     A of title I.
       ``(d) Modification of Plans and Applications; 
     Notification.--
       ``(1) State transfers.--Each State that makes a transfer of 
     funds under this section shall--
       ``(A) modify, to account for such transfer, each State 
     plan, or application submitted by the State, to which such 
     funds relate;
       ``(B) not later than 30 days after the date of such 
     transfer, submit a copy of such modified plan or application 
     to the Secretary; and
       ``(C) not later than 30 days before the effective date of 
     such transfer, notify the Secretary of such transfer.
       ``(2) Local transfers.--Each local educational agency that 
     makes a transfer of funds under this section shall--
       ``(A) modify, to account for such transfer, each local 
     plan, or application submitted by the agency, to which such 
     funds relate;
       ``(B) not later than 30 days after the date of such 
     transfer, submit a copy of such modified plan or application 
     to the State; and
       ``(C) not later than 30 days before the effective date of 
     such transfer, notify the State of such transfer.
       ``(e) Applicable Rules.--
       ``(1) In general.--Except as otherwise provided in this 
     subpart, funds transferred under this section are subject to 
     each of the rules and requirements applicable to the funds 
     under the provision to which the transferred funds are 
     transferred.
       ``(2) Consultation.--Each State educational agency or local 
     educational agency that transfers funds under this section 
     shall conduct consultations in accordance with section 9501, 
     if such transfer transfers funds from a program that provides 
     for the participation of students, teachers, or other 
     educational personnel, from private schools.

         ``Subpart 3--State and Local Flexibility Demonstration

     ``SEC. 6131. SHORT TITLE.

       ``This subpart may be cited as the `State and Local 
     Flexibility Demonstration Act'.

     ``SEC. 6132. PURPOSE.

       ``The purpose of this subpart is to create options for 
     selected State educational agencies and local educational 
     agencies--
       ``(1) to improve the academic achievement of all students, 
     and to focus the resources of the Federal Government upon 
     such achievement;
       ``(2) to improve teacher quality and subject matter 
     mastery, especially in mathematics, reading, and science;
       ``(3) to better empower parents, educators, administrators, 
     and schools to effectively address the needs of their 
     children and students;
       ``(4) to give participating State educational agencies and 
     local educational agencies greater flexibility in determining 
     how to increase their students' academic achievement and 
     implement education reforms in their schools;
       ``(5) to eliminate barriers to implementing effective State 
     and local education reform, while preserving the goals of 
     opportunity for all students and accountability for student 
     progress;
       ``(6) to hold participating State educational agencies and 
     local educational agencies accountable for increasing the 
     academic achievement of all students, especially 
     disadvantaged students; and
       ``(7) to narrow achievement gaps between the lowest and 
     highest achieving groups of students so that no child is left 
     behind.

     ``SEC. 6133. GENERAL PROVISION.

       ``For purposes of this subpart, any State that is one local 
     educational agency shall be considered a State educational 
     agency and not a local educational agency.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

     ``SEC. 6141. STATE FLEXIBILITY.

       ``(a) Flexibility Authority.--Except as otherwise provided 
     in this chapter, the Secretary shall, on a competitive basis, 
     grant flexibility authority to not more than 7 eligible State 
     educational agencies, under which the agencies may 
     consolidate and use funds in accordance with section 6142.
       ``(b) Definitions.--In this chapter:
       ``(1) Eligible state educational agency.--The term 
     `eligible State educational agency' means a State educational 
     agency that--
       ``(A) submits an approvable application under subsection 
     (c); and
       ``(B) proposes performance agreements--
       ``(i) that shall be entered into with not fewer than 4, and 
     not more than 10, local educational agencies;
       ``(ii) not fewer than half of which shall be entered into 
     with high-poverty local educational agencies; and
       ``(iii) that require the local educational agencies 
     described in clause (i) to align their use of consolidated 
     funds under section 6152 with the State educational agency's 
     use of consolidated funds under section 6142.
       ``(2) High-poverty local educational agency.--The term 
     `high-poverty local educational agency' means a local 
     educational agency for which 20 percent or more of the 
     children who are age 5 through 17, and served by the local 
     educational agency, are from families with incomes below the 
     poverty line.
       ``(c) State Applications.--
       ``(1) Applications.--To be eligible to receive flexibility 
     authority under this chapter, a State educational agency 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require, including--
       ``(A) information demonstrating, to the satisfaction of the 
     Secretary, that the grant of authority offers substantial 
     promise of--
       ``(i) assisting the State educational agency in making 
     adequate yearly progress, as defined under section 
     1111(b)(2); and
       ``(ii) aligning State and local reforms and assisting the 
     local educational agencies that enter into performance 
     agreements with the State educational agency under paragraph 
     (2) in making such adequate yearly progress;

[[Page 25746]]

       ``(B) the performance agreements that the State educational 
     agency proposes to enter into with eligible local educational 
     agencies under paragraph (2);
       ``(C) information demonstrating that the State educational 
     agency has consulted with and involved parents, 
     representatives of local educational agencies, and other 
     educators in the development of the terms of the grant of 
     authority;
       ``(D) a provision specifying that the grant of flexibility 
     authority shall be for a term of not more than 5 years;
       ``(E) a list of the programs described in section 6142(b) 
     that are included in the scope of the grant of authority;
       ``(F) a provision specifying that no requirements of any 
     program described in section 6142(b) and included by a State 
     educational agency in the scope of the grant of authority 
     shall apply to that agency, except as otherwise provided in 
     this chapter;
       ``(G) a 5-year plan describing how the State educational 
     agency intends to consolidate and use the funds from programs 
     included in the scope of the grant of authority, for any 
     educational purpose authorized under this Act, in order to 
     make adequate yearly progress and advance the education 
     priorities of the State and the local educational agencies 
     with which the State educational agency enters into 
     performance agreements;
       ``(H) an assurance that the State educational agency will 
     provide parents, teachers, and representatives of local 
     educational agencies and schools with notice and an 
     opportunity to comment on the proposed terms of the grant of 
     authority;
       ``(I) an assurance that the State educational agency, and 
     the local educational agencies with which the State 
     educational agency enters into performance agreements, will 
     use fiscal control and fund accounting procedures that will 
     ensure proper disbursement of, and accounting for, Federal 
     funds consolidated and used under the grant of authority;
       ``(J) an assurance that the State educational agency, and 
     the local educational agencies with which the State 
     educational agency enters into performance agreements, will 
     meet the requirements of all applicable Federal civil rights 
     laws in carrying out the grant of authority, including 
     consolidating and using funds under the grant of authority;
       ``(K) an assurance that, in consolidating and using funds 
     under the grant of authority--
       ``(i) the State educational agency, and the local 
     educational agencies with which the State educational agency 
     enters into performance agreements, will provide for the 
     equitable participation of students and professional staff in 
     private schools consistent with section 9501; and
       ``(ii) that sections 9502, 9503, and 9504 shall apply to 
     all services and assistance provided with such funds in the 
     same manner as such sections apply to services and assistance 
     provided in accordance with section 9501;
       ``(L) an assurance that the State educational agency will, 
     for the duration of the grant of authority, use funds 
     consolidated under section 6142 only to supplement the amount 
     of funds that would, in the absence of those Federal funds, 
     be made available from non-Federal sources for the education 
     of students participating in programs assisted with the 
     consolidated funds, and not to supplant those funds; and
       ``(M) an assurance that the State educational agency shall, 
     not later than 1 year after the date on which the Secretary 
     makes the grant of authority, and annually thereafter during 
     the term of the grant of authority, disseminate widely to 
     parents and the general public, transmit to the Secretary, 
     distribute to print and broadcast media, and post on the 
     Internet, a report, which shall include a detailed 
     description of how the State educational agency, and the 
     local educational agencies with which the State educational 
     agency enters into performance agreements, used the funds 
     consolidated under the grant of authority to make adequate 
     yearly progress and advance the education priorities of the 
     State and local educational agencies in the State.
       ``(2) Proposed performance agreements with local 
     educational agencies.--
       ``(A) In general.--A State educational agency that wishes 
     to receive flexibility authority under this subpart shall 
     propose performance agreements that meet the requirements of 
     clauses (i) and (ii) of subsection (b)(1)(B) (subject to 
     approval of the application or amendment involved under 
     subsection (d) or (e)).
       ``(B) Performance agreements.--Each proposed performance 
     agreement with a local educational agency shall--
       ``(i) contain plans for the local educational agency to 
     consolidate and use funds in accordance with section 6152, 
     for activities that are aligned with the State educational 
     agency's plan described in paragraph (1)(G);
       ``(ii) be subject to the requirements of chapter B relating 
     to agreements between the Secretary and a local educational 
     agency, except--

       ``(I) that, as appropriate, references in that chapter to 
     the Secretary shall be deemed to be references to the State 
     educational agency; and
       ``(II) as otherwise provided in this chapter; and

       ``(iii) contain an assurance that the local educational 
     agency will, for the duration of the grant of authority, use 
     funds consolidated under section 6152 only to supplement the 
     amount of funds that would, in the absence of those Federal 
     funds, be made available from non-Federal sources for the 
     education of students participating in programs assisted with 
     the consolidated funds, and not to supplant those funds.
       ``(d) Approval and Selection.--The Secretary shall--
       ``(1) establish a peer review process to assist in the 
     review of proposed State applications under this section; and
       ``(2) appoint individuals to participate in the peer review 
     process who are--
       ``(A) representative of parents, teachers, State 
     educational agencies, and local educational agencies; and
       ``(B) familiar with educational standards, assessments, 
     accountability, curricula, instruction, and staff 
     development, and other diverse educational needs of students.
       ``(e) Amendment to Grant of Authority.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall amend the grant of flexibility authority made to a 
     State educational agency under this chapter, in each of the 
     following circumstances:
       ``(A) Reduction in scope of the grant of authority.--Not 
     later than 1 year after receiving a grant of flexibility 
     authority, the State educational agency seeks to amend the 
     grant of authority to remove from the scope of the grant of 
     authority any program described in section 6142(b).
       ``(B) Expansion of scope of the grant of authority.--Not 
     later than 1 year after receiving a grant of flexibility 
     authority, the State educational agency seeks to amend the 
     grant of authority to include in the scope of the grant of 
     authority any additional program described in section 6142(b) 
     or any additional achievement indicators for which the State 
     will be held accountable.
       ``(C) Changes with respect to number of performance 
     agreements.--The State educational agency seeks to amend the 
     grant of authority to include or remove performance 
     agreements that the State educational agency proposes to 
     enter into with eligible local educational agencies, except 
     that in no case may the State educational agency enter into 
     performance agreements that do not meet the requirements of 
     clauses (i) and (ii) of subsection (b)(1)(B).
       ``(2) Approval and disapproval.--
       ``(A) Deemed approval.--A proposed amendment to a grant of 
     flexibility authority submitted by a State educational agency 
     pursuant to paragraph (1) shall be deemed to be approved by 
     the Secretary unless the Secretary makes a written 
     determination, prior to the expiration of the 120-day period 
     beginning on the date on which the Secretary received the 
     proposed amendment, that the proposed amendment is not in 
     compliance with this chapter.
       ``(B) Disapproval.--The Secretary shall not finally 
     disapprove the proposed amendment, except after giving the 
     State educational agency notice and an opportunity for a 
     hearing.
       ``(C) Notification.--If the Secretary finds that the 
     proposed amendment is not in compliance, in whole or in part, 
     with this chapter, the Secretary shall--
       ``(i) give the State educational agency notice and an 
     opportunity for a hearing; and
       ``(ii) notify the State educational agency of the finding 
     of noncompliance and, in such notification, shall--

       ``(I) cite the specific provisions in the proposed 
     amendment that are not in compliance; and
       ``(II) request additional information, only as to the 
     noncompliant provisions, needed to make the proposed 
     amendment compliant.

       ``(D) Response.--If the State educational agency responds 
     to the Secretary's notification described in subparagraph 
     (C)(ii) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     proposed amendment with the requested information described 
     in subparagraph (C)(ii)(II), the Secretary shall approve or 
     disapprove such proposed amendment prior to the later of--
       ``(i) the expiration of the 45-day period beginning on the 
     date on which the proposed amendment is resubmitted; or
       ``(ii) the expiration of the 120-day period described in 
     subparagraph (A).
       ``(E) Failure to respond.--If the State educational agency 
     does not respond to the Secretary's notification described in 
     subparagraph (C)(ii) during the 45-day period beginning on 
     the date on which the agency received the notification, such 
     proposed amendment shall be deemed to be disapproved.
       ``(3) Treatment of program funds withdrawn from grant of 
     authority.--Beginning on the effective date of an amendment 
     executed under paragraph (1)(A), each program requirement of 
     each program removed from the scope of a grant of authority 
     shall apply to the use of funds made available under the 
     program by the State educational agency and each local 
     educational agency with which the State educational agency 
     has a performance agreement.

     ``SEC. 6142. CONSOLIDATION AND USE OF FUNDS.

       ``(a) In General.--
       ``(1) Authority.--Under a grant of flexibility authority 
     made under this chapter, a State educational agency may 
     consolidate Federal funds described in subsection (b) and 
     made available to the agency, and use such funds for any 
     educational purpose authorized under this Act.
       ``(2) Program requirements.--Except as otherwise provided 
     in this chapter, a State educational agency may use funds 
     under paragraph (1) notwithstanding the program requirements 
     of the program under which the funds were made available to 
     the State.
       ``(b) Eligible Funds and Programs.--

[[Page 25747]]

       ``(1) Funds.--The funds described in this subsection are 
     funds, for State-level activities and State administration, 
     that are described in the following provisions:
       ``(A) Section 1004.
       ``(B) Paragraphs (4) and (5) of section 1202(d).
       ``(C) Section 2113(a)(3).
       ``(D) Section 2412(a)(1).
       ``(E) Subsections (a) (with the agreement of the Governor), 
     (b)(2), and (c)(1) of section 4112.
       ``(F) Paragraphs (2) and (3) of section 4202(c).
       ``(G) Section 5112(b).
       ``(2) Programs.--The programs described in this subsection 
     are the programs authorized to be carried out with funds 
     described in paragraph (1).
       ``(c) Special Rule.--A State educational agency that 
     receives a grant of flexibility authority under this 
     chapter--
       ``(1) shall ensure that the funds described in section 
     5112(a) are allocated to local educational agencies in the 
     State in accordance with section 5112(a); but
       ``(2) may specify how the local educational agencies shall 
     use the allocated funds.

     ``SEC. 6143. PERFORMANCE REVIEW AND PENALTIES.

       ``(a) Midterm Review.--
       ``(1) Failure to make adequate yearly progress.--If, during 
     the term of a grant of flexibility authority under this 
     chapter, a State educational agency fails to make adequate 
     yearly progress for 2 consecutive years, the Secretary shall, 
     after providing notice and an opportunity for a hearing, 
     terminate the grant of authority promptly.
       ``(2) Noncompliance.--The Secretary may, after providing 
     notice and an opportunity for a hearing (including the 
     opportunity to provide evidence as described in paragraph 
     (3)), terminate a grant of flexibility authority for a State 
     if there is evidence that the State educational agency 
     involved has failed to comply with the terms of the grant of 
     authority.
       ``(3) Evidence.--If a State educational agency believes 
     that a determination of the Secretary under this subsection 
     is in error for statistical or other substantive reasons, the 
     State educational agency may provide supporting evidence to 
     the Secretary, and the Secretary shall consider that evidence 
     before making a final termination determination under this 
     subsection.
       ``(b) Final Review.--
       ``(1) In general.--If, at the end of the 5-year term of a 
     grant of flexibility authority made under this chapter, the 
     State educational agency has not met the requirements 
     described in section 6141(c), the Secretary may not renew the 
     grant of flexibility authority under section 6144.
       ``(2) Compliance.--Beginning on the date on which such term 
     ends, the State educational agency, and the local educational 
     agencies with which the State educational agency has entered 
     into performance agreements, shall be required to comply with 
     each of the program requirements in effect on such date for 
     each program that was included in the grant of authority.

     ``SEC. 6144. RENEWAL OF GRANT OF FLEXIBILITY AUTHORITY.

       ``(a) In General.--Except as provided in section 6143 and 
     in accordance with this section, if a State educational 
     agency has met, by the end of the original 5-year term of a 
     grant of flexibility authority under this chapter, the 
     requirements described in section 6141(c), the Secretary 
     shall renew a grant of flexibility authority for one 
     additional 5-year term.
       ``(b) Renewal.--The Secretary may not renew a grant of 
     flexibility authority under this chapter unless, not later 
     than 6 months before the end of the original term of the 
     grant of authority, the State educational agency seeking the 
     renewal notifies the Secretary, and the local educational 
     agencies with which the State educational agency has entered 
     into performance agreements, of the agency's intention to 
     renew the grant of authority.
       ``(c) Effective Date.--A renewal under this section shall 
     be effective on the later of--
       ``(1) the expiration of the original term of the grant of 
     authority; or
       ``(2) the date on which the State educational agency 
     seeking the renewal provides to the Secretary all data 
     required for the application described in section 6141(c).

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

     ``SEC. 6151. LOCAL FLEXIBILITY DEMONSTRATION AGREEMENTS.

       ``(a) Authority.--Except as otherwise provided in this 
     chapter, the Secretary shall, on a competitive basis, enter 
     into local flexibility demonstration agreements--
       ``(1) with local educational agencies that submit 
     approvable proposed agreements under subsection (c) and that 
     are selected under subsection (b); and
       ``(2) under which those agencies may consolidate and use 
     funds in accordance with section 6152.
       ``(b) Selection of Local Educational Agencies.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall enter into local flexibility demonstration agreements 
     under this chapter with not more than 80 local educational 
     agencies. Each local educational agency shall be selected on 
     a competitive basis from among those local educational 
     agencies that--
       ``(A) submit a proposed local flexibility demonstration 
     agreement under subsection (c) to the Secretary and 
     demonstrate, to the satisfaction of the Secretary, that the 
     agreement--
       ``(i) has a substantial promise of assisting the local 
     educational agency in meeting the State's definition of 
     adequate yearly progress, advancing the education priorities 
     of the local educational agency, meeting the general purposes 
     of the programs included under this chapter and the purposes 
     of this part, improving student achievement, and narrowing 
     achievement gaps in accordance with section 1111(b);
       ``(ii) meets the requirements of this chapter; and
       ``(iii) contains a plan to consolidate and use funds in 
     accordance with section 6152 in order to meet the State's 
     definition of adequate yearly progress and the local 
     educational agency's specific, measurable goals for improving 
     student achievement and narrowing achievement gaps; and
       ``(B) have consulted and involved parents and other 
     educators in the development of the proposed local 
     flexibility demonstration agreement.
       ``(2) Geographic distribution.--
       ``(A) Initial agreements.--The Secretary may enter into not 
     more than 3 local flexibility demonstration agreements under 
     this chapter with local educational agencies in each State 
     that does not have a grant of flexibility authority under 
     chapter A.
       ``(B) Urban and rural areas.--If more than 3 local 
     educational agencies in a State submit approvable local 
     flexibility demonstration agreements under this chapter, the 
     Secretary shall select local educational agencies with which 
     to enter into such agreements in a manner that ensures an 
     equitable distribution among such agencies serving urban and 
     rural areas.
       ``(C) Priority of states to enter into state flexibility 
     demonstration agreements.--Notwithstanding any other 
     provision of this part, a local educational agency may not 
     seek to enter into a local flexibility demonstration 
     agreement under this chapter if that agency is located in a 
     State for which the State educational agency--
       ``(i) has, not later than 4 months after the date of 
     enactment of the No Child Left Behind Act of 2001, notified 
     the Secretary of its intent to apply for a grant of 
     flexibility authority under chapter A and, within such period 
     of time as the Secretary may establish, is provided with such 
     authority by the Secretary; or
       ``(ii) has, at any time after such period, been granted 
     flexibility authority under chapter A.
       ``(c) Required Terms of Local Flexibility Demonstration 
     Agreement.--Each local flexibility demonstration agreement 
     entered into with the Secretary under this chapter shall 
     contain each of the following terms:
       ``(1) Duration.--The local flexibility demonstration 
     agreement shall be for a term of 5 years.
       ``(2) Application of program requirements.--The local 
     flexibility demonstration agreement shall provide that no 
     requirements of any program described in section 6152 and 
     included by a local educational agency in the scope of its 
     agreement shall apply to that agency, except as otherwise 
     provided in this chapter.
       ``(3) List of programs.--The local flexibility 
     demonstration agreement shall list which of the programs 
     described in section 6152 are included in the scope of the 
     agreement.
       ``(4) Use of funds to improve student achievement.--The 
     local flexibility demonstration agreement shall contain a 5-
     year plan describing how the local educational agency intends 
     to consolidate and use the funds from programs included in 
     the scope of the agreement for any educational purpose 
     authorized under this Act to advance the education priorities 
     of the local educational agency, meet the general purposes of 
     the included programs, improve student achievement, and 
     narrow achievement gaps in accordance with section 1111(b).
       ``(5) Local input.--The local flexibility demonstration 
     agreement shall contain an assurance that the local 
     educational agency will provide parents, teachers, and 
     representatives of schools with notice and an opportunity to 
     comment on the proposed terms of the local flexibility 
     demonstration agreement.
       ``(6) Fiscal responsibilities.--The local flexibility 
     demonstration agreement shall contain an assurance that the 
     local educational agency will use fiscal control and fund 
     accounting procedures that will ensure proper disbursement 
     of, and accounting for, Federal funds consolidated and used 
     under the agreement.
       ``(7) Civil rights.--The local flexibility demonstration 
     agreement shall contain an assurance that the local 
     educational agency will meet the requirements of all 
     applicable Federal civil rights laws in carrying out the 
     agreement and in consolidating and using the funds under the 
     agreement.
       ``(8) Private school participation.--The local flexibility 
     demonstration agreement shall contain an assurance that the 
     local educational agency agrees that in consolidating and 
     using funds under the agreement--
       ``(A) the local educational agency, will provide for the 
     equitable participation of students and professional staff in 
     private schools consistent with section 9501; and
       ``(B) that sections 9502, 9503, and 9504 shall apply to all 
     services and assistance provided with such funds in the same 
     manner as such sections apply to services and assistance 
     provided in accordance with section 9501.
       ``(9) Supplanting.-- The local flexibility demonstration 
     agreement shall contain an assurance that the local 
     educational agency will, for the duration of the grant of 
     authority, use funds consolidated under section 6152 only to 
     supplement the amount of funds that would, in the absence of 
     those Federal funds, be made available from non-Federal 
     sources for the education of students participating in 
     programs assisted with the consolidated funds, and not to 
     supplant those funds.

[[Page 25748]]

       ``(10) Annual reports.--The local flexibility demonstration 
     agreement shall contain an assurance that the local 
     educational agency shall, not later than 1 year after the 
     date on which the Secretary enters into the agreement, and 
     annually thereafter during the term of the agreement, 
     disseminate widely to parents and the general public, 
     transmit to the Secretary, and the State educational agency 
     for the State in which the local educational agency is 
     located, distribute to print and broadcast media, and post on 
     the Internet, a report that includes a detailed description 
     of how the local educational agency used the funds 
     consolidated under the agreement to improve student academic 
     achievement and reduce achievement gaps.
       ``(d) Peer Review.--The Secretary shall--
       ``(1) establish a peer review process to assist in the 
     review of proposed local flexibility demonstration agreements 
     under this chapter; and
       ``(2) appoint individuals to the peer review process who 
     are representative of parents, teachers, State educational 
     agencies, and local educational agencies, and who are 
     familiar with educational standards, assessments, 
     accountability, curriculum, instruction and staff 
     development, and other diverse educational needs of students.
       ``(e) Amendment to Performance Agreement.--
       ``(1) In general.--In each of the following circumstances, 
     the Secretary shall amend a local flexibility demonstration 
     agreement entered into with a local educational agency under 
     this chapter:
       ``(A) Reduction in scope of local flexibility demonstration 
     agreement.--Not later than 1 year after entering into a local 
     flexibility demonstration agreement, the local educational 
     agency seeks to amend the agreement to remove from the scope 
     any program described in section 6152.
       ``(B) Expansion of scope of local flexibility demonstration 
     agreement.--Not later than 1 year after entering into the 
     local flexibility demonstration agreement, a local 
     educational agency seeks to amend the agreement to include in 
     its scope any additional program described in section 6251 or 
     any additional achievement indicators for which the local 
     educational agency will be held accountable.
       ``(2) Approval and disapproval.--
       ``(A) Deemed approval.--A proposed amendment to a local 
     flexibility demonstration agreement pursuant to paragraph (1) 
     shall be deemed to be approved by the Secretary unless the 
     Secretary makes a written determination, prior to the 
     expiration of the 120-day period beginning on the date on 
     which the Secretary received the proposed amendment, that the 
     proposed amendment is not in compliance with this chapter.
       ``(B) Disapproval.--The Secretary shall not finally 
     disapprove the proposed amendment, except after giving the 
     local educational agency notice and an opportunity for a 
     hearing.
       ``(C) Notification.--If the Secretary finds that the 
     proposed amendment is not in compliance, in whole or in part, 
     with this chapter, the Secretary shall--
       ``(i) give the local educational agency notice and an 
     opportunity for a hearing; and
       ``(ii) notify the local educational agency of the finding 
     of noncompliance and, in such notification, shall--

       ``(I) cite the specific provisions in the proposed 
     amendment that are not in compliance; and
       ``(II) request additional information, only as to the 
     noncompliant provisions, needed to make the proposed 
     amendment compliant.

       ``(D) Response.--If the local educational agency responds 
     to the Secretary's notification described in subparagraph 
     (C)(ii) during the 45-day period beginning on the date on 
     which the agency received the notification, and resubmits the 
     proposed amendment with the requested information described 
     in subparagraph (C)(ii)(II), the Secretary shall approve or 
     disapprove such proposed amendment prior to the later of--
       ``(i) the expiration of the 45-day period beginning on the 
     date on which the proposed amendment is resubmitted; or
       ``(ii) the expiration of the 120-day period described in 
     subparagraph (A).
       ``(E) Failure to respond.--If the local educational agency 
     does not respond to the Secretary's notification described in 
     subparagraph (C)(ii) during the 45-day period beginning on 
     the date on which the agency received the notification, such 
     proposed amendment shall be deemed to be disapproved.
       ``(3) Treatment of program funds withdrawn from 
     agreement.--Beginning on the effective date of an amendment 
     executed under paragraph (1)(A), each program requirement of 
     each program removed from the scope of a local flexibility 
     demonstration agreement shall apply to the use of funds made 
     available under the program by the local educational agency.

     ``SEC. 6152. CONSOLIDATION AND USE OF FUNDS.

       ``(a) In General.--
       ``(1) Authority.--Under a local flexibility demonstration 
     agreement entered into under this chapter, a local 
     educational agency may consolidate Federal funds made 
     available to the agency under the provisions listed in 
     subsection (b) and use such funds for any educational purpose 
     permitted under this Act.
       ``(2) Program requirements.--Except as otherwise provided 
     in this chapter, a local educational agency may use funds 
     under paragraph (1) notwithstanding the program requirements 
     of the program under which the funds were made available to 
     the agency.
       ``(b) Eligible Programs.--Program funds made available to 
     local educational agencies on the basis of a formula under 
     the following provisions may be consolidated and used under 
     subsection (a):
       ``(1) Subpart 2 of part A of title II.
       ``(2) Subpart 1 of part D of title II.
       ``(3) Subpart 1 of part A of title IV.
       ``(4) Subpart 1 of part A of title V.

     ``SEC. 6153. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

       ``Each local educational agency that has entered into a 
     local flexibility demonstration agreement with the Secretary 
     under this chapter may use for administrative purposes not 
     more than 4 percent of the total amount of funds allocated to 
     the agency under the programs included in the scope of the 
     agreement.

     ``SEC. 6154. PERFORMANCE REVIEW AND PENALTIES.

       ``(a) Midterm Review.--
       ``(1) Failure to make adequate yearly progress.--If, during 
     the term of a local flexibility demonstration agreement, a 
     local educational agency fails to make adequate yearly 
     progress for 2 consecutive years, the Secretary shall, after 
     notice and opportunity for a hearing, promptly terminate the 
     agreement.
       ``(2) Noncompliance.--The Secretary may, after providing 
     notice and an opportunity for a hearing (including the 
     opportunity to provide information as provided for in 
     paragraph (3)), terminate a local flexibility demonstration 
     agreement under this chapter if there is evidence that the 
     local educational agency has failed to comply with the terms 
     of the agreement.
       ``(3) Evidence.--If a local educational agency believes 
     that the Secretary's determination under this subsection is 
     in error for statistical or other substantive reasons, the 
     local educational agency may provide supporting evidence to 
     the Secretary, and the Secretary shall consider that evidence 
     before making a final early termination determination.
       ``(b) Final Review.--If, at the end of the 5-year term of a 
     local flexibility demonstration agreement entered into under 
     this chapter, the local educational agency has not met the 
     requirements described in section 6151(c), the Secretary may 
     not renew the agreement under section 6155 and, beginning on 
     the date on which such term ends, the local educational 
     agency shall be required to comply with each of the program 
     requirements in effect on such date for each program included 
     in the local flexibility demonstration agreement.

     ``SEC. 6155. RENEWAL OF LOCAL FLEXIBILITY DEMONSTRATION 
                   AGREEMENT.

       ``(a) In General.--Except as provided in section 6154 and 
     in accordance with this section, the Secretary shall renew 
     for 1 additional 5-year term a local flexibility 
     demonstration agreement entered into under this chapter if 
     the local educational agency has met, by the end of the 
     original term of the agreement, the requirements described in 
     section 6151(c).
       ``(b) Notification.--The Secretary may not renew a local 
     flexibility demonstration agreement under this chapter 
     unless, not less than 6 months before the end of the original 
     term of the agreement, the local educational agency seeking 
     the renewal notifies the Secretary of its intention to renew.
       ``(c) Effective Date.--A renewal under this section shall 
     be effective at the end of the original term of the agreement 
     or on the date on which the local educational agency seeking 
     renewal provides to the Secretary all data required under the 
     agreement, whichever is later.

     ``SEC. 6156. REPORTS.

       ``(a) Transmittal to Congress.--Not later than 60 days 
     after the Secretary receives a report described in section 
     6151(b)(10), the Secretary shall make the report available 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.
       ``(b) Limitation.--A State in which a local educational 
     agency that has a local flexibility demonstration agreement 
     is located may not require such local educational agency to 
     provide any application information with respect to the 
     programs included within the scope of that agreement other 
     than that information that is required to be included in the 
     report described in section 6151(b)(10).

     ``Subpart 4--State Accountability for Adequate Yearly Progress

     ``SEC. 6161. ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.

       ``In the case of a State educational agency that has a plan 
     approved under subpart 1 of part A of title I after the date 
     of enactment of the No Child Left Behind Act of 2001, and has 
     a plan approved under subpart 1 of part A of title III of 
     such Act after such date of enactment, the Secretary shall 
     annually, starting with the beginning of the first school 
     year following the first 2 school years for which such plans 
     were implemented, review whether the State has--
       ``(1) made adequate yearly progress, as defined in section 
     1111(b)(2)(B), for each of the groups of students described 
     in section 1111(b)(2)(C)(v); and
       ``(2) met its annual measurable achievement objectives 
     under section 3122(a).

     ``SEC. 6162. PEER REVIEW.

       ``The Secretary shall use a peer review process to review, 
     based on data from the State assessments administered under 
     section 1111(b)(3) and on data from the evaluations conducted 
     under section 3121, whether the State has failed to make 
     adequate yearly progress for 2 consecutive years or whether 
     the State has met its annual measurable achievement 
     objectives.

[[Page 25749]]



     ``SEC. 6163. TECHNICAL ASSISTANCE.

       ``(a) Provision of Assistance.--
       ``(1) Adequate yearly progress.--Based on the review 
     described in section 6161(1), the Secretary shall provide 
     technical assistance to a State that has failed to make 
     adequate yearly progress, as defined in section 1111(b)(2), 
     for 2 consecutive years. The Secretary shall provide such 
     assistance not later than the beginning of the first school 
     year that begins after such determination is made.
       ``(2) Annual measurable achievement objectives.--Based on 
     the reviews described in section 6161(2), the Secretary may 
     provide technical assistance to a State that has failed to 
     meet its annual measurable achievement objectives under 
     section 3122(a) for 2 consecutive years. The Secretary shall 
     provide such assistance not later than the beginning of the 
     first school year that begins after such determination is 
     made.
       ``(b) Characteristics.--The technical assistance described 
     in subsection (a) shall--
       ``(1) be valid, reliable and rigorous; and
       ``(2) provide constructive feedback to help the State make 
     adequate yearly progress, as defined in section 1111(b)(2), 
     or meet the annual measurable achievement objectives under 
     section 3122(a).

     ``SEC. 6164. REPORT TO CONGRESS.

       ``Beginning with the school year that begins in 2005, the 
     Secretary shall submit an annual report 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 containing the following:
       ``(1) A list of each State that has not made adequate 
     yearly progress based on the review conducted under section 
     6161(1).
       ``(2) A list of each State that has not met its annual 
     measurable achievement objectives based on the review 
     conducted under section 6161(2).
       ``(3) The information reported by the State to the 
     Secretary pursuant to section 1119(a).
       ``(4) A description of any technical assistance provided 
     pursuant to section 6163.

                  ``PART B--RURAL EDUCATION INITIATIVE

     ``SEC. 6201. SHORT TITLE.

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

     ``SEC. 6202. PURPOSE.

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

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

     ``SEC. 6211. USE OF APPLICABLE FUNDING.

       ``(a) Alternative Uses.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, an eligible local educational agency may use the 
     applicable funding that the agency is eligible to receive 
     from the State educational agency for a fiscal year to carry 
     out local activities authorized under any of the following 
     provisions:
       ``(A) Part A of title I.
       ``(B) Part A or D of title II.
       ``(C) Title III.
       ``(D) Part A or B of title IV.
       ``(E) Part A of title V.
       ``(2) Notification.--An eligible local educational agency 
     shall notify the State educational agency of the local 
     educational agency's intention to use the applicable funding 
     in accordance with paragraph (1), by a date that is 
     established by the State educational agency for the 
     notification.
       ``(b) Eligibility.--
       ``(1) In general.--A local educational agency shall be 
     eligible to use the applicable funding in accordance with 
     subsection (a) if--
       ``(A)(i)(I) the total number of students in average daily 
     attendance at all of the schools served by the local 
     educational agency is fewer than 600; or
       ``(II) each county in which a school served by the local 
     educational agency is located has a total population density 
     of fewer than 10 persons per square mile; and
       ``(ii) all of the schools served by the local educational 
     agency are designated with a school locale code of 7 or 8, as 
     determined by the Secretary; or
       ``(B) the agency meets the criteria established in 
     subparagraph (A)(i) and the Secretary, in accordance with 
     paragraph (2), grants the local educational agency's request 
     to waive the criteria described in subparagraph (A)(ii).
       ``(2) Certification.--The Secretary shall determine whether 
     to waive the criteria described in paragraph (1)(A)(ii) based 
     on a demonstration by the local educational agency, and 
     concurrence by the State educational agency, that the local 
     educational agency is located in an area defined as rural by 
     a governmental agency of the State.
       ``(c) Applicable Funding Defined.--In this section, the 
     term `applicable funding' means funds provided under any of 
     the following provisions:
       ``(1) Subpart 2 and section 2412(a)(2)(A) of title II.
       ``(2) Section 4114.
       ``(3) Part A of title V.
       ``(d) Disbursement.--Each State educational agency that 
     receives applicable funding for a fiscal year shall disburse 
     the applicable funding to local educational agencies for 
     alternative uses under this section for the fiscal year at 
     the same time as the State educational agency disburses the 
     applicable funding to local educational agencies that do not 
     intend to use the applicable funding for such alternative 
     uses for the fiscal year.
       ``(e) Applicable Rules.--Applicable funding under this 
     section shall be available to carry out local activities 
     authorized under subsection (a).

     ``SEC. 6212. GRANT PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to award 
     grants to eligible local educational agencies to enable the 
     local educational agencies to carry out activities authorized 
     under any of the following provisions:
       ``(1) Part A of title I.
       ``(2) Part A or D of title II.
       ``(3) Title III.
       ``(4) Part A or B of title IV.
       ``(5) Part A of title V.
       ``(b) Allocation.--
       ``(1) In general.--Except as provided in paragraph (3), the 
     Secretary shall award a grant under subsection (a) to a local 
     educational agency eligible under section 6211(b) for a 
     fiscal year in an amount equal to the initial amount 
     determined under paragraph (2) for the fiscal year minus the 
     total amount received by the agency under the provisions of 
     law described in section 6211(c) for the preceding fiscal 
     year.
       ``(2) Determination of initial amount.--The initial amount 
     referred to in paragraph (1) is equal to $100 multiplied by 
     the total number of students in excess of 50 students, in 
     average daily attendance at the schools served by the local 
     educational agency, plus $20,000, except that the initial 
     amount may not exceed $60,000.
       ``(3) Ratable adjustment.--
       ``(A) In general.--If the amount made available to carry 
     out this section for any fiscal year is not sufficient to pay 
     in full the amounts that local educational agencies are 
     eligible to receive under paragraph (1) for such year, the 
     Secretary shall ratably reduce such amounts for such year.
       ``(B) Additional amounts.--If additional funds become 
     available for making payments under paragraph (1) for such 
     fiscal year, payments that were reduced under subparagraph 
     (A) shall be increased on the same basis as such payments 
     were reduced.
       ``(c) Disbursement.--The Secretary shall disburse the funds 
     awarded to a local educational agency under this section for 
     a fiscal year not later than July 1 of that fiscal year.
       ``(d) Special Eligibility Rule.--A local educational agency 
     that is eligible to receive a grant under this subpart for a 
     fiscal year is not eligible to receive funds for such fiscal 
     year under subpart 2.

     ``SEC. 6213. ACCOUNTABILITY.

       ``(a) Academic Achievement Assessment.--Each local 
     educational agency that uses or receives funds under this 
     subpart for a fiscal year shall administer an assessment that 
     is consistent with section 1111(b)(3).
       ``(b) Determination Regarding Continuing Participation.--
     Each State educational agency that receives funding under the 
     provisions of law described in section 6211(c) shall--
       ``(1) after the third year that a local educational agency 
     in the State participates in a program under this subpart and 
     on the basis of the results of the assessments described in 
     subsection (a), determine whether the local educational 
     agency participating in the program made adequate yearly 
     progress, as described in section 1111(b)(2);
       ``(2) permit only those local educational agencies that 
     participated and made adequate yearly progress, as described 
     in section 1111(b)(2), to continue to participate; and
       ``(3) permit those local educational agencies that 
     participated and failed to make adequate yearly progress, as 
     described in section 1111(b)(2), to continue to participate 
     only if such local educational agencies use applicable 
     funding under this subpart to carry out the requirements of 
     section 1116.

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

     ``SEC. 6221. PROGRAM AUTHORIZED.

       ``(a) Grants to States.--
       ``(1) In general.--From amounts appropriated under section 
     6234 for this subpart for a fiscal year that are not reserved 
     under subsection (c), the Secretary shall award grants (from 
     allotments made under paragraph (2)) for the fiscal year to 
     State educational agencies that have applications submitted 
     under section 6223 approved to enable the State educational 
     agencies to award grants to eligible local educational 
     agencies for local authorized activities described in section 
     6222(a).
       ``(2) Allotment.--From amounts described in paragraph (1) 
     for a fiscal year, the Secretary shall allot to each State 
     educational agency for that fiscal year an amount that bears 
     the same ratio to those amounts as the number of students in 
     average daily attendance served by eligible local educational 
     agencies in the State for that fiscal year bears to the 
     number of all such students served by eligible local 
     educational agencies in all States for that fiscal year.
       ``(3) Specially qualified agencies.--
       ``(A) Eligibility and application.--If a State educational 
     agency elects not to participate in the program under this 
     subpart or does not have an application submitted under 
     section 6223 approved, a specially qualified agency in such 
     State desiring a grant under this subpart may submit an 
     application under such section directly to the Secretary to 
     receive an award under this subpart.
       ``(B) Direct awards.--The Secretary may award, on a 
     competitive basis or by formula, the amount the State 
     educational agency is eligible

[[Page 25750]]

     to receive under paragraph (2) directly to a specially 
     qualified agency in the State that has submitted an 
     application in accordance with subparagraph (A) and obtained 
     approval of the application.
       ``(C) Specially qualified agency defined.--In this subpart, 
     the term `specially qualified agency' means an eligible local 
     educational agency served by a State educational agency that 
     does not participate in a program under this subpart in a 
     fiscal year, that may apply directly to the Secretary for a 
     grant in such year under this subsection.
       ``(b) Local Awards.--
       ``(1) Eligibility.--A local educational agency shall be 
     eligible to receive a grant under this subpart if--
       ``(A) 20 percent or more of the children ages 5 through 17 
     years served by the local educational agency are from 
     families with incomes below the poverty line; and
       ``(B) all of the schools served by the agency are 
     designated with a school locale code of 6, 7, or 8, as 
     determined by the Secretary.
       ``(2) Award basis.--A State educational agency shall award 
     grants to eligible local educational agencies--
       ``(A) on a competitive basis;
       ``(B) according to a formula based on the number of 
     students in average daily attendance served by the eligible 
     local educational agencies or schools in the State; or
       ``(C) according to an alternative formula, if, prior to 
     awarding the grants, the State educational agency 
     demonstrates, to the satisfaction of the Secretary, that the 
     alternative formula enables the State educational agency to 
     allot the grant funds in a manner that serves equal or 
     greater concentrations of children from families with incomes 
     below the poverty line, relative to the concentrations that 
     would be served if the State educational agency used the 
     formula described in subparagraph (B).
       ``(c) Reservations.--From amounts appropriated under 
     section 6234 for this subpart for a fiscal year, the 
     Secretary shall reserve--
       ``(1) \1/2\ of 1 percent to make awards to elementary 
     schools or secondary schools operated or supported by the 
     Bureau of Indian Affairs, to carry out the activities 
     authorized under this subpart; and
       ``(2) \1/2\ of 1 percent to make awards to the outlying 
     areas in accordance with their respective needs, to carry out 
     the activities authorized under this subpart.

     ``SEC. 6222. USES OF FUNDS.

       ``(a) Local Awards.--Grant funds awarded to local 
     educational agencies under this subpart shall be used for any 
     of the following:
       ``(1) Teacher recruitment and retention, including the use 
     of signing bonuses and other financial incentives.
       ``(2) Teacher professional development, including programs 
     that train teachers to utilize technology to improve teaching 
     and to train special needs teachers.
       ``(3) Educational technology, including software and 
     hardware, as described in part D of title II.
       ``(4) Parental involvement activities.
       ``(5) Activities authorized under the Safe and Drug-Free 
     Schools program under part A of title IV.
       ``(6) Activities authorized under part A of title I.
       ``(7) Activities authorized under title III.
       ``(b) Administrative Costs.--A State educational agency 
     receiving a grant under this subpart may not use more than 5 
     percent of the amount of the grant for State administrative 
     costs and to provide technical assistance to eligible local 
     educational agencies.

     ``SEC. 6223. APPLICATIONS.

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

     ``SEC. 6224. ACCOUNTABILITY.

       ``(a) State Report.--Each State educational agency that 
     receives a grant under this subpart shall prepare and submit 
     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 schools, under this subpart;
       ``(2) how local educational agencies and schools used funds 
     provided under this subpart; and
       ``(3) the degree to which progress has been made toward 
     meeting the goals and objectives described in the application 
     submitted under section 6223.
       ``(b) Specially Qualified Agency Report.--Each specially 
     qualified agency that receives a grant under this subpart 
     shall provide an annual report to the Secretary. Such report 
     shall describe--
       ``(1) how such agency uses funds provided under this 
     subpart; and
       ``(2) the degree to which progress has been made toward 
     meeting the goals and objectives described in the application 
     submitted under section 6223.
       ``(c) Report to Congress.--The Secretary 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 biennial 
     report. The report shall describe--
       ``(1) the methods the State educational agencies used to 
     award grants to eligible local educational agencies, and to 
     provide assistance to schools, under this subpart;
       ``(2) how local educational agencies and schools used funds 
     provided under this subpart; and
       ``(3) the degree to which progress has been made toward 
     meeting the goals and objectives described in the 
     applications submitted under section 6223.
       ``(d) Academic Achievement Assessment.--Each local 
     educational agency or specially qualified agency that 
     receives a grant under this subpart for a fiscal year shall 
     administer an assessment that is consistent with section 
     1111(b)(3).
       ``(e) Determination Regarding Continuing Participation.--
     Each State educational agency or specially qualified agency 
     that receives a grant under this subpart shall--
       ``(1) after the third year that a local educational agency 
     or specially qualified agency in the State receives funds 
     under this subpart, and on the basis of the results of the 
     assessments described in subsection (d)--
       ``(A) in the case of a local educational agency, determine 
     whether the local educational agency made adequate yearly 
     progress, as described in section 1111(b)(2); and
       ``(B) in the case of a specially qualified agency, submit 
     to the Secretary information that would allow the Secretary 
     to determine whether the specially qualified agency has made 
     adequate yearly progress, as described in section 1111(b)(2);
       ``(2) permit only those local educational agencies or 
     specially qualified agencies that made adequate yearly 
     progress, as described in section 1111(b)(2), to continue to 
     receive grants under this subpart; and
       ``(3) permit those local educational agencies or specially 
     qualified agencies that failed to make adequate yearly 
     progress, as described in section 1111(b)(2), to continue to 
     receive such grants only if the State educational agency 
     disbursed such grants to the local educational agencies or 
     specially qualified agencies to carry out the requirements of 
     section 1116.

                    ``Subpart 3--General Provisions

     ``SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.

       ``(a) Census Determination.--Each local educational agency 
     desiring a grant under section 6212 and each local 
     educational agency or specially qualified agency desiring a 
     grant under subpart 2 shall--
       ``(1) not later than December 1 of each year, conduct a 
     census to determine the number of students in average daily 
     attendance in kindergarten through grade 12 at the schools 
     served by the agency; and
       ``(2) not later than March 1 of each year, submit the 
     number described in paragraph (1) to the Secretary (and to 
     the State educational agency, in the case of a local 
     educational agency seeking a grant under subpart (2)).
       ``(b) Penalty.--If the Secretary determines that a local 
     educational agency or specially qualified agency has 
     knowingly submitted false information under subsection (a) 
     for the purpose of gaining additional funds under section 
     6212 or subpart 2, then the agency shall be fined an amount 
     equal to twice the difference between the amount the agency 
     received under this section and the correct amount the agency 
     would have received under section 6212 or subpart 2 if the 
     agency had submitted accurate information under subsection 
     (a).

     ``SEC. 6232. SUPPLEMENT, NOT SUPPLANT.

       ``Funds made available under subpart 1 or subpart 2 shall 
     be used to supplement, and not supplant, any other Federal, 
     State, or local education funds.

     ``SEC. 6233. RULE OF CONSTRUCTION.

       ``Nothing in this part shall be construed to prohibit a 
     local educational agency that enters into cooperative 
     arrangements with other local educational agencies for the 
     provision of special, compensatory, or other education 
     services, pursuant to State law or a written agreement, from 
     entering into similar arrangements for the use, or the 
     coordination of the use, of the funds made available under 
     this part.

     ``SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $300,000,000 for fiscal year 2002 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years, to be 
     distributed equally between subparts 1 and 2.

                      ``PART C--GENERAL PROVISIONS

     ``SEC. 6301. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, 
                   OR CONTROL.

       ``Nothing in this title shall be construed to authorize an 
     officer or employee of the Federal Government to mandate, 
     direct, or control a State, local educational agency, or 
     school's specific instructional content, academic achievement 
     standards and assessments, curriculum, or program of 
     instruction, as a condition of eligibility to receive funds 
     under this Act.

     ``SEC. 6302. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

       ``Nothing in this title shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.''.

[[Page 25751]]



     SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT 
                   OF 1994.

       (a) National Assessment of Educational Progress.--Section 
     411 of the National Education Statistics Act of 1994 (20 
     U.S.C. 9010) is amended to read as follows:

     ``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

       ``(a) Establishment.--The Commissioner shall, with the 
     advice of the National Assessment Governing Board established 
     under section 412, and with the technical assistance of the 
     Advisory Council established under section 407, carry out, 
     through grants, contracts, or cooperative agreements with one 
     or more qualified organizations, or consortia thereof, a 
     National Assessment of Educational Progress, which 
     collectively refers to a national assessment, State 
     assessments, and a long-term trend assessment in reading and 
     mathematics.
       ``(b) Purpose; State Assessments.--
       ``(1) Purpose.--The purpose of this section is to provide, 
     in a timely manner, a fair and accurate measurement of 
     student academic achievement and reporting trends in such 
     achievement in reading, mathematics, and other subject matter 
     as specified in this section.
       ``(2) Measurement and reporting.--The Commissioner, in 
     carrying out the measurement and reporting described in 
     paragraph (1), shall--
       ``(A) use a random sampling process which is consistent 
     with relevant, widely accepted professional assessment 
     standards and that produces data that are representative on a 
     national and regional basis;
       ``(B) conduct a national assessment and collect and report 
     assessment data, including achievement data trends, in a 
     valid and reliable manner on student academic achievement in 
     public and private elementary schools and secondary schools 
     at least once every two years, in grades 4 and 8 in reading 
     and mathematics;
       ``(C) conduct a national assessment and collect and report 
     assessment data, including achievement data trends, in a 
     valid and reliable manner on student academic achievement in 
     public and private schools in reading and mathematics in 
     grade 12 in regularly scheduled intervals, but at least as 
     often as such assessments were conducted prior to the date of 
     enactment of the No Child Left Behind Act of 2001;
       ``(D) to the extent time and resources allow, and after the 
     requirements described in subparagraph (B) are implemented 
     and the requirements described in subparagraph (C) are met, 
     conduct additional national assessments and collect and 
     report assessment data, including achievement data trends, in 
     a valid and reliable manner on student academic achievement 
     in grades 4, 8, and 12 in public and private elementary 
     schools and secondary schools in regularly scheduled 
     intervals in additional subject matter, including writing, 
     science, history, geography, civics, economics, foreign 
     languages, and arts, and the trend assessment described in 
     subparagraph (F);
       ``(E) conduct the reading and mathematics assessments 
     described in subparagraph (B) in the same year, and every 
     other year thereafter, to provide for one year in which no 
     such assessments are conducted in between each administration 
     of such assessments;
       ``(F) continue to conduct the trend assessment of academic 
     achievement at ages 9, 13, and 17 for the purpose of 
     maintaining data on long-term trends in reading and 
     mathematics;
       ``(G) include information on special groups, including, 
     whenever feasible, information collected, cross tabulated, 
     compared, and reported by race, ethnicity, socioeconomic 
     status, gender, disability and limited English proficiency; 
     and
       ``(H) ensure that achievement data are made available on a 
     timely basis following official reporting, in a manner that 
     facilitates further analysis and that includes trend lines.
       ``(3) State assessments.--
       ``(A) In general.--The Commissioner--
       ``(i) shall conduct biennial State academic assessments of 
     student achievement in reading and mathematics in grades 4 
     and 8 as described in paragraphs (1)(B) and (1)(E);
       ``(ii) may conduct the State academic assessments of 
     student achievement in reading and mathematics in grade 12 as 
     described in paragraph (1)(C);
       ``(iii) may conduct State academic assessments of student 
     achievement in grades 4, 8, and 12 as described in paragraph 
     (1)(D); and
       ``(iv) shall conduct each such State assessment, in each 
     subject area and at each grade level, on a developmental 
     basis until the Commissioner determines, as the result of an 
     evaluation required by subsection (f), that such assessment 
     produces high quality data that are valid and reliable.
       (B) Agreement.--
       (i) In general.--States participating in State assessments 
     shall enter into an agreement with the Secretary pursuant to 
     subsection (d)(3).
       ``(ii) Content.--Such agreement shall contain information 
     sufficient to give States full information about the process 
     for decision-making (which shall include the consensus 
     process used), on objectives to be tested, and the standards 
     for random sampling, test administration, test security, data 
     collection, validation, and reporting.
       ``(C) Review and release.--
       ``(i) In general.--Except as provided in clause (ii), a 
     participating State shall review and give permission for the 
     release of results from any test of its students administered 
     as a part of a State assessment prior to the release of such 
     data. Refusal by a State to release its data shall not 
     restrict the release of data from other States that have 
     approved the release of such data.
       ``(ii) Special rule.--A State participating in the biennial 
     academic assessments of student achievement in reading and 
     mathematics in grades 4 and 8 shall be deemed to have given 
     its permission to release its data if the State has an 
     approved plan under section 1111 of the Elementary and 
     Secondary Education Act of 1965.
       ``(4) Prohibited activities.--
       ``(A) In general.--The use of assessment items and data on 
     any assessment authorized under this section by an agent or 
     agents of the Federal Government to rank, compare, or 
     otherwise evaluate individual students or teachers, or to 
     provide rewards or sanctions for individual students, 
     teachers, schools or local educational agencies is 
     prohibited.
       ``(B) Special rule.--Any assessment authorized under this 
     section shall not be used by an agent or agents of the 
     Federal Government to establish, require, or influence the 
     standards, assessments, curriculum, including lesson plans, 
     textbooks, or classroom materials, or instructional practices 
     of States or local educational agencies.
       ``(C) Applicability to student educational decisions.--
     Nothing in this section shall be construed to prescribe the 
     use of any assessment authorized under this section for 
     student promotion or graduation purposes.
       ``(D) Applicability to home schools.--Nothing in this 
     section shall be construed to affect home schools, whether or 
     not a home school is treated as a home school or a private 
     school under State law, nor shall any home schooled student 
     be required to participate in any assessment referenced or 
     authorized under this section.
       ``(5) Requirement.--In carrying out any assessment 
     authorized under this section, the Commissioner, in a manner 
     consistent with subsection (c)(2), shall--
       ``(A) use widely accepted professional testing standards, 
     objectively measure academic achievement, knowledge, and 
     skills, and ensure that any academic assessment authorized 
     under this section be tests that do not evaluate or assess 
     personal or family beliefs and attitudes or publicly disclose 
     personally identifiable information;
       ``(B) only collect information that is directly related to 
     the appraisal of academic achievement, and to the fair and 
     accurate presentation of such information; and
       ``(C) collect information on race, ethnicity, socioeconomic 
     status, disability, limited English proficiency, and gender.
       (6) Technical assistance.--In carrying out any assessment 
     authorized under this section, the Commissioner may provide 
     technical assistance to States, localities, and other 
     parties.
       ``(c) Access.--
       ``(1) Public access.--
       ``(A) In general.--Except as provided in paragraph (3), 
     parents and members of the public shall have access to all 
     assessment data, questions, and complete and current 
     assessment instruments of any assessment authorized under 
     this section. The local educational agency shall make 
     reasonable efforts to inform parents and members of the 
     public about the access required under this paragraph.
       ``(B) Timeline.--The access described in this paragraph 
     shall be provided within 45 days of the date the request was 
     made, in writing, and be made available in a secure setting 
     that is convenient to both parties.
       ``(C) Prohibition.--To protect the integrity of the 
     assessment, no copy of the assessment items or assessment 
     instruments shall be duplicated or taken from the secure 
     setting.
       ``(2) Complaints.--
       ``(A) In general.--Parents and members of the public may 
     submit written complaints to the National Assessment 
     Governing Board.
       ``(B) Forwarding of complaints.--The National Assessment 
     Governing Board shall forward such complaints to the 
     Commissioner, the Secretary of Education, and the State and 
     local educational agency from within which the complaint 
     originated within 30 days of receipt of such complaint.
       ``(C) Review.--The National Assessment Governing Board, in 
     consultation with the Commissioner, shall review such 
     complaint and determine whether revisions are necessary and 
     appropriate. As determined by such review, the Board shall 
     revise, as necessary and appropriate, the procedures or 
     assessment items that have generated the complaint and 
     respond to the individual submitting the complaint, with a 
     copy of such response provided to the Secretary, describing 
     any action taken, not later than 30 days after so acting.
       ``(D) Report.--The Secretary shall submit a summary report 
     of all complaints received pursuant to subparagraph (A) and 
     responses by the National Assessment Governing Board pursuant 
     to subparagraph (B) to the Chairman of the House Committee on 
     Education and the Workforce, and the Chairman of the Senate 
     Committee on Health, Education, Labor, and Pensions.
       ``(E) Cognitive questions.--
       ``(i) In general.--The Commissioner may decline to make 
     available through public means, such as posting on the 
     Internet, distribution to the media, distribution through 
     public agencies, or in response to a request under section 
     552 of title 5, United States Code, for a period, not to 
     exceed 10 years after initial use, cognitive questions that 
     the Commissioner intends to reuse in the future.
       ``(ii) Extension.--Notwithstanding clause (i), the 
     Commissioner may decline to make cognitive questions 
     available as described in clause (i) for a period longer than 
     10 years if the Commissioner determines such additional 
     period is necessary to protect the security and integrity of 
     long-term trend data.

[[Page 25752]]

       ``(3) Personally identifiable information.--
       ``(A) In general.--The Commissioner shall ensure that all 
     personally identifiable information about students, their 
     academic achievement, and their families, and that 
     information with respect to individual schools, remains 
     confidential, in accordance with section 552a of title 5, 
     United States Code.
       ``(B) Prohibition.--The National Board, the Commissioner, 
     and any contractor or subcontractor shall not maintain any 
     system of records containing a student's name, birth 
     information, Social Security number, or parents' name or 
     names, or any other personally identifiable information.
       ``(4) Penalties.--Any unauthorized person who knowingly 
     discloses, publishes, or uses assessment questions, or 
     complete and current assessment instruments of any assessment 
     authorized under this section may be fined as specified in 
     section 3571 of title 18, United States Code or charged with 
     a class E felony.
       ``(d) Participation.--
       ``(1) Voluntary participation.--Participation in any 
     assessment authorized under this section shall be voluntary 
     for students, schools, and local educational agencies.
       ``(2) Student participation.--Parents of children selected 
     to participate in any assessment authorized under this 
     section shall be informed before the administration of any 
     authorized assessment, that their child may be excused from 
     participation for any reason, is not required to finish any 
     authorized assessment, and is not required to answer any test 
     question.
       ``(3) State participation.--
       ``(A) Voluntary.--Participation in assessments authorized 
     under this section, other than reading and mathematics in 
     grades 4 and 8, shall be voluntary.
       ``(B) Agreement.--For reading and mathematics assessments 
     in grades 4 and 8, the Secretary shall enter into an 
     agreement with any State carrying out an assessment for the 
     State under this section. Each such agreement shall contain 
     provisions designed to ensure that the State will participate 
     in the assessment.
       ``(4) Review.--Representatives of State educational 
     agencies and local educational agencies or the chief State 
     school officer shall have the right to review any assessment 
     item or procedure of any authorized assessment upon request 
     in a manner consistent with subsection (c), except the review 
     described in subparagraph (2)(C) of subsection (c) shall take 
     place in consultation with the representatives described in 
     this paragraph.
       ``(e) Student Achievement Levels.--
       ``(1) Achievement levels.--The National Assessment 
     Governing Board shall develop appropriate student achievement 
     levels for each grade or age in each subject area to be 
     tested under assessments authorized under this section, 
     except the trend assessment described in subsection 
     (b)(2)(F).
       ``(2) Determination of levels.--
       ``(A) In general.--Such levels shall--
       ``(i) be determined by--

       ``(I) identifying the knowledge that can be measured and 
     verified objectively using widely accepted professional 
     assessment standards; and
       ``(II) developing achievement levels that are consistent 
     with relevant widely accepted professional assessment 
     standards and based on the appropriate level of subject 
     matter knowledge for grade levels to be assessed, or the age 
     of the students, as the case may be.

       ``(B) National consensus approach.--After the 
     determinations described in subparagraph (A), devising a 
     national consensus approach.
       ``(C) Trial basis.--The achievement levels shall be used on 
     a trial basis until the Commissioner determines, as a result 
     of an evaluation under subsection (f), that such levels are 
     reasonable, valid, and informative to the public.
       ``(D) Status.--The Commissioner and the Board shall ensure 
     that reports using such levels on a trial basis do so in a 
     manner that makes clear the status of such levels.
       (E) Updates.--Such levels shall be updated as appropriate 
     by the National Assessment Governing Board in consultation 
     with the Commissioner.
       ``(3) Reporting.--After determining that such levels are 
     reasonable, valid, and informative to the public, as the 
     result of an evaluation under subsection (f), the 
     Commissioner shall use such levels or other methods or 
     indicators for reporting results of the National Assessment 
     and State assessments.
       ``(4) Review.--The National Assessment Governing Board 
     shall provide for a review of any trial student achievement 
     levels under development by representatives of State 
     educational agencies or the chief State school officer in a 
     manner consistent with subsection (c), except the review 
     described in subparagraph (2)(C) shall take place in 
     consultation with the representatives described in this 
     paragraph.
       ``(f) Review of National and State Assessments.--
       ``(1) Review.--
       ``(A) In general.--The Secretary shall provide for 
     continuing review of any assessment authorized under this 
     section, and student achievement levels, by 1 or more 
     professional assessment evaluation organizations.
       ``(B) Issues addressed.--Such continuing review shall 
     address--
       ``(i) whether any authorized assessment is properly 
     administered, produces high quality data that are valid and 
     reliable, is consistent with relevant widely accepted 
     professional assessment standards, and produces data on 
     student achievement that are not otherwise available to the 
     State (other than data comparing participating States to each 
     other and the Nation);
       ``(ii) whether student achievement levels are reasonable, 
     valid, reliable, and informative to the public;-
       ``(iii) whether any authorized assessment is being 
     administered as a random sample and is reporting the trends 
     in academic achievement in a valid and reliable manner in the 
     subject areas being assessed;
       ``(iv) whether any of the test questions are biased, as 
     described in section 412(e)(4); and
       ``(v) whether the appropriate authorized assessments are 
     measuring, consistent with this section, reading ability and 
     mathematical knowledge.
       ``(2) Report.--The Secretary shall report 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, the President, and the 
     Nation on the findings and recommendations of such reviews.
       ``(3) Use of findings and recommendations.--The 
     Commissioner and the National Assessment Governing Board 
     shall consider the findings and recommendations of such 
     reviews in designing the competition to select the 
     organization, or organizations, through which the 
     Commissioner carries out the National Assessment.
       ``(g) Coverage Agreements.--
       ``(1) Department of defense schools.--The Secretary and the 
     Secretary of Defense may enter into an agreement, including 
     such terms as are mutually satisfactory, to include in the 
     National Assessment elementary schools and secondary schools 
     operated by the Department of Defense.
       ``(2) Bureau of indian affairs schools.--The Secretary and 
     the Secretary of the Interior may enter into an agreement, 
     including such terms as are mutually satisfactory, to include 
     in the National Assessment schools for Indian children 
     operated or supported by the Bureau of Indian Affairs.''.
       (b) National Assessment Governing Board.--Section 412 of 
     the National Education Statistics Act of 1994 (20 U.S.C. 
     9011) is amended to read as follows:

     ``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

       ``(a) Establishment.--There is established the National 
     Assessment Governing Board (hereafter in this title referred 
     to as the ''Board''), which shall formulate policy guidelines 
     for the National Assessment.
       ``(b) Membership.--
       ``(1) Appointment and composition.--The Board shall be 
     appointed by the Secretary and be composed as follows:
       ``(A) Two Governors, or former Governors, who shall not be 
     members of the same political party.
       ``(B) Two State legislators, who shall not be members of 
     the same political party.
       ``(C) Two chief State school officers.
       ``(D) One superintendent of a local educational agency.
       ``(E) One member of a State board of education.
       ``(F) One member of a local board of education.
       ``(G) Three classroom teachers representing the grade 
     levels at which the National Assessment is conducted.
       ``(H) One representative of business or industry.
       ``(I) Two curriculum specialists.
       ``(J) Three testing and measurement experts, who shall have 
     training and experience in the field of testing and 
     measurement.
       ``(K) One nonpublic school administrator or policymaker.
       ``(L) Two school principals, of whom one shall be an 
     elementary school principal and one shall be a secondary 
     school principal.
       ``(M) Two parents who are not employed by a local, State or 
     Federal educational agency.
       ``(N) Two additional members who are representatives of the 
     general public, and who may be parents, but who are not 
     employed by a local, State, or Federal educational agency.
       ``(2) Assistant secretary for educational research.--The 
     Assistant Secretary for Educational Research and Improvement 
     shall serve as an ex officio, nonvoting member of the Board.
       ``(3) Balance and diversity.--The Secretary and the Board 
     shall ensure at all times that the membership of the Board 
     reflects regional, racial, gender, and cultural balance and 
     diversity and that the Board exercises its independent 
     judgment, free from inappropriate influences and special 
     interests.
       ``(c) Terms.--
       ``(1) In general.--Terms of service of members of the Board 
     shall be staggered and may not exceed a period of 4 years, as 
     determined by the Secretary.
       ``(2) Service limitation.--Members of the Board may serve 
     not more than two terms.
       ``(3) Change of status.--A member of the Board who changes 
     status under subsection (b) during the term of the 
     appointment of the member may continue to serve as a member 
     until the expiration of such term.
       ``(4) Conforming provision.--Members of the Board 
     previously granted 3 year terms, whose terms are in effect on 
     the date of enactment of the Department of Education 
     Appropriations Act, 2001, shall have their terms extended by 
     one year.
       ``(d) Vacancies.--
       ``(1) In general.--
       ``(A) Organizations.--The Secretary shall appoint new 
     members to fill vacancies on the

[[Page 25753]]

     Board from among individuals who are nominated by 
     organizations representing the type of individuals described 
     in subsection (b)(1) with respect to which the vacancy 
     exists.
       ``(B) Nominations.--Each organization submitting 
     nominations to the Secretary with respect to a particular 
     vacancy shall nominate for such vacancy six individuals who 
     are qualified by experience or training to fill the 
     particular Board vacancy.
       ``(C) Maintenance of board.--The Secretary's appointments 
     shall maintain the composition, diversity, and balance of the 
     Board required under subsection (b).
       ``(2) Additional nominations.--The Secretary may request 
     that each organization described in paragraph (1)(A) submit 
     additional nominations if the Secretary determines that none 
     of the individuals nominated by such organization have 
     appropriate knowledge or expertise.
       ``(e) Duties.--
       ``(1) In general.--In carrying out its functions under this 
     section the Board shall--
       ``(A) select the subject areas to be assessed (consistent 
     with section 411(b));
       ``(B) develop appropriate student achievement levels as 
     provided in section 411(e);
       ``(C) develop assessment objectives consistent with the 
     requirements of this section and test specifications that 
     produce an assessment that is valid and reliable, and are 
     based on relevant widely accepted professional standards;
       ``(D) develop a process for review of the assessment which 
     includes the active participation of teachers, curriculum 
     specialists, local school administrators, parents, and 
     concerned members of the public;
       ``(E) design the methodology of the assessment to ensure 
     that assessment items are valid and reliable, in consultation 
     with appropriate technical experts in measurement and 
     assessment, content and subject matter, sampling, and other 
     technical experts who engage in large scale surveys, 
     including the Advisory Council established under section 407;
       ``(F) consistent with section 411, measure student academic 
     achievement in grades 4, 8, and 12 in the authorized academic 
     subjects;
       ``(G) develop guidelines for reporting and disseminating 
     results;
       ``(H) develop standards and procedures for regional and 
     national comparisons; and
       ``(I) take appropriate actions needed to improve the form, 
     content, use, and reporting of results of any assessment 
     authorized by section 411 consistent with the provisions of 
     this section and section 411.
       ``(2) Delegation.--The Board may delegate any of the 
     Board's procedural and administrative functions to its staff.
       ``(3) All cognitive and noncognitive assessment items.--The 
     Board shall have final authority on the appropriateness of 
     all assessment items.
       ``(4) Prohibition against bias.--The Board shall take steps 
     to ensure that all items selected for use in the National 
     Assessment are free from racial, cultural, gender, or 
     regional bias and are secular, neutral, and non-ideological.
       ``(5) Technical.--In carrying out the duties required by 
     paragraph (1), the Board may seek technical advice, as 
     appropriate, from the Commissioner and the Advisory Council 
     on Education Statistics and other experts.
       ``(6) Report.--Not later than 90 days after an evaluation 
     of the student achievement levels under section 411(e), the 
     Board shall make a report to the Secretary, the Committee on 
     Education and the Workforce of the House of Representatives, 
     and the Committee on Health, Education, Labor, and Pensions 
     of the Senate describing the steps the Board is taking to 
     respond to each of the recommendations contained in such 
     evaluation.
       ``(f) Personnel.--
       ``(1) In general.--In the exercise of its responsibilities, 
     the Board shall be independent of the Secretary and the other 
     offices and officers of the Department.
       ``(2) Staff.--
       ``(A) In general.--The Secretary may appoint, at the 
     request of the Board, such staff as will enable the Board to 
     carry out its responsibilities.
       ``(B) Technical employees.--Such appointments may include, 
     for terms not to exceed three years and without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, not more than six 
     technical employees who may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title relating to classification and General Schedule 
     pay rates.
       ``(g) Coordination.--The Commissioner and the Board shall 
     meet periodically--
       ``(1) to ensure coordination of their duties and activities 
     relating to the National Assessment; and
       ``(2) for the Commissioner to report to the Board on the 
     Department's actions to implement the decisions of the Board.
       ``(h) Administration.--The Federal Advisory Committee Act 
     (5 U.S.C. App.) shall not apply with respect to the Board, 
     other than sections 10, 11, and 12 of such Act.''.
    TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

     SEC. 701. INDIANS.

       Title VII (20 U.S.C. 7401 et seq.) is amended to read as 
     follows:
   ``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``PART A--INDIAN EDUCATION

     ``SEC. 7101. STATEMENT OF POLICY.

       ``It is the policy of the United States to fulfill the 
     Federal Government's unique and continuing trust relationship 
     with and responsibility to the Indian people for the 
     education of Indian children. The Federal Government will 
     continue to work with local educational agencies, Indian 
     tribes and organizations, postsecondary institutions, and 
     other entities toward the goal of ensuring that programs that 
     serve Indian children are of the highest quality and provide 
     for not only the basic elementary and secondary educational 
     needs, but also the unique educational and culturally related 
     academic needs of these children.

     ``SEC. 7102. PURPOSE.

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

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

     ``SEC. 7111. PURPOSE.

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

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

       ``(a) In General.--The Secretary may make grants, from 
     allocations made under section 7113, to local educational 
     agencies and Indian tribes, in accordance with this section 
     and section 7113.
       ``(b) Local Educational Agencies.--
       ``(1) Enrollment requirements.--A local educational agency 
     shall be eligible for a grant under this subpart for any 
     fiscal year if the number of Indian children eligible under 
     section 7117 who were enrolled in the schools of the agency, 
     and to whom the agency provided free public education, during 
     the preceding fiscal year--
       ``(A) was at least 10; or
       ``(B) constituted not less than 25 percent of the total 
     number of individuals enrolled in the schools of such agency.
       ``(2) Exclusion.--The requirement of paragraph (1) shall 
     not apply in Alaska, California, or Oklahoma, or with respect 
     to any local educational agency located on, or in proximity 
     to, a reservation.
       ``(c) Indian Tribes.--
       ``(1) In general.--If a local educational agency that is 
     otherwise eligible for a grant under this subpart does not 
     establish a committee under section 7114(c)(4) for such 
     grant, an Indian tribe that represents not less than \1/2\ of 
     the eligible Indian children who are served by such local 
     educational agency may apply for such grant.
       ``(2) Special rule.--The Secretary shall treat each Indian 
     tribe applying for a grant pursuant to paragraph (1) as if 
     such Indian tribe were a local educational agency for 
     purposes of this subpart, except that any such tribe is not 
     subject to section 7114(c)(4), section 7118(c), or section 
     7119.

     ``SEC. 7113. AMOUNT OF GRANTS.

       ``(a) Amount of Grant Awards.--
       ``(1) In general.--Except as provided in subsection (b) and 
     paragraph (2), the Secretary shall allocate to each local 
     educational agency that has an approved application under 
     this subpart an amount equal to the product of--
       ``(A) the number of Indian children who are eligible under 
     section 7117 and served by such agency; and
       ``(B) the greater of--
       ``(i) the average per pupil expenditure of the State in 
     which such agency is located; or
       ``(ii) 80 percent of the average per pupil expenditure of 
     all the States.
       ``(2) Reduction.--The Secretary shall reduce the amount of 
     each allocation otherwise determined under this section in 
     accordance with subsection (e).
       ``(b) Minimum Grant.--
       ``(1) In general.--Notwithstanding subsection (e), an 
     entity that is eligible for a grant under section 7112, and a 
     school that is operated or supported by the Bureau of Indian 
     Affairs that is eligible for a grant under subsection (d), 
     that submits an application that is approved by the 
     Secretary, shall, subject to appropriations, receive a grant 
     under this subpart in an amount that is not less than $3,000.
       ``(2) Consortia.--Local educational agencies may form a 
     consortium for the purpose of obtaining grants under this 
     subpart.
       ``(3) Increase.--The Secretary may increase the minimum 
     grant under paragraph (1) to not more than $4,000 for all 
     grantees if the Secretary

[[Page 25754]]

     determines such increase is necessary to ensure the quality 
     of the programs provided.
       ``(c) Definition.--For the purpose of this section, the 
     term `average per pupil expenditure', used with respect to a 
     State, means an amount equal to--
       ``(1) the sum of the aggregate current expenditures of all 
     the local educational agencies in the State, plus any direct 
     current expenditures by the State for the operation of such 
     agencies, without regard to the sources of funds from which 
     such local or State expenditures were made, during the second 
     fiscal year preceding the fiscal year for which the 
     computation is made; divided by
       ``(2) the aggregate number of children who were included in 
     average daily attendance for whom such agencies provided free 
     public education during such preceding fiscal year.
       ``(d) Schools Operated or Supported by the Bureau of Indian 
     Affairs.--
       ``(1) In general.--Subject to subsection (e), in addition 
     to the grants awarded under subsection (a), the Secretary 
     shall allocate to the Secretary of the Interior an amount 
     equal to the product of--
       ``(A) the total number of Indian children enrolled in 
     schools that are operated by--
       ``(i) the Bureau of Indian Affairs; or
       ``(ii) an Indian tribe, or an organization controlled or 
     sanctioned by an Indian tribal government, for the children 
     of that tribe under a contract with, or grant from, the 
     Department of the Interior under the Indian Self-
     Determination Act or the Tribally Controlled Schools Act of 
     1988; and
       ``(B) the greater of--
       ``(i) the average per pupil expenditure of the State in 
     which the school is located; or
       ``(ii) 80 percent of the average per pupil expenditure of 
     all the States.
       ``(2) Special rule.--Any school described in paragraph 
     (1)(A) that wishes to receive an allocation under this 
     subpart shall submit an application in accordance with 
     section 7114, and shall otherwise be treated as a local 
     educational agency for the purpose of this subpart, except 
     that such school shall not be subject to section 7114(c)(4), 
     section 7118(c), or section 7119.


       ``(e) Ratable Reductions.--If the sums appropriated for any 
     fiscal year under section 7152(a) are insufficient to pay in 
     full the amounts determined for local educational agencies 
     under subsection (a)(1) and for the Secretary of the Interior 
     under subsection (d), each of those amounts shall be ratably 
     reduced.

     ``SEC. 7114. APPLICATIONS.

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

     ``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.

       ``(a) General Requirements.--Each local educational agency 
     that receives a grant under this subpart shall use the grant 
     funds, in a manner consistent with the purpose specified in 
     section 7111, for services and activities that--
       (1) are designed to carry out the comprehensive program of 
     the local educational agency for Indian students, and 
     described in the application of the local educational agency 
     submitted to the Secretary under section 7114(a);
       ``(2) are designed with special regard for the language and 
     cultural needs of the Indian students; and
       ``(3) supplement and enrich the regular school program of 
     such agency.
       ``(b) Particular Activities.--The services and activities 
     referred to in subsection (a) may include--
       ``(1) culturally related activities that support the 
     program described in the application submitted by the local 
     educational agency;
       ``(2) early childhood and family programs that emphasize 
     school readiness;
       ``(3) enrichment programs that focus on problem solving and 
     cognitive skills development and directly support the 
     attainment of challenging State academic content and student 
     academic achievement standards;
       ``(4) integrated educational services in combination with 
     other programs that meet the needs of Indian children and 
     their families;
       ``(5) career preparation activities to enable Indian 
     students to participate in programs such as the programs 
     supported by the Carl D. Perkins Vocational and Technical 
     Education Act of 1998, including programs for tech-prep 
     education, mentoring, and apprenticeship;
       ``(6) activities to educate individuals concerning 
     substance abuse and to prevent substance abuse;
       ``(7) the acquisition of equipment, but only if the 
     acquisition of the equipment is essential to achieve the 
     purpose described in section 7111;
       ``(8) activities that promote the incorporation of 
     culturally responsive teaching and learning strategies into 
     the educational program of the local educational agency;
       ``(9) activities that incorporate American Indian and 
     Alaska Native specific curriculum content, consistent with 
     State standards, into the curriculum used by the local 
     educational agency;
       ``(10) family literacy services; and
       ``(11) activities that recognize and support the unique 
     cultural and educational needs of Indian children, and 
     incorporate appropriately qualified tribal elders and 
     seniors.

[[Page 25755]]

       ``(c) Schoolwide Programs.--Notwithstanding any other 
     provision of law, a local educational agency may use funds 
     made available to such agency under this subpart to support a 
     schoolwide program under section 1114 if--
       ``(1) the committee established pursuant to section 
     7114(c)(4) approves the use of the funds for the schoolwide 
     program; and
       ``(2) the schoolwide program is consistent with the purpose 
     described in section 7111.
       ``(d) Limitation on Administrative Costs.--Not more than 5 
     percent of the funds provided to a grantee under this subpart 
     for any fiscal year may be used for administrative purposes.

     ``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

       ``(a) Plan.--An entity receiving funds under this subpart 
     may submit a plan to the Secretary for the integration of 
     education and related services provided to Indian students.
       ``(b) Consolidation of Programs.--Upon the receipt of an 
     acceptable plan under subsection (a), the Secretary, in 
     cooperation with each Federal agency providing grants for the 
     provision of education and related services to the entity, 
     shall authorize the entity to consolidate, in accordance with 
     such plan, the federally funded education and related 
     services programs of the entity and the Federal programs, or 
     portions of the programs, serving Indian students in a manner 
     that integrates the program services involved into a single, 
     coordinated, comprehensive program and reduces administrative 
     costs by consolidating administrative functions.
       ``(c) Programs Affected.--The funds that may be 
     consolidated in a demonstration project under any such plan 
     referred to in subsection (a) shall include funds for any 
     Federal program exclusively serving Indian children, or the 
     funds reserved under any Federal program to exclusively serve 
     Indian children, under which the entity is eligible for 
     receipt of funds under a statutory or administrative formula 
     for the purposes of providing education and related services 
     that would be used to serve Indian students.
       ``(d) Plan Requirements.--For a plan to be acceptable 
     pursuant to subsection (b), the plan shall--
       ``(1) identify the programs or funding sources to be 
     consolidated;
       ``(2) be consistent with the objectives of this section 
     concerning authorizing the services to be integrated in a 
     demonstration project;
       ``(3) describe a comprehensive strategy that identifies the 
     full range of potential educational opportunities and related 
     services to be provided to assist Indian students to achieve 
     the objectives set forth in this subpart;
       ``(4) describe the way in which services are to be 
     integrated and delivered and the results expected from the 
     plan;
       ``(5) identify the projected expenditures under the plan in 
     a single budget;
       ``(6) identify the State, tribal, or local agency or 
     agencies to be involved in the delivery of the services 
     integrated under the plan;
       ``(7) identify any statutory provisions, regulations, 
     policies, or procedures that the entity believes need to be 
     waived in order to implement the plan;
       ``(8) set forth measures for academic content and student 
     academic achievement goals designed to be met within a 
     specific period of time; and
       ``(9) be approved by a committee formed in accordance with 
     section 7114(c)(4), if such a committee exists.
       ``(e) Plan Review.--Upon receipt of the plan from an 
     eligible entity, the Secretary shall consult with the 
     Secretary of each Federal department providing funds to be 
     used to implement the plan, and with the entity submitting 
     the plan. The parties so consulting shall identify any 
     waivers of statutory requirements or of Federal departmental 
     regulations, policies, or procedures necessary to enable the 
     entity to implement the plan. Notwithstanding any other 
     provision of law, the Secretary of the affected department 
     shall have the authority to waive any regulation, policy, or 
     procedure promulgated by that department that has been so 
     identified by the entity or department, unless the Secretary 
     of the affected department determines that such a waiver is 
     inconsistent with the objectives of this subpart or those 
     provisions of the statute from which the program involved 
     derives authority that are specifically applicable to Indian 
     students.
       ``(f) Plan Approval.--Within 90 days after the receipt of 
     an entity's plan by the Secretary, the Secretary shall inform 
     the entity, in writing, of the Secretary's approval or 
     disapproval of the plan. If the plan is disapproved, the 
     entity shall be informed, in writing, of the reasons for the 
     disapproval and shall be given an opportunity to amend the 
     plan or to petition the Secretary to reconsider such 
     disapproval.
       ``(g) Responsibilities of Department of Education.--Not 
     later than 180 days after the date of enactment of the No 
     Child Left Behind Act of 2001, the Secretary of Education, 
     the Secretary of the Interior, and the head of any other 
     Federal department or agency identified by the Secretary of 
     Education, shall enter into an interdepartmental memorandum 
     of agreement providing for the implementation of the 
     demonstration projects authorized under this section. The 
     lead agency head for a demonstration project under this 
     section shall be--
       ``(1) the Secretary of the Interior, in the case of an 
     entity meeting the definition of a contract or grant school 
     under title XI of the Education Amendments of 1978; or
       ``(2) the Secretary of Education, in the case of any other 
     entity.
       ``(h) Responsibilities of Lead Agency.--The 
     responsibilities of the lead agency shall include--
       ``(1) the use of a single report format related to the plan 
     for the individual project, which shall be used by an 
     eligible entity to report on the activities undertaken under 
     the project;
       ``(2) the use of a single report format related to the 
     projected expenditures for the individual project which shall 
     be used by an eligible entity to report on all project 
     expenditures;
       ``(3) the development of a single system of Federal 
     oversight for the project, which shall be implemented by the 
     lead agency; and
       ``(4) the provision of technical assistance to an eligible 
     entity appropriate to the project, except that an eligible 
     entity shall have the authority to accept or reject the plan 
     for providing such technical assistance and the technical 
     assistance provider.
       ``(i) Report Requirements.--A single report format shall be 
     developed by the Secretary, consistent with the requirements 
     of this section. Such report format shall require that 
     reports described in subsection (h), together with records 
     maintained on the consolidated program at the local level, 
     shall contain such information as will allow a determination 
     that the eligible entity has complied with the requirements 
     incorporated in its approved plan, including making a 
     demonstration of student academic achievement, and will 
     provide assurances to each Secretary that the eligible entity 
     has complied with all directly applicable statutory 
     requirements and with those directly applicable regulatory 
     requirements that have not been waived.
       ``(j) No Reduction in Amounts.--In no case shall the amount 
     of Federal funds available to an eligible entity involved in 
     any demonstration project be reduced as a result of the 
     enactment of this section.
       ``(k) Interagency Fund Transfers Authorized.--The Secretary 
     is authorized to take such action as may be necessary to 
     provide for an interagency transfer of funds otherwise 
     available to an eligible entity in order to further the 
     objectives of this section.
       ``(l) Administration of Funds.--
       ``(1) In general.--Program funds for the consolidated 
     programs shall be administered in such a manner as to allow 
     for a determination that funds from a specific program are 
     spent on allowable activities authorized under such program, 
     except that the eligible entity shall determine the 
     proportion of the funds granted that shall be allocated to 
     such program.
       ``(2) Separate records not required.--Nothing in this 
     section shall be construed as requiring the eligible entity 
     to maintain separate records tracing any services or 
     activities conducted under the approved plan to the 
     individual programs under which funds were authorized for the 
     services or activities, nor shall the eligible entity be 
     required to allocate expenditures among such individual 
     programs.
       ``(m) Overage.--The eligible entity may commingle all 
     administrative funds from the consolidated programs and shall 
     be entitled to the full amount of such funds (under each 
     program's or agency's regulations). The overage (defined as 
     the difference between the amount of the commingled funds and 
     the actual administrative cost of the programs) shall be 
     considered to be properly spent for Federal audit purposes, 
     if the overage is used for the purposes provided for under 
     this section.
       ``(n) Fiscal Accountability.--Nothing in this part shall be 
     construed so as to interfere with the ability of the 
     Secretary or the lead agency to fulfill the responsibilities 
     for the safeguarding of Federal funds pursuant to chapter 75 
     of title 31, United States Code.
       ``(o) Report on Statutory Obstacles to Program 
     Integration.--
       ``(1) Preliminary report.--Not later than 2 years after the 
     date of enactment of the No Child Left Behind Act of 2001, 
     the Secretary of Education shall submit a preliminary report 
     to the Committee on Education and the Workforce and the 
     Committee on Resources of the House of Representatives and 
     the Committee on Health, Education, Labor, and Pensions and 
     the Committee on Indian Affairs of the Senate on the status 
     of the implementation of the demonstration projects 
     authorized under this section.
       ``(2) Final report.--Not later than 5 years after the date 
     of enactment of the No Child Left Behind Act of 2001, the 
     Secretary of Education shall submit a report to the Committee 
     on Education and the Workforce and the Committee on Resources 
     of the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions and the Committee on Indian 
     Affairs of the Senate on the results of the implementation of 
     the demonstration projects authorized under this section. 
     Such report shall identify statutory barriers to the ability 
     of participants to integrate more effectively their education 
     and related services to Indian students in a manner 
     consistent with the objectives of this section.
       ``(p) Definitions.--For the purposes of this section, the 
     term `Secretary' means--
       ``(1) the Secretary of the Interior, in the case of an 
     entity meeting the definition of a contract or grant school 
     under title XI of the Education Amendments of 1978; or
       ``(2) the Secretary of Education, in the case of any other 
     entity.

     ``SEC. 7117. STUDENT ELIGIBILITY FORMS.

       ``(a) In General.--The Secretary shall require that, as 
     part of an application for a grant under this subpart, each 
     applicant shall maintain a file, with respect to each Indian 
     child for whom the local educational agency provides a free

[[Page 25756]]

     public education, that contains a form that sets forth 
     information establishing the status of the child as an Indian 
     child eligible for assistance under this subpart, and that 
     otherwise meets the requirements of subsection (b).
       ``(b) Forms.--The form described in subsection (a) shall 
     include--
       ``(1) either--
       ``(A)(i) the name of the tribe or band of Indians (as 
     defined in section 7151) with respect to which the child 
     claims membership;
       ``(ii) the enrollment number establishing the membership of 
     the child (if readily available); and
       ``(iii) the name and address of the organization that 
     maintains updated and accurate membership data for such tribe 
     or band of Indians; or
       ``(B) the name, the enrollment number (if readily 
     available), and the name and address of the organization 
     responsible for maintaining updated and accurate membership 
     data, of any parent or grandparent of the child from whom the 
     child claims eligibility under this subpart, if the child is 
     not a member of the tribe or band of Indians (as so defined);
       ``(2) a statement of whether the tribe or band of Indians 
     (as so defined), with respect to which the child, or parent 
     or grandparent of the child, claims membership, is federally 
     recognized;
       ``(3) the name and address of the parent or legal guardian 
     of the child;
       ``(4) a signature of the parent or legal guardian of the 
     child that verifies the accuracy of the information supplied; 
     and
       ``(5) any other information that the Secretary considers 
     necessary to provide an accurate program profile.
       ``(c) Statutory Construction.--Nothing in this section 
     shall be construed to affect a definition contained in 
     section 7151.
       ``(d) Forms and Standards of Proof.--The forms and the 
     standards of proof (including the standard of good faith 
     compliance) that were in use during the 1985-86 academic year 
     to establish the eligibility of a child for entitlement under 
     the Indian Elementary and Secondary School Assistance Act 
     shall be the forms and standards of proof used--
       ``(1) to establish eligibility under this subpart; and
       ``(2) to meet the requirements of subsection (a).
       ``(e) Documentation.--For purposes of determining whether a 
     child is eligible to be counted for the purpose of computing 
     the amount of a grant award under section 7113, the 
     membership of the child, or any parent or grandparent of the 
     child, in a tribe or band of Indians (as so defined) may be 
     established by proof other than an enrollment number, 
     notwithstanding the availability of an enrollment number for 
     a member of such tribe or band. Nothing in subsection (b) 
     shall be construed to require the furnishing of an enrollment 
     number.
       ``(f) Monitoring and Evaluation Review.--
       ``(1) In general.--
       ``(A) Review.--For each fiscal year, in order to provide 
     such information as is necessary to carry out the 
     responsibility of the Secretary to provide technical 
     assistance under this subpart, the Secretary shall conduct a 
     monitoring and evaluation review of a sampling of the 
     recipients of grants under this subpart. The sampling 
     conducted under this subparagraph shall take into account the 
     size of and the geographic location of each local educational 
     agency.
       ``(B) Exception.--A local educational agency may not be 
     held liable to the United States or be subject to any 
     penalty, by reason of the findings of an audit that relates 
     to the date of completion, or the date of submission, of any 
     forms used to establish, before April 28, 1988, the 
     eligibility of a child for an entitlement under the Indian 
     Elementary and Secondary School Assistance Act.
       ``(2) False information.--Any local educational agency that 
     provides false information in an application for a grant 
     under this subpart shall--
       ``(A) be ineligible to apply for any other grant under this 
     subpart; and
       ``(B) be liable to the United States for any funds from the 
     grant that have not been expended.
       ``(3) Excluded children.--A student who provides false 
     information for the form required under subsection (a) shall 
     not be counted for the purpose of computing the amount of a 
     grant under section 7113.
       ``(g) Tribal Grant and Contract Schools.--Notwithstanding 
     any other provision of this section, in calculating the 
     amount of a grant under this subpart to a tribal school that 
     receives a grant or contract from the Bureau of Indian 
     Affairs, the Secretary shall use only 1 of the following, as 
     selected by the school:
       ``(1) A count of the number of students in the schools 
     certified by the Bureau.
       ``(2) A count of the number of students for whom the school 
     has eligibility forms that comply with this section.
       ``(h) Timing of Child Counts.--For purposes of determining 
     the number of children to be counted in calculating the 
     amount of a local educational agency's grant under this 
     subpart (other than in the case described in subsection 
     (g)(1)), the local educational agency shall--
       ``(1) establish a date on, or a period not longer than 31 
     consecutive days during, which the agency counts those 
     children, if that date or period occurs before the deadline 
     established by the Secretary for submitting an application 
     under section 7114; and
       ``(2) determine that each such child was enrolled, and 
     receiving a free public education, in a school of the agency 
     on that date or during that period, as the case may be.

     ``SEC. 7118. PAYMENTS.

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

     ``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

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

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

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

       ``(a) Purpose.--
       ``(1) In general.--It is the purpose of this section to 
     support projects to develop, test, and demonstrate the 
     effectiveness of services and programs to improve educational 
     opportunities and achievement of Indian children.
       ``(2) Coordination.--The Secretary shall take the necessary 
     actions to achieve the coordination of activities assisted 
     under this subpart with--
       ``(A) other programs funded under this Act; and
       ``(B) other Federal programs operated for the benefit of 
     American Indian and Alaska Native children.
       ``(b) Eligible Entities.--In this section, the term 
     `eligible entity' means a State educational agency, local 
     educational agency, Indian tribe, Indian organization, 
     federally supported elementary school or secondary school for 
     Indian students, Indian institution (including an Indian 
     institution of higher education), or a consortium of such 
     entities.

[[Page 25757]]

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

     ``SEC. 7122. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND 
                   EDUCATION PROFESSIONALS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to increase the number of qualified Indian 
     individuals in teaching or other education professions that 
     serve Indian people;
       ``(2) to provide training to qualified Indian individuals 
     to enable such individuals to become teachers, 
     administrators, teacher aides, social workers, and ancillary 
     educational personnel; and
       ``(3) to improve the skills of qualified Indian individuals 
     who serve in the capacities described in paragraph (2).
       ``(b) Eligible Entities.--For the purpose of this section, 
     the term `eligible entity' means--
       ``(1) an institution of higher education, including an 
     Indian institution of higher education;
       ``(2) a State educational agency or local educational 
     agency, in consortium with an institution of higher 
     education;
       ``(3) an Indian tribe or organization, in consortium with 
     an institution of higher education; and
       ``(4) a Bureau-funded school (as defined in section 1146 of 
     the Education Amendments of 1978).
       ``(c) Program Authorized.--The Secretary is authorized to 
     award grants to eligible entities having applications 
     approved under this section to enable those entities to carry 
     out the activities described in subsection (d).
       ``(d) Authorized Activities.--
       ``(1) In general.--Grant funds under this section shall be 
     used for activities to provide support and training for 
     Indian individuals in a manner consistent with the purposes 
     of this section. Such activities may include continuing 
     programs, symposia, workshops, conferences, and direct 
     financial support, and may include programs designed to train 
     tribal elders and seniors.
       ``(2) Special rules.--
       ``(A) Type of training.--For education personnel, the 
     training received pursuant to a grant under this section may 
     be inservice or preservice training.
       ``(B) Program.--For individuals who are being trained to 
     enter any field other than teaching, the training received 
     pursuant to a grant under this section shall be in a program 
     that results in a graduate degree.
       ``(e) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information, as the Secretary may reasonably require.
       ``(f) Special Rule.--In awarding grants under this section, 
     the Secretary--
       ``(1) shall consider the prior performance of the eligible 
     entity; and
       ``(2) may not limit eligibility to receive a grant under 
     this section on the basis of--
       ``(A) the number of previous grants the Secretary has 
     awarded such entity; or
       ``(B) the length of any period during which such entity 
     received such grants.
       ``(g) Grant Period.--Each grant under this section shall be 
     awarded for a period of not more than 5 years.
       ``(h) Service Obligation.--
       ``(1) In general.--The Secretary shall require, by 
     regulation, that an individual who receives training pursuant 
     to a grant made under this section--
       ``(A) perform work--
       ``(i) related to the training received under this section; 
     and
       ``(ii) that benefits Indian people; or
       ``(B) repay all or a prorated part of the assistance 
     received.
       ``(2) Reporting.--The Secretary shall establish, by 
     regulation, a reporting procedure under which a grant 
     recipient under this section shall, not later than 12 months 
     after the date of completion of the training, and 
     periodically thereafter, provide information concerning 
     compliance with the work requirement under paragraph (1).

                    ``Subpart 3--National Activities

     ``SEC. 7131. NATIONAL RESEARCH ACTIVITIES.

       ``(a) Authorized Activities.--The Secretary may use funds 
     made available under section 7152(b) for each fiscal year 
     to--
       ``(1) conduct research related to effective approaches for 
     the education of Indian children and adults;
       ``(2) evaluate federally assisted education programs from 
     which Indian children and adults may benefit;
       ``(3) collect and analyze data on the educational status 
     and needs of Indians; and
       ``(4) carry out other activities that are consistent with 
     the purpose of this part.
       ``(b) Eligibility.--The Secretary may carry out any of the 
     activities described in subsection (a) directly or through 
     grants to, or contracts or cooperative agreements with, 
     Indian tribes, Indian organizations, State educational 
     agencies, local educational agencies, institutions of higher 
     education, including Indian institutions of higher education, 
     and other public and private agencies and institutions.
       ``(c) Coordination.--Research activities supported under 
     this section--

[[Page 25758]]

       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities that 
     are jointly funded and carried out by the Office of Indian 
     Education Programs and the Office of Educational Research and 
     Improvement.

     ``SEC. 7132. IN-SERVICE TRAINING FOR TEACHERS OF INDIAN 
                   CHILDREN.

       ``(a) Grants Authorized.--In addition to the grants 
     authorized by section 7122(c), the Secretary may make grants 
     to eligible consortia for the provision of high quality in-
     service training. The Secretary may make such a grant to--
       ``(1) a consortium of a tribal college and an institution 
     of higher education that awards a degree in education; or
       ``(2) a consortium of--
       ``(A) a tribal college;
       ``(B) an institution of higher education that awards a 
     degree in education; and
       ``(C) 1 or more elementary schools or secondary schools 
     operated by the Bureau of Indian Affairs, local educational 
     agencies serving Indian children, or tribal educational 
     agencies.
       ``(b) Use of Funds.--
       ``(1) In-service training.--A consortium that receives a 
     grant under subsection (a) shall use the grant funds only to 
     provide high quality in-service training to teachers, 
     including teachers who are not Indians, in schools of local 
     educational agencies with substantial numbers of Indian 
     children enrolled in their schools, in order to better meet 
     the needs of those children.
       ``(2) Components.--The training described in paragraph (1) 
     shall include such activities as preparing teachers to use 
     the best available scientifically based research practices 
     and learning strategies, and to make the most effective use 
     of curricula and materials, to respond to the unique needs of 
     Indian children in their classrooms.
       ``(c) Preference for Indian Applicants.--In applying 
     section 7143 to this section, the Secretary shall give a 
     preference to any consortium that includes 1 or more of the 
     entities described in section 7143.

     ``SEC. 7133. FELLOWSHIPS FOR INDIAN STUDENTS.

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

     ``SEC. 7134. GIFTED AND TALENTED INDIAN STUDENTS.

       ``(a) Program Authorized.--The Secretary is authorized to--
       ``(1) establish 2 centers for gifted and talented Indian 
     students at tribally controlled community colleges in 
     accordance with this section; and
       ``(2) support demonstration projects described in 
     subsection (c).
       ``(b) Eligible Entities.--The Secretary shall make grants, 
     or enter into contracts, for the activities described in 
     subsection (a), to or with--
       ``(1) 2 tribally controlled community colleges that--
       ``(A) are eligible for funding under the Tribally 
     Controlled College or University Assistance Act of 1978; and
       ``(B) are fully accredited; or
       ``(2) the American Indian Higher Education Consortium, if 
     the Secretary does not receive applications that the 
     Secretary determines to be approvable from 2 colleges that 
     meet the requirements of paragraph (1).
       ``(c) Use of Funds.--
       ``(1) In general.--Funds made available through the grants 
     made, or contracts entered into, by the Secretary under 
     subsection (b) shall be used for--
       ``(A) the establishment of centers described in subsection 
     (a); and
       ``(B) carrying out demonstration projects designed to--
       ``(i) address the special needs of Indian students in 
     elementary schools and secondary schools who are gifted and 
     talented; and
       ``(ii) provide such support services to the families of the 
     students described in clause (i) as are needed to enable such 
     students to benefit from the projects.
       ``(2) Subcontracts.--Each recipient of a grant or contract 
     under subsection (b) to carry out a demonstration project 
     under subsection (a) may enter into a contract with any other 
     entity, including the Children's Television Workshop, to 
     carry out the demonstration project.
       ``(3) Demonstration projects.--Demonstration projects 
     assisted under subsection (b) may include--
       ``(A) the identification of the special needs of gifted and 
     talented Indian students, particularly at the elementary 
     school level, giving attention to--
       ``(i) identifying the emotional and psychosocial needs of 
     such students; and
       ``(ii) providing such support services to the families of 
     such students as are needed to enable such students to 
     benefit from the projects;
       ``(B) the conduct of educational, psychosocial, and 
     developmental activities that the Secretary determines hold a 
     reasonable promise of resulting in substantial progress 
     toward meeting the educational needs of such gifted and 
     talented children, including--
       ``(i) demonstrating and exploring the use of Indian 
     languages and exposure to Indian cultural traditions; and
       ``(ii) carrying out mentoring and apprenticeship programs;
       ``(C) the provision of technical assistance and the 
     coordination of activities at schools that receive grants 
     under subsection (d) with respect to the activities assisted 
     under such grants, the evaluation of programs assisted under 
     such grants, or the dissemination of such evaluations;
       ``(D) the use of public television in meeting the special 
     educational needs of such gifted and talented children;
       ``(E) leadership programs designed to replicate programs 
     for such children throughout the United States, including 
     disseminating information derived from the demonstration 
     projects conducted under subsection (a); and
       ``(F) appropriate research, evaluation, and related 
     activities pertaining to the needs of such children and to 
     the provision of such support services to the families of 
     such children as are needed to enable such children to 
     benefit from the projects.
       ``(4) Application.--Each eligible entity desiring a grant 
     or contract under subsection (b) shall submit an application 
     to the Secretary at such time, in such manner, and 
     accompanied by such information, as the Secretary may 
     reasonably require.
       ``(d) Additional Grants.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall award 5 grants to schools 
     funded by the Bureau of Indian Affairs (hereafter referred to 
     individually in this section as a `Bureau school') for 
     program research and development and the development and 
     dissemination of curriculum and teacher training material, 
     regarding--
       ``(A) gifted and talented students;
       ``(B) college preparatory studies (including programs for 
     Indian students with an interest in pursuing teaching 
     careers);
       ``(C) students with special culturally related academic 
     needs, including students with social, lingual, and cultural 
     needs; or
       ``(D) mathematics and science education.
       ``(2) Applications.--Each Bureau school desiring a grant 
     under this subsection shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information, as the Secretary may reasonably require.

[[Page 25759]]

       ``(3) Special rule.--Each application described in 
     paragraph (2) shall be developed, and each grant under this 
     subsection shall be administered, jointly by the supervisor 
     of the Bureau school and the local educational agency serving 
     such school.
       ``(4) Requirements.--In awarding grants under paragraph 
     (1), the Secretary shall achieve a mixture of the programs 
     described in paragraph (1) that ensures that Indian students 
     at all grade levels and in all geographic areas of the United 
     States are able to participate in a program assisted under 
     this subsection.
       ``(5) Grant period.--Subject to the availability of 
     appropriations, a grant awarded under paragraph (1) shall be 
     awarded for a 3-year period and may be renewed by the 
     Secretary for additional 3-year periods if the Secretary 
     determines that the performance of the grant recipient has 
     been satisfactory.
       ``(6) Dissemination.--
       ``(A) Cooperative efforts.--The dissemination of any 
     materials developed from activities assisted under paragraph 
     (1) shall be carried out in cooperation with entities that 
     receive funds pursuant to subsection (b).
       ``(B) Report.--The Secretary shall prepare and submit to 
     the Secretary of the Interior and to Congress a report 
     concerning any results from activities described in this 
     subsection.
       ``(7) Evaluation costs.--
       ``(A) Division.--The costs of evaluating any activities 
     assisted under paragraph (1) shall be divided between the 
     Bureau schools conducting such activities and the recipients 
     of grants or contracts under subsection (b) who conduct 
     demonstration projects under subsection (a).
       ``(B) Grants and contracts.--If no funds are provided under 
     subsection (b) for--
       ``(i) the evaluation of activities assisted under paragraph 
     (1);
       ``(ii) technical assistance and coordination with respect 
     to such activities; or
       ``(iii) the dissemination of the evaluations referred to in 
     clause (i),
     the Secretary shall make such grants, or enter into such 
     contracts, as are necessary to provide for the evaluations, 
     technical assistance, and coordination of such activities, 
     and the dissemination of the evaluations.
       ``(e) Information Network.--The Secretary shall encourage 
     each recipient of a grant or contract under this section to 
     work cooperatively as part of a national network to ensure 
     that the information developed by the grant or contract 
     recipient is readily available to the entire educational 
     community.

     ``SEC. 7135. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE 
                   PLANNING AND DEVELOPMENT.

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

     ``SEC. 7136. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR 
                   ADULT INDIANS.

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

                  ``Subpart 4--Federal Administration

     ``SEC. 7141. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

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

[[Page 25760]]

       ``(A) any recommendations that the Council considers 
     appropriate for the improvement of Federal education programs 
     that include Indian children or adults as participants, or 
     that may benefit Indian children or adults; and
       ``(B) recommendations concerning the funding of any program 
     described in subparagraph (A).

     ``SEC. 7142. PEER REVIEW.

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

     ``SEC. 7143. PREFERENCE FOR INDIAN APPLICANTS.

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

     ``SEC. 7144. MINIMUM GRANT CRITERIA.

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

       ``Subpart 5--Definitions; Authorizations of Appropriations

     ``SEC. 7151. DEFINITIONS.

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

     ``SEC. 7152. AUTHORIZATIONS OF APPROPRIATIONS.

       ``(a) Subpart 1.--For the purpose of carrying out subpart 
     1, there are authorized to be appropriated $96,400,000 for 
     fiscal year 2002 and such sums as may be necessary for each 
     of the 5 succeeding fiscal years.
       ``(b) Subparts 2 and 3.--For the purpose of carrying out 
     subparts 2 and 3, there are authorized to be appropriated 
     $24,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years.

                  ``PART B--NATIVE HAWAIIAN EDUCATION

     ``SEC. 7201. SHORT TITLE.

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

     ``SEC. 7202. FINDINGS.

       ``Congress finds the following:
       ``(1) Native Hawaiians are a distinct and unique indigenous 
     people with a historical continuity to the original 
     inhabitants of the Hawaiian archipelago, whose society was 
     organized as a nation and internationally recognized as a 
     nation by the United States, Britain, France, and Japan, as 
     evidenced by treaties governing friendship, commerce, and 
     navigation.
       ``(2) At the time of the arrival of the first nonindigenous 
     people in Hawai`i in 1778, the Native Hawaiian people lived 
     in a highly organized, self-sufficient subsistence social 
     system based on a communal land tenure system with a 
     sophisticated language, culture, and religion.
       ``(3) A unified monarchal government of the Hawaiian 
     Islands was established in 1810 under Kamehameha I, the first 
     King of Hawai`i.
       ``(4) From 1826 until 1893, the United States recognized 
     the sovereignty and independence of the Kingdom of Hawai`i, 
     which was established in 1810 under Kamehameha I, extended 
     full and complete diplomatic recognition to the Kingdom of 
     Hawai`i, and entered into treaties and conventions with the 
     Kingdom of Hawai`i to govern friendship, commerce and 
     navigation in 1826, 1842, 1849, 1875, and 1887.
       ``(5) In 1893, the sovereign, independent, internationally 
     recognized, and indigenous government of Hawai`i, the Kingdom 
     of Hawai`i, was overthrown by a small group of non-Hawaiians, 
     including United States citizens, who were assisted in their 
     efforts by the United States Minister, a United States naval 
     representative, and armed naval forces of the United States. 
     Because of the participation of United States agents and 
     citizens in the overthrow of the Kingdom of Hawai`i, in 1993 
     the United States apologized to Native Hawaiians for the 
     overthrow and the deprivation of the rights of Native 
     Hawaiians to self-determination through Public Law 103-150 
     (107 Stat. 1510).
       ``(6) In 1898, the joint resolution entitled `Joint 
     Resolution to provide for annexing the Hawaiian Islands to 
     the United States', approved July 7, 1898 (30 Stat. 750), 
     ceded absolute title of all lands held by the Republic of 
     Hawai`i, including the government and crown lands of the 
     former Kingdom of Hawai`i, to the United States, but mandated 
     that revenue generated from the lands be used `solely for the 
     benefit of the inhabitants of the Hawaiian Islands for 
     educational and other public purposes'.
       ``(7) By 1919, the Native Hawaiian population had declined 
     from an estimated 1,000,000 in 1778 to an alarming 22,600, 
     and in recognition of this severe decline, Congress enacted 
     the Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which 
     designated approximately 200,000 acres of ceded public lands 
     for homesteading by Native Hawaiians.
       ``(8) Through the enactment of the Hawaiian Homes 
     Commission Act, 1920, Congress affirmed the special 
     relationship between the United States and the Native 
     Hawaiians, which was described by then Secretary of the 
     Interior Franklin K. Lane, who said: `One thing that 
     impressed me . . . was the fact that the natives of the 
     island who are our wards, I should say, and for whom in a 
     sense we are trustees, are falling off rapidly in numbers and 
     many of them are in poverty.'.
       ``(9) In 1938, Congress again acknowledged the unique 
     status of the Hawaiian people by including in the Act of June 
     20, 1938 (52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 
     392b, 392c, 396, 396a), a provision to lease lands within the 
     National Parks extension to Native Hawaiians and to permit 
     fishing in the area `only by native Hawaiian residents of 
     said area or of adjacent villages and by visitors under their 
     guidance.'.
       ``(10) Under the Act entitled `An Act to provide for the 
     admission of the State of Hawai`i into the Union', approved 
     March 18, 1959 (73 Stat. 4), the United States transferred 
     responsibility for the administration of the Hawaiian Home 
     Lands to the State of Hawai`i but reaffirmed the trust 
     relationship between the United States and the Hawaiian 
     people by retaining the exclusive power to enforce the trust, 
     including the power to approve land exchanges and amendments 
     to such Act affecting the rights of beneficiaries under such 
     Act.
       ``(11) In 1959, under the Act entitled `An Act to provide 
     for the admission of the State of Hawai`i into the Union', 
     the United States also ceded to the State of Hawai`i title to 
     the public lands formerly held by the United States, but 
     mandated that such lands be held by the State `in public 
     trust' and reaffirmed the special relationship that existed 
     between the United States and the Hawaiian people by 
     retaining the legal responsibility to enforce the public 
     trust responsibility of the State of Hawai`i for the 
     betterment of the conditions of Native Hawaiians,
     as defined in section 201(a) of the Hawaiian Homes Commission 
     Act, 1920.
       ``(12) The United States has recognized and reaffirmed 
     that--
       ``(A) Native Hawaiians have a cultural, historic, and land-
     based link to the indigenous people who exercised sovereignty 
     over the Hawaiian Islands, and that group has never 
     relinquished its claims to sovereignty or its sovereign 
     lands;
       ``(B) Congress does not extend services to Native Hawaiians 
     because of their race, but because of their unique status as 
     the indigenous people of a once sovereign nation as to whom 
     the United States has established a trust relationship;
       ``(C) Congress has also delegated broad authority to 
     administer a portion of the Federal trust responsibility to 
     the State of Hawai`i;
       ``(D) the political status of Native Hawaiians is 
     comparable to that of American Indians and Alaska Natives; 
     and
       ``(E) the aboriginal, indigenous people of the United 
     States have--
       ``(i) a continuing right to autonomy in their internal 
     affairs; and
       ``(ii) an ongoing right of self-determination and self-
     governance that has never been extinguished.
       ``(13) The political relationship between the United States 
     and the Native Hawaiian people has been recognized and 
     reaffirmed by the United States, as evidenced by the 
     inclusion of Native Hawaiians in--
       ``(A) the Native American Programs Act of 1974 (42 U.S.C. 
     2991 et seq.);
       ``(B) the American Indian Religious Freedom Act (42 U.S.C. 
     1996);
       ``(C) the National Museum of the American Indian Act (20 
     U.S.C. 80q et seq.);
       ``(D) the Native American Graves Protection and 
     Repatriation Act (25 U.S.C. 3001 et seq.);
       ``(E) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       ``(F) the Native American Languages Act (25 U.S.C. 2901 et 
     seq.);
       ``(G) the American Indian, Alaska Native, and Native 
     Hawaiian Culture and Art Development Act (20 U.S.C. 4401 et 
     seq.);
       ``(H) the Workforce Investment Act of 1998 (29 U.S.C. 2801 
     et seq.); and
       ``(I) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.).

[[Page 25761]]

       ``(14) In 1981, Congress instructed the Office of Education 
     to submit to Congress a comprehensive report on Native 
     Hawaiian education. The report, entitled the `Native Hawaiian 
     Educational Assessment Project', was released in 1983 and 
     documented that Native Hawaiians scored below parity with 
     regard to national norms on standardized achievement tests, 
     were disproportionately represented in many negative social 
     and physical statistics indicative of special educational 
     needs, and had educational needs that were related to their 
     unique cultural situation, such as different learning styles 
     and low self-image.
       ``(15) In recognition of the educational needs of Native 
     Hawaiians, in 1988, Congress enacted title IV of the Augustus 
     F. Hawkins-Robert T. Stafford Elementary and Secondary School 
     Improvement Amendments of 1988 (102 Stat. 130) to authorize 
     and develop supplemental educational programs to address the 
     unique conditions of Native Hawaiians.
       ``(16) In 1993, the Kamehameha Schools Bishop Estate 
     released a 10-year update of findings of the Native Hawaiian 
     Educational Assessment Project, which found that despite the 
     successes of the programs established under title IV of the 
     Augustus F. Hawkins-Robert T. Stafford Elementary and 
     Secondary School Improvement Amendments of 1988, many of the 
     same educational needs still existed for Native Hawaiians. 
     Subsequent reports by the Kamehameha Schools Bishop Estate 
     and other organizations have generally confirmed those 
     findings. For example--
       ``(A) educational risk factors continue to start even 
     before birth for many Native Hawaiian children, including--
       ``(i) late or no prenatal care;
       ``(ii) high rates of births by Native Hawaiian women who 
     are unmarried; and
       ``(iii) high rates of births to teenage parents;
       ``(B) Native Hawaiian students continue to begin their 
     school experience lagging behind other students in terms of 
     readiness factors such as vocabulary test scores;
       ``(C) Native Hawaiian students continue to score below 
     national norms on standardized education achievement tests at 
     all grade levels;
       ``(D) both public and private schools continue to show a 
     pattern of lower percentages of Native Hawaiian students in 
     the uppermost achievement levels and in gifted and talented 
     programs;
       ``(E) Native Hawaiian students continue to be 
     overrepresented among students qualifying for special 
     education programs provided to students with learning 
     disabilities, mild mental retardation, emotional impairment, 
     and other such disabilities;
       ``(F) Native Hawaiians continue to be underrepresented in 
     institutions of higher education and among adults who have 
     completed 4 or more years of college;
       ``(G) Native Hawaiians continue to be disproportionately 
     represented in many negative social and physical statistics 
     indicative of special educational needs, as demonstrated by 
     the fact that--
       ``(i) Native Hawaiian students are more likely to be 
     retained in grade level and to be excessively absent in 
     secondary school;
       ``(ii) Native Hawaiian students have the highest rates of 
     drug and alcohol use in the State of Hawai`i; and
       ``(iii) Native Hawaiian children continue to be 
     disproportionately victimized by child abuse and neglect; and
       ``(H) Native Hawaiians now comprise over 23 percent of the 
     students served by the State of Hawai`i Department of 
     Education, and there are and will continue to be 
     geographically rural, isolated areas with a high Native 
     Hawaiian population density.
       ``(17) In the 1998 National Assessment of Educational 
     Progress, Hawaiian fourth-graders ranked 39th among groups of 
     students from 39 States in reading. Given that Hawaiian 
     students rank among the lowest groups of students nationally 
     in reading, and that Native Hawaiian students rank the lowest 
     among Hawaiian students in reading, it is imperative that 
     greater focus be placed on beginning reading and early 
     education and literacy in Hawai`i.
       ``(18) The findings described in paragraphs (16) and (17) 
     are inconsistent with the high rates of literacy and 
     integration of traditional culture and Western education 
     historically achieved by Native Hawaiians through a Hawaiian 
     language-based public school system established in 1840 by 
     Kamehameha III.
       ``(19) Following the overthrow of the Kingdom of Hawai`i in 
     1893, Hawaiian medium schools were banned. After annexation, 
     throughout the territorial and statehood period of Hawai`i, 
     and until 1986, use of the Hawaiian language as an 
     instructional medium in education in public schools was 
     declared unlawful. The declaration caused incalculable harm 
     to a culture that placed a very high value on the power of 
     language, as exemplified in the traditional saying: `I ka 
     `olelo no ke ola; I ka `olelo no ka make. In the language 
     rests life; In the language rests death.'.
       ``(20) Despite the consequences of over 100 years of 
     nonindigenous influence, the Native Hawaiian people are 
     determined to preserve, develop, and transmit to future 
     generations their ancestral territory and their cultural 
     identity in accordance with their own spiritual and 
     traditional beliefs, customs, practices, language, and social 
     institutions.
       ``(21) The State of Hawai`i, in the constitution and 
     statutes of the State of Hawai`i--
       ``(A) reaffirms and protects the unique right of the Native 
     Hawaiian people to practice and perpetuate their culture and 
     religious customs, beliefs, practices, and language;
       ``(B) recognizes the traditional language of the Native 
     Hawaiian people as an official language of the State of 
     Hawai`i, which may be used as the language of instruction for 
     all subjects and grades in the public school system; and
       ``(C) promotes the study of the Hawaiian culture, language, 
     and history by providing a Hawaiian education program and 
     using community expertise as a suitable and essential means 
     to further the program.

     ``SEC. 7203. PURPOSES.

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

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

       ``(a) Establishment of Native Hawaiian Education Council.--
     In order to better effectuate the purposes of this part 
     through the coordination of educational and related services 
     and programs available to Native Hawaiians, including those 
     programs receiving funding under this part, the Secretary is 
     authorized to establish a Native Hawaiian Education Council 
     (hereafter in this part referred to as the `Education 
     Council').
       ``(b) Composition of Education Council.--The Education 
     Council shall consist of not more than 21 members, unless 
     otherwise determined by a majority of the council.
       ``(c) Conditions and Terms.--
       ``(1) Conditions.--At least 10 members of the Education 
     Council shall be Native Hawaiian education service providers 
     and 10 members of the Education Council shall be Native 
     Hawaiians or Native Hawaiian education consumers. In 
     addition, a representative of the State of Hawai`i Office of 
     Hawaiian Affairs shall serve as a member of the Education 
     Council.
       ``(2) Appointments.--The members of the Education Council 
     shall be appointed by the Secretary based on recommendations 
     received from the Native Hawaiian community.
       ``(3) Terms.--Members of the Education Council shall serve 
     for staggered terms of 3 years, except as provided in 
     paragraph (4).
       ``(4) Council determinations.--Additional conditions and 
     terms relating to membership on the Education Council, 
     including term lengths and term renewals, shall be determined 
     by a majority of the Education Council.
       ``(d) Native Hawaiian Education Council Grant.--The 
     Secretary shall make a direct grant to the Education Council 
     to carry out the following activities:
       ``(1) Coordinate the educational and related services and 
     programs available to Native Hawaiians, including the 
     programs assisted under this part.
       ``(2) Assess the extent to which such services and programs 
     meet the needs of Native Hawaiians, and collect data on the 
     status of Native Hawaiian education.
       ``(3) Provide direction and guidance, through the issuance 
     of reports and recommendations, to appropriate Federal, 
     State, and local agencies in order to focus and improve the 
     use of resources, including resources made available under 
     this part, relating to Native Hawaiian education, and serve, 
     where appropriate, in an advisory capacity.
       ``(4) Make direct grants, if such grants enable the 
     Education Council to carry out the duties of the Education 
     Council, as described in paragraphs (1) through (3).
       ``(e) Additional Duties of the Education Council.--
       ``(1) In general.--The Education Council shall provide 
     copies of any reports and recommendations issued by the 
     Education Council, including any information that the 
     Education Council provides to the Secretary pursuant to 
     subsection (i), to the Secretary, the Committee on Education 
     and the Workforce of the House of Representatives, and the 
     Committee on Indian Affairs of the Senate.
       ``(2) Annual report.--The Education Council shall prepare 
     and submit to the Secretary an annual report on the Education 
     Council's activities.
       ``(3) Island council support and assistance.--The Education 
     Council shall provide such administrative support and 
     financial assistance to the island councils established 
     pursuant to subsection (f) as the Secretary determines to be 
     appropriate, in a manner that supports the distinct needs of 
     each island council.
       ``(f) Establishment of Island Councils.--
       ``(1) In general.--In order to better effectuate the 
     purposes of this part and to ensure the adequate 
     representation of island and community interests within the 
     Education Council, the Secretary is authorized to facilitate 
     the establishment of Native Hawaiian education island 
     councils (hereafter in this part referred to as an `island 
     council') for the following islands:
       ``(A) Hawai`i.
       ``(B) Maui.
       ``(C) Moloka`i.
       ``(D) Lana`i.
       ``(E) O`ahu.
       ``(F) Kaua`i.
       ``(G) Ni`ihau.
       ``(2) Composition of island councils.--Each island council 
     shall consist of parents, students,

[[Page 25762]]

     and other community members who have an interest in the 
     education of Native Hawaiians, and shall be representative of 
     individuals concerned with the educational needs of all age 
     groups, from children in preschool through adults. At least 
     \3/4\ of the members of each island council shall be Native 
     Hawaiians.
       ``(g) Administrative Provisions Relating to Education 
     Council and Island Councils.--The Education Council and each 
     island council shall meet at the call of the chairperson of 
     the appropriate council, or upon the request of the majority 
     of the members of the appropriate council, but in any event 
     not less often than 4 times during each calendar year. The 
     provisions of the Federal Advisory Committee Act shall not 
     apply to the Education Council and each island council.
       ``(h) Compensation.--Members of the Education Council and 
     each island council shall not receive any compensation for 
     service on the Education Council and each island council, 
     respectively.
       ``(i) Report.--Not later than 4 years after the date of 
     enactment of the No Child Left Behind Act of 2001, the 
     Secretary shall prepare and submit to the Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Indian Affairs of the Senate a report 
     that summarizes the annual reports of the Education Council, 
     describes the allocation and use of funds under this part, 
     and contains recommendations for changes in Federal, State, 
     and local policy to advance the purposes of this part.

     ``SEC. 7205. PROGRAM AUTHORIZED.

       ``(a) General Authority.--
       ``(1) Grants and contracts.--The Secretary is authorized to 
     make direct grants to, or enter into contracts with--
       ``(A) Native Hawaiian educational organizations;
       ``(B) Native Hawaiian community-based organizations;
       ``(C) public and private nonprofit organizations, agencies, 
     and institutions with experience in developing or operating 
     Native Hawaiian programs or programs of instruction in the 
     Native Hawaiian language; and
       ``(D) consortia of the organizations, agencies, and 
     institutions described in subparagraphs (A) through (C),
     to carry out programs that meet the purposes of this part.
       ``(2) Priorities.--In awarding grants or contracts to carry 
     out activities described in paragraph (3), the Secretary 
     shall give priority to entities proposing projects that are 
     designed to address--
       ``(A) beginning reading and literacy among students in 
     kindergarten through third grade;
       ``(B) the needs of at-risk children and youth;
       ``(C) needs in fields or disciplines in which Native 
     Hawaiians are underemployed; and
       ``(D) the use of the Hawaiian language in instruction.
       ``(3) Authorized activities.--Activities provided through 
     programs carried out under this part may include--
       ``(A) the development and maintenance of a statewide Native 
     Hawaiian early education and care system to provide a 
     continuum of services for Native Hawaiian children from the 
     prenatal period of the children through age 5;
       ``(B) the operation of family-based education centers that 
     provide such services as--
       ``(i) programs for Native Hawaiian parents and their 
     infants from the prenatal period of the infants through age 
     3;
       ``(ii) preschool programs for Native Hawaiians; and
       ``(iii) research on, and development and assessment of, 
     family-based, early childhood, and preschool programs for 
     Native Hawaiians;
       ``(C) activities that enhance beginning reading and 
     literacy in either the Hawaiian or the English language among 
     Native Hawaiian students in kindergarten through third grade 
     and assistance in addressing the distinct features of 
     combined English and Hawaiian literacy for Hawaiian speakers 
     in fifth and sixth grade;
       ``(D) activities to meet the special needs of Native 
     Hawaiian students with disabilities, including--
       ``(i) the identification of such students and their needs;
       ``(ii) the provision of support services to the families of 
     those students; and
       ``(iii) other activities consistent with the requirements 
     of the Individuals with Disabilities Education Act;
       ``(E) activities that address the special needs of Native 
     Hawaiian students who are gifted and talented, including--
       ``(i) educational, psychological, and developmental 
     activities designed to assist in the educational progress of 
     those students; and
       ``(ii) activities that involve the parents of those 
     students in a manner designed to assist in the students' 
     educational progress;
       ``(F) the development of academic and vocational curricula 
     to address the needs of Native Hawaiian children and adults, 
     including curriculum materials in the Hawaiian language and 
     mathematics and science curricula that incorporate Native 
     Hawaiian tradition and culture;
       ``(G) professional development activities for educators, 
     including--
       ``(i) the development of programs to prepare prospective 
     teachers to address the unique needs of Native Hawaiian 
     students within the context of Native Hawaiian culture, 
     language, and traditions;
       ``(ii) in-service programs to improve the ability of 
     teachers who teach in schools with concentrations of Native 
     Hawaiian students to meet those students' unique needs; and
       ``(iii) the recruitment and preparation of Native 
     Hawaiians, and other individuals who live in communities with 
     a high concentration of Native Hawaiians, to become teachers;
       ``(H) the operation of community-based learning centers 
     that address the needs of Native Hawaiian families and 
     communities through the coordination of public and private 
     programs and services, including--
       ``(i) preschool programs;
       ``(ii) after-school programs;
       ``(iii) vocational and adult education programs; and
       ``(iv) programs that recognize and support the unique 
     cultural and educational needs of Native Hawaiian children, 
     and incorporate appropriately qualified Native Hawaiian 
     elders and seniors;
       ``(I) activities, including program co-location, to enable 
     Native Hawaiians to enter and complete programs of 
     postsecondary education, including--
       ``(i) provision of full or partial scholarships for 
     undergraduate or graduate study that are awarded to students 
     based on their academic promise and financial need, with a 
     priority, at the graduate level, given to students entering 
     professions in which Native Hawaiians are underrepresented;
       ``(ii) family literacy services;
       ``(iii) counseling and support services for students 
     receiving scholarship assistance;
       ``(iv) counseling and guidance for Native Hawaiian 
     secondary students who have the potential to receive 
     scholarships; and
       ``(v) faculty development activities designed to promote 
     the matriculation of Native Hawaiian students;
       ``(J) research and data collection activities to determine 
     the educational status and needs of Native Hawaiian children 
     and adults;
       ``(K) other research and evaluation activities related to 
     programs carried out under this part; and
       ``(L) other activities, consistent with the purposes of 
     this part, to meet the educational needs of Native Hawaiian 
     children and adults.
       ``(4) Special rule and conditions.--
       ``(A) Institutions outside hawaii.--The Secretary shall not 
     establish a policy under this section that prevents a Native 
     Hawaiian student enrolled at a 2- or 4-year degree granting 
     institution of higher education outside of the State of 
     Hawai`i from receiving a scholarship pursuant to paragraph 
     (3)(I).
       ``(B) Scholarship conditions.--The Secretary shall 
     establish conditions for receipt of a scholarship awarded 
     under paragraph (3)(I). The conditions shall require that an 
     individual seeking such a scholarship enter into a contract 
     to provide professional services, either during the 
     scholarship period or upon completion of a program of 
     postsecondary education, to the Native Hawaiian community.
       ``(b) Administrative Costs.--Not more than 5 percent of 
     funds provided to a recipient of a grant or contract under 
     subsection (a) for any fiscal year may be used for 
     administrative purposes.
       ``(c) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section and section 7204 such sums as may 
     be necessary for fiscal year 2002 and each of the 5 
     succeeding fiscal years.
       ``(2) Reservation.--Of the funds appropriated under this 
     subsection, the Secretary shall reserve $500,000 for fiscal 
     year 2002 and each of the 5 succeeding fiscal years to make a 
     direct grant to the Education Council to carry out section 
     7204.
       ``(3) Availability.--Funds appropriated under this 
     subsection shall remain available until expended.

     ``SEC. 7206. ADMINISTRATIVE PROVISIONS.

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

     ``SEC. 7207. DEFINITIONS.

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

[[Page 25763]]

       ``(A) serves the interests of Native Hawaiians;
       ``(B) has Native Hawaiians in substantive and policymaking 
     positions within the organizations; and
       ``(C) is recognized by the Governor of Hawai`i for the 
     purpose of planning, conducting, or administering programs 
     (or portions of programs) for the benefit of Native 
     Hawaiians.
       ``(6) Office of hawaiian affairs.--The term `Office of 
     Hawaiian Affairs' means the Office of Hawaiian Affairs 
     established by the Constitution of the State of Hawaii.

                   ``PART C--ALASKA NATIVE EDUCATION

     ``SEC. 7301. SHORT TITLE.

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

     ``SEC. 7302. FINDINGS.

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

     ``SEC. 7303. PURPOSES.

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

     ``SEC. 7304. PROGRAM AUTHORIZED.

       ``(a) General Authority.--
       ``(1) Grants and contracts.--The Secretary is authorized to 
     make grants to, or enter into contracts with, Alaska Native 
     organizations, educational entities with experience in 
     developing or operating Alaska Native programs or programs of 
     instruction conducted in Alaska Native languages, cultural 
     and community-based organizations with experience in 
     developing or operating programs to benefit Alaska Natives, 
     and consortia of organizations and entities described in this 
     paragraph to carry out programs that meet the purposes of 
     this part.
       ``(2) Permissible activities.--Activities provided through 
     programs carried out under this part may include the 
     following:
       ``(A) The development and implementation of plans, methods, 
     and strategies to improve the education of Alaska Natives.
       ``(B) The development of curricula and educational programs 
     that address the educational needs of Alaska Native students, 
     including the following:
       ``(i) Curriculum materials that reflect the cultural 
     diversity or the contributions of Alaska Natives.
       ``(ii) Instructional programs that make use of Native 
     Alaskan languages.
       ``(iii) Networks that introduce successful programs, 
     materials, and techniques to urban and rural schools.
       ``(C) Professional development activities for educators, 
     including the following:
       ``(i) Programs to prepare teachers to address the cultural 
     diversity and unique needs of Alaska Native students.
       ``(ii) In-service programs to improve the ability of 
     teachers to meet the unique needs of Alaska Native students.
       ``(iii) Recruitment and preparation of teachers who are 
     Alaska Native, reside in communities with high concentrations 
     of Alaska Native students, or are likely to succeed as 
     teachers in isolated, rural communities and engage in cross-
     cultural instruction in Alaska.
       ``(D) The development and operation of home instruction 
     programs for Alaska Native preschool children, to ensure the 
     active involvement of parents in their children's education 
     from the earliest ages.
       ``(E) Family literacy services.
       ``(F) The development and operation of student enrichment 
     programs in science and mathematics that--
       ``(i) are designed to prepare Alaska Native students from 
     rural areas, who are preparing to enter secondary school, to 
     excel in science and math;
       ``(ii) provide appropriate support services to the families 
     of such students that are needed to enable such students to 
     benefit from the programs; and
       ``(iii) may include activities that recognize and support 
     the unique cultural and educational needs of Alaska Native 
     children, and incorporate appropriately qualified Alaska 
     Native elders and seniors.
       ``(G) Research and data collection activities to determine 
     the educational status and needs of Alaska Native children 
     and adults.
       ``(H) Other research and evaluation activities related to 
     programs carried out under this part.
       ``(I) Remedial and enrichment programs to assist Alaska 
     Native students in performing at a high level on standardized 
     tests.
       ``(J) Education and training of Alaska Native students 
     enrolled in a degree program that will lead to certification 
     or licensing as teachers.
       ``(K) Parenting education for parents and caregivers of 
     Alaska Native children to improve parenting and caregiving 
     skills (including skills relating to discipline and cognitive 
     development), including parenting education provided through 
     in-home visitation of new mothers.
       ``(L) Cultural education programs operated by the Alaska 
     Native Heritage Center and designed to share the Alaska 
     Native culture with students.
       ``(M) A cultural exchange program operated by the Alaska 
     Humanities Forum and designed to share Alaska Native culture 
     with urban students in a rural setting, which shall be known 
     as the Rose Cultural Exchange Program.
       ``(N) Activities carried out through Even Start programs 
     carried out under subpart 3 of part B of title I and Head 
     Start programs carried out under the Head Start Act, 
     including the training of teachers for programs described in 
     this subparagraph.
       ``(O) Other early learning and preschool programs.
       ``(P) Dropout prevention programs such as the Cook Inlet 
     Tribal Council's Partners for Success program.
       ``(Q) An Alaska Initiative for Community Engagement 
     program.
       ``(R) Career preparation activities to enable Alaska Native 
     children and adults to prepare for meaningful employment, 
     including programs providing tech-prep, mentoring, training, 
     and apprenticeship activities.
       ``(S) Provision of operational support and purchasing of 
     equipment, to develop regional vocational schools in rural 
     areas of Alaska, including boarding schools, for Alaska 
     Native students in grades 9 through 12, or at higher levels 
     of education, to provide the students with necessary 
     resources to prepare for skilled employment opportunities.
       ``(T) Other activities, consistent with the purposes of 
     this part, to meet the educational needs of Alaska Native 
     children and adults.
       ``(3) Home instruction programs.--Home instruction programs 
     for Alaska Native preschool children carried out under 
     paragraph (2)(D) may include the following:
       ``(A) Programs for parents and their infants, from the 
     prenatal period of the infant through age 3.
       ``(B) Preschool programs.
       ``(C) Training, education, and support for parents in such 
     areas as reading readiness, observation, story telling, and 
     critical thinking.
       ``(b) Limitation on Administrative Costs.--Not more than 5 
     percent of funds provided to a grantee under this section for 
     any fiscal year may be used for administrative purposes.
       ``(c) Priorities.--In awarding grants or contracts to carry 
     out activities described in subsection (a)(2), except for 
     activities listed in subsection (d)(2), the Secretary shall 
     give priority to applications from Alaska Native regional 
     nonprofit organizations, or consortia that include at least 1 
     Alaska Native regional nonprofit organization.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary for 
     fiscal year 2002 and each of the 5 succeeding fiscal years.
       ``(2) Availability of funds.--Of the funds appropriated and 
     made available under this section for a fiscal year, the 
     Secretary shall make available--
       ``(A) not less than $1,000,000 to support activities 
     described in subsection (a)(2)(K);
       ``(B) not less than $1,000,000 to support activities 
     described in subsection (a)(2)(L);
       ``(C) not less than $1,000,000 to support activities 
     described in subsection (a)(2)(M);

[[Page 25764]]

       ``(D) not less than $2,000,000 to support activities 
     described in subsection (a)(2)(P); and
       ``(E) not less than $2,000,000 to support activities 
     described in subsection (a)(2)(Q).

     ``SEC. 7305. ADMINISTRATIVE PROVISIONS.

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

     ``SEC. 7306. DEFINITIONS.

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

     SEC. 702. CONFORMING AMENDMENTS.

       (a) Higher Education Act of 1965.--Section 317(b) of the 
     Higher Education Act of 1965 (20 U.S.C. 1059d(b)) is 
     amended--
       (1) in paragraph (1), by striking ``section 9308'' and 
     inserting ``section 7306''; and
       (2) in paragraph (3), by striking ``section 9212'' and 
     inserting ``section 7207''.
       (b) Public Law 88-210.--Section 116 of Public Law 88-210 
     (as added by section 1 of Public Law 105-332 (112 Stat. 
     3076)) is amended by striking ``section 9212 of the Native 
     Hawaiian Education Act (20 U.S.C. 7912)'' and inserting 
     ``section 7207 of the Native Hawaiian Education Act''.
       (c) Carl D. Perkins Vocational and Technical Education Act 
     of 1998.--Section 116(a)(5) of the Carl D. Perkins Vocational 
     and Technical Education Act of 1998 (20 U.S.C. 2326(a)(5)) is 
     amended by striking ``section 9212'' and all that follows and 
     inserting ``section 7207 of the Native Hawaiian Education 
     Act''.
       (d) Museum and Library Services Act.--Section 261 of the 
     Museum and Library Services Act (20 U.S.C. 9161) is amended 
     by striking ``section 9212 of the Native Hawaiian Education 
     Act (20 U.S.C. 7912)'' and inserting ``section 7207 of the 
     Native Hawaiian Education Act''.
       (e) Act of April 16, 1934.--Section 5 of the Act of April 
     16, 1934 (commonly known as the ``Johnson-O'Malley Act'') (88 
     Stat. 2213; 25 U.S.C. 456) is amended by striking ``section 
     9104(c)(4)'' and inserting ``section 7114(c)(4)''.
       (f) Native American Languages Act.--Section 103 of the 
     Native American Languages Act (25 U.S.C. 2902) is amended--
       (1) in paragraph (2), by striking ``section 9161(4) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7881(4))'' and inserting ``section 7151(3) of the Elementary 
     and Secondary Education Act of 1965''; and
       (2) in paragraph (3), by striking ``section 9212(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7912(1))'' and inserting ``section 7207 of the Elementary and 
     Secondary Education Act of 1965''.
       (g) Workforce Investment Act of 1998.--Section 166(b)(3) of 
     the Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) 
     is amended by striking ``paragraphs (1) and (3), 
     respectively, of section 9212 of the Native Hawaiian 
     Education Act (20 U.S.C. 7912)'' and inserting ``section 7207 
     of the Native Hawaiian Education Act''.
       (h) Assets for Independence Act.--Section 404(11) of the 
     Assets for Independence Act (42 U.S.C. 604 note) is amended 
     by striking ``section 9212 of the Native Hawaiian Education 
     Act (20 U.S.C. 7912)'' and inserting ``section 7207 of the 
     Native Hawaiian Education Act''.

     SEC. 703. SAVINGS PROVISIONS.

       Funds appropriated for parts A, B, and C of title IX of the 
     Elementary and Secondary Education Act of 1965 (as in effect 
     on the day before the date of enactment of this Act) shall be 
     available for use under parts A, B, and C, respectively, of 
     title VII of such Act, as added by this section.
                     TITLE VIII--IMPACT AID PROGRAM

     SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
                   PROPERTY.

       (a) Foundation Payments for Pre-1995 Recipients.--Section 
     8002(h)(1) (20 U.S.C. 7702(h)(1)) is amended--
       (1) in subparagraph (A), by striking ``and was eligible to 
     receive a payment under section 2 of the Act of September 30, 
     1950'' and inserting ``and that filed, or has been determined 
     pursuant to statute to have filed a timely application, and 
     met, or has been determined pursuant to statute to meet, the 
     eligibility requirements of section 2(a)(1)(C) of the Act of 
     September 30, 1950''; and
       (2) in subparagraph (B), by striking ``(or if the local 
     educational agency was not eligible to receive a payment 
     under such section 2 for fiscal year 1994'' and inserting 
     ``(or if the local educational agency did not meet, or has 
     not been determined pursuant to statute to meet, the 
     eligibility requirements of section 2(a)(1)(C) of the Act of 
     September 30, 1950 for fiscal year 1994''.
       (b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 
     U.S.C. 7702(h)(2)) is amended--
       (1) in subparagraph (A), by adding at the end before the 
     period ``, or whose application under this section for fiscal 
     year 1995 was determined pursuant to statute to be timely 
     filed for purposes of payments for subsequent fiscal years''; 
     and
       (2) in subparagraph (B)(ii), by striking ``for each local 
     educational agency that received a payment under this section 
     for fiscal year 1995'' and inserting ``for each local 
     educational agency described in subparagraph (A)''.
       (c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C. 
     7702(h)(4)(B)) is amended--
       (1) by striking ``(in the same manner as percentage shares 
     are determined for local educational agencies under paragraph 
     (2)(B)(ii))'' and inserting ``(by dividing the maximum amount 
     that the agency is eligible to receive under subsection (b) 
     by the total of the maximum amounts for all such agencies)''; 
     and
       (2) by striking ``, except that for the purpose of 
     calculating a local educational agency's assessed value of 
     the Federal property'' and inserting ``, except that, for the 
     purpose of calculating a local educational agency's maximum 
     amount under subsection (b)''.
       (d) Additional Assistance for Certain Local Educational 
     Agencies Impacted by Federal Property Acquisition.--Section 
     8002 (20 U.S.C. 7702) is amended by striking subsection (j).
       (e) Minimum Payment with Respect to Loss of Eligibility of 
     Certain Local Educational Agencies.--Section 8002 (20 U.S.C. 
     7702) is amended by adding at the end the following:
       ``(n) Loss of Eligibility.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the Secretary shall make a minimum payment to a 
     local educational agency described in paragraph (2), for the 
     first fiscal year that the agency loses eligibility for 
     assistance under this section as a result of property located 
     within the school district served by the agency failing to 
     meet the definition of Federal property under section 
     8013(5)(C)(iii), in an amount equal to 90 percent of the 
     amount received by the agency under this section for the 
     preceding year.
       ``(2) Local educational agency described.--A local 
     educational agency described in this paragraph is an agency 
     that--
       ``(A) was eligible for, and received, a payment under this 
     section for fiscal year 2002; and
       ``(B) beginning in fiscal year 2003 or a subsequent fiscal 
     year, is no longer eligible for payments under this section 
     as provided for in subsection (a)(1)(C) as a result of the 
     transfer of the Federal property involved to a non-Federal 
     entity.''.
       (f) Application for Payment.--Notwithstanding any other 
     provision of law, the Secretary shall treat as timely filed 
     an application under section 8002 (20 U.S.C. 7702) from 
     Academy School District 20, Colorado, for a payment for 
     fiscal year 1999, and shall process that application from 
     funds appropriated for that section for fiscal year 2001.

     SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

       (a) Eligibility for Certain Heavily Impacted Local 
     Educational Agencies.--
       (1) In general.--Section 8003(b)(2)(C) (20 U.S.C. 
     7703(b)(2)(C)) is amended--
       (A) in clauses (i) and (ii), by inserting after ``Federal 
     military installation'' each place it appears the following: 
     ``(or if the agency is a qualified local educational agency 
     as described in clause (iv))''; and
       (B) by adding at the end the following:
       ``(iv) Qualified local educational agency.--A qualified 
     local educational agency described in this clause is an 
     agency that meets the following requirements:

       ``(I) The boundaries of the agency are the same as island 
     property designated by the Secretary of the Interior to be 
     property that is held in trust by the Federal Government.
       ``(II) The agency has no taxing authority.
       ``(III) The agency received a payment under paragraph (1) 
     for fiscal year 2001.''.

       (2) Effective date.--The Secretary shall consider an 
     application for a payment under section 8003(b)(2) for fiscal 
     year 2002 from a qualified local educational agency described 
     in section 8003(b)(2)(C)(iv), as added by paragraph (1), as 
     meeting the requirements of section 8003(b)(2)(C)(iii), and 
     shall provide a payment under section 8003(b)(2) for fiscal 
     year 2002, if the agency submits to the Secretary an 
     application for payment under such section not later than 30 
     days after the date of enactment of this Act.
       (b) Applications for Payment.--
       (1) Warner public schools, muskogee county, oklahoma.--
     Notwithstanding any other provision of law, the Secretary of 
     Education shall treat as timely filed an application under 
     section 8003 (20 U.S.C. 7703) from Warner Public Schools, 
     Muskogee County, Oklahoma, for a payment for fiscal year 
     2002, and shall process that application for payment, if the 
     Secretary has received the fiscal year 2002 application not 
     later than 30 days after the date of enactment of this Act.
       (2) Pine point school, school district 25, minnesota.--
     Notwithstanding any other provision of law, the Secretary 
     shall treat as timely

[[Page 25765]]

     filed an application under section 8003 (20 U.S.C. 7703) from 
     Pine Point School, School District 25, Minnesota, for a 
     payment for fiscal year 2000, and shall process that 
     application for payment, if the Secretary has received the 
     fiscal year 2000 application not later than 30 days after the 
     date of enactment of this Act.

     SEC. 803. CONSTRUCTION.

       Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as 
     follows:
       ``(b) School Facility Emergency and Modernization Grants 
     Authorized.--
       ``(1) In general.--From 60 percent of the amount 
     appropriated for each fiscal year under section 8014(e), the 
     Secretary--
       ``(A) shall award emergency grants in accordance with this 
     subsection to eligible local educational agencies to enable 
     the agencies to carry out emergency repairs of school 
     facilities; and
       ``(B) shall award modernization grants in accordance with 
     this subsection to eligible local educational agencies to 
     enable the agencies to carry out the modernization of school 
     facilities.
       ``(2) Priority.--In approving applications from local 
     educational agencies for emergency grants and modernization 
     grants under this subsection, the Secretary shall give 
     priority to applications in accordance with the following:
       ``(A) The Secretary shall first give priority to 
     applications for emergency grants from local educational 
     agencies that meet the requirements of paragraph (3)(A) and, 
     among such applications for emergency grants, shall give 
     priority to those applications of local educational agencies 
     based on the severity of the emergency, as determined by the 
     Secretary.
       ``(B) The Secretary shall next give priority to 
     applications for emergency grants from local educational 
     agencies that meet the requirements of subparagraph (C) or 
     (D) of paragraph (3) and, among such applications for 
     emergency grants, shall give priority to those applications 
     of local educational agencies based on the severity of the 
     emergency, as determined by the Secretary.
       ``(C) The Secretary shall next give priority to 
     applications for modernization grants from local educational 
     agencies that meet the requirements of paragraph (3)(B) and, 
     among such applications for modernization grants, shall give 
     priority to those applications of local educational agencies 
     based on the severity of the need for modernization, as 
     determined by the Secretary.
       ``(D) The Secretary shall next give priority to 
     applications for modernization grants from local educational 
     agencies that meet the requirements of subparagraph (C) or 
     (D) of paragraph (3) and, among such applications for 
     modernization grants, shall give priority to those 
     applications of local educational agencies based on the 
     severity of the need for modernization, as determined by the 
     Secretary.
       ``(3) Eligibility requirements.--
       ``(A) Emergency grants.--A local educational agency is 
     eligible to receive an emergency grant under paragraph (2)(A) 
     if--
       ``(i) the agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, the agency's fiscal agent)--

       ``(I) has no practical capacity to issue bonds;
       ``(II) has minimal capacity to issue bonds and is at not 
     less than 75 percent of the agency's limit of bonded 
     indebtedness; or
       ``(III) does not meet the requirements of subclauses (I) 
     and (II) but is eligible to receive funds under section 
     8003(b)(2) for the fiscal year; and

       ``(ii) the agency is eligible to receive assistance under 
     subsection (a) for the fiscal year and has a school facility 
     emergency, as determined by the Secretary, that poses a 
     health or safety hazard to the students and school personnel 
     assigned to the school facility.
       ``(B) Modernization grants.--A local educational agency is 
     eligible to receive a modernization grant under paragraph 
     (2)(C) if--
       ``(i) the agency is eligible to receive assistance under 
     this title for the fiscal year;
       ``(ii) the agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, the agency's fiscal agent) meets the requirements of 
     subclause (I), (II), or (III) of subparagraph (A)(i); and
       ``(iii) the agency has facility needs resulting from the 
     presence of the Federal Government, such as the enrollment of 
     federally connected children, the presence of tax-exempt 
     Federal property, or an increase in enrollment due to the 
     expansion of Federal activities, housing privatization, or 
     the acquisition of Federal property.
       ``(C) Additional eligibility for emergency and 
     modernization grants.--(i) A local educational agency is 
     eligible to receive an emergency grant or a modernization 
     grant under subparagraph (B) or (D) of paragraph (2), 
     respectively, if the agency meets the following requirements:
       ``(I) The agency receives a basic support payment under 
     section 8003(b) for the fiscal year and the agency meets at 
     least one of the following requirements:

       ``(aa) The number of children determined under section 
     8003(a)(1)(C) for the agency for the preceding school year 
     constituted at least 40 percent of the total student 
     enrollment in the schools of the agency during the preceding 
     school year.
       ``(bb) The number of children determined under 
     subparagraphs (B) and (D)(i) of section 8003(a)(1) for the 
     agency for the preceding school year constituted at least 40 
     percent of the total student enrollment in the schools of the 
     agency during the preceding school year.

       ``(II) The agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, the agency's fiscal agent) is at not less than 75 
     percent of the agency's limit of bonded indebtedness.
       ``(III) The agency has an assessed value of real property 
     per student that may be taxed for school purposes that is 
     less than the average of the assessed value of real property 
     per student that may be taxed for school purposes in the 
     State in which the local educational agency is located.
       ``(ii) A local educational agency is also eligible to 
     receive a modernization grant under this subparagraph if the 
     agency is eligible to receive assistance under section 8002 
     for the fiscal year and meets the requirements of subclauses 
     (II) and (III) of clause (i).
       ``(D) Special rule.--
       ``(i) In general.--Any school described in clause (ii) that 
     desires to receive an emergency grant or a modernization 
     grant under subparagraph (B) or (D) of paragraph (2), 
     respectively, shall, except as provided in the following 
     sentence, submit an application in accordance with paragraph 
     (6), and shall otherwise be treated as a local educational 
     agency for the purpose of this subsection. The school shall 
     submit an application for the grant to the local educational 
     agency of such school and the agency shall submit the 
     application on behalf of the school to the Secretary.
       ``(ii) School described.--A school described in this clause 
     is a school that meets the following requirements:

       ``(I) The school is located within the geographic 
     boundaries of a local educational agency that does not meet 
     the applicable eligibility requirements under subparagraph 
     (A), (B), or (C) for a grant under this subsection.
       ``(II) The school meets at least one of the following 
     requirements:

       ``(aa) The number of children determined under section 
     8003(a)(1)(C) for the school for the preceding school year 
     constituted at least 40 percent of the total student 
     enrollment in the school during the preceding school year.
       ``(bb) The number of children determined under 
     subparagraphs (B) and (D)(i) of section 8003(a)(1) for the 
     school for the preceding school year constituted at least 40 
     percent of the total student enrollment in the school during 
     the preceding school year.

       ``(III) The school is located within the geographic 
     boundaries of a local educational agency that meets the 
     requirements of subclauses (II) and (III) of subparagraph 
     (C)(i).

       ``(E) Rule of construction.--For purposes of subparagraph 
     (A)(i), a local educational agency--
       ``(i) has no practical capacity to issue bonds if the total 
     assessed value of real property that may be taxed for school 
     purposes is less than $25,000,000; and
       ``(ii) has minimal capacity to issue bonds if the total 
     assessed value of real property that may be taxed for school 
     purposes is at least $25,000,000 but not more than 
     $50,000,000.
       ``(4) Award criteria.--In awarding emergency grants and 
     modernization grants under this subsection, the Secretary 
     shall consider the following factors:
       ``(A) The ability of the local educational agency to 
     respond to the emergency, or to pay for the modernization 
     project, as the case may be, as measured by--
       ``(i) the agency's level of bonded indebtedness;
       ``(ii) the assessed value of real property per student that 
     may be taxed for school purposes compared to the average of 
     the assessed value of real property per student that may be 
     taxed for school purposes in the State in which the agency is 
     located;
       ``(iii) the agency's total tax rate for school purposes 
     (or, if applicable, for capital expenditures) compared to the 
     average total tax rate for school purposes (or the average 
     capital expenditure tax rate, if applicable) in the State in 
     which the agency is located; and
       ``(iv) funds that are available to the agency, from any 
     other source, including subsection (a), that may be used for 
     capital expenditures.
       ``(B) The percentage of property in the agency that is 
     nontaxable due to the presence of the Federal Government.
       ``(C) The number and percentages of children described in 
     subparagraphs (A), (B), (C), and (D) of section 8003(a)(1) 
     served in the school facility with the emergency or served in 
     the school facility proposed for modernization, as the case 
     may be.
       ``(D) In the case of an emergency grant, the severity of 
     the emergency, as measured by the threat that the condition 
     of the school facility poses to the health, safety, and well-
     being of students.
       ``(E) In the case of a modernization grant--
       ``(i) the severity of the need for modernization, as 
     measured by such factors as--

       ``(I) overcrowding, as evidenced by the use of portable 
     classrooms, or the potential for future overcrowding because 
     of increased enrollment; or
       ``(II) the agency's inability to utilize technology or 
     offer a curriculum in accordance with contemporary State 
     standards due to the physical limitations of the current 
     school facility; and

       ``(ii) the age of the school facility proposed for 
     modernization.
       ``(5) Other award provisions.--
       ``(A) General provisions.--
       ``(i) Limitations on amount of funds.--

       ``(I) In general.--The amount of funds provided under an 
     emergency grant or a modernization grant awarded under this 
     subsection to a local educational agency that meets the 
     requirements of subclause (II) or (III) of paragraph 
     (3)(A)(i) for purposes of eligibility under

[[Page 25766]]

     subparagraph (A) or (B) of paragraph (3) or that meets the 
     requirements of clause (i) or (ii) of paragraph (3)(C) for 
     purposes of eligibility under such paragraph (3)(C), or to a 
     school that is eligible under paragraph (3)(D)--

       ``(aa) shall not exceed 50 percent of the total cost of the 
     project to be assisted under this subsection; and
       ``(bb) shall not exceed $4,000,000 during any 4-year 
     period.

       ``(II) In-kind contributions.--A local educational agency 
     may use in-kind contributions to meet the matching 
     requirement of subclause (I)(aa).

       ``(ii) Prohibitions on use of funds.--A local educational 
     agency may not use funds provided under an emergency grant or 
     modernization grant awarded under this subsection for--

       ``(I) a project for a school facility for which the agency 
     does not have full title or other interest;
       ``(II) stadiums or other school facilities that are 
     primarily used for athletic contests, exhibitions, or other 
     events for which admission is charged to the general public; 
     or
       ``(III) the acquisition of real property.

       ``(iii) Supplement, not supplant.--A local educational 
     agency shall use funds provided under an emergency grant or 
     modernization grant awarded under this subsection only to 
     supplement the amount of funds that would, in the absence of 
     the Federal funds provided under the grant, be made available 
     from non-Federal sources to carry out emergency repairs of 
     school facilities or to carry out the modernization of school 
     facilities, as the case may be, and not to supplant such 
     funds.
       ``(iv) Maintenance costs.--Nothing in this subsection shall 
     be construed to authorize the payment of maintenance costs in 
     connection with any school facility modernized in whole or in 
     part with Federal funds provided under this subsection.
       ``(v) Environmental safeguards.--All projects carried out 
     with Federal funds provided under this subsection shall 
     comply with all relevant Federal, State, and local 
     environmental laws and regulations.
       ``(vi) Carry-over of certain applications.--A local 
     educational agency that applies for an emergency grant or a 
     modernization grant under this subsection for a fiscal year 
     and does not receive the grant for the fiscal year shall have 
     the application for the grant considered for the following 
     fiscal year, subject to the priority requirements of 
     paragraph (2) and the award criteria requirements of 
     paragraph (4).
       ``(B) Emergency grants; prohibition on use of funds.--A 
     local educational agency that is awarded an emergency grant 
     under this subsection may not use amounts under the grant for 
     the complete or partial replacement of an existing school 
     facility unless such replacement is less expensive or more 
     cost-effective than correcting the identified emergency.
       ``(6) Application.--A local educational agency that desires 
     to receive an emergency grant or a modernization grant under 
     this subsection shall submit an application to the Secretary 
     at such time, in such manner, and accompanied by such 
     information as the Secretary may require. Each application 
     shall contain the following:
       ``(A) A description of how the local educational agency 
     meets the award criteria under paragraph (4), including the 
     information described in clauses (i) through (iv) of 
     paragraph (4)(A) and subparagraphs (B) and (C) of paragraph 
     (4).
       ``(B) In the case of an application for an emergency 
     grant--
       ``(i) a description of the school facility deficiency that 
     poses a health or safety hazard to the occupants of the 
     facility and a description of how the deficiency will be 
     repaired; and
       ``(ii) a signed statement from an appropriate local 
     official certifying that a deficiency in the school facility 
     threatens the health or safety of the occupants of the 
     facility or that prevents the use of all or a portion of the 
     building.
       ``(C) In the case of an application for a modernization 
     grant--
       ``(i) an explanation of the need for the school facility 
     modernization project;
       ``(ii) the date on which original construction of the 
     facility to be modernized was completed;
       ``(iii) a listing of the school facilities to be 
     modernized, including the number and percentage of children 
     determined under section 8003(a)(1) in average daily 
     attendance in each school facility; and
       ``(iv) a description of the ownership of the property on 
     which the current school facility is located or on which the 
     planned school facility will be located.
       ``(D) A description of the project for which a grant under 
     this subsection will be used, including a cost estimate for 
     the project.
       ``(E) A description of the interest in, or authority over, 
     the school facility involved, such as an ownership interest 
     or a lease arrangement.
       ``(F) Such other information and assurances as the 
     Secretary may reasonably require.
       ``(7) Report.--
       ``(A) In general.--Not later than January 1 of each year, 
     the Secretary shall prepare and submit to the appropriate 
     congressional committees a report that contains a 
     justification for each grant awarded under this subsection 
     for the prior fiscal year.
       ``(B) Definition.--In this paragraph, the term `appropriate 
     congressional committees' means--
       ``(i) the Committee on Appropriations and the Committee on 
     Education and the Workforce of the House of Representatives; 
     and
       ``(ii) the Committee on Appropriations and the Committee on 
     Health, Education, Labor, and Pensions of the Senate.''.

     SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE 
                   AID.

       Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amended by 
     inserting after ``section 8003(a)(2)(B)'' the following: 
     ``and, with respect to a local educational agency that 
     receives a payment under section 8003(b)(2), the amount in 
     excess of the amount that the agency would receive if the 
     agency were deemed to be an agency eligible to receive a 
     payment under section 8003(b)(1) and not section 
     8003(b)(2)''.

     SEC. 805. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 8014 (20 U.S.C. 7714) is amended 
     in subsections (a), (b), (c), and (f) by striking ``three 
     succeeding fiscal years'' each place it appears and inserting 
     ``seven succeeding fiscal years''.
       (b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is 
     amended by striking ``for each of the three succeeding fiscal 
     years'' and inserting ``for fiscal year 2001, $150,000,000 
     for fiscal year 2002, and such sums as may be necessary for 
     each of the five succeeding fiscal years''.
       (c) Additional Assistance for Certain Local Educational 
     Agencies Impacted by Federal Property Acquisition.--Section 
     8014 (20 U.S.C. 7714) is amended by striking subsection (g).
                     ``TITLE IX--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

     ``SEC. 9101. DEFINITIONS.

       ``Except as otherwise provided, in this Act:
       ``(1) Average daily attendance.--
       ``(A) In general.--Except as provided otherwise by State 
     law or this paragraph, the term `average daily attendance' 
     means--
       ``(i) the aggregate number of days of attendance of all 
     students during a school year; divided by
       ``(ii) the number of days school is in session during that 
     year.
       ``(B) Conversion.--The Secretary shall permit the 
     conversion of average daily membership (or other similar 
     data) to average daily attendance for local educational 
     agencies in States that provide State aid to local 
     educational agencies on the basis of average daily membership 
     (or other similar data).
       ``(C) Special rule.--If the local educational agency in 
     which a child resides makes a tuition or other payment for 
     the free public education of the child in a school located in 
     another school district, the Secretary shall, for the purpose 
     of this Act--
       ``(i) consider the child to be in attendance at a school of 
     the agency making the payment; and
       ``(ii) not consider the child to be in attendance at a 
     school of the agency receiving the payment.
       ``(D) Children with disabilities.--If a local educational 
     agency makes a tuition payment to a private school or to a 
     public school of another local educational agency for a child 
     with a disability, as defined in section 602 of the 
     Individuals with Disabilities Education Act, the Secretary 
     shall, for the purpose of this Act, consider the child to be 
     in attendance at a school of the agency making the payment.
       ``(2) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' means, in the case of a State or of 
     the United States--
       ``(A) without regard to the source of funds--
       ``(i) the aggregate current expenditures, during the third 
     fiscal year preceding the fiscal year for which the 
     determination is made (or, if satisfactory data for that year 
     are not available, during the most recent preceding fiscal 
     year for which satisfactory data are available) of all local 
     educational agencies in the State or, in the case of the 
     United States, for all States (which, for the purpose of this 
     paragraph, means the 50 States and the District of Columbia); 
     plus
       ``(ii) any direct current expenditures by the State for the 
     operation of those agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom those agencies provided free public 
     education during that preceding year.
       ``(3) Beginning teacher.--The term `beginning teacher' 
     means a teacher in a public school who has been teaching less 
     than a total of 3 complete school years.
       ``(4) Child.--The term `child' means any person within the 
     age limits for which the State provides free public 
     education.
       ``(5) Child with a disability.--The term `child with a 
     disability' has the same meaning given that term in section 
     602 of the Individuals with Disabilities Education Act.
       ``(6) Community-based organization.--The term `community-
     based organization' means a public or private nonprofit 
     organization of demonstrated effectiveness that--
       ``(A) is representative of a community or significant 
     segments of a community; and
       ``(B) provides educational or related services to 
     individuals in the community.
       ``(7) Consolidated local application.--The term 
     `consolidated local application' means an application 
     submitted by a local educational agency pursuant to section 
     9305.
       ``(8) Consolidated local plan.--The term `consolidated 
     local plan' means a plan submitted by a local educational 
     agency pursuant to section 9305.
       ``(9) Consolidated state application.--The term 
     `consolidated State application' means an application 
     submitted by a State educational agency pursuant to section 
     9302.
       ``(10) Consolidated state plan.--The term `consolidated 
     State plan' means a plan submitted by a State educational 
     agency pursuant to section 9302.

[[Page 25767]]

       ``(11) Core academic subjects.--The term `core academic 
     subjects' means English, reading or language arts, 
     mathematics, science, foreign languages, civics and 
     government, economics, arts, history, and geography.
       ``(12) County.--The term `county' means one of the 
     divisions of a State used by the Secretary of Commerce in 
     compiling and reporting data regarding counties.
       ``(13) Covered program.--The term `covered program' means 
     each of the programs authorized by--
       ``(A) part A of title I;
       ``(B) subpart 3 of part B of title I;
       ``(C) part C of title I;
       ``(D) part D of title I;
       ``(E) part F of title I;
       ``(F) part A of title II;
       ``(G) part D of title II;
       ``(H) part A of title III;
       ``(I) part A of title IV;
       ``(J) part B of title IV;
       ``(K) part A of title V; and
       ``(L) subpart 2 of part B of title VI.
       ``(14) Current expenditures.--The term `current 
     expenditures' means expenditures for free public education--
       ``(A) including expenditures for administration, 
     instruction, attendance and health services, pupil 
     transportation services, operation and maintenance of plant, 
     fixed charges, and net expenditures to cover deficits for 
     food services and student body activities; but
       ``(B) not including expenditures for community services, 
     capital outlay, and debt service, or any expenditures made 
     from funds received under title I and part A of title V.
       ``(15) Department.--The term `Department' means the 
     Department of Education.
       ``(16) Distance learning.--The term `distance learning' 
     means the transmission of educational or instructional 
     programming to geographically dispersed individuals and 
     groups via telecommunications.
       ``(17) Educational service agency.--The term `educational 
     service agency' means a regional public multiservice agency 
     authorized by State statute to develop, manage, and provide 
     services or programs to local educational agencies.
       ``(18) Elementary school.--The term `elementary school' 
     means a nonprofit institutional day or residential school, 
     including a public elementary charter school, that provides 
     elementary education, as determined under State law.
       ``(19) Exemplary teacher.--The term `exemplary teacher' 
     means a teacher who--
       (A) is a highly qualified teacher such as a master teacher;
       (B) has been teaching for at least 5 years in a public or 
     private school or institution of higher education;
       (C) is recommended to be an exemplary teacher by 
     administrators and other teachers who are knowledgeable about 
     the individual's performance;
       (D) is currently teaching and based in a public school; and
       (E) assists other teachers in improving instructional 
     strategies, improves the skills of other teachers, performs 
     teacher mentoring, develops curricula, and offers other 
     professional development.
       ``(20) Family literacy services.--The term `family literacy 
     services' means services provided to participants on a 
     voluntary basis that are of sufficient intensity in terms of 
     hours, and of sufficient duration, to make sustainable 
     changes in a family, and that integrate all of the following 
     activities:
       ``(A) Interactive literacy activities between parents and 
     their children.
       ``(B) Training for parents regarding how to be the primary 
     teacher for their children and full partners in the education 
     of their children.
       ``(C) Parent literacy training that leads to economic self-
     sufficiency.
       ``(D) An age-appropriate education to prepare children for 
     success in school and life experiences.
       ``(21) Free public education.--The term `free public 
     education' means education that is provided--
       ``(A) at public expense, under public supervision and 
     direction, and without tuition charge; and
       ``(B) as elementary school or secondary school education as 
     determined under applicable State law, except that the term 
     does not include any education provided beyond grade 12.
       ``(22) Gifted and talented.--The term `gifted and 
     talented', when used with respect to students, children, or 
     youth, means students, children, or youth who give evidence 
     of high achievement capability in areas such as intellectual, 
     creative, artistic, or leadership capacity, or in specific 
     academic fields, and who need services or activities not 
     ordinarily provided by the school in order to fully develop 
     those capabilities.
       ``(23) Highly qualified.--The term `highly qualified'--
       ``(A) when used with respect to any public elementary 
     school or secondary school teacher teaching in a State, means 
     that--
       ``(i) the teacher has obtained full State certification as 
     a teacher (including certification obtained through 
     alternative routes to certification) or passed the State 
     teacher licensing examination, and holds a license to teach 
     in such State, except that when used with respect to any 
     teacher teaching in a public charter school, the term means 
     that the teacher meets the requirements set forth in the 
     State's public charter school law; and
       ``(ii) the teacher has not had certification or licensure 
     requirements waived on an emergency, temporary, or 
     provisional basis;
       ``(B) when used with respect to--
       ``(i) an elementary school teacher who is new to the 
     profession, means that the teacher--

       ``(I) holds at least a bachelor's degree; and
       ``(II) has demonstrated, by passing a rigorous State test, 
     subject knowledge and teaching skills in reading, writing, 
     mathematics, and other areas of the basic elementary school 
     curriculum (which may consist of passing a State-required 
     certification or licensing test or tests in reading, writing, 
     mathematics, and other areas of the basic elementary school 
     curriculum); or

       ``(ii) a middle or secondary school teacher who is new to 
     the profession, means that the teacher holds at least a 
     bachelor's degree and has demonstrated a high level of 
     competency in each of the academic subjects in which the 
     teacher teaches by--

       ``(I) passing a rigorous State academic subject test in 
     each of the academic subjects in which the teacher teaches 
     (which may consist of a passing level of performance on a 
     State-required certification or licensing test or tests in 
     each of the academic subjects in which the teacher teaches); 
     or
       ``(II) successful completion, in each of the academic 
     subjects in which the teacher teaches, of an academic major, 
     a graduate degree, coursework equivalent to an undergraduate 
     academic major, or advanced certification or credentialing; 
     and

       ``(C) when used with respect to an elementary, middle, or 
     secondary school teacher who is not new to the profession, 
     means that the teacher holds at least a bachelor's degree 
     and--
       ``(i) has met the applicable standard in clause (i) or (ii) 
     of subparagraph (B), which includes an option for a test; or
       ``(ii) demonstrates competence in all the academic subjects 
     in which the teacher teaches based on a high objective 
     uniform State standard of evaluation that--

       ``(I) is set by the State for both grade appropriate 
     academic subject matter knowledge and teaching skills;
       ``(II) is aligned with challenging State academic content 
     and student academic achievement standards and developed in 
     consultation with core content specialists, teachers, 
     principals, and school administrators;
       ``(III) provides objective, coherent information about the 
     teacher's attainment of core content knowledge in the 
     academic subjects in which a teacher teaches;
       ``(IV) is applied uniformly to all teachers in the same 
     academic subject and the same grade level throughout the 
     State;
       ``(V) takes into consideration, but not be based primarily 
     on, the time the teacher has been teaching in the academic 
     subject;
       ``(VI) is made available to the public upon request; and
       ``(VII) may involve multiple, objective measures of teacher 
     competency.

       ``(24) Institution of higher education.--The term 
     `institution of higher education' has the meaning given that 
     term in section 101(a) of the Higher Education Act of 1965.
       ``(25) Limited english proficient.--The term `limited 
     English proficient', when used with respect to an individual, 
     means an individual--
       ``(A) who is aged 3 through 21;
       ``(B) who is enrolled or preparing to enroll in an 
     elementary school or secondary school;
       ``(C)(i) who was not born in the United States or whose 
     native language is a language other than English;
       ``(ii)(I) who is a Native American or Alaska Native, or a 
     native resident of the outlying areas; and
       ``(II) who comes from an environment where a language other 
     than English has had a significant impact on the individual's 
     level of English language proficiency; or
       ``(iii) who is migratory, whose native language is a 
     language other than English, and who comes from an 
     environment where a language other than English is dominant; 
     and
       ``(D) whose difficulties in speaking, reading, writing, or 
     understanding the English language may be sufficient to deny 
     the individual--
       ``(i) the ability to meet the State's proficient level of 
     achievement on State assessments described in section 
     1111(b)(3);
       ``(ii) the ability to successfully achieve in classrooms 
     where the language of instruction is English; or
       ``(iii) the opportunity to participate fully in society.
       ``(26) Local educational agency.--
       ``(A) In general.--The term `local educational agency' 
     means a public board of education or other public authority 
     legally constituted within a State for either administrative 
     control or direction of, or to perform a service function 
     for, public elementary schools or secondary schools in a 
     city, county, township, school district, or other political 
     subdivision of a State, or of or for a combination of school 
     districts or counties that is recognized in a State as an 
     administrative agency for its public elementary schools or 
     secondary schools.
       ``(B) Administrative control and direction.--The term 
     includes any other public institution or agency having 
     administrative control and direction of a public elementary 
     school or secondary school.
       ``(C) BIA schools.--The term includes an elementary school 
     or secondary school funded by the Bureau of Indian Affairs 
     but only to the extent that including the school makes the 
     school eligible for programs for which specific eligibility 
     is not provided to the school in another provision of law and 
     the school does not have a student population that is smaller 
     than the student population of the local educational agency

[[Page 25768]]

     receiving assistance under this Act with the smallest student 
     population, except that the school shall not be subject to 
     the jurisdiction of any State educational agency other than 
     the Bureau of Indian Affairs.
       ``(D) Educational service agencies.--The term includes 
     educational service agencies and consortia of those agencies.
       ``(E) State educational agency.--The term includes the 
     State educational agency in a State in which the State 
     educational agency is the sole educational agency for all 
     public schools.
       ``(27) Mentoring.--The term `mentoring', except when used 
     to refer to teacher mentoring, means a process by which a 
     responsible adult, postsecondary student, or secondary school 
     student works with a child to provide a positive role model 
     for the child, to establish a supportive relationship with 
     the child, and to provide the child with academic assistance 
     and exposure to new experiences and examples of opportunity 
     that enhance the ability of the child to become a responsible 
     adult.
       ``(28) Native american and native american language.--The 
     terms `Native American' and `Native American language' have 
     the same meaning given those terms in section 103 of the 
     Native American Languages Act of 1990.
       ``(29) Other staff.--The term `other staff' means pupil 
     services personnel, librarians, career guidance and 
     counseling personnel, education aides, and other 
     instructional and administrative personnel.
       ``(30) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands, and for the 
     purpose of section 1121(b) and any other discretionary grant 
     program under this Act, includes the freely associated states 
     of the Republic of the Marshall Islands, the Federated States 
     of Micronesia, and the Republic of Palau until an agreement 
     for the extension of United States education assistance under 
     the Compact of Free Association for each of the freely 
     associated states becomes effective after the date of 
     enactment of the No Child Left Behind Act of 2001.
       ``(31) Parent.--The term `parent' includes a legal guardian 
     or other person standing in loco parentis (such as a 
     grandparent or stepparent with whom the child lives, or a 
     person who is legally responsible for the child's welfare).
       ``(32) Parental involvement.--The term `parental 
     involvement' means the participation of parents in regular, 
     two-way, and meaningful communication involving student 
     academic learning and other school activities, including 
     ensuring--
       ``(A) that parents play an integral role in assisting their 
     child's learning;
       ``(B) that parents are encouraged to be actively involved 
     in their child's education at school;
       ``(C) that parents are full partners in their child's 
     education and are included, as appropriate, in decisionmaking 
     and on advisory committees to assist in the education of 
     their child;
       ``(D) the carrying out of other activities, such as those 
     described in section 1118.
       ``(33) 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.
       ``(34) Professional development.--The term `professional 
     development'--
       ``(A) includes activities that--
       ``(i) improve and increase teachers' knowledge of the 
     academic subjects the teachers teach, and enable teachers to 
     become highly qualified;
       ``(ii) are an integral part of broad schoolwide and 
     districtwide educational improvement plans;
       ``(iii) give teachers, principals, and administrators the 
     knowledge and skills to provide students with the opportunity 
     to meet challenging State academic content standards and 
     student academic achievement standards;
       ``(iv) improve classroom management skills;
       ``(v)(I) are high quality, sustained, intensive, and 
     classroom-focused in order to have a positive and lasting 
     impact on classroom instruction and the teacher's performance 
     in the classroom; and
       ``(II) are not 1-day or short-term workshops or 
     conferences;
       ``(vi) support the recruiting, hiring, and training of 
     highly qualified teachers, including teachers who became 
     highly qualified through State and local alternative routes 
     to certification;
       ``(vii) advance teacher understanding of effective 
     instructional strategies that are--

       ``(I) based on scientifically based research (except that 
     this subclause shall not apply to activities carried out 
     under part D of title II); and
       ``(II) strategies for improving student academic 
     achievement or substantially increasing the knowledge and 
     teaching skills of teachers; and

       ``(viii) are aligned with and directly related to--

       ``(I) State academic content standards, student academic 
     achievement standards, and assessments; and
       ``(II) the curricula and programs tied to the standards 
     described in subclause (I) except that this subclause shall 
     not apply to activities described in clauses (ii) and (iii) 
     of section 2123(3)(B);

       ``(ix) are developed with extensive participation of 
     teachers, principals, parents, and administrators of schools 
     to be served under this Act;
       ``(x) are designed to give teachers of limited English 
     proficient children, and other teachers and instructional 
     staff, the knowledge and skills to provide instruction and 
     appropriate language and academic support services to those 
     children, including the appropriate use of curricula and 
     assessments;
       ``(xi) to the extent appropriate, provide training for 
     teachers and principals in the use of technology so that 
     technology and technology applications are effectively used 
     in the classroom to improve teaching and learning in the 
     curricula and core academic subjects in which the teachers 
     teach;
       ``(xii) as a whole, are regularly evaluated for their 
     impact on increased teacher effectiveness and improved 
     student academic achievement, with the findings of the 
     evaluations used to improve the quality of professional 
     development;
       ``(xiii) provide instruction in methods of teaching 
     children with special needs;
       ``(xiv) include instruction in the use of data and 
     assessments to inform and instruct classroom practice; and
       ``(xv) include instruction in ways that teachers, 
     principals, pupil services personnel, and school 
     administrators may work more effectively with parents; and
       ``(B) may include activities that--
       ``(i) involve the forming of partnerships with institutions 
     of higher education to establish school-based teacher 
     training programs that provide prospective teachers and 
     beginning teachers with an opportunity to work under the 
     guidance of experienced teachers and college faculty;
       ``(ii) create programs to enable paraprofessionals 
     (assisting teachers employed by a local educational agency 
     receiving assistance under part A of title I) to obtain the 
     education necessary for those paraprofessionals to become 
     certified and licensed teachers; and
       ``(iii) provide follow-up training to teachers who have 
     participated in activities described in subparagraph (A) or 
     another clause of this subparagraph that are designed to 
     ensure that the knowledge and skills learned by the teachers 
     are implemented in the classroom.
       ``(35) Public telecommunications entity.--The term `public 
     telecommunications entity' has the meaning given that term in 
     section 397(12) of the Communications Act of 1934.
       ``(36) Pupil services personnel; pupil services.--
       ``(A) Pupil services personnel.--The term `pupil services 
     personnel' means school counselors, school social workers, 
     school psychologists, and other qualified professional 
     personnel involved in providing assessment, diagnosis, 
     counseling, educational, therapeutic, and other necessary 
     services (including related services as that term is defined 
     in section 602 of the Individuals with Disabilities Education 
     Act) as part of a comprehensive program to meet student 
     needs.
       ``(B) Pupil services.--The term `pupil services' means the 
     services provided by pupil services personnel.
       ``(37) Scientifically based research.--The term 
     `scientifically based research'--
       ``(A) means research that involves the application of 
     rigorous, systematic, and objective procedures to obtain 
     reliable and valid knowledge relevant to education activities 
     and programs; and
       ``(B) includes research that--
       ``(i) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(iii) relies on measurements or observational methods 
     that provide reliable and valid data across evaluators and 
     observers, across multiple measurements and observations, and 
     across studies by the same or different investigators;
       ``(iv) is evaluated using experimental or quasi-
     experimental designs in which individuals, entities, 
     programs, or activities are assigned to different conditions 
     and with appropriate controls to evaluate the effects of the 
     condition of interest, with a preference for random-
     assignment experiments, or other designs to the extent that 
     those designs contain within-condition or across-condition 
     controls;
       ``(v) ensures that experimental studies are presented in 
     sufficient detail and clarity to allow for replication or, at 
     a minimum, offer the opportunity to build systematically on 
     their findings; and
       ``(vi) has been accepted by a peer-reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review.
       ``(38) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school, 
     including a public secondary charter school, that provides 
     secondary education, as determined under State law, except 
     that the term does not include any education beyond grade 12.
       ``(39) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       State.--The term `State' means each of the 50 States, the 
     District of Columbia, the Commonwealth of Puerto Rico, and 
     each of the outlying areas.
       ``(41) State educational agency.--The term `State 
     educational agency' means the agency primarily responsible 
     for the State supervision of public elementary schools and 
     secondary schools.
       ``(42) Teacher mentoring.--The term `teacher mentoring' 
     means activities that--
       ``(A) consist of structured guidance and regular and 
     ongoing support for teachers, especially beginning teachers, 
     that--
       ``(i) are designed to help the teachers continue to improve 
     their practice of teaching and to develop their instructional 
     skills; and

[[Page 25769]]

       ``(ii) as part of an ongoing developmental induction 
     process--

       ``(I) involve the assistance of an exemplary teacher and 
     other appropriate individuals from a school, local 
     educational agency, or institution of higher education; and
       ``(II) may include coaching, classroom observation, team 
     teaching, and reduced teaching loads; and

       ``(B) may include the establishment of a partnership by a 
     local educational agency with an institution of higher 
     education, another local educational agency, a teacher 
     organization, or another organization.
       ``(43) Technology.--The term `technology' means state-of-
     the-art technology products and services.

     ``SEC. 9102. APPLICABILITY OF TITLE.

       ``Parts B, C, D, and E of this title do not apply to title 
     VIII of this Act.

     ``SEC. 9103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS 
                   OPERATED SCHOOLS.

       ``For the purpose of any competitive program under this 
     Act--
       ``(1) a consortium of schools operated by the Bureau of 
     Indian Affairs;
       ``(2) a school operated under a contract or grant with the 
     Bureau of Indian Affairs in consortium with another contract 
     or grant school or a tribal or community organization; or
       ``(3) a Bureau of Indian Affairs school in consortium with 
     an institution of higher education, a contract or grant 
     school, or a tribal or community organization,
     shall be given the same consideration as a local educational 
     agency.

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

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

       ``(a) Consolidation of Administrative Funds.--
       ``(1) In general.--A State educational agency may 
     consolidate the amounts specifically made available to it for 
     State administration under one or more of the programs under 
     paragraph (2) if the State educational agency can demonstrate 
     that the majority of its resources are derived from non-
     Federal sources.
       ``(2) Applicability.--This section applies to any program 
     under this Act under which funds are authorized to be used 
     for administration, and such other programs as the Secretary 
     may designate.
       ``(b) Use of funds.--
       ``(1) In general.--A State educational agency shall use the 
     amount available under this section for the administration of 
     the programs included in the consolidation under subsection 
     (a).
       ``(2) Additional uses.--A State educational agency may also 
     use funds available under this section for administrative 
     activities designed to enhance the effective and coordinated 
     use of funds under programs included in the consolidation 
     under subsection (a), such as--
       ``(A) the coordination of those programs with other Federal 
     and non-Federal programs;
       ``(B) the establishment and operation of peer-review 
     mechanisms under this Act;
       ``(C) the administration of this title;
       ``(D) the dissemination of information regarding model 
     programs and practices;
       ``(E) technical assistance under any program under this 
     Act;
       ``(F) State-level activities designed to carry out this 
     title;
       ``(G) training personnel engaged in audit and other 
     monitoring activities; and
       ``(H) implementation of the Cooperative Audit Resolution 
     and Oversight Initiative of the Department.
       ``(c) Records.--A State educational agency that 
     consolidates administrative funds under this section shall 
     not be required to keep separate records, by individual 
     program, to account for costs relating to the administration 
     of programs included in the consolidation under subsection 
     (a).
       ``(d) Review.--To determine the effectiveness of State 
     administration under this section, the Secretary may 
     periodically review the performance of State educational 
     agencies in using consolidated administrative funds under 
     this section and take such steps as the Secretary finds 
     appropriate to ensure the effectiveness of that 
     administration.
       ``(e) Unused Administrative Funds.--If a State educational 
     agency does not use all of the funds available to the agency 
     under this section for administration, the agency may use 
     those funds during the applicable period of availability as 
     funds available under one or more programs included in the 
     consolidation under subsection (a).
       ``(f) Consolidation of Funds for Standards and Assessment 
     Development.--In order to develop challenging State academic 
     standards and assessments, a State educational agency may 
     consolidate the amounts described in subsection (a) for those 
     purposes under title I.

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

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

     ``SEC. 9203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

       ``(a) General Authority.--In accordance with regulations of 
     the Secretary and for any fiscal year, a local educational 
     agency, with the approval of its State educational agency, 
     may consolidate and use for the administration of one or more 
     programs under this Act (or such other programs as the 
     Secretary shall designate) not more than the percentage, 
     established in each program, of the total available for the 
     local educational agency under those programs.
       ``(b) State Procedures.--Within 1 year after the date of 
     enactment of the No Child Left Behind Act of 2001, a State 
     educational agency shall, in collaboration with local 
     educational agencies in the State, establish procedures for 
     responding to requests from local educational agencies to 
     consolidate administrative funds under subsection (a) and for 
     establishing limitations on the amount of funds under those 
     programs that may be used for administration on a 
     consolidated basis.
       ``(c) Conditions.--A local educational agency that 
     consolidates administrative funds under this section for any 
     fiscal year shall not use any other funds under the programs 
     included in the consolidation for administration for that 
     fiscal year.
       ``(d) Uses of Administrative Funds.--A local educational 
     agency that consolidates administrative funds under this 
     section may use the consolidated funds for the administration 
     of the programs and for uses, at the school district and 
     school levels, comparable to those described in section 
     9201(b)(2).
       ``(e) Records.--A local educational agency that 
     consolidates administrative funds under this section shall 
     not be required to keep separate records, by individual 
     program, to account for costs relating to the administration 
     of the programs included in the consolidation.

     ``SEC. 9204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE 
                   INTERIOR FUNDS.

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

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

     ``SEC. 9301. PURPOSE.

       ``The purposes of this part are--
       ``(1) to improve teaching and learning by encouraging 
     greater cross-program coordination, planning, and service 
     delivery;
       ``(2) to provide greater flexibility to State and local 
     authorities through consolidated plans, applications, and 
     reporting; and
       ``(3) to enhance the integration of programs under this Act 
     with State and local programs.

     ``SEC. 9302. OPTIONAL CONSOLIDATED STATE PLANS OR 
                   APPLICATIONS.

       ``(a) General Authority.--
       ``(1) Simplification.--In order to simplify application 
     requirements and reduce the burden for State educational 
     agencies under this Act, the Secretary, in accordance with 
     subsection (b), shall establish procedures and criteria under 
     which, after consultation with the Governor, a State 
     educational agency may submit a consolidated State plan or a 
     consolidated State application meeting the requirements of 
     this section for--
       ``(A) each of the covered programs in which the State 
     participates; and
       ``(B) such other programs as the Secretary may designate.
       ``(2) Consolidated applications and plans.--After 
     consultation with the Governor, a State educational agency 
     that submits a consolidated State plan or a consolidated 
     State application under this section shall not be required to 
     submit separate State plans or applications under any of the 
     programs to which the consolidated State plan or consolidated 
     State application under this section applies.
       ``(b) Collaboration.--
       ``(1) In general.--In establishing criteria and procedures 
     under this section, the Secretary shall collaborate with 
     State educational agencies and, as appropriate, with other 
     State agencies, local educational agencies, public and 
     private nonprofit agencies, organizations, and institutions, 
     private schools, and representatives of parents, students, 
     and teachers.
       ``(2) Contents.--Through the collaborative process 
     described in paragraph (1), the Secretary shall establish, 
     for each program under this Act to which this section 
     applies, the descriptions, information, assurances, and other 
     material required to be included in a consolidated State plan 
     or consolidated State application.

[[Page 25770]]

       ``(3) Necessary materials.--The Secretary shall require 
     only descriptions, information, assurances (including 
     assurances of compliance with applicable provisions regarding 
     participation by private school children and teachers), and 
     other materials that are absolutely necessary for the 
     consideration of the consolidated State plan or consolidated 
     State application.

     ``SEC. 9303. CONSOLIDATED REPORTING.

       ``(a) In general.--In order to simplify reporting 
     requirements and reduce reporting burdens, the Secretary 
     shall establish procedures and criteria under which a State 
     educational agency, in consultation with the Governor of the 
     State, may submit a consolidated State annual report.
       ``(b) Contents.--The report shall contain information about 
     the programs included in the report, including the 
     performance of the State under those programs, and other 
     matters as the Secretary determines are necessary, such as 
     monitoring activities.
       ``(c) Replacement.--The report shall replace separate 
     individual annual reports for the programs included in the 
     consolidated State annual report.

     ``SEC. 9304. GENERAL APPLICABILITY OF STATE EDUCATIONAL 
                   AGENCY ASSURANCES.

       ``(a) Assurances.--A State educational agency, in 
     consultation with the Governor of the State, that submits a 
     consolidated State plan or consolidated State application 
     under this Act, whether separately or under section 9302, 
     shall have on file with the Secretary a single set of 
     assurances, applicable to each program for which the plan or 
     application is submitted, that provides that--
       ``(1) each such program will be administered in accordance 
     with all applicable statutes, regulations, program plans, and 
     applications;
       ``(2)(A) the control of funds provided under each such 
     program and title to property acquired with program funds 
     will be in a public agency, a nonprofit private agency, 
     institution, or organization, or an Indian tribe, if the law 
     authorizing the program provides for assistance to those 
     entities; and
       ``(B) the public agency, nonprofit private agency, 
     institution, or organization, or Indian tribe will administer 
     those funds and property to the extent required by the 
     authorizing law;
       ``(3) the State will adopt and use proper methods of 
     administering each such program, including--
       ``(A) the enforcement of any obligations imposed by law on 
     agencies, institutions, organizations, and other recipients 
     responsible for carrying out each program;
       ``(B) the correction of deficiencies in program operations 
     that are identified through audits, monitoring, or 
     evaluation; and
       ``(C) the adoption of written procedures for the receipt 
     and resolution of complaints alleging violations of law in 
     the administration of the programs;
       ``(4) the State will cooperate in carrying out any 
     evaluation of each such program conducted by or for the 
     Secretary or other Federal officials;
       ``(5) the State will use such fiscal control and fund 
     accounting procedures as will ensure proper disbursement of, 
     and accounting for, Federal funds paid to the State under 
     each such program;
       ``(6) the State will--
       ``(A) make reports to the Secretary as may be necessary to 
     enable the Secretary to perform the Secretary's duties under 
     each such program; and
       ``(B) maintain such records, provide such information to 
     the Secretary, and afford such access to the records as the 
     Secretary may find necessary to carry out the Secretary's 
     duties; and
       ``(7) before the plan or application was submitted to the 
     Secretary, the State afforded a reasonable opportunity for 
     public comment on the plan or application and considered such 
     comment.
       ``(b) GEPA Provision.--Section 441 of the General Education 
     Provisions Act shall not apply to programs under this Act.

     ``SEC. 9305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

       ``(a) General Authority.--
       ``(1) Consolidated plan.--A local educational agency 
     receiving funds under more than one covered program may 
     submit plans or applications to the State educational agency 
     under those programs on a consolidated basis.
       ``(2) Availability to governor.--The State educational 
     agency shall make any consolidated local plans and 
     applications available to the Governor.
       ``(b) Required Consolidated Plans or Applications.--A State 
     educational agency that has an approved consolidated State 
     plan or application under section 9302 may require local 
     educational agencies in the State receiving funds under more 
     than one program included in the consolidated State plan or 
     consolidated State application to submit consolidated local 
     plans or applications under those programs, but may not 
     require those agencies to submit separate plans.
       ``(c) Collaboration.--A State educational agency, in 
     consultation with the Governor, shall collaborate with local 
     educational agencies in the State in establishing procedures 
     for the submission of the consolidated State plans or 
     consolidated State applications under this section.
       ``(d) Necessary Materials.--The State educational agency 
     shall require only descriptions, information, assurances, and 
     other material that are absolutely necessary for the 
     consideration of the local educational agency plan or 
     application.

     ``SEC. 9306. OTHER GENERAL ASSURANCES.

       ``(a) Assurances.--Any applicant, other than a State 
     educational agency that submits a plan or application under 
     this Act, whether separately or pursuant to section 9305, 
     shall have on file with the State educational agency a single 
     set of assurances, applicable to each program for which a 
     plan or application is submitted, that provides that--
       ``(1) each such program will be administered in accordance 
     with all applicable statutes, regulations, program plans, and 
     applications;
       ``(2)(A) the control of funds provided under each such 
     program and title to property acquired with program funds 
     will be in a public agency or in a nonprofit private agency, 
     institution, organization, or Indian tribe, if the law 
     authorizing the program provides for assistance to those 
     entities; and
       ``(B) the public agency, nonprofit private agency, 
     institution, or organization, or Indian tribe will administer 
     the funds and property to the extent required by the 
     authorizing statutes;
       ``(3) the applicant will adopt and use proper methods of 
     administering each such program, including--
       ``(A) the enforcement of any obligations imposed by law on 
     agencies, institutions, organizations, and other recipients 
     responsible for carrying out each program; and
       ``(B) the correction of deficiencies in program operations 
     that are identified through audits, monitoring, or 
     evaluation;
       ``(4) the applicant will cooperate in carrying out any 
     evaluation of each such program conducted by or for the State 
     educational agency, the Secretary, or other Federal 
     officials;
       ``(5) the applicant will use such fiscal control and fund 
     accounting procedures as will ensure proper disbursement of, 
     and accounting for, Federal funds paid to the applicant under 
     each such program;
       ``(6) the applicant will--
       ``(A) submit such reports to the State educational agency 
     (which shall make the reports available to the Governor) and 
     the Secretary as the State educational agency and Secretary 
     may require to enable the State educational agency and the 
     Secretary to perform their duties under each such program; 
     and
       ``(B) maintain such records, provide such information, and 
     afford such access to the records as the State educational 
     agency (after consultation with the Governor) or the 
     Secretary may reasonably require to carry out the State 
     educational agency's or the Secretary's duties; and
       ``(7) before the application was submitted, the applicant 
     afforded a reasonable opportunity for public comment on the 
     application and considered such comment.
       ``(b) GEPA Provision.--Section 442 of the General Education 
     Provisions Act shall not apply to programs under this Act.

                           ``PART D--WAIVERS

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

       ``(a) In General.--Except as provided in subsection (c), 
     the Secretary may waive any statutory or regulatory 
     requirement of this Act for a State educational agency, local 
     educational agency, Indian tribe, or school through a local 
     educational agency, that--
       ``(1) receives funds under a program authorized by this 
     Act; and
       ``(2) requests a waiver under subsection (b).
       ``(b) Request for Waiver.--
       ``(1) In general.--A State educational agency, local 
     educational agency, or Indian tribe that desires a waiver 
     shall submit a waiver request to the Secretary that--
       ``(A) identifies the Federal programs affected by the 
     requested waiver;
       ``(B) describes which Federal statutory or regulatory 
     requirements are to be waived and how the waiving of those 
     requirements will--
       ``(i) increase the quality of instruction for students; and
       ``(ii) improve the academic achievement of students;
       ``(C) describes, for each school year, specific, measurable 
     educational goals, in accordance with section 1111(b), for 
     the State educational agency and for each local educational 
     agency, Indian tribe, or school that would be affected by the 
     waiver and the methods to be used to measure annually /such 
     progress for meeting such goals and outcomes;
       ``(D) explains how the waiver will assist the State 
     educational agency and each affected local educational 
     agency, Indian tribe, or school in reaching those goals; and
       ``(E) describes how schools will continue to provide 
     assistance to the same populations served by programs for 
     which waivers are requested.
       ``(2) Additional information.--Such requests--
       ``(A) may provide for waivers of requirements applicable to 
     State educational agencies, local educational agencies, 
     Indian tribes, and schools; and
       ``(B) shall be developed and submitted--
       ``(i)(I) by local educational agencies (on behalf of those 
     agencies and schools) to State educational agencies; and
       ``(II) by State educational agencies (on behalf of, and 
     based on the requests of, local educational agencies) to the 
     Secretary; or
       ``(ii) by Indian tribes (on behalf of schools operated by 
     the tribes) to the Secretary.
       ``(3) General requirements.--
       ``(A) State educational agencies.--In the case of a waiver 
     request submitted by a State educational agency acting on its 
     own behalf, the State educational agency shall--
       ``(i) provide all interested local educational agencies in 
     the State with notice and a reasonable opportunity to comment 
     on the request;

[[Page 25771]]

       ``(ii) submit the comments to the Secretary; and
       ``(iii) provide notice and information to the public 
     regarding the waiver request in the manner in which the 
     applying agency customarily provides similar notices and 
     information to the public.
       ``(B) Local educational agencies.--In the case of a waiver 
     request submitted by a local educational agency that receives 
     funds under this Act--
       ``(i) the request shall be reviewed by the State 
     educational agency and be accompanied by the comments, if 
     any, of the State educational agency; and
       ``(ii) notice and information regarding the waiver request 
     shall be provided to the public by the agency requesting the 
     waiver in the manner in which that agency customarily 
     provides similar notices and information to the public.
       ``(c) Restrictions.--The Secretary shall not waive under 
     this section any statutory or regulatory requirements 
     relating to--
       ``(1) the allocation or distribution of funds to States, 
     local educational agencies, or other recipients of funds 
     under this Act;
       ``(2) maintenance of effort;
       ``(3) comparability of services;
       ``(4) use of Federal funds to supplement, not supplant, 
     non-Federal funds;
       ``(5) equitable participation of private school students 
     and teachers;
       ``(6) parental participation and involvement;
       ``(7) applicable civil rights requirements;
       ``(8) the requirement for a charter school under subpart 1 
     of part B of title V;
       ``(9) the prohibitions regarding--
       ``(A) State aid in section 9522;
       ``(B) use of funds for religious worship or instruction in 
     section 9505; and
       ``(C) activities in section 9526; or
       ``(10) the selection of a school attendance area or school 
     under subsections (a) and (b) of section 1113, except that 
     the Secretary may grant a waiver to allow a school attendance 
     area or school to participate in activities under part A of 
     title I if the percentage of children from low-income 
     families in the school attendance area or who attend the 
     school is not more than 10 percentage points below the lowest 
     percentage of those children for any school attendance area 
     or school of the local educational agency that meets the 
     requirements of subsections (a) and (b) of section 1113.
       ``(d) Duration and Extension of Waiver.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     waiver approved by the Secretary under this section may be 
     for a period not to exceed 4 years.
       ``(2) Extension.--The Secretary may extend the period 
     described in paragraph (1) if the Secretary determines that--
       ``(A) the waiver has been effective in enabling the State 
     or affected recipient to carry out the activities for which 
     the waiver was requested and the waiver has contributed to 
     improved student achievement; and
       `(B) the extension is in the public interest.
       ``(e) Reports.--
       ``(1) Local waiver.--A local educational agency that 
     receives a waiver under this section shall, at the end of the 
     second year for which a waiver is received under this section 
     and each subsequent year, submit a report to the State 
     educational agency that--
       ``(A) describes the uses of the waiver by the agency or by 
     schools;
       ``(B) describes how schools continued to provide assistance 
     to the same populations served by the programs for which 
     waivers were granted; and
       ``(C) evaluates the progress of the agency and of schools 
     in improving the quality of instruction or the academic 
     achievement of students.
       ``(2) State waiver.--A State educational agency that 
     receives reports required under paragraph (1) shall annually 
     submit a report to the Secretary that is based on those 
     reports and contains such information as the Secretary may 
     require.
       ``(3) Indian tribe waiver.--An Indian tribe that receives a 
     waiver under this section shall annually submit a report to 
     the Secretary that--
       ``(A) describes the uses of the waiver by schools operated 
     by the tribe; and
       ``(B) evaluates the progress of those schools in improving 
     the quality of instruction or the academic achievement of 
     students.
       ``(4) Report to congress.--Beginning in fiscal year 2002 
     and for each subsequent year, the Secretary shall submit to 
     the Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, Labor 
     and Pensions of the Senate a report--
       ``(A) summarizing the uses of waivers by State educational 
     agencies, local educational agencies, Indian tribes, and 
     schools; and
       ``(B) describing whether the waivers--
       ``(i) increased the quality of instruction to students; or
       ``(ii) improved the academic achievement of students.
       ``(f) Termination of Waivers.--The Secretary shall 
     terminate a waiver under this section if the Secretary 
     determines, after notice and an opportunity for a hearing, 
     that the performance of the State or other recipient affected 
     by the waiver has been inadequate to justify a continuation 
     of the waiver or if the waiver is no longer necessary to 
     achieve its original purposes.
       ``(g) Publication.--A notice of the Secretary's decision to 
     grant each waiver under subsection (a) shall be published in 
     the Federal Register and the Secretary shall provide for the 
     dissemination of the notice to State educational agencies, 
     interested parties, including educators, parents, students, 
     advocacy and civil rights organizations, and the public.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

     ``SEC. 9501. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND 
                   TEACHERS.

       ``(a) Private School Participation.--
       ``(1) In general.--Except as otherwise provided in this 
     Act, to the extent consistent with the number of eligible 
     children in areas served by a State educational agency, local 
     educational agency, educational service agency, consortium of 
     those agencies, or another entity receiving financial 
     assistance under a program specified in subsection (b), who 
     are enrolled in private elementary schools and secondary 
     schools in areas served by such agency, consortium, or 
     entity, the agency, consortium, or entity shall, after timely 
     and meaningful consultation with appropriate private school 
     officials provide to those children and their teachers or 
     other educational personnel, on an equitable basis, special 
     educational services or other benefits that address their 
     needs under the program.
       ``(2) Secular, neutral, and nonideological services or 
     benefits.--Educational services or other benefits, including 
     materials and equipment, provided under this section, shall 
     be secular, neutral, and nonideological.
       ``(3) Special rule.--Educational services and other 
     benefits provided under this section for private school 
     children, teachers, and other educational personnel shall be 
     equitable in comparison to services and other benefits for 
     public school children, teachers, and other educational 
     personnel participating in the program and shall be provided 
     in a timely manner.
       ``(4) Expenditures.--Expenditures for educational services 
     and other benefits provided under this section for eligible 
     private school children, their teachers, and other 
     educational personnel serving those children shall be equal, 
     taking into account the number and educational needs of the 
     children to be served, to the expenditures for participating 
     public school children.
       ``(5) Provision of services.--An agency, consortium, or 
     entity described in subsection (a)(1) of this section may 
     provide those services directly or through contracts with 
     public and private agencies, organizations, and institutions.
       ``(b) Applicability.--
       ``(1) In general.--This section applies to programs under--
       ``(A) subparts 1 and 3 of part B of title I;
       ``(B) part C of title I;
       ``(C) part A of title II, to the extent provided in 
     paragraph (3);
       ``(D) part B of title II;
       ``(E) part D of title II;
       ``(F) part A of title III;
       ``(G) part A of title IV; and
       ``(H) part B of title IV.
       ``(2) Definition.--For the purpose of this section, the 
     term `eligible children' means children eligible for services 
     under a program described in paragraph (1).
       ``(3) Application.--(A) Except as provided in subparagraph 
     (B), this subpart, including subsection (a)(4), applies to 
     funds awarded to a local educational agency under part A of 
     title II only to the extent that the local educational agency 
     uses funds under that part to provide professional 
     development to teachers and others.
       ``(B) Subject to subparagraph (A), the share of the local 
     educational agency's subgrant under part A of title II that 
     is used for professional development and subject to a 
     determination of equitable expenditures under subsection 
     (a)(4) shall not be less than the aggregate share of that 
     agency's awards that were used for professional development 
     for fiscal year 2001 under section 2203(1)(B) (as such 
     section was in effect on the day preceding the date of 
     enactment of the No Child Left Behind Act of 2001) and 
     section 306 of the Department of Education Appropriations 
     Act, 2001.
       ``(c) Consultation.--
       ``(1) In general.--To ensure timely and meaningful 
     consultation, a State educational agency, local educational 
     agency, educational service agency, consortium of those 
     agencies, or entity shall consult with appropriate private 
     school officials during the design and development of the 
     programs under this Act, on issues such as--
       ``(A) how the children's needs will be identified;
       ``(B) what services will be offered;
       ``(C) how, where, and by whom the services will be 
     provided;
       ``(D) how the services will be assessed and how the results 
     of the assessment will be used to improve those services;
       ``(E) the size and scope of the equitable services to be 
     provided to the eligible private school children, teachers, 
     and other educational personnel and the amount of funds 
     available for those services; and
       ``(F) how and when the agency, consortium, or entity will 
     make decisions about the delivery of services, including a 
     thorough consideration and analysis of the views of the 
     private school officials on the provision of contract 
     services through potential third-party providers.
       ``(2) Disagreement.--If the agency, consortium, or entity 
     disagrees with the views of the private school officials on 
     the provision of services through a contract, the agency, 
     consortium, or entity shall provide to the private school 
     officials a written explanation of the reasons why the local 
     educational agency has chosen not to use a contractor.

[[Page 25772]]

       ``(3) Timing.--The consultation required by paragraph (1) 
     shall occur before the agency, consortium, or entity makes 
     any decision that affects the opportunities of eligible 
     private school children, teachers, and other educational 
     personnel to participate in programs under this Act, and 
     shall continue throughout the implementation and assessment 
     of activities under this section.
       ``(4) Discussion required.--The consultation required by 
     paragraph (1) shall include a discussion of service delivery 
     mechanisms that the agency, consortium, or entity could use 
     to provide equitable services to eligible private school 
     children, teachers, administrators, and other staff.
       ``(d) Public Control of Funds.--
       ``(1) In general.--The control of funds used to provide 
     services under this section, and title to materials, 
     equipment, and property purchased with those funds, shall be 
     in a public agency for the uses and purposes provided in this 
     Act, and a public agency shall administer the funds and 
     property.
       ``(2) Provision of services.--
       ``(A) In general.--The provision of services under this 
     section shall be provided--
       ``(i) by employees of a public agency; or
       ``(ii) through contract by the public agency with an 
     individual, association, agency, organization, or other 
     entity.
       ``(B) Independence; public agency.--In the provision of 
     those services, the employee, person, association, agency, 
     organization, or other entity shall be independent of the 
     private school and of any religious organization, and the 
     employment or contract shall be under the control and 
     supervision of the public agency.
       ``(C) Commingling of funds prohibited.--Funds used to 
     provide services under this section shall not be commingled 
     with non-Federal funds.

     ``SEC. 9502. STANDARDS FOR BY-PASS.

       ``(a) In General.--If, by reason of any provision of law, a 
     State educational agency, local educational agency, 
     educational service agency, consortium of those agencies, or 
     other entity is prohibited from providing for the 
     participation in programs of children enrolled in, or 
     teachers or other educational personnel from, private 
     elementary schools and secondary schools, on an equitable 
     basis, or if the Secretary determines that the agency, 
     consortium, or entity has substantially failed or is 
     unwilling to provide for that participation, as required by 
     section 9501, the Secretary shall--
       ``(1) waive the requirements of that section for the 
     agency, consortium, or entity; and
       ``(2) arrange for the provision of equitable services to 
     those children, teachers, or other educational personnel 
     through arrangements that shall be subject to the 
     requirements of this section and of sections 9501, 9503, and 
     9504.
       ``(b) Determination.--In making the determination under 
     subsection (a), the Secretary shall consider one or more 
     factors, including the quality, size, scope, and location of 
     the program, and the opportunity of private school children, 
     teachers, and other educational personnel to participate in 
     the program.

     ``SEC. 9503. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE 
                   SCHOOL CHILDREN.

       ``(a) Procedures for Complaints.--The Secretary shall 
     develop and implement written procedures for receiving, 
     investigating, and resolving complaints from parents, 
     teachers, or other individuals and organizations concerning 
     violations of section 9501 by a State educational agency, 
     local educational agency, educational service agency, 
     consortium of those agencies, or entity. The individual or 
     organization shall submit the complaint to the State 
     educational agency for a written resolution by the State 
     educational agency within a reasonable period of time.
       ``(b) Appeals to Secretary.--The resolution may be appealed 
     by an interested party to the Secretary not later than 30 
     days after the State educational agency resolves the 
     complaint or fails to resolve the complaint within a 
     reasonable period of time. The appeal shall be accompanied by 
     a copy of the State educational agency's resolution, and a 
     complete statement of the reasons supporting the appeal. The 
     Secretary shall investigate and resolve the appeal not later 
     than 120 days after receipt of the appeal.

     ``SEC. 9504. BY-PASS DETERMINATION PROCESS.

       ``(a) Review.--
       ``(1) In general.--
       ``(A) Written objections.--The Secretary shall not take any 
     final action under section 9502 until the State educational 
     agency, local educational agency, educational service agency, 
     consortium of those agencies, or entity affected by the 
     action has had an opportunity, for not less than 45 days 
     after receiving written notice thereof, to submit written 
     objections and to appear before the Secretary to show cause 
     why that action should not be taken.
       ``(B) Prior to reduction.--Pending final resolution of any 
     investigation or complaint that could result in a 
     determination under this section, the Secretary may withhold 
     from the allocation of the affected State educational agency 
     or local educational agency the amount estimated by the 
     Secretary to be necessary to pay the cost of those services.
       ``(2) Petition for review.--
       ``(A) Petition.--If the affected agency, consortium, or 
     entity is dissatisfied with the Secretary's final action 
     after a proceeding under paragraph (1), the agency, 
     consortium, or entity may, within 60 days after notice of 
     that action, file with the United States court of appeals for 
     the circuit in which the State is located a petition for 
     review of that action.
       ``(B) Transmission.--A copy of the petition shall be 
     forthwith transmitted by the clerk of the court to the 
     Secretary.
       ``(C) Filing.--The Secretary, upon receipt of the copy of 
     the petition, shall file in the court the record of the 
     proceedings on which the Secretary based the action, as 
     provided in section 2112 of title 28, United States Code.
       ``(3) Findings of fact.--
       ``(A) In general.--The findings of fact by the Secretary, 
     if supported by substantial evidence, shall be conclusive, 
     but the court, for good cause shown, may remand the case to 
     the Secretary to take further evidence and the Secretary may 
     then make new or modified findings of fact and may modify the 
     Secretary's previous action, and shall file in the court the 
     record of the further proceedings.
       ``(B) New or modified findings.--Any new or modified 
     findings of fact shall likewise be conclusive if supported by 
     substantial evidence.
       ``(4) Jurisdiction.--
       ``(A) In general.--Upon the filing of a petition, the court 
     shall have jurisdiction to affirm the action of the Secretary 
     or to set the action aside, in whole or in part.
       ``(B) Judgment.--The judgment of the court shall be subject 
     to review by the Supreme Court of the United States upon 
     certiorari or certification as provided in section 1254 of 
     title 28, United States Code.
       ``(b) Determination.--Any determination by the Secretary 
     under this section shall continue in effect until the 
     Secretary determines, in consultation with that agency, 
     consortium, or entity and representatives of the affected 
     private school children, teachers, or other educational 
     personnel, that there will no longer be any failure or 
     inability on the part of the agency, consortium, or entity to 
     meet the applicable requirements of section 9501 or any other 
     provision of this Act.
       ``(c) Payment From State Allotment.--When the Secretary 
     arranges for services pursuant to this section, the Secretary 
     shall, after consultation with the appropriate public and 
     private school officials, pay the cost of those services, 
     including the administrative costs of arranging for those 
     services, from the appropriate allocation or allocations 
     under this Act.
       ``(d) Prior Determination.--Any by-pass determination by 
     the Secretary under this Act as in effect on the day 
     preceding the date of enactment of the No Child Left Behind 
     Act of 2001 shall remain in effect to the extent the 
     Secretary determines that that determination is consistent 
     with the purpose of this section.

     ``SEC. 9505. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP 
                   OR INSTRUCTION.

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

     ``SEC. 9506. PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

       ``(a) Applicability to Nonrecipient Private Schools.--
     Nothing in this Act shall be construed to affect any private 
     school that does not receive funds or services under this 
     Act, nor shall any student who attends a private school that 
     does not receive funds or services under this Act be required 
     to participate in any assessment referenced in this Act.
       ``(b) Applicability to Home Schools.--Nothing in this Act 
     shall be construed to affect a home school, whether or not a 
     home school is treated as a home school or a private school 
     under State law, nor shall any student schooled at home be 
     required to participate in any assessment referenced in this 
     Act.
       ``(c) Rule of Construction on Prohibition of Federal 
     Control Over Nonpublic Schools.--Nothing in this Act shall be 
     construed to permit, allow, encourage, or authorize any 
     Federal control over any aspect of any private, religious, or 
     home school, whether or not a home school is treated as a 
     private school or home school under State law. This section 
     shall not be construed to bar private, religious, or home 
     schools from participation in programs or services under this 
     Act.
       ``(d) Rule of Construction on State and Local Educational 
     Agency Mandates.--Nothing in this Act shall be construed to 
     require any State educational agency or local educational 
     agency that receives funds under this Act to mandate, direct, 
     or control the curriculum of a private or home school, 
     regardless or whether or not a home school is treated as a 
     private school under state law, nor shall any funds under 
     this Act be used for this purpose.

                     ``Subpart 2--Other Provisions

     ``SEC. 9521. MAINTENANCE OF EFFORT.

       ``(a) In General.--A local educational agency may receive 
     funds under a covered program for any fiscal year only if the 
     State educational agency finds that either the combined 
     fiscal effort per student or the aggregate expenditures of 
     the agency and the State with respect to the provision of 
     free public education by the agency for the preceding fiscal 
     year was not less than 90 percent of the combined fiscal 
     effort or aggregate expenditures for the second preceding 
     fiscal year.
       ``(b) Reduction in Case of Failure To Meet.--
       ``(1) In general.--The State educational agency shall 
     reduce the amount of the allocation of funds under a covered 
     program in any fiscal year in the exact proportion by which a 
     local educational agency fails to meet the requirement of 
     subsection (a) of this section by falling below 90 percent of 
     both the combined fiscal effort per student and aggregate 
     expenditures (using the measure most favorable to the local 
     agency).

[[Page 25773]]

       ``(2) Special rule.--No such lesser amount shall be used 
     for computing the effort required under subsection (a) of 
     this section for subsequent years.
       ``(c) Waiver.--The Secretary may waive the requirements of 
     this section if the Secretary determines that a waiver would 
     be equitable due to--
       ``(1) exceptional or uncontrollable circumstances, such as 
     a natural disaster; or
       ``(2) a precipitous decline in the financial resources of 
     the local educational agency.

     ``SEC. 9522. PROHIBITION REGARDING STATE AID.

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

     ``SEC. 9523. PRIVACY OF ASSESSMENT RESULTS.

       ``Any results from an individual assessment referred to in 
     this Act of a student that become part of the education 
     records of the student shall have the protections provided in 
     section 444 of the General Education Provisions Act.

     ``SEC. 9524. SCHOOL PRAYER.

       ``(a) Guidance.--The Secretary shall provide and revise 
     guidance, not later than September 1, 2002, and of every 
     second year thereafter, to State educational agencies, local 
     educational agencies, and the public on constitutionally 
     protected prayer in public elementary schools and secondary 
     schools, including making the guidance available on the 
     Internet. The guidance shall be reviewed, prior to 
     distribution, by the Office of Legal Counsel of the 
     Department of Justice for verification that the guidance 
     represents the current state of the law concerning 
     constitutionally protected prayer in public elementary 
     schools and secondary schools.
       ``(b) Certification.--As a condition of receiving funds 
     under this Act, a local educational agency shall certify in 
     writing to the State educational agency involved that no 
     policy of the local educational agency prevents, or otherwise 
     denies participation in, constitutionally protected prayer in 
     public elementary schools and secondary schools, as detailed 
     in the guidance required under subsection (a). The 
     certification shall be provided by October 1 of each year. 
     The State educational agency shall report to the Secretary by 
     November 1 of each year a list of those local educational 
     agencies that have not filed the certification or against 
     which complaints have been made to the State educational 
     agency that the local educational agencies are not in 
     compliance with this section.
       ``(c) Enforcement.--The Secretary is authorized and 
     directed to effectuate subsection (b) by issuing, and 
     securing compliance with, rules or orders with respect to a 
     local educational agency that fails to certify, or is found 
     to have certified in bad faith, that no policy of the local 
     educational agency prevents, or otherwise denies 
     participation in, constitutionally protected prayer in public 
     elementary schools and secondary schools.

     ``SEC. 9525. EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

       ``(a) Short Title.--This section may be cited as the `Boy 
     Scouts of America Equal Access Act'.
       ``(b) In General.--
       ``(1) Equal access.--Notwithstanding any other provision of 
     law, no public elementary school, public secondary school, 
     local educational agency, or State educational agency that 
     has a designated open forum or a limited public forum and 
     that receives funds made available through the Department 
     shall deny equal access or a fair opportunity to meet to, or 
     discriminate against, any group officially affiliated with 
     the Boy Scouts of America, or any other youth group listed in 
     title 36 of the United States Code (as a patriotic society), 
     that wishes to conduct a meeting within that designated open 
     forum or limited public forum, including denying such access 
     or opportunity or discriminating for reasons based on the 
     membership or leadership criteria or oath of allegiance to 
     God and country of the Boy Scouts of America or of the youth 
     group listed in title 36 of the United States Code (as a 
     patriotic society).
       ``(2) Voluntary sponsorship.--Nothing in this section shall 
     be construed to require any school, agency, or a school 
     served by an agency to sponsor any group officially 
     affiliated with the Boy Scouts of America, or any other youth 
     group listed in title 36 of the United States Code (as a 
     patriotic society).
       ``(c) Termination of Assistance and Other Action.--
       ``(1) Departmental action.--The Secretary is authorized and 
     directed to effectuate subsection (b) by issuing and securing 
     compliance with rules or orders with respect to a public 
     elementary school, public secondary school, local educational 
     agency, or State educational agency that receives funds made 
     available through the Department and that denies equal 
     access, or a fair opportunity to meet, or discriminates, as 
     described in subsection (b).
       ``(2) Procedure.--The Secretary shall issue and secure 
     compliance with the rules or orders, under paragraph (1), 
     through the Office for Civil Rights and in a manner 
     consistent with the procedure used by a Federal department or 
     agency under section 602 of the Civil Rights Act of 1964. If 
     the public school or agency does not comply with the rules or 
     orders, then notwithstanding any other provision of law, no 
     funds made available through the Department shall be provided 
     to a school that fails to comply with such rules or orders or 
     to any agency or school served by an agency that fails to 
     comply with such rules or orders.
       ``(3) Judicial review.--Any action taken by the Secretary 
     under paragraph (1) shall be subject to the judicial review 
     described in section 603 of the Civil Rights Act of 1964. Any 
     person aggrieved by the action may obtain that judicial 
     review in the manner, and to the extent, provided in section 
     603 of such Act.
       ``(d) Definition and Rule.--
       ``(1) Definition.--In this section, the term `youth group' 
     means any group or organization intended to serve young 
     people under the age of 21.
       ``(2) Rule.--For the purpose of this section, an elementary 
     school or secondary school has a limited public forum 
     whenever the school involved grants an offering to, or 
     opportunity for, one or more outside youth or community 
     groups to meet on school premises or in school facilities 
     before or after the hours during which attendance at the 
     school is compulsory.

     ``SEC. 9526. GENERAL PROHIBITIONS.

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

     ``SEC. 9527. PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF 
                   FEDERAL FUNDS.

       ``(a) General Prohibition.--Nothing in this Act shall be 
     construed to authorize an officer or employee of the Federal 
     Government to mandate, direct, or control a State, local 
     educational agency, or school's curriculum, program of 
     instruction, or allocation of State or local resources, or 
     mandate a State or any subdivision thereof to spend any funds 
     or incur any costs not paid for under this Act.
       ``(b) Prohibition on Endorsement of Curriculum.--
     Notwithstanding any other prohibition of Federal law, no 
     funds provided to the Department under this Act may be used 
     by the Department to endorse, approve, or sanction any 
     curriculum designed to be used in an elementary school or 
     secondary school.
       ``(c) Prohibition on Requiring Federal Approval or 
     Certification of Standards.--
       ``(1) In general.--Notwithstanding any other provision of 
     Federal law, no State shall be required to have academic 
     content or student academic achievement standards approved or 
     certified by the Federal Government, in order to receive 
     assistance under this Act.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to affect requirements under title I or 
     part A of title VI.
       ``(d) Rule of Construction on Building Standards.--Nothing 
     in this Act shall be construed to mandate national school 
     building standards for a State, local educational agency, or 
     school.

     ``SEC. 9528. ARMED FORCES RECRUITER ACCESS TO STUDENTS AND 
                   STUDENT RECRUITING INFORMATION.

       ``(a) Policy.--
       ``(1) Access to student recruiting information.--
     Notwithstanding section 444(a)(5)(B) of the General Education 
     Provisions Act and except as provided in paragraph (2), each 
     local educational agency receiving assistance under this Act 
     shall provide, on a request made by military recruiters or an 
     institution of higher education, access to secondary school 
     students names, addresses, and telephone listings.
       ``(2) Consent.--A secondary school student or the parent of 
     the student may request that the student's name, address, and 
     telephone listing described in paragraph (1) not be released 
     without prior written parental consent, and the local 
     educational agency or private school shall notify parents of 
     the option to make a request and shall comply with any 
     request.
       ``(3) Same access to students.--Each local educational 
     agency receiving assistance under this Act shall provide 
     military recruiters the same access to secondary school 
     students as is provided generally to post secondary 
     educational institutions or to prospective employers of those 
     students.
       ``(b) Notification.--The Secretary, in consultation with 
     the Secretary of Defense, shall, not later than 120 days 
     after the date of enactment of the No Child Left Behind Act 
     of 2001, notify principals, school administrators, and other 
     educators about the requirements of this section.
       ``(c) Exception.--The requirements of this section do not 
     apply to a private secondary school that maintains a 
     religious objection to service in the Armed Forces if the 
     objection is verifiable through the corporate or other 
     organizational documents or materials of that school.

[[Page 25774]]

       ``(d) Special Rule.--A local educational agency prohibited 
     by Connecticut State law (either explicitly by statute or 
     through statutory interpretation by the State Supreme Court 
     or State Attorney General) from providing military recruiters 
     with information or access as required by this section shall 
     have until May 31, 2002, to comply with that requirement.

     ``SEC. 9529. PROHIBITION ON FEDERALLY SPONSORED TESTING.

       ``(a) General Prohibition.--Notwithstanding any other 
     provision of Federal law and except as provided in subsection 
     (b), no funds provided under this Act to the Secretary or to 
     the recipient of any award may be used to develop, pilot 
     test, field test, implement, administer, or distribute any 
     federally sponsored national test in reading, mathematics, or 
     any other subject, unless specifically and explicitly 
     authorized by law.
       ``(b) Exceptions.--Subsection (a) shall not apply to 
     international comparative assessments developed under the 
     authority of section 404(a)(6) of the National Education 
     Statistics Act of 1994 and administered to only a 
     representative sample of pupils in the United States and in 
     foreign nations.

     ``SEC. 9530. LIMITATIONS ON NATIONAL TESTING OR CERTIFICATION 
                   FOR TEACHERS.

       ``(a) Mandatory National Testing or Certification of 
     Teachers.--Notwithstanding any other provision of this Act or 
     any other provision of law, no funds available to the 
     Department or otherwise available under this Act may be used 
     for any purpose relating to a mandatory nationwide test or 
     certification of teachers or education paraprofessionals, 
     including any planning, development, implementation, or 
     administration of such test or certification.
       ``(b) Prohibition on Withholding Funds.--The Secretary is 
     prohibited from withholding funds from any State educational 
     agency or local educational agency if the State educational 
     agency or local educational agency fails to adopt a specific 
     method of teacher or paraprofessional certification.

     ``SEC. 9531. PROHIBITION ON NATIONWIDE DATABASE.

       ``Nothing in this Act (other than section 1308(b)) shall be 
     construed to authorize the development of a nationwide 
     database of personally identifiable information on 
     individuals involved in studies or other collections of data 
     under this Act.

     ``SEC. 9532. UNSAFE SCHOOL CHOICE OPTION.

       ``(a) Unsafe School Choice Policy.--Each State receiving 
     funds under this Act shall establish and implement a 
     statewide policy requiring that a student attending a 
     persistently dangerous public elementary school or secondary 
     school, as determined by the State in consultation with a 
     representative sample of local educational agencies, or who 
     becomes a victim of a violent criminal offense, as determined 
     by State law, while in or on the grounds of a public 
     elementary school or secondary school that the student 
     attends, be allowed to attend a safe public elementary or 
     secondary school within the local educational agency, 
     including a public charter school.
       ``(b) Certification.--As a condition of receiving funds 
     under this Act, a State shall certify in writing to the 
     Secretary that the State is in compliance with this section.

     ``SEC. 9533. PROHIBITION ON DISCRIMINATION.

       ``Nothing in this Act shall be construed to require, 
     authorize, or permit, the Secretary, or a State educational 
     agency, local educational agency, or school to grant to a 
     student, or deny or impose upon a student, any financial or 
     educational benefit or burden, in violation of the fifth or 
     14th amendments to the Constitution or other law relating to 
     discrimination in the provision of federally funded programs 
     or activities.

     ``SEC. 9534. CIVIL RIGHTS.

       ``(a) In General.--Nothing in this Act shall be construed 
     to permit discrimination on the basis of race, color, 
     religion, sex (except as otherwise permitted under title IX 
     of the Education Amendments of 1972), national origin, or 
     disability in any program funded under this Act.
       ``(b) Rule of Construction.--Nothing in this Act shall be 
     construed to require the disruption of services to a child or 
     the displacement of a child enrolled in or participating in a 
     program administered by an eligible entity, as defined in 
     section 1116 of title I and part B of title V, at the 
     commencement of the entity's participation in a grant under 
     section 1116 of title I or part B of title V.

     ``SEC. 9535. RULEMAKING.

       ``The Secretary shall issue regulations under this Act only 
     to the extent that such regulations are necessary to ensure 
     that there is compliance with the specific requirements and 
     assurances required by this Act.

     ``SEC. 9536. SEVERABILITY.

       ``If any provision of this Act is held invalid, the 
     remainder of this Act shall be unaffected thereby.

                         ``PART F--EVALUATIONS

     ``SEC. 9601. EVALUATIONS.

       ``(a) Reservation of Funds.--Except as provided in 
     subsections (b) and (c), the Secretary may reserve not more 
     than 0.5 percent of the amount appropriated to carry out each 
     categorical program and demonstration project authorized 
     under this Act--
       ``(1) to conduct--
       ``(A) comprehensive evaluations of the program or project; 
     and
       ``(B) studies of the effectiveness of the program or 
     project and its administrative impact on schools and local 
     educational agencies;
       ``(2) to evaluate the aggregate short- and long-term 
     effects and cost efficiencies across Federal programs 
     assisted or authorized under this Act and related Federal 
     preschool, elementary, and secondary programs under any other 
     Federal law; and
       ``(3) to increase the usefulness of evaluations of grant 
     recipients in order to ensure the continuous progress of the 
     program or project by improving the quality, timeliness, 
     efficiency, and use of information relating to performance 
     under the program or project.
       ``(b) Titles I and III Excluded.--The Secretary may not 
     reserve under subsection (a) funds appropriated to carry out 
     any program authorized under title I or title III.
       ``(c) Evaluation Activities Authorized Elsewhere.--If, 
     under any other provision of this Act (other than title I), 
     funds are authorized to be reserved or used for evaluation 
     activities with respect to a program or project, the 
     Secretary may not reserve additional funds under this section 
     for the evaluation of that program or project.
   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                            PART A--REPEALS

     SEC. 1011. REPEALS.

       The following provisions of law are repealed:
       (1) Part G of title XV of the Higher Education Amendments 
     of 1992 (20 U.S.C. 1070a-11 note), relating to the Advanced 
     Placement fee payment program.
       (2) Part B of title VIII of the Higher Education Amendments 
     of 1998 (20 U.S.C. 1070a-11 note), relating to the Advanced 
     Placement incentive program.
       (3) Part F of the General Education Provisions Act (20 
     U.S.C. 1235 et seq.), relating to Ready to Learn Television.
       (4) The following provisions of the Goals 2000: Educate 
     America Act (20 U.S.C. 5801 et seq.):
       (A) Parts A and C of title II (20 U.S.C. 5821 et seq., 
     5871), relating to the National Education Goals Panel.
       (B) Title VI (20 U.S.C. 5951), relating to the 
     International Education Program.
       (5) The following provisions of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.):
       (A) Titles X through XII (20 U.S.C. 8001 et seq.).
       (B) Sections 13001 and 13002 (20 U.S.C. 8601, 8602).
       (C) Title XIV (20 U.S.C. 8801 et seq.).
       (6) The Troops-to-Teachers Program Act of 1999 (20 U.S.C. 
     9301 et seq.).

     SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.

       The table of contents in section 1(b) of the Goals 2000: 
     Educate America Act (20 U.S.C. 5801 note) is amended by 
     striking the items relating to the following provisions:
       (1) Parts A and C of title II (including the items relating 
     to sections within those parts).
       (2) Sections 231, 232, 234, and 235.
       (3) Titles III through VI (including the items relating to 
     sections within those titles).

                         PART B--REDESIGNATIONS

     SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

       (a) In General.--Part A of title XIII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8621 et seq.) is 
     transferred to and redesignated as part K of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994.
       (b) Sections.--Sections 13101 through 13105 of such part 
     are redesignated as sections 1001 through 1005, respectively.
       (c) Defined Terms.--Part K of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     transferred and redesignated by this section) is amended by 
     adding at the end the following new section:

     ``SEC. 1006. DEFINED TERMS.

       ``In this part, the definitions of terms defined in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     shall apply.''.

     SEC. 1022. NATIONAL DIFFUSION NETWORK.

       (a) In General.--Part B of title XIII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8651 et seq.) is 
     transferred to and redesignated as part L of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994.
       (b) Sections.--Sections 13201 and 13102 of such part are 
     redesignated as sections 1011 and 1012, respectively.
       (c) Defined Terms.--Part L of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     transferred and redesignated by this section) is amended by 
     adding at the end the following new section:

     ``SEC. 1013. DEFINED TERMS.

       ``In this part, the definitions of terms defined in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     shall apply.''.

     SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE 
                   EDUCATION CONSORTIA.

       (a) In General.--Part C of title XIII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8671 et seq.) is 
     transferred to and redesignated as part M of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994.
       (b) Sections.--Sections 13301 through 13108 of such part 
     are redesignated as sections 1021 through 1028, respectively.
       (c) Defined Terms.--Part M of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     transferred and redesignated by this section) is amended by 
     adding at the end the following new section:

[[Page 25775]]



     ``SEC. 1029. DEFINED TERMS.

       ``In this part, the definitions of terms defined in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     shall apply.''.

     SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

       (a) In General.--Part D of title XIII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8701) is 
     transferred to and redesignated as part N of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994.
       (b) Sections.--Section 13401 of such part is redesignated 
     as section 1031.
       (c) Defined Terms.--Part N of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     transferred and redesignated by this section) is amended by 
     adding at the end the following new section:

     ``SEC. 1032. DEFINED TERMS.

       ``In this part, the definitions of terms defined in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     shall apply.''.

     SEC. 1025. CONFORMING AMENDMENTS.

       (a) Parts K Through M.--Parts K through M of the 
     Educational Research, Development, Dissemination, and 
     Improvement Act of 1994 (as transferred and redesignated by 
     sections 1021 through 1024 of this Act) are amended as 
     follows:
       (1) Insert ``of such Act'' in--
       (A) section 1002(a)(1)(A), after ``title I''; and
       (B) section 1002(a)(1)(B), after ``section 1114''.
       (2) Insert ``of the Elementary and Secondary Education Act 
     of 1965 (as such Act was in effect on the day before the date 
     of enactment of the No Child Left Behind Act of 2001)'' in--
       (A) sections 1001(a)(2)(A) and 1011(e)(1), after ``title 
     I'';
       (B) sections 1002(b)(1) and section 1011(g)(3)(A), after 
     ``section 1114''; and
       (C) in section 1011(e)(3), after ``title III''.
       (3) In section 1011(a)(1), strike ``(hereafter referred to 
     in this Act as `NDN')''.
       (4) In subsections (c) and (g)(1) of section 1011 and in 
     section 1027(1)(E), strike ``of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994''.
       (5) In subsections (a)(2)(A) and (d) of section 1011, 
     strike ``part A'' and insert ``part K''.
       (6) In sections 1002(a)(4) and 1011(e)(3), strike ``part 
     C'' and insert ``part M''.
       (7) In section 1002(a), strike ``section 13101(a)'' and 
     insert ``section 1001(a)''.
       (8) In section 1003(b)(1), strike ``section 13102'' and 
     insert ``section 1002''.
       (9) In section 1004(b)(1), strike ``section 13105'' and 
     insert ``section 1005''.
       (10) In sections 1002(a)(7) and 1003(b)(2), strike 
     ``section 13201'' and insert ``section 1011''.
       (11) In section 1022(2) and (3), strike ``section 
     13301(a)(1)'' and insert ``section 1021(a)(1)''.
       (12) In section 1027(4), strike ``section 13301'' and 
     insert ``section 1021''.
       (13) In subsections (a) and (b) of section 1025, strike 
     ``section 13303'' and insert ``section 1023''.
       (14) In the text preceding paragraph (1) of section 1022, 
     strike ``section 13304'' and insert ``section 1024''.
       (15) In section 1021(a)(3), strike ``section 13308'' and 
     insert ``section 1028''.
       (16) In sections 1003(b)(2) and 1011(f)(4), strike 
     ``section 13401'' and insert ``section 1031''.
       (17) Strike ``this Act'' and insert ``the Elementary and 
     Secondary Education Act of 1965 (as such Act was in effect on 
     the day before the date of enactment of the No Child Left 
     Behind Act of 2001)'' in--
       (A) section 1001(a)(1) (the first occurrence only);
       (B) paragraphs (1) through (3) of section 1001(c);
       (C) paragraphs (1), (2), (6), and (8) of section 1002(a);
       (D) section 1011(e); and
       (E) section 1031(2).
       (18) In paragraphs (1) and (2) of section 1004(b), strike 
     ``this Act'' and insert ``the Elementary and Secondary 
     Education Act of 1965''.
       (19) In section 1001(a)(1) (the second occurrence only) and 
     in section 1002(a)(1)(C), strike ``this Act'' and insert 
     ``such Act''.
       (20) Section 1011 is amended--
       (A) in subsection (a)(1), by striking ``In order to 
     implement the purposes of this title, the'' and inserting 
     ``The''; and
       (B) in subsection (f)(5), by striking ``to achieve the 
     purposes of this title''.
       (21) In section 1022(1), strike ``, the Eisenhower National 
     Clearinghouse for Science and Mathematics Education 
     established under section 2102(b)''.
       (22) In section 1026(a), strike ``section 14701'' and 
     insert ``section 9601''.
       (b) Title XIII Heading.--The Elementary and Secondary 
     Education Act of 1965 is amended by striking the heading of 
     title XIII.

                       PART C--HOMELESS EDUCATION

     SEC. 1031. SHORT TITLE.

       This part may be cited as the ``McKinney-Vento Homeless 
     Education Assistance Improvements Act of 2001''.

     SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.

       Subtitle B of title VII of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11431 et seq.) is amended to read 
     as follows:
        ``Subtitle B--Education for Homeless Children and Youths

     ``SEC. 721. STATEMENT OF POLICY.

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

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

       ``(a) General Authority.--The Secretary is authorized to 
     make grants to States in accordance with the provisions of 
     this section to enable such States to carry out the 
     activities described in subsections (d) through (g).
       ``(b) Application.--No State may receive a grant under this 
     section unless the State educational agency submits an 
     application to the Secretary at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require.
       ``(c) Allocation and Reservations.--
       ``(1) Allocation.--(A) Subject to subparagraph (B), the 
     Secretary is authorized to allot to each State an amount that 
     bears the same ratio to the amount appropriated for such year 
     under section 726 that remains after the Secretary reserves 
     funds under paragraph (2) and uses funds to carry out section 
     724(d) and (h), as the amount allocated under section 1122 of 
     the Elementary and Secondary Education Act of 1965 to the 
     State for that year bears to the total amount allocated under 
     section 1122 of such Act to all States for that year, except 
     that no State shall receive less than the greater of--
       ``(i) $150,000;
       ``(ii) \1/4\ of 1 percent of the amount appropriated under 
     section 726 for that year; or
       ``(iii) the amount such State received under this section 
     for fiscal year 2001.
       ``(B) If there are insufficient funds in a fiscal year to 
     allot to each State the minimum amount under subparagraph 
     (A), the Secretary shall ratably reduce the allotments to all 
     States based on the proportionate share that each State 
     received under this subsection for the preceding fiscal year.
       ``(2) Reservations.--(A) The Secretary is authorized to 
     reserve 0.1 percent of the amount appropriated for each 
     fiscal year under section 726 to be allocated by the 
     Secretary among the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands, according to their respective need for assistance 
     under this subtitle, as determined by the Secretary.
       ``(B)(i) The Secretary shall transfer 1 percent of the 
     amount appropriated for each fiscal year under section 726 to 
     the Department of the Interior for programs for Indian 
     students served by schools funded by the Secretary of the 
     Interior, as determined under the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450 et seq.), that 
     are consistent with the purposes of the programs described in 
     this subtitle.
       ``(ii) The Secretary and the Secretary of the Interior 
     shall enter into an agreement, consistent with the 
     requirements of this subtitle, for the distribution and use 
     of the funds described in clause (i) under terms that the 
     Secretary determines best meet the purposes of the programs 
     described in this subtitle. Such agreement shall set forth 
     the plans of the Secretary of the Interior for the use of the 
     amounts transferred, including appropriate goals, objectives, 
     and milestones.
       ``(3) State defined.--For purposes of this subsection, the 
     term `State' does not include the United States Virgin 
     Islands, Guam, American Samoa, or the Commonwealth of the 
     Northern Mariana Islands.
       ``(d) Activities.--Grants under this section shall be used 
     for the following:
       ``(1) To carry out the policies set forth in section 721 in 
     the State.
       ``(2) To provide activities for, and services to, homeless 
     children, including preschool-aged homeless children, and 
     youths that enable such children and youths to enroll in, 
     attend, and succeed in school, or, if appropriate, in 
     preschool programs.
       ``(3) To establish or designate an Office of Coordinator 
     for Education of Homeless Children and Youths in the State 
     educational agency in accordance with subsection (f).
       ``(4) To prepare and carry out the State plan described in 
     subsection (g).
       ``(5) To develop and implement professional development 
     programs for school personnel to heighten their awareness of, 
     and capacity to respond to, specific problems in the 
     education of homeless children and youths.
       ``(e) State and Local Subgrants.--
       ``(1) Minimum disbursements by states.--From the sums made 
     available each year to carry out this subtitle, the State 
     educational agency shall distribute not less than 75 percent 
     in subgrants to local educational agencies for the purposes 
     of carrying out section 723, except

[[Page 25776]]

     that States funded at the minimum level set forth in 
     subsection (c)(1) shall distribute not less than 50 percent 
     in subgrants to local educational agencies for the purposes 
     of carrying out section 723.
       ``(2) Use by state educational agency.--A State educational 
     agency may use funds made available for State use under this 
     subtitle to conduct activities under subsection (f) directly 
     or through grants or contracts.
       ``(3) Prohibition on segregating homeless students.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and section 723(a)(2)(B)(ii), in providing a free public 
     education to a homeless child or youth, no State receiving 
     funds under this subtitle shall segregate such child or youth 
     in a separate school, or in a separate program within a 
     school, based on such child's or youth's status as homeless.
       ``(B) Exception.--Notwithstanding subparagraph (A), 
     paragraphs (1)(J)(i) and (3) of subsection (g), section 
     723(a)(2), and any other provision of this subtitle relating 
     to the placement of homeless children or youths in schools, a 
     State that has a separate school for homeless children or 
     youths that was operated in fiscal year 2000 in a covered 
     county shall be eligible to receive funds under this subtitle 
     for programs carried out in such school if--
       ``(i) the school meets the requirements of subparagraph 
     (C);
       ``(ii) any local educational agency serving a school that 
     the homeless children and youths enrolled in the separate 
     school are eligible to attend meets the requirements of 
     subparagraph (E); and
       ``(iii) the State is otherwise eligible to receive funds 
     under this subtitle.
       ``(C) School requirements.--For the State to be eligible 
     under subparagraph (B) to receive funds under this subtitle, 
     the school described in such subparagraph shall--
       ``(i) provide written notice, at the time any child or 
     youth seeks enrollment in such school, and at least twice 
     annually while the child or youth is enrolled in such school, 
     to the parent or guardian of the child or youth (or, in the 
     case of an unaccompanied youth, the youth) that--

       ``(I) shall be signed by the parent or guardian (or, in the 
     case of an unaccompanied youth, the youth);
       ``(II) sets forth the general rights provided under this 
     subtitle;
       ``(III) specifically states--

       ``(aa) the choice of schools homeless children and youths 
     are eligible to attend, as provided in subsection (g)(3)(A);
       ``(bb) that no homeless child or youth is required to 
     attend a separate school for homeless children or youths;
       ``(cc) that homeless children and youths shall be provided 
     comparable services described in subsection (g)(4), including 
     transportation services, educational services, and meals 
     through school meals programs; and
       ``(dd) that homeless children and youths should not be 
     stigmatized by school personnel; and

       ``(IV) provides contact information for the local liaison 
     for homeless children and youths and the State Coordinator 
     for Education of Homeless Children and Youths;

       ``(ii)(I) provide assistance to the parent or guardian of 
     each homeless child or youth (or, in the case of an 
     unaccompanied youth, the youth) to exercise the right to 
     attend the parent's or guardian's (or youth's) choice of 
     schools, as provided in subsection (g)(3)(A); and
       ``(II) coordinate with the local educational agency with 
     jurisdiction for the school selected by the parent or 
     guardian (or youth), to provide transportation and other 
     necessary services;
       ``(iii) ensure that the parent or guardian (or, in the case 
     of an unaccompanied youth, the youth) shall receive the 
     information required by this subparagraph in a manner and 
     form understandable to such parent or guardian (or youth), 
     including, if necessary and to the extent feasible, in the 
     native language of such parent or guardian (or youth); and
       ``(iv) demonstrate in the school's application for funds 
     under this subtitle that such school--

       ``(I) is complying with clauses (i) and (ii); and
       ``(II) is meeting (as of the date of submission of the 
     application) the same Federal and State standards, 
     regulations, and mandates as other public schools in the 
     State (such as complying with sections 1111 and 1116 of the 
     Elementary and Secondary Education Act of 1965 and providing 
     a full range of education and related services, including 
     services applicable to students with disabilities).

       ``(D) School ineligibility.--A separate school described in 
     subparagraph (B) that fails to meet the standards, 
     regulations, and mandates described in subparagraph 
     (C)(iv)(II) shall not be eligible to receive funds under this 
     subtitle for programs carried out in such school after the 
     first date of such failure.
       ``(E) Local educational agency requirements.--For the State 
     to be eligible to receive the funds described in subparagraph 
     (B), the local educational agency described in subparagraph 
     (B)(ii) shall--
       ``(i) implement a coordinated system for ensuring that 
     homeless children and youths--

       ``(I) are advised of the choice of schools provided in 
     subsection (g)(3)(A);
       ``(II) are immediately enrolled, in accordance with 
     subsection (g)(3)(C), in the school selected under subsection 
     (g)(3)(A); and
       ``(III) are promptly provided necessary services described 
     in subsection (g)(4), including transportation, to allow 
     homeless children and youths to exercise their choices of 
     schools under subsection (g)(3)(A);

       ``(ii) document that written notice has been provided--

       ``(I) in accordance with subparagraph (C)(i) for each child 
     or youth enrolled in a separate school under subparagraph 
     (B); and
       ``(II) in accordance with subsection (g)(6)(A)(v);

       ``(iii) prohibit schools within the agency's jurisdiction 
     from referring homeless children or youths to, or requiring 
     homeless children and youths to enroll in or attend, a 
     separate school described in subparagraph (B);
       ``(iv) identify and remove any barriers that exist in 
     schools within the agency's jurisdiction that may have 
     contributed to the creation or existence of separate schools 
     described in subparagraph (B); and
       ``(v) not use funds received under this subtitle to 
     establish--

       ``(I) new or additional separate schools for homeless 
     children or youths; or
       ``(II) new or additional sites for separate schools for 
     homeless children or youths, other than the sites occupied by 
     the schools described in subparagraph (B) in fiscal year 
     2000.

       ``(F) Report.--
       ``(i) Preparation.--The Secretary shall prepare a report on 
     the separate schools and local educational agencies described 
     in subparagraph (B) that receive funds under this subtitle in 
     accordance with this paragraph. The report shall contain, at 
     a minimum, information on--

       ``(I) compliance with all requirements of this paragraph;
       ``(II) barriers to school access in the school districts 
     served by the local educational agencies; and
       ``(III) the progress the separate schools are making in 
     integrating homeless children and youths into the mainstream 
     school environment, including the average length of student 
     enrollment in such schools.

       ``(ii) Compliance with information requests.--For purposes 
     of enabling the Secretary to prepare the report, the separate 
     schools and local educational agencies shall cooperate with 
     the Secretary and the State Coordinator for Education of 
     Homeless Children and Youths established in the State under 
     subsection (d)(3), and shall comply with any requests for 
     information by the Secretary and State Coordinator for such 
     State.
       ``(iii) Submission.--Not later than 2 years after the date 
     of enactment of the McKinney-Vento Homeless Education 
     Assistance Improvements Act of 2001, the Secretary shall 
     submit the report described in clause (i) to--

       ``(I) the President;

       ``(II) the Committee on Education and the Workforce of the 
     House of Representatives; and
       ``(III) the Committee on Health, Education, Labor, and 
     Pensions of the Senate.

       ``(G) Definition.--For purposes of this paragraph, the term 
     `covered county' means--
       ``(i) San Joaquin County, California;
       ``(ii) Orange County, California;
       ``(iii) San Diego County, California; and
       ``(iv) Maricopa County, Arizona.
       ``(f) Functions of the Office of Coordinator.--The 
     Coordinator for Education of Homeless Children and Youths 
     established in each State shall--
       ``(1) gather reliable, valid, and comprehensive information 
     on the nature and extent of the problems homeless children 
     and youths have in gaining access to public preschool 
     programs and to public elementary schools and secondary 
     schools, the difficulties in identifying the special needs of 
     such children and youths, any progress made by the State 
     educational agency and local educational agencies in the 
     State in addressing such problems and difficulties, and the 
     success of the programs under this subtitle in allowing 
     homeless children and youths to enroll in, attend, and 
     succeed in, school;


       ``(2) develop and carry out the State plan described in 
     subsection (g);
       ``(3) collect and transmit to the Secretary, at such time 
     and in such manner as the Secretary may require, a report 
     containing such information as the Secretary determines is 
     necessary to assess the educational needs of homeless 
     children and youths within the State;
       ``(4) facilitate coordination between the State educational 
     agency, the State social services agency, and other agencies 
     (including agencies providing mental health services) to 
     provide services to homeless children, including preschool-
     aged homeless children, and youths, and to families of such 
     children and youths;
       ``(5) in order to improve the provision of comprehensive 
     education and related services to homeless children and 
     youths and their families, coordinate and collaborate with--
       ``(A) educators, including child development and preschool 
     program personnel;
       ``(B) providers of services to homeless and runaway 
     children and youths and homeless families (including domestic 
     violence agencies, shelter operators, transitional housing 
     facilities, runaway and homeless youth centers, and 
     transitional living programs for homeless youths);
       ``(C) local educational agency liaisons designated under 
     subsection (g)(1)(J)(ii) for homeless children and youths; 
     and
       ``(D) community organizations and groups representing 
     homeless children and youths and their families; and
       ``(6) provide technical assistance to local educational 
     agencies in coordination with

[[Page 25777]]

     local educational agency liaisons designated under subsection 
     (g)(1)(J)(ii), to ensure that local educational agencies 
     comply with the requirements of section 722(e)(3) and 
     paragraphs (3) through (7) of subsection (g).
       ``(g) State Plan.--
       ``(1) In general.--Each State shall submit to the Secretary 
     a plan to provide for the education of homeless children and 
     youths within the State. Such plan shall include the 
     following:
       ``(A) A description of how such children and youths are (or 
     will be) given the opportunity to meet the same challenging 
     State academic achievement standards all students are 
     expected to meet.
       ``(B) A description of the procedures the State educational 
     agency will use to identify such children and youths in the 
     State and to assess their special needs.
       ``(C) A description of procedures for the prompt resolution 
     of disputes regarding the educational placement of homeless 
     children and youths.
       ``(D) A description of programs for school personnel 
     (including principals, attendance officers, teachers, 
     enrollment personnel, and pupil services personnel) to 
     heighten the awareness of such personnel of the specific 
     needs of runaway and homeless youths.
       ``(E) A description of procedures that ensure that homeless 
     children and youths who meet the relevant eligibility 
     criteria are able to participate in Federal, State, or local 
     food programs.
       ``(F) A description of procedures that ensure that--
       ``(i) homeless children have equal access to the same 
     public preschool programs, administered by the State agency, 
     as provided to other children in the State;
       ``(ii) homeless youths and youths separated from the public 
     schools are identified and accorded equal access to 
     appropriate secondary education and support services; and
       ``(iii) homeless children and youths who meet the relevant 
     eligibility criteria are able to participate in Federal, 
     State, or local before- and after-school care programs.
       ``(G) Strategies to address problems identified in the 
     report provided to the Secretary under subsection (f)(3).
       ``(H) Strategies to address other problems with respect to 
     the education of homeless children and youths, including 
     problems resulting from enrollment delays that are caused 
     by--
       ``(i) immunization and medical records requirements;
       ``(ii) residency requirements;
       ``(iii) lack of birth certificates, school records, or 
     other documentation;
       ``(iv) guardianship issues; or
       ``(v) uniform or dress code requirements.
       ``(I) A demonstration that the State educational agency and 
     local educational agencies in the State have developed, and 
     shall review and revise, policies to remove barriers to the 
     enrollment and retention of homeless children and youths in 
     schools in the State.
       ``(J) Assurances that--
       ``(i) the State educational agency and local educational 
     agencies in the State will adopt policies and practices to 
     ensure that homeless children and youths are not stigmatized 
     or segregated on the basis of their status as homeless;
       ``(ii) local educational agencies will designate an 
     appropriate staff person, who may also be a coordinator for 
     other Federal programs, as a local educational agency liaison 
     for homeless children and youths, to carry out the duties 
     described in paragraph (6)(A); and
       ``(iii) the State and its local educational agencies will 
     adopt policies and practices to ensure that transportation is 
     provided, at the request of the parent or guardian (or in the 
     case of an unaccompanied youth, the liaison), to and from the 
     school of origin, as determined in paragraph (3)(A), in 
     accordance with the following, as applicable:

       ``(I) If the homeless child or youth continues to live in 
     the area served by the local educational agency in which the 
     school of origin is located, the child's or youth's 
     transportation to and from the school of origin shall be 
     provided or arranged by the local educational agency in which 
     the school of origin is located.
       ``(II) If the homeless child's or youth's living 
     arrangements in the area served by the local educational 
     agency of origin terminate and the child or youth, though 
     continuing his or her education in the school of origin, 
     begins living in an area served by another local educational 
     agency, the local educational agency of origin and the local 
     educational agency in which the homeless child or youth is 
     living shall agree upon a method to apportion the 
     responsibility and costs for providing the child with 
     transportation to and from the school of origin. If the local 
     educational agencies are unable to agree upon such method, 
     the responsibility and costs for transportation shall be 
     shared equally.

       ``(2) Compliance.--
       ``(A) In general.--Each plan adopted under this subsection 
     shall also describe how the State will ensure that local 
     educational agencies in the State will comply with the 
     requirements of paragraphs (3) through (7).
       ``(B) Coordination.--Such plan shall indicate what 
     technical assistance the State will furnish to local 
     educational agencies and how compliance efforts will be 
     coordinated with the local educational agency liaisons 
     designated under paragraph (1)(J)(ii).
       ``(3) Local educational agency requirements.--
       ``(A) In general.--The local educational agency serving 
     each child or youth to be assisted under this subtitle shall, 
     according to the child's or youth's best interest--
       ``(i) continue the child's or youth's education in the 
     school of origin for the duration of homelessness--

       ``(I) in any case in which a family becomes homeless 
     between academic years or during an academic year; or
       ``(II) for the remainder of the academic year, if the child 
     or youth becomes permanently housed during an academic year; 
     or

       ``(ii) enroll the child or youth in any public school that 
     nonhomeless students who live in the attendance area in which 
     the child or youth is actually living are eligible to attend.
       ``(B) Best interest.--In determining the best interest of 
     the child or youth under subparagraph (A), the local 
     educational agency shall--
       ``(i) to the extent feasible, keep a homeless child or 
     youth in the school of origin, except when doing so is 
     contrary to the wishes of the child's or youth's parent or 
     guardian;
       ``(ii) provide a written explanation, including a statement 
     regarding the right to appeal under subparagraph (E), to the 
     homeless child's or youth's parent or guardian, if the local 
     educational agency sends such child or youth to a school 
     other than the school of origin or a school requested by the 
     parent or guardian; and
       ``(iii) in the case of an unaccompanied youth, ensure that 
     the homeless liaison designated under paragraph (1)(J)(ii) 
     assists in placement or enrollment decisions under this 
     subparagraph, considers the views of such unaccompanied 
     youth, and provides notice to such youth of the right to 
     appeal under subparagraph (E).
       ``(C) Enrollment.--(i) The school selected in accordance 
     with this paragraph shall immediately enroll the homeless 
     child or youth, even if the child or youth is unable to 
     produce records normally required for enrollment, such as 
     previous academic records, medical records, proof of 
     residency, or other documentation.
       ``(ii) The enrolling school shall immediately contact the 
     school last attended by the child or youth to obtain relevant 
     academic and other records.
       ``(iii) If the child or youth needs to obtain 
     immunizations, or immunization or medical records, the 
     enrolling school shall immediately refer the parent or 
     guardian of the child or youth to the local educational 
     agency liaison designated under paragraph (1)(J)(ii), who 
     shall assist in obtaining necessary immunizations, or 
     immunization or medical records, in accordance with 
     subparagraph (D).
       ``(D) Records.--Any record ordinarily kept by the school, 
     including immunization or medical records, academic records, 
     birth certificates, guardianship records, and evaluations for 
     special services or programs, regarding each homeless child 
     or youth shall be maintained--
       ``(i) so that the records are available, in a timely 
     fashion, when a child or youth enters a new school or school 
     district; and
       ``(ii) in a manner consistent with section 444 of the 
     General Education Provisions Act (20 U.S.C. 1232g).
       ``(E) Enrollment disputes.--If a dispute arises over school 
     selection or enrollment in a school--
       ``(i) the child or youth shall be immediately admitted to 
     the school in which enrollment is sought, pending resolution 
     of the dispute;
       ``(ii) the parent or guardian of the child or youth shall 
     be provided with a written explanation of the school's 
     decision regarding school selection or enrollment, including 
     the rights of the parent, guardian, or youth to appeal the 
     decision;
       ``(iii) the child, youth, parent, or guardian shall be 
     referred to the local educational agency liaison designated 
     under paragraph (1)(J)(ii), who shall carry out the dispute 
     resolution process as described in paragraph (1)(C) as 
     expeditiously as possible after receiving notice of the 
     dispute; and
       ``(iv) in the case of an unaccompanied youth, the homeless 
     liaison shall ensure that the youth is immediately enrolled 
     in school pending resolution of the dispute.
       ``(F) Placement choice.--The choice regarding placement 
     shall be made regardless of whether the child or youth lives 
     with the homeless parents or has been temporarily placed 
     elsewhere.
       ``(G) School of origin defined.--In this paragraph, the 
     term `school of origin' means the school that the child or 
     youth attended when permanently housed or the school in which 
     the child or youth was last enrolled.
       ``(H) Contact information.--Nothing in this subtitle shall 
     prohibit a local educational agency from requiring a parent 
     or guardian of a homeless child to submit contact 
     information.
       ``(4) Comparable services.--Each homeless child or youth to 
     be assisted under this subtitle shall be provided services 
     comparable to services offered to other students in the 
     school selected under paragraph (3), including the following:
       ``(A) Transportation services.
       ``(B) Educational services for which the child or youth 
     meets the eligibility criteria, such as services provided 
     under title I of the Elementary and Secondary Education Act 
     of 1965 or similar State or local programs, educational 
     programs for children with disabilities, and educational 
     programs for students with limited English proficiency.
       ``(C) Programs in vocational and technical education.

[[Page 25778]]

       ``(D) Programs for gifted and talented students.
       ``(E) School nutrition programs.
       ``(5) Coordination.--
       ``(A) In general.--Each local educational agency serving 
     homeless children and youths that receives assistance under 
     this subtitle shall coordinate--
       ``(i) the provision of services under this subtitle with 
     local social services agencies and other agencies or programs 
     providing services to homeless children and youths and their 
     families, including services and programs funded under the 
     Runaway and Homeless Youth Act (42 U.S.C. 5701 et seq.); and
       ``(ii) with other local educational agencies on 
     interdistrict issues, such as transportation or transfer of 
     school records.
       ``(B) Housing assistance.--If applicable, each State 
     educational agency and local educational agency that receives 
     assistance under this subtitle shall coordinate with State 
     and local housing agencies responsible for developing the 
     comprehensive housing affordability strategy described in 
     section 105 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705) to minimize educational 
     disruption for children and youths who become homeless.
       ``(C) Coordination purpose.--The coordination required 
     under subparagraphs (A) and (B) shall be designed to--
       ``(i) ensure that homeless children and youths have access 
     and reasonable proximity to available education and related 
     support services; and
       ``(ii) raise the awareness of school personnel and service 
     providers of the effects of short-term stays in a shelter and 
     other challenges associated with homelessness.
       ``(6) Local educational agency liaison.--
       ``(A) Duties.--Each local educational agency liaison for 
     homeless children and youths, designated under paragraph 
     (1)(J)(ii), shall ensure that--
       ``(i) homeless children and youths are identified by school 
     personnel and through coordination activities with other 
     entities and agencies;
       ``(ii) homeless children and youths enroll in, and have a 
     full and equal opportunity to succeed in, schools of that 
     local educational agency;
       ``(iii) homeless families, children, and youths receive 
     educational services for which such families, children, and 
     youths are eligible, including Head Start and Even Start 
     programs and preschool programs administered by the local 
     educational agency, and referrals to health care services, 
     dental services, mental health services, and other 
     appropriate services;
       ``(iv) the parents or guardians of homeless children and 
     youths are informed of the educational and related 
     opportunities available to their children and are provided 
     with meaningful opportunities to participate in the education 
     of their children;
       ``(v) public notice of the educational rights of homeless 
     children and youths is disseminated where such children and 
     youths receive services under this Act, such as schools, 
     family shelters, and soup kitchens;
       ``(vi) enrollment disputes are mediated in accordance with 
     paragraph (3)(E); and
       ``(vii) the parent or guardian of a homeless child or 
     youth, and any unaccompanied youth, is fully informed of all 
     transportation services, including transportation to the 
     school of origin, as described in paragraph (1)(J)(iii), and 
     is assisted in accessing transportation to the school that is 
     selected under paragraph (3)(A).
       ``(B) Notice.--State coordinators established under 
     subsection (d)(3) and local educational agencies shall inform 
     school personnel, service providers, and advocates working 
     with homeless families of the duties of the local educational 
     agency liaisons.
       ``(C) Local and state coordination.--Local educational 
     agency liaisons for homeless children and youths shall, as a 
     part of their duties, coordinate and collaborate with State 
     coordinators and community and school personnel responsible 
     for the provision of education and related services to 
     homeless children and youths.
       ``(7) Review and revisions.--
       ``(A) In general.--Each State educational agency and local 
     educational agency that receives assistance under this 
     subtitle shall review and revise any policies that may act as 
     barriers to the enrollment of homeless children and youths in 
     schools that are selected under paragraph (3).
       ``(B) Consideration.--In reviewing and revising such 
     policies, consideration shall be given to issues concerning 
     transportation, immunization, residency, birth certificates, 
     school records and other documentation, and guardianship.
       ``(C) Special attention.--Special attention shall be given 
     to ensuring the enrollment and attendance of homeless 
     children and youths who are not currently attending school.

     ``SEC. 723. LOCAL EDUCATIONAL AGENCY SUBGRANTS FOR THE 
                   EDUCATION OF HOMELESS CHILDREN AND YOUTHS.

       ``(a) General Authority.--
       ``(1) In general.--The State educational agency shall, in 
     accordance with section 722(e), and from amounts made 
     available to such agency under section 726, make subgrants to 
     local educational agencies for the purpose of facilitating 
     the enrollment, attendance, and success in school of homeless 
     children and youths.
       ``(2) Services.--
       ``(A) In general.--Services under paragraph (1)--
       ``(i) may be provided through programs on school grounds or 
     at other facilities;
       ``(ii) shall, to the maximum extent practicable, be 
     provided through existing programs and mechanisms that 
     integrate homeless children and youths with nonhomeless 
     children and youths; and
       ``(iii) shall be designed to expand or improve services 
     provided as part of a school's regular academic program, but 
     not to replace such services provided under such program.
       ``(B) Services on school grounds.--If services under 
     paragraph (1) are provided on school grounds, schools--
       ``(i) may use funds under this subtitle to provide the same 
     services to other children and youths who are determined by 
     the local educational agency to be at risk of failing in, or 
     dropping out of, school, subject to the requirements of 
     clause (ii); and
       ``(ii) except as otherwise provided in section 
     722(e)(3)(B), shall not provide services in settings within a 
     school that segregate homeless children and youths from other 
     children and youths, except as necessary for short periods of 
     time--

       ``(I) for health and safety emergencies; or
       ``(II) to provide temporary, special, and supplementary 
     services to meet the unique needs of homeless children and 
     youths.

       ``(3) Requirement.--Services provided under this section 
     shall not replace the regular academic program and shall be 
     designed to expand upon or improve services provided as part 
     of the school's regular academic program.
       ``(b) Application.--A local educational agency that desires 
     to receive a subgrant under this section shall submit an 
     application to the State educational agency at such time, in 
     such manner, and containing or accompanied by such 
     information as the State educational agency may reasonably 
     require. Such application shall include the following:
       ``(1) An assessment of the educational and related needs of 
     homeless children and youths in the area served by such 
     agency (which may be undertaken as part of needs assessments 
     for other disadvantaged groups).
       ``(2) A description of the services and programs for which 
     assistance is sought to address the needs identified in 
     paragraph (1).
       ``(3) An assurance that the local educational agency's 
     combined fiscal effort per student, or the aggregate 
     expenditures of that agency and the State with respect to the 
     provision of free public education by such agency for the 
     fiscal year preceding the fiscal year for which the 
     determination is made, was not less than 90 percent of such 
     combined fiscal effort or aggregate expenditures for the 
     second fiscal year preceding the fiscal year for which the 
     determination is made.
       ``(4) An assurance that the applicant complies with, or 
     will use requested funds to comply with, paragraphs (3) 
     through (7) of section 722(g).
       ``(5) A description of policies and procedures, consistent 
     with section 722(e)(3), that the agency will implement to 
     ensure that activities carried out by the agency will not 
     isolate or stigmatize homeless children and youths.
       ``(c) Awards.--
       ``(1) In general.--The State educational agency shall, in 
     accordance with the requirements of this subtitle and from 
     amounts made available to it under section 726, make 
     competitive subgrants to local educational agencies that 
     submit applications under subsection (b). Such subgrants 
     shall be awarded on the basis of the need of such agencies 
     for assistance under this subtitle and the quality of the 
     applications submitted.
       ``(2) Need.--In determining need under paragraph (1), the 
     State educational agency may consider the number of homeless 
     children and youths enrolled in preschool, elementary, and 
     secondary schools within the area served by the local 
     educational agency, and shall consider the needs of such 
     children and youths and the ability of the local educational 
     agency to meet such needs. The State educational agency may 
     also consider the following:
       ``(A) The extent to which the proposed use of funds will 
     facilitate the enrollment, retention, and educational success 
     of homeless children and youths.
       ``(B) The extent to which the application--
       ``(i) reflects coordination with other local and State 
     agencies that serve homeless children and youths; and
       ``(ii) describes how the applicant will meet the 
     requirements of section 722(g)(3).
       ``(C) The extent to which the applicant exhibits in the 
     application and in current practice a commitment to education 
     for all homeless children and youths.
       ``(D) Such other criteria as the State agency determines 
     appropriate.
       ``(3) Quality.--In determining the quality of applications 
     under paragraph (1), the State educational agency shall 
     consider the following:
       ``(A) The applicant's needs assessment under subsection 
     (b)(1) and the likelihood that the program presented in the 
     application will meet such needs.
       ``(B) The types, intensity, and coordination of the 
     services to be provided under the program.
       ``(C) The involvement of parents or guardians of homeless 
     children or youths in the education of their children.
       ``(D) The extent to which homeless children and youths will 
     be integrated within the regular education program.
       ``(E) The quality of the applicant's evaluation plan for 
     the program.
       ``(F) The extent to which services provided under this 
     subtitle will be coordinated with other services available to 
     homeless children and youths and their families.
       ``(G) Such other measures as the State educational agency 
     considers indicative of a high-

[[Page 25779]]

     quality program, such as the extent to which the local 
     educational agency will provide case management or related 
     services to unaccompanied youths.
       ``(4) Duration of grants.--Grants awarded under this 
     section shall be for terms not to exceed 3 years.
       ``(d) Authorized Activities.--A local educational agency 
     may use funds awarded under this section for activities that 
     carry out the purpose of this subtitle, including the 
     following:
       ``(1) The provision of tutoring, supplemental instruction, 
     and enriched educational services that are linked to the 
     achievement of the same challenging State academic content 
     standards and challenging State student academic achievement 
     standards the State establishes for other children and 
     youths.
       ``(2) The provision of expedited evaluations of the 
     strengths and needs of homeless children and youths, 
     including needs and eligibility for programs and services 
     (such as educational programs for gifted and talented 
     students, children with disabilities, and students with 
     limited English proficiency, services provided under title I 
     of the Elementary and Secondary Education Act of 1965 or 
     similar State or local programs, programs in vocational and 
     technical education, and school nutrition programs).
       ``(3) Professional development and other activities for 
     educators and pupil services personnel that are designed to 
     heighten the understanding and sensitivity of such personnel 
     to the needs of homeless children and youths, the rights of 
     such children and youths under this subtitle, and the 
     specific educational needs of runaway and homeless youths.
       ``(4) The provision of referral services to homeless 
     children and youths for medical, dental, mental, and other 
     health services.
       ``(5) The provision of assistance to defray the excess cost 
     of transportation for students under section 722(g)(4)(A), 
     not otherwise provided through Federal, State, or local 
     funding, where necessary to enable students to attend the 
     school selected under section 722(g)(3).
       ``(6) The provision of developmentally appropriate early 
     childhood education programs, not otherwise provided through 
     Federal, State, or local funding, for preschool-aged homeless 
     children.
       ``(7) The provision of services and assistance to attract, 
     engage, and retain homeless children and youths, and 
     unaccompanied youths, in public school programs and services 
     provided to nonhomeless children and youths.
       ``(8) The provision for homeless children and youths of 
     before- and after-school, mentoring, and summer programs in 
     which a teacher or other qualified individual provides 
     tutoring, homework assistance, and supervision of educational 
     activities.
       ``(9) If necessary, the payment of fees and other costs 
     associated with tracking, obtaining, and transferring records 
     necessary to enroll homeless children and youths in school, 
     including birth certificates, immunization or medical 
     records, academic records, guardianship records, and 
     evaluations for special programs or services.
       ``(10) The provision of education and training to the 
     parents of homeless children and youths about the rights of, 
     and resources available to, such children and youths.
       ``(11) The development of coordination between schools and 
     agencies providing services to homeless children and youths, 
     as described in section 722(g)(5).
       ``(12) The provision of pupil services (including violence 
     prevention counseling) and referrals for such services.
       ``(13) Activities to address the particular needs of 
     homeless children and youths that may arise from domestic 
     violence.
       ``(14) The adaptation of space and purchase of supplies for 
     any nonschool facilities made available under subsection 
     (a)(2) to provide services under this subsection.
       ``(15) The provision of school supplies, including those 
     supplies to be distributed at shelters or temporary housing 
     facilities, or other appropriate locations.
       ``(16) The provision of other extraordinary or emergency 
     assistance needed to enable homeless children and youths to 
     attend school.

     ``SEC. 724. SECRETARIAL RESPONSIBILITIES.

       ``(a) Review of State Plans.--In reviewing the State plan 
     submitted by a State educational agency under section 722(g), 
     the Secretary shall use a peer review process and shall 
     evaluate whether State laws, policies, and practices 
     described in such plan adequately address the problems of 
     homeless children and youths relating to access to education 
     and placement as described in such plan.
       ``(b) Technical Assistance.--The Secretary shall provide 
     support and technical assistance to a State educational 
     agency to assist such agency in carrying out its 
     responsibilities under this subtitle, if requested by the 
     State educational agency.
       ``(c) Notice.--The Secretary shall, before the next school 
     year that begins after the date of enactment of the McKinney-
     Vento Homeless Education Assistance Improvements Act of 2001, 
     create and disseminate nationwide a public notice of the 
     educational rights of homeless children and youths and 
     disseminate such notice to other Federal agencies, programs, 
     and grantees, including Head Start grantees, Health Care for 
     the Homeless grantees, Emergency Food and Shelter grantees, 
     and homeless assistance programs administered by the 
     Department of Housing and Urban Development.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     conduct evaluation and dissemination activities of programs 
     designed to meet the educational needs of homeless elementary 
     and secondary school students, and may use funds appropriated 
     under section 726 to conduct such activities.
       ``(e) Submission and Distribution.--The Secretary shall 
     require applications for grants under this subtitle to be 
     submitted to the Secretary not later than the expiration of 
     the 60-day period beginning on the date that funds are 
     available for purposes of making such grants and shall make 
     such grants not later than the expiration of the 120-day 
     period beginning on such date.
       ``(f) Determination by Secretary.--The Secretary, based on 
     the information received from the States and information 
     gathered by the Secretary under subsection (h), shall 
     determine the extent to which State educational agencies are 
     ensuring that each homeless child and homeless youth has 
     access to a free appropriate public education, as described 
     in section 721(1).
       ``(g) Guidelines.--The Secretary shall develop, issue, and 
     publish in the Federal Register, not later than 60 days after 
     the date of enactment of the McKinney-Vento Homeless 
     Education Assistance Improvements Act of 2001, school 
     enrollment guidelines for States with respect to homeless 
     children and youths. The guidelines shall describe--
       ``(1) successful ways in which a State may assist local 
     educational agencies to immediately enroll homeless children 
     and youths in school; and
       ``(2) how a State can review the State's requirements 
     regarding immunization and medical or school records and make 
     such revisions to the requirements as are appropriate and 
     necessary in order to enroll homeless children and youths in 
     school immediately.
       ``(h) Information.--
       ``(1) In general.--From funds appropriated under section 
     726, the Secretary shall, directly or through grants, 
     contracts, or cooperative agreements, periodically collect 
     and disseminate data and information regarding--
       ``(A) the number and location of homeless children and 
     youths;
       ``(B) the education and related services such children and 
     youths receive;
       ``(C) the extent to which the needs of homeless children 
     and youths are being met; and
       ``(D) such other data and information as the Secretary 
     determines to be necessary and relevant to carry out this 
     subtitle.
       ``(2) Coordination.--The Secretary shall coordinate such 
     collection and dissemination with other agencies and entities 
     that receive assistance and administer programs under this 
     subtitle.
       ``(i) Report.--Not later than 4 years after the date of 
     enactment of the McKinney-Vento Homeless Education Assistance 
     Improvements Act of 2001, the Secretary shall prepare and 
     submit to the President and the Committee on Education and 
     the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate a report on the status of education of homeless 
     children and youths, which shall include information on--
       ``(1) the education of homeless children and youths; and
       ``(2) the actions of the Secretary and the effectiveness of 
     the programs supported under this subtitle.

     ``SEC. 725. DEFINITIONS.

       ``For purposes of this subtitle:
       ``(1) The terms `enroll' and `enrollment' include attending 
     classes and participating fully in school activities.
       ``(2) The term `homeless children and youths'--
       ``(A) means individuals who lack a fixed, regular, and 
     adequate nighttime residence (within the meaning of section 
     103(a)(1)); and
       ``(B) includes--
       ``(i) children and youths who are sharing the housing of 
     other persons due to loss of housing, economic hardship, or a 
     similar reason; are living in motels, hotels, trailer parks, 
     or camping grounds due to the lack of alternative adequate 
     accommodations; are living in emergency or transitional 
     shelters; are abandoned in hospitals; or are awaiting foster 
     care placement;
       ``(ii) children and youths who have a primary nighttime 
     residence that is a public or private place not designed for 
     or ordinarily used as a regular sleeping accommodation for 
     human beings (within the meaning of section 103(a)(2)(C));
       ``(iii) children and youths who are living in cars, parks, 
     public spaces, abandoned buildings, substandard housing, bus 
     or train stations, or similar settings; and
       ``(iv) migratory children (as such term is defined in 
     section 1309 of the Elementary and Secondary Education Act of 
     1965) who qualify as homeless for the purposes of this 
     subtitle because the children are living in circumstances 
     described in clauses (i) through (iii).
       ``(3) The terms `local educational agency' and `State 
     educational agency' have the meanings given such terms in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965.
       ``(4) The term `Secretary' means the Secretary of 
     Education.
       ``(5) The term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(6) The term `unaccompanied youth' includes a youth not 
     in the physical custody of a parent or guardian.

     ``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subtitle, there are 
     authorized to be appropriated $70,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of fiscal 
     years 2003 through 2007.''.

[[Page 25780]]



     SEC. 1033. CONFORMING AMENDMENT.

       The table of contents of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11301 note) is amended so that the 
     items relating to subtitle B of title VII read as follows:

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

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

     SEC. 1034. TECHNICAL AMENDMENT.

       (a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 
     11301) is amended by striking ``Section 1 of'' and inserting 
     ``Section 101 of''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be deemed to be effective on the date of enactment of 
     Public Law 106-400.

             PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

     SEC. 1041. SHORT TITLE.

       This part may be cited as the ``Native American Education 
     Improvement Act of 2001''.

     SEC. 1042. AMENDMENTS TO THE EDUCATION AMENDMENTS OF 1978.

       Part B of title XI of the Education Amendments of 1978 (25 
     U.S.C. 2001 et seq.) is amended to read as follows:

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

     ``SEC. 1120. DECLARATION OF POLICY.

       ``Congress declares that the Federal Government has the 
     sole responsibility for the operation and financial support 
     of the Bureau of Indian Affairs funded school system that it 
     has established on or near Indian reservations and Indian 
     trust lands throughout the Nation for Indian children. It is 
     the policy of the United States to fulfill the Federal 
     Government's unique and continuing trust relationship with 
     and responsibility to the Indian people for the education of 
     Indian children and for the operation and financial support 
     of the Bureau of Indian Affairs-funded school system to work 
     in full cooperation with tribes toward the goal of ensuring 
     that the programs of the Bureau of Indian Affairs-funded 
     school system are of the highest quality and provide for the 
     basic elementary and secondary educational needs of Indian 
     children, including meeting the unique educational and 
     cultural needs of those children.

     ``SEC. 1121. ACCREDITATION FOR THE BASIC EDUCATION OF INDIAN 
                   CHILDREN IN BUREAU OF INDIAN AFFAIRS SCHOOLS.

       ``(a) Purpose; Declarations of Purpose.--
       ``(1) Purpose.--The purpose of the accreditation required 
     under this section shall be to ensure that Indian students 
     being served by a school funded by the Bureau of Indian 
     Affairs are provided with educational opportunities that 
     equal or exceed those for all other students in the United 
     States.
       ``(2) Declarations of purpose.--Local school boards for 
     schools operated by the Bureau of Indian Affairs, in 
     cooperation and consultation with the appropriate tribal 
     governing bodies and their communities, are encouraged to 
     adopt declarations of purpose for education for their 
     communities, taking into account the implications of such 
     declarations on education in their communities and for their 
     schools. In adopting such declarations of purpose, the school 
     boards shall consider the effect the declarations may have on 
     the motivation of students and faculties.
       ``(b) Accreditation.--
       ``(1) Deadline.--
       ``(A) In general.--Not later than 24 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, each Bureau-funded school shall, to the extent that 
     necessary funds are provided, be a candidate for 
     accreditation or be accredited--
       ``(i) by a tribal accrediting body, if the accreditation 
     standards of the tribal accrediting body have been accepted 
     by formal action of the tribal governing body and such 
     accreditation is acknowledged by a generally recognized State 
     certification or regional accrediting agency;
       ``(ii) by a regional accreditation agency;
       ``(iii) by State accreditation standards for the State in 
     which the Bureau-funded school is located; or
       ``(iv) in the case of a Bureau-funded school that is 
     located on a reservation that is located in more than 1 
     State, in accordance with the State accreditation standards 
     of 1 State as selected by the tribal government.
       ``(B) Feasibility study.--Not later than 12 months after 
     the date of enactment of the Native American Education 
     Improvement Act of 2001, the Secretary of the Interior and 
     the Secretary of Education shall, in consultation with Indian 
     tribes, Indian education organizations, and accrediting 
     agencies, develop and submit to the appropriate committees of 
     Congress a report on the desirability and feasibility of 
     establishing a tribal accreditation agency that would--
       ``(i) review and acknowledge the accreditation standards 
     for Bureau-funded schools; and
       ``(ii) establish accreditation procedures to facilitate the 
     application, review of the standards and review processes, 
     and recognition of qualified and credible tribal departments 
     of education as accrediting bodies serving tribal schools.
       ``(2) Determination of accreditation to be applied.--The 
     accreditation type applied for each school shall be 
     determined by the tribal governing body, or the school board, 
     if authorized by the tribal governing body.
       ``(3) Assistance to school boards.--
       ``(A) In general.--The Secretary, through contracts and 
     grants, shall provide technical and financial assistance to 
     Bureau-funded schools, to the extent that necessary amounts 
     are made available, to enable such schools to obtain the 
     accreditation required under this subsection, if the school 
     boards request that such assistance, in part or in whole, be 
     provided.
       ``(B) Entities through which assistance may be provided.--
     The Secretary may provide such assistance directly or through 
     the Department of Education, an institution of higher 
     education, a private not-for-profit organization or for-
     profit organization, an educational service agency, or 
     another entity with demonstrated experience in assisting 
     schools in obtaining accreditation.
       ``(4) Application of current standards during 
     accreditation.--A Bureau-funded school that is seeking 
     accreditation shall remain subject to the standards issued 
     under section 1121 of the Education Amendments of 1978 and in 
     effect on the day before the date of enactment of the Native 
     American Education Improvement Act of 2001 until such time as 
     the school is accredited, except that if any of such 
     standards are in conflict with the standards of the 
     accrediting agency, the standards of such agency shall apply 
     in such case.
       ``(5) Annual report on unaccredited schools.--Not later 
     than 90 days after the end of each school year, the Secretary 
     shall prepare and submit to the Committee on Appropriations, 
     the Committee on Education and the Workforce, and the 
     Committee on Resources of the House of Representatives and 
     the Committee on Appropriations, the Committee on Indian 
     Affairs, and the Committee on Health, Education, Labor, and 
     Pensions of the Senate, a report concerning unaccredited 
     Bureau-funded schools that--
       ``(A) identifies those Bureau-funded schools that fail to 
     be accredited or to be candidates for accreditation within 
     the period provided for in paragraph (1);
       ``(B) with respect to each Bureau-funded school identified 
     under subparagraph (A), identifies the reasons that each such 
     school is not accredited or a candidate for accreditation, as 
     determined by the appropriate accreditation agency, and a 
     description of any possible way in which to remedy such 
     nonaccreditation; and
       ``(C) with respect to each Bureau-funded school for which 
     the reported reasons for the lack of accreditation under 
     subparagraph (B) are a result of the school's inadequate 
     basic resources, contains information and funding requests 
     for the full funding needed to provide such schools with 
     accreditation, such funds if provided shall be applied to 
     such unaccredited school under this paragraph.
       ``(6) Opportunity to review and present evidence.--
       ``(A) In general.--Prior to including a Bureau-funded 
     school in an annual report required under paragraph (5), the 
     Secretary shall--
       ``(i) ensure that the school has exhausted all 
     administrative remedies provided by the accreditation agency; 
     and
       ``(ii) provide the school with an opportunity to review the 
     data on which such inclusion is based.
       ``(B) Provision of additional information.--If the school 
     board of a school that the Secretary has proposed for 
     inclusion in an annual report under paragraph (5) believes 
     that such inclusion is in error, the school board may provide 
     to the Secretary such information as the board believes is in 
     conflict with the information and conclusions of the 
     Secretary with respect to the determination to include the 
     school in such annual report. The Secretary shall consider 
     such information provided by the school board before making a 
     final determination concerning the inclusion of the school in 
     any such report.
       ``(C) Publication of accreditation status.--Not later than 
     30 days after making an initial determination to include a 
     school in an annual report under paragraph (5), the Secretary 
     shall make public the final determination on the 
     accreditation status of the school.
       ``(7) School plan.--
       ``(A) In general.--Not later than 120 days after the date 
     on which a school is included in an annual report under 
     paragraph (5), the school shall develop a school plan, in 
     consultation with interested parties including parents, 
     school staff, the school board, and other outside experts (if 
     appropriate), that shall be submitted to the Secretary for 
     approval. The school plan shall cover a 3-year period and 
     shall--
       ``(i) incorporate strategies that address the specific 
     issues that caused the school to fail to be accredited or 
     fail to be a candidate for accreditation;
       ``(ii) incorporate policies and practices concerning the 
     school that have the greatest likelihood of ensuring that the 
     school will obtain accreditation during the 3-year period 
     beginning on the date on which the plan is implemented;
       ``(iii) contain an assurance that the school will reserve 
     the necessary funds, from the funds described in paragraph 
     (3), for each fiscal year for the purpose of obtaining 
     accreditation;
       ``(iv) specify how the funds described in clause (iii) will 
     be used to obtain accreditation;
       ``(v) establish specific annual, objective goals for 
     measuring continuous and significant progress made by the 
     school in a manner that will ensure the accreditation of the 
     school within the 3-year period described in clause (ii);

[[Page 25781]]

       ``(vi) identify how the school will provide written 
     notification about the lack of accreditation to the parents 
     of each student enrolled in such school, in a format and, to 
     the extent practicable, in a language the parents can 
     understand; and
       ``(vii) specify the responsibilities of the school board 
     and any assistance to be provided by the Secretary under 
     paragraph (3).
       ``(B) Implementation.--A school shall implement the school 
     plan under subparagraph (A) expeditiously, but in no event 
     later than the beginning of the school year following the 
     school year in which the school was included in the annual 
     report under paragraph (5) so long as the necessary resources 
     have been provided to the school.
       ``(C) Review of plan.--Not later than 45 days after 
     receiving a school plan, the Secretary shall--
       ``(i) establish a peer-review process to assist with the 
     review of the plan; and
       ``(ii) promptly review the school plan, work with the 
     school as necessary, and approve the school plan if the plan 
     meets the requirements of this paragraph.
       ``(8) Corrective action.--
       ``(A) Definition.--In this subsection, the term `corrective 
     action' means any action that--
       ``(i) substantially and directly responds to--

       ``(I) the failure of a school to achieve accreditation; and
       ``(II) any underlying staffing, curriculum, or other 
     programmatic problem in the school that contributed to the 
     lack of accreditation; and

       ``(ii) is designed to increase substantially the likelihood 
     that the school will be accredited.
       ``(B) Waiver.--The Secretary shall grant a waiver which 
     shall exempt a school from any or all of the requirements of 
     this paragraph and paragraph (7) (though such school shall be 
     required to comply with the standards contained in part 36 of 
     title 25, Code of Federal Register, as in effect on the date 
     of enactment of the Native American Education Improvement Act 
     of 2001) if the school--
       ``(i) is identified in the report described in paragraph 
     (5)(C); and
       ``(ii) fails to be accredited for reasons that are beyond 
     the control of the school board, as determined by the 
     Secretary, including, but not limited to--

       ``(I) a significant decline in financial resources;
       ``(II) the poor condition of facilities, vehicles, or other 
     property; and
       ``(III) a natural disaster.

       ``(C) Duties of secretary.--After providing assistance to a 
     school under paragraph (3), the Secretary shall--
       ``(i) annually review the progress of the school under the 
     applicable school plan to determine whether the school is 
     meeting, or making adequate progress towards, achieving the 
     goals described in paragraph (7)(A)(v) with respect to 
     reaccreditation or becoming a candidate for accreditation;
       ``(ii) except as provided in subparagraph (B), continue to 
     provide assistance while implementing the school's plan, and, 
     if determined appropriate by the Secretary, take corrective 
     action with respect to the school if it fails to be 
     accredited at the end of the third full year immediately 
     following the date that the school's plan was first in effect 
     under paragraph (7);
       ``(iii) provide all students enrolled in a school that is 
     eligible for a corrective action determination by the 
     Secretary under clause (ii) with the option to transfer to 
     another public or Bureau-funded school, including a public 
     charter school, that is accredited;
       ``(iv) promptly notify the parents of children enrolled in 
     a school that is eligible for a corrective action 
     determination by the Secretary under clause (ii) of the 
     option to transfer their child to another public or Bureau-
     funded school; and
       ``(v) provide, or pay for the provision of, transportation 
     for each student described in clause (iii) to the school 
     described in clause (iii) to which the student elects to be 
     transferred to the extent funds are available, as determined 
     by the tribal governing body.
       ``(D) Failure of school plan of bureau-operated school.--
     With respect to a Bureau-operated school that fails to be 
     accredited at the end of the third full year immediately 
     following the date that the school's plan was first in effect 
     under paragraph (7), the Secretary may take 1 or more of the 
     following corrective actions:
       ``(i) Institute and fully implement actions suggested by 
     the accrediting agency.
       ``(ii) Consult with the tribe involved to determine the 
     causes for the lack of accreditation including potential 
     staffing and administrative changes that are or may be 
     necessary.
       ``(iii) Set aside a certain amount of funds that may only 
     be used by the school to obtain accreditation.
       ``(iv)(I) Provide the tribe with a 60-day period during 
     which to determine whether the tribe desires to operate the 
     school as a contract or grant school before meeting the 
     accreditation requirements in section 5207(c) of the Tribally 
     Controlled Schools Act of 1988 at the beginning of the next 
     school year following the determination to take corrective 
     action. If the tribe agrees to operate the school as a 
     contract or grant school, the tribe shall prepare a plan, 
     pursuant to paragraph (7), for approval by the Secretary in 
     accordance with paragraph (7), to achieve accreditation.
       ``(II) If the tribe declines to assume control of the 
     school, the Secretary, in consultation with the tribe, may 
     contract with an outside entity, consistent with applicable 
     law, or appoint a receiver or trustee to operate and 
     administer the affairs of the school until the school is 
     accredited. The outside entity, receiver, or trustee shall 
     prepare a plan, pursuant to paragraph (7), for approval by 
     the Secretary in accordance with paragraph (7).
       ``(III) Upon accreditation of the school, the Secretary 
     shall allow the tribe to continue to operate the school as a 
     grant or contract school, or if the school is being 
     controlled by an outside entity, provide the tribe with the 
     option to assume operation of the school as a contract 
     school, in accordance with the Indian Self-Determination Act, 
     or as a grant school in accordance with the Tribally 
     Controlled Schools Act of 1988, at the beginning of the 
     school year following the school year in which the school 
     obtains accreditation. If the tribe declines, the Secretary 
     may allow the outside entity, receiver, or trustee to 
     continue the operation of the school or reassume control of 
     the school.
       ``(E) Failure of school plan of contract or grant school.--
       ``(i) Corrective action.--With respect to a contract or 
     grant school that fails to be accredited at the end of the 
     third full year immediately following the date that the 
     school's plan was first in effect under paragraph (7), the 
     Secretary may take 1 or more of the corrective actions 
     described in subparagraph (D)(i) and (D)(ii). The Secretary 
     shall implement such corrective action for at least 1 year 
     prior to taking any action described under clause (ii).
       ``(ii) Outside entity.--If the corrective action described 
     in clause (i) does not result in accreditation of the school, 
     the Secretary, in conjunction with the tribal governing body, 
     may contract with an outside entity to operate the school in 
     order to achieve accreditation of the school within 2 school 
     years. Prior to entering into such a contract, the Secretary 
     shall develop a proposal for such operation which shall 
     include, at a minimum, the following elements:

       ``(I) The identification of 1 or more outside entities each 
     of which has demonstrated to the Secretary its ability to 
     develop a satisfactory plan for achieving accreditation and 
     its willingness and availability to undertake such a plan.
       ``(II) A plan for implementing operation of the school by 
     such an outside entity, including the methodology for 
     oversight and evaluation of the performance of the outside 
     entity by the Secretary and the tribe.

       ``(iii) Proposal amendments.--The tribal governing body 
     shall have 60 days to amend the plan developed pursuant to 
     clause (ii), including identifying another outside entity to 
     operate the school. The Secretary shall reach agreement with 
     the tribal governing body on the proposal and any such 
     amendments to the plan not later than 30 days after the 
     expiration of the 60 day period described in the preceding 
     sentence. After the approval of the proposal and any 
     amendments, the Secretary, with continuing consultation with 
     such tribal governing body, shall implement the proposal.
       ``(iv) Accreditation.--Upon accreditation of the school, 
     the tribe shall have the option to assume the operation and 
     administration of the school as a contract school after 
     complying with the Indian Self-Determination Act, or as a 
     grant school, after complying with the Tribally Controlled 
     Schools Act of 1988, at the beginning of the school year 
     following the year in which the school obtains accreditation.
       ``(v) Retrocede.--Nothing in this subparagraph shall limit 
     a tribe's right to retrocede operation of a school to the 
     Secretary pursuant to section 105(e) of the Indian Self-
     Determination Act (with respect to a contract school) or 
     section 5204(f) of the Tribally Controlled Schools Act of 
     1988 (with respect to a grant school).
       ``(vi) Consistent.--The provisions of this subparagraph 
     shall be construed to be consistent with the provisions of 
     the Tribally Controlled Schools Act of 1988 and the Indian 
     Self-Determination Act as in effect on the day before the 
     date of enactment of the Native American Education 
     Improvement Act of 2001, and shall not be construed as 
     expanding the authority of the Secretary under any other law.
       ``(F) Hearing.--With respect to a school that is operated 
     pursuant to a grant, or a school that is operated under a 
     contract under the Indian Self-Determination Act, prior to 
     implementing any corrective action under this paragraph, the 
     Secretary shall provide notice and an opportunity for a 
     hearing to the affected school pursuant to section 5207 of 
     the Tribally Controlled Schools Act of 1988.
       ``(9) Statutory construction.--Nothing in this section 
     shall be construed to alter or otherwise affect the rights, 
     remedies, and procedures afforded to school employees under 
     applicable law (including applicable regulations or court 
     orders) or under the terms of any collective bargaining 
     agreement, memorandum of understanding, or other agreement 
     between such employees and their employers.
       ``(10) Fiscal control and fund accounting standards.--The 
     Bureau shall, either directly or through contract with an 
     Indian organization, establish a consistent system of 
     reporting standards for fiscal control and fund accounting 
     for all contract and grant schools. Such standards shall 
     provide data comparable to those used by Bureau-operated 
     schools.
       ``(c) Annual Plan.--
       ``(1) In general.--Except as provided in subsection (b), 
     the Secretary shall implement the standards in effect under 
     this section on the day before the date of enactment of the 
     Native American Education Improvement Act of 2001.
       ``(2) Plan.--On an annual basis, the Secretary shall submit 
     to the appropriate committees of Congress, all Bureau-funded 
     schools, and the tribal governing bodies of such schools

[[Page 25782]]

     a detailed plan to ensure that all Bureau-funded schools are 
     accredited, or if such schools are in the process of 
     obtaining accreditation that such schools meet the Bureau 
     standards in effect on the day before the date of enactment 
     of the Native American Education Improvement Act of 2001 to 
     the extent that such standards do not conflict with the 
     standards of the accrediting agency. Such plan shall include 
     detailed information on the status of each school's 
     educational program in relation to the applicable standards, 
     specific cost estimates for meeting such standards at each 
     school, and specific timelines for bringing each school up to 
     the level required by such standards.
       ``(d) Closure or Consolidation of Schools.--
       ``(1) In general.--Except as specifically required by law--
       ``(A) no Bureau-funded school or dormitory operated on or 
     after January 1, 1992, may be closed, consolidated, or 
     transferred to another authority; and
       ``(B) no program of such a school may be substantially 
     curtailed except in accordance with the requirements of this 
     subsection.
       ``(2) Exceptions.--This subsection (other than this 
     paragraph) shall not apply--
       ``(A) in those cases in which the tribal governing body for 
     a school, or the local school board concerned (if designated 
     by the tribal governing body to act under this paragraph), 
     requests the closure, consolidation, or substantial 
     curtailment; or
       ``(B) if a temporary closure, consolidation, or substantial 
     curtailment is required by facility conditions that 
     constitute an immediate hazard to health and safety.
       ``(3) Regulations.--The Secretary shall, by regulation, 
     promulgate standards and procedures for the closure, transfer 
     to another authority, consolidation, or substantial 
     curtailment of Bureau schools, in accordance with the 
     requirements of this subsection.
       ``(4) Notice.--
       ``(A) In general.--In a case in which closure, transfer to 
     another authority, consolidation, or substantial curtailment 
     of a school is under active consideration or review by any 
     division of the Bureau or the Department of the Interior, the 
     affected tribe, tribal governing body, and designated local 
     school board will be notified immediately in writing, kept 
     fully and currently informed, and afforded an opportunity to 
     comment with respect to such consideration or review.
       ``(B) Decision to close.--If a formal decision is made to 
     close, transfer to another authority, consolidate, or 
     substantially curtail a school, the affected tribe, tribal 
     governing body, and designated school board shall be notified 
     not later than 180 days before the end of the school year 
     preceding the proposed closure date.
       ``(C) Copies.--Copies of any such notices and information 
     shall be--
       ``(i) submitted promptly to the appropriate committees of 
     Congress; and
       ``(ii) published in the Federal Register.
       ``(5) Report.--The Secretary shall submit to the 
     appropriate committees of Congress, the affected tribe, and 
     the designated school board, a report describing the process 
     of the active consideration or review referred to in 
     paragraph (4) that includes--
       ``(A) a study of the impact of such action on the student 
     population;
       ``(B) a description of those students with particular 
     educational and social needs;
       ``(C) recommendations to ensure that alternative services 
     are available to such students; and
       ``(D) a description of the consultation conducted between 
     the potential service provider, current service provider, 
     parents, tribal representatives and the tribe or tribes 
     involved, and the Director of the Office of Indian Education 
     Programs within the Bureau regarding such students.
       ``(6) Limitation on certain actions.--No irrevocable action 
     may be taken in furtherance of any such proposed school 
     closure, transfer to another authority, consolidation, or 
     substantial curtailment (including any action which would 
     prejudice the personnel or programs of such school) prior to 
     the end of the first full academic year after such report is 
     made.
       ``(7) Tribal governing body approval required for certain 
     actions.--The Secretary may, with the approval of the tribal 
     governing body, terminate, contract, transfer to any other 
     authority, consolidate, or substantially curtail the 
     operation or facilities of--
       ``(A) any Bureau-funded school that is operated on or after 
     of January 1, 1999;
       ``(B) any program of such a school that is operated on or 
     after January 1, 1999; or
       ``(C) any school board of a school operated under a grant 
     under the Tribally Controlled Schools Act of 1988.
       ``(e) Application for Contracts or Grants for Non-Bureau-
     Funded Schools or Expansion of Bureau-Funded Schools.--
       ``(1) Review by secretary.--
       ``(A) Consideration of factors.--
       ``(i) In general.--The Secretary shall consider only the 
     factors described in subparagraph (B) in reviewing--

       ``(I) applications from any tribe for the awarding of a 
     contract or grant for a school that is not a Bureau-funded 
     school; and
       ``(II) applications from any tribe or school board of any 
     Bureau-funded school for--

       ``(aa) a school which is not a Bureau-funded school; or
       ``(bb) the expansion of a Bureau-funded school which would 
     increase the amount of funds received by the Indian tribe or 
     school board under section 1127.
       ``(ii) No denial based on geographic proximity.--With 
     respect to applications described in this subparagraph, the 
     Secretary shall give consideration to all factors described 
     in subparagraph (B), but no such application shall be denied 
     based primarily upon the geographic proximity of comparable 
     public education.
       ``(B) Factors.--With respect to applications described in 
     subparagraph (A), the Secretary shall consider the following 
     factors relating to the program and services that are the 
     subject of the application:
       ``(i) The adequacy of the facilities or the potential to 
     obtain or provide adequate facilities.
       ``(ii) Geographic and demographic factors in the affected 
     areas.
       ``(iii) The adequacy of the applicant's program plans or, 
     in the case of a Bureau-funded school, of projected needs 
     analysis done either by the tribe or the Bureau.
       ``(iv) Geographic proximity of comparable public education.
       ``(v) The stated needs of all affected parties, including 
     students, families, tribal governments at both the central 
     and local levels, and school organizations.
       ``(vi) Adequacy and comparability of programs already 
     available.
       ``(vii) Consistency of available programs with tribal 
     educational codes or tribal legislation on education.
       ``(viii) The history and success of those services for the 
     proposed population to be served, as determined from all 
     factors, including standardized examination performance.
       ``(2) Determination on application.--
       ``(A) In general.--Not later than 180 days after the date 
     on which an application described in paragraph (1)(A) is 
     submitted to the Secretary, the Secretary shall make a 
     determination of whether to approve the application.
       ``(B) Failure to make determination.--If the Secretary 
     fails to make a determination with respect to an application 
     by the date described in subparagraph (A), the application 
     shall be deemed to have been approved by the Secretary.
       ``(3) Requirements for applications.--
       ``(A) In general.--Notwithstanding paragraph (2)(B), an 
     application described in paragraph (1)(A) may be approved by 
     the Secretary only if--
       ``(i) the application has been approved by the tribal 
     governing body of the students served by (or to be served by) 
     the school or program that is the subject of the application; 
     and
       ``(ii) written evidence of such approval is submitted with 
     the application.
       ``(B) Included information.--Each application described in 
     paragraph (1)(A) shall include information concerning each of 
     the factors described in paragraph (1)(B).
       ``(4) Denial of applications.--If the Secretary denies an 
     application described in paragraph (1)(A), the Secretary 
     shall--
       ``(A) state the objections to the application in writing to 
     the applicant not later than 180 days after the date the 
     application is submitted to the Secretary;
       ``(B) provide assistance to the applicant to overcome the 
     stated objections;
       ``(C) provide to the applicant a hearing on the record 
     regarding the denial, under the same rules and regulations as 
     apply under the Indian Self-Determination and Education 
     Assistance Act; and
       ``(D) provide to the applicant a notice of the applicant's 
     appeals rights and an opportunity to appeal the decision 
     resulting from the hearing under subparagraph (D).
       ``(5) Effective date of a subject application.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, an action that is the subject of any application 
     described in paragraph (1)(A) that is approved by the 
     Secretary shall become effective--
       ``(i) at the beginning of the academic year following the 
     fiscal year in which the application is approved; or
       ``(ii) at an earlier date determined by the Secretary.
       ``(B) Applications deemed approved.--If an application is 
     deemed to have been approved by the Secretary under paragraph 
     (2)(B), the action that is the subject of the application 
     shall become effective--
       ``(i) on the date that is 18 months after the date on which 
     the application is submitted to the Secretary; or
       ``(ii) at an earlier date determined by the Secretary.
       ``(6) Statutory construction.--Nothing in this section or 
     any other provision of law, shall be construed to preclude 
     the expansion of grades and related facilities at a Bureau-
     funded school, if such expansion is paid for with non-Bureau 
     funds. Subject to the availability of appropriated funds the 
     Secretary is authorized to provide the necessary funds needed 
     to supplement the cost of operations and maintenance of such 
     expansion.
       ``(f) Joint Administration.--Administrative, 
     transportation, and program cost funds received by Bureau-
     funded schools, and any program from the Department of 
     Education or any other Federal agency for the purpose of 
     providing education or related services, and other funds 
     received for such education and related services from 
     nonfederally funded programs, shall be apportioned and the 
     funds shall be retained at the school.
       ``(g) General Use of Funds.--Funds received by Bureau-
     funded schools from the Bureau of Indian Affairs, and under 
     any program from the Department of Education or any other 
     Federal

[[Page 25783]]

     agency, for the purpose of providing education or related 
     services may be used for schoolwide projects to improve the 
     educational program for all Indian students.
       ``(h) Study on Adequacy of Funds and Formulas.--
       ``(1) Study.--The Comptroller General of the United States 
     shall conduct a study to determine the adequacy of funding, 
     and formulas used by the Bureau to determine funding, for 
     programs operated by Bureau-funded schools, taking into 
     account unique circumstances applicable to Bureau-funded 
     schools. The study shall analyze existing information 
     gathered and contained in germane studies that have been 
     conducted or are currently being conducted with regard to 
     Bureau-funded schools.
       ``(2) Action.--Upon completion of the study, the Secretary 
     of the Interior shall take such action as necessary to ensure 
     distribution of the findings of the study to all affected 
     Indian tribes, local school boards, and associations of local 
     school boards.

     ``SEC. 1122. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.

       ``(a) Revision of Standards.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of Education, Indian organizations and tribes, and 
     Bureau-funded schools, shall revise the national standards 
     for home-living (dormitory) situations to include such 
     factors as heating, lighting, cooling, adult-child ratios, 
     needs for counselors (including special needs related to off-
     reservation home-living (dormitory) situations), therapeutic 
     programs, space, and privacy.
       ``(2) Implementation.--Such standards shall be implemented 
     in Bureau-operated schools, and shall serve as minimum 
     standards for contract or grant schools.
       ``(3) Revision after establishment.--Once established, any 
     revisions of such standards shall be developed according to 
     the requirements established under section 1137.
       ``(b) Implementation.--The Secretary shall implement the 
     revised standards established under this section immediately 
     upon completion of the standards.
       ``(c) Plan.--
       ``(1) In general.--The Secretary shall submit to the 
     appropriate committees of Congress, the tribes, and the 
     affected schools, and publish in the Federal Register, a 
     detailed plan to bring all Bureau-funded schools that provide 
     home-living (dormitory) situations up to the standards 
     established under this section.
       ``(2) Components of plan.--The plan described in paragraph 
     (1) shall include--
       ``(A) a statement of the relative needs of each Bureau-
     funded home-living (dormitory) school;
       ``(B) projected future needs of each Bureau-funded home-
     living (dormitory) school;
       ``(C) detailed information on the status of each school in 
     relation to the standards established under this section;
       ``(D) specific cost estimates for meeting each standard for 
     each such school;
       ``(E) aggregate cost estimates for bringing all such 
     schools into compliance with the criteria established under 
     this section; and
       ``(F) specific timelines for bringing each school into 
     compliance with such standards.
       ``(d) Waiver.--
       ``(1) In general.--A tribal governing body or local school 
     board may, in accordance with this subsection, waive the 
     standards established under this section for a school 
     described in subsection (a).
       ``(2) Inappropriate standards.--
       ``(A) In general.--A tribal governing body, or the local 
     school board so designated by the tribal governing body, may 
     waive, in whole or in part, the standards established under 
     this section if such standards are determined by such body or 
     board to be inappropriate for the needs of students from that 
     tribe.
       ``(B) Alternative standards.--The tribal governing body or 
     school board involved shall, not later than 60 days after 
     providing a waiver under subparagraph (A) for a school, 
     submit to the Director a proposal for alternative standards 
     that take into account the specific needs of the tribe's 
     children. Such alternative standards shall be established by 
     the Director for the school involved unless specifically 
     rejected by the Director for good cause and in writing 
     provided to the affected tribes or local school board.
       ``(e) Closure for Failure To Meet Standards Prohibited.--No 
     school in operation on or before July 1, 1999 (regardless of 
     compliance or noncompliance with the standards established 
     under this section), may be closed, transferred to another 
     authority, or consolidated, and no program of such a school 
     may be substantially curtailed, because the school failed to 
     meet such standards.

     ``SEC. 1123. CODIFICATION OF REGULATIONS.

       ``(a) Part 32 of Title 25, Code of Federal Regulations.--
     The provisions of part 32 of title 25, Code of Federal 
     Regulations, as in effect on January 1, 1987, are 
     incorporated into this Act and shall be treated as though 
     such provisions are set forth in this subsection. Such 
     provisions may be altered only by means of an Act of 
     Congress. To the extent that such provisions of part 32 do 
     not conform with this Act or any statutory provision of law 
     enacted before November 1, 1978, the provisions of this Act 
     and the provisions of such other statutory law shall govern.
       ``(b) Definition of Regulation.--In this section, the term 
     `regulation' means any rule, regulation, guideline, 
     interpretation, order, or requirement of general 
     applicability prescribed by any officer or employee of the 
     executive branch.

     ``SEC. 1124. SCHOOL BOUNDARIES.

       ``(a) Establishment by Secretary.--The Secretary shall 
     establish, by regulation, separate geographical attendance 
     areas for each Bureau-funded school.
       ``(b) Establishment by Tribal Body.--In any case where 
     there is more than one Bureau-funded school located on an 
     Indian reservation, at the direction of the tribal governing 
     body, the relevant school boards of the Bureau-funded schools 
     on the reservation may, by mutual consent, establish the 
     relevant attendance areas for such schools, subject to the 
     approval of the tribal governing body. Any such boundaries so 
     established shall be accepted by the Secretary.
       ``(c) Boundary Revisions.--
       ``(1) Notice.--On or after July 1, 2001, no geographical 
     attendance area shall be revised or established with respect 
     to any Bureau-funded school unless the tribal governing body 
     or the local school board concerned (if so designated by the 
     tribal governing body) has been afforded--
       ``(A) at least 6 months notice of the intention of the 
     Bureau to revise or establish such attendance area; and
       ``(B) the opportunity to propose alternative boundaries.
       ``(2) Revision process.--Any tribe may petition the 
     Secretary for revision of existing attendance area 
     boundaries. The Secretary shall accept such proposed 
     alternative or revised boundaries unless the Secretary finds, 
     after consultation with the affected tribe or tribes, that 
     such revised boundaries do not reflect the needs of the 
     Indian students to be served or do not provide adequate 
     stability to all of the affected programs. The Secretary 
     shall cause such revisions to be published in the Federal 
     Register.
       ``(3) Tribal resolution determination.--Nothing in this 
     section shall deny a tribal governing body the authority, on 
     a continuing basis, to adopt a tribal resolution allowing 
     parents the choice of the Bureau-funded school their children 
     may attend, regardless of the attendance boundaries 
     established under this section.
       ``(d) Funding Restrictions.--
       ``(1) In general.--The Secretary shall not deny funding to 
     a Bureau-funded school for any eligible Indian student 
     attending the school solely because that student's home or 
     domicile is outside of the geographical attendance area 
     established for that school under this section.
       ``(2) Transportation.--No funding shall be made available 
     without tribal authorization to enable a school to provide 
     transportation for any student to or from the school and a 
     location outside the approved attendance area of the school.
       ``(e) Reservation as Boundary.--When there is only 1 
     Bureau-funded program located on an Indian reservation--
       ``(1) the attendance area for the program shall be the 
     boundaries (established by treaty, agreement, legislation, 
     court decisions, or executive decisions and as accepted by 
     the tribe) of the reservation served; and
       ``(2) those students residing near the reservation shall 
     also receive services from such program.
       ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
       ``(1) In general.--Notwithstanding any geographical 
     attendance areas, attendance at off-reservation home-living 
     (dormitory) schools shall include students requiring special 
     emphasis programs to be implemented at each off-reservation 
     home-living (dormitory) school.
       ``(2) Coordination.--Such attendance shall be coordinated 
     between education line officers, the family, and the 
     referring and receiving programs.

     ``SEC. 1125. FACILITIES CONSTRUCTION.

       ``(a) National Survey of Facilities Conditions.--
       ``(1) In general.--Not later than 12 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the General Accounting Office shall compile, 
     collect, and secure the data that are needed to prepare a 
     national survey of the physical conditions of all Bureau-
     funded school facilities.
       ``(2) Data and methodologies.--In preparing the national 
     survey required under paragraph (1), the General Accounting 
     Office shall use the following data and methodologies:
       ``(A) The existing Department of Defense formula for 
     determining the condition and adequacy of Department of 
     Defense facilities.
       ``(B) Data related to conditions of Bureau-funded schools 
     that has previously been compiled, collected, or secured from 
     whatever source derived so long as the data are accurate, 
     relevant, timely, and necessary to the survey.
       ``(C) The methodologies of the American Institute of 
     Architects, or other accredited and reputable architecture or 
     engineering associations.
       ``(3) Consultations.--
       ``(A) In general.--In carrying out the survey required 
     under paragraph (1), the General Accounting Office shall, to 
     the maximum extent practicable, consult (and if necessary 
     contract) with national, regional, and tribal Indian 
     education organizations to ensure that a complete and 
     accurate national survey is achieved.
       ``(B) Requests for information.--All Bureau-funded schools 
     shall comply with reasonable requests for information by the 
     General Accounting Office and shall respond to such requests 
     in a timely fashion.
       ``(4) Submission.--Not later than 2 years after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, the General Accounting Office shall submit the results 
     of the national survey conducted under paragraph (1) to the 
     Committee on Indian Affairs, the Committee on Health, 
     Education, Labor, and Pensions, and the Committee on 
     Appropriations of

[[Page 25784]]

     the Senate and the Committee on Resources, the Committee on 
     Education and the Workforce, and the Committee on 
     Appropriations of the House of Representatives and to the 
     Secretary. The Secretary shall submit the results of the 
     national survey to school boards of Bureau-funded schools and 
     their respective tribes.
       ``(5) Negotiated rulemaking committee.--
       ``(A) In general.--Not later than 6 months after the date 
     on which the submission is made under paragraph (4), the 
     Secretary shall establish a negotiated rulemaking committee 
     pursuant to section 1138(b)(3). The negotiated rulemaking 
     committee shall prepare and submit to the Secretary the 
     following:
       ``(i) A catalog of the condition of school facilities at 
     all Bureau-funded schools that--

       ``(I) incorporates the findings from the General Accounting 
     Office study evaluating and comparing school systems of the 
     Department of Defense and the Bureau of Indian Affairs;
       ``(II) rates such facilities with respect to the rate of 
     deterioration and useful life of structures and major 
     systems;
       ``(III) establishes a routine maintenance schedule for each 
     facility;
       ``(IV) identifies the complementary educational facilities 
     that do not exist but that are needed; and
       ``(V) makes projections on the amount of funds needed to 
     keep each school viable, consistent with the accreditation 
     standards required pursuant to this Act.

       ``(ii) A school replacement and new construction report 
     that determines replacement and new construction need, and a 
     formula for the equitable distribution of funds to address 
     such need, for Bureau-funded schools. Such formula shall 
     utilize necessary factors in determining an equitable 
     distribution of funds, including--

       ``(I) the size of school;
       ``(II) school enrollment;
       ``(III) the age of the school;
       ``(IV) the condition of the school;
       ``(V) environmental factors at the school; and
       ``(VI) school isolation.

       ``(iii) A renovation repairs report that determines 
     renovation need (major and minor), and a formula for the 
     equitable distribution of funds to address such need, for 
     Bureau-funded schools. Such report shall identify needed 
     repairs or renovations with respect to a facility, or a part 
     of a facility, or the grounds of the facility, to remedy a 
     need based on disabilities access or health and safety 
     changes to a facility. The formula developed shall utilize 
     necessary factors in determining an equitable distribution of 
     funds, including the factors described in clause (ii).
       ``(B) Submission of reports.--Not later than 24 months 
     after the negotiated rulemaking committee is established 
     under subparagraph (A), the reports described in clauses (ii) 
     and (iii) of subparagraph (A) shall be submitted to the 
     committees of Congress referred to in paragraph (4), the 
     national and regional Indian education organizations, and to 
     all school boards of Bureau-funded schools and their 
     respective tribes.
       ``(6) Facilities information systems support database.--The 
     Secretary shall develop a Facilities Information Systems 
     Support Database to maintain and update the information 
     contained in the reports under clauses (ii) and (iii) of 
     paragraph (5)(A) and the information contained in the survey 
     conducted under paragraph (1). The system shall be updated 
     every 3 years by the Bureau of Indian Affairs and monitored 
     by General Accounting Office, and shall be made available to 
     school boards of Bureau-funded schools and their respective 
     tribes, and Congress.
       ``(b) Compliance With Health and Safety Standards.--
       ``(1) In general.--The Secretary shall immediately begin to 
     bring all schools, dormitories, and other Indian education-
     related facilities operated by the Bureau or under contract 
     or grant with the Bureau, into compliance with--
       ``(A) all applicable tribal, Federal, or State health and 
     safety standards, whichever provides greater protection 
     (except that the tribal standards to be applied shall be no 
     greater than any otherwise applicable Federal or State 
     standards);
       ``(B) section 504 of the Rehabilitation Act of 1973; and
       ``(C) the Americans with Disabilities Act of 1990.
       ``(2) No termination required.--Nothing in this subsection 
     requires termination of the operations of any facility that--
       ``(A) does not comply with the provisions and standards 
     described in paragraph (1); and
       ``(B) is in use on the date of enactment of the Native 
     American Education Improvement Act of 2001.
       ``(c) Compliance Plan.--At the time that the annual budget 
     request for Bureau educational services is presented, the 
     Secretary shall submit to the appropriate committees of 
     Congress a detailed plan to bring all facilities covered 
     under subsection (a) into compliance with the standards 
     referred to in that subsection that includes--
       ``(1) detailed information on the status of each facility's 
     compliance with such standards;
       ``(2) specific cost estimates for meeting such standards at 
     each school; and
       ``(3) specific timelines for bringing each school into 
     compliance with such standards.
       ``(d) Construction Priorities.--
       ``(1) System to establish priorities.--On an annual basis, 
     the Secretary shall submit to the appropriate committees of 
     Congress and cause to be published in the Federal Register, 
     the system used to establish priorities for replacement and 
     construction projects for Bureau-funded schools and home-
     living schools, including boarding schools and dormitories. 
     At the time any budget request for education is presented, 
     the Secretary shall publish in the Federal Register and 
     submit with the budget request the current list of all 
     Bureau-funded school construction priorities.
       ``(2) Long-term construction and replacement list.--In 
     addition to the plan submitted under subsection (c), the 
     Secretary shall--
       ``(A) not later than 18 months after the date of enactment 
     of the Native American Education Improvement Act of 2001, 
     establish a long-term construction and replacement list for 
     all Bureau-funded schools;
       ``(B) using the list prepared under subparagraph (A), 
     propose a list for the orderly replacement of all Bureau-
     funded education-related facilities over a period of 40 years 
     to enable planning and scheduling of budget requests;
       ``(C) cause the list prepared under subsection (B) to be 
     published in the Federal Register and allow a period of not 
     less than 120 days for public comment;
       ``(D) make such revisions to the list prepared under 
     subparagraph (B) as are appropriate based on the comments 
     received; and
       ``(E) cause the final list to be published in the Federal 
     Register.
       ``(3) Effect on other list.--Nothing in this section shall 
     interfere with or change in any way the construction priority 
     list as it existed on the day before the date of enactment of 
     the Native American Education Improvement Act of 2001.
       ``(e) Hazardous Condition at Bureau-Funded School.--
       ``(1) Closure, consolidation, or curtailment.--
       ``(A) In general.--A Bureau-funded school may be closed or 
     consolidated, or the programs of a Bureau-funded school may 
     be substantially curtailed, by reason of facility conditions 
     that constitute an immediate hazard to health and safety only 
     if a health and safety officer of the Bureau and an 
     individual designated at the beginning of the school year by 
     the tribe involved under subparagraph (B) determine that such 
     conditions exist at a facility of the Bureau-funded school.
       ``(B) Designation of individual by tribe.--To be designated 
     by a tribe for purposes of subparagraph (A), an individual 
     shall--
       ``(i) be a licensed or certified facilities safety 
     inspector;
       ``(ii) have demonstrated experience in the inspection of 
     facilities for health and safety purposes with respect to 
     occupancy; or
       ``(iii) have a significant educational background in the 
     health and safety of facilities with respect to occupancy.
       ``(C) Inspection.--After making a determination described 
     in subparagraph (A), the Bureau health and safety officer and 
     the individual designated by the tribe shall conduct an 
     inspection of the conditions of such facility in order to 
     determine whether conditions at such facility constitute an 
     immediate hazard to health and safety. Such inspection shall 
     be completed as expeditiously as practicable, but not later 
     than 20 days after the date on which the action described in 
     subparagraph (A) is taken.
       ``(D) Failure to concur.--If the Bureau health and safety 
     officer, and the individual designated by the tribe, 
     conducting the inspection of a facility required under 
     subparagraph (C) do not concur that conditions at the 
     facility constitute an immediate hazard to health and safety, 
     such officer and individual shall immediately notify the 
     tribal governing body and provide written information related 
     to their determinations.
       ``(E) Consideration by tribal governing body.--Not later 
     than 10 days after a tribal governing body receives notice 
     under subparagraph (D), the tribal governing body shall 
     consider all information relating to the determinations of 
     the Bureau health and safety officer and the individual 
     designated by the tribe and make a determination regarding 
     the closure, consolidation, or curtailment involved.
       ``(F) Agreement to close, consolidate, or curtail.--
       ``(i) In general.--If the Bureau health and safety officer 
     and the individual designated by the tribe conducting the 
     inspection of a facility required under subparagraph (C), 
     concur that conditions at the facility constitute an 
     immediate hazard to health and safety, or if the tribal 
     governing body makes such a determination under subparagraph 
     (E), the facility involved shall be closed immediately.
       ``(ii) Reopening of facility if no immediate hazard found 
     to exist.--If the Bureau health and safety officer or the 
     individual designated by the tribe conducting the inspection 
     of a facility required under subparagraph (C) determines that 
     conditions at the facility do not constitute an immediate 
     hazard to health and safety, any consolidation or curtailment 
     that was made under this paragraph shall immediately cease 
     and any school closed by reason of conditions at the facility 
     shall be reopened immediately.
       ``(G) General closure report.--If a Bureau-funded school is 
     temporarily closed or consolidated or the programs of a 
     Bureau-funded school are temporarily substantially curtailed 
     under this subsection and the Secretary determines that the 
     closure, consolidation, or curtailment will exceed 1 year, 
     the Secretary shall submit to the appropriate committees of 
     Congress, the affected tribe, and the local school board, not 
     later than 90 days after the date on which the closure, 
     consolidation, or curtailment was initiated, a report that 
     specifies--
       ``(i) the reasons for such temporary action;
       ``(ii) the actions the Secretary is taking to eliminate the 
     conditions that constitute the hazard;

[[Page 25785]]

       ``(iii) an estimated date by which the actions described in 
     clause (ii) will be concluded; and
       ``(iv) a plan for providing alternate education services 
     for students enrolled at the school that is to be closed.
       ``(2) Nonapplication of certain standards for temporary 
     facility use.--
       ``(A) Classroom activities.--The Secretary shall permit the 
     local school board to temporarily utilize facilities adjacent 
     to the school, or satellite facilities, if such facilities 
     are suitable for conducting classroom activities. In 
     permitting the use of facilities under the preceding 
     sentence, the Secretary may waive applicable minor standards 
     under section 1121 relating to such facilities (such as the 
     required number of exit lights or configuration of restrooms) 
     so long as such waivers do not result in the creation of an 
     environment that constitutes an immediate and substantial 
     threat to the health, safety, and life of students and staff.
       ``(B) Administrative activities.--The provisions of 
     subparagraph (A) shall apply with respect to administrative 
     personnel if the facilities involved are suitable for 
     activities performed by such personnel.
       ``(C) Temporary.--In this paragraph, the term `temporary' 
     means--
       ``(i) with respect to a school that is to be closed for not 
     more than 1 year, 3 months or less; and
       ``(ii) with respect to a school that is to be closed for 
     not less than 1 year, a time period determined appropriate by 
     the Bureau.
       ``(3) Treatment of closure.--Any closure of a Bureau-funded 
     school under this subsection for a period that exceeds 30 
     days but is less than 1 year, shall be treated by the Bureau 
     as an emergency facility improvement and repair project.
       ``(4) Use of funds.--With respect to a Bureau-funded school 
     that is closed under this subsection, the tribal governing 
     body, or the designated local school board of each Bureau-
     funded school, involved may authorize the use of funds 
     allocated pursuant to section 1127, to abate the hazardous 
     conditions without further action by Congress.
       ``(f) Funding Requirement.--
       ``(1) Distribution of funds.--Beginning with the first 
     fiscal year following the date of enactment of the Native 
     American Education Improvement Act of 2001, all funds 
     appropriated to the budget accounts for the operations and 
     maintenance of Bureau-funded schools shall be distributed by 
     formula to the schools. No funds from these accounts may be 
     retained or segregated by the Bureau to pay for 
     administrative or other costs of any facilities branch or 
     office, at any level of the Bureau.
       ``(2) Requirements for certain uses.--No funds shall be 
     withheld from the distribution to the budget of any school 
     operated under contract or grant by the Bureau for 
     maintenance or any other facilities or road-related purpose, 
     unless such school has consented, as a modification to the 
     contract or in writing for grants schools, to the withholding 
     of such funds, including the amount thereof, the purpose for 
     which the funds will be used, and the timeline for the 
     services to be provided. The school may, at the end of any 
     fiscal year, cancel an agreement under this paragraph upon 
     giving the Bureau 30 days notice of its intent to do so.
       ``(g) No Reduction in Federal Funding.--Nothing in this 
     section shall diminish any Federal funding due to the receipt 
     by the school of funding for facilities improvement or 
     construction from a State or any other source.

     ``SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

       ``(a) Formulation and Establishment of Policy and 
     Procedure; Supervision of Programs and Expenditures.--The 
     Secretary shall vest in the Assistant Secretary for Indian 
     Affairs all functions with respect to formulation and 
     establishment of policy and procedure and supervision of 
     programs and expenditures of Federal funds for the purpose of 
     Indian education administered by the Bureau. The Assistant 
     Secretary shall carry out such functions through the Director 
     of the Office of Indian Education Programs.
       ``(b) Direction and Supervision of Personnel Operations.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Director of the Office shall direct and 
     supervise the operations of all personnel directly and 
     substantially involved in the provision of education program 
     services by the Bureau, including school or institution 
     custodial or maintenance personnel, and personnel responsible 
     for contracting, procurement, and finance functions connected 
     with school operation programs.
       ``(2) Transfers.--The Assistant Secretary for Indian 
     Affairs shall, not later than 180 days after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, coordinate the transfer of functions relating to 
     procurements for, contracts of, operation of, and maintenance 
     of schools and other support functions to the Director.
       ``(c) Inherent Federal Function.--For purposes of this Act, 
     all functions relating to education that are located at the 
     Area or Agency level and performed by an education line 
     officer shall be subject to contract under the Indian Self-
     Determination and Education Assistance Act, unless determined 
     by the Secretary to be inherently Federal functions as 
     defined in section 1141(12).
       ``(d) Evaluation of Programs; Services and Support 
     Functions; Technical and Coordinating Assistance.--Education 
     personnel who are under the direction and supervision of the 
     Director of the Office of Indian Education Programs in 
     accordance with subsection (b)(1) shall--
       ``(1) monitor and evaluate Bureau education programs;
       ``(2) provide all services and support functions for 
     education programs with respect to personnel matters 
     involving staffing actions and functions; and
       ``(3) provide technical and coordinating assistance in 
     areas such as procurement, contracting, budgeting, personnel, 
     curriculum, and operation and maintenance of school 
     facilities.
       ``(e) Construction, Improvement, Operation, and Maintenance 
     of Facilities.--
       ``(1) Plan for construction.--The Assistant Secretary shall 
     submit as part of the annual budget a plan--
       ``(A) for school facilities to be constructed under section 
     1125(c);
       ``(B) for establishing priorities among projects and for 
     the improvement and repair of educational facilities, which 
     together shall form the basis for the distribution of 
     appropriated funds; and
       ``(C) for capital improvements to be made over the 5 
     succeeding years.
       ``(2) Program for operation and maintenance.--
       ``(A) Establishment.--The Assistant Secretary shall 
     establish a program, including the distribution of 
     appropriated funds, for the operation and maintenance of 
     education facilities. Such program shall include--
       ``(i) a method of computing the amount necessary for each 
     educational facility;
       ``(ii) similar treatment of all Bureau-funded schools;
       ``(iii) a notice of an allocation of appropriated funds 
     from the Director of the Office of Indian Education Programs 
     directly to the education line officers and appropriate 
     school officials;
       ``(iv) a method for determining the need for, and priority 
     of, facilities repair and maintenance projects, both major 
     and minor (to be determined, through the conduct by the 
     Assistant Secretary, of a series of meetings at the agency 
     and area level with representatives of the Bureau-funded 
     schools in those areas and agencies to receive comment on the 
     lists and prioritization of such projects); and
       ``(v) a system for the conduct of routine preventive 
     maintenance.
       ``(B) Local supervisors.--The appropriate education line 
     officers shall make arrangements for the maintenance of 
     education facilities with the local supervisors of the Bureau 
     maintenance personnel. The local supervisors of Bureau 
     maintenance personnel shall take appropriate action to 
     implement the decisions made by the appropriate education 
     line officers, except that no funds under this chapter may be 
     authorized for expenditure unless such appropriate education 
     line officer is assured that the necessary maintenance has 
     been, or will be, provided in a reasonable manner.
       ``(3) Implementation.--This subsection shall be implemented 
     as soon as practicable after the date of enactment of the 
     Native American Education Improvement Act of 2001.
       ``(f) Acceptance of Gifts and Bequests.--
       ``(1) Guidelines.--Notwithstanding any other provision of 
     law, the Director of the Office shall promulgate guidelines 
     for the establishment and administration of mechanisms for 
     the acceptance of gifts and bequests for the use and benefit 
     of particular schools or designated Bureau-operated education 
     programs, including, in appropriate cases, the establishment 
     and administration of trust funds.
       ``(2) Monitoring and reports.--Except as provided in 
     paragraph (3), in a case in which a Bureau-operated education 
     program is the beneficiary of such a gift or bequest, the 
     Director shall--
       ``(A) make provisions for monitoring use of the gift or 
     bequest; and
       ``(B) submit a report to the appropriate committees of 
     Congress that describes the amount and terms of such gift or 
     bequest, the manner in which such gift or bequest shall be 
     used, and any results achieved by such use.
       ``(3) Exception.--The requirements of paragraph (2) shall 
     not apply in the case of a gift or bequest that is valued at 
     $5,000 or less.
       ``(g) Definition of Functions.--For the purpose of this 
     section, the term `functions' includes powers and duties.

     ``SEC. 1127. ALLOTMENT FORMULA.

       ``(a) Factors Considered; Revision To Reflect Standards.--
       ``(1) Formula.--The Secretary shall establish, by 
     regulation adopted in accordance with section 1137, a formula 
     for determining the minimum annual amount of funds necessary 
     to sustain each Bureau-funded school. In establishing such 
     formula, the Secretary shall consider--
       ``(A) the number of eligible Indian students served and 
     total student population of the school;
       ``(B) special cost factors, such as--
       ``(i) the isolation of the school;
       ``(ii) the need for special staffing, transportation, or 
     educational programs;
       ``(iii) food and housing costs;
       ``(iv) maintenance and repair costs associated with the 
     physical condition of the educational facilities;
       ``(v) special transportation and other costs of isolated 
     and small schools;
       ``(vi) the costs of home-living (dormitory) arrangements, 
     where determined necessary by a tribal governing body or 
     designated school board;
       ``(vii) costs associated with greater lengths of service by 
     education personnel;

[[Page 25786]]

       ``(viii) the costs of therapeutic programs for students 
     requiring such programs; and
       ``(ix) special costs for gifted and talented students;
       ``(C) the cost of providing academic services which are at 
     least equivalent to those provided by public schools in the 
     State in which the school is located;
       ``(D) whether the available funding will enable the school 
     involved to comply with the accreditation standards 
     applicable to the school under section 1121; and
       ``(E) such other relevant factors as the Secretary 
     determines are appropriate.
       ``(2) Revision of formula.--
       ``(A) In general.--Upon the establishment of the standards 
     required in section 1122, the Secretary shall revise the 
     formula established under this subsection to reflect the cost 
     of funding such standards.
       ``(B) Review of formula.--Not later than January 1, 2003, 
     the Secretary shall review the formula established under this 
     section and shall take such steps as are necessary to 
     increase the availability of counseling and therapeutic 
     programs for students in off-reservation home-living 
     (dormitory) schools and other Bureau-operated residential 
     facilities.
       ``(C) Review of standards.--Concurrent with such action, 
     the Secretary shall review the standards established under 
     section 1122 to be certain that adequate provision is made 
     for parental notification regarding, and consent for, such 
     counseling and therapeutic programs.
       ``(b) Pro Rata Allotment.--Notwithstanding any other 
     provision of law, Federal funds appropriated for the general 
     local operation of Bureau-funded schools shall be allotted 
     pro rata in accordance with the formula established under 
     subsection (a).
       ``(c) Annual Adjustment; Reservation of Amount for School 
     Board Activities.--
       ``(1) Annual adjustment.--For fiscal year 2003, and for 
     each subsequent fiscal year, the Secretary shall adjust the 
     formula established under subsection (a) to ensure that the 
     formula does the following:
       ``(A) Uses a weighted unit of 1.2 for each eligible Indian 
     student enrolled in the seventh and eighth grades of the 
     school in considering the number of eligible Indian students 
     served by the school.
       ``(B) Considers a school with an enrollment of less than 50 
     eligible Indian students as having an average daily 
     attendance of 50 eligible Indian students for purposes of 
     implementing the adjustment factor for small schools.
       ``(C) Takes into account the provision of residential 
     services on less than a 9-month basis at a school when the 
     school board and supervisor of the school determine that a 
     less than 9-month basis will be implemented for the school 
     year involved.
       ``(D) Uses a weighted unit of 2.0 for each eligible Indian 
     student that--
       ``(i) is gifted and talented; and
       ``(ii) is enrolled in the school on a full-time basis,
     in considering the number of eligible Indian students served 
     by the school.
       ``(E) Uses a weighted unit of 0.25 for each eligible Indian 
     student who is enrolled in a year-long credit course in an 
     Indian or Native language as part of the regular curriculum 
     of a school, in considering the number of eligible Indian 
     students served by such school. The adjustment required under 
     this subparagraph shall be used for such school after--
       ``(i) the certification of the Indian or Native language 
     curriculum by the school board of such school to the 
     Secretary, together with an estimate of the number of full-
     time students expected to be enrolled in the curriculum in 
     the second school year for which the certification is made; 
     and
       (ii) the funds appropriated for allotment under this 
     section are designated by the appropriations Act 
     appropriating such funds as the amount necessary to implement 
     such adjustment at such school without reducing allotments 
     made under this section to any school by virtue of such 
     adjustment.
       ``(2) Reservation of amount.--
       ``(A) In general.--From the funds allotted in accordance 
     with the formula established under subsection (a) for each 
     Bureau school, the local school board of such school may 
     reserve an amount which does not exceed the greater of--
       ``(i) $8,000; or
       ``(ii) the lesser of--

       ``(I) $15,000; or
       ``(II) 1 percent of such allotted funds,

     for school board activities for such school, including 
     (notwithstanding any other provision of law) meeting expenses 
     and the cost of membership in, and support of, organizations 
     engaged in activities on behalf of Indian education.
       ``(B) Training.--
       ``(i) In general.--Each local school board, and any agency 
     school board that serves as a local school board for any 
     grant or contract school, shall ensure that each individual 
     who is a new member of the school board receives, within 1 
     year after the individual becomes a member of the school 
     board, 40 hours of training relevant to that individual's 
     service on the board.
       ``(ii) Types of training.--Such training may include 
     training concerning legal issues pertaining to Bureau-funded 
     schools, legal issues pertaining to school boards, ethics, 
     and other topics determined to be appropriate by the school 
     board.
       ``(iii) Recommendation.--The training described in this 
     subparagraph shall not be required, but is recommended, for a 
     tribal governing body that serves in the capacity of a school 
     board.
       ``(d) Reservation of Amount for Emergencies.--
       ``(1) In general.--The Secretary shall reserve from the 
     funds available for distribution for each fiscal year under 
     this section an amount that, in the aggregate, equals 1 
     percent of the funds available for such purpose for that 
     fiscal year, to be used, at the discretion of the Director of 
     the Office of Indian Education Programs, to meet emergencies 
     and unforeseen contingencies affecting the education programs 
     funded under this section.
       ``(2) Use of funds.--Funds reserved under this subsection 
     may be expended only for education services or programs, 
     including emergency repairs of educational facilities, at a 
     schoolsite (as defined by section 5204(c)(2) of the Tribally 
     Controlled Schools Act of 1988).
       ``(3) Availability of funds.--Funds reserved under this 
     subsection shall remain available without fiscal year 
     limitation until expended. However, the aggregate amount 
     available from all fiscal years may not exceed 1 percent of 
     the current year funds.
       ``(4) Report.--When the Secretary makes funds available 
     under this subsection, the Secretary shall report such action 
     to the appropriate committees of Congress within the annual 
     budget submission.
       ``(e) Supplemental Appropriations.--Supplemental 
     appropriations enacted to meet increased pay costs 
     attributable to school level personnel shall be distributed 
     under this section.
       ``(f) Eligible Indian Student Defined.--In this section, 
     the term `eligible Indian student' means a student who--
       ``(1) is a member of, or is at least \1/4\ degree Indian 
     blood descendant of a member of, a tribe that is eligible for 
     the special programs and services provided by the United 
     States through the Bureau to Indians because of their status 
     as Indians;
       ``(2) resides on or near a reservation or meets the 
     criteria for attendance at a Bureau off-reservation home-
     living school; and
       ``(3) is enrolled in a Bureau-funded school.
       ``(g) Tuition.--
       ``(1) In general.--No eligible Indian student or a student 
     attending a Bureau school under paragraph (2)(C) may be 
     charged tuition for attendance at a Bureau school or contract 
     or grant school.
       ``(2) Attendance of non-indian students at bureau 
     schools.--The Secretary may permit the attendance at a Bureau 
     school of a student who is not an eligible Indian student 
     if--
       ``(A) the Secretary determines that the student's 
     attendance will not adversely affect the school's program for 
     eligible Indian students because of cost, overcrowding, or 
     violation of standards or accreditation;
       ``(B) the school board consents;
       ``(C) the student is a dependent of a Bureau, Indian Health 
     Service, or tribal government employee who lives on or near 
     the school site; or
       ``(D) tuition is paid for the student that is not more than 
     the tuition charged by the nearest public school district for 
     out-of-district students and shall be in addition to the 
     school's allocation under this section.
       ``(3) Attendance of non-indian students at contract and 
     grant schools.--The school board of a contract or grant 
     school may permit students who are not eligible Indian 
     students under this subsection to attend its contract school 
     or grant school. Any tuition collected for those students 
     shall be in addition to funding received under this section.
       ``(h) Funds Available Without Fiscal Year Limitation.--
     Notwithstanding any other provision of law, at the election 
     of the school board of a Bureau school made at any time 
     during the fiscal year, a portion equal to not more than 15 
     percent of the funds allocated with respect to a school under 
     this section for any fiscal year shall remain available to 
     the school for expenditure without fiscal year limitation. 
     The Assistant Secretary shall take such steps as are 
     necessary to implement this subsection.
       ``(i) Students at Richfield Dormitory, Richfield, Utah.--
       ``(1) In general.--Tuition for the instruction of each out-
     of-State Indian student in a home-living situation at the 
     Richfield dormitory in Richfield, Utah, who attends Sevier 
     County high schools in Richfield, Utah, for an academic year, 
     shall be paid from Indian school equalization program funds 
     authorized in this section and section 1129, at a rate not to 
     exceed the weighted amount provided for under subsection (b) 
     for a student for that year.
       ``(2) No administrative cost funds.--No additional 
     administrative cost funds shall be provided under this part 
     to pay for administrative costs relating to the instruction 
     of the students.

     ``SEC. 1128. ADMINISTRATIVE COST GRANTS.

       ``(a) Definitions.--In this section:
       ``(1) Administrative cost.--
       ``(A) In general.--The term `administrative cost' means the 
     cost of necessary administrative functions which--
       ``(i) the tribe or tribal organization incurs as a result 
     of operating a tribal elementary or secondary educational 
     program;
       ``(ii) are not customarily paid by comparable Bureau-
     operated programs out of direct program funds; and
       ``(iii) are either--

       ``(I) normally provided for comparable Bureau programs by 
     Federal officials using resources other than Bureau direct 
     program funds; or
       ``(II) are otherwise required of tribal self-determination 
     program operators by law or prudent management practice.

       ``(B) Inclusions.--The term `administrative cost' may 
     include--

[[Page 25787]]

       ``(i) contract or grant (or other agreement) 
     administration;
       ``(ii) executive, policy, and corporate leadership and 
     decisionmaking;
       ``(iii) program planning, development, and management;
       ``(iv) fiscal, personnel, property, and procurement 
     management;
       ``(v) related office services and record keeping; and
       ``(vi) costs of necessary insurance, auditing, legal, 
     safety and security services.
       ``(2) Bureau elementary and secondary functions.--The term 
     `Bureau elementary and secondary functions' means--
       ``(A) all functions funded at Bureau schools by the Office;
       ``(B) all programs--
       ``(i) funds for which are appropriated to other agencies of 
     the Federal Government; and
       ``(ii) which are administered for the benefit of Indians 
     through Bureau schools; and
       ``(C) all operation, maintenance, and repair funds for 
     facilities and government quarters used in the operation or 
     support of elementary and secondary education functions for 
     the benefit of Indians, from whatever source derived.
       ``(3) Direct cost base.--
       ``(A) In general.--Except as otherwise provided in 
     subparagraph (B), the direct cost base of a tribe or tribal 
     organization for the fiscal year is the aggregate direct cost 
     program funding for all tribal elementary or secondary 
     educational programs operated by the tribe or tribal 
     organization during--
       ``(i) the second fiscal year preceding such fiscal year; or
       ``(ii) if such programs have not been operated by the tribe 
     or tribal organization during the two preceding fiscal years, 
     the first fiscal year preceding such fiscal year.
       ``(B) Functions not previously operated.--In the case of 
     Bureau elementary or secondary education functions which have 
     not previously been operated by a tribe or tribal 
     organization under contract, grant, or agreement with the 
     Bureau, the direct cost base for the initial year shall be 
     the projected aggregate direct cost program funding for all 
     Bureau elementary and secondary functions to be operated by 
     the tribe or tribal organization during that fiscal year.
       ``(4) Maximum base rate.--The term `maximum base rate' 
     means 50 percent.
       ``(5) Minimum base rate.--The term `minimum base rate' 
     means 11 percent.
       ``(6) Standard direct cost base.--The term `standard direct 
     cost base' means $600,000.
       ``(7) Tribal elementary or secondary educational 
     programs.--The term `tribal elementary or secondary 
     educational programs' means all Bureau elementary and 
     secondary functions, together with any other Bureau programs 
     or portions of programs (excluding funds for social services 
     that are appropriated to agencies other than the Bureau and 
     are funded through the Bureau, funds for major subcontracts, 
     construction, and other major capital expenditures, and 
     unexpended funds carried over from prior years) which share 
     common administrative cost functions, that are operated 
     directly by a tribe or tribal organization under a contract, 
     grant, or agreement with the Bureau.
       ``(b) Grants; Effect Upon Appropriated Amounts.--
       ``(1) Grants.--Subject to the availability of funds, the 
     Secretary shall provide grants to each tribe or tribal 
     organization operating a contract school or grant school in 
     the amount determined under this section with respect to the 
     tribe or tribal organization for the purpose of paying the 
     administrative and indirect costs incurred in operating 
     contract or grant schools, provided that no school operated 
     as a stand-alone institution shall receive less than $200,000 
     per year for these purposes, in order to--
       ``(A) enable tribes and tribal organizations operating such 
     schools, without reducing direct program services to the 
     beneficiaries of the program, to provide all related 
     administrative overhead services and operations necessary to 
     meet the requirements of law and prudent management practice; 
     and
       ``(B) carry out other necessary support functions which 
     would otherwise be provided by the Secretary or other Federal 
     officers or employees, from resources other than direct 
     program funds, in support of comparable Bureau-operated 
     programs.
       ``(2) Effect upon appropriated amounts.--Amounts 
     appropriated to fund the grants provided under this section 
     shall be in addition to, and shall not reduce, the amounts 
     appropriated for the program being administered by the 
     contract or grant school.
       ``(c) Determination of Grant Amount.--
       ``(1) In general.--The amount of the grant provided to each 
     tribe or tribal organization under this section for each 
     fiscal year shall be determined by applying the 
     administrative cost percentage rate of the tribe or tribal 
     organization to the aggregate of the Bureau elementary and 
     secondary functions operated by the tribe or tribal 
     organization for which funds are received from or through the 
     Bureau.
       ``(2) Direct cost base funds.--The Secretary shall--
       ``(A) reduce the amount of the grant determined under 
     paragraph (1) to the extent that payments for administrative 
     costs are actually received by an Indian tribe or tribal 
     organization under any Federal education program included in 
     the direct cost base of the tribe or tribal organization; and
       ``(B) take such actions as may be necessary to be 
     reimbursed by any other department or agency of the Federal 
     Government for the portion of grants made under this section 
     for the costs of administering any program for Indians that 
     is funded by appropriations made to such other department or 
     agency.
       ``(d) Administrative Cost Percentage Rate.--
       ``(1) In general.--For purposes of this section, the 
     administrative cost percentage rate for a contract or grant 
     school for a fiscal year is equal to the percentage 
     determined by dividing--
       ``(A) the sum of--
       ``(i) the amount equal to--

       ``(I) the direct cost base of the tribe or tribal 
     organization for the fiscal year, multiplied by
       ``(II) the minimum base rate; plus

       ``(ii) the amount equal to--

       ``(I) the standard direct cost base; multiplied by
       ``(II) the maximum base rate; by

       ``(B) the sum of--
       ``(i) the direct cost base of the tribe or tribal 
     organization for the fiscal year; plus
       ``(ii) the standard direct cost base.
       ``(2) Rounding.--The administrative cost percentage rate 
     shall be determined to the \1/100\ of a decimal point.
       ``(3) Applicability.--The administrative cost percentage 
     rate determined under this subsection shall not apply to 
     other programs operated by the tribe or tribal organization.
       ``(e) Combining Funds.--
       ``(1) In general.--Funds received by a tribe or contract or 
     grant school as grants under this section for tribal 
     elementary or secondary educational programs may be combined 
     by the tribe or contract or grant school into a single 
     administrative cost account without the necessity of 
     maintaining separate funding source accounting.
       ``(2) Indirect cost funds.--Indirect cost funds for 
     programs at the school which share common administrative 
     services with tribal elementary or secondary educational 
     programs may be included in the administrative cost account 
     described in paragraph (1).
       ``(f) Availability of Funds.--Funds received as grants 
     under this section with respect to tribal elementary or 
     secondary education programs shall remain available to the 
     contract or grant school without fiscal year limitation and 
     without diminishing the amount of any grants otherwise 
     payable to the school under this section for any fiscal year 
     beginning after the fiscal year for which the grant is 
     provided.
       ``(g) Treatment of Funds.--Funds received as grants under 
     this section for Bureau-funded programs operated by a tribe 
     or tribal organization under a contract or agreement shall 
     not be taken into consideration for purposes of indirect cost 
     underrecovery and overrecovery determinations by any Federal 
     agency for any other funds, from whatever source derived.
       ``(h) Treatment of Entity Operating Other Programs.--In 
     applying this section and section 106 of the Indian Self-
     Determination and Education Assistance Act with respect to an 
     Indian tribe or tribal organization that--
       ``(1) receives funds under this section for administrative 
     costs incurred in operating a contract or grant school or a 
     school operated under the Tribally Controlled Schools Act of 
     1988; and
       ``(2) operates 1 or more other programs under a contract or 
     grant provided under the Indian Self-Determination and 
     Education Assistance Act,

     the Secretary shall ensure that the Indian tribe or tribal 
     organization is provided with the full amount of the 
     administrative costs that are associated with operating the 
     contract or grant school, and of the indirect costs, that are 
     associated with all of such other programs, except that funds 
     appropriated for implementation of this section shall be used 
     only to supply the amount of the grant required to be 
     provided by this section.
       ``(i) Studies for Determination of Factors Affecting Costs; 
     Base Rates Limits; Standard Direct Cost Base; Report to 
     Congress.--
       ``(1) Studies.--Not later than 120 days after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, the Director of the Office of Indian Education Programs 
     shall--
       ``(A) conduct such studies as may be needed to establish an 
     empirical basis for determining relevant factors 
     substantially affecting required administrative costs of 
     tribal elementary and secondary education programs, using the 
     formula set forth in subsection (c); and
       ``(B) conduct a study to determine--
       ``(i) a maximum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the smallest tribal elementary or secondary educational 
     programs;
       ``(ii) a minimum base rate which ensures that the amount of 
     the grants provided under this section will provide adequate 
     (but not excessive) funding of the administrative costs of 
     the largest tribal elementary or secondary educational 
     programs; and
       ``(iii) a standard direct cost base which is the aggregate 
     direct cost funding level for which the percentage determined 
     under subsection (d) will--
       ``(I) be equal to the median between the maximum base rate 
     and the minimum base rate; and
       ``(II) ensure that the amount of the grants provided under 
     this section will provide adequate (but not excessive) 
     funding of the administrative costs of tribal elementary or 
     secondary educational programs closest to the size of the 
     program.
       ``(2) Guidelines.--The studies required under paragraph (1) 
     shall--

[[Page 25788]]

       ``(A) be conducted in full consultation (in accordance with 
     section 1131) with--
       ``(i) the tribes and tribal organizations that are affected 
     by the application of the formula set forth in subsection 
     (c); and
       ``(ii) all national and regional Indian organizations of 
     which such tribes and tribal organizations are typically 
     members;
       ``(B) be conducted onsite with a representative statistical 
     sample of the tribal elementary or secondary educational 
     programs under a contract entered into with a nationally 
     reputable public accounting and business consulting firm;
       ``(C) take into account the availability of skilled labor 
     commodities, business and automatic data processing services, 
     related Indian preference and Indian control of education 
     requirements, and any other market factors found to 
     substantially affect the administrative costs and efficiency 
     of each such tribal elementary or secondary educational 
     program studied in order to ensure that all required 
     administrative activities can reasonably be delivered in a 
     cost effective manner for each such program, given an 
     administrative cost allowance generated by the values, 
     percentages, or other factors found in the studies to be 
     relevant in such formula;
       ``(D) identify, and quantify in terms of percentages of 
     direct program costs, any general factors arising from 
     geographic isolation, or numbers of programs administered, 
     independent of program size factors used to compute a base 
     administrative cost percentage in such formula; and
       ``(E) identify any other incremental cost factors 
     substantially affecting the costs of required administrative 
     cost functions at any of the tribal elementary or secondary 
     educational programs studied and determine whether the 
     factors are of general applicability to other such programs, 
     and (if so) how the factors may effectively be incorporated 
     into such formula.
       ``(3) Consultation with inspector general.--In carrying out 
     the studies required under this subsection, the Director 
     shall obtain the input of, and afford an opportunity to 
     participate to, the Inspector General of the Department of 
     the Interior.
       ``(4) Consideration of delivery of administrative 
     services.--Determinations described in paragraph (2)(C) shall 
     be based on what is practicable at each location studied, 
     given prudent management practice, irrespective of whether 
     required administrative services were actually or fully 
     delivered at these sites, or whether other services were 
     delivered instead, during the period of the study.
       ``(5) Report.--Upon completion of the studies conducted 
     under paragraph (1), the Director shall submit to Congress a 
     report on the findings of the studies, together with 
     determinations based upon such studies that would affect the 
     definitions set forth under subsection (e) that are used in 
     the formula set forth in subsection (c).
       ``(6) Projection of costs.--The Secretary shall include in 
     the Bureau's justification for each appropriations request 
     beginning in the first fiscal year after the completion of 
     the studies conducted under paragraph (1), a projection of 
     the overall costs associated with the formula set forth in 
     subsection (c) for all tribal elementary or secondary 
     education programs which the Secretary expects to be funded 
     in the fiscal year for which the appropriations are sought.
       ``(7) Determination of program size.--For purposes of this 
     subsection, the size of tribal elementary or secondary 
     educational programs is determined by the aggregate direct 
     cost program funding level for all Bureau-funded programs 
     which share common administrative cost functions.
       ``(j) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary.
       ``(2) Reductions.--If the total amount of funds necessary 
     to provide grants to tribes and tribal organizations in the 
     amounts determined under subsection (c) for a fiscal year 
     exceeds the amount of funds appropriated to carry out this 
     section for such fiscal year, the Secretary shall reduce the 
     amount of each grant determined under subsection (c) for such 
     fiscal year by an amount that bears the same relationship to 
     such excess as the amount of such grants determined under 
     subsection (c) bears to the total of all grants determined 
     under subsection (c) section for all tribes and tribal 
     organizations for such fiscal year.
       ``(k) Applicability to Schools Operating Under Tribally 
     Controlled Schools Act of 1988.--The provisions of this 
     section shall apply to schools operating under the Tribally 
     Controlled Schools Act of 1988.
       ``(l) Administrative Cost Grant Budget Requests.--
       ``(1) In general.--Beginning with President's annual budget 
     request under section 1105 of title 31, United States Code 
     for fiscal year 2002, and with respect to each succeeding 
     budget request, at the discretion of the Secretary, the 
     Secretary shall submit to the appropriate committees of 
     Congress information and funding requests for the full 
     funding of administrative costs grants required to be paid 
     under this section.
       ``(2) Requirements.--
       ``(A) Funding for new conversions to contract or grant 
     school operations.--With respect to a budget request under 
     paragraph (1), the amount required to provide full funding 
     for an administrative cost grant for each tribe or tribal 
     organization expected to begin operation of a Bureau-funded 
     school as contract or grant school in the academic year 
     funded by such annual budget request, the amount so required 
     shall not be less than 10 percent of the amount required for 
     subparagraph (B).
       ``(B) Funding for continuing contract and grant school 
     operations.--With respect to a budget request under paragraph 
     (1), the amount required to provide full funding for an 
     administrative cost grant for each tribe or tribal 
     organization operating a contract or grant school at the time 
     the annual budget request is submitted, which amount shall 
     include the amount of funds required to provide full funding 
     for an administrative cost grant for each tribe or tribal 
     organization which began operation of a contract or grant 
     school with administrative cost grant funds supplied from the 
     amount described in subparagraph (A).

     ``SEC. 1129. DIVISION OF BUDGET ANALYSIS.

       ``(a) Establishment.--Not later than 1 year after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Secretary shall establish within the Office of 
     Indian Education Programs a Division of Budget Analysis 
     (hereafter in this section referred to as the `Division'). 
     Such Division shall be under the direct supervision and 
     control of the Director of the Office.
       ``(b) Functions.--In consultation with the tribal governing 
     bodies and tribal school boards, the Director of the Office, 
     through the Division, shall conduct studies, surveys, or 
     other activities to gather demographic information on Bureau-
     funded schools and project the amount necessary to provide 
     Indian students in such schools the educational program set 
     forth in this part.
       ``(c) Annual Reports.--Not later than the date on which the 
     Assistant Secretary for Indian Affairs makes the annual 
     budget submission, for each fiscal year after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, the Director of the Office shall submit to the 
     appropriate committees of Congress (including the 
     Appropriations committees), all Bureau-funded schools, and 
     the tribal governing bodies of such schools, a report that 
     contains--
       ``(1) projections, based upon the information gathered 
     pursuant to subsection (b) and any other relevant 
     information, of amounts necessary to provide Indian students 
     in Bureau-funded schools the educational program set forth in 
     this part;
       ``(2) a description of the methods and formulas used to 
     calculate the amounts projected pursuant to paragraph (1); 
     and
       ``(3) such other information as the Director of the Office 
     considers appropriate.
       ``(d) Use of Reports.--The Director of the Office and the 
     Assistant Secretary for Indian Affairs shall use the annual 
     report required by subsection (c) when preparing annual 
     budget submissions.

     ``SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

       ``(a) Establishment of System and Forward Funding.--
       ``(1) In general.--The Secretary shall establish, by 
     regulation adopted in accordance with section 1136, a system 
     for the direct funding and support of all Bureau-funded 
     schools. Such system shall allot funds in accordance with 
     section 1127. All amounts appropriated for distribution in 
     accordance with this section shall be made available in 
     accordance with paragraph (2).
       ``(2) Timing for use of funds.--
       ``(A) Availability.--For the purposes of affording adequate 
     notice of funding available pursuant to the allotments made 
     under section 1127 and the allotments of funds for operation 
     and maintenance of facilities, amounts appropriated in an 
     appropriations Act for any fiscal year for such allotments--
       ``(i) shall become available for obligation by the affected 
     schools on July 1 of the fiscal year for which such 
     allotments are appropriated without further action by the 
     Secretary; and
       ``(ii) shall remain available for obligation through the 
     succeeding fiscal year.
       ``(B) Publications.--The Secretary shall, on the basis of 
     the amounts appropriated as described in this paragraph--
       ``(i) publish, not later than July 1 of the fiscal year for 
     which the amounts are appropriated, information indicating 
     the amount of the allotments to be made to each affected 
     school under section 1127, of 80 percent of such appropriated 
     amounts; and
       ``(ii) publish, not later than September 30 of such fiscal 
     year, information indicating the amount of the allotments to 
     be made under section 1127, from the remaining 20 percent of 
     such appropriated amounts, adjusted to reflect the actual 
     student attendance.
       ``(C) Overpayments.--Any overpayments made to tribal 
     schools shall be returned to the Secretary not later than 30 
     days after the final determination that the school was 
     overpaid pursuant to this section.
       ``(3) Limitation.--
       ``(A) Expenditures.--Notwithstanding any other provision of 
     law (including a regulation), the supervisor of a Bureau-
     operated school may expend an aggregate of not more than 
     $50,000 of the amount allotted to the school under section 
     1127 to acquire materials, supplies, equipment, operation 
     services, maintenance services, and other services for the 
     school, and amounts received as operations and maintenance 
     funds, funds received from the Department of Education, or 
     funds received from other Federal sources, without 
     competitive bidding if--
       ``(i) the cost for any single item acquired does not exceed 
     $15,000;
       ``(ii) the school board approves the acquisition;
       ``(iii) the supervisor certifies that the cost is fair and 
     reasonable;
       ``(iv) the documents relating to the acquisition executed 
     by the supervisor of the school or other

[[Page 25789]]

     school staff cite this paragraph as authority for the 
     acquisition; and
       ``(v) the acquisition transaction is documented in a 
     journal maintained at the school that clearly identifies when 
     the transaction occurred, the item that was acquired and from 
     whom, the price paid, the quantities acquired, and any other 
     information the supervisor or the school board considers to 
     be relevant.
       ``(B) Notice.--Not later than 6 months after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, the Secretary shall send notice of the provisions of 
     this paragraph to each supervisor of a Bureau school and 
     associated school board chairperson, the education line 
     officer of each agency and area, and the Bureau division in 
     charge of procurement, at both the local and national levels.
       ``(C) Application and guidelines.--The Director of the 
     Office shall be responsible for--
       ``(i) determining the application of this paragraph, 
     including the authorization of specific individuals to carry 
     out this paragraph;
       ``(ii) ensuring that there is at least 1 such individual at 
     each Bureau facility; and
       ``(iii) the provision of guidelines on the use of this 
     paragraph and adequate training on such guidelines.
       ``(4) Effect of sequestration order.--If a sequestration 
     order issued under the Balanced Budget and Emergency Deficit 
     Control Act of 1985 reduces the amount of funds available for 
     allotment under section 1127 for any fiscal year by more than 
     7 percent of the amount of funds available for allotment 
     under such section during the preceding fiscal year--
       ``(A) to fund allotments under section 1127, the Secretary, 
     notwithstanding any other law, may use--
       ``(i) funds appropriated for the operation of any Bureau-
     funded school that is closed or consolidated; and
       ``(ii) funds appropriated for any program that has been 
     curtailed at any Bureau school; and
       ``(B) the Secretary may waive the application of the 
     provisions of section 1121(h) with respect to the closure or 
     consolidation of a school, or the curtailment of a program at 
     a school, during such fiscal year if the funds described in 
     clauses (i) and (ii) of subparagraph (A) with respect to such 
     school are used to fund allotments made under section 1127 
     for such fiscal year.
       ``(b) Local Financial Plans for Expenditure of Funds.--
       ``(1) Plan required.--Each Bureau-operated school that 
     receives an allotment under section 1127 shall prepare a 
     local financial plan that specifies the manner in which the 
     school will expend the funds made available under the 
     allotment and ensures that the school will meet the 
     accreditation requirements or standards for the school 
     pursuant to section 1121.
       ``(2) Requirement.--A local financial plan under paragraph 
     (1) shall comply with all applicable Federal and tribal laws.
       ``(3) Preparation and revision.--
       ``(A) In general.--The financial plan for a school under 
     subparagraph (A) shall be prepared by the supervisor of the 
     school in active consultation with the local school board for 
     the school.
       ``(B) Authority of school board.--The local school board 
     for each school shall have the authority to ratify, reject, 
     or amend such financial plan and, at the initiative of the 
     local school board or in response to the supervisor of the 
     school, to revise such financial plan to meet needs not 
     foreseen at the time of preparation of the financial plan.
       ``(4) Role of supervisor.--The supervisor of the school--
       ``(A) shall implement the decisions of the school board 
     relating to the financial plan under paragraph (1);
       ``(B) shall provide the appropriate local union 
     representative of the education employees of the school with 
     copies of proposed financial plans relating to the school and 
     all modifications and proposed modifications to the plans, 
     and at the same time submit such copies to the local school 
     board; and
       ``(C) may appeal any such action of the local school board 
     to the appropriate education line officer of the Bureau 
     agency by filing a written statement describing the action 
     and the reasons the supervisor believes such action should be 
     overturned.
       ``(5) Statements.--
       ``(A) In general.--A copy of each statement filed under 
     paragraph (4)(C) shall be submitted to the local school board 
     and such board shall be afforded an opportunity to respond, 
     in writing, to such appeal.
       ``(B) Overturned actions.--After reviewing such written 
     appeal and response, the appropriate education line officer 
     may, for good cause, overturn the action of the local school 
     board.
       ``(C) Transmission of determination.--The appropriate 
     education line officer shall transmit the determination of 
     such appeal in the form of a written opinion to such board 
     and to such supervisor identifying the reasons for 
     overturning such action.
       ``(c) Tribal Division of Education, Self-Determination 
     Grant and Contract Funds.--The Secretary may approve 
     applications for funding tribal divisions of education and 
     developing tribal codes of education, from funds made 
     available pursuant to section 103(a) of the Indian Self-
     Determination and Education Assistance Act.
       ``(d) Technical Assistance and Training.--In carrying out 
     this section, a local school board may request technical 
     assistance and training from the Secretary, and the Secretary 
     shall, to the maximum extent practicable, provide those 
     services and make appropriate provisions in the budget of the 
     Office for the provision of those services.
       ``(e) Summer Program of Academic and Support Services.--
       ``(1) Plan.--
       ``(A) In general.--A financial plan under subsection (b) 
     for a school may include, at the discretion of the local 
     administrator and the school board of such school, a 
     provision for a summer program of academic and support 
     services for students of the school.
       ``(B) Prevention activities.--Any such program may include 
     activities related to the prevention of alcohol and substance 
     abuse.
       ``(C) Summer use.--The Assistant Secretary for Indian 
     Affairs shall provide for the use of any such school facility 
     during any summer in which such use is requested.
       ``(2) Use of other funds.--Notwithstanding any other 
     provision of law, funds authorized under the Act of April 16, 
     1934, and this Act may be used to augment the services 
     provided in each summer program at the option, and under the 
     control, of the tribe or Indian controlled school receiving 
     such funds.
       ``(3) Technical assistance and program coordination.--The 
     Assistant Secretary for Indian Affairs, acting through the 
     Director of the Office, shall--
       ``(A) provide technical assistance and coordination for any 
     program described in paragraph (1); and
       ``(B) to the extent practicable, encourage the coordination 
     of such programs with any other summer programs that might 
     benefit Indian youth, regardless of the funding source or 
     administrative entity of any such program.
       ``(f) Cooperative Agreements.--
       ``(1) Implementation.--
       ``(A) In general.--From funds allotted to a Bureau school 
     under section 1127, the Secretary shall, if specifically 
     requested by the appropriate tribal governing body, implement 
     a cooperative agreement that is entered into between the 
     tribe, the Bureau, the local school board, and a local public 
     school district that meets the requirements of paragraph (2) 
     and involves the school.
       ``(B) Terms.--The tribe, the Bureau, the school board, and 
     the local public school district shall determine the terms of 
     an agreement entered into under subparagraph (A).
       ``(2) Coordination provisions.--An agreement under 
     paragraph (1) may, with respect to the Bureau school and 
     schools in the school district involved, encompass 
     coordination of all or any part of the following:
       ``(A) The academic program and curriculum, unless the 
     Bureau school is accredited by a State or regional 
     accrediting entity and would not continue to be so accredited 
     if the agreement encompassed the program and curriculum.
       ``(B) Support services, including procurement and 
     facilities maintenance.
       ``(C) Transportation.
       ``(3) Equal benefit and burden.--
       ``(A) In general.--Each agreement entered into under 
     paragraph (1) shall confer a benefit upon the Bureau school 
     commensurate with the burden assumed by the school.
       ``(B) Limitation.--Subparagraph (A) shall not be construed 
     to require equal expenditures, or an exchange of similar 
     services, by the Bureau school and schools in the school 
     district.
       ``(g) Product or Result of Student Projects.--
     Notwithstanding any other provision of law, in a case in 
     which there is agreement on action between the superintendent 
     and the school board of a Bureau-funded school, the product 
     or result of a project conducted in whole or in major part by 
     a student may be given to that student upon the completion of 
     such project.
       ``(h) Matching Fund Requirements.--
       ``(1) Not considered federal funds.--Notwithstanding any 
     other provision of law, funds received by a Bureau-funded 
     school under this title for education-related activities (not 
     including funds for construction, maintenance, and facilities 
     improvement or repair) shall not be considered Federal funds 
     for the purposes of a matching funds requirement for any 
     Federal program.
       ``(2) Limitation.--In considering an application from a 
     Bureau-funded school for participation in a program or 
     project that requires matching funds, the entity 
     administering such program or project or awarding such grant 
     shall not give positive or negative weight to such 
     application based solely on the provisions of paragraph (1).

     ``SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

       ``(a) Facilitation of Indian Control.--It shall be the 
     policy of the United States acting through the Secretary, in 
     carrying out the functions of the Bureau, to facilitate 
     Indian control of Indian affairs in all matters relating to 
     education.
       ``(b) Consultation With Tribes.--
       ``(1) In general.--All actions under this Act shall be done 
     with active consultation with tribes. The United States 
     acting through the Secretary, and tribes shall work in a 
     government-to-government relationship to ensure quality 
     education for all tribal members.
       ``(2) Requirements.--
       ``(A) Definition of consultation.--In this subsection, the 
     term `consultation' means a process involving the open 
     discussion and joint deliberation of all options with respect 
     to potential issues or changes between the Bureau and all 
     interested parties.
       ``(B) Discussion and joint deliberation.--During 
     discussions and joint deliberations, interested parties 
     (including tribes and school officials) shall be given an 
     opportunity--

[[Page 25790]]

       ``(i) to present issues (including proposals regarding 
     changes in current practices or programs) that will be 
     considered for future action by the Secretary; and
       ``(ii) to participate and discuss the options presented, or 
     to present alternatives, with the views and concerns of the 
     interested parties given effect unless the Secretary 
     determines, from information available from or presented by 
     the interested parties during 1 or more of the discussions 
     and deliberations, that there is a substantial reason for 
     another course of action.
       ``(C) Explanation by secretary.--The Secretary shall submit 
     to any Member of Congress, within 18 days of the receipt of a 
     written request by such Member, a written explanation of any 
     decision made by the Secretary which is not consistent with 
     the views of the interested parties described in subparagraph 
     (B).

     ``SEC. 1132. INDIAN EDUCATION PERSONNEL.

       ``(a) In General.--Chapter 51, subchapter III of chapter 
     53, and chapter 63 of title 5, United States Code, relating 
     to classification, pay and leave, respectively, and the 
     sections of such title relating to the appointment, 
     promotion, hours of work, and removal of civil service 
     employees, shall not apply to educators or to education 
     positions (as defined in subsection (p)).
       ``(b) Regulations.--Not later than 60 days after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Secretary shall prescribe regulations to carry 
     out this section. Such regulations shall provide for--
       ``(1) the establishment of education positions;
       ``(2) the establishment of qualifications for educators and 
     education personnel;
       ``(3) the fixing of basic compensation for educators and 
     education positions;
       ``(4) the appointment of educators;
       ``(5) the discharge of educators;
       ``(6) the entitlement of educators to compensation;
       ``(7) the payment of compensation to educators;
       ``(8) the conditions of employment of educators;
       ``(9) the leave system for educators;
       ``(10) the annual leave and sick leave for educators;
       ``(11) the length of the school year applicable to 
     education positions described in subsection (a); and
       ``(12) such additional matters as may be appropriate.
       ``(c) Qualifications of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the qualifications of educators, the Secretary shall require 
     that--
       ``(A) lists of qualified and interviewed applicants for 
     education positions be maintained in each agency and area 
     office of the Bureau from among individuals who have applied 
     at the agency or area level for an education position or who 
     have applied at the national level and have indicated in such 
     application an interest in working in certain areas or 
     agencies;
       ``(B) a local school board shall have the authority to 
     waive on a case-by-case basis, any formal education or degree 
     qualifications established by regulation pursuant to 
     subsection (b)(2), in order for a tribal member to be hired 
     in an education position to teach courses on tribal culture 
     and language and that subject to subsection (e)(2), a 
     determination by a school board that such a person be hired 
     shall be instituted by the supervisor of the school involved; 
     and
       ``(C) that it shall not be a prerequisite to the employment 
     of an individual in an education position at the local level 
     that--
       ``(i) such individual's name appear on a list maintained 
     pursuant to subparagraph (A); or
       ``(ii) such individual have applied at the national level 
     for an education position.
       ``(2) Exception for certain temporary employment.--The 
     Secretary may authorize the temporary employment in an 
     education position of an individual who has not met the 
     certification standards established pursuant to regulations 
     if the Secretary determines that failure to do so would 
     result in that position remaining vacant.
       ``(d) Hiring of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the appointment of educators, the Secretary shall require--
       ``(A)(i)(I) that educators employed in a Bureau school 
     (other than the supervisor of the school) shall be hired by 
     the supervisor of the school; and
       ``(II) in a case in which there are no qualified applicants 
     available to fill a vacancy at a Bureau school, the 
     supervisor may consult a list maintained pursuant to 
     subsection (c)(1)(A);
       ``(ii) each supervisor of a Bureau school shall be hired by 
     the education line officer of the agency office of the Bureau 
     for the jurisdiction in which the school is located;
       ``(iii) each educator employed in an agency office of the 
     Bureau shall be hired by the superintendent for education of 
     the agency office; and
       ``(iv) each education line officer and educator employed in 
     the office of the Director of the Office shall be hired by 
     the Director;
       ``(B)(i) before an individual is employed in an education 
     position in a Bureau school by the supervisor of the school 
     (or, with respect to the position of supervisor, by the 
     appropriate agency education line officer), the local school 
     board for the school shall be consulted; and
       ``(ii) that a determination by such school board, as 
     evidenced by school board records, that such individual 
     should or should not be so employed shall be instituted by 
     the supervisor (or with respect to the position of 
     supervisor, by the superintendent for education of the agency 
     office);
       ``(C)(i) before an individual is employed in an education 
     position in an agency or area office of the Bureau, the 
     appropriate agency school board shall be consulted; and
       ``(ii) a determination by such school board, as evidenced 
     by school board records, that such individual should or 
     should not be employed shall be instituted by the 
     superintendent for education of the agency office; and
       ``(D) all employment decisions or actions be in compliance 
     with all applicable Federal, State and tribal laws.
       ``(2) Information regarding application at national 
     level.--
       ``(A) In general.--Any individual who applies at the local 
     level for an education position shall state on such 
     individual's application whether or not such individual has 
     applied at the national level for an education position in 
     the Bureau.
       ``(B) Determination of accuracy.--If such individual is 
     employed at the local level, such individual's name shall be 
     immediately forwarded to the Secretary, who shall, as soon as 
     practicable but in no event in more than 30 days, ascertain 
     the accuracy of the statement made by such individual 
     pursuant to subparagraph (A).
       ``(C) False statements.--Notwithstanding subsection (e), if 
     the individual's statement is found to have been false, such 
     individual, at the Secretary's discretion, may be disciplined 
     or discharged.
       ``(D) Conditional appointment for national provision.--If 
     the individual has applied at the national level for an 
     education position in the Bureau, the appointment of such 
     individual at the local level shall be conditional for a 
     period of 90 days, during which period the Secretary may 
     appoint a more qualified individual (as determined by the 
     Secretary) from the list maintained at the national level 
     pursuant to subsection (c)(1)(A)(ii) to the position to which 
     such individual was appointed.
       ``(3) Statutory construction.--Except as expressly 
     provided, nothing in this section shall be construed as 
     conferring upon local school boards authority over, or 
     control of, educators at Bureau-funded schools or the 
     authority to issue management decisions.
       ``(4) Appeals.--
       ``(A) By supervisor.--
       ``(i) In general.--The supervisor of a school may appeal to 
     the appropriate agency education line officer any 
     determination by the local school board for the school that 
     an individual be employed, or not be employed, in an 
     education position in the school (other than that of 
     supervisor) by filing a written statement describing the 
     determination and the reasons the supervisor believes such 
     determination should be overturned.
       ``(ii) Action by board.--A copy of such statement shall be 
     submitted to the local school board and such board shall be 
     afforded an opportunity to respond, in writing, to such 
     appeal.
       ``(iii) Overturning of determination.--After reviewing such 
     written appeal and response, the education line officer may, 
     for good cause, overturn the determination of the local 
     school board.
       ``(iv) Transmission of determination.--The education line 
     officer shall transmit the determination of such appeal in 
     the form of a written opinion to such board and to such 
     supervisor identifying the reasons for overturning such 
     determination.
       ``(B) By education line officer.--
       ``(i) In general.--The education line officer of an agency 
     office of the Bureau may appeal to the Director of the Office 
     any determination by the local school board for the school 
     that an individual be employed, or not be employed, as the 
     supervisor of a school by filing a written statement 
     describing the determination and the reasons the supervisor 
     believes such determination should be overturned.
       ``(ii) Action by board.--A copy of such statement shall be 
     submitted to the local school board and such board shall be 
     afforded an opportunity to respond, in writing, to such 
     appeal.
       ``(iii) Overturning of determination.--After reviewing such 
     written appeal and response, the Director may, for good 
     cause, overturn the determination of the local school board.
       ``(iv) Transmission of determination.--The Director shall 
     transmit the determination of such appeal in the form of a 
     written opinion to such board and to such education line 
     officer identifying the reasons for overturning such 
     determination.
       ``(5) Other appeals.--
       ``(A) In general.--The education line officer of an agency 
     office of the Bureau may appeal to the Director of the Office 
     any determination by the agency school board that an 
     individual be employed, or not be employed, in an education 
     position in such agency office by filing a written statement 
     describing the determination and the reasons the supervisor 
     believes such determination should be overturned.
       ``(B) Action by board.--A copy of such statement shall be 
     submitted to the agency school board and such board shall be 
     afforded an opportunity to respond, in writing, to such 
     appeal.
       ``(C) Overturning of determination.--After reviewing such 
     written appeal and response, the Director may, for good 
     cause, overturn the determination of the agency school board.
       ``(D) Transmission of determination.--The Director shall 
     transmit the determination of such appeal in the form of a 
     written opinion to such board and to such education line 
     officer identifying the reasons for overturning such 
     determination.

[[Page 25791]]

       ``(e) Discharge and Conditions of Employment of 
     Educators.--
       ``(1) Regulations.--In promulgating regulations to govern 
     the discharge and conditions of employment of educators, the 
     Secretary shall require--
       ``(A) that procedures shall be established for the rapid 
     and equitable resolution of grievances of educators;
       ``(B) that no educator may be discharged without notice of 
     the reasons for the discharge and an opportunity for a 
     hearing under procedures that comport with the requirements 
     of due process; and
       ``(C) that each educator employed in a Bureau school shall 
     be notified 30 days prior to the end of an academic year 
     whether the employment contract of the individual will be 
     renewed for the following year.
       ``(2) Procedures for discharge.--
       ``(A) Determinations.--
       ``(i) In general.--Except as provided in clause (iii), the 
     supervisor of a Bureau school may discharge (subject to 
     procedures established under paragraph (1)(B)) for cause (as 
     determined under regulations prescribed by the Secretary) any 
     educator employed in such school.
       ``(ii) Notification of board.--On giving notice to an 
     educator of the supervisor's intention to discharge the 
     educator, the supervisor shall immediately notify the local 
     school board of the proposed discharge.
       ``(iii) Determination by board.--If the local school board 
     determines that such educator shall not be discharged, that 
     determination shall be followed by the supervisor.
       ``(B) Appeals.--
       ``(i) In general.--The supervisor shall have the right to 
     appeal to the education line officer of the appropriate 
     agency office of the Bureau a determination by a local school 
     board under subparagraph (A)(iii), as evidenced by school 
     board records, not to discharge an educator.
       ``(ii) Decision of agency education line officer.--Upon 
     hearing such an appeal, the agency education line officer 
     may, for good cause, issue a decision overturning the 
     determination of the local school board with respect to the 
     employment of such individual.
       ``(iii) Form of decision.--The education line officer shall 
     make the decision in writing and submit the decision to the 
     local school board.
       ``(3) Recommendations of school boards for discharge.--Each 
     local school board for a Bureau school shall have the right--
       ``(A) to recommend to the supervisor that an educator 
     employed in the school be discharged; and
       ``(B) to recommend to the education line officer of the 
     appropriate agency office of the Bureau and to the Director 
     of the Office, that the supervisor of the school be 
     discharged.
       ``(f) Applicability of Indian Preference Laws.--
       ``(1) Applicability.--
       ``(A) In general.--Notwithstanding any provision of the 
     Indian preference laws, such laws shall not apply in the case 
     of any personnel action carried out under this section with 
     respect to an applicant or employee not entitled to an Indian 
     preference if each tribal organization concerned--
       ``(i) grants a written waiver of the application of those 
     laws with respect to the personnel action; and
       ``(ii) states that the waiver is necessary.
       ``(B) No effect on responsibility of bureau.--This 
     paragraph shall not be construed to relieve the 
     responsibility of the Bureau to issue timely and adequate 
     announcements and advertisements concerning any such 
     personnel action if such action is intended to fill a vacancy 
     (no matter how such vacancy is created).
       ``(2) Definitions.--In this subsection:
       ``(A) Indian preference laws.--
       ``(i) In general.--The term `Indian preference laws' means 
     section 12 of the Act of June 18, 1934 (48 Stat. 986, chapter 
     576) or any other provision of law granting a preference to 
     Indians in promotions and other personnel actions.
       ``(ii) Exclusion.--The term `Indian preference laws' does 
     not include section 7(b) of the Indian Self-Determination and 
     Education Assistance Act.
       ``(B) Tribal organization.--The term `tribal organization' 
     means--
       ``(i) the recognized governing body of any Indian tribe, 
     band, nation, pueblo, or other organized community, including 
     a Native village (as defined in section 3(c) of the Alaska 
     Native Claims Settlement Act); or
       ``(ii) in connection with any personnel action referred to 
     in this subsection, any local school board to which the 
     governing body has delegated the authority to grant a waiver 
     under this subsection with respect to a personnel action.
       ``(g) Compensation or Annual Salary.--
       ``(1) In general.--
       ``(A) Compensation for educators and education positions.--
     Except as otherwise provided in this section, the Secretary 
     shall establish the compensation or annual salary rate for 
     educators and education positions--
       ``(i) at rates in effect under the General Schedule for 
     individuals with comparable qualifications, and holding 
     comparable positions, to whom chapter 51 of title 5, United 
     States Code, is applicable; or
       ``(ii) on the basis of the Federal Wage System schedule in 
     effect for the locality involved, and for the comparable 
     positions, at the rates of compensation in effect for the 
     senior executive service.
       ``(B) Compensation or salary for teachers and counselors.--
       ``(i) In general.--The Secretary shall establish the rate 
     of compensation, or annual salary rate, for the positions of 
     teachers and counselors (including dormitory counselors and 
     home-living counselors) at the rate of compensation 
     applicable (on the date of enactment of the Native American 
     Education Improvement Act of 2001 and thereafter) for 
     comparable positions in the overseas schools under the 
     Defense Department Overseas Teachers Pay and Personnel 
     Practices Act.
       ``(ii) Essential provisions.--The Secretary shall allow the 
     local school boards involved authority to implement only the 
     aspects of the Defense Department Overseas Teachers Pay and 
     Personnel Practices Act pay provisions that are considered 
     essential for recruitment and retention of teachers and 
     counselors. Implementation of such provisions shall not be 
     construed to require the implementation of that entire Act.
       ``(C) Rates for new hires.--
       ``(i) In general.--Beginning with the first fiscal year 
     following the date of enactment of the Native American 
     Education Improvement Act of 2001, each local school board of 
     a Bureau school may establish a rate of compensation or 
     annual salary rate described in clause (ii) for teachers and 
     counselors (including academic counselors) who are new hires 
     at the school and who had not worked at the school, as of the 
     first day of such fiscal year.
       ``(ii) Consistent rates.--The rates established under 
     clause (i) shall be consistent with the rates paid for 
     individuals in the same positions, with the same tenure and 
     training, as the teachers and counselors, in any other school 
     within whose boundaries the Bureau school is located.
       ``(iii) Decreases.--In a case in which the establishment of 
     rates under clause (i) causes a reduction in compensation at 
     a school from the rate of compensation that was in effect for 
     the first fiscal year following the date of enactment of the 
     Native American Education Improvement Act of 2001, the new 
     rates of compensation may be applied to the compensation of 
     employees of the school who worked at the school as of such 
     date of enactment by applying those rates at each contract 
     renewal for the employees so that the reduction takes effect 
     in 3 equal installments.
       ``(iv) Increases.--In a case in which adoption of rates 
     under clause (i) leads to an increase in the payment of 
     compensation from that which was in effect for the fiscal 
     year following the date of enactment of the Native American 
     Education Improvement Act of 2001, the school board may make 
     such rates applicable at the next contract renewal such 
     that--

       ``(I) the increase occurs in its entirety; or
       ``(II) the increase is applied in 3 equal installments.

       ``(D) Use of Regulations; Continued Employment of Certain 
     Educators.--The establishment of rates of basic compensation 
     and annual salary rates under subparagraphs (B) and (C) shall 
     not--
       ``(i) preclude the use of regulations and procedures used 
     by the Bureau prior to April 28, 1988, in making 
     determinations regarding promotions and advancements through 
     levels of pay that are based on the merit, education, 
     experience, or tenure of the educator; or
       ``(ii) affect the continued employment or compensation of 
     an educator who was employed in an education position on 
     October 31, 1979, and who did not make an election under 
     subsection (p) as in effect on January 1, 1990.
       ``(2) Post differential rates.--
       ``(A) In general.--The Secretary may pay a post 
     differential rate, not to exceed 25 percent of the rate of 
     compensation, for educators or education positions, on the 
     basis of conditions of environment or work that warrant 
     additional pay, as a recruitment and retention incentive.
       ``(B) Supervisor's authority.--
       ``(i) In general.--Except as provided in clause (ii), on 
     the request of the supervisor and the local school board of a 
     Bureau school, the Secretary shall grant the supervisor of 
     the school authorization to provide 1 or more post 
     differential rates under subparagraph (A).
       ``(ii) Exception.--The Secretary shall disapprove, or 
     approve with a modification, a request for authorization to 
     provide a post differential rate if the Secretary determines 
     for clear and convincing reasons (and advises the board in 
     writing of those reasons) that the rate should be disapproved 
     or decreased because the disparity of compensation between 
     the appropriate educators or positions in the Bureau school, 
     and the comparable educators or positions at the nearest 
     public school, is--

       ``(I)(aa) at least 5 percent; or
       ``(bb) less than 5 percent; and
       ``(II) does not affect the recruitment or retention of 
     employees at the school.

       ``(iii) Approval of requests.--A request made under clause 
     (i) shall be considered to be approved at the end of the 60th 
     day after the request is received in the Central Office of 
     the Bureau unless before that time the request is approved, 
     approved with a modification, or disapproved by the 
     Secretary.
       ``(iv) Discontinuation of or decrease in rates.--The 
     Secretary or the supervisor of a Bureau school may 
     discontinue or decrease a post differential rate provided for 
     under this paragraph at the beginning of an academic year 
     if--

       ``(I) the local school board requests that such 
     differential be discontinued or decreased; or
       ``(II) the Secretary or the supervisor, respectively, 
     determines for clear and convincing reasons (and advises the 
     board in writing of those reasons) that there is no disparity 
     of compensation that would affect the recruitment or 
     retention of employees at the school after the differential 
     is discontinued or decreased.

[[Page 25792]]

       ``(v) Reports.--On or before February 1 of each year, the 
     Secretary shall submit to Congress a report describing the 
     requests and approvals of authorization made under this 
     paragraph during the previous year and listing the positions 
     receiving post differential rates under contracts entered 
     into under those authorizations.
       ``(h) Liquidation of Remaining Leave Upon Termination.--
     Upon termination of employment with the Bureau, any annual 
     leave remaining to the credit of an individual covered by of 
     this section shall be liquidated in accordance with sections 
     5551(a) and 6306 of title 5, United States Code, except that 
     leave earned or accrued under regulations promulgated 
     pursuant to subsection (b)(10) shall not be so liquidated.
       ``(i) Transfer of Remaining Sick Leave Upon Transfer, 
     Promotion, or Reemployment.--In the case of any educator who 
     is transferred, promoted, or reappointed, without break in 
     service, to a position in the Federal Government under a 
     different leave system, any remaining leave to the credit of 
     such person earned or credited under the regulations 
     promulgated pursuant to subsection (b)(10) shall be 
     transferred to such person's credit in the employing agency 
     on an adjusted basis in accordance with regulations which 
     shall be promulgated by the Office of Personnel Management.
       ``(j) Ineligibility for Employment of Voluntarily 
     Terminated Educators.--An educator who voluntarily terminates 
     employment with the Bureau before the expiration of the 
     existing employment contract between such educator and the 
     Bureau shall not be eligible to be employed in another 
     education position in the Bureau during the remainder of the 
     term of such contract.
       ``(k) Dual Compensation.--In the case of any educator 
     employed in an education position described in subsection 
     (l)(1)(A) who--
       ``(1) is employed at the close of a school year;
       ``(2) agrees in writing to serve in such position for the 
     next school year; and
       ``(3) is employed in another position during the recess 
     period immediately preceding such next school year, or during 
     such recess period receives additional compensation referred 
     to in section 5533 of title 5, United States Code, relating 
     to dual compensation,
     shall not apply to such educator by reason of any such 
     employment during a recess period for any receipt of 
     additional compensation.
       ``(l) Voluntary Services.--
       ``(1) In general.--Notwithstanding section 1342 of title 
     31, United States Code, the Secretary may, subject to the 
     approval of the local school board concerned, accept 
     voluntary services on behalf of Bureau schools.
       ``(2) Federal employee protection.--Nothing in this part 
     requires Federal employees to work without compensation or 
     allows the use of volunteer services to displace or replace 
     Federal employees.
       ``(3) Federal status.--An individual providing volunteer 
     services under this section is a Federal employee only for 
     purposes of chapter 81 of title 5, United States Code, and 
     chapter 171 of title 28, United States Code.
       ``(m) Proration of Pay.--
       ``(1) Election of employee.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, including laws relating to dual compensation, the 
     Secretary, at the election of the employee, shall prorate the 
     salary of an employee employed in an education position for 
     the academic school year over the entire 12-month period.
       ``(B) Election.--Each educator employed for the academic 
     school year shall annually elect to be paid on a 12-month 
     basis or for those months while school is in session.
       ``(C) No loss of pay or benefits.--No educator shall suffer 
     a loss of pay or benefits, including benefits under 
     unemployment or other Federal or federally assisted programs, 
     because of such election.
       ``(2) Change of election.--During the course of such year 
     the employee may change election once.
       ``(3) Lump sum payment.--That portion of the employee's pay 
     which would be paid between academic school years may be paid 
     in a lump sum at the election of the employee.
       ``(4) Nonapplicability.--This subsection applies to those 
     individuals employed under the provisions of section 1132 of 
     this title or title 5, United States Code.
       ``(5) Definitions.--For purposes of this subsection, the 
     terms `educator' and `education position' have the meanings 
     contained in paragraphs (1) and (2) of subsection (o).
       ``(n) Extracurricular Activities.--
       ``(1) Stipend.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, the Secretary may provide, for each Bureau area, a 
     stipend in lieu of overtime premium pay or compensatory time 
     off.
       ``(B) Provision to employees.--Any employee of the Bureau 
     who performs additional activities to provide services to 
     students or otherwise support the school's academic and 
     social programs may elect to be compensated for all such work 
     on the basis of the stipend.
       ``(C) Nature of stipend.--Such stipend shall be paid as a 
     supplement to the employee's base pay.
       ``(2) Election not to receive stipend.--If an employee 
     elects not to be compensated through the stipend established 
     by this subsection, the appropriate provisions of title 5, 
     United States Code, shall apply.
       ``(3) Applicability of subsection.--This subsection applies 
     to all Bureau employees, regardless of whether the employee 
     is employed under section 1132 of this title or title 5, 
     United States Code.
       ``(o) Definitions.--In this section:
       ``(1) Education position.--The term `education position' 
     means a position in the Bureau the duties and 
     responsibilities of which--
       ``(A)(i) are performed on a school year basis principally 
     in a Bureau school; and
       ``(ii) involve--
       ``(I) classroom or other instruction or the supervision or 
     direction of classroom or other instruction;
       ``(II) any activity (other than teaching) which requires 
     academic credits in educational theory and practice equal to 
     the academic credits in educational theory and practice 
     required for a bachelor's degree in education from an 
     accredited institution of higher education;
       ``(III) any activity in or related to the field of 
     education notwithstanding that academic credits in 
     educational theory and practice are not a formal requirement 
     for the conduct of such activity; or
       ``(IV) support services at, or associated with, the site of 
     the school; or
       ``(B) are performed at the agency level of the Bureau and 
     involve the implementation of education-related programs 
     other than the position for agency superintendent for 
     education.
       ``(2) Educator.--The term `educator' means an individual 
     whose services are required, or who is employed, in an 
     education position.
       ``(p) Covered Individuals; Election.--This section shall 
     apply with respect to any educator hired after November 1, 
     1979 (and to any educator who elected for coverage under that 
     provision after November 1, 1979) and to the position in 
     which such individual is employed. The enactment of this 
     section shall not affect the continued employment of an 
     individual employed on October 31, 1979, in an education 
     position, or such person's right to receive the compensation 
     attached to such position.
       ``(q) Furlough Without Consent.--
       ``(1) In general.--An educator who was employed in an 
     education position on October 31, 1979, who was eligible to 
     make an election under subsection (p) at that time, and who 
     did not make the election under such subsection, may not be 
     placed on furlough (within the meaning of section 7511(a)(5) 
     of title 5, United States Code, without the consent of such 
     educator for an aggregate of more than 4 weeks within the 
     same calendar year, unless--
       ``(A) the supervisor, with the approval of the local school 
     board (or of the education line officer upon appeal under 
     paragraph (2)), of the Bureau school at which such educator 
     provides services determines that a longer period of furlough 
     is necessary due to an insufficient amount of funds available 
     for personnel compensation at such school, as determined 
     under the financial plan process as determined under section 
     1129(b); and
       ``(B) all educators (other than principals and clerical 
     employees) providing services at such Bureau school are 
     placed on furloughs of equal length, except that the 
     supervisor, with the approval of the local school board (or 
     of the agency education line officer upon appeal under 
     paragraph (2)), may continue 1 or more educators in pay 
     status if--
       ``(i) such educators are needed to operate summer programs, 
     attend summer training sessions, or participate in special 
     activities including curriculum development committees; and
       ``(ii) such educators are selected based upon such 
     educator's qualifications after public notice of the minimum 
     qualifications reasonably necessary and without 
     discrimination as to supervisory, nonsupervisory, or other 
     status of the educators who apply.
       ``(2) Appeals.--The supervisor of a Bureau school may 
     appeal to the appropriate agency education line officer any 
     refusal by the local school board to approve any 
     determination of the supervisor that is described in 
     paragraph (1)(A) by filing a written statement describing the 
     determination and the reasons the supervisor believes such 
     determination should be approved. A copy of such statement 
     shall be submitted to the local school board and such board 
     shall be afforded an opportunity to respond, in writing, to 
     such appeal. After reviewing such written appeal and 
     response, the education line officer may, for good cause, 
     approve the determination of the supervisor. The educational 
     line officer shall transmit the determination of such appeal 
     in the form of a written opinion to such local school board 
     and to the supervisor identifying the reasons for approving 
     such determination.
       ``(r) Stipends.--The Secretary is authorized to provide 
     annual stipends to teachers who become certified by the 
     National Board of Professional Teaching Standards, the 
     National Council on Teacher Quality, or other nationally 
     recognized certification or credentialing organizations.

     ``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

       ``(a) In General.--Not later than 12 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Secretary shall update the computerized 
     management information system within the Office. The 
     information to be updated shall include information 
     regarding--
       ``(1) student enrollment;
       ``(2) curricula;
       ``(3) staffing;
       ``(4) facilities;
       ``(5) community demographics;
       ``(6) student assessment information;
       ``(7) information on the administrative and program costs 
     attributable to each Bureau program, divided into discrete 
     elements;

[[Page 25793]]

       ``(8) relevant reports;
       ``(9) personnel records;
       ``(10) finance and payroll; and
       ``(11) such other items as the Secretary determines to be 
     appropriate.
       ``(b) Implementation of System.--Not later than July 1, 
     2003, the Secretary shall complete the implementation of the 
     updated computerized management information system at each 
     Bureau field office and Bureau-funded school.

     ``SEC. 1134. RECRUITMENT OF INDIAN EDUCATORS.

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

     ``SEC. 1135. ANNUAL REPORT; AUDITS.

       ``(a) Annual Reports.--The Secretary shall submit to each 
     appropriate committee of Congress, all Bureau-funded schools, 
     and the tribal governing bodies of such schools, a detailed 
     annual report on the state of education within the Bureau, 
     and any problems encountered in Indian education during the 
     period covered by the report, that includes--
       ``(1) suggestions for the improvement of the Bureau 
     educational system and for increasing tribal or local Indian 
     control of such system; and
       ``(2) information on the status of tribally controlled 
     community colleges.
       ``(b) Budget Request.--The annual budget request for the 
     education programs of the Bureau, as submitted as part of the 
     President's next annual budget request under section 1105 of 
     title 31, United States Code, shall include the plans 
     required by sections 1121(c), 1122(c), and 1124(c).
       ``(c) Financial and Compliance Audits.--The Inspector 
     General of the Department of the Interior shall establish a 
     system to ensure that financial and compliance audits, based 
     upon the extent to which a school described in subsection (a) 
     has complied with the local financial plan under section 
     1130, are conducted of each Bureau-operated school at least 
     once every 3 years.
       ``(d) Administrative Evaluation of Schools.--The Director 
     shall, at least once every 3 to 5 years, conduct a 
     comprehensive evaluation of Bureau-operated schools. Such 
     evaluation shall be in addition to any other program review 
     or evaluation that may be required under Federal law.

     ``SEC. 1136. RIGHTS OF INDIAN STUDENTS.

       ``The Secretary shall prescribe such rules and regulations 
     as are necessary to ensure the constitutional and civil 
     rights of Indian students attending Bureau-funded schools, 
     including such students' rights to--
       ``(1) privacy under the laws of the United States;
       ``(2) freedom of religion and expression; and
       ``(3) to due process in connection with disciplinary 
     actions, suspensions, and expulsions.

     ``SEC. 1137. REGULATIONS.

       ``(a) Promulgation.--
       ``(1) In General.--The Secretary may promulgate only such 
     regulations--
       ``(A) as are necessary to ensure compliance with the 
     specific provisions of this part; and
       ``(B) as the Secretary is authorized to promulgate pursuant 
     to section 5211 of the Tribally Controlled Schools Act of 
     1988 (25 U.S.C. 2510).
       ``(2) Publication.--In promulgating the regulations, the 
     Secretary shall--
       ``(A) publish proposed regulations in the Federal Register; 
     and
       ``(B) provide a period of not less than 120 days for public 
     comment and consultation on the regulations.
       ``(3) Citation.--The regulations shall contain, immediately 
     following each regulatory section, a citation to any 
     statutory provision providing authority to promulgate such 
     regulatory section.
       ``(b) Miscellaneous.--The provisions of this Act shall 
     supersede any conflicting provisions of law (including any 
     conflicting regulations) in effect on the day before the date 
     of enactment of this Act and the Secretary is authorized to 
     repeal any regulation inconsistent with the provisions of 
     this Act.

     ``SEC. 1138. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

       ``(a) Regional Meetings.--Prior to publishing any proposed 
     regulations under subsection (b)(1), and prior to 
     establishing the negotiated rulemaking committee under 
     subsection (b)(3), the Secretary shall convene regional 
     meetings to consult with personnel of the Office of Indian 
     Education Programs, educators at Bureau schools, and tribal 
     officials, parents, teachers, administrators, and school 
     board members of tribes served by Bureau-funded schools to 
     provide guidance to the Secretary on the content of 
     regulations authorized to be promulgated under this part and 
     the Tribally Controlled Schools Act of 1988.
       ``(b) Negotiated Rulemaking.--
       ``(1) In general.--Notwithstanding sections 563(a) and 
     565(a) of title 5, United States Code, the Secretary shall 
     promulgate regulations authorized under subsection (a) and 
     under the Tribally Controlled Schools Act of 1988, in 
     accordance with the negotiated rulemaking procedures provided 
     for under subchapter III of chapter 5 of title 5, United 
     States Code, and shall publish final regulations in the 
     Federal Register.
       ``(2) Notification to congress.--If draft regulations 
     implementing this part and the Tribally Controlled Schools 
     Act of 1988 are not promulgated in final form within 18 
     months after the date of enactment of the Native American 
     Education Improvement Act of 2001, the Secretary shall notify 
     the appropriate committees of Congress of which draft 
     regulations were not promulgated in final form by the 
     deadline and the reason such final regulations were not 
     promulgated.
       ``(3) Rulemaking committee.--The Secretary shall establish 
     a negotiated rulemaking committee to carry out this 
     subsection. In establishing such committee, the Secretary 
     shall--
       ``(A) apply the procedures provided for under subchapter 
     III of chapter 5 of title 5, United States Code, in a manner 
     that reflects the unique government-to-government 
     relationship between Indian tribes and the United States;
       ``(B) ensure that the membership of the committee includes 
     only representatives of the Federal Government and of tribes 
     served by Bureau-funded schools;
       ``(C) select the tribal representatives of the committee 
     from among individuals nominated by the representatives of 
     the tribal and tribally operated schools;
       ``(D) ensure, to the maximum extent possible, that the 
     tribal representative membership on the committee reflects 
     the proportionate share of students from tribes served by the 
     Bureau-funded school system; and
       ``(E) comply with the Federal Advisory Committee Act (5 
     U.S.C. App.).
       ``(4) Special rule.--The Secretary shall carry out this 
     section using the general administrative funds of the 
     Department of the Interior. In accordance with subchapter III 
     of chapter 5 of title 5, United States Code, and section 7(d) 
     of the Federal Advisory Committee Act, payment of costs 
     associated with negotiated rulemaking shall include the 
     reasonable expenses of committee members.
       ``(c) Application of Section.--
       ``(1) Supremacy of provisions.--The provisions of this 
     section shall supersede any conflicting regulations in effect 
     on the day before the date of enactment of this part, and the 
     Secretary may repeal any regulation that is inconsistent with 
     the provisions of this part.
       ``(2) Modifications.--The Secretary may modify regulations 
     promulgated under this section or the Tribally Controlled 
     Schools Act of 1988, only in accordance with this section.

     ``SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

       ``(a) In General.--The Secretary shall provide grants to 
     tribes, tribal organizations, and consortia of tribes and 
     tribal organizations to fund early childhood development 
     programs that are operated by such tribes, organizations, or 
     consortia.
       ``(b) Amount of Grants.--
       ``(1) In general.--The total amount of the grants provided 
     under subsection (a) with respect to each tribe, tribal 
     organization, or consortium of tribes or tribal organizations 
     for each fiscal year shall be equal to the amount which bears 
     the same relationship to the total amount appropriated under 
     the authority of subsection (g) for such fiscal year (less 
     amounts provided under subsection (f)) as--
       ``(A) the total number of children under 6 years of age who 
     are members of--
       ``(i) such tribe;
       ``(ii) the tribe that authorized such tribal organization; 
     or
       ``(iii) any tribe that--

       ``(I) is a member of such consortium; or
       ``(II) authorizes any tribal organization that is a member 
     of such consortium; bears to

       ``(B) the total number of all children under 6 years of age 
     who are members of any tribe that--
       ``(i) is eligible to receive funds under subsection (a);
       ``(ii) is a member of a consortium that is eligible to 
     receive such funds; or
       ``(iii) authorizes a tribal organization that is eligible 
     to receive such funds.
       ``(2) Limitation.--No grant may be provided under 
     subsection (a)--
       ``(A) to any tribe that has less than 500 members;
       ``(B) to any tribal organization which is authorized--
       ``(i) by only one tribe that has less than 500 members; or
       ``(ii) by one or more tribes that have a combined total 
     membership of less than 500 members; or
       ``(C) to any consortium composed of tribes, or tribal 
     organizations authorized by tribes, that have a combined 
     total tribal membership of less than 500 members.
       ``(c) Application.--
       ``(1) In general.--A grant may be provided under subsection 
     (a) to a tribe, tribal organization, or consortium of tribes 
     and tribal organizations only if the tribe, organization, or 
     consortium submits to the Secretary an application for the 
     grant at such time and in such form as the Secretary shall 
     prescribe.
       ``(2) Contents.--Applications submitted under paragraph (1) 
     shall set forth the early childhood development program that 
     the applicant desires to operate.
       ``(d) Requirement of Programs Funded.--The early childhood 
     development programs that are funded by grants provided under 
     subsection (a)--
       ``(1) shall coordinate existing programs and may provide 
     services that meet identified needs of parents and children 
     under 6 years of age which are not being met by existing 
     programs, including--
       ``(A) prenatal care;
       ``(B) nutrition education;
       ``(C) health education and screening;
       ``(D) family literacy services;

[[Page 25794]]

       ``(E) educational testing; and
       ``(F) other educational services;
       ``(2) may include instruction in the language, art, and 
     culture of the tribe; and
       ``(3) shall provide for periodic assessment of the program.
       ``(e) Coordination of Family Literacy Programs.--Family 
     literacy programs operated under this section and other 
     family literacy programs operated by the Bureau of Indian 
     Affairs shall be coordinated with family literacy programs 
     for Indian children under part B of title I of the Elementary 
     and Secondary Education Act of 1965 in order to avoid 
     duplication and to encourage the dissemination of information 
     on quality family literacy programs serving Indians.
       ``(f) Administrative Costs.--The Secretary shall, out of 
     funds appropriated under subsection (g), include in the 
     grants provided under subsection (a) amounts for 
     administrative costs incurred by the tribe, tribal 
     organization, or consortium of tribes in establishing and 
     maintaining the early childhood development program.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

     ``SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary shall make grants and provide 
     technical assistance to tribes for the development and 
     operation of tribal departments or divisions of education for 
     the purpose of planning and coordinating all educational 
     programs of the tribe.
       ``(b) Applications.--For a tribe to be eligible to receive 
     a grant under this section, the governing body of the tribe 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       ``(c) Diversity.--The Secretary shall award grants under 
     this section in a manner that fosters geographic and 
     population diversity.
       ``(d) Use.--Tribes that receive grants under this section 
     shall use the funds made available through the grants--
       ``(1) to facilitate tribal control in all matters relating 
     to the education of Indian children on reservations (and on 
     former Indian reservations in Oklahoma);
       ``(2) to provide for the development of coordinated 
     educational programs (including all preschool, elementary, 
     secondary, and higher or vocational educational programs 
     funded by tribal, Federal, or other sources) on reservations 
     (and on former Indian reservations in Oklahoma) by 
     encouraging tribal administrative support of all Bureau-
     funded educational programs as well as encouraging tribal 
     cooperation and coordination with entities carrying out all 
     educational programs receiving financial support from other 
     Federal agencies, State agencies, or private entities; and
       ``(3) to provide for the development and enforcement of 
     tribal educational codes, including tribal educational 
     policies and tribal standards applicable to curriculum, 
     personnel, students, facilities, and support programs.
       ``(e) Priorities.--In making grants under this section, the 
     Secretary shall give priority to any application that--
       ``(1) includes--
       ``(A) assurances that the applicant serves 3 or more 
     separate Bureau-funded schools; and
       ``(B) assurances from the applicant that the tribal 
     department of education to be funded under this section will 
     provide coordinating services and technical assistance to all 
     of such schools;
       ``(2) includes assurances that all education programs for 
     which funds are provided by such a contract or grant will be 
     monitored and audited, by or through the tribal department of 
     education, to ensure that the programs meet the requirements 
     of law; and
       ``(3) provides a plan and schedule that--
       ``(A) provides for--
       ``(i) the assumption, by the tribal department of 
     education, of all assets and functions of the Bureau agency 
     office associated with the tribe, to the extent the assets 
     and functions relate to education; and
       ``(ii) the termination by the Bureau of such functions and 
     office at the time of such assumption; and
       ``(B) provides that the assumption shall occur over the 
     term of the grant made under this section, except that, when 
     mutually agreeable to the tribal governing body and the 
     Assistant Secretary, the period in which such assumption is 
     to occur may be modified, reduced, or extended after the 
     initial year of the grant.
       ``(f) Time Period of Grant.--Subject to the availability of 
     appropriated funds, a grant provided under this section shall 
     be provided for a period of 3 years. If the performance of 
     the grant recipient is satisfactory to the Secretary, the 
     grant may be renewed for additional 3-year terms.
       ``(g) Terms, Conditions, or Requirements.--A tribe that 
     receives a grant under this section shall comply with 
     regulations relating to grants made under section 103(a) of 
     the Indian Self-Determination and Education Assistance Act 
     that are in effect on the date that the tribal governing body 
     submits the application for the grant under subsection (b). 
     The Secretary shall not impose any terms, conditions, or 
     requirements on the provision of grants under this section 
     that are not specified in this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $2,000,000.

     ``SEC. 1141. DEFINITIONS.

       ``For the purposes of this part, unless otherwise 
     specified:
       ``(1) Agency school board.--The term `agency school board' 
     means a body--
       ``(A) the members of which are appointed by all of the 
     school boards of the schools located within an agency, 
     including schools operated under contract or grant; and
       ``(B) the number of such members is determined by the 
     Secretary, in consultation with the affected tribes;
     except that, in agencies serving a single school, the school 
     board of such school shall fulfill these duties, and in 
     agencies having schools or a school operated under contract 
     or grant, 1 such member at least shall be from such a school.
       ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       ``(3) Bureau-funded school.--The term `Bureau-funded 
     school' means--
       ``(A) a Bureau school;
       ``(B) a contract or grant school; or
       ``(C) a school for which assistance is provided under the 
     Tribally Controlled Schools Act of 1988.
       ``(4) Bureau school.--The term `Bureau school' means a 
     Bureau-operated elementary or secondary day or boarding 
     school or a Bureau-operated dormitory for students attending 
     a school other than a Bureau school.
       ``(5) Complementary educational facilities.--The term 
     `complementary educational facilities' means educational 
     program functional spaces such as libraries, gymnasiums, and 
     cafeterias.
       ``(6) Contract or grant school.--The term `contract or 
     grant school' means an elementary school, secondary school, 
     or dormitory that receives financial assistance for its 
     operation under a contract, grant, or agreement with the 
     Bureau under section 102, 103(a), or 208 of the Indian Self-
     Determination and Education Assistance Act, or under the 
     Tribally Controlled Schools Act of 1988.
       ``(7) Director.--The term `Director' means the Director of 
     the Office of Indian Education Programs.
       ``(8) Education line officer.--The term `education line 
     officer' means a member of the education personnel under the 
     supervision of the Director of the Office, whether located in 
     a central, area, or agency office.
       ``(9) Family literacy services.--The term `family literacy 
     services' has the meaning given that term in section 8101 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801).
       ``(10) Financial plan.--The term `financial plan' means a 
     plan of services provided by each Bureau school.
       ``(11) Indian organization.--the term `Indian organization' 
     means any group, association, partnership, corporation, or 
     other legal entity owned or controlled by a federally 
     recognized Indian tribe or tribes, or a majority of whose 
     members are members of federally recognized tribes.
       ``(12) Inherently federal functions.--The term `inherently 
     Federal functions' means functions and responsibilities 
     which, under section 1126(c), are noncontractable, 
     including--
       ``(A) the allocation and obligation of Federal funds and 
     determinations as to the amounts of expenditures;
       ``(B) the administration of Federal personnel laws for 
     Federal employees;
       ``(C) the administration of Federal contracting and grant 
     laws, including the monitoring and auditing of contracts and 
     grants in order to maintain the continuing trust, 
     programmatic, and fiscal responsibilities of the Secretary;
       ``(D) the conducting of administrative hearings and 
     deciding of administrative appeals;
       ``(E) the determination of the Secretary's views and 
     recommendations concerning administrative appeals or 
     litigation and the representation of the Secretary in 
     administrative appeals and litigation;
       ``(F) the issuance of Federal regulations and policies as 
     well as any documents published in the Federal Register;
       ``(G) reporting to Congress and the President;
       ``(H) the formulation of the Secretary's and the 
     President's policies and their budgetary and legislative 
     recommendations and views; and
       ``(I) the nondelegable statutory duties of the Secretary 
     relating to trust resources.
       ``(13) Local educational agency.--The term `local 
     educational agency' means a board of education or other 
     legally constituted local school authority having 
     administrative control and direction of free public education 
     in a county, township, or independent or other school 
     district located within a State, and includes any State 
     agency that directly operates and maintains facilities for 
     providing free public education.
       ``(14) Local school board.--The term `local school board', 
     when used with respect to a Bureau school, means a body 
     chosen in accordance with the laws of the tribe to be served 
     or, in the absence of such laws, elected by the parents of 
     the Indian children attending the school, except that, for a 
     school serving a substantial number of students from 
     different tribes--
       ``(A) the members of the body shall be appointed by the 
     tribal governing bodies of the tribes affected; and
       ``(B) the number of such members shall be determined by the 
     Secretary in consultation with the affected tribes.
       ``(15) Office.--The term `Office' means the Office of 
     Indian Education Programs within the Bureau.

[[Page 25795]]

       ``(16) Regulation.--
       ``(A) In general.--The term `regulation' means any part of 
     a statement of general or particular applicability of the 
     Secretary designed to carry out, interpret, or prescribe law 
     or policy in carrying out this Act.
       ``(B) Rule of construction.--Nothing in subparagraph (A) or 
     any other provision of this title shall be construed to 
     prohibit the Secretary from issuing guidance, internal 
     directives, or other documents similar to the documents found 
     in the Indian Affairs Manual of the Bureau of Indian Affairs.
       ``(17) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(18) Supervisor.--The term `supervisor' means the 
     individual in the position of ultimate authority at a Bureau 
     school.
       ``(19) Tribal governing body.--The term `tribal governing 
     body' means, with respect to any school, the tribal governing 
     body, or tribal governing bodies, that represent at least 90 
     percent of the students served by such school.
       ``(20) Tribe.--The term `tribe' means any Indian tribe, 
     band, nation, or other organized group or community, 
     including an Alaska Native Regional Corporation or Village 
     Corporation (as defined in or established pursuant to the 
     Alaska Native Claims Settlement Act), which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.''.

     SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

       The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 
     et seq.) is amended by striking sections 5202 through 5212 
     and inserting the following new sections:

     ``SEC. 5202. DECLARATION OF POLICY.

       ``(a) Recognition.--Congress recognizes that the Indian 
     Self-Determination and Education Assistance Act, which was a 
     product of the legitimate aspirations and a recognition of 
     the inherent authority of Indian nations, was and is a 
     crucial positive step towards tribal and community control 
     and that the United States has an obligation to assure 
     maximum Indian participation in the direction of educational 
     services so as to render the persons administering such 
     services and the services themselves more responsive to the 
     needs and desires of Indian communities.
       ``(b) Commitment.--Congress declares its commitment to the 
     maintenance of the Federal Government's unique and continuing 
     trust relationship with and responsibility to the Indian 
     people for the education of Indian children through the 
     establishment of a meaningful Indian self-determination 
     policy for education that will deter further perpetuation of 
     Federal bureaucratic domination of programs.
       ``(c) National Goal.--Congress declares that a national 
     goal of the United States is to provide the resources, 
     processes, and structure that will enable tribes and local 
     communities to obtain the quantity and quality of educational 
     services and opportunities that will permit Indian children--
       ``(1) to compete and excel in areas of their choice; and
       ``(2) to achieve the measure of self-determination 
     essential to their social and economic well-being.
       ``(d) Educational Needs.--Congress affirms--
       ``(1) true self-determination in any society of people is 
     dependent upon an educational process that will ensure the 
     development of qualified people to fulfill meaningful 
     leadership roles;
       ``(2) that Indian people have special and unique 
     educational needs, including the need for programs to meet 
     the linguistic and cultural aspirations of Indian tribes and 
     communities; and
       ``(3) that those needs may best be met through a grant 
     process.
       ``(e) Federal Relations.--Congress declares a commitment to 
     the policies described in this section and support, to the 
     full extent of congressional responsibility, for Federal 
     relations with the Indian nations.
       ``(f) Termination.--Congress repudiates and rejects House 
     Concurrent Resolution 108 of the 83d Congress and any policy 
     of unilateral termination of Federal relations with any 
     Indian Nation.

     ``SEC. 5203. GRANTS AUTHORIZED.

       ``(a) In General.--
       ``(1) Eligibility.--The Secretary shall provide grants to 
     Indian tribes, and tribal organizations that--
       ``(A) operate contract schools under title XI of the 
     Education Amendments of 1978 and notify the Secretary of 
     their election to operate the schools with assistance under 
     this part rather than continuing the schools as contract 
     schools;
       ``(B) operate other tribally controlled schools eligible 
     for assistance under this part and submit applications (which 
     are approved by their tribal governing bodies) to the 
     Secretary for such grants; or
       ``(C) elect to assume operation of Bureau-funded schools 
     with the assistance under this part and submit applications 
     (which are approved by their tribal governing bodies) to the 
     Secretary for such grants.
       ``(2) Deposit of funds.--Grants provided under this part 
     shall be deposited into the general operating fund of the 
     tribally controlled school with respect to which the grant is 
     made.
       ``(3) Use of funds.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, grants provided under this part shall be used to 
     defray, at the discretion of the school board of the tribally 
     controlled school with respect to which the grant is 
     provided, any expenditures for education related activities 
     for which any funds that compose the grant may be used under 
     the laws described in section 5205(a), including expenditures 
     for--
       ``(i) school operations, academic, educational, 
     residential, guidance and counseling, and administrative 
     purposes; and
       ``(ii) support services for the school, including 
     transportation.
       ``(B) Exception.--Grants provided under this part may, at 
     the discretion of the school board of the tribally controlled 
     school with respect to which such grant is provided, be used 
     to defray operations and maintenance expenditures for the 
     school if any funds for the operation and maintenance of the 
     school are allocated to the school under the provisions of 
     any of the laws described in section 5205(a).
       ``(b) Limitations.--
       ``(1) One grant per tribe or organization per fiscal 
     year.--Not more than 1 grant may be provided under this part 
     with respect to any Indian tribe or tribal organization for 
     any fiscal year.
       ``(2) Nonsectarian use.--Funds provided under any grant 
     made under this part may not be used in connection with 
     religious worship or sectarian instruction.
       ``(3) Administrative costs limitation.--Funds provided 
     under any grant under this part may not be expended for 
     administrative costs (as defined in section 1128(h)(1) of the 
     Education Amendments of 1978) in excess of the amount 
     generated for such costs under section 1128 of such Act.
       ``(c) Limitation on Transfer of Funds Among School Sites.--
       ``(1) In general.--In the case of a grantee that operates 
     schools at more than 1 school site, the grantee may expend at 
     any school site operated by the grantee not more than the 
     lesser of--
       ``(A) 10 percent of the funds allocated for another school 
     site under section 1128 of the Education Amendments of 1978; 
     or
       ``(B) $400,000 of the funds allocated for another school 
     site.
       ``(2) Definition of school site.--For purposes of this 
     subsection, the term `school site' means the physical 
     location and the facilities of an elementary or secondary 
     educational or residential program operated by, or under 
     contract or grant with, the Bureau for which a discreet 
     student count is identified under the funding formula 
     established under section 1127 of the Education Amendments of 
     1978.
       ``(d) No Requirement To Accept Grants.--Nothing in this 
     part may be construed--
       ``(1) to require a tribe or tribal organization to apply 
     for or accept; or
       ``(2) to allow any person to coerce any tribe or tribal 
     organization to apply for, or accept,
     a grant under this part to plan, conduct, and administer all 
     of, or any portion of, any Bureau program. Such applications 
     and the timing of such applications shall be strictly 
     voluntary. Nothing in this part may be construed as allowing 
     or requiring any grant with any entity other than the entity 
     to which the grant is provided.
       ``(e) No Effect on Federal Responsibility.--Grants provided 
     under this part shall not terminate, modify, suspend, or 
     reduce the responsibility of the Federal Government to 
     provide a program.
       ``(f) Retrocession.--
       ``(1) In general.--Whenever a tribal governing body 
     requests retrocession of any program for which assistance is 
     provided under this part, such retrocession shall become 
     effective upon a date specified by the Secretary that is not 
     later than 120 days after the date on which the tribal 
     governing body requests the retrocession. A later date may be 
     specified if mutually agreed upon by the Secretary and the 
     tribal governing body. If such a program is retroceded, the 
     Secretary shall provide to any Indian tribe served by such 
     program at least the same quantity and quality of services 
     that would have been provided under such program at the level 
     of funding provided under this part prior to the 
     retrocession.
       ``(2) Status after retrocession.--The tribe requesting 
     retrocession shall specify whether the retrocession is to 
     status as a Bureau-operated school or as a school operated 
     under contract under the Indian Self-Determination and 
     Education Assistance Act.
       ``(3) Transfer of equipment and materials.--Except as 
     otherwise determined by the Secretary, the tribe or tribal 
     organization operating the program to be retroceded must 
     transfer to the Secretary (or to the tribe or tribal 
     organization which will operate the program as a contract 
     school) the existing equipment and materials which were 
     acquired--
       ``(A) with assistance under this part; or
       ``(B) upon assumption of operation of the program under 
     this part, if the school was a Bureau-funded school under 
     title XI of the Education Amendments of 1978 before receiving 
     assistance under this part.
       ``(g) Prohibition of Termination for Administrative 
     Convenience.--Grants provided under this part may not be 
     terminated, modified, suspended, or reduced solely for the 
     convenience of the administering agency.

     ``SEC. 5204. COMPOSITION OF GRANTS.

       ``(a) In General.--The grant provided under this part to an 
     Indian tribe or tribal organization for any fiscal year shall 
     consist of--
       ``(1) the total amount of funds allocated for such fiscal 
     year under sections 1127 and 1128 of the Education Amendments 
     of 1978 with respect to the tribally controlled schools 
     eligible for assistance under this part which are operated by 
     such Indian tribe or tribal organization, including, but not 
     limited to, funds provided under

[[Page 25796]]

     such sections, or under any other provision of law, for 
     transportation costs;
       ``(2) to the extent requested by such Indian tribe or 
     tribal organization, the total amount of funds provided from 
     operations and maintenance accounts and, notwithstanding 
     section 105 of the Indian Self-Determination Act, or any 
     other provision of law, other facilities accounts for such 
     schools for such fiscal year (including but not limited to 
     those referenced under section 1126(d) of the Education 
     Amendments of 1978 or any other law); and
       ``(3) the total amount of funds that are allocated to such 
     schools for such fiscal year under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law, that are allocated 
     to such schools for such fiscal year.
       ``(b) Special Rules.--
       ``(1) In general.--
       ``(A) Applicability of certain laws.--Funds allocated to a 
     tribally controlled school by reason of paragraph (1) or (2) 
     of subsection (a) shall be subject to the provisions of this 
     part and shall not be subject to any additional restriction, 
     priority, or limitation that is imposed by the Bureau with 
     respect to funds provided under--
       ``(i) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(ii) the Individuals with Disabilities Education Act; or
       ``(iii) any Federal education law other than title XI of 
     the Education Amendments of 1978.
       ``(B) Applicability of bureau provisions.--Indian tribes 
     and tribal organizations to which grants are provided under 
     this part, and tribally controlled schools for which such 
     grants are provided, shall not be subject to any 
     requirements, obligations, restrictions, or limitations 
     imposed by the Bureau that would otherwise apply solely by 
     reason of the receipt of funds provided under any law 
     referred to in clause (i), (ii), or (iii) of subparagraph 
     (A).
       ``(2) Schools considered contract schools.--Tribally 
     controlled schools for which grants are provided under this 
     part shall be treated as contract schools for the purposes of 
     allocation of funds under sections 1126(e), 1127, and 1128 of 
     the Education Amendments of 1978.
       ``(3) Schools considered bureau schools.--Tribally 
     controlled schools for which grants are provided under this 
     chapter shall be treated as Bureau schools for the purposes 
     of allocation of funds provided under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law, that are distributed 
     through the Bureau.
       ``(4) Accounts; use of certain funds.--
       ``(A) Separate account.--
       ``(i) In general.--Notwithstanding section 5204(a)(2), with 
     respect to funds from facilities improvement and repair, 
     alteration and renovation (major or minor), health and 
     safety, or new construction accounts included in the grant 
     provided under section 5204(a), the grant recipient shall 
     maintain a separate account for such funds.
       ``(ii) Submission of accounting.--At the end of the period 
     designated for the work covered by the funds received, the 
     grant recipient shall submit to the Secretary a separate 
     accounting of the work done and the funds expended.
       ``(iii) Use of funds.--Funds received from those accounts 
     may only be used for the purpose for which the funds were 
     appropriated and for the work encompassed by the application 
     or submission for which the funds were received.
       ``(iv) Completion of project.--Upon completion of a project 
     for which a separate account is established under this 
     paragraph, the portion of the grant related to such project 
     may be closed out upon agreement by the grantee and the 
     Secretary.
       ``(B) Requirements for projects.--
       ``(i) Regulatory requirements.--With respect to a grant to 
     a tribally controlled school under this part for new 
     construction or facilities improvements and repair in excess 
     of $100,000, such grant shall be subject to the 
     Administrative and Audit Requirements and Cost Principles for 
     Assistance Programs contained in part 12 of title 43, Code of 
     Federal Regulations.
       ``(ii) Exception.--Notwithstanding clause (i), grants 
     described in such clause shall not be subject to section 
     12.61 of title 43, Code of Federal Regulations. The Secretary 
     and the grantee shall negotiate and determine a schedule of 
     payments for the work to be performed.
       ``(iii) Applications.--In considering applications for a 
     grant described in clause (i), the Secretary shall consider 
     whether the Indian tribe or tribal organization involved 
     would be deficient in ensuring that the construction projects 
     under the proposed grant conform to applicable building 
     standards and codes and Federal, tribal, or State health and 
     safety standards as required under section 1124 of the 
     Education Amendments of 1978 (25 U.S.C. 2005(a)) with respect 
     to organizational and financial management capabilities.
       ``(iv) Disputes.--Any disputes between the Secretary and 
     any grantee concerning a grant described in clause (i) shall 
     be subject to the dispute provisions contained in section 
     5209(e).
       ``(C) New construction.--Notwithstanding subparagraph (A), 
     a school receiving a grant under this part for facilities 
     improvement and repair may use such grant funds for new 
     construction if the tribal governing body or tribal 
     organization that submits the application for the grant 
     provides funding for the new construction equal to at least 
     25 percent of the total cost of such new construction.
       ``(D) Period.--In a case in which the appropriations 
     measure under which the funds described in subparagraph (A) 
     are made available or the application submitted for the funds 
     does not stipulate a period for the work covered by the 
     funds, the Secretary and the grant recipient shall consult 
     and determine such a period prior to the transfer of the 
     funds. A period so determined may be extended upon mutual 
     agreement of the Secretary and the grant recipient.
       ``(5) Enforcement of request to include funds.--
       ``(A) In general.--If the Secretary fails to carry out a 
     request filed by an Indian tribe or tribal organization to 
     include in such tribe or organization's grant under this part 
     the funds described in subsection (a)(2) within 180 days 
     after the filing of the request, the Secretary shall--
       ``(i) be deemed to have approved such request; and
       ``(ii) immediately upon the expiration of such 180-day 
     period amend the grant accordingly.
       ``(B) Rights.--A tribe or organization described in 
     subparagraph (A) may enforce its rights under subsection 
     (a)(2) and this paragraph, including rights relating to any 
     denial or failure to act on such tribe's or organization's 
     request, pursuant to the dispute authority described in 
     section 5209(e).

     ``SEC. 5205. ELIGIBILITY FOR GRANTS.

       ``(a) Rules.--
       ``(1) In general.--A tribally controlled school is eligible 
     for assistance under this part if the school--
       ``(A) on April 28, 1988, was a contract school under title 
     XI of the Education Amendments of 1978 and the tribe or 
     tribal organization operating the school submits to the 
     Secretary a written notice of election to receive a grant 
     under this part;
       ``(B) was a Bureau-operated school under title XI of the 
     Education Amendments of 1978 and has met the requirements of 
     subsection (b);
       ``(C) is a school for which the Bureau has not provided 
     funds, but which has met the requirements of subsection (c); 
     or
       ``(D) is a school with respect to which an election has 
     been made under paragraph (2) and which has met the 
     requirements of subsection (b).
       ``(2) New schools.--Any application which has been 
     submitted under the Indian Self-Determination and Education 
     Assistance Act by an Indian tribe for a school which is not 
     in operation on the date of enactment of the Native American 
     Education Improvement Act of 2001 shall be reviewed under the 
     guidelines and regulations for applications submitted under 
     the Indian Self-Determination and Education Assistance Act 
     that were in effect at the time the application was 
     submitted, unless the Indian tribe or tribal organization 
     elects to have the application reviewed under the provisions 
     of subsection (b).
       ``(b) Additional Requirements for Bureau-Funded Schools and 
     Certain Electing Schools.--
       ``(1) Bureau-funded schools.--A school that was a Bureau-
     funded school under title XI of the Education Amendments of 
     1978 on the date of enactment of the Native American 
     Education Improvement Act of 2001 and any school with respect 
     to which an election is made under subsection (a)(2), meets 
     the requirements of this subsection if--
       ``(A) the Indian tribe or tribal organization that 
     operates, or desires to operate, the school submits to the 
     Secretary an application requesting that the Secretary--
       ``(i) transfer operation of the school to the Indian tribe 
     or tribal organization, if the Indian tribe or tribal 
     organization is not already operating the school; and
       ``(ii) make a determination as to whether the school is 
     eligible for assistance under this part; and
       ``(B) the Secretary makes a determination that the school 
     is eligible for assistance under this part.
       ``(2) Certain electing schools.--
       ``(A) In general.--By not later than the date that is 120 
     days after the date on which an application is submitted to 
     the Secretary under paragraph (1)(A), the Secretary shall 
     determine--
       ``(i) in the case of a school which is not being operated 
     by the Indian tribe or tribal organization, whether to 
     transfer operation of the school to the Indian tribe or 
     tribal organization; and
       ``(ii) whether the school is eligible for assistance under 
     this part.
       ``(B) Other determinations.--In considering applications 
     submitted under paragraph (1)(A), the Secretary--
       ``(i) shall transfer operation of the school to the Indian 
     tribe or tribal organization, if the tribe or tribal 
     organization is not already operating the school; and
       ``(ii) shall determine that the school is eligible for 
     assistance under this part, unless the Secretary finds by 
     clear and convincing evidence that the services to be 
     provided by the Indian tribe or tribal organization will be 
     deleterious to the welfare of the Indians served by the 
     school.
       ``(C) Considerations.--In considering applications 
     submitted under paragraph (1)(A), the Secretary shall 
     consider whether the Indian tribe or tribal organization 
     would be deficient in operating the school with respect to--
       ``(i) equipment;
       ``(ii) bookkeeping and accounting procedures;

[[Page 25797]]

       ``(iii) ability to adequately manage a school; or
       ``(iv) adequately trained personnel.
       ``(c) Additional Requirements for a School Which Is Not a 
     Bureau-Funded School.--
       ``(1) In general.--A school which is not a Bureau-funded 
     school under title XI of the Education Amendments of 1978 
     meets the requirements of this subsection if--
       ``(A) the Indian tribe or tribal organization that 
     operates, or desires to operate, the school submits to the 
     Secretary an application requesting a determination by the 
     Secretary as to whether the school is eligible for assistance 
     under this part; and
       ``(B) the Secretary makes a determination that a school is 
     eligible for assistance under this part.
       ``(2) Deadline for determination by secretary.--
       ``(A) In general.--By not later than the date that is 180 
     days after the date on which an application is submitted to 
     the Secretary under paragraph (1)(A), the Secretary shall 
     determine whether the school is eligible for assistance under 
     this part.
       ``(B) Considerations.--In making the determination under 
     subparagraph (A), the Secretary shall give equal 
     consideration to each of the following factors:
       ``(i) With respect to the applicant's proposal--

       ``(I) the adequacy of facilities or the potential to obtain 
     or provide adequate facilities;
       ``(II) geographic and demographic factors in the affected 
     areas;
       ``(III) adequacy of the applicant's program plans;
       ``(IV) geographic proximity of comparable public education; 
     and
       ``(V) the needs as expressed by all affected parties, 
     including but not limited to students, families, tribal 
     governments at both the central and local levels, and school 
     organizations.

       ``(ii) With respect to all education services already 
     available--

       ``(I) geographic and demographic factors in the affected 
     areas;
       ``(II) adequacy and comparability of programs already 
     available;
       ``(III) consistency of available programs with tribal 
     education codes or tribal legislation on education; and
       ``(IV) the history and success of these services for the 
     proposed population to be served, as determined from all 
     factors including, if relevant, standardized examination 
     performance.

       ``(C) Geographic proximity.--The Secretary may not make a 
     determination under this paragraph that is primarily based 
     upon the geographic proximity of comparable public education.
       ``(D) Other information.--Applications submitted under 
     paragraph (1)(A) shall include information on the factors 
     described in subparagraph (B)(i), but the applicant may also 
     provide the Secretary such information relative to the 
     factors described in subparagraph (B)(ii) as the applicant 
     considers appropriate.
       ``(E) Deadline.--If the Secretary fails to make a 
     determination under subparagraph (A) with respect to an 
     application within 180 days after the date on which the 
     Secretary received the application, the Secretary shall be 
     treated as having made a determination that the tribally 
     controlled school is eligible for assistance under the title 
     and the grant shall become effective 18 months after the date 
     on which the Secretary received the application, or on an 
     earlier date, at the Secretary's discretion.
       ``(d) Filing of Applications and Reports.--
       ``(1) In general.--All applications and reports submitted 
     to the Secretary under this part, and any amendments to such 
     applications or reports, shall be filed with the education 
     line officer designated by the Director of the Office of 
     Indian Education Programs of the Bureau of Indian Affairs. 
     The date on which such filing occurs shall, for purposes of 
     this part, be treated as the date on which the application or 
     amendment was submitted to the Secretary.
       ``(2) Supporting documentation.--Any application that is 
     submitted under this chapter shall be accompanied by a 
     document indicating the action taken by the tribal governing 
     body in authorizing such application.
       ``(e) Effective Date for Approved Applications.--Except as 
     provided by subsection (c)(2)(E), a grant provided under this 
     part, and any transfer of the operation of a Bureau school 
     made under subsection (b), shall become effective beginning 
     the academic year succeeding the fiscal year in which the 
     application for the grant or transfer is made, or at an 
     earlier date determined by the Secretary.
       ``(f) Denial of Applications.--
       ``(1) In general.--Whenever the Secretary refuses to 
     approve a grant under this chapter, to transfer operation of 
     a Bureau school under subsection (b), or determines that a 
     school is not eligible for assistance under this part, the 
     Secretary shall--
       ``(A) state the objections in writing to the tribe or 
     tribal organization within the allotted time;
       ``(B) provide assistance to the tribe or tribal 
     organization to overcome all stated objections;
       ``(C) at the request of the tribe or tribal organization, 
     provide the tribe or tribal organization a hearing on the 
     record under the same rules and regulations that apply under 
     the Indian Self-Determination and Education Assistance Act; 
     and
       ``(D) provide an opportunity to appeal the objection 
     raised.
       ``(2) Timeline for reconsideration of amended 
     applications.--The Secretary shall reconsider any amended 
     application submitted under this part within 60 days after 
     the amended application is submitted to the Secretary.
       ``(g) Report.--The Bureau shall submit an annual report to 
     the Congress on all applications received, and actions taken 
     (including the costs associated with such actions), under 
     this section at the same time that the President is required 
     to submit to Congress the budget under section 1105 of title 
     31, United States Code.

     ``SEC. 5206. DURATION OF ELIGIBILITY DETERMINATION.

       ``(a) In General.--If the Secretary determines that a 
     tribally controlled school is eligible for assistance under 
     this part, the eligibility determination shall remain in 
     effect until the determination is revoked by the Secretary, 
     and the requirements of subsection (b) or (c) of section 
     5205, if applicable, shall be considered to have been met 
     with respect to such school until the eligibility 
     determination is revoked by the Secretary.
       ``(b) Annual Reports.--
       ``(1) In general.--Each recipient of a grant provided under 
     this part shall complete an annual report which shall be 
     limited to--
       ``(A) an annual financial statement reporting revenue and 
     expenditures as defined by the cost accounting established by 
     the grantee;
       ``(B) an annual financial audit conducted pursuant to the 
     standards of the Single Audit Act of 1984;
       ``(C) a biennial compliance audit of the procurement of 
     personal property during the period for which the report is 
     being prepared that shall be in compliance with written 
     procurement standards that are developed by the local school 
     board;
       ``(D) an annual submission to the Secretary of the number 
     of students served and a brief description of programs 
     offered under the grant; and
       ``(E) a program evaluation conducted by an impartial 
     evaluation review team, to be based on the standards 
     established for purposes of subsection (c)(1)(A)(ii).
       ``(2) Evaluation review teams.--Where appropriate, other 
     tribally controlled schools and representatives of tribally 
     controlled community colleges shall make up members of the 
     evaluation review teams.
       ``(3) Evaluations.--In the case of a school which is 
     accredited, evaluations will be conducted at intervals under 
     the terms of accreditation.
       ``(4) Submission of report.--
       ``(A) To tribal governing body.--Upon completion of the 
     report required under paragraph (1), the recipient of the 
     grant shall send (via first class mail, return receipt 
     requested) a copy of such annual report to the tribal 
     governing body (as defined in section 1132(f) of the 
     Education Amendments of 1978) of the tribally controlled 
     school.
       ``(B) To secretary.--Not later than 30 days after receiving 
     written confirmation that the tribal governing body has 
     received the report sent pursuant to subparagraph (A), the 
     recipient of the grant shall send a copy of the report to the 
     Secretary.
       ``(c) Revocation of Eligibility.--
       ``(1) Determination of eligibility for assistance.--The 
     Secretary shall not revoke a determination that a school is 
     eligible for assistance under this part if--
       ``(A) the Indian tribe or tribal organization submits the 
     reports required under subsection (b) with respect to the 
     school; and
       ``(B) at least 1 of the following clauses applies with 
     respect to the school:
       ``(i) The school is certified or accredited by a State or 
     regional accrediting association or is a candidate in good 
     standing for such accreditation under the rules of the State 
     or regional accrediting association, showing that credits 
     achieved by the students within the education programs are, 
     or will be, accepted at grade level by a State certified or 
     regionally accredited institution.
       ``(ii) The Secretary determines that there is a reasonable 
     expectation that the certification or accreditation described 
     in clause (i), or candidacy in good standing for such 
     certification or accreditation, will be achieved by the 
     school within 3 years. The school seeking accreditation shall 
     remain under the standards of the Bureau in effect on the 
     date of enactment of the Native American Education 
     Improvement Act of 2001 until such time as the school is 
     accredited, except that if the Bureau standards are in 
     conflict with the standards of the accrediting agency, the 
     standards of such agency shall apply in such case.
       ``(iii) The school is accredited by a tribal department of 
     education if such accreditation is accepted by a generally 
     recognized regional or State accreditation agency.
       ``(iv)(I) With respect to a school that lacks 
     accreditation, or that is not a candidate for accreditation, 
     based on circumstances that are not beyond the control of the 
     school board, every 3 years an impartial evaluator agreed 
     upon by the Secretary and the grant recipient conducts 
     evaluations of the school, and the school receives a positive 
     assessment under such evaluations. The evaluations are 
     conducted under standards adopted by a contractor under a 
     contract for the school entered into under the Indian Self-
     Determination and Education Assistance Act (or revisions of 
     such standards agreed to by the Secretary and the grant 
     recipient) prior to the date of enactment of the Native 
     American Education Improvement Act of 2001.
       ``(II) If the Secretary and a grant recipient other than a 
     tribal governing body fail to agree on such an evaluator, the 
     tribal governing body

[[Page 25798]]

     shall choose the evaluator or perform the evaluation. If the 
     Secretary and a grant recipient that is a tribal governing 
     body fail to agree on such an evaluator, subclause (I) shall 
     not apply.
       ``(III) A positive assessment by an impartial evaluator 
     under this clause shall not affect the revocation of a 
     determination of eligibility by the Secretary where such 
     revocation is based on circumstances that were within the 
     control of the school board.
       ``(2) Notice requirements for revocation.--The Secretary 
     shall not revoke a determination that a school is eligible 
     for assistance under this part, or reassume control of a 
     school that was a Bureau school prior to approval of an 
     application submitted under section 5206(b)(1)(A) until the 
     Secretary--
       ``(A) provides notice to the tribally controlled school and 
     the tribal governing body (within the meaning of section 1141 
     of the Education Amendments of 1978) of the tribally 
     controlled school which states--
       ``(i) the specific deficiencies that led to the revocation 
     or resumption determination; and
       ``(ii) the actions that are needed to remedy such 
     deficiencies; and
       ``(B) affords such authority an opportunity to effect the 
     remedial actions.
       ``(3) Technical assistance.--The Secretary shall provide 
     such technical assistance to enable the school and governing 
     body to carry out such remedial actions.
       ``(4) Hearing and appeal.--In addition to notice and 
     technical assistance under this subsection, the Secretary 
     shall provide to the school and governing body--
       ``(A) at the request of the school or governing body, a 
     hearing on the record regarding the revocation or 
     reassumption determination, to be conducted under the rules 
     and regulations described in section 5206(f)(1)(C); and
       ``(B) an opportunity to appeal the decision resulting from 
     the hearing.
       ``(d) Applicability of Section Pursuant to Election Under 
     Section 5208(b).--With respect to a tribally controlled 
     school that receives assistance under this part pursuant to 
     an election made under section 5208(b)--
       ``(1) subsection (b) of this section shall apply; and
       ``(2) the Secretary may not revoke eligibility for 
     assistance under this part except in conformance with 
     subsection (c) of this section.

     ``SEC. 5207. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

       ``(a) Payments.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make payments to grantees 
     under this part in 2 payments, of which--
       ``(A) the first payment shall be made not later than July 1 
     of each year in an amount equal to 80 percent of the amount 
     which the grantee was entitled to receive during the 
     preceding academic year; and
       ``(B) the second payment, consisting of the remainder to 
     which the grantee is entitled for the academic year, shall be 
     made not later than December 1 of each year.
       ``(2) Excess funding.--In a case in which the amount 
     provided to a grant recipient under paragraph (1)(A) is in 
     excess of the amount that the recipient is entitled to 
     receive for the academic year involved, the recipient shall 
     return to the Secretary such excess amount not later than 30 
     days after the final determination that the school was 
     overpaid pursuant to this section. The amount returned to the 
     Secretary under this paragraph shall be distributed equally 
     to all schools in the system.
       ``(3) Newly funded schools.--For any school for which no 
     payment under this part was made from Bureau funds in the 
     preceding academic year, full payment of the amount computed 
     for the first academic year of eligibility under this part 
     shall be made not later than December 1 of the academic year.
       ``(4) Late funding.--With regard to funds for grantees that 
     become available for obligation on October 1 of the fiscal 
     year for which such funds are appropriated, the Secretary 
     shall make payments to grantees not later than December 1 of 
     the fiscal year.
       ``(5) Applicability of certain title 31 provisions.--The 
     provisions of chapter 39 of title 31, United States Code, 
     shall apply to the payments required to be made by paragraphs 
     (1), (3), and (4).
       ``(6) Restrictions.--Paragraphs (1), (3), and (4) shall be 
     subject to any restriction on amounts of payments under this 
     part that are imposed by a continuing resolution or other Act 
     appropriating the funds involved.
       ``(b) Investment of Funds.--
       ``(1) Treatment of interest and investment income.--
     Notwithstanding any other provision of law, any interest or 
     investment income that accrues to any funds provided under 
     this part after such funds are paid to the Indian tribe or 
     tribal organization and before such funds are expended for 
     the purpose for which such funds were provided under this 
     part shall be the property of the Indian tribe or tribal 
     organization and shall not be taken into account by any 
     officer or employee of the Federal Government in determining 
     whether to provide assistance, or the amount of assistance, 
     under any provision of Federal law. Such interest income 
     shall be spent on behalf of the school.
       ``(2) Permissible investments.--Funds provided under this 
     part may be invested by the Indian tribe or tribal 
     organization before such funds are expended for the purposes 
     of this part so long as such funds are--
       ``(A) invested by the Indian tribe or tribal organization 
     only in obligations of the United States, or in obligations 
     or securities that are guaranteed or insured by the United 
     States, or mutual (or other) funds registered with the 
     Securities and Exchange Commission and which only invest in 
     obligations of the United States, or securities that are 
     guaranteed or insured by the United States; or
       ``(B) deposited only into accounts that are insure by and 
     agency or instrumentality of the United States, or are fully 
     collateralized to ensure protection of the funds, even in the 
     event of a bank failure.
       ``(c) Recoveries.--For the purposes of underrecovery and 
     overrecovery determinations by any Federal agency for any 
     other funds, from whatever source derived, funds received 
     under this part shall not be taken into consideration.

     ``SEC. 5208. APPLICATION WITH RESPECT TO INDIAN SELF-
                   DETERMINATION AND EDUCATION ASSISTANCE ACT.

       ``(a) Certain Provisions To Apply to Grants.--The following 
     provisions of the Indian Self-Determination and Education 
     Assistance Act (and any subsequent revisions thereto or 
     renumbering thereof), shall apply to grants provided under 
     this part:
       ``(1) Section 5(f) (relating to single agency audit).
       ``(2) Section 6 (relating to criminal activities; 
     penalties).
       ``(3) Section 7 (relating to wage and labor standards).
       ``(4) Section 104 (relating to retention of Federal 
     employee coverage).
       ``(5) Section 105(f) (relating to Federal property).
       ``(6) Section 105(k) (relating to access to Federal sources 
     of supply).
       ``(7) Section 105(l) (relating to lease of facility used 
     for administration and delivery of services).
       ``(8) Section 106(f) (relating to limitation on remedies 
     relating to cost allowances).
       ``(9) Section 106(j) (relating to use of funds for matching 
     or cost participation requirements).
       ``(10) Section 106(k) (relating to allowable uses of 
     funds).
       ``(11) Section 108(c) (Model Agreements provisions 
     (1)(a)(5) (relating to limitations of costs), (1)(a)(7) 
     (relating to records and monitoring), (1)(a)(8) (relating to 
     property), and (a)(1)(9) (relating to availability of funds).
       ``(12) Section 109 (relating to reassumption).
       ``(13) Section 111 (relating to sovereign immunity and 
     trusteeship rights unaffected).
       ``(b) Election for Grant in Lieu of Contract.--
       ``(1) In general.--Contractors for activities to which this 
     part applies who have entered into a contract under the 
     Indian Self-Determination and Education Assistance Act that 
     is in effect on the date of enactment of the Native American 
     Education Improvement Act of 2001 may, by giving notice to 
     the Secretary, elect to have the provisions of this part 
     apply to such activity in lieu of such contract.
       ``(2) Effective date of election.--Any election made under 
     paragraph (1) shall take effect on the first day of July 
     immediately following the date of such election.
       ``(3) Exception.--In any case in which the first day of 
     July immediately following the date of an election under 
     paragraph (1) is less than 60 days after such election, such 
     election shall not take effect until the first day of July of 
     year following the year in which the election is made.
       ``(c) No Duplication.--No funds may be provided under any 
     contract entered into under the Indian Self-Determination and 
     Education Assistance Act to pay any expenses incurred in 
     providing any program or services if a grant has been made 
     under this part to pay such expenses.
       ``(d) Transfers and Carryovers.--
       ``(1) Buildings, equipment, supplies, materials.--A tribe 
     or tribal organization assuming the operation of--
       ``(A) a Bureau school with assistance under this part shall 
     be entitled to the transfer or use of buildings, equipment, 
     supplies, and materials to the same extent as if it were 
     contracting under the Indian Self-Determination and Education 
     Assistance Act; or
       ``(B) a contract school with assistance under this part 
     shall be entitled to the transfer or use of buildings, 
     equipment, supplies and materials that were used in the 
     operation of the contract school to the same extent as if it 
     were contracting under the Indian Self-Determination and 
     Education Assistance Act.
       ``(2) Funds.--Any tribe or tribal organization which 
     assumes operation of a Bureau school with assistance under 
     this part and any tribe or tribal organization which elects 
     to operate a school with assistance under this part rather 
     that to continue as a contract school shall be entitled to 
     any funds which would carryover from the previous fiscal year 
     as if such school were operated as a contract school.
       ``(3) Funding for school improvement.--Any tribe or tribal 
     organization that assumes operation of a Bureau school or a 
     contract school with assistance under this part shall be 
     eligible for funding for the improvement, alteration, 
     replacement, and repair of facilities to the same extent as a 
     Bureau school.
       ``(e) Exceptions, Problems, and Disputes.--Any exception or 
     problem cited in an audit conducted pursuant to section 
     5206(b)(1), any dispute regarding a grant authorized to be 
     made pursuant to this part or any amendment to such grant, 
     and any dispute involving an administrative cost grant under 
     section 1128 of the Education Amendments of 1978 shall be 
     administered under the provisions governing such exceptions, 
     problems, or disputes in the case of contracts

[[Page 25799]]

     under the Indian Self-Determination and Education Assistance 
     Act. The Equal Access to Justice Act shall apply to 
     administrative appeals filed after September 8, 1988, by 
     grantees regarding a grant under this part, including an 
     administrative cost grant.

     ``SEC. 5209. ROLE OF THE DIRECTOR.

       ``Applications for grants under this part, and all 
     application modifications, shall be reviewed and approved by 
     personnel under the direction and control of the Director of 
     the Office of Indian Education Programs. Required reports 
     shall be submitted to education personnel under the direction 
     and control of the Director of such Office.

     ``SEC. 5210. REGULATIONS.

       ``The Secretary is authorized to issue regulations relating 
     to the discharge of duties specifically assigned to the 
     Secretary in this part. For all other matters relating to the 
     details of planning, developing, implementing, and evaluating 
     grants under this part, the Secretary shall not issue 
     regulations.

     ``SEC. 5211. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT 
                   PROGRAM.

       ``(a) In General.--
       ``(1) Establishment.--Each school receiving a grant under 
     this part may establish, at a federally insured financial 
     institution, a trust fund for the purposes of this section.
       ``(2) Deposits and use.--The school may provide--
       ``(A) for deposit into the trust fund, only funds from non-
     Federal sources, except that the interest on funds received 
     from grants provided under this part may be used for that 
     purpose;
       ``(B) for deposit into the trust fund, any earnings on 
     funds deposited in the fund; and
       ``(C) for the sole use of the school any noncash, in-kind 
     contributions of real or personal property, which may at any 
     time be used, sold, or otherwise disposed of.
       ``(b) Interest.--Interest from the fund established under 
     subsection (a) may periodically be withdrawn and used, at the 
     discretion of the school, to defray any expenses associated 
     with the operation of the school consistent with the purposes 
     of this Act.

     ``SEC. 5212. DEFINITIONS.

       ``In this part:
       ``(1) Bureau.--The term `Bureau' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       ``(2) Eligible indian student.--The term `eligible Indian 
     student' has the meaning given such term in section 1127(f) 
     of the Education Amendments of 1978.
       ``(3) Indian.--The term `Indian' means a member of an 
     Indian tribe, and includes individuals who are eligible for 
     membership in a tribe, and the child or grandchild of such an 
     individual.
       ``(4) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including an Alaska Native Village Corporation or 
     Regional Corporation (as defined in or established pursuant 
     to the Alaska Native Claims Settlement Act), which is 
     recognized as eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians.
       ``(5) Local educational agency.--The term `local 
     educational agency' means a public board of education or 
     other public authority legally constituted within a State for 
     either administrative control or direction of, or to perform 
     a service function for, public elementary schools or 
     secondary schools in a city, county, township, school 
     district, or other political subdivision of a State or such 
     combination of school districts or counties as are recognized 
     in a State as an administrative agency for the State's public 
     elementary schools or secondary schools. Such term includes 
     any other public institution or agency having administrative 
     control and direction of a public elementary school or 
     secondary school.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(7) Tribal governing body.--The term `tribal governing 
     body' means, with respect to any school that receives 
     assistance under this Act, the recognized governing body of 
     the Indian tribe involved.
       ``(8) Tribal organization.--
       ``(A) In general.--The term `tribal organization' means--
       ``(i) the recognized governing body of any Indian tribe; or
       ``(ii) any legally established organization of Indians 
     that--

       ``(I) is controlled, sanctioned, or chartered by such 
     governing body or is democratically elected by the adult 
     members of the Indian community to be served by such 
     organization; and


       ``(II) includes the maximum participation of Indians in all 
     phases of the organization's activities.

       ``(B) Authorization.--In any case in which a grant is 
     provided under this part to an organization to provide 
     services through a tribally controlled school benefiting more 
     than 1 Indian tribe, the approval of the governing bodies of 
     Indian tribes representing 80 percent of the students 
     attending the tribally controlled school shall be considered 
     a sufficient tribal authorization for such grant.
       ``(9) Tribally controlled school.--The term `tribally 
     controlled school' means a school that--
       ``(A) is operated by an Indian tribe or a tribal 
     organization, enrolling students in kindergarten through 
     grade 12, including a preschool;
       ``(B) is not a local educational agency; and
       ``(C) is not directly administered by the Bureau of Indian 
     Affairs.''.

     SEC. 1044. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.

       (a) In General.--Notwithstanding the Tribally Controlled 
     Schools Act of 1988 (25 U.S.C. 2501 et seq.), or the 
     regulations promulgated under such Act, the Ojibwa Indian 
     School located in Belcourt, North Dakota, may use amounts 
     received under such Act to enter into, and make payments 
     under, a lease described in subsection (b).
       (b) Lease.--A lease described in this subsection is a lease 
     that--
       (1) is entered into by the Ojibwa Indian School for the use 
     of facilities owned by St. Ann's Catholic Church located in 
     Belcourt, North Dakota;
       (2) is entered into in the 2001-2002 school year, or any 
     other school year in which the Ojibwa Indian School will use 
     such facilities for school purposes;
       (3) requires lease payments in an amount determined 
     appropriate by an independent lease appraiser that is 
     selected by the parties to the lease, except that such amount 
     may not exceed the maximum amount per square foot that is 
     being paid by the Bureau of Indian Affairs for other 
     similarly situated Indian schools under the Indian Self-
     Determination and Education Assistance Act (Public Law 93-
     638); and
       (4) contains a waiver of the right of St. Ann's Catholic 
     Church to bring an action against the Ojibwa Indian School, 
     the Turtle Mountain Band of Chippewa, or the Federal 
     Government for the recovery of any amounts remaining unpaid 
     under leases entered into prior to the date of enactment of 
     this Act.
       (c) Method of Funding.--Amounts shall be made available by 
     the Bureau of Indian Affairs to make lease payments under 
     this section in the same manner as amounts are made available 
     to make payments under leases entered into by Indian schools 
     under the Indian Self-Determination and Education Assistance 
     Act (Public Law 93-638).
       (d) Operation and Maintenance Funding.--The Bureau of 
     Indian Affairs shall provide funding for the operation and 
     maintenance of the facilities and property used by the Ojibwa 
     Indian School under the lease entered into under subsection 
     (a) so long as such facilities and property are being used by 
     the School for educational purposes.

     SEC. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

       Section 5404(a) of the Augustus F. Hawkins-Robert T. 
     Stafford Elementary and Secondary School Improvement 
     Amendments of 1988 (25 U.S.C. 13d-2(a)) is amended--
       (1) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(a) In General.--The Secretary of the Interior shall not 
     disqualify from continued receipt of general assistance 
     payments from the Bureau of Indian Affairs an otherwise 
     eligible Indian for whom the Bureau is making or may make 
     general assistance payments (or exclude such an individual 
     from continued consideration in determining the amount of 
     general assistance payments for a household) because the 
     individual is enrolled (and is making satisfactory progress 
     toward completion of a program or training that can 
     reasonably be expected to lead to gainful employment) for at 
     least half-time study or training 
     in--''; and
       (2) by striking paragraph (4), and inserting the following:
       ``(4) other programs or training approved by the Secretary 
     or by tribal education, employment or training programs.''.

                  PART E--HIGHER EDUCATION ACT OF 1965

     SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

       Title II of the Higher Education Act of 1965 (20 U.S.C. 
     1021 et seq.) is amended--
       (1) by striking the title heading and inserting the 
     following:
                ``TITLE II--TEACHER QUALITY ENHANCEMENT

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                            PARTNERSHIPS'';

       (2) by striking ``this title'' each place it appears and 
     inserting ``this part''; and
       (3) by adding at the end the following:

       ``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY

     ``SEC. 221. PURPOSE AND PROGRAM AUTHORITY.

       ``(a) Purpose.--It is the purpose of this part to assist 
     consortia of public and private entities--
       ``(1) to carry out programs that prepare prospective 
     teachers to use advanced technology to prepare all students 
     to meet challenging State and local academic content and 
     student academic achievement standards; and
       ``(2) to improve the ability of institutions of higher 
     education to carry out such programs.
       ``(b) Program Authority.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible applicants, or enter into contracts or 
     cooperative agreements with eligible applicants, on a 
     competitive basis in order to pay for the Federal share of 
     the cost of projects to develop or redesign teacher 
     preparation programs to enable prospective teachers to use 
     advanced technology effectively in their classrooms.

[[Page 25800]]

       ``(2) Period of awards.--The Secretary may award grants, or 
     enter into contracts or cooperative agreements, under this 
     part for periods that are not more than 5 years in duration.

     ``SEC. 222. ELIGIBILITY.

       ``(a) Eligible Applicants.--In order to receive a grant or 
     enter into a contract or cooperative agreement under this 
     part, an applicant shall be a consortium that includes the 
     following:
       ``(1) At least one institution of higher education that 
     awards baccalaureate degrees and prepares teachers for their 
     initial entry into teaching.
       ``(2) At least one State educational agency or local 
     educational agency.
       ``(3) One or more of the following entities:
       ``(A) An institution of higher education (other than the 
     institution described in paragraph (1)).
       ``(B) A school or department of education at an institution 
     of higher education.
       ``(C) A school or college of arts and sciences (as defined 
     in section 201(b)) at an institution of higher education.
       ``(D) A professional association, foundation, museum, 
     library, for-profit business, public or private nonprofit 
     organization, community-based organization, or other entity, 
     with the capacity to contribute to the technology-related 
     reform of teacher preparation programs.
       ``(b) Application Requirements.--In order to receive a 
     grant or enter into a contract or cooperative agreement under 
     this part, an eligible applicant shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require. Such 
     application shall include the following:
       ``(1) A description of the proposed project, including how 
     the project would--
       ``(A) ensure that individuals participating in the project 
     would be prepared to use advanced technology to prepare all 
     students, including groups of students who are 
     underrepresented in technology-related fields and groups of 
     students who are economically disadvantaged, to meet 
     challenging State and local academic content and student 
     academic achievement standards; and
       ``(B) improve the ability of at least one participating 
     institution of higher education described in section 
     222(a)(1) to ensure such preparation.
       ``(2) A demonstration of--
       ``(A) the commitment, including the financial commitment, 
     of each of the members of the consortium for the proposed 
     project; and
       ``(B) the active support of the leadership of each 
     organization that is a member of the consortium for the 
     proposed project;
       ``(3) A description of how each member of the consortium 
     will participate in project activities.
       ``(4) A description of how the proposed project will be 
     continued after Federal funds are no longer awarded under 
     this part for the project.
       ``(5) A plan for the evaluation of the project, which shall 
     include benchmarks to monitor progress toward specific 
     project objectives.
       ``(c) Matching Requirements.--
       ``(1) In general.--The Federal share of the cost of any 
     project funded under this part shall not exceed 50 percent. 
     Except as provided in paragraph (2), the non-Federal share of 
     the cost of such project may be provided in cash or in kind, 
     fairly evaluated, including services.
       ``(2) Acquisition of equipment.--Not more than 10 percent 
     of the funds awarded for a project under this part may be 
     used to acquire equipment, networking capabilities, or 
     infrastructure, and the non-Federal share of the cost of any 
     such acquisition shall be provided in cash.

     ``SEC. 223. USE OF FUNDS.

       ``(a) Required Uses.--A consortium that receives a grant or 
     enters into a contract or cooperative agreement under this 
     part shall use funds made available under this part for--
       ``(1) a project creating one or more programs that prepare 
     prospective teachers to use advanced technology to prepare 
     all students, including groups of students who are 
     underrepresented in technology-related fields and groups of 
     students who are economically disadvantaged, to meet 
     challenging State and local academic content and student 
     academic achievement standards; and
       ``(2) evaluating the effectiveness of the project.
       ``(b) Permissible Uses.--The consortium may use funds made 
     available under this part for a project, described in the 
     application submitted by the consortium under this part, that 
     carries out the purpose of this part, such as the following:
       ``(1) Developing and implementing high-quality teacher 
     preparation programs that enable educators--
       ``(A) to learn the full range of resources that can be 
     accessed through the use of technology;
       ``(B) to integrate a variety of technologies into curricula 
     and instruction in order to expand students' knowledge;
       ``(C) to evaluate educational technologies and their 
     potential for use in instruction;
       ``(D) to help students develop their technical skills; and
       ``(E) to use technology to collect, manage, and analyze 
     data to improve teaching and decisionmaking.
       ``(2) Developing alternative teacher development paths that 
     provide elementary schools and secondary schools with well-
     prepared, technology-proficient educators.
       ``(3) Developing achievement-based standards and 
     assessments aligned with the standards to measure the 
     capacity of prospective teachers to use technology 
     effectively in their classrooms.
       ``(4) Providing technical assistance to entities carrying 
     out other teacher preparation programs.
       ``(5) Developing and disseminating resources and 
     information in order to assist institutions of higher 
     education to prepare teachers to use technology effectively 
     in their classrooms.
       ``(6) Subject to section 222(c)(2), acquiring technology 
     equipment, networking capabilities, infrastructure, software, 
     and digital curricula to carry out the project.

     ``SEC. 224. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for each of fiscal years 
     2002 and 2003.''.

     SEC. 1052. CONTINUATION OF AWARDS.

       Notwithstanding any other provision of this Act or the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.), in the case of a person or entity that was 
     awarded a grant, relating to preparing tomorrow's teachers to 
     use technology, that was made pursuant to section 3122 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6832) prior to the date of enactment of this Act, the 
     Secretary of Education shall continue to provide funds in 
     accordance with the terms of such award until the date on 
     which the award period terminates.

                PART F--GENERAL EDUCATION PROVISIONS ACT

     SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, 
                   AND ADMINISTRATION OF CERTAIN PHYSICAL 
                   EXAMINATIONS TO MINORS.

       Section 445(b) of the General Education Provisions Act (20 
     U.S.C. 1232h(b)) is amended--
       (1) by striking paragraphs (1) through (7) and inserting 
     the following new paragraphs:
       ``(1) political affiliations or beliefs of the student or 
     the student's parent;
       ``(2) mental or psychological problems of the student or 
     the student's family;
       ``(3) sex behavior or attitudes;
       ``(4) illegal, anti-social, self-incriminating, or 
     demeaning behavior;
       ``(5) critical appraisals of other individuals with whom 
     respondents have close family relationships;
       ``(6) legally recognized privileged or analogous 
     relationships, such as those of lawyers, physicians, and 
     ministers;
       ``(7) religious practices, affiliations, or beliefs of the 
     student or student's parent; or
       ``(8) income (other than that required by law to determine 
     eligibility for participation in a program or for receiving 
     financial assistance under such program),'';
       (2) by redesignating subsections (c) through (e) as 
     subsections (d) through (f), respectively; and
       (3) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Development of Local Policies Concerning Student 
     Privacy, Parental Access to Information, and Administration 
     of Certain Physical Examinations to Minors.--
       ``(1) Development and Adoption of Local Policies.--Except 
     as provided in subsections (a) and (b), a local educational 
     agency that receives funds under any applicable program shall 
     develop and adopt policies, in consultation with parents, 
     regarding the following:
       ``(A)(i) The right of a parent of a student to inspect, 
     upon the request of the parent, a survey created by a third 
     party before the survey is administered or distributed by a 
     school to a student; and
       ``(ii) any applicable procedures for granting a request by 
     a parent for reasonable access to such survey within a 
     reasonable period of time after the request is received.
       ``(B) Arrangements to protect student privacy that are 
     provided by the agency in the event of the administration or 
     distribution of a survey to a student containing one or more 
     of the following items (including the right of a parent of a 
     student to inspect, upon the request of the parent, any 
     survey containing one or more of such items):
       ``(i) Political affiliations or beliefs of the student or 
     the student's parent.
       ``(ii) Mental or psychological problems of the student or 
     the student's family.
       ``(iii) Sex behavior or attitudes.
       ``(iv) Illegal, anti-social, self-incriminating, or 
     demeaning behavior.
       ``(v) Critical appraisals of other individuals with whom 
     respondents have close family relationships.
       ``(vi) Legally recognized privileged or analogous 
     relationships, such as those of lawyers, physicians, and 
     ministers.
       ``(vii) Religious practices, affiliations, or beliefs of 
     the student or the student's parent.
       ``(viii) Income (other than that required by law to 
     determine eligibility for participation in a program or for 
     receiving financial assistance under such program).
       ``(C)(i) The right of a parent of a student to inspect, 
     upon the request of the parent, any instructional material 
     used as part of the educational curriculum for the student; 
     and

[[Page 25801]]

       ``(ii) any applicable procedures for granting a request by 
     a parent for reasonable access to instructional material 
     within a reasonable period of time after the request is 
     received.
       ``(D) The administration of physical examinations or 
     screenings that the school or agency may administer to a 
     student.
       ``(E) The collection, disclosure, or use of personal 
     information collected from students for the purpose of 
     marketing or for selling that information (or otherwise 
     providing that information to others for that purpose), 
     including arrangements to protect student privacy that are 
     provided by the agency in the event of such collection, 
     disclosure, or use.
       ``(F)(i) The right of a parent of a student to inspect, 
     upon the request of the parent, any instrument used in the 
     collection of personal information under subparagraph (E) 
     before the instrument is administered or distributed to a 
     student; and
       ``(ii) any applicable procedures for granting a request by 
     a parent for reasonable access to such instrument within a 
     reasonable period of time after the request is received.
       ``(2) Parental notification.--
       ``(A) Notification of policies.--The policies developed by 
     a local educational agency under paragraph (1) shall provide 
     for reasonable notice of the adoption or continued use of 
     such policies directly to the parents of students enrolled in 
     schools served by that agency. At a minimum, the agency 
     shall--
       ``(i) provide such notice at least annually, at the 
     beginning of the school year, and within a reasonable period 
     of time after any substantive change in such policies; and
       ``(ii) offer an opportunity for the parent (and for 
     purposes of an activity described in subparagraph (C)(i), in 
     the case of a student of an appropriate age, the student) to 
     opt the student out of participation in an activity described 
     in subparagraph (C).
       ``(B) Notification of specific events.--The local 
     educational agency shall directly notify the parent of a 
     student, at least annually at the beginning of the school 
     year, of the specific or approximate dates during the school 
     year when activities described in subparagraph (C) are 
     scheduled, or expected to be scheduled.
       ``(C) Activities requiring notification.--The following 
     activities require notification under this paragraph:
       ``(i) Activities involving the collection, disclosure, or 
     use of personal information collected from students for the 
     purpose of marketing or for selling that information (or 
     otherwise providing that information to others for that 
     purpose).
       ``(ii) The administration of any survey containing one or 
     more items described in clauses (i) through (viii) of 
     paragraph (1)(B).
       ``(iii) Any nonemergency, invasive physical examination or 
     screening that is--

       ``(I) required as a condition of attendance;
       ``(II) administered by the school and scheduled by the 
     school in advance; and
       ``(III) not necessary to protect the immediate health and 
     safety of the student, or of other students.

       ``(3) Existing policies.--A local educational agency need 
     not develop and adopt new policies if the State educational 
     agency or local educational agency has in place, on the date 
     of enactment of the No Child Left Behind Act of 2001, 
     policies covering the requirements of paragraph (1). The 
     agency shall provide reasonable notice of such existing 
     policies to parents and guardians of students, in accordance 
     with paragraph (2).
       ``(4) Exceptions.--
       ``(A) Educational products or services.--Paragraph (1)(E) 
     does not apply to the collection, disclosure, or use of 
     personal information collected from students for the 
     exclusive purpose of developing, evaluating, or providing 
     educational products or services for, or to, students or 
     educational institutions, such as the following:
       ``(i) College or other postsecondary education recruitment, 
     or military recruitment.
       ``(ii) Book clubs, magazines, and programs providing access 
     to low-cost literary products.
       ``(iii) Curriculum and instructional materials used by 
     elementary schools and secondary schools.
       ``(iv) Tests and assessments used by elementary schools and 
     secondary schools to provide cognitive, evaluative, 
     diagnostic, clinical, aptitude, or achievement information 
     about students (or to generate other statistically useful 
     data for the purpose of securing such tests and assessments) 
     and the subsequent analysis and public release of the 
     aggregate data from such tests and assessments.
       ``(v) The sale by students of products or services to raise 
     funds for school-related or education-related activities.
       ``(vi) Student recognition programs.
       ``(B) State law exception.--The provisions of this 
     subsection--
       ``(i) shall not be construed to preempt applicable 
     provisions of State law that require parental notification; 
     and
       ``(ii) do not apply to any physical examination or 
     screening that is permitted or required by an applicable 
     State law, including physical examinations or screenings that 
     are permitted without parental notification.
       ``(5) General provisions.--
       ``(A) Rules of construction.--
       ``(i) This section does not supersede section 444.
       ``(ii) Paragraph (1)(D) does not apply to a survey 
     administered to a student in accordance with the Individuals 
     with Disabilities Education Act (20 U.S.C. 1400 et seq.).
       ``(B) Student rights.--The rights provided to parents under 
     this section transfer to the student when the student turns 
     18 years old, or is an emancipated minor (under an applicable 
     State law) at any age.
       ``(C) Information activities.--The Secretary shall annually 
     inform each State educational agency and each local 
     educational agency of the educational agency's obligations 
     under this section and section 444.
       ``(D) Funding.--A State educational agency or local 
     educational agency may use funds provided under part A of 
     title V of the Elementary and Secondary Education Act of 1965 
     to enhance parental involvement in areas affecting the in-
     school privacy of students.
       ``(6) Definitions.--As used in this subsection:
       ``(A) Instructional material.--The term `instructional 
     material' means instructional content that is provided to a 
     student, regardless of its format, including printed or 
     representational materials, audio-visual materials, and 
     materials in electronic or digital formats (such as materials 
     accessible through the Internet). The term does not include 
     academic tests or academic assessments.
       ``(B) Invasive physical examination.--The term `invasive 
     physical examination' means any medical examination that 
     involves the exposure of private body parts, or any act 
     during such examination that includes incision, insertion, or 
     injection into the body, but does not include a hearing, 
     vision, or scoliosis screening.
       ``(C) Local educational agency.--The term `local 
     educational agency' means an elementary school, secondary 
     school, school district, or local board of education that is 
     the recipient of funds under an applicable program, but does 
     not include a postsecondary institution.
       ``(D) Parent.--The term `parent' includes a legal guardian 
     or other person standing in loco parentis (such as a 
     grandparent or stepparent with whom the child lives, or a 
     person who is legally responsible for the welfare of the 
     child).
       ``(E) Personal information.--The term `personal 
     information' means individually identifiable information 
     including--
       ``(i) a student or parent's first and last name;
       ``(ii) a home or other physical address (including street 
     name and the name of the city or town);
       ``(iii) a telephone number; or
       ``(iv) a Social Security identification number.
       ``(F) Student.--The term `student' means any elementary 
     school or secondary school student.
       ``(G) Survey.--The term `survey' includes an evaluation.''.

     SEC. 1062. TECHNICAL CORRECTIONS.

       The General Education Provisions Act (20 U.S.C. 1221 et 
     seq.) is amended as follows:
       (1) Section 431.--Section 422 (the second place it appears) 
     (20 U.S.C. 1231a), relating to collection and dissemination 
     of information, is redesignated as section 431.
       (2) Section 441.--Section 3501(c) of the Augustus F. 
     Hawkins-Robert T. Stafford Elementary and Secondary School 
     Improvement Amendments of 1988 (102 Stat. 357) is amended by 
     striking ``through `such Act)' '' and inserting ``through 
     `Act of 1965' '', effective as of the date of enactment of 
     that law.
       (3) Section 444.--Section 444 (20 U.S.C. 1232g) is 
     amended--
       (A) in subsection (a)(1), by moving subparagraph (B) four 
     ems to the left;
       (B) in subsection (b)(1)(J), by moving subparagraph (J)(i) 
     and clause (ii) of subparagraph (J) each two ems to the left;
       (C) in the undesignated text following subsection 
     (b)(1)(J)(ii), by striking ``clause (E)'' and inserting 
     ``subparagraph (E)''; and
       (D) in subsection (b), by moving paragraph (7)(A) and 
     subparagraph (B) of paragraph (7) each two ems to the left.
       (4) Section 447.--Section 447(b) (20 U.S.C. 1232j(b)) is 
     amended by striking ``et seq.''.
       (5) Section 475.--Section 475(b)(2) (20 U.S.C. 1235d) is 
     amended by striking ``section 4703(3)'' and inserting 
     ``section 473(3)''.
       (6) Section 477.--Section 477 (20 U.S.C. 1235f) is amended 
     by striking ``section 4702'' and inserting ``472''.

                  PART G--MISCELLANEOUS OTHER STATUTES

     SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.

       (a) Compensation.--Section 5314 of title 5, United States 
     Code, is amended by adding at the end the following:
       ``Under Secretary of Education''.
       (b) Effective Date.--This section shall take effect on the 
     first day of the first pay period on or after the date of 
     enactment of this Act.

     SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.

       (a) Coordinator for the Outlying Areas.--Title II of the 
     Department of Education Organization Act (20 U.S.C. 3411 et 
     seq.) is amended by adding at the end the following new 
     section:


                  ``coordinator for the outlying areas

       ``Sec. 220. (a) Establishment.--The Secretary shall 
     designate an office of the Department to coordinate the 
     activities of the Department as they relate to the outlying 
     areas.
       ``(b) Appointment.--Not later than 90 days after the date 
     of enactment of the No Child Left Behind Act of 2001, the 
     head of the office designated under subsection (a) shall 
     appoint a coordinator for the outlying areas, who shall be a 
     person with substantial experience in the operation of 
     Federal programs in the outlying areas.
       ``(c) Duties.--The coordinator for the outlying areas 
     shall--
       ``(1) serve as the principal advisor to the Department on 
     Federal matters affecting the outlying areas;

[[Page 25802]]

       ``(2) evaluate, on a periodic basis, the needs of education 
     programs in the outlying areas;
       ``(3) assist with the coordination of programs that serve 
     the outlying areas; and
       ``(4) provide guidance to programs within the Department 
     that serve the outlying areas.
       ``(d) Outlying Areas Defined.--As used in this section, the 
     term `outlying areas' includes Guam, the Virgin Islands, 
     American Samoa, and the Commonwealth of the Northern Marianas 
     Islands, but does not include the Freely Associated States of 
     the Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau.''.
       (b) Renaming of Office.--The Department of Education 
     Organization Act (20 U.S.C. 3401 et seq.) is amended by 
     striking ``Office of Bilingual Education and Minority 
     Languages Affairs'' and ``Office of Bilingual Education'' 
     each place either such term appears and inserting ``Office of 
     English Language Acquisition, Language Enhancement, and 
     Academic Achievement for Limited English Proficient 
     Students''.
       (c) Clerical Amendments.--The Department of Education 
     Organization Act (20 U.S.C. 3401 et seq.) is amended as 
     follows:
       (1) Table of contents.--The table of contents in section 1 
     (20 U.S.C. 3401 note) is amended--
       (A) by amending the item relating to section 209 to read as 
     follows:

``Sec. 209. Office of English Language Acquisition, Language 
              Enhancement, and Academic Achievement for Limited English 
              Proficient Students.'';

       (B) by amending the item relating to section 216 to read as 
     follows:

``Sec. 216. Office of English Language Acquisition, Language 
              Enhancement, and Academic Achievement for Limited English 
              Proficient Students.''; and

       (C) by inserting after the item relating to section 217 the 
     following new items:

``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.

       (2) Section headings.--
       (A) Section 209.--The section heading for section 209 of 
     the Department of Education Organization Act (20 U.S.C. 3420) 
     is amended to read as follows:


  ``office of english language acquisition, language enhancement, and 
    academic achievement for limited english proficient students''.

       (B) Section 216.--The section heading for section 216 of 
     the Department of Education Organization Act (20 U.S.C. 
     3423d) is amended to read as follows:

     ``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE 
                   ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR 
                   LIMITED ENGLISH PROFICIENT STUDENTS.''.

       (d) Conforming Amendments.--Sections 209 and 216 of the 
     Department of Education Organization Act (20 U.S.C. 3420, 
     3423d) are amended by striking ``Director of Bilingual 
     Education and Minority Languages Affairs'' each place such 
     term appears and inserting ``Director of English Language 
     Acquisition, Language Enhancement, and Academic Achievement 
     for Limited English Proficient Students''.
       (e) Technical Corrections.--
       (2) Section 202.--Paragraph (3) of section 202(b) (20 
     U.S.C. 3412(b)(3)), relating to the Assistant Secretary for 
     Educational Research and Improvement (as added by section 
     913(2) of the Goals 2000: Educate America Act (108 Stat. 
     223)), is redesignated as paragraph (4).
       (3) Section 218.--Section 216 (the second place it appears) 
     (20 U.S.C. 3425), relating to the Office of Educational 
     Technology (as added by section 233(a) the Goals 2000: 
     Educate America Act (108 Stat. 154), is redesignated as 
     section 218.

     SEC. 1073. EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999.

       Section 4(b) of the Education Flexibility Partnership Act 
     of 1999 (20 U.S.C. 5891b(b)) is amended to read as follows:
       ``(b) Included Programs.--The statutory or regulatory 
     requirements referred to in subsection (a)(1)(A) are any such 
     requirements for programs that are authorized under the 
     following provisions and under which the Secretary provides 
     funds to State educational agencies on the basis of a 
     formula:
       ``(1) The following provisions of the Elementary and 
     Secondary Education Act of 1965:
       ``(A) Part A (other than sections 1111 and 1116), subpart 3 
     of part B, and parts C, D, and F of title I.
       ``(B) Subparts 2 and 3 of part A of title II.
       ``(C) Subpart 1 of part D of title II.
       ``(D) Subpart 4 of part B of title III, if the funding 
     trigger in section 3001 of such Act is not reached.
       ``(E) Subpart 1 of part A of title IV.
       ``(F) Part A of title V.
       ``(2) The Carl D. Perkins Vocational and Technical 
     Education Act of 1998 (20 U.S.C. 2301 et seq.).''.

     SEC. 1074. EDUCATIONAL RESEARCH, DEVELOPMENT, DISSEMINATION, 
                   AND IMPROVEMENT ACT OF 1994.

       The Educational Research, Development, Dissemination, and 
     Improvement Act of 1994 (20 U.S.C. 6001 et seq.) is amended 
     by adding after part I the following new part:

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

     ``SEC. 995. CONTINUATION OF AWARDS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, from funds appropriated under subsection (b), the 
     Secretary--
       ``(1) shall continue to fund any multiyear grant or 
     contract awarded under section 3141 and parts A and C of 
     title XIII of the Elementary and Secondary Education Act of 
     1965 (as such provisions were in effect on the day preceding 
     the date of enactment of the No Child Left Behind Act of 
     2001), for the duration of that multiyear award in accordance 
     with its terms; and
       ``(2) may extend, on a year-to-year basis, any multiyear 
     grant or contract awarded under an authority described in 
     paragraph (1) that expires after the enactment of the No 
     Child Left Behind Act of 2001, but before the enactment of 
     successor authority to this Act.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated for each fiscal year such sums 
     as may be necessary to carry out subsection (a).''.

     SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.

       Section 5(9) of the National Child Protection Act of 1993 
     (42 U.S.C. 5119c(9)) is amended--
       (1) in subparagraph (A)(i), by inserting ``(including an 
     individual who is employed by a school in any capacity, 
     including as a child care provider, a teacher, or another 
     member of school personnel)'' before the semicolon at the 
     end; and
       (2) in subparagraph (B)(i), by inserting ``(including an 
     individual who seeks to be employed by a school in any 
     capacity, including as a child care provider, a teacher, or 
     another member of school personnel)'' before the semicolon at 
     the end.

     SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Legislative Branch Appropriations Act, 1997.--Section 
     5(d)(1) of the Legislative Branch Appropriations Act, 1997 (2 
     U.S.C. 117b-2(d)(1)) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (b) Legislative Branch Appropriations Act, 1987.--Section 
     104(3)(B)(ii) of the Legislative Branch Appropriations Act, 
     1987 (as incorporated by reference in section 101(j) of 
     Public Law 99-500 and Public Law 99-591) (2 U.S.C. 
     117e(3)(B)(ii)) is amended by striking ``14101'' and 
     inserting ``9101''.
       (c) National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977.--Section 1417(j)(1)(B) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3152(j)(1)(B)) is amended--
       (1) by striking ``14101(25)'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801(25))''.
       (d) Refugee Education Assistance Act of 1980.--Section 
     101(1) of the Refugee Education Assistance Act of 1980 (8 
     U.S.C. 1522 note) is amended by striking ``14101'' and 
     inserting ``9101''.
       (e) Title 10, United States Code.--Section 2194(e)(2) of 
     title 10, United States Code, is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (f) Toxic Substances Control Act.--
       (1) Asbestos.--Paragraphs (7), (9) and (12) of section 202 
     of the Toxic Substances Control Act (15 U.S.C. 2642) are 
     amended by striking ``14101'' and inserting ``9101''.
       (2) Radon.--Section 302(1)(A) of the Toxic Substances 
     Control Act (15 U.S.C. 2662(1)(A)) is amended by striking 
     ``14101'' and inserting ``9101''.
       (g) Higher Education Act of 1965.--Paragraphs (4), (5), 
     (6), (10), and (14) of section 103 of the Higher Education 
     Act of 1965 (20 U.S.C. 1003) are amended by striking 
     ``14101'' and inserting ``9101''.
       (h) General Education Provisions Act.--Section 425(6) of 
     the General Education Provisions Act (20 U.S.C. 1226c(6)) is 
     amended by striking ``14701'' and inserting ``9601''.
       (i) Individuals with Disabilities Education Act.--Section 
     613(f) of the Individuals with Disabilities Education Act (20 
     U.S.C. 1413(f)) is amended by striking paragraph (3).
       (j) Education Amendments of 1972.--Section 908(2)(B) of the 
     Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is 
     amended by striking ``14101'' and inserting ``9101''.
       (k) Carl D. Perkins Vocational and Technical Education Act 
     of 1998.--Section 3 of the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2302) is amended--
       (1) in paragraph (5)--
       (A) by striking ``10306'' and inserting ``5206''; and
       (B) by striking ``(20 U.S.C. 8066)'';
       (2) in paragraph (8) by striking ``14101'' and inserting 
     ``9101''; and
       (3) in paragraphs (16) and (21)--
       (A) by striking ``14101'' and inserting ``9101''; and
       (B) by striking ``(20 U.S.C. 8801)''.
       (l) Education for Economic Security Act.--
       (1) Economic security.--Section 3(3) of the Education for 
     Economic Security Act (20 U.S.C. 3902) is amended--
       (A) in paragraph (3)--
       (i) by striking ``198(a)(7)'' and inserting ``9101''; and
       (B) in paragraph (7)--
       (i) by striking ``198(a)(10)'' and inserting ``9101''; and
       (C) in paragraph (12)--
       (i) by striking ``198(a)(17)'' and inserting ``9101''.

[[Page 25803]]

       (2) Asbestos.--Section 511 of the Education for Economic 
     Security Act (20 U.S.C. 4020) is amended--
       (A) in paragraph (4)(A), by striking ``198(a)(10)'' and 
     inserting ``9101''; and
       (B) in paragraph (5)(A), by striking ``198(a)(7)'' and 
     inserting ``9101''.
       (m) James Madison Memorial Fellowship Act.--Section 815(4) 
     of the James Madison Memorial Fellowship Act (20 U.S.C. 
     4514(4)) is amended by striking ``14101'' and inserting 
     ``9101''.
       (n) National Environmental Education Act.--Section 3(5) of 
     the National Environmental Education Act (20 U.S.C. 5502(5)) 
     is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 3381)''.
       (o) Education Flexibility Partnership Act of 1999.--Section 
     3(1) of the Education Flexibility Partnership Act of 1999 (20 
     U.S.C. 5891a(1)) is amended by striking ``14101'' and 
     inserting ``9101''.
       (p) District of Columbia College Access Act of 1999.--
     Section 3(c)(5) of the District of Columbia College Access 
     Act of 1999 (Public Law 106-98; 113 Stat. 1323) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (q) School-to-Work Opportunities Act of 1994.--Paragraph 
     (5) of section 502(b) of the School-to-Work Opportunities Act 
     of 1994 (20 U.S.C. 6212(b)(5)) is amended to read as follows:
       ``(5) parts K through N of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994; 
     and''.
       (r) National Education Statistics Act of 1994.--Paragraphs 
     (4) and (6) of section 402(c) of the National Education 
     Statistics Act of 1994 (20 U.S.C. 9001(c)) are amended by 
     striking ``14101'' and inserting ``9101''.
       (s) Adult Education and Family Literacy Act.--Section 
     203(13) of the Adult Education and Family Literacy Act (20 
     U.S.C. 9202(13)) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (t) Internal Revenue Code of 1986.--Section 1397E(d)(4)(B) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``14101'' and inserting ``9101''.
       (u) Rehabilitation Act of 1973.--
       (1) Research.--Section 202(b)(4)(A)(i) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) is 
     amended by striking ``14101'' and inserting ``9101''.
       (2) Nondiscrimination.--Section 504(b)(2)(B) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is 
     amended by striking ``14101'' and inserting ``9101''.
       (v) Family and Medical Leave Act of 1993.--Section 
     108(a)(1)(A) of the Family and Medical Leave Act of 1993 (29 
     U.S.C. 2618(a)(1)(A)) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 2891(12))''.
       (w) Workforce Investment Act of 1998.--Paragraphs (23) and 
     (40) of section 101 of the Workforce Investment Act of 1998 
     (29 U.S.C. 2801) are amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of 
     section 1461 of the Safe Drinking Water Act (42 U.S.C. 300j-
     21) are amended by striking ``14101'' and inserting ``9101''.
       (y) Civil Rights Act of 1964.--Section 606(2)(B) of the 
     Civil Rights Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is 
     amended by striking ``14101'' and inserting ``9101''.
       (z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) 
     of the Age Discrimination Act of 1975 (42 U.S.C. 
     6107(4)(B)(ii)) is amended by striking ``14101'' and 
     inserting ``9101''.
       (aa) Hazardous and Solid Waste Amendments of 1989.--Section 
     221(f)(3)(B)(i) of The Hazardous and Solid Waste Amendments 
     of 1984 (42 U.S.C. 6921 note) is amended by striking 
     ``198(a)(7)'' and inserting ``9101''.
       (bb) Albert Einstein Distinguished Educator Fellowship Act 
     of 1994.--Paragraphs (1), (2), and (3) of section 514 of the 
     Albert Einstein Distinguished Educator Fellowship Act of 1994 
     (42 U.S.C. 7382b) are amended by striking ``14101'' and 
     inserting ``9101''.
       (cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act 
     entitled ``An Act to authorize appropriations for carrying 
     out the Earthquake Hazards Reduction Act of 1977 for fiscal 
     years 1998 and 1999, and for other purposes'', approved 
     October 1, 1997 (42 U.S.C. 7704 note) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (dd) State Dependent Care Development Grants Act.--
     Paragraphs (6) and (11) of section 670G of the State 
     Dependent Care Development Grants Act (42 U.S.C. 9877) are 
     amended by striking ``14101'' and inserting ``9101''.
       (ee) Community Services Block Grant Act.--Section 682(b)(4) 
     of the Community Services Block Grant Act (42 U.S.C. 
     9923(b)(4)) is amended--
       (1) by striking ``14101'' and inserting ``9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (ff) National and Community Service Act of 1990.--
     Paragraphs (8), (14), (22), and (28) of section 101 of the 
     National and Community Service Act of 1990 (42 U.S.C. 12511) 
     are amended by striking ``14101'' and inserting ``9101''.
       (gg) Telecommunications Act of 1996.--Section 706(c)(2) of 
     the Telecommunications Act of 1996 (47 U.S.C. 157 note) is 
     amended--
       (1) by striking ``paragraphs (14) and (25), respectively, 
     of section 14101'' and inserting ``section 9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (hh) Communications Act of 1934.--Section 254(h)(7)(A) of 
     the Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is 
     amended--
       (1) by striking ``paragraphs (14) and (25), respectively, 
     of section 14101'' and inserting ``section 9101''; and
       (2) by striking ``(20 U.S.C. 8801)''.
       (ii) Transportation Equity Act for the 21st Century.--
     Section 4024 of the Transportation Equity Act for the 21st 
     Century (49 U.S.C. 31136 note) is amended by striking 
     ``14101'' and inserting ``9101''.
       And the Senate agree to the same.

     John Boehner,
     Thomas E. Petri,
     Marge Roukema,
     Howard ``Buck'' McKeon,
     Mike Castle,
     Lindsey, Graham,
     Van Hilleary,
     Johnny, Isakson,
     George Miller,
     Dale E. Kildee,
     Majors R. Owens,
     Patsy T. Mink,
     Robert E. Andrews,
     Tim Roemer,
                                Managers on the Part of the House.

     Edward Kennedy,
     Christopher Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     John Edwards,
     Hillary Rodham Clinton,
     Joseph Lieberman,
     Evan Bayh,
     Judd Gregg,
     Bill Frist,
     Mike Enzi,
     Tim Hutchinson,
     John Warner,
     Kit Bond,
     Pat Roberts,
     Susan Collins,
     Jeff Sessions,
     Mike DeWine,
     Wayne Allard,
     John Ensign,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill, (H.R. 1), to close the 
     achievement gap with accountability, flexibility, and choice, 
     so that no child is left behind, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect to the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck all of the text of the House 
     bill after the enacting clause and inserted a substitute 
     text.
       The House recedes from its disagreement to all of the 
     amendment of the Senate with an amendment that is a 
     substitute for the House bill and the Senate amendment. The 
     differences between the House bill, the Senate amendment, and 
     the substitute agreed to in conference are noted below, 
     except for clerical corrections, conforming changes made 
     necessary by agreements reached by the conferees, and minor 
     drafting and clerical changes.

                  Title I, Part A, Subpart 2 (Formula)

       **Note: The side-by-sides were numbered wrong, so these 
     notes have been re-numbered. To correlate these notes with 
     your side-by-side, add 15 to the side-by-side note number to 
     get these re-numbered notes.
       501. The House bill and the Senate amendment are 
     substantially the same with exception of technical 
     differences.
       LC
       502. Both bills provide assistance to the outlying areas. 
     The Senate amendment, but not the House bill, provides 
     assistance to the outlying areas in accordance with such 
     criteria as the Secretary determines will best carry out the 
     purpose of this part.
       LC--conform to note 504.
       503. The House bill and the Senate amendment are 
     substantially the same except the Senate amendment clarifies 
     that grants are specifically to local educational agencies.
       HR
       504. Both the House bill and the Senate amendment authorize 
     a competition for grants. The House bill authorizes the 
     competition for FY2002 and FY2003, while the Senate amendment 
     authorizes the competition for FY2002 and each of the 6 
     succeeding fiscal years. The House bill and the Senate 
     amendment have two different ways of referring to the $5 
     million reserved for the Freely Associated States. The Senate 
     amendment authorizes the Secretary to reserve $5 million for 
     the competitive grants from funds under subsection (a)(1), 
     for the Freely Associated States. The House bill, but not the 
     Senate amendment, caps the reservation at the level reserved 
     for the Freely Associated

[[Page 25804]]

     States in FY1999, which was $5 million. The House bill 
     directs the Secretary to make competitive grant awards 
     pursuant to the recommendations of the Pacific Region 
     Educational Laboratory while the Senate amendment allows the 
     Secretary to award grants ``taking into consideration'' the 
     recommendations of the Pacific Region Educational Laboratory. 
     The House bill provides for competitive grants to outlying 
     areas and Freely Associated States while the Senate amendment 
     includes only the Freely Associated States.
       HR with amendment to strike ``For fiscal year 2002, and 
     each of the 6 succeeding fiscal years'' and insert ``Until an 
     agreement for the extension of United States education 
     assistance under the Compact of Free Association for each 
     appropriate outlying area enters into effect after the date 
     of enactment of this Act.
       505. The Senate amendment, but not the House bill, provides 
     that funds may only be used for specified purposes under this 
     paragraph.
       HR with an amendment to insert ``that assist all students 
     with meeting challenging State academic content standards'' 
     after ``to provide direct educational services'' in (ii).
       506. The House bill and the Senate amendment both permit 
     the Secretary to provide 5 percent of the amount reserved for 
     grants under this paragraph to the Pacific Region Educational 
     Laboratory for pay for administrative costs. There are minor 
     technical differences in wording.
       SR
       507. The House bill, but not the Senate amendment, includes 
     a special rule whereby, consolidation authority under P.L. 
     95-134 does not apply with respect to these funds.
       SR
       508. The House bill, but not the Senate amendment, includes 
     definitions of ``Freely Associated States'' and ``Outlying 
     Area'' for purposes of subsection (a) and (b). See also note 
     29 in Title VIII's General Provisions regarding definitions 
     of these words. See also note 507 following.
       LC--conform and put in Title VIII
       509. The House bill and the Senate amendment are identical, 
     except the House bill uses the word ``allotted'' while the 
     Senate amendment uses the word ``reserved.''
       SR
       510. The House bill and the Senate amendment are identical, 
     except the House bill uses the word ``allotted'' while the 
     Senate amendment uses the word ``reserved.''
       SR
       511. The House bill and the Senate amendment are 
     substantially the same, except the House bill refers to 
     FY2002-FY2006 while the Senate amendment refers to FY2002-
     FY2008. The House bill refers to amounts ``equal to'' the 
     amount appropriated to carry out section 1124 while the 
     Senate amendment refers to amounts ``less than or equal to'' 
     the amount appropriated to carry out section 1124. In effect, 
     the House bill and Senate amendment are the same, as long as 
     appropriations are at or above the FY2001 level.
       SR with an amendment to strike ``2006'' and insert 
     ``2007''.
       512. The Senate amendment refers to amounts appropriated 
     that are not used under paragraph (1) while the House bill 
     does not have a similar clause.
       SR
       513. The House bill allocates funds under section 1125 
     according to the extent to which the amount appropriated 
     under 1002(a) for the current fiscal year exceeds the amount 
     appropriated for fiscal year 2001. The Senate amendment 
     allocates funds in accordance with section 1125 for which a 
     determination is made that funds are not used to carry out 
     paragraphs (1) and (2). In effect, the House bill and Senate 
     amendment are the same.
       SR
       514. The House bill and Senate amendment have identical 
     provisions on ratable reductions.
       LC
       515. The House bill includes a hold harmless provision for 
     sections 1124 and 1125 together, with a separate provision 
     for section 1124A. The Senate amendment includes a hold 
     harmless for sections 1124, 1124A and 1125 as one provision. 
     The House bill provides for basic and targeted grants a hold 
     harmless of 95 percent, 90 percent and 85 percent based on 
     ranges of percentages of poor children in LEAs, while the 
     Senate amendment provides, for basic, concentration, and 
     targeted grants, a hold harmless based on the greater of 100% 
     of what a district received for 2001 or the amount the 
     district would have received under the statutory formula 
     without applying any hold harmless. Under the House bill, the 
     hold harmless provisions apply separately to each formula, as 
     opposed to being applied to total grants under all three 
     formulas. The Senate amendment applies to the FY2001 grant 
     amount for each year, not to the previous year's grant 
     amount, as in the House bill.
       SR
       516. The House bill, but not the Senate amendment provides 
     for an 85 percent hold harmless for section 1124A 
     (concentration) grants. Compare to Senate provision above.
       SR with an amendment--apply according to district poverty 
     level a sliding scale hold harmless of 85 percent to 95 
     percent of previous year's grant to basic, concentration, and 
     targeted formulas, separately.
       517. The House bill, but not the Senate amendment, provides 
     a special rule regarding ineligible LEAs with respect to 
     grants under section 1124A. See also the ``Special Rules'' 
     under subsection (c)(2) of the Senate bill for minimum 
     eligibility criteria.
       SR
       518. The Senate amendment, but not the House bill, 
     prohibits the Secretary from taking into account the hold 
     harmless for purposes of calculating State or local 
     allocations for any other program that relies on Part A 
     allocations.
       HR
       519. The House bill, and the Senate amendment contain the 
     same provision (see section 1122(c)(3) of the Senate 
     amendment), which provides a special rule for addressing 
     situations where allocations for counties are insufficient to 
     meet the hold harmless requirements for every local 
     educational agency within that county. Under such 
     circumstances, the State educational agency shall reallocate 
     funds from all other local educational agencies in the State 
     that are receiving funds in excess of the hold harmless 
     amounts.
       LC
       520. The Senate amendment, but not the House bill, requires 
     the Secretary of Education to use updated population data 
     published by the Department of Commerce for purposes of 
     carrying out grants under section 1124, unless the Secretary 
     of Education and the Secretary of Commerce determine the use 
     of the updated population data would be inappropriate or 
     unreliable. The Senate amendment also includes provisions 
     relating to inappropriate or unreliable data, poverty 
     criteria, authorizations of appropriations, special rules, 
     and calculations based on population data for counties. The 
     Senate amendment provides for the use of population updates 
     annually, rather than every second year, as under the House 
     bill.
       HR with an amendment to insert ``annually'' between ``use'' 
     and ``updated'' in clause (i); Allow for biennial data usage 
     when annually updated data in not available; strike clause 
     (iv) Authorization of Appropriations and subclauses (II) and 
     (III) of clause (ii);
       LC on Senate (3).
       Report Language:
       The Conferees strongly urge the Department of Education and 
     the Department of Commerce to work collaboratively to produce 
     annually updated data on the number of poor children as soon 
     as possible, but not later than March 2003. The conferees 
     believe it is imperative that the departments use annually 
     updated data as produced by the Department of Commerce, as 
     provided for in the Conference agreement. The Conferees 
     recognize that additional resources will likely be necessary 
     to produce annually updated data and therefore expect the 
     Departments of Commerce and Education to submit budget 
     requests that reflect the efforts that will be necessary to 
     carry out this new responsibility.
       521. The House bill and the Senate amendment on ratable 
     reductions are identical.
       LC
       522. The Senate amendment includes definitions for ``Freely 
     Associated States,'' and ``Outlying Areas,'' for purposes of 
     this subpart. The House bill, in note 493 above, includes 
     definitions of ``Freely Associated States'' and ``Outlying 
     Areas.'' See also note 29 in Title VIII (General Provisions) 
     for definition of ``Outlying Area.''
       LC
       523. The House bill and the Senate amendment both include 
     definitions of the term ``State.'' The Senate amendment 
     references the definition for purposes of this subpart while 
     the House bill references applicability to section 1122, 
     1124, 1124A, and 1125.
       LC
       524. The House bill and the Senate amendment have identical 
     provisions for the amount of grants to local educational 
     agencies.
       LC
       525. The House bill and the Senate amendment are identical 
     for the calculation of grants for purposes of allocations to 
     local educational agencies.
       LC
       526. The House bill and Senate amendment have substantially 
     similar provisions for allocations to large and small local 
     educational agencies with minor technical differences.
       LC
       527. The House bill and the Senate amendment have 
     substantially similar provisions on allocations to counties 
     with minor technical differences.
       LC
       528. The House bill and the Senate amendment are identical 
     except the House bill uses the ``Assurances'' in the heading 
     and the Senate bill uses the phrase ``Allocations to Local 
     Educational Agencies.''
       HR
       529. The House bill and the Senate amendment are 
     substantially similar with minor technical differences in 
     wording.
       LC
       530. The House bill and Senate amendment are substantially 
     similar with minor technical differences in wording.
       LC

[[Page 25805]]


       531. The House bill, but not the Senate amendment, includes 
     minimum percentages for each of fiscal years 2002-2005 and 
     succeeding fiscal years in the calculations of the 
     expenditure factor for Puerto Rico.
       SR with an amendment to insert:
       ``(v) for fiscal year 2006, 92.5 percent; and
       ``(vi) for fiscal year 2007, 100 percent.''
       532. The House bill, but not the Senate amendment, includes 
     adjustments in allocations to Puerto Rico relative to any of 
     the 50 States or the District of Columbia receiving less than 
     in the preceding fiscal year.
       SR with an amendment to strike the ``or'' after ``(A)(i)'' 
     and insert a comma, and insert ``, or the percentage 
     specified in subparagraph (B) for the preceding fiscal year'' 
     after ``the percentage used for the preceding fiscal year''.
       533. The House bill, but not the Senate amendment, includes 
     a definition of ``State'' for purposes of this subsection.
       SR
       534. The House bill and Senate amendment have identical 
     provisions relating to the minimum number of children to 
     qualify for a basic grant.
       LC
       535. The House bill and the Senate amendment on categories 
     of children to be counted are identical except the Senate 
     amendment references both paragraphs (2) and (3) for the 
     determination, while the House bill only references paragraph 
     (2).
       HR
       536. Paragraph (B) of the Senate amendment is identical to 
     Paragraph (C) of the House bill.
       LC
       537. Paragraph (B) of the House bill is identical to 
     Paragraph (C) of the Senate amendment with minor technical 
     differences in the placement of parentheticals.
       LC
       538. Paragraph (C) of the House bill and Paragraph (B) of 
     the Senate amendment are identical.
       LC
       539. The House bill and the Senate amendment are identical 
     with the exception of minor technical differences in 
     drafting.
       SR
       540. The House bill and the Senate amendment are identical 
     with minor technical differences in drafting. However, see 
     also note 505 above for section (c)(1)(C)(i) of the Senate 
     amendment which provides population updates every year rather 
     than every second year as under the House bill and under 
     (c)(3) of the Senate amendment.
       LC--conform with note 520.
       541. The House bill and the Senate amendment are identical 
     with the exception of technical differences in punctuation.
       LC
       542. The House bill and Senate amendment are identical with 
     minor technical differences in cross references.
       LC
       543. The House bill and Senate amendment are identical with 
     minor technical differences.
       HR with an amendment to increase small state minimum for 
     funds above FY 2001 level to .35 percent with current law per 
     pupil grant cap adjusted accordingly.
       544. The House bill and Senate amendment have substantially 
     similar provisions on eligibility for concentration grants, 
     except Guam, American Samoa, the Virgin Islands, and the 
     Commonwealth of the Northern Mariana Islands are not eligible 
     for such grants under the House bill. See also section 1123 
     of the Senate amendment which defines ``state'' as the 50 
     states, the District of Columbia and Puerto Rico for purposes 
     of subpart 2. Accordingly, the effect of the House bill and 
     Senate amendment herein is the same.
       HR with an amendment to increase small state minimum for 
     funds above FY 2001 level to .35 percent with current law per 
     pupil grant cap adjusted accordingly.
       545. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment includes a calculation relating to Puerto Rico in 
     the formula. The effect of the House bill and the Senate 
     amendment is the same.
       HR with an amendment to strike ``section 1124(a)(3)'' and 
     insert ``section 1124(a)(4)''.
       546. The House bill and the Senate amendment are identical.
       LC
       547. The House bill and the Senate amendment are identical 
     except in paragraph (B) the House bill refers to 
     ``allocation'' to the State while the Senate amendment refers 
     to ``amount made available to the State.''
       SR
       548. The Senate amendment, but not the House bill, includes 
     a ratable reduction rule.
       SR
       549. The House bill and the Senate amendment have 
     substantially similar provisions regarding minimum grants 
     with technical differences in wording. The Senate amendment 
     refers to States receiving .25 percent or less while the 
     House bill refers to minimum grants.
       SR with an amendment to strike ``In States that receive the 
     minimum grant under subsection (a)(1)(B)'' and to insert ``In 
     any State for which on the date of enactment of The No Child 
     Left Behind Act of 2001 the number of children counted under 
     section 1124(c) is less than 0.25 percent of the number of 
     those children counted for all States''.
       550. The House bill and Senate amendment on targeted grants 
     are substantially the same with technical differences, 
     including differences in formatting.
       HR
       551. The House bill and Senate amendment are substantially 
     the same. However, the House bill refers to a State and the 
     District of Columbia while the Senate amendment refers to a 
     State ``(other than the Commonwealth of Puerto Rico).''
       LC
       552. The House bill and the Senate amendment are 
     substantially the same.
       LC
       553. The House bill and the Senate amendment on weighted 
     child counts are identical with technical differences.
       HR with an amendment to update quintiles as per latest 
     available Census poverty data and to strike ``1.72'' and 
     insert ``1.82'' in subparagraph (D) of paragraphs (1) and 
     (2).
       554. The House bill and the Senate amendment are 
     substantially the same.
       LC
       555. The House bill and the Senate amendment have 
     substantially different provisions for the state minimum. The 
     House bill guarantees .25% of appropriations or the average 
     of .25% of the amount available to carry out the 
     concentration grants section and 150% of the national 
     average. The Senate amendment provides a .5% minimum grant.
       SR with an amendment to strike ``.25'' and insert ``.35'' 
     in its place; and strike ``one quarter of 1'' and insert 
     ``.35''.
       556. The Senate amendment, but not the House bill, includes 
     findings relative to the funding of targeted grants, and a 
     statement on funding such grants. The Senate amendment 
     effectively re-emphasizes the text in section 1122(a).
       HR with an amendment to strike all language in subsection 
     (b) and insert the following:
       ``(b) Limitation on Allocation of Title I Funds Contingent 
     on Adequate Funding of Targeted Grants.--Pursuant to section 
     1122, the total amount allocated in any fiscal year after 
     fiscal year 2001 for programs and activities under Part A of 
     Title I of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311 et seq.) shall not exceed the amount 
     allocated in fiscal year 2001 for such programs and 
     activities unless the amount available for targeted grants to 
     local educational agencies under section 1125 of that Act (20 
     U.S.C. 6335) in the applicable fiscal year meets the 
     requirements of section 1122 (a).''
       557. The Senate amendment, but not the House bill, includes 
     an education finance incentive program. The Senate amendment, 
     but not the House bill, also provides for a school finance 
     equity study in subsection (f).
       HR with an amendment:
       (1) funds distributed to states based on multiplication of 
     each state's effort factor, equity factor, total number of 
     children counted under section 1124 (c), and ``cost of 
     education factor'' described in section 1124 (a)(1)(B), 
     except that the amount determined under that subparagraph 
     shall not be less than 34 percent or more than 46 percent of 
     the average per pupil expenditure in the United States;
       (2) funds distributed within state via section 1125 in 
     states with an equity factor that is greater than 1.2, via 
     section 1125 with a maximum weight of 6 in states with an 
     equity factor greater than 1.1 and less than 1.2, and via 
     section 1125 with a maximum weight of 8 in states with an 
     equity factor greater than 1.0 and less than 1.1;
       (3) strike ``.5'' and insert ``.35'' in subparagraph (B) of 
     paragraph (1) of subsection (b).
       (4) strike ``$200,000,000'' and insert ``such sums'' and 
     strike ``6'' and insert ``5'' in subsection (e).
       558. The House bill and the Senate amendment have identical 
     special allocation procedures except the House bill refers to 
     ``neglected children'' while the Senate amendment refers to 
     ``neglected or delinquent children.''
       HR
       559. The House bill and Senate amendment are identical.
       LC
       560. The House bill, but not the Senate amendment, includes 
     a provision relating to secular, neutral, and nonideological 
     educational services and benefits.
       HR

                            Title I, Part A

       1. The House bill and the Senate amendment have different 
     titles.
       SR
       2. The House bill and the Senate amendment are 
     substantially the same.
       LC*
       *Legislative Counsel, only minor and technical changes were 
     made.
       3. The Senate amendment, but not the House bill, amends 
     current law by moving the ``SHORT TITLE'' and ``TABLE OF 
     CONTENTS'' to different sections and adds a ``PURPOSE'' 
     section for the entire Act.
       HR
       4. The House bill, but not the Senate amendment, continues 
     for one year after the enactment of the bill those grants 
     entered

[[Page 25806]]

     into before enactment. The Senate amendment, but not the 
     House bill, contains specific transitional provisions within 
     the various titles of the Senate amendment. Also, see note  
     in Title VIII, General Provisions.
       SR with an amendment to strike ``date that is one year 
     after the effective date of this Act'' and replace with ``the 
     end of fiscal year 2002, unless such grant was awarded after 
     the date of enactment of this Act but prior to January 1, 
     2002, in which case such grant funds shall be available for 
     one year after such grant is awarded.''
       5. The House bill and the Senate amendment vary 
     significantly as to organization of each piece of 
     legislation. The differences between the two bills are fully 
     explained in the notes for each title, which are organized 
     according to the House bill.
       HR/SR with an amendment--(see organizational handout).
       6. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to strike ``on October 1, 2001, or'' and 
     ``, whichever occurs later''
       7. The House bill and the Senate amendment have different 
     headings for Title I.
       SR with amendment to strike ``PERFORMANCE'' and insert 
     ``ACHIEVEMENT''
       8. The House bill and the Senate amendment have different 
     section headings.
       SR
       9. The House bill, but not the Senate amendment contains 
     findings.
       HR
       10. The Senate amendment, but not the House bill, contains 
     a more detailed statement of purpose and references 
     challenging State content and performance standards. Both the 
     House bill and the Senate amendment refer to ``all 
     children''. The Senate amendment, but not the House bill, 
     describes the purpose of the title in the following nine 
     paragraphs.
       HR/SR with amendment to insert:

     ``SEC. 1001. STATEMENT OF PURPOSE.

       ``The purpose of this title is to ensure all children have 
     a fair, equal and significant opportunity to obtain a high 
     quality education and reach, at a minimum, proficiency on 
     challenging state academic achievement standards and state 
     academic assessments. This purpose can be accomplished by--
       ``(1) ensuring high quality academic assessments, 
     accountability systems, teacher preparation and training, 
     curriculum, and instructional materials are aligned with 
     challenging State academic standards so that students, 
     teachers, parents, and administrators can measure progress 
     against common expectations for student academic achievement;
       ``(2) meeting the educational needs of low-achieving 
     children in our Nation's highest-poverty schools, limited 
     English proficient children, migratory children, disabled 
     children, Indian children, neglected or delinquent children, 
     and young children in need of reading assistance;
       ``(3) closing the achievement gap between high and low 
     performing children, especially the achievement gaps between 
     minority and non-minority students, and between disadvantaged 
     and their more advantaged peers;
       ``(4) holding schools, local educational agencies, and 
     States accountable for improving the academic achievement of 
     all students, and identifying and turning around low-
     performing schools that have failed to provide a high quality 
     education to its students, while providing alternatives to 
     students in such schools to enable them to receive a high 
     quality education;
       ``(5) distributing and targeting resources sufficiently to 
     make a difference to local educational agencies and schools 
     where needs are greatest;
       ``(6) improving and strengthening accountability, teaching, 
     and learning by using State assessment systems designed to 
     ensure students are meeting challenging State academic 
     achievement and content standards and increasing achievement 
     overall, but especially for the disadvantaged;
       ``(7) providing greater decision making authority and 
     flexibility to schools and teachers in exchange for greater 
     responsibility for student performance;
       ``(8) providing children an enriched and accelerated 
     educational program, including the use of schoolwide programs 
     or additional services that increase the amount and quality 
     of instructional time;
       ``(9) promoting schoolwide reform and ensuring access of 
     children to effective, scientifically-based instructional 
     strategies and challenging academic content;
       ``(10) significantly elevating the quality of instruction 
     by providing staff in participating schools with substantial 
     opportunities for professional development;
       ``(11) coordinating services under all parts of this title 
     with each other, with other educational services, and to the 
     extent feasible, with other agencies providing services to 
     youth, children, and families;
       ``(12) affording parents substantial and meaningful 
     opportunities to participate in the education of their 
     children;''
       11. The House bill, but not the Senate amendment, contains 
     a subsection that describes the recognition of need by 
     Congress. However, see notes 12 and 13.
       HR (see note 10)
       12. The Senate amendment contains a generally similar 
     provision to the House bill regarding accountability in 
     paragraph (8) of section 1001 of the Senate amendment.
       HR (see note 10)
       13. The Senate amendment contains a generally similar 
     provision to the House bill regarding the quality and 
     alignment of standards, assessments, and other efforts of 
     states and LEAs in paragraph (1) of section 1001 of the 
     Senate amendment.
       HR (see note 10)
       14. The Senate amendment, but not the House bill, provides 
     a short title for the LEA grants subsection.
       HR
       15. The House bill and the Senate amendment are 
     substantially different. The Senate amendment authorizes 
     greater annual appropriations than the House bill and extends 
     the authorization schedule through 2011, while the House bill 
     provides authorization levels through 2006.
       HR/SR with amendment to strike all and insert the 
     following:
       ``(A) $13,500,000,000 for fiscal year 2002;
       ``(B) $16,000,000,000 for fiscal year 2003;
       ``(C) $18,500,000,000 for fiscal year 2004;
       ``(D) $20,500,000,000 for fiscal year 2005;
       ``(E) $22,750,000,000 for fiscal year 2006;
       ``(F) $25,000,000,000 for fiscal year 2007.''
       Report Language:
       The Conferees recognize that Title I grants to local 
     educational agencies are essential to provide low-income 
     students with the resources they need to meet challenging 
     State academic achievement standards. The Conferees further 
     recognize that to implement fully the reforms incorporated in 
     the conference agreement, the local educational agencies will 
     require increased Title I resources, for which reason the 
     Conferees have agreed to significant and annual increases in 
     Title I authorizations.
       According to the Congressional Research Service, one common 
     interpretation of the ``full funding'' theory for Title I, 
     part A is based on the maximum payment calculations under the 
     Basic Grant allocation formula, which is one of the four 
     Title I, part A formulas. The Basic Grant formula establishes 
     a maximum payment based on the number of low-income children 
     (and other children that qualify for services under other 
     Title I programs) multiplied by a State expenditure factor. 
     The State expenditure factor for the Basic Grant formula is 
     the State average expenditure per pupil in average daily 
     attendance for public elementary and secondary education, 
     within the range of 80% to 120% of the national average. The 
     80%--120% range means that if the State average expenditure 
     per pupil is less than 80% of the national average, it is 
     raised to 80%, and if it is above 120%, it is reduced to 
     120%. Under this theory, for fiscal year 2001, Congress 
     provided local educational agencies with roughly 1/3 of 
     ``full funding.''
       The Conferees also note there are other theories that might 
     be used to determine ``full funding'' of Title I, part A, to 
     ensure that the maximum number of low-income, low-achieving 
     children receive direct educational assistance.
       The Conferees wish to emphasize that the conference 
     agreement provides for significantly increased and targeted 
     funding for Title I, part A, and strongly encourage Congress 
     to continue to significantly increase funding for Title I, 
     part A. Such funding, in conjunction with the significant 
     reforms in the conference agreement, is critical to helping 
     schools close the achievement gap and low-income students 
     achieve and succeed academically.''
       16. The House bill and the Senate amendment authorize the 
     same amount for FY 02 and such sums for the out years. The 
     House bill and Senate amendment refer to the same program but 
     have a technical difference in cross-references. Also, the 
     Senate amendment authorizes such sums for the 6 succeeding 
     fiscal years while the House bill authorizes such sums for 
     the 4 succeeding fiscal years. The technical difference in 
     cross-references and the difference in the number of years 
     for which such sums are authorized beyond FY 02 are 
     consistent throughout the remainder of the provisions 
     authorizing appropriations for the various Title I programs.
       LC
       17. The House bill and the Senate amendment are 
     substantially the same with the differences indicated in note 
     16 regarding cross-references and the number of years.
       LC
       18. The House bill and the Senate amendment contain 
     different authorization levels for FY 02, but otherwise are 
     substantially the same with the differences indicated in note 
     16 regarding cross-references and the number of years.
       LC
       19. The House bill authorizes such sums for FY 02 and the 4 
     succeeding fiscal years. The Senate amendment authorizes $25 
     million for FY 02 and such sums for the 6 succeeding fiscal 
     years.
       HR/SR with amendment to move RIF to FIE and to strike 
     paragraph (4) and insert:
       ``(4) Improving Literacy Through Libararies.--For the 
     purpose of carrying out subpart 4 of part B, there are 
     authorized to be appropriated $250,000,000 for fiscal year 
     2002 and such sums as may be necessary for each of the 5 
     succeeding fiscal years.''
       20. The House bill and the Senate amendment contain 
     different authorization levels for FY 02, but otherwise are 
     substantially the same with the difference indicated in note 
     16 regarding the number of years.

[[Page 25807]]

       LC
       21. The House bill and the Senate amendment are 
     substantially the same with the differences indicated in note 
     16 regarding cross-references and the number of years.
       LC
       22. The House bill and the Senate amendment contain 
     different authorization levels for FY 02, but otherwise are 
     substantially the same with the difference indicated in note 
     16 regarding cross-references and the number of years.
       LC
       23. The House bill and the Senate amendment are 
     substantially the same with the difference indicated in note 
     16 regarding the number of years.
       HR/SR to strike all language (Rural authorization is now in 
     Title VI, part B).
       24. The House bill authorizes $6 million for FY 02 and such 
     sums for FY 03. The Senate amendment authorizes $15 million 
     for FY 02 and FY 03, and $5 million for FY 04.
       HR/SR to move to FIE
       25. The House bill and the Senate amendment contain 
     different authorization levels for FY 02, but otherwise are 
     substantially the same with the difference indicated in note 
     16 regarding the number of years.
       HR with amendment to strike paragraph (1) and to insert:
       ``(1) Sections 1501 and 1502.--For the purposes of carrying 
     out sections 1501 and 1502, there are authorized to be 
     appropriated such sums as may be necessary for fiscal year 
     2002 and each of the 5 succeeding fiscal years.''
       26. The House bill authorizes such sums for FY 02 and the 4 
     succeeding fiscal years. The Senate amendment authorizes $25 
     million for FY 02 and such sums for the 6 succeeding fiscal 
     years.
       HR/SR to strike all language
       27. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to strike 1503 in both places and insert 
     1504.
       28. The House bill does not contain a similar provision in 
     Title I, part A. However, see note in Title V of the House 
     bill for the authorization level for 21st Century Community 
     Learning Centers.
       SR with amendment to include agreed upon authorization 
     level in the 21st Century program (Title IV, part B).
       29. The House bill does not contain a similar provision.
       HR with amendment to strike $500,000,000 and insert 
     $125,000,000 and to insert as a new subsection:
       (#--LC) ``Advanced Placement--For the purpose of carrying 
     out part H, there are authorized to appropriated such sums as 
     may be necessary for fiscal year 2002 and for each of the 5 
     succeeding fiscal years.''
       30. The Senate amendment retains the State administration 
     reservation of 1% of programs through a redesignation of Part 
     F of current law, with significant differences between the 
     House bill and the Senate amendment. The House bill limits 
     State administration to 1% of the State's allocation for FY 
     01, while the Senate amendment limits it to 1% of each fiscal 
     year's allocation. In addition, the House bill refers to 
     ``administrative duties assigned'', while the Senate 
     amendment refers to ``proper and efficient performance of its 
     duties''. Otherwise, the Senate amendment does not contain 
     the House bill provisions in paragraphs (2) and (3).
       SR with amendment to strike paragraphs (1) and (2) and 
     insert:
       (1)(A) To carry out administrative duties assigned under 
     parts A, C, and D of this title, each State may reserve the 
     greater of--
       (i) 1 percent of the amounts received under such parts; or
       (ii) $400,000 ($50,000 for each outlying area);
       (B) If the sum of the amounts appropriated for parts A, C, 
     and D of this title is equal to or greater than 
     $14,000,000,000, the reservation described in subparagraph 
     (A)(i) shall not exceed 1 percent of the amount the State 
     received, or would receive, if $14,000,000,000 is allocated 
     among the States for parts A, C, and D of this title.
       31. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to insert as new paragraph (7) and 
     renumber the subsequent paragraphs accordingly:
       ``(7) A State educational agency that receives a grant 
     award under this subsection shall allocate at least 95 
     percent of that amount directly to local educational agencies 
     for schools identified for school improvement, corrective 
     action, and restructuring for activities under section 
     1116(b), or may, with the approval of the local educational 
     agency, directly provide for these activities or arrange for 
     their provision through other entities such as school support 
     teams or educational service agencies.''
       32. The House bill requires the State to reserve 1% of the 
     part A, subpart 2 amount for FY 02 and FY 03, and 3% of the 
     part A, subpart 2 amount for FY 04 through FY 06. The Senate 
     amendment requires the State to reserve 3.5% of the part A, 
     subpart 2 amount for FY 02 and FY 03, and 5% of the part A, 
     subpart 2 amount for FY 04 through FY 08. Otherwise the House 
     bill and Senate amendment are similar.
       SR with amendment to strike ``1 percent'' and insert ``2 
     percent'' and to strike ``3 percent'' and insert ``4 
     percent''.
       33. The House bill requires the State to allocate 95% of 
     the funds reserved to those schools identified pursuant to 
     section 1116(b) that have the greatest need and in sufficient 
     amounts. The Senate amendment requires the State to allocate 
     50% of the funds reserved to those schools identified 
     pursuant to section 1116(c). The House bill and the Senate 
     amendment differ technically in the cross-references.
       SR with amendment to insert ``for activities'' after 
     ``restructuring'' and strike all after ``1116(b)'' and insert 
     ``or may, with the approval of the local educational agency, 
     directly provide for these activities or arrange for their 
     provision through other entities such as school support teams 
     or educational service agencies.''
       34. The Senate amendment does not contain a similar 
     provision.
       SR
       35. The Senate amendment does not contain a similar 
     provision.
       SR
       36. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to add a new subsection:
       ``(f) Reporting--Upon request, the State education agency 
     shall provide a list of those schools that have received 
     funds or services pursuant to subsection (b) and the poverty 
     percentage of such schools.''
       37. The House bill does not contain a similar provision.
       HR with an amendment move language to the State plan and 
     appear as section 1111(c)(3), then renumber current 
     1111(c)(3) as (c)(4), and subsequent sections in like manner. 
     (Cross reference with note 113)
       ``(3) the State educational agency, in consultation with 
     the Governor, will include, as a component of the State plan, 
     a plan to carry out the responsibilities of the State under 
     sections 1116 and 1117, including carrying out the State 
     educational agency's statewide system of technical assistance 
     and support for local educational agencies.''
       38. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill, but not 
     the Senate amendment, requires consultation with entities 
     listed, while the Senate amendment, but not the House bill, 
     specifically refers to the chief State school official who 
     prepares the plan and that the Governor is consulted; and (2) 
     The House bill requires coordination with the acts listed, 
     including the Homeless Act, which the Senate amendment does 
     not, while the Senate amendment requires coordination with 
     the acts listed, including the Adult Education and Family 
     Literacy Act, which the House bill does not.
       SR with an amendment to insert ``Adult Education and Family 
     Literacy Act'' before ``and the McKinney-Vento''.
       39. The House bill and the Senate amendment are 
     substantially similar with a technical difference in cross-
     references.
       LC
       40. The House bill and the Senate amendment are 
     substantially similar with the exception that the House bill, 
     but not the Senate amendment, refers to ``academic content 
     standards'' and ``academic achievement standards''. This 
     difference in references to standards is consistent 
     throughout the remainder of Title I, part A, of each piece of 
     legislation.
       SR
       41. The House bill and the Senate amendment are similar 
     with technical differences.
       SR
       42. The House bill, but not the Senate amendment, 
     specifically refers to students served under this part and 
     emphasizes that all children are held to the same 
     expectations. The Senate amendment, but not the House bill, 
     includes history as a subject for which standards are 
     required. In addition, the House bill refers to the date by 
     which science standards are required, which the Senate 
     amendment also does, but in subparagraph (C)(ii) following of 
     the Senate amendment. See note 44.
       SR
       43. The House bill does not contain a similar provision.
       SR
       44. See note 42 regarding the date by which science 
     standards are required.
       SR
       45. The House bill and the Senate amendment are 
     substantially similar in subparagraph (D) of each piece of 
     legislation, with the exception indicated in note 46 and the 
     reference to standards indicated in note 40.
       LC
       46. The Senate amendment does not contain a similar 
     provision.
       SR
       47. The House bill and the Senate amendment are similar 
     with minor wording differences.
       LC
       48. The Senate amendment does not contain a similar 
     provision.
       SR with an amendment to insert the following language:
       ``(F) Nothing in this part shall prohibit a State from 
     revising, consistent with this section, any standard adopted 
     under this part before or after the date of enactment of the 
     No Child Left Behind Act of 2001.''
       49. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) The 
     Senate amendment, but not the House bill, refers to a single 
     statewide system; (2) The Senate amendment, but not the House 
     bill, references two

[[Page 25808]]

     subparagraphs regarding adequate yearly progress; and (3) The 
     House bill, but not the Senate amendment, refers to all 
     ``public'' elementary and secondary schools.
       HR with an amendment to insert ``public'' before 
     ``elementary and secondary schools''.
       (LC for all other occurrences).
       50. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) See note 40 regarding 
     references to standards; (2) The House bill, but not the 
     Senate amendment, adds the word ``academic'' before 
     ``assessments'', which is consistent throughout the remainder 
     of Title I, part A, of each piece of legislation ; (3) There 
     is a technical difference in cross-references; and (4) The 
     House bill, but not the Senate amendment, refers to all 
     ``public'' school students.
       SR with an amendment to insert ``and other academic 
     indicators consistent with subparagraph (D)'' before ``and 
     take into account''.
       51. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) A 
     technical difference in cross-references; and (2) The House 
     bill, but not the Senate amendment, refers to ``public'' 
     schools.
       SR
       52. The House bill does not contain a similar provision.
       SR
       53. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The Senate amendment, but 
     not the House bill, refers to ``bonuses or recognition''; (2) 
     The House bill, but not the Senate amendment, refers to 
     ``public'' schools; and (3) The Senate amendment, but not the 
     House bill, holds LEAs and schools accountable for student 
     achievement and performance.
       SR with an amendment to strike ``rewards and sanctions'' 
     and insert ``sanctions and rewards, such as bonuses or 
     recognition,''.
       54. The Senate amendment does not contain a similar 
     provision. However, the Senate amendment defines adequate 
     yearly progress in subparagraphs (B) through (H) following of 
     the Senate amendment.
       SR
       55. The House bill and the Senate amendment are similar 
     with the exception that the Senate amendment references a 
     subparagraph the House bill does not.
       SR
       56. The House bill and the Senate amendment are similar 
     with the exception indicated in note 50 regarding public 
     school students.
       SR with amendment to strike ``performance'' and insert 
     ``achievement''
       57. The House bill does not contain a similar provision.
       HR
       58. The House bill does not contain a similar provision.
       HR
       59. The House bill and the Senate amendment are similar 
     with the exceptions indicated in notes 50 regarding 
     assessments and 51 regarding public schools.
       SR
       60. The Senate amendment does not contain a similar 
     provision. However, see the Senate amendment provision in 
     subparagraph (B)(vii) regarding the similar issue of high 
     school completion. See note 65.
       HR
       61. The House bill and the Senate amendment are similar 
     with the exceptions that the House bill provides an exception 
     to the required disaggregation of data which the Senate 
     amendment also does in clause (v)(II) (see note 63), and the 
     House bill refers to ``numerical objectives'', while the 
     Senate amendment refers to ``measurable objectives''.
       SR with amendment to strike ``annual numerical'' and insert 
     ``measurable''
       62. See note 50 regarding public school students.
       SR
       63. The Senate amendment contains two more groups than the 
     House bill: ``migrant students'' and ``students by gender''. 
     However, see note 72 regarding the Senate amendment provision 
     in subparagraph (D)(i)(II). In addition, the House bill, but 
     not the Senate amendment, refers to ``major'' racial and 
     ethnic groups. Also, see note 61 regarding the exception to 
     the disaggregation of data.
       SR
       64. The Senate amendment does not contain a similar 
     provision.
       HR
       65. The Senate does not contain a similar provision. 
     However, see the Senate amendment provision in subparagraph 
     (B)(vii) regarding high school completion and the exception 
     regarding the inclusion of such factors not affecting school 
     identification for school improvement or corrective action 
     (under section 1116 of each piece of legislation). In 
     addition, the House allows for these additional indicators to 
     be discretionary, while the Senate amendment requires high 
     school completion / graduation and one other factor as 
     mandatory.
       SR with amendment to strike clause (v) and insert:
       ``(v) at the State's discretion, may also include other 
     academic indicators such as achievement on additional State 
     or local academic assessments, decreases in grade-to-grade 
     retention rates, attendance rates, and changes in the 
     percentages of students from the subgroups described in 
     [(C)(v)(ii)] completing gifted and talented, advanced 
     placement, and college preparatory courses, except the use of 
     such indicators may not be used to reduce the number or 
     change which schools would otherwise be subject to school 
     improvement, corrective action, or restructuring under 
     section 1116 if such additional indicators were not used, but 
     may be used to identify additional schools for school 
     improvement or in need of corrective action or 
     restructuring.''
       And with amendment to add a special rule that these 
     indicators and those referenced at note 67 shall be 
     consistent with nationally recognized professional standards.
       66. Both the House bill and the Senate amendment require 
     the State to establish a timeline by which the groups of 
     students identified by each piece of legislation (see note 
     63) shall meet or exceed the State's proficient level on the 
     State assessments used under this section and section 1116 of 
     each piece of legislation. However, there are several major 
     differences: (1) The House bill, but not the Senate 
     amendment, establishes a baseline year by which to establish 
     the timeline, which is the first year after enactment; (2) 
     The House bill, but not the Senate amendment, requires a 
     target year to get all groups of students to proficiency that 
     is not to exceed 12 years after the baseline year is 
     established; (3) The Senate amendment, but not the House 
     bill, requires all groups of students to obtain proficiency 
     in 10 years or less after enactment; and (4) See note 50 
     regarding academic assessments.
       SR
       67. See notes 60 and 65.
       HR with amendment to strike ``school completion or'' and to 
     strike ``except that . . . included'' and replace with: `` 
     except the use of such indicators may not be used to reduce 
     the number or change which schools would otherwise be subject 
     to school improvement, corrective action, or restructuring 
     under section 1116 if such additional indicators were not 
     used, but may be used to identify additional schools for 
     school improvement or in need of corrective action or 
     restructuring.''
       Report Language:
       The Conferees intend that adequate yearly progress shall 
     not be met or exceeded based solely on increased dropouts.
       68. The Senate amendment does not contain a similar 
     provision.
       HR with amendment to insert that a State must establish a 
     statutory minimum starting point based on each State's lowest 
     achieving subgroup or the bottom quintile of the total 
     student population in the State, whichever is higher, and 
     that States must raise the ``bar'' at least once every three 
     years in equal increments to reach 100% proficiency in 12 
     years, except the bar may remain the same for the first 2 
     years.
       69. The House bill does not contain a similar provision.
       SR with amendment to insert a significant progress 
     exemption where the subgroup not meeting adequate yearly 
     progress make a 10% reduction in the percentage of students 
     in that subgroup who are not proficient and progress on one 
     other academic indicator would allow a school to avoid being 
     identified/to have met AYP.
       70. The House bill and the Senate amendment are similar 
     with minor wording differences and the following exceptions: 
     (1) See note 63 regarding the differences in groups of 
     students between each piece of legislation; (2) Technical 
     differences in cross-references regarding accommodations for 
     students with disabilities; and (3) The Senate amendment, but 
     not the House bill, contains an exception that this provision 
     shall not abrogate the requirement to assess all students.
       SR with amendment to insert: ``with paragraph [(4)(H)(ii) 
     {House reference}/(3(I)(ii) {Senate reference}] and with 
     accommodations, guidelines, and alternate assessments 
     provided in the same manner as they are provided under'' 
     after ``consistent'' and to strike ``with'' before ``section 
     612(a)(17)(A)'' and to insert at the end after ``based'' the 
     following: ``(except that the 95 percent requirement 
     described in this subparagraph 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).''
       71. The House bill does not contain a similar provision.
       SR
       72. The Senate amendment reduces the groups of students 
     (see note 63) that must make at least 1% gain in the 
     percentage of students meeting the proficient level of 
     performance. Consequently, the composition of the required 
     groups that must be making progress to proficiency under the 
     House bill and the Senate amendment are the same.
       SR
       73. The House bill does not contain a similar provision.
       HR with amendment to add a new clause:
       (#--LC) ``the State, in establishing the uniform procedure 
     for averaging data with the previous 1 or 2 school years 
     preceding the school year for which the determination of 
     meeting or exceeding adequate yearly progress is made, 
     consistent with clause [(ii)], may use the academic 
     assessments described in paragraph [(2)--conform with

[[Page 25809]]

     grade span assessment reference] that were required prior to 
     the date of enactment of this Act until such time as the 
     additional assessments described in paragraph [(2)--conform 
     with 3-8 assessment reference] and required under this Act 
     are being administered in such manner and time as to allow 
     for the uniform procedure for averaging data described in 
     clause [(ii)].''
       74. The House bill and the Senate amendment are 
     substantially similar with the exception that the Senate 
     amendment, but not the House bill, lists specific groups the 
     State must seek comment from. In addition, there are some 
     minor wording differences.
       HR
       75. The House bill and the Senate amendment are 
     substantially similar with the exceptions indicated in notes 
     40 and 50 regarding references to standards and assessments, 
     and with the exception indicated in note 76.
       LC
       76. The House bill and the Senate amendment are similar 
     with the exception that the House bill, but not the Senate 
     amendment, references regulations published by the Secretary 
     relating to the standards and assessments required under 
     Title I, part A.
       SR
       77. The House bill does not contain a similar provision.
       HR with an amendment to strike subparagraph (H) and insert 
     the following as a new subparagraph (H):
       ``(H) The accountability provisions under this Act shall be 
     overseen for charter schools in accordance with State charter 
     school law.''
       Report Language:
       ``Charter schools are public schools and therefore subject 
     to the same accountability requirements of this Act as they 
     apply to other public schools, including Sections 1111 and 
     1116, as developed in each state. However, there is no intent 
     to replace or duplicate the role of authorized chartering 
     agencies, as established under each state's charter school 
     law, in overseeing the Act's accountability requirements for 
     the charter schools that they authorize. Authorized 
     chartering agencies should be held accountable for carrying 
     out their oversight responsibilities as determined by each 
     state through its charter school law and other applicable 
     state laws. This should be done in ways that do not inhibit 
     or discourage the approval or oversight of innovative, high 
     quality charter schools.''
       78. The House bill and the Senate amendment are similar 
     with following exceptions: (1) The House bill, but not the 
     Senate amendment, refers to the State implementing a set of 
     assessments; (2) The Senate amendment, but not the House 
     bill, refers to consultation with LEAs in the assessment 
     plan; (3) The Senate amendment, but not the House bill, 
     requires science assessments, but provides an exception that 
     such assessments shall not be required until the 2007-2008 
     school year; (4) The House bill, but not the Senate 
     amendment, refers to the yearly performance progress of the 
     State; (5) The House bill, but not the Senate amendment, 
     refers to ``challenging'' standards; and (6) See notes 40 and 
     50 regarding references to standards and assessments.
       SR with an amendment to:
       Insert ``in consultation with local educational agencies,'' 
     after ``that the State'', insert ``and science'' after 
     ``language arts'', insert after ``achievement standards'' and 
     before the period the following: ``except that no State shall 
     be required to meet the requirements of this part relating to 
     science assessments until the beginning of the 2007-2008 
     school year''.
       Insert before ``Such assessments shall--'' the following 
     language:
       ``Each State may incorporate the data from these 
     assessments into a state-developed longitudinal data system 
     that links student test scores, length of enrollment, and 
     graduation records over time.''
       LC regarding references to standards and assessments.
       Report Language:
       ``The Conferees are aware of, and encouraged by, 
     initiatives undertaken in some States to enable parents and 
     others to compare the progress of students, classrooms and 
     schools on a longitudinal basis. The Conferees wish to make 
     clear that States may incorporate the data from the 
     assessments required under this subsection into a state-
     developed longitudinal data system that links students' test 
     scores, length of enrollment, and graduation records over 
     time. Such systems may enable policymakers, educators, and 
     parents to better evaluate the success of schools by 
     reporting on the achievement of students enrolled in the same 
     school for at least three years.''
       ``The Conferees recognize that a quality science education 
     should prepare students to distinguish the data and testable 
     theories of science from religious or philosophical claims 
     that are made in the name of science. Where topics are taught 
     that may generate controversy (such as biological evolution), 
     the curriculum should help students to understand the full 
     range of scientific views that exist, why such topics may 
     generate controversy, and how scientific discoveries can 
     profoundly affect society.''
       79. The House bill and the Senate amendment are the same 
     with the exception indicated in note 40 regarding references 
     to standards.
       LC
       80. The House bill and the Senate amendment are similar 
     with the following exception: The Senate amendment, but not 
     the House bill, refers to ``nationally'' recognized standards 
     of testing that are developed and used by ``national experts 
     on educational testing''.
       HR with an amendment to strike ``developed and . . . on 
     educational testing;''
       81. The Senate amendment does not contain a similar 
     provision.
       HR
       82. The House bill does not contain a similar provision.
       HR with an amendment to insert after ``Act,'' the words 
     ``and are consistent with the requirements of this 
     section,''.
       83. The House bill requires assessments in at least 
     mathematics and reading or language arts at least once in the 
     grade spans listed. The Senate amendment requires assessments 
     to commence not later than the 01-02 school year for students 
     served under Title I, part A in mathematics and reading or 
     language arts at least once in the grade spans listed.
       SR with an amendment:
       ``(E)(i) except as otherwise provided for grades 3 through 
     8 under subparagraph [(G)], measure the proficiency of 
     students in, at a minimum, mathematics and reading or 
     language arts, and be administered not less than once 
     during--
       ``(I) grades 3 through 5;
       ``(II) grades 6 through 9; and
       ``(III) grades 10 through 12;''
       84. The Senate amendment, but not the House bill, requires 
     assessments to commence not later than the 02-03 school year 
     for all students in mathematics and reading or language arts 
     at least once in the grade spans listed.
       SR with an amendment:
       (ii) beginning not later than school year 2007-2008, 
     measure the proficiency of all students in science and be 
     administered not less than once during--

       (I) grades 3 through 5;
       (II) grades 6 through 9; and
       (III) grades 10 through 12;

       85. The House bill does not contain a similar provision.
       SR (See note 78)
       86. The House bill refers to student ``achievement'', while 
     the Senate amendment refers to student ``performance''. In 
     addition, the House bill refers to ``critical thinking 
     skills'', while the Senate amendment refers to ``higher order 
     thinking skills.''
       HR with an amendment to strike ``performance'' and insert 
     ``academic achievement''.
       87. The House bill requires assessments in the 04-05 school 
     year in each of the grades 3 through 8 in at least 
     mathematics and reading or language arts. The Senate 
     amendment requires assessments in the 05-06 school year 
     annually in grades 3 through 8 and at least once in the grade 
     span of 10-12, in at least mathematics and reading or 
     language arts, if the tests are aligned with State standards. 
     (The House bill contains a similar requirement for an 
     assessment at least once in the grade span of 10-12 in at 
     least mathematics and reading or language arts in paragraph 
     (4)(E).) See notes 40 and 50 regarding references to 
     standards and assessments. In addition, the House bill and 
     the Senate amendment allow for a delay in assessment 
     implementation with the following exceptions: (1) The House 
     bill provides for a one-year delay after the 04-05 school 
     year if the assessment will be implemented after that one-
     year delay, while the Senate amendment provides for the 
     assessments to be delayed from the 05-06 school year to the 
     06-07 school year if the assessments will be implemented in 
     the 06-07 school year.; and (2) The House bill refers to the 
     financial resources of the State, while the Senate amendment 
     refers to the financial resources of the LEA or school.
       SR with an amendment to strike ``2004-2005'' and replace 
     with ``2005-2006''.
       88. The House bill does not contain a similar provision.
       HR with amendment to strike clause (i) and insert as a new 
     clause (i):
       ``(i) a State may defer commencement, or suspend the 
     administration, but not cease the development, of the 
     assessments described in this paragraph, that were not 
     required prior to the date of enactment of this Act, for 1 
     year, for each year for which the amount appropriated for 
     grants under section [6205(a)(3) {Senate} / 7104(a)(3) 
     {House}] is less than--''
       (Retain subclauses (I), (II), (III))
       And to strike ``fiscal year 2005'' in subclause (IV) and 
     insert ``fiscal years 2005 through 2007'' and strike 
     subclauses (VI) and (VII).
       89. The House bill does not contain a similar provision.
       HR
       90. The House bill and the Senate amendment are similar 
     with minor wording differences and the exception indicated in 
     note 91.
       HR/SR with an amendment to strike clause (iii) and insert 
     as a new clause (iii):
       ``(iii) the inclusion of limited English proficient 
     students, who shall be assessed in a valid and reliable 
     manner and provided reasonable accommodations on assessments 
     administered to such students under this paragraph, 
     including, to the extent practicable,

[[Page 25810]]

     assessments in the language and form most likely to yield 
     accurate data on what such students know and can do in 
     academic content areas, until such students have achieved 
     English language proficiency as determined under paragraph 
     (7).
       91. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill allows LEAs 
     to determine if students should be assessed in the 
     appropriate language (as opposed to English) and then assess 
     such students in the appropriate language for one additional 
     year; (2) The Senate amendment allows LEAs to demonstrate to 
     the SEA if students should be assessed in the appropriate 
     language (as opposed to English) and the SEA to permit such 
     students to be assessed in the appropriate language for one 
     or more additional years contingent upon the exception 
     described.
       HR/SR with an amendment to strike clause (iv) and insert as 
     a new clause (iv):
       ``(iv) notwithstanding clause (iii), the academic 
     assessment (using tests written in English) of reading or 
     language arts of any student who has attended school in the 
     United States (not including Puerto Rico) for 3 or more 
     consecutive school years, except if the local educational 
     agency determines, on a case-by-case individual basis, that 
     academic assessments in another language or form would likely 
     yield more accurate and reliable information on what such 
     students know and can do, the local educational agency may 
     make a determination to assess such students in the 
     appropriate language other than English for a period that 
     does not exceed 2 additional consecutive years, provided that 
     such student has not yet reached a level of English language 
     proficiency sufficient to yield valid and reliable 
     information on what such student knows and can do on tests 
     (written in English) of reading or language arts.''
       92. The House bill and the Senate amendment are the same.
       LC
       93. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The Senate amendment, but 
     not the House bill, refers to ``interpretive and descriptive 
     reports''; (2) The Senate amendment, but not the House bill, 
     refers to the parents of all students; (3) The House bill 
     refers to assessment scores, while the Senate amendment 
     refers to assessment ``performance''; and (4) The Senate 
     amendment, but not the House bill, includes a list of other 
     measures that can be included on the reports.
       HR with an amendment to strike subparagraph (L) and insert:
       ``(L) produce individual student interpretive, descriptive, 
     and diagnostic reports, consistent with 1111[(b)(3)(C)--
     (nationally recognized professional standards reference)], 
     which allow parents, teachers, and principals to understand 
     and address the specific academic needs of students, and 
     include information regarding achievement on academic 
     assessments aligned with State academic achievement 
     standards, that are provided to parents, teachers, and 
     principals, as soon as is practicably possible after the 
     assessment is given, in an understandable and uniform format, 
     and to the extent practicable, in a language that parents can 
     understand;''
       94. The House bill and the Senate amendment are 
     substantially similar with the exception that the Senate 
     amendment, but not the House bill, provides for an exception 
     to the disaggregation.
       HR with an amendment to insert ``major'' before ``racial 
     and ethnic group,''.
       95. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to strike (L) and insert as a new 
     subparagraph (L):
       ``(N) be consistent with widely accepted professional 
     testing standards, objectively measure academic achievement, 
     knowledge and skills, and be tests that do not evaluate or 
     assess personal or family beliefs and attitudes, or publicly 
     disclose personally identifiable information;''
       Report language:
       The Conferees wish to clarify that this provision does not 
     prohibit the use of essay, extended response, or short answer 
     test items, nor does it prohibit the use of test items which 
     require a student to analyze a passage of text or to express 
     opinions, provided that such test items are developed 
     consistent with widely accepted professional testing 
     standards.
       96. The House bill does not contain a similar provision.
       HR with amendment to strike subparagraph (N) and insert:
       ``(N) enable itemized score analysis to be produced and 
     reported, consistent with 1111[(b)(3)(C)--(nationally 
     recognized professional standards reference)], to local 
     educational agencies and schools, so that parents, teachers, 
     principals and administrators can interpret and address the 
     specific academic needs of students as indicated by the 
     students' achievement on assessment items.''
       Report Language:
       ``In providing for itemized score analysis, the Conferees 
     intend for data to be presented in a format which parents, 
     teachers and schools can understand. Providing parents, 
     teachers and schools with clear and technology-viable access 
     to both scores and scoring procedures is one of the best 
     strategies to ensure that mistakes that do occur are both 
     identified and corrected in an expedient manner. In 
     developing their State academic assessment systems, States 
     should also consider and address the issue of sufficient 
     assessment transparency and accessibility in order to protect 
     the ability of students, parents, teachers and school 
     administrators to gain access to test results and testing 
     methodologies.''
       97. The House bill and the Senate amendment are similar in 
     that they do not allow additional assessment measures to take 
     the place of those assessments required in paragraph (4) of 
     the House bill or paragraph (3) of the Senate amendment. The 
     House bill, but not the Senate amendment, further stipulates 
     that such additional assessment measures shall not change the 
     identification of schools pursuant to section 1116. See note 
     67.
       SR with amendment to strike ``Results on ... not included'' 
     and insert: ``The use of such additional assessment measures 
     may not be used to reduce the number or change which schools 
     would otherwise be subject to school improvement, corrective 
     action, or restructuring under section 1116 if such 
     additional indicators were not used, but may be used to 
     identify additional schools for school improvement or in need 
     of corrective action or restructuring.''
       98. The House bill does not contain a similar provision.
       SR
       99. The House bill and the Senate amendment are 
     substantially the same with the exception indicated in note 
     50 regarding references to assessments.
       LC
       100. The Senate amendment, but not the House bill, refers 
     to the development of English proficiency as appropriate to 
     the factors listed. The Senate amendment, but not the House 
     bill, refers to students served under this part or Title III 
     of the Senate amendment with the stated exception. The House 
     bill, but not the Senate amendment, refers to all LEP 
     students in the State's schools.
       SR with amendment to strike paragraph (7) and replace with:
       ``(7) Academic Assessments of English Language 
     Proficiency.--Each State plan shall demonstrate that local 
     educational agencies in the State will, beginning no later 
     than school year 2002-2003, provide for an annual assessment 
     of English proficiency (measuring students' oral language, 
     reading, and writing skills in English) for all students with 
     limited English proficiency in their schools, except that the 
     Secretary may provide the State 1 additional year if the 
     State demonstrates that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     State, prevented full implementation of this paragraph by 
     that deadline and that it will complete implementation within 
     the additional 1-year period.''
       Report language:
       ``This Act requires each State to provide for annual 
     English language proficiency assessments (covering speaking, 
     listening, reading and writing skills) by the beginning of 
     the 2002--2003 school year. The Conferees believe that 
     additional scientifically-based research efforts must be made 
     to develop better assessments to measure the progress of 
     limited English proficient children in developing their 
     English language proficiency, including speaking, listening, 
     reading and writing skills. The Conferees encourage the 
     Secretary to provide technical assistance to States, if 
     requested, on the development and implementation of such 
     assessments.''
       101. The House bill and the Senate amendment are the same 
     with technical differences in cross-references.
       LC
       102. The Senate amendment does not contain a similar 
     provision.
       SR
       103. The House bill does not contain a similar provision.
       HR
       104. The House bill does not contain a similar provision.
       HR with an amendment to strike ``how the . . . will develop 
     or identify'' and insert ``an assurance that the SEA will 
     assist LEAs in developing or identifying''.
       105. The House bill and the Senate amendment are 
     substantially the same with the exception indicated in note 
     40 regarding references to standards.
       LC
       106. The House bill does not contain a similar provision.
       SR
       107. The House bill does not contain a similar provision.
       HR with amendment:
       ``(8) Factors Impacting Student Achievement.--Each State 
     plan shall include an assurance that the State will 
     coordinate and collaborate, to the extent feasible and 
     necessary as determined by the State, with agencies providing 
     services to children, youth, and families, with respect to 
     local educational agencies within the State that are 
     identified for improvement under section 1116 and that 
     request assistance with addressing major factors that have 
     significantly impacted student achievement at the

[[Page 25811]]

     local educational agency or at schools in such agency.''
       108. The Senate amendment does not contain a similar 
     provision. However, see the Senate amendment provision in 
     subsection (f) of section 1111 regarding the provision of 
     information.
       SR with amendment to strike ``the end'' and insert ``before 
     the beginning'' and insert ``next'' before ``school year'' 
     and to strike ``(consistent with 1116''.
       109. The Senate amendment does not contain a similar 
     provision.
       SR
       110. The Senate amendment does not contain a similar 
     provision. However, see the Senate amendment provision in 
     subsection (l) of section 1111. See note 172.
       HR
       111. The House bill and the Senate amendment are similar 
     with the exception that the House bill refers to 2003--04 
     school year, while the Senate amendment refers to the 2002--
     03 school year, and with technical differences in cross-
     references.
       HR with amendment
       ``(c) Other Provisions To Support Teaching and Learning.--
     Each State plan shall contain assurances that--
       ``(1) the State will meet the requirements of subsection 
     (j)(1) and, beginning with the 2002-2003 school year, will 
     produce the annual State report cards described in such 
     subsection, except that the Secretary may provide the State 1 
     additional year if the State demonstrates that exceptional or 
     uncontrollable circumstances, such as a natural disaster or a 
     precipitous and unforeseen decline in the financial resources 
     of the State, prevented full implementation of this paragraph 
     by that deadline and that it will complete implementation 
     within the additional 1-year period.''
       112. The House bill refers to ``academic'' assessments, 
     while the Senate amendment refers to ``State'' assessments. 
     The Senate amendment, but not the House bill, refers to the 
     Secretary paying the costs of administration of these 
     assessments and provides for an exception for states with 
     fewer than .25% of the total number of poor, school-aged 
     children in the U.S. The House bill, but not the Senate 
     amendment, provides for an alternative assessment to NAEP.
       HR with amendment to strike ``annual'' and insert 
     ``biennial'' before ``State assessments of 4th and 8th'' and 
     to insert ``academic'' after ``State'' and before 
     ``assessments'' and to strike ``except that ... basis.''
       113. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment, but not the House bill, refers to parental 
     involvement under section 1118. In addition, there is a 
     technical difference in cross-references regarding section 
     1119.
       HR
       114. The House bill and the Senate amendment are the same 
     with minor wording differences.
       LC
       115. The House bill and the Senate amendment are the same 
     with minor wording differences.
       LC
       116. The House bill and the Senate amendment are the same 
     with the exceptions indicated in notes 40 and 50 regarding 
     references to standards and assessments.
       LC
       117. The House bill and the Senate amendment are the same 
     with minor wording differences.
       LC
       118. The House bill and the Senate amendment are the same 
     with minor wording differences.
       LC
       119. The House bill and the Senate amendment are the same.
       LC
       120. The House bill and the Senate amendment are the same 
     with a minor wording difference.
       LC
       121. The House bill and the Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       122. The House bill and the Senate amendment are 
     substantially similar with the following exceptions: 1) The 
     House bill, but not the Senate amendment, refers to transfer 
     authority under Title VII of the House bill; and (2) There is 
     a technical differences in cross-references regarding 
     waivers.
       SR
       LC--check cites for included programs.
       123. The House bill does not contain a similar provision.
       HR
       124. The Senate amendment does not contain a similar 
     provision.
       SR
       125. The House bill does not contain a similar provision.
       The House bill and the Senate amendment are substantially 
     the same through subparagraph (B) of the Senate amendment 
     following. See the next note.
       HR with an amendment to insert in (d)(1) ``meeting the 
     highest professional and technical standards'' after 
     ``current research''.
       126. The House bill does not contain a similar provision.
       HR with an amendment to insert ``the needs of low-
     performing schools'' after ``accountability,''
       127. The House bill and the Senate amendment are the same 
     in the following provisions with the exception indicated in 
     note 128 and those indicated in notes 40 and 50 regarding 
     references to standards and assessments.
       LC
       128. The House bill does not contain a similar provision.
       HR
       129. The House bill does not contain a similar provision. 
     However, see the House bill provision in subsection (b)(9) of 
     section 1111 regarding the provision of information (note 
     108).
       The House bill and the Senate amendment are the same 
     through paragraph (1). See the next note.
       SR
       130. The Senate amendment does not contain a similar 
     provision.
       HR
       131. The House bill and the Senate amendment are 
     substantially the same with the exceptions indicated in notes 
     40 and 50 regarding references to standards and assessments.
       LC
       132. The House bill and the Senate amendment are similar 
     with the exceptions that the House bill refers to a 
     prohibition of Federal control, while the Senate amendment 
     says that nothing in this part shall be construed to 
     authorize Federal control, and with the differences indicated 
     in notes 40 and 50 regarding references to standards and 
     assessments and other minor wording differences.
       HR with amendment (use same language agreed upon for Title 
     IX).
       133. The House bill refers to those deadlines established 
     by IASA of 1994 or those established under any waivers or 
     compliance agreements with Secretary. The Senate amendment 
     refers to ``statutory deadlines. The Senate amendment, but 
     not the House bill, refers to standards aligned with 
     assessments. The House bill, but not the Senate amendment, 
     requires the Secretary to withhold 25% of the funds available 
     to the State for administration and activities each year. The 
     Senate amendment, but not the House bill, requires the 
     Secretary to withhold an undefined amount of funds for State 
     administration and activities under section 1117 and take 
     such needed steps to assist State to reach compliance.
       SR with an amendment to insert ``under this part'' after 
     ``administration and activities''.
       134. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to insert ``,90 days after enactment of 
     this Act,'' after ``The Secretary shall not''.
       135. The Senate amendment does not contain a similar 
     provision. However, the Senate amendment does refer generally 
     to ``statutory deadlines'' in subsection (i) previously. See 
     note 133.
       SR with an amendment to insert ``under this part'' after 
     ``administration''.
       136. The House bill and the Senate amendment are similar 
     through subparagraph (D) of each piece of legislation with 
     the exception that the House bill requires the reports not 
     later than the start of the 03-04 school year, while the 
     Senate amendment requires the reports not later than the 
     start of the 02-03 school year.
       HR with an amendment to insert the following:
       ``(j) Reports.--
       ``(1) Annual State Report Card.--
       ``(A) In general.--Not later than the beginning of the 
     2002-2003 school year, unless the State has received a one-
     year waiver pursuant to subsection (c)(1), a State that 
     receives assistance under this Act shall prepare and 
     disseminate an annual State report card.
       ``(B) Implementation.--The State report card shall be--
       ``(i) concise; and
       ``(ii) presented in an understandable and uniform format 
     and, to the extent practicable, provided in a language that 
     the parents can understand.''
       137. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill and the 
     Senate amendment have different cross-references; and (2) The 
     House bill, but not the Senate amendment contains an 
     exception to the required disaggregation; however, the Senate 
     amendment contains a similar exception in paragraph (2)(D). 
     See note 156.
       HR/SR with an amendment to insert as new (D) and (E): 
     (Notes 137-150)
       ``(D) Required information.--The State shall include in its 
     annual State report card--
       ``(i) information, in the aggregate, on student achievement 
     at each proficiency level on the State academic assessments 
     described in subsection (b)(4) (disaggregated by race, 
     ethnicity, gender, disability status, migrant status, English 
     proficiency, and status as 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);
       ``(ii) information that provides a comparison between the 
     actual achievement levels of

[[Page 25812]]

     each group of students described in subclauses (I) and (II) 
     of subsection (b)(2)(C) to the State's annual numerical 
     objectives for each such group of students on each of the 
     assessments required under this part;
       ``(iii) the percentage of students not tested 
     (disaggregated by the same categories and subject to the same 
     exception described in clause (i));
       ``(iv) the most recent 2-year trend in student performance 
     in each subject area, and for each grade level, for which 
     assessments under section 1111 are required;
       ``(v) aggregate information on any other indicators used by 
     the State to determine the adequate yearly progress of 
     students in achieving State academic achievement standards;
       ``(vi) graduation rates for secondary school students, 
     consistent with 1111[(b)(2)(B)(vii)];
       ``(vii) information on the performance of local educational 
     agencies in the State regarding making adequate yearly 
     progress, including the number and names of each school 
     identified for school improvement, including schools 
     identified under section 1116;
       ``(viii) the professional qualifications of teachers in the 
     aggregate, the percentage of teachers teaching with emergency 
     or provisional credentials, and the percentage of classes not 
     taught by highly qualified teachers (disaggregated by high 
     poverty and low poverty schools which for purposes of this 
     clause means schools in the top quartile of poverty and the 
     bottom quartile of poverty) in the State;
       ``(E) Permissive information.--The State may include in its 
     annual State report card such other information as the State 
     believes will best provide parents, students, and other 
     members of the public with information regarding the progress 
     of each of the State's public elementary schools and 
     secondary schools. Such information may include information 
     regarding--
       ``(i) school attendance rates;
       ``(ii) average class size in each grade;
       ``(iii) academic achievement and gains in English 
     proficiency of limited English proficient students;
       ``(iv) the incidence of school violence, drug abuse, 
     alcohol abuse, student suspensions, and student expulsions;
       ``(v) the extent and type of parental involvement in the 
     schools;
       ``(vi) the percentage of students completing advanced 
     placement courses, and the rate of passing of advanced 
     placement tests;
       ``(vii) a clear and concise description of the State's 
     accountability system, including: a description of the 
     criteria by which the State evaluates school performance, and 
     the criteria that the State has established, consistent with 
     (b)(2)(B), to determine the status of schools regarding 
     school improvement, corrective action, and reconstitution; 
     and
       Report Language:
       The Conferees intend that reporting of graduation rates 
     described in clause (vi) shall be determined by reporting the 
     percentage of students who graduate from high school with a 
     regular diploma (not an alternative degree that may not be 
     fully aligned with State academic standards, such as a 
     certificate or GED), on time (within four years of starting 
     the ninth grade for high schools that begin with the ninth 
     grade or within the standard number of years for high schools 
     that begin with another grade). The approach used to 
     calculate graduation rates must also avoid counting dropouts 
     as transfers. States that have or could have a more accurate 
     longitudinal system that follows individual student progress 
     through high school may use that system if approved by the 
     Secretary as part of the State's Title I plan.
       The Conferees intend that in addition to reporting 
     graduation rates for secondary schools that for those 
     districts that define secondary school as including grades 6, 
     7 or 8, data should be reported on student progress from that 
     entry grade level through twelfth grade with particular 
     attention placed on the transition point between eighth and 
     ninth grade.
       138. The Senate amendment does not contain a similar 
     provision.
       HR/SR with an amendment; (See note 137).
       139. The House bill and the Senate amendment are the same 
     with the exception to disaggregation indicated in note 137.
       HR/SR with an amendment; (See note 137).
       140. The House bill does not contain a similar provision.
       HR/SR with an amendment; (See note 137).
       141. The House bill does not contain a similar provision.
       HR/SR with an amendment; (See note 137).
       142. The House bill and the Senate amendment require 4-year 
     graduation rates, although the House bill requires the 
     percentage of students who graduate, while the Senate 
     amendment requires the average graduation rates. In addition, 
     the Senate amendment, but not the House bill, requires the 
     average 4-year school dropout rates disaggregated by the 
     categories listed with an exception to the required 
     disaggregation. See also note 147.
       HR/SR with an amendment; (See note 137).
       143. The House bill does not contain a similar provision. 
     However, see also the House bill provision in section 
     1116(b)(6).
       HR/SR with an amendment; (See note 137). 
       144. The Senate amendment does not contain a similar 
     provision.
       HR/SR with an amendment; (See note 137). 
       145. The House bill does not contain a similar provision.
       HR/SR with an amendment; (See note 137). 
       146. The House bill, but not the Senate amendment, requires 
     the State aggregate of the qualifications of teachers. The 
     House bill and the Senate amendment both require the 
     percentage of teachers teaching with emergency or provisional 
     qualifications, although the Senate amendment requires this 
     information to be disaggregated by poverty. The Senate 
     amendment refers to classes not taught by ``highly'' 
     qualified teachers, while the House bill refers to classes 
     not taught by ``fully'' qualified teachers.
       HR/SR with an amendment; (See note 137). 
       147. The House bill and the Senate amendment allow for 
     additional information. However, the House bill lists other 
     possible categories of information, while the Senate 
     amendment lists them in clauses (i) through (x) following in 
     the Senate amendment. Also, the House bill allows dropout 
     rates as an optional category, while the Senate amendment 
     requires dropout rates in subparagraph (D)(v). See note 142.
       HR/SR with an amendment; (See note 137). 
       148. The Senate amendment provisions in clauses (i) and 
     (ii) are similar to those listed in the House bill in clause 
     (vii).
       HR/SR with an amendment; (See note 137). 
       149. The House bill does not contain the provisions listed 
     in clauses (iii) through (x) of the Senate amendment 
     following.
       HR/SR with an amendment; (See note 137). 
       150. The House bill, but not the Senate amendment, contains 
     a provision requiring the State to annually report a 
     description of its accountability system.
       HR/SR with an amendment; (See note 137). 
       151. The House bill does not contain a similar provision. 
     However, see note 133 of the House bill's Title VIII, General 
     Provisions.
       SR
       152. The House bill does not contain a similar provision.
       HR with an amendment to insert the following: 
       (2) Annual Local Educational Agency Report Cards.--
       ``(A) (i) In general.--Not later than the beginning of the 
     2002-2003 school year, a local educational agency that 
     receives assistance under this Act shall prepare and 
     disseminate an annual local educational agency report card, 
     except that the State may provide the local educational 
     agency 1 additional year if the local educational agency 
     demonstrates that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     local educational agency, prevented full implementation of 
     this paragraph by that deadline and that it will complete 
     implementation within the additional 1-year period.''
      ``(ii) Special rule.--If a State has received a waiver under 
     subsection (c)(1), then a local education agency within that 
     State shall not be required to include the information 
     required under paragraph (1)(D) in such report card during 
     the one year waiver period.''
       153. The House bill and the Senate amendment are 
     substantially similar through subparagraph (B) of the House 
     bill and subparagraph (C) of the Senate amendment with minor 
     wording differences, the exception indicated in note 50 
     regarding references to assessments, and the exceptions 
     indicated in notes 154 and 155.
       LC
       154. The House bill refers to ``its schools students'', 
     while the Senate amendment refers to ``students served by the 
     local educational agency''.
       LC
       155. The House bill refers to ``its students'', while the 
     Senate amendment refers to ``the school's students''.
       SR with an amendment to insert ``and other adequate yearly 
     progress indicators'' after ``academic assessments''. 
       156. The House bill does not contain a similar provision, 
     however, see note 137.
       HR
       157. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill requires 
     the LEA report card to be publicly disseminated not later 
     than the start of the 03-04 school year, while the Senate 
     amendment requires the LEA report card to be publicly 
     disseminated not later than the start of the 02-03 school 
     year; and (2) The Senate amendment, but not the House bill, 
     provides for an exception for LEAs already issuing a report 
     card for all students.
       HR with an amendment to insert as new (E): 
       ``(E) Public dissemination.--The local educational agency 
     shall, not later than the beginning of the 2002-2003 school 
     year, unless the local educational agency has received a one 
     year waiver pursuant to section 1111(c)(2), publicly 
     disseminate the information described in this paragraph to 
     all schools in the school district and to all parents of 
     students attending those schools in an understandable and 
     uniform format and, to the extent practicable, provided in a 
     language that the parents can understand, and make the 
     information broadly available through public means, such as 
     posting on the Internet, distribution to the media, and 
     distribution through public agencies, except

[[Page 25813]]

     that if a local educational agency issues a report card for 
     all students, the local educational agency may include the 
     information under this section as part of such report.''
       158. The House bill and the Senate amendment are similar 
     with the exception that the House bill references those 
     report cards in existence prior to the enactment of H.R. 1.
       SR
       159. The House bill and the Senate amendment are 
     substantially the same in paragraph (4) and subparagraph (A) 
     of each piece of legislation with the following exceptions: 
     (1) See note 50 regarding references to assessments; and (2) 
     A technical difference in cross-references.
       HR/SR with amendment to strike paragraph (4) and insert as 
     new (4):
       ``(4) Annual state report to the secretary.--Each State 
     receiving assistance under this Act shall report annually to 
     the Secretary, and publicly disseminate within the State--
       (A) beginning with school year [2001-2002], information on 
     the State's progress in developing and implementing the 
     assessments described in subsection (b)(3);
       ``(B) beginning not later than school year 2002-2003, 
     information on the achievement of students on the assessments 
     required by that section, including the disaggregated results 
     for the categories of students identified in subsection 
     1111(b)--[COMMENT: The reference will be to the 6 categories 
     agreed upon for reporting: economically disadvantaged, 
     racial/ethnic minority, disabled, LEP, gender, and migrant]
       ``(C) in any year before the State begins to provide the 
     information described in subparagraph (B), information on the 
     results of student assessments (including disaggregated 
     results) required under this section.
       ``(D) beginning not later than school year 2002-2003, 
     unless the State has received a waiver pursuant to section 
     1111(c)(1), information on the acquisition of English 
     proficiency by children with limited English proficiency;
       ``(E) the number and names of each school identified for 
     school improvement, including schools identified under 
     section 1116(c), the reason why each school was so 
     identified, and the measures taken to address the performance 
     problems of such schools;
       ``(F) the number of students and schools that participated 
     in public school choice and supplemental service programs and 
     activities under this title.
       ``(G) beginning not later than the 2002-2003 school year, 
     information on the quality of teachers and the percentage of 
     classes being taught by highly qualified teachers as defined 
     in [section], in the State, LEA, and school consistent with 
     subparagraph (D)(7) (see note 137).''
       160. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) See 
     note 50 regarding references to assessments; and (2) The 
     categories of students referenced in each bill are different. 
     See note 63.
       HR/SR with an amendment; (See note 159).
       161. The Senate amendment does not contain a similar 
     provision.
       HR/SR with an amendment; (See note 159).
       162. The House bill contains a similar provision in section 
     1116 (b)(6) (see note 300). The House bill refers to a report 
     not less than once a year, while the Senate amendment refers 
     to an annual report. The Senate amendment refers to each 
     State receiving assistance under this Act, while the House 
     bill refers to each SEA. The House bill and the Senate 
     amendment refer to the names of schools identified for school 
     improvement, although the Senate amendment contains a 
     specific cross-reference to section 1116. The Senate 
     amendment, but not the House bill, refers to the number of 
     schools identified for school improvement, the reason for 
     such identification, and the measures taken to address the 
     school's performance problems.
       HR/SR with an amendment; (See note 159).
       163. The House bill and the Senate amendment are 
     substantially the same except for difference indicated in 
     note 50 regarding references to assessments.
       HR/SR with an amendment; (See note 159).
       164. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) The 
     House bill, but not the Senate amendment, requires that 
     parental notification be provided at the beginning of the 
     school year; and (2) The House bill, but not the Senate 
     amendment, requires LEAs to provide information to requesting 
     parents in a timely manner.
       SR
       165. The House bill and the Senate amendment provisions are 
     the same in clauses (i) through (iv) following each piece of 
     legislation, with a minor wording difference in clause (iv).
       LC
       166. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     bill, but not the Senate amendment, refers to additional 
     information beyond that described in subparagraph (A).
       LC
       167. The Senate amendment does not contain a similar 
     provision.
       SR
       168. The House bill, but not the Senate amendment, requires 
     the information be provided to parents in an understandable 
     language to the extent practicable.
       SR (LC all other references to providing information to 
     parents in an understandable and uniform format and, to the 
     extent practicable, provided in a language that the parents 
     can understand)
       169. The Senate amendment does not contain a similar 
     provision.
       SR
       170. The House bill does not contain a similar provision.
       HR with an amendment to move the following language to 
     after note 163 and before paragraph (5) and redesignate 
     sections according:
       ``(5) Report to congress.--The Secretary shall transmit 
     annually to [Standard name for House and Senate education 
     committees] a report that provides national and state level 
     data on the information collected under (4).''
       171. The House bill and the Senate amendment are the same.
       4LC
       172. The House bill does not contain a similar provision. 
     However, see also the House bill provision in subsection 
     (b)(10) of section 1111. See note 110.
       HR
       173. The House bill does not contain a similar provision.
       HR
       174. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to add a new subsection at end of section 
     1111 and before section 1112:
       (#--LC) ``In General.--Nothing in this part shall prescribe 
     the use of the assessments described under this part for 
     student promotion or graduation purposes.''
       175. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     bill, but not the Senate amendment, refers to the Homeless 
     Act.
       SR
       176. The House bill and the Senate amendment are 
     substantially the same with the exception of a technical 
     difference in cross-references.
       LC
       177. The House bill, but not the Senate amendment, makes a 
     number of changes to current law. The Senate amendment 
     retains current law unchanged through subparagraph (C).
       SR with an amendment to strike (b)(1) and insert the 
     following:
       ``(1) a description of high-quality student academic 
     assessments, if any, that are in addition to the academic 
     assessments described in the State plan under section 
     1111(b)(3), that the local educational agency and schools 
     served under this part will use to--''
       178. The Senate amendment, but not the House bill, contains 
     this subparagraph regarding first grade student literacy and 
     related interventions and assessments.
       HR with an amendment to insert as new (D):
       ``(D) effectively identify students who may be at risk for 
     reading failure or who are having difficulty reading through 
     the use of screening, diagnostic, and classroom-based 
     instructional reading assessments, as defined under section 
     1209 of this title.''
       179. The House bill, but not the Senate amendment, makes a 
     number of changes to current law. The Senate amendment 
     retains current law unchanged to subparagraph (B).
       SR with an amendment to strike paragraph (2) and insert:
       ``(2) at the local educational agency's discretion, a 
     description of other academic indicators, if any, that will 
     be used in addition to the academic assessments described in 
     paragraph (1) for the uses described in such paragraph;''
       180. The Senate amendment does not contain a similar 
     provision.
       SR
       181. The House bill and the Senate amendment are similar 
     with the exception that the Senate amendment refers to 
     coordination with Title II of the Senate bill if a LEA 
     receives funds under such title.
       SR with an amendment on coordination with Title II and 
     adding `` and principals'' after ``teachers'' .
       182. The Senate amendment makes a technical change to 
     current law regarding the wording of ``vocational programs''. 
     Both the House bill and the Senate amendment strike ``school-
     to-work transition programs''.
       SR with an amendment to insert ``vocational''.
       183. The House bill and the Senate amendment strike the 
     same language with the exception that the House bill, but not 
     the Senate amendment retains ``served under part C'' after 
     ``migratory children''.
       SR with and amendment inserting ``children with 
     disabilities'' after ``proficiency,''; strike ``or with 
     disabilities''; and strike ``served under part C,''.
       184. The Senate amendment, which retains current law to 
     paragraph (9), does not contain this provision regarding LEA 
     participation in NAEP or an alternative assessment if 
     selected.
       SR with amendment to strike ``or in another . . . section 
     7101(b)(1)(B)(ii)'' in paragraph (6).
       185. The House bill and the Senate amendment are generally 
     similar. However, the

[[Page 25814]]

     House bill refers to ``preschool programs for children'' and 
     lists a number of such programs and services, while the 
     Senate amendment refers to ``early childhood education 
     programs under section 1120B''.
       SR
       186. The House bill refers to LEA actions to assist schools 
     in school improvement, while the Senate amendment refers to 
     LEA determinations of factors impacting student achievement 
     at schools in school improvement or corrective action.
       SR
       187. The Senate amendment does not contain paragraphs (13) 
     through (15) of the House bill.
       SR with an amendment to insert as new (13), (14), and (15):
       ``(13) a description of the actions the local educational 
     agency will take to implement public school choice and 
     supplemental services, consistent with the requirements of 
     section 1116;
       ``(14) a description how the local educational agency will 
     meet the requirements of section 1119; and
       ``(15) a description of the services the local educational 
     agency will provide homeless children, including services 
     provided with funds reserved under section 1113(f)(3)(A).''
       188. The House bill does not contain paragraphs (10) and 
     (12) of the Senate amendment.
       HR with an amendment to insert ``after school (including 
     before school and summer school) and'' after ``this part to 
     support'' and with amendment to insert new paragraph:
       ``(#--LC) The academic assessments and indicators described 
     in paragraphs (1) and (2) shall not be used in lieu of the 
     academic assessments required under section 1111[(b)(4)] and 
     other State academic indicators under section 1111[(b)(2)]. 
     In addition, the use of the assessments and indicators 
     described in paragraphs (1) and (2) may not be used to reduce 
     the number or change which schools would otherwise be subject 
     to school improvement, corrective action, or restructuring 
     under section 1116, if such additional assessments or 
     indicators described in paragraphs (1) and (2) were not used, 
     but such assessments and indicators may be used to identify 
     additional schools for school improvement or in need of 
     corrective action or restructuring.''
       189. The House bill and the Senate amendment are the same.
       LC
       190. The House bill, but not the Senate amendment, refers 
     to the ability of schools to consolidate funds from the 
     entities listed. The Senate amendment refers to schoolwide 
     projects while the House bill refers to school wide programs.
       SR
       191. See note 40 regarding references to standards.
       LC
       192. The House bill and the Senate amendment are 
     substantially the same with a technical difference in cross-
     references.
       LC
       193. The House bill and the Senate amendment are the same.
       LC
       194. The House bill, but not the Senate amendment refers to 
     ``scientifically based'' research.
       SR
       195. The Senate amendment does not contain a similar 
     provision.
       SR
       196. The House bill does not contain the Senate amendment 
     provisions in paragraph (5).
       HR
       197. The House bill requires compliance with section 1119 
     relating to teacher and paraprofessional qualifications, 
     while the Senate amendment requires compliance with section 
     1119 relating to professional development.
       SR with an amendment to insert ``and professional 
     development'' after ``paraprofessionals''.
       198. The House bill and the Senate amendment are 
     substantially the same with a technical difference in cross-
     references.
       LC
       199. The House bill and the Senate amendment are 
     substantially the same, except the Senate amendment, but not 
     the House bill, refers to ``health and social services''.
       HR with amendment:
       ``(6) coordinate, and collaborate, to the extent feasible 
     and necessary as determined by the local educational agency, 
     with the state and other agencies providing service to 
     children, youth, and families with respect to schools in 
     school improvement, corrective action, or restructuring under 
     section 1116 that request assistance from the local 
     educational agency with addressing major factors that have 
     significantly impacted student achievement at the school.''
       200. The House bill does not contain the following Senate 
     provisions in paragraphs (11) through (14).
       HR with amendment to strike ``10 years'' and insert ``12 
     years'' and to strike ``of the date . . . Act'' and insert 
     ``the end of the 2001-2002 school year'' in paragraph (12), 
     to conform parental information in paragraph (13) with note 
     #168, and to strike paragraph (14) and insert the following:
       ``(14) assist each school served by the agency and assisted 
     under this part in developing or identifying models of high 
     quality, effective curriculum models consistent with section 
     1111(b)(6)(C).''
       201. The House bill, but not the Senate amendment, makes a 
     number of changes to current law in paragraphs (d)(1) and 
     (2). The Senate amendment retains current law unchanged to 
     subsection (e).
       SR with an amendment to strike ``academic achievement 
     standards'' and insert ``Performance Standards'' after ``Head 
     Start'' in subparagraph (B).
       202. The House bill and the Senate provision are the same.
       LC
       203. The House bill and the Senate amendment are similar in 
     retaining current law with the exception that the House bill, 
     but not the Senate amendment, modifies the organization of 
     paragraph (2) and adds a new subparagraph (B).
       SR
       204. The House bill does not retain paragraph (3) of 
     current law which the Senate amendment retains and modifies.
       HR
       205. The House bill and the Senate amendment retain current 
     law with no changes.
       LC
       206. The Senate amendment does not contain this provision 
     regarding parental notification and consent for English 
     language instruction of the House bill.
       SR with amendment to strike subsection (g) and insert the 
     following as new subsection (g):
       ``(g) Parental Notification.--
       ``(a) In General.--(1) Each eligible entity using funds 
     under this title to provide high-quality language instruction 
     educational programs shall inform a parent or parents of a 
     child participating in such a program of--
       ``(A) the reasons for the identification of their child as 
     limited English proficient and being in need of placement in 
     a language instruction educational program;
       ``(B) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(C) the program and methods of instruction available, 
     including how such programs differ in content, instructional 
     goals, and use of English and a native language in 
     instruction;
       ``(D) how the language instruction educational program will 
     meet the educational strengths and needs of their child;
       ``(E) how such language instruction program will 
     specifically help the child acquire English, and meet age 
     appropriate academic achievement standards for grade 
     promotion and graduation;
       ``(F) the specific exit requirements for the program, 
     including the expected rate of transition from the program 
     into classrooms that are not tailored for limited English 
     proficient students, and the expected rate of graduation from 
     high school for the program if funds under this title are 
     used for children in secondary schools;
       ``(G) in the case of a student with a disability who 
     participates in an English language instruction educational 
     program, how the program meets the objectives of the 
     individualized education program of the student;
       ``(H) the entity's failure to make progress on the annual 
     measurable achievement objectives in section 3329(a), if 
     applicable. Such notice shall be sent in addition to the 
     parental notification of their child as in need of 
     participation in a language instruction educational program.
       ``(I) information pertaining to parental rights, that 
     includes written guidance--
       ``(i) detailing the options that parents have to remove 
     their child in an language instruction educational program, 
     and shall give parents an opportunity to decline such 
     enrollment, and the right to have their child immediately 
     removed from a specialized language instruction program upon 
     their request; and
       ``(ii) assisting parents in selecting among various 
     programs and methods of instruction, if more than one program 
     or method is offered by the eligible entity.
       ``(b) Receipt of Information.--The notice and information 
     provided in subsection (a) to a parent or parents of a child 
     identified for participation in a language instruction 
     educational program for limited English proficient children 
     shall be in an understandable and uniform format and, to the 
     extent practicable, provided in a language that the parents 
     can understand.
       ``(c) Special Rule Applicable During the School Year.--For 
     those children who have not been identified as limited 
     English proficient prior to the beginning of the school year 
     the eligible entity shall notify parents within the first two 
     weeks of the child being placed in a language instruction 
     educational program consistent with subsections (a) and (b).
       ``(d) Parental Participation.--Each eligible entity using 
     funds under this title shall implement an effective means of 
     outreach to parents of limited English proficient students to 
     inform parents of how they can be involved in the education 
     of their children, and be active participants in assisting 
     their children to attain English and achieve at high levels 
     in core academic subjects and meet challenging state academic 
     achievement standards and state academic content

[[Page 25815]]

     standards expected of all students, including holding and 
     sending notice of opportunities for regular meetings for the 
     purpose of formulating and responding to recommendations from 
     parents of students assisted under this title.
       ``(e) Basis for Admission or Exclusion.--A student shall 
     not be admitted to, or excluded from, any federally assisted 
     education program on the basis of a surname or language-
     minority status.''
       207. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       208. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       209. The House bill and the Senate amendment are 
     substantially similar with minor differences in wording and a 
     difference in the cross-reference (the House bill refers to 
     the subsection regarding Ranking Order and the Senate 
     amendment refers to Eligible School Attendance Areas).
       LC
       210. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       211. The House bill, but not the Senate amendment, makes a 
     number of changes to current law in subsection (b) regarding 
     the rank order of funds and by adding a new paragraph (3) 
     regarding elementary schools. Otherwise, the House bill 
     retains current law with minor changes through paragraph 
     (c)(1). The Senate amendment retains current law unchanged 
     through paragraph (c)(1).
       HR
       212. The House bill adds a paragraph (2) regarding 
     equitable service to private school students. The Senate 
     amendment contains the same provision in section 1120A. See 
     note 488.
       HR
       213. The House bill, but not the Senate amendment, makes a 
     change to current law regarding the total enrollment. The 
     Senate amendment retains current law unchanged through 
     subsection (e).
       HR
       214. The House bill, but not the Senate amendment, makes a 
     number of minor, technical changes to current law. The Senate 
     amendment retains current law unchanged through subparagraph 
     (f)(3)(C).
       LC
       215. The Senate amendment does not contain the provisions 
     in paragraphs (4) and (5) of the House bill regarding school 
     improvement reservation and financial incentives and rewards 
     reservation.
       SR with an amendment to insert ``from the amount (if any) 
     by which the funds received by the LEA under this part for a 
     fiscal year exceed the amount received by the LEA under this 
     part for the preceding fiscal year,'' after ``necessary'' in 
     paragraph (4) and to insert ``from those funds received by 
     the LEA under Title II and up to 5% of those funds received 
     by the LEA'' after ``necessary'' in paragraph (5).
       216. The Senate amendment does not contain similar 
     provisions.
       HR
       217. The House bill and the Senate amendment are similar 
     with the following exceptions: 1) The House bill refers to a 
     LEA that ``may consolidate'' funds, while the Senate 
     amendment refers to a LEA that ``may use'' funds; and 2) The 
     Senate amendment, but not the House bill, refers to the 
     ``initial year of the schoolwide program''.
       SR with an amendment to insert ``and use'' after 
     ``consolidate''.
       218. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       219. The House bill and the Senate amendment are the same.
       LC
       220. The House bill, but not the Senate amendment, makes a 
     number of changes to current law regarding an exception to 
     IDEA in subparagraph (A) and the list of requirements in 
     subparagraph (B). The Senate amendment retains current law 
     unchanged through subparagraph (B).
       SR with an amendment to add ``comparability of services'' 
     after ``maintenance of effort'' in subparagraph (B).
       221. The House bill and the Senate amendment are 
     substantially similar with the following exceptions: 1) The 
     House bill refers to ``consolidate'' funds, while the Senate 
     amendment refers to ``use'' funds; and 2) Minor wording 
     differences.
       SR with an amendment to insert ``and uses'' after 
     ``consolidates''.
       222. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       223. The House bill, but not the Senate amendment, makes a 
     number of changes to current law regarding the addition of 
     migratory children in subparagraph (A), omitting current law 
     clause (iii) in schoolwide reform strategies, referring to 
     ``scientifically based research'' in clause (ii), adding 
     subclause (I), referencing standards and low-achieving in 
     subclause (I) of clause (iii), and omitting specific examples 
     contained in current law subclause (I) of clause (iiii). The 
     Senate amendment retains current law unchanged.
       SR with an amendment to insert the following (rewrite of 
     whole subsection):
       ``(c) Components of a Schoolwide Program.--
       ``(1) In General.--A schoolwide program shall include the 
     following components:
       ``(A) A comprehensive needs assessment of the entire school 
     (including taking into account the needs of migratory 
     children as defined in section 1309(2)) that is based on 
     information which includes the performance of children in 
     relation to the State academic content standards and the 
     State student academic achievement standards described in 
     section 1111(b)(1).
       ``(B) Schoolwide reform strategies that--
       ``(i) provide opportunities for all children to meet the 
     State's proficient and advanced levels of student achievement 
     described in section 1111(b)(1)(D);
       ``(ii) use effective methods and instructional strategies 
     that are based upon scientifically based research that--
       ``(I) strengthen the core academic program in the school;

       ``(II) increase the amount and quality of learning time, 
     such as providing an extended school year and before- and 
     after-school and summer programs and opportunities, and help 
     provide an enriched and accelerated curriculum; and
       ``(III) include strategies for meeting the educational 
     needs of historically underserved populations;

       ``(iii)(I) include strategies to address the needs of all 
     children in the school, but particularly the needs of low-
     achieving children and those at risk of not meeting the State 
     student academic achievement standards who are members of the 
     target population of any program that is included in the 
     schoolwide program, which may include--

       ``(aa) counseling, pupil services, and mentoring services;
       ``(bb) college and career awareness and preparation, such 
     as college and career guidance, personal finance education, 
     and innovative teaching methods which may include applied 
     learning and team teaching strategies; and
       ``(cc) the integration of vocational and technical 
     education programs; and

       ``(II) address how the school will determine if such needs 
     have been met; and''
       224. The House bill does not contain a similar provision, 
     although the House bill also strikes the reference to Goals 
     2000 as does the Senate amendment in clause (i).
       LC
       225. The House bill, but not the Senate amendment, makes a 
     number of changes to current law regarding teachers in 
     subparagraph (C), professional development in subparagraph 
     (D), and by adding subparagraph (E). The Senate amendment 
     retains current law unchanged through subparagraph (D).
       SR with an amendment to insert ``principals,'' after 
     ``teachers,'' in (D); and strike ``such as . . . pay'' in 
     (E).
       Report language:
       ``The Conferees believe that teacher recruitment strategies 
     will be most effective if they succeed in attracting highly 
     qualified teachers and subsequently retaining those teachers. 
     Such strategies can include differential pay and merit based 
     pay, as well as other services such as teacher advancement 
     initiatives that promote professional growth and multiple 
     career paths, pre-service internships, high quality 
     professional development, effective mentoring, and ongoing, 
     comprehensive evaluations of teachers' knowledge and 
     abilities.''
       226. The Senate amendment, but not the House bill, refers 
     to a list of activities beyond family literacy services.
       SR
       227. The House bill, but not the Senate amendment, makes a 
     number of changes to current law regarding the listed 
     programs in subparagraph (G), cross-references in 
     subparagraph (H), referring to proficiency in subparagraph 
     (I), and omitting clauses (ii) and (iii) of subparagraph (H) 
     of current law. The Senate amendment retains current law 
     unchanged through subparagraph (H).
       SR
       228. The House bill does not contain a similar provision.
       HR with an amendment to insert ``vocational and technical 
     education'' before ``job training''.
       229. The House bill and the Senate amendment refer to the 
     title of each piece of legislation. In addition, the House 
     bill, but not the Senate amendment, makes changes to current 
     law by omitting consultation requirements in paragraph (2), 
     omitting clause (iv) through subparagraph (2)(B) of current 
     law. The Senate amendment retains current law unchanged 
     through subparagraph (C).
       SR with an amendment to insert ``, in consultation with the 
     local educational agency and its school support team or other 
     technical assistance provider under section 1117,'' in 
     paragraph (2) before ``, a comprehensive plan'' and to strike 
     in (2)(A) ``incorporates'' and insert ``describes how the 
     school will implement''.
       230. The House bill does not contain this provision.
       HR with an amendment to retain current law clause (iv) as 
     subparagraph (D) and to conform parental information in that 
     subparagraph with note #168.
       231. The House bill does not contain this provision.

[[Page 25816]]

       SR
       232. The House bill, but not the Senate amendment, makes 
     changes to current law by omitting the requirement to 
     consider recommendations of technical assistance providers in 
     clause (i). The Senate amendment retains current law.
       HR
       233. The House bill and the Senate amendment refer to the 
     title of each piece of legislation. In addition, the House 
     bill, but not the Senate amendment, makes a number of changes 
     to current law by changing the plan requirements in clause 
     (ii), adding to the involvement requirements in subparagraph 
     (B), and by changing the availability requirements in 
     subparagraph (D). The Senate amendment retains current law 
     through subparagraph (D).
       SR with an amendment to conform parental information with 
     note #168.
       234. Both the House bill and the Senate amendment strike 
     the reference to the School-to-Work Act. In addition, the 
     House bill, but not the Senate amendment, makes a change to 
     current law by changing the list of programs to coordinate 
     with. The Senate amendment retains current law.
       SR
       235. The House bill and the Senate amendment retain current 
     law with no substantive changes regarding the Accountability 
     provision.
       LC
       236. The Senate amendment does not contain similar 
     provisions.
       SR
       237. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       238. The House bill and the Senate amendment are 
     substantially the same.
       LC
       239. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by changing references to 
     standards and assessments in subparagraph (B) and changing 
     the list of included children in clause (i) of subparagraph 
     (A). The Senate amendment retains current law unchanged 
     through paragraph (2).
       HR (LC--academic achievement).
       240. The Senate amendment refers to early childhood 
     education services under this title, while the House bill 
     refers to preschool services under this title and adds a 
     reference to Early Reading First.
       SR
       241. The House bill and the Senate amendment strike the 
     reference to part D (of Title I) and its predecessor 
     authority. The House bill, but not the Senate amendment, 
     changes the reference from part (D) (Neglected and Delinquent 
     education) to part (C) (Migrant education). The House bill, 
     but not the Senate amendment, changes to current law. The 
     Senate amendment retains current law.
       SR
       242. The House bill clarifies that these 2 groups of 
     children are eligible, not possibly eligible as under current 
     law. The Senate retains current law through subparagraph (D).
       SR
       243. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by changing references to 
     standards in paragraph (1) and subparagraph (A), omitting 
     subparagraph (B) of current law, changing subparagraph (3), 
     replacing current law subparagraph (E) with subparagraph (D) 
     of the House bill, and changing the teacher references in 
     subparagraph (E). The Senate amendment retains current law 
     unchanged through subparagraph (G).
       SR/LC conform ``highly qualified teacher'' in this note.
       244. The House bill, but not the Senate amendment, 
     references subsection (e)(3) and section 1119A. The Senate 
     amendment, but not the House bill, refers to 
     ``paraprofessionals'' and ``parents''. The House bill, but 
     not the Senate amendment, conditions the provision of 
     opportunities for professional development for ``pupil 
     services personnel''.
       SR with an amendment to strike ``, for teachers . . . pupil 
     services personnel,'' and replace with ``, for teachers, 
     principals and paraprofessionals, including, if appropriate, 
     pupil services personnel, parents, and other staff.''
       245. The House bill and the Senate amendment reference 
     section 1118 of Title I, part A of each piece of legislation 
     and ``family literacy services.'' However, the Senate 
     amendment, but not the House bill, adds after family literacy 
     services a list of additional options.
       SR
       246. The House bill contains a generally similar provision 
     in subsection (c)(2)(A). See note 248.
       HR with an amendment to insert ``vocational and technical 
     education''.
       247. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       SR (Note 181)
       248. The Senate amendment contains a generally similar 
     provision in subparagraph (I) following. See note 246. The 
     House bill, but not the Senate amendment, makes a change to 
     current law by omitting the reference to standards in current 
     law. The Senate amendment retains current law.
       SR
       249. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by changing the reference to 
     standards in subparagraph (B), changing the section heading 
     in subsection (d), omitting the reference to children served 
     under this part in subsection (d), omitting paragraphs (1) 
     and (3) of subsection (d) of current law, changing 
     subparagraph (2) list of services, and omitting subparagraph 
     (B) of paragraph (2) of current law. The Senate amendment 
     retains current law.
       SR with an amendment to retain current law 1115(d)(1); to 
     strike ``medical'' and insert ``health'' in paragraph (2) and 
     to insert current law subparagraph (e)(2)(B) as subparagraph 
     (e)(2)(C).
       250. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by referencing public 
     schools throughout, changing the plan provisions in 
     subsection (b), replacing paragraph (5) of current law with 
     paragraph (2) of the House bill and modifying the list of 
     required participants, replacing paragraph (6) of current law 
     with paragraph (4) and omitting paragraphs (2)-(4) and (7)-
     (9) of current law.
       HR/SR to eliminate from current law.
       251. The House bill does not contain a similar section. 
     However, pupil safety and school choice activities are an 
     authorized use of funds under section 5115 (b)(2)(P) of the 
     House bill. See Title V of the House bill.
       SR
       252. The House bill and the Senate amendment have different 
     section headings. The House bill adds the word ``academic'' 
     before assessment, which is consistent throughout this part. 
     See note 50.
       LC
       253. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) There is a difference in 
     cross-references to the adequate yearly progress provisions 
     in each piece of legislation; (2) The Senate amendment, but 
     not the House bill, requires LEAs to use State assessments 
     and additional measures described in their plan to determine 
     if adequate yearly progress is being met; the House bill, but 
     not the Senate amendment, requires the use of State 
     assessments to determine if adequate yearly progress is being 
     met; and (3) The Senate amendment, but not the House bill, 
     refers to enabling students to meet the State standards.
       SR with amendment to strike paragraph (1) and insert the 
     following and redesignate subsequent paragraphs accordingly:
       ``(1) use the State academic assessments and other academic 
     indicators described in the State plan to review annually the 
     progress of each school served under this part to determine 
     whether the school is making adequate yearly progress as 
     defined in section [1111(b)(2)(B)]; and
       ``(2) at the local education agency's discretion, use any 
     academic assessments or any other academic indicators 
     described in the local educational agency's plan under 
     section [1112(b)(1) and (2)] to review annually the progress 
     of each school served under this part to determine whether 
     the school is making adequate yearly progress as defined in 
     section [1111(b)(2)(B)], except the use of such additional 
     assessments or indicators may not be used to reduce the 
     number or change which schools would otherwise be subject to 
     school improvement, corrective action, or restructuring under 
     section 1116 if such additional assessments or indicators 
     were not used, but may be used to identify additional schools 
     for school improvement or in need of corrective action or 
     restructuring.''
       254. The House bill refers to publication and dissemination 
     of results, while the Senate amendment refers to the 
     provision of results. The Senate amendment, but not the House 
     bill, adds the word ``local'' before ``annual review''. The 
     House bill has a different list of recipients than the Senate 
     amendment. The Senate amendment, but not the House bill, 
     describes how the results are to be provided and what they 
     are to be used for.
       HR/SR with an amendment to merge the language of both.
       255. The House bill and the Senate amendment are similar, 
     with the following exceptions: (1) The House bill contains a 
     general reference to parental involvement under the Act, 
     while the Senate amendment refers to specific parental 
     involvement under section 1118; and (2) The Senate amendment, 
     but not the House bill, refers to professional development 
     under section 1119 and ``other activities'' under the Act.
       SR with an amendment to insert ``professional development, 
     and other activities'' after ``parental involvement,'' in 
     (3).
       256. The House bill does not contain a similar provision.
       SR
       257. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The Senate amendment, but 
     not the House bill, conditions the LEA requirements on 
     subparagraph (B) following, although subsection (b)(1)(C) of 
     the House bill is similar; see note 260; and (2) There is a 
     difference in cross-references to the adequate yearly 
     progress provisions in each piece of legislation.
       HR with amendment to strike ``for any year'' and insert 
     ``for two consecutive years''
       258. The Senate amendment contains a similar provision 
     which is located in subsection (b)(12)(A)(i). See note 331 
     for differences.

[[Page 25817]]

       HR
       259. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to strike ``first day'' and insert 
     ``beginning'' and to insert ``next'' before ``school year''.
       260. The House bill and the Senate amendment are similar 
     with the exceptions that the House bill refers to 
     ``advanced'' achievement and the Senate amendment refers to 
     ``proficient level of performance'', and there is a technical 
     difference in cross-references.
       HR
       261. The House bill and the Senate amendment are the same.
       LC
       262. The Senate amendment contains a similar provision in 
     subsection (b)(5). See notes 290, 291 and 292 for 
     differences.
       SR with amendment to add at the end: ``In providing 
     students the option to transfer to another public school, the 
     local educational agency shall give priority to the lowest-
     achieving children from low-income families, as determined by 
     the local educational agency for purposes of allocating funds 
     to schools under section 1113(c)(1).''
       263. The Senate amendment does not contain a similar 
     provision.
       SR
       264. The House bill and the Senate amendment are the same 
     with the exception that the House bill refers to 
     ``restructuring'' while the Senate amendment refers to 
     ``reconstitution''.
       SR
       265. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     bill, but not the Senate amendment, allows for supporting 
     evidence to be provided to contest an identification if a 
     majority of parents believe the identification was in error.
       SR
       Report language:
       ``The Conferees urge that, in providing the opportunity for 
     review under paragraph (2) and before identifying a school 
     for school improvement, corrective action, or restructuring, 
     SEAs should provide to LEAs, and the LEAs shall make 
     available to school officials, teachers, parents, and other 
     interested parties, information on the statistical accuracy 
     of the assessment and the data produced in a language and 
     format that is likely to be accessible and understandable to 
     all parties, in order to allow such individuals to make an 
     informed judgment about the accuracy of the identification 
     for improvement of a school.''
       266. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill, but not 
     the Senate amendment, refers to an LEA providing a school 
     with the opportunity to review school level data; and (2) The 
     Senate amendment, but not the House bill, refers to an LEA 
     making an initial determination under the paragraphs listed.
       SR
       267. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     bill, but not the Senate amendment, conditions the LEA 
     requirements on the resolution of the review previously 
     described in paragraph (2).
       SR
       268. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment, but not the House bill, allows for the inclusion 
     of a comprehensive school reform model meeting the 
     requirements of section 1706(a).
       HR
       269. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill and the 
     Senate amendment reference different categories of students 
     (see note 63); (2) There is a technical difference in cross-
     references to assessment provisions; and (3) The House bill 
     and the Senate amendment differ in the title of each piece of 
     legislation.
       HR/SR with amendment to strike ``10 years'' and insert ``12 
     years'' and to strike ``after the date . . . 2001'' and 
     insert ``of the end of the 2001--2002 school year''
       270. The House bill and the Senate amendment are the same.
       LC
       271. The House bill and the Senate amendment are the same.
       LC
       272. The House bill and the Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       273. The Senate amendment does not contain a similar 
     provision.
       SR
       274. The House bill and the Senate amendment are the same.
       LC
       275. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill and the 
     Senate amendment reference different categories of students 
     (see note 63); (2) There is a technical difference in cross-
     references to assessment provisions; (3) The House bill and 
     the Senate amendment differ in the title of each piece of 
     legislation; (4) The House bill refers to ``measurable'' 
     goals, while the Senate amendment refers to ``objective'' 
     goals; and (5) The Senate amendment, but not the House bill, 
     refers to students making ``continuous and significant 
     progress''.
       SR w/amendment to insert ``objective'' after 
     ``measurable'', to insert ``consistent with adequate yearly 
     progress as defined under section 1111 (b)'' and to strike 
     ``10 years'' and insert ``12 years'' and to strike ``after 
     the date . . . 2001'' and insert ``of the end of the 2001--
     2002 school year''
       276. The House bill and the Senate amendment are the same.
       LC
       277. The House bill and the Senate amendment are the same.
       LC and after ``(4)'' insert ``and the local educational 
     agency's responsibilities under section 1120A.''
       278. The House bill does not contain a similar provision.
       HR
       279. The Senate amendment does not contain similar 
     provisions.
       SR with an amendment to strike ``extended learning time for 
     students, such as'' and insert ``activities'' after ``year'' 
     in clause (viii) and to strike clause (ix) and insert ``(ix) 
     incorporate a teacher mentoring program.''
       Report Language:
       Successful mentoring programs pair beginning and veteran 
     teachers with an exemplary teacher who has expertise in the 
     same subject matter as the teachers who are mentored. 
     Mentoring programs are usually school-based and include 
     activities such as observing and coaching the teachers who 
     are mentored.
       280. The House bill and the Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       281. The Senate amendment does not contain a similar 
     provision.
       SR
       282. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill, but not 
     the Senate amendment, provides for an exception to the 
     requirement described in subparagraph (D) of the House bill 
     following; and (2) The House bill refers to the school year 
     following the school year in which the school failed to make 
     adequate yearly progress, while the Senate amendment refers 
     to the school year following the school year in which the 
     school was identified.
       HR with amendment to insert ``Except as provided in 
     subparagraph [(D)],'' before ``A school shall''
       283. The Senate amendment does not contain a similar 
     provision.
       SR
       284. The Senate amendment, but not the House bill, requires 
     the LEA to act 45 days after receiving a school plan.
       HR
       285. The House bill and the Senate amendment are the same 
     in the clauses (i) and (ii) of each piece of legislation.
       LC
       Report language:
       ``The Conferees believe that in instances where peer review 
     of a school plan [Section 1116(c)(3)(D)] is required, local 
     educational agencies may, with the approval of the State 
     educational agency, use the State Committee of Practitioners 
     (as described in Section 1803(b)) to perform the peer review 
     process.''
       286. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     bill, but not the Senate amendment, directs the LEA to 
     provide technical assistance to the school ``throughout the 
     duration of the plan.''
       SR
       287. The House bill and the Senate amendment differ 
     technically in the cross-reference. The Senate amendment, but 
     not the House bill, refers to problems in implementing 
     parental involvement (under section 1118), professional 
     development (under section 1119), and other school and LEA 
     responsibilities.
       HR
       288. The House bill and the Senate amendment are the 
     similar with the exception of the House bill reference to 
     professional development.
       SR
       289. The House bill and the Senate amendment are the same 
     through subparagraph (C) following of each piece of 
     legislation.
       LC
       290. The House bill contains a similar provision which is 
     located in subsection (b)(1)(E) (see note 262). The House 
     bill requires intra-district public school choice not later 
     than the first day of the school year following 
     identification, while the Senate amendment requires intra-
     district public school choice at the end of the first year 
     after the school year for which the school was identified. In 
     addition, there is a difference in cross-references to the 
     adequate yearly progress provisions in each piece of 
     legislation.
       HR with amendment to insert ``continue to'' before 
     ``provide'' and to strike ``unless'' in subparagraph (A) and 
     to insert as a new subparagraph (#--LC) ``make supplemental 
     services available, consistent with subsection [(d)(1)]''
       291. The House bill contains a similar provision which is 
     located in subsection (b)(1)(E). The Senate amendment, but 
     not the House bill, also requires the intra-district public 
     school choice to be not prohibited by local law, including 
     school board approved LEA policy.
       SR
       292. The House bill does not contain a similar exception.

[[Page 25818]]

       SR
       293. The House bill does not contain this provision. Also 
     see note 303.
       SR
       294. The House bill does not contain this provision. 
     However, see also paragraph (4) of the House bill.
       HR with amendment to strike ``while . . . action''
       295. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment, but not the House bill, references corrective 
     action and reconstitution.
       HR with an amendment strike ``reconstitution'' and insert 
     ``restructuring'' in (F)(7) and to conform parental 
     information with note #168.
       296. The House bill and the Senate amendment are the same 
     with minor wording differences in subparagraphs (A) through 
     (C) following of each piece of legislation.
       SR
       297. The House bill and the Senate amendment are 
     substantially the same with the exception that the House 
     refers to the ``achievement'' problem, while the Senate 
     amendment refers to the ``performance'' problem.
       SR
       298. The House bill and the Senate amendment are the same 
     with minor differences in wording.
       LC
       299. The House bill, but not the Senate amendment, includes 
     public charter schools. The Senate amendment, but not the 
     House bill, conditions the explanation on when the school is 
     identified for corrective action or reconstitution. The 
     Senate amendment, but not the House bill, refers to the 
     provision of transportation and supplementary services.
       HR with amendment to strike ``when the school is identified 
     . . . (8),''
       300. See note 162.
       HR
       301. The House bill and the Senate amendment are the same 
     in subparagraph (A) of each piece of legislation with minor 
     wording differences and a technical difference in cross-
     references. The Senate amendment requires corrective action 
     to be consistent with ``State and local law'', while the 
     House bill requires corrective action to be consistent with 
     State law.
       SR
       302. The House bill and the Senate amendment are similar 
     with minor wording differences and a technical difference in 
     cross-references.
       LC
       303. The House bill, but not the Senate amendment, refers 
     to the provision of public school choice and technical 
     assistance and the identification of a school and corrective 
     action to be taken. The Senate amendment contains a similar 
     provision in clause (iii) following. There is a technical 
     difference in cross-references to assessment provisions. The 
     House bill refers to those schools that have failed to make 
     adequate yearly progress at the end of the first full school 
     year following identification. The Senate amendment refers to 
     those schools that have failed to make adequate yearly 
     progress at the end of the 2nd year after the school year for 
     which the school was identified. The House bill contains a 
     provision regarding those schools identified before 
     enactment, which the Senate also does in paragraph (12) 
     following. See note 331 for differences.
       HR with amendment to add ``full school'' after ``second''
       304. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) The House bill, but not 
     the Senate amendment adds ``continue to'' before ``provide; 
     and (2) The House bill, but not the Senate amendment, refers 
     to State law.
       SR
       305. The House bill and the Senate amendment contain 
     similar provisions, however, the House bill provision is 
     located in subsection (b)(10). The House bill refers to those 
     schools in school improvement, while the Senate amendment 
     refers to those schools in school improvement and corrective 
     action. The Senate amendment, but not the House bill, 
     requires the transfer of as many children as possible and 
     that the selection of those children is done on an equitable 
     basis.
       SR
       306. See note 303 regarding identifying schools and taking 
     corrective actions.
       LC
       307. The House bill does not contain this provision.
       SR
       308. The House bill, but not the Senate amendment, refers 
     to the staff relevant to the failure to make adequate yearly 
     progress.
       SR
       309. The House bill and the Senate amendment are 
     substantially similar with the exceptions of minor wording 
     differences and the House bill, but not the Senate amendment, 
     referring to the school meeting adequate yearly progress.
       SR with an amendment to insert Report Language:
       Report Language:
       If an LEA chooses to implement a new curriculum as a means 
     of corrective action, such new curriculum shall significantly 
     depart from the existing curriculum in a manner aimed to have 
     the school attain adequate yearly progress. The Conferees 
     intend that such new curriculum constitute a substantial 
     structural change to the school's curriculum that is 
     consistent with the State academic content and academic 
     achievement standards and specifically address issues 
     identified by the plan developed by the school upon being 
     identified as in need of improvement.
       310. The Senate amendment does not contain the provisions 
     in subclauses (III)--(VI) following in the House bill.
       SR
       311. The House bill and the Senate amendment are the same.
       LC with amendment to add ``requirements of second year of 
     school improvement'' after ``implementation of'', strike 
     ``only'' and insert ``restructuring'', strike ``school's 
     failure'' and to insert ``school makes adequate yearly 
     progress for one year or fails'' before ``to make'' and to 
     strike ``was justified''.
       312. The House bill, but not the Senate amendment, requires 
     the information be disseminated to the parents of children 
     enrolled at the school in a format and to the extent 
     practicable in a language the parents can understand.
       SR with an amendment to conform parental information with 
     note #168.
       313. Both the House bill and the Senate amendment refer to 
     schools having failed to make adequate yearly progress after 
     one year of corrective action, although the House bill refers 
     to a ``full'' year. However, the House bill, but not the 
     Senate amendment, also requires for schools to be identified 
     in restructuring to fail to make statistically significant 
     adequate yearly progress for the economically disadvantaged 
     students in the subjects included in the State's definition 
     of adequate yearly progress after one year.
       HR with amendment to insert ``full school'' after ``one''
       314. The Senate amendment does not contain a similar 
     provision.
       HR
       315. See note 304.
       SR with amendment to insert ``continue to'' before 
     ``provide''
       316. The Senate amendment, but not the House bill, refers 
     to those children who remain in the schools.
       HR with amendment to insert ``continue to'' before ``make'' 
     and for LC to move same language to corrective action (at 
     note 304) and to move same language but without ``continue 
     to'' to 2nd year of school improvement (at note 290)
       317. The House bill and the Senate amendment are the same 
     through clause (i) of the House bill and subclause (I) 
     following of the Senate amendment.
       LC
       318. The House bill, but not the Senate amendment, includes 
     principals. Otherwise, see note 308.
       SR with an amendment to strike ``the principal and'' and 
     insert ``which may include the principal'' after ``that are 
     relevant,''.
       319. The House bill refers to ``entering into a contract'', 
     while the Senate amendment refers to ``turning the 
     operation'' over.
       SR with an amendment to insert ``with a demonstrated record 
     of effectiveness'' after ``public school'' in (iii).
       320. The House bill, but not the Senate amendment, refers 
     to State law permitting such action.
       SR
       321. The House bill does not contain these Senate 
     provisions.
       HR with an amendment to strike subclause (V) and clause 
     (ii) and replace with a new subclause (V) and report 
     language:

       ``(V) Any other major restructuring of the school's 
     governance arrangement that makes fundamental reforms, such 
     as significant changes in the school's staffing and 
     governance, to improve student academic achievement in the 
     school and which has substantial promise of enabling the 
     school to make adequate yearly progress as defined in the 
     State plan under section 1111(b)(2). In the case of a rural 
     local educational agency with less than 600 students in 
     average daily attendance at the schools served by the agency 
     and have a School Locale Code of 7 or 8, as determined by the 
     Secretary, the Secretary shall, at such agency's request, 
     provide technical assistance to such agency for the purpose 
     of implementing this subclause.''

       Report Language:
       The Conferees recognize that rural schools and communities 
     face unique challenges, including geographic isolation, in 
     implementing the alternative governance arrangements under 
     subparagraph (B)(i)(I)--(IV). Therefore, the Conferees intend 
     for the Secretary to provide technical assistance and 
     otherwise make every effort to assist these schools in 
     restructuring, while not lessening the accountability 
     requirements under this subparagraph.
       322. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to strike ``the end'' and insert ``not 
     later than the beginning'' and to insert ``next'' before 
     ``school year in which the academic assessments are 
     administered''.
       323. The House bill, but not the Senate amendment, refers 
     to the participation of parents, to the extent practicable, 
     in the development of the plan required by this paragraph. 
     The House bill, but not the Senate amendment, also requires 
     parents to be

[[Page 25819]]

     given an explanation of the plan under this paragraph.
       SR with an amendment to strike ``to the extent 
     practicable''.
       324. The House bill refers by cross-reference to those 
     schools in school improvement, corrective action, or 
     restructuring. The Senate amendment refers to those schools 
     in corrective action.
       SR with amendment for LC to add a reference to 2nd year of 
     school improvement (at note 290)
       325. The House bill, but not the Senate amendment, refers 
     to ``public'' schools. The Senate amendment, but not the 
     House bill, references the subsection regarding a LEAs 
     obligation to provide supplementary services and 
     transportation costs.
       SR
       326. The House bill and the Senate amendment cap the amount 
     the LEA can use for transportation costs at 15% of the LEA 
     allocation under this part. The Senate amendment, but not the 
     House bill, also includes the costs of providing 
     supplementary services in the 15% cap.
       SR with amendment to strike ``15 percent'' and insert ``5 
     percent'' and for LC to insert as a new subparagraph (C) the 
     10% ``flex pot'' that can be used for either public school 
     choice or for supplemental services and to insert special 
     rule that if the State pays for public school choice, the 5% 
     can be used as an additional flex pot to pay for supplemental 
     services.
       327. See note 305.
       SR with amendment for LC to add a reference to 2nd year of 
     school improvement (at note 290) and to insert ``corrective 
     action, or restructuring'' after ``school improvement''
       328. The House bill, but not the Senate amendment, refers 
     to those schools in corrective action and restructuring. 
     Otherwise, the House bill and Senate amendment are 
     substantially the same.
       HR with amendment to insert ``school improvement, 
     corrective action, or restructuring'' and to strike 
     ``reconstitution'' in both places.
       329. The Senate amendment does not contain a similar 
     provision.
       HR
       330. The House bill does not contain a similar provision.
       HR with amendment to strike paragraph (11) and insert new 
     paragraph (11):
       ``(11) Special Rule.--A local educational agency shall 
     permit a child who transferred to another school under this 
     subsection to remain in that school until the child has 
     completed the highest grade in that school. The obligation of 
     the local educational agency to provide, or to provide for, 
     transportation for the child ends, except that the obligation 
     of the local educational agency to provide, or provide for, 
     transportation remains until the end of the school year, if 
     the school from which the child transferred is no longer 
     identified for school improvement or subject to corrective 
     action or restructuring.''
       331. See notes 258 and 303.
       HR with amendment to strike in subparagraph (A) (i) and 
     (ii) ``at the beginning of the next school year following 
     such day'' and to strike in subparagraph (B) ``and that fails 
     . . . such date'' and to strike in subparagraph (B) ``subject 
     to . . . next school year'' and insert ``treated by the local 
     educational agency as a school described in paragraph (7)'' 
     and to strike subparagraphs (A)(iii) and (A)(iv) and 
     subparagraph (B)(ii), and to add a special rule that public 
     school choice and supplemental services must be implemented 
     no later than the beginning of the 2002-2003 school year for 
     the appropriate schools identified before enactment pursuant 
     to paragraphs (A)(i) and (ii) and (B)(ii), and the Department 
     of Education must issue regulations on the new provisions 
     relating to sections 1111 and 1116 within 6 months of date of 
     enactment of this Act.
       332. The House bill refers to State responsibilities while 
     the Senate amendment refers to SEA responsibilities.
       HR
       333. The Senate amendment, but not the House bill, refers 
     to schools in corrective action. The House bill, but not the 
     Senate amendment, refers to ``restructuring''. The Senate 
     amendment, but not the House bill, directs the SEA to use 
     funds reserved under section 1003 to the extent possible.
       SR with an amendment to insert ``corrective action'' after 
     ``school improvement,'' in (A).
       334. The House bill and the Senate amendment are the same 
     with minor wording differences.
       LC
       335. The Senate amendment does not contain this provision.
       SR with amendment to strike ``within the same . . . was 
     given'' and insert ``before any identification of a school 
     required under this section takes place.''
       336. The House bill does not contain these provisions.
       HR with amendment to strike subparagraphs (C) and (D) and 
     insert new subparagraph (C):
       ``(C) for local educational agencies or schools identified 
     for improvement under section 1116, notify the Secretary of 
     major factors that were brought to the attention of the State 
     educational agency under section 1111(b)(8) that have 
     significantly impacted student achievement.''
       337. There is a difference in cross-references regarding 
     adequate yearly progress. The Senate amendment, but not the 
     House bill, also requires a review of the LEA's 
     implementation of the responsibilities contained in the 
     listed sections.
       SR with an amendment ``and to determine if each LEA is 
     carrying out its responsibilities under 1116, 1117, 1118, and 
     1119'' after ``achievement standards'' and before the semi-
     colon.
       338. The Senate amendment does not contain this provision.
       SR
       339. The House bill does not contain these provisions.
       SR with an amendment to strike subparagraph (B) and strike 
     paragraph (2) and insert:
       ``(2) Rewards.--In the case of a local educational agency 
     that for 2 consecutive years has exceeded the State's 
     definition of adequate yearly progress as defined in the 
     State plan under section 1111(b)(2), the State may make 
     rewards of the kinds described under section 1117.''
       340. The Senate amendment, but not the House bill, refers 
     to schools served under this part and their progress toward 
     meeting the State's performance standards. The Senate 
     amendment also provides for an exception for targeted 
     assistance programs, which the House does as well in 
     paragraph (4), although the House bill refers to targeted 
     assistance schools and there are other minor wording 
     differences.
       SR
       341. The Senate amendment does not contain this provision.
       SR with amendment for LC to move language to note 331 as 
     subparagraph (C) and to parallel school improvement and 
     corrective action language for schools.
       342. The Senate amendment does not contain this provision.
       SR with amendment for LC to move language to note 331 as 
     subparagraph (D) and to parallel school improvement and 
     corrective action language for schools.
       343. See note 340.
       SR
       344. The House bill and the Senate amendment are similar 
     with the following exceptions: (1) There is a difference in 
     the paragraph references; (2) The House bill refers to LEA 
     data, while the Senate amendment refers to ``school-level'' 
     data; and (3) There are minor wording differences between the 
     House bill and Senate amendment regarding the LEA provision 
     of evidence for alleged identification error and the timeline 
     for the final determination of LEA status.
       SR with an amendment to strike ``local educational agency'' 
     before ``data''.
       Report Language:
       The Conferees urge that, in providing the opportunity for 
     review under paragraph (5) and before identifying a local 
     educational agency for improvement, SEAs should provide to 
     LEAs, and the LEAs shall make available to school officials, 
     teachers, parents, and other interested parties, information 
     on the statistical accuracy of the assessment and the data 
     produced in a language and format that is likely to be 
     accessible and understandable to all parties, in order to 
     allow such individuals to make an informed judgment about the 
     accuracy of the identification for improvement of a local 
     educational agency.''
       345. The Senate amendment does not contain a similar 
     provision.
       SR
       346. The House bill and the Senate amendment are similar 
     with a technical difference in cross-references regarding LEA 
     identification. In addition, the House bill, but not the 
     Senate amendment, requires consultation with the groups 
     listed.
       SR
       347. The House bill and the Senate amendment are the same.
       LC
       348. The Senate amendment, but not the House bill, refers 
     to consistency with State standards.
       HR
       349. The Senate amendment does not contain a similar 
     provision.
       SR
       350. The Senate amendment, but not the House bill, contains 
     numerous requirements, including specifying where the funds 
     are to be taken from, how they are to be treated, and what 
     they are to be used for.
       HR with amendment to strike clause (iv) and replace with 
     new clause (iv): ``(iv) address the professional development 
     needs of the instructional staff by committing to spend not 
     less than 10% of the funds received by the local educational 
     agency under this part during 1 fiscal year for professional 
     development (including funds reserved for professional 
     development under subsection (c)(3)(A)(iii)), but excluding 
     funds reserved for professional development under subsection 
     (j) of section 1119A.''
       Report language:
       ``The Conferees intend that such funds shall supplement and 
     not supplant professional development that instructional 
     staff would otherwise receive, and which professional 
     development, including mentoring for teachers in low-
     performing schools, shall increase the content knowledge of 
     teachers and build the capacity of the teachers to align

[[Page 25820]]

     classroom instruction with challenging academic content 
     standards and to bring all students to proficient or advanced 
     levels of achievement as determined by the State.''
       351. The House bill and the Senate amendment are generally 
     similar with the exception that the Senate amendment refers 
     to ``subjects and grades'' and ``continuous and significant 
     progress'' toward proficiency over 10 years.
       SR with an amendment to insert ``consistent with adequate 
     yearly progress as described under section 1111(b)''
       352. The House bill does not contain a similar provision.
       HR with an amendment to strike ``and performance;'' and 
     insert ``academic'' before ``achievement''.
       353. The Senate amendment does not contain a similar 
     provision.
       SR with an amendment to strike clause (iii) and insert as 
     new clause (iii):
       ``(iii) incorporate, as appropriate, before school, after 
     school, during the summer, and extension of the school year 
     activities.''
     (See note 279)
       354. The House bill and the Senate amendment are 
     substantially the same.
       LC to conform with parental language from note 168.
       355. The House bill and the Senate amendment are similar 
     with the exception that the Senate amendment, but not the 
     House bill, includes SEA technical assistance.
       HR with an amendment to insert after ``(5)'' the following: 
     ``and the local educational agency's responsibilities under 
     section 1120A.''
       356. The House bill does not contain a similar provision.
       HR
       357. The Senate amendment does not contain a similar 
     provision.
       SR
       358. The House bill and the Senate amendment are similar 
     with the exception that the House bill, but not the Senate 
     amendment, refers to the provision of technical assistance if 
     requested. In addition, the House bill refers to the 
     ``State'' responsibility while the Senate amendment refers to 
     the SEA responsibility, a difference which is consistent 
     through the remainder of each piece of legislation.
       HR with an amendment to insert ``if requested'' after ``or 
     other assistance''
       359. The House bill and the Senate amendment are 
     substantially the same in clauses (i) and (ii) following of 
     each piece of legislation.
       LC
       360. The House bill and the Senate amendment are similar 
     with the exception that the Senate amendment, but not the 
     House bill, refers to the provision of SEA technical 
     assistance for problems implementing those activities listed 
     in the Senate amendment.
       HR with an amendment to strike ``tied to scientifically 
     based research'' and insert ``based on scientifically based 
     research'' in (B).
       361. The Senate amendment does not contain this provision.
       SR
       362. The House bill and the Senate amendment are similar 
     with minor differences in wording, technical differences in 
     cross-references, and the Senate amendment refers to 
     consistency with State and local law, while the House bill in 
     subparagraph (B) following refers to consistency with State 
     law. See note 365.
       SR
       363. The House bill and the Senate amendment are the same 
     with the exception that the House bill specifically 
     references clauses regarding corrective action.
       LC
       364. The Senate amendment does not contain this provision.
       SR
       365. The House bill and the Senate amendment are similar, 
     with minor wording differences, and the Senate amendment, but 
     not the House bill, refers to consistency with State and 
     local law. See note 362 and subparagraph (B) in the House 
     bill.
       SR
       366. The House bill and the Senate amendment are similar.
       HR with an amendment to strike ``deferring, reducing, or 
     withholding funds.'' and insert ``deferring programmatic 
     funds or reducing administrative funds'' in (vi).
       367. The House bill does not contain this provision.
       HR with an amendment to insert Report Language:
       Report Language:
       If an SEA chooses to implement a new curriculum as a means 
     of corrective action, such new curriculum shall significantly 
     depart from the existing curriculum in a manner aimed to have 
     the LEA attain adequate yearly progress. The conferees intend 
     that such new curriculum shall constitute a substantial 
     structural change to the LEA's curriculum that is consistent 
     with State academic content and academic achievement 
     standards and specifically address issues identified by the 
     plan developed by the local educational agency upon being 
     identified as in need of improvement.
       368. The House bill refers to replacing personnel relevant 
     to the failure to make adequate yearly progress. The Senate 
     amendment refers to reconstituting personnel.
       SR
       369. The House bill and the Senate amendment are 
     substantially the same in the following three provisions.
       LC
       370. The Senate amendment does not contain a similar 
     provision.
       SR with amendment to require LEA to use the 5% LEA 
     reservation and 10% flex reservation for transportation. (See 
     note 326)
       371. The Senate amendment, but not the House bill, refers 
     to that corrective action taken pursuant to this paragraph. 
     The House bill refers to due process provided to LEAs, while 
     the Senate amendment refers to notice provided to LEAs. The 
     Senate amendment, but not the House bill, refers to a 
     timeline by which the hearing shall take place.
       HR
       372. The House bill and the Senate amendment are 
     substantially the same with the exception that the House bill 
     refers to specific dissemination outlets, while the Senate 
     amendment refers to a generally available medium.
       LC
       373. The House bill and the Senate amendment are 
     substantially the same with minor wording differences, and 
     the House bill, but not the Senate amendment, refers to the 
     financial resources of LEAs and schools.
       LC with amendment to conform with note 311
       374. The House bill does not contain a similar provision.
       SR
       375. The House bill and the Senate amendment are similar 
     with the exceptions of minor wording differences and that the 
     House bill allows for an LEA to make adequate yearly progress 
     two out of the three years following identification, while 
     the Senate amendment requires a LEA to make adequate yearly 
     progress for two consecutive years.
       HR
       376. The House bill does not contain this provision.
       HR
       377. The House bill and the Senate amendment have different 
     headings and are located in different subsections of section 
     1116 of each piece of legislation.
       HR
       378. The House bill and the Senate amendment provide the 
     option of supplemental services to parents if a school has 
     failed for 3 years to make adequate yearly progress, as 
     defined in each piece of legislation in Title I, part A, with 
     a technical difference in cross-references. The House bill 
     refers to ``each eligible child'' that is able to obtain 
     supplemental services, while the Senate amendment refers to 
     ``to children in the school''. The House bill defines 
     ``eligible child'' in subsection (d)(10)(A) (See note 414). 
     Both the House bill and the Senate amendment require the SEA 
     to approve supplemental service providers and allow parents 
     to choose from the approved providers. However, the House 
     bill, but not the Senate amendment, describes the minimum 
     elements of the ``reasonable criteria'' the SEAs shall use to 
     approve supplemental service providers.
       HR/SR with amendment:
       (#--LC) Supplemental Educational Services.--
       (1) In the case of any school described in subsection [2nd 
     year of school improvement, corrective action, or 
     restructuring], the local educational agency serving such 
     school shall, subject to subparagraphs [(B) through (E)], 
     arrange for the provision of supplemental services to 
     eligible children in the school from a provider with a 
     demonstrated record of effectiveness, selected by the parents 
     and approved for that purpose by the State educational agency 
     in accordance with reasonable criteria that it shall adopt.''
       Report Language:
       The Conferees intend that a local educational agency shall 
     not be required to arrange for the provision of supplemental 
     services for a student, if the parent of such student has not 
     requested supplemental services.
       379. The House bill, but not the Senate amendment, 
     references the criteria described in paragraph (d)(1) of the 
     House bill in regards to those supplemental service providers 
     that may be selected by parents. In addition, the House bill 
     requires the LEA to assist requesting parents with the 
     selection of a provider, while the Senate amendment contains 
     a similar provision in subsection (f)(2)(C) of the Senate 
     amendment. See note 388.
       HR
       380. The House bill contains a specific reference to a 
     contract between the LEA and a supplemental service provider, 
     while the Senate amendment generally refers to the 
     relationship between the LEA and the provider in subsection 
     (f)(1)(C)--(FINANCIAL OBLIGATION OF LEA) and (f)(2)(E) of the 
     Senate amendment.
       HR/SR with amendment to insert the following and strike all 
     language (380--395 & 406):
       (3) Local Educational Agency Responsibilities.--Each local 
     educational agency subject to this subsection shall--
       (A) provide, at a minimum, annual notice to parents (in a 
     format and, to the extent practicable, in a language the 
     parents can understand) of--

[[Page 25821]]

       (i) the availability of services under this subsection;
       (ii) the approved providers of those services that are 
     within the school district served by the agency or whose 
     services are reasonably available in neighboring school 
     districts; and (iii) a brief description of the services, 
     qualifications, and demonstrated effectiveness of each such 
     provider;
       (B) if requested, assist parents to choose a provider from 
     the list of approved providers maintained by the State;
       (C) apply fair and equitable procedures for serving 
     students if spaces at approved providers are not sufficient 
     to serve all students;
       (D) not disclose to the public the identity of any student 
     eligible for, or receiving, supplemental services under this 
     subsection without the written permission of the parents of 
     the student.
       (E) Agreement.--In the case of the selection of a provider 
     by a parent, the local educational agency shall enter into an 
     agreement with such provider. Such agreement shall--
       (i) require the local educational agency to develop, with 
     parents (and the provider they have chosen), a statement of 
     specific performance goals for the student, how the student's 
     progress will be measured, and a timetable for improving 
     achievement that, in the case of a student with disabilities, 
     is consistent with the student's individualized education 
     program under section 614(d) of the Individuals with 
     Disabilities Education Act;
       (ii) describe how the student's parents and the student's 
     teacher or teachers will be regularly informed of the 
     student's progress;
       (iii) provide for the termination of such agreement with a 
     provider that is unable to meet such goals and timetables; 
     and
       (iv) contain provisions with respect to the making of 
     payments to the provider by the local educational agency;
       (v) prohibit the provider from disclosing to the public the 
     identity of any student eligible for, or receiving, 
     supplemental services under this subsection without the 
     written permission of the parents of such student.
       (4) State Educational Agency Responsibilities.--Each State 
     educational agency shall--
       (A) promote maximum participation by providers, in 
     consultation with local educational agencies, parents, 
     teachers, and other interested members of the public, to 
     ensure, to the extent practicable, that parents have as many 
     choices of those providers as possible;
       (B) develop and apply objective criteria, consistent with 
     paragraph [(6)], to potential providers that are based on a 
     demonstrated record of effectiveness in increasing the 
     academic proficiency of students in subjects relevant to 
     meeting the State academic content and student achievement 
     standards adopted under section 1111(b)(1);
       (C) maintain an updated list of approved providers across 
     the State, by school district, from which parents may select; 
     and
       (D) ensure supplemental services are provided the school 
     year following the date of enactment of the [NCLB Act].
       Report Language:
       The Conferees intend for State educational agencies to 
     actively consider the inclusion of providers who can deliver 
     high-quality distance learning in order to meet the purposes 
     of this section.
       381. The House bill and the Senate amendment require the 
     LEA, the provider, and the child's parents to agree on the 
     goals and progress for the supplemental services provided, 
     although the Senate provision is in subsection (f)(2)(E) of 
     the Senate amendment. Also see note 390.
       HR/SR with amendment to strike language (see note 380)
       382. The Senate amendment does not contain a similar 
     provision.
       HR/SR with amendment to strike language (see note 380)
       383. The Senate amendment does not contain a similar 
     provision, although the Senate amendment does generally 
     reference the relationship between the LEA and the 
     supplemental service provider in subsection (f)(1)(C)--
     (Financial Obligation of Lea) and (f)(2)(E) of the Senate 
     amendment.
       HR/SR with amendment to strike language (see note 380)
       384. The House bill and the Senate amendment require each 
     LEA required to provide supplemental services (see note 378) 
     to notify parents of the availability of supplemental 
     services, with the exception of some minor wording 
     differences.
       HR/SR with amendment to strike language (see note 380)
       385. The House bill and the Senate amendment require the 
     LEA to notify parents of the eligible supplemental service 
     providers, with the exception that the Senate amendment, but 
     not the House bill, requires notification to parents of those 
     providers within the district or in neighboring districts.
       HR/SR with amendment to strike language (see note 380)
       386. The House bill does not contain a similar provision.
       HR/SR with amendment to strike language (see note 380)
       387. The Senate amendment requires LEAs to inform providers 
     in that school district of the opportunity to provide 
     supplemental services and of the procedures for getting SEA 
     approval to provide those services. The House bill contains a 
     similar provision, but requires the SEA to notify all 
     providers of the opportunity to provide services, not just 
     those within a district, in subsection (d)(5)(E) of the House 
     bill.
       HR/SR with amendment to strike language (see note 380)
       388. See note 379.
       HR/SR with amendment to strike language (see note 380)
       389. The House bill does not contain a similar provision.
       HR/SR with amendment to strike language (see note 380)
       390. The Senate amendment, but not the House bill, requires 
     the child's parents to be informed of the child's progress on 
     a regular basis (however, see House bill subparagraph (6)(A) 
     regarding parental information required) (see note 400) and 
     the supplemental services are consistent with a child's IEP 
     under IDEA. Otherwise see note 381.
       HR/SR with amendment to strike language (see note 380)
       391. The House bill does not contain a similar provision.
       HR/SR with amendment to strike language (see note 380)
       392. The House bill and the Senate amendment require 
     consultation carrying out the responsibilities detailed in 
     the following subparagraphs, although the Senate amendment, 
     but not the House bill, contains more entities that shall be 
     consulted.
       HR/SR with amendment to strike language (see note 380)
       393. The House bill and the Senate amendment are similar 
     with the exceptions that the House bill, but not the Senate 
     amendment, requires consultation with LEAs and with minor 
     wording differences.
       HR/SR with amendment to strike language (see note 380)
       394. The House bill and Senate amendment are generally 
     similar in terms of requiring the SEA to develop criteria by 
     which to judge the eligibility of supplemental service 
     providers to participate. However, the Senate amendment, but 
     not the House bill, adds the word ``objective'' before 
     ``criteria''. In addition, the Senate amendment, but not the 
     House bill, specifically references standards developed 
     pursuant to section 1111 of Title I, while the House bill 
     references these standards in paragraph (d)(1) and generally 
     in subparagraph (d)(6)(B).
       HR/SR with amendment to strike language (see note 380)
       395. The Senate amendment, but not the House bill, requires 
     the SEA to maintain a list of supplemental service providers 
     in the LEAs that must make supplemental services available.
       HR/SR with amendment to strike language (see note 380)
       396. The House bill and the Senate amendment require the 
     SEA to develop standards and techniques to monitor the 
     performance of supplemental service providers and to withdraw 
     SEA approval if such standards are not being met by the 
     providers. The Senate amendment, but not the House bill, 
     requires the SEA to publicly report on the nature of the 
     services offered by supplemental service providers. In 
     addition, the Senate amendment, but not the House bill, 
     refers to subparagraph (B) regarding standards. See note 394.
       HR with an amendment to strike ``develop and implement'' 
     and strike ``publicly report on,'' and insert as the first 
     clause in (D) ``develop, implement, and publicly report on''.
       397. See note 387.
       SR
       398. The Senate amendment requires the SEA to ensure 
     supplemental service providers meet the codes listed. The 
     House bill contains a similar provision, with the exception 
     that the House bill, but not the Senate amendment, also 
     includes civil-rights laws. However, the House bill provision 
     is in subsection (d)(6)(C). See note 402.
       SR
       399. The Senate amendment does not contain a similar 
     provision, however similar elements can be found throughout 
     the Senate amendment. See the following notes for cross-
     references.
       SR
       400. The Senate amendment does not contain a substantially 
     similar provision, however, see note 390 regarding 
     information required to be provided to parents on the 
     progress of their child.
       SR
       401. See note 382.
       SR with an amendment to insert ``and is aligned with 
     academic achievement standards'' after ``and State,'' in (B).
       402. See note 398.
       SR
       403. The Senate amendment does not contain a similar 
     provision.
       SR
       404. The House bill, but not the Senate amendment, sets a 
     limit on the administration and cost of providing 
     supplemental services to 40 percent of the Title I, part A, 
     subpart 2 per child allocation for each school identified as 
     having failed to meet adequate yearly progress for 3 years 
     (see note 378). The House bill defines ``per child 
     allocation'' in subparagraph (d)(10)(D). The Senate 
     amendment, but not the House bill, establishes the maximum 
     amount a LEA shall pay for supplemental services for each 
     child receiving

[[Page 25822]]

     services as either the LEA's Title I, part A, subpart 2 
     allocation divided by the number of low-income students in 
     the district, or the actual cost of the services received, 
     whichever is less.
       HR with amendment to insert after ``low-income families'' 
     the following: ``(which, for the purposes of this 
     subparagraph shall mean poverty as used by the Census)''
       405. The House bill does not contain a similar provision.
       HR
       406. The House bill does not contain a similar provision. 
     However, see notes 380 and 383.
       HR/SR with amendment to strike language (see note 380)
       407. The House bill, but not the Senate amendment, allows 
     an LEA to use up to 15% of its Title I, part A, subpart 2 
     allocation to pay for transportation costs associated with 
     providing supplemental services. The Senate amendment, but 
     not the House bill, allows an LEA to use not more than 15% of 
     its Title I, part A, subpart 2 allocation for supplemental 
     services as well as transportation costs related to public 
     school choice transportation costs referenced in subsection 
     (c)(9) of the Senate amendment. See note 326.
       HR with amendment to strike ``15 percent'' and insert ``5 
     percent'' and to strike ``or to provide . . . (c)(9)'' and 
     for LC to add a reference to the ``flex pot'' at note 326.
       408. The House bill does not contain a similar provision. 
     However, see note 404.
       HR
       409. The House bill does not contain a similar provision.
       HR
       410. The House bill does not contain a similar provision.
       HR
       411. The Senate amendment does not contain a similar 
     provision in Title I, part A. However, the Senate amendment 
     contains a provision in section 5331(b)(1)(Q) which 
     authorizes LEAs to use Innovative Program Strategies funds to 
     help pay the costs of supplementary services.
       SR
       412. The Senate amendment does not contain a similar 
     provision.
       SR
       413. The Senate amendment does not contain a similar 
     provision.
       SR with amendment:
      ``(9) Duration.--The local educational agency shall continue 
     to provide supplemental educational services to a child 
     receiving such services under this subsection until the end 
     of the school year in which such services were received.''
       414. The Senate amendment does not contain a similar 
     provision.
       SR
       415. The House bill and the Senate amendment are generally 
     similar in the definition of supplemental services. However, 
     the Senate amendment, but not the House bill, includes in the 
     definition the words ``high quality, research-based, focused 
     on academic content''. In addition, the House bill defines 
     the services as designed to help the student increase 
     achievement on the assessments required under section 1111 of 
     Title I, while the Senate amendment defines the services as 
     directed at raising student proficiency on the State's 
     standards generally.
       SR with an amendment to insert the following:
       ``(B) supplemental educational services' means tutoring and 
     other supplemental academic enrichment services that are--
       (i) in addition to instruction provided during the school 
     day; and
       (ii) are of high quality, research-based, and specifically 
     designed to increase the academic achievement of eligible 
     children on the academic assessments required under section 
     1111 and attain proficiency in meeting the State's academic 
     achievement standards;''
       416. The Senate amendment does not contain a similar 
     provision.
       SR with an amendment to strike subparagraph (C) and insert 
     the following:
       ``(C) `provider' means a non-profit entity, a for-profit 
     entity, or a local educational agency which has a 
     demonstrated record of effectiveness in increasing student 
     academic achievement, and is capable of providing 
     supplemental instructional services that are consistent with 
     the instructional program of the local educational agency and 
     the academic standards described under section 1111, and is 
     financially sound.''
       417. The Senate amendment does not contain a similar 
     provision regarding fiscal management.
       SR
       418. The Senate amendment does not contain a similar 
     provision. However, also see note 407.
       HR
       419. The Senate amendment does not contain a similar 
     provision.
       SR
       420. The House bill does not contain a similar provision.
       HR with amendment to strike paragraph (4) and insert the 
     following:
       ``(4) Waiver.--(A) At the request of a local educational 
     agency, a State educational agency may waive, in whole or in 
     part, the requirement of this subsection to provide 
     supplemental services if the State educational agency 
     determines that--
       ``(i) none of the providers of those services on the list 
     approved by the State educational agency under [paragraph 
     (5)] makes those services available in the area served by the 
     local educational agency or within a reasonable distance of 
     that area; and
       ``(ii) the local educational agency provides evidence that 
     it is not able to provide those services.
       ``(B) The State educational agency shall notify the local 
     educational agency, within 30 days of receiving the local 
     educational agency's request for a waiver, whether the 
     request is approved or disapproved. If the waiver is 
     disapproved, the State educational agency shall respond in 
     writing within the same time frame with the reasons for the 
     disapproval.''
       421. The House bill does not contain a similar provision.
       HR with amendment to strike paragraph (5) and insert the 
     following:
       ``(5) Special rule.--If State law prohibits a State 
     educational agency from carrying out one or more of its 
     responsibilities under [paragraph (5)] with respect to those 
     who provide, or seek approval to provide, supplemental 
     services, each local educational agency in the State shall 
     carry out those responsibilities with respect to its students 
     who are eligible for those services.''
       422. The Senate amendment does not contain a similar 
     provision.
       SR with amendment:
       (f) Schools Funded by the Bureau of Indian Affairs.--
       (1) Adequate yearly progress for bureau funded schools.--
       (A) (i) Development of definition.--The Secretary of the 
     Interior, in consultation with the Secretary of Education if 
     the Secretary of Interior requests it, using the process set 
     out in section 1138A [LC] of the Education Amendments of 1978 
     (25 U.S.C. 2001) [negotiated rulemaking for Bureau schools], 
     shall define adequate yearly progress, consistent with 
     section 1111(b), for the schools funded by the Bureau of 
     Indian Affairs on a regional or tribal basis, as appropriate, 
     taking into account the unique circumstances and needs of 
     such schools and the students served by such schools.
       (ii) The Secretary of the Interior, consistent with clause 
     (i), may use the definition of adequate yearly progress that 
     the State in which the school that is funded by the Bureau is 
     located uses consistent with section 1111(b), or in the case 
     of schools that are located in more than one State, the 
     Secretary of the Interior may use whichever State definition 
     of adequate yearly progress that best meets the circumstances 
     and needs of such school or schools and the students they 
     serve.
       (B) Waiver.--The tribal governing body or school board of a 
     school funded by the Bureau of Indian Affairs may waive, in 
     part or in whole, the definition of adequate yearly progress 
     established pursuant to paragraph (A) where such definition 
     is deemed by such body or school board to be inappropriate. 
     If such definition is waived, the tribal governing body or 
     school board shall, within 60 days thereafter, submit to the 
     Secretary of Interior a proposal for an alternative 
     definition of adequate yearly progress, consistent with 
     section 1111(b), that takes into account the unique 
     circumstances and needs of such school or schools and the 
     students served. The Secretary of the Interior, in 
     consultation with the Secretary of Education if the Secretary 
     of Interior requests it, shall approve such alternative 
     definition unless the Secretary determines that the 
     definition does not meet the requirements of section 1111(b), 
     having taken into account the unique circumstances and needs 
     of such school or schools and the students served.
       (C) Technical assistance.--The Secretary of Interior shall, 
     in consultation with the Secretary of Education if the 
     Secretary of Interior requests it, either directly or through 
     a contract, provide technical assistance, upon request, to a 
     tribal governing body or school board of a school funded by 
     the Bureau of Indian Affairs that seeks to develop an 
     alternative definition of adequate yearly progress.
       (2) Accountability for bia schools.--For the purposes of 
     this section, schools funded by the Bureau of Indian Affairs 
     shall be considered schools subject to subsection (b), as 
     specifically provided for in this subsection, except that 
     such schools shall not be subject to subsections (b)(1)(E) 
     [public school choice], (b)(9), (b)(10), (c) and (d).
       (3) School improvement for bureau schools.--
       (A) Contract and grant schools.--For a school funded by the 
     Bureau of Indian Affairs which is operated under a contract 
     issued by the Secretary of the Interior pursuant to the 
     Indian Self-Determination Act [25 USC 450 et seq.] or under a 
     grant issued by the Secretary of the Interior pursuant to the 
     Tribally Controlled Schools Act [25 USC 2501 et seq.], the 
     school board of such school shall be responsible for meeting 
     the requirements of subsection (b) relating to development 
     and implementation of any school improvement plan as 
     described in subsection(b)(1) through (b)(3) and subsection 
     (b)(5), except subsection (b)(1)(E)[public school choice]. 
     The Bureau of Indian Affairs shall be responsible for meeting 
     the requirements of subsection (b)(4) relating to technical 
     assistance.

[[Page 25823]]

       (B) Bureau operated schools.--For schools operated by the 
     Bureau of Indian Affairs, the Bureau shall be responsible for 
     meeting the requirements of subsection (b) relating to 
     development and implementation of any school improvement plan 
     as described in subsection(b)(1) through (b)(5) except 
     subsection (b)(1)(E)[public school choice].


       (4) Corrective action and restructuring for bureau funded 
     schools.
       (A) Contract and grant schools.--For a school funded by the 
     Bureau of Indian Affairs which is operated under a contract 
     issued by the Secretary of the Interior pursuant to the 
     Indian Self-Determination Act [25 USC {time} 450 et seq.] or 
     under a grant issued by the Secretary of the Interior 
     pursuant to the Tribally Controlled Schools Act [25 USC 2501 
     et seq.], the school board of such school shall be 
     responsible for meeting the requirements of subsection (b) 
     relating to corrective action and restructuring as described 
     in subsection (b)(7) and (b)(8). Any action taken by such 
     school board under subsection (b)(7) or (b)(8) shall take 
     into account the unique circumstances and structure of the 
     Bureau of Indian Affairs-funded school system and the laws 
     governing that system.
       (B) Bureau operated schools.--For schools operated by the 
     Bureau of Indian Affairs, the Bureau shall be responsible for 
     meeting the requirements of subsection (b) relating to 
     corrective action and restructuring as described in 
     subsection (b)(7) and (b)(8). Any action taken by the Bureau 
     under subsection (b)(7) or (b)(8) shall take into account the 
     unique circumstances and structure of the Bureau of Indian 
     Affairs-funded school system and the laws governing that 
     system.
       (5) Annual report.--On an annual basis, the Secretary of 
     the Interior shall report to the Secretary of Education and 
     to the [House and Senate Committees] regarding any schools 
     funded by the Bureau of Indian Affairs which have been 
     identified for school improvement. Such report shall 
     include--
       (A) the identity of each school;
       (B) a statement from each affected school board regarding 
     the factors that lead to such identification; and
       (C) an analysis by the Secretary of the Interior, in 
     consultation with the Secretary of Education if the Secretary 
     of Interior requests it, as to whether sufficient resources 
     were available to enable such school to achieve adequate 
     yearly progress.
       423. The House bill does not contain a similar provision.
       HR with amendment to strike subsection (g) and insert new 
     subsection (g):
       ``(g) Other Agencies.--Pursuant to the notification 
     described in subsection (c)(13)(C), the Secretary may notify, 
     to the extent feasible and necessary as determined by the 
     Secretary, other relevant Federal agencies regarding the 
     major factors determined by the State educational agency that 
     have significantly impacted student achievement.''
       424. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by adding LEAs, changing the 
     references to standards and omitting paragraph (2) of 
     subsection (a) of current law. The Senate amendment retains 
     current law.
       HR/SR with amendment to strike all and insert the 
     following:

     SEC. 107. SCHOOL SUPPORT AND RECOGNITION.

       Section 1117 is amended to read as follows:

     ``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

       ``(a) System For Support.--Each State shall establish a 
     statewide system of intensive and sustained support and 
     improvement for local educational agencies and schools 
     receiving funds under this part, in order to increase the 
     opportunity for all students in those agencies and schools to 
     meet the State's academic content standards and student 
     academic achievement standards.
       ``(1) Priorities.--In carrying out this subsection, a State 
     shall--
       ``(A) first, provide support and assistance to local 
     educational agencies subject to corrective action under 
     section 1116 and assist schools, in accordance with section 
     1116(b)(11), for which a local educational agency has failed 
     to carry out its responsibilities under paragraphs (7) and 
     (8) of section 1116(b);
       ``(B) second, provide support and assistance to other local 
     educational agencies identified as in need of improvement 
     under section 1116(b); and
       ``(C) third, provide support and assistance to other local 
     educational agencies and schools participating under this 
     part that need that support and assistance in order to 
     achieve the purpose of this part.
       ``(2) Regional centers.--Such a statewide system shall, to 
     the extent practicable, work with and receive support and 
     assistance from the comprehensive regional technical 
     assistance centers and the regional educational laboratories 
     under section 941(h) of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994, or 
     other providers of technical assistance.
       ``(3) Provisions.--The system shall include at a minimum, 
     the following:
       ``(A) Approaches.--
       ``(i) In general.--In order to achieve the purpose 
     described in subsection (a), each such system shall give 
     priority to using funds made available to carry out this 
     section--

       ``(I) to establish school support teams for assignment to 
     and working in schools in the State that are described in 
     subsection (a)(1)(A) which shall be composed of persons 
     knowledgeable about scientifically based research and 
     practice on teaching and learning and about successful 
     schoolwide projects, school reform, and improving educational 
     opportunities for low-achieving students, including--
       ``(aa) highly qualified or distinguished teachers and 
     principals;
       ``(bb) pupil services personnel;
       ``(cc) parents;
       ``(dd) representatives of institutions of higher education;
       ``(ee) regional educational laboratories or comprehensive 
     regional technical assistance centers;
       ``(ff) outside consultant groups; or
       ``(gg) other individuals as the State educational agency, 
     in consultation with the local educational agency, may 
     determine appropriate.
       ``(II) to provide such support as the State educational 
     agency determines to be necessary and available to assure the 
     effectiveness of such teams .
       ``(III) Functions.--Each school support team assigned to a 
     school under this section shall--
       ``(aa) review and analyze all facets of the school's 
     operation, including the design and operation of the 
     instructional program, and assist the school in developing 
     recommendations for improving student performances in that 
     school;
       ``(bb) collaborate, with parents and school staff and the 
     local educational agency serving the school, in the design, 
     implementation, and monitoring of a plan that, if fully 
     implemented, can reasonably be expected to improve student 
     performance and help the school meet its goals for 
     improvement, including adequate yearly progress under section 
     1111(b)(2)(B);
       ``(cc) evaluate, at least semiannually, the effectiveness 
     of school personnel assigned to the school, including 
     identifying outstanding teachers and principals, and make 
     findings and recommendations to the school, the local 
     educational agency, and, where appropriate, the State 
     educational agency; and
       ``(dd) make additional recommendations as the school 
     implements the plan described in clause (ii) to the local 
     educational agency and the State educational agency 
     concerning additional assistance that is needed by the school 
     or the school support team.
       ``(ii) Continuation of assistance.--After 1 school year, 
     the school support team, in consultation with the local 
     educational agency, may recommend that the school support 
     team continue to provide assistance to the school, or that 
     the local educational agency or the State educational agency, 
     as appropriate, take alternative actions with regard to the 
     school.

       ``(iii) the designation and use of `Distinguished Teachers 
     and Principals', chosen from schools served under this part 
     that have been especially successful in improving academic 
     achievement.
       ``(iv) Alternatives.--The State may devise additional 
     approaches to providing the assistance described in 
     subsection (a), such as providing assistance through 
     institutions of higher education and educational service 
     agencies or other local consortia, and private providers of 
     scientifically based technical assistance.
       ``(b) State Recognition.--
       ``(1) Establishment of academic achievement awards 
     program.--
       ``(A) In general.--Each State receiving a grant under this 
     part shall establish a program for making academic 
     achievement awards to recognize and, as appropriate and as 
     funds are available under subsection (c)(3)(A), may 
     financially reward schools served under this part that have--
       ``(i) significantly closed the achievement gap between the 
     groups of students defined in section 1111(b)(2); or
       ``(ii) exceeded their adequate yearly progress goals, 
     consistent with section 1111(b)(2), for 2 or more consecutive 
     years.
       ``(B) Distinguished schools.--Of those schools meeting the 
     criteria described in subparagraph (A), each State shall 
     designate as distinguished schools those schools that have 
     made the greatest gains in closing the achievement gap as 
     described in clause (i) or exceeding adequate yearly progress 
     as described in clause (ii). Such designated schools may 
     serve as models and provide support to other schools, 
     especially schools identified for improvement under section 
     1116, to assist such schools in meeting the State's academic 
     content standards and student academic achievement standards.
       ``(C) Awards to teachers.--A State program under paragraph 
     (A) may also recognize and provide financial awards to 
     teachers teaching in a school described in such paragraph 
     that consistently makes significant gains in academic 
     achievement in the areas in which the teacher provides 
     instruction, or to teachers or principals designated as 
     distinguished under subsection (a)(3)(A)(iii).
       ``(c) Funds.--Each State--
       ``(1) shall use funds reserved under section 1003(a) and 
     may use funds made available under section 1002(j) for the 
     approaches described under subsection (a)(3)(A).'

[[Page 25824]]

       ``(2) shall use State administrative funds authorized under 
     section 1002(i) for such purpose to establish a Statewide 
     system of support described under subsection (a) and
       ``(3) (A) Reservation of funds by state.--
       ``(i) For the purpose of carrying out subparagraphs (A), 
     (B), or (C) of subsection (b), each State receiving a grant 
     under this part may reserve, from the amount (if any) by 
     which the funds received by the State under this part for a 
     fiscal year exceed the amount received by the State under 
     this part for the preceding fiscal year, not more than 5 
     percent of such excess amount; and
       ``(ii) For the purpose of carrying out subparagraph (C) of 
     subsection (b), a State educational agency may reserve funds 
     as necessary from [State activity reference] under Title II.
       ``(B) Use within 3 years.--Notwithstanding any other 
     provision of law, the amount reserved under paragraph (A) by 
     a State for each fiscal year shall remain available to the 
     State until expended for a period not exceeding 3 years.
       ``(C) Special allocation rule for schools in high-poverty 
     areas.--
       ``(i) In General.--Each State shall distribute at least 75 
     percent of the amount reserved under paragraph (A) for each 
     fiscal year to schools described in subparagraph (A), or to 
     teachers consistent with subsection (b)(1)(C).
       ``(ii) School described.--A school described in 
     subparagraph) (i) is a school whose student population is in 
     the highest quartile of schools statewide in terms of the 
     percentage of children from low income families.
       425. The House bill and the Senate amendment are similar 
     except the House bill refers to the State, while the Senate 
     amendment refers to the SEA. There are also technical 
     differences in cross-references.
       HR/SR with amendment (see note 424)
       426. The House bill and the Senate amendment are similar 
     with a technical difference in cross-references. The House 
     bill only refers to LEAs, while the Senate amendment refers 
     to both LEAs and schools.
       HR/SR with amendment (see note 424)
       427. The House bill and the Senate amendment are the same.
       HR/SR with amendment (see note 424)
       428. The House bill does not contain this provision.
       HR/SR with amendment (see note 424)
       429. The House bill refers to technical assistance to 
     support the approaches listed while the Senate amendment 
     refers to giving priority to using available funds for the 
     approaches listed.
       HR/SR with amendment (see note 424)
       430. Both the House bill and the Senate amendment refer to 
     school support teams. However, there are major differences: 
     (1) The Senate amendment, but not the House bill, refers to 
     the assignment and working of such teams in schools described 
     in subsection (a)(3(A); (2) The House bill, but not the 
     Senate amendment, refers to scientifically based research and 
     practice on teaching and learning; (3) The Senate amendment, 
     but not the House bill, refers to schoolwide projects and 
     school reform; (4) The House bill refers to ``educational 
     results'', while the Senate amendment refers to ``educational 
     opportunities''; and (5) The Senate amendment, but not the 
     House bill, contains a specific list of required individuals.
       HR/SR with amendment (see note 424)
       431. The House bill does not contain a similar provision.
       HR/SR with amendment (see note 424)
       432. The House bill does not contain similar provisions. 
     The Senate amendment, but not the House bill, makes a number 
     of changes to current law. Clauses (i) and (ii) of the Senate 
     amendment are in current law. The Senate amendment adds the 
     functions in clauses (iii) and (iv).
       HR/SR with amendment (see note 424)
       433. The House bill does not contain similar provisions. 
     The Senate amendment, but not the House bill, makes a number 
     of changes to current law. The Senate amendment allows States 
     to identify any school served under the part as a 
     distinguished school, while current law refers to only those 
     schools that have exceeded the State's adequate yearly 
     progress definition for 3 consecutive years. The Senate 
     amendment also makes a technical change adding a parenthesis 
     and expands distinguished educators to teachers and 
     principals.
       HR/SR with amendment (see note 424)
       434. The House bill, but not the Senate amendment, refers 
     to ``Distinguished Educators'' chosen from schools served 
     under this part. The House bill and the Senate amendment are 
     similar as to the criteria of academic achievement. The 
     Senate amendment, but not the House bill, refers to State 
     recognition and provision of financial awards to teachers and 
     principals.
       HR/SR with amendment (see note 424)
       435. The House bill does not contain these provisions.
       HR/SR with amendment (see note 424)
       436. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by changing the wording, 
     uses and cross-references in subsection (d) and by changing 
     cross-references in subsection (e). The Senate amendment 
     retains current law.
       HR/SR with amendment (see note 424)
       437. The Senate amendment does not contain a similar 
     section.
       HR/SR with amendment (see note 424)
       438. The House bill does not contain a similar section.
       HR with amendment to move language to Title VI, part A with 
     amendments to language (See note 45 of Title VII).
       439. The House bill and the Senate amendment retain current 
     law with no changes.
       LC
       440. The House bill does not contain the Senate amendment's 
     change to current law. Otherwise, the House bill and the 
     Senate amendment retain current law with no other changes.
       HR
       441. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by adding a reference to 
     Early Reading First in subparagraph (D), replacing 
     subparagraphs (E) and (F) of current law with subparagraphs 
     (E) and (F) of the House bill. The Senate amendment retains 
     current law unchanged through subparagraph (F).
       SR with amendment to strike subparagraph (E) and insert:
       ``(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, including identifying 
     barriers to greater participation by parents in activities 
     authorized by this section, including giving particular 
     attention to parents who are economically disadvantaged, are 
     disabled, have limited English proficiency, have limited 
     literacy, or are of any racial or ethnic minority background, 
     and use findings of such evaluation to design strategies for 
     more effective parental involvement, and to revise, if 
     necessary, the parental involvement policies described in 
     this section; and''
       442. The House bill and the Senate amendment retain current 
     law with no changes in subparagraphs (A) and (B). The House 
     bill, but not the Senate amendment, contains a new 
     subparagraph (C) regarding the requirement that 95 percent of 
     funds must be distributed to schools served under this part.
       SR
       443. The House bill does not contain similar provisions.
       SR
       444. The House bill, but not the Senate amendment, 
     conditions the provision of notice to parents in a language 
     they can understand ``to the extent practicable'' and 
     includes the format parents can understand.
       SR with an amendment to conform parental information with 
     note #168
       445. The House bill does not contain this provision.
       HR
       446. The House bill and the Senate amendment retain current 
     law with no substantive changes through paragraph (c)(3).
       LC
       447. The House bill, but not the Senate amendment, makes a 
     number of changes to current law through subsection (e). The 
     Senate amendment retains current law. The House bill strikes 
     subparagraphs (B), (D) and (E) from current law in paragraph 
     (4). In addition, the House bill eliminates school-parent 
     compacts in current law in subsection (d), changes references 
     to assessments and changes cross-references in paragraph (5).
       SR with amendment to strike paragraph (4) and insert the 
     following:
       ``(4) provide parents of participating children--
       ``(A) timely information about programs under this part;
       ``(B) a description and explanation of the curriculum in 
     use at the school, the forms of academic assessment used to 
     measure student progress, and the proficiency levels students 
     are expected to meet; and
       ``(C) if requested by parents, opportunities for regular 
     meetings to formulate suggestions and to participate, as 
     appropriate, in decisions relating to the education of their 
     children, and respond to any such suggestions as soon as 
     practicably possible; and''
       And with amendment to strike subsection (d) and to replace 
     with current law subsection (d).
       448. Both the Senate amendment and the House bill strike 
     the reference to National Education Goals. The House bill 
     refers to ``participating parents'', while the Senate 
     amendment refers to the parents of children served. The 
     Senate amendment, but not the House bill, conditions the 
     provision ``as appropriate''.
       HR
       449. The Senate amendment does not contain a similar 
     provision. The House bill, but not the Senate amendment, 
     makes a number of changes to current law. The Senate 
     amendment retains current law with the exception of the 
     addition of a new subparagraph (C). See next note.
       SR with an amendment to insert ``such as literacy training 
     and using technology, as appropriate, to foster parental 
     involvement;'' to the end of paragraph (2).
       450. The House bill does not contain a similar provision.
       SR
       451. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by changing ``home'' to 
     ``parents'' in paragraph (3), adding references in paragraph 
     (4), adding ``parents'' in paragraph (5) (current law (7)), 
     adding understandable

[[Page 25825]]

     language requirements in paragraph (6) (current law (8)), 
     omitting current law paragraphs (6) and (12), and omitting 
     words from paragraphs (9) (current law (11)) and (11) 
     (current law (14)). The Senate amendment retains current law 
     unchanged through paragraph (14).
       SR with amendment to strike paragraphs (4) and (10) and 
     insert the following:
       (4) shall, to the extent feasible and appropriate, 
     coordinate and integrate parent involvement programs and 
     activities with Head Start, Reading First, Early Reading 
     First, Even Start, the Home Instruction Programs for 
     PreSchool Youngsters, the Parents as Teachers Program, public 
     pre-school and other programs, and conduct other activities, 
     such as parent resource centers, that encourage and support 
     in more fully participating in the education of their 
     children.
       (10) may arrange school meetings at a variety of times or 
     conduct in-home conferences between teachers or other 
     educators, who work directly with participating children, 
     with parents who are unable to attend such conferences at 
     school, in order to maximize parental involvement and 
     participation;
       452. The House bill and the Senate amendment are similar 
     except that the House bill refers to the ``part'', while the 
     Senate amendment refers to the ``section'', which limits the 
     Senate amendment provision as compared to the House bill.
       SR
       453. The House bill, but not the Senate amendment, makes a 
     change to current law. The Senate amendment retains current 
     law.
       SR
       454. The House bill does not contain a similar provision.
       HR with an amendment to strike ``which may . . . 
     technologies'' in (16)
       455. The House bill and the Senate amendment refer to 
     ``parents of migratory children''. Otherwise, the House bill, 
     but not the Senate amendment, makes a number of changes to 
     current law. The Senate amendment retains current law.
       SR
       456. The House bill does not contain similar provisions.
       HR with amendment to strike all after ``existence and 
     purpose of such centers'' in subsection (g) AND to retain 
     subsection (h).
       457. The House bill, but not the Senate amendment, makes a 
     number of changes to current law. The Senate amendment 
     retains current law. In addition, see also Senate provisions 
     regarding teacher quality programs in Title II.
       SR with amendment to strike ``fully'' before ``qualified'' 
     and insert ``highly'' in (a)(1) and to strike ``1 year or 
     more'' in (b)(1), insert ``State or local'' after ``formal'' 
     in (b)(1)(C), strike ``before the date that is 1 year'' and 
     strike ``3'' and replace with ``4'' after ``not later than'' 
     in (c), strike ``only'' in (f)(2), strike ``fully qualified'' 
     before ``teacher'' and insert ``consistent with 1119'' after 
     ``teacher'' in (f)(3)(A), strike (f)(3)(B) and strike (g)(2).
       Insert as new subsection (f)(3)(B) the following:
       ``(B) may assume limited duties that are assigned to 
     similar personnel who are not so paid, including duties 
     beyond classroom instruction or that do not benefit 
     participating children, so long as the amount of time spent 
     on such duties is the same proportion of total work time as 
     prevails with respect to similar personnel at the same 
     school.''
       Insert as new subsections (a) and (b) and redesignate 
     subsequent subsections accordingly (make changes indicated 
     above first, strike subsection (a), and then add the 
     following new language):

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

       (a) Teachers Qualifications and Measurable Objectives.--
       (1) In general.--Beginning with the first school year after 
     the effective date of this Act, each local educational agency 
     receiving assistance under this part shall ensure that all 
     teachers hired and teaching in a program supported with funds 
     under this part are highly qualified.
       (2) State Plan.--As part of the plan described in section 
     1111, 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 highly qualified not later than the end of the 2005-2006 
     school year. Such plan shall establish annual measurable 
     objectives for each local educational agency and school, 
     that, at a minimum--
       (A) shall include an annual increase in the percentage of 
     highly qualified teachers at each local educational agency 
     and school, to ensure that all teachers teaching in core 
     academic subjects in each public elementary school and 
     secondary school are highly qualified not later than the end 
     of the 2005-2006 school year;
       (B) shall include an annual increase in the percentage of 
     teachers who are receiving high-quality professional 
     development to enable such teachers to become highly 
     qualified and successful classroom teachers; and
       (C) may include such other measures as the State 
     educational agency deems appropriate to increase teacher 
     qualifications.
       (3) Local plan.--As part of the plan described in section 
     1112, each local educational agency receiving assistance 
     under this part shall develop and submit to the State 
     educational agency a plan to ensure that all teachers 
     teaching within the local educational agency and each school 
     are highly qualified not later than the end of the 2005-2006 
     school year.
       (b) Reports.--
       (1) Annual State and Local Reports.--
       (A) Each State educational agency described under 
     subsection (a) shall require each local educational agency 
     receiving funds under this part to publicly report, each 
     year, beginning in the 2002-2003 school year, the annual 
     progress of the local educational agency as a whole and of 
     each of its schools, in meeting the measurable objectives 
     described in subsection (a)(2).
       (B) Each State educational agency receiving assistance 
     under this part shall prepare and submit each year, beginning 
     in the 2002-2003 school year, a report to the Secretary, 
     describing the State educational agency's progress in meeting 
     the measurable objectives described in subsection (a)(2).
       (C) A State or local educational agency may submit 
     information from the reports described in section 1111[(h)--
     LC] for the purposes of this subsection, if such report is 
     modified, as may be necessary, to contain the information 
     required by this subsection, and may submit such information 
     as a part of the reports required under section 1111[(h)--
     LC].
       (2) Annual Reports by the Secretary.--Each year, beginning 
     in the 2002-2003 school year, the Secretary shall publicly 
     report the annual progress of State educational agencies, 
     local educational agencies, and schools in meeting the 
     measurable objectives described in subsection (a)(2), 
     including the information submitted pursuant to paragraph 
     (1)(B).
       458. The House bill, but not the Senate amendment, includes 
     this provision, which the Senate amendment does not. The 
     Senate amendment retains current law.
       (Notes 458-469).
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       459. The Senate amendment, but not the House bill, refers 
     to supporting professional development activities and 
     includes paraprofessionals, pupil services personnel, and 
     parents. See note 40 regarding references to standards.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       460. The Senate amendment does not contain this provision.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       461. The House bill and the Senate amendment are similar 
     with the exception that the House bill, but not the Senate 
     amendment, refers to ``scientifically based'' research.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       462. The Senate amendment does not contain similar 
     provisions and instead retains current law.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       463. The Senate amendment, but not the House bill, contains 
     an exception to the prohibition.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       464. Both the House bill and the Senate amendment strike 
     the reference to Title III of the Goals Act, which the House 
     bill does by striking the entire subparagraph referenced by 
     the Senate amendment.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       465. The Senate amendment does not contain similar 
     provisions.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       466. The House bill and the Senate amendment are the same 
     with minor wording differences.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       467. The House bill and the Senate amendment are 
     substantially the same.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       468. The House bill does not contain a similar provision.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       469. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by redesignating current law 
     paragraph (2) as subsection (c), omitting current law 
     paragraphs (G), (H), and (I), changing the references to and 
     uses of assessment

[[Page 25826]]

     assessments in paragraph (1), and by changing a change in 
     subsection (d). The Senate amendment retains current law.
       HR/SR with an agreement to move redrafted definition of 
     ``Professional Development'' to General Provisions. (See 
     Teacher Offer notes 174-193).
       470. Both the House bill and the Senate amendment strike 
     the reference to Goals 2000. Otherwise, the House bill, but 
     not the Senate amendment, makes changes to current law by 
     referring to ``consolidation''. The Senate amendment retains 
     current law.
       HR
       471. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by omitting current law 
     paragraphs (1) and (d) of subsection (h). The Senate 
     amendment retains current law.
       SR
       472. The House bill does not contain a similar provision.
       HR with amendment to strike subsection (j) and insert as 
     new subsection (j):
       ``(j) Each local educational agency that receives funds 
     under this part shall use not less than 5 percent or more 
     than 10 percent of such funds for each of fiscal years 2002 
     and 2003, and not less than 5 percent of the funds for each 
     subsequent fiscal year, for professional development 
     activities to ensure that teachers who are not highly 
     qualified become highly qualified not later than the end of 
     the 2005-2006 school year.''
       473. The House bill and the Senate amendment are 
     substantially the same regarding addressing the needs and 
     ensuring participation of teachers and families in the 
     activities of the sections indicated, with a technical 
     differences in cross-references.
       LC
       474. The House bill and the Senate amendment retain current 
     law with no changes.
       LC
       475. The House bill and the Senate amendment are the same 
     regarding the timely provision of services and benefits.
       LC
       476. The House bill and the Senate amendment are similar 
     regarding the LEA determination.
       LC
       477. The House bill, but not the Senate amendment, makes a 
     change to current law by replacing ``shall'' with ``may''. 
     The Senate amendment retains current law.
       HR
       478. The House bill and the Senate amendment retain current 
     law with no changes.
       LC
       479. The House bill and the Senate amendment are the same.
       LC
       480. The House bill and the Senate amendment are the same 
     with a minor wording difference.
       LC
       481. The House bill, but not the Senate amendment, makes 
     changes to current law by referring to ``funds generated 
     ...''. The Senate amendment retains current law.
       HR
       482. The Senate amendment does not contain this provision.
       SR
       483. The House bill and the Senate amendment are similar 
     with minor wording differences.
       LC
       484. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by including and describing 
     ``meetings''. The Senate amendment retains current law.
       SR
       485. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       486. The House bill and the Senate amendment are similar, 
     except the Senate amendment, but not the House bill, contains 
     a description of what the LEA shall do if a private school 
     declines to participate and the requirement of the LEA to 
     notify the private school each year of the opportunity to 
     participate.
       HR/SR with amendment to strike paragraph (4) and insert new 
     paragraph (4):
       ``(4) Documentation.--Each local educational agency shall 
     maintain in its records and provide to the State educational 
     agency a written affirmation signed by officials of each 
     participating private school that the consultation required 
     by this section has occurred. If such officials do not 
     provide such affirmation within a reasonable period of time, 
     the local educational agency shall forward the documentation 
     that such consultation has taken place to the State 
     educational agency. Such officials who do not provide such 
     affirmation may appeal to the State educational agency, 
     consistent with subsection [#--LC], regarding any failure of 
     the local educational agency to provide the consultation 
     required by this section.''
       487. The House bill and the Senate amendment are similar, 
     except the House bill refers the ``State'' throughout and the 
     Senate amendment refers to the SEA throughout. In addition, 
     there are other minor wording differences.
       LC
       488. The House contains the same provision in section 
     1113(c)(2). See note 212.
       HR with an amendment to insert new subparagraph (D):
       ``(D) using an equated measure of low-income correlated 
     with the measure of low-income used to count public school 
     children.''
       489. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       490. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       491. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC
       492. The House bill and the Senate amendment refer to the 
     same provision in the references but the cross-references 
     differ.
       LC
       493. The House bill and the Senate amendment are 
     substantially the same with minor differences in wording.
       LC
       494. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       HR/SR to move language to FIE
       495. The House bill does not contain this provision.
       SR
       496. The House bill and the Senate amendment retain current 
     law with no substantive changes.
       LC and SR with amendment to strike ``English language 
     instruction'' and replace with ``language instruction 
     educational program'' in paragraph (5)(A).
       497. The House bill and the Senate amendment have different 
     section headings. In addition, the House bill, but not the 
     Senate amendment, omits much of current law.
       SR
       498. The House bill, but not the Senate amendment, makes a 
     number of changes to current law by adding references to 
     Early Reading First throughout and adding paragraph (5). The 
     Senate amendment retains current law.
       SR
       499. The House bill refers to the Head Start Act, while the 
     Senate amendment refers to the Head Start Amendments of 1998.
       SR
       500. The House bill does not contain similar provisions.
       HR with amendment to strike all language and add a new 
     subsection (d):
       ``(d) Early Childhood Services.--A local educational agency 
     may use funds received under this part to provide high 
     quality preschool services.''
       SR--Limitation on funds
       501. The House bill does not contain this section.
       HR with amendment to strike all language and add a new 
     subsection (e):
       ``(e) A local educational agency may use funds received 
     under this part to extend the length of the school year.''

                     Title I, Part B--Reading First

       1. The House bill and the Senate amendment both authorize 
     $900 million for FY 2002. In the out years, the House bill 
     authorizes such sums for 4 succeeding fiscal years and the 
     Senate amendment authorizes such sums for 6 succeeding fiscal 
     years.
       HR with amendment to go to 5 succeeding years.
       2. The House bill and the Senate amendment authorize $75 
     million in FY 2002. The House amendment authorizes such sums 
     for 4 succeeding fiscal years and the Senate Amendment 
     authorizes such sums for 6 succeeding fiscal years.
       SR with amendment to go to 5 succeeding years.
       3. The House bill authorizes $275 million for FY 2002 and 
     such sums for 4 succeeding fiscal years and the Senate 
     Amendment authorizes $250 million for FY 2002 and such sums 
     for 6 succeeding fiscal years.
       SR with an amendment to authorize $260 million for FY 2002 
     and such sums for 5 succeeding years.
       4. The House bill authorizes such sums for FY 2002 and for 
     the 4 succeeding fiscal years. The Senate amendment 
     appropriates $25 million for FY 2002 and such sums for 6 
     succeeding fiscal years.
       HR/SR (no authorization because moved to FIE).
       5. The Senate amendment authorizes $500 million for a 
     school library program, the House bill does not.
       HR with an agreement to authorize program at $250 million 
     (with a trigger for a formula grant at $100 million).
       6. The House bill includes findings, the Senate amendment 
     does not.
       HR
       7. The House bill and the Senate amendment contain similar 
     provisions.
       LC
       8. Identical
       LC
       9. The House bill includes reference to special education 
     teachers.
       SR
       10. The House bill references ``classroom instruction.''
       HR (see note 11)
       11. The Senate amendment references ``classroom-based 
     instructional assessments.''
       HR with amendment to strike ``screening . . . assessments'' 
     and insert ``screening, diagnostic, and classroom-based 
     instructional reading assessments.''

[[Page 25827]]

       LC make three terms uniform throughout Title I, part B.
       Insert ``learning systems,'' after ``effective,'' in (4).
       Insert ``including classroom-based materials to assist 
     teachers in implementing the essential components of reading 
     instruction,'' after ``instructional materials'' in (4).
       12. The Senate amendment includes ``family literacy 
     programs''.
       HR
       13. The House bill requires states to show progress after 
     the third year of funding, or risk losing future funding 
     under Reading First. The Senate amendment does not include 
     this provision.
       SR with an amendment to conform list of groups in 
     (B)(i)(II) to list of groups for accountability purposes 
     under Title I (A).
       14. The House bill reserves 1 percent for national 
     activities. The Senate amendment authorizes 1 percent ($9 
     million) funds for all national activities, including the 
     external evaluation and technical assistance. In addition the 
     House bill reserves $30 million or 3 percent, whichever is 
     less, for the external evaluation.
       HR with an amendment to cap Reservation from appropriations 
     for external evaluation at 2.5% or $25 million, which ever is 
     less.
       15. Identical provision.
       HR with an amendment to insert the following language as 
     new Senate (3):
       (3) beginning with 2004, shall reserve annually not more 
     than 10 percent or $90 million, whichever is less, from funds 
     appropriated for this part in excess of the amount 
     appropriated for FY 2003 to carry out 1207(d).''
       (Legislative language to be finalized after ratification).
       16. The House bill provides 80 percent of funds to States 
     via formula with the remainder for the Secretary to 
     distribute via competitive grants. The Senate amendment 
     provides 100 percent of funds to State via formula for the 
     first two years, after which 25 percent is for competitive 
     grants from the Secretary.
       HR with an amendment to strike (A) and (B).
       17. The House bill has a formula based on school age 
     population below the poverty line. The Senate amendment uses 
     a Title I formula.
       SR
       18. The House bill includes an allotment for Puerto Rico. 
     The Senate has no comparable provision.
       SR
       19. The Senate amendment has no similar provisions.
       SR with an amendment to insert special rule:
       ``Special Rule.--In allocating funds to school districts 
     which successfully compete for and win grants under Reading 
     first, state educational agencies would allocate, at a 
     minimum, to each district the same percentage such district 
     receives of Title I dollars as compared to the title I amount 
     received by all school districts. In awarding grants, SEA's 
     shall give priority to school districts with 15 percent or 
     greater poverty or 6,500 poor children.''
       (Legislative language to be finalized after ratification).
       LC--place appropriately.
       20. Identical provision.
       LC
       21. Identical provisions.
       HR
       22. Identical provisions.
       HR
       23. Identical provisions.
       HR
       24. Similar language with different headings.
       HR
       25. The House bill refers to eligible LEAs who have the 
     ``highest percentages''; The Senate amendment refers to ``a 
     high number'' of students.
       HR with an amendment to strike ``a high'' and insert ``the 
     highest'' before ``numbers or percentages'' in (4)(A).
       26. The House bill requires LEAs to have a ``significant 
     number'' of schools identified for school improvement and the 
     Senate amendment requires LEAs to have at least one school in 
     school improvement.''
       SR with an amendment to strike ``significant number'' and 
     insert ``significant number or percentage''.
       27. The House bill (ii) uses a definition based on the 
     ``greatest number or percentages'' based on school age 
     population below the poverty line, while the Senate amendment 
     (iii) uses the ``number of children counted under Title I''.
       HR with an amendment to strike ``a high'' and insert ``the 
     highest''.
       28. Similar provision.
       SR with an amendment striking last clause, ``as determined 
     . . . tools.''
       29. The House bill does not include (B).
       HR
       30. The House bill states LEAs ``may'' provide funds to 
     schools meeting (A) and (B) and the Senate amendment states 
     they ``shall'' provide funds to schools meeting (A), (B) or 
     (C).
       LC
       31. The House bill uses ``highest percentages of students'' 
     and the Senate amendment uses ``a high percentage of 
     students.''
       SR with an amendment to insert ``or numbers'' after 
     ``percentages''
       32. Identical provisions except for different references.
       LC
       33. The House bill uses the ``greatest numbers or 
     percentages of children from low income families'', and the 
     Senate amendment uses ``a high percentage of children counted 
     under Sec. 1124.''
       HR with an amendment to strike ``have a high percentage'' 
     and insert ``has the highest percentage or number''.
       34. The House bill allows for ``selecting and administering 
     assessments, and adds ``screening'', and ``tools'' to the 
     diagnostic assessments. The Senate amendment allows for 
     ``selecting, developing and administering assessments.''
       SR with an amendment to strike ``rigorous diagnostic 
     reading and screening assessment tools'' and insert 
     ``screening, diagnostic, and classroom-based instructional 
     reading assessments.''
       35. The House bill references ``classroom'' reading 
     instruction, the Senate amendment does not.
       SR with an amendment to insert ``learning system'' after 
     ``a'' and before ``program,'' and strike ``classroom''.
       Report Language:
       The Conferees intend State educational agencies and local 
     educational agencies to be able to select from a wide variety 
     of quality programs and interventions to fund under Reading 
     First and Early Reading First, including small group and one 
     to one tutoring, so long as those programs are based in 
     research meeting the criteria in the definition of 
     scientifically based reading research.
       36. The House bill refers to the ``essential components of 
     reading instruction''. The Senate amendment refers to ``major 
     components of reading instruction.''
       SR
       37. Identical provision.
       LC
       38. Identical provision.
       LC
       39. Identical provision.
       LC
       40. Identical provision.
       LC
       41. The House bill adds ``(ee) are deficient in their 
     phonemic awareness, phonics skills, vocabulary development, 
     oral reading fluency, or comprehension strategies; or''. The 
     Senate amendment has no similar provision.
       SR with an amendment to strike ``their . . . comprehension 
     strategies,'' insert ``the essential components of reading 
     instruction,''
       42. Identical provision.
       LC
       43. The Senate amendment refers to ``education technology 
     such as software and other digital curricula,'' The House 
     bill does not.
       HR
       44. The House bill refers to ``special education teachers'' 
     of grades K-12. The Senate amendment does not.
       SR
       45. The House bill uses ``essential'' the Senate amendment 
     uses ``major'' components.
       SR
       46. The House bill uses the term ``based''. The Senate 
     amendment uses the term ``grounded.''
       SR
       47. The House bill adds ``screening'' and ``tools'' to 
     classroom assessments.
       HR with an amendment to strike ``rigorous diagnostic 
     reading assessments'' and insert ``screening, diagnostic, and 
     classroom-based instructional reading assessments.''
       48. Identical provision.
       LC
       49. The Senate amendment has no similar provision.
       SR with an amendment to insert ``reading in'' before 
     ``accordance with''.
       50. The House bill refers to library services in (B)(ii).
       HR with an amendment to insert Prime Time Family Reading 
     Time.
       51. The House bill and the Senate amendment include 
     provisions related to providing training to volunteers. The 
     House bill includes parents and is optional. The Senate 
     amendment requires these activities.
       SR with an amendment to strike House (i) insert the 
     following language:
       ``An LEA may use funds to provide training to parents and 
     other individuals in the Essential Components of reading 
     instruction who volunteer to be reading tutors for students 
     to enable such volunteers to support instructional practices 
     that are based on scientifically-based reading research and 
     being used by the student's teacher.''
       Report Language:
       ``The Committee recognizes the value of research-based, 
     structured learning systems that incorporate community and 
     parental involvement in reading, targeted to low-performing 
     K-12 student populations, that are aligned to state standards 
     and create a high level of accountability. Recently 
     implemented programs, including the HOSTS Language Arts 
     program, in Texas, Ohio, Florida, Delaware, and Michigan have 
     impacted a critical mass of students, and assisted schools in 
     significantly improving student reading levels, raising 
     student achievement and test results, and overall school 
     performance.
       ``It has been proven that these programs significantly 
     reduce academic failure, promote school safety, and decrease 
     dropout, substance abuse, teen pregnancy, crime, and

[[Page 25828]]

     unemployment rates. Specifically, the Committee believes 
     these intensive, research-based learning systems that utilize 
     teacher oversight, dramatically increase student achievement 
     and implement the recommendations of the National Reading 
     Panel.''
       52. The House bill and Senate amendment include provisions 
     related to family literacy services and parental involvement. 
     The House bill provision is optional. The Senate bill 
     requires this activity.
       SR with an amendment to strike House (ii) and insert the 
     following language:
       ``An LEA may use funds to assist parents, through the use 
     of materials and reading programs, strategies and approaches, 
     including family literacy services, that are based on 
     scientifically-based reading research to encourage reading 
     and support their child's reading development.''
       53. The House bill contains no similar provision. The 
     Senate amendment makes collecting and summarizing data a use 
     of funds.
       HR (move to ``required list'').
       54. The House bill has no similar provision.
       HR with an amendment to conform list of groups in 
     (H)(ii)(I) to list of groups referenced in Section 1203 
     (b)(2)(B)(i)(II)--(See note 13).
       55. The House bill has 2 percent and the Senate amendment 
     has 5 percent.
       HR with an amendment to strike ``5'' and insert ``3.5''.
       56. The House bill allows not more than 15 percent for 
     professional development. The Senate amendment allows ``not 
     more than 20 percent for professional development; technical 
     assistance, planning, administration and reporting. [( c)(6)]
       HR
       [Note.--The following language coordinates with notes 56-
     75]
       ``(d) Other State Uses of Funds.--
       (1) In general.--A State educational agency that receives a 
     grant under this section may expend not more than a total of 
     20 percent of the grant funds to carry out the activities 
     described in paragraphs (3), (4), and (5).
       (2) Priority.--A State shall give priority to carrying out 
     the activities described in paragraphs (3), (4), and (5) for 
     schools described in subsection (c)(6).
       (3) Professional development.--A State may expend not less 
     than 65 percent of the amount of the funds made available 
     under paragraph (1) to develop and implement a program of 
     professional development for teachers, including special 
     education teachers, of grades kindergarten through 3 that--
       (A) will prepare these teachers in all the essential 
     components of reading instruction;
       (B) shall include--
       (i) information on instructional materials, programs, 
     strategies, and approaches based on scientifically-based 
     reading research, including early intervention and reading 
     remediation materials, programs, and approaches; and
       (ii) instruction in the use of rigorous diagnostic reading 
     and screening assessment tools and other procedures that 
     effectively identify students who may be at risk for reading 
     failure or who are having difficulty reading; and screening, 
     diagnostic, and classroom-based instructional reading 
     assessments; and
       (C) shall be provided by eligible professional development 
     providers.
       (4) Technical assistance for local educational agencies and 
     schools.--A State may expend not more than 25 percent of the 
     amount of the funds made available under paragraph (1) for 
     one or more of the following authorized State activities--
       (A) Assisting local educational agencies in accomplishing 
     the tasks required to design and implement a program under 
     this subpart, including--
       (i) selecting and implementing a program or programs of 
     classroom reading instruction based on scientifically based 
     reading research;
       (ii) selecting rigorous diagnostic reading and screening 
     assessment tools; and screening, diagnostic, and classroom-
     based instructional reading assessments; and
       (iii) identifying eligible professional development 
     providers to help prepare reading teachers to teach students 
     using the programs and assessments described in subparagraphs 
     (A) and (B).
       (B) Providing expanded opportunities to students in grades 
     kindergarten through 3 within eligible local educational 
     agencies for receiving reading assistance from alternative 
     providers that includes--
       (i) a rigorous diagnostic reading assessment; and 
     screening, diagnostic, and classroom-based instructional 
     reading assessments; and
       (ii) as need is indicated by such assessments, instruction 
     based on scientifically-based reading research that includes 
     the essential components of reading instruction.
       (5) Planning, administration, and reporting.--
       (A) In general.--A State may expend not more than 10 
     percent of the amount of funds made available under paragraph 
     (1) for the activities described in this paragraph.
       (B) Planning and administration.--A State that . . .
       (C) Annual reporting.--. . .

                           *   *   *   *   *

       (6) Funds not used for state-level activities.--Any portion 
     of the funds described in paragraph (1) that a State does not 
     expend to carry out the activities described in paragraphs 
     (3), (4), and (5) shall be expended for the purpose of making 
     subgrants in accordance with subsection (c).''
       57. The Senate amendment prioritizes eligible entities.
       HR--See note 56
       58. The House bill includes ``special education teachers.''
       HR with an amendment inserting ``special education 
     teachers'' after ``teachers''. See note 56
       59. The Senate amendment allows ``100 percent of the state 
     reservation to be used for professional development.
       HR--See note 56
       60. The House bill refers to the term ``essential'' 
     components; The Senate amendment refers to ``major'' 
     components.
       SR--See note 56
       61. Identical language
       HR with an amendment to strike ``grounded'' and insert 
     ``based''. See note 56
       62. The House bill includes ``screening assessment tools.''
       HR with the three terms (see note 11). See note 56
       63. Identical provision.
       LC--See note 56
       64. The House bill includes a section to strengthen and 
     enhance professional development courses in reading, and to 
     insure that such courses in reading instruction ensure that 
     the courses meet the highest standards, prepare a report on 
     the findings and make the information available to the 
     public.
       SR with an amendment to strike ``professional development'' 
     and insert ``pre-service education and training'' after 
     ``enhance'' in (ii). See note 56
       65. The House bill requires certain unused funds to be 
     allocated for reading grants. The Senate amendment has no 
     comparable provision.
       SR with an amendment to insert ``not used for State level 
     activities'' after ``funds'' and strike ``subparagraph (A)'' 
     and insert ``(d)(1)''. See note 56
       66. The Senate amendment allows for up to 25 percent of the 
     State reservation to be used for technical assistance. This 
     would equal 5 percent of the total state allotment. The House 
     bill allows for up to 3 percent of the state allotment to be 
     used for such purposes.
       HR with an amendment to insert:
       15 for PD
       3 for TA--Up to 5 for TA
       2 for admin
       (See note 56 for language (4))
       67. The House bill refers to the implementation of a 
     ``classroom reading program.'' The Senate amendment does not 
     refer to ``classroom instruction.''
       HR--See note 56
       68. The House bill uses ``based'' the Senate amendment uses 
     ``grounded.''
       SR with an amendment to strike ``classroom''. See note 56
       69. The House bill adds ``screening'' and ``tools'' to 
     diagnostic assessments.
       SR with an amendment to use three words (see note 11). See 
     note 56
       70. Identical provision.
       LC--See note 56
       71. Similar provision.
       HR--See note 56
       72. The House bill includes ``screening'' and ``tools.''.
       HR with amendment to strike ``rigorous . . . tools'' and 
     insert three terms (see notes 11 and 56).
       73. The House bill refers to ``essential'' components; the 
     Senate amendment refers to ``major'' components.
       SR--See note 56
       74. The Senate amendment allows for up to 25 percent of the 
     state reservation to be used for planning, administration and 
     reporting. The House bill allows for up to 2 percent for 
     similar activities.
       HR with an amendment (see note 56 for language (5)).
       75. The Senate amendment provides for ``collecting and 
     summarizing data to document the effectiveness of this 
     subpart and to stimulate improvement by identifying LEAs that 
     produce significant gains in reading achievement. The House 
     bill requires evaluation on a 'regular basis' to determine if 
     more children are reading at or above grade level.
       SR--See note 56
       76. The Senate amendment requires additional data. The 
     House bill does not.
       SR with an amendment to insert House language from Sec. 
     1203 (B)(i)(II).
       ``(ii) Information included.--The progress report shall 
     include information on the progress the State, and local 
     educational agencies within the State, are making in reducing 
     the number of students served under this subpart in the first 
     and second grades who are reading below grade level, as 
     demonstrated by such information as teacher reports and 
     school evaluations of mastery of the essential components of 
     reading instruction. The report shall also include evidence 
     from the State and its local educational agencies that they 
     have significantly increased the number of students reading 
     at grade level or above, significantly increased the 
     percentages of students in ethnic, racial, and low-income 
     populations who are reading

[[Page 25829]]

     at grade level or above, and successfully implemented this 
     subpart.''
       77. Identical provision.
       LC see note 76.
       78. The House bill and the Senate amendment require the 
     state to annually report on the implementation of this 
     program.
       SR with an amendment to conform list of groups in 
     (d)(C)(ii) to list of groups referenced in Section 1203 
     (b)(2)(B)(i)(II)--(See note 13).
       See note 76.
       79. The House bill refers to ``set forth'' the Senate 
     amendment refers to ``reported.''.
       HR
       80. Identical provision.
       HR
       81. The House bill has no comparable ``Prime Time Family 
     Reading Time (paragraph (6)).
       HR with an amendment to move to Note 50.
       Report Language:
       The conferees intend that funding for this activity be used 
     for a library humanities-based program consisting of reading, 
     discussion and storytelling that helps low-literacy families 
     bond around the act of reading and learning together and 
     fosters high academic expectations and achievement for 
     children and their parents.
       82. The Senate amendment does not have a comparable 
     ``Recommendations Section.''
       HR
       83. Identical provision.
       LC
       84. The House bill does not have any comparable provision.
       HR
       85. Identical provision.
       HR/LC
       86. Identical provision.
       HR/LC
       87. Identical provision.
       HR with an amendment to insert the following language: 
     ``including participation, if requested, of State and Local 
     Education Agencies in all national evaluations under this 
     subpart.'' after ``activities under this subpart'' in (1)(B).
       88. The House bill has no comparable provision.
       HR/SR with an amendment to insert the following language 
     (correlates to notes 88-94):
       ``2. A State plan containing a description of the 
     following:
       ``A. How the State will assist local educational agencies 
     in identifying rigorous diagnostic reading assessments.
       ``B. How the State will assist local educational agencies 
     in identifying instructional materials, programs, strategies, 
     and approaches, grounded on scientifically based reading 
     research, including early intervention and reading 
     remediation materials, programs and approaches.
       ``C. How the State educational agency will ensure that 
     professional development activities related to reading 
     instruction and provided under this subpart are--
       ``i. Coordinated with other Federal, State and local level 
     funds and used effectively to improve instructional practices 
     for reading; and
       ``ii. Based on scientifically based reading research.
       ``D. How the activities assisted under this subpart will 
     address the needs of teachers and other instructional staff 
     in implementing the essential components of reading 
     instruction.
       ``E. How subgrants made by the State educational agency 
     under this subpart will meet the requirements of this 
     subpart, including how the State educational agency will 
     ensure that local educational agencies receiving subgrants 
     under this subpart will use practices based on scientifically 
     based reading research.
       ``F. How the State educational agency will, to the extent 
     practicable, make grants to subgrantees in both rural and 
     urban areas.
       ``G. How the State educational agency will build on, and 
     promote coordination among literacy programs in the State 
     (including federally funded programs such as the Adult 
     Education and Family Literacy Act, the Individuals with 
     Disabilities Education Act, and Early Reading First), in 
     order to increase the effectiveness of the programs in 
     improving reading for adults and children and to avoid 
     duplication of the efforts of the program; and
       H. How the State will assess and evaluate, on a regular 
     basis, local educational agency activities assisted under 
     this subpart, with respect to whether they have been 
     effective in achieving the purposes of this subpart.
       ``I. Any other information that the Secretary may 
     reasonable require.''
       89. Identical provision.
       HR/SR with an amendment (see note 88).
       90. Similar provision.
       HR/SR with an amendment (see note 88).
       91. Identical provision.
       HR/SR with an amendment (see note 88).
       92. Similar provision.
       HR/SR with an amendment (see note 88).
       93. The Senate amendment has no comparable provision on 
     participation in the national external evaluation.
       HR/SR with an amendment (see note 88).
       94. The House bill has no comparable sections (C) through 
     (H).
       HR/SR with an amendment (see note 88).
       95. Identical provision.
       HR with an amendment to insert ``including an individual 
     who has expertise in student screening, diagnostic, and 
     classroom assessments of the essential components of reading 
     instruction,'' before ``based on scientifically based reading 
     research'' in (B).
       96. Similar provisions.
       SR
       97. The House bill refers to a special education teacher. 
     The Senate amendment does not.
       SR
       98. The House bill has no comparable provision.
       HR with an amendment to strike ``notwithstanding . . . 
     paragraph (1)'' and insert in its place, ``consistent with 
     the provisions of this part.''
       99. The House bill gives the Secretary the authority to 
     allot 20 percent for awarding 2 year competitive grants after 
     approval of the 5 year formula grant application of the 
     State. The Senate amendment, beginning in 2004, authorizes 
     the Secretary to reserve 25 percent of funds for competitive 
     grants.
       HR/SR with an amendment to:
       Strike House (a) and (b) and (b)(1) and (b)(2);
       Strike Senate (a) and (b)(1);
       Strike ``Competitive'' and insert ``Targeted Assistance'' 
     in Senate (2);
       Strike Senate (A) and (3);
       Keep Senate (B), and (5);
       Keep Senate (C) and strike ``screening ... assessments and 
     insert three terms;
       Keep Senate (4) and strike ``or (3)'';
       Conform (b)(2)(B) to list of groups for accountability 
     purposes under Title I (A).
       **Senate (B) on page 20--HR/LC**
       100. The House has the expert Peer Review Panel recommend 
     applicants to the Secretary for the awarding of discretionary 
     grants. The Senate amendment has no comparable provision.
       SR with an amendment to strike House (A) and (B) and insert 
     Senate (i) (ii) and strike ``or (3).'' in (ii).
       101. The House bill has no comparable provision.
       HR
       102. The Senate amendment has no comparable provision.
       HR
       103. Similar provision.
       LC
       104. Similar provision.
       SR
       105. The Senate amendment uses the ``adequate yearly 
     progress'' standard.
       SR with an amendment to reference criteria in 1223(B)(2).
       106. Similar provisions.
       HR/SR and delete.
       107. The House bill has no similar provision.
       SR
       108. Similar provision.
       SR/LC
       109. The House bill includes a definition of ``state.'' The 
     Senate amendment does not have definition in this subpart but 
     states that the General Provisions definitions apply.
       HR
       110. There is no comparable provision in the House bill.
       SR
       111. There are no comparable provisions in the House bill.
       SR
       112. Similar Provision.
       SR with an amendment to strike ``shall use only . . . this 
     subpart and'' in (b); Strike ``rigorous . . . tools'' in (6) 
     and insert ``screening, diagnostic, and classroom-based 
     instructional reading assessments.''
       113. The Senate amendment includes, at a minimum, the 
     evaluation of services, provided to children under this 
     subpart with respect to their referral and eligibility for 
     special education services under IDEA (based on their 
     difficulties in learning to read).
       HR/SR with an amendment to insert the following combined 
     and new language:
       ``Sec. 1207. National Activities.--From funds reserved 
     under section 1203(b)(1)(D) the Secretary--
       ``(a) may provide technical assistance in achieving the 
     purposes of this subpart to States, local educational 
     agencies, and schools requesting such assistance.
       ``(b) shall, at a minimum, evaluate the impact of services 
     provided to children under this subpart with respect to their 
     referral to and eligibility for special education services 
     under the Individuals with Disabilities Education Act (based 
     on their difficulties learning to read).
       ``(c) shall carry out the External Evaluation as described 
     in section 1206.
       ``(d) From funds reserved under Sec. 1203(b)(1)(E), shall 
     establish Competitive Targeted Assistance Grants--
       ``(1) to eligible high-need local educational agencies 
     which meet the criteria described in section 1203(c)(4) 
     within the State in which the LEA resides to carry out the 
     activities described in section 1203(c)(7)(A) and (B);
       ``(2) based on criteria which the Secretary shall develop 
     for the awarding of funds described under this subsection, 
     which shall at a minimum, shall include a process of peer 
     review as described under section 1204(c)(2), and be limited 
     to one year of funding per eligible high need LEA unless such 
     LEA can demonstrate significant progress in meeting

[[Page 25830]]

     the goals established in section 1205(d)(4)(C).''
       114. Identical provisions.
       LC
       115. Similar provisions.
       HR with an amendment to insert the following after (b). 
     Insert House (b)(1)(B); insert''
       ``(C) For the purpose of administering the funds reserved 
     under Sec. 1203(b)(E) to carry out this section, the 
     provisions of Sec. 242 of P.L. 105-220 shall apply.''
       116. The House bill specifies that ``special education 
     Teachers'' are included, the Senate amendment does not.
       SR
       117. The House bill refers to ``essential'' components; the 
     Senate amendment refers to ``major'' components.
       SR
       118. The House bill refers to ``explicit'' systematic 
     instruction; the Senate amendment does not.
       SR
       119. The House bill includes ``oral'' reading fluency and 
     the Senate amendment includes ``reading fluency.''
       HR with an amendment to insert ``including oral reading 
     skills'' after ``reading fluency,''.
       120. Identical provision.
       LC
       121. Identical provision.
       LC
       122. The House bill and Senate amendment are similar. The 
     House bill requires that assessments measure progress in four 
     areas, and the Senate bill requires that assessments measure 
     progress in at least one of four areas. The House bill, but 
     not the Senate amendment adds ``skills'' after phonics.
       HR/SR with an amendment to insert the following language:
       ``(5) Rigorous screening, diagnostic, classroom-based 
     reading assessments.--
       ``The term `screening reading assessment' means assessments 
     that are--
       ``(A) valid, reliable, and based on scientifically-based 
     reading research;
       ``(B) a brief procedure designed as a first step in 
     identifying children who may be at high risk for delayed 
     development or academic failure and in need of further 
     diagnosis of their need for special or additional reading 
     instruction.
       ``The term ``diagnostic reading assessment'' means 
     assessments that are--
       ``(A) valid, reliable, and based on scientifically-based 
     reading research;
       ``(B) used for the purpose of

       (i) identifying a child's specific areas of strengths and 
     weaknesses so that they have learned to read by the end of 
     the third grade; and
       (ii) determining any difficulties that a child may have in 
     learning to read and the potential cause of such 
     difficulties;

       ``(iii) helping to determine possible reading intervention 
     strategies, and related special needs.
       The term ``classroom-based instructional assessment'' 
     means--
       ``(A) evaluations of children's learning based on 
     systematic observations by teachers of children performing 
     academic tasks that are part of their daily classroom 
     experience; and
       ``(B) are used to improve instruction in reading, including 
     classroom instruction.''
       123. The Senate has no comparable provision.
       HR/SR with an amendment (See note 122).
       124. Identical provision.
       LC
       125. There are similar purposes in both the House bill and 
     the Senate amendment.
       LC
       Insert the following language for notes 125-134:
       ``Sec 1221. Purposes.
       ``The purposes of this subpart are as follows:
       ``(1) To support local efforts to enhance the early 
     language, literacy, and pre-reading development of preschool 
     age children, particularly those from low-income families, 
     through strategies and professional development that are 
     based on scientifically based research.
       ``(2) To provide preschool age children with cognitive 
     learning opportunities in high-quality language and 
     literature-rich environments, so that the children can attain 
     the fundamental knowledge and skills necessary for optimal 
     reading development in kindergarten and beyond.
       ``(3) To demonstrate language and literacy activities based 
     on scientifically based research that supports the age-
     appropriate development of--
       ``(A) Recognition, leading to automatic recognition, of 
     letters of the alphabet, knowledge of letter sounds, the 
     blending of sounds, and the use of increasingly complex 
     vocabulary;
       ``(B) an understanding that written language is composed of 
     phonemes and letters each representing one or more speech 
     sounds that in combination make up syllables, words and 
     sentences.
       ``(C) spoken language, including vocabulary and oral 
     comprehension abilities; and
       ``(D) knowledge of the purposes and conventions of print.
       ``(4) To use screening assessments to effectively identify 
     preschool children who may be at risk for reading failure.
       ``(5) To integrate such scientific reading research-based 
     instructional materials and literacy activities with existing 
     programs of preschools, child care agencies and programs, and 
     Head Start centers, and with family literacy services.''
       126. The House bill purposes limit development of pre-
     reading skills to children ages 3-5 and the Senate amendment 
     uses broader terminology of ``preschool age children.'' This 
     difference repeats throughout Early Reading first subpart.
       HR--See note 125
       127. The House bill purposes include assessment/screening 
     of children and the Senate amendment does not.
       HR--See note 125
       128. Similar provisions. The items in the Senate amendment 
     are re-ordered to compare with similar items in the House 
     bill.
       HR with an amendment to strike ``understanding . . . 
     language;'' and insert ``knowledge of letter sounds, blending 
     of sounds, and use of increasingly complex vocabulary;'' and 
     insert ``Recognition, leading to'' before ``automatic 
     recognition''.--See note 125
       129. Similar provision.
       HR/SR--See note 125
       130. Identical provision.
       HR with an amendment to insert ``including vocabulary'' 
     after ``spoken language''.--See note 125
       131. The House bill requires knowledge of ``semiotic 
     concepts''. The Senate amendment specifies knowledge of 
     ``purposes and conventions of print.''
       HR--See note 125
       132. The Senate amendment does not have this provision for 
     screening tools.
       SR with an amendment to insert ``reading'' after 
     ``scientific'' and strike ``tools'' and insert 
     ``assessments'' in (3).--See note 125
       133. Similar provision.
       SR--See note 125
       134. Identical provision.
       SR with an amendment to insert ``reading'' after 
     ``scientific''.--See note 125
       135. Similar provision.
       HR
       136. The Senate amendment allows multiple LEA's to apply as 
     a single applicant and the House bill does not.
       HR
       137. The House bill requires demographic information on 
     communities served by programs and the Senate amendment 
     requires demographic information on the children served by 
     programs.
       HR
       138. The House bill specifies oral language environments 
     and the Senate amendment does not.
       SR with an amendment to strike ``aged 3 through 5'' and 
     inserting ``preschool age'' before ``children'' in House (2). 
     take the Senate (2) inserting ``reading'' after 
     ``scientifically based''; drop both (3); take the House (4); 
     take the Senate (4); take House (5); drop Senate (5); drop 
     House (6), (8) (9); take House (7); take Senate (6); take 
     Senate (7) and (8); drop House (10).
       139. Similar provision.
       LC
       140. Similar provision.
       LC
       141. Similar provision.
       LC
       142. This provision is not in the House bill
       LC
       143. This provision is not in the Senate amendment.
       LC
       144. The Senate amendment (7) is similar to the House bill 
     (9) but the Senate amendment evaluates the success in 
     enhancing ``early language, literacy, and pre-reading 
     development'' and the House bill states ``early language and 
     reading development.''
       LC
       145. The House bill uses the same peer review panel 
     convened for the Reading First grants and the Senate 
     amendment has a separate peer review provision.
       SR with an amendment to insert after ``under section 
     1204(c)(2),'' the following language: ``except such panel 
     shall include, at a minimum, three individuals, selected from 
     the entities described in (ii), (iii), and (iv), who are 
     experts in early reading development and early childhood 
     development.''
       146. The House bill includes ``oral'' language skills.
       HR
       147. The Senate amendment requires 5 activities.
       HR with an amendment (notes 147-153): take Senate (B); take 
     Senate (iii) (amended like note 128); take Senate (i); take 
     Senate (iv).
       148. Similar provision.
       LC--see note 147
       149. The Senate amendment (B) is similar to the House bill 
     (B) but the Senate amendment describes professional 
     development being for ``staff'' and the House bill describes 
     professional development as being for ``teachers.''
       LC--see note 147
       150. Similar provision.
       HR--see note 147, (amended like note 128).
       151. The House bill notes in (ii) that ``words are made up 
     of small segments of speech sounds.''
       HR/SR with an amendment to insert the following language as 
     new (ii):
       ``Understanding that written language is composed of 
     phonemes and letters each representing one or more speech 
     sounds that in

[[Page 25831]]

     combination make up syllables, words and sentences.''
       152. Similar provision.
       HR--see note 147
       153. The Senate amendment refers to knowledge of ``purposes 
     and conventions of print.'' The House bill refers to 
     understanding of ``semiotic concepts.''
       HR--see note 147
       154. The Senate amendment refers to subparagraph (B ) in 
     the House bill which lists the skills to be taught to 
     children.
       HR
       155. Similar provision.
       HR
       156. Similar provision.
       HR with an amendment to insert the following language:

     ``SEC. 1243. FEDERAL ADMINISTRATION.

       ``The Secretary shall consult with the Secretary of Health 
     and Human Services in order to coordinate the activities 
     undertaken under this subpart with preschool age programs 
     administered by the Department of Health and Human 
     Services.''
       157. The House bill has no comparable section.
       HR with an amendment to insert Senate lead-in (``Each 
     eligible . . . a description of--'') and to strike Senate 
     (1), (3), and (2) and to insert House (1), (2), (3).
       158. The House bill requires information on staff 
     qualifications and the Senate amendment does not.
       SR
       159. The House bill has no similar provision.
       HR
       160. The House bill allows up to $1 million for evaluation.
       HR with an amendment to insert the following language:

     ``SEC. 1246. EVALUATION.

       ``From the total amount appropriated under section 
     1002(b)(3) for the period beginning October 1, 2002 and 
     ending September 30, 2006, the Secretary shall reserve not 
     more than $3,000,000 to conduct an independent evaluation of 
     the effectiveness of this subpart. An interim Report shall be 
     sent to the House Education and the Workforce Committee and 
     the Senate Health, Education, Labor, and Pensions Committee 
     by October 1, 2004, with a final Report due no later than 
     September 30, 2006. The Report shall include information on 
     how the grant recipients under this subpart are improving the 
     pre-reading skills of pre-school children; the effectiveness 
     of the professional development program; how early childhood 
     teachers are being prepared with scientifically based reading 
     research of early reading development; what activities and 
     instructional practices are most effective; how 
     scientifically research-based pre-reading instructional 
     materials and literacy activities are being integrated into 
     pre-schools, child care agencies and programs, and Head Start 
     Centers and Family Literacy programs, and any recommendations 
     on strengthening, or modifying this subpart.''
       161. The Senate amendment allows up to $5 million for 
     evaluation.
       LC--see note 160.
       162. The House bill has no comparable provision.
       HR
       163. The House bill makes technical changes to Even Start. 
     The Senate amendment does not.
       SR
       164. The House bill transfers the program to a different 
     Title, makes minor changes, and continues current law. The 
     Senate amendment rewrites the program.
       HR/SR with an agreement to move to Subpart 5 of Title V, 
     Part D (FIE).
       Report Language:
       In the 2000 rate case, the U.S. Postal Service levied an 
     18% increase on mail sent under Bound Printed Matter (BPM), 
     the class of mail under which books are sent to our nation's 
     schools, libraries, literacy, and early childhood programs. 
     This increase, the highest of any category, has had a direct 
     impact on the ability of several literacy and free book 
     programs to deliver their services. It has come to the 
     attention of the Conferees that the U.S. Postal Service 
     intends to again increase the rates charged for bound printed 
     matter, including books. Given the educational importance of 
     the 100 million books shipped to children annually under this 
     rate, the Conferees urge the U.S. Postal Service and Congress 
     to take action to ensure the continued affordability of books 
     for all of America's children.
       165. Virtually identical purpose.
       LC
       166. Virtually identical provisions.
       LC
       167. Virtually identical provisions for requirements of 
     contract.
       LC
       168. Virtually identical provisions.
       LC
       169. Identical provisions.
       LC
       170. Identical provisions.
       LC
       171. Virtually identical provisions.
       LC
       172. The Senate amendment contains no similar provision.
       SR
       173. The House bill authorizes such sums as may be 
     necessary for fiscal year 2002 and each of the 4 succeeding 
     fiscal years. The Senate amendment authorizes $25 million for 
     FY 02 and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       HR/SR (no authorization because moved to FIE).

            Title I, Part C--Education of Migratory Children

       1. The Senate amendment, but not the House bill, amends the 
     program purpose by adding two paragraphs that state that: (1) 
     Migrant students should not be penalized because of 
     differences between states in curriculum, graduation 
     requirements and standards; and (2) Migrant students have the 
     same opportunities as all children to meet academic 
     achievement and content standards.
       HR
       2. The House bill, but not the Senate amendment, modifies 
     the formula for distributing funds to the States by basing a 
     State's child count on the number of eligible children, aged 
     3 through 21, residing in the State during the previous year, 
     plus the number of children who received services in summer 
     or intersession programs provided by the State. Only funding 
     above the amount appropriated for fiscal year 2002 will be 
     distributed via the new formula.
       SR with an amendment to require the Secretary to take into 
     account the amount of time children spend in a particular 
     program.
       ``In changing the formula which allocates funds to the 
     States for migrant education programs, the Conferees are 
     concerned that some children could be double counted, thereby 
     inaccurately inflating allocations to some States. To address 
     this situation, the Conferees have amended section 1303 (e) 
     to require the Secretary to develop a procedure to take into 
     account the amount of time a child may spend in a particular 
     program. The Conferees strongly encourage the Secretary to 
     develop such a procedure and utilize it when making 
     allocations to the States.''
       3. The House bill, but not the Senate amendment, sets and 
     annually increases the minimum allocation amounts for Puerto 
     Rico.
       SR with an amendment to retain subsection (d).
       4. The House bill and the Senate amendment eliminate the 
     reference to a comprehensive plan and replace it with 
     language to ensure migrant children are provided with the 
     full range of services from all applicable government 
     programs and that coordination will take place between the 
     various levels of government programs, including the federal 
     ESEA Title III program.
       SR
       5. The House bill, but not the Senate amendment, requires 
     the integration of services under the Migrant education 
     program with other programs, and adds a requirement for 
     measurable program goals and outcomes.
       SR
       6. The House bill, but not the Senate amendment, modifies 
     the manner in which subgrants to LEAs must be allocated.
       SR
       7. The House bill and the Senate amendment changes to the 
     Assurances subsection of current law are the same with 
     exceptions indicated in notes 8 and 9.
       LC
       8. The Senate amendment does not have this provision, which 
     is technical.
       SR
       9. The House bill does not have this provision.
       HR
       10. The House bill, but not the Senate amendment, 
     eliminates the requirement that States develop both a 
     comprehensive service delivery plan and a program 
     application.
       HR
       11. The Senate amendment, but not the House bill, places 
     conditions on whether States may submit consolidated 
     applications.
       HR
       12. The House bill does not have the Senate provision 
     regarding special education needs of migrant students.
       HR
       13. The House bill, but not the Senate amendment, changes 
     current law to clarify State flexibility in determining the 
     activities to be provided as long as funds are first used to 
     meet the identified educational needs of migrant children.
       SR with an amendment to add ``where applicable'' in (a) (1) 
     in first sentence after ``agency''.
       14. The House bill, but not the Senate amendment, requires 
     the Secretary of Education to assist States in developing 
     effective methods to transfer student records and in 
     determining the number of migrant children in each State. 
     Under the House bill, the Secretary is also required to work 
     with States to determine the minimum data elements for 
     records to be maintained and transferred and to assist States 
     in linking their records systems for electronic maintenance 
     and transfer.
       HR/SR with an amendment to Sec. 124. Coordination of 
     Migrant Education Activities:
       ``(a) Duration.--Section 1308 (a) (2) [20 U.S.C. 6398 (a) 
     (2)] is amended by striking ``subpart'' and inserting 
     ``subsection''.
       ``(b) Student Records.--Section 1308 (b) (20 U.S.C. 6398 
     (b)) is amended to read as follows:

[[Page 25832]]

       `` `(b) Student Records.--
       `` `(1) Assistance.--The Secretary shall assist States in 
     developing effective methods for the electronic transfer of 
     student records and in determining the number of migratory 
     children in each State.' ''
       15. The Senate amendment, but not the House bill, requires 
     the Secretary to establish a system for electronically 
     transferring student records and lists possible data 
     elements.
       HR/SR with an amendment:
       ``(2) Information system.--(A) The Secretary, in 
     consultation with the States, shall ensure the linkage of 
     migrant student record systems for the purpose of 
     electronically exchanging, among the States, health and 
     educational information regarding all migrant students. The 
     Secretary shall ensure such linkage in a cost-effective 
     manner, utilizing systems used by the States prior to, or 
     developed after, the date of enactment of [this Act], and 
     shall determine the minimum data elements that each State 
     receiving funds under this part shall collect and maintain. 
     Such elements may include-
       ``(i) immunization records and other health information;
       ``(ii) elementary and secondary academic history (including 
     partial credit), credit accrual, and results from State 
     assessments required under this title;
       ``(iii) other academic information essential to ensuring 
     that migrant children achieve to high standards; and
       ``(iv) eligibility for services under the Individuals with 
     Disabilities Education Act.
     Ensuring the timely exchange of important education and 
     health information for migrant students is critically 
     important. Although some States have developed and 
     implemented their own student records systems, current 
     failures and interruptions in records transfer result in 
     delays in school enrollment and academic services for migrant 
     students, discrepancies in student placement, and repeat 
     immunizations of migrant children. It is the Conferees' 
     intent to link existing systems of interstate migrant records 
     transfer, and expand their function to enable the electronic 
     transfer of records among all States. Section 1308(b)(2) 
     provides federal leadership to accomplish this objective by 
     requiring the Secretary to electronically link migrant 
     student records. Such linkage will build upon existing and 
     future systems for records transfer and will facilitate a 
     timely exchange of health and academic information.''
       16. The House bill, but not the Senate amendment, requires 
     SEAs and LEAs to make migrant student records available at no 
     cost to another SEA or LEA requesting such records.
       SR
       17. The House bill does not contain the Senate provisions 
     in subparagraphs (B), (C), (D) regarding the solicitation of 
     comments on the migrant student record transfer system, 
     deadline for operation of the system, and the reservation of 
     funds for the Secretary in establishing the system.
       HR/SR with an amendment:
       ``(B) The Secretary shall publish, after consultation 
     described in subparagraph (A), a notice in the Federal 
     Register seeking public comment on the proposed data elements 
     that each State receiving funds under this part shall be 
     required to collect for purposes of electronic transfer of 
     migrant student information, and the requirements that States 
     must meet for immediate electronic access to such 
     information. The publishing of such notice shall take place 
     not later than 120 days after the date of enactment of [this 
     Act].''
       18. The House bill does not contain the Senate amendment 
     provision requiring a report be submitted to Congress by the 
     Secretary regarding the findings and recommendations 
     pertaining to the migrant student record transfer system.
       HR with an amendment:
       ``(4) Report to Congress.--Not later than April 30, 2003, 
     the Secretary shall report to the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Education and the Workforce of the House of 
     Representatives the Secretary's finding and the 
     recommendations regarding the maintenance and transfer of 
     health and educational information for migrant students by 
     the States, and shall include in this report--
       ``(A) a review of the progress of States in developing and 
     linking electronic records transfer systems;
     ``(B) recommendations for the developments and linkage of 
     such systems; and
       ``(C) recommendations for measures that may be taken to 
     ensure the continuity of services provided for migrant 
     students.''
       19. The Senate amendment language in this subparagraph is 
     similar to the House bill language in subsection (b)(1) 
     regarding assistance to States in transferring records and 
     determining the number of migrant students. (See note 13.) 
     However, the Senate amendment retains the current law 
     provisions regarding the Secretary's need to help States 
     develop methods to count full-time equivalent students, which 
     the House bill does not.
       HR/SR with an amendment:
       Section 1308(b) (20 U.S.C. 6398(b)) is amended as follows:
       ``(b) Student Records.--
       (1) Assistance.--The Secretary shall assist States in 
     developing effective methods for the electronic transfer of 
     student records and in determining the number of migratory 
     children in each State.''
       20. The House bill and the Senate amendment are the same.
       LC
       21. The House bill and the Senate amendment are the same 
     regarding the maximum amount the Secretary may award to SEAs 
     for incentive grants. The House bill, but not the Senate 
     amendment, references consortium arrangements with other 
     States or appropriate entities that the Secretary determines 
     will improve the delivery of services to migratory children.
       SR
       22. The Senate amendment, but not the House bill, requires 
     NCES to collect data on migratory children.
       HR
       Authorization levels: House at $420 million and Senate at 
     $400 million-
       SR with an amendment to strike ``$420 million'' and insert 
     ``$410 million.''

             Title I, Part D--Neglected or Delinquent Youth

       1. The House bill and Senate amendment have different 
     headings.
       HR
       2. The House bill, but not the Senate amendment, contains 
     two findings regarding youth returning from correctional 
     facilities and pregnant and parenting teenagers.
       HR
       3. The Senate amendment, but not the House bill, moves the 
     PURPOSE AND PROGRAM AUTHORIZED section under Subpart 1 of the 
     Senate amendment.
       HR with an amendment to strike ``of Dropping out'' in the 
     title of Subpart 1, so that it states: ``Prevention and 
     Intervention Programs for Children and Youth Who are 
     Neglected, Delinquent, or at Risk.''
       LC should conform language throughout this part to ensure 
     that it conforms with neglected, delinquent or at risk kids--
     while striking reference to ``drop-outs'' unless indicated 
     otherwise.
       4. The Senate amendment, but not the House bill, makes 
     minor wording changes to the Purpose and Program Authorized 
     section.
       HR/LC
       5. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes, related to the 
     organizational structure of the Senate amendment.
       HR
       6. The Senate amendment, but not the House bill, organizes 
     this part into 3 chapters of subpart 1. Also, the Senate 
     amendment, but not the House bill, makes minor conforming, 
     technical wording changes, related to the organizational 
     structure of the Senate amendment.
       HR
       7. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes, related to the 
     organizational structure of the Senate amendment.
       HR
       8. The House bill and Senate amendment provisions in 
     subsection (b) regarding Subgrants to State Agencies in 
     Puerto Rico are the same.
       SR
       9. The House bill, but not the Senate amendment, sets the 
     minimum allocation amounts Puerto Rico will receive.
       SR
       10. The House bill, but not the Senate amendment, provides 
     for a minimum amount that shall be appropriated to Puerto 
     Rico contingent upon all 50 States and the District of 
     Columbia receiving the same amount as they did the previous 
     year. If not, then Puerto Rico would receive funds based on 
     the greater percentage provided for in paragraph (1)(A) or 
     the percentage of the previous fiscal year.
       SR
       11. The Senate amendment, but not the House bill, contains 
     this provision regarding ratable reductions.
       HR
       12. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes, related to the 
     organizational structure of the Senate amendment.
       HR
       13. The House bill, but not the Senate amendment, changes 
     the wording of paragraph (1) by revising the language to 
     focus on the provision of services to youth returning from 
     correctional institutions instead of youth at risk of 
     dropping out. In addition, the reference to another section 
     in both the House bill (8306) and the Senate amendment (5506) 
     are to the same general policy regarding Other General 
     Assurances (see Title VIII of the House bill).
       SR with an amendment to include ``at risk'' after 
     ``delinquent''.
       14. The House bill, but not the Senate amendment, adds the 
     word ``technical'' after ``vocational''.
       SR
       LC conform language regarding ``opportunity to learn'' 
     change to ``opportunity to achieve'' in House (2) (B).
       15. The House bill refers to evaluations associated with 
     Institution-Wide Projects (Section 1416), while the Senate 
     amendment refers to general program evaluations under section 
     1431.

[[Page 25833]]

       HR
       16. The House bill and Senate amendment provisions in 
     paragraph (3) and in subsection (b) following are the same, 
     with the exception indicated in note 17.
       LC
       17. The House bill heading for paragraph (1) is different 
     than the Senate amendment heading for paragraph (1); 
     otherwise, see note 16.
       SR
       18. Both the House bill and the Senate amendment reference 
     the State Plan under Title I, part A.
       LC
       19. The House amendment refers to the specific section in 
     Title VIII of the House bill regarding evaluations, while the 
     Senate amendment refers to evaluations generally.
       LC
       20. The reference to another section in both the House bill 
     (8501) and the Senate amendment (4) are to the same general 
     policy regarding fiscal effort (see Title VIII of the House 
     bill).
       LC
       21. The House bill refers to job training programs in 
     general, while the Senate amendment refers specifically to 
     the Workforce Investment Act of 1998. In addition, the House 
     bill, but not the Senate amendment, adds the word 
     ``technical'' after ``vocational''.
       HR with an amendment to replace ``Workforce Investment Act 
     of 1998'' with ``PL 105-220''.
       SR on House bill adding ``technical'' after ``vocational''.
       22. The House bill, but not the Senate amendment, contains 
     this additional element for State applications to focus on 
     the provision of services to youth returning from 
     correctional institutions.
       SR
       23. The Senate amendment, but not the House bill, adds the 
     word ``children'' before ``youth''.
       HR
       LC conform part with same change.
       24. The House bill, but not the Senate amendment, adds the 
     word ``incarceration'' in place of the word ``youth'' after 
     ``term of''.
       LC
       25. The Senate amendment, but not the House bill, adds the 
     word ``children'' before ``youth''. The House bill, but not 
     the Senate amendment, adds the words ``distance learning'' 
     before ``and assistance''.
       LC on Senate amendment adding ``children'' before 
     ``youth''; SR on House bill adding ``distance learning''.
       26. The House bill, but not the Senate amendment, adds the 
     words ``vocational and technical training'' to subparagraph 
     (B).
       SR
       27. The House bill, but not the Senate amendment, strikes 
     clause (iii).
       HR with amendment to change language in (iii) to strike 
     ``learn to such'' and replace with ``achieve''.
       LC for similar references in remainder of this part.
       28. The House amendment refers to the specific section in 
     Title VIII of the House bill regarding evaluations, while the 
     Senate amendment refers to evaluations generally.
       SR
       29. The Senate amendment, but not the House bill, contains 
     this provision regarding the supplement, not supplant 
     provision in section 1120A of Title I, part A.
       HR
       30. The Senate amendment, but not the House bill, contains 
     this section on Institution-Wide Projects.
       HR
       31. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes related to the 
     organizational structure of the Senate amendment.
       HR
       32. The House bill, but not the Senate amendment, changes 
     the reservation percentage for SEAs to 15 percent. The Senate 
     amendment, as amended, but not the House bill allows for a 
     reservation percentage range between 5 and 30 percent, as 
     well as adds two new paragraphs pertaining to the kinds of 
     transition services that may be supported.
       HR with an amendment that reservation percentage be 15-30%.
       HR with an amendment to strike (C) (iii) and (C) (v) and 
     add new clause (C)(v):
       ``Counseling services.''--The Conferees recognize that LEAs 
     may find that counseling programs, including the provision of 
     mental health services, are a necessary and appropriate 
     component of ensuring the successful transition of youth 
     returning from correctional facilities.''
       33. The Senate amendment, but not the House bill, adds the 
     word ``youth'' after ``children''.
       LC/HR
       34. The Senate amendment, but not the House bill, adds a 
     new section allowing the Secretary of Education to reserve up 
     to 5 percent of part D funds each year for national 
     activities involving evaluation, technical assistance and 
     model programs.
       H.R. with 3 amendments: change ``shall'' to ``may'', change 
     5% to 2.5%, strike paragraph 3.
       35. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes related to the 
     organizational structure of the Senate amendment.
       LC
       36. The House bill, but not the Senate amendment, reorders 
     this paragraph to focus on the provision of services to youth 
     returning from correctional institutions.
       SR with an amendment to strike ``dropping out of school'' 
     in House paragraph (3).
       37. Both the House bill and the Senate amendment strike the 
     word ``retained'', which is a technical change.
       LC
       38. The House bill, but not the Senate amendment, revises 
     subsection (b) to focus on the provision of services to youth 
     returning from correctional institutions instead of youth at 
     risk of dropping out.
       SR
       39. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes related to the 
     organizational structure of the Senate amendment.
       HR/LC
       40. The House bill, but not the Senate amendment, adds 
     subsection (d), Transitional and Academic Services, with 
     language to focus on the provision of services to youth 
     returning from correctional institutions and by stipulating 
     that services to youth at risk of dropping out shall not 
     negatively impact the transitional and academic needs of 
     youth returning from correctional facilities.
       SR
       41. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes related to the 
     organizational structure of the Senate amendment.
       LC
       42. The House bill, but not the Senate amendment, revises 
     paragraphs (4), (5) and (6) following to focus on the 
     provision of services to youth returning from correctional 
     institutions instead of youth at risk of dropping out and 
     removes the conditional statement ``as appropriate'' 
     preceding each LEA application requirement. See notes 43 and 
     44 for exceptions.
       SR with an amendment to add to (4) ``as appropriate'' 
     between ``and'' and ``the''.
       43. The House bill, but not the Senate amendment, requires 
     specific characteristics of the youth to be served to be 
     described, as well as adding a secondary requirement to 
     describe other youth expected to be served. Otherwise, see 
     note 43.
       SR
       44. The House bill, but not the Senate amendment, adds the 
     word ``other'' to the list of existing services LEAs will 
     describe how to coordinate. Otherwise, see note 42.
       SR
       45. The House bill, but not the Senate amendment, adds 
     ``curriculum-based entrepreneurship education''.
       SR
       46. The House bill and Senate amendment have the same 
     meaning in paragraph (8), but are worded slightly different.
       LC
       47. The House bill refers to job training programs in 
     general, while the Senate amendment refers specifically to 
     the Workforce Investment Act of 1998. In addition, the House 
     bill, but not the Senate amendment, adds the word 
     ``technical'' after ``vocational''.
       HR with an amendment to replace ``Workforce Investment Act 
     of 1998'' with ``PL 105-220''.
       SR on House bill adding ``technical'' after ``vocational''.
       48. The House bill and the Senate amendment are the same as 
     current law in paragraphs (10)-(13).
       LC
       49. The House bill, but not the Senate amendment, contains 
     a provision regarding LEA uses of funds to focus on the 
     provision of services to youth returning from correctional 
     institutions.
       SR
       50. The House bill, but not the Senate amendment, has no 
     reference to youth ``at educational risk'' and has no 
     reference to specific groups of youth who may be at risk of 
     dropping out.
       HR
       51. The House bill, but not the Senate amendment, adds the 
     word ``other'' to the list of existing services LEAs can use 
     funds to coordinate. The Senate amendment, but not the House 
     bill, refers to ``drug and alcohol counseling''.
       HR with an amendment to add ``and mental health services'' 
     after ``counseling''.
       52. The House bill, but not the Senate amendment, adds the 
     word ``technical'' after ``vocational'' and adds 
     ``curriculum-based entrepreneurship education''.
       SR
       53. The House bill, but not the Senate amendment, adds 
     another paragraph regarding mentoring and peer mediation to 
     the LEA uses of funds.
       SR
       54. The House bill and Senate amendment headings for this 
     section are different.
       HR
       55. The House bill and Senate amendment have different 
     internal organization structures which accounts for this and 
     the immediately following technical changes.
       LC
       56. The House bill, but not the Senate amendment, changes 
     ``where feasible'' to ``to the extent practicable'' in all 
     the following

[[Page 25834]]

     paragraphs, through paragraph (8) in which the former phrase 
     appears.
       HR
       57. The House bill, but not the Senate amendment, makes a 
     number of changes to this paragraph. See notes 52 and 55.
       HR with an amendment to replace ``Workforce Investment Act 
     of 1998'' with ``PL 105-220''.
       58. The House bill, but not the Senate amendment, adds a 
     citation to the U.S. Code for the Act referenced.
       LC
       59. See note 45.
       SR
       60. The Senate amendment, but not the House bill, makes 
     minor conforming, technical wording changes, related to the 
     organizational structure of the Senate amendment.
       LC
       61. The House bill, but not the Senate amendment, changes 
     the reference to ``sex'' to ``gender'' and eliminates the 
     conditional statement ``if feasible''. Otherwise, the House 
     bill and the Senate amendment are the same in paragraphs (1)-
     (4) and in subsections (b) and (c) that follow. See exception 
     in note 62.
       SR with an amendment to reference Title I-A exceptions for 
     ``statistically significant and personally identifiable'' 
     data.
       62. The Senate amendment, but not the House bill, adds a 
     new paragraph to the evaluation of program's impact on 
     participants.
       HR with an amendment to add ``as appropriate'' before 
     participate.
       63. The Senate amendment, but not the House bill, adds 
     paragraph headings before each term is defined in paragraphs 
     (1)-(4).
       HR
       64. The Senate amendment, but not the House bill, 
     reorganizes this paragraph. Neither the Senate amendment nor 
     the House bill changes the meaning of this definition.
       LC
       Authorization levels--LC (identical authorization amounts 
     of $50 million in FY 02 and such sums in FY 03-07).

            Title I, Part E--Evaluations and Demonstrations

       1. The House bill amends section 1501, while the Senate 
     amendment strikes the entire section and replaces it.
       LC
       2. The Senate amendment, but not the House bill, includes 
     the words ``of Title I'' after ``National Assessment''.
       HR
       3. The House bill requires the Secretary of Education to 
     assess the programs assisted under Title I, while the Senate 
     amendment requires the Secretary to assess the impact of 
     policies of Title I on States, LEAs, schools and students.
       HR with an amendment to insert ``the programs assisted 
     and'' before ``the impact of the policies'' and strike 
     ``title I of...Teachers Act'' and insert ``this title'' in 
     (a).
       4. The Senate amendment requires the participation of an 
     independent review panel composed of the groups listed at all 
     stages of the assessment. The House bill also requires the 
     participation of an ``independent'' review panel, but 
     stipulates a number of conditions that must be met in regards 
     to the review panel, which the Senate does not, in subsection 
     (d) of the House bill. See note 49.
       SR
       5. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       HR
       6. The House bill, but not the Senate amendment, contains a 
     general requirement to examine the implementation and impact 
     of Title I programs in regards to increasing academic 
     achievement, especially in high-poverty schools. See the next 
     note.
       SR with an amendment to insert as new (A): ``the 
     implementation of programs assisted under this title and the 
     impact of such implementation on increasing student academic 
     achievement particularly in schools with high concentrations 
     of children living in poverty, toward the goal of all 
     students reaching the proficient level on challenging State 
     academic content and achievement standards and State academic 
     assessments under section 1111, including providing 
     information on what types of programs and services that have 
     demonstrated the greatest likelihood of helping students 
     reach the State's academic achievement standards for 
     proficient and advanced;''
       7. The Senate amendment, but not the House bill, contains a 
     specific requirement to examine student progress to 
     proficiency in at least reading and math based on State 
     standards and assessments required under section 1111 of 
     Title I (including NAEP).
       SR
       8. The House bill does not contain a similar provision.
       SR
       9. The House bill contains a general requirement to examine 
     the implementation and impact of State standards, assessments 
     and accountability systems. The Senate amendment is more 
     specific as to what must be examined in regards to 
     assessments and calls for examination of implementation of 
     requirements for development and administration of 3-8 annual 
     assessments and how well they meet Title I requirements (see 
     next note), but does not reference standards as the House 
     does.
       HR/SR with an amendment to insert as new language: ``the 
     implementation of State standards, assessments, and 
     accountability systems developed under this title, including 
     the time and cost required for the development of assessments 
     for students in grades 3-8 and how well they meet the 
     requirements for assessments described in this title, and the 
     impact of such standards, assessments, and accountability 
     systems on educational programs and instruction at the local 
     level.''
       10. The Senate amendment requires a specific examination of 
     the ``adequate yearly progress'' requirement in Title I, part 
     A. The House does not contain a similar provision, although 
     it does require an examination of accountability in general 
     in subparagraph (a)(2)(B). See previous note.
       HR with an amendment: ``defined adequate yearly progress 
     and what has been the impact of applying this standard to 
     schools, local educational agencies, and the state, including 
     the number of schools and local educational agencies not 
     meeting the standard and the changes in such 
     identification.''
       11. The House bill and the Senate amendment require an 
     examination of schoolwide programs and targeted assistance, 
     but the Senate amendment has a similar requirement in 
     subparagraph (a)(2)(G) of the Senate amendment. See note 22.
       SR with an amendment: ``the implementation and impact of 
     schoolwide programs and targeted assistance programs under 
     this title on improving student academic achievement and to 
     what extent such schools meet the requirements for such 
     programs.''
       12. The House bill does not contain a similar provision, 
     although to the extent report cards are considered an element 
     of accountability, see note 9 and paragraph (a)(B) of the 
     House bill.
       HR with an amendment to insert ``parents,'' after 
     ``students''.
       13. The House bill and the Senate amendment require an 
     examination of comprehensive school reform, although the 
     House is more specific as to models, implementation and 
     impact, while the Senate is more general as to effectiveness, 
     but the Senate provision regarding this requirement is in 
     paragraph (b)(2) of the Senate amendment. See note 35.
       SR with an amendment to insert ``and implemented'' after 
     ``are funded'' in (D).
       14. The Senate amendment does not contain a similar 
     provision.
       SR
       15. The House bill and the Senate amendment require an 
     examination of school choice as defined in section 1116 of 
     Title I, part A of each piece of legislation, although the 
     Senate provision is in clause (a)(2)(F)(iii). See note 19. 
     The House bill, but not the Senate amendment, requires an 
     examination of the schools from which students have 
     transferred.
       HR
       16. The House bill and the Senate amendment require an 
     examination of action required pursuant to section 1116 of 
     Title I, part A of each piece of legislation. However, the 
     House bill requirement is more general as to impact and 
     implementation, while the Senate amendment is more specific 
     as detailed in clauses (a)(2)(F)(i)-(v) following the Senate 
     amendment. See notes 17-21.
       SR with an amendment to strike ``employed'' and insert 
     ``implemented''.
       17. The House bill does not contain a similar provision.
       HR
       18. The House bill does not contain a similar provision. 
     However, the House bill does refer to support provided by the 
     SEA and LEA generally, in subparagraphs (a)(2)(H) and 
     (a)(2)(K). See notes 26 and 29.
       HR
       19. The Senate amendment requires a specific examination of 
     public school choice, as defined in section 1116 of Title I, 
     part A, regarding number of parents taking the option, costs 
     associated with the option, and the impact on student 
     achievement. The House bill also requires an examination of 
     public school choice as defined in section 1116 of Title I, 
     part A, but is more general. See note 15.
       HR with an amendment to insert as new (iii): ``the number 
     of parents who take advantage of the public school choice 
     provisions of this title, the costs, including transportation 
     costs, associated with implementing these provisions, and the 
     implementation and impact of these provisions, including the 
     impact of attending another school, on student achievement;''
       20. The House bill does not contain a similar provision.
       HR
       21. The House bill does not contain a similar provision 
     specific to examining the actions taken regarding 
     reconstitution, as defined in section 1116 of Title I, part 
     A, of the Senate amendment. Also, see note 16.
       HR with an amendment to strike ``kinds'' and insert 
     ``implementation and impact'' before ``actions that are 
     taken'' and strike ``reconstitution'' and insert ``corrective 
     action and restructuring.'' in (v).
       22. See note 11. In addition, the Senate amendment requires 
     an examination of professional development in this 
     subparagraph, while the House requires a similar examination 
     of professional development in subparagraph (a)(2)(J). Also, 
     see note 28.
       SR
       23. The House bill does not contain a similar provision.

[[Page 25835]]

       HR
       24. The House bill does not contain a similar provision.
       HR with an amendment to insert ``implemented the provisions 
     of section 1118 and'' before ``afforded parents'' and strike 
     ``at school and at home;'' in (I).
       25. The House bill does not contain a similar provision, 
     although to the extent school improvement reservation can be 
     generally considered assistance available under this title 
     and is targeted to schools with the most need, see 
     subparagraph (a)(2)(K) of the House bill and note 29.
       SR
       26. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       HR with an amendment to strike the language in Senate (K) 
     and insert the following language: ``used federal, State, and 
     local educational agency funds and resources to support 
     schools and provide technical assistance to improve the 
     achievement of students in low-performing schools, and the 
     impact of such assistance on such achievement; and''
       27. The Senate amendment does not contain a similar 
     provision regarding accounting requirements limiting 
     schoolwide programs, although the Senate amendment does 
     require an examination of schoolwide programs in subparagraph 
     (a)(2)(G) of the Senate amendment. See note 11.
       SR with an amendment to strike ``limit'' and insert 
     ``effect, if at all'' in (I).
       28. See note 22 regarding the professional development 
     requirement in the Senate amendment.
       SR with an amendment to strike the language in (J) and 
     insert the following language: ``the implementation and 
     impact of the professional development activities assisted 
     under this title and title II on instruction and student 
     academic achievement and on teacher qualifications;''
       29. The Senate amendment does not contain a similar 
     provision, however, see note 25.
       SR with an amendment to insert the following language: 
     ``the extent to which the assistance made available under 
     this title, including funds under section 1003, is targeted 
     to disadvantaged students, schools, and local educational 
     agencies with the greatest need.''
       30. The Senate amendment does not contain a similar 
     provision.
       SR
       31. The Senate amendment does not contain a similar 
     provision.
       SR
       32. The House bill does not contain a similar provision.
       HR with an amendment to strike ``fully'' and insert 
     ``highly'' and to strike ``in four years.'' and insert ``not 
     later than the end of 2005-2006 school year.''
       33. The Senate amendment and the House bill require the 
     national assessment authorized under this section to examine 
     how the programs under Title I have improved student 
     achievement, although the House provision is located in 
     subparagraph (a)(2)(A).
       SR
       34. The House bill does not contain a similar provision, 
     however, see notes 6 and 7.
       SR
       35. See note 13.
       SR
       36. The House bill and the Senate amendment require the 
     national assessment authorized under this section to be 
     longitudinal. However, the Senate amendment includes the 
     conditional statement ``to the extent possible'' and seeks to 
     track students. The House bill requires a longitudinal study 
     of schools, not students, is not conditional, and stipulates 
     a number of requirements which the Senate amendment does not. 
     In addition, the House bill provision regarding this 
     longitudinal study is located in subsection (c) of the House 
     bill.
       SR
       37. The House bill does not contain a similar provision.
       HR with an amendment to strike ``to the extent possible'' 
     and insert ``academic'' before ``achievement'';
       LC--make last subparagraph of list.
       38. The House bill does not contain a similar provision.
       HR with an amendment to strike ``performance'' and insert 
     ``academic achievement''.
       39. The Senate amendment does not contain a similar 
     provision.
       SR
       40. The Senate amendment does not contain a similar 
     provision as
       The House bill in paragraph (a)(4) and subparagraph 
     (a)(4)(A).
       SR
       41. See note 4.
       SR
       42. The House bill and the Senate amendment require the 
     Secretary to provide an interim and final report to Congress 
     on the national assessment authorized under this section. 
     However, the House bill also requires both reports to be 
     submitted to the President. In addition, the House bill 
     stipulates the report must be delivered three years after 
     enactment of the House bill, while the Senate amendment sets 
     a date certain for delivery of the report of December 20, 
     2004. The Senate amendment provisions regarding the report 
     are located in subsection (e) of the Senate amendment.
       SR with an amendment to strike ``Congress'' and insert 
     ``House Education and the Workforce Committee and Senate 
     Health, Education, Labor and Pensions Committee''; LC make 
     uniform throughout Act.
       43. The House bill, but not the Senate amendment, requires 
     the final report on the national assessment authorized under 
     this section to be delivered no more than 4 years after 
     enactment of the House bill. The Senate amendment requires 
     the final report to be delivered by a date certain of 
     December 20, 2007, which is later than the deadline contained 
     in the House bill.
       SR with an amendment to strike ``4'' and insert ``5''.
       44. The House bill and the Senate amendment are 
     substantially the same in the provisions regarding 
     authorizing the Secretary to undertake additional studies and 
     data collection with minor wording differences and with the 
     exception indicated in note 45.
       SR with an amendment to strike House (A) and insert Senate 
     (1) in its place.
       45. The Senate amendment does not contain a similar 
     provision.
       SR
       46. See note 42.
       SR
       47. See note 43.
       SR
       48. See note 36; otherwise, the Senate amendment does not 
     contain similar provisions.
       SR with an amendment to strike ``performance'' and insert 
     ``achievement'' in (A);
       LC--conform (A)-(F) to previous changes.
       49. See note 4; otherwise, the Senate amendment does not 
     contain similar provisions.
       SR with an amendment to change (iii) to new (iv) and insert 
     as new (iii) ``parents, members of local boards of education, 
     and other organizations involved with the implementation and 
     operation of programs under this title.''; Strike ``a 
     majority of the number of'' and insert ``include'' in House 
     (B)(i).
       Report Language:
       The Conferees intend that parents or other representatives 
     of migrant children, homeless children, and limited English 
     proficient children be included among ``parents,'' and that 
     civil rights groups, test publishers, participating private 
     schools, and faith-based organizations with educational 
     expertise, be included among the ``other organizations 
     involved with the implementation and operation of programs 
     under this title.''
       50. The House bill, but not the Senate amendment, makes 
     minor technical changes to section 1502.
       SR
       51. House bill renames program as ``Ellender-Close Up 
     Fellowship Program'' and the Senate amendment renames program 
     as ``Close Up Fellowship Program.''
       HR
       52. Both House bill and Senate amendment contain findings, 
     but the findings differ.
       HR/SR--No findings
       53. Virtually identical provisions.
       SR
       54. Virtually identical provisions.
       LC
       55. House bill uses the term ``recent immigrants'' and 
     Senate amendment uses the term ``students with migrant 
     parents.''
       HR
       56. Identical title.
       LC
       57. House bill, but not Senate amendment, contains 
     additional language ``to promote greater civic understanding 
     and responsibility among the students of such teachers.''
       SR
       58. Virtually identical provisions.
       SR
       59. Virtually identical provisions.
       LC
       60. House bill entitled ``Programs for Recent Immigrants 
     and Students of Migrant Parents.'' Senate Amendment entitled 
     ``Programs for New Americans.''
       HR
       61. House bill authorizes Close Up Foundation to carry out 
     programs among economically disadvantaged recent immigrants 
     and students of migrant parents. Senate amendment authorizes 
     Close Up Foundation to carry out programs among economically 
     disadvantaged secondary school students who are recent 
     immigrants.
       HR with an amendment to insert ``middle and'' before 
     ``secondary school students''.
       62. House bill contains no similar provision.
       HR
       63. Under House bill, grants shall be used for financial 
     assistance to economically disadvantaged older Americans, 
     recent immigrants and students of migrant parents who 
     participate in the program. Under Senate amendment, grants 
     shall be used only to provide financial assistance to 
     economically disadvantaged recent immigrant students who 
     participate in the program.
       HR with an amendment to insert ``and their teachers'' after 
     ``recent immigrant students'' and insert ``and teachers'' 
     after ``by such students''.
       64. Virtually identical provisions.
       LC
       65. House bill requires applications to contain provisions 
     to assure that fellowship grants are made to economically 
     disadvantaged recent immigrants and students of migrant 
     parents. Senate amendment requires

[[Page 25836]]

     applications to contain provisions to assure that fellowship 
     grants are made to economically disadvantaged secondary 
     school students.
       HR with an amendment to insert ``middle school and'' before 
     ``secondary school students;''.
       66. House bill requires applications to contain provisions 
     that every effort will be made to ensure the participation of 
     recent immigrants and students of migrant parents from rural 
     and small town areas. Senate amendment requires applications 
     to contain provisions that every effort shall be made to 
     ensure the participation of recent immigrant students from 
     rural and small town areas
       HR
       67. House bill gives special consideration to the 
     participation of recent immigrants and students of migrant 
     parents with special needs, including individuals with 
     disabilities, ethnic minorities, and gifted and talented 
     students. Senate amendment states that in awarding 
     fellowships to economically disadvantaged recent immigrant 
     students, special consideration will be given to the 
     participation of those students with special educational 
     needs, including students with disabilities, students with 
     migrant parents and ethnic minority students.
       HR
       68. Similar provisions.
       LC
       69. Similar provisions.
       LC
       70. House bill contains no similar provision.
       HR
       71. Virtually identical provision.
       LC
       72. Virtually identical provision.
       LC
       73. House bill stipulates that the Secretary may use not 
     more than 30 percent to carry out subsection (c) of this 
     section (programs for middle and secondary school teachers). 
     Senate amendment stipulates that not more than 30 percent may 
     be used for middle and secondary school teachers and teachers 
     of recent immigrants associated with students participating 
     in the programs described in sections 2511, 2521 and 2531.
       HR
       74. House bill authorizes such sums as may be necessary for 
     FY 02 and for each of the 4 succeeding fiscal years. Senate 
     amendment authorizes to carry out the provisions of subparts 
     1, 2, and 3 of this part $6,000,000 for FY 02 and such sums 
     as may be necessary for each of the four succeeding fiscal 
     years.
       SR with an amendment to strike ``4 succeeding'' and insert 
     ``5 succeeding''.
       76. Senate amendment contains no similar provision.
       SR

              Title I, Part F--Comprehensive School Reform

       1. The House bill and the Senate amendment designate the 
     comprehensive school reform program as different parts within 
     each respective piece of legislation.
       LC
       2. The House bill, but not the Senate amendment, contains 
     findings.
       HR
       3. The House bill and the Senate amendment are 
     substantially the same in the PURPOSE section, except the 
     Senate amendment adds the word ``promising'' before 
     ``effective practices''. In addition, the House references 
     ``academic achievement standards'', while the Senate 
     references ``student performance standards''.
       SR with LC on further references to standards.
       4. The Senate amendment, but not the House bill, references 
     ``allotments'', as described in paragraph (2) following. 
     Otherwise, the House bill and Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       5. The House bill and Senate amendment have different 
     paragraph headings.
       LC
       6. The Senate amendment, but not the House bill, 
     specifically refers to the Title I section authorizing funds 
     for this part.
       HR
       7. The Senate amendment, but not the House bill, has 
     language regarding the amounts the Secretary may reserve for 
     the entities listed based on their need for assistance.
       HR
       8. The House bill and the Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       9. The House bill allows the Secretary to reserve 2% of the 
     amount appropriated in FY 02 for quality initiatives, while 
     the Senate amendment allows a reservation of 3%. The House 
     bill and Senate amendment also have a technical difference in 
     cross-references.
       SR with an amendment to change 2% to 3%.
       10. The Senate amendment, but not the House bill, 
     specifically refers to the Title I section authorizing funds 
     for this part, otherwise the House bill and Senate amendment 
     are substantially the same.
       HR with an amendment to include House subparagraph (C) 
     regarding the Secretary's reallocation of funds to the 
     States.
       11. The Senate amendment, unlike the House bill, does not 
     have a ``STATE AWARDS'' subsection heading.
       HR
       12. The House bill and Senate amendment are substantially 
     the same with a minor wording difference that does not affect 
     the meaning.
       LC
       13. The House bill and the Senate amendment are the same 
     with a technical difference in cross-references.
       LC
       14. The House bill, but not the Senate amendment, requires 
     comprehensive school reform program technical assistance 
     providers to be financially stable. The Senate amendment, but 
     not the House bill, requires comprehensive school reform 
     program technical assistance providers have capacity to 
     deliver on-site support during reform implementation.
       SR on House reference to financially stable.
       HR on Senate reference to on-site support.
       15. The Senate amendment, but not the House bill, adds the 
     word ``promising'' before ``effective practices''. The House 
     bill requires dissemination of ``materials'', while the 
     Senate amendment requires dissemination of ``information''.
       SR on House reference to effective practices.
       SR with an amendment to include ``and information'' after 
     ``materials''.
       16. The House bill, but not the Senate amendment, contains 
     the phrase ``and to participating schools''. The House bill 
     requires technical assistance to be provided, while the 
     Senate amendment requires technical assistance to be made 
     available.
       SR
       17. The Senate amendment, but not the House bill, contains 
     the word ``STATE'' in the heading.
       LC
       18. The House bill and Senate amendment are substantially 
     the same with a technical difference in cross-references. The 
     Senate amendment refers to subgrants from SEAs to LEAs, while 
     the House amendment refers to grants from SEAs to LEAs 
     throughout the remainder of this subsection (or, in the case 
     of the Senate amendment, throughout this section), with the 
     exception indicated in note 21.
       LC
       19. The House bill and the Senate amendment have different 
     headings.
       LC
       20. The House bill refers to ``schools'', while the Senate 
     amendment refers to ``school''.
       HR with an amendment to add ``or schools'' after 
     ``school''.
       21. The Senate amendment, but not the House bill, adds the 
     words ``or consortia''. The Senate amendment refers to the 
     SEA, while the House bill refers to the State.
       HR
       22. The Senate amendment, but not the House bill, requires 
     SEAs to give priority to both conditions in paragraphs in (1) 
     and (2) when awarding subgrants to LEAs or consortia thereof. 
     The House bill, but not the Senate amendment, requires SEAs 
     to only give priority either to clause (i), or clause (ii), 
     when awarding subgrants to LEAs. With this exception and that 
     indicated in note 21, the House bill and Senate amendment are 
     substantially the same in the PRIORITY provisions.
       HR
       23. The House bill and Senate amendment are substantially 
     the same with minor, technical wording differences.
       LC
       24. The House bill and Senate amendment are substantially 
     the same except the House bill refers to the States 
     ``annual'' evaluation and the Senate bill does not and with 
     other minor, technical wording differences.
       SR/LC
       25. The House bill and Senate amendment have different 
     headings.
       SR/LC
       26. The Senate amendment, but not the House bill, requires 
     LEAs to submit an application to the SEA as the SEA may 
     require. Otherwise the content of LEA applications in the 
     House bill and the Senate amendment are substantially the 
     same with the exceptions indicated in notes 27 and 28.
       HR
       27. The Senate amendment, but not the House bill, adds the 
     word ``promising'' before ``effective practices''.
       SR
       28. The Senate amendment, but not the House bill, adds the 
     word ``comprehensive'' before ``reforms''.
       HR
       29. The House bill, unlike the Senate amendment, does not 
     have a section heading.
       LC
       30. The House bill and Senate amendment have different 
     headings. The Senate amendment, but not the House bill, 
     refers to LEAs or consortia thereof. In addition, the Senate 
     amendment, but not the House bill, requires LEAs to award 
     subgrants to schools eligible for assistance under part A of 
     Title I and that are served by that agency.
       HR
       LC regarding headings.
       31. The House bill and the Senate amendment are 
     substantially the same with the exception indicated in note 
     27, and the House bill references those strategies and 
     methods replicated in similar schools, while the Senate 
     amendment does not reference similar schools.

[[Page 25837]]

       SR with an amendment to strike ``similar''.
       32. See note 3, specifically that part regarding standards.
       LC regarding ``academic achievement standards''.
       33. The House bill, but not the Senate amendment, requires 
     benchmarks for student performance goals in a school's 
     comprehensive school reform program. The House bill refers to 
     ``other professional staff'' while the Senate amendment 
     refers to ``school personnel staff''.
       HR to include both terms: ``other professional staff'' and 
     ``school personnel staff''.
       SR to include (E) regarding comprehensive school reform 
     programs being supported by teachers, principals, 
     administrators, and other professional staff.
       34. The House bill requires the involvement of parents in 
     ``planning and implementing'' school improvement activities, 
     while the Senate amendment requires parental involvement to 
     ``strengthen'' school improvement activities.
       SR with an amendment to strike ``and'' and insert ``,''. 
     Add `` and evaluating'' after ``implementing'' and add at end 
     ``consistent with section 1118''.
       35. The House bill, but not the Senate amendment, requires 
     an annual evaluation of student results achieved. The Senate 
     amendment refers to an evaluation of student performance.
       SR
       36. The House bill and the Senate amendment are 
     substantially the same with minor technical wording 
     differences.
       LC
       37. The House bill, but not the Senate amendment, requires 
     a school's comprehensive school reform program to have been 
     proven effective in improving academic performance through 
     field testing or which has a strong evidentiary basis as 
     described in subparagraph (J)(i) and (ii).
       SR with an amendment to strike ``rigorous field experiments 
     in multiple cites''; and insert ``scientifically based 
     research'' and strike all references to ``similar''.
       38. The House bill and Senate amendment are substantially 
     the same with minor wording differences, including a 
     technical difference in cross-references.
       LC
       39. The House bill and Senate amendment have different 
     headings.
       SR
       40. The House bill and Senate amendment are substantially 
     the same with a minor wording difference that does not affect 
     the meaning.
       LC
       41. The Senate amendment requires the Secretary of 
     Education to submit an interim report on comprehensive school 
     reform implementation to Congress, while the House bill 
     requires the Secretary to submit an interim report on the 
     first year of comprehensive school reform implementation to 
     Congress.
       HR with an amendment to strike ``Prior to the completion of 
     the national evaluation.'' Also strike ``an interim'' and 
     insert ``a''. After ``describing'' add ``results of the 
     evaluation under subsection (b)''. Also strike 
     ``implementation activities'' and ``which began in 1998''.
       42. The Senate amendment requires the Secretary to 
     ``promote'' the activities described in the following 
     paragraphs, while the House bill requires the Secretary to 
     ``provide funds'' for these activities.
       SR
       43. The House bill and Senate amendment are similar in 
     paragraphs (1) and (2), with minor wording differences, a 
     technical difference in cross-references, and with the 
     exceptions indicated in the next two notes.
       LC
       44. The Senate amendment, but not the House bill, requires 
     the Secretary to support activities that promote financial 
     stability in comprehensive school reform providers.
       HR
       45. The House bill, but not the Senate amendment, requires 
     the Secretary to provide funds for activities to ensure high 
     quality services meeting the needs of teachers and students. 
     The Senate amendment requires activities to ``assure 
     quality'' in paragraph (2).
       HR
       Authorization Level: House $260 million. Senate $500 
     million.
       SR with an amendment to strike ``$260 million'' and replace 
     with ``such sums''.

                    Title I, Part G--Rural Education

                         (New Title VI, Part B)

       1. House bill authorizes program in Title I, Part G and 
     short title is `Rural Education Initiative Act.' Senate 
     amendment authorizes program in Title V, Part B, Subpart 2 
     and short title is `Rural Education Achievement Program.'
       HR with an agreement to move to Title VI, Part B.
       2. Senate amendment, but not House bill, contains purpose.
       HR
       3. House bill, but not Senate amendment, contains findings.
       HR
       4. House bill ``Subpart 1--Rural Education Flexibility.'' 
     Senate amendment ``Chapter 1--Small, Rural School Achievement 
     Program.''
       HR
       5. Under House bill, a school district may use applicable 
     funding for the local activities authorized in: Title I Part 
     A; Title II Part A (teacher quality), Title III Part A 
     (education of limited English proficient and immigrant 
     children); Title IV Part A (innovative programs); Title V 
     Part A (safe schools and 21st century schools); or Title V 
     Part B (enhancing education through technology). Under Senate 
     amendment, a school district may use applicable funding for 
     the activities authorized in: Section 1114 (schoolwide 
     programs); Section 1115 (targeted assistance schools); 
     Section 1116 (assessments and school improvement); Section 
     2123 (teacher quality--local uses of state grant funds); 
     Section 4116 (safe and drug-free schools--local drug and 
     violence prevention); or Section 5331(b) (local activities 
     under innovative education program strategies).
       SR
       6. Under House bill, eligibility is limited to fewer than 
     600 students in average daily attendance, and all of its 
     schools with a School Locale Code of 7 or 8. Under Senate 
     amendment, eligibility is limited to (1) Fewer than 600 
     students in average daily attendance or all schools in the 
     district located in counties with a population density of 
     fewer than 10 persons per square mile, and (2) all schools 
     have a Locale Code of 7 or 8.
       HR
       7. Under House bill, the Secretary shall determine whether 
     or not to waive the School Locale Code requirement based on a 
     demonstration by an LEA and concurrence by the SEA, that the 
     LEA is located in an area defined as rural by a governmental 
     agency of the State. Under Senate amendment, the Secretary 
     may waive the School Locale Code requirement if the Secretary 
     determines, based on information demonstrated by the LEA or 
     the SEA on behalf of the LEA, that the LEA is located in an 
     area defined as rural by a governmental agency of the State.
       SR
       8. House bill applicable funding: Title II A (teacher 
     quality); Section 3106 (education of limited English 
     proficient and immigrant children); Title IV Part A 
     (innovative programs); Title V Part A, Subpart 1 (safe 
     schools); and Section 5212(a)(2)(A) (enhancing education 
     through technology). Senate amendment applicable funding: 
     Title II (teacher quality); Title IV (Safe and Drug-Free 
     Schools and Communities Act of 1994); and Title V Part B, 
     Subpart 4 (innovative education program strategies).
       HR/SR with an agreement for ``applicable funding'' to 
     include: Subpart 2 of Title II (Teachers); Section 
     2412(a)(2)(A) (Technology); Section 4114 (Safe and Drugfree 
     Schools); and Part A of Title V (Innovative Programs).
       9. Similar provision.
       LC
       10. Similar provision.
       LC
       11. House bill contains no similar provision.
       HR
       12. Under House bill, grants are authorized for eligible 
     LEAs to support local or statewide education reform efforts 
     intended to improve the academic achievement of elementary 
     school and secondary school students and the quality of 
     instruction provided for the students. Under Senate 
     amendment, grants authorized for eligible LEAs for the same 
     activities supported under the flexibility authority with the 
     addition of: Section 2213 (mathematics and science 
     partnerships), or Section 2306 (state and local programs for 
     technology).
       HR with an amendment to mirror Note 5 uses.
       13. Similar provision except that the amount in House bill 
     is based on the preceding fiscal year and the Senate 
     amendment is based on the same fiscal year.
       SR
       14. Virtually identical provision.
       LC
       15. Virtually identical provision.
       LC
       16. Identical provision.
       LC
       17. Identical provision.
       LC
       18. Senate amendment, but not House bill, contains penalty.
       HR
       19. Identical provision.
       LC
       20. Similar provision.
       SR
       21. Identical provision.
       LC
       22. House bill has no similar provision.
       HR
       23. Under House bill, LEA must administer assessments 
     consistent with the provisions of ESEA Title I, Section 1111. 
     SEA permits only a district meeting ``adequate yearly 
     progress'' as defined under Section 1111 to continue to 
     participate after second year of participation. Under Senate 
     amendment, LEA must assess its student achievement using 
     statewide assessment consistent with the assessment under 
     ESEA Title I, Section 1111(b), or, absent such assessment, a 
     test of its own selection. State permits an LEA to continue 
     for additional three-year period only if its students perform 
     ``better'' on the assessment after the third year than they 
     did in the first year. An LEA that does not

[[Page 25838]]

     meet this criterion is ineligible to participate for a 3-year 
     period.
       SR with an amendment to read as follows:
       ``(1) after each third year that a local educational agency 
     participates in a program under section 1711 or 1712 and on 
     the basis of the results of the assessments described in 
     subsection (a), determine whether the schools served by the 
     local educational agency participating in the program 
     performed in accordance with section 1111;
       ``(2) permit those local educational agencies that 
     participated and make adequate yearly progress, as described 
     in section 1111(b)(2), to continue to participate; and,
       ``(3) only permit those local educational agencies that 
     participated and fail to make adequate yearly progress, as 
     described in section 1111(b)(2), to continue to participate 
     if they disburse applicable funding under section 1711(c) to 
     carry out the requirements of section 1116.''
       24. House bill ``Subpart 2--Rural Education Assistance.'' 
     Senate amendment ``Chapter 2--Low-Income and Rural School 
     Program.''
       HR with an amendment to change title to ``Rural and Low 
     Income School Program''.
       25. House bill, but not Senate amendment, contains 
     provision to reserve \1/2\ of 1 percent for Bureau of Indian 
     Affairs.
       SR with an amendment to add .5% reservation for outlying 
     areas.
       26. Similar provision.
       LC
       27. Virtually identical provision.
       LC
       28. Virtually identical provision.
       LC
       29. Under House bill, funds can be used for teacher 
     recruitment and retention, professional development for 
     teachers, acquisition of educational technology, parental 
     involvement activities, or programs to improve student 
     achievement. Under Senate amendment, funds can be used for 
     the activities described in Section 5331(b) (local activities 
     authorized under Title V Part B, Subpart 4--innovative 
     programs). These uses include ones similar to those 
     identified in House bill and other uses, such as acquisition 
     of instructional materials, assessments, and curricular 
     materials; and student and parental literacy efforts.
       SR with an amendment to strike (E) and insert ``(E) Safe 
     and Drug Free Schools; (F) Title I, part A; and (G) Programs 
     for Limited English Proficient Students''
       30. Similar provision.
       LC
       31. House bill, but not Senate amendment, allows the State, 
     as appropriate, to define formula.
       SR with an amendment to read as follows:
       (2) according to a formula based on the number of students 
     in average daily attendance served by the eligible local 
     educational agencies or schools in the State. The State 
     educational agency may use a formula not based on the number 
     of students in average daily attendance if the State 
     educational agency demonstrates, to the satisfaction of the 
     Secretary and prior to awarding grants to local educational 
     agencies, that the State educational agency will allocate 
     funds according to a formula which serves high concentrations 
     of children from low-income families at a level proportional 
     to or higher than the level that would occur with a formula 
     based on the number of students in average daily attendance.
       Report Language:
       The conferees note that the objective of this section is to 
     allow the State educational agency the flexibility to 
     implement their own formula so long as that formula is more 
     likely to allocate funds to areas of high concentrations of 
     poverty than a formula based on average daily attendance.
       32. Virtually identical provision.
       SR with an amendment to insert ``and technical assistance 
     to eligible LEA's'' after ``administrative costs''.
       33. Similar provision.
       HR
       34. Similar provision except that House bill also requires 
     the SEA to describe the method used to provide assistance to 
     schools.
       SR
       35. Virtually identical provision.
       LC
       36. Virtually identical provision.
       LC
       37. Senate amendment, but not House bill, contains 
     ``supplement not supplant'' provision.
       HR
       38. Virtually identical provision.
       LC
       39. Senate amendment, but not House bill, contains 
     provision that requires LEAs that receive a grant to 
     administer an assessment to determine the academic 
     achievement of students in the schools served by the LEA.
       HR with an amendment to amend Senate amendment (c) to read 
     as follows (consistent with Note 23):
       ``(c) Academic Achievement.--
       ``(1) In general.--Each local educational agency that 
     receives a grant under this chapter [subpart] for a fiscal 
     year shall administer an assessment consistent with section 
     1111.
       ``(2) Special rule.--Each local educational agency that 
     receives a grant under this chapter [subpart] shall use the 
     same assessment described in paragraph (1) for each year of 
     participation in the program carried out under this chapter 
     [subpart].''
       40. House bill, but not Senate amendment, requires the 
     Secretary to prepare a report for Congress.
       SR with an amendment to strike ``annual'' and insert 
     ``biennial'' in (c).
       41. House bill requires the Secretary to review the 
     progress of the SEA or specially qualified agency in 
     achieving goals and objectives and determine whether the 
     agency has made progress toward meeting such goals and 
     objectives. Senate amendment requires the SEA to determine 
     whether students served by an LEA participating in the 
     program performed better on assessments after the 3rd year of 
     participation than the students performed on the assessments 
     after the first year of participation.
       HR with an amendment to amend Senate amendment (d) to read 
     as follows (consistent with Note 23):
       ``(d) State Educational Agency Determination Regarding 
     Continuing Participation.--Each State educational agency that 
     receives a grant under this chapter [subpart] shall--
       ``(1) after each third year that a local educational agency 
     receives funds under this chapter [subpart] and on the basis 
     of the results of the assessments described in subsection 
     (c), determine whether the schools served by such local 
     educational agency performed in accordance with section 1111;
       ``(2) permit such local educational agencies that make 
     adequate yearly progress, as described in section 1111(b)(2), 
     to continue to receive grants; and,
       ``(3) only permit such local educational agencies that fail 
     to make adequate yearly progress, as described in section 
     1111(b)(2), to continue to receive grants if they disburse 
     such grants to carry out the requirements of section 1116.''
       42. House bill, but not Senate amendment, requires the 
     Secretary to review the use of funds of the SEA or specially 
     qualified agency.
       HR
       43. Senate amendment, but not House bill, permits only the 
     LEAs that performed better on assessments (as described in 
     Note 39) to continue to participate in the program for an 
     additional 3 years.
       HR
       44. House bill permits the Secretary to deny the provision 
     of additional funds in subsequent fiscal years to an agency 
     only if the Secretary determines, after notice and an 
     opportunity for a hearing, that the agency's use of funds has 
     been inadequate to justify continuation of such funding. 
     Senate amendment prohibits the LEAs that participated in the 
     program and served students that did not perform better on 
     assessments (as described in Note 39) from participating in 
     the program for a period of 3 years from the date of the 
     determination.
       HR
       45. Identical definition.
       LC
       46. Similar definition.
       LC
       47. House bill, but not Senate amendment, contains 
     definition for State.
       HR
       48. House bill authorizes $300 million for FY 02 and such 
     sums as may be necessary for the next four years with the 
     appropriation divided evenly between the two programs 
     (authorization from Section 1002). Senate amendment 
     authorizes $150 million for each of the two programs for FY 
     02 and such sums as may be necessary for each of the next six 
     fiscal years.
       HR/SR with an agreement to authorize $300 million for FY 
     2002 and such sums as may be necessary for each of 5 
     succeeding fiscal years to be distributed equally between 
     subparts 1 and 2.

                  Title I, Part H--General Provisions

                         (New Title I, Part I)

       1. The House bill, but not the Senate amendment, makes 
     several changes to the general provisions of Title I and 
     includes them in Title I, Part H of the House bill. The 
     Senate amendment retains current law for the general 
     provisions for Title I. The Senate amendment redesignates 
     sections 1601 through 1604 of current law, respectively, as 
     sections 1901 through 1904. See section 161(2) of the Senate 
     amendment regarding the redesignation.
       SR with amendment to add ``and other organizations'' after 
     ``local boards of education''; Strike ``ensure reasonable 
     compliance'' and insert ``reasonably ensure that there is 
     compliance''.
       Report Language:
       The Conferees intend that parents or other representatives 
     of migrant children, homeless children, and limited English 
     proficient children be included among ``parents,'' and that 
     civil rights groups, test publishers, participating private 
     schools, and faith-based organizations with educational 
     expertise be included among the ``other organizations 
     involved with the implementation and operation of programs 
     under this title.''
       2. The House bill requires the Secretary to establish a 
     negotiated rulemaking process on a minimum of three key 
     issues, including accountability, implementation of 
     assessments, and use of paraprofessionals. The Senate 
     amendment retains current law which requires a negotiated 
     rulemaking

[[Page 25839]]

     process on at least two key issues, including (i) schoolwide 
     programs and (ii) standards and assessments.
       SR with an amendment to: Strike (b)(A) and replace with
       ``(A) at a minimum, establish a negotiated rulemaking 
     process on standards and assessments.'';
     Insert at (b)(3)(B), before the semicolon, ``in such numbers 
     as will provide an equitable balance between representatives 
     of parents and students and representatives of educators and 
     education officials.''; and Strike ``regulations'' and add 
     ``policy options'' in (b)(3)(C).
       Report Language:
       The Conferees intend that the Secretary select individuals 
     to participate in the Title I negotiated rulemaking in 
     numbers that will provide an equitable balance between 
     representatives of parents and students and representatives 
     of educators and education officials. The Conferees do not 
     intend this language to require strict numerical equality or 
     comparability among these representatives. Rather, the 
     Conferees intend the Secretary to have flexibility in 
     selecting the conferees, while ensuring that the views of 
     both program beneficiaries and program providers are fairly 
     heard and considered.
       3. The House bill, includes provisions governing agreements 
     and record keeping on proposed regulations and negotiated 
     rulemaking. The Senate amendment retains current law.
       SR
       4. The House bill includes a provision on state rulemaking 
     and regulations. The Senate amendment retains current law.
       SR
       5. The House bill authorizes a committee of practitioners. 
     The Senate amendment retains current law. See also section 
     1002(i) of the House bill for authorization of state 
     administrative expenses. The Senate amendment retains current 
     law on the Committee of Practitioners and includes the 
     authorization for administrative expenses here.
       SR
       6. The House bill includes a local administrative costs 
     limitation of not more than 4 percent. The Senate amendment 
     has no provision.
       HR with report language:
       The Conferees intend LEAs to use only the necessary and 
     appropriate amount of funds to provide for administrative 
     expenses based on a reasonable definition of such expenses. 
     However, the Conferees recognize the need for additional 
     information regarding this matter and thereby direct the 
     Comptroller General of the General Accounting Office to 
     undertake a study of the definitions of administrative 
     expenses employed by LEAs across the States and the amount of 
     funds reserved for such expenses. The design of such study 
     will be developed by Congress in consultation with the GAO 
     and, as appropriate, with the Secretary of Education.
       7. The Senate amendment, but not the House bill, includes a 
     provision in section 1120C of part A of Title I that 
     prohibits the use of funds by a local educational agency for 
     certain activities. See also Title I, Part A, subpart 1 for 
     placement of this section.
       SR
       8. The Senate amendment, but not the House bill, provides 
     for not less than 6 audits of local educational agencies to 
     determine how such agencies are expending Title I funds.
       HR with amendment to strike ``the Office of Inspector 
     General'' and add ``General Accounting Office'' in (a) and 
     (b).
       9. The House bill, but not the Senate amendment, ensures 
     that no provision of Title I affects home schools. See note 
     125 from Title VIII (General Provisions for all of ESEA) of 
     House bill which applies the rule of construction to the 
     entire Act (section 8508 of Title VIII). The Senate amendment 
     includes a similar provision in section 17(a) and section 11, 
     also referenced in note 125.
       HR
       10. The House bill, but not the Senate amendment, ensures 
     that no provision of Title I affects private schools that do 
     not receive Title I funds, and no student at such a school is 
     required to participate in assessments referenced in Title I. 
     See note 126 from Title VIII (General Provisions for all of 
     ESEA) of the House bill which applies similar rule of 
     construction to the entire Act (section 8509 of Title VIII). 
     The Senate amendment includes a similar provision in section 
     17(b), also referenced in note 126.
       HR
       11. The House bill, but not the Senate amendment, ensures 
     that the privacy of individual assessments results are 
     protected from disclosure under section 444 of the General 
     Education Provisions Act. The Senate amendment includes a 
     similar provision in section 1111(j)(1)(F) of Title I, Part A 
     but references section 445 rather than section 444.
       SR with amendment to move Section 1807 to Title VIII 
     (General Provisions).

                Title II--Teacher and Principal Quality

                   (New Title II, Parts A, B, and C)

       1. House bill Title II is ``Preparing, Training, and 
     Recruiting Quality Teachers.'' Senate amendment Title II is 
     ``Teachers and Principals.''
       SR with an amendment to insert ``and Principals'' after 
     ``Teachers''.
       2. House bill Section 201 is ``Teacher Quality Training and 
     Recruiting Fund.'' Senate amendment Section 201 is ``Teacher 
     Quality.''
       SR with an amendment to insert ``and Principal'' after 
     ``Teacher''.
       3. Identical provision.
       LC
       4. House bill is ``Preparing, Training, and Recruiting 
     Quality Teachers.'' Senate amendment is ``Teachers and 
     Principals.''
       SR with an amendment to insert ``and Principals'' after 
     ``Teachers''.
       5. House bill Part A is ``Teacher Quality Training and 
     Recruiting Fund.'' Senate amendment Part A is ``Teacher and 
     Principal Quality.''
       SR with an amendment to insert ``and Principal'' after 
     ``Teacher''.
       6. Similar provisions.
       HR with an amendment to strike ``and student performance'' 
     in Senate (3) and to redesignate Senate (3) as (2).
       7. Senate amendment, but not House bill, contains purpose 
     to hold LEAs and schools accountable so that all teachers 
     teaching core academic subjects in public schools, in which 
     not less than 50 percent of the students are from low-income 
     families, are highly qualified.
       SR
       8. Senate amendment, but not House bill, contains purpose 
     of holding LEAs and schools accountable for improvements in 
     student academic achievement and student performance.
       SR (redesignated as (2) in Note 6).
       9. House bill Subpart 1 is ``Grants to States to Prepare, 
     Train, and Recruit Qualified Teachers.'' Senate amendment 
     Subpart 1 is ``Grants to States.''
       HR
       10. Similar provisions.
       LC
       11. Similar provisions.
       LC
       12. House bill names individual outlying areas; Senate 
     amendment cites ``outlying areas.''
       SR
       13. Similar provisions.
       SR with an amendment to strike ``for professional 
     development activities for teachers, other staff, and 
     administrators''.
       14. Senate amendment, but not House bill, limits the amount 
     of funds that may be reserved for BIA and Outlying Areas to 
     the amount received by these entities in FY 01.
       SR
       15. Similar provisions (wording differs).
       LC
       16. House bill, but not Senate amendment, sets the hold 
     harmless amount for nonparticipating States at what they 
     would have received in FY 01, had they participated.
       HR
       17. Similar provision.
       LC
       18. House bill formula to the States is 50% based on 
     population and 50% based on poverty. Senate amendment formula 
     to the States is 35% based on population and 65% based on 
     poverty.
       HR
       19. House bill defines poverty here based on OMB definition 
     and Senate amendment defines poverty in Section 2102 based on 
     OMB definition.
       HR
       20. Similar small State minimum.
       LC
       21. Similar provisions (wording differs).
       LC
       22. House bill, but not Senate amendment, has language that 
     provides that funds granted under this Subpart shall be used 
     to carry out activities for the improvement of teaching and 
     learning.
       HR
       23. Under House bill, States may reserve not more than 5% 
     of funds for one or more of the authorized State activities 
     described in Subsection (e) [Authorized State Activities]; 
     and for planning and administration related to carrying out 
     such activities and making subgrants to LEAs under Subparts 2 
     [math and science partnerships] and 3 [Subgrants to LEAs]. 
     Under Senate amendment, States must reserve 2% of funds 
     available for State activities described in Subsection (b) 
     [State Activities]; 95% of the funds to make subgrants to 
     LEAs as described in Subpart 2 [Subgrants to LEAs]; and 3% of 
     the funds to make subgrants to local partnerships as 
     described in Subpart 3 [Subgrants to Eligible Partnerships].
       HR with an amendment to read as follows:

     ``SEC. 2113. STATE USE OF FUNDS.

       ``(a) In General.--A State that receives a grant under 
     section 2111 shall--
       ``(1) reserve 95 percent of the funds to make subgrants to 
     local educational agencies as described in subpart 2 
     [Subgrants to Local Educational Agencies];
       ``(2) reserve 2.5 percent (or, for a fiscal year described 
     in subsection (b), the percentage determined under subsection 
     (b)) of the funds to make subgrants to local partnerships as 
     described in subpart 3 [Subgrants to Eligible Partnerships]; 
     and
       ``(3) use the remainder of the funds for State activities.
       ``(b) Special Rule.--For any fiscal year for which the 
     total amount that would be reserved by all States under 
     subsection (a)(2), if the State applied a 2.5 percentage 
     rate, exceeds $125,000,000, the Secretary shall determine an 
     alternative percentage that the

[[Page 25840]]

     States shall apply for that fiscal year under subsection 
     (a)(2) so that the total amount reserved by all States under 
     subsection (a)(2) equals $125,000,000.''
       24. House bill, but not Senate amendment, caps State 
     administrative costs at 1% of the total State grant.
       SR with an amendment to read as follows:
       ``(4) Administrative costs.--A State educational agency or 
     State agency for higher education receiving a grant under 
     this part may use not more than 1 percent of the amount of 
     funds provided under the grant for planning and 
     administration related to carrying out activities under 
     subsection (b) [State Activities] and subpart 3 [Subgrants to 
     Eligible Partnerships].''
       25. Similar provisions.
       LC
       26. House bill, but not Senate amendment, provides that a 
     grant to a State can only be awarded if the State agrees to 
     distribute the funds described in this subsection as 
     subgrants to LEAs.
       SR
       27. House bill, but not Senate amendment, contains a hold 
     harmless provision for LEAs.
       SR
       28. House bill, but not Senate amendment, contains a 
     provision for nonparticipating agencies.
       SR
       29. House bill, but not Senate amendment, contains a 
     provision for ratable reduction.
       SR
       30. Similar provisions except House bill provides for 
     allotment of additional funds (above the LEA hold harmless 
     provision).
       SR
       31. Similar provisions (20% based on population) except 
     that House bill is based on the relative enrollment in public 
     and private nonprofit elementary and secondary schools within 
     LEAs and Senate amendment is based on the number of 
     individuals age 5 through 17 in the geographic area served by 
     LEAs.
       HR
       32. Similar provisions (80% based on poverty) except that 
     House bill defines poverty here based on OMB definition and 
     Senate amendment defines poverty in Section 2102 based on OMB 
     definition.
       LC
       33. House bill, but not Senate amendment, provides that all 
     new funding above the LEA hold harmless level goes out 50% 
     for LEAs and 50% for Math and Science partnerships under 
     Subpart 2.
       HR
       34. House bill, but not Senate amendment, requires States 
     to award competitive subgrants for Math and Science 
     partnerships (Senate amendment Section 2201 contains separate 
     program for math and science partnerships).
       HR
       35. Under House bill, but not Senate amendment, although 
     50% of the excess is for partnerships, that amount cannot 
     equal more than 15% to 20% of the total state allocation 
     minus State reservation, the precise percentage in that range 
     being chosen by the State.
       HR
       36. Under House bill, but not Senate amendment, States must 
     award at least 15%--but not more than 20%--of the funds (at 
     the discretion of the State) on a competitive basis to 
     eligible partnerships under Subpart 2.
       HR
       37. House bill lists authorized activities. Senate 
     amendment requires SEA to carry out one or more of the listed 
     activities, including through a grant or contract with a for-
     profit or nonprofit entity.
       HR
       38. Similar provision except that Senate amendment includes 
     language regarding principals.
       HR
       39. Similar provision except the Senate amendment includes 
     language regarding principals.
       HR
       40. Similar provision.
       SR
       41. Similar provision except that Senate amendment includes 
     language regarding technology literacy and principals (Senate 
     amendment also uses term ``performance standards'').
       HR with an amendment to strike ``performance'' and insert 
     ``academic''.
       42. Similar provisions except that Senate amendment, but 
     not House bill, specifically mentions ``assistant 
     principals,'' ``team teaching,'' and ``reduced schedules.''
       HR with an amendment to read as follows:
       ``(2) Carrying out programs that provide support, including 
     during their initial experience, to teachers, principals, or 
     assistant principals, such as programs that provide teacher 
     mentoring, team teaching, reduced schedules, and intensive 
     professional development.''
       43. House bill similar to Senate amendment (8) below.
       SR
       44. Similar provisions except that Senate amendment, but 
     not House bill, includes principals and specifically includes 
     MA recipients.
       HR
       45. House bill, but not Senate amendment, emphasizes math 
     and science.
       SR
       46. Similar provisions except that Senate amendment 
     includes language for pupil services personnel and recruiting 
     specialists in core academic subjects (Language in Senate 
     amendment paragraph (6) largely duplicates Senate amendment 
     paragraph (5)).
       HR with an amendment to strike Senate (6) and amend Senate 
     (5) to read as follows:
       ``(5)(A) Developing and implementing effective mechanisms 
     to assist local educational agencies and schools in 
     effectively recruiting and retaining highly qualified 
     teachers and principals, including specialists in core 
     academic subjects, and pupil services personnel.
       ``(B) Special rule.--Funds under this paragraph may be used 
     for pupil services personnel only in cases in which the State 
     educational agency deems appropriate, if the State 
     educational agency is making progress toward meeting the 
     objectives described in section 2141(a) [Accountability], and 
     in a manner consistent with mechanisms to assist local 
     educational agencies and schools in effectively recruiting 
     and retaining highly qualified teachers and principals.''
       47. House bill provides for reforming tenure systems and 
     implementing teacher testing and other procedures to 
     expeditiously remove ineffective teachers from the classroom. 
     Senate amendment provides for testing new teachers for 
     subject matter knowledge, and testing the teachers for State 
     certification or licensing (similar to House bill (iii) 
     above).
       HR/SR with an amendment to combine language in House bill 
     and Senate amendment and add report language:
       ``(8) Reforming tenure systems, implementing teacher 
     testing for teachers for subject matter knowledge, and 
     implementing teacher testing for teachers for State 
     certification or licensing, consistent with title II of the 
     Higher Education Act of 1965.''
       Report Language:
       The conferees recognize that a State educational agency may 
     elect to reform tenure systems and implement teacher testing 
     to expeditiously remove ineffective teachers from the 
     classroom, while ensuring due process consistent with State 
     law.
       48. Similar provisions regarding tenure reform.
       HR/SR (addressed in Note 47).
       49. Senate amendment contains no similar provision.
       SR with an amendment to strike ``enhanced performance'' and 
     after ``strategies'' insert ``to document student academic 
     gains or increases in teachers' mastery of subjects they 
     teach.''
       50. Senate amendment contains no similar provision.
       SR with an amendment to combine with Note 65.
       ``(18) Fulfilling the State's responsibilities concerning 
     proper and efficient administration of the programs carried 
     out under this part including technical assistance to local 
     educational agencies.''
       51. Similar provision except that House bill provides that 
     reciprocity agreements cannot weaken State teacher 
     certification requirements and Senate amendment includes 
     principals.
       SR with an amendment to insert ``and principal'' after 
     ``reciprocity of teacher''.
       52. Senate amendment contains no similar provision.
       SR with an amendment to combine with Note 64.
       ``(8) Developing or assisting local educational agencies in 
     the development and utilization of proven, innovative 
     strategies to deliver intensive professional development 
     programs that are both cost-effective and easily accessible, 
     such as through the use of technology, peer networks, and 
     distance learning.''
       53. Senate amendment, but not House bill, includes 
     administrators.
       HR
       54. Similar provision except that Senate amendment contains 
     specific language regarding the ability to collect, manage, 
     and analyze data to improve teaching, decision making and 
     school improvement efforts and accountability.
       HR
       55. Similar provision except that House bill includes 
     language on assessments for teachers and differential pay for 
     teachers in high need subject areas and House bill also 
     focuses on teachers in high need subject areas in high-
     poverty districts.
       SR with an amendment to strike ``rigorous assessments for 
     teachers'' and add report language:
       Report Language:
       The Conferees note that locally negotiated and 
     collaboratively designed programs for performance based pay 
     systems are an effective type of merit based pay in that 
     performance based pay systems reward teachers for working 
     together to raise student achievement for all students 
     throughout the school.
       56. Senate amendment contains no similar provision.
       SR
       57. Senate amendment contains no similar provision.
       SR
       58. House bill contains no similar provision.
       HR (LC use ``highly qualified'' throughout this Title; LC 
     with Note 78).

[[Page 25841]]


       59. House bill contains no similar provision.
       HR
       60. House bill contains no similar provision.
       HR
       61. House bill contains no similar provision.
       HR
       62. House bill contains no similar provision.
       SR
       63. House bill contains no similar provision.
       HR with an amendment to read as follows:
       ``(15) Providing professional development for teachers and 
     principals and, in cases in which a State educational agency 
     deems appropriate, supporting the participation of pupil 
     services personnel in the same type of professional 
     development activities made available to teachers and 
     principals.''
       64. House bill contains no similar provision.
       SR (see Note 52).
       65. House bill contains no similar provision.
       SR (see Note 50).
       66. Similar coordination provision.
       LC
       67. Similar provisions.
       LC
       68. Senate amendment, but not House bill, requires a 
     description of how activities will be based on review of 
     relevant research and include explanation of why they are 
     expected to improve student performance and outcomes.
       HR with an amendment to strike ``relevant'' and insert 
     ``scientifically based'' and to strike ``performance and 
     outcomes'' and insert ``academic achievement''.
       69. Similar provisions.
       LC
       70. Senate amendment, but not House bill, requires a 
     description of how the SEA will ensure that activities are 
     aligned with State content standards, student performance 
     standards, and assessments
       HR with an amendment read as follows:
       ``(2) A description of how the State educational agency 
     will ensure that activities assisted under this subpart are 
     aligned with State academic content and achievement 
     standards, assessments, and State and local curriculum.''
       71. House bill, but not Senate amendment, requires a 
     description of how the State will use funds under this Part 
     to meet the requirements of section 1119(a)(2).
       SR (LC on reference to section 1119(a)(2)).
       72. Senate amendment, but not House bill, requires a 
     description of how SEA will use funds to improve the quality 
     of the State's teachers, principals, and assistant 
     principals, and the educational opportunities for students.
       HR with an amendment to strike ``, and the educational 
     opportunities for students''.
       73. Similar coordination provisions except House bill 
     includes 21st Century Schools (Title V, Part A--Subpart 2), 
     and Senate amendment includes Title II of HEA.
       SR with an amendment to read as follows:
       ``(3)(A) A description of how the State educational agency 
     will coordinate professional development activities 
     authorized under this part with professional development 
     activities provided under other Federal, State, and local 
     programs.
       (B) The application shall also describe the comprehensive 
     strategy that the State educational agency will take as part 
     of such coordination effort, to ensure that teachers are 
     trained in the utilization of technology so that technology 
     and its applications are effectively used in the classroom to 
     improve teaching and learning in all curriculum and content 
     areas, as appropriate.''
       74. House bill, but not Senate amendment, requires a 
     description of how the State will encourage the development 
     of proven, innovative strategies to deliver intensive 
     professional development programs such as through the use of 
     technology and distance learning.
       SR
       75. Similar provisions except House bill cites language 
     (Section 2033) defining a broad range of attributes for the 
     professional development that is to be supported and Senate 
     amendment includes input from paraprofessionals, 
     administrators, and other school personnel (but not 
     principals).
       HR/SR to combine language (LC on reference to section 
     2033):
       ``(6)(A) A description of how the State educational agency 
     will ensure compliance with section 2033 and how the 
     activities to be carried out are developed collaboratively 
     and are based on the input of teachers, principals, parents, 
     administrators, paraprofessionals, and other school 
     personnel.
       (B) In the case of a State where the State educational 
     agency is not the entity responsible for teacher professional 
     standards, licensing, and certification an assurance that the 
     state activities under this subpart are carried out in 
     conjunction with the entity responsible for these activities 
     under State law.''
       76. Senate amendment, but not House bill, requires a 
     description of how the SEA will ensure that the professional 
     development (including teacher mentoring) needs of teachers 
     will be met using funds under this Subpart and Subpart 2.
       HR
       77. Senate amendment, but not House bill, requires a 
     description of the SEA's annual measurable performance 
     objectives under Section 2141 (State Performance Objectives 
     and Accountability).
       HR with an amendment to strike ``performance''.
       78. House bill contains no similar provision (although 
     House bill (2) and Senate amendment (9) both have to do with 
     the quality objectives regarding teachers).
       HR with an amendment to read as follows (LC on references 
     to sections 1119 and 2141):
       ``(9) A description of how the State educational agency 
     will use funds under this part to meet the teacher and 
     paraprofessional requirements of section 1119 and how the 
     State educational agency will hold local educational agencies 
     accountable for meeting the measurable objectives under 
     section 2141.''
       79. Senate amendment, but not House bill, requires an 
     assurance that the SEA will consistently monitor the progress 
     of each LEA in meeting the performance objectives described 
     in Section 2142 (Local Performance Objectives and 
     Accountability).
       SR (see Note 172).
       80. Senate amendment, but not House bill, requires--in the 
     case of a State that has a charter school law that exempts 
     teachers from State certification and licensing 
     requirements--a description of the basis for the exemption.
       HR with an amendment to read as follows:
       ``(11) In the case of a State that has a charter school law 
     that exempts teachers from State certification and licensing 
     requirements, the State educational agency shall include as 
     part of their application the specific portion of the State 
     law which provides for this exemption.''
       81. House bill contains no similar provision regarding 
     participation by private school children and teachers.
       HR
       82. Similar provision except House bill includes language 
     regarding State notice and opportunity for a hearing.
       SR with an amendment to read as follows:
       ``(c) General Approval.--A State educational agency's 
     application submitted pursuant to subsection (a) shall be 
     deemed to be approved by the Secretary unless the Secretary 
     makes a written determination, prior to the expiration of the 
     120 day period beginning on the date that the Secretary 
     receives the application, that the application is in 
     violation of this part.
       ``(d) Disapproval.--The Secretary shall not finally 
     disapprove an application, except after giving the State 
     educational agency notice and opportunity for a hearing.
       ``(e) Special Rule.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     the provisions of this part, the Secretary shall:
       ``(1) implement the procedures described in subsection (d); 
     and
       ``(2) notify the State educational agency of the findings 
     of non-compliance where such notification shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to those 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(f) If the State educational agency does not respond to 
     the notification described in subsection (e)(2) within 45 
     days, such application is not approved.
       ``(g) If the State educational agency does respond to the 
     Secretary's notification described in subsection (e)(2) 
     within 45 days with the requested information necessary to 
     make the application compliant, the Secretary shall approve 
     or disapprove such application not later than 45 days 
     following its resubmission or the end of the 120 day period 
     described in subsection (c), whichever is later.''
       83. House bill contains no similar provision. Senate 
     amendment provides funds to the State agency for Higher 
     Education to make competitive subgrants to eligible 
     partnerships.
       HR with an amendment to read as follows and report 
     language:

            ``Subpart 3--Subgrants to Eligible Partnerships

     ``SEC. 2131. SUBGRANTS.

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

     ``SEC. 2132. APPLICATIONS.

       ``To be eligible to receive a subgrant under this subpart, 
     an eligible partnership shall

[[Page 25842]]

     submit an application to the State agency for higher 
     education at such time, in such manner, and containing such 
     information as the agency may require.

     ``SEC. 2133. USE OF FUNDS.

       ``(a) In General.--An eligible partnership that receives a 
     subgrant under section 2131 shall use the funds made 
     available through the subgrant for--
       ``(1) professional development activities in core academic 
     subjects to ensure that teachers and highly qualified 
     paraprofessionals, and, if appropriate, principals have 
     subject matter knowledge in the academic subjects that the 
     teachers teach including the use of computer related 
     technology to enhance student learning and that principals 
     and assistant principals have the instructional leadership 
     skills that will help such principals and assistant 
     principals work most effectively with teachers to help 
     students master core academic subjects; and
       ``(2) developing and providing assistance to local 
     educational agencies and individuals who are teachers, highly 
     qualified paraprofessionals, or principals of schools served 
     by such agencies, for sustained, high-quality professional 
     development activities that--
       ``(A) ensure that the individuals are able to use State 
     academic content standards, academic achievement standards, 
     and assessments to improve instructional practices and 
     improve student academic achievement;
       ``(B) may include intensive programs designed to prepare 
     such individuals who will return to a school to provide 
     instruction related to the professional development described 
     in subparagraph (A) to other such individuals within such 
     school; and
       ``(C) may include activities of partnerships between 
     institutions of 1 or more local educational agencies, 1 or 
     more schools served by such local educational agencies, and 1 
     or more institutions of higher education for the purpose of 
     improving teaching and learning at low-performing schools.
       ``(b) Coordination.--An eligible partnership that receives 
     a subgrant to carry out this subpart and a grant under 
     section 203 of the Higher Education Act of 1965 shall 
     coordinate the activities carried out under this subpart and 
     the activities carried out under section 203.

     ``SEC. 2134. DEFINITIONS.--

       In this subpart--
       ``(1) Eligible Partnership.--The term 'eligible 
     partnership' means an entity that--
       ``(A) shall include--
       ``(i) a private or State institution of higher education 
     and the division of the institution that prepares teachers 
     and principals;
       ``(ii) a school of arts and sciences; and
       ``(iii) a high need local educational agency; and
       ``(B) may include another local educational agency, a 
     public charter school, an elementary school or secondary 
     school, an educational service agency, a nonprofit 
     educational organization, another institution of higher 
     education, a school of arts and sciences within such an 
     institution, the division of such an institution that 
     prepares teachers and principals, a nonprofit cultural 
     organization, an entity carrying out a prekindergarten 
     program, a teacher organization, principal organization, or a 
     business.
       (2) Low-Performing School.--The term `low-performing 
     school' means an elementary school or secondary school that 
     is identified under section 1116.''
       Report Language:
       The Conferees intend that the partnerships described in 
     section 2131 [Subgrants to Eligible Partnerships] include 
     education councils and professional development schools, or 
     similar partnerships, including those funded under Section 
     203 of the Higher Education Act, that contain 1 or more local 
     educational agencies, acting on behalf of elementary schools 
     or secondary schools served by the agencies and 1 or more 
     institutions of higher education, including community 
     colleges. The purpose of these partnerships is to provide 
     professional development to teachers to ensure that the 
     teachers are prepared and meet high standards for teaching, 
     particularly by educating and preparing prospective teachers 
     in a classroom setting and enhancing the knowledge of in-
     service teachers while improving the education of the 
     classroom students. Such partnerships also substantially 
     increase interaction between faculty at institutions of 
     higher education and new and experienced teachers, 
     principals, and other administrators at elementary schools or 
     secondary schools, and provide support, including preparation 
     time, for such interaction.
       84. Similar provision.
       HR with an amendment to insert ``local educational 
     agencies'' after ``higher education,''.
       85. House bill contains no similar provision.
       HR with an amendment to insert ``Improve and'' before 
     ``upgrade'' and insert ``, training'' after ``recruiting''.
       86. Similar provisions (wording differs).
       HR
       87. Senate amendment contains no similar provision.
       HR
       88. Similar provisions (wording differs).
       SR
       89. House bill contains no similar provision.
       HR
       90. House bill contains no similar provision.
       HR
       91. House bill reserves funds for States to award grants to 
     partnerships (see Section 2023). Senate amendment authorizes 
     a separate competitive grant program with grants awarded by 
     the Secretary.
       HR with an amendment to read as follows:

         ``Subpart 1--Grants for Math and Science Partnerships

     ``SEC. 2211. GRANTS AUTHORIZED.

       ``(a) Grants by the Secretary.--In any fiscal year in which 
     the appropriations for this subpart are less than 
     $100,000,000, the Secretary is authorized to award grants, on 
     a competitive basis, to eligible partnerships to carry out 
     the authorized activities in section 2213.
       ``(b) Grants to States.--
       ``(1) In any fiscal year in which the appropriations for 
     this subpart equal or exceed $100,000,000, the Secretary is 
     authorized to make grants to State educational agencies to 
     enable the State educational agency to award grants, on a 
     competitive basis, to eligible partnerships to carry out the 
     authorized activities in section 2213.
       ``(2) Subject to subparagraph (1), the Secretary shall 
     allot the amount made available under this subpart for a 
     fiscal year among the States in proportion to the number of 
     children, aged 5 to 17, who reside within the State from 
     families with incomes below the poverty line.
       ``(3) In any fiscal year in which this subsection applies, 
     no State shall receive less than one half of one percent.''
       92. Senate amendment provides that the Secretary award 
     grants for 5 years. House bill permits grants between 2 and 5 
     years.
       HR with an amendment to strike ``5'' and insert ``3''.
       93. Senate amendment, but not House bill, contains a 
     provision that requires matching funds from States.
       HR with an amendment to read as follows:
       ``(c) Special Rule.--Grant funds received under this 
     subpart shall be used to supplement and not supplant funds 
     that would otherwise be used for activities funded under this 
     subpart.''
       94. Senate amendment requires that the Secretary give a 
     priority for high need LEAs here, while House bill definition 
     of ``eligible partnership'' requires that eligible 
     partnerships contain a high need LEA (Section 2026).
       SR
       95. Similar provision except that House bill is an 
     application to the State and the Senate amendment is an 
     application to the Secretary.
       HR with an amendment to read as follows:

     ``SEC. 2212. APPLICATION REQUIREMENTS.

       ``(a) In General.--Each eligible partnership desiring a 
     grant under this subpart shall submit an application to the 
     Secretary, if funds are awarded under section 2211(a), and to 
     the State educational agency, if funds are awarded under 
     section 2211(b), at such time, in such manner, and 
     accompanied by such information as the Secretary or State 
     educational agency, as the case may be, may require.''
       96. House bill requires a general assessment while the 
     Senate amendment delineates specific elements that may be 
     included in assessment of teacher quality and professional 
     development.
       HR with an amendment to read as follows and report 
     language:
       ``(1) the results of a comprehensive assessment of the 
     teacher quality and professional development needs of all the 
     schools and agencies participating in the eligible 
     partnership with respect to the teaching and learning of 
     mathematics and science.''
       Report Language:
       The application requirements for the partnership grants 
     include completing and reporting on a comprehensive 
     assessment of teacher quality in the relevant schools and 
     districts. Such an assessment should include relevant 
     information regarding the needs of the schools and districts 
     with respect to the quality of teaching and learning of 
     mathematics and science, including, but not limited to: (1) 
     information regarding the participation of students in 
     advanced courses in mathematics and science; (2) the 
     percentages of secondary school classes in mathematics and 
     science taught by teachers with academic majors in 
     mathematics and science (respectively); (3) the number and 
     percentage of mathematics and science teachers who 
     participate in content-based professional development 
     activities; and (4) the extent to which elementary teachers 
     have the necessary content knowledge to teach mathematics and 
     science.
       97. Similar provision except that Senate amendment includes 
     local standards.
       SR with an amendment to insert ``and achievement'' after 
     ``content''.
       98. Similar provisions.
       SR with an amendment to strike ``relevant'' and insert 
     ``scientifically based'' in House (3).
       99. Senate amendment, but not House bill, requires a 
     description of how the SEA and LEA will comply with 
     requirements regarding participation by private school 
     children and teachers.
       HR with an amendment to read as follows:
       ``(5) a description of how the eligible partnership will 
     continue the activities funded

[[Page 25843]]

     under this subpart after the original Federal grant has 
     ended.''
       100. House bill provides that the SEA, working in 
     conjunction with the State agency for higher education (if 
     such agencies are separate), shall award subgrants on a 
     competitive basis to eligible partnerships. Senate amendment 
     authorizes a separate competitive grant program with grants 
     awarded by the Secretary (see Section 2211).
       HR
       101. House bill, but not Senate amendment, provides that 
     the State shall award for a period of not less than 2 and not 
     more than 5 years.
       HR
       102. Similar provision.
       HR
       103. House bill contains no similar provision.
       HR
       104. House bill contains no similar provision.
       HR
       105. House bill contains no similar provision.
       HR
       106. Similar provision except that House bill is more 
     detailed in summer professional development workshop 
     requirements.
       SR with an amendment to insert ``including follow-up 
     training'' after ``institutes''.
       107. Similar provisions except that House bill is focused 
     on recruiting math, engineering and science students or 
     mathematicians, engineers and scientists to teaching and 
     Senate amendment is focused is on recruitment of math and 
     science majors.
       HR with an amendment to insert ``, engineering'' after 
     mathematics in Senate (3) and insert ``, engineering'' after 
     ``mathematics'' each place it appears in Senate (3)(A).
       108. House bill contains no similar provision.
       HR
       109. House bill contains no similar provision.
       HR with an amendment to insert ``, engineering'' after 
     ``mathematics''.
       110. House bill contains no similar provision.
       HR with an amendment to insert ``, engineering'' after 
     ``mathematics''.
       111. House bill contains no similar provision.
       HR with an amendment to insert ``, engineering'' after 
     ``mathematics'' and strike ``grounded in'' and insert ``based 
     on scientifically based''.
       112. House bill contains no similar provision.
       HR with an amendment to strike ``novice'' and insert 
     ``beginning and other''.
       113. Similar provision, except House bill includes 
     mathematicians and engineers, and states a purpose for the 
     activity.
       SR
       114. House bill contains no similar provision.
       HR with an amendment to strike ``master'' and insert 
     ``exemplary''.
       115. House bill contains no similar provision.
       SR
       116. House bill contains no similar provision.
       SR
       117. Senate amendment provides for a priority for high need 
     LEAs only for the mastery incentive system (House bill 
     requires that all partnerships contain a high need LEA).
       SR
       118. House bill, but not Senate amendment, requires States 
     to give priority to applications seeking to fund summer 
     workshops.
       HR
       119. House bill contains no similar provision.
       SR
       120. House bill contains no similar provision.
       HR with an amendment to read as follows:
       ``(12) Training teachers and developing programs to 
     encourage young women and other underrepresented individuals 
     in mathematics and science careers (including engineering and 
     technology) to pursue postsecondary degrees in majors leading 
     to such careers.''
       121. Senate amendment does not contain a provision 
     regarding coordination with the Higher Education Act.
       SR with an amendment to read as follows (see Note 299):
       ``(e) Coordination and Consultation.--
       ``(1) Partnerships receiving grants under section 203 of 
     the Higher Education Act of 1965 (20 U.S.C. 1023) shall 
     coordinate the use of such funds with any related activities 
     carried out by such partnership with funds made available 
     under this subpart; and
       ``(2) In carrying out the activities authorized by this 
     subpart, the Secretary shall consult and coordinate 
     activities with the Director of the National Science 
     Foundation, particularly with respect to the appropriate 
     roles for the Department and the Foundation in the conduct of 
     summer workshops, institutes, or partnerships to improve 
     mathematics and science teaching in elementary schools and 
     secondary schools.''
       122. Similar provision, except all elements listed for 
     Senate amendment are required; only House bill (1) is 
     required.
       SR with an amendment to read as follows (combine Notes 122 
     through 128):

     ``SEC. 2024. EVALUATION AND ACCOUNTABILITY PLAN.

       ``(a) In General.--Each eligible partnership receiving a 
     subgrant under this subpart shall develop an evaluation and 
     accountability plan for activities assisted under this 
     subpart that includes rigorous objectives that measure the 
     impact of activities funded under this subpart.
       ``(b) Contents.--The plan--
       ``(1) shall include measurable objectives to increase the 
     number of mathematics and science teachers who participate in 
     content-based professional development activities; and
       ``(2) shall include measurable objectives for improved 
     student performance on State mathematics and science 
     assessments or, where applicable, an International Math and 
     Science Study assessment;
       ``(3) may include objectives and measures for--
       ``(A) increased participation by students in advanced 
     courses in mathematics and science;
       ``(B) increased percentages of elementary school teachers 
     with academic majors or minors, or group majors or minors, in 
     mathematics, engineering, or the sciences;
       ``(C) increased numbers of mathematics and science teachers 
     who participate in content-based professional development 
     activities; and
       ``(D) increased percentages of secondary school classes in 
     mathematics and science taught by teachers with academic 
     majors in mathematics and science, respectively.''
       123. House bill, but not Senate amendment, requires plan to 
     include goals related to increasing the number of math and 
     science teachers participating in content-based professional 
     development.
       SR (see Note 122).
       124. Similar provision, except Senate amendment includes 
     performance on TIMSS.
       SR (see Note 122).
       125. Identical provisions.
       SR (see Note 122).
       126. Senate amendment contains no similar provision.
       SR (see Note 122).
       127. House bill contains no similar provision.
       SR (see Note 122).
       128. Identical provisions.
       SR (see Note 122).
       129. Similar provision.
       LC
       130. Similar provision. House bill language applies only to 
     subgrants made for 5-year period (House bill permits grants 
     between 2 and 5 years to be made; only 5 year grants can be 
     made under Senate amendment.
       LC with an agreement to strike ``performance''.
       131. Similar provision except House bill applies only to 
     subgrants made for 5-year period (House bill permits grants 
     between 2 and 5 years; only 5 year grants can be made under 
     Senate amendment).
       HR/SR (delete language).
       132. Similar provision.
       HR with an amendment to insert ``if funds are awarded under 
     section 2211(a)'' after ``a State educational agency'' (LC on 
     reference to section 2211(a)).
       133. House bill does not specifically include an 
     engineering department, but identifies private and state-
     supported public institutions of higher education; Senate 
     amendment generally refers to institutions of higher 
     education.
       HR
       134. House bill, but not Senate amendment, requires all 
     partnerships to include a high need LEA.
       SR
       135. House bill allows another entire higher education 
     institutions or teaching training departments within them. 
     Senate amendment limits eligibility to only specific 
     departments of higher education institutions.
       HR
       136. House bill, but not Senate amendment, specifically 
     includes charter schools and consortia.
       SR
       137. Identical provision.
       LC
       138. Similar provision except that Senate amendment 
     identifies a broader array of entities.
       HR with an amendment to redraft and include report 
     language:
       ``(iv) a nonprofit or for-profit organization of 
     demonstrated effectiveness.''
       Report Language:
       The conferees recognize that a nonprofit or for-profit 
     organization of demonstrated effectiveness may include a 
     museum, research institution, or a or high-impact public 
     coalition composed of leaders from business, kindergarten 
     through grade 12 education, institutions of higher education, 
     public policy organizations, and other organizations.
       139. Senate amendment defines ``high need local educational 
     agency'' here.
       HR/SR with an agreement to move redrafted definition of 
     `high need local educational agency to Title II definitions 
     (see Note 297).
       140. Similar definition (wording differences).
       LC
       141. Similar provision.
       LC
       142. Senate amendment, but not House bill, contains special 
     rule to allow grants to be

[[Page 25844]]

     used to hire teachers to reduce class size (House bill groups 
     allowable activities together and also allows hiring of 
     teachers).
       SR
       143. House bill list of uses is permissive. Senate 
     amendment requires LEAs to carry out at least 1 of these 
     activities.
       HR
       144. Senate amendment, but not House bill, allows LEAs to 
     carry out these activities through a grant or contract with a 
     for-profit or nonprofit entity.
       HR
       145. House bill is similar to Senate amendment Section 
     2123(a) (Special Rule). Senate amendment specifies retention 
     as a focus on these activities (in subsequent provision House 
     bill addresses retention).
       HR with an amendment to read as follows:
       ``(8)(A) Developing and implementing mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers who will be assigned teaching positions 
     within their field, principals, and pupil services personnel.
       ``(B) Special rule.--Funds under this paragraph may be used 
     for pupil services personnel only in cases in which the local 
     educational agency deems appropriate, if the local 
     educational agency is making progress toward meeting the 
     objectives described in section 2141(a) [Accountability], and 
     in a manner consistent with mechanisms to assist schools in 
     effectively recruiting and retaining highly qualified 
     teachers and principals.''
       146. Similar recruitment activities except that House bill 
     allows funds to be used to recruit individuals who are 
     underrepresented in the teaching field and the Senate 
     amendment allows funds to be used to recruit teachers in 
     order to reduce class size and special education teachers.
       SR with an amendment to read as follows:
       ``(5) Initiatives to assist in recruiting, particularly 
     activities that have proven effective in retaining highly 
     qualified teachers, and hiring highly qualified teachers who 
     will be assigned teaching positions within their field, 
     including--
       ``(A) providing scholarships, signing bonuses or other 
     financial incentives, such as differential pay, for teachers 
     to teach in schools or in academic subject areas in which 
     there exists a shortage of such highly qualified teachers 
     within a school or the local educational agency;
       ``(B) recruiting and hiring highly qualified teachers to 
     reduce class size, particularly in the early grades;
       ``(C) establishing programs that--
       ``(i) train and hire regular and special education teachers 
     (which may include hiring special education teachers to team-
     teach in classrooms that contain both children with 
     disabilities and nondisabled children);
       ``(ii) train and hire teachers of special needs children, 
     who are highly qualified as well as teaching specialists in 
     core academic subjects who will provide increased 
     individualized instruction to students;
       ``(iii) recruit qualified professionals from other fields, 
     including highly qualified paraprofessionals and provide such 
     professionals with alternative routes to teacher 
     certification, including hiring policies that ensure 
     comprehensive recruitment efforts as a way to expand the 
     applicant pool, such as through identifying teachers 
     certified through alternative routes, coupled with a system 
     of intensive screening designed to hire the most qualified 
     applicant; and
       ``(iv) provide increased opportunities for minorities, 
     individuals with disabilities, and other individuals 
     underrepresented in the teaching profession.''
       147. House bill contains no similar provision.
       HR with an amendment to read as follows and report 
     language:
       (1) Providing professional development activities that 
     improve the knowledge of teachers and principals, and, where 
     appropriate paraprofessionals, concerning--
       ``(A) 1 or more of the core academic subjects that the 
     teachers and principals teach;
       ``(B) effective instructional strategies, methods, and 
     skills and use of State academic content standards, student 
     academic achievement standards, and assessments to improve 
     teaching practices and student achievement;
       ``(C) effective instructional practices that--
       ``(i) involve collaborative groups of teachers and 
     administrators;
       ``(ii) provide training in how to teach and address the 
     needs of students with different learning styles, 
     particularly students with disabilities, students with 
     special learning needs (including those who are gifted and 
     talented) and students with limited English proficiency;
       ``(iii) provide training in methods of improving student 
     behavior in the classroom and how to identify early and 
     appropriate interventions to help children described in (ii) 
     learn;
       ``(iv) provide training to enable teachers and principals 
     to involve parents in their child's education, especially 
     parents of LEP and immigrant children; and
       ``(v) provide training on how to understand and use data 
     and assessments to improve classroom practice and student 
     learning.''
       Report Language:
       The Conferees note that effective instructional practices 
     that involve collaborative groups of teachers and 
     administrators includes such strategies as the provision of 
     dedicated time for collaborative lesson planning and 
     curriculum development meetings; consultation with exemplary 
     teachers; team teaching, peer observation, and coaching; 
     provision of short-term and long-term visits to classrooms 
     and schools; the establishment and maintenance of local 
     professional development networks that provide a forum for 
     interaction among teachers and administrators about content 
     knowledge and teaching and leadership skills; and the 
     provision of release time as needed for such activities.
       The Conferees recognize that effective professional 
     development strategies, methods, and skills may include 
     implementing a year-round school schedule that allows the 
     local educational agency to increase pay for teachers.
       148. House bill specifies activities to promote retention 
     of highly qualified teachers and principals, particularly in 
     schools with high percentage of low-achieving students. 
     Senate amendment provides for induction and support for 
     teachers, principals, and assistant principals during their 
     first 3 years of employment as teachers, principals, or 
     assistant principals.
       SR with an amendment to: strike ``newly hired'' and ``such 
     as'' in House (A); strike ``master'' and insert ``exemplary'' 
     in House (A); redesignate Senate (4) as new House (B); 
     redesignate House (B) as (C); and redesignate House (C) as 
     (D) and insert ``and students with disabilities'' after 
     ``minority groups''.
       149. House bill focuses mentoring on newly hired teachers 
     as part of effort to retain highly qualified teachers and 
     principals. Senate amendment specifies that teacher and 
     principal mentoring is an allowable LEA activity.
       SR on House (3)(A) with an amendment to read as follows (LC 
     on references to section 2033 and part D):
       ``(A) innovative professional development programs (which 
     may be through partnerships including institutions of higher 
     education), including programs that train teachers and 
     principals to integrate technology into curricula and 
     instruction to improve teaching, learning, and technology 
     literacy, are consistent with the requirements of section 
     2033, and are coordinated with part D;''
       SR on House (3)(B)
       150. Similar provisions (wording differs).
       LC with agreement to add report language:
       Report Language:
       The Conferees note that locally negotiated and 
     collaboratively designed programs for performance based pay 
     systems are an effective type of merit based pay in that 
     performance based pay systems reward teachers for working 
     together to raise student achievement for all students 
     throughout the school.
       151. Senate amendment contains no similar provisions.
       SR with an amendment to strike House (4) and strike 
     ``exceptionally'' in House (5).
       152. Identical provision.
       LC with an agreement to strike ``master'' and insert 
     ``exemplary''.
       153. House bill, but not Senate amendment, stipulates that 
     if funding for partnerships under Subpart 2 is less than 15% 
     of the State allocation minus state reservation for 
     activities, administration and planning, the State shall use 
     not less than the amount expended by the agency under section 
     2206(b) of this Act (as in effect on the day before the date 
     of the enactment of the No Child Left Behind Act of 2001), 
     for the fiscal year preceding the year in which such 
     enactment occurs, to carry out professional development 
     activities in mathematics and science.
       HR
       154. House bill contains no similar provision.
       SR
       155. House bill contains no similar provision.
       HR with an amendment to read as follows (see Note 297 for 
     definition of exemplary teacher):
       ``(7) Carrying out programs and activities related to 
     exemplary teachers.''
       156. Similar provision.
       HR
       157. Senate amendment, but not House bill, requires 
     applications to be based on the needs assessment.
       HR
       158. House bill contains no similar provisions.
       HR with amendment to:
       Strike ``content standards, performance standards'' in 
     Senate (b)(1)(A)(i) and insert ``academic standards, student 
     academic achievement'';
       Strike ``relevant'' in Senate (b)(1)(B) and insert 
     ``scientifically based''; and
       Strike ``and student performance'' in Senate (b)(2).
       159. Similar provisions except House bill includes schools 
     with large average class size.
       SR with an agreement to use ``highly qualified''.
       160. Similar provision.
       SR
       161. Similar provisions although House bill includes 21st 
     Century Schools (Title V, Part A, Subpart 2), and Senate 
     amendment includes Title II of HEA.

[[Page 25845]]

       SR with an amendment to strike all after ``local programs'' 
     in House (2).
       162. House bill contains no similar provision.
       HR with an amendment to combine with Note 164:
       ``(5) A description of the professional development 
     activities that will be made available to teachers and 
     principals under this subpart and how the local educational 
     agency will ensure that the professional development (which 
     may include teacher mentoring) needs of teachers and 
     principals will be met using funds under this subpart.''
       163. Senate amendment contains no similar provision.
       SR with an amendment to strike ``to utilize technology to 
     improve teaching and learning'' and insert ``to integrate 
     technology into curricula and instruction to improve 
     teaching, learning, and technology literacy'' (see Note 149).
       164. House bill contains no similar provision.
       SR
       165. Similar provisions. House bill only applies to 
     application preparation and specifies administrators. Senate 
     amendment applies to planning activities and application 
     preparation and includes paraprofessionals and identifies 
     other relevant school personnel.
       HR
       166. House bill contains no similar provision.
       HR
       167. House bill contains no similar provision.
       SR
       168. House bill contains no similar provision.
       SR (see Note 172).
       169. House bill contains no similar provision.
       HR with an amendment to read as follows:
       ``(11) A description of how the local educational agency 
     will provide training to enable teachers to--
       ``(A) teach and address the needs of children with 
     different learning styles, particularly students with 
     disabilities, students with special learning needs (including 
     those who are gifted and talented), and students with limited 
     English proficiency;
       ``(B) improve student behavior in the classroom and 
     identify early and appropriate interventions to help children 
     described in (A) learn;
       ``(C) involve parents in their child's education; and
       ``(D) understand and use data and assessments to improve 
     classroom practice and student learning.''
       170. House bill contains no similar provision.
       HR
       171. House bill contains no similar provisions on needs 
     assessment.
       HR with an amendment to strike ``student performance'' in 
     (2) and insert ``student academic achievement''.
       172. Senate amendment, but not House bill, contains 
     accountability provisions for Title II. House bill contains 
     accountability provisions in Title I and requires that all 
     teachers be ``fully qualified'' by December 31, 2005.
       HR with an amendment to read as follows:

     ``SEC. XXXX. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

       ``(a) Improvement Plan.--After the second year of the plan 
     described in section 1119(a)(2), if a State educational 
     agency, based on the reports described under section 
     1119(b)(1), determines that a local educational agency in the 
     State has failed to make progress toward meeting the 
     measurable objectives described in section 1119(a)(2), such 
     local educational agency shall develop an improvement plan to 
     enable the agency to meet such measurable objectives that 
     specifically addresses issues that prevented the agency from 
     meeting such measurable objectives.
       ``(b) Technical Assistance.--During the development of the 
     improvement plan described in subsection (a) and throughout 
     its implementation, the State educational agency shall--
       ``(1) provide technical assistance to the local educational 
     agency; and
       ``(2) provide technical assistance, if applicable, to 
     schools served by the local educational agency that need 
     assistance to enable the local educational agency to meet the 
     measurable objectives described in section 1119(a)(2).
       ``(c) Accountability.--After the third year of the plan 
     described in section 1119(a)(2), if the State educational 
     agency determines, based on the reports described under 
     section 1119(b)(1), that the local educational agency has 
     failed to make progress toward meeting the measurable 
     objectives described in section 1119(a)(2), and has failed to 
     make adequate yearly progress as described under section 
     1111(b)(2), for 3 consecutive years, the State educational 
     agency shall enter into an agreement with such agency on the 
     use of its funds under this part. As part of this agreement, 
     the State educational agency shall--
       ``(1) develop, in conjunction with the local educational 
     agency, teachers, and principals, professional development 
     strategies and activities, based on scientifically based 
     research, that the local educational agency will use to meet 
     the measurable objectives described under section 1119(a)(2) 
     and require such agency to utilize such strategies and 
     activities; and
       ``(2) prohibit the use of funds received under title I, 
     part A to fund any paraprofessional hired after such 
     determination is made by the State educational agency in 
     subsection (c), except that if the local educational agency 
     can demonstrate that a significant influx of population has 
     substantially increased student enrollment, or can 
     demonstrate an increased need for translators or assistance 
     with parental involvement activities, the State may allow the 
     hiring of new paraprofessionals, under title I, part A, to 
     address these specific needs.
       ``(d) During the development of the strategies and 
     activities described in subsection (c)(1), the State 
     educational agency shall, in conjunction with the local 
     educational agency, provide funds directly to a school or 
     schools served by such local educational agency, for the 
     teachers to choose, in continuing consultation with the 
     principal, professional development consistent with the 
     requirements of [reference ``professional development'' 
     definition in General Provisions] and coordinated with other 
     reform efforts at the school.''
       173. House bill contains no similar provision.
       SR with agreement to send joint House and Senate letter to 
     GAO.
       174. House bill requires that professional development meet 
     the requirements of the state Title I plan that all teachers 
     are fully qualified by December 31, 2005 and contains similar 
     language to House bill Title I, Section 1119(A).
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       175. House bill contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       176. Similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       177. House bill contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       178. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       179. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       180. House bill contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       181. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       182. House bill requires that professional development 
     activities be tied to ``scientifically based research.'' 
     Senate amendment requires that activities be based on the 
     ``best available research.''
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       183. Similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       184. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       185. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       186. House bill calls for professional development to 
     enable teachers and principals to effectively use technology 
     while Senate amendment seeks to strengthen teachers' ability 
     to integrate technology into the curriculum.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       187. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       188. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       189. Similar provision (wording differs).
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       190. Similar provision (wording differs).
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       191. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.

[[Page 25846]]


       192. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       193. Senate amendment contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     `professional development' to General Provisions.
       194. Senate amendment contains no similar provision 
     regarding Teacher Opportunity Payments.
       HR
       195. Senate amendment contains no similar provisions.
       HR
       196. House bill incorporates the Troops-to-Teachers program 
     into the ESEA. Senate amendment amends current law (Troops-
     to-Teachers Program Act of 1999--Title XVII of the National 
     Defense Authorization Act of Fiscal Year 2000). [References 
     to Senate language regarding Troops-to-Teachers reflect 
     current law language as amended by Senate amendment].
       SR
       197. House bill contains no similar provision.
       HR
       198. Similar provision. Senate amendment amends Section 
     1701 to define ``administering Secretary'' to mean Secretary 
     of Education (under House bill, by incorporation in ESEA, 
     ``Secretary'' is the Secretary of Education).
       SR
       199. Senate amendment amends Section 1701 to strike 
     definition of ``alternative certification or licensure 
     requirement'' from current law (House bill has no definition 
     of that phrase).
       SR
       200. Senate amendment amends Section 1701 to add active and 
     former members of the Coast Guard to definition of ``member 
     of Armed Forces'' (House bill specifies that program is for 
     members and former members of the Armed Forces which includes 
     Coast Guard).
       SR
       201. Similar provisions. House bill specifies members and 
     former members of the Armed Forces who meet requirements of 
     Section 2042; Senate amendment specifies members of the Armed 
     Forces who retire.
       SR
       202. House bill, but not Senate amendment, uses term 
     ``fully qualified'' to describe teachers.
       SR with an amendment to strike ``fully'' and insert 
     ``highly''.
       203. Senate amendment amends current law to add assistance 
     to members of the active reserve forces to activities. House 
     bill has no comparable language.
       SR (see Note 213).
       204. House bill specifies employment in schools or as 
     vocational or technical teachers.
       SR
       205. Senate amendment specifies employment by LEAs with 
     shortages.
       HR
       206. Similar provisions except under House bill, the 
     memorandum of agreement is between the Secretaries of 
     Education and Defense. Under Senate amendment, the memorandum 
     of agreement is between administering Secretary (Secretary of 
     Education) and DANTES.
       SR
       207. Senate amendment, but not House bill, permits 
     administering Secretary to retain funds to identify LEAs with 
     concentrations of low-income children or teacher shortages, 
     or States with alternative certification.
       SR
       208. Similar provision. House bill provision is similar to 
     Section 1703(d) of current law as amended by Senate 
     amendment.
       LC
       209. House bill requires Secretary of Education to provide 
     information to Secretary of Defense for dissemination. Senate 
     amendment has no comparable requirement for Secretary of 
     Education although it requires Secretary of Defense to 
     disseminate the information.
       SR
       210. Similar provisions. House bill characterizes placement 
     and referral services as ``regarding employment 
     opportunities.'' House bill extends services to those leaving 
     active duty under ``other than adverse conditions,'' while 
     Senate amendment specifies honorable discharge. (House bill 
     in Section 2042(c)(3) requires honorable discharge for 
     eligibility).
       HR
       211. Senate amendment, but not House bill, specifies that 
     the members have to meet educational qualifications.
       HR
       212. House bill contains no similar provision to this new 
     Subsection in Section 1702.
       LC (see Note 206).
       213. Provisions governing eligible members differ between 
     House and Senate language. House bill covers several specific 
     groups of members; Section 1703(a) as amended by Senate 
     targets program to retirees from October 1, 2000 to September 
     30, 2006 or members of active reserve.
       SR with an amendment add new paragraph at the end of 
     (a)(1):
       ``(C) on or after the date of the enactment of the No Child 
     Left Behind Act of 2001, has an approved date of voluntary 
     retirement from the reserve and, as of the date the member 
     submits an application to participate in the Program, has one 
     year or less of reserve duty remaining before retirement.''
       SR with an amendment to (a)(2) to read as follows:
       ``(2) Any member who, on or after the date of the enactment 
     of the No Child Left Behind Act of 2001--
       ``(A)(i) is separated or released from active duty after 
     six or more years of continuous active duty immediately 
     before the separation or release;
       ``(ii) has a total of ten years active or reserve duty; or
       ``(iii) has a combined total of ten years active duty and 
     reserve service; and
       ``(B) executes a reserve commitment agreement for a period 
     of three years under subsection (e)(2).''
       214. Similar provisions.
       LC
       215. House bill specifies that application needs to be 
     submitted during specified time period. Senate amendment 
     amends section 1704(a) to strike ``on a timely basis.''
       SR
       216. No comparable provision in current law as amended by 
     Senate.
       SR
       217. House bill provision is similar to section 1703(b) of 
     current law as amended by Senate. Wording differs in some 
     places. Primary difference is that House bill reduces from 10 
     to 6 the number of years of military experience in a 
     vocational or technical field required as one option for 
     member applying for placement as vocational or technical 
     teacher.
       SR
       218. Section 1703(c) of current law as amended by Senate 
     requires member's last period of service to have been 
     characterized as honorable. House bill has similar language 
     and adds provision directed to individuals selected to 
     participate prior to retirement, separation, or release from 
     active duty.
       SR
       219. House bill provision similar to section 1704(b) of 
     current law as amended by Senate, but Senate amendment 
     includes as selection priority members with educational or 
     military experience in another subject area identified as 
     important for national educational objectives.
       SR
       220. House bill provision similar to section 1704(c) of 
     current law as amended by Senate (wording differs).
       LC
       221. No comparable provision in current law as amended by 
     Senate.
       SR (see Note 213).
       222. House bill similar to section 1704(d) as amended by 
     Senate.
       LC
       223. House bill, but not Senate amendment, uses term 
     ``fully qualified'' to describe teachers.
       SR with an amendment to strike ``fully'' and insert 
     ``highly''.
       224. Both House bill and Senate amendment would reduce the 
     required commitment in current law from 4 years down to 3 
     years, only Senate permits Secretary of Defense to waive the 
     3 year commitment.
       HR
       225. House bill, but not Senate amendment, refers to 
     charter schools.
       SR with an amendment to strike ``fully'' and insert 
     ``highly'' and insert ``high need'' after ``years with a''.
       226. Similar provisions.
       LC
       227. House bill refers to an institution of higher 
     education; current law as amended refers to eligible 
     institution.
       SR
       228. House bill, but not Senate amendment, uses term 
     ``fully qualified.''
       SR with an amendment to strike ``fully'' and insert 
     ``highly''.
       229. House bill provision same as current law section 
     1705(a) as amended by Senate.
       LC
       230. House bill, but not Senate amendment, has limit on 
     total number of stipends.
       SR with an amendment to strike ``3,000'' and insert 
     ``5,000''.
       231. House bill provision similar to current law section 
     1705(b) as amended by Senate.
       LC
       232. House bill, but not Senate amendment, uses term 
     ``fully qualified.''
       SR with an amendment to strike ``fully'' and insert 
     ``highly''.
       233. House bill reduces commitment to 3 years; current law 
     as amended by Senate does not.
       SR
       234. House bill, but not Senate amendment, has limit on 
     total number of bonuses.


       SR with an amendment to strike ``1,000'' and insert 
     ``3,000''.
       235. House bill specifies that high need school must meet 1 
     or more of 3 criteria involving students counted for purposes 
     of making Title I grants, students qualifying for IDEA 
     assistance, or any other criteria established by Secretary in 
     consultation with National Assessment Governing Board. 
     Current law as amended by Senate stipulates that school must 
     be in a low-income district as defined by the Secretary.

[[Page 25847]]

       SR with an amendment to strike House (C).
       236. Identical provision.
       LC
       237. House bill provisions regarding reimbursement 
     required, amount of reimbursement, treatment of obligation, 
     exceptions to reimbursement requirement, and relationship to 
     educational assistance under Montgomery GI Bill are similar 
     to current law section 1705(d)(1)-(3) as amended by Senate 
     (wording differs).
       LC
       238. Current law section 1705(d)(4) describes how interest 
     is to be calculated on amounts owed by participants; House 
     has no comparable language.
       SR
       239. Similar provision.
       LC
       240. House bill and current law section 1706(a) as amended 
     by Senate amendment are similar; terms used to reference 
     Secretary differ.
       LC
       241. House bill and current law section 1706 (b) as amended 
     by Senate are similar, but Senate amendment does not include 
     the $4 million obligation limitation and does not refer to 
     ``former members.''
       SR with an amendment to strike ``4,000,000'' and insert 
     ``5,000,000''.
       242. Similar provision except House bill describes purpose 
     in more detail.
       SR
       243. House bill refers to vocational or technical teachers; 
     current law as amended by Senate does not.
       SR
       244. Virtually identical provisions.
       LC
       245. House bill, but not Senate amendment, provides that 
     the program must address additional requirements set by 
     Secretary.
       SR
       246. Similar provisions. House bill includes States among 
     entities eligible to submit applications and Senate amendment 
     gives administering Secretary discretion over the timing and 
     manner of and information in, applications.
       LC
       247. House bill provides that continuation of program is 
     not responsibility of the Secretary. Senate amendment permits 
     higher education institutions wanting to continue program to 
     use tuition charges to do so.
       HR/SR with an agreement to keep provisions in House bill 
     and Senate amendment.
       248. House bill, but not current law as amended by Senate, 
     has funding limitation.
       SR with an amendment to strike ``5,000,000'' and insert 
     ``10,000,000''.
       249. Senate amendment has no comparable provision.
       SR with an amendment to: strike ``each year'' and insert 
     ``2006''; strike ``each'' after ``Comptroller General 
     shall''; and strike House (c).
       250. Current law as amended by the Senate only defines 
     ``administering Secretary,'' ``member of the Armed Forces,'' 
     and ``State.''
       SR
       251. House bill authorizes $50 for both Troops-to-Teachers 
     and Transition-to-Teaching programs combined. Senate 
     amendment authorizes $50 million solely for the Troops-to-
     Teachers program.
       HR/SR with an agreement to authorize $150 million for both 
     Troops-to-Teachers and Transition to Teaching programs 
     combined of which up to $30 million shall be reserved for 
     Troops-to-Teachers. (see Note 289)
       252. Senate amendment includes a Transition to Teaching 
     authority among the required national activities that the 
     Secretary must support (this is separate from the Careers to 
     Classrooms authority). House bill Transition to Teaching 
     program is delineated with features similar to the Senate 
     Careers to Classrooms. Those two programs are aligned below.
       SR with an amendment to: strike Senate (d); strike 
     ``Careers to Classrooms'' in heading of Senate (e) and insert 
     ``Transition to Teaching'' (LC throughout); and insert 
     continuation of award language for current grantees.
       253. House bill refers to high need LEAs and career 
     changers, and identifies specific subject areas. Senate 
     amendment addresses its purposes to mid career professionals, 
     recent college graduates, and paraprofessional, and 
     references high need schools.
       HR with an amendment to: strike ``and certain 
     paraprofessionals''; and insert ``(including highly qualified 
     paraprofessionals)'' after ``mid-career professionals''.
       254. Senate amendment, but not House bill, has development 
     and expansion of alternative certification as a purpose.
       HR
       255. House bill defines ``program participants'' and Senate 
     amendment defines ``eligible participant'' differently 
     (Senate amendment definition establishes more specific 
     criteria that vary depending upon the level of instruction.).
       HR with an amendment to read as follows:
       ``(A) Eligible participant.--The term `eligible 
     participant' means--
       ``(i) an individual with substantial demonstrable career 
     experiences, including a highly qualified paraprofessional; 
     or
       ``(ii) an individual who is a graduate of an institution of 
     higher education who--

       ``(A) has graduated not later than 3 years before applying 
     to an agency or consortium to teach under this subsection; 
     and
       ``(B) in the case of an individual wishing to teach in a 
     secondary school, has completed an academic major (or courses 
     totaling an equivalent number of credit hours) in the 
     academic subject that the individual will teach.''

       256. House bill contains no similar provision.
       HR/SR with an agreement to move redrafted definition of 
     ``high need local educational agency'' to Title II 
     definitions (see Note 297).
       257. House bill contains no similar provision.
       HR
       258. House bill contains no similar provision.
       SR
       259. House bill contains no similar provision.
       SR (definition of ``poverty line'' moved to General 
     Provisions).
       260. House bill authorizes grants to higher education 
     institutions; Senate amendment has priority for 
     collaborations with higher education institution or nonprofit 
     organization with a proven record regarding teacher 
     recruitment and retention.
       HR with an amendment to read as follows:
       ``(3) Grant program.--
       ``(A) In general.--The Secretary shall establish a program 
     to make grants on a competitive basis to eligible entities to 
     develop State and local teacher corps or other programs to 
     establish, expand, or enhance teacher recruitment and 
     retention efforts.
       ``(B) Eligible entity.--An eligible entity described in (A) 
     means a:
       ``(i) State educational agency;
       ``(ii) high need local educational agency;
       ``(iii) for-profit and nonprofit organization that has a 
     proven record of effectively recruiting and retaining highly 
     qualified teachers in partnership with a high need local 
     educational agency or a State educational agency;
       ``(iv) institution of higher education in partnership with 
     a high need a local educational agency or a State educational 
     agency;
       ``(v) regional consortia of State educational agencies; or
       ``(vi) consortia of high need local educational agencies.
       ``(C) Priority.--In making such a grant, the Secretary 
     shall give priority to an eligible entity that applies for a 
     grant in partnership with a high need local educational 
     agency or a State educational agency.''
       Report Language:
       For a grant that involves a for-profit organization, 
     nonprofit organization, or an institution of higher 
     education, the conferees intend that such entities may apply 
     for and receive a grant from the Secretary. In doing so, such 
     entities shall describe in their application how the entity 
     will partner with a high need local educational agency or 
     State educational agency.
       261. Similar provision.
       LC
       262. House bill contains no similar provision.
       HR with an amendment to read as follows:
       ``(B) Contents.--The application shall--
       ``(i) describe the target recruitment group upon which the 
     applicant will focus its recruitment efforts and the 
     characteristics of the target group that shows the knowledge 
     and experience of its members and demonstrates that the 
     members are eligible to meet the purpose of this section;
       ``(ii) describe how the applicant will use funds received 
     under this subsection to develop a teacher corps or other 
     program to recruit and retain highly qualified mid-career 
     professionals, including highly qualified paraprofessionals, 
     recent college graduates and graduate school graduates, as 
     highly qualified teachers in high need schools;
       ``(iii) explain how the program will meet the relevant 
     State laws (including regulations) related to teacher 
     certification and licensing and facilitate the certification 
     or licensing of such teachers;
       ``(iv) describe how the grant will increase the number of 
     highly qualified teachers in high need schools in high need 
     school districts (that are urban or rural) and in high need 
     academic subjects in the jurisdiction served by the 
     applicant; and
       ``(v) a description of how the applicant will collaborate, 
     as needed, with other institutions, agencies, or 
     organizations to recruit, particularly through activities 
     that have proven effective in retaining highly qualified 
     teachers, train, place, support, and provide teacher 
     induction programs to program participants under this 
     section, including evidence of commitment of those 
     institutions, agencies, or organizations to the applicant's 
     program.''
       263. Senate amendment contains no similar provision.

[[Page 25848]]

       HR/SR (provisions redrafted under Note 262).
       264. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       265. Similar provision.
       HR/SR (provisions redrafted under Note 262).
       266. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       267. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       268. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       269. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       270. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       271. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       272. House bill contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       273. House bill requires collaboration in implementation of 
     the program. Senate amendment requires collaboration in 
     development of the application and delineates a broader range 
     of individuals and entities.
       HR/SR (provisions redrafted under Note 262).
       274. Senate amendment contains no similar provision.
       HR/SR (provisions redrafted under Note 262).
       275. House bill contains no similar provision.
       HR
       276. Similar provisions (wording differs).
       LC
       277. House bill contains no similar provision.
       HR
       278. Senate amendment, but not House bill, has general 
     statement of uses of funds.
       HR with an amendment to read as follows:
       ``(8) Uses of funds.--
       ``(A) In general.--An applicant that receives a grant under 
     this subsection shall use the funds made available through 
     the grant to develop a teacher corps or other program in 
     order to establish, expand, or enhance a teacher recruitment 
     program for highly qualified mid-career professionals, 
     including highly qualified paraprofessionals, and graduates 
     of institutions of higher education, who are eligible 
     participants, including activities that provide alternative 
     routes to teacher certification.
       ``(B) Authorized activities.--The applicant shall use the 
     funds to carry out a program that includes 2 or more of the 
     following activities--
       ``(i) Providing scholarships, stipends, bonuses, and other 
     financial incentives, that are linked to participation in 
     activities that have proven effective in retaining teachers 
     in higher need school districts, to all eligible 
     participants, not to exceed $5,000 per participant;
       ``(ii) Pre-and post-placement induction or support 
     activities that have proven effective in recruiting and 
     retaining teachers such as mentoring, internships, high 
     quality, pre-service course work and high quality, sustained 
     in-service professional development;
       ``(iii) Placement and ongoing activities to ensure that 
     teachers are placed in fields which they are qualified to 
     teach and are placed in the highest need schools;
       ``(iv) Make payments to schools to pay for costs associated 
     with accepting teachers recruited under this subsection from 
     among eligible participants or to provide financial 
     incentives to prospective teachers who are eligible 
     participants;
       ``(v) Collaborate with institutions of higher education in 
     developing and implementing programs to facilitate teacher 
     recruitment (including teacher credentialing) and teacher 
     retention programs;
       ``(vi) Carry out other programs, projects, and activities 
     that are designed and have proven to be effective in 
     recruiting and retaining teachers; and that the Secretary 
     determines to be appropriate; and
       ``(vii) Develop Long-term Recruitment and Retention 
     Strategies including a statewide or region wide clearinghouse 
     for the recruitment and placement of teachers, the 
     establishment of administrative structures to development and 
     implement programs to provide alternative routes to 
     certification, reciprocity agreements between or among States 
     for the certification or licensure of teachers, or other 
     long-term teacher recruitment and retention strategies.
       ``(C) Effective activities.--The applicant shall use the 
     funds only for activities that have proven effective in both 
     recruiting and retaining teachers.''
       279. House bill permits funds to be used for identified 
     activities. Senate amendment requires grantees to carry out a 
     teacher corps or other program including 2 or more of the 
     listed activities.
       HR/SR (provisions redrafted under Note 278).
       280. Senate amendment contains no similar provision.
       HR/SR (provisions redrafted under Note 278).
       281. Similar provisions except Senate amendment delineates 
     incentives in detail and identifies criteria the participants 
     must meet.
       HR/SR (provisions redrafted under Note 278).
       282. Senate amendment, but not House bill, authorizes 
     payments to participating schools.
       HR/SR (provisions redrafted under Note 278).
       283. Senate amendment contains no similar provision.
       HR/SR (provisions redrafted under Note 278).
       284. Senate amendment contains no similar provision.
       HR/SR (provisions redrafted under Note 278).
       285. House bill provides for general post-placement 
     activities for participants. Senate amendment enumerates 
     several such activities.
       HR/SR (provisions redrafted under Note 278).
       286. House bill and Senate amendment have similar 
     provisions governing length of required service and 
     repayment. House bill defines period of service as at least 3 
     years in high need LEA. Senate amendment requires recipient 
     to teach for at least 2 years in high need school during 5 
     year period following completion of training.
       SR
       287. House bill contains no similar provision.
       HR
       288. House bill contains no similar provision.
       HR
       289. House bill authorizes $50 million for both Troops-to-
     Teachers and Transition-to-Teaching programs combined. Senate 
     amendment authorizes $200 million solely for the Careers to 
     Classrooms program and $50 million solely for Troops-to-
     Teachers program.
       HR/SR with an agreement to authorize $150 million for both 
     Troops-to-Teachers and Transition to Teaching programs 
     combined of which up to $30 million shall be reserved for 
     Troops-to-Teachers. (see Note 251)
       290. Senate amendment, but not House bill, provides for a 
     National Teacher Recruitment Campaign.
       HR with an agreement to move redrafted provision to Subpart 
     5 of Part A.
       291. House bill contains no similar provisions.
       SR
       292. Senate amendment, but not House bill, contains 
     ``National Programs.''
       HR
       293. Senate amendment authorizes a separate program for 
     school leadership with separate authorization of $50 million 
     for FY02 and such sums as may be necessary for each 
     subsequent fiscal year.
       HR with an agreement to move redrafted provision to Subpart 
     5 of Part A.
       294. Senate amendment, but not House bill, requires 
     Secretary to support activities related to advanced 
     certification with grants awarded to the National Board for 
     Professional Teaching Standards.
       HR with an agreement to move to Subpart 5 of Part A and an 
     amendment to read as follows and report language:
       ``(d) Advanced Certification or Advanced Credentialing.--
       ``(1) In general.--The Secretary shall support activities 
     to encourage and support teachers seeking advanced 
     certification or advanced credentialing through high quality 
     professional teacher enhancement programs designed to improve 
     teaching and learning.
       ``(2) Implementation.--In carrying out paragraph (1), the 
     Secretary shall make grants to eligible entities to--
       ``(A) develop teacher standards which include measures tied 
     to increased student academic achievement; and
       ``(B) to promote outreach, teacher recruitment, teacher 
     subsidy, or teacher support programs related to teacher 
     certification by the National Board for Professional Teaching 
     Standards, the National Council on Teacher Quality, and other 
     nationally recognized certification organizations.
       ``(3) Eligible entities.--Under this section, eligible 
     entities include--
       ``(A) State educational agencies;
       ``(B) local educational agencies;
       ``(C) the National Board for Professional Teaching 
     Standards in partnership with a high need local educational 
     agency or a State educational agency;
       ``(D) the National Council on Teacher Quality in 
     partnership with a high need local educational agency or a 
     State educational agency; or
       ``(E) other recognized entities, including other recognized 
     certification organizations, in partnership with a high need 
     local educational agency or a State educational agency.''
       ``(e) Special Education Teacher Training.--The Secretary is 
     authorized to award a grant to the University of Northern 
     Colorado to enable such university to provide other 
     institutions of higher education assistance in training 
     special education teachers.''
       Report Language:
       For a grant that involves the National Board for 
     Professional Teaching Standards, the National Council on 
     Teacher Quality, or other recognized certification 
     organizations, the conferees intend that such entities may

[[Page 25849]]

     apply for and receive a grant from the Secretary. In doing 
     so, such entities shall describe in their application how the 
     entity will partner with a high need local educational agency 
     or State educational agency.
       In recognition of the importance of teachers having current 
     content knowledge, as well as pedagogical expertise, the 
     conferees urge that the Secretary give priority to applicants 
     that show that the weight given to the content knowledge 
     portion of the advanced certification or credentialing is at 
     least 60 percent, and provide assurances that they will work 
     with the Secretary and States to conduct outreach activities 
     for teachers serving in high poverty areas to seek advanced 
     certification or credentialing and provide them with 
     incentives to obtain such certification or credentialing.
       295. House bill authorizes $3.6 billion for FY 02 and such 
     sums as may be necessary for the next four years. In 
     addition, House bill authorizes $50 million for the Troops-
     to-Teachers and Transition-to-Teaching programs combined. 
     Senate amendment authorizes $3 billion (other than subpart 5) 
     for FY 02 and such sums as may be necessary for each of the 6 
     succeeding fiscal years. In addition, Senate amendment 
     authorizes $100 million (other than subsections (b), (e), and 
     (f)) for FY 02 and such sums as may be necessary for each of 
     the 6 succeeding fiscal years. [See section 1003(b) for 
     specific authorization levels through FY 08].
       HR with an amendment to strike ``3,000,000,000'' in section 
     2103(a) and insert ``3,175,000,000'' and to strike ``6 
     succeeding'' and insert ``5 succeeding'' and an agreement to 
     authorize National Activities at such sums.
       296. House bill contains no similar provision.
       SR
       297. House bill and Senate amendment define different 
     terms.
       HR/SR with an agreement to define the following terms in 
     Title II:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers one or more academic majors in disciplines or content 
     areas corresponding to the academic subject matter areas in 
     which teachers provide instruction; and
       ``(B) when referring to a specific academic subject matter 
     area, the disciplines or content areas in which academic 
     majors are offered by the arts and sciences organizational 
     unit.
       ``(2) Charter school.--The term `charter school' has the 
     meaning given the term in section 5120.
       ``(3) High need local educational agency.--The term `high 
     need local educational agency' means--
       ``(A) a local educational agency which serves at least 
     10,000 children from families with incomes below the poverty 
     line; or more than 20 percent of the children served by such 
     agency are from families with incomes below the poverty line; 
     and
       ``(B) a local educational agency in which there is a high 
     percentage of teachers not teaching in the content area in 
     which the teachers were trained to teach.
       ``(4) Highly qualified paraprofessional.--The term `highly 
     qualified paraprofessional' means a paraprofessional--
       ``(i) with at least two years of experience in a classroom; 
     and
       ``(ii) with at least two years of postsecondary education 
     or has demonstrated competence in a field or subject matter 
     for which there is a significant shortage of qualified 
     teachers.
       ``(5) Out-of-field teacher.--The term `out-of-field 
     teacher' means a secondary school teacher who is teaching an 
     academic subject for which the teacher is not highly 
     qualified.
       ``(6) Publicly report.--The term `publicly report', when 
     used with respect to the dissemination of information, means 
     that the information is made widely available to the public, 
     including parents and students, in an understandable and 
     uniform format, and to the extent practicable in a language 
     the parent can understand, through such means as the Internet 
     and major print and broadcast media outlets.''
       298. House bill contains no similar provision.
       SR
       299. House bill contains no similar provision.
       SR (see Note 121).
       300. Senate amendment separately authorizes math and 
     science partnerships at $900 million (House bill math and 
     science partnerships are reserved under Title II, Part A 
     authorization).
       HR with an amendment to strike ``$900,000,000'' and insert 
     ``$450,000,000''.
       301. Senate amendment, but not House bill, authorizes funds 
     for clearinghouse.
       SR
       302. House bill transfers and continues the National 
     Writing Project as Part B of Title II. Senate amendment 
     amends entire program to ``read as follows'' as Part B of 
     Title XVI. (Subsequent references to ``current law'' are to 
     current law as extended by provisions in House bill).
       HR/SR with an agreement to move to Subpart 3 of Part C.
       303. Senate amendment, but not House bill, adds 
     ``continuing.''
       SR
       304. Senate amendment, but not House bill, adds new text 
     beginning with ``the shortage of . . .''
       SR
       305. Senate amendment adds new statistics regarding 
     writing.
       SR
       306. Senate amendment similar to current law (wording 
     differs).
       SR
       307. Senate amendment similar to current law (wording 
     differs).
       SR
       308. No comparable provision in current law.
       SR
       309. Senate amendment similar to current law (wording 
     differs).
       SR
       310. Senate amendment modifies current law which describes 
     teachers in all regions of the country who have developed 
     successful methods for teaching writing.
       SR
       311. Senate amendment similar to current law (wording 
     differs).
       SR
       312. Senate amendment adds ``reading'' to current law.
       SR
       313. Senate amendment updates current law statistics.
       SR
       314. Senate amendment replaces two subsections from current 
     law that describe results of studies and amount of funding 
     leveraged by federal support.
       SR
       315. Senate amendment, but not House bill, drops language 
     describing National Writing Project summer and school year 
     activities, teachers-teaching-teachers, career-long 
     education, the number of sites needed to serve all teachers, 
     and the inadequate nature of private foundation resources for 
     National Writing Project.
       HR
       316. No comparable provision in current law.
       HR
       317. Similar provision to current law, except Senate 
     amendment drops list of activities.
       HR
       318. Except where noted, Senate amendment retains current 
     law.
       HR
       319. Senate amendment similar to current law (wording 
     differs).
       HR
       320. Senate amendment increases maximum for individual 
     contractor from $40,000 to $100,000.
       HR
       321. Senate amendment drops current law language regarding 
     classroom teacher grants.
       HR
       322. Senate amendment updates current law which applied 
     limit to FY 1994 and succeeding four fiscal years.
       HR
       323. House bill authorizes such sums as may be necessary 
     for FY 02 and succeeding four fiscal years. Senate amendment 
     specifies authorization of $15 million for FY 02 and such 
     sums as may be necessary for succeeding 6 fiscal years.
       HR with an amendment to strike ``6 succeeding fiscal 
     years'' and insert ``5 succeeding fiscal years''.
       324. Senate amendment contains no similar provision.
       SR
       325. House bill ``Civic Education'' is Part C of Title II 
     and Senate amendment ``Education for Democracy'' is Part D of 
     Title XVI.
       HR/SR with an agreement to move to Subpart 4 of Part C.
       326. Identical provision.
       LC
       327. Identical provisions.
       HR/SR (no findings).
       328. Identical provisions.
       HR
       329. Identical provisions.
       HR/SR with an agreement that:
       The allocation reserved for the ``We the People Program'' 
     be awarded to the Center for Civic Education; and
       The allocation reserved for ``Cooperative Civic Education 
     and Economic Education Exchange Programs'' be awarded to the 
     Center for Civic Education (37.5 percent); the National 
     Council on Economic Education (37.5 percent); and up to 3 
     grants to other organizations (25 percent).
       330. House bill contains similar provisions throughout this 
     part but requires the Secretary of Education to get the 
     ``concurrence'' of the Secretary of State.
       HR with an amendment to strike Senate (2).
       331. Virtually identical provisions.
       LC
       332. House bill provides for ``allowable'' uses of funds; 
     Senate amendment has ``requirements''--provisions are 
     otherwise identical.
       SR
       333. Virtually identical provision.
       HR
       334. Virtually identical provisions.

[[Page $25850]]

       LC
       335. House bill provides for ``allowable'' uses of funds; 
     Senate amendment has ``requirements''--provisions are 
     otherwise identical.
       SR
       336. Virtually identical provisions.
       HR
       337. Virtually identical provisions.
       HR
       338. House bill has similar avoidance of duplication 
     provisions (see below).
       SR
       339. Virtually identical provisions.
       LC
       340. Senate amendment has similar avoidance of duplication 
     provisions (see above).
       SR
       341. Similar definition except that House bill requires the 
     ``concurrence'' of the Secretary of State as compared to 
     ``consultation'' under Senate amendment.
       SR
       342. House bill authorizes such sums as may be necessary 
     for each of FY 02 through FY 06 with a limitation on funding 
     for activities under subsection (a)(2). Senate amendment 
     authorizes $15 million for Section 11304 for FY 02 and such 
     sums as may be necessary for each of FY 03 through FY 08 and 
     authorizes $12 million for Section 11305 for FY 02 and such 
     sums as may be necessary for each of FY 03 through FY 08.
       HR/SR with an agreement to use a single authorization for 
     FY 2002 of $30 million, of which not more than 40 percent of 
     the amount appropriated shall be used for Cooperative Civic 
     Education and Economic Education Exchange Programs.
       343. Similar provisions except where noted.
       SR
       344. House bill has ``Liability'' in the title.
       HR with an amendment to strike findings.
       345. Senate amendment has concluding phrase ``which are 
     critical for the continued economic development of the United 
     States.''
       HR/SR (no findings).
       346. House bill contains no similar provision.
       HR with an amendment to strike (5) and (6) in findings and 
     in section 10003 add new (a):
       ``(a) This title shall only apply to those States that 
     receive funds under this Act, and shall apply to such a State 
     as a condition of receiving such funds.''
       347. Similar provisions (wording differs).
       HR
       348. House bill contains no similar provision.
       HR
       349. Senate amendment contains no similar provision.
       HR
       350. House bill contains no similar provision.
       HR
       351. House bill includes school board, and local 
     educational agency and any employee of the agency in 
     definition of ``teacher.'' Senate amendment specifies terms 
     applies only to members of a school board and does not 
     reference districts and district employees.
       SR with an amendment to (6) to read as follows:
       ``(6) Teacher.--The term `teacher' means a teacher; 
     instructor; principal; administrator; other educational 
     professional that works in a school; professional or non-
     professional employee that works in a school whose job it is 
     to maintain discipline or ensure safety, or due to an 
     emergency is called upon to maintain discipline or ensure 
     safety; or an individual member of a school board (as 
     distinct from the board itself).''
       352. House bill contains no similar provision.
       HR with an amendment to strike ``the Paul D. Coverdell 
     Teacher Protection Act of 2001'' and insert ``[Short Title of 
     this Act]''.
       353. Similar provision (wording differs).
       HR
       354. House bill contains no similar provision.
       HR with an agreement to move redrafted Early Childhood 
     Educator Professional Development provisions to Subpart 5 of 
     Part A.
       355. House bill contains no similar provision.
       HR/SR with an agreement to move National Panel on Teacher 
     Mobility to Subpart 5 of Part A and add report language.
       Report Language:
       Research indicates that many qualified teachers are not 
     presently working as teachers despite the growing shortage of 
     teachers in many communities due to obstacles related to 
     teacher mobility. The bill includes authorization for a Panel 
     on Teacher Mobility to study strategies for increasing 
     mobility and employment opportunities for qualified teachers, 
     especially in States with teacher shortages and States with 
     districts or schools that are difficult to staff. Conferees 
     do not intend pension portability be addressed by the panel.
       However, the conferees note that the portability of teacher 
     pensions was extensively addressed in P.L. 107-16, the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 
     (EGATRRA). The new provisions will generally be effective on 
     January 1, 2002. Previous law hindered teachers' ability to 
     move their pension benefits with them when they took new 
     jobs. The new provisions break down the barriers thereby 
     enhancing teachers' mobility. Thus, teachers can now take new 
     employment while more fully preserving their pension 
     benefits.

                      Title III, Part A--Bilingual

                            (New Title III)

       1. The House bill and Senate Amendment have different 
     titles.
       HR/SR with an amendment to title this part: the ``English 
     Language Acquisition, Language Enhancement, and Academic 
     Achievement Act''.
       2. The House bill, but not the Senate Amendment, lists 
     findings. The Senate Amendment, but not the House bill, 
     provides that Part D only becomes enacted if appropriations 
     are $700 million or more.
       HR
       3. The Senate Amendment, but not the House bill, states 
     policy of the federal government.
       HR/SR with an amendment to strike all legislative language 
     in notes 3-12 and insert:
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to help ensure that children who are limited English 
     proficient, including recent immigrant children and youth 
     attain English proficiency develop high levels of academic 
     attainment in English, and meet the same challenging state 
     academic content standards and challenging state student 
     academic achievement standards expected of all children;
       ``(2) to assist all limited English proficient students, 
     including recent immigrant children and youth, to achieve at 
     high levels in the core academic subjects so that those 
     students can meet the same challenging state academic content 
     and student academic achievement standards that all students 
     are expected to meet, consistent with section 1111(b)(1);
       ``(3) to develop high-quality programs designed to assist 
     state educational agencies, local educational agencies and 
     schools in teaching limited English proficient children and 
     serving recent immigrant children and youth;
       ``(4) to assist state educational agencies and local 
     educational agencies to develop and enhance their capacity to 
     provide high-quality instructional programs designed to 
     prepare limited English proficient students, including recent 
     immigrant children and youth, to enter all-English 
     instructional settings;
       ``(5) to assist state educational agencies, local 
     educational agencies and schools to build their capacity to 
     establish, implement, and sustain programs of instruction and 
     English language development for limited English proficient 
     students;
       ``(6) to promote parental and community participation in 
     programs for limited English proficient students;
       ``(7) to streamline language instruction educational 
     programs into a program carried out through formula grants to 
     state and local educational agencies to help limited English 
     proficient students, including recent immigrant children and 
     youth, develop proficiency in English, while meeting state 
     academic content and student academic achievement standards;
       ``(8) to hold state educational agencies, local educational 
     agencies and schools accountable for increases in English 
     proficiency and core academic content knowledge of limited 
     English proficient students by requiring;
       ``(A) demonstrated improvements in the English proficiency 
     of limited English proficient students each fiscal year; and
       ``(B) adequate yearly progress with limited English 
     proficient students, including recent immigrant students, as 
     described in section 1111(b) (2); and
       ``(9) to provide state educational agencies and local 
     educational agencies with the flexibility to implement the 
     instructional programs, based on scientifically based 
     research on teaching limited English proficient children, 
     that the agencies believe to be the most effective for 
     teaching English.''
       4. Using different language, the House bill and the Senate 
     Amendment state purposes.
       HR/SR (see note 3)
       5. Using different language, the House bill and the Senate 
     Amendment state that the purpose of this part is to help LEP 
     children attain English proficiency and develop high levels 
     of achievement in academic areas. The House bill, but not the 
     Senate Amendment includes academic attainment in English. The 
     Senate Amendment, but not the House bill, includes attaining 
     English ``as quickly and as effectively as possible.''
       HR/SR (see note 3)
       6. The House bill, but not the Senate Amendment, states the 
     purpose is to develop high-quality programs to assist LEAs in 
     teaching LEP children. (Similar to note 5)
       HR/SR (see note 3)
       7. The House bill states this similar provision in note 5.
       HR/SR (see note 3)
       8. The House bill, but not the Senate Amendment, states the 
     purpose is to assist LEAs to develop and enhance high-quality 
     instruction programs designed to prepare LEP students, 
     including recent immigrant students, to enter all-English 
     instructional settings within 3 years. The Senate Amendment, 
     in note 1, says ``as quickly and effectively as possible.''
       HR/SR (see note 3)
       9. The Senate Amendment, but not the House bill, states 
     that LEP students develop

[[Page 25851]]

     English proficiency as quickly and as effectively as possible 
     by streamlining language instruction educational programs 
     into performance-based grants for SEAs and LEAs.
       HR/SR (see note 3)
       10. The Senate Amendment, but not the House bill, requires 
     states to help LEAs and schools demonstrate improvements in 
     English proficiency each fiscal year.
       HR/SR (see note 3)
       11. The Senate Amendment, but not the House bill, 
     specifically states that states are required to ensure that 
     LEPs make AYP.
       HR/SR (see note 3)
       12. Using different language, the House bill and the Senate 
     Amendment, both provide SEAs and LEAs flexibility to 
     implement instructional programs tied to scientifically based 
     research and that agencies believe to be the most effective 
     for teaching English. The House bill, but not the Senate 
     Amendment, uses ``scientifically based reading research and 
     sound research and theory.''
       HR/SR (see note 3)
       13. Using different language, the House bill and the Senate 
     Amendment provide provisions for parental notification.
       (Notes 13 and 15-39, 124 and 223)
       HR/SR with an amendment to strike all legislative language 
     in notes 13 and 15-39 and insert:

     ``SEC. 3. PARENTAL NOTIFICATION.

       ``(a) In General.--(1) Each eligible entity using funds 
     under this title to provide high-quality language instruction 
     educational programs shall inform a parent or parents of a 
     child participating in such a program of--
       ``(A) the reasons for the identification of their child as 
     limited English proficient and being in need of placement in 
     a language instruction educational program;
       ``(B) the child's level of English proficiency, how such 
     level was assessed, and the status of the child's academic 
     achievement;
       ``(C) the program and methods of instruction available, 
     including how such programs differ in content, instructional 
     goals, and use of English and a native language in 
     instruction;
       ``(D) how the language instruction educational program will 
     meet the educational strengths and needs of their child;
       ``(E) how such language instruction program will 
     specifically help the child acquire English, and meet age 
     appropriate academic achievement standards for grade 
     promotion and graduation;
       ``(F) the specific exit requirements for the program, 
     including the expected rate of transition from the program 
     into classrooms that are not tailored for limited English 
     proficient students, and the expected rate of graduation from 
     high school for the program if funds under this title are 
     used for children in secondary schools;
       ``(G) in the case of a student with a disability who 
     participates in an language instruction educational program, 
     how the program meets the objectives of the individualized 
     education program of the student;
       ``(H) If applicable, the entity's failure to make progress 
     on the annual measurable achievement objectives in section 
     3329(a). Such notice shall be sent in addition to the 
     parental notification of their child as in need of 
     participation in a language instruction educational program; 
     and
       ``(I) information pertaining to parental rights, that 
     includes written guidance--
       ``(i) detailing the options that parents have to remove 
     their child from an language instruction educational program, 
     and shall give parents an opportunity to decline such 
     enrollment, and the right to have their child immediately 
     removed from a language instruction educational program upon 
     their request; and
       ``(ii) assisting parents in selecting among various 
     programs and methods of instruction, if more than one program 
     or method is offered by the eligible entity.
       ``(b) Receipt of Information.--The notice and information 
     provided in subsection (a) to a parent or parents of a child 
     identified for participation in an language instruction 
     educational program for limited English proficient children 
     shall be in an understandable and uniform format and, to the 
     extent practicable, provided in a language that the parents 
     can understand.
       ``(c) Special Rule Applicable During the School Year.--For 
     those children who have not been identified as limited 
     English proficient prior to the beginning of the school year 
     the eligible entity shall notify parents within the first two 
     weeks of the child being placed in a language instruction 
     educational program consistent with subsections (a) and (b).
       ``(d) Parental Participation.--Each eligible entity using 
     funds under this title shall implement an effective means of 
     outreach to parents of limited English proficient students to 
     inform parents of how they can be involved in the education 
     of their children, and be active participants in assisting 
     their children to attain English and achieve at high levels 
     in core academic subjects and meet challenging state academic 
     achievement standards and state academic content standards 
     expected of all students, including holding and sending 
     notice of opportunities for regular meetings for the purpose 
     of formulating and responding to recommendations from parents 
     of students assisted under this title.
       ``(e) Basis for Admission or Exclusion.--A student shall 
     not be admitted to, or excluded from, any federally assisted 
     education program on the basis of a surname or language-
     minority status.''
       14. In developing regulations, the Senate Amendment, but 
     not the House bill, requires the Secretary to consult with 
     SEAs, LEAs, organizations representing LEP individuals, and 
     teachers and other personnel involved with teaching LEP 
     students.
       HR
       15. Using different language, the House bill and the Senate 
     Amendment, provide provisions for parental notification
       HR/SR--see note 13.
       16. In a different order, both the House bill and the 
     Senate Amendment require the reasons for the child being in 
     need of language instruction. (See note 23) The House bill, 
     but not the Senate Amendment uses English language 
     instruction. The Senate Amendment, but not the House bill, 
     uses language instruction educational program.
       HR/SR--see note 13.
       17. Using different language, both the House bill and the 
     Senate Amendment, require the child's level of English 
     proficiency, how such level was assessed, and the status of 
     the child's academic achievement. The Senate Amendment, but 
     not the House bill, further requires the implications of the 
     student's educational strengths and need for age- and grade-
     appropriate academic attainment, grade promotion, and 
     graduation.
       HR/SR--see note 13.
       18. The Senate Amendment, but not the House bill, requires 
     programs available to meet the student's educational 
     strengths and needs, and how the programs differ in content 
     and instruction.
       HR/SR--see note 13.
       19. The Senate Amendment, but not the House bill, provides 
     for students with a disability participating in a language 
     instruction educational program.
       HR/SR--see note 13.
       20. Using different language, both the House bill and the 
     Senate Amendment, provide for how the program will help the 
     LEP child acquire English and meet age-appropriate standards 
     for grade promotion and graduation. The Senate Amendment, but 
     not the House bill, also requires the instructional goals of 
     the program.
       HR/SR--see note 13.
       21. The Senate Amendment, but not the House bill, further 
     requires the characteristics, benefits, and past academic 
     results of such language program and of instructional 
     alternatives.
       HR/SR--see note 13.
       22. The House bill, but not the Senate Amendment, requires 
     the specific exit requirements for the language program.
       HR/SR--see note 13.
       23. Both the House bill and Senate Amendment contain this 
     provision in a different order. (See note 16)
       HR/SR--see note 13.
       24. The House bill, but not the Senate Amendment, requires 
     the expected rate of transition from the program into a 
     classroom not tailored for LEP children.
       HR/SR--see note 13.
       25. The Senate Amendment, but not the House bill, requires 
     parents be informed of how they can participate and be 
     involved in the language instruction program.
       HR/SR--see note 13.
       26. The House bill, but not the Senate Amendment, requires 
     that if funds are used for children in secondary schools 
     parents be informed of the expected rate of graduation from 
     high school.
       HR/SR--see note 13.
       27. The House bill, but not the Senate Amendment, requires 
     LEAs to make a ``reasonable and substantial effort'' to 
     obtain informed parental consent prior to the placement of a 
     child in an English language instruction program if the 
     program does not exclusively use the English language in 
     instruction. The Senate Amendment provides that parents be 
     informed and provided an option to decline enrollment in a 
     program. (See note 31)
       HR/SR--see note 13.
       28. The House bill, but not the Senate Amendment, requires 
     LEAs to maintain a written record if parental consent cannot 
     be obtained.
       HR/SR--see note 13.
       29. The House bill, but not the Senate Amendment, requires 
     LEAs to mail or deliver a copy of the written record and a 
     final request for consent before providing services to LEP 
     students.
       HR/SR--see note 13.
       30. The House bill, but not the Senate Amendment, provides 
     for situations when children are not identified as limited 
     English proficient prior to the beginning of the school year.
       HR/SR--see note 13.
       31. The Senate Amendment, but not the House bill, requires 
     that parents be informed of their option to decline 
     enrollment of their LEP child in a program.
       HR/SR--see note 13.
       32. The House bill, but not the Senate Amendment, requires 
     that parents select among programs if more than one method is 
     offered and have the right to immediately remove their child 
     from the program upon their request.

[[Page 25852]]

       HR/SR--see note 13.
       33. The Senate Amendment, but not the House bill, provides 
     that LEAs cannot be relieved of the agency's obligations of 
     the Civil Rights Act simply because a parent chooses not to 
     enroll a student in a language instruction program.
       HR/SR--see note 13.
       34. Using different language, the House bill and the Senate 
     Amendment require that parents receive information about 
     their child's instruction program. The Senate Amendment, but 
     not the House bill, further requires information to be in the 
     language used by parents if necessary and feasible.
       HR/SR--see note 13.
       35. Both the House bill and the Senate Amendment, have 
     similar language regarding timely information about programs.
       HR/SR--see note 13.
       36. Using similar language, the House bill and the Senate 
     Amendment, provide parents with a notice of opportunities for 
     regular meetings to permit parents to formulate and respond 
     to recommendations from such parents.
       HR/SR--see note 13.
       37. The House bill, but not the Senate Amendment, requires 
     that parents receive procedural information for removing 
     their child from a program.
       HR/SR--see note 13.
       38. Both the House bill and the Senate Amendment have 
     similar language stating that students cannot be admitted or 
     excluded in a program solely on the basis of a surname or 
     language minority status.
       HR/SR--see note 13.
       39. The Senate Amendment, but not the House bill, has a 
     provision stating that nothing shall be construed as to 
     mandate, direct or control an entity's choice in developing 
     standards or assessments, curriculum or program of 
     instruction.
       HR/SR--see note 13.
       40. The House bill, but not the Senate Amendment, provides 
     for testing of LEP children. Both the House bill and the 
     Senate Amendment have similar provisions for testing LEP 
     children in Title I, Part A.
       HR
       41. Both the House bill and the Senate Amendment, require 
     that LEP children, who have been in school in the US for 
     three or more consecutive years be tested in English. The 
     Senate Amendment contains the same requirement in Title I, 
     Part A. The House bill, but not the Senate Amendment, further 
     permits the tests to be administered for one additional year, 
     on a case-by-case basis in another language or form. The 
     Senate Amendment, but not the House bill, further permits 
     such tests to be administered for additional years, provided 
     that the total number of students so assessed does not exceed 
     1/3 the number of students assessed in their native language 
     in the previous year.
       HR
       42. Using different language, the House bill and the Senate 
     Amendment, authorize federal grants to states for the 
     purposes of assisting LEP children. The House bill, but not 
     the Senate Amendment, provides such grants for the fiscal 
     year in which it is applied for. The Senate Amendment, but 
     not the House bill, provides that such grants remain in 
     effect for the duration of the state's participation under 
     this part. (See note 86)
       SR
       43. The House bill, but not the Senate Amendment, states 
     the purposes of the state grants.
       HR
       44. The House bill, but not the Senate Amendment, provides 
     that a state must expend at least 95 percent of its allotment 
     to local eligible entities.
       SR
       45. Both the House bill and the Senate Amendment provide 
     that a state may not expend more than 5 percent of its 
     allotment for state activities.
       LC
       46. Both the House bill and the Senate Amendment provide 
     activities for which state grants may be used.
       LC
       47. The House bill, but not the Senate Amendment, provides 
     for authorized activities that state grants may be used for, 
     such as professional development activities, providing 
     scholarships and fellowships to students who agree to teach 
     limited English proficient children upon graduation, planning 
     administration and interagency coordination, providing 
     technical assistance to LEAs who teach limited English 
     proficient children and other eligible entities not receiving 
     a subgrant from the state, and providing bonuses to eligible 
     entities with successful programs.
       HR/SR with an amendment to strike all legislative language 
     in notes 47-49 and insert:
       ``(2) State activities.--Each state educational agency 
     receiving a grant under this part may reserve not more than 5 
     percent of the agency's allotment under section 3323(b)(2) to 
     carry out state activities described in the state plan 
     submitted under section 3325, including--
       ``(A) professional development activities, and other 
     activities, that assist personnel in meeting state and local 
     certification requirements for teaching limited English 
     proficient children;
       ``(B) planning, evaluation, administration, and interagency 
     coordination related to the subgrants referred to in 
     paragraph (1).
       ``(C) providing technical assistance and other forms of 
     assistance to local educational agencies that are receiving 
     assistance from a state educational agency under this part 
     including--
       ``(i) identifying and implementing language instruction 
     educational programs and curricula that are based on 
     scientifically based research on teaching limited English 
     proficient children;
       ``(ii) helping limited English proficient students meet the 
     same challenging state academic content standards and 
     challenging state student academic achievement standards that 
     all students are expected to meet;
       ``(iii) identifying or developing and implementing measures 
     of English language proficiency; and
       ``(iv) promoting parental and community participation in 
     programs that serve limited English proficient students.
       ``(D) Provide recognition, which may include financial 
     awards to subgrantees who have exceeded their achievement 
     objectives pursuant to section 3329.''
       48. The Senate Amendment, but not the House bill, requires 
     SEAs to describe how they will provide technical assistance 
     to LEAs and elementary and secondary schools for: identifying 
     and implementing language instruction educational programs 
     and curricula tied to scientifically based research; helping 
     LEP student meet challenging state content and student 
     performance standards expected of all children; identify or 
     develop and implement measures of English language 
     proficiency; and the promoting of parental and community 
     participation in programs. The Senate Amendment provides that 
     these activities be described in the state plan.
       HR/SR (see note 47)
       49. The Senate Amendment, but not the House bill, includes 
     the same set of criteria for specially qualified agencies.
       HR/SR (see note 47)
       50. Using different language, the House bill and the Senate 
     Amendment, require that a state receiving a grant may not use 
     more than two percent of its allotment for administrative 
     purposes.
       HR with an amendment to strike ``may use not more than 2 
     percent'' and insert ``may use up to 3 percent or $175,000, 
     whichever is greater,'' and strike ``costs'' after 
     ``planning'' in (3).
       51. Both the House bill and the Senate Amendment provide 
     for the determination of allotments and reservations.
       LC
       52. Using different language, the House bill and the Senate 
     Amendment, reserve .5 percent for payments to LEAs that serve 
     Native American children. The House bill, but not the Senate 
     Amendment, provides it for individuals in schools operated 
     predominately for Native American or Alaska Native children. 
     The Senate Amendment, but not the House bill, reserves .5 
     percent for payments to the Secretary of Interior for 
     activities and schools operated by the BIA. The House bill, 
     but not the Senate Amendment, defines these entities in 
     Section 3106(a). (See note 67)
       HR/SR with an amendment to insert as a new (A): ``(A) .5% 
     or $5 million of such amount, whichever is greater, for 
     payments to eligible entities that are defined under section 
     3106(a) for activities proposed by the Secretary.''
       53. Using similar language both the House bill and the 
     Senate Amendment provide .5 percent for payments to outlying 
     areas.
       LC
       54. The House bill, but not the Senate Amendment, reserves 
     .5 percent for the evaluation of programs for dissemination 
     of best practices. The Senate Amendment, but not the House 
     bill, continues a National Clearinghouse to disseminate best 
     practices. (See note 176)
       HR
       55. The Senate Amendment, but not the House bill, reserves 
     6 percent for national leadership activities.
       HR with an amendment to change to ``6.5 percent'' with .5 
     percent for evaluation and no more than $2 million for the 
     National Clearinghouse.
       56. The Senate Amendment, but not the House bill, reserves 
     such sums for continuation awards.
       LC
       57. Using different language the House bill and the Senate 
     Amendment provide for the continuation of current grant 
     awards. The House bill, but not the Senate Amendment, 
     provides for such continuation only for grants made to 
     subpart 1, Part A (Capacity and Demonstration grants) under 
     current law. The Senate Amendment, but not the House bill, 
     provides for the continuation of grants made under Subparts 1 
     and 3 under Part A (Capacity and Demonstration Grants; 
     Professional Development Grants) The Senate Amendment, but 
     not the House bill, provides for awards to cover grants under 
     current law, as well as, grants made in years that Part D is 
     not in effect (when the appropriation is not $700 million or 
     more).
       HR
       58. Using different language, both the House bill and the 
     Senate Amendment, provide for state allotments. The House 
     bill, but not the Senate Amendment, awards grants to states 
     based on the number of LEP students. The Senate Amendment, 
     but not the

[[Page 25853]]

     House bill, awards grants to states based 67 percent of each 
     state's share of LEP students and 33 percent of each state's 
     share of immigrant students.
       HR with an amendment to strike ``67'' and insert ``80'' in 
     (A)(i) and to strike ``33'' and insert ``20'' in (A)(ii).
       59. The Senate Amendment, but not the House bill, provides 
     that no state would receive less than .5 percent of the total 
     amount available for distribution.
       HR with an amendment to strike ``less than . . . under this 
     paragraph'' and insert ``that is in the amount of not less 
     than $500,000'' in (B).
       60. Using different language, the House bill and the Senate 
     Amendment, require the Secretary to make grants to specially 
     qualified agencies from the amount made available to states 
     when it's determined that such allotment will not be used for 
     the intended purpose. Both the House bill and the Senate 
     Amendment, stipulate that funds are available when a state 
     does not submit an application or submits an application that 
     is not approved. The Senate Amendment, but not the House 
     bill, allows the Secretary to determine such rules as to be 
     appropriate to make amounts available to states.
       SR
       61. Using different language, the House bill, and the 
     Senate Amendment, require the Secretary to make reallotments 
     available on a competitive basis to specially qualified 
     agencies within the state. The House bill, but not the Senate 
     Amendment, provide for reallocating any portion to the 
     remaining states.
       SR
       62. The House bill, but not the Senate Amendment, permits 
     specially qualified agencies receiving funding to waive 
     certain requirements.
       SR
       63. The Senate Amendment, but not the House bill, limits a 
     specially qualified agency from using not more than 1 percent 
     of the direct award for administrative costs.
       HR with an amendment to strike ``not more than 1 percent'' 
     and insert ``not more 2 percent''.
       64. The House bill and the Senate Amendment refer to 
     amounts for Puerto Rico. The House bill, but not the Senate 
     Amendment, caps such amount at .5 percent of the amount 
     allotted to all states. The Senate Amendment, but not the 
     House bill, reserves .5 percent for Puerto Rico.
       SR
       65. Using different language, the House bill and the Senate 
     Amendment, provides for data determinations. The House bill, 
     but not the Senate Amendment, provides for determining the 
     number of LEP children in the state based on the most recent 
     satisfactory data available from the Bureau of the Census and 
     the American Community Survey. It also stipulates that if 
     satisfactory data is not available or deemed outdated from 
     these sources, then funds are provided based on data provided 
     by the states. The Senate Amendment, but not the House bill, 
     requires the Secretary to use data that would yield the most 
     accurate and up-to-date figures, including data from the 
     Bureau of the Census or data submitted by the states. The 
     Senate Amendment, but not the House bill, also includes 
     immigrant children and youth in their data collection.
       HR with an amendment to insert as (A) and (B):
       ``(3) Use of data for determinations.--
       ``(A) In general.--For the purposes of making state 
     allotments under paragraph (2), for the purpose of 
     determining the number of limited English proficient students 
     in a state and in all states, and the number of immigrant 
     children and youth 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.
       ``(B) Special rule.--In making such determinations under 
     paragraph (A) for the two fiscal years following the 
     enactment of [Name of Act], the Secretary shall determine the 
     number of limited English proficient students in a state and 
     in all states, and the number of immigrant children and youth 
     in a state and in all states, using data available from the 
     Bureau of Census or submitted by the states to the Secretary. 
     After such time, the Secretary shall use data available from 
     the American Community Survey available from the Department 
     of Commerce or the number of students being assessed for 
     English proficiency in a state as required under section 
     1111(b)(7), whichever the Secretary determines to be the most 
     accurate.''
       66. The House bill, but not the Senate Amendment, 
     stipulates that the Secretary may not reduce a state's 
     allotment based on the state's selection of any method of 
     instruction, as its preferred method of teaching English to 
     LEP children.
       HR
       67. The House bill, but not the Senate Amendment, clarifies 
     certain entities that operate schools for Native American or 
     Alaska Native children are considered LEAs, and therefore 
     eligible to receive funding under 3105(c)(1)(A). (See note 
     52)
       SR with an amendment to insert as new SEC. 3106:

     ``SEC. 3106. NATIVE AMERICAN AND ALASKAN NATIVE CHILDREN IN 
                   SCHOOL.

       ``(a) Eligible entities.--For the purpose of carrying out 
     programs under this part for individuals served by 
     elementary, secondary, and postsecondary schools operated 
     predominately for Native American or Alaska Native children 
     or youth, the following shall be considered to be an eligible 
     entity--
       ``(1) An Indian Tribe. [Corresponding with Definition in 
     Current Law 7104.]
       ``(2) A tribally sanctioned educational authority.
       ``(3) A Native Hawaiian or Native American Pacific Islander 
     native language educational organization.
       ``(4) An elementary or secondary school that is operated or 
     funded by the Bureau of Indian Affairs, or a consortium of 
     such schools.
       ``(5) An elementary or secondary school operated under a 
     contract with or grant from the Bureau of Indian Affairs, in 
     consortium with another such school or a tribal or community 
     organization;
       ``(6) An elementary or secondary school operated by the 
     Bureau of Indian Affairs and an institution of higher 
     education, in consortium with an elementary or secondary 
     school operated under a contract with or grant from the 
     Bureau of Indian Affairs or a tribal or community 
     organization;
       ``(b) Submission of Applications for Assistance.--
     Notwithstanding any other provision of this part, an entity 
     that is considered to be an eligible entity under subsection 
     (a), and that desires to submit an application for federal 
     financial assistance under this subpart, shall submit the 
     application to the Secretary.
       ``(c) Special Rule.--Eligible Entities described under 
     subsection (a) which receive federal financial assistance 
     pursuant to this section shall not be eligible to receive a 
     subgrant under section [section on State subgrants to 
     eligible entities under formula grant].''
       68. Using different language and criteria, both the House 
     bill and the Senate Amendment, stipulate the requirements for 
     an application to be approved by the Secretary. The House 
     bill uses ``state application.'' The Senate Amendment uses 
     ``state plans.''
       HR
       69. The House bill, but not the Senate Amendment, 
     stipulates that states must describe the process for making 
     competitive subgrants to eligible entities. The Senate 
     Amendment, but not the House bill, provides a formula for 
     making allotments to LEAs in Sec. 3324.
       HR/SR with an amendment to strike all legislative language 
     in notes 69-84 and insert:
       ``(a) Plan Required.--Each state educational agency and 
     specially qualified agency desiring a grant under this part 
     shall submit a plan to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require. Such plan shall:
       ``(1) describe the process that the state educational 
     agency will use in making competitive subgrants to eligible 
     entities under section 3324(a) [conform to recent immigrant 
     program cite];
       ``(2) contain an agreement that, in awarding grants under 
     3324(a)(2), the state educational agency will address the 
     needs of school systems of all sizes and in all geographic 
     areas, including rural and urban schools;
       ``(3) contain an agreement that competitive subgrants to 
     eligible entities under section 3324(a)(2) shall be of 
     sufficient size and scope to allow such entities to carry out 
     high quality education programs for limited English 
     proficient children;
       ``(4) contain an agreement that the state educational 
     agency will coordinate its programs and activities under this 
     part with its other programs and activities under this Act 
     and other Acts, as appropriate;
       ``(5) describe how the state educational agency or 
     specially qualified agency will establish standards and 
     objectives for raising the level of English language 
     proficiency that are derived from the 4 recognized domains of 
     speaking, listening, reading, and writing, and that are 
     aligned with achievement of the state academic content and 
     student academic achievement standards described in section 
     1111(b)(1);
       ``(6) contain an assurance that the--
       ``(A) state educational agency consulted with local 
     educational agencies, education related community groups and 
     nonprofit organizations, parents, teachers, school 
     administrators, and researchers, in setting the achievement 
     objectives described in section 3329;
       ``(B) specially qualified agency consulted with education 
     related community groups and nonprofit organizations, 
     parents, teachers, and researchers, in setting the 
     achievement objectives described in section 3329;
       ``(C) state educational agency or specially qualified 
     agency will ensure that eligible entities comply with section 
     1111 (b)(3)(j) [LC] to annually test children in English who 
     have been in the United States for 3 or more consecutive 
     years;
       ``(D) state educational agency or specially qualified 
     agency will develop and require eligible entities receiving a 
     subgrant under this subpart to annually assess the English 
     proficiency of all children with limited English proficiency 
     participating in a program funded under this part, consistent 
     with section

[[Page 25854]]

     1111(b)(6) [conform to annual proficiency assessments in 
     Title I];--
       ``(7) contain an agreement that the state educational 
     agency or specially qualified agency will hold local 
     educational agencies, eligible entities, and elementary and 
     secondary schools accountable for--
       ``(A) meeting all achievement objectives described in 
     section 3329;
       ``(B) making adequate yearly progress with limited English 
     proficient students as described in section 1111(b)(2); and
       ``(C) meeting the purposes of this part;
       ``(8) describes how eligible entities in the state will be 
     given the flexibility to teach limited English proficient 
     students--
       ``(A) using a language instruction curriculum that is tied 
     to scientifically based research on teaching limited English 
     proficient children and that has been demonstrated to be 
     effective; and
       ``(B) in the manner the eligible entities determine to be 
     the most effective; and
       ``(9) contains an agreement that the state will require 
     eligible entities receiving a subgrant under this part to use 
     the subgrant in ways that will build such recipient's 
     capacity to continue to offer high-quality language 
     instruction educational programs which assist limited English 
     proficient children in attaining challenging state academic 
     content standards and challenging state student academic 
     achievement standards once assistance under this part is no 
     longer available.
       70. The House bill, but not the Senate Amendment, 
     stipulates that states must agree to address the needs of 
     schools, including rural and urban schools.
       HR/SR (see note 69)
       71. The House bill, but not the Senate Amendment, 
     stipulates that states must agree to make competitive 
     subgrants that are of sufficient size and scope to eligible 
     entities.
       HR/SR (see note 69)
       72. Using different language, the Senate Amendment and the 
     House bill, require states receiving grants under this part 
     to establish English language standards and benchmarks. The 
     Senate Amendment, but not the House bill, specifically states 
     that such benchmarks and standards must be derived from 
     speaking, listening, reading, and writing. The House bill has 
     a similar provision. (See note 76).
       HR/SR (see note 69)
       73. The House bill, but not the Senate Amendment, requires 
     states to agree to coordinate its programs and activities 
     with other programs and activities as appropriate.
       HR/SR (see note 69)
       74. The Senate Amendment, but not the House bill, requires 
     SEAs and specially qualified agencies to consult with other 
     groups, such as LEAs, education-related community groups and 
     nonprofit organizations, parents, teachers, school 
     administrators and second language acquisition specialists in 
     setting performance objectives.
       HR/SR (see note 69)
       75. The House bill, but not the Senate Amendment, requires 
     states to monitor the progress of students enrolled in such 
     programs and activities in attaining English proficiency and 
     attaining challenging state academic content standards and 
     academic achievement standards.
       HR/SR (see note 69)
       76. Using different language, the Senate Amendment and the 
     House bill, require states or specially qualified agencies to 
     establish English language standards and benchmarks. The 
     House bill and the Senate Amendment, require that such 
     standards be aligned with state academic content and 
     achievement standards. The Senate Amendment, but not the 
     House bill, requires that such benchmarks and standards be 
     derived from speaking, listening, reading, and writing.
       HR/SR (see note 69)
       77. The Senate Amendment, but not the House bill, requires 
     states to describe how SEAs will hold LEAs accountable for 
     meeting all performance objectives and making adequate yearly 
     progress with LEP students.
       HR/SR (see note 69)
       78. Using different language, the House bill and the Senate 
     Amendment, require states to annually measure LEP students 
     progress in becoming English proficient. The House bill, but 
     not the Senate Amendment, requires states to ensure that 
     eligible entities comply with annual testing requirements for 
     LEP students in reading and language arts who have been in 
     the US for 3 or more consecutive years. The Senate Amendment, 
     but not the House bill, requires states to annually measure 
     LEP students progress in becoming English proficient as 
     quickly and as effectively as possible.
       HR/SR (see note 69)
       79. The Senate Amendment, but not the House bill, includes 
     the same requirements for specially qualified agencies.
       HR/SR (see note 69)
       80. The House bill, but not the Senate Amendment, 
     stipulates that the application must contain an assurance 
     that the state will develop high-quality annual assessments 
     to measure English language proficiency and require eligible 
     entities receiving a subgrant to annually assess all LEP 
     children for English proficiency. The Senate Amendment 
     requires annual assessments to measure the English 
     proficiency of all LEP students under Title I.
       HR/SR (see note 69)
       81. The Senate Amendment, but not the House bill, requires 
     specially qualified agencies to describe the activities for 
     which assistance is sought, how such activities will increase 
     the effectiveness with which students develop English 
     proficiency as quickly and effectively as possible, while 
     meeting state content and student performance standards.
       HR/SR (see note 69)
       82. The House bill, but not the Senate Amendment, 
     stipulates that states must develop annual performance 
     objectives as part of the state application, and must include 
     percentage increases in performance on annual assessments in 
     reading, writing, speaking, and listening comprehension as 
     compared to the preceding school year. The Senate Amendment 
     requires states to develop annual performance objectives 
     under Sec. 3329
       HR/SR (see note 69)
       83. The Senate Amendment, but not the House bill, 
     stipulates that the SEA must describe how LEAs will be given 
     the flexibility to teach LEP students using language 
     instruction curriculum that is tied to scientifically based 
     research and demonstrated to be effective, and in a manner 
     determined to be the most effective by the LEA.
       HR/SR (see note 69)
       84. The House bill, but not the Senate Amendment, 
     stipulates that states must require eligible entities to use 
     subgrants in ways that will build the capacity of such 
     recipient to continue to offer high-quality English language 
     programs that assist LEP children in attaining challenging 
     state academic content standards and achievement standards 
     once assistance is no longer available.
       HR/SR (see note 69)
       85. The Senate Amendment, but not the House bill, requires 
     the Secretary to approve a state or specially qualified 
     agency plan that meets all of the requirements after using a 
     peer review process.
       HR with an amendment to strike ``and holds reasonable . . . 
     in section 3321(b).''
       86. The Senate Amendment, but not the House bill, 
     stipulates that each state or specially qualified agency plan 
     must remain in effect for the duration of the SEAs or 
     specially qualified agency's participation under this part 
     and must be periodically reviewed and revised by the SEA or 
     specially qualified agency to reflect changes to strategies 
     and programs carried out. The House bill, but not the Senate 
     Amendment, provides such grants for the fiscal year in which 
     it is applied for. (See note 42)
       HR
       87. The Senate Amendment, but not the House bill, requires 
     the SEA or specially qualified agency to submit significant 
     changes to their plans to the Secretary. The Secretary must 
     approve such changes, but has the right to deny approval if 
     it deems such changes to not meet the requirements or fulfill 
     the purposes of the grants.
       HR with an amendment to insert the following language as 
     (2)(A):
       ``(A) Amendments.--If the State educational agency or 
     specially qualified agency amends the plan, such agencies 
     shall submit such amendments to the Secretary.''
       88. The Senate Amendment, but not the House bill, permits 
     states to submit a plan as part of a consolidated plan.
       HR
       89. The Senate Amendment, but not the House bill, requires 
     the Secretary to provide technical assistance in the 
     development of English language development standards and 
     English language proficiency assessments, if requested.
       HR with an amendment to insert the following language as 
     (2)(f):
       ``(f) Secretary Assistance.--The Secretary shall provide 
     technical assistance, if requested, in the development of 
     English language proficiency standards, objectives, and 
     assessments.
       90. The House bill, but not the Senate Amendment, describes 
     the main purposes of the subgrants.
       SR with an amendment to strike ``reading'' after ``based on 
     scientifically based'' and ``and sound research and theory'' 
     before ``on teaching limited'' in (a). Strike ``English'' and 
     insert ``instructional educational programs'' after the word 
     ``language'' in paragraphs (1)(2) and (3).
       91. The Senate Amendment, but not the House bill, provides 
     for grants to LEAs to carry out Sec. 3327(b) (Grants for the 
     education of LEP students) and 3327 (c) (Grants for the 
     education of immigrant students). Both the House bill and 
     Senate Amendment provide that at least 95 percent of federal 
     funding be used for making subgrants to eligible entities and 
     LEAs. (See note 131)
       HR
       92. The Senate Amendment, but not the House bill, requires 
     that not more then 1 percent of funds received by LEAs be 
     used for administrative costs.
       HR with an amendment to strike ``1 percent'' and insert ``2 
     percent''.
       93. Using different language and criteria, the House bill 
     and the Senate Amendment, provide for activities of LEAs and 
     eligible entities receiving subgrants from states. The

[[Page 25855]]

     House bill, but not the Senate Amendment, stipulates that 
     states may make a subgrant to eligible entities to achieve 
     one of the purposes by undertaking activities to improve the 
     understanding and use of the English language based on a 
     child's learning skills and attainment of challenging state 
     academic content and student achievement standards. The 
     Senate Amendment, but not the House bill, stipulates that 
     grant funds shall be used for specific criteria.
       HR/SR with an amendment to strike all legislative language 
     in notes 93-105 and insert:
       ``(b) Authorized Subgrantee Activities.--
       (1) In general.--Subject to paragraph (2), a state 
     educational agency may make a subgrant
     to an eligible entity from funds received by the State under 
     this subpart to achieve one of the purposes described in 
     subsection (a) by undertaking one or more of the following 
     activities--
       ``(A) Upgrading program objectives and effective 
     instructional strategies.
       ``(B) Improving the instruction program for limited English 
     proficient students by identifying, acquiring, and upgrading 
     curricula, instructional materials, educational software, and 
     assessment procedures.
       ``(C) Providing.--
       (i) tutorials and academic or vocational education for 
     limited English proficient children; and
       ``(ii) intensified instruction.
       ``(D) Developing and implementing elementary or secondary 
     school language instruction educational programs that are 
     coordinated with other relevant programs and services.
       ``(E) Improving the English language proficiency and 
     academic performance of limited English proficient children.
       ``(F) Providing community participation programs, family 
     literacy services and parent outreach and training activities 
     to limited English proficient children and their families to 
     improve the English language skills of limited proficient 
     children, and assist parents in helping their children to 
     improve their academic performance, and become active 
     participants in the education of their children;
       ``(G) Improving the instruction of limited English 
     proficient children by providing for the acquisition or 
     development of education technology or instructional 
     materials, access to and participation in electronic networks 
     for materials, training and communications, and incorporation 
     of such resources in curricula and programs, such as those 
     funded under this subpart; and
       ``(H) Other activities that are consistent with the 
     purposes of this part.
       (c) Required Subgrantee Activities.--
       ``(1) An eligible entity receiving a grant under this 
     subpart shall use the grant funds --
       ``(A) to increase limited English proficient students' 
     proficiency in English by providing high-quality language 
     instruction educational programs that are--
       ``(i) based on scientifically based research demonstrating 
     the effectiveness of the programs in increasing English 
     proficiency; and
       ``(ii) based on scientifically based research demonstrating 
     the effectiveness of the programs in increasing student 
     performance in the core academic subjects;
       ``(B) to provide high-quality professional development to 
     classroom teachers, (including teachers in classroom settings 
     that are not the settings of language instruction educational 
     programs) principals, administrators, and other school or 
     community-based organizational personnel to improve the 
     instruction and assessment of children who are limited 
     English proficient children, that are--
       ``(i) designed to enhance the ability of the teachers to 
     understand and use curricula, assessment measures, and 
     instructional strategies for limited English proficient 
     students;
       ``(ii) based on scientifically based research demonstrating 
     the effectiveness of those activities in increasing students' 
     English proficiency or substantially increasing the subject 
     matter knowledge, teaching knowledge, and teaching skills of 
     those teachers; and
       ``(iii) of sufficient intensity and duration (not to 
     include activities such as 1-day or short-term workshops and 
     conferences) to have a positive and lasting impact on the 
     teachers' performance in the classroom, except that this 
     clause 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 based on an assessment of the needs of the 
     teacher, the supervisor, the students of the teacher, and the 
     local educational agency.''
       94. The House bill, but not the Senate Amendment, lists 
     activities that may be undertaken by eligible entities, such 
     as, upgrading program objectives and effective instructional 
     strategies as an activity.
       HR/SR (see note 93)
       95. The House bill, but not the Senate Amendment, 
     stipulates that improving the instruction program for LEP 
     students by identifying, acquiring, and upgrading curricula, 
     instructional materials, educational software, and assessment 
     procedures is also an activity.
       HR/SR (see note 93)
       96. The Senate Amendment, but not the House bill, 
     stipulates that grants funds must be used to increase LEP 
     students' proficiency in English by providing high-quality 
     language instruction education programs that are tied to 
     scientifically based research demonstrating the effectiveness 
     of the programs in increasing English proficiency and in 
     increasing student performance in the core academic subjects.
       HR/SR (see note 93)
       97. The House bill, but not the Senate Amendment, further 
     lists activities that may be undertaken by eligible entities, 
     such as providing tutorials and academic or vocational 
     education and intensified instruction for LEP children.
       HR/SR (see note 93)
       98. The House bill, but not the Senate Amendment stipulates 
     that developing and implementing elementary and secondary 
     school English language instructional programs coordinated 
     with other relevant programs and services as an activity.
       HR/SR (see note 93)
       99. Using different language, the House bill and the Senate 
     Amendment, provide for professional development activities to 
     improve the instruction of LEP children. The House bill, but 
     not the Senate Amendment, extends such activities to 
     principals, administrators, and other school or community-
     based organizational personnel to improve instruction and 
     assessment. The Senate Amendment, but not the House bill, 
     further requires such activities to be tied to scientifically 
     based research.
       HR/SR (see note 93)
       100. The Senate Amendment, but not the House bill, further 
     provides that professional development activities be of 
     sufficient intensity and duration to have a lasting impact on 
     the teachers' performance in the classroom. This clause does 
     not apply for long-term, comprehensive professional 
     development plans already established.
       HR/SR (see note 93)
       101. The House bill, but not the Senate Amendment, further 
     requires the improvement of the English language proficiency 
     and academic performance of LEP children.
       HR/SR (see note 93)
       101. The House bill, but not the Senate Amendment, requires 
     the improvement of the instruction of LEP children by 
     acquiring or development of educational technology or 
     instructional materials, training and communications, and 
     incorporation of such resources in curricula and programs.
       HR/SR (see note 93)
       102. The House bill, but not the Senate Amendment, requires 
     the development of tutoring programs for LEP children that 
     provide early intervention and intensive instruction to 
     increase academic achievement, graduation rates and prepare 
     students for transitioning into classrooms where instruction 
     is not tailored for LEP children.
       HR/SR (see note 93)
       104. Using different language, the House bill and Senate 
     Amendment, provide for parental participation and outreach.
       HR/SR (see note 93)
       105. The House bill, but not the Senate Amendment, includes 
     other activities.
       HR/SR (see note 93)
       106. The House bill, but not the Senate Amendment, requires 
     any program or activity undertaken by eligible entities using 
     a subgrant from a state be designed to assist students in 
     attaining English proficiency within three years of 
     attendance in the U.S. and move such students into classrooms 
     where instruction is not tailored for limited English 
     proficient children.
       HR
       107. The House bill, but not the Senate Amendment, 
     stipulates that eligible entities must select one or more 
     methods or forms of instruction to be used to assist LEP 
     children in attaining English and to meet challenging state 
     academic content and student academic achievement standards.
       SR
       108. The House bill, but not the Senate Amendment, 
     stipulates that states have the discretion to decide the 
     duration of a subgrant to an eligible entity.
       SR
       109. The Senate Amendment, but not the House bill, provides 
     for grant awards to meet the needs of immigrant students 
     under Sec. 3324(c).
       HR
       110. The Senate Amendment, but not the House bill, 
     specifies activities to provide support for immigrant 
     children.
       HR with an amendment to strike ``payment of salaries'' and 
     insert ``support for'' before ``personnel'' in (2);
       Strike ``overhead costs, costs of construction, 
     acquisition, or rental of space'' in (5).
       Insert the following language as (6) and (7):
       ``(6) other instructional services that are designed to 
     assist immigrant students to achieve in elementary and 
     secondary schools in the United States, such as programs of 
     introduction to the educational system, and civics education; 
     and
       ``(7) activities, coordinated with community-based 
     organizations, institutions of higher education, private 
     sector entities, or other entities with expertise in working 
     with immigrants, to assist parents of immigrant students by 
     offering comprehensive community services.''
       111. The Senate Amendment, but not the House bill, includes 
     a provision to insure

[[Page 25856]]

     that funds are used to supplement and not supplant other 
     federal, state and local public funds.
       HR
       112. Using different language, both the House bill and the 
     Senate Amendment, require eligible entities to apply for 
     subgrants from the state. The House bill, but not the Senate 
     Amendment uses ``application.'' The Senate Amendment, but not 
     the House bill, uses ``plan.''
       HR
       113. Using different language and criteria, both the House 
     bill and the Senate Amendment, stipulate the requirements for 
     submitting a plan or application.
       HR
       114. The House bill, but not the Senate Amendment, requires 
     an eligible entity to describe the programs and activities to 
     be developed, implemented, and administered under the 
     subgrant.
       HR/SR with an amendment to strike all legislative language 
     in notes 114-121 and insert:
       ``(b) Contents.--Each plan submitted under subsection (a) 
     shall--
       ``(A) describe the programs and activities proposed to be 
     developed, implemented and administered under the subgrant;
       ``(B) describe how the eligible entity will use the grant 
     funds to meet all achievement objectives described in section 
     3329;
       ``(C) describe how the eligible entity will hold elementary 
     schools and secondary schools accountable for--
       ``(i) meeting the achievement objectives described in 
     section 3329;
       ``(ii) making adequate yearly progress with limited English 
     proficient students as described in section 1111(b)(2); and
       ``(iii) annually measuring the English language proficiency 
     of limited English proficient students, so that such students 
     served by the programs carried out under this subpart develop 
     proficiency in English while meeting state academic content 
     and student academic achievement standards as required by 
     section 1111(b)(1);
       ``(D) describe how the eligible entity will promote 
     parental and community participation in programs for limited 
     English proficient students;
       ``(E) contain an assurance that the local educational 
     agency consulted with teachers, researchers, school 
     administrators, and parents, and if appropriate, with 
     education related community groups and nonprofit 
     organizations, and institutions of higher education, in 
     developing the local educational agency plan;
       ``(F) describe how language instruction educational 
     programs will ensure that limited English proficient students 
     being served by the programs develop English language 
     proficiency.''
       115. The Senate Amendment, but not the House bill, requires 
     applicants to describe how such a subgrant will meet all 
     performance objectives.
       HR/SR (see note 114)
       116. The House bill, but not the Senate Amendment, requires 
     applicants to describe how such subgrant will be used to 
     satisfy the requirement of moving LEP children out of 
     specialized classrooms.
       HR/SR (see note 114)
       117. The Senate Amendment, but not the House bill, requires 
     applicants to describe how they will measure the progress of 
     LEP children and hold schools accountable for making such 
     progress.
       HR/SR (see note 114)
       118. The Senate Amendment, but not the House bill, requires 
     applicants to describe how they will promote parental and 
     community participation in LEP programs.
       HR/SR (see note 114)
       119. The Senate Amendment, but not the House bill, requires 
     applicants to contain assurances that they consulted with 
     appropriate experts and officials in developing the local 
     educational agency plan.
       HR/SR (see note 114)
       120. Using similar language, the House bill and the Senate 
     Amendment, require applicants to describe how they will use 
     disaggregated results of student assessments and other 
     measures to annually review the progress of schools within 
     its jurisdiction to determine if such schools are making AYP 
     necessary to ensure that LEP students will meet the state's 
     proficient level of performance.
       HR/SR (see note 114)
       121. Placed in a different order and using different 
     language, both the House bill and the Senate Amendment, 
     require applicants to describe how language instruction 
     programs will ensure that LEP students develop English 
     proficiency. The Senate Amendment, but not the House bill, 
     states as quickly and effectively as possible. The House 
     bill, but not the Senate Amendment, states after 3 academic 
     years of enrollment. (See note 127)
       HR with an amendment to insert ``and attain'' after 
     ``develop'' and strike ``as quickly and effectively as 
     possible.''
       122. The House bill, but not the Senate Amendment, 
     stipulates additional requirements that must be included for 
     an application to be approved.
       HR
       123. The House bill and the Senate Amendment have similar 
     provisions. The House bill, but not the Senate Amendment, 
     requires eligible entities to use qualified personnel who are 
     proficient in English, including written and oral 
     communication skills. The Senate Amendment, but not the House 
     bill, stipulates that LEAs certify to the SEAs that all 
     teachers for LEP students are fluent in English and any other 
     language used for instruction.
       HR with an amendment to insert ``including written and oral 
     communication skills,'' after ``instruction,'' and insert 
     Report Language:
       Report Language:
       Although various educational staff, such as para-
     professionals, serve a critical need in language instruction 
     educational programs, teachers of such programs are the 
     primary provider of instruction to limited English proficient 
     students. As such, it is the intent of Conferees to ensure 
     that teachers in language instruction educational programs be 
     well-qualified in the designated method or instructional 
     approach used with limited English proficient students.
       124. The House bill, but not the Senate Amendment, requires 
     eligible entities to ensure that all agencies are complying 
     with the parental consent requirements each school year;
       SR
       125. The House bill, but not the Senate Amendment, requires 
     eligible entities to assess the English proficiency of all 
     children with LEP participating in a program;
       SR
       126. The House bill, but not the Senate Amendment, requires 
     eligible entities to have based its proposal on 
     scientifically based reading research and sound research and 
     theory on teaching LEP children.
       SR with an amendment to strike ``reading'' and ``sound 
     research and theory'' in (D).
       127. Placed in a different order and using different 
     language, both the House bill and the Senate Amendment, 
     require applicants to describe how language instruction 
     programs will ensure LEP students to develop English 
     proficiency. The House bill, but not the Senate Amendment, 
     states after 3 academic years of enrollment. The Senate 
     Amendment, but not the House bill, states as quickly and 
     effectively as possible. (See note 121)
       HR
       128. The House bill, but not the Senate Amendment, requires 
     eligible entities to ensure that programs will enable 
     children to speak, read, write and comprehend the English 
     language.
       SR
       129. The House bill, but not the Senate Amendment, requires 
     eligible entities to ensure that they are not in violation of 
     any state law or state constitutional law regarding the 
     education of LEP children.
       SR
       130. The House bill, but not the Senate Amendment, requires 
     states to consider the quality of the application and ensure 
     it meets the purposes of the subgrant.
       SR
       131. Using different language, the House bill and the 
     Senate Amendment require states to expend at least 95 percent 
     of their federal grant money for making subgrants to eligible 
     entities and LEAs. (See note 91)
       LC
       132. The House bill, but not the Senate Amendment, requires 
     states to reserve 75 percent of their funds for subgrants to 
     eligible entities. The House bill, but not the Senate 
     Amendment, distributes funds only to LEAs if the number of 
     LEP children and youth is at least 500 students, or 3 percent 
     of the total population.
       HR
       133. Using similar language, the House bill and the Senate 
     Amendment require states to award funds to eligible entities 
     and LEAs based on their share of LEP children.
       HR
       134. The Senate Amendment, but not the House bill, requires 
     a state to award an LEA a minimum grant of $10,000.
       HR
       135. The House bill, but not the Senate Amendment, requires 
     states to reallocate any funding that will not be used during 
     a fiscal year.
       SR
       136. The House bill, but not the Senate Amendment, reserves 
     25 percent of its remaining funds to award competitive 
     subgrants to eligible entities experiencing significant 
     increases in LEP children.
       HR
       137. The Senate Amendment, but not the House bill, requires 
     states to reserve up to 15 percent for LEAs experiencing a 
     substantial increase in immigrant children enrollment.
       HR (See note 138).
       138. Using different language, the House bill and the 
     Senate Amendment, define the terms ``significant increases'' 
     and ``substantial increase.'' The House bill, but not the 
     Senate Amendment, provides awards to eligible entities with 
     ``significant increases'' (as determined by the state) in LEP 
     children over the 2 previous years or who do not qualify for 
     subgrants under the 75 percent formula distribution.
       HR/SR with an amendment to strike House (2) and Senate (B) 
     and combine Senate (A) and House (1) to insert as the 
     following new (A):
       ``(A) In general.--A state educational agency receiving a 
     grant under this part for

[[Page 25857]]

     a fiscal year shall reserve not more than 15 percent of the 
     agency's allotment under section 3323(b)(2) to award grants 
     to local educational agencies in the state that have 
     experienced significant increases, as compared to the 
     previous 2 years, in the percentage or number of immigrant 
     children and youth, that have enrolled in public and 
     nonpublic elementary and secondary schools in the geographic 
     areas under the jurisdiction of, or served by, such entities 
     during the previous fiscal year for which the subgrant is 
     made and shall equally consider local educational agencies 
     that have limited or no experience in serving immigrant 
     children and youth.''
       139. The Senate Amendment, but not the House bill, defines 
     ``substantial increase'' as an increase in an LEA's immigrant 
     enrollment of at least 20 percent or 50 children relative to 
     the preceding year, or as an increase of at least 20 percent 
     in an LEA's immigrant enrollment for which the LEA has 
     limited or no experience in educating LEP students.
       SR
       140. Both the House bill and Senate Amendment provide for 
     the authorization of appropriations. The House bill, but not 
     the Senate Amendment, authorizes $750 million for FY 2002 and 
     such sums through FY 2006. The Senate Amendment, but not the 
     House bill, authorizes $700 million for the bilingual 
     education program for FY 2002 and such sums through FY 2008.
       SR with amendment to change 4 to 5 succeeding years.
       141. The Senate Amendment, but not the House bill, 
     authorizes that for any fiscal year that funds appropriated 
     for the bilingual education program are $700 million or more, 
     the funds should be used for the state and local grants for 
     language minority students in Part D.
       HR with an amendment to strike the language, conform to new 
     structure and insert:
       (b) State and Local Grants.--Notwithstanding subsection 
     (a), for any fiscal year for which the total amount of funds 
     appropriated for Parts A and C are not less than $650 
     million, all such funds shall be used to carry out Part D.
       Report Language:
       The Conferees support the reform measures being included in 
     the formula grant program (Title III, Part A). By making 
     these reforms contingent upon a set appropriated amount, the 
     Conferees intend to make these reforms permanent and 
     encourage the appropriators to maintain such amount for all 
     succeeding fiscal years.
       142. The Senate Amendment, but not the House bill, contains 
     a Sense of the Senate that Congress should appropriate $750 
     million to carry out Parts A and D and authorizes significant 
     increases in appropriations for FY 2003 through FY 2008. This 
     was an amendment to Title X of the Senate Amendment.
       SR with an amendment to strike all of (a).
       SR on (b)
       143. The Senate Amendment, but not the House bill, 
     stipulates that Parts A, C, E and F are not in effect if Part 
     D is enacted. Part D is only enacted when the appropriation 
     is $700 million or more.
       HR with amendment to conform to new structure
       144. The House bill, but not the Senate Amendment, requires 
     subgrant recipients to submit biennial evaluations to the 
     state. The evaluation must include programs and activities 
     conducted by the entity; the progress made by LEP students in 
     meeting challenging state academic content and student 
     achievement standards; the number and percentage of LEP 
     students attaining English proficiency; and the progress made 
     by students in meeting challenging state academic content and 
     student achievement standards after such students are no 
     longer receiving services. The Senate Amendment, but not the 
     House bill, also requires increases in the number and 
     percentage of LEP students attaining English proficiency. 
     (See note 148)
       SR with an amendment to:
       Strike ``subpart 1'' and insert ``this part'' after 
     ``under'' and strike ``of'' and insert ``that includes'' in 
     (a);
       Insert ``a description of'' before ``the programs'' and 
     strike ``subpart 1'' and insert ``this part for'' in (1).
       145. The House bill, but not the Senate Amendment, 
     stipulates that the evaluations must be used for improvement 
     of programs and activities; the effectiveness of such 
     programs and activities in teaching LEP children English and 
     meet challenging state academic standards; and whether or not 
     to continue funding for programs and activities.
       SR
       146. The House bill, but not the Senate Amendment, 
     stipulates the components of the evaluation such as an 
     evaluation of whether or not students enrolled in a program 
     or activity have attained English proficiency; and have 
     achieved a working knowledge of the English language.
       SR with an amendment to strike (c)(1), (A), (B) and (2) and 
     insert:
       ``(c) Evaluation Components.--An evaluation provided by an 
     eligible entity under subsection (a) shall provide an 
     evaluation of students enrolled in a program or activity 
     conducted by the entity using funds under this title, 
     including the percentage of students that --
       ``(1) are making progress in attaining English proficiency, 
     including the percentage of students that have achieved 
     proficiency in the English language and the percentage of 
     students that have transitioned into classrooms not tailored 
     for limited English proficient students;
       ``(2) have achieved a level of proficiency in the English 
     language that is sufficient to permit them to achieve in 
     English, in a classroom that is not tailored to limited 
     English proficient children;
       ``(3) are meeting challenging state academic content 
     standards and challenging state student academic achievement 
     standards expected of all students;
       ``(4) are not receiving waivers for grades 3-8 testing 
     under section 1111(b)(H)(iv); and
       ``(5) such other information as the state may require.''
       147. The House bill, but not the Senate Amendment, requires 
     states to approve evaluation measures that are designed to 
     assess oral language proficiency in Kindergarten, oral 
     language proficiency, including speaking and listening skills 
     in first grade, including reading and writing proficiency in 
     second grade and higher, and attainment of challenging state 
     student academic achievement standards.
       SR with an amendment to strike (d)(1)--(4) and insert:
       ``(d) Evaluation Measures.--In preparing an evaluation for 
     use by an entity under subsection (a), a state shall approve 
     evaluation measures, as applicable, for use under subsection 
     (c) that are designed to assess -
         ``(1) the progress of students in attaining English 
     proficiency that shows the level of oral language, including 
     speaking and listening, reading, and writing skills in 
     English;
         ``(2) student attainment of challenging state student 
     academic achievement standards on assessments described in 
     section 1111(b)[check reference]; and
         ``(3) progress in meeting the state annual achievement 
     objectives as consistent with section 3329.''
       148. The Senate Amendment, but not the House bill, requires 
     SEAs or specially qualified agencies to develop annual 
     measurable performance objectives for LEP programs and must 
     specify an incremental percentage increase for each 
     performance objective for each fiscal year, including 
     increases in the number of LEP students demonstrating 
     increases on annual assessments.
       HR with an amendment to strike SEC. 3329 (a) and insert:

     SEC. 3329. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY

       ``(a) In General.--Each state educational agency or 
     specially qualified agency receiving a grant under this title 
     shall develop annual measurable achievement objectives for 
     limited English proficient students served under this title 
     with respect to helping such students develop and attain 
     proficiency in English while meeting state academic content 
     and student academic achievement standards as required by 
     section 1111(b)(1). Such achievement objectives shall be 
     developed in a manner that considers the amount of time an 
     individual student has been enrolled in a language 
     instruction educational program and assigns such objectives 
     in an appropriate manner to reflect such enrollment, and 
     shall be consistent in the method and measurement for 
     determining the increases described in paragraphs (1), (2) 
     and (4). Measurable achievement objective for students served 
     in language instruction educational programs under this title 
     shall include--
       ``(1) at a minimum, annual increases in the number or 
     percentage of students making progress made by students in 
     learning the English language;
       ``(2) at a minimum, annual increases in the number or 
     percentage of students attaining English language proficiency 
     by the end of each school year, as determined by a valid and 
     reliable assessment of English proficiency consistent with 
     section 1111(b)(7);
       ``(3) meeting adequate yearly progress for limited English 
     proficient student established in section 1111(b)(2)(C)(iv); 
     and
       ``(4) may include, at the discretion of the State, the 
     number or percentage of students not receiving waivers for 
     grades 3-8 testing under section 1111(b)(H)(iv), except that 
     States shall not apply such requirement to eligible entities 
     that in a given school year--
       ``(A) have experienced a large influx of limited English 
     proficient children or immigrant children and youth;
       ``(B) enroll a statistically significant number of 
     immigrants from countries where such immigrants had little or 
     no access to formal education; or
       ``(C) have a statistically significant number of immigrants 
     who have fled from war and natural disaster.''
       Report Language:
       To Modify Achievement Objectives 3329(a)--The Conferees 
     wish to clarify that annual measurable achievement objectives 
     described under 3329(a) for developing and attaining English 
     proficiency be derived from scientifically-based research on 
     teaching limited English proficient children such as, but not 
     limited to research conducted by the READ Institute, the 
     National Academy of Sciences and the Center for Applied 
     Linguistics, and be established by states in a manner that 
     reflects the full range of second language proficiency, 
     including developmentally-appropriate communication and 
     academic skills.

[[Page 25858]]

       To Modify Achievement Objectives 3329(a)(1) and 
     3329(a)(2)--In providing for achievement objectives under 
     section 3329(a), the Conferees intend to reflect progress in 
     the development and the attainment of English language 
     proficiency among limited English proficient students. In 
     developing these objectives, states should distinguish 
     between learning the English language and attaining English 
     language proficiency by establishing such objectives in a 
     manner that reflects the number of children showing improved 
     achievement on assessments of English language proficiency 
     (consistent with section 3329(a)(1)), and that reflects the 
     number of children within a common group or cohort of 
     students that are enrolled in a language instruction 
     educational program from year to year, and that attain full 
     English proficiency (consistent with section 3329(a)(2)).
       149. The Senate Amendment, but not the House bill, requires 
     SEAs and specially qualified agencies to be held accountable 
     for meeting annual measurable performance objectives and 
     meeting AYP.
       HR with an amendment to strike (b)(1) and (b)(2) and 
     insert:
       ``(b) Accountability.--
       ``(1) For States.--Each state educational agency receiving 
     a grant under this title shall hold eligible entities 
     accountable for meeting the annual measurable achievement 
     objectives under this part and adequate yearly progress for 
     limited English proficient students under section 
     1111(b)(2)(B).
     ``(2) Improvement Plan.--(A) If the state determines, based 
     on the objectives described in subsection (a) that the entity 
     has failed to make progress toward meeting the annual 
     measurable achievement objectives for limited English 
     proficient children for two consecutive years, the entity 
     shall develop an improvement plan to ensure that the entity 
     meets such annual measurable objectives that specifically 
     addresses factors that prevented the entity from achieving 
     their objectives.
       ``(3) Technical Assistance.--During the development of the 
     improvement plan described in subparagraph (2), and 
     throughout its implementation, the State educational agency 
     shall --
       ``(A) provide technical assistance to eligible entities;
       ``(B) provide technical assistance, if applicable, to 
     schools served by such entity that need assistance to enable 
     the local educational agency to meet the annual measurable 
     objectives described in subsection (a);
       ``(C) develop, in consultation with the entity, 
     professional development strategies and activities, based on 
     scientifically-based research that the agency will use to 
     meet the annual measurable objectives described in subsection 
     (a) and require such entity to utilize such strategies and 
     activities;
       ``(D) develop, in consultation with the entity, a plan to 
     incorporate strategies and methodologies, based on 
     scientifically-based research, to improve the specific 
     program or method of instruction provided to limited English 
     proficient students.
       ``(4) Accountability.--If the State determines the entity 
     has failed to meet the objectives in subsection (a) for 
     limited English proficient children for four consecutive 
     years, the State educational agency shall--
     ``(A) require such entity to modify their curriculum, 
     program, and method of instruction; or
       ``(B) make a determination whether such entity shall 
     continue to receive funds related to the entity's failure to 
     make progress on the measurable objectives in (a); and
       ``(C) require such entity to replace educational personnel 
     relevant to the entity's failure to make progress on the 
     measurable objectives in (a).''
       Report Language:
       For the purposes of making determinations as described in 
     subsections (b)(2) and (b)(4), a State educational agency 
     shall assign equal weight to annual goals for learning and 
     attaining English (consistent with (a)(1) and (a)(2)), and to 
     annual objectives for academic proficiency (consistent with 
     (a)(3)).
       150. The House bill, but not the Senate Amendment, requires 
     states receiving a grant to submit a report to the Secretary 
     every two years on the programs and activities undertaken by 
     the state and the effectiveness of such programs and 
     activities in improving the education of LEP children.
       SR
       151. The House bill, but not the Senate Amendment, requires 
     the Secretary to prepare and submit a report every two years 
     to the respective House and Senate committees.
       SR with an amendment to strike paragraphs (1)--(5) and to 
     insert the following as new paragraphs (1)--(8):
       ``(b) Secretary.--Every second year, the Secretary 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 
     report on--
       ``(1) programs and activities undertaken to serve limited 
     English proficient students under part and, the effectiveness 
     of such programs and activities in improving the academic 
     achievement and English proficiency of children who are 
     limited English proficient;
       ``(2) the types of language instructional educational 
     programs used by local educational agencies or eligible 
     entities receiving funding under this title to teach limited 
     English proficient children;
       ``(3) a critical synthesis of data reported by the states, 
     pursuant to section 3124, when applicable;
       ``(4) an estimate of the number of teachers certified in 
     the field of language instruction educational programs and 
     the education of limited English proficient students, and an 
     estimate of the number of such teachers which will be needed 
     for the succeeding 5 fiscal years;
       ``(5) the major findings of scientifically based research 
     carried out under this title;
       ``(6) the number of programs or projects, if any, that were 
     terminated because they were not able to reach program goals;
       ``(7) the number of limited English proficient children 
     served by local educational agencies or eligible entities 
     receiving funding under this title who were transitioned out 
     of language instruction educational programs funded under 
     this title into classrooms where instruction is not tailored 
     for limited English proficient children; and
       ``(8) other information gathered from the reports submitted 
     under section 3122(a), 3107, and 3124(g) when applicable.''
       152. The House bill, but not the Senate Amendment, requires 
     the Secretary to coordinate all programs serving language 
     minority and LEP students administered by the Department and 
     other agencies.
       SR
       153. The House bill, but not the Senate Amendment, defines 
     ``children and youth.''
       SR
       Definition linked to note 222.
       154. The Senate Amendment, but not the House bill, defines 
     ``core academic subjects.''
       HR/SR to move to General Provisions of the Act.
       155. The House bill, but not the Senate Amendment, defines 
     ``community-based organization.'' The House bill also defines 
     this in Title VIII--General Provisions.
       SR
       156. The Senate Amendment, but not the House bill, defines 
     ``immigrant children and youth.''
       HR
       157. The House bill, but not the Senate Amendment, defines 
     ``eligible entity.''
       SR
       158. The Senate Amendment, but not the House bill, defines 
     ``language instruction educational program.''
       HR with an amendment to insert ``and attaining'' after 
     ``developing'' in (A);
       Insert ``academic'' after ``State'' in (A);
       Strike ``performance'' and insert ``academic achievement'' 
     in (A);
       Insert ``and attain'' after ``develop'' in (B).
       Strike ``as quickly and effectively as possible'' in both 
     (A) and (B).
       159. The House bill, but not the Senate Amendment, defines 
     ``Native Hawaiian or Native American Pacific Islander Native 
     language educational organization.''
       HR with amendment to use definition on page 121, numbers 9 
     and 10, which reads as follows:
       ``Native american and native american language.--The terms 
     ``Native American and Native American language'' shall have 
     the same meanings given such terms in section 103 of the 
     Native American Languages Act.
       ``Native hawaiian or native american pacific islander 
     native language educational organization.--The term ``Native 
     Hawaiian or Native American Pacific Islander Native Language 
     educational organization'' means a nonprofit organization 
     with a majority of its governing board and employees 
     consisting of fluent speakers of the traditional Native 
     American languages used in the organization's educational 
     programs and with not less than 5 years successful experience 
     in providing educational services in traditional Native 
     American languages.''
       160. The Senate Amendment, but not the House bill, defines 
     the term ``limited English proficient student'' in Part D. 
     The House bill only defines ``limited English proficient 
     student `` in Title VIII--General Provisions.
       HR with an amendment to strike ``opportunity to learn'' and 
     insert ``ability to successfully achieve'' in (4)(D)(ii).
       Move definition to General provisions.
       161. The Senate Amendment, but not the House bill, defines 
     ``local educational agency'' in Part D. The House bill 
     defines it in Title VIII--General Provisions.
       SR
       162. Using different language, the House bill and the 
     Senate Amendment, define ``native language.''
       HR/SR with an amendment to use definition on page 122, 
     number 11, which reads as follows:
       ``Native Language--the term native language, when used with 
     reference to an individual of limited English proficiency, 
     means the language normally used by such individual, or in 
     the case of a child or youth, the language normally used by 
     the parents of the child or youth.''
       163. The Senate Amendment, but not the House bill, defines 
     ``scientifically based research'' in Part D. The House bill 
     defines it in Title VIII--General Provisions.
       SR
       164. Using different language, the House bill and the 
     Senate Amendment, define ``specially qualified agency.''

[[Page 25859]]

       HR with an amendment to add House (6)(B) to Senate (8).
       165. The Senate Amendment, but not the House bill, defines 
     ``state'' in Part D. The House bill defines it in Title 
     VIII--General Provisions.
       SR
       166. The House bill, but not the Senate Amendment, defines 
     ``tribally sanctioned educational authority.''
       SR
       167. The House bill, but not the Senate Amendment, 
     stipulates that nothing shall be construed as to prohibiting 
     LEAs from serving LEP children simultaneously with students 
     with similar needs, in the same educational settings where 
     appropriate; requires states or LEAs to establish, continue, 
     or eliminate any particular type of instructional programs 
     for LEP children; or limit the preservation or use of Native 
     American languages.
       SR
       168. The House bill, but not the Senate Amendment, requires 
     the Secretary to issue regulations that are only necessary to 
     ensure compliance with specific requirements of this part.
       HR
       169. The House bill, but not the Senate Amendment, provides 
     that nothing shall be construed to negate or supersede the 
     legal authority under state law.
       SR
       170. The House bill, but not the Senate Amendment, provides 
     for the protection of federal law guaranteeing a civil right.
       SR
       171. The House bill, but not the Senate Amendment, 
     stipulates that programs that serve Native American children, 
     Native Pacific Island children and children of the 
     Commonwealth of Puerto Rico may include learning and studying 
     their native languages, as long as the primary focus and 
     outcome of such program is to increase English proficiency 
     among such children.
       SR with an amendment to strike ``primary.''
       172. The House bill, but not the Senate Amendment, provides 
     the necessary conforming amendments for this title and 
     changes the name of the office that administers bilingual 
     education programs as well as changes the name of the 
     director.
       SR with an amendment to strike ``Office of Educational 
     Services for Limited English Proficient Children'' and to 
     insert ``Office of English Language Acquisition, Language 
     Enhancement and Academic Achievement for Limited English 
     Proficient Students'' in paragraph (1); Strike ``Director of 
     Educational Services for Limited English Proficient 
     Children'' and insert ``Director of English Language 
     Acquisition, Language Enhancement and Academic Achievement 
     for Limited English Proficient Students'' in (2); and Conform 
     to subsection (b).
       173. The Senate Amendment, but not the House bill, 
     prohibits the Secretary from mandating or stopping the use of 
     a particular curricular or instructional approach to 
     education LEP students.
       HR
       174. The Senate Amendment, but not the House bill, provides 
     for national leadership activities.
       HR
       175. The Senate Amendment, but not the House bill, provides 
     competitive grants for up to five years, for professional 
     development activities.
       HR with an amendment to strike ``bilingual education 
     teachers'' and insert ``teachers that serve limited English 
     proficient students'' in (b); Strike paragraph (1); Insert 
     the following language for (4):
       ``(4) in conjunction with other federal need-based student 
     financial assistance programs, financial assistance and costs 
     related to tuition, fees, and books for enrolling in courses 
     required to complete the degree involved, and meet 
     certification or licensing requirements for teachers that 
     serve limited English proficient students.''
       176. The Senate Amendment, but not the House bill, 
     continues the National Clearinghouse for Bilingual Education.
       HR with an amendment to strike the language and insert the 
     following:
       (c) National Clearinghouse.--The Secretary shall establish 
     and support the operation of a National Clearinghouse for 
     English Language Acquisition and Language Instruction 
     Educational Programs, which shall collect, analyze, 
     synthesize, and disseminate information about second language 
     acquisition programs for limited English proficient students, 
     and related programs. The National Clearinghouse shall--
       (1) be administered as an adjunct clearinghouse of the 
     Educational Resources Information Center Clearinghouses 
     system supported by the Office of Educational Research and 
     Improvement;
       (2) coordinate activities with federal data and information 
     clearinghouses and entities operating federal dissemination 
     networks and systems;
       (3) develop a system for improving the operation and 
     effectiveness of federally funded language instruction 
     educational programs;
       (4) collect and disseminate information on--
       (A) educational research and processes related to the 
     education of limited English proficient students; and
       (B) accountability systems that monitor the academic 
     progress of limited English proficient students in language 
     instruction educational programs, including information on 
     academic content standards and English language proficiency 
     assessments for language instructional programs;
     (5) publish, on an annual basis, a list of grant recipients 
     under this section.
       177. No comparable House provision.
       HR
       178. No comparable House provision.
       HR with an amendment to move (2)(A) to the definition 
     section and to strike (B).
       179. No comparable House provision.
       HR
       180. No comparable House provision.
       HR
       181. No comparable House provisions.
       HR with an amendment to strike the purpose (a)(1), (2), and 
     (3); Strike subparagraph (A) and insert:
       ``(A) In General.--The Secretary is authorized to award 
     grants to eligible entities having applications approved 
     under section 3104 to enable such entities to provide 
     innovative, locally designed, high quality instruction to 
     children and youth of limited English proficiency, by 
     expanding, developing or strengthening language instruction 
     educational programs.''
       Strike ``performance'' and insert ``academic achievement'' 
     in (2)(i)(I);
       Insert ``academic'' before ``services'' in (2)(i)(II);
       Strike ``career counseling'' and insert ``vocational and 
     technical training'' in (B)(v);
       Strike one of the two duplicative (B)(v);
       Insert as (B)(ix):
     ``(ix) acquiring or developing education technology or 
     instructional materials for limited English proficient 
     students, including materials in languages other than 
     English, and participation in electronic networks for 
     materials, training, communication, and incorporation of such 
     resources in curricula and programs.''
       LC--renumber original (B)(ix) as (x).
       182. No comparable House provisions.
       HR with an amendment to:
       Strike the purpose (a) and (1)-(3);
       Strike (b)(1) AUTHORITY, and insert as new (1):
       ``(1) Authority.--The Secretary may award grants to 
     eligible entities having applications approved under section 
     3104 to enable such entities to develop and implement 
     language instruction educational programs, and improve, 
     reform, or upgrade programs or operations that serve 
     significant percentages or numbers of students of limited 
     English proficiency.''
       Strike ``career counseling'' and insert ``vocational or 
     technical training'' in (3)(D);
       Strike ``performance'' and insert ``academic achievement'' 
     in (3)(E);
       Strike ``such as...education programs'' in (3)(G) and 
     insert a period after ``proficiency;''
       Strike ``all'' and ``more than 1 language'' and insert 
     ``English and other languages'' after ``in'' in (3)(I);
       Insert as new (3)(J):
       ``(J) acquiring or developing education technology or 
     instructional materials for limited English proficient 
     students, including materials in languages other than 
     English, and participation in electronic networks for 
     materials, training, communication, and incorporation of such 
     resources in curricula and programs.''
       LC--re-letter original (3)(J) as (3)(K);
        Strike first ``90'' and insert ``45'' and strike second 
     ``90'' and insert ``30'' and insert ``the beginning of the 
     school year or after ``not later than'' in (4);
        Insert ``7112, 7113, 7114, 7115'' in (1)(A)(i) [COVERED 
     GRANT];
  Insert ``to eligible entities'' after ``award grants'' in both (2)(A) 
and (2)(B)
       [Availability].
       Insert new (d)(A)--(D):
       (d) PRIORITY--In awarding grants under this section, the 
     Secretary shall give priority to an entity that--
       (A) experiences a significant increase in the number or 
     percentage of limited English proficient students enrolled in 
     the applicant's programs and has limited or no experience in 
     serving limited English proficient students;
       ``(B) is a local educational agency that serves a school 
     district that has a total district enrollment that is less 
     than 10,000 students;
       ``(C) demonstrates that the applicant has a proven track 
     record of success in helping limited English proficient 
     children and youth learn English and meet high academic 
     standards; or
       ``(D) serves a school district with a large number or 
     percentage of limited English proficient students.
         ``(e) Eligible Entities . . .''
       183. No comparable House provision.
       HR with an amendment to:
       Strike ``bilingual'' and insert ``language instruction 
     educational programs'' in (1)(D) [In General section]; Strike 
     ``with an advisory . . . whose members are'' in (2)(B)(ii); 
     Strike ``and fair'' in (h)(B)(3)(A) and insert ``and'' after 
     ``valid;''
       Move all of (1) PRIORITY (pg. 78) to Section 3103 (pg. 65), 
     strike ``subpart'' and insert ``section'' in (1), strike 
     paragraph (D); and Strike (3) Due Consideration (B).
       184. No comparable House provision.
       HR with an amendment to strike ``bilingual'' and insert 
     ``language instruction educational programs'' in Sec. 3105.

[[Page 25860]]


       185. No comparable House provision.
       HR
       186. No comparable House provision.
       HR with an amendment to strike ``language groups'' and 
     insert ``native languages spoken by student'' and insert 
     ``socioeconomic status'' before the ``and'' in (c)(2); Strike 
     ``performance'' and insert ``academic achievement'' in 
     (c)(3).
       Report Language:
       It is the intent of the Conferees that evaluations 
     submitted to the Secretary under this subpart accurately 
     reflect academic achievement and progress made in developing 
     and attaining English language proficiency for all students 
     enrolled in a particular language instruction educational 
     program. Consistent with section 3107(c)(2), results shall be 
     disaggregated by language group and show the progress made by 
     all students, when applicable.
       187. No comparable House provision.
       HR
       188. No comparable House provision.
       HR with an amendment to:
       Strike ``bilingual'' and insert ``language instruction 
     educational programs'' in Sec. 3221 (a).
       Strike ``Office of Bilingual Education and Minority 
     Language Affairs'' and insert ``Office of English Language 
     Acquisition, Language Enhancement and Academic Achievement 
     for Limited English Proficient Students'' in Sec. 3321(c).
       189. No comparable House provisions.
       HR with an amendment to replace the current Sec. 3122 
     (b)(3) with the following language:
       ``(3) may include establishing (through the National Center 
     for Education Statistics in consultation with experts in 
     second language acquisition and in scientifically-based 
     research on teaching LEP students) a common definition of 
     'limited English proficient student' for purposed of national 
     data collection; and''
       Strike ``bilingual education'' and insert ``second language 
     acquisition, scientifically-based research on teaching LEP 
     students,'' in (b)(4).
       Insert ``LEP'' before ``students or teachers'' and strike 
     ``into bilingual education'' and insert ``that serve such 
     students'', strike the second ``bilingual education'' and 
     insert ``language instruction educational programs'' in 
     (c)(1);
       Replace the current (2)(d) with the following language:
       ``(d) Consultation.--The Secretary shall consult with 
     agencies, organizations, and individuals that are engaged in 
     research and practice on the education of LEP students, 
     language instruction educational programs, or related 
     research, to identify areas of study and activities to be 
     funded under this section.''
       Strike ``Office of Bilingual Education and Minority 
     Language Affairs'' and insert ``Office of English Language 
     Acquisition, Language Enhancement and Academic Achievement 
     for Limited English Proficient Students'' in Sec. 3122 (a).
       190. No comparable House provision.
       HR with an amendment to insert ``academic'' after ``State'' 
     in (a)(2).
       191. No comparable House provision.
       HR with an amendment to strike $200,000 and insert 
     ``$100,000'' in sec. 3124(b).
       192. No comparable House provision.
       HR with an amendment to strike ``bilingual education'' and 
     replace with ``language instruction educational programs'' in 
     sec. 3125 (a), (b)(3), and (b)(4);
       Conform (b)(4) to Note 176.
       193. No comparable House provision.
       HR with an amendment to strike ``voluntary national content 
     standards'' in (b)(2) and insert ``academic'' after ``State'' 
     in (b)(2).
       194. No comparable House provision.
       HR with an amendment to strike all legislative language in 
     notes 194-202 and insert:

     ``SEC. 3131.

     PROFESSIONAL DEVELOPMENT.

       ``(a) Purpose.--The purpose of this subpart is to provide 
     assistance to prepare educators to improve the educational 
     services for limited English proficient children and youth 
     by--
       ``(1) supporting professional development programs and 
     activities to prepare teachers, pupil service personnel, 
     administrators, and other educational personnel working in 
     language instruction educational programs to provide 
     effective services to limited English proficient children and 
     youth;
       ``(2) incorporating curricula and resources on appropriate 
     and effective instructional and assessment methodologies 
     specific to limited English proficient students into pre-
     service and in-service professional development programs;
       ``(3) upgrading the qualifications and skills of non-
     certified educational personnel, including educational 
     paraprofessionals, to enable such personnel to meet high 
     professional standards for educating limited English 
     proficient students;
       ``(4) improving quality of professional development 
     programs in schools or departments of education at 
     institutions of higher education, for educational personnel 
     serving or preparing to serve children and youth of limited 
     English proficiency; and
       ``(5) supporting the recruitment and training of 
     prospective educational personnel to serve limited English 
     proficient students by providing fellowships for 
     undergraduate, graduate, doctoral, and post-doctoral study 
     related to the instruction of such students.
         ``(b) Authorization.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to institutions of higher education, state educational 
     agencies, local educational agencies, or a consortium of one 
     or more local educational agencies, state educational 
     agencies, institutions of higher education, or for profit and 
     nonprofit organizations.
       ``(2) Duration.--Each grant awarded under this subpart 
     shall be awarded for a period of not more than 4 years.
       ``(c) Authorized Activities.--Grants awarded under this 
     subpart shall be used to conduct high-quality professional 
     development programs and effective activities and strategies 
     to improve the quality of instruction and services provided 
     to limited English proficient students, including--
       ``(1) implementing pre-service and in-service professional 
     development programs for teachers that serve limited English 
     proficient students, administrators, and other educational 
     personnel who are preparing to provide educational services 
     for children and youth of limited English proficiency, 
     including professional development programs that assist 
     limited English proficient children to attain English 
     proficiency;
       ``(2) implementing school-based collaborative efforts among 
     teachers to improve instruction in core academic areas, 
     especially reading, for students of limited English 
     proficiency;
       ``(3) developing and implementing programs to assist new 
     teachers who serve limited English proficient students with 
     transitioning to the teaching profession, including mentoring 
     and team teaching with trained and experienced teachers;
       ``(4) implementing programs that support effective teacher 
     use of education technologies to improve instruction and 
     assessment;
       ``(5) developing curricular materials and assessments for 
     teachers that are appropriate to the needs of limited English 
     proficient students, and that are aligned with state academic 
     achievement content standards, including materials and 
     assessments that ensure limited English proficient children 
     attain English proficiency;
       ``(6) integrating and coordinating activities with entities 
     carrying out other programs consistent with the purposes of 
     this subsection and supported under this Act, or other Acts 
     as appropriate;
       ``(7) developing and implementing career ladder programs to 
     upgrade the qualifications and skills of non-certified 
     educational personnel working in, or preparing to work in, 
     language instruction educational programs to enable such 
     personnel to meet high professional standards, including 
     standards for certification and licensure as teachers;
       ``(8) developing and implementing activities to help 
     recruit and train secondary school students as teachers that 
     serve limited English proficient students;
       ``(9) providing fellowships and assistance for costs 
     related to enrollment in a course of study at an institution 
     of higher education that addresses the instruction of 
     children and youth of limited English proficiency in such 
     areas as teacher training, program administration, research, 
     evaluation, and curriculum development, and for the support 
     of dissertation research related to such study, provided that 
     any person receiving such a fellowship or assistance shall 
     agree to--
       ``(A) work in an activity related to the program or in an 
     activity such as an activity authorized under this subpart, 
     including work as a teacher that serves limited English 
     proficient students, for a period of time equivalent to the 
     period of time during which such person receives assistance 
     under this provision; or
       ``(B) repay such assistance; and
       ``(10) carrying out such other activities as are consistent 
     with the purpose of this subpart.
       ``(d) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this subpart shall submit an application to the 
     Secretary at such time, in such form, and containing such 
     information as the Secretary may require.
       ``(A) Contents.--Each application shall--
       ``(i) describe the programs and activities proposed to be 
     developed, implemented and administered under the award;
       ``(ii) describe how the applicant has consulted with, and 
     assessed the needs of, public and private schools serving 
     children and youth of limited English proficiency to 
     determine such schools' need for, and the design of, the 
     program for which funds are sought; and
       ``(iii) describe how the activities to be carried out under 
     the award will be used to ensure limited English proficient 
     students meet state academic achievement standards and attain 
     English proficiency.
       ``(B) Special rule.--An eligible entity who proposes 
     conducting a master's- or doctoral-level program with funds 
     applied for under this subpart shall contain an assurance in 
     their application that such program will include, as a part 
     of the program, a training practicum in a local school 
     program serving children and youth of limited English 
     proficiency.

[[Page 25861]]

       ``(C) Outreach and technical assistance.--The Secretary 
     shall provide for outreach and technical assistance to 
     institutions of higher education eligible for assistance 
     under title III of the Higher Education Act of 1965 and 
     institutions of higher education that are operated or funded 
     by the Bureau of Indian Affairs to facilitate the 
     participation of such institutions in activities under this 
     subpart.
       ``(D) Distribution rule.--In making awards under this 
     subpart, the Secretary shall ensure adequate representation 
     of Hispanic-serving institutions that demonstrate competence 
     and experience concerning the programs and activities 
     authorized under this subpart and are otherwise qualified.
       ``(e) Priorities in Awarding Grants.--
       ``(1) Priorities.--
       ``(A) In awarding grants to state educational agencies and 
     local educational agencies under this subpart, the Secretary 
     shall give priority to programs and activities designed to 
     implement professional development programs for teachers and 
     educational personnel who are currently providing or 
     preparing to provide educational services for limited English 
     proficient children and youth, including services provided 
     through language instruction educational programs, that 
     ensure such children attain English proficiency and meet 
     challenging state academic content and student academic 
     achievement standards.
       ``(B) In awarding grants to institutions of higher 
     education under this subpart, the Secretary shall give 
     priority to institutions who propose programs to recruit and 
     upgrade the qualifications and skills of certified and non-
     certified educational personnel by offering degree programs 
     that prepare new teachers to serve limited English proficient 
     students.
       ``(f) Program Evaluations.--
       ``(1) In general.--Each recipient of awards under this 
     subpart shall annually conduct an independent evaluation of 
     the program and submit to the Secretary a report containing 
     the independent evaluation. Such report shall include 
     information on--
       ``(A) the programs and activities conducted by the 
     recipient to provide high-quality professional development to 
     participants of such programs and activities;
       ``(B) the number of participants served through the 
     program, the number of participants who completed program 
     requirements, and the number of participants who took 
     positions in an instructional setting with limited English 
     proficient students;
       ``(C) the effectiveness of the program in imparting the 
     professional skills necessary for participants to achieve the 
     objectives of the program; and
       ``(D) the teaching effectiveness of graduates of the 
     program or other participants who have completed the 
     program.''
       195. No comparable House provision.
       HR with an amendment (see note 194).
       196. No comparable House provision.
       HR with an amendment (see note 194).
       197. No comparable House provision.
       HR with an amendment (see note 194).
       198. No comparable House provision.
       HR with an amendment (see note 194).
       199. No comparable House provision.
       HR with an amendment (see note 194).
       200. No comparable House provision.
       HR with an amendment (see note 194).
       201. No comparable House provision.
       HR with an amendment (see note 194).
       202. No comparable House provision.
       SR
       203. No comparable House provision.
       HR with an amendment to move to FIE/LIFE
       204. No comparable House provision.
       HR with an amendment to move to FIE/LIFE
       205. No comparable House provision.
       HR with an amendment to move to FIE/LIFE
       206. No comparable House provision.
       HR with an amendment to move to FIE/LIFE
       207. No comparable House provision.
       HR with an amendment to move to FIE/LIFE (strike language 
     not needed)
       208. No comparable House provisions.
       HR with an amendment to strike (a) Findings.
       209. No comparable House provisions.
       HR
       210. No comparable House provisions.
       HR
       211. No comparable House provision.
       HR
       212. No comparable House provision.
       HR
       213. No comparable House provision.
       HR
       214. No comparable House provision.
       HR with an amendment to strike ``salaries'' and insert 
     ``support'' in (a)(2); Strike ``overhead costs, costs of 
     construction, acquisition or rental of space'' in (a)(5).
       215. No comparable House provision.
       HR
       216. No comparable House provision.
       HR with an amendment to strike ``$200,000 for fiscal year 
     2001 and such sums as may be necessary for each of the 6 
     succeeding fiscal years'' and insert: ``such sums for fiscal 
     year 2001 and such sums as may be necessary for each of the 5 
     succeeding fiscal years.''
       217. No comparable House provision.
       HR
       218. No comparable House provision.
       HR with an amendment to move to Authorized Activities to 
     subpart 1--Bilingual Education Capacity and Demonstration 
     Grants
       219. No comparable House provision.
       HR
       220. No comparable House provision.
       HR
       221. No comparable House provision.
       SR with an amendment to correspond with note 151.
       Insert ``appropriately'' after ``number of,'' strike 
     ``bilingual,'' and strike ``bilingual education teachers'' 
     and insert ``teachers that serve limited English proficient 
     students'' in (d)(3)
       222. No comparable House provision.
       SR on definition of ``Bilingual Education Program;''
       HR on definition of ``children and youth;''
       SR on definition of ``community-based organization;''
       HR on definition of ``community college;''
       HR with amendment to strike ``Office of Bilingual Education 
     and Minority Languages Affairs'' and insert ``Office of 
     English Language Acquisition, Language Enhancement, and 
     Academic Achievement for Limited English Proficient 
     Students'' in definition of ``director'';
       HR on definition of ``family education program;''
       SR on definition of (6)(B) ``instruction for higher 
     education and employment;''
       HR on definition of ``immigrant children and youth;''
       SR on definition of ``limited English proficiency and 
     limited English proficient;''
       HR on definition of ``Native American and Native American 
     Language;''
       HR on definition of ``Native Hawaiian or Native American 
     Pacific Islander Native Language Educational Organization;''
       HR on definition of ``Native Language'' (keep with note 162 
     (pg. 51);
       HR with amendment to strike ``Office of Bilingual Education 
     and Minority Languages Affairs'' and insert ``Office of 
     English Language Acquisition, Language Enhancement, and 
     Academic Achievement for Limited English Proficient 
     Students'' in definition of ``office'';
       SR on definition of ``other programs for persons of limited 
     English proficiency;''
       HR on definition of ``paraprofessional;''
       SR on definition of ``special alternative instructional 
     program''
       223. No comparable House provision.
       Corresponds with notes 13-39.

         Title III, Part B--Indian and Alaska Native Education

                            (New Title VII)

       1. The House bill authorizes programs for Indian and Alaska 
     Native Education. The Senate amendment authorizes programs 
     for Indian, Native Hawaiian, and Alaska Native Education. The 
     House bill places these programs in Title III, Part B. The 
     Senate amendment places them in Title VII.
       HR/LC for placement.
       2. The House bill includes a header referencing Indian and 
     Alaska Native Education. The Senate amendment references 
     Indian Education. The House bill places programs relating to 
     Indian education in Title III, Part B, Subpart 1. The Senate 
     amendment places these programs in Title VII, Part A.
       LC
       3. Using slightly different language, both the House bill 
     and the Senate amendment include the same findings.
       HR/SR with an amendment to insert the following language:


                         ``statement of policy

       ``It is the policy of the United States to fulfill the 
     Federal Government's unique and continuing trust relationship 
     with and responsibility to the American Indian people for the 
     education of Indian children. The Federal Government will 
     continue to work with local educational agencies, Indian 
     tribes and organizations, postsecondary institutions, and 
     other entities toward the goal of assuring that programs that 
     serve Indian children are of the highest quality and provide 
     for not only the basic elementary and secondary educational 
     needs, but also the unique educational and culturally related 
     academic needs of these children.''
       4. Using slightly different language, both the House bill 
     and the Senate amendment include the same purposes.
       LC
       5. Both the House bill and the Senate amendment authorize 
     formula grants to Local Educational Agencies. The House bill 
     does this in Chapter 1, the Senate amendment does this in 
     Subpart 1.
       LC
       6. Using slightly different language, both the House bill 
     and the Senate amendment have the same purposes.
       LC
       7. The House bill references academic content standards and 
     State student academic achievement standards. The Senate 
     amendment references State student performance standards.
       LC--align with bill--academic achievement standards
       8. Using different placement, both the House bill and 
     Senate amendment provide for grants to LEAs.
       LC
       9. Using slightly different language, both the House bill 
     and the Senate amendment describe eligibility requirements.

[[Page 25862]]

       LC
       10. Using slightly different language, both the House bill 
     and the Senate amendment allow for Indian tribes to apply for 
     grants in the event that an eligible LEA does not establish a 
     parent committee.
       LC
       11. Using slightly different language and different 
     references, both the House bill and the Senate amendment 
     establish criteria to determine the amount of grants to 
     eligible LEAs. The Senate amendment but not the House bill 
     references subsection (d)--the definition of average per 
     pupil expenditure.
       LC
       12. Using slightly different language, both the House bill 
     and the Senate amendment provide for a minimum grant amount.
       LC
       13. Using slightly different language, both the House bill 
     and the Senate amendment provide the same definitions.
       LC
       14. Using slightly different language, both the House bill 
     and the Senate amendment provide the same criteria for grants 
     to schools supported by the Bureau of Indian Affairs (BIA).
       LC
       15. Using slightly different language, both the House bill 
     and the Senate amendment provide for the same application 
     requirements.
       HR
       16. The House bill allows applications for schoolwide 
     programs to be approved if they will not diminish culturally 
     related activities. The Senate amendment allows for 
     schoolwide programs if they enhance culturally related 
     activities.
       SR
       17. Using slightly different language, both the House bill 
     and the Senate amendment have the same general criteria for 
     the use of grant funds.
       LC
       18. Using slightly different language, both the House bill 
     and the Senate amendment have similar specific requirements 
     for the use of grant funds.
       LC
       19. The House bill refers to State academic content 
     standards and State academic achievement standards. The 
     Senate amendment refers to State content standards and State 
     performance standards.
       LC--need to conform academic achievement standards
       20. The House bill references the Perkins Vocational and 
     Technical Education Act of 1998. The Senate amendment 
     references P.L. 103-239, and P.L. 88-120.
       SR
       21. The Senate amendment, but not the House bill, specifies 
     that funds may be used to promote the incorporation of 
     culturally responsive teaching and learning strategies.
       HR
       22. The Senate amendment, but not the House bill, specifies 
     that funds may be used for activities that incorporate 
     American Indian and Alaska Native specific curriculum 
     content.
       HR
       23. The Senate amendment, but not the House bill, specifies 
     that funds may be used to promote coordination and 
     collaboration between tribal, Federal, and State public 
     schools.
       SR
       24. Using slightly different language, both the House bill 
     and the Senate amendment allow LEAs to use funds to support 
     schoolwide programs.
       LC
       25. Using slightly different language, both the House bill 
     and the Senate amendment limit the use of funds by a grantee 
     for administrative purposes to five percent of the funds 
     received.
       LC
       26. Using slightly different language, both the House bill 
     and the Senate amendment provide for LEAs receiving formula 
     grants under this Title to combine federal funds received to 
     serve Indian students into a comprehensive program to serve 
     such students.
       LC
       27. Using slightly different language, both the House bill 
     and the Senate amendment require LEAs that want to 
     participate to submit a plan to the Secretary.
       SR
       28. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to authorize 
     the applicant to consolidate programs upon receipt of an 
     acceptable plan.
       HR
       29. Using slightly different language, both the House bill 
     and the Senate amendment set forth criteria for commingling 
     of funds.
       LC
       30. Using slightly different language, both the House bill 
     and the Senate amendment list the same requirements for an 
     acceptable plan.
       LC
       31. The Senate amendment but not the House bill requires 
     consultation with the House Committee on Resources and the 
     Senate Committee on Indian Affairs.
       SR
       32. Using slightly different language, both the House bill 
     and the Senate amendment require coordination among federal 
     agencies, which provide funds effected under the LEA's plan.
       LC
       33. Using slightly different language, both the House bill 
     and the Senate amendment set forth the responsibilities of 
     federal agencies under this section, as well as criteria for 
     determining the lead agency for the purposes of this section.
       SR
       34. Using slightly different language, both the House bill 
     and the Senate amendment list information that the applicant 
     is required to report to the Secretary.
       SR
       35. Using slightly different language, both the House bill 
     and the Senate amendment prohibit reduction in funding 
     received by applicants, authorize interagency fund transfers, 
     set forth administrative requirements for participating LEAs, 
     allow for simplified record keeping for participating LEAs, 
     allow for the commingling of administrative funds, and allow 
     the Secretary and the lead agency to safeguard federal funds 
     pursuant to the Single Audit Act.
       LC--to check references to other acts
       36. Using slightly different Language, both the House bill 
     and the Senate amendment require the Secretary of Education 
     to report on obstacles to program integration to the relevant 
     congressional committees. The House bill and the Senate 
     amendment requires the reports to be made to the Senate 
     Health, Education, Labor, and Pensions committee, and to the 
     House Committee on Education and the Workforce. In addition, 
     the Senate amendment requires reports to be made to the 
     Senate Committee on Indian Affairs.
       HR
       37. Using slightly different language, both the House bill 
     and the Senate amendment define the term ``Secretary'' for 
     purposes of this section.
       SR
       38. Using slightly different language, both the House bill 
     and the Senate amendment set forth information that must be 
     included on student eligibility forms.
       HR
       39. Using slightly different language, both the House bill 
     and the Senate amendment set forth the same criteria for the 
     Secretary to conduct monitoring and evaluation reviews, 
     compute grant awards for BIA funded schools, and establish 
     the timing of child counts.
       LC
       40. Using slightly different language, both the House bill 
     and the Senate amendment set forth the same criteria 
     regarding notification of payments, payments taken into 
     account by a State in determination of State aid, and 
     maintenance of effort.
       LC
       41. The Senate amendment refers to ``the year'', while the 
     House bill refers to the ``preceding year.
       SR
       42. See note 41.
       SR
       43. Using slightly different language, both the House bill 
     and the Senate amendment provide the same requirements for 
     State review of applications.
       LC
       44. Both the House bill and the Senate amendment authorize 
     special programs and projects to improve educational 
     opportunities for Indian children. These activities are 
     authorized under Chapter 2 in the House bill and Subpart 2 in 
     the Senate amendment.
       LC
       45. Using slightly different language, both the House bill 
     and the Senate amendment set forth the same purposes.
       LC
       46. Using slightly different language, both the House bill 
     and the Senate amendment list the same eligible entities.
       HR
       47. Both the House bill and the Senate amendment authorize 
     the same activities.
       HR with an amendment to strike ``secondary school'' and 
     insert ``high school'' in (E).
       48. The House bill refers to career preparation programs, 
     while the Senate amendment refers to school-to-work 
     transition programs.
       SR
       49. Using slightly different language, both the House bill 
     and the Senate amendment authorize grants for professional 
     development. The Senate amendment refers to pre-service or 
     in-service training, while the House bill refers to 
     professional development.
       SR
       50. Using slightly different language, both the House bill 
     and the Senate amendment set forth the same grant and 
     application requirements.
       LC
       51. Using different language, both the House bill and the 
     Senate amendment require that material to be disseminated: 
     (1) be adequately reviewed; (2) have demonstrated educational 
     merit; and (3) has the ability to be replicated.
       HR
       52. The Senate amendment refers to scientifically based 
     research, while the Senate amendment refers to research-based 
     programs.
       HR with an amendment to insert ``where applicable'' after 
     ``research program'' in (iii).

[[Page 25863]]


       53. Using slightly different language, both the House bill 
     and the Senate amendment limit the use of funds for 
     administrative purposes to five percent of the funds 
     received.
       LC
       54. Using slightly different language, both the House bill 
     and the Senate amendment authorize grants for professional 
     development.
       SR
       55. Both the House bill and the Senate amendment set forth 
     the same purposes.
       SR
       56. Using different wording, both the House bill and the 
     Senate amendment designate institutions of higher education, 
     State and local educational agencies, and Indian tribes or 
     organizations as eligible entities. The House bill specifies 
     that Indian tribes or organizations are eligible in 
     consortium with institutions of higher education. The Senate 
     amendment defines ``eligible entity'' to mean a consortium 
     of: (1) an SEA or LEA; (2) an institution of higher education 
     (including an Indian institution of higher education); or (3) 
     an Indian tribe or organization.
       SR with an amendment to insert ``a BIA funded school'' as 
     new House (4).
       57. Using slightly different language, both the House bill 
     and the Senate amendment authorize the Secretary to award 
     grants to eligible entities.
       LC
       58. Using slightly different language, both the House bill 
     and the Senate amendment authorize the same activities, set 
     forth the same application requirements, place the same 
     requirements on eligible entities and individuals trained 
     under the program, and set forth the same reporting 
     requirements.
       LC
       59. The Senate amendment, but not the House bill authorizes 
     a specific program for in-service training for teachers of 
     Indian children.
       HR with amendment to move to national activities and delete 
     any findings or separate authorizations of appropriations.
       60. The Senate amendment, but not the House bill, maintains 
     an authorization for fellowships for Indian students. This 
     provision is currently unfunded.
       HR with an amendment to move to national activities and 
     delete any findings or separate authorizations of 
     appropriations.
       61. The Senate amendment, but not the House bill, maintains 
     an authorization of a program for gifted and talented Indian 
     students. This authorization is currently unfunded.
       HR with an amendment to move to national activities and 
     delete any findings or separate authorizations of 
     appropriations.
       62. The Senate amendment, but not the House bill, maintains 
     an authorization of a program to provide grants to tribes for 
     administrative planning and development. This authorization 
     is currently unfunded.
       HR with an amendment to move to national activities and 
     delete any findings or separate authorizations of 
     appropriations.
       63. The Senate amendment, but not the House bill, maintains 
     an authorization for a programs related to adult education 
     for Indians. This authorization is currently unfunded.
       HR with an amendment to move to national activities and 
     delete any findings or separate authorizations of 
     appropriations.
       64. Using slightly different language, both the House bill 
     and the Senate amendment authorize the use of funds for 
     research activities related to the education of Indian 
     children and adults. The House bill authorizes these 
     activities in Chapter 3. The Senate amendment places them in 
     Subpart 4.
       LC
       65. The Senate amendment but not the House bill limits the 
     amount of funds that can be used for administrative expenses 
     to not more than 5 percent of the grant or contract.
       SR
       66. Both the House bill and the Senate amendment authorize 
     the National Advisory Council in Indian Education (NACIE). 
     The House bill does this in Chapter 4. The Senate amendment 
     does so in Subpart 5.
       LC
       67. Using almost identical language, both the House bill 
     and the Senate amendment set forth membership criteria and 
     duties for the Council.
       LC
       68. Using different language, both the House bill and the 
     Senate amendment provide for peer review of applications, 
     preferences for certain Indian applicants, and minimum grant 
     criteria.
       LC
       69. Both the House bill and the Senate amendment provide 
     definitions and authorizations of appropriations. The House 
     bill does so in Chapter 5. The Senate amendment does so in 
     Subpart 6.
       LC
       70. Both the House bill and the Senate amendment provide 
     identical definitions of ``adult'', ``free public 
     education'', and ``Indian''.
       SR
       71. The House bill authorizes $100,000,000 million for 
     Chapter 1 for FY 2002, and such sums for each of fiscal years 
     2003 through 2006. The Senate amendment authorizes 
     $93,300,000 for FY 2002, and such sums for each of the six 
     succeeding fiscal years.
       SR with an amendment to Strike $100,000,000 and insert 
     $96,400,000.
       72. The House bill authorizes $25,000,000 for Chapters 2 
     and 3 for FY 2002, and such sums for FY 2003 through 2006. 
     The Senate amendment authorizes $20,000,000 for Subparts 2 
     through 4 for FY 2002, and such sums for each of the six 
     succeeding fiscal years.
       SR with an amendment to Strike $25,000,000 and insert 
     $24,000,000.
       73. The House bill but not the Senate amendment includes a 
     savings provision.
       SR
       74. The Senate amendment, but not the House bill, continues 
     programs to supplement educational programs for Native 
     Hawaiians.
       HR with an amendment accept Senate language on findings; 
     Move Native Hawaiian Council language to allowable uses of 
     funds; Insert ``including program co-location'' after 
     ``activities,'' in Sec. 7205 (a)(3)(I); and to strike section 
     7205 (a)(3)(L) (construction).
       75. The Senate amendment, but not the House bill, 
     authorizes $300,000 for FY 2002 and such sums as necessary 
     for Native Hawaiian education councils.
       HR with an amendment to make Native Hawaiian education 
     councils an authorized activity with funding set aside of 
     $500,000 per year.
       76. The Senate amendment, but not the House bill, 
     authorizes $35,000,000 for FY 2002, and such sums as 
     necessary for the succeeding six fiscal years, for programs 
     to supplement the education of Native Hawaiians.
       HR with an amendment--Strike ``$35,000,000'' so that it is 
     ``such sums for FY 2002, and each of the succeeding six 
     fiscal years'', and insert a provision such that $500,000 is 
     reserved to fund Native Hawaiian education councils.
       77. Both the House bill and the Senate amendment authorize 
     programs to supplement the education of Alaska Natives. The 
     House bill authorizes these programs under Subpart 2. The 
     Senate amendment authorizes them under Part C.
       LC
       78. Both the House bill and the Senate amendment provide 
     the same short title.
       LC
       79. Using slightly different language, both the House bill 
     and the Senate amendment have the same findings.
       HR
       80. Using slightly different language, both the House bill 
     and the Senate amendment have the same purposes.
       LC
       81. Both the House bill and the Senate amendment authorize 
     the Secretary to make grants or enter into contracts.
       HR
       82. Both the House bill and the Senate amendment list 
     permissible activities. The House bill includes the 
     development of plans, the development of curricula and 
     educational programs, professional development of educators, 
     the development and operation of home instruction programs, 
     family literacy services, the development and operation of 
     enrichment programs in science and math, research and data 
     collection, and other research and evaluation activities. In 
     addition, the Senate amendment lists parenting education, 
     cultural education programs, cultural exchange programs 
     activities carried out through the Even Start program, other 
     early learning and preschool programs, dropout prevention 
     programs, an Alaska initiative for community engagement, 
     career preparation activities, and operational support and 
     construction funding as permissible activities.
       HR
       83. Using slightly different language, both the House bill 
     and the Senate amendment limit the amount of grants that can 
     be spent on administrative costs to five percent.
       LC
       84. The Senate amendment but not the House bill requires 
     the Secretary to give priority to applications from Alaska 
     Native regional nonprofit organizations or consortia that 
     include Alaska Native nonprofit organizations when awarding 
     grants for permissible activities listed under subsection (a) 
     (2). The Senate amendment further exempts funds earmarked for 
     certain permissible activities from this provision
       HR
       85. The House bill authorizes the appropriation of 
     $15,000,000 for FY 2002, and such sums as necessary for FY 
     2003 through FY 2006 to carry out this part. The Senate 
     amendment authorizes $35,000,000 million for FY 2002 and such 
     sums as necessary for each of the six succeeding fiscal years 
     to carry out this section (see note 80).
       HR with an amendment to strike ``$35,000,000'' and insert 
     such sums as necessary.
       86. The Senate amendment but not the House bill directs the 
     Secretary to make available $1 million annually for each of 
     the following activities: (1) parenting education; (2) 
     cultural education programs; and (3) cultural exchange 
     programs. The Senate amendment further directs the Secretary 
     to make available annually $2 million for each of the 
     following activities: (1) dropout prevention programs; and 
     (2) an Alaska Native Initiative for Community Engagement 
     program.
       HR
       87. Using slightly different language, both the House bill 
     and the Senate amendment

[[Page 25864]]

     provide administrative provisions including application 
     requirements, requirements for consultation with 
     representatives of the Alaska Native community, and 
     coordination with local educational agencies.
       LC
       88. Using slightly different language, both the House bill 
     and the Senate amendment provide the same definitions of 
     ``Alaska Native'', and ``Alaska Native Organization''.
       LC
       89. The House bill but not the Senate amendment includes a 
     savings provision.
       SR
       90. The Senate amendment, but not the House bill, includes 
     conforming amendments.
       LC
       91. The Senate amendment but not the House bill contains a 
     new Part D, entitled ``Educational, Cultural, Apprenticeship 
     and Exchange Programs for Alaska Natives, Native Hawaiians 
     and Their Historical Whaling and Trading Partners in 
     Massachusetts''.
       HR with an amendment to move to the Life Fund.
       92. The Senate amendment but not the House bill contains 
     findings.
       HR with an amendment to move to the Life Fund.
       93. The Senate amendment but not the House bill establishes 
     the purpose of the program.
       HR with an amendment to move to the Life Fund.
       94. The Senate amendment but not the House bill authorizes 
     the Secretary to make grants or enter into contracts, and 
     lists eligible entities.
       HR with an amendment to move to the Life Fund.
       95. The Senate amendment but not the House bill lists 
     permissible activities.
       HR with an amendment to move to the Life Fund.
       96. The Senate amendment but not the House bill authorizes 
     the appropriation of $10 million for FY 2002, and such sums 
     as necessary for each of the 6 succeeding fiscal years.
       SR with an amendment for one allowable use under single 
     authorization for Life Fund.
       97. The Senate amendment but not the House bill requires 
     the Secretary to make available $2 million for the New 
     Bedford Whaling Museum, $2 million for the Inupiat Heritage 
     Center, $1 million each for the Alaska Native Heritage 
     Center, the Bishop Museum, and the Peabody--Essex Museum to 
     carry out permissible activities under this part, and $1 
     million each for the Alaska Native Heritage Center, the 
     Bishop Museum, and the Peabody--Essex Museum for internship 
     and apprenticeship programs.
       HR with an amendment to move to the Life Fund.
       98. The Senate amendment but not the House bill provides 
     application requirements and requires coordination with Local 
     Educational Agencies.
       HR with an amendment to move to the Life Fund.

                     Title III, Part B--BIA Indians

                         (New Title X, Part D)

       1. The Senate Amendment, but not the House bill includes a 
     short Title for its amendments.
       HR
       2. The Senate amendment, but not the House bill, includes a 
     reference to the Federal government's unique and continuing 
     trust relationship with the Indian people.
       SR
       3. The House bill, but not the Senate Amendment refers to 
     the responsibility for the operation of BIA schools as solely 
     the Federal Governments.
       HR/SR
       4. Using similar language, both the House bill and the 
     Senate amendment have a statement of policy. The Senate 
     amendment, but not the House bill, references the basic 
     elementary and secondary educational needs of Indian 
     children.
       HR with an amendment to strike all of Senate (b) Policy and 
     insert in its place the following language:
       ``It is the policy of the United States to fulfill the 
     Federal Government's unique and continuing trust relationship 
     with and responsibility to the Indian people for the 
     education of Indian children and for the operation and 
     financial support of the Bureau of Indian Affairs funded 
     school system to work in full cooperation with tribes toward 
     the goal of assuring that the programs of the Bureau of 
     Indian Affairs funded school system are of the highest 
     quality and provide for the basic elementary and secondary 
     educational needs of Indian children, including meeting the 
     unique educational and cultural needs of these children.''
       5. The Senate Amendment refers to accreditation while the 
     House bill refers to accreditation standards.
       HR
       6. The Senate Amendment, but not the House bill, includes a 
     declaration of purpose.
       HR with an amendment to strike all of Senate (B).
       7. The House bill, but not the Senate amendment, requires 
     that the Secretary carry out studies and surveys to establish 
     and revise standards through a contract with an Indian 
     organization.
       HR
       8. The House bill, but not the Senate amendment, requires 
     the Secretary to revise Bureau academic standards.
       HR
       9. The House bill, but not the Senate amendment requires 
     the Secretary to provide alternative standards to ensure 
     compliance with minimum accreditation standards for the State 
     or region of a school.
       HR
       10. The House bill, but not the Senate amendment, allows 
     tribal governing bodies to waive Bureau standards under 
     certain circumstances.
       HR
       11. The House bill allows Bureau schools to meet standards 
     or be accredited not later than the 2nd academic year after 
     publication of the standards, while the Senate amendment 
     requires accreditation 12-months after the date of enactment.
       HR with an amendment to strike ``12'' and insert ``24''.
       12. The House bill allows for accreditation by a tribal 
     accrediting agency if the standards used by that agency are 
     equal to, or exceed standards of the accreditor for the State 
     or region in which the school is located. The Senate 
     amendment allows for tribal accreditation if such 
     accreditation is certified by a State or accepted by a 
     regional accreditor. The Senate amendment further allows a 
     tribal government to select the State accreditor if its 
     reservation is located in more than one State.
       SR with an amendment to strike ``are equal . . . is 
     located;'' in (A) and insert ``such accreditation is 
     acknowledged by a generally recognized State certification or 
     regional accrediting agency;''
       Insert Senate (iv) as a new House (D).
       Report language to read as follows:
       Section (i) concerning tribal accreditation clarifies the 
     conferee's intent that accreditation standards developed by 
     tribal accrediting bodies are recognized by State or regional 
     accrediting agencies. It is the purpose of this section to 
     have Bureau-funded schools develop standards that are equal 
     to or exceed the accreditation standards of a State or 
     regional accrediting agency, chosen by the school board in 
     conjunction with the tribal governing body. The accreditation 
     agency should recognize that tribal departments of education 
     are more experienced in developing standards of accreditation 
     for Indian schools and their children. These accreditation 
     standards take into account the unique cultural barriers that 
     exist for Indian children and the conditions needed for them 
     to achieve their educational goals.
       13. The Senate amendment but not the House bill requires 
     the Secretary of Interior, in conjunction with the Secretary 
     of Education, to study and report on the feasibility of 
     establishing a National Tribal Accrediting Agency. The report 
     is to be made to the appropriate committees of Congress 
     within 12 months of the date of enactment.
       HR with an amendment to insert as new (B) the following 
     language:
       ``(B) Feasibility study.--Not later than 12 months after 
     the date of enactment of the Native American Education 
     Improvement Act of 2001, the Secretary of the Interior and 
     the Secretary of Education shall, in consultation with Indian 
     tribes, Indian education organizations, and accrediting 
     agencies, develop and submit to the appropriate Committees of 
     Congress a report on the desirability and feasibility of 
     establishing a tribal accreditation agency that would serve 
     to review and acknowledge the accreditation standards for 
     Bureau funded schools and that would establish accreditation 
     procedures to facilitate the application, review of the 
     standards and review processes, and recognition of qualified 
     and credible tribal departments of education as accrediting 
     bodies serving tribal schools.''
       14. The House bill, but not the Senate amendment, refers to 
     standards.
       HR
       15. The House bill provides that assistance may be given to 
     contract or grant schools in implementing bureau standards, 
     upon request. The Senate Amendment provides that assistance 
     may be given to Bureau funded schools to obtain 
     accreditation. Such assistance can be provided through a 
     number of entities.
       HR
       16. The Senate amendment, but not the House bill, provides 
     that Bureau standards shall apply while accreditation is 
     being sought.
       HR
       17. The Senate Amendment, but not the House bill, provides 
     that the Secretary issue a report on unaccredited Bureau 
     funded schools 90 days after the end of each school year.
       HR with an amendment to insert ``the Committee on Education 
     and the Workforce'' after ``the Committees on 
     Appropriations,'' and to insert ``the HELP Committee'' before 
     ``of the Senate'' in (5).
       18. The Senate amendment, but not the House bill, provides 
     schools with the opportunity to present evidence prior to 
     being included in the report.
       HR
       19. The Senate amendment, but not the House bill requires 
     schools included in the annual report to develop a school 
     plan to obtain accreditation.
       HR
       20. The Senate amendment, but not the House bill, requires 
     the Secretary to take

[[Page 25865]]

     corrective action against a Bureau school if they fail to 
     obtain accreditation.
       HR with an amendment to strike all language and insert the 
     following:
       ``(8) Corrective action.--
       ``(A) Definition.--In this subsection, the term `corrective 
     action' means action that--
       ``(i) substantially and directly responds to--
       ``(I) the failure of a school to achieve accreditation; and
       ``(II) any underlying staffing, curriculum, or other 
     programmatic problem in the school that contributed to the 
     lack of accreditation; and
       ``(ii) is designed to increase substantially the likelihood 
     that the school will be accredited.
       ``(B) Corrective action inapplicable.--The Secretary shall 
     grant a waiver to any school that-
       (i) is identified in the report described in paragraph 
     (5)(C); and
       (ii) fails to be accredited for reasons that are beyond the 
     control of the school board, as determined by the Secretary. 
     Reasons that are beyond the control of the school board 
     include, but are not limited to, significant decline in 
     financial resources, the poor condition of facilities, 
     vehicles or other property, or a natural disaster. Such a 
     waiver shall exempt such school from any or all of the 
     requirements of this paragraph and paragraph (7), but such 
     school shall be required to comply with the standards 
     contained in part 36 of title 25, Code of Federal Register, 
     as in effect on the date of enactment of the [Native American 
     Education Improvement Act of 2001].
       ``(C) Duties of secretary.--After providing assistance to a 
     school under paragraph (3), the Secretary shall--
       ``(i) annually review the progress of the school under the 
     applicable school plan, to determine whether the school is 
     meeting, or making adequate progress towards, achieving the 
     goals described in paragraph (7)(A)(v) with respect to 
     reaccredidation or becoming a candidate for accreditation;
       ``(ii) except as provided in subparagraph (B), continue to 
     provide assistance while implementing the school's plan, and, 
     if determined appropriate by the Secretary, take corrective 
     action with respect to the school if it fails to be 
     accredited at the end of the third year of the school's plan;
       ``(iii) promptly notify the parents of children enrolled in 
     the school of the option to transfer their child to another 
     public or Bureau funded school;
       ``(iv) provide all students enrolled in the school with the 
     option to transfer to another public or Bureau funded school, 
     including a public charter school, that is accredited; and
       ``(v) provide, or pay for the provision of, transportation 
     for each student described in clause (iv) to the school 
     described in clause (iv) to which the student elects to be 
     transferred to the extent funds are available as determined 
     by the tribal governing body.
       ``(D) Failure of school plan.--With respect to a Bureau 
     operated school that fails to be accredited at the end of the 
     3-year period during which the school's plan is in effect 
     under paragraph (7), the Secretary may take 1 or more of the 
     following corrective actions:
       ``(i) Institute and fully implement actions suggested by 
     the accrediting agency.
       ``(ii) Consult with the tribe involved to determine the 
     causes for the lack of accreditation including potential 
     staffing and administrative changes that are or may be 
     necessary.
       ``(iii) Set aside a certain amount of funds that may only 
     be used by the school to obtain accreditation.
       ``(iv)(I) Provide the tribe with a 60-day period in which 
     to determine whether the tribe desires to operate the school 
     as a contract or grant school, before meeting the 
     accreditation requirements in section 5207 of the Tribally 
     Controlled Schools Act, at the beginning of the next school 
     year following the determination to take corrective action. 
     If the tribe agrees to operate the school as a contract or 
     grant school, the tribe shall prepare a plan, pursuant to 
     paragraph (7), for approval by the Secretary in accordance 
     with paragraph (7), to achieve accreditation.
       ``(II) If the tribe declines to assume control of the 
     school, the Secretary, in consultation with the tribe, may 
     contract with an outside entity, consistent with applicable 
     law, or appoint a receiver or trustee to operate and 
     administer the affairs of the school until the school is 
     accredited. The outside entity, receiver or trustee shall 
     prepare a plan, pursuant to paragraph (7), for approval by 
     the Secretary in accordance with paragraph (7).
       ``(III) Upon accreditation of the school, the Secretary 
     shall allow the tribe to continue to operate the school as a 
     grant or contract school, or if being controlled by an 
     outside entity, provide the tribe with the option to assume 
     operation of the school as a contract school, in accordance 
     with the Indian Self Determination Act, or as a grant school 
     in accordance with the Tribally Controlled Schools Act, at 
     the beginning of the school year following the school year in 
     which the school obtains accreditation. If the tribe 
     declines, the Secretary may allow the outside entity, 
     receiver or trustee to continue the operation of the school 
     or reassume control of the school.
       ``(E) Failure of school plan of contract or grant school.
       ``(i) Corrective action.--With respect to a contract or 
     grant school that fails to be accredited at the end of the 3-
     year period during which the school's plan is in effect under 
     paragraph (7), the Secretary may take 1 or more of the 
     corrective actions described in (D)(i) through (iii). The 
     Secretary shall implement such corrective action for at least 
     1 year prior to taking any action described in clause (ii).
       ``(ii) Outside entity.--If the corrective action described 
     in clause (i) does not result in accreditation of the school, 
     the Secretary, in conjunction with the tribal governing body, 
     may contract with an outside entity to operate the school in 
     order to achieve accreditation of the school within 2 school 
     years. Prior to any such contract, the Secretary shall 
     develop a proposal for such operation which shall include, at 
     a minimum, the following elements:

       ``(I) the identification of 1 or more outside entities 
     which has demonstrated to the Secretary its ability to 
     develop a satisfactory plan for achieving accreditation, and 
     which is willing and available to undertake such plan; and
       ``(II) a plan for implementing operation of the school by 
     such outside entity, including the methodology for oversight 
     and evaluation of the performance of such outside entity by 
     the Secretary and the tribe.

       ``(iii) Proposal amendments.--The tribal governing body 
     shall have 60 days to amend the proposal described in clause 
     (ii), including identifying another outside entity to operate 
     the school. The Secretary shall reach agreement with the 
     tribal governing body on the proposal and any such amendments 
     to such proposal within 30 days of the expiration of the 60 
     day period described in the preceding sentence. After the 
     approval of such proposal and any such amendments, the 
     Secretary, with continuing consultation with such tribal 
     governing body, shall implement such proposal.
       ``(iv) Accreditation.--Upon accreditation of the school, 
     the tribe shall have the option to assume the operation and 
     administration of the school as a contract school after 
     complying with the Indian Self Determination Act, or as a 
     grant school, after complying with the Tribally Controlled 
     Schools Act, at the beginning of the school year following 
     the year in which the school obtains accreditation.
       ``(v) Retrocede.--Nothing in this subparagraph shall limit 
     a tribe's right to retrocede operation of a school to the 
     Secretary pursuant to Sec. 105(e) of the Indian Self-
     Determination Act (with respect to a contract school) or Sec. 
     5204(f) of the Tribally Controlled Schools Act (with respect 
     to a grant school).
       (vi) Consistent.--The provisions of this subparagraph shall 
     be construed consistent with the provisions of the Tribally 
     Controlled Schools Act and the Indian Self Determination Act 
     as in effect on the date of enactment of the Native American 
     Education Improvement Act of 2001, and shall not be construed 
     as expanding the authority of the Secretary under any other 
     law.
       ``(F) Hearing.--With respect to a school that is operated 
     pursuant to a grant, or a school that is operated under a 
     contract under the Indian Self Determination Act, prior to 
     implementing any corrective action under this paragraph, the 
     Secretary shall provide notice and an opportunity for a 
     hearing to the affected school pursuant to section 5207 of 
     the Tribally Controlled Schools Act.''
       Report Language:
       It is not the intent of the Conferees to broaden the 
     authority of the Secretary of the Interior provided under the 
     Indian Self Determination Act. However, nothing is intended 
     to prevent this Act from being implemented as set forth in 
     the Conference report. It is also the intent of this Act that 
     prior to revoking an eligibility of determination and ceasing 
     funding of a school, the Secretary shall exhaust all remedies 
     stated in the Act and take any actions necessary to keep the 
     school operational. The Conferees intend that the Secretary 
     work with the affected tribe, consistent with the Federal 
     policies of Indian self-determination, including, if 
     necessary, temporarily assuming the operation and 
     administration of a school that fails to become accredited 
     for reasons that are not beyond the control of the school 
     until the school becomes accredited and to eliminate 
     impediments to achieving accreditation, including addressing 
     underlying staffing, curriculum, or other programmatic 
     problems in the school.
       Section 1121(b)(8)(E) authorizes the Secretary to contract 
     with an outside entity in cases where a contract or grant 
     school has not achieved accreditation after the 
     implementation of a school plan and corrective actions. While 
     this section does not require the Secretary to contract with 
     an outside entity, it is the intention of the Conferees to 
     provide the Secretary with the discretion to contract with an 
     outside entity in a case where both the school plan and any 
     corrective action taken have not caused the school to gain 
     accreditation. The Conferees do not intend to require the 
     Secretary to contract with an outside entity if accreditation 
     of the school can be gained through application of corrective 
     actions.

[[Page 25866]]

       With respect to public school choice:
       The Conferees intend tribal governing bodies or school 
     boards to establish reasonable parameters on the distance the 
     school to which the child wishes to transfer is from the 
     originating school. The Conferees do not intend this public 
     school choice provision to provide an option to transfer to 
     any school irrespective of the distance or costs associated 
     with travel to such school.
       21. The Senate amendment, but not the House bill, states 
     that nothing in this section alters or otherwise affects the 
     rights, remedies, and procedures afforded to school 
     employees.
       HR
       22. The House bill, but not the Senate amendment, requires 
     the Secretary to establish consistent reporting standards for 
     fiscal control and fund accounting.
       SR
       23. Using similar language, both the House bill and the 
     Senate amendment require the Secretary to implement Bureau 
     academic standards and accreditation standards.
       LC
       24. Using similar language, both the House bill and the 
     Senate amendments contain certain prohibitions related to the 
     closure of BIA funded schools.
       HR
       25. Using similar language, both the House bill and the 
     Senate amendment require the Secretary to promulgate 
     regulations for the closure, transfer, consolidation, or 
     substantial curtailment of BIA schools.
       LC
       26. Using similar language, both the House bill and the 
     Senate amendment require notification for the reason for 
     closure. The House bill requires notification to the local 
     school board of a closure 6-months prior to the end of the 
     school year.
       LC
       27. Using similar language, both the House bill and the 
     Senate amendment require reports whenever a Bureau funded 
     school is closed, transferred to another authority, or its 
     program is actively curtailed.
       LC
       28. Both the House bill and the Senate amendment prohibit 
     actions to close, transfer authority over, consolidate or 
     substantially curtail Bureau funded schools until the end of 
     the full first academic year after a negative report is made. 
     The House bill refers to irrevocable action while the Senate 
     amendment refers to irreversible action.
       SR
       29. Using similar language, both the House bill but and the 
     Senate amendment allow the closure of a Bureau funded school 
     or school program operated after January 1, 1999, or a school 
     board operated under a grant with the approval of a tribal 
     governing body.
       LC
       30. Using similar language, both the House bill and the 
     Senate amendment establish the factors to be used in 
     reviewing applications for schools that are not Bureau funded 
     or for the expansion of a Bureau funded school.
       LC
       31. Both the House bill and the Senate amendment require 
     the Secretary to make a determination with respect to an 
     application within 180 after submission, and treats the 
     application as approved if the Secretary takes no negative 
     action within that time.
       LC
       32. Using similar language, both the House bill and the 
     Senate amendment sets forth requirements for applications.
       LC
       33. Using similar language, both the House bill and the 
     Senate amendment set forth requirements on the Secretary for 
     disapproval of applications. If an application is 
     disapproved, the Secretary must state objections in writing, 
     provide assistance to the applicant to overcome the 
     objections, and provide the applicant with a hearing.
       HR
       34. Using similar language, both the House bill and the 
     Senate amendment set forth timeframes for successful 
     applications to go into effect.
       LC
       35. The House bill but not the Senate amendment requires 
     maintenance on privately funded expansions to be paid for 
     with non-Bureau funds.
       HR/SR to insert the following language for (6):
       ``Statutory Administration.--Nothing in this section or any 
     other provision of law, shall be construed to preclude the 
     expansion of grades and related facilities at a Bureau funded 
     school, if such expansion is paid for with non-Bureau funds. 
     Subject to the availability of appropriated funds the 
     Secretary is authorized to provide the necessary funds needed 
     to supplement the cost of operations and maintenance of such 
     expansion.''
       36. The Senate amendment but not the House bill requires 
     funds provided to be apportioned and retained at the schools.
       HR
       37. Using similar language, both the House bill and the 
     Senate amendment allow all federal funds received for 
     educational or related services to be used for schoolwide 
     projects.
       LC
       38. Using different language, the House bill and the Senate 
     amendment require the Comptroller General, in consultation 
     with Indian tribes and school boards, to study and report on 
     the adequacy of funding and formulas used for the funding of 
     Bureau funded schools.
       SR with amendment to strike the first paragraph of the 
     House language and insert the following in its place:
       ``(1) Study.--The Comptroller General of the United States 
     shall conduct a study to determine the adequacy of funding, 
     and formulas used by the Bureau to determine funding, for 
     programs operated by Bureau funded schools, taking into 
     account unique circumstances applicable to Bureau funded 
     schools. The study shall analyze existing information 
     gathered and contained in germane studies that have been 
     conducted or are currently being conducted in regards to 
     Bureau funded schools.''
       39. Both the House bill and the Senate amendment require 
     the Secretary to revise standards for home-living situations. 
     The House bill, but not the Senate amendment, requires 
     consultation. In addition, the House bill requires that such 
     criteria serve as minimum standards.
       LC
       40. Using identical language, both the House bill and the 
     Senate amendment require the Secretary to implement these 
     standards immediately upon their issuance.
       LC
       41. Using different language, both the House bill and the 
     Senate amendment require the Secretary, at the time of each 
     budget submission, to submit a plan to bring all Bureau 
     funded schools providing home-living situations into 
     compliance with the home-living standards developed under 
     this section. Both the House bill and the Senate amendment 
     provide for the same information to be reported.
       SR
       LC--consistent throughout part (no budget reference).
       42. The House bill allows for the waiver of home-living 
     standards in the same manner as a tribal governing body may 
     waive accreditation standards. The Senate amendment allows 
     for the waiver of home-living standards under certain 
     criteria.
       HR
       43. Using similar language, both the House bill and the 
     Senate amendment prohibit the Secretary from closing Bureau 
     funded schools for failure to meet home-living standards. The 
     House bill references schools in operation prior to January 
     1, 1987, while the Senate amendment references schools in 
     operation prior to July 1, 1999.
       HR
       44. The House bill, but not the Senate amendment codifies 
     regulations under Part 32 of Title 25 of the Code of Federal 
     Regulations (CFR). The House bill further defines 
     regulations.
       SR on (a); LC on (b) for placement.
       45. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to establish 
     geographical attendance area for Bureau schools, and allows 
     tribal governing bodies to establish such boundaries in the 
     event that more than one tribe occupies a geographical area.
       LC
       46. Using different language, both the House bill and the 
     Senate amendment prohibit the Secretary from revising 
     attendance without the consent of tribal governing bodies 
     unless certain criteria are met. The House bill references 
     July 1, 2001. The Senate bill references July 1, 1999. Both 
     the House bill and the Senate amendment allow tribal 
     governing bodies to petition the Secretary for boundary 
     changes.
       SR
       47. Using slightly different language, both the House bill 
     and the Senate amendment allow parents the choice of Bureau 
     funded schools, regardless of geographic boundaries, if the 
     tribal governing body approves a resolution allowing such 
     choice.
       LC
       48. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to provide 
     funding for eligible Indian child to attend a Bureau funded 
     school regardless of whether they reside within the 
     geographical attendance area. In addition, both deny funding 
     for transportation of such children unless authorized by the 
     tribal governing body.
       LC
       49. Using slightly different language, both the House bill 
     and the Senate amendment require that the geographical 
     attendance area be co-terminous with the boundaries of the 
     reservation, in the event that a single school serves a 
     reservation.
       LC
       50. Using different language, both the House bill and the 
     Senate amendment require schools with home-living situations 
     to accommodate students requiring special emphasis programs, 
     regardless of geographic boundaries, and requires 
     coordination among interested parties.
       LC
       51. The Senate amendment, but not the House bill, requires 
     the General Accounting Office (GAO) to conduct a study of the 
     physical needs of facilities at Bureau funded schools. This 
     study makes comparisons with school funded by the Department 
     of Defense, and must be submitted to the relevant committees 
     of Congress within two years of the date of enactment.
       HR with an amendment to insert ``accurate,'' before 
     ``relevant'' in (2)(B); insert ``and

[[Page 25867]]

     the HELP Committee'' before ``of the Senate'' in (4); also in 
     (4), end the sentence after ``Secretary'' and strike ``who, 
     in turn'' and insert ``The Secretary''.
       52. The Senate amendment but not the House bill requires 
     the Secretary to establish a negotiated rule making committee 
     to compile a catalog of the condition of Bureau funded 
     schools and a school construction and replacement report. 
     These reports must be submitted to the relevant Congressional 
     committees and other entities not later than 24 months after 
     establishment of the negotiated rulemaking committee.
       HR with an amendment on placement.
       LC--place in over all negotiators provisions.
       53. The Senate amendment but not the House bill requires 
     the Secretary to develop a facilities information systems 
     support database to maintain and update information contained 
     in the facilities reports. The system is to be updated every 
     3 years, monitored by the GAO, and the information is to be 
     made available to Bureau funded schools and other interested 
     parties, and to Congress.
       HR
       54. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to bring 
     Bureau funded school facilities into compliance with health 
     and safety codes. The House bill references the ``No Child 
     Left Behind Act of 2001'', while the Senate amendment 
     references the ``Native American Education Improvement Act of 
     2001''.
       LC
       55. Using almost identical language, both the House bill 
     and the Senate amendment require the Secretary to submit a 
     plan to bring all Bureau funded education facilities into 
     compliance with health and safety standards. Such plan must 
     be submitted to the appropriate committees of Congress at the 
     time of the annual budget request.
       LC
       56. Using similar language, both the House bill and the 
     Senate amendment require the Secretary to establish and 
     publicly report the system used to establish priorities for 
     the replacement and construction of Bureau funded schools. 
     Both the House bill and the Senate amendment further require 
     the establishment of a long term plan for construction and 
     replacement of Bureau schools.
       LC
       57. Using similar language, both the House bill and the 
     Senate amendment allow for the closure or consolidation of 
     Bureau funded schools in the event of conditions that 
     threaten health and safety. In addition, the Senate amendment 
     requires that the Bureau health and safety officer and an 
     individual designated by the Tribe determine that such 
     conditions exist.
       HR with an amendment to strike ``and'' and insert ``or'' in 
     (A);
       Insert a new (iv): ``be designated at the beginning of the 
     school year.'' in (B).
       58. Both the House bill and the Senate amendment require 
     inspection of the facility by two individuals to determine if 
     a health or safety hazard requires a facilities closure. The 
     House bill requires the Bureau officer to be accompanied by 
     an appropriate tribal, county, municipal, or State health or 
     safety officer. The Senate amendment requires an individual 
     designated by the tribe. The House bill further requires the 
     inspection to occur within 30 days after the finding of the 
     hazard. The House bill prohibits further negative action 
     unless both inspectors concur that a health or safety threat 
     exists. The Senate amendment provides for different action in 
     the case of non-concurrence.
       HR with an amendment to strike ``In'' and insert ``After'' 
     before ``making''; and insert ``Such inspection shall be 
     completed as soon as possible but in no case later than 20 
     days after the date on which the action described in 
     paragraph (1) is taken.'' as the last sentence in (C).
       59. The Senate amendment, but not the House bill, require 
     notification of the tribal governing body in the case that 
     the two inspectors do not concur (see note 56).
       HR
       60. The Senate amendment but not the House bill requires 
     the tribal governing body to make the determination regarding 
     closure or curtailment in the case that 2 health and safety 
     inspectors do not concur (see note 58).
       HR
       61. The House bill requires that consolidation or 
     curtailment immediately halt, or that the facility be 
     reopened if the Bureau health and safety inspector does not 
     find conditions present an immediate health or safety hazard. 
     The Senate amendment requires that if the inspectors agree 
     that a health or safety condition exists, or if the tribal 
     governing body makes such a determination, that the facility 
     shall be closed immediately.
       HR with an amendment to insert House (B) to end of Senate 
     (F) as new (1).
       62. Both the House bill and the Senate amendment require 
     that in the event of a closure or curtailment that will 
     exceed 1 year, the Secretary shall issue a report to 
     Congress. The House bill requires the report within 6 months, 
     while the Senate amendment requires the report within 3 
     months. The Senate amendment also requires the report to go 
     to other interested parties, requires more reporting 
     elements, and outline steps that the effected school, 
     designated school board, or tribal governing body may take to 
     continue its program during the closure.
       HR
       63. The Senate amendment, but not the House bill, requires 
     that all funds allocated for operations or maintenance be 
     distributed under a formula, and prohibits these funds from 
     being used for administrative purposes by the Bureau.
       HR
       64. Using different language, both the House bill and the 
     Senate amendment prohibit the Secretary from withholding 
     funds for maintenance, facilities or roads without the 
     consent of the school.
       LC
       65. Using slightly different language both the House bill 
     and the Senate amendment prohibit any reduction in federal 
     facilities funding due to the receipt of facilities funding 
     from a State or other source.
       LC
       66. Using slightly separate language, both the House bill 
     and the Senate amendment require the Secretary to vest in the 
     Assistant Secretary for Indian Affairs all functions with 
     respect to the formulation and establishment of policy and 
     procedure to carry out Indian education programs.
       LC
       67. Using slightly different language, both the House bill 
     and the Senate amendment require the transfer of all 
     personnel directly and substantially involved in the 
     provision of Indian education programs to the Office of 
     Indian Education Programs. The transfer is to occur within 6 
     months of the date of enactment, and is to be overseen by the 
     Assistant Secretary for Indian Affairs.
       HR
       68. The Senate amendment but not the House bill subjects 
     all functions related to education that are located at the 
     Area or Agency level and carried out by an education line-
     officer to contracting under the Indian Self-Determination 
     and Education Assistance Act, unless the Secretary determines 
     the function to be inherently a federal function.
       HR with an amendment to strike ``section 1139(9)'' and 
     insert ``section 1139(11).
       69. Both the House bill and the Senate amendment set forth 
     the same responsibilities for personnel under the direction 
     of the Office of Indian Education Programs.
       LC
       70. Using slightly different language, both the House bill 
     and the Senate amendment require an annual plan for the 
     construction, improvement, operation and maintenance of 
     facilities to be submitted annually with the budget.
       LC
       71. Using similar language, both the House bill and the 
     Senate amendment require the Assistant Secretary to establish 
     procedures for the uniform upkeep of Bureau funded education 
     facilities. The Senate amendment further requires the 
     Assistant Secretary to hold a series of meetings to receive 
     comment.
       LC
       72. Using similar language, both the House bill and the 
     Senate amendment set forth criteria for the implementation of 
     maintenance.
       LC
       73. Using identical language, both the House bill and the 
     Senate amendment require the implementation of this provision 
     as soon as practicable after the date of enactment.
       LC
       74. Using similar language, both the House bill and the 
     Senate amendment require the Director to develop mechanisms 
     and guidelines for the acceptance and use of gifts and 
     bequests to benefit particular schools or education programs. 
     The Senate Amendment exempts gifts below $5000 from these 
     guidelines.
       HR
       75. Using similar language, both the House bill and the 
     Senate amendment clarify the use of the term function for the 
     purposes of this section.
       LC
       76. Using similar language, both the House bill and the 
     Senate amendment require the Secretary to establish a formula 
     for determining the minimum annual funding required to 
     sustain each Bureau funded school. The House bill and the 
     Senate amendment require the Secretary to consider the same 
     criteria, except that the Senate amendment adds funding to 
     comply with accreditation standards to the list.
       LC
       77. Using similar language, both the House bill and the 
     Senate amendment require the Secretary to revise the funding 
     formula to take into account revisions in academic and 
     accreditation standards.
       HR
       78. The House bill and Senate Amendment allow the Secretary 
     to consider other factors, but the Senate Amendment includes 
     the GAO study and comparing BIA schools to DOD schools.
       SR
       79. Using similar language, both the House bill and the 
     Senate amendment require a revision of the formula 
     established in this subsection to reflect the revision of 
     standards.

[[Page 25868]]

       SR
       80. Both the House bill and the Senate amendment require 
     the pro rata distribution of general local operational funds 
     to Bureau funded schools.
       LC
       81. Using similar language, both the House bill and the 
     Senate amendment establish the same formula for the 
     distribution of Bureau funds.
       SR
       82. Both the House bill and the Senate amendment allow 
     school boards to reserve funds for certain purposes. The 
     Senate amendment, but not the House bill requires agency 
     school boards to provide training for new school board 
     members and recommends, but doesn't require training for 
     tribal governing bodies that operate as school boards.
       HR
       83. Using similar language, both the House bill and the 
     Senate amendment provide for the reservation of funds for 
     emergencies.
       LC
       84. Using similar language, both the House bill and the 
     Senate amendment provide for the distribution of supplemental 
     appropriations.
       LC
       85. Using similar language, both the House bill and the 
     Senate amendment define ``eligible Indian student''. The 
     Senate amendment, but not the House bill, defines an eligible 
     Indian student as a student who is enrolled in a BIA funded 
     school.
       HR
       86. Using similar language, both the House bill and the 
     Senate amendment set forth criteria under which a Bureau 
     school can charge tuition, and circumstances under which a 
     non-Indian student can attend a Bureau school.
       LC
       87. Using almost identical language, both the House bill 
     and the Senate amendment allow not more than 15 percent of 
     funding under this section to remain available without fiscal 
     year limitation.
       LC
       88. Using similar language, both the House bill and the 
     Senate amendment provide funding for students at the 
     Richfield Dormitory. The Senate amendment prohibits the 
     payment of administrative costs associated with the 
     instruction of these students.
       HR
       89. Using similar language, both the House bill and the 
     Senate amendment provide a formula for the payment of 
     administrative cost grants for both direct and indirect 
     costs. The House bill, but not the Senate amendment, subjects 
     the grants to the availability of appropriated funds.
       SR
       90. Using different placement, both the House bill and the 
     Senate amendment contain specific criteria for the payment of 
     administrative cost grants (see note 91).
       LC
       91. Using different placement, both the House bill and the 
     Senate amendment contain specific criteria for the payment of 
     administrative cost grants (see note 90).
       LC
       92. Using similar language, both the House bill and the 
     Senate amendment provide for no reduction in amounts received 
     by grant or contract schools, and provide for a determination 
     of the grant amount.
       LC
       93. The Senate amendment, but not the House bill, provides 
     that funding shall be ratably reduced in the event of 
     insufficient appropriations. The House bill has a similar 
     provision under authorization of appropriations (see note 
     98).
       LC
       94. Using similar language, both the House bill and the 
     Senate amendment provide an administrative cost percentage 
     rate.
       LC
       95. Using similar language, both the House bill and the 
     Senate amendment have provisions relating to the use and 
     treatment of funds.
       LC
       96. The Senate Amendment references section 106 of ISDEAA, 
     while the House bill references section 105 of ISDEAA.
       HR
       97. The House bill, but not the Senate amendment, requires 
     the director to conduct a study to ensure that administrative 
     cost grants will be based on criteria that ensure adequate 
     but not excessive funding.
       SR
       98. Both the House bill and the Senate amendment authorize 
     such sums as are necessary for the payment of administrative 
     cost grants under this section. In addition, the House bill 
     provides for the ratable reduction of funds in the event 
     appropriations are insufficient. The Senate has a similar 
     provision earlier in the section (see note 93).
       LC
       99. Using different language, both the House bill and the 
     Senate amendment apply the provisions of this section 
     (administrative cost grants) to schools receiving assistance 
     under the Tribally Controlled Schools Act of 1988.
       LC
       100. The Senate amendment, but not the House bill, requires 
     the Secretary to request full funding for administrative cost 
     grants in budget submissions on an annual basis beginning 
     with the President's budget request for fiscal year 2002.
       HR with an amendment to insert ``at the discretion of the 
     Secretary,'' before ``the Secretary shall submit''.
       101. Using similar language, both the House bill and the 
     Senate amendment require the Assistant Secretary to establish 
     within the Office of Indian Education Programs a Division of 
     Budget Analysis. The Division is to report on projected 
     amounts necessary to provide educational programs in Bureau 
     funded schools.
       LC
       102. Using similar language, both the House bill and the 
     Senate amendment establish the timing of the availability of 
     Bureau education funds to schools.
       HR
       103. The House bill requires the Secretary to publish the 
     allotment of 85 percent of allocated funds for schools not 
     later than July 1 of each fiscal year. The Senate amendment 
     requires the Secretary to publish the allotments of 80 
     percent of such funds.
       HR
       104. The House bill requires the Secretary to publish the 
     allotment of the remaining 15 percent of such funds, adjusted 
     to reflect actual student attendance not later than September 
     30. The Senate amendment includes a similar provision, 
     requiring the publication of the remaining 20 percent of 
     funds, and sets forth a timeline for the return of over 
     awards.
       HR
       105. Using similar language, both the House bill and the 
     Senate amendment allow the supervisor of a Bureau funded 
     school to expend an aggregate amount of not more than $50,000 
     per year to acquire materials, supplies, equipment, services, 
     operation, and maintenance without competitive bidding, and 
     sets forth criteria under which this authority may be 
     exercised.
       HR with and amendment to insert ``operated'' after 
     ``Bureau'' in paragraph (3)(A).
       106. The House bill, but not the Senate amendment, sets 
     forth procedures in the event of a sequestration of funds.
       SR
       LC to update references.
       107. Using similar language, both the House bill and the 
     Senate amendment require Bureau operated schools to develop a 
     financial plan and expend federal funds in accordance with 
     that plan. The House bill refers to all Bureau operated 
     schools, which the Senate amendment refers to each Bureau 
     school which receives an allotment under section 1126.
       LC
       108. The Senate amendment, but not the House bill requires 
     financial plans to comply with all applicable Federal and 
     tribal laws.
       HR
       109. The House bill, but not the Senate amendment, 
     prohibits funds received for self-determination grants under 
     the Indian Self-Determination and Education Assistance Act 
     from being used for technical education and training in the 
     field of education by the Bureau, unless expended under a 
     plan agreed to by the tribe or tribes affected.
       HR
       110. Using different language, both the House bill and the 
     Senate amendment allow funds to be expended for tribal 
     divisions of education and development of tribal codes of 
     education. The House bill references section 104 of the 
     ISDEAA while the Senate amendment references section 103 of 
     such Act.
       HR
       111. Using similar language, both the House bill and the 
     Senate amendment allow the Secretary to supply technical 
     assistance and training at the request of a local school 
     board.
       LC
       112. Using similar language, both the House bill and the 
     Senate amendment provide for summer programs of instruction 
     and set forth criteria under which they may be provided.
       LC
       113. Using similar language, both the House bill and the 
     Senate amendment allow for cooperative agreements between 
     Bureau funded schools and local public school districts, and 
     set forth criteria under which they may be entered into.
       HR
       114. Using identical language, both the House bill and the 
     Senate amendment allow a student to keep the product or 
     result of a project in which the student participated and 
     sets forth criteria under which this may occur.
       LC
       115. Using different language, both the House bill and the 
     Senate amendment exempt funds received by Bureau funded 
     schools under this part from being considered federal funds 
     if used to meet matching funds requirements of other federal 
     programs. In addition, the Senate amendment exempts Bureau 
     funded schools from such requirements, and prohibits the 
     entity administering the program from considering the 
     exemption when awarding such grants.
       HR with an amendment to strike paragraph (2).
       116. Using similar language, both the House bill and the 
     Senate amendment set forth a federal policy of facilitating 
     Indian control in all affairs relating to Indian education, 
     requires consultation with tribes,

[[Page 25869]]

     and sets forth requirements for such consultation.
       HR
       117. Using similar language, both the House bill and the 
     Senate amendment set forth requirements for the hiring and 
     employment of Indian education personnel.
       LC
       118. The House bill, but not the Senate amendment, requires 
     that a list of qualified and interviewed applicants be 
     maintained in the Office of Indian Education Programs of 
     applicants that have applied at the national level and that 
     are interested in working anywhere within the United States.
       HR
       119. The House bill requires that before an individual may 
     be employed in an education position in the Office of the 
     Director, the national boards representing all Bureau schools 
     must be consulted. The Senate amendment requires that all 
     employment decisions be in compliance with applicable 
     federal, State, and tribal laws.
       HR
       120. Using different language, both the House bill and the 
     Senate amendment require that applicants at the local level 
     state whether they have applied at the national level, and 
     allows for discipline or discharge in the event of a false 
     statement.
       LC
       121. The Senate amendment but not the House bill sets forth 
     procedures for the appeal of employment decisions.
       HR
       122. Using similar language, both the House bill and the 
     Senate amendment set forth procedures in the event that the 
     adoption of new rates of pay lead to increases.
       LC
       123. The House bill but not the Senate amendment sets forth 
     procedures for determination of pay rates based on merit and 
     advancement, and preclude such adjustments from effecting 
     certain individuals employed on October 1, 1979.
       LC on placement.
       124. Both the House bill and the Senate amendment allow the 
     Secretary to pay a post-differential rate not to exceed 25 
     percent if warranted by conditions of environment or work, 
     and set forth provisions under which post-differential pay 
     may be granted.
       LC
       125. Using similar language, both the House bill and the 
     Senate amendment sets forth provisions for the supervisor of 
     a school to grant differential pay.
       HR
       126. Using similar language, both the House bill and the 
     Senate amendment provide for the liquidation of remaining 
     leave upon termination and the transfer of sick leave upon 
     transfer, promotion, or reemployment.
       LC
       127. Using similar language, both the House bill and the 
     Senate amendment provide that an educator that voluntarily 
     terminates employment before the expiration of a contract is 
     ineligible for reemployment in another post prior to the 
     expiration of the term of the contract.
       LC
       128. Using similar language, both the House bill and the 
     Senate amendment set forth terms and conditions for dual 
     compensation of educators, the acceptance of voluntary 
     services, proration of pay, lump sum payments of salary, the 
     payment of stipends, and the applicability of this section to 
     individual employees based on employment status as of October 
     31, 1979.
       LC
       129. The House bill provides for definitions. The Senate 
     amendment provides definitions using different placement.
       SR
       LC on placement
       130. The Senate amendment, but not the House bill puts 
     certain restrictions on furloughs without consent, and 
     provides for stipends for instructors that become certified 
     by the National Board on Professional Teaching Standards.
       HR
       LC to conform (r) with resolution of note 294 in Title II.
       131. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to establish a 
     computerized information system within the Office of Indian 
     Education Programs. The House bill requires its establishment 
     not later than July 1, 2003, while the Senate amendment 
     requires establishment not later than 12 months from the date 
     of enactment. Both require maintenance of the same 
     information.
       HR
       132. The House bill requires implementation in Bureau field 
     offices and Bureau funded schools not later than July 1, 
     2004, while the Senate amendment requires such implementation 
     not later than July 1, 2003.
       HR
       133. The House bill but not the Senate amendment requires 
     the Secretary to cause various divisions of the Bureau to 
     formulate uniform procedures and practices with respect to 
     education functions and to report them to Congress.
       HR
       134. Using almost identical language, both the House bill 
     and the Senate amendment requires the Secretary to implement 
     a policy for the recruitment of Indian educators.
       LC
       135. Using almost identical language, both the House bill 
     and the Senate amendment require the Secretary to report on 
     the state of education within the Bureau. The House requires 
     this report on a biennial basis, while the Senate amendment 
     requires an annual report.
       HR
       136. Using different language, both the House bill and the 
     Senate amendment require plans required under this Act to be 
     submitted to Congress with the budget request. The House bill 
     also requires the submission of information on funds provided 
     to previously private schools and the needs and costs of 
     maintenance for Tribally Controlled Community Colleges.
       HR
       137. Using slightly different language, both the House bill 
     and the Senate amendment require the Inspector General ensure 
     financial and compliance audits of each Bureau school at 
     least once every 3 years.
       LC
       138. The Senate amendment but not the House bill requires 
     the Director to conduct a comprehensive evaluation of Bureau 
     operated schools every 3 to 5 years.
       HR
       139. Using slightly different language, both the House bill 
     and the Senate amendment require the Secretary to prescribe 
     regulations to ensure the constitutional and civil rights of 
     Indian students, and prohibit the Secretary from promulgating 
     unless they are necessary to ensure compliance with specific 
     provisions of this Act. The House bill requires a comment 
     period of at least 90 days on such regulations while the 
     Senate amendment requires a comment of at least 120 days. 
     Using different placement, both the House bill and the Senate 
     amendment require regulations issued to cite specific legal 
     authority. In addition, the House bill states that this Act 
     shall supercede any conflicting provision of law.
       SR with an amendment to strike ``90'' and insert ``120''.
       140. Using different language, both the House bill and the 
     Senate amendment require negotiated rulemaking and public 
     comment prior to publishing proposed regulations.
       HR with an amendment to strike Senate (c)(2) and insert 
     House (b)(2) in its place and apply 18 month deadline to 
     House language.
       141. Both the House bill and the Senate amendment require 
     meetings to comply with the Federal Advisory Committee Act.
       LC
       142. The Senate amendment but not the House bill authorizes 
     appropriations for negotiated rule making, provide that 
     provisions under this section supercede conflicting 
     provisions of law, and prohibit the Secretary from modifying 
     regulations promulgated under this section only in accordance 
     with this section.
       HR with an amendment to strike paragraph (4) and insert the 
     following language:
       ``(4) Special Rule.--The Secretary shall carry out this 
     section using the general administrative funds of the 
     Department of the Interior. In accordance with subchapter III 
     of chapter 5 of title 5, United States Code, and section 7(d) 
     of the Federal Advisory Committee Act, payment of costs 
     associated with negotiated rulemaking shall include the 
     reasonable expenses of committee members.''
       And to include (d)(1) and (2) striking ``provisions of law 
     (including any conflicting''.
       143. Using almost identical language, both the House bill 
     and the Senate amendment authorize early childhood 
     development programs.
       LC
       144. The House bill authorizes $10 million for FY 2002, and 
     such sums as are necessary for fiscal years 2003 through 2006 
     for early childhood development programs. The Senate 
     amendment authorizes such sums as may be necessary for fiscal 
     years 2002 through 2006.
       HR
       145. Using different language, both the House bill and the 
     Senate amendment allow grants for the development and 
     operation of tribal departments and divisions of education.
       HR
       146. The House bill but not the Senate amendment allows 
     funds to be used to comply with regulations under section 
     103(a) of the Indian Self-Determination and Educational 
     Assistance Act.
       HR
       147. Both the House bill and the Senate amendment set forth 
     different priorities for grants.
       HR
       148. Both the House bill and the Senate amendment authorize 
     $2 million for FY 2002 and such sums as necessary for FY 2003 
     through 2006 for tribal departments or divisions of 
     education.
       LC
       149. Using similar language, both the House bill and the 
     Senate amendment contain similar definitions.
       LC
       150. The Senate amendment but not the House bill defines 
     the term ``complementary educational facilities.''

[[Page 25870]]

       HR
       151. The Senate amendment, but not the House bill, defines 
     ``Director.''
       HR
       152. The House bill but not the Senate amendment defines 
     the term ``family literacy service.''
       SR
       153. The Senate amendment but not the House bill defines 
     the term ``inherently Federal functions.''
       HR
       154. The Senate bill but not the House amendment defines 
     the term ``regulation.''
       HR with an amendment to insert the following language:
       ``(15) Regulation.--
       ``(A) In general.--The term ``regulation'' means any part 
     of a statement of general or particular applicability of the 
     Secretary designed to carry out, interpret, or prescribe law 
     or policy in carrying out this Act.
       ``(B) Rule of construction.--Nothing in the definition 
     contained in subparagraph (A), or any other provision of this 
     title, shall be construed to prohibit the Secretary from 
     issuing guidance, internal directive or other documents 
     similar to the documents found in the Indian Affairs Manual 
     (Bureau of Indian Affairs).''
       155. Both the House bill and the Senate amendment amend the 
     Tribally Controlled Schools Act of 1988.
       LC
       156. Using similar language, both the House bill and the 
     Senate amendment have identical findings.
       HR/SR to eliminate findings and with an amendment to insert 
     the following language:


                        ``DECLARATION OF POLICY

       ``(a) Recognition. Congress recognizes that the Indian 
     Self-Determination and Education Assistance Act, which was a 
     product of the legitimate aspirations and a recognition of 
     the inherent authority of Indian nations, was and is a 
     crucial positive step towards tribal and community control 
     and that the United States has an obligation to assure 
     maximum Indian participation in the direction of educational 
     services so as to render the persons administering such 
     services and the services themselves more responsive to the 
     needs and desires of Indian communities.
       ``(b) Commitment. Congress declares its commitment to the 
     maintenance of the Federal Government's unique and continuing 
     trust relationship with and responsibility to the Indian 
     people for the education of Indian children through the 
     establishment of a meaningful Indian self-determination 
     policy for education that will deter further perpetuation of 
     Federal bureaucratic domination of programs.
       ``(c) National Goal. Congress declares that a national goal 
     of the United States is to provide the resources, processes, 
     and structure that will enable tribes and local communities 
     to obtain the quantity and quality of educational services 
     and opportunities that will permit Indian children--
       ``(1) to compete and excel in areas of their choice; and
       ``(2) to achieve the measure of self-determination 
     essential to their social and economic well-being.
       ``(d) Educational Needs. Congress affirms--
       ``(1) true self-determination in any society of people is 
     dependent upon an educational process that will ensure the 
     development of qualified people to fulfill meaningful 
     leadership roles;
       ``(2) the special and unique educational needs of Indian 
     people, including the need for programs to meet the 
     linguistic and cultural aspirations of Indian tribes and 
     communities; and
       ``(3) that the needs may best be met through a grant 
     process.
       ``(e) Federal Relations. Congress declares a commitment to 
     the policies described in this section and support, to the 
     full extent of congressional responsibility, for Federal 
     relations with the Indian nations.''
       157. Using similar language, both the House bill and the 
     Senate amendment have the same declaration of policy.
       HR with an amendment (see language from note 156).
       158. Using similar language, both the House bill and the 
     Senate amendment provide for grants to Indian tribes and 
     tribal organizations for school operations.
       LC
       159. The Senate amendment, but not the House bill, waives 
     the Tort Claims Act for programs operated by a tribally 
     controlled school if the program is not funded by a federal 
     agency.
       SR
       160. Using almost identical language, both the House bill 
     and the Senate amendment provide for federal funds to be 
     included in the grant.
       LC
       161. Using similar language, both the House bill and the 
     Senate amendment set forth accounting provisions for funds 
     used for improvement or repair, alteration or renovation 
     health or safety, or new construction. The Senate amendment, 
     but not the House bill, sets out various requirements for 
     construction and facilities improvement projects.
       HR with an amendment to insert the following language at 
     the end of (A): ``Upon completion of a project for which a 
     separate account is established under this paragraph, the 
     portion of the grant related to such project may be closed 
     out upon agreement by the grantee and the Secretary.''
       162. Using almost identical language, both the House bill 
     and the Senate amendment set forth application procedures and 
     processes for grant schools.
       LC
       163. The Senate amendment, but not the House bill, requires 
     the application to be approved by the tribal governing body.
       SR
       164. The Senate amendment, but not the House bill, states 
     that nothing in this subsection shall be construed as making 
     a tribe act as a surety for a grantee, and attempts to 
     clarify that existing surety requirements are not required.
       SR
       165. Using similar language, both the House bill and the 
     Senate amendment sets forth criteria under which schools 
     eligible to be grant schools remain eligible and criteria 
     under which grant status may be revoked.
       LC
       166. The Senate amendment, but not the House bill, requires 
     a biennial compliance audit.
       HR with an agreement to insert the following Report 
     Language:
       Report Language:
       In establishing the requirements for the biennial 
     compliance audit, the Conferees expect the Secretary, through 
     regulation, to establish a reasonable threshold that would 
     exempt purchases of less than $5000 for this audit.


       167. The Senate amendment, but not the House bill, requires 
     the school seeking accreditation to remain under the 
     standards of the Bureau until the school is accredited.
       HR with an agreement to insert the following Report 
     Language:
       Report Language:
       In determining which circumstances are under the control of 
     the school board, the Conferees intend that circumstances 
     such as insufficient funding for school programs, inability 
     to recruit certified teachers and administrators, and 
     facilities that do not meet accreditation standards shall not 
     be considered within the control of the school board.
       168. The Senate amendment, but not the House bill, states 
     that a positive assessment by an impartial evaluator shall 
     not affect a revocation of a determination of eligibility.
       HR
       169. The Senate amendment, but not the House bill, provides 
     a hearing upon request of the school or governing body.
       HR
       170. Using similar language, both the House bill and the 
     Senate amendment set forth payment criteria.
       LC
       171. The House bill requires that a first payment be made 
     to schools not later than July 15 of each year, in an amount 
     equal to 85 percent of the amount to be received for the 
     year. The Senate amendment requires that the payment be made 
     not later than July 1 of each year in an amount equal to 80 
     percent of the amount the grantee is eligible to receive for 
     the year. Both the House bill and the Senate amendment 
     require that the remainder be paid not later than December 1 
     of each year.
       LC for consistency.
       172. The Senate amendment, but not the House bill, provides 
     for the return of excess funds.
       HR
       173. The Senate amendment, but not the House bill, 
     prohibits states from taking into account assistance made 
     under this part and provides for penalties in the event that 
     they do.
       SR
       174. Using almost identical language, both the House bill 
     and the Senate amendment apply certain provisions of the 
     Indian Self-Determination and Education Assistance Act to 
     schools funded under this part, allow schools to elect to be 
     grant rather than contract schools, and provide for 
     carryovers and transfers.
       LC
       175. The Senate amendment requires an election to take 
     effect on the 1st day of July following the election. The 
     House bill requires an election to take effect on October 1 
     of the fiscal year succeeding the fiscal year in which the 
     election is made or 60 days after the election.
       HR
       176. The Senate amendment, but not the House bill, provides 
     that any tribe or tribal organization that assumes operation 
     of a Bureau school as a grant school shall be eligible for 
     facilities improvement.
       HR
       177. Using almost identical language, both the House bill 
     and the Senate amendment set forth the role of the Director, 
     sets forth the Secretary's ability to issue regulations, and 
     provides for the establishment of endowment programs funded 
     with non-federal funds.
       LC
       178. The House bill, but not the Senate amendment, states 
     that regulations shall not have the standing of Federal 
     statute for the purposes of judicial review.
       HR
       179. Using almost identical language, both the House bill 
     and the Senate amendment set forth Definitions.

[[Page 25871]]

       LC
       180. The Senate amendment but not the House bill provides a 
     definition of the term ``Indian.''
       HR
       181. The Senate amendment but not the House bill provides a 
     definition of the term ``tribal governing body.''
       HR
       182. The Senate amendment but not the House bill allows the 
     Ojibwa Indian School to use funds received under this Act to 
     enter into a lease agreement with Saint Ann's Catholic 
     Church.
       HR
       183. The Senate amendment but not the House bill amends the 
     Augustine F. Hawkins--Robert T. Stafford Elementary and 
     Secondary to prohibit the Secretary from disqualifying 
     certain individuals from continued receipt of general 
     assistance payments under certain circumstances.
       HR
       184. The House bill but not the Senate amendment places 
     certain limitations on reductions of administrative funds to 
     the Bureau for failure to meet accountability provisions 
     contained in the No Child Left Behind Act of 2001.
       HR

          Title IV, Part A--Innovative Programs (Block Grant)

                         (New Title V, Part A)

       1. House bill ``Innovative Programs'' is Part A of Title 
     IV. Senate amendment ``Innovative Education Program 
     Strategies'' is Subpart 4 of Part B of Title V.
       LC
       2. House bill, but not Senate amendment, contains findings.
       HR
       3. Senate amendment, but not House bill, includes support 
     for local reform efforts that are consistent with and support 
     statewide reform efforts.
       HR
       4. Similar provision except that House bill, but not Senate 
     amendment, mentions school improvement initiatives based on 
     scientifically based research.
       SR
       5. Identical provision.
       LC
       6. House bill, but not Senate amendment, mentions the need 
     to meet the educational needs of all students, including 
     youth at-risk.
       SR
       7. Senate amendment, but not House bill, includes support 
     for programs to improve school, student, and teacher 
     performance, including professional development activities 
     and class size reduction.
       HR
       8. Similar provision except that House bill refers to 
     `State' while Senate amendment refers to `State educational 
     agency' (this continues throughout each bill).
       HR
       9. Virtually identical provisions.
       LC
       10. Similar provisions.
       SR with an amendment to insert the following language:

     ``SEC. 4112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Distribution Rule.--
       ``(1) Allocation of base amounts.--From the amount made 
     available to the State under this subpart for fiscal year 
     2002, and from the amount made available to the State for any 
     succeeding fiscal year up to the amount available for fiscal 
     year 2002, the State educational agency shall distribute not 
     less than 85 percent to local educational agencies within 
     such State according to the relative enrollments in public 
     and private, nonprofit schools within the jurisdictions of 
     such agencies, adjusted, in accordance with criteria approved 
     by the Secretary, to provide higher per-pupil allocations to 
     local educational agencies that have the greatest numbers or 
     percentages of children whose education imposes a higher than 
     average cost per child, such as--
       ``(A) children living in areas with high concentrations of 
     economically disadvantaged families;
       ``(B) children from economically disadvantaged families; 
     and
       ``(C) children living in sparsely populated areas.''
       11. House bill, but not Senate amendment, requires that 
     100% of funds above the FY 01 level be distributed to LEAs 
     for local innovative assistance programs.
       SR with an amendment to insert the following language:
       ``(2) Allocations of increased amounts.--From the amount 
     made available to the State under this subpart for any fiscal 
     year that exceeds the amount made available for fiscal year 
     2002, the State educational agency shall distribute the 
     following percentages to local educational agencies on the 
     same basis as funds are allocated under paragraph (1):
       ``(A) At least 50 percent in the case of a State receiving 
     the minimum allocation under section 4111(b); and
       ``(B) 100 percent in all other cases.''
       12. House bill limits State administrative funds at 25% of 
     State share. Senate amendment limits State administrative 
     funds a 15% of State share.
       HR
       13. Virtually identical provisions.
       SR with an amendment to strike ``State'' and insert ``State 
     educational agency'' each place it occurs; LC to continue 
     this change throughout this Part.
       14. Virtually identical provisions.
       LC
       15. Similar provisions.
       LC
       16. Senate amendment, but not House bill, includes support 
     for effective schools programs.
       SR
       17. Senate amendment, but not House bill, allows States to 
     use funds to design and implement high-quality yearly student 
     assessments.
       HR
       18. Senate amendment, but not House bill, allows States to 
     use funds to support implementation of State and local 
     standards.
       HR
       19. Identical provision.
       LC
       20. House bill stipulates that if a State seeks to receive 
     assistance under this subpart, the individual, entity, or 
     agency responsible for public elementary and secondary 
     education policy under the State constitution or State law 
     shall submit to the Secretary an application. Senate 
     amendment requires the State to submit an application.
       HR
       21. Senate amendment, but not House bill, designates the 
     State educational agency as the State agency responsible for 
     administration and supervision of programs assisted under 
     this subpart
       HR
       22. House bill requires an annual summary of how assistance 
     is contributing toward improving student achievement. Senate 
     amendment requires a biannual submission of data on the use 
     of funds, services, and students served.
       SR
       23. Similar provisions.
       LC
       24. House bill describes the annual statewide summary 
     (required in (a)(1) above). Senate amendment contains no such 
     description of the biannual submission of data (required in 
     (b)(2) above).
       SR with amendment to insert ``annually'' after the word 
     ``submitted''.
       25. Identical provision.
       LC
       26. House bill specifies that an LEA may not be audited 
     more than once every 5 years if its average grant is less 
     than $5,000. Senate amendment specifies that an LEA that 
     receives an average grant of less than $10,000 for 3 fiscal 
     years may not be audited more than once every 5 years.
       HR
       27. Similar provision.
       LC
       28. Similar use of funds regarding teachers and 
     professional development.
       HR/SR with amendment to insert the following combined 
     language:
       ``(1) programs to recruit, train, and hire highly qualified 
     teachers to reduce class size, especially in the early 
     grades, and professional development activities carried out 
     in accordance with Title II, that give teachers, principals, 
     and administrators the knowledge and skills to provide 
     students with the opportunity to meet challenging State or 
     local academic content standards and student academic 
     achievement standards;''
       29. Similar use of funds regarding technology activities.
       HR
       30. Similar use of funds regarding acquisition of 
     instructional and educational materials, including library 
     services.
       SR
       31. House bill, but not Senate amendment, contains use of 
     funds regarding promising education reform projects.
       SR with an amendment to strike ``effective schools and''.
       32. Similar use of funds regarding programs to improve the 
     academic performance of educationally disadvantaged students.
       HR
       33. House bill provides for programs to combat illiteracy. 
     Senate amendment provides for programs to improve the 
     literacy skills of adults.
       HR
       34. Identical provision.
       LC
       35. House bill, but not Senate amendment, provides for 
     programs for the planning, designing, and initial 
     implementation of charter schools.
       SR
       36. Identical provision.
       LC
       37. House bill, but not Senate amendment, provides for 
     community service programs that use qualified school 
     personnel to train and mobilize young people to measurably 
     strengthen their communities.
       SR
       38. Identical provision.
       LC with an amendment to include the following report 
     language:
       The conferees recognize that entrepreneurial education has 
     largely been absent from current educational curriculums. In 
     light of the rapidly changing economy and emphasis on new 
     technologies, the conferees note that it is increasingly 
     important to stimulate entrepreneurial thinking and the 
     consideration at an early age of business ownership as a 
     viable option. The conferees agree

[[Page 25872]]

     that encouraging the distribution of innovative 
     entrepreneurial education programs that teach basic business 
     skills and the development of sound business plans to 
     secondary school age students is essential to expanding 
     future opportunities and prosperity.
       39. House bill, but not Senate amendment, provides for 
     activities to promote, implement, or expand public school 
     choice.
       SR
       40. House bill, but not Senate amendment, provides for 
     programs to hire and support school nurses.
       SR
       41. House bill, but not Senate amendment, provides for 
     programs to expand and improve school-based mental health 
     services.
       SR
       42. House bill, but not Senate amendment, provides for 
     alternative educational programs for those students who have 
     been expelled or suspended from their regular educational 
     setting.
       SR
       43. House bill, but not Senate amendment, provides for 
     programs to establish or enhance pre-kindergarten programs 
     for children ages 3 through 5.
       SR with an amendment to strike ``ages 3 through 5''.
       44. House bill, but not Senate amendment, provides for 
     academic intervention programs that are operated jointly with 
     community-based organizations.
       SR
       45. House bill, but not Senate amendment, provides for CPR 
     training in schools.
       SR
       46. House bill, but not Senate amendment, provides for 
     programs to establish smaller learning communities.
       SR
       47. Senate amendment, but not House bill, provides for 
     activities that encourage and expand improvements throughout 
     the LEA.
       HR with an amendment to strike ``performance'' and insert 
     ``academic achievement''.
       48. Senate amendment, but not House bill, provides for 
     initiatives to generate, maintain, and strengthen parental 
     and community involvement.
       HR with an amendment to strike ``including initiatives . . 
     . birth through 5''.
       49. Senate amendment, but not House bill, provides for 
     programs and activities that expand learning opportunities 
     through best practice models.
       HR
       50. Senate amendment, but not House bill, provides for 
     programs to provide same gender schools and classrooms.
       HR
       51. Senate amendment, but not House bill, provides for 
     service learning activities.
       HR
       52. Senate amendment, but not House bill, provides for 
     school safety programs.
       HR
       53. Senate amendment, but not House bill, provides for 
     programs that employ research- based cognitive and perceptual 
     development approaches and rely on a diagnostic-prescriptive 
     model to improve students' learning of academic content.
       HR
       54. Senate amendment, but not House bill, provides for 
     supplemental educational services.
       HR
       55. Senate amendment, but not House bill, requires local 
     innovative assistance programs to be tied to promoting high 
     academic standards, used to improve student performance, and 
     be part of an overall education reform strategy.
       HR with an amendment to insert ``achievement'' before 
     ``standards'' in (A) and strike ``performance'' and insert 
     ``academic achievement'' in (B).
       56. Senate amendment, but not House bill, requires the 
     Secretary to issue guidelines for LEAs.
       HR with an amendment to strike ``the Better Education for 
     Students and Teachers'' and insert ``this'' and strike 
     ``specific award criteria and other''.
       LC for subsection cite (b)(1)(L).
       57. Virtually identical provision, except House bill 
     includes `religious organizations' as a possible nonprofit 
     agency.
       HR
       58. Similar provisions.
       LC
       59. House bill, but not Senate amendment, requires local 
     applications to provide assurances that programs, services, 
     and activities will be evaluated annually.
       SR with amendment to insert Senate language from Note 22 
     and add at the end a new (I):
       ``(H) provides assurance that--
       ``(i) programs, services and activities will be evaluated 
     annually;
       ``(ii) such evaluation will be used to make decisions about 
     appropriate changes in program services and activities for 
     the subsequent year;
       ``(iii) such evaluation will describe how assistance under 
     this subpart affected student academic achievement, and will 
     include, at a minimum, information and data on the use of 
     funds, the types of services furnished, and the students 
     served under this part; and
       ``(iv) such evaluation will be submitted to the State in 
     the time and manner requested by the State.
       ``(I) if appropriate, describe how applicants seeking funds 
     under section 5331(b)(1)(L) will comply with guidance issued 
     by the Secretary regarding same gender schools and classrooms 
     under section 5331(c).''
       60. Senate amendment, but not House bill, allows 
     allocations of funds to programs for 3 years.
       SR
       61. Similar provisions.
       LC
       62. Virtually identical provisions.
       LC
       63. Virtually identical provisions.
       LC
       64. Virtually identical provisions.
       LC
       65. Identical provisions.
       LC
       66. Virtually identical provisions.
       LC
       67. Senate amendment, but not House bill, authorizes local 
     funds for construction of small schools.
       HR with an agreement to move to section 5121 (State Uses of 
     Funds) amended to read as follows:
       ``(7) Support for the program described in section 321 of 
     H.R. 5656, the Labor-Health and Human Services-Education 
     Appropriations Act, 2001, as incorporated into P.L. 106-554, 
     the Consolidated Appropriations Act, 2001.''
       68. Identical definition.
       LC
       69. Identical definition.
       LC
       70. Similar definitions (House bill defines term under 
     general provisions).
       SR
       71. House bill authorizes $450 million for FY 02 and such 
     sums as may be necessary for each of FY 03 through FY 06. 
     Senate amendment authorizes $850 million for FY 02 and such 
     sums as may be necessary for each of next 6 succeeding fiscal 
     years.
       SR
       72. Senate amendment, but not House bill, contains 
     provision regarding duration of assistance.
       SR
       LC--Add the following language to section 5121 (State Uses 
     of Funds):
       ``(8) Support for programs to assist in the implementation 
     of the policy described in section [Unsafe School Choice 
     Policy in General Provisions], which may include payment of 
     reasonable transportation costs and tuition costs for such 
     students.''
       LC--Redraft (25) in section 5131 (Local Uses of Funds):
       ``(25) School safety programs, including programs to 
     implement the policy described in section [Unsafe School 
     Choice Policy in General Provisions], and which may include 
     payment of reasonable transportation costs and tuition costs 
     for such students.''
       73. House bill authorizes ``Arts Education'' as Subpart 2 
     of Part A of Title IV. Senate amendment authorizes ``Arts in 
     Education'' as Subpart 3 of Part F of Title XVI.
       HR/SR with an agreement to move to Subpart 15 of Title V, 
     Part D (FIE).
       74. House bill and Senate amendment contain various 
     findings.
       HR/SR (no findings)
       75. Similar provisions except that Senate amendment 
     contains an additional purpose to support the national effort 
     to enable all students to demonstrate competence in the arts.
       SR with an amendment to insert Senate (3) after House (2).
       76. Similar provisions.
       SR
       77. House bill uses the term `States' and Senate amendment 
     uses the term `State educational agencies.'
       HR
       78. Similar provisions.
       LC
       79. House bill, but not Senate amendment, authorizes a use 
     of funds for planning, developing, acquiring, expanding, 
     improving, or disseminating model school-based arts education 
     programs.
       SR with amendment to insert the following combined 
     language:
       ``(2) planning, developing, acquiring, expanding, 
     improving, or disseminating information about, model school-
     based arts education programs;''
       80. Senate amendment, but not House bill, authorizes a use 
     of funds for the development of, and dissemination of 
     information about, model arts education programs.
       SR
       81. Similar provisions.
       SR with an amendment to include the following report 
     language:
       For the purpose of this Subpart, the Conferees expect the 
     Department to continue a close consultative relationship with 
     federal agencies or institutions that have expertise in arts 
     education including the National Endowment for the Arts, the 
     Institute of Museum and Library Services, the John F. Kennedy 
     Center for the Performing Arts, VSA Arts, and the National 
     Gallery of Art. The Department may also consult with other 
     arts education professional organizations and organizations 
     representing the arts including the Arts Education 
     Partnership, the National Association for Music Education, 
     and State and local arts agencies.
       82. Similar provisions.
       HR
       83. Similar provisions.

[[Page 25873]]

       LC
       84. House bill, but not Senate amendment, includes a 
     supplement/not supplant provision.
       SR
       85. Senate amendment, but not House bill, contains a 
     special rule that if the amount made available to carry out 
     this subpart for any fiscal year is $15,000,000 or less, then 
     such amount shall only be available to carry out the 
     activities described in paragraphs (7) and (8) of subsection 
     (d).
       HR
       86. House bill lists general agencies and institutions with 
     which activities must be coordinated. Senate amendment lists 
     the National Endowment for the Arts, the Institute of Museum 
     and Library Services, the John F. Kennedy Center for the 
     Performing Arts, VSA Arts, and the National Gallery of Art 
     with which activities must be coordinated.
       SR with an agreement to include the following report 
     language:
       For the purpose of this Subpart, the Conferees expect the 
     Department to continue a close consultative relationship with 
     federal agencies or institutions that have expertise in arts 
     education including the National Endowment for the Arts, the 
     Institute of Museum and Library Services, the John F. Kennedy 
     Center for the Performing Arts, VSA Arts, and the National 
     Gallery of Art. The Department may also consult with other 
     arts education professional organizations and organizations 
     representing the arts including the Arts Education 
     Partnership, the National Association for Music Education, 
     and State and local arts agencies.
       87. House bill and Senate amendment authorize this program 
     at such sums (Senate amendment authorization is listed as 
     part of the LIFE program (FIE)).
       HR/SR (no authorization because moved to FIE).
       88. House bill authorizes ``Gifted and Talented Children'' 
     as Subpart 3 of Part A of Title IV. Senate amendment 
     authorized ``Gifted and Talented Children'' as Part E of 
     Title XVI.
       HR/SR with an agreement to move to Subpart 6 of Title V, 
     Part D (FIE).
       89. Identical short title.
       LC
       90. House bill and Senate amendment contain similar 
     findings.
       HR/SR (no findings)
       91. Similar purpose except that House bill explicitly 
     mentions scientifically based research.
       SR
       92. Senate amendment, but not House bill, triggers a 
     formula grant program once the appropriation equals or 
     exceeds $50 million.
       SR
       93. Similar provision.
       LC
       94. Virtually identical provisions.
       LC
       95. Virtually identical provisions.
       LC
       96. Similar provisions except that House bill, but not 
     Senate amendment, requires that research be scientifically 
     based.
       SR with an amendment to add special rule and additional use 
     of funds (specifically a special rule to provide that all 
     funding above FY 2001 level be awarded to SEAs and/or LEAs on 
     a competitive basis for use of funds under House section 
     4164(b) and add non-duplicative use of funds (2) and (4) from 
     Senate section 11422(b) to House section 4164(b)).
       ``Special rule.--For fiscal year 2002 and succeeding fiscal 
     years, the Secretary shall use funds above the fiscal 2001 
     appropriation to award grants, on a competitive basis, to 
     State educational agencies and/or local educational agencies 
     to implement activities described under [House] section 
     4164(b).''
       Add non-duplicative use funds of from Senate section 
     11422(b) to House section 4164(b):
       ``(6) Making materials and services available through State 
     regional educational service centers, institutions of higher 
     education, or other entities.
       ``(7) Providing funds for challenging, high-level course 
     work, disseminated through technologies (including distance 
     learning), for individual students or groups of students in 
     schools and local educational agencies that do not have the 
     resources otherwise to provide such course work.''
       97. Similar provisions.
       HR
       98. Virtually identical provisions except that House bill 
     specifically references scientifically based research.
       SR
       99. Virtually identical provisions.
       LC
       100. Similar provisions.
       LC
       101. Virtually identical provisions.
       LC
       102. Similar provisions.
       LC
       103. Senate amendment, but not House bill, provides that 
     amounts appropriated above FY 01 level be dedicated toward 
     competitive grant awards for activities described in Section 
     11422 (formula grant program).
       SR (see note 96).
       104. Senate amendment, but not House bill, provides for a 
     formula grant program.
       SR
       105. House bill defines terms in general provisions.
       SR
       106. House bill authorizes such sums as may be necessary to 
     carry out this Subpart for each of fiscal years 2002 through 
     2006. Senate amendment authorizes $170 million for each of 
     fiscal years 2002 through 2008.
       HR/SR (no authorization because moved to FIE).
       107. House bill, but not Senate amendment, assures 
     continuation of awards granted prior to date of enactment.
       SR

                   Title IV, Part B--Charter Schools

                         (New Title V, Part B)

       1. Under the House bill, the Public Charter Schools program 
     is a ``part''. Under the Senate amendment, it is a 
     ``chapter''.
       SR
       2. The House bill, but not the Senate amendment, has a 
     Findings subsection.
       HR
       3. The House bill and Senate amendment Purpose sections are 
     identical except that the House version adds the term 
     ``academic'' after ``student'' in purpose (2).
       LC
       4. The House bill and Senate amendment Program Authorized 
     sections are identical except that the Senate amendment 
     version adds ``(other than funds reserved to carry out 
     section 5115 (b))'' after ``section 5121'' in (e)(1).
       HR
       5. The House bill uses the term ``academic achievement'' 
     after ``student'' in (b)(3)(A)(i), while the Senate amendment 
     uses the term ``performance''.
       LC
       6. The House bill, but not the Senate amendment, includes 
     an assurance under (d) Contents of Applications (3) 
     pertaining to precharter planning grants and subgrants.
       (See note 18)
       SR
       7. The House bill and Senate amendment have identical (a) 
     Selection Criteria for State Educational Agencies except that 
     the House bill adds the term ``academic'' after ``state'' and 
     ``student'' in (a)(1) and uses the terms ``academic 
     achievement'' after ``student'' in (a)(7). In (a)(7), the 
     Senate amendment uses the term ``performance'' instead of 
     ``academic achievement.''
       LC
       8. The House bill, but not the Senate amendment, explicitly 
     prohibits a local educational agency from deducting funds for 
     administrative fees or expenses from a subgrant awarded to an 
     eligible applicant under (4) Administrative Expenses.
       SR with an amendment to insert after ``an eligible 
     applicant'' in (4) ``unless such applicant enters voluntarily 
     into a mutually agreed upon arrangement for administrative 
     services with the relevant LEA. Absent such approval the LEA 
     shall distribute all such grant funds to the grantee without 
     delay.''
       9. The House bill and Senate amendment have identical (6) 
     Dissemination language except that the House bill uses the 
     term ``academic'' after ``student'' in (A)(i) and the terms 
     ``academic achievement'' after ``student'' in (B)(ii). In 
     (B)(ii), the Senate amendment uses the term ``performance'' 
     instead of ``achievement''.
       LC
       10. The Senate amendment, but not the House bill, adds 
     ``(other than funds reserved to carry out section (b))'' 
     after ``chapter'' in (a).
       SR with amendment to move section 5115(b)(6) to (a) of the 
     National Activities section.
       11. The Senate amendment, but not the House bill, includes 
     outdated language pertaining to a 4-year national study in 
     (a)(1)(B)(2).
       SR
       12. The House bill adds the term ``academic'' after 
     ``student'' in (a)(2). The Senate amendment does not include 
     the term ``academic'' in (a)(3).
       LC
       13. The Carper-Gregg amendment to the Senate amendment 
     cites the Per-Pupil Facilities Aid Programs subsection as the 
     ``Charter Schools Equity Act'' and states that the purposes 
     of this subsection are:
       (A) to help eliminate the barriers that prevent charter 
     school developers from accessing the credit markets, by 
     encouraging lending institutions to lend funds to charter 
     schools on terms more similar to the terms typically extended 
     to traditional public schools; and
       (B) to encourage the States to provide support to charter 
     schools for facilities financing in an amount more nearly 
     commensurate to the amount the States have typically provided 
     for traditional public schools.
       However, this language does not amend the Elementary and 
     Secondary Education Act.
       HR/SR with an amendment to move (B) to General Purpose 
     section.
       14. The Senate amendment, but not the House bill, includes 
     (b) Per-Pupil Facilities Aid Programs under Section 5115, 
     National Activities.
       HR with an amendment to add ``includes or'' in section 
     5115(b)(3)(B)(iii).
       15. The House bill, but not the Senate amendment, deletes 
     the following outdated language: ``not later than 6 months 
     after the date of the enactment of the Charter School 
     Expansion Act of 1998'' in (a).
       SR

[[Page 25874]]


       16. The House bill, but not the Senate amendment, requires 
     the transfer of records to a private school upon the transfer 
     of the student from a charter or public school to the private 
     school (with the written consent of a parent of the student), 
     in accordance with applicable State law.
       HR (with understanding--discussion about record transfer in 
     Safe and Drug Free).
       17. The House bill defines a charter school as a public 
     school ``that admits students on the basis of a lottery or in 
     another non-discriminatory manner consistent with State law, 
     if more students apply for admission than can be 
     accommodated'' in (1)(H). The Senate amendment does not 
     include the phrase ``or in another non-discriminatory manner 
     consistent with State law.''
       HR with Report Language:
       ``The Conferees encourage the Secretary to help ensure that 
     public charter school admissions policies are consistent with 
     federal and state law, while preserving the particular 
     mission of a charter school to the maximum extent possible.''
       18. The House bill and Senate amendment have different 
     definitions of an ``eligible applicant'' in (3).
       SR
       19. The House bill authorizes the Public Charter Schools 
     program at $225 million for FY 2002 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years. The 
     Senate amendment authorizes the Public Charter Schools 
     program at $400 million, $200 million of which is reserved 
     specifically for this chapter (other than the Per-Pupil 
     Facilities Aid Programs). Any remainder above the $200 
     million is reserved to carry out the Per-Pupil Facilities Aid 
     Programs. The Senate amendment authorizes the Public Charters 
     Schools program at such sums as may be necessary for each of 
     the 6 succeeding fiscal years.
       HR with an amendment to strike $400 million and insert $300 
     million (first $200 million going to charters and next $100 
     million going to per pupil) with increases thereafter being 
     split 50/50.
       Report Language:
       Charter schools are public schools, yet lack the bonding 
     and taxing authority traditionally available to school 
     districts to finance their facilities. As a result, charter 
     schools are forced to use operating revenues that are 
     intended to be spent in the classroom to pay rent or to make 
     debt payments for facilities. States have the primary 
     obligation to address this inequity. But, to stimulate state 
     initiatives, this legislation authorizes a limited-term 
     federal role in encouraging states to establish or expand per 
     pupil facilities aid programs.
       Conferees support significant funding increases for the 
     charter school program in order to free up resources, as 
     quickly as possible, for the per-pupil financing program, a 
     program that assists charter schools in meeting their 
     operating needs, so that charter school resources may be 
     better spent on academic activities.
       20. The House bill, but not the Senate amendment, includes 
     a Continuation of Awards section.
       SR
       21. The Senate amendment, but not the House bill, includes 
     Chapter II--Credit Enhancement Initiatives to Promote Charter 
     School Facility Acquisition, Construction, and Renovation.
       HR with an amendment to (1) strike all and insert Charter 
     School Facility Financing Demonstration Project language from 
     last year's Omnibus Appropriations; (2) authorize the 
     Demonstration Project for $150 million in FY 02 and such sums 
     in FY 03; and (3) include the following report language:
       Report Language:
       As stated in report language last year (P.L. 106-554), the 
     Credit Enhancement Program for charter school facilities 
     falls under the administrative responsibility of the 
     Secretary of Education.

                       Title IV, Part C--Magnets

                         (New Title V, Part C)

       1. The Senate amendment, but not the House bill, 
     consolidates the Findings and Statement of Purpose into one 
     section.
       HR
       2. The House bill and Senate amendment each have 4 findings 
     but only the first finding is the same in both, except that 
     the Senate amendment adds ``Nation's'' in front of 
     ``schools.''
       HR with an amendment to: take Senate (1); take House (2), 
     (3), and (4)(A); insert as new language:
       ``(B) to ensure that all students have equitable access to 
     a quality education that will prepare them to function well 
     in a technologically oriented and a highly competitive 
     economy comprised of people from many different racial and 
     ethnic backgrounds.
       ``(C) to continue to desegregate and diversify schools by 
     supporting magnet schools, recognizing that such segregation 
     exists between minority and nonminority students as well as 
     among students of different minority groups. Desegregation 
     efforts through magnet programs are a significant part of our 
     Nation's effort to achieve voluntary desegregation in schools 
     and help to ensure equal educational opportunities for all 
     students.''
       3. Under Statement of Purpose, the Senate amendment, but 
     not the House bill, includes ``which shall assist in the 
     efforts of the United States to achieve voluntary 
     desegregation in public schools'' at the end of (1).
       HR
       4. The Senate amendment adds the term ``local'' to 
     ``content standards'' and ``student performance standards'' 
     in (2), while the House bill adds the term ``academic'' after 
     ``State'' and ``academic achievement'' after ``student''.
       LC
       5. The House bill, but not the Senate amendment, adds 
     ``that promote diversity and increase choices in public 
     elementary and secondary schools and educational programs'' 
     at the end of (3).
       SR
       6. The Senate amendment includes the phrase ``technological 
     and career'' before ``skills'' in (4). The House bill uses 
     the word ``technical'' instead.
       HR with an amendment to strike ``career'' and insert 
     ``professional''.
       7. The Senate amendment, but not the House bill, includes 
     two additional purpose statements. See (5) and (6).
       HR
       8. Under the Elibibility section in (1), the Senate 
     amendment, but not the House bill, adds the word ``schools'' 
     following ``elementary''.
       SR
       9. Under the Information and Assurances part in (1)(B), the 
     House bill, but not the Senate amendment, adds the term 
     ``academic'' after ``student.''
       LC
       10. In (1)(D) the House bill reads: ``how funds under this 
     part will be used to improve student academic performance for 
     all students attending the magnet schools.'' The Senate 
     amendment reads: ``how funds under this subpart will be used 
     to implement services and activities that are consistent with 
     other programs under this Act, and other Acts, as 
     appropriate, in accordance with the provisions of section 
     5506;.''
       HR/SR with an amendment to combine House and Senate (D), 
     and to strike ``the magnet schools'' and insert ``magnet 
     school programs''.
       LC--``section 5506''; New citation.
       11. In (2)(B), the House bill reads: ``employ fully 
     qualified teachers in the courses of instruction assisted 
     under this part;.'' The Senate amendment reads: ``employ 
     State certified or licensed teachers in the courses of 
     instruction assisted under this subpart to teach or supervise 
     others who are teaching the subject matter of the courses of 
     instruction;.''
       SR
       12. In (2)(E), the Senate amendment, but not the House 
     bill, includes ``consistent with desegregation guidelines and 
     the capacity of the project to accommodate these students'' 
     following the word ``project''.
       HR
       13. The Senate amendment, but not the House bill, includes 
     (c) SPECIAL RULE.
       HR
       14. Under the Priority section, the Senate amendment, but 
     not the House bill, includes two additional priorities. See 
     (4) and (5).
       SR
       15. Under the Use of Funds section in (a)(3), the House 
     bill uses the phrase ``fully qualified.'' The Senate 
     amendment uses the phrase ``certified or licensed by the 
     State.''
       SR
       16. Under the Use of Funds section in (a)(5), the House 
     bill states ``for activities, which may include professional 
     development, that will build the recipient's capacity to 
     operate magnet school programs once the grant period has 
     ended.'' The Senate amendment states ``to include 
     professional development, which professional development 
     shall build the agency's or consortium's capacity to operate 
     the magnet school once Federal assistance has terminated;.''
       SR
       17. The Senate amendment, but not the House bill, includes 
     two additional uses of funds. See (6) and (7).
       HR
       18. Under (b) Special Rule, the House bill, but not the 
     Senate amendment, adds the phrase ``to improving the 
     students'' academic performance based on the State's 
     challenging academic content standards and student academic 
     achievement standards or'' after the word ``related'' and 
     before the word ``to.''
       SR
       19. The House bill also includes the phrase ``vocational 
     and technical skills,'' while the Senate amendment includes 
     the phrase ``vocational, technological and career skills.''
       HR with an amendment to strike ``career'' and insert 
     ``professional''.
       20. Under the Prohibitions section, the House bill includes 
     the headline (a) Transportation and an additional 
     prohibition--
       ``(b) Planning.--A local educational agency shall not 
     expend funds under this part after the third year that such 
     agency receives funds under this part for such project.''
       The Senate amendment does not include the headline or the 
     additional prohibition.
       HR
       21. Under (b) Limitation on Planning Funds, the Senate 
     amendment includes the phrase ``(professional development 
     shall not be considered as planning for purposes of this 
     subsection)'' and limits planning funds to ``25

[[Page 25875]]

     percent of such funds for the second year, and 15 percent of 
     such funds for the third such year.'' The House bill does not 
     include the above phrase and limits planning funds to ``15 
     percent of such funds for the second such year, and 10 
     percent of such funds for the third such year.''
       HR with an amendment to strike ``25'' and insert ``15''.
       22. Under (d) Timing, the House bill provides for the 
     Secretary to make awards no later than July 1 of the 
     applicable fiscal year, while the Senate amendment provides 
     that the awards are to be made not later than June 1 of the 
     applicable fiscal year.
       SR
       23. The Senate amendment includes SEC. 5140. INNOVATIVE 
     PROGRAMS. The House bill repeals this program.
       SR
       24. Under the Evaluations section in (a) Reservation, the 
     House bill refers to ``section 4312(a)'' where as the Senate 
     refers to ``section 5142(a).'' Also, the House bill uses the 
     phrase ``technical assistance, and dissemination projects 
     with respect to magnet school projects and programs assisted 
     under this part.'' Following the word ``evaluations,''. The 
     Senate amendment uses the phrase ``of projects assisted under 
     this subpart and to provide technical assistance for grant 
     recipients under this subpart.''
       SR
       25. Under (b) Contents (3), the Senate amendment, but not 
     the House bill, adds the word ``schools'' after 
     ``elementary.'' The Senate amendment, but not the House bill, 
     includes an additional provision in (b) Contents. See (5).
       SR
       26. The Senate amendment, but not the House bill, includes 
     (c) Dissemination.
       HR
       27. Under the Authorization of Appropriations; Reservation 
     section, the House bill authorizes $125 million for fiscal 
     year 2002 and ``such sums as may be necessary for each of 4 
     succeeding fiscal years.'' The Senate amendment authorizes 
     $125 million for fiscal year 2002 and ``such sums as may be 
     necessary for each of the 6 succeeding fiscal years.''
       LC
       28. House bill1 transfers and continues current law.
       HR/SR with an agreement to move to Subpart 20 of Title V, 
     Part D (FIE).
       29. Senate amendment rewrites the Women's Educational 
     Equity Act.
       HR/SR with an agreement to move to Subpart 20 of Title V, 
     Part D (FIE).
       30. House bill authorizes $3 million for FY 02 and such 
     sums as may be necessary for each of the four succeeding 
     fiscal years.
       HR/SR (no authorization because moved to FIE).
       31. Senate amendment authorizes such sums as may be 
     necessary for FY 02 and for each of the 6 succeeding fiscal 
     years.
       HR/SR (no authorization because moved to FIE).
       32. The House bill, but not the Senate amendment, includes 
     SEC. 423. CONTINUATION OF AWARDS.
       SR

    Title V, Part A, subparts 1, 3, 4, 5--Safe and Drug Free Schools

                         (New Title IV, Part A)

       1. (Title) House bill includes Safe and Drug-Free and 21st 
     Century Community Learning Centers as separate subparts in 
     the same act with separate funding authorizations. Senate 
     amendment maintains these two programs as separate acts.
       HR with an amendment to treat Safe and Drug-Free and 21st 
     Century as separate parts.
       2. (Findings) House bill contains no findings.
       SR
       3. (Purpose) House bill and Senate amendment contain 
     similar provisions.
       House bill includes before and after school activities as a 
     purpose of the Act.
       Senate amendment specifies types of programs (i.e.: 
     alternative education, rehabilitation).
       Senate amendment also references development and 
     implementation of policy at local level.
       HR with an amendment to insert ``and communities'' after 
     ``involve parents,'' in the lead-in;
       Insert ``to foster a safe and drug-free learning 
     environment which supports academic achievement,'' after 
     ``efforts and resources'' in the lead-in.
       Strike everything after ``early intervention'' in (1).
       Strike everything after ``prevention including'' in (2) and 
     insert ``community-wide drug and violence prevention planning 
     and organization activities.''
       4. (State Grant Funds) House bill authorizes $475 million 
     for Safe and Drug-Free State Grants for FY 2002 and such sums 
     for 4 following years.
       Senate amendment authorizes $700 million for Safe and Drug-
     Free State Grants for FY 2002 and such sums for 6 following 
     years.
       HR with an amendment to authorize appropriations at $650 
     million in FY 2002 and such sums in each of the 5 succeeding 
     fiscal years.
       5. (National Programs Funds) House bill authorizes $60 
     million for national programs for Safe and Drug-Free and 21st 
     Century Community Learning Centers programs combined for FY 
     2002 and such sums for 4 following years
       Senate amendment authorizes $150 million for Safe and Drug-
     Free national programs for FY 2002 and such sums for 6 
     following years.
       HR/SR with an amendment to authorize appropriations of such 
     sums in FY 2002 and each of the 5 succeeding fiscal years.
       6. (Coordinator Funds) Senate amendment authorizes $75 
     million for a national coordinator initiative for FY 2002 and 
     such sums for 6 following years. House bill has no provision.
       SR
       7. (Domestic Violence Funds) Senate amendment authorizes $5 
     million for Domestic Violence Witness Program for FY 2002-
     2004. House bill has no provision.
       SR
       8. (Suicide Prevention Funds) Senate amendment authorizes 
     $25 million for Suicide Prevention Program for FY 2002 and 
     such sums for 6 following years. House bill has no provision.
       SR
       9. (Guam, etc. Set-aside) House bill provides for the 
     greater of 1% or $4.75 million for grants to Guam, American 
     Samoa, Virgin Islands, and Northern Marianna Islands.
       Senate amendment provides 1% for grants to the same 
     jurisdictions.
       SR
       10. (Indian Set Aside) House bill provides for the greater 
     of 1% or $4.75 million for grants for Indian Youth.
       Senate amendment provides 1% for such grants.
       SR
       11. (Impact Evaluation Funds) Senate amendment allows the 
     Secretary to reserve up to $2 million for a national impact 
     evaluation.
       HR with an amendment to move the National Impact Evaluation 
     authorization and appropriation to National Activities.
       12. (Native Hawaiians Set-aside) Similar provisions.
       LC
       13. (Safe Schools/Healthy Students Funds) House bill 
     provides for continued funding of Safe Schools/Healthy 
     Students.
       SR with an amendment to take reservation from the national 
     activities funds.
       14. (Fed to State Formula) House bill and Senate amendment 
     contain similar provisions.
       HR to Senate formula and include a hold harmless to FY2001 
     amount
       15. (Reallotment) House bill provides for an annual 
     reallotment.
       Senate amendment provides for reallotment every two years.
       HR/SR to retain both.
       16. (Definitions) House bill defines native Hawaiian.
       Senate amendment defines state and local educational 
     agency.
       LC throughout and eliminate if identical to general 
     definition.
       17. (Limitation) House bill contains no similar provision.
       HR
       18. (Gov Programs) Similar set-aside for governor's 
     programs.
       House bill specifies that awards are to be made based on 
     quality and how well aligned with principles of effectiveness 
     and includes LEAs as participants.
       Senate amendment lists specific elements to be described in 
     a state plan:
       --how programs will be coordinated so as not to be 
     duplicative of state and local efforts;
       --how populations not normally served will be served;
       --how governor will monitor the performance of and provide 
     technical outreach to recipients;
       --how participation of CBOs will be maximized;
       --how funds will support community-wide drug and violence 
     prevention activities;
       --how parental input will be sought.
       SR with an amendment to strike House language and insert 
     the following:

     ``SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE SCHOOLS.

       ``(a) State Reservation for the Governor.--
       ``(1) In general.--The chief executive officer of a State 
     may reserve not more than 20 percent of the total amount 
     allocated to a State under section 5111(b) for each fiscal 
     year to award competitive grants and contracts to local 
     educational agencies, community-based organizations 
     (including community anti-drug coalitions), other public 
     entities and private organizations, and consortia thereof. 
     Such grants and contracts shall be used to carry out the 
     comprehensive state plan through programs or activities that 
     complement and support activities of local educational 
     agencies described in section 5115. Such officer shall award 
     grants based on--
       ``(A) the quality of the activity or program proposed; and
       ``(B) how the program or activity meets the principles of 
     effectiveness described in section 5114(a)''
       19. (Gov Programs) House bill gives special consideration 
     to programs providing and incorporating mental health 
     services.
       Senate amendment gives priority to those not normally 
     served and to those needing special services.

[[Page 25876]]

       HR with amendment to strike and replace with the following 
     language:
       ``(2) Priority.--In making such grants and contracts, a 
     chief executive officer shall give priority to illegal drug 
     use and violence prevention programs and activities for--
       ``(A) children and youth who are not normally served by 
     State or local educational agencies; or
       ``(B) populations that need special services or additional 
     resources (such as youth in juvenile detention facilities, 
     runaway or homeless children and youth, pregnant and 
     parenting teenagers, and school dropouts).
       ``(3) Special Consideration.--In awarding funds under 
     subparagraph (A), a chief executive officer shall give 
     special consideration to grantees that pursue a comprehensive 
     approach to drug and violence prevention that includes 
     providing and incorporating mental health services related to 
     drug and violence prevention in their program.
       ``(4) Peer Review.--Grants or contracts awarded under this 
     subpart shall be subject to a peer review process.''
       20. (Gov Programs) Senate bill requires peer review of 
     grants awarded by chief executive officers.
       HR with an amendment to strike Senate language.
       21. (Gov Admin) House bill allows 1% for administration 
     expenses.
       Senate amendment allows 5% for administration expenses, and 
     authorizes the chief executive officer to award grants to 
     state, county, or local law enforcement agencies to carry out 
     drug and violence prevention activities.
       SR with an amendment to set administrative costs at not 
     more than 3 percent.
       22. (Gov Applic) House bill contains no similar provisions.
       SR
       23. (Gov Activities) House bill contains no similar 
     provisions.
       HR with amendment to strike language and insert:
       ``Grants and contracts under section [gov reservation] 
     shall be used to implement drug and violence prevention 
     activities, such as:
       --activities that complement and support activities of 
     local education agencies under section [LEA uses of funds], 
     including developing and implementing activities to prevent 
     and reduce violence associated with prejudice and 
     intolerance;
       --Dissemination of information about drug and violence 
     prevention.
       --Development and implementation of community-wide drug and 
     violence prevention planning and organization.''
       24. (SEA Funds) House bill provides 95% of an amount 
     reserved for state and local programs (80%) to be sent to the 
     local level.
       Senate amendment provides for 91% of the amount reserved 
     for state and local programs (80%) to be sent the local 
     level.
       HR with an amendment to strike language and insert the 
     following:
       ``(1) In general.--A state educational agency shall 
     distribute not less than 93 percent of the amount available 
     under section 
     [  ] to its local educational agencies.''
       Report Language
       ``The Conferees wish to clarify that at all times a State 
     educational agency must distribute at least 93 percent of the 
     funds it receives to the local educational agencies.''
       25. (SEA Funds) House bill allows 4% for state activities.
       Senate amendment allows 5% for state activities.
       SR with an amendment to strike the language and insert the 
     following:
       ``(2) State activities.--A state educational agency shall 
     use not more than 5 percent of the funds made available under 
     section [  ] for activities described in subsection (c).''
       26. (SEA Funds) House bill allows 1% for administration 
     expenses.
       Senate amendment allows 5% for administration expenses and 
     uniform reporting system.
       SR with an amendment to strike the language and insert the 
     following:
       ``(3) State administration.--
       ``(A) In general.--A state educational agency shall use not 
     more than 3 percent of the funds made available under section 
     [  ] for state administration, including implementation of 
     the Uniform Management Information and Reporting System.
       ``(b) Special Rule.--For fiscal year 2002, a state 
     educational agency may use an additional 1 percent of the 
     amount made available under section [  ] for implementation 
     of the Uniform Management Information and Reporting System.''
       27. (State Activ) Similar provisions, but House bill 
     authorizes generally, whereas Senate amendment specifies 
     types of activities and services.
       SR with an amendment to strike language and insert the 
     following:
       ``(1) In general.--A State shall use a portion of the funds 
     described in subsection (b)(2), either directly, or through 
     grants and contracts, to plan, develop, and implement 
     capacity building, technical assistance and training, 
     evaluation, program improvement services, and coordination 
     activities for local educational agencies, community-based 
     organizations, and other public and private entities.
       ``(2) Activities.--Such uses shall meet the principles of 
     effectiveness described in section 5115(a), shall complement 
     and support local uses of funds under section 5115(b), and 
     otherwise shall further the purposes of this part, and may 
     include, among others,
       ``(A) identification, development, evaluation, and 
     dissemination of drug and violence prevention strategies, 
     programs, activities, and other information;
       ``(B) training, technical assistance, and demonstration 
     projects to address violence associated with prejudice and 
     intolerance;
       ``(C) and financial assistance to enhance drug and violence 
     prevention resources available in areas that serve large 
     numbers of low-income children, are sparsely populated, or 
     have other special needs.''
       28. (Data Collection) Senate amendment contains no similar 
     provision.
       HR with an amendment to strike the Senate language and 
     insert the following language:
       ``(2) Uniform management information and reporting 
     system.--
       ``(A)(1) Information and statistics.--In carrying out its 
     responsibilities under [state admin], a state shall implement 
     a uniform management information and reporting system.
       ``(2) A State may use funds described in subsection (b)(3), 
     either directly or through grants and contracts, to establish 
     and implement a uniform management information and reporting 
     system, to include information on--
       ``(i) truancy rates;
       ``(ii) the frequency, seriousness, and incidence of 
     violence and drug related offenses resulting in suspensions 
     and expulsion in elementary and secondary schools in States;
       ``(iii) the types of curricula, programs, and services 
     provided by the chief executive officer, state educational 
     agency, local educational agencies, and other recipients of 
     funds under this part; and
       ``(iv) the incidence and prevalence, age of onset, 
     perception of health risk, and perception of social 
     disapproval of drug use and violence by youth in schools and 
     communities.''
       ``(B) Compilation of statistics.--The statistics shall be 
     compiled in accordance with definitions as determined in the 
     State criminal code, but shall not identify victims of crimes 
     or persons accused of crimes. The collected data shall 
     include, incident reports by school officials, anonymous 
     student surveys, and anonymous teacher surveys.
       ``(C) Reporting.--Such data and statistics shall be 
     reported to the public and the statistics referenced in 
     (A)(2)(i) and (ii) shall be reported on a school-by-school 
     basis.
       ``(D) Limitation.--Nothing in this subsection shall be 
     construed to authorize the Secretary to require particular 
     policies, procedures, or practices with respect to crimes on 
     school property or school security.''
       29. (Persistently Dangerous) Senate amendment contains no 
     similar provision.
       HR with an amendment to insert the following language in 
     General Provisions--


                     ``Unsafe School Choice Policy

       ``(a) Policy.--Each State receiving funds under this Act 
     shall establish and implement a statewide policy requiring 
     that a student attending a persistently dangerous public 
     elementary and secondary school, as determined by the State 
     in consultation with a representative sample of local 
     educational agencies, or who becomes a victim of a violent 
     criminal offense, as determined by State law, while in or on 
     the grounds of a public elementary or secondary school that 
     the student attends, be allowed to attend a safe public 
     elementary or secondary school within the local educational 
     agency, including a public charter school.
       ``(b) Certification.--As a condition of receiving funds 
     under this Act, a State shall certify in writing to the 
     Secretary that the State is in compliance with this section.
       30. (State Application) Similar provisions aligned.
       HR with amendment to strike and insert the following 
     language:

     ``SEC. 5113. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 4111 for any fiscal year, a State shall submit to the 
     Secretary, at such time as the Secretary may require, an 
     application that--
       ``(1) contains a comprehensive plan for the use of funds by 
     the State educational agency and the chief executive officer 
     to provide safe, orderly, and drug-free schools and 
     communities through programs and activities that complement 
     and support activities of local educational agencies under 
     section 5115(b), that comply with the principles of 
     effectiveness under section 5115(a), and that otherwise are 
     in accordance with the purposes of this part;
       ``(2) describes how activities funded under this subpart 
     will foster a safe and drug free learning environment that 
     supports academic achievement;
       ``(3) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials and others, including the chief executive 
     officer, the chief State school officer, the head of the 
     State alcohol and drug abuse agency, the heads of the State 
     health and mental health agencies, the head of the State 
     criminal justice planning agency, the head of the State child 
     welfare agency, the head of the

[[Page 25877]]

     State board of education, or their designees, and 
     representatives of parents, students, and community-based 
     organizations;
       ``(4) a description of how the State educational agency 
     will coordinate such agency's activities under this subpart 
     with the chief executive officer's drug and violence 
     prevention programs under this subpart and with the 
     prevention efforts of other State agencies and other 
     programs, as appropriate, in accordance with the provisions 
     in section 8306;
       ``(5) provides an assurance that the State will cooperate 
     with, and assist, the Secretary in conducting data collection 
     as required by section 5116(a);
       ``(6) provides an assurance that the local educational 
     agencies in the State will comply with the provisions of 
     section 8503 pertaining to the participation of private 
     school children and teachers in the programs and activities 
     under this subpart;
       ``(7) provides an assurance that funds under this subpart 
     will be used to increase the level of State, local, and other 
     non-Federal funds that would, in the absence of funds under 
     this subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(8) contains the results of the State's needs assessment 
     for drug and violence prevention programs, which shall be 
     based on the results of on-going State evaluation activities, 
     including data on the incidence and prevalence, age of onset, 
     perception of health risk, and perception of social 
     disapproval of drug use and violence by youth in schools and 
     communities and the prevalence of risk factors, including 
     high or increasing rates of reported cases of child abuse or 
     domestic violence, or protective factors, buffers or assets 
     or other variables identified through scientifically based 
     research in the school and community;
       ``(9)(A) provides a statement of the State's performance 
     measures for drug and violence prevention programs and 
     activities to be funded under this part that shall be focused 
     on student behavior and attitudes and be derived from the 
     needs assessment, be developed in consultation between the 
     State and local officials, and that consist of--
       ``(i) performance indicators for drug and violence 
     prevention programs and activities; and
       ``(ii) levels of performance for each performance 
     indicator;
       ``(B) a description of the procedures the State will use 
     for assessing and publicly reporting progress toward meeting 
     those performance measures; and
       ``(11) provides an assurance that the State application 
     will be available for public review after submission of the 
     application.
       ``(12) a description of the special outreach activities 
     that will be carried out by the State educational agency and 
     the state chief executive officer to maximize the 
     participation of community-based nonprofit organizations of 
     demonstrated effectiveness which provide services in low-
     income communities, such as mentoring programs;
       ``(13) a description of how funds will be used by the state 
     educational agency and the state chief executive officer to 
     support, develop, and implement community-wide comprehensive 
     drug and violence prevention planning, organization, and 
     activities;
       ``(14) a specific description of how input from parents 
     will be sought regarding the use of funds by the state 
     educational agency and the state chief executive officer;
       ``(15) includes any other information the Secretary may 
     require.
       ``(b) [Sea Section of Application].--A State's application 
     under this section shall also contain a comprehensive plan 
     for the use of funds described in [  ] developed by the SEA 
     that
       ``(1) describes how the State educational agency will 
     review applications and allocate funds to local educational 
     agencies, including how the agency will receive input from 
     parents in such review;
       ``(2) describes how the SEA will monitor the implementation 
     of activities under this part, and provide technical 
     assistance under this part for local educational agencies, 
     community-based organizations, other public entities, and 
     private organizations under this subpart;
       ``(c) [Gov Section of Application].--`A State's application 
     under this section shall also contain a comprehensive plan 
     for the use of funds described in [  ] developed by the chief 
     executive officer that includes, with respect to each 
     activity--
       ``(1) a description of how funds reserved under section 
     4114(a) will be used so as not to duplicate the efforts of 
     the State educational agency and local educational agencies 
     with regard to the provision of school-based drug and 
     violence prevention activities and how those funds will be 
     used to serve populations not normally served by the State 
     and local educational agencies, such as school dropouts, 
     suspended and expelled students, and youth in detention 
     centers;
       ``(2) a description of how the chief executive officer will 
     award funds under section 4114(a) and implement a plan for 
     monitoring the performance of, and providing technical 
     assistance to, recipients of such funds.''
       31. (State Application) Senate amendment similar to House 
     bill section 5112(c)(1)
       HR/SR to strike all.
       32. (State Applic Review/Approval) House bill provides that 
     application deemed approved if no response within 90 days.
       Senate amendment provides for peer review.
       SR with an amendment to strike language and insert the 
     following language:
       ``(b) General Approval.--A State educational agency's 
     application submitted pursuant to subsection (a) shall be 
     deemed to be approved by the Secretary unless the Secretary 
     makes a written determination, prior to the expiration of the 
     120 day period beginning on the date that the Secretary 
     receives the application, that the application is in 
     violation of this part.
       ``(c) Disapproval.--The Secretary shall not finally 
     disapprove an application, except after giving the State 
     educational agency notice and opportunity for a hearing.
       ``(d) Special Rule.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     the provisions of this part, the Secretary shall:
       ``(1) implement the procedures described in subsection (c); 
     and
       ``(2) notify the State educational agency of the findings 
     of non-compliance where such notification shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to those 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(e) If the State educational agency does not respond to 
     the notification described in subsection (d)(2) within 45 
     days, such application is not approved.
       ``(f) If the State educational agency does respond to the 
     Secretary's notification described in subsection (d)(2) 
     within 45 days with the requested information necessary to 
     make the application compliant, the Secretary shall approve 
     or disapprove such application not later than 45 days 
     following its resubmission or the end of the 120 period 
     described in subsection (b), whichever is later.''
       33. (State Applic Review/Approval) Senate amendment 
     contains no similar provision.
       HR
       34. (Interim Application) House bill contains no similar 
     provision.
       HR
       35. (LEA Grants) House bill sends 95% of 80% to local 
     educational agencies, with 60% based on title I and 40% based 
     on school enrollment.
       Senate amendment sends 91% of 80% to local educational 
     agencies, under one of two formulae:
       70% school enrollment and 30% state determined/greatest 
     need based on objective data.
       70% greatest need competition based on objective data and 
     30% state determined additional need based on objective data.
       SR
       36. (Local Admin) Senate amendment contains no similar 
     provision.
       SR with an amendment to strike ``1'' and insert ``2'' in 
     its place.
       37. (Reallocation) Similar provisions.
       Senate amendment also has provision reallocating funds if 
     local educational agency declines to apply or if application 
     is disapproved.
       SR with an amendment inserting Senate (e) after House (3).
       38. (Reallocation) Similar provisions.
       LC
       39. (LEA Application) Similar provisions.
       LC
       40. (LEA Applic) Similar provisions, but Senate amendment 
     specifies that consultation be done with an ``advisory 
     council,'' which has a membership similar to the 
     organizations listed in House bill, but also includes 
     representatives of business, the medical professional, and 
     law enforcement.
       Senate amendment outlines specific duties of the advisory 
     council.
       SR with amendment to strike (c)(1)(A) and insert the 
     following language:
       ``(A) In general.--A local educational agency shall develop 
     its application through timely and meaningful consultation 
     with State and local government representatives, 
     representatives of schools to be served (including private 
     schools), teachers and other staff, parents, students, 
     community-based organizations, and others with relevant and 
     demonstrated expertise in drug and violence prevention 
     activities (such as medical, mental health, and law 
     enforcement professionals).''
       41. (Consultation) Senate amendment contains no similar 
     provision.
       SR
       42. (LEA Applic) Similar provisions aligned.
       SR with an amendment to strike House (d)(1) and insert the 
     following language:
       ``(d) Contents of Applications.--
       ``(1) In general.--An application submitted by a local 
     educational agency under this section shall contain--
       ``(A) an assurance that the activities or programs to be 
     funded comply with the principles of effectiveness described 
     in section [ ] and foster a safe and drug-free learning 
     environment that supports academic achievement.
       ``(B) a detailed explanation of the local educational 
     agency's comprehensive plan for drug and violence prevention, 
     which shall include a description of--
       ``(1) how the plan will be coordinated with programs under 
     this Act, other Federal,

[[Page 25878]]

     State, and local programs for drug and violence prevention, 
     in accordance with the provisions of section 8306;
       ``(ii) the local educational agency's performance measures 
     for drug and violence prevention programs and activities, 
     that shall consist of--

       ``(I) performance indicators for drug and violence 
     prevention programs and activities; including

       ``(aa) specific reductions in the prevalence of identified 
     risk factors;
       ``(bb) specific increases in the prevalence of protective 
     factors, buffers, or assets if any have been identified; or

       ``(II) levels of performance for each performance 
     indicator;
       ``(iii) how such agency will assess and publicly report 
     progress toward attaining its performance measures;

       ``(iv) the drug and violence prevention activity or program 
     to be funded, including how the activity or program will meet 
     the principles of effectiveness described in section 5115(a), 
     and the means of evaluating such activity or program; and
       ``(v) how the services will be targeted to schools and 
     students with the greatest need;
       ``(C) a specification for how the results of evaluation of 
     the effectiveness of the prevention program will be used to 
     refine, improve, and strengthen the program;
       ``(D) an assurance that funds under this subpart will be 
     used to increase the level of State, local, and other non-
     Federal funds that would, in the absence of funds under this 
     subpart, be made available for programs and activities 
     authorized under this subpart, and in no case supplant such 
     State, local, and other non-Federal funds;
       ``(E) a description of the mechanisms used to provide 
     effective notice to the community of an intention to submit 
     an application under this title;
       ``(F) an assurance that drug and violence prevention 
     programs supported under this part convey a clear and 
     consistent message that acts of violence and the illegal use 
     of drugs are wrong and harmful;
       ``(G) an assurance that the applicant has, or the schools 
     to be served have, a plan for keeping schools safe and drug-
     free that includes--
       ``(i) appropriate and effective school discipline policies 
     that prohibit disorderly conduct, the illegal possession of 
     weapons, and the illegal use, possession, distribution, and 
     sale of tobacco, alcohol, and other drugs by students;
       ``(ii) security procedures at school and while students are 
     on the way to and from school;
       ``(iii) prevention activities that are designed to create 
     and maintain safe, disciplined, and drug-free environments; 
     and
       ``(iv) a crisis management plan for responding to violent 
     or traumatic incidents on school grounds; and
       ``(v) a code of conduct policy for all students that 
     clearly states responsibilities of students, teachers, and 
     administrators in maintaining a classroom environment that 
     allows a teacher to communicate effectively with all students 
     in the class, allows all students in the class to learn, has 
     consequences that are fair and appropriate, considers the 
     student and the circumstances of the situation, and is 
     enforced accordingly;
       ``(H) an assurance that the application and any waiver 
     request will be available for public review after submission 
     of the application; and
       ``(I) such other assurances, goals, and objectives 
     identified through scientifically based research as the State 
     may reasonably require in accordance with the purpose of this 
     part.''
       43. (LEA Applic Review/Approval) House bill deems local 
     application to be approved if approved if no response by 90 
     days.
       Senate amendment requires peer review and provides factors 
     for determining approval: quality of plan; extent of problem 
     assessment; use of objective data and community input; 
     measurable goals and objectives; use of scientifically based 
     program.
       HR with an amendment to strike in Senate (c)(2)(A) ``and 
     the extent . . . identified needs.''; and insert ``and the 
     extent to which the application meets the Principles of 
     Effectiveness in section (  ).''
       Insert the following language:
       ``(a) Considerations.--
       ``(i) General approval.--A local educational agency's 
     application submitted pursuant to subsection [ ] shall be 
     deemed to be approved by the SEA unless the SEA makes a 
     written determination, prior to the expiration of the 120 day 
     period beginning on the date that the SEA receives the 
     application, that the application is in violation of this 
     part.
       ``(ii) Disapproval.--The SEA shall not finally disapprove 
     an application, except after giving the applicant notice and 
     opportunity for a hearing.
       ``(iii) Special rule.--If the SEA finds that the 
     application is not in compliance, in whole or in part, with 
     the provisions of this part, the SEA shall:
       ``(I) implement the procedures described in subsection (c); 
     and
       ``(II) notify the applicant of the findings of non-
     compliance where such notification shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to those 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(iv) If the applicant does not respond to the 
     notification described in subsection (iii)(II) within 45 
     days, such application is not approved.
       ``(v) If the applicant does respond to the SEA's 
     notification described in subsection (iii)(II) within 45 days 
     with the requested information necessary to make the 
     application compliant, the SEA shall approve or disapprove 
     such application not later than 45 days following its 
     resubmission or the end of the 120 period described in 
     subsection (b), whichever is later.''
       44. (LEA Applic Review/Approval) Similar provisions.
       HR/SR to strike all language
       45. (Principles of Effectiveness) Senate amendment contains 
     no similar provision.
       SR with an amendment to insert:
       ``(D) Be based on an analysis, of data reasonably available 
     at the time, of the prevalence of risk factors, including 
     high or increasing rates of reported cases of child abuse and 
     domestic violence, or protective factors, buffers or assets 
     or other variables identified through scientifically based 
     research in schools and communities in the State.''
       ``(E) Include meaningful and ongoing consultation with and 
     input from parents in the development of the application and 
     administration of the program or activity.''
       Report Language--
       The Conferees wish to clarify that the principles of 
     effectiveness established under section [  ] are intended to 
     increase the efficacy of drug and violence prevention 
     activities in states, communities, and schools, but are not 
     intended to result in the Secretary requiring State or local 
     educational agencies to use specific programs.
       46. (LEA Required Activ) Similar provisions.
       SR with an amendment to strike language in section 5115 
     (b)(1)(A) and replace with ``foster a safe and drug-free 
     learning environment that supports academic achievement;'' 
     and to strike the language in section 5115(b)(1)(C)(i) and 
     replace with ``prevent or reduce violence; the use, 
     possession, and distribution of illegal drugs; and 
     delinquency; and''.
       47. (LEA Uses of Funds) Similar provisions.
       See Senate amendment section 4303, p. 72, Note #85.
       See Senate amendment section 1115B.
       SR with amendment to strike House language in insert the 
     following language:


``Local Allowable Uses of Funds

                           *   *   *   *   *


       (2) ``Authorized activities.--Each local educational 
     agency, or consortium of such agencies, that receives a 
     subgrant under this subpart may use such funds to carry out 
     activities that comply with the principles of effectiveness 
     described in section 5115(a), such as--
       (A) Age appropriate and developmentally based activities 
     that--
       ``(i) address the consequences of violence and the illegal 
     use of drugs, as appropriate.
       ``(ii) promote of a sense of individual responsibility.
       ``(iii) teach students that most people do not illegally 
     use drugs
       ``(iv) teach students to recognize social and peer pressure 
     to use drugs illegally and the skills for resisting illegal 
     drug use
       ``(v) teach students about the dangers of emerging drugs
       ``(vi) engage students in the learning process
       ``(vii) incorporate activities in secondary schools that 
     reinforce prevention activities implemented in elementary 
     schools.
       ``(B) Activities that involve families, community sectors 
     (which may include appropriately trained seniors), and a 
     variety of drug and violence prevention providers in setting 
     clear expectations against violence and illegal use of drugs 
     and appropriate consequences for violence and illegal use of 
     drugs.
       ``(C) drug and violence prevention information 
     dissemination to schools and the community.
       ``(D) professional development and training for and 
     involvement of school personnel, pupil services personnel, 
     parents, and interested community members in prevention, 
     education, early identification and intervention, mentoring, 
     or rehabilitation referral, as related to drug and violence 
     prevention.
       ``(E) Drug and violence prevention activities that may 
     include
       ``(i) Community-wide planning and organization activities 
     to reduce violence and illegal drug use, which may include 
     gang activity prevention
       ``(ii) (1) In General.--To the extent that expenditures do 
     not exceed 20 percent of the amount made available to a local 
     educational agency under this subpart (except that this 
     subparagraph shall not apply to (e)), student and school 
     security activities, including--

       ``(a) acquiring and installing metal detectors, electronic 
     locks, surveillance cameras, or other related equipment and 
     technologies;
       ``(b) reporting criminal offenses on school property;
       ``(c) developing comprehensive school security assessments;

[[Page 25879]]

       ``(d) supporting safe zones of passage activities that 
     ensure that students travel safely to and from school, which 
     may include bicycle and pedestrian safety program; and
       ``(e) hiring and mandatory training, based on scientific 
     research, of school security personnel (including school 
     resource officers) who interact with students in support of 
     youth drug and violence prevention activities under this part 
     that are implemented in the school.

       ``(2) Limitation.--A local educational agency shall only 
     use funds received under this part for activities described 
     in (1)(a) through (d) if funding for such activities is not 
     received from other federal agencies.
       ``(3) Special rule.--Not more than 40 percent of the amount 
     made available to a local educational agency under this part 
     may be spent on activities described in (e).
       ``(4) Definition.--A school resource officer is a career 
     law enforcement officer, with sworn authority, deployed in 
     community oriented policing, and assigned by the employing 
     police department to a local educational agency to work in 
     collaboration with schools and community based organizations 
     to

       ``(a) Educate students in crime prevention and safety;

       ``(b) Develop or expand community justice initiatives for 
     students; and
       ``(c) Train students in conflict resolution, restorative 
     justice, and crime awareness.

     Legislative Counsel to redraft to reflect the agreement that 
     the activities of (a) through (d) cannot exceed 20 percent 
     and (a) through (d) in conjunction with (e) cannot exceed 40 
     percent.
       ``(iii) expanded and improved school-based mental health 
     services related to illegal use of drugs and violence, 
     including early identification of violence and illegal drug 
     use, assessment, and direct or group counseling services 
     provided to students, parents, families, and school personnel 
     by qualified school based mental health services providers
       ``(iv) conflict resolution programs, including peer 
     mediation programs that educate and train peer mediators and 
     a designated faculty supervisor and youth anti-crime and 
     anti-drug councils and activities
       ``(v) alternative education programs or services for 
     violent or drug abusing students that reduce the need for 
     suspension or expulsion or that serve students who have been 
     suspended or expelled from the regular educational settings, 
     including programs or services to assist students to make 
     continued progress toward meeting the state academic 
     achievement content standards and to reenter the regular 
     education setting
       ``(vi) counseling, mentoring, referral services, and other 
     student assistance practices and programs, including 
     assistance provided by qualified school based mental health 
     services providers and the training of teachers by school 
     based mental health services providers in appropriate 
     identification and intervention techniques for students at 
     risk of violent behavior and illegal use of drugs
       ``(vii) programs that encourage students to seek advice 
     from and to confide in a trusted adult regarding concerns 
     about violence and illegal drug use
       ``(viii) drug and violence prevention activities designed 
     to reduce truancy
       ``(ix) age-appropriate, developmentally based violence 
     prevention and education programs that address victimization 
     associated with prejudice and intolerance, and that include 
     activities designed to help students develop a sense of 
     individual responsibility and respect for the rights of 
     others, and to resolve conflicts without violence;
       ``(x) consistent with the fourth amendment to the 
     Constitution of the United States, the testing of a student 
     for illegal drug use or the inspecting of a student's locker 
     for weapons or illegal drugs or drug paraphernalia, including 
     at the request of or with the consent of a parent or legal 
     guardian of the student, if the local educational agency 
     elects to so test or inspect
       ``(xi) emergency intervention services following traumatic 
     crisis events, such as a shooting, major accident, or a drug-
     related incident, that have disrupted the learning 
     environment
       ``(xii) establishing or implementing a system for 
     transferring suspension and expulsion records, consistent 
     with 20 U.S.C. 1232g, by a local educational agency to any 
     public or private elementary or secondary school
       ``(xiii) developing and implementing character education 
     programs as a component of a drug and violence prevention 
     program that take into account the views of parents of the 
     students for whom the program is intended and such students, 
     such as a program described in[character education cite]
       ``(xiv) establishing and maintaining a school safety 
     hotline
       ``(xv) community-service, including community-service 
     performed by expelled students, and service-learning projects
       ``(xvi) conducting a nationwide background check of each 
     local educational agency employee, regardless of when hired, 
     and prospective employees for the purpose of determining 
     whether the employee or prospective employee has been 
     convicted of a crime that bears upon the employee's fitness--

       ``(1) to have responsibility for the safety or well-being 
     of children
       ``(2) to serve in the particular capacity in which the 
     employee or prospective employee is or will be employed, or
       ``(3) to otherwise be employed at all by the local 
     educational agency

       ``(xvii) programs to train school personnel to identify 
     warning signs of youth suicide and to create an action plan 
     to help youth at risk of suicide
       ``(xviii) programs that respond to the needs of students 
     who are faced with domestic violence or child abuse
       ``(F) the evaluation of any of the activities authorized 
     under this subsection and the collection of objective data 
     used to assess program needs, program implementation, or 
     program success in achieving program goals and objectives''
       Report Language:
       The Conferees support the ability of local educational 
     agencies to address the needs of students who are victims of 
     varying situations involving violence and drug abuse (such as 
     familial drug abuse and dating violence) and to promote safe 
     environments for students.
       48. (School Uniforms) House bill contains no similar 
     provision.
       HR
       49. (Impact Eval) Senate amendment provides for the 
     Secretary in consultation with the National Advisory 
     Committee to conduct an independent biennial report with 
     specific required elements, including data collected by the 
     NCES under (a)(2)
       House bill for NCES to collect data and the Secretary to 
     report on certain data.
       HR with an amendment to insert ``and drug use'' after 
     ``combat violence'' in (1); insert ``comply with the 
     Principles of Effectiveness'' after ``agency programs'' in 
     (A); strike (A)(i) through (v) and strike (B); in (C) insert 
     ``illegal'' before ``presence'' and strike ``firearms'' and 
     insert ``weapons''; and in (D) strike ``voluntary''.
       50. (State Report) Similar provisions, but House bill 
     requires a state report every 3 years and Senate amendment 
     requires a state report every 2 years.
       HR
       51. (LEA Report) Similar provisions, but Senate amendment 
     contains a January 1 deadline.
       HR
       52. (Native Hawaiians) House bill contains no similar 
     provision.
       HR
       53. (National Programs) House bill limits evaluation to 
     effectiveness.
       Senate amendment authorizes prevention programs.
       HR with an amendment to strike ``at all educational levels 
     from preschool through the post-secondary level.''
       54. (Coordination) Senate amendment contains a similar 
     provision in (a).
       HR
       55. (National Activities) House bill addresses 
     demonstration and evaluation.
       Senate amendment addresses information dissemination, child 
     abuse prevention, program evaluation, direct services, and 
     other activities.
       HR with an amendment to strike all and insert--

     ``SECTION 5131. NATIONAL ACTIVITIES.

                           *   *   *   *   *


       ``(3) Programs--Activities described in paragraph (1) may 
     include--
       ``(A) the development and demonstration of innovative 
     strategies for the training of school personnel, parents, and 
     members of the community for drug and violence prevention 
     activities, based on state and local needs;
       ``(B) the development, demonstration, scientifically based 
     evaluation, and dissemination of innovative and high quality 
     drug and violence prevention programs and activities, based 
     on State and local needs, which may include--;
       ``(i) alternative education models, either established 
     within a school or separate and apart from an existing 
     school, that are designed to promote drug and violence 
     prevention, reduce disruptive behavior, to reduce the need 
     for repeat suspensions and expulsions, to enable students to 
     meet challenging State academic standards, and to enable 
     students to return to the regular classroom as soon as 
     possible;
       ``(ii) community service and service-learning projects, 
     designed to rebuild safe and healthy neighborhoods and 
     increase students' sense of individual responsibility;
       ``(iii) video-based projects developed by noncommercial 
     telecommunications entities that provide young people with 
     models for conflict resolution and responsible 
     decisionmaking; and
       (iv) child abuse education and prevention programs for 
     elementary and secondary students
       ``(C) the provision of information on drug abuse education 
     and prevention to the Secretary of Health and Human Services 
     for dissemination;
       ``(D) the provision of information on violence prevention 
     and education and school safety to the Department of Justice 
     for dissemination
       ``(E) technical assistance to chief executive officers, 
     State agencies, local educational agencies, and other 
     recipients of funding under this part to build capacity to 
     develop and implement high-quality, effective drug and 
     violence prevention programs consistent with the principles 
     of effectiveness.
       ``(F) assistance to school systems afflicted with 
     especially severe drug and violence

[[Page 25880]]

     problems, including for the hiring of drug prevention and 
     school safety coordinators, or to support crisis situations 
     and appropriate response efforts;
       ``(G) the development of education and training programs, 
     curricula, instructional materials, and professional training 
     and development for preventing and reducing the incidence of 
     crimes and conflicts motivated by hate in localities most 
     directly affected by hate crimes;
       ``(H) activities in communities designated as empowerment 
     zones or enterprise communities that will connect schools to 
     community-wide efforts to reduce drug and violence problems; 
     and
       ``(I) other activities in accordance with the purposes of 
     this part, based on State and local needs.
       Report Language.--``The Conferees understand that children 
     are especially susceptible to the terrible emotional and 
     mental anguish that terrorist attacks can cause. The 
     Conferees intend that crisis situations may include terrorist 
     attacks and that the Secretary may use funds to support 
     school based mental health services for children and school 
     personnel to respond to the mental health needs resulting 
     from a terrorist attack.''
       56. (Peer Review) Similar provisions.
       LC
       57. (Gun Free Schools) Similar provisions, excepted as 
     noted.
       Senate amendment only allows modification of 1 year 
     expulsion rule when modification is in writing.
       Senate amendment denies funds to LEAs without policy, 
     whereas House bill affirms requirement.
       HR with an amendment to strike ``weapon'' and insert 
     ``firearm'' throughout and to strike Senate (Sec. 4202 (b) 
     and insert current law 14602(b).
       58. (Gun Free Schools) Similar provisions.
       LC
       59. (Gun Free Schools) Similar provisions.
       LC--use firearm
       60. (Gun Free Schools) Senate amendment provides for an 
     annual report from the state to the Secretary.
       HR
       61. (Gun Free Schools) Senate amendment provides exception 
     for weapon lawfully stored in vehicle or approved by LEA.
       HR
       62. (Gun Free Schools) Similar provisions.
       LC
       63. (Gun Free Schools) Similar provisions.
       See Senate amendment sec. 17(d) for similar home school 
     provision.
       SR
       64. (Definitions) Similar provisions.
       See side-by-side HR/SR with an amendment:
       Strike House section 5151(1);
       Strike Senate section 4131(1);
       SR to House section 5151(2), (3), (4);
       HR on Senate section 4131(2)(C);
       HR on Senate section 4131(3);
       LC on House section 5151(5) and Senate section 4131(4);
       HR on Senate section 4131(5), (6), (7);
       LC on House section 5151(6) and Senate section 4131(8);
       SR on House section 5151(7);
       SR on House section 5151(8) with an amendment to strike 
     ``guidance'';
       LC on House section 5151(9) [eliminate if identical to 
     general definition]
       65. (Message and Materials) Similar provisions.
       Senate amendment allows Secretary to evaluate curricula.
       SR with an amendment in (a) to insert ``and violence'' 
     after ``Drug''; to strike ``is'' after ``drugs''; and to 
     insert ``and acts of violence are'' after ``drugs''.
       SR on (b).
       66. (Parental Consent) Senate amendment contains no similar 
     provision.
       SR
       67. (Prohibited Uses) Similar provisions.
       HR with an amendment to strike ``alcohol, tobacco, or''
       68. (IDEA) House bill requires each State to require LEAs 
     to have a policy permitting school personnel to discipline 
     children with a disability and without a disability in the 
     same manner in situations involving weapons, illegal drugs or 
     controlled substances, or aggravated assault or battery.
       Senate amendment allows SEAs and LEAs to implement uniform 
     policies regarding discipline and order for all children.
       HR/SR to strike both
       69. (IDEA) House bill and Senate amendment allow 
     disciplinary action to be modified on a case-by-case basis.
       HR/SR to strike both
       70. (IDEA) Similar provisions.
       HR/SR to strike both
       71. (IDEA) House bill allows educational services to cease 
     if the State does not require continued services for children 
     with children without disabilities who are expelled or 
     suspended.
       Senate amendment requires continuation of services when the 
     behavior is a manifestation of the child's disability. If 
     behavior is not a manifestation of the child's disability, 
     the same disciplinary procedures that would apply to a non-
     disabled child may be applied.
       HR/SR to strike both
       72. (IDEA) House bill contains no similar provision.
       SR
       73. (IDEA) Senate amendment contains no similar provision.
       HR
       74. (IDEA) House bill contains no similar provision.
       SR
       75. (Coordinator Initiative) House bill contains no similar 
     provision.
       HR with an amendment to include this initiative as an 
     allowable program under the national authority.
       76. (Advisory Committee) House bill contains no similar 
     provision.
       HR and include the following as Report Language:
       The Conferees intend that the Advisory Council provide 
     advice to the Secretary regarding the improvement of drug and 
     violence prevention programs, and that grant-making authority 
     rests solely with the Secretary.
       77. (Hate Crime) House bill contains no similar provision.
       HR
       78. (Domestic Violence) House bill contains no similar 
     provision.
       HR with an agreement to move to Subpart 17 of Title V, Part 
     D (FIE).
       79. (Community Service) House bill contains no similar 
     provision.
       HR with an amendment to include this initiative as an 
     allowable program under the national authority.
       80. (Suicide Prevention) House bill contains no similar 
     provision.
       SR
       81. (Mental Health) House bill contains no similar 
     provision.
       HR with an agreement to move redrafted provision to Subpart 
     14 of Title V, Part D (FIE).
       82. (Quality Rating) House bill contains no similar 
     provision.
       SR
       83. (School Safety and Violence Prevention) House bill 
     contains no similar provision, but generally is duplicative 
     of Safe and Drug-free state grants program.
       SR
       84. (School Uniforms) House bill contains no similar 
     provision.
       SR
       85. (Discipline Records Transfers) House bill contains 
     similar provision; see House bill section 5115(b)(2)(O), p. 
     33, Note #47.
       HR
       86. (Background Checks) House bill contains no similar 
     provision.
       HR
       87. (Reporting of School Violence) House bill contains a 
     similar use of funds in state grant program; see House bill 
     section 5115(b)(2)(R), p.33, Note #47
       SR
       88. (Security Technology Center) House bill contains no 
     similar provision.
       HR with an amendment to include this initiative as an 
     allowable program under the national authority.
       89. (Local Security Program) House bill contains no similar 
     provision.
       SR with an amendment to include as an allowable use of 
     local funds subject to the 20 percent cap.
       90. (Advisory Report) House bill contains no similar 
     provision.
       SR
       91. (School Safety Enhancement) House bill contains no 
     similar provision.
       SR
       92. (National Center for School and Youth Safety) House 
     bill contains no similar provision.
       HR with an amendment to include this initiative as an 
     allowable program under the national authority.
       93. (Safe Communities, Safe Schools) House bill contains no 
     similar provision.
       SR
       94. (Environmental Tobacco) House bill contains no similar 
     provision.
       HR
       95. (Environmental Tobacco) House bill contains no similar 
     provision.
       HR
       96. (Environmental Tobacco) House bill contains no similar 
     provision.
       HR
       97. (Alcohol Abuse) House bill contains no similar 
     provision.
       HR with an amendment to include this initiative as an 
     allowable program under the national authority.

            Title V, Part A, subpart 2--21st Century Schools

                         (New Title IV, Part B)

       1. Senate amendment maintains both the 21st Century 
     Community Learning Centers program and the Safe and Drug-Free 
     Schools and Communities as separate programs.
       House bill includes both programs under one act.
       SR with an amendment to make it a separate part.
       2. Similar provisions, but House bill focuses services on 
     students, and Senate amendment includes families and 
     students.
       HR to Senate purpose.
       HR with an amendment to add ``counseling programs'' in list 
     under (2).
       HR with an amendment to strike in (3) ``lifelong learning 
     and'' and add `` and related educational'' after 
     ``literacy''.
       Report Language:
       The Conferees recognize that counseling programs may 
     include mental health services.

[[Page 25881]]


       3. Senate amendment authorizes awards to CLCs that serve 
     students who primarily attend schoolwide schools or schools 
     with a high percentage of students from low income families.
       SR
       (House bill primarily targets schools eligible for 
     schoolwide programs under section 1114 in state application--
     see section 5122.)
       4. Both House bill and Senate amendment provide for 
     reservations and continuation grants--see House bill section 
     5111 (4).
       Senate amendment allows 1% for outlying areas and BIA.
       HR
       5. Both House bill and Senate amendment send funds to 
     States based on a formula. House bill sends funds based 50% 
     on school-age population and 50% on Title I, part A.
       Senate amendment sends funds based on Title I, part A.
       Similar provisions.
       Similar provisions--see House bill section 5151 (9).
       HR
       6. Senate amendment contains no similar provision.
       SR
       7. Senate amendment contains no similar provisions.
       SR
       8. Senate amendment contains no similar provision.
       SR with an amendment to allow 2% for state administration.
       9. House bill allows 4% for monitoring, evaluations, and 
     technical assistance.
       SR with amendment to include Senate section 1607 (b) (1) 
     (A) and (B) to House 5121 (c) (2).
       SR with an amendment to include Senate 1607 (b) (2) to 
     House 5121 (c) (3) (A) and (B) with 3% for State activities.
       Senate amendment allows 3% for planning, peer review, and 
     supervision and 3% for evaluation, training, and technical 
     assistance.
       10. House bill and Senate amendment contain similar 
     provisions, additionally:
       HR/SR with an amendment to insert the following language:

     ``SEC. 5122. STATE APPLICATION.

       ``(a) In General.--In order to receive an allotment under 
     section 5121(a) for any fiscal year, a State Educational 
     Agency shall submit to the Secretary, at such time as the 
     Secretary may require, an application that--
       ``(1) designates the State educational agency as the agency 
     responsible for the administration and supervision of 
     programs assisted under this part;
       ``(2) describes how the State Educational Agency will use 
     funds received under this part, including funds reserved for 
     State-level activities;
       ``(3) contains an assurance that the State Educational 
     Agency will make awards under this part only to eligible 
     entities that propose to serve--
       ``(A) students who primarily attend--
       ``(i) schools eligible for schoolwide programs under 
     section 1114; or
       ``(ii) schools that serve a high percentage of students 
     from low-income families; and
       ``(B) the families of students described in subparagraph 
     (A);
       ``(4) describes the procedures and criteria the State 
     Educational Agency will use for reviewing applications and 
     awarding funds to eligible entities on a competitive basis, 
     which shall include procedures and criteria that take into 
     consideration the likelihood that a proposed center will help 
     participating students meet local content and performance 
     standards by increasing their academic performance and 
     achievement;
       ``(5) describes how the State Educational Agency will 
     ensure that awards made under this part are--
       ``(A) of sufficient size and scope to support high-quality, 
     effective programs that are consistent with the purpose of 
     this part; and
       ``(B) in amounts that are consistent with section 
     [1608(b)];
       ``(6) describes the steps the State Educational Agency will 
     take to ensure that programs implement effective strategies, 
     including providing ongoing technical assistance and 
     training, evaluation, and dissemination of promising 
     practices;
       ``(7) describes how funds under this part will be 
     coordinated with programs under this Act, and other programs; 
     as appropriate, in accordance with the provisions of section 
     8306;
       ``(8) contains an assurance that the State Educational 
     Agency--
       ``(A) will make awards for programs of 3 to 5 year 
     duration; and
       ``(B) will require each eligible entity seeking such an 
     award to submit a plan describing how the center to be funded 
     through the award will continue after funding under this part 
     ends;
       ``(9) contains an assurance that funds appropriated to 
     carry out this part will be used to supplement, and not 
     supplant, other Federal, State, and local public funds 
     expended to provide programs and activities authorized under 
     this part and other similar activities;
       ``(10) contains an assurance that the State Educational 
     Agency will require eligible entities to describe in their 
     applications under section 1609 how the transportation needs 
     of participating students will be addressed;
       ``(11) provides an assurance that the application was 
     developed in consultation and coordination with appropriate 
     State officials, including the chief State school officer, 
     and other state agencies administering before and after 
     school (including during summer recess periods) programs, the 
     heads of the State health and mental health agencies or their 
     designees, representatives of teachers, parents, students, 
     the business community, and community-based organizations;
       ``(12) describes the results of the State's needs and 
     resources assessment for before and after school activities, 
     which shall be based on the results of on-going State 
     evaluation activities;
       ``(13) describes how the State Educational Agency will 
     evaluate the effectiveness of programs and activities carried 
     out under this part which shall include at a minimum--
       ``(A) a description of the performance indicators and 
     performance measures that will be used to evaluate programs 
     and activities; and
       ``(B) public dissemination of the evaluations of programs 
     and activities carried out under this part; and
       ``(14) provides for timely public notice of intent to file 
     application and an assurance that the application will be 
     available for public review after submission of the 
     application.''
       House bill primary targets students at schoolwide eligible 
     schools.
       Senate amendment targets students who attend schoolwide 
     schools or schools with students from low-income families.
       Similar provisions are aligned.
       See House bill sec. 5123(d).
       See House bill sec 5123(b)
       11. No similar Senate amendment provision.
       SR with amendment to strike House language and insert the 
     following language:
       ``(b) General Approval.--A State educational agency's 
     application submitted pursuant to subsection (a) shall be 
     deemed to be approved by the Secretary unless the Secretary 
     makes a written determination, prior to the expiration of the 
     120 day period beginning on the date that the Secretary 
     receives the application, that the application is in 
     violation of this part.
       ``(c) Disapproval.--The Secretary shall not finally 
     disapprove an application, except after giving the State 
     educational agency notice and opportunity for a hearing.
       ``(d) Special Rule.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     the provisions of this part, the Secretary shall:
       ``(1) implement the procedures described in subsection (c); 
     and
       ``(2) notify the State educational agency of the findings 
     of non-compliance where such notification shall--
       ``(A) cite the specific provisions in the application that 
     are not in compliance; and
       ``(B) request additional information, only as to those 
     noncompliant provisions, needed to make the application 
     compliant.
       ``(e) If the State educational agency does not respond to 
     the notification described in subsection (d)(2) within 45 
     days, such application is not approved.
       ``(f) If the State educational agency does respond to the 
     Secretary's notification described in subsection (d)(2) 
     within 45 days with the requested information necessary to 
     make the application compliant, the Secretary shall approve 
     or disapprove such application not later than 45 days 
     following its resubmission or the end of the 120 period 
     described in subsection (b), whichever is later.''
       12. House bill distributes 95% to the local level. Senate 
     amendment distributes 94% to the local level.
       SR
       13. House bill and Senate amendment contain similar 
     provisions aligned, additionally:
       House bill includes principles of effectiveness 
     requirements and limits to before and after school 
     activities.
       HR/SR with an amendment to insert the following language: 
     (APPLICATION) SECTION 5125
       ``(b) Eligibility.--
       ``(1) In general.--To be eligible to receive an award under 
     this part, an eligible entity shall submit an application to 
     the State at such time, in such manner, and including such 
     information as the State may reasonably require. Each such 
     application shall include--
       ``(A) a description of the before and after school activity 
     to be funded including--
       ``(i) an assurance that the program will take place in a 
     safe and easily accessible facility;
       ``(ii) a description of how students participating in the 
     program carried out by the center will travel safely to and 
     from the center and home;
       ``(iii) a description of how the eligible applicant will 
     disseminate information about the project (including its 
     location) to the community in a manner that is understandable 
     and accessible.
       ``(B) a description of how the activity is expected to 
     improve student academic performance;
       ``(C) an identification of Federal, State, and local 
     programs that will be combined or coordinated with the 
     proposed program in order to make the most effective use of 
     public resources;
       ``(D) an assurance that the proposed program was developed, 
     and will be carried out,

[[Page 25882]]

     in active collaboration with the schools the students attend;
       ``(E) a description of how the activity will meet the 
     principles of effectiveness described in [section 5124];
       ``(F) an assurance that the program will primarily target 
     students who attend schools eligible for schoolwide programs 
     under section 1114 and the families of such students;
       ``(G) an assurance that funds under this part will be used 
     to increase the level of State, local, and other non-Federal 
     funds that would, in the absence of funds under this part, be 
     made available for programs and activities authorized under 
     this part; and in no case supplant Federal, State, local, or 
     non-Federal funds;
       ``(H) a description of the partnership between a local 
     educational agency, a community-based organization, and 
     another public entity or private entity, if appropriate;
       ``(I) an evaluation of the needs, available resources, and 
     goals and objectives for the proposed community learning 
     center and a description of how the program proposed to be 
     carried out in the center will address those needs (including 
     the needs of working families); and
       ``(J) a demonstration that the eligible entity has 
     experience, or promise of success, in providing educational 
     and related activities that will complement and enhance the 
     students' academic performance and achievement and positive 
     youth development;
       ``(K) a description of a preliminary plan for how the 
     center will continue after funding under this part ends; and
       ``(L) an assurance that the community will be given notice 
     of an intent to submit an application and that the 
     application and any waiver request will be available for 
     public review after submission of the application; and
       ``(M) if the entity plans to use senior volunteers in 
     activities carried out through the center, a description of 
     how the entity will encourage and use appropriately qualified 
     seniors to serve as the volunteers;
       ``(N) such other information and assurances as the State 
     may reasonably require.
       14. (I) appeared in an accepted amendment in the Senate 
     amendment, but was not executed in the correct section in the 
     engrossed Senate amendment--see page 1185 of Senate 
     Amendment.
       HR
       15. House bill and Senate amendment contain similar 
     provisions, but Senate amendment also includes ``unit of 
     general purpose local government.''
       SR with an amendment to change ``private organization'' to 
     ``private entity'' and move to 21st Century definitions; and 
     strike the ``and'' after ``community-based organization,''
       16. House bill requires peer review for local applications, 
     while the Senate amendment authorizes 3% of a State's 
     allocation for peer review, among other activities--see 
     Senate amendment sec. 1607(b)(1).
       SR
       17. House bill requires equitable geographical 
     distribution.
       Senate amendment requires urban/rural equitable 
     distribution--see Senate bill sec. 1606(5)(B).
       SR with an amendment to add at end ``including urban and 
     rural communities''.
       18. House bill provides for awards of 3-5 years.
       Senate amendment provides for awards of up to 4 years--see 
     Senate sec. 1601(5)(A).
       SR
       19. House bill and Senate amendment contain similar 
     provisions.
       LC
       20. House bill gives a priority to programs proposing to 
     serve students who attend schools identified as needing 
     improvement under section 1116 and schoolwides under section 
     1114.
       Senate amendment gives an equal priority to title I 
     schools, community-based organizations, and consortia of the 
     two.
       HR with an amendment to take House language but strike 
     ``proposing to'' and add ``that will''.
       HR with an amendment to substitute the following for Senate 
     language:
       (b) Priority.--In making awards under this part, the SEA 
     shall give priority to applications submitted jointly by LEAs 
     receiving funds under Title I part A and community based 
     organizations or other public or private entities.
       Special Rule--The SEA shall provide the same priority 
     described in (b) to an LEA which applies and demonstrates 
     that it is unable to partner with a community based 
     organization that is in reasonable geographic proximity and 
     of sufficient quality to meet the requirements of this part.
       21. Senate amendment allows for centers to be located 
     outside of a school building if accessible and as effective 
     as school-based program.
       House bill is silent on the location of a program.
       HR with an amendment to strike Senate language and to 
     insert the following language:
       ``(c) Approval of Certain Applications.--The SEA may 
     approve an application under this subpart for a program to be 
     located in a facility other than an elementary school or a 
     secondary school, only if the program will be at least as 
     available and accessible to the students to be served as if 
     the program were located in the school.''
       22. House bill contains no similar provision.
       HR with an amendment to move to section 5124(c) of the 
     House bill, and substitute the following language:
       ``Programs that provide after-school activities for LEP 
     students that emphasize language skills and academic 
     achievement.''
       Report Language:
       The language expands the authorized activities to include 
     those projects with emphasis on language skills and academic 
     achievement programs for limited English proficient students. 
     Such activities may include activities to successfully 
     negotiate the classroom and school culture and environments 
     that may be unfamiliar to LEP children and their families, 
     such as standardized tests; the roles of teachers, classroom 
     aides, and school administrators; student conduct codes; and 
     after-school sports, music, and clubs.
       23. Senate amendment contains no similar provision.
       SR with amendment to add at end of (1) ``or may not come 
     from Federal or State sources''.
       24. Senate amendment contains no similar provision.
       SR with an amendment to strike ``extended learning 
     opportunities'' and add ``opportunities for academic 
     enrichment'' in (a)(1)(B) and (a)(2) with LC to make 
     conforming amendments to this term.
       Insert in (a)(1)(A) ``(including summer school programs)'' 
     following ``after school programs and activities''.
       25. House bill requires that activities provide for 
     extended learning and academic reinforcement.
       HR
       26. Senate amendment contains no similar provision, but see 
     Senate amendment sec. 1602 for similar list of activities.
       SR with an amendment to insert following language:
       ``(LOCAL ACTIVITIES) SECTION 5124
       ``(c) Authorized Activities.--Each eligible entity that 
     receives a subgrant under this part may use such funds to 
     carry out a broad array of activities, such as--
       ``(1) before and after school activities (including summer 
     school programs) that advance student achievement, 
     including--
       ``(A) remedial education activities and academic enrichment 
     learning programs, including providing additional assistance 
     to students in order to allow them to improve their academic 
     achievement;
       ``(B) math and science education activities;
       ``(C) arts and music education activities;
       ``(D) entrepreneurial education programs;
       ``(E) tutoring services (including those provided by senior 
     citizen volunteers) and mentoring programs;
       ``(F) recreational activities;
       ``(G) telecommunications and technology education programs;
       ``(H) expanded library service hours;
       ``(I) programs that promote parental involvement and family 
     literacy; and
       ``(J) programs that provide assistance to students who have 
     been truant, suspended, or expelled to allow them to improve 
     their academic achievement; and
       ``(K) drug and violence prevention programs, counseling 
     programs, and character education programs; and
       ``(2) establishing or enhancing programs or initiatives 
     that improve academic achievement.''
       27. Similar definitions aligned:
       House bill assists students, while the Senate amendment 
     assists students and families of such students.
       See House bill section 5122(a)(1).
       HR with an amendment.
       HR on ``(2) Covered Program''.
       SR on ``(4) State''.
       Insert the following language:
       Definition of Community Learning Center:
       For the purpose of this part, a `community learning center' 
     is an entity that assists students to meet state and local 
     academic achievement standards in core academic subjects, 
     such as reading and mathematics, by providing them with 
     opportunities for academic enrichment activities and a broad 
     array of other activities (such as drug and violence 
     prevention, counseling, art, music, recreation, technology, 
     and character education programs) during non-school hours or 
     periods when school is not in session (such as before and 
     after school or during summer recess) that reinforce and 
     complement the regular academic programs of the schools 
     attended by the students served; and
       offers families of students served in such center 
     opportunities for literacy and related educational 
     development.
       28. House bill authorizes $900 million for fy2002 and such 
     sums for 4 following years--see House bill sec. 5003.
       Senate amendment authorizes $1.5 billion for fy 2002 and 
     such sums for following 6 years.
       HR to strike and insert the following authorizations--FY02-
     $1.25 billion, FY03-$1.5 billion, FY04-$1.75 billion; FY05-$2 
     billion, FY06-$2.25 billion, FY07-$2.5 billion
       29. House bill contains no similar provisions.
       SR

        Title V, Part B--Enhancing Education Through Technology

                         (New Title II, Part D)

       1. The House bill has 8 purposes and no goal. The Senate 
     amendment has 1 purpose and 2 goals.

[[Page 25883]]

       HR/SR with an amendment to insert the following language:
       Combination of House (1) and Senate (a):
       Purposes:
       ``To provide assistance to States and localities for the 
     implementation and support of a comprehensive system that 
     effectively uses technology in elementary and secondary 
     schools to improve student academic achievement.''
       Maintain House (2)-(8)
       Goals:
       ``The primary goal of this part is to improve student 
     academic achievement through the use of technology in 
     elementary and secondary schools. The further goals of this 
     part are to assist every student in crossing the digital 
     divide by ensuring that every child is technologically 
     literate by the time the child finishes the 8th grade, 
     regardless of the child's race, ethnicity, gender, income, 
     geography, or disability and to encourage the effective 
     integration of technology resources and systems with teacher 
     training and curriculum development to establish research-
     based methods that can be widely implemented into best 
     practices by State and local educational agencies.''
       2. The House bill authorizes the State Technology grant 
     program for 5 years. The Senate amendment authorizes it for 7 
     years.
       LC
       3. The House bill includes $24.5 million for the Ready To 
     Learn, Ready To Teach program in this section. The Senate 
     amendment includes $50 million for a Ready to Learn program 
     in section 11209 and $45 million for a Ready To Teach program 
     in section 11258.
       HR/SR with an amendment to strike all language. (See notes 
     78-82).
       4. The House bill provides that not more than 5 percent may 
     be made available for activities of the Secretary under 
     subpart 2. The Senate amendment provides that not more than 
     .5 percent of the funds appropriated under subsection (a) may 
     be used for the activities of the Secretary under section 
     2311.
       SR with an amendment to strike 5% and insert 2%.
       5. The House bill reserves $15 million out of national 
     activities for a national technology study, but allows for 
     other uses of funds out of national activities. The Senate 
     amendment requires all funds under section 2311 to be used 
     for an independent longitudinal study of effective uses of 
     technology.
       SR (LC to draft legislative language)
       Policy: No more than 15 million over the course of 
     authorization.
       6. The Senate amendment limits recipients to using not more 
     than 5 percent of the funds made available under this part 
     for administrative costs or technical assistance. The House 
     bill allows States to use up to 5 percent of their allocation 
     for State activities under section 5215(b), of which only 40 
     percent may be for administrative costs.
       HR with an amendment to insert ``5% total, up to 3% 
     administration''.
       7. The House bill and Senate amendment have completely 
     different definitions.
       SR with an amendment to move House (1) to General 
     Provisions;
       Strike ``scientifically-based research'' (3)(A) and insert 
     ``a review of relevant research'';
       At end of (4)(A) insert ``and'' and strike ``and'' in 
     (4)(B) and insert ``or''.
       LC--ensure that language is drafted so that the LEA is the 
     fiscal agent of an eligible local partnership.
       8. Also, see notes (32) and (43) in Title 8 for the general 
     definitions of a ``public telecommunications entity'' and 
     ``technology.''
       SR--(see note 7).
       9. The House bill has a federal to state formula based 50 
     percent on Title I and 50 percent on student age population. 
     The Senate amendment has a federal to state formula based 100 
     percent on Title I.
       HR
       10. The House bill reserves \1/2\ of 1 percent of funds for 
     the Bureau of Indian Affairs and outlying areas. The Senate 
     amendment reserves 0.75 percent for the Bureau of Indian 
     Affairs and remains silent on outlying areas. However, the 
     Senate amendment includes ``outlying areas'' in its 
     definition of a ``State'' in section. 3 Definitions.
       SR with an amendment to allocate BIA .75 percent
       11. The Senate amendment allows continuation grants for 
     sections 3136 and 3122. Under section 5212, the House bill 
     allows two-year (or the duration of the original grant period 
     if shorter) continuation grants for section 3132 (a)(2).
       HR with an amendment to strike reference to section 3122.
       12. The House bill and Senate amendment have similar 
     reallotment of unused funds provisions.
       SR
       13. The Senate amendment prohibits a State whose minimum is 
     below \1/2\ of 1 percent to receive a grant. The House bill 
     prohibits a State grant to be less than \1/2\ of 1 percent.
       SR with an amendment to allocate BIA .75 percent
       14. The Senate amendment, but not the House bill, requires 
     the Secretary to give priority when awarding grants to SEAs 
     whose applications outline a strategy to carry out part E.
       SR
       15. The House bill requires the States to send out 60 
     percent of the funds to the LEAs based on Title I and to 
     compete the remaining 40 percent. The Senate amendment 
     requires the States to compete 100 percent of funds.
       SR with an amendment to strike ``60'' in Sec. 5212 
     (a)(2)(A) and insert ``50''; and strike ``40'' in Sec. 
     5212(a)(2)(B) and insert ``50''; insert the following Special 
     Rule:
       ``(x)(1) Special Rule.--In awarding a grant under section 
     (competitive pot) the State educational agency shall--
       (A) determine which local educational agencies received an 
     allocation under section (formula pot) that is not of 
     sufficient size so as to allow for an effective and 
     sufficient investment consistent with the purpose of this 
     part;
       (B) give a priority to applications which received the 
     amount described in subparagraph (A); and
       (C) determine the minimum amount for awards under section 
     (competitive pot) to ensure grants are of sufficient size so 
     as to be effective.
       (2) Insufficient amount.--The State educational agency 
     shall determine the sufficiency of amounts described in 
     paragraph (1)(A) by taking into consideration the amount 
     received by local educational agencies under section (formula 
     pot) and whether such amount is of sufficient size so as to 
     allow for an effective and sufficient investment consistent 
     with the purpose of this part.''
       16. The Senate amendment includes Sufficiency, Priority, 
     Distribution, and Technical Assistance language under this 
     section. The House bill includes similar ``Sufficiency'' and 
     ``Technical Assistance'' language in section 5213 (8) and 
     (9). The House bill has no Priority language under this 
     section but places some emphasis on high-need LEAs in section 
     5213(b)(3). The House bill has no Distribution language.
       HR with an amendment to strike (C).
       17. The House bill includes Continuation of Award language 
     under this section.
       HR
       18. Although similar in some instances, the House bill and 
     Senate amendment have different State Application 
     requirements.
       HR/SR with an amendment to:
       Maintain House (a);
       Combine House (b) with Senate (1-8);
       Insert the following language for notes 18-28:
       State Applications
       ``Each State application submitted under this section shall 
     include the following:
       ``(1) an outline of the State's long-term strategies for 
     improving student academic achievement including technology 
     literacy, through the effective use of technology in 
     classrooms throughout the State, including through improving 
     the capacity of teachers to effectively integrate technology 
     into the curricula and instruction;
       ``(2) a description of the State's goals for using advanced 
     technology to improve student achievement aligned to 
     challenging State academic standards and student academic 
     achievement standards;
       ``(3) a description of how the State will take steps to 
     ensure that all students and teachers in the State, 
     particularly those residing in or teaching in districts 
     served by high-need local educational agencies, have 
     increased access to technology;
       ``(4) a description of the process and accountability 
     measures that the State would use to evaluate the 
     effectiveness of the integration of technology;
       ``(5) a description of how the State would encourage the 
     development and utilization of innovative strategies for the 
     delivery of specialized or rigorous curricula through the use 
     of technology and distance learning technologies, 
     particularly for those areas of the State that would not 
     otherwise have access to such courses and curricula due to 
     geographical isolation or insufficient resources;
       ``(6) an assurance that financial assistance provided under 
     this subpart shall supplement, and not supplant, State and 
     local funds;
       ``(7) a description of how the plan incorporates teacher 
     education, professional development and curricular 
     development, and how the State would work to ensure that 
     teachers and principals in a State receiving funds under this 
     part are technologically literate;
       ``(8) a description of how the State educational agency 
     would provide technical assistance to applicants, especially 
     those with the highest number or percentage of children in 
     poverty or with the greatest need for technical assistance 
     and (its) capacity for providing such assistance;
       ``(9) a description of technology resources and systems for 
     the purpose of establishing best practices that can be widely 
     implemented by State and local educational agencies;
       ``(10) a description of long-term strategies for financing 
     technology to ensure that all students, teachers, and 
     classrooms would have access to technology;
       ``(11) a description of strategies for using technology to 
     increase parental involvement;
       ``(12) a description of how the SEA would ensure that each 
     grant awarded using funds described under section 
     5212(a)(2)(B) is of sufficient duration, and of sufficient 
     size, scope,

[[Page 25884]]

     and quality, to carry out the purpose of this part 
     effectively;
       ``(13) a description of how the State will ensure ongoing 
     integration of technology into instructional strategies and 
     school curricula in all schools in the State, so that 
     technology will be fully integrated into those schools by 
     December 31, 2006; and
       ``(14) a description of how the local educational agency 
     will provide incentives to teachers who are technologically 
     literate to encourage such teachers to remain in rural and 
     urban areas, if applicable.
       ``(15) a description of how public and private entities 
     would participate in the implementation and support of the 
     plan.''
       19. The House bill and Senate amendment have similar 
     language regarding long-term strategic plans.
       HR/SR--See note 18.
       20. The House bill and Senate amendment have similar 
     language regarding the use of technology to improve student 
     academic achievement and the teachers' ability to incorporate 
     technology into the curricula and instruction.
       HR/SR--See note 18.
       21. The Senate amendment has duplicative provisions 
     regarding teacher training, curricular development and use of 
     technology resources and systems. See provisions (2) and (8). 
     The House bill has no similar provisions.
       HR/SR--See note 18.
       22. The Senate amendment includes a provision regarding 
     parental involvement. The House bill mentions it as an 
     allowable State activity in section 5215(a)(3)(B)(i).
       HR/SR--See note 18.
       23. The Senate amendment requires States to develop a 
     technology financing strategy to provide access to all 
     students, teachers, and classrooms. The House bill requires 
     States to describe how they will ensure increased access for 
     all students and teachers particularly in high-need LEAs. The 
     House bill also has language in section 5215(a)(2) on 
     creating public-private partnerships to help high-need 
     districts acquire technology.
       HR/SR--See note 18.
       24. The Senate amendment requires participation by private 
     school teachers and students. The House bill has similar 
     participation requirements in the General Provisions (title 
     8). See note 97.
       HR/SR--See note 18.
       25. The House bill and Senate amendment have similar 
     supplement not supplant language.
       HR/SR--See note 18.
       26. The Senate amendment, but not the House bill, gives the 
     Secretary the option to require other information on how 
     States will provide assistance to LEAs that have the highest 
     numbers or percentages of children and demonstrate the 
     greatest need for technology, in order to improve student 
     academic achievement.
       HR/SR--See note 18.
       27. The House bill has more specific language than the 
     Senate amendment on the integration of technology, including 
     a goal of December 31, 2006, accountability for such 
     integration and its impact on student academic achievement.
       HR/SR--See note 18.
       28. The House bill, but not the Senate amendment, requires 
     the States to describe how they will encourage distance 
     learning and the delivery of specialized and rigorous 
     academic courses, particularly for those areas that would not 
     otherwise have access to such courses and curricula due to 
     geographic isolation or lack of resources.
       HR/SR--See note 18.
       28. The House bill, but not the Senate amendment, has a 
     goal of teachers and principals being computer-literate and 
     proficient (as determined by the State) by December 31, 2006.
       HR/SR--See note 18.
       29. The House bill, but not the Senate amendment, includes 
     Deemed Approval, Disapproval and Dissemination of Information 
     on State Applications language.
       SR with amendment (this agreement would be based on the 
     agreement to have one policy throughout the bill on this 
     issue and is what we agreed to in 21st Century Community 
     Learning Centers Note #11) to strike House language and to 
     insert language to read as follows:
       ``(b) General Approval.--A State educational agency's 
     application submitted pursuant to subsection (a) shall be 
     deemed to be approved by the Secretary unless the Secretary 
     makes a written determination, prior to the expiration of the 
     120 day period beginning on the date that the Secretary 
     receives the application, that the application is in 
     violation of this part.
       (c) Disapproval.--The Secretary shall not finally 
     disapprove an application, except after giving the State 
     educational agency notice and opportunity for a hearing.
       (d) Special Rule.--If the Secretary finds that the 
     application is not in compliance, in whole or in part, with 
     the provisions of this part, the Secretary shall:
       (1) implement the procedures described in subsection (c); 
     and
       (2) notify the State educational agency of the findings of 
     non-compliance where such notification shall--
       (A) cite the specific provisions in the application that 
     are not in compliance; and
       (B) request additional information, only as to those 
     noncompliant provisions, needed to make the application 
     compliant.
       (e) If the State educational agency does not respond to the 
     notification described in subsection (d)(2) within 45 days, 
     such application is not approved.
       (f) If the State educational agency does respond to the 
     Secretary's notification described in subsection (d)(2) 
     within 45 days with the requested information necessary to 
     make the application compliant, the Secretary shall approve 
     or disapprove such application not later than 45 days 
     following its resubmission or the end of the 120 day period 
     described in subsection (b), whichever is later.''
       30. Although similar in many instances, the House bill and 
     Senate amendment have different application requirements.
       HR/SR with an amendment to insert the following language 
     for notes 30-48: And insert at the very end of the Technology 
     section the Internet Filtering language verbatim from the FY 
     01 Omnibus Appropriations bill.


                          ``Local Application

       ``Each local application described in this section shall 
     include the following:
       ``(1) A description of how the applicant will use Federal 
     funds provided under this subpart to improve the academic 
     achievement, including technology literacy, of all students 
     and to improve the capacity of all teachers to provide 
     instruction through the use of technology.
       ``(2) A description of the applicant's specific goals for 
     using advanced technology to improve student achievement 
     aligned to challenging State academic content and student 
     academic achievement standards.
       ``(3) A description of how the applicant will take steps to 
     ensure that all students and teachers in schools served by 
     the local educational agency have increased access to 
     educational technology, including how it would use funds 
     under this subpart, such as in combination with other funds, 
     to help ensure that students in high poverty and high needs 
     schools, or schools identified for improvement under section 
     1116, have access to technology and teachers are prepared to 
     integrate technology effectively into instruction.
       ``(4) A description of how the applicant will--
       ``(A) promote teaching strategies and curricula, based on a 
     review of relevant research, which effectively integrate 
     technology into instruction, leading to improvements in 
     student academic achievement as measured by challenging State 
     academic content and student academic achievement standards; 
     and
       ``(B) provide ongoing, sustained professional development 
     for teachers, principals, administrators, and school library 
     media personnel served by the local educational agency to 
     further the effective use of technology in the classroom or 
     library media center, and if applicable include a list of 
     those entities that will partner with the local educational 
     agency in providing ongoing sustained professional 
     development;
       ``(5) A description of the type and costs of technologies 
     to be acquired, including services, software, and digital 
     curricula, including specific provisions for interoperability 
     among components of such technologies.
       ``(6) A description of how the local educational agency 
     will coordinate the technology provided pursuant to this part 
     with other grant funds available for technology from other 
     Federal, State, and local sources.
       ``(7) A description of how the applicant will integrate 
     technology (including software and other electronically 
     delivered learning materials) across the curriculum and a 
     time line for such integration.
       ``(8) A description of how the applicant will encourage the 
     development and utilization of innovative strategies for the 
     delivery of specialized or rigorous academic courses and 
     curricula through the use of technology and distance 
     learning, particularly for those areas that would not 
     otherwise have access to such courses and curricula due to 
     geographical isolation or insufficient resources.
       ``(9) A description of how the local educational agency 
     will ensure the effective use of technology to promote 
     parental involvement and increase communication with parents, 
     including a description of how parents will be informed of 
     the use of technologies so that the parents are able to 
     reinforce at home the instruction their child receives at 
     school.
       ``(10) A description of how programs will be developed in 
     collaboration with existing adult literacy service providers 
     to maximize the use of such technologies.
       ``(11) A description of the accountability measures and 
     process the applicant will use for the evaluation of the 
     extent to which funds provided under this subpart were 
     effective in integrating technology into school curriculum, 
     increasing the ability of teachers to teach, and enabling 
     students to meet challenging State academic content and 
     student academic achievement standards.
       ``(12) A description of the supporting resources, such as 
     services, software, other electronically delivered learning 
     materials, and print resources, that will be acquired to 
     ensure successful and effective uses of technologies.
       31. The House bill and Senate amendment require an 
     application that is consistent

[[Page 25885]]

     with the objectives found in the state-wide plan.
       HR/SR--See note 30.
       32. The House bill and Senate amendment require an 
     explanation of how technology will improve student academic 
     achievement and classroom instruction. The Senate amendment 
     also includes improving technology literacy to that 
     requirement.
       HR/SR--See note 30.
       33. The Senate amendment requires grantees to have reviewed 
     relevant research. The House bill requires ``scientifically-
     based research'' in several provisions.
       HR/SR--See note 30.
       34. The House bill and Senate amendment require information 
     about how technology will be integrated into the curriculum. 
     However, the House bill requires a timeline and attention to 
     emerging technologies.
       HR/SR--See note 30.
       35. The Senate amendment requires technology to improve 
     parental involvement and communication. The House bill has 
     parental involvement language in sections 5215(a)(3)(B)(i) 
     and 5216(a)(2)(i).
       HR/SR--See note 30.
       36. The Senate amendment, but not the House bill, requires 
     parents to be informed of technology uses so it can be 
     reinforced at home.
       HR/SR--See note 30.
       40. The Senate amendment requires information on what type 
     of technology is acquired and how it will be interoperable. 
     The House bill only requires interoperability with previous 
     title III technology funds.
       HR/SR--See note 30.
       41. The House bill and Senate amendment focus on 
     professional development. However, the House bill focuses on 
     teachers and principals, while the Senate amendment focuses 
     on teachers, administrators, and library staff. The Senate 
     amendment also requires a list of partner entities that 
     provide professional development.
       HR/SR--See note 30.
       42. The Senate amendments, but not the House bill requires 
     a description of the projected cost of technologies to be 
     acquired and related expenses needed to implement the plan.
       HR/SR--See note 30.
       43. The House bill and Senate amendment require 
     coordination with other Federal, State and local funds. The 
     House bill specifically references titles II, IV, IDEA, and 
     Vocational Education.
       HR/SR--See note 30.
       44. The House bill and Senate amendment somewhat similar 
     language requiring an evaluation of how technology was 
     integrated into the curriculum and its impact on teaching and 
     students meeting State standards. The Senate amendment has 
     duplicative evaluation in section 2308(a).
       HR/SR--See note 30.
       45. The Senate amendment requires participation by private 
     school teachers and students. The House bill has similar 
     participation requirements in the General Provisions (title 
     8). See note 97.
       HR/SR--See note 30.
       46. The House bill, but not the Senate amendment, requires 
     applicants to take steps to ensure that all student and 
     teachers, particularly those in high-poverty and high-need 
     schools, have increased access to technology.
       HR/SR--See note 30.
       47. The House bill, but not the Senate amendment, requires 
     the local applicants to describe how they will encourage 
     distance learning and the delivery of specialized and 
     rigorous academic courses, particularly for those areas that 
     would not otherwise have access to such courses and curricula 
     due to geographic isolation or lack of resources.
       HR/SR--See note 30.
       48. The House bill, but not the Senate amendment, has a 
     second requirement for consistency with State-wide technology 
     priorities and requires integration with previous technology 
     funds.
       HR/SR--See note 30.
       49. The Senate amendment, but not the House bill, includes 
     language on the Formation of Consortia and Coordination of 
     Application Requirements.
       SR with an amendment to add the following at the end of 
     Sec. 5212. Use of Allotment by State . . .
       ``Special Rule: A local educational agency for any fiscal 
     year may apply for financial assistance as part of a 
     consortium with other local educational agencies, 
     institutions of higher education, educational service 
     agencies, libraries, or other educational entities 
     appropriate to provide local programs. The State educational 
     agency may assist in the formation of consortia among local 
     educational agencies, institutions of higher education, 
     educational service agencies, libraries, or other appropriate 
     educational entities to provide services for the teachers and 
     students in a local educational agency at the request of such 
     local educational agency.''
       LC--ensure that language is drafted so that the LEA is the 
     fiscal agent of the consortium.
       50. The House bill, but not the Senate amendment, includes 
     a section on State Activities. See notes (6), (22), (23) and 
     (35).
       SR with an amendment to insert ``or other technologies'' 
     after ``Internet'' in (3)(B)(i); Strike (b).
       51. Under this section, the House bill allows States to 
     help LEAs provide access to technology to all students, 
     including students with disabilities and limited English 
     proficiency.
       SR
       52. Under this section, the House bill allows States to 
     provide greater access to technology through libraries and 
     with the support of the private sector. The Senate amendment 
     requires States to describe how libraries can help increase 
     access to technology under section 2305(4) and allows 
     libraries to be part of a consortium with LEAs under section 
     2307(b). The Senate amendment also retains the Community 
     Technology Centers as a separate program.
       HR with an amendment to strike requirement that States 
     describe how libraries can help increase access to technology 
     under section 2305(4).
       53. Under this section, the House bill allows States to 
     collaborate with other States on distance learning.
       SR
       54. Although similar in substance, the House bill and 
     Senate amendment have different local uses of funds.
       HR/SR with an amendment to insert the following language 
     for notes 54-67:


                           ``Local Activities

       ``(a) Professional Development.--A recipient of funds made 
     available under section 5212(a)(2)(A) shall use not less than 
     25 percent of such funds to provide ongoing, sustained and 
     intensive, high-quality professional development, consistent 
     with section 2033 (as applicable), in the integration of 
     advanced technologies (including emerging technologies) into 
     curriculum and in using those technologies to create new 
     learning environments, such as professional development in 
     the use of technology to--
       ``(1) access data and resources to develop curricula and 
     instructional materials;
       ``(2) enable teachers--
       ``(i) to use the Internet and other technology to 
     communicate with parents, other teachers, principals, and 
     administrators; and
       ``(ii) to retrieve Internet-based learning resources; and
       ``(3) lead to improvements in classroom instruction in the 
     core academic subject areas, which effectively prepare 
     students to meet challenging State academic content and 
     student academic achievement standards, including increasing 
     student technology literacy.
       Waiver.--Subsection (a) does not apply to a recipient of 
     funds under section 5212(a)(2)(A) that demonstrates, to the 
     satisfaction of the State educational agency, that such 
     recipient already provides sustained and intensive, high 
     quality professional development to all teachers in core 
     curriculum subjects based on review of relevant research in 
     the integration of technology (including emerging 
     technologies) into the curriculum.
       ``(b) Other Activities.--In addition to the activities 
     described in subsection (a), a recipient of funds distributed 
     by a State under section 5212(a)(2)(A) shall use such funds 
     to carry out other activities consistent with this subpart, 
     which may include the following:
       ``(1) The establishment or expansion of initiatives, 
     particularly those involving public-private partnerships, 
     designed to increase access to technology for students and 
     teachers, with special emphasis on the access of high-need 
     schools to technology.
       ``(2) Adapting or expanding existing and new applications 
     of technology to enable teachers to increase student academic 
     achievement including technology literacy through the use of 
     teaching practices that are based on a review of relevant 
     research and are designed to prepare students to meet 
     challenging State academic content and student academic 
     achievement standards, and for developing and utilizing 
     innovative distance education strategies to deliver rigorous 
     academic programs to areas who otherwise would not have 
     access to such courses.
       ``(3) Acquiring proven and effective curricula that include 
     integrated technology and are designed to help students 
     achieve challenging State academic content and student 
     academic achievement standards.
       ``(4) Utilizing technology to develop or expand efforts to 
     connect schools and teachers with parents and students to 
     promote meaningful parental involvement and foster increased 
     communication about curriculum, assignments, and assessments 
     between students, parents, and teachers, and assist parents 
     to understand the technology being applied in their child's 
     education so that parents are able to reinforce their child's 
     learning.
       ``(5) Preparing one or more teachers in elementary and 
     secondary schools as technology leaders who are provided with 
     the means to serve as experts and train other teachers in the 
     effective use of technology and providing bonus payments to 
     recognized technology leaders.
       ``(6) Acquiring, adapting, expanding, implementing, 
     repairing and maintaining existing and new applications of 
     technology, to support the school reform effort and improve 
     student academic achievement, including technology literacy.
       ``(7) Acquiring connectivity linkages, resources, and 
     services, including the acquisition of hardware and software 
     and other

[[Page 25886]]

     electronically delivered learning materials, for use by 
     teachers, students, academic counselors, and school library 
     media personnel in the classroom, in academic and college 
     counseling centers, or in school library media centers, in 
     order to improve student academic achievement;
       ``(8) Using technology to collect, manage, and analyze data 
     to inform and enhance teaching and school improvement 
     efforts.
       ``(9) Implementing enhanced performance measurement systems 
     to determine the effectiveness of education technology 
     programs funded under this subpart, particularly in 
     determining the extent to which education technology funded 
     under this subpart has been successfully integrated into 
     teaching strategies and school curriculum, has increased the 
     ability of teachers to teach, and has enabled students to 
     meet challenging State academic content and student academic 
     achievement standards.
       ``(10) Developing, enhancing or implementing information 
     technology courses.''
       55. The House bill requires that local educational agencies 
     use at least 20 percent of their allocated funds for 
     professional development predicated on scientifically based 
     research and linked with professional development under Title 
     II. The Senate amendment requires that local educational 
     agencies use at least 30 percent of their allocated funds for 
     professional development.
       HR/SR--See note 54.
       56. The House bill has more specific requirements of 
     professional development funds than the Senate amendment and 
     allows States to waive the 20 percent requirement for LEAs 
     that demonstrate that they are doing enough already on 
     professional development.
       HR/SR--See note 54.
       57. The House bill's (c)(4) and the Senate amendment's 
     (a)(8) are identical provisions.
       HR/SR--See note 54.
       58. The Senate amendment has duplicative provisions in 
     (a)(3) and (a)(9).
       HR/SR--See note 54.
       59. The Senate amendment, but not the House bill, has a 
     requirement for connectivity with wide area networks. 
     However, the House bill allows funds to be used for acquiring 
     technology in general.
       HR/SR--See note 54.
       60. The House bill allows using funds for maintaining 
     educational technology. The Senate amendment requires using 
     funds to repair and maintain school technology equipment.
       HR/SR--See note 54.
       61. The House bill allows using funds for analyzing, 
     collecting, and managing data for general school reform. The 
     Senate amendment requires it.
       HR/SR--See note 54.
       62. The House bill, but not the Senate amendment, allows 
     using funds for initiatives, particularly for public-private 
     partnerships, designed to increase access for high-need LEAs.
       HR/SR--See note 54.
       63. The House bill, but not the Senate amendment, allows 
     using funds to acquire proven and effective criteria that 
     included integrated technology.
       HR/SR--See note 54.
       64. The House bill, but not the Senate amendment, allows 
     using funds to determine the effectiveness of technology 
     funded under this subpart.
       HR/SR--See note 54.
       65. The House bill, but not the Senate amendment, allows 
     funds to be used to develop teachers as technology leaders to 
     help train other teachers.
       HR/SR--See note 54.
       66. The House bill allows using funds to increase access to 
     technology in high-need LEAs, especially through technology 
     centers in partnerships with libraries and private sector 
     support. The Senate amendment retains the Community 
     Technology Centers.
       HR
       67. The Senate amendment's allowable uses of funds include 
     to increase parent and teacher communication and to help 
     parents under the technology being used, so they can 
     reinforce it.
       HR/SR--See note 54.
       68. The House bill and Senate amendment require the 
     Secretary to conduct a similar longitudinal study. However, 
     the House bill includes specific provisions relating to the 
     establishment of a review panel under (a)(1)(C) and reporting 
     requirements under (a)(1)(D).
       SR with an amendment to strike ``the effect of . . . 
     academic achievement;'' and insert Senate (A) as part of 
     House (A) and insert Senate (B) as end part of House (A) with 
     the following changes: strike ``performance'' and insert 
     ``academic achievement'' and strike ``and related 21st 
     century skills;''
       Keep House (C) and (D), but House (D) becomes new (E);
       Insert as new (D): ``consult with other interested Federal 
     departments or agencies, State and local educational 
     practitioners and policy makers (including teachers, 
     principals and superintendents) and experts in technology 
     regarding the study.''
       Keep Senate (b)(2).
       69. The House bill, but not the Senate amendment, requires 
     using ``scientifically based research methods and control 
     groups.''
       SR
       70. The House bill, but not the Senate amendment, includes 
     general language pertaining to the funding of national 
     technology initiatives under (a)(2) and provides for 
     technical assistance under (a)(3).
       SR with an amendment to strike House (a)(2).
       71. The Senate amendment includes ``dissemination'' 
     requirements under (b)(2). The House bill includes 
     ``evaluation and dissemination'' requirements under (b)(3).
       HR
       72. The House bill, but not the Senate amendment, includes 
     specific ``use of funds'' language under (b).
       HR
       73. The House bill includes ``requirements for recipients 
     of funds'' under (b)(2), including evaluation requirements. 
     The Senate amendment includes similar requirements in section 
     2308, which applies to LEAs that receive competitive grants 
     under section 2304(a)(2)(A). However, in section 2308(c) the 
     Senate amendment includes a specific sanction for the lack of 
     measurable improvements within 3 years that the House bill 
     does not.
       HR/SR with an amendment to strike all language.
       74. The Senate amendment, but not the House bill, includes 
     a separate Accountability section.
       Also see note (73).
       SR
       75. Under this section, the Senate amendment provides 
     technical assistance in (d). The House bill requires it under 
     State Activities. Also see note (6).
       SR
       76. The Senate amendment, but not the House bill, includes 
     this National Evaluation of Technology Plans section.
       SR with an amendment to put in national evaluation; insert 
     ``particularly in rural areas'' after ``funds'' in (a)(3)--
     see note 68.
       77. The Senate amendment, but not the House bill, includes 
     this National Education Technology Plan section.
       HR with an amendment to strike all language and insert the 
     following:

     ``SEC. 2310. NATIONAL EDUCATION TECHNOLOGY PLAN.

       ``(a) In General.--Based on the nation's progress and an 
     assessment by the Secretary of the continuing and future 
     needs of the nation's schools in effectively using technology 
     to provide all students the opportunity to achieve 
     challenging State academic content standards, the Secretary 
     shall update and publish in a form readily accessible to the 
     public the national long-range technology plan not later than 
     12 months after the date of enactment of this Act.
       ``(b) Content of the Plan.--The plan shall include a 
     description of the manner in which the Secretary will promote 
     higher academic achievement through the integration of 
     advanced technologies, including emerging technologies, into 
     the curriculum, increased access to technology for teaching 
     and learning for schools with a high number or percentage of 
     children from low-income families and the use of technology 
     to assist in the implementation of State systemic reform 
     strategies. The plan shall also describe joint activities of 
     the Department of Education and other federal departments or 
     agencies that will promote the use of technology in 
     education.''
       Report Language:
       The Conferees intend that the National Education Technology 
     Plan be conducted by the Secretary in consultation with other 
     federal departments or agencies, State and local education 
     practitioners, and policymakers, including parents, teachers, 
     principals, and superintendents, experts in technology and 
     the applications of technology to education, representatives 
     of distance learning consortia, representatives of 
     telecommunications partnerships receiving federal assistance 
     and providers of technology services and products. In 
     addition, the plan should describe the manner in which the 
     Secretary will work with and promote the exchange of 
     information among educators, State and local educational 
     agencies, and appropriate representatives of the private 
     sector, including the Universal Service Administrative 
     Company, and other relevant entities on the effective use of 
     technology in improving teaching, academic achievement and 
     technology literacy. The bill requires the Secretary to 
     report on joint activities regarding educational technology 
     of the Department of Education and other federal agencies, 
     and the Conferees intend that all relevant federal agencies 
     be involved. The plan must be published in a form readily 
     accessible to the public and submitted to the President and 
     the House Committee on Education and the Workforce and the 
     Senate Committee on Health, Education, Labor and Pensions.
       78. Although both the House bill and Senate amendment 
     reauthorize the Ready To Learn program, each does it 
     differently.
       HR/SR with an amendment to strike all language and insert 
     the following:

     ``SEC. 11202. READY TO LEARN.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to or enter into contracts or cooperative agreements 
     with eligible entities described in paragraph (3) to--
       ``(A) develop, produce, and distribute educational and 
     instructional video programming for preschool and elementary 
     school children and their parents in order to facilitate 
     student academic achievement.

[[Page 25887]]

       ``(B) facilitate the development directly, or through 
     contracts with producers of children and family educational 
     television programming, of educational programming for 
     preschool and elementary school children; and accompanying 
     support materials and services that promote the effective use 
     of such programming;
       ``(C) facilitate the development of programming and digital 
     content especially designed for nationwide distribution over 
     public television stations' digital broadcasting channels and 
     the Internet, containing Ready to Learn-based children's 
     programming and resources for parents and caregivers;
       ``(D) enable eligible entities to contract with entities 
     (such as public telecommunications entities) so that programs 
     developed under this section are disseminated and distributed 
     to the widest possible audience appropriate to be served by 
     the programming; and by the most appropriate distribution 
     technologies; and
       ``(E) develop and disseminate education and training 
     materials, including interactive programs and programs 
     adaptable to distance learning technologies that are designed 
     to (i) promote school readiness; and (ii) promote the 
     effective use of materials developed under subparagraphs (B) 
     and (C) among parents, teachers, Head Start providers, Even 
     Start providers, providers of family literacy services, child 
     care providers, early childhood development personnel, 
     elementary school teachers, public libraries, and after-
     school program personnel caring for preschool and elementary 
     school children.
       ``(2) Availability.--In making such grants, contracts, or 
     cooperative agreements under this section, the Secretary 
     shall ensure that eligible entities make programming widely 
     available, with support materials as appropriate, to young 
     children, their parents, child care workers, and Head Start 
     providers, Even Start providers, and providers of family 
     literacy services to increase the effective use of such 
     programming.
       ``(3) Eligible entities.--To be eligible to receive a grant 
     under this subsection, an entity shall be a public 
     telecommunications entity which is able--
       ``(A) to demonstrate a capacity for the development and 
     national distribution of educational and instructional 
     television programming of high quality which is accessible by 
     a large majority of disadvantaged preschool and elementary 
     school children;
       ``(B) to demonstrate--
       ``(i) a capacity to contract with the producers of 
     children's television programming for the purpose of 
     developing educational television programming of high 
     quality;
       ``(ii) consistent with the entity's mission and nonprofit 
     nature, a capacity to negotiate such contracts in a manner 
     which returns to the entity an appropriate share of any 
     ancillary income from sales of any program-related products; 
     and
       ``(iii) a capacity to localize programming and materials to 
     meet specific State and local needs and provide educational 
     outreach at the local level.
       ``(4) Coordination of Activities.--An entity receiving a 
     grant, contract, or cooperative agreement from the Secretary 
     under this section shall work with the Secretary and the 
     Secretary of Health and Human Services to--
       ``(A) maximize the utilization of quality educational 
     programming by preschool and elementary school children, and 
     make such programming widely available to federally funded 
     programs serving such populations; and
       ``(B) coordinate with Federal programs that have major 
     training components for early childhood development, 
     including programs under the Head Start Act and Even Start, 
     and State training activities funded under the Child Care 
     Development Block Grant Act of 1990, regarding the 
     availability and utilization of materials developed under 
     paragraph (1)(E) to enhance parent and child care provider 
     skills in early childhood development and education.
       ``(b) Applications.--Each entity desiring a grant, 
     contract, or cooperative agreement under subsection (a) shall 
     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       (c) Reports and Evaluation.--
       ``(1) Annual report to secretary.--An eligible entity 
     receiving funds under this section shall prepare and submit 
     to the Secretary an annual report which contains such 
     information as the Secretary may require. At a minimum, the 
     report shall describe the program activities undertaken with 
     funds provided under subsection (a), including--
       ``(A) the programming that has been developed directly or 
     indirectly by the eligible entity, and the target population 
     of the programs developed;
       ``(B) the support and training materials that have been 
     developed to accompany the programming, and the method by 
     which such materials are distributed to consumers and users 
     of the programming;
       ``(C) the means by which programming developed under this 
     section has been distributed, including the distance learning 
     technologies that have been utilized to make programming 
     available and the geographic distribution achieved through 
     such technologies; and
       ``(D) the initiatives undertaken by the eligible entity to 
     develop public-private partnerships to secure non-Federal 
     support for the development, distribution, and broadcast of 
     educational and instructional programming.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit to the relevant committees of Congress a biannual 
     report which includes--
       (A) a summary of activities assisted under subsection (a);
       ``(B) a description of the education and training materials 
     made available under subsection (a)(1)(E), the manner in 
     which outreach has been conducted to inform parents and child 
     care providers of the availability of such materials, and the 
     manner in which such materials have been distributed in 
     accordance with such subsection.
       ``(d) Administrative Costs.--With respect to the 
     implementation of this section, eligible entities receiving a 
     grant, contract, or cooperative agreement from the Secretary 
     may use not more than 5 percent of the amounts received under 
     such section for the normal and customary expenses of 
     administering the grant, contract, or cooperative agreement.
       ``(e) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     carry out this section, such sums for fiscal year 2002, and 
     such sums as may be necessary for each of the 5 succeeding 
     fiscal years.
       ``(2) Funding rule.--Not less than 60 percent of the 
     amounts appropriated under subsection (a) for each fiscal 
     year shall be used to carry out subparagraphs (B), (C), and 
     (D) of subsection (a)(1).''
       79. The House bill combines the Ready To Learn program with 
     the Telecommunications Demonstration Project for Mathematics 
     and a new digital content allowable use of funds for a total 
     authorization level of $24.5 million. The Secretary is only 
     required to fund the Ready To Learn program. Under the Senate 
     amendment, the Ready To Learn program and the former 
     Telecommunications Demonstration Project for Mathematics, 
     renamed Teacherline, are two separate programs. Ready To 
     Learn is authorized at $50 million and Teacherline, which 
     includes digital content, is authorized at $45 million.
       HR/SR with an amendment to move Ready to Teach to Subpart 8 
     of Title V, Part D, amended to read as follows:

     ``SEC. 11252. READY TO TEACH.

       (a) Grants Authorized.--The Secretary is authorized to make 
     grants to a nonprofit telecommunications entity, or 
     partnership of such entities, for the purpose of carrying out 
     a national telecommunications-based program to improve 
     teaching in core curriculum areas. The program shall be 
     designed to assist elementary school and secondary school 
     teachers in preparing all students for achieving challenging 
     State academic content and student academic achievement 
     standards in core curriculum areas.
       ``(b) Programming.--The Secretary is also authorized to 
     award grants to eligible entities described in section 
     11255(b) to develop, produce, and distribute innovative 
     educational and instructional video programming that is 
     designed for use by kindergarten through grade 12 schools and 
     based on challenging State academic content and student 
     academic achievement standards. In making the grants, the 
     Secretary shall ensure that eligible entities enter into 
     multiyear content development collaborative arrangements with 
     State educational agencies, local educational agencies, 
     institutions of higher education, businesses, or other 
     agencies and organizations.

     ``SEC. 11253. APPLICATION REQUIRED.

       ``(a) In General.--Each nonprofit telecommunications 
     entity, or partnership of such entities, desiring a grant 
     under section 11252(a) shall submit an application to the 
     Secretary. Each such application shall--
       ``(1) demonstrate that the applicant will use the public 
     broadcasting infrastructure, the Internet, and school digital 
     networks, where available, to deliver video and data in an 
     integrated service to train teachers in the use of materials 
     and learning technologies for achieving challenging State 
     academic content and student academic achievement standards;
       ``(2) ensure that the project for which assistance is 
     sought will be conducted in cooperation with appropriate 
     State educational agencies, local educational agencies, and 
     State or local nonprofit public telecommunications entities;
       ``(3) ensure that a significant portion of the benefits 
     available for elementary schools and secondary schools from 
     the project for which assistance is sought will be available 
     to schools of local educational agencies which have a high 
     percentage of children counted for the purpose of part A of 
     title I; and
       ``(4) contain such additional assurances as the Secretary 
     may reasonably require.
       ``(b) Sites.--In approving applications under section 
     11252(a), the Secretary shall ensure that the program 
     authorized by section 11252(a) is conducted at elementary 
     school and secondary school sites across the Nation.
       ``(c) Application.--Each eligible entity desiring a grant 
     under section 11252(b) shall

[[Page 25888]]

     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.

     ``SEC. 11254. REPORTS AND EVALUATION.

       ``An eligible entity receiving funds under section 11252(a) 
     shall prepare and submit to the Secretary an annual report 
     which contains such information as the Secretary may require. 
     At a minimum, the report shall describe the program 
     activities undertaken with funds received under section 
     11252(a), including--
       ``(1) the core curriculum areas for which program 
     activities have been undertaken and the number of teachers 
     using the program in each core curriculum area; and
       ``(2) the States in which teachers using the program are 
     located.

     ``SEC. 11255. DIGITAL EDUCATIONAL PROGRAMMING.

       ``(a) Awards.--The Secretary shall award grants under 
     section 11252(b) to eligible entities to facilitate the 
     development of educational programming that shall--
       ``(1) include student assessment tools to give feedback on 
     student performance;
       ``(2) include built-in teacher utilization and support 
     components to ensure that teachers understand and can easily 
     use the content of the programming with group instruction or 
     for individual student use;
       ``(3) be created for, or adaptable to, challenging State 
     academic content standards and student academic achievement 
     standards; and
       ``(4) be capable of distribution through digital 
     broadcasting and school digital networks.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under section 11252(b), an entity shall be a local public 
     telecommunications entity as defined by section 397(12) of 
     the Communications Act of 1934 that is able to demonstrate a 
     capacity for the development and distribution of educational 
     and instructional television programming of high quality.
       ``(c) Competitive Basis.--Grants under section 11252(b) 
     shall be awarded on a competitive basis as determined by the 
     Secretary.
       ``(d) Duration.--Each grant under section 11252(b) shall be 
     awarded for a period of 3 years in order to allow time for 
     the creation of a substantial body of significant content.

     ``SEC. 11256. MATCHING REQUIREMENT.

       ``Each eligible entity desiring a grant under section 
     11252(b) shall contribute to the activities assisted under 
     section 11252(b) non-Federal matching funds equal to not less 
     than 100 percent of the amount of the grant. Matching funds 
     may include funds provided for the transition to digital 
     broadcasting, as well as in-kind contributions.

     ``SEC. 11257. ADMINISTRATIVE COSTS.

       ``With respect to the implementation of section 11252(b), 
     entities receiving a grant from the Secretary may use not 
     more than 5 percent of the amounts received under the grant 
     for the normal and customary expenses of administering the 
     grant.''
       80. The Senate amendment, but not the House bill, includes 
     extensive findings for both programs.
       SR
       81. The House bill, but not the Senate amendment, further 
     streamlines language contained in current law.
       HR/SR (see note 78-79).
       82. The House bill, but not the Senate amendment, requires 
     eligible applicants to demonstrate, consistent with the 
     entity's mission and nonprofit nature, a capacity to 
     negotiate contracts in a manner, which returns to the entity 
     an appropriate share of any ancillary income from sales of 
     any program-related products.
       SR
       83. The Senate amendment, but not the House bill, restores 
     the Community Technology Centers program. However, section 3 
     in the House bill includes one-year continuation of grants 
     language.
       HR with an amendment to move redrafted provision to Subpart 
     11 of Title V, Part D (FIE).
       84. The Senate amendment, but not the House bill, restores 
     the Preparing Tomorrow's Teachers To Use Technology program. 
     However, section 3 in the House bill includes one-year 
     continuation of grants language.
       HR with an amendment to re-designate the ``Preparing 
     Tomorrow's Teachers to Use Technology'' program to Title II 
     of the Higher Education Act and authorize such sums as may be 
     necessary for FY 2002 and 2003. (Need to add continuation 
     language for current grantees.)
       85. Under section 2242, only (c) Technology Preparation 
     applies to the technology portion of this bill.
       LC
       86. The Senate amendment, but not the House bill, restores 
     the Star Schools Program. However, section 3 in the House 
     bill includes one-year continuation of grants language.
       HR with an agreement to move redrafted provision to Subpart 
     7 of Title V, Part D (FIE).
       87. The Senate amendment, but not the House bill, includes 
     a new Rural Technology Education Academies program.
       SR with an agreement to insert the following Report 
     Language:
       Report Language:
       The Conferees recognize that schools in rural areas and 
     small towns often require additional assistance to implement 
     an advanced technology curriculum. Due to the isolated nature 
     of many small, rural towns, technology can offer rural 
     students academic opportunities that they otherwise would not 
     have. Ensuring that rural students are technologically 
     literate is vitally important because it improves academic 
     performance and helps students participate in the highly 
     competitive economy of the 21st Century.
       88. The House bill, but not the Senate amendment, 
     redesignated the Internet filtering language in title III of 
     current law to title V, Part B.
       LC
       89. The Senate amendment, but not the House bill, includes 
     this provision of incentives language.
       SR (See also Note 65)

                  Title V, Part C--Character Education

                    (New Title V, Part D, Subpart 3)

       1. House bill authorizes ``Character Education'' under 
     Title V, Part C. Senate amendment authorizes ``Partnerships 
     in Character Education'' as Subpart 5 of Part F of Title XVI.
       HR/SR with an agreement to move to Subpart 3 of Title V, 
     Part D (FIE).
       2. Senate amendment, but not House bill, contains a short 
     title.
       SR
       3. House bill refers to ``Character Education Program'' and 
     Senate amendment refers to ``Partnerships in Character 
     Education Program.''
       HR
       4. House bill authorizes the Secretary to make grants to 
     State educational agencies, local educational agencies, or 
     consortia of such agencies for the design and implementation 
     of character education programs. Senate amendment authorizes 
     the Secretary to award grants to eligible entities for the 
     design and implementation of character education programs.
       HR
       5. Senate amendment contains no similar provision.
       SR with an amendment to strike ``for the core academic 
     subjects'' in (A).
       6. Senate amendment contains no similar provision.
       SR
       7. House bill authorizes 5-year grants. Senate amendment 
     authorizes 3-year grants.
       SR
       8. Senate amendment, but not House bill, sets minimum grant 
     amount for eligible entities at $500,000.
       HR
       9. Senate amendment, but not House bill, defines eligible 
     entity.
       HR with an amendment to strike ``another'' and insert ``one 
     or more'' and strike ``organization and entity'' and insert 
     ``organizations or entities'' in (D).
       10. House bill and Senate amendment allow each agency or 
     consortium receiving assistance under this section to 
     contract with outside sources, including institutions of 
     higher education and private and nonprofit organizations, for 
     the purposes of evaluating the program; and measuring the 
     success of such program in fostering the elements of 
     character.
       SR
       11. House bill, but not Senate amendment, provides that 
     outside sources may include religious organizations and adds 
     language to the evaluation for measuring the integration of 
     such program into the curriculum and teaching methods of 
     schools.
       SR with an amendment to strike ``(including religious 
     organizations)'' in House (1); LC strike ``agency or 
     consortium'' and insert ``eligible entity'' throughout this 
     Part.
       12. House bill, but not Senate amendment, allows each 
     agency or consortium receiving assistance under this section 
     to contract with outside sources, including institutions of 
     higher education and private and nonprofit organizations 
     (including religious organizations), for assistance in 
     developing secular curricula, materials, teacher training, 
     and other activities related to character education; and 
     integrating secular character education into the curriculum 
     and teaching methods of schools where the program is carried 
     out.
       SR with an amendment to strike ``(including religious 
     organizations)'' in House (2).
       13. Similar provision.
       SR with an agreement to add the following report language:
       The Conferees note that when selecting elements of 
     character the applicants may use a scientifically based 
     coherent, established classification system with standardized 
     definitions whose elements are grounded in reliable and valid 
     measures, and whose elements contribute to human thriving, 
     productivity, well-being, and social harmony.
       14. Similar provision.
       LC
       15. House bill, but not Senate amendment, requires the 
     agency or consortium receiving assistance to consider the 
     views of the parents or guardians of the students to be 
     taught under the program.
       SR with an amendment to strike ``or guardians'' after 
     ``parents'' and insert ``and the students,'' after ``of the 
     students''.
       16. Identical provision.
       LC

[[Page 25889]]


       17. Identical provision.
       LC
       18. Identical provision.
       LC
       19. Similar provision.
       HR
       20. Identical provision.
       LC
       21. Similar provision.
       HR
       22. House bill, but not Senate amendment, includes 
     ``giving'' as an example element of character.
       SR
       23. House bill contains no similar provision.
       HR with an amendment to strike ``10'' and insert ``3'' in 
     (1).
       24. Similar provision.
       LC
       25. Under House bill, but not Senate amendment, the 
     application must demonstrate that the program for which the 
     assistance is sought has clear goals and objectives that are 
     based on scientifically based research.
       SR
       26. Under Senate amendment, but not the House bill, the 
     application must contain a description of any partnerships or 
     collaborative efforts among the organizations and entities of 
     the eligible entity.
       HR
       27. Similar provision.
       SR
       28. Senate amendment, but not House bill, requires 
     applications to describe how parents, students, and other 
     members of the community will be involved in the design and 
     implementation of the program and how the eligible entity 
     will work with the larger community to increase the reach and 
     promise of the program.
       HR
       29. Senate amendment, but not House bill, requires 
     applications to describe the curriculum and instructional 
     practices that will be used or developed.
       HR
       30. Senate amendment, but not House bill, requires 
     applications to describe the methods of teacher training and 
     parent education that will be used or developed.
       HR
       31. House bill requires applications to describe how the 
     program will be linked to broader educational reforms that 
     are being instituted by the applicant or its partners; and 
     applicable State academic content standards for student 
     achievement. Senate amendment requires applications to 
     describe how the program will be linked to other efforts in 
     the schools to improve student performance.
       SR with an amendment to strike ``applicable'' in (ii).
       32. House bill contains no similar provision.
       HR with an amendment to strike ``goals and'' in (E)(i).
       33. House bill provides that in selecting agencies or 
     consortia to receive assistance under this section from among 
     the applicants for such assistance, the Secretary shall use a 
     peer review process that includes the participation of 
     experts in the field of character education. Senate amendment 
     provides that the Secretary shall select, through peer 
     review, eligible entities (see (f)(1) below).
       SR with an amendment to insert ``and development.'' after 
     ``character education'' in (A).
       34. Similar provision.
       SR
       35. Senate amendment, but not House bill, requires the 
     Secretary to consider the extent to which the program fosters 
     character in students and the potential for improved student 
     performance.
       HR
       36. Similar provision.
       HR
       37. Senate amendment, but not House bill, requires the 
     Secretary to consider the quality of the plan for measuring 
     and assessing success.
       HR
       38. Similar provision.
       LC strike ``goals'' and insert ``objectives''.
       39. House bill contains no similar provision.
       HR
       40. House bill requires the Secretary to ensure, to the 
     extent practicable, that the programs assisted under this 
     section are equitably distributed among the geographic 
     regions of the United States, and among urban, suburban, and 
     rural areas. Senate amendment requires the Secretary to 
     ensure, to the extent practicable, that programs serve 
     different areas of the Nation, including urban, suburban, and 
     rural areas; and serve schools that serve minorities, Native 
     Americans, students of limited-English proficiency, 
     disadvantaged students, and students with disabilities.
       SR
       41. House bill requires each agency or consortium to submit 
     to the Secretary, not later than 5 years after the initial 
     grant, a report containing an evaluation of each program 
     assisted. The report must also evaluate the degree to which 
     each program attained the goals and objectives for the 
     program. Senate amendment requires each eligible entity 
     receiving a grant to submit to the Secretary a comprehensive 
     evaluation of the program, including the impact on students, 
     teachers, administrators, parents, and others by the second 
     year of the program and not later than 1 year after 
     completion of the grant period.
       HR with an amendment to insert ``end of the'' before 
     ``second year'' in (A)(i).
       42. Senate amendment contains no similar provision.
       HR
       43. House bill contains no similar provision.
       HR with an amendment to insert the following language:
       ``(2) National research, dissemination, and evaluation--
       ``(A) In general.--The Secretary is authorized to make 
     grants to, or enter into contracts or cooperative agreements 
     with, State or local educational agencies, institutions of 
     higher education, tribal organizations, or other public or 
     private agencies or organizations to carry out research, 
     development, dissemination, technical assistance, and 
     evaluation activities that support or inform State and local 
     character education programs. The Secretary shall reserve not 
     more than 5 percent of the funds made available under this 
     section to carry out this paragraph.
       ``(B) Uses.--Funds made available under subparagraph (A) 
     may be used--
       ``(i) to conduct research and development activities that 
     focus on matters such as--

       ``(I) the extent to which schools are undertaking character 
     education initiatives;
       ``(II) the effectiveness of instructional models for all 
     students, including students with physical and mental 
     disabilities;
       ``(III) materials and curricula that can be used by 
     programs in character education;
       ``(IV) models of professional development in character 
     education;
       ``(V) the development of measures of effectiveness for 
     character education programs which may include the factors 
     described in paragraph (3); and
       ``(VI) the effectiveness of State and local programs 
     receiving funds under this section.

       ``(ii) to provide technical assistance to State and local 
     programs, particularly on matters of program evaluation;
       ``(iii) to conduct evaluations of State and local programs 
     receiving funding under this section which may be conducted 
     by a national clearinghouse under (B)(iv); and
       ``(iv) to compile and disseminate, through a national 
     clearinghouse or other approaches--

       ``(I) information on model character education programs;
       ``(II) information about quality character education 
     materials and curricula;
       ``(III) research findings in the area of character 
     education and character development; and
       ``(IV) any other information that will be useful to 
     character education program participants, educators, parents, 
     administrators, and others nationwide.

       ``(C) Priority.--In carrying out national activities under 
     this paragraph, the Secretary shall seek to enter into 
     partnerships with national, nonprofit character education 
     organizations and institutions of higher education with 
     expertise and successful experience in implementing character 
     education programs that have had an effective impact on 
     schools, students (including students with disabilities), and 
     teachers or character education program evaluation and 
     research. In carrying out national activities under (B)(iv), 
     the Secretary shall seek to enter into partnership with a 
     national, nonprofit character education organization that 
     will disseminate information about the range of model 
     character education programs, materials, curricula, and other 
     information useful to educators, parents, administrators, and 
     others nationwide.
       ``(D) Report.--Each agency, entity, or organization that 
     receives a grant under this paragraph shall submit an annual 
     report to the Secretary that--
       ``(i) describes the progress of the grantee in carrying out 
     research, development, dissemination, evaluation, and 
     technical assistance under this paragraph;
       ``(ii) identifies unmet and future information needs in the 
     field of character education; and
       ``(iii) if appropriate, describes the progress of the 
     grantee in carrying out the requirements of (B)(iv), 
     including a listing of--

       ``(I) the number of requests for information received by 
     the grantee in the course of carrying out such requirements;
       ``(II) the types of organizations making such requests; and
       ``(III) the types of information requested.

       ``(3) Factors.--Factors which may be considered in 
     evaluating the success of programs funded under this section 
     may include--
       ``(A) discipline issues;
       ``(B) student performance;
       ``(C) participation in extracurricular activities;
       ``(D) parental and community involvement;
       ``(E) faculty and administration involvement;
       ``(F) student and staff morale; and
       ``(G) overall improvements in school climate for all 
     students, including students with physical and mental 
     disabilities.''
       44. Senate amendment contains no similar provision.

[[Page 25890]]

       SR with an amendment to insert the following language:
       ``(g) Permissive Match.--
       ``(1) In general.--The Secretary may require eligible 
     entities to match funds awarded under this subpart with non-
     Federal funds, except that such match may not exceed the 
     amount of the grant award.
       ``(2) Sliding scale.--The amount of a match under paragraph 
     (1) shall be established based on a sliding fee scale that 
     takes into account--
       ``(A) the poverty of the population to be targeted by the 
     eligible entity; and
       ``(B) the ability of the eligible entity to obtain such 
     matching funds.
       ``(3) In-kind contributions.--The Secretary shall permit 
     eligible entities to match funds in whole or in part in the 
     form of in-kind contributions.
       ``(4) Consideration.--Notwithstanding this subsection, the 
     Secretary shall not consider an eligible entity's ability to 
     match funds when determining which eligible entities will 
     receive awards under this subpart.''
       45. House bill authorizes $50 million for FY 02 and such 
     sums as may be necessary for each of FY 03 through FY 06. 
     Senate amendment authorizes such sums as may be necessary for 
     Part F for FY 02 and for each of the 6 succeeding fiscal 
     years (Character Education is Subpart 5 of Part F).
       HR/SR (no authorization because moved to FIE).

                      Title V, Part D--Counseling

                    (New Title V, Part D, subpart 2)

       1. House bill contains findings. Senate amendment contains 
     no similar provision.
       HR
       2. House bill and Senate amendment contain similar 
     provisions.
       SR
       3. House bill and Senate amendment contain similar 
     provisions. House bill contains a priority for applicants 
     that provide information on their ratios of students to 
     service providers.
       SR
       4. House bill and Senate amendment contain similar 
     provisions.
       LC
       5. House bill and Senate amendment contain similar 
     provisions.
       LC
       6. House bill and Senate amendment contain similar 
     provisions.
       LC
       7. Senate bill does not contain a similar provision.
       SR
       8. House bill does not contain an application requirement.
       HR with an amendment in (b)(2)(A) to strike ``personal, 
     social . . . development'' and insert ``counseling''; to 
     strike (b)(2)(D) and insert ``describe how the local 
     educational agency will involve community groups, social 
     service agencies, and other public and private entities in 
     collaborative efforts to enhance the program and promote 
     school-linked services integration''; to strike (b)(2)(E); in 
     (b)(2)(H) strike all after ``to supplement'' and insert ``and 
     not supplant other Federal, State, or local funds used for 
     providing school-based counseling and mental health services 
     to students; and''; to strike (b)(2)(I) and insert ``assure 
     that the applicant will appoint an advisory board composed of 
     interested parties, including parents, teachers, school 
     administrators, counseling services providers under (c)(4), 
     and community leaders to advise the local educational agency 
     on the design and implementation of the program''
       9. House bill and Senate amendment contain similar 
     provisions, with those provisions aligned:
       House bill mentions ``counseling and educational'' 
     services.
       Senate amendment mentions ``personal, social, emotional, 
     and educational'' services.
       House bill includes ``child and adolescent psychiatrists.''
       House bill allows services to be provided in settings that 
     meet the range of needs. Senate amendment provides for 
     specific settings.
       House bill provides for training for teachers to identify 
     and intervene with students at risk of violent behavior. 
     Senate amendment includes other pupil services personnel, 
     teachers, and instructional staff.
       House includes child and adolescent psychologists as 
     providers.
       Senate amendment includes institutions of higher education, 
     business, labor organizations, and ``promotes school-linker 
     services integration.''
       House bill provides for specified ratios of students to 
     providers. Senate amendment contains no similar provision.
       House bill mentions that providers must spend a 
     ``majority'' of their time in activities directly related to 
     counseling. Senate amendment contains no similar provision.
       SR with an amendment:
       Insert Senate (c)(1):
       In House (4) strike ``and'' before ``child and adolescent 
     psychiatrists'' and insert ``or other qualified 
     psychologists'' after ``child and adolescent psychiatrists'';
       Strike House (7) and insert ``include in-service training 
     appropriate to the activities funded under this Act for 
     teachers, instructional staff, and appropriate school 
     personnel, including in-service training in appropriate 
     identification and early intervention techniques by school 
     counselors, school social workers, school psychologists, 
     child and adolescent psychiatrists and other qualified 
     psychologists;
       In House (9) after ``program'' insert ``and promote school-
     linked services integration''
       Report Language:
       A comprehensive counseling program addresses the individual 
     and educational needs of students in a variety of settings in 
     the school and is well-balanced among classroom group and 
     small group counseling, individual counseling, and 
     consultation with parents, teachers, administrators, and 
     other appropriate school personnel. The program involves 
     collaborative efforts with community groups, social service 
     agencies and other public and private entities to enhance the 
     program and promote school-linked service integration.
       10. House bill limits administration expenses to 3%.
       Senate amendment limits administration expenses to 5%.
       SR with an amendment to strike ``3'' and insert ``4''
       11. House bill and Senate amendment contain similar 
     provisions, with those provisions aligned.
       House bill includes a definition of ``child and adolescent 
     psychiatrist.''
       Senate amendment includes a definition of ``supervisor.''
       SR with an amendment to insert in (2)(B) ``in school 
     psychology'' after ``certification''. Insert ``other 
     qualified psychologist means an individual who has 
     demonstrated competence in counseling children in a school 
     setting and who is licensed in psychology by the State in 
     which the individual works; and practices in the scope of the 
     individual's education, training, and experience with 
     children in school settings;
       12. House bill requires a report on ratio of student to 
     providers within one year.
       Senate amendment requires a report on progress at the end 
     of grant.
       SR with an amendment to insert ``a report evaluating the 
     programs assistant pursuant to each grant under this subpart 
     and'' after ``publicly available''.
       13. House bill contains no similar provision.
       SR
       14. House bill and Senate amendment contain similar 
     provisions.
       HR/SR with an agreement to move to Subpart 2 of Title V, 
     Part D (FIE).
       15. House bill contains no similar provision.
       HR with an amendment to set the trigger at $40 million.

                       Title V, Part E--Mentoring

                   (New IV, Part A, within subpart 2)

       1. House bill and Senate amendment contain similar 
     provisions.
       SR with an amendment to strike ``an individual'' and insert 
     ``a responsible adult, post-secondary school student, or 
     secondary school student'' in (2).
       2. House bill and Senate amendment contain similar 
     provisions.
       SR with an amendment to strike ``caring individual'' and 
     insert ``mentor;'' in (1).
       3. House bill and Senate amendment contain similar 
     provisions, but the House bill allows secondary students to 
     serve as mentors along with adults.
       SR with an amendment in (a)(1) to strike ``responsible 
     adults or students in secondary school'' and insert 
     ``mentors''.
       4. House bill and Senate amendment contain similar 
     provisions.
       LC
       5. House bill and Senate amendment contain similar 
     provisions.
       LC
       6. House bill and Senate amendment contain similar 
     provisions, but the House bill allows secondary students to 
     serve as mentors along with adults.
       LC
       Report Language:
       The Conferees wish to recognize the expertise and 
     experience of mentoring organizations, such as Big Brothers 
     Big Sisters of America, Camp Fire Boys and Girls, Boys and 
     Girls Clubs, National Mentoring Partnership, the Young Men's 
     Christian Association, National Association for the 
     Advancement of Colored People, Aspira, League of United Latin 
     American Citizens, 100 Black Men of America and National 4-H 
     Council, in providing training and technical support for 
     mentoring programs. These organizations have a long history 
     of supporting mentoring for youth and have established 
     networks of mentoring organizations.
       7. House bill and Senate amendment contain similar 
     provisions.
       LC
       8. House bill and Senate amendment contain similar 
     provisions.
       LC
       9. House bill and Senate amendment contain similar 
     provisions.
       LC
       10. House bill and Senate amendment contain similar 
     provisions.
       LC
       11. House bill and Senate amendment contain similar 
     provisions.
       LC
       12. House bill and Senate amendment contain similar 
     provisions.

[[Page 25891]]

       LC
       13. House bill and Senate amendment contain similar 
     provisions.
       LC
       14. House bill and Senate amendment contain similar 
     provisions.
       HR/SR to delete (Staff to write letter to GAO).
       15. House bill and Senate amendment contain similar 
     provisions.
       HR/SR to strike both and treat program as an allowable 
     activity under the national authority in the Safe and Drug-
     Free Schools and Communities Act
       16. The Senate amendment requires the Secretary to make 
     grants to Big Brothers/Big Sisters to provide technical 
     assistance to grant recipients under (a) through mentoring 
     development centers located in various cities in the US. 
     Funds, in amounts determined by the Secretary, would come 
     from the authorization for Part G. House bill contains no 
     similar provision.
       SR

                          Title VI--Impact Aid

                            (New Title VIII)

       1. The House bill and the Senate bill have similar 
     provisions make a small modification to the ``hold harmless'' 
     formula for distributing funds under Section 8002 (payments 
     for federal acquisition of real property).
       SR
       In the amendments to paragraph (1) of section 8002(h), the 
     House bill refers to being determined pursuant to ``statute'' 
     while the Senate amendment refers to ``law.''
       2. The House bill, but not the Senate bill, contains a 
     provision to extend the filing deadline for a school district 
     in Colorado that missed both: (1) its FY 1999 Section 8002 
     application deadline, and (2) a statutory exemption to that 
     exception deadline granted as part of the FY 2001 Department 
     of Education Appropriations Act. The district would be paid 
     from FY 2001 funds.
       SR with an amendment to insert the following language:
       ``(b) Applications for Payment.--
       ``(1) Warner public schools, muskogee county, oklahoma.--
     Notwithstanding any other provision of law, the Secretary of 
     Education shall treat as timely filed an application under 
     section 8003 (20 U.S.C. 7703) from Warner Public Schools, 
     Muskogee County, Oklahoma, for a payment for fiscal year 
     2002, and shall process that application for payment, if the 
     Secretary has received the fiscal year 2002 application not 
     later than 30 days after the date of the enactment of this 
     Act.
       ``(2) Pine point school, school district 25, minnesota.--
     Notwithstanding any other provision of law, the Secretary 
     shall treat as timely filed an application under section 8003 
     (20 U.S.C. 7703) from Pine Point School, School District 25, 
     Minnesota, for a payment for fiscal year 2000, and shall 
     process that application for payment, if the Secretary has 
     received the fiscal year 2000 application not later than 30 
     days after the date of the enactment of this Act.''
       3. This provision is similar to language regarding the 
     change to Section 8002 (h)(4)(B). This is addressed in 
     Section 601 (House Bill). See note 1.
       SR
       4. The Senate bill, but not the House bill provides for an 
     additional year of eligibility as ``federal property'' at a 
     reduced payment level, for property that the federal 
     government transfers to a non-federal entity.
       HR
       5. Both the House and Senate bills contain identical 
     language expanding the number of small school districts which 
     are guaranteed a 40 percent LOT payment.
       HR/SR--to be taken out.
       6. Both bills contain identical language modifying the 
     definition of a ``heavily impacted school district'' to 
     include school districts that have no taxing authority and 
     whose boundaries are coterminous with those of an island held 
     in trust by the federal government as being eligible for 
     ``heavily impacted'' payments.
       LC
       7. Using different language, both the House bill and the 
     Senate amendment amend Section 8007(b) of current law. The 
     House provisions refer to ``School Facility Emergency and 
     Modernization Grants,'' while the Senate amendment refers to 
     ``School Facility Modernization Grants.''
       SR
       8. Both the House bill and Senate amendment reserve 60 
     percent of the amount appropriated under subsection 8014(e) 
     for competitive construction grants. The House bill directs 
     the Secretary to award grants to LEAs for emergency repairs 
     of school facilities as well as for the modernization of 
     school facilities. The Senate bill directs the Secretary to 
     make grants to LEAs only for the modernization of school 
     facilities, but has a reservation of funds for emergency 
     repairs in a different part of the bill (see note 9).
       SR
       9. The Senate amendment, but not the House bill, allocates 
     10 percent of the funds reserved for modernization for grants 
     to LEAs described in paragraph (2)(A) (federal property), 45 
     percent for LEAs described in paragraph (2)(B) (Indian land), 
     and 45 percent for LEAs described in paragraph (2)(C) 
     (civilian ``a'' and military). The Senate amendment further 
     reserves 10 percent of the funding allocated to Indian lands 
     districts, and 10 percent of the funding allocated to 
     Military districts for emergency grants which are not subject 
     to specific award criteria.
       SR
       10. The House bill, but not the Senate amendment, requires 
     the Secretary to give priority to grants for emergency 
     situations when making awards under this subsection.
       SR
       11. The Senate amendment, but not the House bill, allows 
     funds reserved for Indian land or military districts to be 
     used for modernization of schools on or near federal 
     property, but only if the school itself has 25 percent of its 
     average daily attendance composed of federally impacted 
     students.
       SR with an amendment to allow individual schools that would 
     otherwise qualify for an emergency grant or modernization 
     grant but are in a school districts that fails to qualify, to 
     apply for such a grant as if they were a ``expanded 
     definition school district'' (see description of structure 
     below). In order to qualify under this provision, a school 
     must be at least 40 percent impacted, and be part of an LEA 
     that has no bonding capacity or that has used up at least 75 
     percent of their bonding capacity, and has an assessed value 
     of taxable property per student in the school district that 
     is in the lowest 50 percent of school districts within the 
     state.
       Note: Below is the policy and structure for construction; 
     final legislative language is still to be written:
       Overall structure--
       One pot for all qualifying entities to share;
       Emergency projects are funded first in the order of 
     severity with projects in LEAs that have no practical 
     capacity to issue bonds or limited capacity to issue bonds 
     (House definitions) funded first, and expanded definition 
     LEAs (those that don't meet House definition but meet the 
     definition below) funded second if money remains, and funded 
     only under the same criteria that apply to districts with 
     limited capacity to issue bonds.
       Modernization projects are funded if money remains after 
     all emergency applications are funded. The same criteria 
     apply for modernization grant and emergency grants. LEAs with 
     no practical capacity to issue bonds or limited capacity to 
     issue bonds (House definitions) are funded first, and 
     expanded definition LEAs (those that don't meet House 
     definition but meet definition below) are funded second if 
     money remains.
       Expanded definition districts are districts that are at 
     least 40 percent impacted, have used up to at least 75 
     percent of their bonding capacity, and have an assessed value 
     of taxable property per student in the school district that 
     is in the lowest 50 percent of school districts within the 
     state.
       Leg. Counsel to craft above language. May need some sort of 
     a special rule, or it might be better to just insert parts of 
     agreement into suitable sections of the bill.
       12. Both the House bill and the Senate amendment list 
     eligibility requirements.
       LC
       13. The House bill but not the Senate amendment lists 
     eligibility requirements for emergency grants. An LEA may be 
     eligible if it receives formula grants under subsection (a), 
     has an emergency condition which threatens the health or 
     safety of students and personnel, and meets one of three 
     conditions: (1) it has no practical capacity to issue bonds; 
     (2) it has a limited capacity to issue bonds with a 
     requirement that the LEA has used at least 75 percent of its 
     bonding capacity; or (3) it is a heavily impacted district.
       SR with amendment LC to craft language reflecting the 
     eligible pool as outlined in the policy above.
       14. The House bill, but not the Senate amendment, requires 
     that for an entity to be eligible for an emergency grant, 
     that it be eligible to receive formula grants for 
     construction under subsection (a).
       HR with amendment LC to craft language reflecting the 
     eligible pool as outlined in the policy above.
       15. Both the House bill and the Senate amendment list 
     eligibility requirements for Modernization Grants.
       LC
       16. The House bill, but not the Senate amendment states 
     that in order to receive a modernization grant, the LEA must 
     meet the same criteria as those eligible for an emergency 
     grant, except for having a school facility emergency, or must 
     qualify as a federal lands district. The Senate amendment 
     lists slightly different criteria with different placement 
     (see note 17).
       SR (per structure outlined in note 11).
       17. The House bill and the Senate amendment have identical 
     eligibility requirements for federal property districts.
       LC
       18. The Senate amendment provides that in order to be 
     eligible for a modernization grant, an LEA and the facility 
     to be modernized must be at least 25 percent impacted by 
     certain types of connected students.
       SR (per structure outlined in note 11).
       19. The House bill, requires that in order to be eligible 
     for a modernization grant, the LEA must have facility needs 
     resulting from actions of the federal government. The Senate 
     amendment requires this as a criteria for consideration by 
     the Secretary (see note 26).
       SR with an amendment to strike ``actions of the federal 
     government'' and insert in its place ``a federal presence''.
       20. The House bill, but not the Senate amendment, defines 
     the terms lack of practical capacity to issue bonds and 
     minimal capacity to issue bonds.

[[Page 25892]]

       SR (per structure outlined in note 11).
       LC--May need to recede with an amendment to define 
     districts that can receive funding only after those with 
     limited or no practical bonding capacity are funded.
       21. Both the House bill and the Senate amendment set forth 
     award criteria. The House bill sets forth criteria for both 
     emergency and modernization grants. The Senate bill requires 
     the Secretary to review applications from federal lands 
     districts, Indian lands districts, and military districts.
       LC
       Report Language:
       The Conference Report requires the Secretary to consider 
     the severity of the need for modernization, which may be 
     measured by factors such as overcrowding or the potential for 
     overcrowding. The conferees note that such overcrowding may 
     arise from housing privatization undertaken by the Department 
     of Defense.
       22. The House bill requires the Secretary to take into 
     account the ability of a school district to pay for either a 
     modernization project or an emergency project. The Senate 
     bill requires the Secretary to take into account the 
     districts ability to pay for modernization projects.
       SR
       23. The House bill, but not the Senate amendment, sets 
     forth the following criteria to measure an LEAs ability to 
     carry out a project, including its bonded indebtedness; its 
     assessed value of real property per student, compared to the 
     state average; the LEAs total tax rate for school purposes 
     compared to the state average; and funds available to the LEA 
     from other sources.
       SR
       24. Using different language, both the House bill and the 
     Senate amendment require the Secretary to consider the lack 
     of taxable property due to a federal presence and the impact 
     of federally connected children.
       SR
       25. Using different language, both the House bill and the 
     Senate amendment require the Secretary to consider the threat 
     that a condition poses to health or safety, and overcrowding 
     as evidenced by the use of portable facilities.
       SR with amendment to insert (D)(ii).
       26. The Senate amendment requires the Secretary to take 
     into account facility needs resulting from the federal 
     government. The House bill requires that facility needs 
     result from the federal government in order to be eligible 
     (see note 19).
       SR (per note 19).
       27. The House bill but not the Senate amendment requires 
     the Secretary to consider the LEAs inability to maximize the 
     use of technology or offer curriculum due to physical 
     facility limitations.
       SR
       28. Both the House bill and the Senate amendment require 
     the Secretary to consider the age of the facility to be 
     modernized.
       LC
       29. Using different language, both the House bill and the 
     Senate amendment provide additional award provisions.
       LC
       30. The House bill limits the amount of the cost of a 
     project that may be funded under this subsection to 50 
     percent for LEAs that have limited bonding capacity or that 
     qualify solely because they are heavily impacted. The Senate 
     amendment limits the federal share to 50 percent for all 
     projects.
       SR
       31. The House bill limits the amount an LEA may receive 
     under this subsection for LEAs having limited bonding 
     capacity or that qualify solely because they are heavily 
     impacted to $3 million over a 5-year period. The Senate 
     amendment limits the amount any LEA may receive to $5 million 
     over a 2-year period.
       HR/SR with an amendment to allow these districts to receive 
     up to $4 million in a 4-year period.
       32. The House bill allows the use of in-kind contributions 
     to meet the match required of LEAs. The Senate amendment has 
     a similar provision with different placement (see note 30).
       SR
       33. Both the House bill and the Senate amendment contain 
     certain prohibitions on the use of funds under this 
     subsection. These provisions are placed differently. The 
     House bill prohibits funds from being used for facilities for 
     which the LEA does not hold the title, or stadiums or other 
     facilities primarily used for events for which admission is 
     charged. The Senate amendment prohibits funds under this 
     subsection from being used for the acquisition of real 
     property, athletic and similar facilities for which admission 
     is charged, and requires that all projects carried out with 
     funds provided under this subsection to comply with relevant 
     environmental law and regulation.
       LC--merge the language from both bills.
       34. Using slightly different language, both the House bill 
     and the Senate amendment prohibit LEAs receiving funds under 
     this subsection from supplanting funds that would otherwise 
     be spent for facilities construction or modernization.
       LC
       35. The House bill but not the Senate amendment prohibits 
     emergency grants under this subsection from being used for 
     the replacement of an existing facility unless such 
     replacement is more cost effective than repair of the 
     existing facility.
       SR
       36. The House bill requires that emergency grants for which 
     funding is not available shall be considered in the following 
     year at the request of the LEA. The Senate amendment requires 
     that an eligible entity that applies for a grant which is not 
     funded shall have its grant application considered for the 
     following fiscal year. The Senate amendment places this 
     provision differently than the House bill.
       HR
       37. The House bill and the Senate amendment require LEAs 
     seeking a grant under this subsection to submit an 
     application to the Secretary.
       LC
       38. The House bill and the Senate amendment require 
     different information to be submitted to the Secretary. The 
     House bill requires applicants to submit information related 
     to the award criteria. In the case of emergency grants, it 
     requires a description of the hazard, and a signed statement 
     certifying the deficiency. In the case of a modernization 
     grant, the House bill requires an explanation for the need 
     for the project and the age of the facility, a description of 
     the project including a cost estimate, and a description of 
     ownership interest in the facility.
       LC--merge the lists of both bills.
       39. The Senate amendment requires the submission of a 
     listing of the facilities to be modernized and the percentage 
     of federally impacted children, a description of the 
     ownership of the property, a description of how the LEA meets 
     the award criteria, a description of the project, and a cost 
     estimate for the project.
       LC--merge the two.
       40. The Senate amendment requires LEAs applying for an 
     emergency grant to submit a signed statement certifying the 
     deficiency. This is similar to one of the provisions for 
     emergency grants under the House bill (see above).
       SR with an agreement to add report language.
       Report Language:
       The Conferees would urge the Department when awarding 
     grants under section 8007(b) of the Impact Aid Program that 
     every effort be made to insure that emergency grant 
     application requests from all eligible categories of school 
     districts are given equal consideration, subject to the 
     requirements of that subsection.
       41. The Senate amendment, but not the House bill, requires 
     the Secretary to make every effort to meet fully the needs of 
     Indian lands and Military Impacted school districts.
       SR
       42. The Senate amendment requires the Secretary to give 
     priority based on severity of emergency if more than one 
     grant application is received from an Indian lands or 
     military district. The priority is based upon severity of the 
     emergency and when the application was received. The house 
     bill contains an absolute priority for emergency situations 
     under subsection (b)(2).
       HR
       43. The House bill, but not the Senate amendment, requires 
     the Secretary to report annually to the appropriate 
     committees of Congress a justification of grants made under 
     this subsection for the previous fiscal year. The House bill 
     further defines the appropriate congressional committees.
       SR
       44. The House bill, but not the Senate amendment, increases 
     the authorization for appropriation for Impact Aid 
     construction to $150 million for FY 2002, and such sums as 
     necessary for the four succeeding fiscal years.
       SR
       45. Both the House bill and the Senate bill have virtually 
     identical language to clarify that Section 8009 (equalized 
     states) payments are exempt from state equalization. The 
     House bill, but not the Senate amendment, includes a 
     reference to section 8003(b)(2).
       SR
       46. Both the House bill and the Senate bill contain 
     language to authorize the program through 2006.
       SR with amendment to change word ``six'' to ``seven''.
       47. The House bill, but not the Senate bill contains 
     language to transfer and redesignate the program.
       LC
       48. The House bill, but not the Senate bill contains a 
     provision to provide that funds appropriated under the 
     current placement of the Impact Aid program in Title VIII of 
     the ESEA will be available under that program as redesignated 
     as Title VI.
       LC
       Report Language:
       Language was included in the FY 2001 National Defense 
     Authorization Act to reauthorize the Impact Aid program. As 
     part of the reauthorization, language was included in Section 
     8002(j) to authorize Section 8002 (payments relating to 
     federal acquisition of real property) funding for the 
     Centennial School District in Bucks County, Pennsylvania due 
     to their unique situation. The Centennial

[[Page 25893]]

     School District is the only school district in the nation 
     where the only military facility that was located entirely 
     within the boundaries of the school district was realigned as 
     a part of base realignment and closure (BRAC), but the school 
     district continues to educate the children of families who 
     continue to live on that property even though the parent(s) 
     are stationed at a federal facility located outside the 
     boundaries of the school district. The Commander of that 
     federal facility has stated that this current situation will 
     continue for the foreseeable future. By moving the language 
     of Section 8002(j) of the Impact Aid Program to Part D of 
     Title V, the Fund for the Improvement of Education (FIE), it 
     is not the intent of the conferees to in any way affect the 
     authorization for funding Section 8002(j) and in no way 
     minimizes the ability of members to seek funding for the 
     authorization on an annual basis.
       49. The House bill, but not the Senate bill contains 
     language regarding a Sense of Congress that the Impact Aid 
     program should be fully funded.
       HR

               Title VII--Flexibility and Accountability

                         (New Title VI, Part A)

       1. The House bill and the Senate amendment locate this part 
     regarding rewards and sanctions pertaining to educational 
     achievement in the States in different parts of each piece of 
     legislation.
       HR
       2. The House bill and the Senate amendment have different 
     section headings regarding financial awards to states.
       HR/SR with amendment to strike all language
       3. The House bill and the Senate amendment use the same 
     name for these awards. However, the House bill requires the 
     Secretary of Education to make the awards, while the Senate 
     amendment allows the Secretary to decide whether to make the 
     awards. In addition, both the Senate amendment and the House 
     bill refer to the use of a peer review process to make 
     awards, although the House provision is located in subsection 
     (f). See note 21. Finally, the Senate amendment has the 
     Secretary make awards to States making the most progress 
     improving educational achievement, while the House bill 
     refers to States making significant progress.
       HR/SR with an amendment to strike all language.
       4. The House bill requires the Secretary to give greatest 
     weight to the criteria in paragraph (b)(1) of the House bill, 
     which the Senate also does, but in subparagraph (a)(2)(B) of 
     the Senate bill. See note 14.
       HR/SR with an amendment to strike all language.
       5. The House bill specifically refers to the two groups 
     listed, while the Senate amendment refers to groups by 
     reference to Title I, part A, which includes, in addition to 
     the groups listed in the House bill, the following: students 
     with disabilities, students with limited English proficiency, 
     migrant students and students by gender.
       HR/SR with an amendment to strike all language.
       6. The House bill, but not the Senate amendment, refers to 
     the assessments under section 1111 of Title I, part A. The 
     Senate amendment, but not the House bill, refers to students 
     reaching the State defined level of proficiency, which, by 
     inference, includes the assessments required under Title I, 
     part A.
       HR/SR with an amendment to strike all language.
       7. Both the House bill and the Senate amendment require the 
     Secretary to examine a State's performance on NAEP 4th and 
     8th grade assessments in reading and math. However, the House 
     bill refers to a specific school year in which 4th and 8th 
     grade NAEP assessment data must be examined, while the Senate 
     amendment refers to the 2nd year after which assessment data 
     is first available for all States under NAEP in 4th and 8th 
     grade.
       HR/SR with an amendment to strike all language.
       8. The House bill, but not the Senate amendment, allows 
     States to choose another assessment to NAEP that meets the 
     criteria described in subclauses (b)(B)(ii)(I)--(VIII) of the 
     House bill.
       HR with an amendment to strike all language.
       9. The House bill and the Senate amendment require the 
     Secretary to also examine the progress of all the State's 
     students (as opposed to specific groups, see note 5). Also, 
     the House bill and Senate amendment differ in a similar 
     manner as previously detailed in notes 6-8.
       HR/SR with an amendment to strike all language.
       10. The House bill and the Senate amendment are the same.
       HR/SR with an amendment to strike all language.
       11. The House bill, but not the Senate amendment, allows 
     the Secretary to consider the factors listed in paragraphs 
     (1) and (2) following in the House bill. The Senate 
     amendment, but not the House bill, requires the Secretary to 
     consider the factors listed in clauses (iv) and (v) following 
     in the Senate bill.
       HR with an amendment to strike all language.
       12. The House bill and the Senate amendment are the same.
       HR/SR with an amendment to strike all language.
       13. The House bill and the Senate amendment are 
     substantially the same with minor, technical differences in 
     wording.
       HR/SR with an amendment to strike all language.
       14. See note 4.
       SR with an amendment to strike all language.
       15. The House bill does not contain a similar provision.
       SR with an amendment to strike all language.
       16. The Senate amendment does not contain a similar 
     provision.
       HR with an amendment to strike all language.
       17. The House bill does not contain a similar provision.
       SR with an amendment to strike all language.
       18. The House bill does not contain a similar provision.
       SR with an amendment to strike all language.
       19. The House bill does not contain a similar provision; 
     however, see section 7104 of the House bill for authorization 
     levels. See note 46.
       SR with an amendment to strike all language.
       20. The Senate amendment does not contain a similar 
     provision.
       HR with an amendment to strike all language.
       21. See note 3 regarding the peer review process.
       HR with an amendment to strike all language.
       22. The House bill, but not the Senate amendment, contains 
     a subsection requiring the Secretary to make grants to states 
     to offset the cost of administering the alternative 
     assessment to NAEP.
       HR with an amendment to strike all language.
       23. The House bill and Senate amendment have different 
     section headings.
       HR/SR with an amendment to strike all language.
       24. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: The 
     Senate amendment allows the Secretary to reduce State 
     administration funds ``by not more than 30 percent'', while 
     the House bill does not contain similar discretion for the 
     Secretary; and the Senate amendment, but not the House bill, 
     requires the Secretary to make any reductions in State 
     administrative funds in the ``subsequent fiscal year''.
       HR/SR with an amendment to strike all language.
       25. The House bill does not contain a similar provision, 
     but the House bill and the Senate amendment require the 
     Secretary to examine similar measures of student performance. 
     See notes 26 and 27.
       SR with an amendment to strike all language.
       26. The House bill and the Senate amendment refer to 
     ``adequate yearly progress'' as defined under Title I, part 
     A, section 1111, although the Senate reference is more 
     specific. (In addition, the House bill and Senate amendment 
     differ in their provisions regarding adequate yearly progress 
     pursuant to each respective Title I, part A provisions.) Also 
     see note 5 regarding the number of groups required to be 
     included by the House bill and Senate amendment.
       HR/SR with an amendment to strike all language.
       27. See notes 7 and 8 regarding the differences in the 
     House bill and Senate amendment provisions regarding what the 
     Secretary must examine to determine, in this case, sanctions.
       HR/SR with an amendment to strike all language.
       28. The House bill, but not the Senate amendment, allows 
     the Secretary to increase the reduction in a State's 
     administrative funds by not more than an additional 45% for 
     the two years following the initial period described in 
     subsection (a) of the House bill. The Senate amendment, but 
     not the House bill, requires the Secretary to reduce a 
     State's administrative funds by not more than 75% in the 
     subsequent fiscal year for another year or years following 
     the initial period described in subsection (a) of the Senate 
     amendment.
       HR/SR with an amendment to strike all language.
       29. The Senate amendment does not contain a similar 
     provision.
       HR with an amendment to strike all language.
       30. The Senate amendment does not contain a similar 
     provision.
       HR with an amendment to strike all language.
       31. The House bill, but not the Senate amendment, requires 
     the Secretary to reduce a State's administrative funds by an 
     additional 20% above the reductions determined in subsections 
     (a) and (b) if the State has failed to make adequate yearly 
     progress regarding the acquisition of English proficiency by 
     students with limited English proficiency pursuant to Title 
     I, part A. The Senate amendment, but not the House bill, 
     requires the Secretary to determine whether a State has met 
     its performance objectives

[[Page 25894]]

     under Title III of the Senate bill regarding the acquisition 
     of English proficiency by limited English proficient students 
     as part of the initial period described in subsection (a).
       HR/SR with an amendment to strike all language.
       32. The House bill does not contain a similar provision.
       SR with an amendment to strike all language.
       33. The Senate amendment does not contain a similar 
     provision.
       HR with an amendment to strike all language.
       34. The House bill and the Senate amendment have different 
     section headings.
       HR
       35. The House bill and the Senate amendment are 
     substantially the same with minor wording differences. In 
     addition, the House bill refers specifically to standards and 
     assessments required by section 1111 of Title I, part A, 
     while the Senate amendment refers to standards and 
     assessments added to ESEA current law by the Senate 
     amendment.
       SR
       36. The House bill allows funds provided under this section 
     to be used to pay for the costs of the administration of the 
     required assessments if the State has already developed the 
     required standards and assessments, while the Senate bill 
     allows the provided funds to be used for administration 
     regardless of the status of development of standards and 
     assessments. The Senate provision is located in subparagraph 
     (a)(3)(B) following. Otherwise, the House bill and the Senate 
     amendment are the same regarding carrying out other 
     activities under this part.
       SR
       37. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       SR
       38. The Senate amendment does not contain a similar 
     provision. However, the Senate amendment does reference all 
     assessments required in paragraph (a)(1). See note 35.
       SR
       39. See note 36 regarding administration of assessments.
       SR
       40. The Senate does not contain similar provisions as the 
     House bill in subparagraphs (C)-(H) following.
       SR with an amendment to insert ``, including professional 
     development activities aligned with state academic 
     achievement standards and assessments'' at the end of House 
     (F) and to strike subparagraph (H) and insert the following:
       ``(H) improving the dissemination of information on student 
     achievement and school performance to parents and the 
     community, including the development of information and 
     reporting systems designed to identify best educational 
     practices based upon scientifically based research or to 
     assist in linking records of student achievement, length of 
     enrollment, and graduation over time.''
       41. The House bill does not contain a similar provision. 
     However, see subsection 7104(b) of the House bill and note 
     50.
       SR
       42. The House does not contain a similar provision.
       SR
       43. The House contains a similar provision, but it is 
     located in paragraph 7104(a)(3) of the House bill. See note 
     48.
       SR
       44. The House bill and the Senate amendment include a 
     provision to provide one-time bonuses to States that complete 
     their assessments ahead of the deadline established in Title 
     I, part A of each piece of legislation. However, there are 
     substantial differences between the two provisions. The 
     Senate amendment, but not the House bill, establishes a 
     specific school year by which the Secretary shall make the 
     one-time bonus payments. The Senate amendment, but not the 
     House bill, conditions these bonuses upon the assessments 
     being ``particularly high quality'' and which are the most 
     successful in assessing the ``range and depth of student 
     knowledge and proficiency''.
       HR/SR with an amendment to strike all language.
       45. See notes 3 and 21.
       SR with amendment to insert the following from Title I-A 
     note 438 as new subsection:

     ``(#-LC) GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

       ``(a) From funds appropriated under [reference to Title VII 
     note 48], the Secretary shall award, on a competitive basis, 
     grants to States submitting an application in such time and 
     in such manner that the Secretary may require that 
     demonstrates to the satisfaction of the Secretary that the 
     requirements of this section and part will be met to--


       ``(1) enable States (or consortia of States) and local 
     educational agencies (or consortia of local educational 
     agencies) to collaborate with institutions of higher 
     education, other research institutions, or other 
     organizations to improve the quality, validity and 
     reliability of State academic assessments beyond the 
     requirements for such assessments described in section 
     1111[(b)(3)];
       ``(2) measure student academic achievement using multiple 
     measures of student academic achievement from multiple 
     sources;
       ``(3) chart student progress over time; and
       ``(4) evaluate student academic achievement through the 
     development of comprehensive academic assessment instruments 
     such as performance and technology-based academic 
     assessments.
       ``(d) Application.--Each State wishing to apply for funds 
     under this [paragraph] shall include in its State plan such 
     information as the Secretary may require.
       ``(f) Annual Report.--Each State or local educational 
     agency receiving a grant under this [section] shall submit an 
     annual report to the Secretary describing its activities, and 
     the result of those activities, under the grant.
       46. The House bill and the Senate amendment authorize 
     appropriations for the same general purposes with minor, 
     technical differences in cross-references. In addition, the 
     House bill authorizes less than the Senate amendment. The 
     Senate amendment, but not the House bill, contains an 
     additional authorization of appropriations under section 6201 
     in subsection (e).
       HR/SR with amendment to strike all language
       47. The House bill, but not the Senate amendment, 
     authorizes $69 million in FY 02 and such sums through FY 06 
     for NAEP and the alternative assessment described in 
     subparagraph (b)(1)(B). The Senate amendment, but not the 
     House bill, authorizes $110 million in FY 02 and such sums 
     for the succeeding 6 fiscal years for NAEP only.
       HR with an amendment to strike ``110,000,000'' and insert 
     ``72,000,000''.
       48. The House bill and the Senate amendment are similar 
     with the exception of technical differences in cross-
     references. In addition, the House bill authorizes such sums 
     through FY 05, while the Senate amendment authorizes such 
     sums for the succeeding 6 fiscal years.
       HR with amendment to strike paragraph (3) and insert the 
     following:
       ``(3) Authorization of appropriations.--For the purpose of 
     carrying out paragraph [(1)], there are authorized to be 
     appropriated $490,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of the 5 succeeding fiscal 
     years.''
       49. The House bill contains a similar provision, but it is 
     located in subsection 7103(a) of the House bill. See notes 
     35-40.
       SR
       50. The House bill and the Senate amendment establish how 
     funds appropriated shall be distributed between the States. 
     However, there are substantial differences between the two 
     provisions. The House bill, but not the Senate amendment, 
     allocates half of the appropriated funds evenly between the 
     states and half on the population of children aged 5 to 17 in 
     each State. The Senate amendment, but not the House bill, 
     allocates a set amount of $3 million per State and allocates 
     any remaining funds based on the number of children enrolled 
     in public schools in grades 3 through 8.
       HR with amendment to, out of the $490 million authorized 
     (at note 48): from amounts equal to or less than the trigger 
     amount described in Title I-A for that fiscal year: (1) 
     reserve \1/2\ of 1 percent for Interior (BIA); (2) reserve 
     \1/2\ of 1 percent for Outlying Areas; (3) provide each State 
     $3 million; (4) allocate remaining funds, after the 
     application of (1), (2) and (3), to each State based on the 
     State's public school student population in grades 3-8; AND 
     from funds greater than the I-A trigger: (5) allocate funds 
     for approved applications under Enhanced Assessment 
     Instruments (see note 45) according to the quality, needs and 
     scope of the State application. In determining the grant 
     amount, the Secretary shall include any funds the State would 
     have received under (6) of this paragraph; and (6) allocate 
     any remaining funds after funds are allocated in (5) to each 
     State based on population described in (4), except that 
     States which received a grant under (5) receive none of these 
     remaining funds.
       51. The House does not contain a similar provision.
       HR
       52. The House bill, but not the Senate amendment, contains 
     this part allowing SEAs and LEAs flexibility in targeting and 
     transferring federal funding.
       SR with amendment to strike subparagraphs (A)-(C) of 
     subsection (a)(1) and insert:
       ``(A) Section 2113(a)(3) of Part A of Title II (Teachers);
       ``(B) Section 2412(a)(1) of Part D of Title II 
     (Technology);
       ``(C) Sections 4112(a)(1) (with the agreement of the 
     Governor) and 4112(c)(1) of Part A, and section 4202(c)(3) of 
     Part B of Title IV (Safe and Drug Free and 21st Century); and
       ``(D) Section 5112(b) of Part A of Title V (Innovative 
     Programs).''
     and with amendment to strike subparagraphs (A)-(C) of 
     subsection (b)(2) and insert:
       ``(A) Section 2121 of Part A of Title II (Teachers);
       ``(B) Section 2412(a)(2)(A) of Part D of Title II 
     (Technology);
       ``(C) Section 4112(b)(1) of Part A of Title IV (Safe and 
     Drug Free); and
       ``(D) Section 5112(a) of Part A of Title V (Innovative 
     Programs).''
       53. The House bill and the Senate amendment have different 
     headings and titles and locate this part in different parts 
     of each piece of legislation.

[[Page 25895]]

       HR/SR with amendment to insert new title: ``State and Local 
     Flexibility Demonstration'' and SR with amendment to insert 
     ``State and'' before ``Local'' in the Short Title.
       54. The Senate amendment, but not the House bill, allows 
     SEAs, as well as LEAs, to participate and therefore meet the 
     specific requirements. The House bill only allows LEAs. This 
     difference is consistent in the provisions throughout these 
     parts except as otherwise noted.
       HR
       55. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       SR
       56. The Senate amendment does not contain a similar 
     provision.
       SR
       57. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment adds ``educators'' and ``administrators'' to the 
     list.
       HR
       58. The House bill and the Senate amendment are similar 
     with the exception that the House bill refers to ``maximum 
     freedom'', while the Senate amendment refers to ``greater 
     flexibility''.
       HR
       59. The House bill refers to ``Federal barriers'', while 
     the Senate amendment refers to barriers in general. The House 
     bill refers to effective programs, while the Senate amendment 
     refers to effective reform. In addition, the Senate 
     amendment, but not the House bill, refers to equality of 
     student opportunity and accountability for student progress.
       HR with amendment to strike ``of equality''.
       60. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       HR
       61. The House bill and the Senate amendment are similar 
     with the exception that the Senate amendment, but not the 
     House bill, refers to ``low-income and minority students''.
       HR with amendment to strike ``performing'' and insert 
     ``achieving''.
       62. The House bill and the Senate amendment have different 
     headings.
       HR/SR with amendment to insert new section heading of 
     ``Local Flexibility Demonstration''.
       63. The House bill and the Senate amendment are similar 
     with the exceptions that the House bill, but not the Senate 
     amendment, references the State's definition of adequate 
     yearly progress and with a technical difference in cross-
     references.
       SR with amendment to insert ``on a competitive basis'' 
     after ``shall''.
       64. The House bill, but not the Senate amendment, requires 
     the Secretary to enter into performance agreements with not 
     more than 100 LEAs. The Senate amendment, but not the House 
     bill, requires the Secretary to select not more than 7 SEAs 
     and 25 LEAs for performance agreements. In addition, the 
     House bill and the Senate amendment require the Secretary to 
     consider geographic distribution (however, these provisions 
     differ, see note 73), while the Senate amendment, but not the 
     House bill, also conditions the Secretary's approval of LEA 
     participation. See note 74.
       SR with amendment to strike ``100'' and insert ``150'' and 
     to insert ``on a competitive basis'' after ``shall'' and to 
     add ``consistent with [paragraph (2)--notes 73 and 74] after 
     first reference to ``local educational agencies''.
       65. The House bill, but not the Senate amendment, 
     specifically requires the submission of a proposed 
     performance agreement to the Secretary. Otherwise, the 
     provisions are similar.
       SR
       66. The House bill, but not the Senate amendment, requires 
     a plan by the LEA to meet the State's definition of adequate 
     yearly progress. The Senate amendment, but not the House 
     bill, requires the SEA or LEA to exceed the State's 
     definition of adequate yearly progress by a statistically 
     significant amount while also meeting the various 
     requirements in sections 1111 and 1116 of Title I, part A, of 
     the Senate amendment.
       SR
       67. The House bill does not contain a similar provision.
       SR
       68. The House bill, but not the Senate amendment, requires 
     the LEA to notify the ``State''. The Senate amendment, but 
     not the House bill, requires the SEA to notify a list of 
     other entities described in subclauses (I) and (II) following 
     of the Senate amendment.
       SR
       69. The House bill does not contain a similar provision.
       SR
       70. The House bill does not contain a similar provision.
       SR
       71. The House bill and the Senate amendment are similar 
     with a minor wording difference.
       LC
       72. The House bill does not contain a similar provision.
       HR
       73. The House bill, but not the Senate amendment, allows 
     the Secretary to enter into no more than 2 performance 
     agreements per state for the first three years after the bill 
     has been enacted, and subsequent to this period, the 
     Secretary can enter into no more than 100 agreements total, 
     regardless of the number of agreements per state, so long as 
     there is an equitable distribution between urban and rural 
     areas. The Senate amendment, but not the House bill, requires 
     the Secretary to ensure equitable distribution of selected 
     agencies if more than 7 SEAs or 25 LEAs apply. In addition, 
     the Senate amendment, but not the House bill, requires the 
     Secretary to ensure equitable distribution of agencies 
     between urban and rural areas if more than 25 LEAs apply.
       SR with amendment to insert that there must be no less than 
     4, but no more than 10 local flexibility demonstration 
     districts in the 7 State Flexibility Demonstration States 
     (for a total of 70 districts) and that at least half of the 
     districts must be districts with a poverty percentage of 20% 
     or higher. If districts do not sign up for local flexibility 
     in each of the 7 flex demo States, those districts may not be 
     reallocated to non-flex demo States.
       74. The House bill does not contain a similar provision.
       SR with amendment to insert that non-flex demo States may 
     have up to 3 local flex demo districts per State, up to a 
     total of 80 districts nationally.
       75. The House bill contains a similar provision in 
     subparagraph (b)(1)(B). See note 68.
       SR
       76. The House bill contains a similar provision in 
     (b)(1)(B), although the House bill refers to ``State''. See 
     note 68.
       SR
       77. The House bill does not contain a similar provision.
       SR
       78. The House bill does not contain a similar provision.
       SR
       79. The House bill does not contain a similar provision.
       SR
       80. The House bill does not contain a similar provision.
       SR
       81. The House bill does not contain a similar provision.
       SR
       82. The House bill and the Senate amendment are similar 
     with minor wording differences in this provision and the 
     next.
       SR
       83. The House bill and the Senate amendment are 
     substantially the same with minor, technical differences in 
     wording and cross-references.
       SR
       84. The House bill and the Senate amendment are 
     substantially the same with minor, technical differences in 
     wording and cross-references.
       SR
       85. The House bill and the Senate amendment require a five-
     year plan and a description of how funds will be combined and 
     used, although the Senate provision is located in clause 
     (D)(iii) following and refers to exceeding adequate yearly 
     progress by a statistically significant amount. The House 
     bill, but not the Senate amendment, lists a number of 
     necessary requirements in the five-year plan. The Senate 
     amendment outlines the necessary requirements in the clauses 
     (i)--(v) following of the Senate amendment.
       SR with amendment to insert ``for any educational purpose 
     authorized under this Act'' after ``scope of the performance 
     agreement''.
       86. The House does not contain similar provisions as the 
     Senate amendment in clauses (i)--(v) following of the Senate 
     amendment with the exception indicated in note 87 regarding 
     Senate amendment clause (iii).
       SR
       87. See note 85.
       SR
       88. The House bill and the Senate amendment are 
     substantially similar with the exception that the Senate 
     amendment, but not the House bill, requires an assurance of 
     the opportunity to comment on the proposed consolidation of 
     funds. The Senate amendment, but not the House bill, 
     specifically mentions the SEA opportunity to comment on the 
     distribution and use of funds to be consolidated.
       SR with amendment to strike ``in accordance with State 
     law''.
       89. The House bill and the Senate amendment are the same.
       SR
       90. The House bill and the Senate amendment are 
     substantially the same with a minor wording difference.
       SR
       91. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment is more specific as to equitable participation 
     provisions for funds consolidate and used under the 
     performance agreements. See note 119.
       SR with amendment to insert ``consistent with section [Gen. 
     Prov. Reference]'' after ``schools''.
       92. The Senate amendment does not contain a similar 
     provision.
       SR
       93. The House bill does not contain a similar provision.
       HR with amendment to strike ``State educational agency'' 
     and insert ``local educational agency''.

[[Page 25896]]


       94. The House bill does not contain a similar provision.
       SR
       95. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) The 
     Senate amendment, but not the House bill, requires the report 
     to be disseminated to the extent practicable in the parents' 
     language; and (2) The House bill contains a general 
     requirement that the report details how achievement has 
     improved and gaps have been closed, while the Senate requires 
     a number of specific items related to student achievement as 
     detailed in clauses (i)-(iii) following of the Senate 
     amendment.
       SR with amendment to strike ``agrees that'' and insert 
     ``shall,'' and to strike ``the local educational agency 
     shall'' before ``disseminate''.
       96. The House bill does not contain a similar provision.
       SR
       97. The House bill does not contain a similar provision.
       SR
       98. The House bill does not contain a similar provision.
       SR
       99. The House bill does not contain a similar provision.
       SR
       100. The House bill requires the Secretary to approve a 
     proposed performance agreement 60 days after receipt of the 
     agreement, while the Senate amendment requires approval 90 
     days after the deadline established by the Secretary. The 
     Senate amendment, but not the House bill, refers to a 
     ``complete'' performance agreement.
       SR with amendment for LC to make consistent with 21st 
     Century ``deemed approved'' language.
       101. The Senate amendment, but not the House bill, contains 
     a provision requiring the Secretary to establish a peer 
     review process to review proposed performance agreements.
       HR
       102. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) The 
     House bill requires the Secretary to amend the performance 
     agreement if the requirements described in paragraphs (2)(A) 
     and (B) following of the House bill are met, while the Senate 
     amendment allows the SEA to amend contingent on the 
     requirements described in paragraphs (2)(A) and (B) following 
     of the Senate amendment; and (2) There is a technical 
     difference in cross-references.
       SR with amendment to strike ``State'' and insert ``local 
     educational agency''.
       103. The House bill and the Senate amendment are 
     substantially the same with the following differences: (1) 
     The House bill refers to the ``State'' being held 
     accountable, while the Senate amendment refers to the SEA 
     being held accountable; and (2) There is a technical 
     difference in cross-references.
       SR with amendment to strike ``a State seeks'' and insert 
     ``a local educational agency seeking'' and to strike 
     ``State'' and insert ``local educational agency'' before 
     ``will be held''
       104. See note 100 regarding differences in the time 
     provided the Secretary. In addition, the Senate amendment, 
     but not the House bill, allows the Secretary to provide the 
     SEA with documentation that the amendment plan ``no longer 
     has substantial promise'' of meeting this part's requirements 
     and refers to exceeding adequate yearly progress.
       SR with amendment for LC to make consistent with 21st 
     Century ``deemed approved'' language.
       105. The House bill and the Senate amendment are 
     substantially the same with minor, technical differences in 
     wording.
       SR with amendment for LC to make consistent with 21st 
     Century ``deemed approved'' language.
       106. The House bill does not contain a similar provision.
       SR
       107. The House bill, but not the Senate amendment, 
     addresses the reinstatement of program requirements on the 
     LEA once a program is removed from a performance agreement 
     beginning on the effective date of the executed amendment. 
     The Senate amendment, but not the House bill, addresses the 
     execution of adding or removing programs on the first day of 
     the first full academic year following the approval of the 
     amendment.
       SR
       108. The House bill and the Senate amendment are similar. 
     However, the House bill, but not the Senate amendment allows 
     the LEA to use its consolidated funds for any purpose in the 
     House bill. The Senate amendment, but not the House bill, 
     allows the SEA to use its consolidated funds for any purpose 
     of the eligible programs listed in subsection 5705(b) and 
     contingent upon paragraph (3) of the Senate amendment.
       SR with amendment to strike ``, subject to subsection 
     (c),''.
       109. The House bill and the Senate amendment are 
     substantially the same with the exceptions of minor wording 
     differences and that the House refers to the ``State'', while 
     the Senate refers to the SEA.
       SR with amendment to strike ``State'' and insert ``local 
     educational agency''.
       110. The House bill does not contain a similar provision.
       SR
       111. The House bill refers to provisions in the House bill 
     as eligible, while the Senate amendment refers to provisions 
     in law as eligible. In addition, the Senate amendment, but 
     not the House bill, specifies that ``only'' those funds 
     available in FY 02 and succeeding fiscal years are eligible 
     to be consolidated.
       SR
       112. The House bill does not contain a similar provision. 
     The Senate amendment includes as eligible programs: Title I, 
     part A, Even Start, 21st Century Community Learning Centers, 
     Comprehensive School Reform, School Dropout Prevention.
       SR
       113. The House bill refers to the whole of Title II of the 
     House bill (regarding Teachers), while the Senate amendment 
     refers to certain parts of Title II of the Senate amendment 
     (regarding Teachers and Technology).
       SR with amendment to insert ``Section 2121 of Part A of'' 
     before ``Title II'' (Teachers);
       114. The House bill does not contain a similar provision. 
     The Senate amendment includes Bilingual Education as an 
     eligible program.
       SR
       115. The House bill refers to part A of Title IV of the 
     House bill (regarding Innovative Programs Block Grant), while 
     the Senate amendment refers to subpart 3 of part A of Title V 
     of the Senate amendment (regarding Public School Choice), and 
     subpart 4 of part B of title V (regarding Innovative Programs 
     Block Grant)
       SR with amendment to strike paragraph (2) and insert: ``(2) 
     Section 2412(a)(2)(A) of Part D of Title II (Technology);''
       116. The House bill refers to subpart 1 of part A of Title 
     V of the House bill (regarding Safe and Drug Free Schools), 
     while the Senate amendment refers to subpart 1 of part A of 
     Title IV of the Senate amendment (regarding Safe and Drug 
     Free Schools).
       SR with amendment to strike paragraph (3) and insert ``(3) 
     Section 4112(b)(1) of Part A of Title IV (Safe and Drug 
     Free);''
       117. The House bill refers to part B of Title V of the 
     House bill (regarding Technology). The Senate amendment 
     refers to part C of Title II of the Senate amendment 
     (regarding Technology) in paragraph (2). See note 113.
       SR with amendment to strike paragraph (4) and insert ``(4) 
     Section 5112(a) of Part A of Title V (Innovative Programs).''
       118. The House bill does not contain similar provisions as 
     the Senate amendment in paragraphs (6)-(8) following of the 
     Senate amendment.
       SR
       119. The Senate amendment, but not the House bill contains 
     a subsection applying specific equitable participation 
     provisions for funds consolidated and used under the 
     performance agreements. See note 91.
       SR
       120. The House bill does not contain a similar provision.
       SR
       121. The House bill does not contain a similar provision.
       SR
       122. The House bill does not contain a similar provision.
       SR
       123. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment, but not the House bill, conditions the LEA 
     administrative reservation on paragraph 5709(e)(2) regarding 
     sanctions.
       SR
       124. The House bill, but not the Senate amendment, requires 
     the Secretary to terminate a performance agreement before the 
     five-year ending point of the agreement if the LEA has failed 
     to make adequate yearly progress for three consecutive years. 
     The Senate amendment, but not the House bill, requires the 
     Secretary to terminate a performance agreement if, after the 
     first full year of the SEA's performance agreement, the SEA 
     fails to make its definition of adequate yearly progress for 
     2 consecutive years thereafter or fails to exceed its 
     definition of adequate yearly progress by a statistically 
     significant amount for three consecutive years thereafter. 
     Both the House bill and the Senate amendment require the 
     agency under review to be given notice and the opportunity 
     for a hearing.
       SR with amendment to strike ``permitting'' and insert 
     ``requiring''.
       125. The House bill does not contain a similar provision.
       HR with amendment to strike ``State educational agency'' 
     and insert ``local educational agency''
       126. The House bill does not contain a similar provision.
       HR with amendment to strike all references to ``State 
     educational agency'' and insert in all cases ``local 
     educational agency''.
       127. The House bill and the Senate amendment are 
     substantially the same with the following exceptions: (1) The 
     House bill refers to meeting ``achievement goals'', while the 
     Senate amendment refers to meeting the State's definition of 
     adequate yearly progress; (2) Minor differences in wording 
     and a technical difference in cross-references; and (3) The 
     House bill refers to the LEA complying with the program 
     requirements previously contained in the performance 
     agreement after the agreement has

[[Page 25897]]

     ended, which the Senate also does in subsection (d) below.
       SR
       128. The House bill does not contain a similar provision.
       SR
       129. The Senate amendment, but not the House bill, refers 
     to the ``first day of the first full academic year''. 
     Otherwise, the House bill and the Senate amendment are 
     substantially the same, although the House bill contains this 
     provision in subsection (b). See note 126.
       SR
       130. The House bill does not contain a similar provision.
       SR
       131. The House bill, but not the Senate amendment requires 
     the Secretary to renew for one additional five-year term a 
     performance agreement with an agency that has ``met or 
     substantially met'' its performance goals at the end of the 
     original agreement. The Senate amendment, but not the House 
     bill, requires the Secretary to renew for one additional 
     five-year term a performance agreement with an agency that 
     has exceeded the adequate yearly progress in the agreement by 
     a statistically significant amount.
       SR with amendment to strike ``State educational agency'' 
     and insert ``local educational agency''.
       132. The House bill and the Senate amendment are 
     substantially the same with minor wording differences.
       SR
       133. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment, but not the House bill, does not allow for a 
     renewal if the required information is not provided to the 
     Secretary within 60 days of the end of the term of the 
     original performance agreement.
       SR
       134. The House bill and the Senate amendment are 
     substantially the same with a technical difference in cross-
     references.
       LC
       135. The Senate amendment does not contain a similar 
     provision.
       SR
       136. The House bill and the Senate amendment are 
     substantially the same with a technical difference in cross-
     references. (In addition, the House bill and Senate amendment 
     differ in their provisions regarding adequate yearly progress 
     pursuant to each respective Title I, part A provisions.)
       LC
       137. The Senate amendment does not contain a similar 
     provision.
       HR
       138. The House bill does not contain a similar provision.
       SR with amendment to insert State flexibility 
     demonstration, State accountability for AYP, and changes to 
     NAEP and NAGB in NESA:
       (1) State flexibility Demonstration:
       The purpose of this part is to allow 7 States additional 
     flexibility in the use of federal funds for State 
     administration and State activity funds. If a State chooses 
     to participate, it does not affect how much money they 
     receive--the same federal formulas apply.
       Eligible Programs:
       Part A of Title I--State administration only (Education for 
     the Disadvantaged);
       Part B of Title I (Reading First and Even Start);
       Section 2113(a)(3) of Part A of Title II (Teachers);
       Section 2412(a)(1) of Part D of Title II (Technology);
       Sections 4112(a)(1) (with the agreement of the Governor), 
     4112(c)(1), and 4112(b)(2) of Part A of Title IV (Safe and 
     Drug Free Schools);
       Section 4202(c)(2) and (3) of Part B of Title IV (21st 
     Century Community Learning Centers);
       Sections 5112(a) and 5112(b) of Part A of Title V--State 
     administration, State activity and Local activity funds 
     (Innovative Programs Block Grant).
       Title V Block Grant--If the State educational agency 
     includes the local activity funds, it must ensure 85% of pre-
     FY 2002 funds are sent locally and 100% of funds above the FY 
     2002 funds are sent locally.
       Agreement with the Secretary--The State educational agency 
     would apply to the Secretary to be able to take advantage of 
     this flexibility.
       Use of Funds--Similar to the schoolwide provision which 
     allows consolidation of federal dollars at the school level, 
     funds could be used for any educational activity authorized 
     under H.R. 1, to meet the general purposes of the program 
     funds included in the waiver, in order to improve academic 
     achievement and close achievement gaps.
       Approval--The Secretary may approve the application only if 
     the Secretary determines that such application demonstrates 
     substantial promise of carrying out the education reform 
     goals of the State.
       Reporting--States would annually report to the Secretary on 
     how they are using these funds in accordance with their 
     waiver.
       Termination--The Secretary will terminate the State 
     flexibility under this part if the State fails to meet 
     adequate yearly progress for 2 consecutive years or for non-
     compliance with the terms of the application.
       Alignment--State flexibility demonstration States must have 
     no less than 4, but no more than 10, local flexibility 
     demonstration districts in alignment with the State 
     flexibility demonstration, and that at least half of the 
     districts must be districts with a poverty percentage of 20% 
     or higher. Districts participating in the State flex demo 
     State must align with the State flexibility demonstration for 
     the State to be eligible to participate in State flex. 
     Additional local flex demo districts beyond the minimum 4 
     districts required under the State flex demo may sign up at 
     any point, up to a total of 10 districts, so long as they are 
     in alignment with the State flex demo.
       Districts in a State that is participating in State flex, 
     that are not part of the State flex demo (i.e., not the 
     initial 4 or among the 10 total) may benefit from the State 
     flex demo dollars (which is not inclusive of the local flex 
     demo dollars).
       Districts that join the State in the State flex demo (i.e., 
     the initial 4 or among the 10 total) shall submit their 
     performance agreements in conjunction with the State 
     application for State flex. The State shall submit a 
     ``consolidated'' application including the district 
     information for those districts participating.
       States have priority in signing up for the State flex demo 
     over districts wishing to sign up for the local flex demo so 
     as to encourage alignment between the State and districts. If 
     the State has not notified the Secretary of their interest to 
     participate in State flex in [6] months after enactment, the 
     districts in that State may submit performance agreements to 
     the Secretary.
       (2) And State accountability for AYP language:

     ``SEC.   . STATE ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.

       ``(a) Accountability for Adequate Yearly Progress.--After a 
     State has had its plan approved under Title I and Title III 
     of this Act and such plans have been implemented for 2 years, 
     the Secretary shall review whether the State has met its 
     adequate yearly progress definition under section 1111 
     [(b)(2)] of this Act for each of the groups of students 
     described in section 1111 [(b)(2) . . . (the 4 accountability 
     subgroups)] and meet its annual measurable objectives under 
     section [Title III] of this Act.
       ``(b) Determination.--The Secretary shall use a peer review 
     process to review, based on data from the State assessments 
     administered pursuant to section 1111 of this Act, whether a 
     State has failed to make its definition of adequate yearly 
     progress for two consecutive years, and to review, based on 
     data from the evaluations in section [Title III] of this Act, 
     whether a State has failed to meet its annual measurable 
     objectives under section [Title III] of this Act for two 
     consecutive years.
       ``(c) Technical Assistance.--(1) Based on the determination 
     described in subsection (b), the Secretary shall provide 
     technical assistance to a State that has not met its 
     definition of adequate yearly progress no later than the 
     beginning of the next school year following the school year 
     in which the determination described in subsection (b) is 
     made.
       ``(2) The technical assistance described in paragraph (1) 
     shall:
       ``(A) be valid, reliable and rigorous; and
       ``(B) provide constructive feedback to help the State meet 
     its definition of adequate yearly progress.
       ``(3) Based on the determination described in subsection 
     (b), the Secretary may provide technical assistance to a 
     State that has not met its annual objectives in section 
     [Title III] no later than the beginning of the next school 
     year following the school year in which the determination in 
     subsection (b) was made.
       ``(4) The technical assistance described in paragraph (1) 
     shall:
       ``(A) be valid, reliable, and rigorous; and
       ``(B) provide constructive feedback to help the State meet 
     its annual measurable objectives in section [Title III].''
       Report Language:
       ``Just as schools and districts that fail to make adequate 
     yearly progress for student academic achievement for two 
     consecutive years must develop improvement plans, Conferees 
     expect States that continually fail to make adequate yearly 
     progress to develop and implement strategies that will enable 
     the State to make adequate yearly progress and that 
     specifically address issues that prevented the State from 
     making such progress.''
       (d) Report to Congress.--Beginning with the 2005-2006 
     school year, the Secretary shall submit an annual report 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 containing--
       (1) a list of each State that has not met its definition of 
     adequate yearly progress based on the determination described 
     in subsection (b);
       (2) a list of each State that has not met its annual 
     measurable objectives under section

     [--Title III];
       (3) the information reported by the State to the Secretary 
     pursuant to section 1119

     [--teacher accountability]; and
       (4) a description of any technical assistance provided 
     pursuant to subsection (c)
       Report Language:

[[Page 25898]]

       Conferees stress that a fundamental purpose of Title I as 
     established under this Act is to hold States, local 
     educational agencies and schools accountable for improving 
     the academic achievement of all students, and for identifying 
     and turning around low-performing schools. As a result, 
     Conferees expect States to meet their definition of adequate 
     yearly progress to the same degree as local school districts 
     and schools. The Conferees further urge Congress and the 
     Secretary to thoroughly examine the data collected from the 
     State assessment systems and factor such information into 
     future discussions on accountability measures for States, 
     which should include consideration of the use of fiscal 
     sanctions to hold those States that continually fail to meet 
     their definition of adequate yearly progress and fail to 
     improve the academic achievement of all students accountable.
       (3) Sections 411 and 412 of the NESA are amended to read as 
     follows:

     ``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

       ``(a) Establishment.--The Commissioner shall, with the 
     advice of the National Assessment Governing Board established 
     under section 412, and with the technical assistance of the 
     Advisory Council established under section 407, carry out, 
     through grants, contracts, or cooperative agreements with one 
     or more qualified organizations, or consortia thereof, a 
     National Assessment of Educational Progress, which 
     collectively refers to a national assessment, State 
     assessments, and a long-term trend assessment in reading and 
     mathematics.
       ``(b) Purpose; State Assessments.--
       ``(1) Purpose.--The purpose of this section is to provide, 
     in a timely manner, a fair and accurate measurement of 
     student academic achievement and reporting trends in such 
     achievement in reading, mathematics, and other subject matter 
     as specified in this section. The Commissioner, in carrying 
     out this purpose, shall--
       ``(A) use a random sampling process which is consistent 
     with relevant, widely accepted professional assessment 
     standards and that produces data that is representative on a 
     national and regional basis;
       ``(B) conduct a national assessment and collect and report 
     assessment data, including achievement data trends, in a 
     valid and reliable manner on student academic achievement in 
     public and private schools at least once every two years, in 
     grades 4 and 8 in reading and mathematics;
       ``(C) conduct a national assessment and collect and report 
     assessment data, including achievement data trends, in a 
     valid and reliable manner on student academic achievement in 
     public and private schools in reading and mathematics in 
     grade 12 in regularly scheduled intervals, but at least as 
     often as such assessments were conducted prior to the 
     enactment of [HR 1];
       ``(D) to the extent time and resources allow, and after the 
     requirements described in subparagraph (B) are implemented 
     and then the requirements described in subparagraph (C) are 
     met, conduct additional national assessments and collect and 
     report assessment data, including achievement data trends, in 
     a valid and reliable manner on student academic achievement 
     in grades 4, 8, and 12 in public and private schools in 
     regularly scheduled intervals in additional subject matter, 
     including writing, science, history, geography, civics, 
     economics, foreign languages, and arts, and the trend 
     assessment described in subparagraph (F);
       ``(E) conduct the reading and mathematics assessments 
     described in subparagraph (B) in the same year, and every 
     other year thereafter, to thereby provide for one year in 
     which no such assessments are conducted in between each 
     administration of such assessments; and
       ``(F) continue to conduct the trend assessment of academic 
     achievement at ages 9, 13, and 17 for the purpose of 
     maintaining data on long-term trends in reading and 
     mathematics.

     [Report Language: ``The Conferees intend the long-term trend 
     assessment will continue to be administered in the same 
     manner as prior to the enactment of [NCLB/BEST]. Further, the 
     Conferees intend that NAGB shall formulate policy for the 
     long-term trend assessment.'']
       ``(G) include information on special groups, including, 
     whenever feasible, information collected, cross tabulated, 
     compared, and reported by race or ethnicity, socioeconomic 
     status, gender, disability and limited English proficiency; 
     and
       ``(H) ensure that achievement data are made available on a 
     timely basis following official reporting, in a manner that 
     facilitates further analysis and that includes trend lines;
       ``(2) State assessments.--(A) The Commissioner--
       ``(i) shall conduct biennial State academic assessments of 
     student achievement in reading and mathematics in grades 4 
     and 8 as described in paragraphs (1)(B) and (1)(E);
       ``(ii) may conduct the State academic assessments of 
     student achievement in reading and mathematics in grade 12 as 
     described in paragraph (1)(C);
       ``(iii) may conduct State academic assessments of student 
     achievement in grades 4, 8, and 12 as described in paragraph 
     (1)(D); and
       ``(iv) shall conduct each such State assessment, in each 
     subject area and at each grade level, on a developmental 
     basis until the Commissioner determines, as the result of an 
     evaluation required by subsection (f), that such assessment 
     produces high quality data that are valid and reliable.
       ``(B)(i) States participating in State assessments shall 
     enter into an agreement with the Secretary pursuant to 
     subsection (d)(3).
       ``(ii) Such agreement shall contain information sufficient 
     to give States full information about the process for 
     decision-making (which shall include the consensus process 
     used), on objectives to be tested, and the standards for 
     random sampling, test administration, test security, data 
     collection, validation, and reporting.
       ``(C)(i) Except as provided in clause (ii), a participating 
     State shall review and give permission for the release of 
     results from any test of its students administered as a part 
     of a State assessment prior to the release of such data. 
     Refusal by a State to release its data shall not restrict the 
     release of data from other States that have approved the 
     release of such data.
       ``(ii) A State participating in the biennial academic 
     assessments of student achievement in reading and mathematics 
     in grades 4 and 8 shall be deemed to have given its 
     permission to release its data if it has an approved plan 
     under section 1111 of the Elementary and Secondary Education 
     Act of 1965.
       ``(3) Prohibited activities.--
       ``(A) The use of assessment items and data on any 
     assessment authorized under this section by an agent or 
     agents of the Federal Government to rank, compare, or 
     otherwise evaluate individual students or teachers, or to 
     provide rewards or sanctions for individual students, 
     teachers, schools or local educational agencies is 
     prohibited.
       ``(B) Special rule.--Any assessment authorized under this 
     section shall not be used by an agent or agents of the 
     Federal Government to establish, require, or influence the 
     standards, assessments, curriculum, including lesson plans, 
     textbooks, or classroom materials, or instructional practices 
     of States or local educational agencies.
       ``(C) Applicability to student educational decisions.--
     Nothing in this section shall prescribe the use of any 
     assessment authorized under this section for student 
     promotion or graduation purposes.
       ``(D) Applicability to home schools.--Nothing in this 
     section shall be construed to affect home schools, whether or 
     not a home school is treated as a home school or a private 
     school under State law, nor shall any home schooled student 
     be required to participate in any assessment referenced or 
     authorized under this section.
       ``(4) In carrying out any assessment authorized under this 
     section, the Commissioner, in a manner consistent with 
     subsection (c)(2), shall--
       ``(A) use widely accepted professional testing standards, 
     objectively measure academic achievement, knowledge, and 
     skills, and ensure that any academic assessment authorized 
     under this section be tests that do not evaluate or assess 
     personal or family beliefs and attitudes or publicly disclose 
     personally identifiable information;

     [Report language: The Conferees wish to clarify that this 
     provision does not prohibit the use of essay, extended 
     response, or short answer test items, nor does it prohibit 
     the use of test items which require a student to analyze a 
     passage of text, or to express opinions provided that such 
     test items are developed consistent with widely accepted 
     professional assessment standards. Further, it does not 
     preclude the use of non-intrusive, non-cognitive questions, 
     approved by the National Assessment Governing Board, whose 
     direct relationship to academic achievement has been 
     demonstrated and is being studied as part of the National 
     Assessment of Educational Progress for the purposes of 
     improving such achievement.]

       ``(B) only collect information that is directly related to 
     the appraisal of academic achievement, and to the fair and 
     accurate presentation of such information; and''

     [Report Language: The Conferees wish to clarify that ``fair 
     and accurate presentation'' is intended to mean that the data 
     and information resulting from the implementation of this 
     section, whether aggregated at the national, regional, or 
     State level, are valid and reliable and reported to the 
     public in a manner that is impartial and free of 
     misinterpretation, such as ensuring the statistical accuracy 
     of the data and information and not ranking State 
     performance.]

       ``(C) collect information on race, ethnicity, socioeconomic 
     status, disability, limited English proficiency, and gender.
       ``(5) Technical assistance.--In carrying out any assessment 
     authorized under this section, the Commissioner may provide 
     technical assistance to States, localities, and other 
     parties.
       ``(c) Access.--
       ``(1) Public access.--Except as provided in paragraph (2), 
     parents and members of the public shall have access to all 
     assessment data, questions, and complete and current 
     assessment instruments of any assessment

[[Page 25899]]

     authorized under this section. The local educational agency 
     shall make reasonable efforts to inform parents and members 
     of the public about the access required under this paragraph.
       ``(A) The access described in this paragraph shall be 
     provided within 45 days of the date the request was made, in 
     writing, and be made available in a secure setting that is 
     convenient to both parties.''

     [Report Language: ``The Conferees intend the access provided 
     in subsection (c)(1) to be arranged by the Department of 
     Education.'']

       ``(B) To protect the integrity of the assessment, no copy 
     of the assessment items or assessment instruments shall be 
     duplicated or taken from the secure setting.
       ``(2) Parents and members of the public may submit written 
     complaints to the National Assessment Governing Board.
       ``(A) The National Assessment Governing Board shall forward 
     such complaints to the Commissioner of the National Center of 
     Education Statistics, the Secretary of Education, and the 
     State and local educational agency from within which the 
     complaint originated within 30 days of receipt of such 
     complaint.
       ``(B) The National Assessment Governing Board, in 
     consultation with the Commissioner of the National Center for 
     Education Statistics, shall review such complaint and 
     determine whether revisions are necessary and appropriate. As 
     determined by such review, the Board shall revise, as 
     necessary and appropriate, the procedures or assessment items 
     that have generated the complaint and respond to the 
     individual submitting the complaint, with a copy of such 
     response provided to the Secretary, describing any action 
     taken, not later than 30 days after so acting.
       ``(C) The Secretary shall submit a summary report of all 
     complaints received pursuant to subparagraph (A) and 
     responses by the National Assessment Governing Board pursuant 
     to subparagraph (B) to the Chairman of the House Committee on 
     Education and the Workforce, and the Chairman of the Senate 
     Committee on Health, Education, Labor, and Pensions.
       ``(D) Special rule.--(i) The Commissioner may decline to 
     make widely available through public means, such as posting 
     on the Internet, distribution to the media, and distribution 
     through public agencies, for a period, not to exceed ten 
     years after initial use, cognitive questions that the 
     Commissioner intends to reuse in the future.
       ``(ii) Notwithstanding clause (i), the Commissioner may 
     decline to make cognitive questions widely available as 
     described in clause (i) for a period longer than ten years if 
     the Commissioner determines such additional period is 
     necessary to protect the security and integrity of long-term 
     trend data.''

     [Report Language: ``The Conferees wish to clarify that the 
     access described in paragraph (1) shall continue to be 
     provided to parents and members of the public who request it 
     in writing to all cognitive questions and complete and 
     current assessment instruments of any assessment authorized 
     under this section, including those test items that the 
     Commissioner intends to withhold pursuant to subparagraph 
     (G).'']

       ``(2) Personally identifiable information.--
       ``(A) The Commissioner shall ensure that all personally 
     identifiable information about students, their academic 
     achievement, and their families, and that information with 
     respect to individual schools, remains confidential, in 
     accordance with section 552a of title 5, United States Code.
       ``(B) Neither the National Board, the Commissioner, nor any 
     contractor or subcontractor shall maintain any system of 
     records containing a student's name, birth information, 
     Social Security number, or parents' name or names, or any 
     other personally identifiable information.
       ``(3) Any unauthorized person who knowingly discloses, 
     publishes, or uses assessment questions, or complete and 
     current assessment instruments of any assessment authorized 
     under this section may be fined as specified in section 3571 
     of title 18, United States Code or charged with a class E 
     felony.
       ``(d) Participation.--
       ``(1) Voluntary participation.--Participation in any 
     assessment authorized under this section shall be voluntary 
     for students, schools and local educational agencies.
       ``(2) Student participation.--Parents of children selected 
     to participate in any assessment authorized under this 
     section shall be informed before the administration of any 
     authorized assessment, that their child may be excused from 
     participation for any reason, is not required to finish any 
     authorized assessment, and is not required to answer any test 
     question.
       ``(3) State participation.--
       ``(A) Participation in assessments authorized under this 
     section, other than reading and mathematics in grades 4 and 
     8, shall be voluntary.
       ``(B) For reading and mathematics assessments in grades 4 
     and 8, the Secretary shall enter into an agreement with any 
     State carrying out an assessment for the State under this 
     subsection. Each such agreement shall contain provisions 
     designed to ensure that the State will participate in the 
     assessment.
       ``(4) Review.--Representatives of State and local 
     educational agencies or the chief State school officer shall 
     have the right to review any assessment item or procedure of 
     any authorized assessment upon request in a manner consistent 
     with subsection (c), except the review described in 
     subparagraph (1)(E) of subsection (c) shall take place in 
     consultation with the representatives described in this 
     paragraph.
       ``(e) Student achievement levels.--
       ``(1) Achievement levels.--The National Assessment 
     Governing Board, established under section 412, shall develop 
     appropriate student achievement levels for each grade or age 
     in each subject area to be tested under assessments 
     authorized under this section, except the trend assessment 
     described in subsection (b)(1)(F).
       ``(2) Determination of levels.--
       ``(A) Such levels shall be determined by--
       ``(i) identifying the knowledge that can be measured and 
     verified objectively using widely accepted professional 
     assessment standards;
       ``(ii) developing achievement levels that are consistent 
     with relevant widely accepted professional assessment 
     standards and based on the appropriate level of subject 
     matter knowledge for grade levels to be assessed, or the age 
     of the students, as the case may be.
       ``(iii) after the determinations described in clauses (i) 
     and (ii), such levels shall be further devised through a 
     national consensus approach; and''

     [Report language: The national consensus approach shall 
     include, but not be limited to, parents, concerned members of 
     the public, teachers, principals, local school 
     administrators, curriculum specialists, and experts described 
     in section 412(e)(1)(E).]
       ``(iv) used on a trial basis until the Commissioner 
     determines, as a result of an evaluation under subsection 
     (f), that such levels are reasonable, valid, and informative 
     to the public. The Commissioner and the Board shall ensure 
     that reports using such levels on a trial basis do so in a 
     manner that makes clear the status of such levels.
     ``(B) Such levels shall be updated as appropriate by the 
     National Assessment Governing Board in consultation with the 
     Commissioner.
       ``(3) Reporting.--After determining that such levels are 
     reasonable, valid, and informative to the public, as the 
     result of an evaluation under subsection (f), the 
     Commissioner shall use such levels or other methods or 
     indicators for reporting results of the National Assessment 
     and State assessments.
       ``(4) The National Assessment Governing Board shall provide 
     for a review of any trial student achievement levels under 
     development by representatives of State educational agencies 
     or the chief State school officer in a manner consistent with 
     subsection (c), except the review described in subparagraph 
     (1)(E) of subsection (c) shall take place in consultation 
     with the representatives described in this paragraph.
       ``(f) Review of National and State Assessments.--
       ``(1) In general.--(A) The Secretary shall provide for 
     continuing review of any assessment authorized under this 
     section, and student achievement levels, by one or more 
     professional assessment evaluation organizations.
       ``(B) Such continuing review shall address--
       ``(i) whether any authorized assessment is properly 
     administered, produces high quality data that are valid and 
     reliable, is consistent with relevant widely accepted 
     professional assessment standards, and produces data on 
     student achievement that are not otherwise available to the 
     State (other than data comparing participating States to each 
     other and the Nation); and
       ``(ii) whether student achievement levels are reasonable, 
     valid, reliable, and informative to the public;
       ``(iii) whether any authorized assessment is being 
     administered as a random sample and is reporting the trends 
     in academic achievement in a valid and reliable manner in the 
     subject areas being assessed;
       ``(iv) whether any of the test questions are biased, 
     consistent with section 412(e)(4);
       ``(v) whether the appropriate authorized assessments are 
     measuring, consistent with section 411, reading ability and 
     mathematical knowledge.
       ``(2) Report.--The Secretary shall report 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, the President, and the Nation on 
     the findings and recommendations of such reviews.
       ``(3) Use of findings and recommendations--The Commissioner 
     and the National Assessment Governing Board shall consider 
     the findings and recommendations of such reviews in designing 
     the competition to select the organization, or organizations, 
     through which the Commissioner carries out the National 
     Assessment.
       (g) ``Coverage Agreements.--
       ``(1) Department of defense schools.--The Secretary and the 
     Secretary of Defense may enter into an agreement, including 
     such terms as are mutually satisfactory, to include in the 
     National Assessment elementary and secondary schools operated 
     by the Department of Defense.

[[Page 25900]]

       ``(2) Bureau of indian affairs schools.--The Secretary and 
     the Secretary of the Interior may enter into an agreement, 
     including such terms as are mutually satisfactory, to include 
     in the National Assessment schools for Indian children 
     operated or supported by the Bureau of Indian Affairs.

     ``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

       ``(a) Establishment.--There is established the National 
     Assessment Governing Board (hereafter in this title referred 
     to as the ''Board''), which shall formulate policy guidelines 
     for the National Assessment.
       ``(b) Membership.--
       ``(1) Appointment and composition.--The Board shall be 
     appointed by the Secretary and be composed of--
       ``(A) two Governors, or former Governors, who shall not be 
     members of the same political party;
       ``(B) two State legislators, who shall not be members of 
     the same political party;
       ``(C) two chief State school officers;
       ``(D) one superintendent of a local educational agency;
       ``(E) one member of a State board of education;
       ``(F) one member of a local board of education;
       ``(G) three classroom teachers representing the grade 
     levels at which the National Assessment is conducted;
       ``(H) one representative of business or industry;
       ``(I) two curriculum specialists;
       ``(J) three testing and measurement experts, who shall have 
     training and experience in the field of testing and 
     measurement;
       ``(K) one nonpublic school administrators or policymakers;
       ``(L) two school principals, of whom one shall be an 
     elementary school principal and one shall be a secondary 
     school principal;
       ``(M) two parents who are not employed by a local, State or 
     federal educational agency; and
       ``(N) two additional members who are representatives of the 
     general public, and who may be parents, but who are not 
     employed by a local, State, or federal educational agency.
       ``(2) Assistant secretary for educational research.--The 
     Assistant Secretary for Educational Research and Improvement 
     shall serve as an ex officio, nonvoting member of the Board.
       ``(3) Special rule.--The Secretary and the Board shall 
     ensure at all times that the membership of the Board reflects 
     regional, racial, gender, and cultural balance and diversity 
     and that the Board exercises its independent judgment, free 
     from inappropriate influences and special interests.
       ``(c) Terms.--
       ``(1) In general.--Terms of service of members of the Board 
     shall be staggered and may not exceed a period of 4 years, as 
     determined by the Secretary.
       ``(2) Service limitation.--Members of the Board may serve 
     not more than two terms.
       ``(3) Change of status.--A member of the Board who changes 
     status under subsection (b) during the term of the 
     appointment of the member may continue to serve as a member 
     until the expiration of such term.
       ``(4) Conforming provision.--Members of the Board 
     previously granted 3 year terms, whose terms are in effect on 
     the date of enactment of the Department of Education 
     Appropriations Act, 2001, shall have their terms extended by 
     one year.
       ``(d) Vacancies.--
       ``(1) In general.--
       ``(A) The Secretary shall appoint new members to fill 
     vacancies on the Board from among individuals who are 
     nominated by organizations representing the type of 
     individuals described in subsection (b)(1) with respect to 
     which the vacancy exists.
       ``(B) Each organization submitting nominations to the 
     Secretary with respect to a particular vacancy shall nominate 
     for such vacancy six individuals who are qualified by 
     experience or training to fill the particular Board vacancy.
       ``(C) The Secretary's appointments shall maintain the 
     composition, diversity, and balance of the Board required 
     under subsection (b).
       ``(2) Additional nominations.--The Secretary may request 
     that each organization described in paragraph (1)(A) submit 
     additional nominations if the Secretary determines that none 
     of the individuals nominated by such organization have 
     appropriate knowledge or expertise.
       ``(e) Duties.--
       ``(1) In general.--In carrying out its functions under this 
     section the Board shall--
       ``(A) select the subject areas to be assessed (consistent 
     with section 411(b)(1));
       ``(B) develop appropriate student achievement levels as 
     provided in section 411(e);
       ``(C) develop assessment objectives consistent with the 
     requirements of this section and test specifications that 
     produce an assessment that is valid and reliable, and are 
     based on relevant widely accepted professional standards;
       ``(D) develop a process for review of the assessment which 
     includes the active participation of teachers, curriculum 
     specialists, local school administrators, parents, and 
     concerned members of the public;
       ``(E) design the methodology of the assessment to ensure 
     that assessment items are valid and reliable, in consultation 
     with appropriate technical experts in measurement and 
     assessment, content and subject matter, sampling, and other 
     technical experts who engage in large scale surveys, 
     including the Advisory Council established under section 407;
       ``(F) consistent with section 411, measure student academic 
     achievement in grades 4, 8, and 12 in the authorized academic 
     subjects;
       ``(G) develop guidelines for reporting and disseminating 
     results;
       ``(H) develop standards and procedures for regional and 
     national comparisons; and
       ``(I) take appropriate actions needed to improve the form, 
     content, use, and reporting of results of any assessment 
     authorized by section 411 consistent with the provisions of 
     this section and section 411.
       ``(2) Delegation.--The Board may delegate any of the 
     Board's procedural and administrative functions to its staff.
       ``(3) All cognitive and non cognitive assessment items.--
     The Board shall have final authority on the appropriateness 
     of all assessment items.
       ``(4) Prohibition against bias.--The Board shall take steps 
     to ensure that all items selected for use in the National 
     Assessment are free from racial, cultural, gender, or 
     regional bias and are secular, neutral, and non-ideological.
       ``(5) Technical.--In carrying out the duties required by 
     paragraph (1), the Board may seek technical advice, as 
     appropriate, from the Commissioner and the Advisory Council 
     on Education Statistics and other experts.
       ``(6) Report.--Not later than 90 days after an evaluation 
     of the student achievement levels under section 411(e), the 
     Board shall make a report to the Secretary, the Committee on 
     Education and Labor of the House of Representatives, and the 
     Committee on Labor and Human Resources of the Senate 
     describing the steps the Board is taking to respond to each 
     of the recommendations contained in such evaluation.
       ```(f) Personnel.--
       ``(1) In general.--In the exercise of its responsibilities, 
     the Board shall be independent of the Secretary and the other 
     offices and officers of the Department.
       ``(2) Staff.--
       ``(A) The Secretary may appoint, at the request of the 
     Board, such staff as will enable the Board to carry out its 
     responsibilities.
       ``(B) Such appointments may include, for terms not to 
     exceed three years and without regard to the provisions of 
     title 5, United States Code, governing appointments in the 
     competitive service, not more than six technical employees 
     who may be paid without regard to the provisions of chapter 
     51 and subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates.
       (g) Coordination.--The Commissioner and the Board shall 
     meet periodically--
       ``(1) to ensure coordination of their duties and activities 
     relating to the National Assessment; and
       ``(2) for the Commissioner to report to the Board on the 
     Department's actions to implement the decisions of the Board.
       ``(h) Administration.--Only sections 10, 11, and 12 of the 
     Federal Advisory Committee Act shall apply with respect to 
     the Board.

                     Title VIII--General Provisions

                             (New Title IX)

       1. The House bill and the Senate amendment have identical 
     definitions of ``average daily attendance'' with a small 
     technical difference in wording in paragraph (D).
       HR
       2. The House bill and the Senate amendment have identical 
     definitions of ``average per pupil expenditure.''
       LC
       3. The House bill, but not the Senate amendment, includes a 
     definition of ``beginning teacher.''
       SR
       4. The House bill and the Senate amendment have identical 
     definitions of ``child.''
       LC
       5. The House bill, but not the Senate amendment includes a 
     definition of ``child with a disability.''
       SR with an amendment that the term ``child with 
     disability'' means the same as such words in section 602 of 
     the Individuals with Disabilities Education Act.
       6. The House bill and the Senate amendment have identical 
     definitions of ``community-based organization.''
       LC
       7. The House bill and the Senate amendment have identical 
     definitions of ``consolidated local application'' with a 
     technical difference in cross-references.
       LC
       8. The House bill and the Senate amendment have identical 
     definitions of ``consolidated local plan'' with a technical 
     difference in cross-references.
       LC
       9. The Senate amendment notes that the application is 
     submitted after consultation with the Governor. The House 
     bill does not have such a provision in the definition. 
     However, see note 65 relating to consolidated state 
     applications under section 8302 of the House bill.
       SR
       Report Language:

[[Page 25901]]

       The Conferees recognize the importance of federal funds 
     working in conjunction with state education reform efforts. 
     It is the intent of the Conferees that consultation with the 
     Governor by the State educational agency on the federal 
     education plans be a meaningful and regular collaboration.
       LC--insert in alphabetical order the following definition 
     for Core Academic Subjects:
       ``(#) Core Academic Subjects.--The term `core academic 
     subjects' means English, reading or language arts, 
     mathematics, science, foreign languages, civics and 
     government, economics, arts, history, and geography.''
       10. The Senate amendment notes that the plan is submitted 
     after consultation with the Governor. The House bill does not 
     have such a provision in the definition. However, see note 65 
     relating to consolidated state applications which references 
     consultation with the Governor in the House bill.
       SR
       11. The House bill and the Senate amendment have identical 
     definitions of ``county.''
       LC
       12. The House bill and Senate amendment are similar with 
     the exception that the House bill covers more programs.
       HR/SR with an amendment as follows:
       (#) Covered program.--The term ``covered program'' means 
     each of the programs authorized by--
       (A) part A of title I; [Disadvantaged]
       (B) subpart 3 of part B of title I; [Even Start]
       (C) part C of title I; [Migrants]
       (D) part D of title I; [Neglected & Delinquent]
       (E) part F of title I; [Comprehensive School Reform]
       (F) part A of title II; [Teachers]
       (G) part D of title II; [Technology]
       (H) part A of title III; [Bilingual]
       (I) part A of title IV; [Safe & Drug Free]
       (J) part B of title IV; [21st Century Schools]
       (K) part A of title V; and [Block Grant]
       (L) subpart 2 of part B of title VI. [Rural]
       13. The House bill and the Senate amendment are 
     substantially similar with the exception that the Senate 
     amendment includes expenditures for health services, while 
     the House bill does not. The House bill, but not the Senate 
     amendment excludes expenditures from funds received under 
     Title I. The reference to part A of title IV in the House 
     bill and the reference to subpart 4 of part B of title V are 
     references to the same thing--the innovative grants program.
       HR on 11 (A)
       SR on 11 (B)
       14. The House bill and the Senate amendment are identical.
       LC (fit between definitions at note 14 and 15) insert the 
     following definition for the term distance learning: ``the 
     transmission of educational or instructional programming to 
     geographically dispersed individuals and groups via 
     telecommunications.''
       15. The House bill and the Senate amendment are identical.
       LC
       16. The House bill, but not the Senate amendment, includes 
     a definition of ``effective schools program.''
       SR
       17. The House bill and the Senate amendment are identical.
       LC
       18. The House bill, but not the Senate amendment, includes 
     a definition of ``essential components of reading 
     instruction.''
       SR with an amendment to move definition approved to Title 
     I, Part B notes 117-119:
       ``(18) Essential components of reading instruction.--The 
     term ``major components of reading instruction'' means 
     systematic instruction that includes--
       (A) phonemic awareness;
       (B) phonics;
       (C) vocabulary development;
       (D) reading fluency, including oral reading skills; and
       (E) reading comprehension strategies.
       LC--insert in alphabetical order the following definition 
     for Exemplary Teacher:
       (#) Exemplary teacher.--The term `exemplary teacher' means 
     a teacher who--
       ``(i) is a highly qualified teacher such as a master 
     teacher;
       ``(ii) has been teaching for at least 5 years in a public 
     or private school or institution of higher education;
       ``(iii) is recommended by administrators and other teachers 
     who are knowledgeable of the individual's performance;
       ``(iv) is currently teaching and based in a public school; 
     and
       ``(v) assists other teachers in improving instructional 
     strategies, improves the skills of other teachers, performs 
     mentoring, develops curriculum, and offers other professional 
     development.''
       19. The House bill, but not the Senate amendment, includes 
     a definition of ``family literacy services''
       SR
       20. The House bill and the Senate amendment are identical.
       LC
       21. The House bill, but not the Senate amendment, includes 
     a definition of ``fully qualified.''
       LC--insert in alphabetical order the following definition 
     for Highly Qualified:
     (#) Highly qualified.--The term ``highly qualified 
     teacher''--
       (A) when used with respect to any public elementary or 
     secondary school teacher means that--
       (i) the teacher has obtained full State certification as a 
     teacher (including certification obtained through alternative 
     routes to certification) or passed the State teacher 
     licensing exam, and holds a license to teach in such State, 
     except that when used with respect to any teacher teaching in 
     a public charter school, means that the teacher meets the 
     requirements set forth in the State's public charter school 
     law; and,
       (ii) the teacher has not had certification or licensure 
     requirements waived on an emergency, temporary, or 
     provisional basis.
       (B) when used with respect to--
       (i) an elementary school teacher that is new to the 
     profession, means that the teacher holds a bachelor's degree 
     and has demonstrated, by passing a rigorous State test or 
     tests, subject knowledge and teaching skills in reading, 
     writing, mathematics, and other areas of the basic elementary 
     school curriculum. This requirement shall be considered to be 
     met if a teacher has passed a state-required licensure or 
     certification test or tests, in reading, writing, 
     mathematics, and other elements of the basic elementary 
     school curriculum;
       (ii) a middle or secondary school teacher that is new to 
     the profession, means that the teacher holds at least a 
     bachelor's degree and demonstrates a high level of competency 
     in each of the subject areas in which he or she teaches 
     through--

       (I) a passing level of performance on a rigorous State 
     academic subject area test in each of the subject areas in 
     which he or she provides instruction. This requirement shall 
     be considered to be met if a teacher has passed a state-
     required licensure or certification test or tests in each of 
     the subject areas in which he or she provides instruction; or
       (II) completion, in each of the subject areas in which he 
     or she provides instruction, of: an academic major, a 
     graduate degree, successful completion of coursework 
     equivalent to an undergraduate major, or advanced 
     certification or credentialing.

       (C) When used with respect to an elementary, middle, or 
     high school teacher that is not new to the profession means 
     that the teacher holds a bachelor's degree and has--
       (i) met the applicable standard in (B)(i) or (B)(ii), which 
     includes an option for a test, or
       (ii) demonstrates competence in all the subjects he or she 
     teaches based on a high objective uniform state standard of 
     evaluation that:

       (aa) is set by the State for both grade appropriate 
     academic subject area knowledge and teaching skills;
       (bb) is aligned with State content and student academic 
     achievement standards and developed in consultation with core 
     content specialists, teachers, principals, and school 
     administrators;
       (cc) provides objective, coherent information about 
     teachers' attainment of core content knowledge in the subject 
     or subjects they teach;
       (dd) is applied uniformly to all teachers in the same 
     subject and the same grade level throughout the state;
       (ee) shall take into consideration, but not be based 
     primarily on, the time the teacher has been teaching in the 
     subject area;
       (ff) shall be made available to the public upon request; 
     and
       (gg) may involve multiple, objective measures of teacher 
     competency.

       Report Language:
       With respect to the alternative standard in subsection 
     (C)(ii), the conferees intend that elementary school teachers 
     would meet this standard by demonstrating appropriate 
     knowledge and teaching skills for the grade levels and 
     subjects they teach.
       22. The House bill and Senate amendment are identical.
       LC
       23. The House bill and Senate amendment are identical.
       LC with an amendment to change ``section 101'' to ``section 
     101(a)''
       24. The House bill, but not the Senate amendment, includes 
     a definition of ``limited English proficient student.''
       SR with an amendment to include the following language:
       ``(4) Limited english proficient.--The term `limited 
     English proficient' means an individual--
       ``(A) who is aged 3 through 21;
       ``(B) who is enrolled or preparing to enroll in an 
     elementary school or secondary school;
       ``(C)(i) who was not born in the United States or whose 
     native language is a language other than English;
       ``(ii)(I) who is a Native American or Alaska Native, or a 
     native resident of the outlying areas; and
       ``(II) who comes from an environment where a language other 
     than English has had a significant impact on such 
     individual's level of English language proficiency; or
       ``(iii) who is migratory, whose native language is a 
     language other than English, and who comes from an 
     environment where a language other than English is dominant; 
     and

[[Page 25902]]

       ``(D) who has sufficient difficulty speaking, reading, 
     writing, or understanding the English language, and whose 
     difficulties may deny the individual--
       ``(i) the ability to meet the State's proficient level of 
     performance on State assessments described in section 
     1111(b)(3);
       ``(ii) the ability to successfully achieve in classrooms 
     where the language of instruction is English; or
       ``(iii) the opportunity to participate fully in society.
       25. The House bill and the Senate amendment are identical 
     with the exception that the House bill includes educational 
     service agencies or consortium of such agencies in this 
     definition under (D).
       LC; SR with an amendment to add subsection (e) as follows:
       ``(e) The term includes the State Educational Agency in a 
     State in which the State Educational Agency is the sole 
     educational agency for all public schools.''
       26. The House bill and the Senate amendment are 
     substantially the same. However, the Senate amendment limits 
     application of this definition to mentoring other than 
     teacher mentoring.
       SR with an amendment:
       (26) Mentoring.--The term `mentoring' means, except when 
     used to mean `teacher mentoring,' a process by which a 
     responsible adult, postsecondary student, or secondary 
     student works with a child to provide a positive role model 
     for the child, to establish a supportive relationship with 
     the child, and to provide the child with academic assistance 
     and exposure to new experiences and examples of opportunity 
     that enhance the ability of the child to become a responsible 
     adult.
       27. The House bill, but not the Senate amendment, includes 
     a definition of ``Native American'' and ``Native American 
     language.''
       SR
       28. The House bill and the Senate amendment have identical 
     definitions of ``other staff.''
       LC
       29. The House bill, but not the Senate amendment, would 
     limit eligibility for the Marshall Islands, Federated States 
     of Micronesia, and Palau through fiscal year 2003. The House 
     bill uses the descriptor the ``freely associated states'' 
     while the Senate amendment does not.
       SR with an amendment:
       Outlying Area: The term outlying area means the Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands, and for the purpose of section 
     1121(b)(1) and any other discretionary grant program, 
     includes the freely associated states of the Republic of the 
     Marshall Islands, the Federated States of Micronesia, and the 
     Republic of Palau until agreed provisions for future United 
     States education assistance under a separate agreement for 
     the extension of United States assistance under the Compact 
     of Free Association for each of the freely associated States 
     enters into effect after the date of enactment of this Act.
       Report Language:
       The Conferees intend that the freely associated states of 
     the Republic of the Marshall Islands, the Federated States of 
     Micronesia and the Republic of Palau shall remain eligible 
     for grants as provided for in section 1121(b)(1) and for any 
     other discretionary grant program under the Elementary and 
     Secondary Education Act to the extent such programs, grant 
     assistance, and services are provided to the States and local 
     governments of the United States and residents of such States 
     for which a freely associated state or its citizens were 
     eligible on October 1, 1999. This eligibility shall continue 
     through the period of negotiations referred to in section 231 
     of the Compact of Free Association and shall end once 
     agreements for the extension of United States education 
     assistance under the Compact of Free Association enters into 
     effect. The Conferees understand that the federal financial 
     assistance under the Compact of Free Association for the 
     Republic of the Marshall Islands and the Federated States of 
     Micronesia expires on September 30, 2003 and urge that an 
     agreement regarding future assistance is submitted to the 
     Congress for approval at least one year before that date. The 
     Conferees strongly urge that the agreement be ratified by the 
     Congress prior to September 30, 2003. The Conferees also 
     recognize that the federal financial assistance under the 
     Compact of Free Association for the Republic of Palau is set 
     to expire in 2009 and strongly urge that an agreement 
     regarding future assistance for Palau is submitted to the 
     Congress for approval at least one year before that date. The 
     Conferees strongly urge that the agreement be ratified by 
     Congress prior to that date. The Conferees strongly recommend 
     that any Compact enacted after the date of enactment of this 
     Act provide sufficient funds for education to the Freely 
     Associated States and the Republic of Palau so that funds 
     under the Elementary and Secondary Education Act will no 
     longer be needed for these purposes.
       30. The House bill and the Senate bill are substantially 
     the same, with the exception that the House bill further sets 
     forth examples of a person standing in loco parentis.
       SR
       31. The Senate amendment, but not the House bill, includes 
     a definition of ``parental involvement.''
       HR with an amendment:
       ``(#) Parental Involvement.--The term `parental 
     involvement' means the participation of parents in regular, 
     two-way, and meaningful communication involving student 
     academic learning and other school activities, including 
     ensuring--
       ``(A) that parents play an integral role in assisting their 
     child's learning;
       ``(B) that parents are encouraged to be actively involved 
     in their child's education at school;
       ``(C) that parents are full partners in their child's 
     education included, as appropriate, in decision-making and on 
     advisory committees to assist in the education of their 
     child;
       ``(D) the carrying out of other activities, such as those 
     described in section 1118.
       Report Language:
       The conferees believe that parents must be integrally 
     involved in their child's education in order for that child 
     to increase their academic achievement. The conferees expect 
     that principals, teachers, and school administrators involve 
     parents in school activities, particularly those involving 
     academic achievement and take advantage of their knowledge 
     and expertise.''
       LC--insert in alphabetical order the following definition 
     for Poverty Line:
       ``(#) 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.''
       LC--insert in alphabetical order the following definition 
     for Professional Development:
       ``(#) Professional Development.--The term `professional 
     development' means activities that--
       ``(A) improve and increase teachers' knowledge of the 
     subjects they teach and to enable teachers to become highly 
     qualified;
       ``(B) are an integral part of broad schoolwide and 
     districtwide educational improvement plans;
       ``(C) give teachers, principals, and administrators the 
     knowledge and skills to provide students with the opportunity 
     to meet challenging State academic content standards and 
     student achievement standards;
       ``(D) improve classroom management skills;
       ``(E) are high quality, sustained, intensive, and 
     classroom-focused in order to have a positive and lasting 
     impact on classroom instruction and the teacher's performance 
     in the classroom, and are not one-day or short-term workshops 
     or conferences;
       ``(F) support the recruiting, hiring, and training of 
     highly qualified teachers, including teachers highly 
     qualified through State and local alternative routes;
       ``(G) advance teacher understanding of effective 
     instructional strategies based on scientifically based 
     research for improving student academic achievement or 
     substantially increasing the knowledge and teaching skills of 
     teachers;
       ``(H) are aligned with and directly related to--
       ``(i) State academic content standards, student academic 
     achievement standards, and assessments; and
       ``(ii) the curricula and programs tied to the standards 
     described in clause (i) except when used for activities 
     described in subparagraphs (f) [teaching in different 
     learning styles] and (G) [student behavior] of section 
     2031(a)(3) [see pages 25-26 of Title II side-by-side];
       ``(I) are developed with extensive participation of 
     teachers, principals, parents, and administrators of schools 
     to be served under this Act;
       ``(J) are designed to give teachers of limited English 
     proficient children, and other teachers and instructional 
     staff, the knowledge and skills to provide instruction and 
     appropriate language and academic support services to such 
     children, including the appropriate use of curriculum and 
     assessments;
       ``(K) to the extent appropriate, provide training for 
     teachers and principals in the use of technology so that 
     technology and its applications are effectively used in the 
     classroom to improve teaching and learning in the curriculum 
     and core academic areas in which the teachers provide 
     instruction;
       ``(L) as a whole, are regularly evaluated for their impact 
     on increased teacher effectiveness and improved student 
     achievement, with the findings of such evaluations used to 
     improve the quality of professional development;
       ``(M) provide instruction in methods of teaching children 
     with special needs.
       ``(N) include instruction in the use of data and 
     assessments to inform and instruct classroom practice;
       ``(O) include instruction in ways that teachers, 
     principals, pupil services personnel, and school 
     administrators may work more effectively with parents;
       ``(P) may include the forming of partnerships with 
     institutions of higher education to establish school-based 
     teacher training programs that provide prospective teachers 
     and novice teachers with an opportunity to work under the 
     guidance of experienced teachers and college faculty;

[[Page 25903]]

       ``(Q) may include the creation of programs for 
     paraprofessionals (assisting teachers employed by a local 
     educational agency receiving assistance under this part) to 
     obtain the education necessary for such paraprofessionals to 
     become licensed and certified teachers; and
       ``(R) may include activities that provide follow-up 
     training to teachers who have participated in professional 
     development activities which are designed to ensure that the 
     knowledge and skills learned by the teacher are implemented 
     in the classroom.''
       Report Language for Professional Development definition:
       The Conferees note that classroom-focused activities are 
     those activities which are directly tied to what teachers do 
     in their classrooms and directly linked to the school's 
     standards for student learning.
       32. The Senate amendment, but not the House bill, includes 
     a definition of ``public telecommunications entity.
       HR with an amendment to add ``(12)'' after ``397''.
       33. The House bill and Senate amendment are identical with 
     a minor technical difference in the cross reference to the 
     Individuals With Disabilities Education Act.
       LC
       34. The House bill and the Senate amendment include an 
     identical definition of ``pupil services.''
       LC
       35. The House bill, but not the Senate amendment includes a 
     definition of ``reading.''
       SR with an amendment to move definition to note 121 Title 
     I, Part B:
       ``(32) Reading.--The term `reading' means a complex system 
     of deriving meaning from print that requires all of the 
     following:
       ``(A) The skills and knowledge to understand how phonemes, 
     or speech sounds, are connected in print.
       ``(B) The ability to decode unfamiliar words.
       ``(C) The ability to read fluently.
       ``(D) Sufficient background information and vocabulary to 
     foster reading comprehensions.
       ``(E) The development of appropriate active strategies to 
     construct meaning from print.
       ``(F) The development and maintenance of a motivation to 
     read.''
       36. The House bill, but not the Senate amendment, includes 
     a definition of ``rigorous diagnostic reading and screening 
     assessment tools.''
       HR/SR with an amendment to move to note 122 of Title I, 
     Part B:
       ``Screening assessment.--The term ``screening reading 
     assessment'' means assessments that are--
       ``(A) valid, reliable, and based on scientifically-based 
     reading research; and
       ``(B) a brief procedure designed as a first step in 
     identifying children who may be at high risk for delayed 
     development or academic failure and in need of further 
     diagnosis of their need for special services or additional 
     reading instruction.
       ``Diagnostic reading assessment.--The term `diagnostic 
     reading assessment' means assessments that are--
       ``(A) valid, reliable, and based on scientifically-based 
     reading research;
       ``(B) used for the purpose of
       ``(i) identifying a child's specific areas of strengths and 
     weaknesses so that they have learned to read by the end of 
     the third grade;
       ``(ii) determining any difficulties that a child may have 
     in learning to read and the potential cause of such 
     difficulties; and
       ``(iii) helping to determine possible reading intervention 
     strategies, and related special needs.
       ``Classroom-based instructional assessment.--The term 
     `classroom-based instructional assessment' means--
       ``(A) evaluations of children's learning based on 
     systematic observations by teachers of children performing 
     academic tasks that are part of their daily classroom 
     experience; and
       ``(B) are used to improve instruction in reading, including 
     classroom instruction.''
       37. The House bill includes a precise list of criteria of 
     ``scientifically based research'' while the Senate amendment 
     includes a generalized definition.
       SR with an amendment:
       ``(34) Scientifically based research.--The term 
     `scientifically based research'--
       ``(A) means the application of rigorous, systematic, and 
     objective procedures to obtain reliable and valid knowledge 
     relevant to education activities and programs; and
       ``(B) includes research that--
       ``(i) employs systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) involves rigorous data analyses that are adequate to 
     test the stated hypotheses and justify the general 
     conclusions drawn;
       ``(iii) relies on measurements or observational methods 
     that provide reliable and valid data across evaluators and 
     observers and across multiple measurements and observations 
     and across studies by the same or different investigators;
       ``(iv) is evaluated using experimental or quasi-
     experimental designs in which individuals, entities, 
     programs, or activities are assigned to different conditions 
     and with appropriate controls to evaluate the effects of the 
     condition of interest, with a preference for random 
     assignment experiments, or other designs to the extent such 
     designs contain within-condition or across condition 
     controls;
       ``(v) ensure experimental studies are presented in 
     sufficient detail and clarity to allow for replication, or at 
     a minimum offer the opportunity to build systematically on 
     its findings; and
       ``(vi) has been accepted by a peer reviewed journal or 
     approved by a panel of independent experts through a 
     comparably rigorous, objective, scientific review.''
       38. The House bill and Senate amendment are identical.
       LC
       39. The House bill and Senate amendment are identical.
       LC
       40. The House bill and the Senate amendment are identical.
       LC
       41. The House bill and Senate amendment are identical.
       LC
       42. The Senate amendment, but not the House bill, includes 
     a definition of ``teacher mentoring.'' See note 26 above on 
     mentoring
       HR with an amendment in (31)(A) to strike ``beginning'' and 
     insert ``especially beginning teachers'' after ``teachers'' 
     and in (31)(A)(ii)(I), to strike ``mentor'' and insert 
     ``exemplary''.
       Report Language:
       The Conferees intend that a teacher mentoring program 
     should be available to all teachers who need it, and have 
     emphasized the needs of beginning teachers. This added 
     emphasis should not be read to exclude veteran teachers from 
     mentoring programs, but rather to acknowledge the significant 
     needs of beginning teachers. Data show that half of all 
     beginning teachers in high-poverty schools drop out of 
     teaching within five years, and 20 percent of all new 
     teachers leave teaching within three years. Furthermore, less 
     than half of teachers in low-performing schools, which are 
     also likely to be high-poverty schools, are likely to receive 
     any additional professional development. While beginning 
     teachers need the help and support that a high quality 
     mentoring program can provide, the Conferees believe federal 
     support for mentoring programs should not be limited to 
     beginning teachers only. Veteran teachers can also benefit 
     from sustained high quality mentoring and coaching efforts.
       A number of recent surveys of teachers demonstrate that 
     veteran teachers want the type of sustained professional 
     development that they get by working with successful 
     teachers. Furthermore, there are a variety of existing 
     professional development models that have demonstrated the 
     benefits of providing mentoring and coaching to experienced 
     teachers, among them the El Paso Collective for Education 
     Excellence, which pairs veteran math and science teachers 
     with experienced teaching coaches.
       Rather than single out any one group of teachers for 
     additional support and assistance, the Conferees believe that 
     any teacher, be it a beginning teacher who is struggling to 
     handle a class alone for the first time and is at risk of 
     dropping out of teaching, or one who has taught for multiple 
     years, who has shown difficulty in advancing the knowledge 
     and abilities of his or her students, should receive high 
     quality professional development, which may include being 
     paired with a mentor or coach. Therefore, the Conferees note 
     that mentoring services be provided to, but not be limited to 
     beginning teachers (teachers who have been in the classroom 
     less than 3 years).
       The Conferees also note that teacher mentoring programs 
     should be part of an ongoing developmental induction process. 
     Effective induction processes should be a continuous process 
     throughout a teacher's time as a beginning teacher. This is 
     to provide the teacher with the most support possible to 
     enable the teacher to fully adapt to the teaching profession 
     and increase the likelihood the teacher will continue in the 
     teaching profession.
       43. The House bill and the Senate amendment are similar. 
     Both describe technology as meaning state-of-the-art 
     technology products and services, but the Senate amendment 
     lists many examples of state-of-the-art technology products 
     and services.
       SR with an amendment to strike ``latest''.
       Report Language:
       The Conferees intend the definition of technology to 
     include computer hardware, software and other electronically 
     delivered learning materials, web-based and other digital 
     learning resources, including on-line classes, interactive 
     tutorials, and interactive tools and virtual learning 
     environments, hand-held devices, wireless technology, voice 
     recognition systems and high quality digital video, distance 
     learning networks, visualization, modeling and simulation 
     software and learning focused digital libraries and 
     information retrieval systems, closed circuit television 
     systems, educational television, and radio programs and 
     services, cable television, satellite, copper and fiber optic 
     transmission, video, audio, and CD-ROM discs, and video and 
     audio tapes. The Secretary may incorporate additional 
     specific emerging technologies into the definition of 
     technology.
       44. The House bill, but not the Senate amendment, notes 
     that Parts B, C, D, and E

[[Page 25904]]

     of Title VIII do not apply to Title VI (Impact Aid).
       SR/LC
       45. The House bill, but not the Senate amendment, includes 
     a provision regarding the application of the provisions to 
     Bureau of Indian Affairs schools.
       SR
       46. The House bill and Senate amendment are identical with 
     the exception that there are different provisions of 
     applicability in paragraph (2).
       SR
       47. The House bill and the Senate amendment's uses of funds 
     are substantially the same, with the exception that the House 
     bill has a longer list of additional uses of funds.
       SR
       48. The House bill and the Senate amendment are identical.
       LC
       49. The House bill and the Senate amendment are identical.
       LC
       50. The House bill and the Senate amendment are identical.
       LC
       51. The Senate amendment, but not the House bill, 
     authorizes the consolidation of funds made available under 
     Title I to develop standards and assessments.
       HR with an amendment to strike ``amounts made available'' 
     and insert ``funds described in subsection (a)''.
       52. The House bill and Senate amendment are identical.
       LC
       53. The House bill and the Senate amendment are 
     substantially identical with the exception that the Senate 
     amendment limits this authority to ``covered programs'' while 
     the House bill applies to programs under the Act. The House 
     bill refers to ``any fiscal year'' and the Senate amendment 
     does not.
       SR
       54. The House bill and the Senate amendment are identical 
     with technical differences in the cross reference to the Act.
       LC
       55. The House bill and the Senate amendment are identical.
       LC
       56. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment refers to ``covered programs'' and the House bill 
     refers to the administration of the programs at the school 
     district and school levels. There are other technical 
     differences.
       SR
       57. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment refers to ``covered programs.''
       SR
       58. The Senate amendment, but not the House bill, provides 
     for an administrative funds study.
       SR
       59. The House bill and Senate amendment are substantially 
     the same with the exception of technical differences in 
     citation.
       LC (Need to say McKinney-Vento)
       60. The House bill and Senate amendment are identical.
       LC
       61. The House bill and Senate amendment are identical.
       LC
       62. The House bill and the Senate amendment are identical.
       LC
       63. The Senate amendment, but not the House bill, includes 
     a provision on unneeded program funds. See note    of Title 
     VII, Part B of the House bill for comprehensive 
     transferability authority.
       SR
       64. The House bill and the Senate amendment are similar 
     with the exception that the Senate bill refers to encouraging 
     greater cross--program coordination, planning, and service 
     delivery while the House bill refers to greater coordination 
     between programs and greater flexibility to State and local 
     authorities through the consolidation of State and local 
     plans, applications, and reporting. The Senate amendment 
     refers to integrating Federal programs with programs carried 
     out with State and local funds.
       HR with an amendment to strike Senate's section 5501 and 
     replace with the following:

     SEC. 8301. PURPOSE.

       It is the purpose of this part to improve teaching and 
     learning by encouraging greater cross-program coordination, 
     planning, and service delivery, to provide greater 
     flexibility to State and local authorities through 
     consolidated plans, applications, and reporting, and to 
     enhance the integration of programs under this Act with State 
     and local programs.
       65. The House bill and the Senate amendment are 
     substantially the same with technical differences and the 
     Senate amendment referring to ``covered programs'' while the 
     House bill does not. The House bill allows a consolidated 
     State plan for any program under the Act.
       HR
       66. The Senate amendment, but not the House bill, 
     specifically names Even Start and the Neglected and 
     Delinquent Youth program as additional programs. Both the 
     House bill and Senate amendment allow the Secretary to 
     designate other programs.
       HR with an amendment to strike ``of Dropping Out''.
       67. The House bill and Senate amendment are substantially 
     the same with technical differences in wording.
       HR
       68. The House bill and the Senate amendment are identical.
       LC
       69. The House bill and the Senate amendment are identical 
     with a technical difference in the cross reference to the 
     preceding paragraph.
       LC
       70. The House bill and the Senate amendment are 
     substantially the same with the exception that the Senate 
     amendment includes the parenthetical ``(including assurances 
     of compliance with applicable provisions regarding 
     participation by private school children and teachers).''
       HR
       71. The House bill, but not the Senate amendment, includes 
     a provision on consolidated reporting to the Secretary.
       SR
       72. The House bill and the Senate amendment are identical 
     with the exception that the House bill makes reference to the 
     State educational agency consulting with the Governor. There 
     are technical differences in the cross-references.
       SR
       73. The Senate amendment, but not the House bill, includes 
     additional coordination requirements relative to health and 
     social service programs and reporting thereon.
       SR
       74. The House bill and the Senate bill are substantially 
     the same with the exception that the Senate bill refers to 
     ``covered'' programs. The House bill makes the consolidated 
     plans and applications available to the Governor, but the 
     Senate amendment has no such provision.
       HR with an amendment to insert the following sentence at 
     the end of section 5505 (a): ``The State educational agency 
     shall make any consolidated local plans and applications 
     available to the Governor.''
       75. The House bill and the Senate amendment are 
     substantially the same with the exception of technical 
     differences in cross-references. The House bill, but not the 
     Senate amendment, makes clear that a State may not require 
     separate plans to be submitted.
       SR
       76. The House bill and the Senate amendment are 
     substantially the same with the exception that the House bill 
     references consultation with the Governor.
       SR
       77. The House bill refers to ``State'' while the Senate 
     amendment refers to ``State educational Agency.''
       HR
       78. The House bill and the Senate amendment are 
     substantially the same but with the following exceptions: (1) 
     the House bill refers to applicants other than a State while 
     the Senate amendment refers to applicants other than a State 
     educational agency; (2) in paragraphs (6)(A) and (B), the 
     House bill refers to reports to the Governor and the State 
     educational agency while the Senate amendment refers only to 
     the State educational agency.
       Note 78--HR on 5506(a)(1)-(5) and SR with an amendment on 
     5506 (a)(6)(A) and (B) to read as follows regarding 
     Governors:
       (6) the applicant will--
       (A) make reports to the State educational agency (which 
     agency shall make such report available to the Governor) and 
     the Secretary as may be necessary to enable such agency and 
     the Secretary to perform their duties under each such 
     program; and
       (B) maintain such records, provide such information, and 
     afford access to the records as the State educational agency 
     (after consultation with the Governor) or the Secretary may 
     find necessary to carry out the State educational agency's or 
     the Secretary's duties; and
       LC on 5506(a)(7) and 5506(b).
       79. The House bill and the Senate amendment are 
     substantially the same except that the House bill refers also 
     to the Carl D. Perkins Vocational and Technical Education Act 
     of 1998.
       HR
       80. The House bill and the Senate amendment: (1) have 
     similar provisions in subparagraph (A) but with technical 
     differences; (2) have differences in subparagraphs (B) and 
     (C), except that subparagraph (C) of the House bill is 
     similar to subparagraph (D) of the Senate amendment; (3) are 
     different in that subparagraph (D) of the House bill has no 
     comparable provision in the Senate amendment; and (4) are 
     different in that the House has no subparagraphs (E) and (F) 
     while the Senate amendment does.
       HR with an amendment as follows:
       1. (B)(i)(ii) with the following changes: insert 
     ``statutory or regulatory'' after ``Federal'' in (B) and 
     strike the ``or'' and insert ``and'' in (B)(i).
       2. Insert following combination of House (C) and Senate 
     (E):
       ``(# LC) describes, for each school year, specific, 
     measurable educational goals for the State educational agency 
     and for each local educational agency, Indian tribe, or 
     school that would be affected by the waiver and the methods 
     to be used to annually

[[Page 25905]]

     measure such progress for meeting such goals and outcomes;''
       13. Insert House provision (D):
       ``Explains why the waiver will assist the State educational 
     agency and each affected local educational agency, Indian 
     tribe, or school in reaching such goals.''
       LC--(Senate F becomes E).
       81. The House bill and Senate amendment have identical 
     requirements for additional information to be submitted with 
     a waiver request.
       LC
       82. The House bill and Senate amendment are substantially 
     the same with minor technical differences.
       LC
       83. The House bill and the Senate amendment are identical 
     with the exception of technical differences in cross-
     references. The House bill, but not the Senate amendment, 
     prohibits a waiver of the activities under section 8513. The 
     Senate amendment, but not the House bill, includes a 
     prohibition on the waiver of the selection of school 
     attendance areas in paragraph (10).
       SR with an amendment to insert Senate paragraph (10)
       84. The House bill provides for a waiver period of 5 years. 
     The Senate amendment provides for a waiver period of 3 years.
       SR with an amendment to go to 4 years
       85. The authority to extend a waiver for a longer period is 
     identical in the House bill and Senate amendment.
       LC
       86. The House bill and the Senate amendment have identical 
     provisions on reports submitted by a local educational agency 
     to a State educational agency.
       LC
       87. The House bill and the Senate amendment have identical 
     provisions on the submission of State educational agency 
     reports to the Secretary.
       LC
       88. The House bill and the Senate amendment have identical 
     provisions on the submission of reports by Indian tribes to 
     the Secretary.
       LC
       89. The House bill and the Senate amendment have identical 
     provisions on reports the Secretary submits to Congress.
       LC
       90. The House bill and the Senate amendment on termination 
     of waivers are substantially the same with the exception that 
     the House bill includes a notice and opportunity for a 
     hearing.
       SR
       91. The House bill and the Senate amendment have identical 
     provisions for the publication of waivers that have been 
     granted in the Federal Register.
       LC
       92. The Senate amendment, but not the House bill, moves the 
     authorization of the Education Flexibility (Ed Flex) 
     Partnership Act of 1999 (P.L. 106-25) into the Elementary and 
     Secondary Education Act and makes changes to the law. The 
     House bill makes no changes to the Education Flexibility 
     Partnership Act of 1999 and keeps it as a freestanding 
     authorization.
       SR
       93. The Senate amendment specifies the requirements to be 
     met to become an ``eligible state.'' See also section 
     1111(b)(7) of Title I, Part A of the Senate amendment which 
     stipulates that a state shall not be eligible for designation 
     as an Ed Flex state until the state develops assessments 
     aligned with the state's content standards in at least 
     mathematics and reading or language arts.
       SR
       94. The Senate amendment extends the authorization period 
     for Ed Flex through FY2008. Current law authorization is 
     through FY2004.
       HR/SR with an amendment to be placed in Amendments to Other 
     Statutes:

     ``SEC   . AMENDMENT TO EDUCATION FLEXIBILITY ACT OF 1999.

       Section 4 of the Education Flexibility Act of 1999 is 
     amended by replacing section (b) with the following provision 
     (b):
       ``(b) Included Programs.--The statutory or regulatory 
     requirements referred to in subsection (a)(1)(A) are any such 
     requirements for programs that are authorized under the 
     following provisions and under which the Secretary provides 
     funds to State educational agencies on the basis of a 
     formula:
       ``(1) Part A (other than sections 1111 and 1116), subpart 3 
     of part B, and parts C, D, and F of title I of the No Child 
     Left Behind Act of 2001;
       ``(2) Subpart 2 of part A of title II of the No Child Left 
     Behind Act of 2001;
       ``(3) Subpart 1 of part D of title II of the No Child Left 
     Behind Act of 2001;
       ``(4) Subpart 4 of part B of title III of the No Child Left 
     Behind Act of 2001 if the funding trigger in section 3001 of 
     the No Child Left Behind Act of 2001 is not reached;
       ``(5) Subpart 1 of part A of title IV of the No Child Left 
     Behind Act of 2001;
       ``(6) Part A of title V of the No Child Left Behind Act of 
     2001; and
       ``(7) The Carl D. Perkins Vocational and Technical 
     Education Act of 1998.''
       95. The House bill and the Senate amendment include 
     identical provisions on maintenance-of-effort.
       LC; HR
       96. The House bill and the Senate amendment include 
     identical provisions on reductions in funds in the case of a 
     local educational agency's failure to meet maintenance-of-
     effort requirements.
       LC; HR
       97. The House bill and the Senate amendment have identical 
     waiver provisions.
       LC; HR
       98. The House bill and the Senate amendment are identical 
     with the exception of technical differences in cross-
     references.
       LC
       99. The House bill and the Senate amendment are 
     substantially the same with the exception that the House bill 
     refers to ``another entity'' while the Senate amendment does 
     not have such terms. In addition, the Senate Amendment limits 
     equitable participation of teachers and other educational 
     personnel to training and professional development services.
       SR with an amendment to strike ``.'' at end of provision 
     and insert: ``, and provide their teachers and other 
     education personnel serving such children training and 
     professional development services under such program.''
       100. The House bill and the Senate amendment are identical.
       LC
       101. The House bill and the Senate amendment are identical 
     with the exception that the House bill requires services and 
     benefits to be provided in a timely manner.
       SR
       102. The House bill and the Senate amendment on 
     expenditures are identical.
       LC
       103. The House bill and the Senate amendment are identical 
     with the exception that the House bill refers to an entity.
       SR
       104. The House bill and the Senate amendment have the 
     equitable participation requirements applicable to the same 
     as well as different programs. The House bill, but not the 
     Senate amendment, includes the 21st Century Community 
     Learning Centers and technology programs.
       HR/SR with an amendment as follows:
       (b) Applicability.--
       (1) In general.--This section applies to programs under--
       (A) part B, subparts 1 and 3 of title I; [Reading First and 
     Even Start]
       (B) part C of title I; [Migrants]
       (C) part A of title II; [Teachers]
       (D) part B of title II; [Math/Science]
       (E) part D of title II; [Technology]
       (F) part A of title III; [Bilingual]
       (G) part A of title IV; and [Safe & Drug Free]
       (H) part B of title IV. [21st Century Schools]
       105. The House bill and Senate amendment have an identical 
     definition of ``eligible children.''
       LC
       106. The House bill and the Senate amendment have 
     substantially the same consultation provisions with the 
     exception that the House bill includes consultation 
     requirements for who will provide services in subparagraph 
     (C), how results of assessments will be used to improve 
     services in subparagraph (D), the size and scope of equitable 
     services in subparagraph (E) and how and when decisions will 
     be made in subparagraph (F).
       SR
       107. The House bill, but not the Senate amendment, includes 
     a provision governing disagreements between private school 
     officials and agencies, consortia and entities with respect 
     to the provision of services through a contract.
       SR
       108. The House bill and the Senate amendment are identical 
     with the exception that the House bill ensures that 
     consultation continues throughout the implementation and 
     assessment of activities and refers to an entity.
       SR
       109. The House bill and the Senate amendment have identical 
     provisions on the content of discussions during the 
     consultations.
       SR/LC
       110. The House bill and Senate amendment have identical 
     provisions on the public control of funds.
       LC
       111. The House bill and the Senate amendment have identical 
     provisions on the public control of funds.
       SR/LC
       112. The House bill and the Senate amendment have identical 
     language on the provision of services with the exception that 
     the House bill refers to an ``other entity'' in clause (ii).
       SR/LC
       113. The House bill and the Senate amendment have identical 
     provisions on standards for bypass with the exception that 
     the House bill also refers to ``other entity.'' There are 
     technical differences in the two versions in cross-
     references. The House bill includes factors the Secretary 
     shall consider in making his determination in paragraph (3) 
     while the Senate does not.
       SR
       114. The House bill and the Senate amendment are identical 
     with technical differences in cross-references and the House 
     bill refers to an ``entity'' while the Senate amendment does 
     not.

[[Page 25906]]

       SR/LC
       115. The House bill and the Senate amendment have identical 
     provisions on appeals to the Secretary.
       LC
       116. The House bill and the Senate amendment are identical 
     with the exception of technical differences in cross-
     references and the House bill refers to ``entity'' while the 
     Senate bill does not.
       SR/LC
       117. The House bill and Senate amendment are identical.
       LC
       118. The House bill and the Senate amendment have identical 
     provisions on petitioning for review of decisions with the 
     exception that the House bill also refers to an entity.
       SR/LC
       119. The House bill and the Senate amendment have identical 
     provisions on findings of fact.
       LC
       120. The House bill and the Senate amendment have identical 
     provisions on jurisdiction.
       LC
       121. The House bill and the Senate amendment have identical 
     provisions on determinations by the Secretary with the 
     exception that the House bill also refers to an ``entity.'' 
     There are technical differences in the cross-references.
       SR/LC
       122. The House bill and the Senate amendment have identical 
     provisions on payments from State allotments.
       LC
       123. The House bill and the Senate amendment have identical 
     provisions on prior determinations with the exception of 
     technical differences in cross-references to the Act.
       LC
       124. The House bill and the Senate amendment are identical.
       LC
       125. The House bill and the Senate amendment are similar. 
     The House bill has a similar provision in Title I, Part H in 
     section 1805. Both the House bill and the Senate amendment 
     reference how home schools are treated under state law.
       SR with an amendment:

     SEC.  . PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

       (a) Applicability to Non-Recipient Private Schools.--
     Nothing in this Act shall be construed to affect any private 
     school that does not receive funds or services under this 
     Act, nor shall any student who attends a private school that 
     does not receive funds or services under this Act be required 
     to participate in any assessment referenced in this Act.
       (b) Applicability to Home Schools.--Nothing in this Act 
     shall be construed to affect home schools, whether or not a 
     home school is treated as a home school or a private school 
     under State law, nor shall any home schooled student be 
     required to participate in any assessment referenced in this 
     Act.
       (c) Rule of Construction on Prohibition of Federal Control 
     Over Nonpublic Schools.--Nothing in this Act shall be 
     construed to permit, allow, encourage, or authorize any 
     Federal control over any aspect of any private, religious, or 
     home school, whether or not a home school is treated as a 
     private school or home school under State law. This section 
     shall not be construed to bar private, religious, or home 
     schools from participation in programs or services under this 
     Act.
       (d) Rule of Construction on State and Local Educational 
     Agency Mandates.--Nothing in this Act shall be construed to 
     require any State or local educational agency that receives 
     funds under this Act to mandate, direct, or control the 
     curriculum of a private or home school, regardless or whether 
     or not a home school is treated as a private school under 
     state law, nor shall any funds under this Act be used for 
     this purpose.
       126. The House bill and the Senate amendment are identical 
     with the exception of technical differences.
       SR with an amendment (included in new language at note 125)
       127. The House bill, but not the Senate amendment, includes 
     a provision on the privacy of assessment results. The House 
     bill has an identical provision in section 1807 of Title I, 
     Part H. The Senate amendment includes a similar provision in 
     section 1111(j)(1)(F) but with reference to section 445 
     instead of section 444.
       HR with an amendment to insert:

     ``SEC.   . PRIVACY OF ASSESSMENT RESULTS.

       ``Any results from individual assessments referenced in 
     this title which become part of the education records of the 
     student shall have the protections as provided in section 444 
     of the General Education Provisions Act.''
       128. The House bill and the Senate amendment are identical 
     with the exception that the House bill includes other Acts in 
     addition to the No Child Left Behind Act.
       SR with an amendment (included in new language at note 125)
       129. The Senate amendment, but not the House bill, includes 
     a second provision relating to recipient nonpublic schools 
     that is identical to the House bill. The Senate amendment, 
     but not the House bill, includes rule of construction 
     regarding a superseded provision.
       SR (included in new language at note 125)
       130. The House bill makes funds under the Act conditional 
     upon a local educational agency submitting to the Secretary a 
     certification that no policy of the agency prevents or 
     otherwise denies participation in constitutionally protected 
     prayer in public schools. Under the Senate amendment a state 
     or local educational agency is ineligible for ESEA funds if a 
     Federal court adjudges the agency to have willfully violated 
     a Federal court order with respect to school prayer.
       HR/SR with an amendment:
       (Ratified October 30, 2001)
       ``Sec.   . (a) Guidance.--The Secretary shall provide and 
     revise guidance, every two years by September 1, to State 
     educational agencies, local educational agencies and the 
     public on constitutionally protected prayer in public 
     schools, including making such guidance available on the 
     Internet. Such guidance shall be reviewed, prior to 
     distribution, by the Office of Legal Counsel of the U.S. 
     Department of Justice prior to distribution for verification 
     that the guidance represents the current state of the law 
     concerning constitutionally protected prayer in public 
     schools.
       (b) Certification.--As a condition of receiving funds under 
     this Act, a local educational agency shall certify in writing 
     to the State educational agency that no policy of the local 
     educational agency prevents, or otherwise denies 
     participation in, constitutionally protected prayer in public 
     schools, as detailed in the guidance required under 
     subsection (a). Such certification shall be provided annually 
     by October 1. The State educational agency shall report to 
     the Secretary by November 1 of each year a list of those 
     local educational agencies that have not filed the 
     certification or against which complaints have been made to 
     the State educational agency that certain local educational 
     agencies are not in compliance with this section.
       (c) Enforcement.--The Secretary is authorized and directed 
     to effectuate subsection (b) by issuing, and securing 
     compliance with, rules or orders with respect to a local 
     educational agency that fails to certify, or is found to have 
     improperly certified, that no policy of the local educational 
     agency prevents, or otherwise denies participation in, 
     constitutionally protected prayer in public schools.''
       131. The House bill and the Senate amendment are identical 
     with technical differences.
       SR with an amendment to strike ``emphasizes'' and insert 
     ``includes'' in paragraph (3).
       132. The House bill and the Senate amendment are identical.
       LC
       133. The Senate amendment, but not the House bill, includes 
     a provision regarding state and local educational agency 
     mandates with respect to home school or private school 
     curricula.
       HR with an amendment (included in new language at note 125)
       134. The House bill includes a prohibition with respect to 
     Federal mandates, direction, and control while the Senate 
     amendment includes a rule of construction.
       SR/HR with an amendment (new statutory and report language 
     below covers notes 134, 135, 140, 141)
       Include in Title VIII:

     SEC.   . PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF 
                   FEDERAL FUNDS.

       (a) General Prohibition.--Nothing in this Act shall be 
     construed to authorize an officer or employee of the Federal 
     Government to mandate, direct, or control a State, local 
     educational agency, or school's curriculum, program of 
     instruction, or allocation of State or local resources, or 
     mandate a State or any subdivision thereof to spend any funds 
     or incur any costs not paid for under the Act.
       (b) Prohibition on Endorsement of Curriculum.--
     Notwithstanding any other prohibition of law, no funds 
     provided to the Department of Education under this Act may be 
     used by the Department to endorse, approve, or sanction any 
     curriculum designed to be used in an elementary or secondary 
     school.
       (c) Prohibition on Requiring Federal Approval or 
     Certification of Standards.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, no State shall be required to have academic 
     content or student academic achievement standards approved or 
     certified by the Federal Government, in order to receive 
     assistance under this Act.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to affect requirements under title I or title 
     VII of this Act.
       (d) Rule of Construction on Building Standards.--Nothing in 
     this Act shall be construed to mandate national school 
     building standards for a State, local educational agency, or 
     school.
       Report Language:
       The Conferees intend that subsection (b) does not prohibit 
     the Department from identifying and disseminating information 
     about successful or promising instructional educational 
     practices, to the extent practicable, based on scientifically 
     based research.

[[Page 25907]]

       Include in Title I, Part H:

     SEC.   . PROHIBITION OF FEDERAL MANDATES, DIRECTION, OR 
                   CONTROL.

       Nothing in this title or title VI Part A shall be construed 
     to authorize an officer or employee of the Federal Government 
     to mandate, direct, or control a State, local educational 
     agency, or school's specific instructional content or 
     academic achievement standards and assessments, curriculum, 
     or program of instruction.

     SEC.   . RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

       Nothing in this title shall be construed to mandate 
     equalized spending per pupil for a State, local educational 
     agency, or school.
       135. The House bill, but not the Senate amendment, includes 
     rules of construction on federal mandates and control, 
     equalized spending, and building standards.
       SR/HR with an amendment (See new language in note 134)
       136. The House bill, but not the Senate amendment, includes 
     a provision on rulemaking.
       SR
       Report Language:
       This section directs the Secretary to issue regulations 
     under this Act only to the extent that they are necessary to 
     ensure that there is compliance with the specific 
     requirements and assurances of the Act. The conferees do not 
     intend this language to prohibit the Secretary from issuing 
     regulations that are reasonably necessary to ensure timely 
     and orderly grant-making, high-quality applications that 
     respond to priority needs, or grantee accountability. Rather, 
     the conferees intend this section to constrain the 
     Secretary's ability to issue regulations that would impose 
     upon grantees additional substantive programmatic 
     requirements or limitations that are not necessary to ensure 
     compliance with the specific requirements and assurances 
     imposed by the statute.
       137. The House bill, but not the Senate amendment, includes 
     a report on audits.
       HR
       138. The House bill authorizes a study of testing by the 
     Secretary and the Senate amendment authorizes the Secretary 
     to give a grant to the National Research Council of the 
     National Academy of Sciences to conduct an ongoing evaluation 
     of high-stakes assessments. There are substantial differences 
     in the House bill and Senate amendment.
       HR/SR with an amendment to strike all language and insert 
     the following and to move to Title I, Part E:

     ``SEC.   . ASSESSMENT EVALUATION.

       ``(a) In General.--The Secretary shall conduct an 
     independent study of assessments used for State 
     accountability purposes and for making decisions about the 
     promotion and graduation of students. Such research shall be 
     conducted over a period not to exceed 5 years and shall 
     address the components described in subsection (c).
       ``(b) Contract Authorized.--The Secretary is authorized to 
     award a contract, through a peer review process, to an 
     organization or entity capable of conducting rigorous, 
     independent research. The Assistant Secretary of Educational 
     Research and Improvement shall appoint peer reviewers to 
     evaluate the applications for this contract. The study 
     shall--
       ``(1) synthesize and analyze existing research that meets 
     standards of quality and scientific rigor; and
       ``(2) evaluate assessment and accountability systems in 
     state educational agencies, local educational agencies, and 
     schools; and
       ``(3) make recommendations to the Department and to the 
     Committee on Education and the Workforce of the United States 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the United States Senate, 
     based on the findings of the study.
       ``(c) Components of the Research Program.--The study 
     described in subsection (a) shall examine--
       ``(1) the effect of the assessment and accountability 
     systems described in section (b) on students, teachers, 
     parents, families, schools, school districts, and States, 
     including correlations between such systems and
       ``(A) student academic achievement, progress to the State-
     defined level of proficiency, and progress toward closing 
     achievement gaps, based on independent measures;
       ``(B) changes in course offerings, teaching practices, 
     course content, and instructional material;
       ``(C) changes in turnover rates among teachers, principals, 
     and pupil-services personnel;
       ``(D) changes in dropout, grade-retention, and graduation 
     rates for students; and
       ``(E) such other effects as may be appropriate;
       ``(2) the effect of the assessments on students with 
     disabilities;
       ``(3) the effect of the assessments on low, middle, and 
     high socioeconomic status students, limited and nonlimited 
     English proficient students, racial and ethnic minority 
     students, and nonracial or nonethnic minority students;
       ``(4) guidelines for assessing the validity, reliability, 
     and consistency of those systems using nationally recognized 
     professional and technical standards; and
       ``(5) the relationship between accountability systems and 
     the inclusion or exclusion of students from the assessment 
     system; and
       ``(6) such other factors as the Secretary finds 
     appropriate.
       ``(d) Reporting.--Not later than 3 years after the contract 
     described in section (b) is awarded, the organization or 
     entity conducting the study will submit an interim report to 
     the Committee on Education and the Workforce of the United 
     States House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the United States Senate, 
     and to the President and the States, and shall make the 
     report widely available to the public. The organization or 
     entity shall submit a final report to the same recipients as 
     soon as possible after the completion of the study. 
     Additional reports may be periodically released as necessary.
       ``(e) Reservation of Funds.--The Secretary may reserve up 
     to 15 percent of the funds authorized to be appropriated for 
     part E of title I to carry out the study, except such 
     reservation of funds shall not exceed $1,500,000.''
       139. The Senate amendment, but not the House bill, includes 
     an authorization for a study of the costs of conducting 
     student assessments under section 1111. See note 137 above 
     which includes cost elements as a component part of another 
     study.
       SR
       Report Language:
       The Conferees intend the General Accounting Office (GAO) to 
     conduct a study of the costs to States of developing and 
     administering the academic assessments required under section 
     1111(b) of Title I of this Act. The GAO should determine the 
     anticipated aggregate cost for all States to develop and 
     administer such assessments, as well as the portion of the 
     cost that is expected to be incurred in each of the fiscal 
     years 2002 through 2008. The GAO should determine such costs 
     for each State and the factors that may explain cost 
     variations States. The Conferees expect the GAO to report the 
     results of such study to the House Education and the 
     Workforce Committee and the Senate Health, Education, Labor, 
     and Pensions Committee no later than one year after the date 
     of enactment of this Act.
       140. The House bill, but not the Senate amendment, includes 
     a prohibition on Federal government approval of standards. 
     The House bill, but not the Senate amendment, includes a rule 
     of construction relative to Title I. The Senate amendment 
     contains a limitation on conditions which is similar in 
     section 1111(h).
       SR/HR with an amendment (See new language at note 134)
       141. The House bill, but not the Senate amendment, includes 
     a prohibition on the endorsement by the Federal government of 
     curriculum. A related provision is included in the Senate 
     amendment in section 15.
       SR/HR with an amendment (See new language at note 134)
       142. The House bill and Senate amendment have similar rules 
     of construction regarding databases of personally 
     identifiable information, but with technical differences.
       HR
       143. The House bill includes a provision which requires 
     secondary schools that receive funds under the Elementary and 
     Secondary Education Act to permit armed services recruitment 
     activities on school grounds in a manner reasonably 
     accessible to all students at the school. The Senate 
     amendment prohibits Department of Defense funds from being 
     provided to higher education institutions that deny or that 
     effectively prevent the Secretary of Defense from obtaining 
     for military recruiting purposes, entry to campuses or access 
     to students or access to directory information pertaining to 
     students. The Senate amendment includes an exemption 
     provision, a provision regarding covered students, procedures 
     to making determinations, and a definition of ``directory 
     information.''
       HR/SR with an amendment to read as follows:
       (Ratified on October 30, 2001).

     SEC.   . ARMED FORCES RECRUITERS ACCESS TO STUDENTS AND 
                   STUDENT RECRUITING INFORMATION.

       ``(a) Policy.--
       ``(1) Notwithstanding section 444(a)(5)(B) of the General 
     Education Provisions Act, each local educational agency 
     receiving assistance under this Act shall provide, upon a 
     request made by military recruiters or institutions of higher 
     education as defined by section 101(a) of the Higher 
     Education Act, access to secondary school student names, 
     addresses, and telephone listings.
       ``(2) A parent or student may request that the student's 
     name, address, and telephone listing under subparagraph (1) 
     not be released without prior written parental consent, and 
     the local education agency shall notify parents of such 
     option.
       ``(3) Each local educational agency receiving assistance 
     under this Act shall provide military recruiters the same 
     access to secondary school students as is provided generally 
     to postsecondary educational institutions or to prospective 
     employers of those students.
       ``(b) Notification.--The Secretary of Education, in 
     consultation with the Secretary of

[[Page 25908]]

     Defense, shall, not later than 120 days after the enactment 
     of this Act, notify principals, school administrators, and 
     other educators about the requirements of this section.
       ``(c) Exception.--The requirements of this section do not 
     apply to a private secondary school that maintains a 
     religious objection to service in the Armed Forces and which 
     objection is verifiable through the corporate or other 
     organizational documents or materials of that school.
       ``(d) Special Rule.--A local educational agency prohibited 
     by Connecticut state law (either explicitly by statute or 
     through statutory interpretation of the State Supreme Court 
     or State Attorney General) from providing military recruiters 
     with information or access as required by this section shall 
     have until May 31, 2002 to comply with such requirements.
       144. The Senate amendment, but not the House bill, 
     includes: (1) findings relative to Armed Forces and 
     recruitment; (2) a requirement for states to report to the 
     Secretary a list of schools that do not allow access to 
     military recruiters; and (3) a program for making awards to 
     states and schools for the purpose of educating principals, 
     administrators and others about career opportunities in the 
     Armed Forces.
       SR
       (Ratified on October 30, 2001).
       145. The House bill, but not the Senate amendment, includes 
     a severability clause.
       SR
       146. The House bill, but not the Senate amendment, 
     encourages the Secretary to promote education savings 
     accounts.
       HR
       147. The House bill, but not the Senate amendment, includes 
     a Sense of the Congress provision on American made steel. 
     Subsections (a) and (b) relate to the Sense of Congress.
       HR
       148. The House bill, but not the Senate amendment, requires 
     school systems that receive funding under the Act to use 
     American made steel and to comply with the Buy America Act.
       HR
       149. The House bill, but not the Senate amendment, includes 
     a Sense of the Congress provision on paperwork reduction.
       HR
       150. The Senate amendment, but not the House bill, includes 
     findings and a Sense of the Senate provision regarding tax 
     relief for K-12 education expenses.
       SR
       151. The Senate amendment, but not the House bill, includes 
     findings and a Sense of the Senate provision relating to tax 
     relief for non-reimbursed education expenses of educators.
       SR
       152. The Senate amendment, but not the House bill, includes 
     findings and a Sense of the Senate provision regarding postal 
     rates for educational materials.
       SR with report language to be added under Reading (Title I, 
     Part B, note 164)
       Report Language:
       In the 2000 rate case, the U.S. Postal Service levied an 
     18% increase on mail sent under Bound Printed Matter (BPM), 
     the class of mail under which books are sent to our nation's 
     schools, libraries, literacy, and early childhood programs. 
     This increase, the highest of any category, has had a direct 
     impact on the ability of several literacy and free book 
     programs to deliver their services. It has come to the 
     attention of the Conferees that the US Postal Service intends 
     to again increase the rates charged for bound printed matter, 
     including books. Given the educational importance of the 100 
     million books shipped to children annually under this rate, 
     the Conferees urge the U.S. Postal Service and Congress to 
     take action to ensure the continued affordability of books 
     for all of America's children.
       153. The Senate amendment, but not the House bill, includes 
     findings and a Sense of the Senate provision relating to 
     campaign finance reform legislation.
       SR
       154. The Senate amendment, but not the House bill, includes 
     a Sense of the Senate provision that nothing in the Act or 
     any provision of law shall discourage the teaching of the 
     Bible in any public school.
       SR
       155. The Senate amendment, but not the House bill, includes 
     a Sense of the Senate provision relating to science 
     education.
       SR
       156. The Senate amendment, but not the House bill, includes 
     a Sense of the Congress provision regarding the study of the 
     Declaration of Independence, the United States Constitution, 
     and the Federal Papers.
       SR
       157. The Senate amendment, but not the House bill includes 
     findings and a Sense of the Congress provision relating to 
     the provision of educational materials which increase the 
     awareness of students about the contributions of veterans to 
     the nation.
       SR
       158. The Senate amendment, but not the House bill, includes 
     findings and a Sense of the Senate provision regarding the 
     benefits of music and arts education.
       SR
       159. The House bill and the Senate amendment both prohibit 
     any mandatory nationwide test or certification of teachers. 
     There are technical differences in the two bills. The House 
     bill, but not the Senate amendment, includes a provision on 
     the prohibition on withholding of funds relating to teacher 
     or paraprofessional certification.
       HR with an amendment to insert House (b) after Senate (b).
       160.The House bill and the Senate amendment have similar 
     provisions on the prohibition of national testing with 
     technical differences in the two versions. The Senate 
     amendment, but not the House bill, includes an exception for 
     the National Assessment of Educational Progress and the Third 
     International Math and Science Study. The House bill, but not 
     the Senate amendment, makes an exception for tests 
     ``specifically and explicitly authorized by law.''
       SR with an amendment (see language below) and report 
     language:

     SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED TESTING.

       (a) General Prohibition.--Notwithstanding any other 
     provisions of Federal law and except as provided in 
     subsection (b), no funds provided under this Act to the 
     Secretary or to the recipient of any award may be used to 
     develop, pilot test, field test, implement, administer, or 
     distribute any federally sponsored national test in reading, 
     mathematics, or any other subject, unless specifically and 
     explicitly authorized by law.
       (b) Exceptions.--Subsection (a) shall not apply to 
     international comparative assessments developed under the 
     authority of section 404(a)(6) of the National Education 
     Statistics Act of 1994 (20 U.S.C. 9003(a)(6) et seq.) and 
     administered to only a representative sample of pupils in the 
     United States and in foreign nations.
       Report Language:
       The prohibition on federally sponsored testing does not 
     apply to a test that is specifically and explicitly 
     authorized by law, inclusive of the National Education 
     Statistics Act of 1994.
       161. The Senate amendment, but not the House bill, includes 
     a rule of construction on the prohibition of discrimination 
     relative to the fifth and 14th Amendments.
       HR
       162. The House bill, but not the Senate amendment, includes 
     a Sense of the Congress provision relating to memorials on 
     campus.
       HR
       163. The House bill and Senate amendment include Sense of 
     the Congress and Sense of the Senate provisions, 
     respectively, regarding 95 percent of federal education funds 
     being used for improving academic achievement in the 
     classroom. The Senate amendment includes findings while the 
     House bill does not.
       HR/SR to strike all language.
       164. The House bill, but not the Senate amendment, includes 
     a provision on the evaluation of Elementary and Secondary 
     Education Act programs. The Senate amendment does continue 
     some evaluations specific to individual programs.
       SR
       165. The House bill, but not the Senate amendment, 
     transfers comprehensive regional assistance centers from 
     Title XIII of the Elementary and Secondary Education Act to 
     Title VIII.
       HR
       166. The Senate amendment, but not the House bill, provides 
     for those grants or contracts entered into relating to 
     section 3141 (current law Title III of ESEA is Regional 
     Technical Support and Professional Development) or part A or 
     C of Title XIII (current law part A is Comprehensive Regional 
     Assistance Centers and part C is Eisenhower Regional 
     Mathematics and Science Education Consortia) before enactment 
     of this Act, to be continued for the duration of such 
     contract and award. The Senate amendment authorizes such sums 
     for this purpose. The Senate amendment, but not the House 
     bill, repeals this provision contingent upon enactment of a 
     law that reauthorizes a provision of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994 and, provided such enactment occurs after the date of 
     enactment of the Better Education for Students and Teachers 
     Act. See also section 3 of the House bill relating to a 
     transition rule for multiyear grants.
       HR/SR with an amendment to be placed in Amendments to Other 
     Statutes:


                ``CERTAIN MULTIYEAR GRANTS AND CONTRACTS

       ``Sec __. In General.--The Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 is 
     amended by adding the following provision after Part I.

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

       ``Sec. 1001. (a) In General.--Notwithstanding any other 
     provision of law, from funds appropriated under subsection 
     (b), the Secretary--
       ``(1) shall continue to fund any multiyear grant or 
     contract awarded under section 3141, and Part A and Part C of 
     title XIII, of the Elementary and Secondary Education Act of 
     1965 as such provision was in effect on the day preceding the 
     date of the enactment of the [SHORT TITLE], for the duration 
     of that multiyear award in accordance with its terms; and
       ``(2) may extend, on a year-to-year basis, any multiyear 
     grant or contract awarded

[[Page 25909]]

     under an authority described in paragraph (1) that expires 
     after the enactment of [SHORT TITLE], but before the 
     enactment of successor authority to the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated for each fiscal year such sums 
     as may be necessary to carry out subsection (a).''
       167. The House bill, but not the Senate amendment, 
     transfers the national diffusion network from Title XIII of 
     the Elementary and Secondary Education Act to Title VIII.
       HR
       168. The House bill, but not the Senate amendment, 
     transfers the Eisenhower Regional Mathematics and Science 
     Education Consortia from Title XIII of the Elementary and 
     Secondary Education Act to Title VIII.
       HR
       169. The House bill, but not the Senate amendment, 
     transfers the Technology-Based Technical Assistance program 
     from Title XIII of the Elementary and Secondary Education Act 
     to Title VIII.
       HR
       170. The House bill, but not the Senate amendment, 
     transfers the Regional Technical Support and Professional 
     Development program from Title III of the Elementary and 
     Secondary Education Act to Title VIII.
       HR
       LC--Add the following provisions in General Provisions 
     where most appropriate:
       ``Sec. __. (a) Unsafe School Choice Policy.--Each State 
     receiving funds under this Act shall establish and implement 
     a statewide policy requiring that a student attending a 
     persistently dangerous public elementary and secondary 
     school, as determined by the State in consultation with a 
     representative sample of local educational agencies, or who 
     becomes a victim of a violent criminal offense, as determined 
     by State law, while in or on the grounds of a public 
     elementary or secondary school that the student attends, be 
     allowed to attend a safe public elementary or secondary 
     school within the local educational agency, including a 
     public charter school.
       (b) Certification.--As a condition of receiving funds under 
     this Act, a State shall certify in writing to the Secretary 
     that the State is in compliance with this section.''


                     CIVIL RIGHTS OF BENEFICIARIES

       ``Sec. __. (a) In General.--Nothing in this Act shall be 
     construed to permit discrimination on the basis of race, 
     color, religion, sex (except as otherwise permitted under 
     Title IX of the Education Amendment of 1972), national 
     origin, or disability in any program funded under this Act.
       ``(b) Rule of Construction.--Nothing in this Act shall be 
     construed to require the disruption of services to a child or 
     the displacement of a child enrolled in or participating in a 
     program administered by an eligible entity, as defined in 
     section 1116 of title I and Part B of title V, at the 
     commencement of the entity's participation in a grant under 
     section 1116 of title I or part B of title V.

                   Title IX--Miscellaneous Provisions

                      (Subsumed in Various Titles)

       1. The House bill, but not the Senate amendment, makes 
     several changes to the National Education Statistics Act 
     (NESA) which relate to the use of the National Assessment of 
     Educational Progress (NAEP) for purposes of rewards and 
     sanctions under Title VII of the House bill and requiring 
     NAEP to be administered annually in reading and math.
       HR (separate changes to NAEP now going in Title VI, Part A)
       2. The House bill, but not the Senate amendment amends the 
     General Education Provisions Act to give parents the right to 
     access instructional materials, and to require parental 
     consent prior to giving or administering certain surveys, 
     evaluations, medical tests, treatments or immunizations to 
     minors.
       HR/SR with an agreement to move to Title X, Amendments to 
     Other Statutes and with an amendment to strike all language 
     and insert the following:

     ``SEC.   . STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, 
                   AND ADMINISTRATION OF CERTAIN PHYSICAL 
                   EXAMINATIONS TO MINORS.

       Section 445 of the General Education Provisions Act (20 
     U.S.C. 1232h) is amended as follows--
       ``(a) Strike items (1) through (7) of subsection (b) and 
     replace with the following items (1) through (8)--
       ``(1) political affiliations or beliefs of the student or 
     the student's parent;
       ``(2) mental or psychological problems of the student or 
     his family;
       ``(3) sex behavior or attitudes;
       ``(4) illegal, anti-social, self-incriminating or demeaning 
     behavior;
       ``(5) critical appraisals of other individuals with whom 
     respondents have close family relationships;
       ``(6) legally recognized privileged or analogous 
     relationships, such as those with lawyers, physicians, and 
     ministers;
       ``(7) religious practices, affiliations, or beliefs of the 
     student or student's parent; or
       ``(8) income (other than that required by law to determine 
     eligibility for participation in a program or for receiving 
     financial assistance under such program),''
       ``(b) Redesignate subsections (c) through (e) as 
     subsections (d) through (f), respectively, and insert the 
     following as subsection (c)--
       ``(c) Development of Local Policies Concerning Student 
     Privacy, Parental Access to Information, and Administration 
     of Certain Physical Examinations to Minors.--
       ``(1) Except as provided in subsections (a) and (b), a 
     local educational agency that receives funds under any 
     applicable program shall develop and adopt policies, in 
     consultation with parents, regarding--
       ``(A) the right of a parent of a student to inspect upon 
     the request of the parent a survey created by a third party 
     before the survey is administered or distributed by a school 
     to a student, and any applicable procedures for granting a 
     request by a parent for reasonable access to such survey 
     within a reasonable period of time after the request is 
     received;
       ``(B) arrangements to protect student privacy that are 
     provided by the agency in the event of the administration or 
     distribution of a survey to a student containing one or more 
     of the following items, including the right of a parent of a 
     student to inspect upon the request of the parent any survey 
     containing one or more of the following items--

       ``(i) political affiliations or beliefs of the student or 
     the student's parent;
       ``(ii) mental or psychological problems of the student or 
     his family;
       ``(iii) sex behavior or attitudes;
       ``(iv) illegal, anti-social, self-incriminating or 
     demeaning behavior;
       ``(v) critical appraisals of other individuals with whom 
     respondents have close family relationships;
       ``(vi) legally recognized privileged or analogous 
     relationships, such as those with lawyers, physicians, and 
     ministers;
       ``(vii) religious practices, affiliations, or beliefs of 
     the student or student's parent; or
       ``(viii) income (other than that required by law to 
     determine eligibility for participation in a program or for 
     receiving financial assistance under such program); and

       ``(C) the right of a parent of a student to inspect upon 
     the request of the parent any instructional material used as 
     part of the educational curriculum of the student, and any 
     applicable procedures for granting a request by a parent for 
     reasonable access to instructional material within a 
     reasonable period of time after the request is received;
       ``(D) the administration of physical examinations or 
     screenings that the school or agency may choose to administer 
     to a student;
       ``(E) the collection, disclosure, or use of personal 
     information collected from students for the purpose of 
     marketing or for selling or giving such personal information 
     to others for such purpose, including arrangements to protect 
     student privacy that are provided by the agency in the event 
     of the collection, disclosure, or use of personal information 
     collected from students for the purpose of marketing or for 
     selling or giving such information to others for such 
     purpose; and
       ``(F) the right of a parent of a student to inspect upon 
     the request of the parent any such instrument used in the 
     collection of personal information in subsection (E) before 
     the instrument is administered or distributed to a student, 
     and any applicable procedures for granting a request by a 
     parent for reasonable access to such instrument within a 
     reasonable period of time after the request is received.
       ``(2) Notification of policies and specific events to 
     parent.--(A) The policies developed by a local educational 
     agency under subsection (c)(1) shall provide for reasonable 
     notice of the adoption of such policies directly to the 
     parents of students enrolled in schools in that agency. At a 
     minimum, such notice shall be provided at least annually at 
     the beginning of the school year as well as within a 
     reasonable period of time after any substantive change in 
     such guidelines and shall offer the parent an opportunity to 
     opt his or her child out of participation in (and for the 
     purpose of subparagraph (i) shall offer students of an 
     appropriate age an opportunity to opt out of participation 
     in)--
       ``(i) activities involving the collection, disclosure, or 
     use of personal information collected from students for the 
     purpose of marketing or for selling or giving such personal 
     information to others for such purpose;
       ``(ii) any survey containing one or more items listed in 
     subsection (c)(1)(B); and
       ``(iii) any non-emergency, invasive physical examination or 
     screening that is required as a condition of attendance and 
     administered by the school and scheduled by the schools in 
     advance, and is not necessary to protect the immediate health 
     and safety of the student or other students.
       ``(B) Notification of specific events.--The local education 
     agency shall directly notify the parent of a student, at 
     least annually at the beginning of the school year, of the 
     specific or approximate dates during the school year when the 
     following activities are scheduled or expected to be 
     scheduled--
       ``(i) activities involving the collection, disclosure, or 
     use of personal information collected from students for the 
     purpose of marketing or for selling or giving such personal 
     information to others for such purpose;

[[Page 25910]]

       ``(ii) any survey containing one or more items listed in 
     subsection (c)(1)(B); and
       ``(iii) any non-emergency, invasive physical examination or 
     screening that is required as a condition of attendance and 
     administered by the school and scheduled by the schools in 
     advance, and is not necessary to protect the immediate health 
     and safety of the student or other students.
       ``(3) Existing guidelines.--A local educational agency or 
     institution need not develop and adopt new guidelines if the 
     state educational agency or local educational agency has 
     policies in place covering the requirements of subsection 
     (c)(1) on the day of the enactment of the [Short Title], but 
     shall provide reasonable notice of such existing policies to 
     parents and guardians of students as set forth in subsection 
     (c)(2).
       ``(4) Exceptions.--
       ``(A) Educational products or services.--Section (c)(1)(E) 
     shall not apply to the collection, disclosure, or use of 
     personal information collected from students for the 
     exclusive purpose of developing, evaluating, or providing 
     educational products or services for, or to, students or 
     educational institutions, such as the following--

       ``(i) college or other post-secondary education recruitment 
     or military recruitment;
       ``(ii) book clubs, magazines, and programs providing access 
     to low-cost literary products;
       ``(iii) curriculum and instructional materials used by 
     elementary and secondary schools;
       ``(iv) tests and assessments used by elementary and 
     secondary schools to provide cognitive, evaluative, 
     diagnostic, clinical, aptitude, or achievement information 
     about students (or to generate other statistically useful 
     data for the purpose of securing such tests and assessments) 
     and the subsequent analysis and public release of aggregate 
     data;
       ``(v) the sale by students of products or services to raise 
     funds for school--or education-related activities; and
       ``(vi) student recognition programs.

       ``(B) State law exception.--The provisions of subsection 
     (c) shall not--
       ``(i) be construed to preempt provisions of State law that 
     require parental notification; or
       ``(ii) apply to any physical examination or screening that 
     is permitted or required by State law, including those 
     physical examinations or screenings that are permitted 
     without parental notification.
       ``(5) Definitions.--(A) Local educational agency. For the 
     purpose of subsection (c), the term 'local educational 
     agency' means any elementary, middle, or secondary school, 
     and any school district or local board of education that is 
     the recipient of funds under any applicable program, but does 
     not include postsecondary institutions.
       ``(B) Instructional material. For the purpose of subsection 
     (c), the term 'instructional material' means instructional 
     content that is provided to a student regardless of its 
     format, including printed or representational materials, 
     audio/visual materials, and materials in electronic or 
     digital formats (such as materials accessible through the 
     internet), but does not include academic tests or academic 
     assessments.
       ``(C) Invasive physical examination. For the purpose of 
     this section, the term 'invasive physical examination' means 
     any medical examination that involves the exposure of private 
     body parts, or any act during such examination that includes 
     incision, insertion, or injection into the body, but does not 
     include hearing, vision, or scoliosis screenings.
       ``(D) Parent. For the purpose of this section, the term 
     'parent' includes a guardian.
       ``(E) Personal information. For the purpose of this 
     section, the term 'personal information' means individually 
     identifiable information including--
       ``(i) a student or parent's first and last name;
       ``(ii) a home or other physical address including street 
     name and name of city or town;
       ``(iii) a telephone number; or
       ``(iv) a Social Security number.
       ``(F) Student. For the purpose of this section, the term 
     'student' means any elementary or secondary school student.
       ``(G) Survey. For the purpose of this section, the term 
     'survey' includes an evaluation.
       ``(6) General provisions.--(A) In General.--(i) Nothing in 
     this section shall be construed to supercede section 444 of 
     the General Education Provisions Act (20 U.S.C. 1232g).
       ``(ii) Subsection (c)(1)(D) shall not apply to surveys 
     administered to a student in accordance with the Individuals 
     with Disabilities Education Act (20 U.S.C. 1400 et seq.).
       ``(B) Student rights. The rights provided to parents under 
     this section transfer to the student once the student turns 
     18 years old, or is an emancipated minor at any age.
       ``(C) Information activities. The Secretary shall annually 
     inform each State educational agency and each local 
     educational agency of the educational agency's obligations 
     under sections 444 and 445 of the General Education 
     Provisions Act (20 U.S.C. 1232g).
       ``(D) Funding. A State educational agency or local 
     educational agency may use funds provided under part A of 
     title V of the [Short Title] to enhance parental involvement 
     in areas affecting children's in-school privacy.''.
       Report Language:
       The Conferees intend that the term ``condition of 
     attendance'' includes any action, whether overt or implicit, 
     by a school or local educational agency in the announcement, 
     scheduling, or administration of a non-emergency, invasive 
     physical examination or screening which states or implies 
     that the school--or local educational agency-administered 
     examination or screening is required, compulsory, or may not 
     be opted out of by the parent.
       3. Both the House bill and the Senate amendment are 
     identical in this section.
       Notes 3-7: agreement to move to Title IX, General 
     Provisions;
       Notes 3-5, HR/SR with an amendment;
       Notes 6-7, SR with an amendment;
       (Ratified October 30, 2001).

     ``SEC.   . EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

       ``(a) Short Title.--This section may be cited as the ``Boy 
     Scouts of America Equal Access Act.''
       ``(b) In General.--Notwithstanding any other provision of 
     law, no public elementary school, public secondary school, 
     local educational agency, or State educational agency that 
     has a designated open forum or a limited public forum shall 
     deny equal access or a fair opportunity to meet to, or 
     discriminate against, any group officially affiliated with 
     the Boy Scouts of America, or any other youth group listed in 
     title 36 of the United States Code as a patriotic society, 
     that wishes to conduct a meeting within that designated open 
     forum or limited public forum, including for reasons based on 
     the membership or leadership criteria or oath of allegiance 
     to God and country of the Boy Scouts of America or of the 
     youth group listed in title 36 of the United States Code as a 
     patriotic society.
     Nothing in this section requires any school or a school 
     served by an agency to sponsor any group officially 
     affiliated with the Boy Scouts of America, or any other youth 
     group listed in title 36 of the United States Code as a 
     patriotic society.
       ``(c) Termination of Assistance and Other Action.--
       ``(1) Departmental action.--The Secretary is authorized and 
     directed to effectuate subsection (b) by issuing, and 
     securing compliance with, rules or orders with respect to a 
     public elementary school, public secondary school, local 
     educational agency, or State educational agency that receives 
     funds made available through the Department of Education and 
     that denies equal access, or a fair opportunity to meet, or 
     discriminates, as described in subsection (b).
       ``(2) Procedure.--The Secretary shall issue and secure 
     compliance with the rules or orders, under paragraph (1), 
     through the Office of Civil Rights and in a manner consistent 
     with the procedure used by a Federal department or agency 
     under section 602 of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d-1). If the public school or agency does not comply with 
     the rules or orders, then notwithstanding any other provision 
     of law, no funds made available through the Department of 
     Education shall be provided to the school or any school 
     served by the agency.
       ``(3) Judicial review.--Any action taken by the Secretary 
     under paragraph (1) shall be subject to the judicial review 
     described in section 603 of that Act (42 U.S.C. 2000d-2). Any 
     person aggrieved by the action may obtain that judicial 
     review in the manner, and to the extent, provided in section 
     603 of that Act.
       ``(d) Definitions and Rule.--
       ``(1) Definitions.--In this section:
       ``(A) Elementary school; local educational agency; 
     secondary school; state educational agency.--The terms 
     `elementary school', `local educational agency', `secondary 
     school', and `State educational agency' have the meanings 
     given the terms in section 14101 of the Elementary and 
     Secondary Education Act of 1965 [update cite].
       ``(B) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(C) Youth group.--The term `youth group' means any group 
     or organization intended to serve young people under the age 
     of 21.
       ``(2) Rule.--For purposes of this section, an elementary 
     school or secondary school has a limited public forum 
     whenever the school involved grants an offering to, or 
     opportunity for, one or more outside youth or community 
     groups to meet on school premises or in school facilities 
     before or after the hours during which attendance at the 
     school is compulsory.''
       4. The House bill and the Senate amendment address access 
     to and use of school facilities by the Boy Scouts of America 
     or of youth groups that prohibit the acceptance of 
     homosexuals, or individuals who reject the Boy Scouts' or the 
     youth group's oath of allegiance to God and country. The two 
     provisions are substantially the same with minor technical 
     differences.
       HR/SR with an amendment (see note 3).
       5. The House bill and the Senate amendment have same 
     effective date with exception that the House uses the clause 
     ``notwithstanding section 5.''

[[Page 25911]]

       HR/SR with an amendment (see note 3).
       6. The Senate amendment, but not the House bill, includes a 
     second provision on the Boy Scouts. A short title is included 
     in section 1501 of the Senate amendment but not the House 
     bill.
       SR with an amendment (see note 3).
       7. The Senate amendment, but not the House bill, addresses 
     equal access to the use of school facilities by the Boy 
     Scouts or any other group, regardless of the groups' sexual 
     orientation.
       SR with an amendment (see note 3).
       8. The House bill repeals Parts A and C of Title II and 
     Title VI of the Goals 2000: Educate America Act. The Senate 
     amendment repeals all of the Goals 2000: Educate America Act.
       SR and an agreement to move to Title X's repeals section.
       9. The House bill, but not the Senate amendment, repeals 
     the Troops to Teachers Program Act of 1999.
       LC and an agreement to move to Title X's repeals section.
       10. The House bill repeals Title IX; Parts A, B, C, D, F, 
     G, I, J, and L of Title X; Titles XI,; Title XII; the title 
     heading of Title XIII and sections 13001 and 13002; and Title 
     XIV. The Senate amendment repeals Titles IX through XIV.
       LC and an agreement to move to Title X's repeals section.
       11. The Senate amendment, but not the House bill, includes 
     several provisions relating to the collection of information 
     from students which is used for commercial purposes.
       HR/SR (see note 2).
       12. The Senate amendment, but not the House bill, requires 
     State and local educational agencies that receive funds under 
     the Act to develop and adopt guidelines to protect student 
     privacy.
       HR/SR (see note 2).
       13. The Senate amendment but not the House bill includes a 
     separate public school choice program.
       HR with an agreement to move to Title V, part B; and with 
     an amendment to strike ``125,000,000'' and to insert 
     ``100,000,000''; to strike ``each subsequent fiscal year'' 
     and to insert ``such sums as may be necessary for each of the 
     six succeeding fiscal years''.
       Report Language:
       The Conferees agree that the term ``school construction'' 
     does not refer to minor renovations or repairs conducted in a 
     school or classroom or to the leasing or purchase of modular 
     classroom facilities which are understood to be appropriate 
     capacity-enhancing activities that enable high-demand public 
     school to accommodate transfer requests under the program. 
     The Conferees intend that students who transfer to another 
     public school shall be enrolled in classes and other 
     activities in the same manner as all other children at the 
     public school.
       14. The Senate amendment, but not the House bill, 
     authorizes parental information and resource centers.
       HR with an agreement to move to Subpart 16 of Title V, Part 
     D (FIE) and an agreement to reduce the reservation for the 
     Parents as Teachers program from 50 percent to 30 percent.
       15. The Senate amendment, but not the House bill, 
     authorizes a new summer academic enrichment program.
       SR
       16. The Senate amendment, but not the House bill, 
     authorizes a dropout prevention program.
       HR with an agreement to move to Title I, Part G and an 
     authorization of $125 million for FY 2002 and such sums for 
     each of the 5 succeeding fiscal years.
       17. The Senate amendment, but not the House bill, 
     authorizes a new grant program relating to advanced placement 
     courses.
       HR with an agreement to repeal current Higher Ed Act AP 
     program and move this new program to Title I, part H; funded 
     at such sums as necessary for FY 2002 and the 5 succeeding 
     fiscal years.
       18. The Senate amendment, but not the House bill, 
     authorizes the Secretary of Education to award grants to the 
     National Student/Parent Mock Election, a nonprofit 
     organization, to promote voter participation in American 
     elections.
       HR with an agreement to move to Subpart 1 of Title V, Part 
     D (FIE) as a general use of funds.
       19. The Senate amendment, but not the House bill, includes 
     a new program for the teaching of traditional American 
     History.
       HR with an agreement to move to Subpart 5 of Title II, Part 
     C.
       20. The Senate amendment, but not the House bill, includes 
     a new program to promote economic and financial literacy.
       HR with an agreement to move to Subpart 13 of Title V, Part 
     D (FIE).
       21. The Senate amendment, but not the House bill, 
     authorizes the Director of the National Institutes of Health 
     and the Secretary of Education to jointly conduct a study on 
     how exposure to violence through movies, music, television 
     and other media affects children's cognitive development. The 
     Senate amendment also amends the National Education 
     Statistics Act to require the Commissioner of Education 
     Statistics to gather data on how much time children spend on 
     various forms of entertainment.
       HR/SR with an amendment to strike all language and add the 
     following provision at Subpart 1 of Title V, Part D (FIE).

     ``SEC. XXXX. STUDIES OF NATIONAL SIGNIFICANCE.

       (a) Studies.--The Secretary shall conduct the following 
     studies of national significance:
       ``(1) Study regarding the health and learning impacts of 
     environmentally unhealthy public school buildings on students 
     and teachers. The study shall include the following 
     information--
       ``A. The characteristics of public elementary and secondary 
     school buildings that contribute to unhealthy school 
     environments.
       ``B. The health and learning impacts of environmental 
     unhealthy public school buildings on students that are 
     attending or that have attended such schools.
       ``C. Recommendations to Congress on how to assist schools 
     that are out of compliance with Federal or State health and 
     safety codes, and a cost estimate of bringing up 
     environmentally unhealthy public school buildings to minimum 
     Federal health and safety building standards.
       ``(2) Study regarding how exposure to violent entertainment 
     (such as movies, music, television, Internet content, video 
     games, and arcade games) affects children's cognitive 
     development and educational achievement.
       ``(3) Study regarding the prevalence of sexual abuse in 
     schools, including recommendations and legislative remedies 
     for the problem of sexual abuse in schools.
       ``(4) Study on the most accurate measures of the rate at 
     which students drop out of and graduate from (including on-
     time graduation from) schools in the United States.
       ``A. As part of the study, the Secretary shall examine 
     longitudinal means of measurement that follow individual 
     student progress, beginning with seventh grade and continuing 
     through graduation from secondary schools, and what states 
     can do to establish or strengthen such systems.
       ``B. Not less than 1 year after the date of enactment of 
     this Act, the Secretary shall transmit to Congress a report 
     containing the results of the study and any recommendations 
     that the Secretary may have regarding the subject of the 
     study.
       ``(b) Completion Date.--The studies under subsections 
     (a)(i)-(iii) shall be completed not later than 18 months 
     after the enactment of the No Child Left Behind Act of 2001.
       ``(c) Public Dissemination.--The Secretary shall make the 
     study under (a)(i) available for public consumption through 
     the Educational Resources Information Center National 
     Clearinghouse for Educational Facilities of the Department of 
     Education.''
       22. The Senate amendment, but not the House bill, includes 
     findings regarding sexual abuse in schools, and an 
     authorization for the Secretary of Education in conjunction 
     with the Attorney General, to conduct a comprehensive study 
     of the prevalence of sexual abuse in schools and to prepare a 
     report thereon for submission to relevant Congressional 
     committees and others.
       HR/SR to strike all language (see note 21)
       23. The Senate amendment, but not the House bill, 
     authorizes a study of whether Federal income tax incentives 
     that provide education assistance affect higher education 
     tuition rates.
       SR
       24. The Senate amendment, but not the House bill, includes 
     an authorization for the Fund for the Improvement of 
     Education, a Secretarial discretionary grant program.
       HR with an agreement to move to Subpart 1 of Title V, Part 
     D (FIE) amended to read as follows:

        ``TITLE V, PART D--FUND FOR THE IMPROVEMENT OF EDUCATION

            ``PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

     ``SEC. XXXX. FUND FOR THE IMPROVEMENT OF EDUCATION.

       ``(a) Programs and Projects Authorized.--
       ``(1) In general.--From funds appropriated under this part, 
     the Secretary is authorized to support nationally significant 
     programs and projects to improve the quality of elementary 
     and secondary education at the State and local levels and 
     help all children meet challenging academic content and 
     achievement standards.
       ``(2) Methods for carrying out programs and projects.--The 
     Secretary is authorized to carry out such programs and 
     projects directly, or through grants to or contracts with 
     States or local educational agencies, institutions of higher 
     education, and other public and private agencies, 
     organizations, and institutions.
       ``(b) Uses of Funds.--The funds appropriated under this 
     part may be used for any of the following activities and 
     programs:
       ``(1) Activities to promote systemic education reform at 
     the State and local levels, including scientifically based 
     research, development, and evaluation designed to improve:
       ``(A) student academic achievement at the State and local 
     level; and
       ``(B) strategies for effective parent and community 
     involvement.
       ``(2) Programs at the State and local levels which are 
     designed to yield significant results, including programs to 
     explore approaches to public school choice and school-based 
     decision-making.

[[Page 25912]]

       ``(3) Recognition, which may include financial awards to 
     States, local educational agencies, and schools that--
       ``(A) have made the greatest progress in improving the 
     academic achievement of economically disadvantaged students 
     and students from major racial and ethnic minority groups and 
     in closing the academic achievement gap for those groups of 
     students farthest away from the proficient level on the 
     academic assessments administered by the State under section 
     1111 of Title I; or
       ``(B) are nominated by the States in which the schools are 
     located or, in the case of a Bureau of Indian Affairs funded 
     school, by the Secretary of the Interior, because they have 
     made the greatest progress in improving the academic 
     achievement of economically disadvantaged students and 
     students from major racial and ethnic minority groups and 
     have closed the academic achievement gap for those groups of 
     students farthest away from the proficient level on the 
     academic assessments administered by the State under section 
     1111 of Title I.
       ``(4) Scientifically based studies and evaluations of 
     education reform strategies and innovations, and the 
     dissemination of information on the effectiveness of such 
     strategies and innovations.
       ``(5) The identification and recognition of exemplary 
     schools and programs, such as Blue Ribbon Schools, including 
     projects to evaluate the effectiveness of using the best 
     practices of exemplary or Blue Ribbon Schools to improve 
     academic achievement.
       ``(6) Activities to support Scholar-Athlete Games programs, 
     including the World Scholar-Athlete Games and the U.S. 
     Scholar-Athlete Games.
       ``(7) Programs to promote voter participation in American 
     elections through programs such as the National Student/
     Parent Mock Election and Kids Voting USA.
       ``(8) demonstrations relating to the planning and 
     evaluations of the effectiveness of projects under which 
     local educational agencies or schools contract with private 
     management organizations to reform a school or schools.
       ``(9) Other programs and projects that meet the purposes of 
     this section.

     ``SEC. XXXX. GENERAL PROVISIONS.

       ``(a) Awards Made on Competitive Basis.--The Secretary may:
       ``(1) make awards under this part on the basis of 
     competitions announced by the Secretary, and;
       ``(2) support meritorious unsolicited proposals.
       ``(b) Special Rule.--The Secretary shall ensure that 
     programs, projects, and activities supported under this part 
     are designed so that their effectiveness is readily 
     ascertainable, and shall ensure that such effectiveness is 
     assessed using rigorous, scientifically based research and 
     evaluations.
       ``(c) Peer Review.--The Secretary shall use a peer review 
     process in reviewing applications for assistance under this 
     part and in recognizing States, local educational agencies 
     and schools under section XXXX (b)(3) [Recognition] only if 
     funds are used for such activity, and may use funds 
     appropriated under this part for the cost of such peer 
     review.
       ``(d) Applications.--An applicant for an award under this 
     part shall submit an application which--
       ``(1) establishes clear goals and objectives for its 
     project under this part which are based on scientifically 
     based research; and
       ``(2) describes the activities it will carry out in order 
     to meet the goals and objectives described in paragraph (1).
       ``(e) Evaluations.--A recipient of an award under this part 
     shall--
       ``(1) evaluate the effectiveness of its project in 
     achieving the goals and objectives stated in its application; 
     and
       ``(2) report to the Secretary such information as may be 
     required, including evidence of its progress toward meeting 
     such goals, to determine the project's effectiveness.
       ``(f) Dissemination of Evaluation Results.--The Secretary 
     shall provide for the dissemination of the evaluations of 
     projects funded under this part by making the evaluations 
     publicly available upon request, and shall publish public 
     notice that the evaluations are so available.
       ``(g) Matching Funds.--The Secretary may require recipients 
     of awards under this part to provide matching funds from non-
     Federal sources.
       ``(h) Special Rule.--The requirements of (d) 
     [Applications], (e) [Evaluations], and (f) [Dissemination of 
     Evaluation Results] shall not apply to activities described 
     in section XXXX (b)(3) [Recognition].

     ``SEC. XXXX. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part the following amounts:
       $550 million for FY 2002
       $575 million for FY 2003
       $600 million for FY 2004
       $625 million for FY 2005
       $650 million for FY 2006
       $675 million for FY 2007.''
       25. The Senate amendment, but not the House bill, 
     authorizes the Secretary of Education to award grants to a 
     specific non-profit organization for the purpose of 
     reimbursing such organization for the costs of conducting 
     scholar-athlete games.
       HR with an agreement to move to Subpart 1 of Title V, Part 
     D (FIE) as a general use of funds.
       26. The Senate amendment, but not the House bill, 
     authorizes a Physical Education for Progress program.
       HR with an agreement to move to Subpart 10 of Title V, Part 
     D (FIE).
       27. The Senate amendment, but not the House bill, 
     authorizes a Smaller Learning Communities program. Similar 
     activities are included in Title V, Part B, Subpart 4, 
     Chapter 5 (use of funds under innovative education program 
     strategies) of the Senate amendment.
       HR with an agreement to move to Subpart 4 of Title V, Part 
     D (FIE).
       28. The Senate amendment, but not the House bill, 
     authorizes a study of the health and learning impacts of 
     dilapidated or environmentally unhealthy public school 
     buildings upon students.
       HR/SR to strike all language (see note 21).
       29. The Senate amendment, but not the House bill, 
     establishes a new program relating to improving the energy-
     efficiency and environmental soundness of school buildings.
       HR with an agreement to amend and move to Subpart 18 of 
     Title V, Part D (FIE).

            Title IX, Part A, Subpart 2--Homeless Education

                         (New Title X, Part C)

       SR for short title
       1. House bill contains findings.
       HR
       2. Senate amendment does not contain similar provisions.
       HR
       3. House bill contains a purpose.
       HR
       4. Senate amendment contains no similar provision.
       HR
       5. House bill and Senate amendment contain identical 
     provision that clarifies that homelessness alone is not 
     sufficient reason to separate students from the mainstream 
     school environment (strikes `should not be' and replaces with 
     `is not').
       SR with an amendment to insert ``appropriate'' before 
     ``public education'' in House paragraph (1) and insert 
     ``appropriate'' before ``public education'' in House 
     paragraph (2).
       6. House bill and Senate amendment are identical.
       LC
       7. House bill and Senate amendment are identical.
       LC
       8. House bill increases the amount of McKinney-Vento 
     funding available to small States to one-half of one percent 
     of the overall appropriation, or $125,000, whichever is 
     greater.
       SR with an amendment to set small state minimum at $150,000 
     or \1/4\ of 1% of the total appropriation, whichever is 
     greater, except that no state shall receive less than it 
     received in FY 2001.
       9. Senate amendment makes $100,000 available to small 
     States.
       SR--See Note 8.
       10. House bill and Senate amendment strike Palau from 
     receiving funds.
       LC
       11. House bill requires the Secretary to transfer 1% to the 
     Department of Interior by replacing ``is authorized to'' with 
     ``shall.''
       SR
       12. Senate amendment authorizes the transfer.
       SR
       13. Virtually identical provisions.
       LC
       14. House bill provides States with greater flexibility to 
     use McKinney-Vento funds for statewide support and technical 
     assistance activities.
       SR
       15. Senate amendment has a reservation of funds for 
     statewide activities.
       SR
       16. House bill prohibits states that receive McKinney funds 
     from segregating homeless students, except for short periods 
     of time for health and safety emergencies or to provide 
     temporary, special, supplementary services. However, separate 
     schools established before the enactment of the law are 
     excluded from this prohibition and may continue to receive 
     McKinney funds.
       HR
       17. Senate amendment prohibits states that receive McKinney 
     funds from segregating homeless students, except for short 
     periods of time for health and safety emergencies or to 
     provide temporary, special, supplementary services. However, 
     a State that has a separate school for homeless children or 
     youth that was operated in fiscal year 2000 in a covered 
     county (San Joaquin County, CA; Orange County, CA; San Diego 
     County, CA; and Maricopa County, AZ) is excluded from this 
     prohibition and may continue to receive McKinney funds as 
     long as such schools and the LEAs that homeless children 
     enrolled in the separate school are entitled to attend meet 
     the requirements set forth in this section.
       HR
       18. House bill and Senate amendment contain virtually 
     identical language that revises the provisions for the 
     Coordinator of Education of Homeless Children and Youth, 
     however, House bill requires that this information be 
     gathered ``to the extent possible.''

[[Page 25913]]

       HR
       ``It is the intention of the conferees that the Office of 
     the Coordinator shall coordinate with the State Educational 
     Agency, state social services agencies, and other agencies, 
     including agencies providing mental health services, to 
     provide services to homeless children, youth, and families.''
       19. House bill requires Coordinators to provide technical 
     assistance to ensure that LEAs comply with paragraphs 3 
     through 7 of the State plan.
       SR (Accept both provisions--notes 19 & 20).
       20. Senate amendment requires Coordinators to provide 
     technical assistance to ensure that LEAs comply with the 
     prohibition on segregating homeless students. House bill and 
     Senate amendment revise the State plan.
       HR (Accept both provisions--notes 19 & 20).
       21. House bill and Senate amendment revise the State plan.
       LC
       22. House bill requires the State plan to describe 
     procedures that ensure that homeless youth and youth 
     separated from the public schools are identified and accorded 
     equal access to appropriate secondary education and support 
     services.
       SR
       23. House bill adds immunization and medical records to the 
     list of problems which may cause enrollment delays, Senate 
     amendment does not.
       SR
       24. House bill adds uniform or dress code requirements to 
     the list of problems which may cause enrollment delays, 
     Senate amendment does not.
       SR
       25. House bill and Senate amendment contain similar 
     language requiring the State plan contain assurances that 
     SEAs and LEAs will adopt policies and practices to ensure 
     that homeless children and youth are not segregated on the 
     basis of their status as homeless.
       HR on Senate (i).
       SR on House (J) (ii).
       26. House bill requires the State plan to contain 
     assurances that the State and school districts will adopt 
     policies and practices to ensure that transportation is 
     provided to and from the school of origin.
       SR
       27. Senate amendment contains no similar provision.
       SR
       28. Virtually identical provisions.
       LC
       29. House bill requires State plan to describe technical 
     assistance the State will offer LEAs.
       SR
       30. Senate amendment contains no similar provision.
       SR
       31. House bill and Senate amendment revise LEA requirements 
     with virtually identical provisions.
       LC
       32. Senate amendment requires LEAs to consider the wishes 
     of unaccompanied youth in placement decisions.
       SR
       33. House bill requires that parents, guardian, or 
     unaccompanied youth are given written notice of right of 
     appeal.
       SR
       34. Senate amendment contains no similar provision.
       SR
       35. House bill contains language regarding enrollment 
     decisions for unaccompanied youth. Senate amendment does not 
     contain this provision.
       SR with an amendment to (B)(iii) to add ``considers the 
     views of such unaccompanied youth'' after ``subparagraph.''
       36. Senate amendment specifies that the student shall be 
     referred to the appropriate authorities if the child or youth 
     needs to obtain immunizations.
       SR
       37. House bill specifies that the student shall be referred 
     to the liaison if the child or youth needs to obtain 
     immunizations.
       SR
       38. House bill contains language requiring ordinarily kept 
     records of students be maintained so that they are available 
     when a child or youth enters a new school or school district.
       SR
       39. House bill provides that written explanation of right 
     of appeal is provided to the parent or guardian.
       SR
       40. Senate amendment contains no similar provision.
       SR
       41. House bill specifies that the local liaison carries out 
     the dispute resolution process.
       SR
       42. Senate amendment contains no similar provision.
       SR
       43. House bill provides LEA authority to require submission 
     of contact information.
       SR with an amendment to strike all after ``information'' in 
     (H).
       44. Senate amendment contains no similar provision.
       SR with an amendment as noted in Note 43.
       45. House bill and Senate amendment are identical.
       LC
       46. House bill and Senate amendment contain virtually 
     identical language.
       LC
       47. House bill contains language on interdistrict 
     coordination.
       SR
       48. Senate amendment contains no similar provision.
       SR
       49. House bill and Senate amendment contain similar 
     provisions except that House bill adds ``reasonable 
     proximity.''
       SR
       50. House bill and Senate amendment revise the duties of 
     the local liaison with virtually identical language.
       LC
       51. House bill provides that the liaison coordinate with 
     school personnel and other entities to identify homeless 
     children.
       SR with an amendment to strike ``an'' and insert ``a full 
     and'' before ``equal''.
       52. House bill requires the liaison to inform students 
     about transportation services.
       SR
       53. Senate amendment contains no similar provision.
       SR
       54. House bill requires notice for all LEAs.
       SR
       55. Senate amendment requires notice for LEAs receiving 
     assistance under this subtitle.
       SR
       56. House bill and Senate amendment are identical.
       LC
       57. House bill and Senate amendment revise LEA services for 
     homeless children and youth with virtually identical 
     language.
       SR
       58. Similar provisions.
       LC
       59. House bill and Senate amendment are identical.
       LC
       60. House bill revises the LEA application language.
       SR
       61. Senate amendment makes a minor modification to current 
     law that is similar to language in House bill.
       LC
       62. House bill and Senate amendment are virtually 
     identical.
       LC
       63. House bill revises language regarding grants awarded to 
     LEAs.
       LC
       64. House bill and Senate amendment are virtually 
     identical.
       LC
       65. House bill and Senate amendment contain language for 
     determining the quality of applications that are virtually 
     identical.
       LC
       66. Senate amendment specifies that case management 
     services may be a factor used in determining quality.
       SR with an amendment to add ``such as the extent to which 
     the local educational agency provides case management or 
     related services to homeless children and youth who are 
     unaccompanied by a parent or guardian'' after ``program'' in 
     House (G).
       (Adding Senate (G) to end of House (G)).
       67. House bill contains no similar provision.
       SR with an amendment as noted in Note 66.
       68. House bill revises LEA authorized activities, Senate 
     amendment does not.
       SR
       69. House bill provides for outreach assistance to 
     unaccompanied youth.
       SR
       70. Senate amendment contains no similar provision.
       SR
       71. House bill revises Secretarial Responsibilities 
     section.
       SR
       72. House bill requires the Secretary to provide and 
     disseminate notice of educational rights of homeless 
     children.
       SR
       73. Senate amendment contains no similar provision.
       SR
       74. Senate amendment contains a requirement for the 
     Secretary to develop and issue school enrollment guidelines 
     for homeless children and youth.
       HR with an amendment to strike ``more quickly'' and insert 
     ``immediately''.
       75. House bill contains language requiring the Secretary to 
     disseminate information regarding the rights of homeless 
     children and youth (see ``Sec. 724(c) NOTICE'' above).
       HR with an amendment as noted in Note 74.
       76. House bill and Senate amendment contain virtually 
     identical language regarding information collection and 
     dissemination.
       LC
       77. House bill and Senate amendment contain virtually 
     identical language regarding a report from the Secretary on 
     the education of homeless children and youth.
       LC
       78. House bill specifically mentions ``children and youth 
     who are living in doubled-up accommodations.''
       HR
       79. House bill uses term ``individuals'' and Senate 
     amendment uses term ``children and youth.''

[[Page 25914]]

       HR
       80. Similar provisions.
       HR
       81. Identical provision.
       LC
       82. Similar provisions.
       HR
       83. Identical provision.
       LC
       84. House bill authorizes $60 million for fiscal year 2002 
     and such sums as may be necessary for each of fiscal years 
     2003 through 2006.
       HR
       85. Senate amendment authorizes $70 million for fiscal year 
     2002 and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       HR with an amendment to strike ``6'' and insert ``5''.

                      Amendments to Other Statutes

                         (New Title X, Part G)

       1. The Senate amendment, but not the House bill, amends the 
     term ``qualified entity'' of the National Child Protection 
     Act of 1993
       SR with an amendment to insert:
       ``Sec. ( ) Background Checks.--Section 5(9) of the National 
     Child Protection Act of 1993 (42 U.S.C. 5119c(9)) is 
     amended--
       ``(1) in subparagraph (A)(i), by inserting ``(including an 
     individual who is employed by a school in any capacity, 
     including as a child care provider, a teacher, or another 
     member of school personnel)'' before the semicolon; and
       ``(2) in subparagraph (B)(i), by inserting ``(including an 
     individual who seeks to be employed by a school in any 
     capacity, including as a child care provider, a teacher, or 
     another member of school personnel)'' before the semicolon.''
       ``Sec. ( ) Coordinator for the Outlying Areas.--The 
     Department of Education Organization Act is amended by adding 
     at the end of Title II of such Act the following:

     ``SEC. 220. COORDINATOR FOR THE OUTLYING AREAS

       ``(a) Establishment.--The Secretary shall designate an 
     office of the Department to coordinate the activities of the 
     Department as they relate to the Outlying Areas.
       ``(b) Appointment.--The head of the office designated under 
     subsection (a) shall appoint, not later than 3 months after 
     the date of enactment of [the Act] a coordinator for the 
     Outlying Areas who shall be a person with substantial 
     experience in the operation of Federal programs in the 
     Outlying Areas.
       ``(c) Duties.--The Coordinator for the Outlying Areas 
     shall--
       ``(1) serve as the principal advisor to the Department on 
     federal matters affecting the Outlying Areas;
       ``(2) evaluate on a periodic basis the needs of education 
     programs in the Outlying Areas;
       ``(3) assist with the coordination of programs which serve 
     the Outlying Areas; and
       ``(4) provide guidance to programs within the Department 
     that serve the Outlying Areas.
       ``(d) Definition.--For the purposes of this section, the 
     term ``Outlying Areas'' includes Guam, the Virgin Islands, 
     American Samoa, and the Commonwealth of the Northern Marianas 
     Islands, but does not include the Freely Associated States of 
     the Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau.''
       2. The Senate amendment, but not the House bill, amends the 
     Individuals With Disabilities Education Act to add a new 
     chapter 3 to part D of IDEA relating to improving early 
     intervention, educational, and transitional services.
       SR
       3. The Senate amendment includes findings regarding IDEA.
       SR
       4. The House bill does not contain a similar provision.
       SR
       5. The Senate amendment would amend IDEA to allow LEAs to 
     treat as local funds up to 55 percent of funding increases 
     beyond the amount received in FY2001 and to petition the 
     State to waive the 55% cap. It would also allow the Secretary 
     to prohibit the LEA from supplanting funds if it does not 
     meet part B requirements.
       SR
       6. The House bill does not contain a similar provision.
       SR
       7. The Senate amendment would amend IDEA to make funding of 
     part B mandatory for fiscal years 2002--2011.
       SR
       8. The House bill does not contain a similar provision.
       SR
       9. Senate returns IDEA part B to a discretionary program 
     for FY2012 and subsequent years. House contains no similar 
     provision.
       SR
       10. The Senate amendment, but not the House bill, includes 
     amendments to the Omnibus Crime Control and Safe Streets Act 
     of 1968 relating to school resource officers.
       SR
       11. The Senate amendment, but not the House bill, amends 
     the Higher Education Act to create a new program of loan 
     forgiveness for Head Start teachers.
       SR
       12. The Senate amendment, but not the House bill, includes 
     amendments to the Economic Espionage Act of 1966 relating to 
     Boys and Girls Clubs.
       SR
       13. The Senate amendment, but not the House bill, includes 
     amendments to the Carl D. Perkins Vocational and Technical 
     Education Act of 1998
       SR
       14. The Senate amendment, but not the House bill, 
     reauthorizes the National Environmental Education Act, 
     including comprehensive changes.
       SR
       15. The Senate amendment, but not the House bill, includes 
     amendments to the Federal Insecticide, Fungicide, and 
     Rodenticide Act.
       SR
       16. The Senate amendment, but not the House bill, amends 
     section 112(f)(1) of the Kids 2000 Act
       SR
       LC: Add following provision.
       ``Sec.   . (a) Compensation.--Section 5314 of title 5, 
     United States Code, is amended by adding at the end thereof 
     the following: ``Under Secretary of Education''.
       (b) Effective Date.--This Act shall take effect on the 
     first day of the first pay period that begins on or after the 
     date of enactment of this Act.''
     For consideration of the House bill and the Senate amendment, 
     and modifications committed to conference:
     John Boehner,
     Thomas E. Petri,
     Marge Roukema,
     Howard ``Buck'' McKeon,
     Mike Castle,
     Lindsey Graham,
     Van Hilleary,
     Johnny Isakson,
     George Miller,
     Dale E. Kildee,
     Major R. Owens,
     Patsy T. Mink,
     Robert E. Andrews,
     Tim Roemer,
                                Managers on the Part of the House.

     Edward Kennedy,
     Christopher Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     John Edwards,
     Hillary Rodham Clinton,
     Joseph Lieberman,
     Evan Bayh,
     Judd Gregg,
     Bill Frist,
     Mike Enzi,
     Tim Hutchinson,
     John Warner,
     Kit Bond,
     Pat Roberts,
     Susan Collins,
     Jeff Sessions,
     Mike DeWine,
     Wayne Allard,
     John Ensign,
     Managers on the Part of the Senate.

                          ____________________