[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[Senate]
[Pages 6979-7082]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 358. Mr. Jeffords (for himself and Mr. Kennedy) proposed an 
amendment to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1955; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

Sec. 101. Policy and purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation and allocation for school improvement.

           Part A--Better Results for Disadvantaged Children

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

               Part B--Literacy for Children and Families

Sec. 121. Reading first.
Sec. 122. Early reading initiative.

                Part C--Education of Migratory Children

Sec. 131. Program purpose.
Sec. 132. State application.
Sec. 133. Comprehensive plan.
Sec. 134. Coordination.

    Part D--Initiatives for Neglected, Delinquent, or at Risk Youth

Sec. 141. Initiatives for neglected, delinquent, or at risk youth.

  Part E--21st Century Learning Centers; Comprehensive School Reform; 
                       School Dropout Prevention

Sec. 151. 21st century learning centers; comprehensive school reform.

           Part F--Education for Homeless Children and Youth

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

                           TITLE II--TEACHERS

Sec. 201. Teacher quality.
Sec. 202. Teacher mobility.

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

Sec. 301. Bilingual education.

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

Sec. 401. Amendment to the Elementary and Secondary Education Act of 
              1965.

[[Page 6980]]

Sec. 402. Gun-free requirements.
Sec. 403. School safety and violence prevention.
Sec. 404. Environmental tobacco smoke.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Sec. 501. Public school choice and flexibility.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Sec. 601. Parental involvement and accountability.

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

Sec. 701. Programs.
Sec. 702. Conforming amendments.

                          TITLE VIII--REPEALS

Sec. 801. Repeals.

                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Independent evaluation.

     SEC. 2. REFERENCES.

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

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

       The Act (20 U.S.C. 6301 et seq.) is amended--
       (1) in the heading for section 1, by striking ``TABLE OF 
     CONTENTS'' and inserting ``SHORT TITLE''; and
       (2) by adding after section 1 the following:

     ``SEC. 2. PURPOSE.

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

     ``SEC. 3. DEFINITIONS.

       ``Except as otherwise provided, in this Act:
       ``(1) Average daily attendance.--
       ``(A) In general.--Except as provided otherwise by State 
     law or this paragraph, the term `average daily attendance' 
     means--
       ``(i) the aggregate number of days of attendance of all 
     students during a school year; divided by
       ``(ii) the number of days school is in session during such 
     school year.
       ``(B) Conversion.--The Secretary shall permit the 
     conversion of average daily membership (or other similar 
     data) to average daily attendance for local educational 
     agencies in States that provide State aid to local 
     educational agencies on the basis of average daily membership 
     or such other data.
       ``(C) Special rule.--If the local educational agency in 
     which a child resides makes a tuition or other payment for 
     the free public education of the child in a school located in 
     another school district, the Secretary shall, for purposes of 
     this Act--
       ``(i) consider the child to be in attendance at a school of 
     the agency making such payment; and
       ``(ii) not consider the child to be in attendance at a 
     school of the agency receiving such payment.
       ``(D) Children with disabilities.--If a local educational 
     agency makes a tuition payment to a private school or to a 
     public school of another local educational agency for a child 
     with a disability, as defined in section 602 of the 
     Individuals with Disabilities Education Act, the Secretary 
     shall, for the purposes of this Act, consider such child to 
     be in attendance at a school of the agency making such 
     payment.
       ``(2) Average per-pupil expenditure.--The term `average 
     per-pupil expenditure' means, in the case of a State or of 
     the United States--
       ``(A) without regard to the source of funds--
       ``(i) the aggregate current expenditures, during the third 
     fiscal year preceding the fiscal year for which the 
     determination is made (or, if satisfactory data for that year 
     are not available, during the most recent preceding fiscal 
     year for which satisfactory data are available) of all local 
     educational agencies in the State or, in the case of the 
     United States for all States (which, for the purpose of this 
     paragraph, means the 50 States and the District of Columbia); 
     plus
       ``(ii) any direct current expenditures by the State for the 
     operation of such agencies; divided by
       ``(B) the aggregate number of children in average daily 
     attendance to whom such agencies provided free public 
     education during such preceding year.
       ``(3) Child.--The term `child' means any person within the 
     age limits for which the State provides free public 
     education.
       ``(4) Community-based organization.--The term `community-
     based organization' means a public or private nonprofit 
     organization of demonstrated effectiveness that--
       ``(A) is representative of a community or significant 
     segments of a community; and
       ``(B) provides educational or related services to 
     individuals in the community.
       ``(5) Consolidated local application.--The term 
     `consolidated local application' means an application 
     submitted by a local educational agency pursuant to section 
     5505.
       ``(6) Consolidated local plan.--The term `consolidated 
     local plan' means a plan submitted by a local educational 
     agency pursuant to section 5505.
       ``(7) Consolidated state application.--The term 
     `consolidated State application' means an application 
     submitted by a State educational agency pursuant to section 
     5502.
       ``(8) Consolidated state plan.--The term `consolidated 
     State plan' means a plan submitted by a State educational 
     agency pursuant to section 5502.
       ``(9) County.--The term `county' means one of the divisions 
     of a State used by the Secretary of Commerce in compiling and 
     reporting data regarding counties.
       ``(10) Covered program.--The term `covered program' means 
     each of the programs authorized by--
       ``(A) part A of title I;
       ``(B) part C of title I;
       ``(C) part C of title II;
       ``(D) part A of title IV (other than section 4114); and
       ``(E) subpart 4 of part B of title V.
       ``(11) Current expenditures.--The term `current 
     expenditures' means expenditures for free public education--
       ``(A) including expenditures for administration, 
     instruction, attendance and health services, pupil 
     transportation services, operation and maintenance of plant, 
     fixed charges, and net expenditures to cover deficits for 
     food services and student body activities; but
       ``(B) not including expenditures for community services, 
     capital outlay, and debt service, or any expenditures made 
     from funds received under subpart 4 of part B of title V.
       ``(12) Department.--The term `Department' means the 
     Department of Education.
       ``(13) Educational service agency.--The term `educational 
     service agency' means a regional public multiservice agency 
     authorized by State statute to develop, manage, and provide 
     services or programs to local educational agencies.
       ``(14) Elementary school.--The term `elementary school' 
     means a nonprofit institutional day or residential school, 
     including a public elementary charter school, that provides 
     elementary education, as determined under State law.
       ``(15) Free public education.--The term `free public 
     education' means education that is provided--
       ``(A) at public expense, under public supervision and 
     direction, and without tuition charge; and
       ``(B) as elementary school or secondary school education as 
     determined under applicable State law, except that such term 
     does not include any education provided beyond grade 12.
       ``(16) Gifted and talented.--The term `gifted and 
     talented', when used with respect to students, children or 
     youth, means students, children or youth who give evidence of 
     high performance capability in areas such as intellectual, 
     creative, artistic, or leadership capacity, or in specific 
     academic fields, and who require services or activities not 
     ordinarily provided by the school in order to fully develop 
     such capabilities.
       ``(17) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965.
       ``(18) Local educational agency.--
       ``(A) In general.--The term `local educational agency' 
     means a public board of education or other public authority 
     legally constituted within a State for either administrative 
     control or direction of, or to perform a service function 
     for, public elementary schools or secondary schools in a 
     city, county, township, school district, or other political 
     subdivision of a State, or for such combination of school 
     districts or counties as are recognized in a State as an 
     administrative agency for the State's public elementary or 
     secondary schools.
       ``(B) Administrative control and direction.--The term 
     includes any other public institution or agency having 
     administrative control and direction of a public elementary 
     school or secondary school.
       ``(C) BIA schools.--The term includes an elementary school 
     or secondary school funded by the Bureau of Indian Affairs 
     but only to the extent that such inclusion makes such school 
     eligible for programs for which specific eligibility is not 
     provided to such school in another provision of law and such 
     school does not have a student population that is smaller 
     than the student population of the local educational agency 
     receiving assistance under this Act with the smallest student 
     population, except that such school shall not be subject to 
     the jurisdiction of any State educational agency other than 
     the Bureau of Indian Affairs.
       ``(19) Mentoring.--The term `mentoring', when used with 
     respect to mentoring other than teacher mentoring, means a 
     program in which an adult works with a child or youth on a 1-
     to-1 basis, establishing a supportive relationship, providing 
     academic assistance, and introducing the child or youth to 
     new experiences that enhance the child or youth's ability to 
     excel in school and become a responsible citizen.
       ``(20) Other staff.--The term `other staff' means pupil 
     services personnel, librarians, career guidance and 
     counseling personnel, education aides, and other 
     instructional and administrative personnel.

[[Page 6981]]

       ``(21) Outlying area.--The term `outlying area' means the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and for the 
     purpose of section 1121 and any other discretionary grant 
     program under this Act, the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of 
     Palau.
       ``(22) Parent.--The term `parent' includes a legal guardian 
     or other person standing in loco parentis.
       ``(23) Parental involvement.--The term `parental 
     involvement' means the participation of parents on all levels 
     of a school's operation, including all of the activities 
     described in section 1118.
       ``(24) Public telecommunications entity.--The term `public 
     telecommunication entity' has the same meaning given to such 
     term in section 397 of the Communications Act of 1934.
       ``(25) Pupil services personnel; pupil services.--
       ``(A) Pupil services personnel.--The term `pupil services 
     personnel' means school counselors, school social workers, 
     school psychologists, and other qualified professional 
     personnel involved in providing assessment, diagnosis, 
     counseling, educational, therapeutic, and other necessary 
     services (including related services as such term is defined 
     in section 602 of the Individuals with Disabilities Education 
     Act) as part of a comprehensive program to meet student 
     needs.
       ``(B) Pupil services.--The term `pupil services' means the 
     services provided by pupil services personnel.
       ``(26) Scientifically based research.--The term 
     `scientifically based research' used with respect to an 
     activity or a program, means an activity based on specific 
     strategies and implementation of such strategies that, based 
     on theory, research and evaluation, are effective in 
     improving student achievement and performance and other 
     program objectives.
       ``(27) Secondary school.--The term `secondary school' means 
     a nonprofit institutional day or residential school, 
     including a public secondary charter school, that provides 
     secondary education, as determined under State law, except 
     that such term does not include any education beyond grade 
     12.
       ``(28) Secretary.--The term `Secretary' means the Secretary 
     of Education.
       ``(29) State.--The term `State' means each of the 50 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, and each of the outlying areas.
       ``(30) State educational agency.--The term `State 
     educational agency' means the agency primarily responsible 
     for the State supervision of public elementary schools and 
     secondary schools.
       ``(31) Teacher mentoring.--The term `teacher mentoring' 
     means activities that--
       ``(A) consist of structured guidance and regular and 
     ongoing support for beginning teachers, that--
       ``(i) are designed to help the teachers continue to improve 
     their practice of teaching and to develop their instructional 
     skills; and
       ``(ii) as part of a multiyear, developmental induction 
     process--

       ``(I) involve the assistance of a mentor teacher and other 
     appropriate individuals from a school, local educational 
     agency, or institution of higher education; and
       ``(II) may include coaching, classroom observation, team 
     teaching, and reduced teaching loads; and

       ``(B) may include the establishment of a partnership by a 
     local educational agency with an institution of higher 
     education, another local educational agency, a teacher 
     organization, or another organization.
       ``(32) Technology.--The term `technology' means state-of-
     the-art technology products and services, such as closed 
     circuit television systems, educational television and radio 
     programs and services, cable television, satellite, copper 
     and fiber optic transmission, computer hardware and software, 
     video and audio laser and CD-ROM discs, video and audio 
     tapes, web-based learning resources, including online 
     classes, interactive tutorials, and interactive tools and 
     virtual environments for problem-solving, hand-held devices, 
     wireless technology, voice recognition systems, and high-
     quality digital video, distance learning networks, 
     visualization, modeling, and simulation software, and 
     learning focused digital libraries and information retrieval 
     systems.

     ``SEC. 4. MAINTENANCE OF EFFORT.

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

     ``SEC. 5. PROHIBITION REGARDING STATE AID.

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

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

       ``(a) Private School Participation.--
       ``(1) In general.--Except as otherwise provided in this 
     Act, to the extent consistent with the number of eligible 
     children in a State educational agency, local educational 
     agency, or educational service agency or consortium of such 
     agencies receiving financial assistance under a program 
     specified in subsection (b), who are enrolled in private 
     elementary and secondary schools in such agency or 
     consortium, such agency or consortium shall, after timely and 
     meaningful consultation with appropriate private school 
     officials, provide such children and their teachers or other 
     educational personnel, on an equitable basis, special 
     educational services or other benefits under such program.
       ``(2) Secular, neutral, and nonideological services or 
     benefits.--Educational services or other benefits, including 
     materials and equipment, provided under this section, shall 
     be secular, neutral, and nonideological.
       ``(3) Special rule.--Educational services and other 
     benefits provided under this section for such private school 
     children, teachers, and other educational personnel shall be 
     equitable in comparison to services and other benefits for 
     public school children, teachers, and other educational 
     personnel participating in such program.
       ``(4) Expenditures.--Expenditures for educational services 
     and other benefits provided under this section to eligible 
     private school children, their teachers, and other 
     educational personnel serving such children shall be equal, 
     taking into account the number and educational needs of the 
     children to be served, to the expenditures for participating 
     public school children.
       ``(5) Provision of services.--Such agency or consortium 
     described in subsection (a)(1) may provide such services 
     directly or through contracts with public and private 
     agencies, organizations, and institutions.
       ``(b) Applicability.--
       ``(1) In general.--This section applies to programs under--
       ``(A) part C of title I (migrant education);
       ``(B) parts A and C of title II;
       ``(C) title III; and
       ``(D) part A of title IV (other than section 4114).
       ``(2) Definition.--For the purposes of this section, the 
     term ``eligible children'' means children eligible for 
     services under a program described in paragraph (1).
       ``(c) Consultation.--
       ``(1) In general.--To ensure timely and meaningful 
     consultation, a State educational agency, local educational 
     agency, educational service agency or consortium of such 
     agencies shall consult with appropriate private school 
     officials during the design and development of the programs 
     under this Act, on issues such as--
       ``(A) how the children's needs will be identified;
       ``(B) what services will be offered;
       ``(C) how and where the services will be provided; and
       ``(D) how the services will be assessed.
       ``(2) Timing.--Such consultation shall occur before the 
     agency or consortium makes any decision that affects the 
     opportunities of eligible private school children, teachers, 
     and other educational personnel to participate in programs 
     under this Act.
       ``(3) Discussion required.--Such consultation shall include 
     a discussion of service delivery mechanisms that the agency 
     or consortium could use to provide equitable services to 
     eligible private school children, teachers, administrators, 
     and other staff.
       ``(d) Public Control of Funds.--
       ``(1) In general.--The control of funds used to provide 
     services under this section, and title to materials, 
     equipment, and property purchased with such funds, shall be 
     in a public agency for the uses and purposes provided in this 
     Act, and a public agency shall administer such funds and 
     property.
       ``(2) Provision of services.--(A) The provision of services 
     under this section shall be provided--
       ``(i) by employees of a public agency; or
       ``(ii) through contract by such public agency with an 
     individual, association, agency, or organization.

[[Page 6982]]

       ``(B) In the provision of such services, such employee, 
     person, association, agency, or organization shall be 
     independent of such private school and of any religious 
     organization, and such employment or contract shall be under 
     the control and supervision of such public agency.
       ``(C) Funds used to provide services under this section 
     shall not be commingled with non-Federal funds.

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

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

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

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

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

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

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

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

     ``SEC. 11. APPLICABILITY TO HOME SCHOOLS.

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

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

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

     ``SEC. 13. SCHOOL PRAYER.

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

     ``SEC. 14. GENERAL PROHIBITIONS.

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

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

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

           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

     SEC. 101. POLICY AND PURPOSE.

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

     ``SEC. 1001. STATEMENT OF PURPOSE.

       ``The purpose of this title is to enable schools to provide 
     opportunities for children served under this title to acquire 
     the knowledge and skills contained in the challenging State 
     content standards and to meet the challenging State student 
     performance standards developed for all children. This 
     purpose should be accomplished by--
       ``(1) ensuring high standards for all children and aligning 
     the efforts of States, local educational agencies, and 
     schools to help children served under this title to reach 
     such standards;
       ``(2) providing children an enriched and accelerated 
     educational program, including the use of schoolwide programs 
     or additional services that increase the amount and quality 
     of instructional time so that children

[[Page 6983]]

     served under this title receive at least the classroom 
     instruction that other children receive;
       ``(3) promoting schoolwide reform and ensuring access of 
     children (from the earliest grades, including 
     prekindergarten) to effective instructional strategies and 
     challenging academic content that includes intensive complex 
     thinking and problem-solving experiences;
       ``(4) significantly elevating the quality of instruction by 
     providing staff in participating schools with substantial 
     opportunities for professional development;
       ``(5) coordinating services under all parts of this title 
     with each other, with other educational services, and to the 
     extent feasible, with other agencies providing services to 
     youth, children, and families that are funded from other 
     sources;
       ``(6) affording parents substantial and meaningful 
     opportunities to participate in the education of their 
     children at home and at school;
       ``(7) distributing resources in amounts sufficient to make 
     a difference to local educational agencies and schools where 
     needs are greatest;
       ``(8) improving and strengthening accountability, teaching, 
     and learning by using State assessment systems designed to 
     measure how well children served under this title are 
     achieving challenging State student performance standards 
     expected of all children; and
       ``(9) providing greater decisionmaking authority and 
     flexibility to schools and teachers in exchange for greater 
     responsibility for student performance.''.

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 103. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

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

     ``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

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

           PART A--BETTER RESULTS FOR DISADVANTAGED CHILDREN

     SEC. 111. STATE PLANS.

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

     ``SEC. 1111. STATE PLANS.

       ``(a) Plans Required.--
       ``(1) In general.--Any State desiring to receive a grant 
     under this part shall submit to the Secretary, by March 1, 
     2002, a plan that satisfies the requirements of this section 
     and that is coordinated with other programs under this Act, 
     the Individuals with Disabilities Education Act, the Carl D. 
     Perkins Vocational and Technical Education Act of 1998, the 
     Adult Education and Family Literacy Act, and the Head Start 
     Act.
       ``(2) Consolidation plan.--A State plan submitted under 
     paragraph (1) may be submitted as part of a consolidation 
     plan under section 5506.
       ``(b) Standards, Assessments, and Accountability.--
       ``(1) Challenging standards.--(A) Each State plan shall 
     demonstrate that the State has adopted challenging content 
     standards and challenging student performance standards that 
     will be used by the State, its local educational agencies, 
     and its schools to carry out this part, except that a State 
     shall not be required to submit such standards to the 
     Secretary.
       ``(B) The standards required by subparagraph (A) shall be 
     the same standards that the State applies to all schools and 
     children in the State.
       ``(C) The State shall have the standards described in 
     subparagraph (A) for all public elementary school and 
     secondary school children served under this part in subjects 
     determined by the State, but including at least mathematics, 
     reading or language arts, history, and science, which shall 
     include the same knowledge skills, and levels of achievement 
     expected of all children, except that no State shall be 
     required to meet the requirements under this part relating to 
     history or science standards until the beginning of the 2005-
     2006 school year.
       ``(D) Standards under this paragraph shall include--
       ``(i) challenging content standards in academic subjects 
     that--
       ``(I) specify what children are expected to know and be 
     able to do;
       ``(II) contain coherent and rigorous content; and
       ``(III) encourage the teaching of advanced skills; and
       ``(ii) challenging student performance standards that--
       ``(I) are aligned with the State's content standards;
       ``(II) describe 2 levels of high performance, proficient 
     and advanced, that determine how well children are mastering 
     the material in the State content standards; and
       ``(III) describe a third level of performance, partially 
     proficient, to provide complete information about the 
     progress of the lower performing children toward achieving to 
     the proficient and advanced levels of performance.
       ``(E) For the subjects in which students served under this 
     part will be taught, but for which a State is not required by 
     subparagraphs (A), (B), and (C) to develop standards, and has 
     not otherwise developed standards, the State plan shall 
     describe a strategy for ensuring that such students are 
     taught the same knowledge and skills and held to the same 
     expectations as are all children.
       ``(2) Accountability.--(A) Each State plan shall 
     demonstrate that the State has developed and is implementing 
     a single, statewide State accountability system that has been 
     or will be effective in ensuring that all local educational 
     agencies, elementary schools, and secondary schools make 
     adequate yearly progress as defined under subparagraph (B). 
     Each State accountability system shall--
       ``(i) be based on the standards and assessments adopted 
     under paragraphs (1) and (3) and take into account the 
     performance of all students;
       ``(ii) be used for all schools or all local educational 
     agencies in the State, except that schools and local 
     educational agencies not participating under this part are 
     not subject to the requirements of section 1116(c);
       ``(iii) include performance indicators for local 
     educational agencies and schools to measure student 
     performance consistent with subparagraph (B); and

[[Page 6984]]

       ``(iv) include sanctions and rewards, such as bonuses or 
     recognition, the State will use to hold local educational 
     agencies and schools accountable for student achievement and 
     performance and for ensuring that the agencies and schools 
     make adequate yearly progress in accordance with the State's 
     definition under subparagraph (B).
       ``(B) Adequate yearly progress shall be defined in 
     accordance with subparagraph (D) and in a manner that--
       ``(i) applies the same high standards of academic 
     performance to all students in the State;
       ``(ii) is statistically valid and reliable;
       ``(iii) results in continuous and substantial academic 
     improvement for all students;
       ``(iv) measures the progress of schools and local 
     educational agencies based primarily on the assessments 
     described in paragraph (3);
       ``(v) includes annual measurable objectives for continuing 
     and significant improvement in--
       ``(I) the achievement of all students; and
       ``(II) the achievement of economically disadvantaged 
     students, students with disabilities, students with limited 
     English proficiency, migrant students, students by racial and 
     ethnic group, and students by gender, except that such 
     disaggregation shall not be required in any case in which the 
     number of students in a category is insufficient to yield 
     statistically reliable information or the results would 
     reveal individually identifiable information about an 
     individual student;
       ``(vi) includes a timeline for meeting the goal that each 
     group of students described in clause (v) will meet or exceed 
     the State's proficient level of performance on the State 
     assessment used for the purposes of this section and section 
     1116 not later than 10 years after the date of enactment of 
     the Better Education for Students and Teachers Act; and
       ``(vii) includes school completion or dropout rates and at 
     least 1 other academic indicator, as determined by the 
     States, except that inclusion of such indicators shall not 
     decrease the number of schools or local educational agencies 
     that would otherwise be subject to identification for 
     improvement or corrective action if the discretionary 
     indicators were not included.
       ``(C)(i) Each State plan shall include a detailed 
     description of an objective system or formula that 
     incorporates and gives appropriate weight to each of the 
     elements described in subparagraph (B), including the 
     progress of each of the groups of students described in 
     subparagraph (B)(v)(II), in meeting the State's annual 
     measurable objectives for continuing and significant 
     improvement under subparagraph (B)(v) and in making progress 
     toward the 10-year goal described in subparagraph (B)(vi), 
     and that is primarily based on academic progress as 
     demonstrated by the assessments described in paragraph (3) in 
     subjects for which assessments are required under this 
     section, except that the State shall give greater weight to 
     the groups--
       ``(I) performing at a level furthest from the proficient 
     level; and
       ``(II) that make the greatest improvement.
       ``(ii) The system or formula shall be subject to peer 
     review and approval by the Secretary under subsection (e). 
     The Secretary shall not approve the system or formula unless 
     the Secretary determines that the system or formula is 
     sufficiently rigorous and reliable to ensure continuous and 
     significant progress toward the goal of having all students 
     proficient within 10 years.
       ``(D) A State shall define adequate yearly progress for the 
     purpose of making determinations under this Act so that--
       ``(i) a school, local educational agency, or State, 
     respectively, has failed to make adequate yearly progress if 
     the school, local educational agency, or State, respectively, 
     has not--
       ``(I) made adequate progress as determined by the system or 
     formula described in subparagraph (C); or
       ``(II) for each group of students described in subparagraph 
     (B)(v)(II) (other than those groups formed by gender and 
     migrant status), achieved an increase of not less than 1 
     percent, in the percentage of students served by the school, 
     local educational agency, or State, respectively, meeting the 
     State's proficient level of performance in reading or 
     language arts and mathematics, for a school year compared to 
     the preceding school year; and
       ``(ii) for the purpose of making determinations under 
     clause (i)(I) or (II), the State may establish a uniform 
     procedure for averaging data from the school year for which 
     the determination is made and 1 or 2 school years preceding 
     such school year.
       ``(E) Each State shall ensure that in developing its plan, 
     the State diligently seeks public comment from a range of 
     institutions and individuals in the State with an interest in 
     improved student achievement and performance, including 
     parents, teachers, local educational agencies, pupil services 
     personnel, administrators (including those described in other 
     parts of this title), and other staff, and that the State 
     will continue to make a substantial effort to ensure that 
     information under this part is widely known and understood by 
     the public, parents, teachers, and school administrators 
     throughout the State. Such efforts shall include, at a 
     minimum, publication of such information and explanatory 
     text, broadly to the public through such means as the 
     Internet, the media, and public agencies.
       ``(F) If a State educational agency provides evidence, 
     which is satisfactory to the Secretary, that neither the 
     State educational agency nor any other State government 
     official, agency, or entity has sufficient authority, under 
     State law, to adopt curriculum content and student 
     performance standards, and assessments aligned with such 
     standards, which will be applicable to all students enrolled 
     in the State's public schools, the State educational agency 
     may meet the requirements of this subsection by--
       ``(i) adopting standards and assessments that meet the 
     requirements of this subsection, on a statewide basis, and 
     limiting the applicability of the standards and assessments 
     to students served under this part; or
       ``(ii) adopting and implementing policies that ensure that 
     each local educational agency in the State which receives a 
     grant under this part will adopt curriculum content and 
     student performance standards, and assessments aligned with 
     such standards, which meet all of the criteria of this 
     subsection.
       ``(G) Each State plan shall provide that in order for a 
     school to make adequate yearly progress under subparagraph 
     (B), not less than 95 percent of each group of students 
     described in subparagraph (B)(v)(II), who are enrolled in the 
     school at the time of the administration of the assessments, 
     shall take the assessments (in accordance with paragraphs 
     (3)(G)(ii) and (3)(H), and with accommodations, guidelines 
     and alternate assessments provided in the same manner as they 
     are provided under section 612(a)(17)(A) of the Individuals 
     with Disabilities Education Act) on which adequate yearly 
     progress is based, except that nothing in this subparagraph 
     shall be construed to limit the requirement under paragraph 
     (3)(G)(i) to assess all students.
       ``(3) Assessments.--Each State plan shall demonstrate that 
     the State, in consultation with local educational agencies, 
     has a system of high-quality, yearly student assessments in 
     subjects that include, at a minimum, mathematics, reading or 
     language arts, and science that will be used as the primary 
     means of determining the yearly performance of each local 
     educational agency and school in enabling all children to 
     meet the State's student performance standards, except that 
     no State shall be required to meet the requirements of this 
     part relating to science assessments until the beginning of 
     the 2007-2008 school year. Such assessments shall--
       ``(A) be the same assessments used to measure the 
     performance of all children;
       ``(B) be aligned with the State's challenging content and 
     student performance standards and provide coherent 
     information about student attainment of such standards;
       ``(C) be used for purposes for which such assessments are 
     valid and reliable, and be consistent with relevant, 
     nationally recognized professional and technical standards 
     for such assessments;
       ``(D) measure the proficiency of students in the academic 
     subjects in which a State has adopted challenging content and 
     student performance standards and be administered not less 
     than 1 or more times during--
       ``(i) grades 3 through 5;
       ``(ii) grades 6 through 9; and
       ``(iii) grades 10 through 12;
       ``(E) involve multiple up-to-date measures of student 
     performance, including measures that assess higher order 
     thinking skills and understanding;
       ``(F) beginning not later than school year 2005-2006, 
     measure the annual performance of students against the 
     challenging State content and student performance standards 
     in grades 3 through 8 in at least mathematics and reading or 
     language arts, except that--
       ``(i) the Secretary may provide the State 1 additional year 
     if the State demonstrates that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     local educational agency or school, prevented full 
     implementation of the assessments by that deadline and that 
     the State will complete the implementation within the 
     additional 1-year period; and
       ``(ii) a State shall not be required to conduct any 
     assessments under this subparagraph, that were not required 
     on the day preceding the date of enactment of the Better 
     Education for Students and Teachers Act, in any school year, 
     if the amount made available to the State under section 
     6403(a) for use in that school year for such assessments is 
     less than 50 percent of the costs of administering such 
     assessments by the State in the previous school year, or if 
     such assessments were not administered in the previous school 
     year (in accordance with this clause), in the most recent 
     school year in which such assessments were administered;
       ``(G) provide for--
       ``(i) the participation in such assessments of all 
     students;
       ``(ii) the reasonable adaptations and accommodations for 
     students with disabilities defined under section 602(3) of 
     the Individuals with Disabilities Education Act necessary to 
     measure the achievement of such

[[Page 6985]]

     students relative to State content and State student 
     performance standards;
       ``(iii) the inclusion of limited English proficient 
     students who shall be assessed, to the extent practicable, in 
     the language and form most likely to yield accurate and 
     reliable information on what such students know and can do in 
     content areas; and
       ``(iv) notwithstanding clause (iii), the assessment (using 
     tests written in English) of reading or language arts of any 
     student who has attended school in the United States 
     (excluding the Commonwealth of Puerto Rico) for 3 or more 
     consecutive school years, except that--

       ``(I) if the local educational agency determines, on a 
     case-by-case individual basis, that assessments in another 
     language and form would likely yield more accurate and 
     reliable information on what such student knows and can do, 
     the local educational agency may assess such student in the 
     appropriate language other than English for 1 additional 
     year; or
       ``(II) in extraordinary situations, if the local 
     educational agency determines, on a case-by-case individual 
     basis, that assessments in another language and form would 
     likely yield more accurate and reliable information, the 
     local educational agency may assess such student in the 
     appropriate language for additional years;

       ``(H) include students who have attended schools in a local 
     educational agency for a full academic year but have not 
     attended a single school for a full academic year, except 
     that the performance of students who have attended more than 
     1 school in the local educational agency in any academic year 
     shall be used only in determining the progress of the local 
     educational agency;
       ``(I) produce individual student interpretive and 
     descriptive reports to be provided to parents of all 
     students, which shall include scores, or other information on 
     the attainment of student performance standards, such as 
     measures of student course work over time, student attendance 
     rates, student dropout rates, and student participation in 
     advanced level courses; and
       ``(J) enable results to be disaggregated within each State, 
     local educational agency, and school by gender, by racial and 
     ethnic group, by English proficiency status, by migrant 
     status, by students with disabilities as compared to 
     nondisabled students, and by economically disadvantaged 
     students as compared to students who are not economically 
     disadvantaged, except that in the case of a local educational 
     agency or a school such disaggregation shall not be required 
     in a case in which the number of students in a category is 
     insufficient to yield statistically reliable information or 
     the results would reveal individually identifiable 
     information about an individual student.
       ``(4) Special rules.--(A) Additional measures that do not 
     meet the requirements of paragraph (3)(C) may be included in 
     the assessments if a State includes in the State plan 
     information regarding the State's efforts to validate such 
     measures.
       ``(B) States may measure the proficiency of students in the 
     academic subjects in which a State has adopted challenging 
     content and student performance standards 1 or more times 
     during grades kindergarten through 2.
       ``(5) Language assessments.--Each State plan shall identify 
     the languages other than English that are present in the 
     participating student population and indicate the languages 
     for which yearly student assessments are not available and 
     are needed. The State shall make every effort to develop such 
     assessments and may request assistance from the Secretary if 
     linguistically accessible assessment measures are needed. 
     Upon request, the Secretary shall assist with the 
     identification of appropriate assessment measures in the 
     needed languages but shall not mandate a specific assessment 
     or mode of instruction.
       ``(6) Requirement.--Each State plan shall describe--
       ``(A) how the State educational agency will help each local 
     educational agency and school affected by the State plan to 
     develop the capacity to comply with each of the requirements 
     of sections 1112(c)(4), 1114(b), and 1115(c) that is 
     applicable to such agency or school; and
       ``(B) such other factors the State deems appropriate to 
     provide students an opportunity to achieve the knowledge and 
     skills described in the challenging content standards adopted 
     by the State.
       ``(7) Ed-flex.--A State shall not be eligible for 
     designation under the Ed-Flex Partnership Act of 1999 until 
     the State develops assessments aligned with the State's 
     content standards in at least mathematics and reading or 
     language arts.
       ``(c) Other Provisions To Support Teaching and Learning.--
     Each State plan shall contain assurances that--
       ``(1) the State will meet the requirements of subsection 
     (i)(1) and, beginning with the 2002-2003 school year, will 
     produce the annual State report cards described in such 
     subsection;
       ``(2) the State will, beginning in school year 2002-2003, 
     participate in annual State assessments of 4th and 8th grade 
     reading and mathematics under the National Assessment of 
     Educational Progress carried out under section 411(b)(2) of 
     the National Education Statistics Act of 1994 if the 
     Secretary pays the costs of administering such assessments;
       ``(3) the State educational agency will work with other 
     agencies, including educational service agencies or other 
     local consortia, and institutions to provide technical 
     assistance to local educational agencies and schools to carry 
     out the State educational agency's responsibilities under 
     this part, including technical assistance in providing 
     professional development under section 1119, technical 
     assistance under section 1117, and parental involvement under 
     section 1118;
       ``(4)(A) where educational service agencies exist, the 
     State educational agency will consider providing professional 
     development and technical assistance through such agencies; 
     and
       ``(B) where educational service agencies do not exist, the 
     State educational agency will consider providing professional 
     development and technical assistance through other 
     cooperative agreements such as through a consortium of local 
     educational agencies;
       ``(5) the State educational agency will notify local 
     educational agencies and the public of the content and 
     student performance standards and assessments developed under 
     this section, and of the authority to operate schoolwide 
     programs, and will fulfill the State educational agency's 
     responsibilities regarding local educational agency 
     improvement and school improvement under section 1116, 
     including such corrective actions as are necessary;
       ``(6) the State educational agency will provide the least 
     restrictive and burdensome regulations for local educational 
     agencies and individual schools participating in a program 
     assisted under this part;
       ``(7) the State educational agency will inform the 
     Secretary and the public of how Federal laws, if at all, 
     hinder the ability of States to hold local educational 
     agencies and schools accountable for student academic 
     performance;
       ``(8) the State educational agency will encourage schools 
     to consolidate funds from other Federal, State, and local 
     sources for schoolwide reform in schoolwide programs under 
     section 1114;
       ``(9) the State educational agency will modify or eliminate 
     State fiscal and accounting barriers so that schools can 
     easily consolidate funds from other Federal, State, and local 
     sources for schoolwide programs under section 1114;
       ``(10) the State educational agency has involved the 
     committee of practitioners established under section 1903(b) 
     in developing the plan and monitoring its implementation;
       ``(11) the State educational agency will inform local 
     educational agencies of the local educational agency's 
     authority to obtain waivers under subpart 3 of part B of 
     title V and, if the State is an Ed-Flex Partnership State, 
     waivers under the Education Flexibility Partnership Act of 
     1999; and
       ``(12) the State will coordinate activities funded under 
     this part with other Federal activities as appropriate.
       ``(d) Parental Involvement.--Each State plan shall describe 
     how the State will support the collection and dissemination 
     to local educational agencies and schools of effective 
     parental involvement practices. Such practices shall--
       ``(1) be based on the most current research on effective 
     parental involvement that fosters achievement to high 
     standards for all children; and
       ``(2) be geared toward lowering barriers to greater 
     participation in school planning, review, and improvement 
     experienced by parents.
       ``(e) Peer Review and Secretarial Approval.--
       ``(1) Secretarial duties.--The Secretary shall--
       ``(A) establish a peer review process to assist in the 
     review of State plans;
       ``(B) appoint individuals to the peer review process who 
     are representative of parents, teachers, State educational 
     agencies, local educational agencies, and who are familiar 
     with educational standards, assessments, accountability, and 
     other diverse educational needs of students;
       ``(C) approve a State plan within 120 days of its 
     submission unless the Secretary determines that the plan does 
     not meet the requirements of this section;
       ``(D) if the Secretary determines that the State plan does 
     not meet the requirements of subsection (a), (b), or (c), 
     immediately notify the State of such determination and the 
     reasons for such determination;
       ``(E) not decline to approve a State's plan before--
       ``(i) offering the State an opportunity to revise its plan;
       ``(ii) providing technical assistance in order to assist 
     the State to meet the requirements under subsections (a), 
     (b), and (c); and
       ``(iii) providing a hearing; and
       ``(F) have the authority to disapprove a State plan for not 
     meeting the requirements of this part, but shall not have the 
     authority to require a State, as a condition of approval of 
     the State plan, to include in, or delete from, such plan 1 or 
     more specific elements of the State's content standards or to 
     use specific assessment instruments or items.
       ``(2) State revisions.--States shall revise their plans if 
     necessary to satisfy the requirements of this section.

[[Page 6986]]

       ``(f) Provision of Testing Results to Parents and 
     Teachers.--Each State plan shall demonstrate how the State 
     educational agency will assist local educational agencies in 
     assuring that results from the assessments required under 
     this section will be provided to parents and teachers as soon 
     as is practicably possible after the test is taken, in a 
     manner and form that is understandable and easily accessible 
     to parents and teachers.
       ``(g) Duration of the Plan.--
       ``(1) In general.--Each State plan shall--
       ``(A) remain in effect for the duration of the State's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the State, as 
     necessary, to reflect changes in the State's strategies and 
     programs under this part.
       ``(2) Additional information.--If the State makes 
     significant changes in its plan, such as the adoption of new 
     State content standards and State student performance 
     standards, new assessments, or a new definition of adequate 
     progress, the State shall submit such information to the 
     Secretary.
       ``(h) Limitation on Conditions.--Nothing in this part shall 
     be construed to authorize an officer or employee of the 
     Federal Government to mandate, direct, or control a State, 
     local educational agency, or school's specific instructional 
     content or student performance standards and assessments, 
     curriculum, or program of instruction, as a condition of 
     eligibility to receive funds under this part.
       ``(i) Penalty.--If a State fails to meet the statutory 
     deadlines for demonstrating that it has in place challenging 
     content standards and student performance standards, and a 
     system for measuring and monitoring adequate yearly progress, 
     the Secretary shall withhold funds for State administration 
     and activities under section 1117 until the Secretary 
     determines that the State plan meets the requirements of this 
     section.
       ``(j) Reports.--
       ``(1) Annual state report card.--
       ``(A) In general.--Not later than the beginning of the 
     2002-2003 school year, a State that receives assistance under 
     this Act shall prepare and disseminate an annual State report 
     card.
       ``(B) Implementation.--The State report card shall be--
       ``(i) concise; and
       ``(ii) presented in a format and manner that parents can 
     understand, and which, to the extent practicable, shall be in 
     a language the parents can understand.
       ``(C) Public dissemination.--The State shall widely 
     disseminate the information described in subparagraph (D) to 
     all schools and local educational agencies in the State and 
     make the information broadly available through public means, 
     such as posting on the Internet, distribution to the media, 
     and distribution through public agencies.
       ``(D) Required information.--The State shall include in its 
     annual State report card--
       ``(i) information, in the aggregate, on student achievement 
     and performance at each proficiency level on the State 
     assessments described in subsection (b)(3)(F) (disaggregated 
     by race, ethnicity, gender, disability status, migrant 
     status, English proficiency, and socioeconomic status);
       ``(ii) the percentage of students not tested (disaggregated 
     by the same categories described in clause (i));
       ``(iii) 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;
       ``(iv) aggregate information included in all other 
     indicators used by the State to determine the adequate yearly 
     progress of students in achieving State content and student 
     performance standards;
       ``(v) average 4-year graduation rates and annual school 
     dropout rates disaggregated by race, ethnicity, gender, 
     disability status, migrant status, English proficiency, and 
     socioeconomic status, 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;
       ``(vi) the percentage of teachers teaching with emergency 
     or provisional credentials (disaggregated by high poverty and 
     low poverty schools which for purposes of this clause means 
     schools in which 50 percent or more, or less than 50 percent, 
     respectively, of the students are from low-income families), 
     and the percentage of classes not taught by highly qualified 
     teachers in such high poverty schools;
       ``(vii) the number and names of each school identified for 
     school improvement, including schools identified under 
     section 1116(c); and
       ``(viii) information on the performance of local 
     educational agencies in the State regarding making adequate 
     yearly progress, including the number and percentage of 
     schools in the State that did not make adequate yearly 
     progress.
       ``(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 of parental participation in the schools;
       ``(vi) parental involvement activities;
       ``(vii) extended learning time programs such as after-
     school and summer programs;
       ``(viii) the percentage of students completing advanced 
     placement courses;
       ``(ix) the percentage of students completing college 
     preparatory curricula; and
       ``(x) student access to technology in school.
       ``(2) Annual local educational agency report cards.--
       ``(A) In general.--Not later than the beginning of the 
     2002-2003 school year, a local educational agency that 
     receives assistance under this Act shall prepare and 
     disseminate an annual local educational agency report card.
       ``(B) Minimum requirements.--The State shall ensure that 
     each local educational agency collects appropriate data and 
     includes in the local educational agency's annual report the 
     information described in paragraph (1)(D) as applied to the 
     local educational agency and each school served by the local 
     educational agency, and--
       ``(i) in the case of a local educational agency--

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

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

       ``(I) whether the school has been identified for school 
     improvement; and
       ``(II) information that shows how the school's students 
     performed on the statewide assessment compared to students in 
     the local educational agency and the State as a whole.

       ``(C) Other information.--A local educational agency may 
     include in its annual reports any other appropriate 
     information whether or not such information is included in 
     the annual State report.
       ``(D) Data.--A local educational agency or school shall 
     only include in its annual local educational agency report 
     card data that is sufficient to yield statistically reliable 
     information, as determined by the State, and does not reveal 
     individually identifiable information about an individual 
     student.
       ``(E) Public dissemination.--The local educational agency 
     shall, not later than the beginning of the 2002-2003 school 
     year, publicly disseminate the information described in this 
     paragraph to all schools in the school district and to all 
     parents of students attending those schools, and make the 
     information broadly available through public means, such as 
     posting on the Internet, distribution to the media, and 
     distribution through public agencies, except that if a local 
     educational agency issues a report card for all students, the 
     local educational agency may include the information under 
     this section as part of such report.
       ``(3) Preexisting report cards.--A State or local 
     educational agency that was providing public report cards on 
     the performance of students, schools, local educational 
     agencies, or the State, may continue to use those reports for 
     the purpose of this subsection, if such report is modified, 
     as may be necessary, to contain the information required by 
     this subsection.
       ``(4) Annual state report to the secretary.--Each State 
     receiving assistance under this Act shall report annually to 
     the Secretary, and make widely available within the State--
       ``(A) beginning with school year 2001-2002, information on 
     the State's progress in developing and implementing the 
     assessments described in subsection (b)(3);
       ``(B) beginning not later than school year 2004-2005, 
     information on the achievement of students on the assessments 
     required by that section, including the disaggregated results 
     for the categories of students identified in subsection 
     (b)(2)(B)(v)(II);
       ``(C) the number and names of each school identified for 
     school improvement, including schools identified under 
     section 1116(c), the reason why each school was so 
     identified, and the measures taken to address the performance 
     problems of such schools; and
       ``(D) in any year before the State begins to provide the 
     information described in subparagraph (B), information on the 
     results of student assessments (including disaggregated 
     results) required under this section.
       ``(5) Parents right-to-know.--
       ``(A) Qualifications.--A local educational agency that 
     receives funds under this part shall provide and notify the 
     parents of each student attending any school receiving funds 
     under this part that the parents may request, and will be 
     provided on request, information regarding the professional 
     qualifications of the student's classroom teachers, 
     including, at a minimum, the following:

[[Page 6987]]

       ``(i) Whether the teacher has met State qualification and 
     licensing criteria for the grade levels and subject areas in 
     which the teacher provides instruction.
       ``(ii) Whether the teacher is teaching under emergency or 
     other provisional status through which State qualification or 
     licensing criteria have been waived.
       ``(iii) The baccalaureate degree major of the teacher and 
     any other graduate certification or degree held by the 
     teacher, and the field of discipline of the certification or 
     degree.
       ``(iv) Whether the child is provided services by 
     paraprofessionals and the qualifications of such 
     paraprofessional.
       ``(B) Additional information.--A school that receives funds 
     under this part shall provide to parents information on the 
     level of performance, of the individual student for whom they 
     are the parent, in each of the State assessments as required 
     under this part.
       ``(C) Format.--The notice and information provided to 
     parents shall be in an understandable and uniform format.
       ``(k) Privacy.--Information collected under this section 
     shall be collected and disseminated in a manner that protects 
     the privacy of individuals.
       ``(l) Technical Assistance.--The Secretary shall provide a 
     State educational agency, at the State educational agency's 
     request, technical assistance in meeting the requirements of 
     this section, including the provision of advice by experts in 
     the development of high-quality assessments and other 
     relevant areas.''.

     SEC. 112. LOCAL EDUCATIONAL AGENCY PLANS.

       Section 1112 (20 U.S.C. 6312) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``the Goals'' and all 
     that follows through ``section 14306'' and inserting ``the 
     Individuals with Disabilities Education Act, the Carl D. 
     Perkins Vocational and Technical Education Act of 1998, the 
     Head Start Act, and other Acts, as appropriate''; and
       (B) in paragraph (2), by striking ``14304'' and inserting 
     ``5504'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (C), by inserting ``and'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(D) determine the literacy levels of first graders and 
     their needs for interventions, including a description of how 
     the agency will ensure that any such assessments--
       ``(i) are developmentally appropriate;
       ``(ii) use multiple measures to provide information about 
     the variety of skills that research has identified as leading 
     to early reading; and
       ``(iii) are administered to students in the language most 
     likely to yield valid results;'';
       (B) in paragraph (3), by inserting ``, which strategy shall 
     be coordinated with activities under title II if the local 
     educational agency receives funds under title II'' before the 
     semicolon;
       (C) in paragraph (4)--
       (i) in subparagraph (A)--

       (I) by striking ``programs, vocational'' and inserting 
     ``programs and vocational''; and
       (II) by striking ``, and school-to-work transition 
     programs''; and

       (ii) in subparagraph (B)--

       (I) by striking ``served under part C'' and all that 
     follows through ``1994''; and
       (II) by striking ``served under part D''; and

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

     SEC. 113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

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

     SEC. 114. SCHOOLWIDE PROGRAMS.

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

       (I) in the matter preceding clause (i), by striking 
     ``Improving America's Schools Act

[[Page 6988]]

     of 1994'' and inserting ``Better Education for Students and 
     Teachers Act''; and
       (II) in clause (iv), by inserting ``in a language the 
     family can understand'' after ``assessment results''; and

       (ii) in subparagraph (C)--

       (I) in clause (i)(II), by striking ``Improving America's 
     Schools Act of 1994'' and inserting ''Better Education for 
     Students and Teachers Act''; and
       (II) in clause (v), by striking ``the School-to-Work 
     Opportunities Act of 1994''.

     SEC. 115. TARGETED ASSISTANCE SCHOOLS.

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

     SEC. 116. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

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

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

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

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

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

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

       ``(a) Local Review.--Each local educational agency 
     receiving funds under this part shall--
       ``(1) use the State assessments described in the State 
     plan;
       ``(2) use any additional measures or indicators described 
     in the local educational agency's plan to review annually the 
     progress of each school served under this part to determine 
     whether the school is meeting, or making adequate progress as 
     defined in section 1111(b)(2)(B) toward enabling its students 
     to meet the State's student performance standards described 
     in the State plan;
       ``(3) provide the results of the local annual review to 
     schools so that the schools can continually refine the 
     program of instruction to help all children served under this 
     part in those schools meet the State's student performance 
     standards; and
       ``(4) annually review the effectiveness of the actions and 
     activities the schools are carrying out under this part with 
     respect to parental involvement activities under section 
     1118, professional development activities under section 1119, 
     and other activities assisted under this Act.
       ``(b) Designation of Distinguished Schools.--Each State 
     educational agency and local educational agency receiving 
     funds under this part shall designate distinguished schools 
     in accordance with section 1117.
       ``(c) School Improvement.--
       ``(1) School improvement.--(A) Subject to subparagraph (B), 
     a local educational agency shall identify for school 
     improvement any elementary school or secondary school served 
     under this part that fails, for any year, to make adequate 
     yearly progress as defined in the State's plan under section 
     1111(b)(2)(B).
       ``(B) Subparagraph (A) shall not apply to a school if 
     almost every student in such school is meeting the State's 
     proficient level of performance.
       ``(C) To determine if an elementary school or a secondary 
     school that is conducting a targeted assistance program under 
     section 1115 should be identified for school improvement 
     under this subsection, a local educational agency may choose 
     to review the progress of only the students in the school who 
     are served, or are eligible for services, under this part.
       ``(2) Opportunity to review and present evidence; time 
     limit.--(A) Before identifying an elementary school or a 
     secondary school for school improvement under paragraph (1), 
     for corrective action under paragraph (7), or for 
     reconstitution under paragraph (8), the local educational 
     agency shall provide the school with an opportunity to review 
     the school-level data, including assessment data, on which 
     such identification is based.
       ``(B) If the principal of a school proposed for 
     identification under paragraph (1), (7), or (8) believes that 
     the proposed identification is in error for statistical or 
     other substantive reasons, the principal may provide 
     supporting evidence to the local educational agency, which 
     shall consider that evidence before making a final 
     determination.
       ``(C) Not later than 30 days after a local educational 
     agency makes an initial determination concerning identifying 
     a school under paragraph (1), (7), or (8), the local 
     educational agency shall make public a final determination on 
     the status of the school.
       ``(3) School plan.--(A) Each school identified under 
     paragraph (1) for school improvement shall, not later than 3 
     months after being so identified, develop or revise a school 
     plan, in consultation with parents, school staff, the local 
     educational agency serving the school, the local school 
     board, and other outside experts, for approval by such local 
     educational agency. The school plan shall cover a 2-year 
     period and--
       ``(i) incorporate scientifically based research strategies 
     that strengthen the core academic subjects in the school and 
     address the specific academic issues that caused the school 
     to be identified for school improvement;
       ``(ii) adopt policies and practices concerning the school's 
     core academic subjects that have the greatest likelihood of 
     ensuring that all groups of students specified in section 
     1111(b)(2)(B)(v)(II) and enrolled in the school will meet the 
     State's proficient level of performance on the State 
     assessment described in section 1111(b)(3) within 10 years

[[Page 6989]]

     after the date of enactment of the Better Education for 
     Students and Teachers Act;
       ``(iii) provide an assurance that the school will reserve 
     not less than 10 percent of the funds made available to the 
     school under this part for each fiscal year that the school 
     is in school improvement status, for the purpose of providing 
     to the school's teachers and principal high-quality 
     professional development that--
       ``(I) directly addresses the academic performance problem 
     that caused the school to be identified for school 
     improvement; and
       ``(II) meets the requirements for professional development 
     activities under section 1119;
       ``(iv) specify how the funds described in clause (iii) will 
     be used to remove the school from school improvement status;
       ``(v) establish specific annual, objective goals for 
     continuous and significant progress by each group of students 
     specified in section 1111 (b)(2)(B)(v)(II) and enrolled in 
     the school that will ensure that all such groups of students 
     will meet the State's proficient level of performance on the 
     State assessment described in section 1111(b)(3) within 10 
     years after the date of enactment of the Better Education for 
     Students and Teachers Act;
       ``(vi) identify how the school will provide written 
     notification about the identification to the parents of each 
     student enrolled in such school, in a format and, to the 
     extent practicable, in a language the parents can understand;
       ``(vii) specify the responsibilities of the school, the 
     local educational agency, and the State educational agency 
     serving the school under the plan, including the technical 
     assistance to be provided by the local educational agency 
     under paragraph (4); and
       ``(viii) include strategies to promote effective parental 
     involvement in the school.
       ``(B) The local educational agency may condition approval 
     of a school plan on inclusion of 1 or more of the corrective 
     actions specified in paragraph (7)(D)(ii).
       ``(C) A school shall implement the school plan (including a 
     revised plan) expeditiously, but not later than the beginning 
     of the school year following the school year in which the 
     school was identified for school improvement.
       ``(D) The local educational agency, within 45 days after 
     receiving a school plan, shall--
       ``(i) establish a peer-review process to assist with review 
     of a school plan prepared by a school served by the local 
     educational agency; and
       ``(ii) promptly review the school plan, work with the 
     school as necessary, and approve the school plan if the plan 
     meets the requirements of this paragraph.
       ``(4) Technical assistance.--(A) For each school identified 
     for school improvement under paragraph (1), the local 
     educational agency serving the school shall provide technical 
     assistance as the school develops and implements the school 
     plan.
       ``(B) Such technical assistance--
       ``(i) shall include assistance in analyzing data from the 
     assessments required under section 1111(b)(3), and other 
     samples of student work, to identify and address 
     instructional problems and solutions;
       ``(ii) shall include assistance in identifying and 
     implementing instructional strategies and methods that are 
     tied to scientifically based research and that have proven 
     effective in addressing the specific instructional issues 
     that caused the school to be identified for school 
     improvement;
       ``(iii) shall include assistance in analyzing and revising 
     the school's budget so that the school resources are more 
     effectively allocated for the activities most likely to 
     increase student performance and to remove the school from 
     school improvement status; and
       ``(iv) may be provided--
       ``(I) by the local educational agency, through mechanisms 
     authorized under section 1117; or
       ``(II) by the State educational agency, an institution of 
     higher education (in full compliance with all the reporting 
     provisions of title II of the Higher Education Act of 1965), 
     a private not-for-profit organization or for-profit 
     organization, an educational service agency, or another 
     entity with experience in helping schools improve 
     performance.
       ``(C) Technical assistance provided under this section by a 
     local educational agency or an entity approved by that agency 
     shall be based on scientifically based research.
       ``(5) 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)(B), at the end of the 
     first year after the school year for which the school was 
     identified under paragraph (1), the local educational agency 
     serving such school--
       ``(A) shall provide all students enrolled in the school 
     with the option to transfer to another public school within 
     the local educational agency, including a public charter 
     school, that has not been identified for school improvement 
     under paragraph (1), unless--
       ``(i) such an option is prohibited by State law or local 
     law, which includes school board approved local educational 
     agency policy; or
       ``(ii) the local educational agency demonstrates to the 
     satisfaction of the State educational agency that the local 
     educational agency lacks the capacity to provide that option 
     to all students in the school who request the option, in 
     which case the local educational agency shall permit as many 
     students as possible (selected by the agency on an equitable 
     basis) to make such a transfer, after giving notice to the 
     parents of affected children that it is not possible, 
     consistent with State and local law, to accommodate the 
     transfer request of every student;
       ``(B) may identify the school for, and take, corrective 
     action under paragraph (7); and
       ``(C) shall continue to provide technical assistance while 
     instituting any corrective action.
       ``(6) Notification to parents.--A local educational agency 
     shall promptly provide (in a format and, to the extent 
     practicable, in a language the parents can understand) the 
     parents of each student in an elementary school or a 
     secondary school identified for school improvement under 
     paragraph (1), for corrective action under paragraph (7), or 
     for reconstitution under paragraph (8)--
       ``(A) an explanation of what the identification means, and 
     how the school compares in terms of academic performance to 
     other elementary schools or secondary schools served by the 
     State educational agency and the local educational agency 
     involved;
       ``(B) the reasons for the identification;
       ``(C) an explanation of what the school is doing to address 
     the problem of low performance;
       ``(D) an explanation of what the State educational agency 
     or local educational agency is doing to help the school 
     address the performance problem;
       ``(E) an explanation of how parents described in this 
     paragraph can become involved in addressing the academic 
     issues that caused the school to be identified; and
       ``(F) when the school is identified for corrective action 
     under paragraph (7) or for reconstitution under paragraph 
     (8), an explanation of the parents' option to transfer their 
     child to another public school (with transportation provided 
     by the agency when required by paragraph (9)) or to obtain 
     supplemental services for the child, in accordance with those 
     paragraphs.
       ``(7) Corrective action.--(A) In this subsection, the term 
     `corrective action' means action, consistent with State and 
     local law, that--
       ``(i) substantially and directly responds to--
       ``(I) the consistent academic failure of a school that 
     caused the local educational agency to take such action; and
       ``(II) any underlying staffing, curriculum, or other 
     problem in the school; and
       ``(ii) is designed to increase substantially the likelihood 
     that students enrolled in the school identified for 
     corrective action will perform at the State's proficient and 
     advanced levels of performance on the State assessment 
     described in section 1111(b)(3).
       ``(B) In order to help students served under this part meet 
     challenging State standards, each local educational agency 
     shall implement a system of corrective action in accordance 
     with subparagraphs (C) through (F) and paragraph (8).
       ``(C) In the case of any school served by the local 
     educational agency under this part that fails to make 
     adequate yearly progress, as defined by the State under 
     section 1111(b)(2)(B), at the end of the second year after 
     the school year for which the school was identified under 
     paragraph (1), the local educational agency shall--
       ``(i) except as provided in subparagraph (D)(i)(I), provide 
     all students enrolled in the school with the option to 
     transfer to another public school within the local 
     educational agency, including a public charter school, that 
     has not been identified for school improvement under 
     paragraph (1), unless--
       ``(I) such an option is prohibited by State law or local 
     law; or
       ``(II) the local educational agency demonstrates to the 
     satisfaction of the State educational agency that the local 
     educational agency lacks the capacity to provide that option 
     to all students in the school who request the option, in 
     which case the local educational agency shall permit as many 
     students as possible (giving priority to the lowest achieving 
     students) to make such a transfer;
       ``(ii) identify the school for corrective action and take 
     at least one of the following corrective actions:
       ``(I) Make alternative governance arrangements, such as 
     reopening the school as a public charter school.
       ``(II) Replace the relevant school staff.
       ``(III) Institute and fully implement a new curriculum, 
     including providing appropriate professional development for 
     all relevant staff, that is tied to scientifically based 
     research and offers substantial promise of improving 
     educational performance for low-performing students; and
       ``(iii) continue to provide technical assistance to the 
     school.
       ``(D) If a school described in subparagraph (C) fails to 
     make adequate yearly progress for each of the three years 
     preceding the school year for which the school was identified 
     under this paragraph, in the same subject for the same group 
     of students from among the groups described in section

[[Page 6990]]

     1111(b)(2)(B)(v)(II), then the local educational agency shall 
     do each of the following:
       ``(i)(I) Provide all students enrolled in the school with 
     the option to transfer to another public school within the 
     local educational agency, including a public charter school, 
     that has not been identified for school improvement under 
     paragraph (1).
       ``(II) If all public schools in the local educational 
     agency to which children may transfer are identified under 
     paragraph (1) or this paragraph, the agency shall, to the 
     extent practicable, establish a cooperative agreement with 
     other local educational agencies in the area for the transfer 
     of as many of those children as possible, selected by the 
     agency on an equitable basis.
       ``(ii) Make supplemental educational services available, in 
     accordance with subsection (f), to children who remain in the 
     school.
       ``(E) A local educational agency may delay, for a period 
     not to exceed one year, implementation of corrective action 
     only if the school's failure to make adequate yearly progress 
     was justified due to exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous 
     and unforeseen decline in the financial resources of the 
     local educational agency or school.
       ``(F) The local educational agency shall publish and 
     disseminate information regarding any corrective action the 
     local educational agency takes under this paragraph at a 
     school to the public through such means as the Internet, the 
     media, and public agencies.
       ``(8) Reconstitution.--(A) If, after one year of corrective 
     action under paragraph (7), a school subject to such 
     corrective action continues to fail to make adequate yearly 
     progress and fails to make adequate yearly progress for 
     economically disadvantaged students in the same subject for 
     each of the three years preceding the school year for which 
     the school was identified under this paragraph, then the 
     local educational agency shall--
       ``(i) provide all students enrolled in the school with the 
     option to transfer to another public school in accordance 
     with paragraph (7)(D)(i);
       ``(ii) make supplemental educational services available, in 
     accordance with subsection (f), to children who remain in the 
     school; and
       ``(iii) prepare a plan and make necessary arrangements to 
     carry out subparagraph (B).
       ``(B) Not later than the beginning of the school year 
     following the year in which the local educational agency 
     implements subparagraph (A), the local educational agency 
     shall implement at least 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.
       ``(iii) Turning the operation of the school over to another 
     entity, such as a private contractor, with a demonstrated 
     record of success.
       ``(iv) Turning the operation of the school over to the 
     State, if agreed to by the State.
       ``(v) Any other major restructuring of the school's 
     governance arrangement.
       ``(C) The local educational agency shall provide prompt 
     notice to teachers and parents whenever subparagraph (A) or 
     (B) applies, shall provide the teachers and parents an 
     adequate opportunity to comment before taking any action 
     under those subparagraphs and to participate in developing 
     any plan under subparagraph (A)(iii).
       ``(9) Transportation.--In any case described in paragraph 
     (7)(D), the local educational agency--
       ``(A) shall provide, or shall pay for the provision of, 
     transportation for the student to the school the child 
     attends, notwithstanding subsection (f)(1)(C)(ii); and
       ``(B) may use not more than a total of 15 percent of the 
     local educational agency's allocation under this part for a 
     fiscal year for that transportation or for supplemental 
     services under subsection (f).
       ``(10) Duration of reconstitution.--If any school 
     identified for reconstitution under paragraph (8) makes 
     adequate yearly progress for two consecutive years, the local 
     educational agency need no longer subject the school to 
     corrective action or identify the school as in need of 
     improvement for the succeeding school year.
       ``(11) Special rules.--(A) A local educational agency shall 
     permit a child who transferred to another school under this 
     subsection to remain in that school, and shall continue to 
     provide or provide for transportation for the child to attend 
     that school to the extent required by paragraph (9)(B) until 
     the child leaves that school.
       ``(B) In determining whether a school has made adequate 
     yearly progress for any year under this subsection, a local 
     educational agency shall consider the amount of progress that 
     was expected to be made during that particular year in 
     meeting the objectives described under section 1111(b)(2)(B), 
     and may consider the extent to which the school failed to 
     make progress in other years.
       ``(C) The Secretary, through negotiated rulemaking, shall 
     establish regulations that set guidelines for addressing the 
     accumulated progress deficits for schools subject to 
     corrective action and reconstitution under this subsection. 
     Such guidelines shall establish rigorous, reasonable, and 
     equitable standards and a timeline for improving student 
     performance to a proficient level as soon as possible.
       ``(12) Schools previously identified for school improvement 
     or corrective action.--
       ``(A) School improvement.--(i) Except as provided in 
     clauses (ii) and (iii), any school that was in school 
     improvement status under this subsection on the day preceding 
     the date of enactment of the Better Education for Students 
     and Teachers Act shall be treated by the local educational 
     agency, at the beginning of the next school year following 
     such day, as a school that is in the first year of school 
     improvement under paragraph (1).
       ``(ii) Any school that was in school improvement status 
     under this subsection for the two school years preceding the 
     date of enactment of the Better Education for Students and 
     Teachers Act shall be treated by the local educational 
     agency, at the beginning of the next school year following 
     such day, as a school described in paragraph (7)(C) and 
     subject to paragraph (7)(D).
       ``(iii) Any school described in clause (ii) that fails to 
     make adequate yearly progress for the first full school year 
     following the date of enactment of the Better Education for 
     Students and Teachers Act, and that fails to make adequate 
     yearly progress for each of the two school years preceding 
     such date in the same subject for any group described in 
     section 1111(b)(2)(B)(v)(II), shall be subject to paragraph 
     (7)(D) at the beginning of the next school year.
       ``(iv) Any school described in clause (iii) that fails to 
     make adequate yearly progress for the second full school year 
     following the date of enactment of the Better Education for 
     Students and Teachers Act, and that fails to make adequate 
     yearly progress for each of the two years following such date 
     in the same subject for economically disadvantaged students, 
     shall be subject to paragraph (8) at the beginning of the 
     next school year.
       ``(B) Corrective action.--(i) Any school that was in 
     corrective action status under this subsection on the day 
     preceding the date of enactment of the Better Education for 
     Students and Teachers Act, and that fails to make adequate 
     yearly progress for the school year following such date, 
     shall be subject to paragraph (7)(D) at the beginning of the 
     next school year.
       ``(ii) Any school described in clause (i) that fails to 
     make adequate yearly progress for the second school year 
     following such date shall be subject to paragraph (8) at the 
     beginning of the next school year.
       ``(13) State educational agency responsibilities.--The 
     State educational agency shall--
       ``(A) make technical assistance under section 1117 
     available to all schools identified for school improvement 
     and corrective action under this subsection, to the extent 
     possible with funds reserved under section 1003; and
       ``(B) if the State educational agency determines that a 
     local educational agency failed to carry out its 
     responsibilities under this subsection, take such corrective 
     actions as the State educational agency determines 
     appropriate and in compliance with State law.
       ``(d) State Review and Local Educational Agency 
     Improvement.--
       ``(1) In general.--A State educational agency shall review 
     annually--
       ``(A) the progress of each local educational agency 
     receiving funds under this part to determine whether schools 
     receiving assistance under this part are making adequate 
     progress as defined in section 1111(b)(2)(B) toward meeting 
     the State's student performance standards and to determine 
     whether each local educational agency is carrying out its 
     responsibilities under section 1116 and section 1117; and
       ``(B) the effectiveness of the activities carried out under 
     this part by each local educational agency that receives 
     funds under this part and is served by the State educational 
     agency with respect to parental involvement, professional 
     development, and other activities assisted under this part.
       ``(2) Rewards.--In the case of a local educational agency 
     that for 3 consecutive years has met or exceeded the State's 
     definition of adequate progress as defined in section 
     1111(b)(2)(B), the State may make institutional and 
     individual rewards of the kinds described for individual 
     schools in paragraph (2) of section 1117(c).
       ``(3) Identification.--(A) A State educational agency shall 
     identify for improvement any local educational agency that 
     for 2 consecutive years, is not making adequate progress as 
     defined in section 1111(b)(2)(B) in schools served under this 
     part toward meeting the State's student performance 
     standards, except that schools served by the local 
     educational agency that are operating targeted assistance 
     programs may be reviewed on the basis of the progress of only 
     those students served under this part.
       ``(B) Before identifying a local educational agency for 
     improvement under this paragraph, the State educational 
     agency shall provide the local educational agency with an 
     opportunity to review the school-level data, including 
     assessment data, on which such identification is based. If 
     the local educational agency believes that such 
     identification for improvement is in error due to

[[Page 6991]]

     statistical or other substantive reasons, such local 
     educational agency may provide evidence to the State 
     educational agency to support such belief.
       ``(4) Local educational agency revisions.--(A) Each local 
     educational agency identified under paragraph (3) shall, not 
     later than 3 months after being so identified, revise and 
     implement a local educational agency plan as described under 
     section 1112. The plan shall--
       ``(i) include specific State-determined yearly progress 
     requirements in subjects and grades to ensure that all 
     students will meet proficient levels of performance within 10 
     years;
       ``(ii) address the fundamental teaching and learning needs 
     in the schools of that agency, and the specific academic 
     problems of low-performing students including a determination 
     of why the local educational agency's prior plan failed to 
     bring about increased student achievement and performance;
       ``(iii) incorporate scientifically based research 
     strategies that strengthen the core academic program in the 
     local educational agency;
       ``(iv) address the professional development needs of the 
     instructional staff by committing to spend not less than 10 
     percent of the funds received by the 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)), which funds 
     shall supplement and not supplant professional development 
     that instructional staff would otherwise receive, and which 
     professional development shall increase the content knowledge 
     of teachers and build the capacity of the teachers to align 
     classroom instruction with challenging content standards and 
     to bring all students to proficient or advanced levels of 
     performance as determined by the State;
       ``(v) identify specific goals and objectives the local 
     educational agency will undertake for making adequate yearly 
     progress, which goals and objectives shall be consistent with 
     State standards;
       ``(vi) identify how the local educational agency will 
     provide written notification regarding the identification to 
     parents of students enrolled in elementary schools and 
     secondary schools served by the local educational agency in a 
     format, and to the extent practicable, in a language that the 
     parents can understand;
       ``(vii) specify the responsibilities of the State 
     educational agency and the local educational agency under the 
     plan, including technical assistance to be provided by the 
     State educational agency under paragraph (5); and
       ``(viii) include strategies to promote effective parental 
     involvement in the school.
       ``(5) State educational agency responsibility.--(A) For 
     each local educational agency identified under paragraph (3), 
     the State educational agency shall provide technical or other 
     assistance, as authorized under section 1117, to better 
     enable the local educational agency to--
       ``(i) develop and implement the local educational agency's 
     revised plan; and
       ``(ii) work with schools needing improvement.
       ``(B) Technical assistance provided under this section by 
     the State educational agency or an entity authorized by such 
     agency shall be supported by effective methods and 
     instructional strategies tied to 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.'';
       ``(6) Corrective action.--(A)(i) Except as provided in 
     subparagraph (C), after providing technical assistance 
     pursuant to paragraph (5) and taking other remediation 
     measures, the State educational agency may take corrective 
     action at any time with respect to a local educational agency 
     that has been identified under paragraph (3), but shall take 
     such action, consistent with State and local law, with 
     respect to any local educational agency that continues to 
     fail to make adequate progress at the end of the second year 
     following identification under paragraph (3).
       ``(ii) The State educational agency shall continue to 
     provide technical assistance while implementing any 
     corrective action.
       ``(B) Consistent with State and local law, in the case of a 
     local educational agency subject to corrective action under 
     this paragraph, the State educational agency shall not take 
     less than 1 of the following corrective actions:
       ``(i) Instituting and fully implementing a new curriculum 
     that is based on State and local standards, including 
     appropriate professional development tied to scientifically 
     based research for all relevant staff that offers substantial 
     promise of improving educational achievement for low-
     performing students.
       ``(ii) Restructuring or abolishing the local educational 
     agency.
       ``(iii) Reconstituting school district personnel.
       ``(iv) Removal of particular schools from the jurisdiction 
     of the local educational agency and establishment of 
     alternative arrangements for public governance and 
     supervision of such schools.
       ``(v) Appointment by the State educational agency of a 
     receiver or trustee to administer the affairs of the local 
     educational agency in place of the superintendent and school 
     board.
       ``(vi) Deferring, reducing, or withholding funds.
       ``(C) 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.
       ``(D) Notification to parents.--The State educational 
     agency shall publish, and disseminate to parents and the 
     public, any corrective action the State educational agency 
     takes under this paragraph through a widely read or 
     distributed medium.
       ``(E) Delay.--A State educational agency may delay, for a 
     period not to exceed one year, implementation of corrective 
     action under this paragraph only if the local educational 
     agency's failure to make adequate yearly progress was 
     justified due to exceptional or uncontrollable circumstances, 
     such as a natural disaster or a precipitous and unforeseen 
     decline in the financial resources of the local educational 
     agency.
       ``(F) Waivers.--The State educational agency shall review 
     any waivers approved prior to the date of enactment of the 
     Better Education for Students and Teachers Act for a local 
     educational agency designated for improvement or corrective 
     action and shall terminate any waiver approved by the State 
     under the Educational Flexibility Partnership Act of 1999 if 
     the State determines, after notice and an opportunity for a 
     hearing, that the waiver is not helping the local educational 
     agency make yearly progress to meet the objectives and 
     specific goals described in the local educational agency's 
     improvement plan.
       ``(7) Special rules.--(A) If a local educational agency 
     makes adequate progress toward meeting the State's standards 
     for two consecutive years following identification under 
     paragraph (3), the State educational agency need no longer 
     subject the local educational agency to corrective action for 
     the succeeding school year.
       ``(B) The Secretary, through negotiated rulemaking, shall 
     establish regulations that set guidelines for determining 
     adequate yearly progress for a local educational agency that 
     was identified for corrective action under this subsection.
       ``(e) Construction.--Nothing in this section shall be 
     construed to alter or otherwise affect the rights, remedies, 
     and procedures afforded school or school district employees 
     under Federal, State, or local laws (including applicable 
     regulations or court orders) or under the terms of collective 
     bargaining agreements, memoranda of understanding, or other 
     agreements between such employees and their employers.
       ``(f) Supplemental Services.--
       ``(1) In general.--
       ``(A) Requirement.--In the case of any school described in 
     subsection (c)(7)(D) or (c)(8)(A), the local educational 
     agency serving such school shall, subject to subparagraphs 
     (B) through (E), arrange for the provision of supplemental 
     educational services to children in the school whose parents 
     request those services, from providers approved for that 
     purpose by the State educational agency and selected by the 
     parents.
       ``(B) Maximum allocation.--The amount that a local 
     educational agency shall make available for supplemental 
     educational services for each child receiving those services 
     under this subsection is equal to the lesser of--
       ``(i) the amount of the agency's allocation under subpart 2 
     of this part, divided by the number of children from low-
     income families enrolled in the agency's schools; or
       ``(ii) the actual costs of the supplemental educational 
     services received by the child.
       ``(C) Financial obligation of lea.--The local educational 
     agency shall enter into agreements with such approved 
     providers to provide services under this subsection to all 
     children whose parents request the services, except that--
       ``(i) the local educational agency may use not more than a 
     total of 15 percent of its allocation under this part for any 
     fiscal year to pay for services under this subsection or to 
     provide or provide for transportation under subsection 
     (c)(9); and
       ``(ii) the total amount described in clause (i) is the 
     maximum amount the local educational agency is required to 
     spend under this part on those services.
       ``(D) Insufficient funds.--If the amount of funds described 
     in subparagraph (C) available to provide services under this 
     subsection is insufficient to provide those services to each 
     child whose parents request the services, then the local 
     educational agency shall give priority to providing the 
     services to the lowest-achieving children.
       ``(E) 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 
     this part to a school described in subsection (c)(7)(D) or 
     (c)(8)(A).
       ``(2) Additional local educational agency 
     responsibilities.--Each local educational agency subject to 
     this subsection shall--

[[Page 6992]]

       ``(A) provide annual notice to parents (in a format and, to 
     the extent practicable, in a language the parents can 
     understand) of--
       ``(i) the availability of services under this subsection;
       ``(ii) the eligible 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) provide annual notice to potential providers of 
     supplemental services in the school district of the agency of 
     the opportunity to provide services under this subsection and 
     of the applicable procedures for obtaining approval from the 
     State educational agency to be a provider of those services;
       ``(C) if requested, assist parents to choose a provider 
     from the list of approved providers maintained by the State;
       ``(D) apply fair and equitable procedures for serving 
     students if spaces at eligible providers are not sufficient 
     to serve all students;
       ``(E) enter into an agreement with each selected provider 
     that includes a statement for each child, developed with the 
     parents of the child and the provider, of specific 
     performance goals for the student, how the student's progress 
     will be measured, and how the parents and the child's 
     teachers will be regularly informed of the child's progress 
     and that, in the case of a child with disabilities, is 
     consistent with the child's individualized education program 
     under section 614(d) of the Individuals with Disabilities 
     Education Act; and
       ``(F) not disclose to the public the identity of any child 
     eligible for, or receiving, supplemental services under this 
     subsection without the written permission of the parents of 
     the child.
       ``(3) Additional state educational agency 
     responsibilities.--Each State educational agency shall, in 
     consultation with local educational agencies, parents, 
     teachers, and other interested members of the public--
       ``(A) promote maximum participation under this subsection 
     by service providers to ensure, to the extent practicable, 
     that parents have as many choices of those providers as 
     possible;
       ``(B) develop and apply objective criteria to potential 
     service providers that are based on demonstrated 
     effectiveness in increasing the academic proficiency of 
     students in subjects relevant to meeting the State content 
     and student performance standards adopted under section 
     1111(b)(1);
       ``(C) maintain an updated list of approved service 
     providers in school districts served by local educational 
     agencies subject to this subsection, from which parents may 
     select;
       ``(D) develop and implement standards and techniques for 
     monitoring, and publicly reporting on, the quality and 
     effectiveness of the services offered by service providers, 
     and for withdrawing approval from providers that fail, for 
     two consecutive years, to contribute to increasing the 
     academic proficiency of students served under this subsection 
     as described in subparagraph (B); and
       ``(E) ensure that all approved providers meet applicable 
     health and safety codes.
       ``(4) Waiver.--A State educational agency may waive the 
     requirements of this subsection for a local educational 
     agency that demonstrates to the State educational agency's 
     satisfaction that its list of approved service providers does 
     not include any providers whose services are reasonably 
     available geographically to children in that local 
     educational agency.
       ``(5) Special rule.--If State law prohibits a State 
     educational agency from carrying out any of its 
     responsibilities under this subsection, each local 
     educational agency in the State shall carry out those 
     prohibited responsibilities with respect to those who 
     provide, or seek approval to provide, services to students 
     who attend schools served by the local educational agency.
       ``(6) Definition.--In this subsection, the term 
     `supplemental educational services' means tutoring and other 
     supplemental academic enrichment services that--
       ``(A) are of high quality, research-based, focused on 
     academic content, and directed exclusively at raising student 
     proficiency in meeting the State's challenging content and 
     student performance standards; and
       ``(B) are provided outside of regular school hours.''.

     SEC. 118. ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

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

       (I) by striking ``and may'' and inserting ``(and may''; and
       (II) by striking ``exemplary performance'' and inserting 
     ``exemplary performance)''; and

       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``Educators'' and 
     inserting ``Teachers and Principals'';
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) The State may also recognize and provide financial 
     awards to teachers or principals in a school described in 
     paragraph (2) whose students consistently make significant 
     gains in academic achievement.'';
       (iii) in subparagraph (B), by striking ``educators'' and 
     inserting ``teachers or principals''; and
       (iv) by striking subparagraph (C).

     SEC. 119. PARENTAL INVOLVEMENT.

       Section 1118 (20 U.S.C. 6319) is amended--
       (1) in subsection (a)(2)(B), by inserting ``activities to 
     improve student achievement and student and school 
     performance'' after ``involvement'';
       (2) in subsection (b)(1)--
       (A) in the first sentence, by inserting ``(in a language 
     parents can understand)'' after ``distribute''; and
       (B) in the second sentence, insert ``shall be made 
     available to the local community and'' after ``Such policy'';
       (3) in subsection (e)--

[[Page 6993]]

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

     SEC. 120. PROFESSIONAL DEVELOPMENT.

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

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

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

[[Page 6994]]

     striking ``14501 of this Act'' and inserting ``4''.

     SEC. 120B. EARLY CHILDHOOD EDUCATION.

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

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

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

     SEC. 120C. ALLOCATIONS.

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

                        ``Subpart 2--Allocations

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

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

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

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

     ``SEC. 1123. DEFINITIONS.

       ``In this subpart:
       ``(1) Freely associated states.--The term `Freely 
     Associated States' means the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

[[Page 6995]]

       ``(2) Outlying areas.--The term `outlying areas' means the 
     United States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(3) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

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

       ``(a) Amount of Grants.--
       ``(1) Grants for local educational agencies and puerto 
     rico.--Except as provided in paragraph (4) and in section 
     1126, the grant that a local educational agency is eligible 
     to receive under this section for a fiscal year is the amount 
     determined by multiplying--
       ``(A) the number of children counted under subsection (c); 
     and
       ``(B) 40 percent of the average per-pupil expenditure in 
     the State, except that the amount determined under this 
     subparagraph shall not be less than 32 percent, and not more 
     than 48 percent, of the average per-pupil expenditure in the 
     United States.
       ``(2) Calculation of grants.--
       ``(A) Allocations to local educational agencies.--The 
     Secretary shall calculate grants under this section on the 
     basis of the number of children counted under subsection (c) 
     for local educational agencies, unless the Secretary and the 
     Secretary of Commerce determine that some or all of those 
     data are unreliable or that their use would be otherwise 
     inappropriate, in which case--
       ``(i) the Secretary and the Secretary of Commerce shall 
     publicly disclose the reasons for their determination in 
     detail; and
       ``(ii) paragraph (3) shall apply.
       ``(B) Allocations to large and small local educational 
     agencies.--
       ``(i) Large local educational agencies.--In the case of an 
     allocation under this section to a large local educational 
     agency, the amount of the grant under this section for the 
     large local educational agency shall be the amount determined 
     under paragraph (1).
       ``(ii) Small local educational agencies.--

       ``(I) In general.--In the case of an allocation under this 
     section to a small local educational agency the State 
     educational agency may--

       ``(aa) distribute grants under this section in amounts 
     determined by the Secretary under paragraph (1); or
       ``(bb) use an alternative method approved by the Secretary 
     to distribute the portion of the State's total grants under 
     this section that is based on those small local educational 
     agencies.

       ``(II) Alternative method.--An alternative method under 
     subclause (I)(bb) shall be based on population data that the 
     State educational agency determines best reflect the current 
     distribution of children in poor families among the State's 
     small local educational agencies that meet the minimum number 
     of children to qualify described in subsection (b).
       ``(III) Appeal.--If a small local educational agency is 
     dissatisfied with the determination of the amount of its 
     grant by the State educational agency under subclause 
     (I)(bb), the small local educational agency may appeal the 
     determination to the Secretary, who shall respond within 45 
     days of receiving the appeal.

       ``(iii) Definitions.--In this subparagraph--

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

       ``(3) Allocations to counties.--
       ``(A) In general.--For any fiscal year to which this 
     paragraph applies, the Secretary shall calculate grants under 
     this section on the basis of the number of children counted 
     under section 1124(c) for counties, and State educational 
     agencies shall allocate county amounts to local educational 
     agencies, in accordance with regulations promulgated by the 
     Secretary.
       ``(B) Application.--In any State in which a large number of 
     local educational agencies overlap county boundaries, or for 
     which the State believes the State has data that would better 
     target funds than allocating the funds by county, the State 
     educational agency may apply to the Secretary for authority 
     to make the allocations under this part for a particular 
     fiscal year directly to local educational agencies without 
     regard to counties.
       ``(C) Allocations to local educational agencies.--If the 
     Secretary approves its application under subparagraph (B), 
     the State educational agency shall provide the Secretary an 
     assurance that the allocations will be made--
       ``(i) using precisely the same factors for determining a 
     grant as are used under this section; or
       ``(ii) using data that the State educational agency submits 
     to the Secretary for approval that more accurately target 
     poverty.
       ``(D) Appeal.--The State educational agency shall provide 
     the Secretary an assurance that a procedure is or will be 
     established through which local educational agencies that are 
     dissatisfied with determinations under subparagraph (B) may 
     appeal directly to the Secretary for a final determination.
       ``(4) Puerto rico.--For each fiscal year, the Secretary 
     shall determine the percentage which the average per-pupil 
     expenditure in the Commonwealth of Puerto Rico is of the 
     lowest average per-pupil expenditure of any of the 50 States. 
     The grant which the Commonwealth of Puerto Rico shall be 
     eligible to receive under this section for a fiscal year 
     shall be the amount arrived at by multiplying the number of 
     children counted under subsection (c) for the Commonwealth of 
     Puerto Rico by the product of--
       ``(A) the percentage determined under the preceding 
     sentence; and
       ``(B) 32 percent of the average per-pupil expenditure in 
     the United States.
       ``(b) Minimum Number of Children To Qualify.--A local 
     educational agency is eligible for a basic grant under this 
     section for any fiscal year only if the number of children 
     counted under subsection (c) for that agency is--
       ``(1) 10 or more; and
       ``(2) more than 2 percent of the total school-age 
     population in the school district of the local educational 
     agency.
       ``(c) Children To Be Counted.--
       ``(1) Categories of children.--The number of children to be 
     counted for purposes of this section is the aggregate of--
       ``(A) the number of children aged 5 to 17, inclusive, in 
     the school district of the local educational agency from 
     families below the poverty level as determined under 
     paragraphs (2) and (3);
       ``(B) the number of children aged 5 to 17, inclusive, in 
     the school district of such agency from families above the 
     poverty level as determined under paragraph (4); and
       ``(C) the number of children determined under paragraph (4) 
     for the preceding year (as described in that paragraph, or 
     for the second preceding year, as the Secretary finds 
     appropriate) aged 5 to 17, inclusive, in the school district 
     of such agency in institutions for neglected and delinquent 
     children and youth (other than such institutions operated by 
     the United States), but not counted pursuant to chapter 1 of 
     subpart 1 of part D for the purposes of a grant to a State 
     agency, or being supported in foster homes with public funds.
       ``(2) Determination of number of children.--For the 
     purposes of this section, the Secretary shall determine the 
     number of children aged 5 to 17, inclusive, from families 
     below the poverty level on the basis of the most recent 
     satisfactory data, described in paragraph (3), available from 
     the Department of Commerce. The District of Columbia and the 
     Commonwealth of Puerto Rico shall be treated as individual 
     local educational agencies. If a local educational agency 
     contains 2 or more counties in their entirety, then each 
     county shall be treated as if such county were a separate 
     local educational agency for purposes of calculating grants 
     under this part. The total of grants for such counties shall 
     be allocated to such a local educational agency, which local 
     educational agency shall distribute to schools in each county 
     within such agency a share of the local educational agency's 
     total grant that is no less than the county's share of the 
     population counts used to calculate the local educational 
     agency's grant.
       ``(3) Population updates.--In fiscal year 2001 and every 2 
     years thereafter, the Secretary shall use updated data on the 
     number of children, aged 5 to 17, inclusive, from families 
     below the poverty level for counties or local educational 
     agencies, published by the Department of Commerce, unless the 
     Secretary and the Secretary of Commerce determine that use of 
     the updated population data would be inappropriate or 
     unreliable. If the Secretary and the Secretary of Commerce 
     determine that some or all of the data referred to in this 
     paragraph are inappropriate or unreliable, the Secretary and 
     the Secretary of Commerce shall publicly disclose their 
     reasons. In determining the families which are below the 
     poverty level, the Secretary shall utilize the criteria of 
     poverty used by the Bureau of the Census in compiling the 
     most recent decennial census, in such form as those criteria 
     have been updated by increases in the Consumer Price Index 
     for all urban consumers, published by the Bureau of Labor 
     Statistics.
       ``(4) Other children to be counted.--For purposes of this 
     section, the Secretary shall determine the number of children 
     aged 5 to 17, inclusive, from families above the poverty 
     level on the basis of the number of such children from 
     families receiving an annual income, in excess of the current 
     criteria of poverty, from payments under a State program 
     funded under part A of title IV of the Social Security Act. 
     In making such determinations the Secretary shall utilize the 
     criteria of poverty used by the Bureau of the Census in 
     compiling the most recent decennial census for a family of 4 
     in such form as those criteria have been updated by increases 
     in the Consumer Price Index for all urban consumers, 
     published by the Bureau of Labor Statistics. The Secretary 
     shall determine the number of such children and the number of 
     children aged 5 through 17 living in institutions for 
     neglected or delinquent children, or being supported in 
     foster homes with public funds, on the basis of the caseload 
     data for the month of October of the preceding fiscal year 
     (using, in the case of children described in the preceding 
     sentence, the criteria of poverty and the form of such

[[Page 6996]]

     criteria required by such sentence which were determined for 
     the calendar year preceding such month of October) or, to the 
     extent that such data are not available to the Secretary 
     before January of the calendar year in which the Secretary's 
     determination is made, then on the basis of the most recent 
     reliable data available to the Secretary at the time of such 
     determination. The Secretary of Health and Human Services 
     shall collect and transmit the information required by this 
     subparagraph to the Secretary not later than January 1 of 
     each year. For the purpose of this section, the Secretary 
     shall consider all children who are in correctional 
     institutions to be living in institutions for delinquent 
     children.
       ``(5) Estimate.--When requested by the Secretary, the 
     Secretary of Commerce shall make a special updated estimate 
     of the number of children of such ages who are from families 
     below the poverty level (as determined under paragraph (2)) 
     in each school district, and the Secretary is authorized to 
     pay (either in advance or by way of reimbursement) the 
     Secretary of Commerce the cost of making this special 
     estimate. The Secretary of Commerce shall give consideration 
     to any request of the chief executive of a State for the 
     collection of additional census information.
       ``(d) State Minimum.--Notwithstanding section 1122, the 
     aggregate amount allotted for all local educational agencies 
     within a State may not be less than the lesser of--
       ``(1) 0.25 percent of the total amount made available to 
     carry out this section for such fiscal year; or
       ``(2) the average of--
       ``(A) 0.25 percent of the total amount made available to 
     carry out this section for such fiscal year; and
       ``(B) the number of children in such State counted under 
     subsection (c) in the fiscal year multiplied by 150 percent 
     of the national average per-pupil payment made with funds 
     available under this section for that fiscal year.

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

       ``(a) Eligibility for and Amount of Grants.--
       ``(1) Eligibility.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, each local educational agency in a State that is 
     eligible for a grant under section 1124 for any fiscal year 
     is eligible for an additional grant under this section for 
     that fiscal year if the number of children counted under 
     section 1124(c) who are served by the agency exceeds--
       ``(i) 6,500; or
       ``(ii) 15 percent of the total number of children aged 5 
     through 17 served by the agency.
       ``(B) Minimum.--Notwithstanding section 1122, no State 
     shall receive under this section an amount that is less than 
     the lesser of--
       ``(i) 0.25 percent of the total amount made available to 
     carry out this section for such fiscal year; or
       ``(ii) the average of--

       ``(I) 0.25 percent of the sums available to carry out this 
     section for such fiscal year; and
       ``(II) the greater of--

       ``(aa) $340,000; or
       ``(bb) the number of children in such State counted for 
     purposes of this section in that fiscal year multiplied by 
     150 percent of the national average per-pupil payment made 
     with funds available under this section for that fiscal year.
       ``(2) Determination.--For each county or local educational 
     agency eligible to receive an additional grant under this 
     section for any fiscal year the Secretary shall determine the 
     product of--
       ``(A) the number of children counted under section 1124(c) 
     for that fiscal year; and
       ``(B) the amount in section 1124(a)(1)(B) for all States 
     except the Commonwealth of Puerto Rico, and the amount in 
     section 1124(a)(3) for the Commonwealth of Puerto Rico.
       ``(3) Amount.--The amount of the additional grant for which 
     an eligible local educational agency or county is eligible 
     under this section for any fiscal year shall be an amount 
     that bears the same ratio to the amount available to carry 
     out this section for that fiscal year as the product 
     determined under paragraph (2) for such local educational 
     agency for that fiscal year bears to the sum of such products 
     for all local educational agencies in the United States for 
     that fiscal year.
       ``(4) Local allocations.--
       ``(A) In general.--Grant amounts under this section shall 
     be calculated in the same manner as grant amounts are 
     calculated under section 1124(a) (2) and (3).
       ``(B) Special rule.--For any fiscal year for which the 
     Secretary allocates funds under this section on the basis of 
     counties, a State may reserve not more than 2 percent of the 
     amount made available to the State under this section for any 
     fiscal year to make grants to local educational agencies that 
     meet the criteria in paragraph (1)(A) (i) or (ii) but that 
     are in ineligible counties.
       ``(b) Ratable Reduction Rule.--If the sums available under 
     subsection (a) for any fiscal year for making payments under 
     this section are not sufficient to pay in full the total 
     amounts which all States are eligible to receive under 
     subsection (a) for such fiscal year, the maximum amounts that 
     all States are eligible to receive under subsection (a) for 
     such fiscal year shall be ratably reduced. In the case that 
     additional funds become available for making such payments 
     for any fiscal year during which the preceding sentence is 
     applicable, such reduced amounts shall be increased on the 
     same basis as they were reduced.
       ``(c) States Receiving 0.25 Percent or Less.--In States 
     that receive 0.25 percent or less of the total amount made 
     available to carry out this section for a fiscal year, the 
     State educational agency shall allocate such funds among the 
     local educational agencies in the State--
       ``(1) in accordance with paragraphs (2) and (4) of 
     subsection (a); or
       ``(2) based on their respective concentrations and numbers 
     of children counted under section 1124(c), except that only 
     those local educational agencies with concentrations or 
     numbers of children counted under section 1124(c) that exceed 
     the statewide average percentage of such children or the 
     statewide average number of such children shall receive any 
     funds on the basis of this paragraph.

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

       ``(a) Eligibility of Local Educational Agencies.--
       ``(1) In general.--A local educational agency in a State is 
     eligible to receive a targeted grant under this section for 
     any fiscal year if--
       ``(A) the number of children in the local educational 
     agency counted under section 1124(c), before application of 
     the weighted child count described in subsection (c), is at 
     least 10; and
       ``(B) if the number of children counted for grants under 
     section 1124(c), before application of the weighted child 
     count described in subsection (c), is at least 5 percent of 
     the total number of children aged 5 to 17 years, inclusive, 
     in the school district of the local educational agency.
       ``(2) Special rule.--For any fiscal year for which the 
     Secretary allocates funds under this section on the basis of 
     counties, funds made available as a result of applying this 
     subsection shall be reallocated by the State educational 
     agency to other eligible local educational agencies in the 
     State in proportion to the distribution of other funds under 
     this section.
       ``(b) Grants for Local Educational Agencies, the District 
     of Columbia, and the Commonwealth of Puerto Rico.--
       ``(1) In general.--The amount of the grant that a local 
     educational agency in a State (other than the Commonwealth of 
     Puerto Rico) is eligible to receive under this section for 
     any fiscal year shall be the product of--
       ``(A) the weighted child count determined under subsection 
     (c); and
       ``(B) the amount determined under section 1124(a)(1)(B).
       ``(2) Puerto rico.--For each fiscal year, the amount of the 
     grant the Commonwealth of Puerto Rico is eligible to receive 
     under this section shall be equal to the number of children 
     counted under subsection (c) for the Commonwealth of Puerto 
     Rico, multiplied by the amount determined in section 
     1124(a)(4) for the Commonwealth of Puerto Rico.
       ``(c) Weighted Child Count.--
       ``(1) Weights for allocations to counties.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses county population data to calculate grants, 
     the weighted child count used to determine a county's 
     allocation under this section is the larger of the 2 amounts 
     determined under subparagraphs (B) and (C).
       ``(B) By percentage of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) for that county who constitute not more than 15.00 
     percent, inclusive, of the county's total population aged 5 
     to 17, inclusive, multiplied by 1.0;
       ``(ii) the number of such children who constitute more than 
     15.00 percent, but not more than 19.00 percent, of such 
     population, multiplied by 1.75;
       ``(iii) the number of such children who constitute more 
     than 19.00 percent, but not more than 24.20 percent, of such 
     population, multiplied by 2.5;
       ``(iv) the number of such children who constitute more than 
     24.20 percent, but not more than 29.20 percent, of such 
     population, multiplied by 3.25; and
       ``(v) the number of such children who constitute more than 
     29.20 percent of such population, multiplied by 4.0.
       ``(C) By number of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) who constitute not more than 2,311, inclusive, of the 
     county's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(ii) the number of such children between 2,312 and 7,913, 
     inclusive, in such population, multiplied by 1.5;
       ``(iii) the number of such children between 7,914 and 
     23,917, inclusive, in such population, multiplied by 2.0;
       ``(iv) the number of such children between 23,918 and 
     93,810, inclusive, in such population, multiplied by 2.5; and

[[Page 6997]]

       ``(v) the number of such children in excess of 93,811 in 
     such population, multiplied by 3.0.
       ``(D) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighting factor for the Commonwealth of Puerto Rico under 
     this paragraph shall not be greater than the total number of 
     children counted under section 1124(c) multiplied by 1.72.
       ``(2) Weights for allocations to local educational 
     agencies.--
       ``(A) In general.--For each fiscal year for which the 
     Secretary uses local educational agency data, the weighted 
     child count used to determine a local educational agency's 
     grant under this section is the larger of the 2 amounts 
     determined under subparagraphs (B) and (C).
       ``(B) By percentage of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) for that local educational agency who constitute not 
     more than 15.233 percent, inclusive, of the agency's total 
     population aged 5 to 17, inclusive, multiplied by 1.0;
       ``(ii) the number of such children who constitute more than 
     15.233 percent, but not more than 22.706 percent, of such 
     population, multiplied by 1.75;
       ``(iii) the number of such children who constitute more 
     than 22.706 percent, but not more than 32.213 percent, of 
     such population, multiplied by 2.5;
       ``(iv) the number of such children who constitute more than 
     32.213 percent, but not more than 41.452 percent, of such 
     population, multiplied by 3.25; and
       ``(v) the number of such children who constitute more than 
     41.452 percent of such population, multiplied by 4.0.
       ``(C) By number of children.--The amount referred to in 
     subparagraph (A) is determined by adding--
       ``(i) the number of children determined under section 
     1124(c) who constitute not more than 710, inclusive, of the 
     agency's total population aged 5 to 17, inclusive, multiplied 
     by 1.0;
       ``(ii) the number of such children between 711 and 2,384, 
     inclusive, in such population, multiplied by 1.5;
       ``(iii) the number of such children between 2,385 and 
     9,645, inclusive, in such population, multiplied by 2.0;
       ``(iv) the number of such children between 9,646 and 
     54,600, inclusive, in such population, multiplied by 2.5; and
       ``(v) the number of such children in excess of 54,600 in 
     such population, multiplied by 3.0.
       ``(D) Puerto rico.--Notwithstanding subparagraph (A), the 
     weighting factor for the Commonwealth of Puerto Rico under 
     this paragraph shall not be greater than the total number of 
     children counted under section 1124(c) multiplied by 1.72.
       ``(d) Calculation of Grant Amounts.--Grant amounts under 
     this section shall be calculated in the same manner as grant 
     amounts are calculated under section 1124(a) (2) and (3).
       ``(e) State Minimum.--Notwithstanding any other provision 
     of this section or section 1122, from the total amount 
     available for any fiscal year to carry out this section, each 
     State shall be allotted not less than 0.5 percent of the 
     total amount made available to carry out this section for 
     such fiscal year.

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

       ``(a) Grants.--From funds appropriated under subsection (e) 
     the Secretary is authorized to make grants to States, from 
     allotments under subsection (b), to carry out the purposes of 
     this part.
       ``(b) Distribution Based Upon Fiscal Effort and Equity.--
       ``(1) In general.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     funds appropriated pursuant to subsection (e) shall be 
     allotted to each State based upon the number of children 
     counted under section 1124(c) in such State multiplied by the 
     product of--
       ``(i) such State's effort factor described in paragraph 
     (2); multiplied by
       ``(ii) 1.30 minus such State's equity factor described in 
     paragraph (3).
       ``(B) Minimum.--For each fiscal year no State shall receive 
     under this section less than 0.5 percent of the total amount 
     appropriated under subsection (e) for the fiscal year.
       ``(2) Effort factor.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the effort factor for a State shall be determined in 
     accordance with the succeeding sentence, except that such 
     factor shall not be less than 0.95 nor greater than 1.05. The 
     effort factor determined under this sentence shall be a 
     fraction the numerator of which is the product of the 3-year 
     average per-pupil expenditure in the State multiplied by the 
     3-year average per capita income in the United States and the 
     denominator of which is the product of the 3-year average per 
     capita income in such State multiplied by the 3-year average 
     per-pupil expenditure in the United States.
       ``(B) Commonwealth of puerto rico.--The effort factor for 
     the Commonwealth of Puerto Rico shall be equal to the lowest 
     effort factor calculated under subparagraph (A) for any 
     State.
       ``(3) Equity factor.--
       ``(A) Determination.--
       ``(i) In general.--Except as provided in subparagraph (B), 
     the Secretary shall determine the equity factor under this 
     section for each State in accordance with clause (ii).
       ``(ii) Computation.--

       ``(I) In general.--For each State, the Secretary shall 
     compute a weighted coefficient of variation for the per-pupil 
     expenditures of local educational agencies in accordance with 
     subclauses (II), (III), and (IV).
       ``(II) Variation.--In computing coefficients of variation, 
     the Secretary shall weigh the variation between per-pupil 
     expenditures in each local educational agency and the average 
     per-pupil expenditures in the State according to the number 
     of pupils served by the local educational agency.
       ``(III) Number of pupils.--In determining the number of 
     pupils under this paragraph served by each local educational 
     agency and in each State, the Secretary shall multiply the 
     number of children from low-income families by a factor of 
     1.4.
       ``(IV) Enrollment requirement.--In computing coefficients 
     of variation, the Secretary shall include only those local 
     educational agencies with an enrollment of more than 200 
     students.




       ``(B) Special rule.--The equity factor for a State that 
     meets the disparity standard described in section 222.162 of 
     title 34, Code of Federal Regulations (as such section was in 
     effect on the day preceding the date of enactment of the 
     Better Education for Students and Teachers Act) or a State 
     with only 1 local educational agency shall be not greater 
     than 0.10.
       ``(C) Revisions.--The Secretary may revise each State's 
     equity factor as necessary based on the advice of independent 
     education finance scholars to reflect other need-based costs 
     of local educational agencies in addition to low-income 
     student enrollment, such as differing geographic costs, costs 
     associated with students with disabilities, children with 
     limited English-proficiency or other meaningful educational 
     needs, which deserve additional support. In addition, after 
     obtaining the advice of independent education finance 
     scholars, the Secretary may revise each State's equity factor 
     to incorporate other valid and accepted methods to achieve 
     adequacy of educational opportunity that may not be reflected 
     in a coefficient of variation method.
       ``(c) Use of Funds.--All funds awarded to each State under 
     this section shall be allocated to local educational agencies 
     and schools on a basis consistent with the distribution of 
     other funds to such agencies and schools under sections 1124, 
     1124A, and 1125 to carry out activities under this part.
       ``(d) Maintenance of Effort.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State is entitled to receive its full allotment of funds 
     under this section for any fiscal year if the Secretary finds 
     that either the combined fiscal effort per student or the 
     aggregate expenditures within the State with respect to the 
     provision of free public education for the fiscal year 
     preceding the fiscal year for which the determination is made 
     was not less than 90 percent of such combined fiscal effort 
     or aggregate expenditures for the second fiscal year 
     preceding the fiscal year for which the determination is 
     made.
       ``(2) Reduction of funds.--The Secretary shall reduce the 
     amount of funds awarded to any State under this section in 
     any fiscal year in the exact proportion to which the State 
     fails to meet the requirements of paragraph (1) by falling 
     below 90 percent of both the fiscal effort per student and 
     aggregate expenditures (using the measure most favorable to 
     the State), and no such lesser amount shall be used for 
     computing the effort required under paragraph (1) for 
     subsequent years.
       ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
     only, the requirements of this subsection if the Secretary 
     determines that such a waiver would be equitable due to 
     exceptional or uncontrollable circumstances such as a natural 
     disaster or a precipitous and unforeseen decline in the 
     financial resources of the State.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $200,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years.

     ``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

       ``(a) Allocations for Neglected Children.--
       ``(1) In general.--If a State educational agency determines 
     that a local educational agency in the State is unable or 
     unwilling to provide for the special educational needs of 
     children who are living in institutions for neglected or 
     delinquent children as described in section 1124(c)(1)(C), 
     the State educational agency shall, if such agency assumes 
     responsibility for the special educational needs of such 
     children, receive the portion of such local educational 
     agency's allocation under sections 1124, 1124A, and 1125 that 
     is attributable to such children.
       ``(2) Special rule.--If the State educational agency does 
     not assume such responsibility, any other State or local 
     public agency that does assume such responsibility shall 
     receive that portion of the local educational agency's 
     allocation.

[[Page 6998]]

       ``(b) Allocations Among Local Educational Agencies.--The 
     State educational agency may allocate the amounts of grants 
     under sections 1124, 1124A, and 1125 among the affected local 
     educational agencies--
       ``(1) if 2 or more local educational agencies serve, in 
     whole or in part, the same geographical area;
       ``(2) if a local educational agency provides free public 
     education for children who reside in the school district of 
     another local educational agency; or
       ``(3) to reflect the merger, creation, or change of 
     boundaries of 1 or more local educational agencies.
       ``(c) Reallocation.--If a State educational agency 
     determines that the amount of a grant a local educational 
     agency would receive under sections 1124, 1124A, and 1125 is 
     more than such local educational agency will use, the State 
     educational agency shall make the excess amount available to 
     other local educational agencies in the State that need 
     additional funds in accordance with criteria established by 
     the State educational agency.

     ``SEC. 1127. CARRYOVER AND WAIVER.

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

               PART B--LITERACY FOR CHILDREN AND FAMILIES

     SEC. 121. READING FIRST.

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

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

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

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

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

                      ``Subpart 2--Reading First''

     ``SEC. 1221. PURPOSES.

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

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

       ``(a) In General.--In the case of each State that in 
     accordance with section 1224 submits to the Secretary an 
     application for a 5-year period, the Secretary, subject to 
     the application's approval, shall make a grant to the State 
     educational agency for the uses specified in subsections (c) 
     and (d). The grant shall consist of the allotment determined 
     for the State under subsection (b).
       ``(b) Determination of Amount of Allotment.--
       ``(1) In general.--From the total amount made available to 
     carry out this subpart for any fiscal year and not reserved 
     under section 1225, the Secretary shall allot 75 percent 
     under this section among each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico.
       ``(2) State allotments.--The Secretary shall allot the 
     amount made available under paragraph (1) for a fiscal year 
     among the States in proportion to the amount all local 
     educational agencies in a State would receive under section 
     1124.
       ``(3) Reallotment.--If any State does not apply for an 
     allotment under this section for any fiscal year, or if the 
     State's application is not approved, the Secretary shall 
     reallot such amount to the remaining States in accordance 
     with paragraph (2).
       ``(c) Subgrants to Local Educational Agencies.--
       ``(1) Distribution of subgrants.--The Secretary may make a 
     grant to a State under this section only if the State agrees 
     to expend at least 80 percent of the amount of the funds 
     provided under the grant for the purpose of making, in 
     accordance with this subsection, competitive subgrants to 
     eligible local educational agencies.
       ``(2) Notice.--A State receiving a grant under this section 
     shall provide notice to all eligible local educational 
     agencies in the State of the availability of competitive 
     subgrants under this subsection and of the requirements for 
     applying for the subgrants.
       ``(3) Local application.--To be eligible to receive a 
     subgrant under this subsection, an eligible local educational 
     agency shall submit an application to the State at such time, 
     in such manner, and containing such information as the State 
     may reasonably require.
       ``(4) Definition of eligible local educational agency.--In 
     this subpart the term `eligible local educational agency' 
     means a local educational agency that--
       ``(A) has a high percentage of students in grades 
     kindergarten through 3 reading below grade level; and
       ``(B) has--
       ``(i) jurisdiction over a geographic area that includes an 
     area designated as an empowerment zone, or an enterprise 
     community, under part I of subchapter U of chapter 1 of the 
     Internal Revenue Code of 1986;
       ``(ii) jurisdiction over at least 1 school that is 
     identified for school improvement under section 1116(c); or
       ``(iii) a high percentage of children who are counted under 
     section 1124(c), in comparison to other local educational 
     agencies in the State.
       ``(5) State requirement.--In distributing subgrant funds to 
     local educational agencies, a State shall provide the funds 
     in sufficient amounts to enable local educational agencies to 
     improve reading, as measured by scores on rigorous diagnostic 
     reading assessments.
       ``(6) Local priority.--In distributing subgrant funds under 
     this subsection a local educational agency shall give 
     priority to providing the funds to schools that--
       ``(A) have a high percentage of students in grades 
     kindergarten through 3 reading below grade level;
       ``(B) are identified for school improvement under section 
     1116(c); or
       ``(C) have a high percentage of children counted under 
     section 1124(c).
       ``(7) Local uses of funds.--Subject to paragraph (8), a 
     local educational agency that receives a subgrant under this 
     subsection shall use the funds provided under the subgrant to 
     carry out the following activities:
       ``(A) Selecting or developing, and administering, a 
     rigorous diagnostic reading assessment.
       ``(B) Selecting or developing, and implementing, a program 
     or programs of reading instruction grounded on scientifically 
     based reading research that--
       ``(i) includes the major components of reading instruction; 
     and
       ``(ii) provides such instruction to all children, including 
     children who--

       ``(I) may have reading difficulties;
       ``(II) are at risk of being referred to special education 
     based on these difficulties;
       ``(III) have been evaluated under section 614 of the 
     Individuals with Disabilities Education Act but, in 
     accordance with section 614(b)(5) of such Act, and have not 
     been identified as being a child with a disability (as 
     defined in section 602 of such Act);
       ``(IV) are being served under such Act primarily due to 
     being identified as being a child with a specific learning 
     disability (as defined in section 602 of such Act) related to 
     reading; or
       ``(V) are identified as having limited English proficiency 
     (as defined in section 3501).

       ``(C) Procuring and implementing instructional materials 
     grounded on scientifically based reading research.
       ``(D) Providing professional development for teachers of 
     grades kindergarten through 3 that--
       ``(i) will prepare these teachers in all of the major 
     components of reading instruction;
       ``(ii) shall include--

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

[[Page 6999]]

       ``(iii) may be provided by eligible professional 
     development providers or otherwise.
       ``(E) Promoting reading and library programs that provide 
     access to engaging reading material.
       ``(F) Providing training to individuals who volunteer to be 
     reading tutors for students to enable the volunteers to 
     support instructional practices that are based on scientific 
     reading research and being used by the student's teacher.
       ``(G) Assisting parents, through the use of materials, 
     programs, strategies and approaches, that are based on 
     scientific reading research, to help support their children's 
     reading development.
       ``(H) Collecting and summarizing data from rigorous 
     diagnostic reading assessments--
       ``(i) to document the effectiveness of this subpart in 
     individual schools and in the local educational agency as a 
     whole; and
       ``(ii) to stimulate and accelerate improvement by 
     identifying the schools that produce the significant gains in 
     reading achievement.
       ``(I) Reporting data in the same manner as data is reported 
     under section 1116(c).
       ``(9) Local planning and administration.--A local 
     educational agency that receives a subgrant under this 
     subsection may use not more than 5 percent of the funds 
     provided under the subgrant for planning and administration.
       ``(d) Other State Uses of Funds.--
       ``(1) In general.--A State that receives a grant under this 
     section may expend not more than a total of 20 percent of the 
     grant funds to carry out the activities described in 
     paragraphs (3), (4), and (5).
       ``(2) Priority.--A State shall give priority to carrying 
     out the activities described in paragraphs (3), (4), and (5) 
     for schools described in subsection (c)(6).
       ``(3) Professional development.--A State that receives a 
     grant under this section may expend not more than 15 percent 
     of the amount of the funds provided under the grant to 
     develop and implement a program of professional development 
     for teachers of grades kindergarten through 3 that--
       ``(A) will prepare these teachers in all of the major 
     components of reading instruction;
       ``(B) shall include--
       ``(i) information on instructional materials, programs, 
     strategies, and approaches grounded on scientifically based 
     reading research, including early intervention and reading 
     remediation materials, programs, and approaches; and
       ``(ii) instruction in the use of rigorous diagnostic 
     reading assessments and other procedures that effectively 
     identify students who may be at risk for reading failure or 
     who are having difficulty reading; and
       ``(C) may be provided by eligible professional development 
     providers or otherwise.
       ``(4) Technical assistance for local educational agencies 
     and schools.--A State that receives a grant under this 
     section may expend not more than 5 percent of the amount of 
     the funds provided under the grant for one or more of the 
     following authorized State activities:
       ``(A) Assisting local educational agencies in accomplishing 
     the tasks required to design and implement a program under 
     this subpart, including--
       ``(i) selecting and implementing a program or programs of 
     reading instruction grounded on scientifically based reading 
     research;
       ``(ii) selecting or developing rigorous diagnostic reading 
     assessments; and
       ``(iii) identifying eligible professional development 
     providers to help prepare reading teachers to teach students 
     using the programs and assessments described in subparagraphs 
     (A) and (B).
       ``(B) Providing expanded opportunities to students in 
     grades kindergarten through 3 within eligible local 
     educational agencies for receiving reading assistance from 
     alternative providers that includes--
       ``(i) a rigorous diagnostic reading assessment; and
       ``(ii) instruction in the major components of reading that 
     is based on scientific reading research.
       ``(3) Planning, administration, and reporting.--
       ``(A) In general.--A State that receives a grant under this 
     section shall expend not more than 5 percent of the amount of 
     the funds provided under the grant for the activities 
     described in this paragraph.
       ``(B) Planning and administration.--A State that receives a 
     grant under this section may expend funds made available 
     under subparagraph (A) for planning and administration 
     relating to the State uses of funds authorized under this 
     subpart, including the following:
       ``(i) Administering the distribution of competitive 
     subgrants to local educational agencies under sections 1222 
     and 1223.
       ``(ii) Collecting and summarizing data from rigorous 
     diagnostic reading assessments--

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

       ``(C) Annual reporting.--
       ``(i) In general.--A State that receives a grant under this 
     section shall expend funds provided under the grant to 
     provide the Secretary annually with a report on the 
     implementation of this subpart. The report shall include 
     evidence that the State is fulfilling its obligations under 
     this subpart. The report shall also include the data required 
     under subsection (c)(7)(H) to be reported to the State by 
     local educational agencies. The report shall include a 
     specific identification of those local educational agencies 
     that report significant gains in reading achievement overall 
     and such gains based on disaggregated data, reported in the 
     same manner as data is reported under section 1116(c).
       ``(ii) Privacy protection.--Data in the report shall be 
     reported in a manner that protects the privacy of 
     individuals.
       ``(iii) Contract.--To the extent practicable, a State shall 
     enter into a contract with an entity that conducts 
     scientifically based reading research, under which contract 
     the entity will assist the State in producing the reports 
     required to be submitted under this subparagraph.

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

       ``(a) In General.--In the case of a State that in 
     accordance with section 1224 submits to the Secretary an 
     application, the Secretary may award a grant, on a 
     competitive basis, to the State for the use specified in 
     subsection (c). The grant shall consist of the allotment 
     determined for the State under subsection (b).
       ``(b) Determination of Amount of Allotment.--
       ``(1) In general.--From the total amount made available to 
     carry out this subpart for any fiscal year referred to in 
     subsection (a) that is neither used under section 1222 nor 
     reserved under section 1225, the Secretary may allot such 
     remaining amount under this section among each of the 50 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.
       ``(2) State allotments.--
       ``(A) In general.--In carrying out paragraph (1), the 
     Secretary shall allot such funds to those States that 
     demonstrate the most effective implementation of this 
     subpart, as determined by the peer review panel convened 
     under section 1224 based upon the application contents 
     described in subparagraph (B).
       ``(B) Application contents.--A State that desires to 
     receive a grant under this section shall include in its 
     application the following:
       ``(i) Evidence that the State has carried out its 
     obligations under this subpart.
       ``(ii) Evidence that the State has increased significantly 
     the percentage of students reading at grade level or above by 
     the end of the third grade.
       ``(iii) Evidence that the State has been successful in 
     reducing the reading deficit in terms of the percentage of 
     students in ethnic, racial, and low-income populations who 
     are reading at grade level or above by the end of the third 
     grade.
       ``(iv) The amount of funds being requested by the State and 
     a description of the criteria the State intends to use in 
     distributing subgrants to local educational agencies under 
     this section to continue or expand activities under this 
     subpart.
       ``(v) Any additional evidence that demonstrates success in 
     the implementation of this subpart.
       ``(c) Subgrants to Local Educational Agencies.--
       ``(1) In general.--The Secretary may make a grant to a 
     State under this section only if the State agrees to expend 
     100 percent of the amount of the funds provided under the 
     grant for the purpose of making competitive subgrants in 
     accordance with this subsection to local educational 
     agencies.
       ``(2) Notice.--A State receiving a grant under this section 
     shall provide notice to all eligible local educational 
     agencies in the State of the availability of competitive 
     subgrants under this subsection and of the requirements for 
     applying for the subgrants.
       ``(3) Application.--To apply for a subgrant under this 
     subsection, an eligible local educational agency shall submit 
     an application to the State at such time, in such manner, and 
     containing such information as the State may reasonably 
     require.
       ``(4) Distribution.--A State shall distribute funds under 
     this section, on a competitive basis, based on the following 
     criteria:
       ``(A) Evidence that a local educational agency has carried 
     out its obligations under this subpart.
       ``(B) Evidence that a local educational agency has 
     increased significantly the percentage of students reading at 
     grade level or above by the end of the third grade.
       ``(C) Evidence that a local educational agency has been 
     successful in reducing the reading deficit in terms of the 
     percentage of students in ethnic, racial, and low-income 
     populations who are reading at grade level or above by the 
     end of the third grade.
       ``(D) The amount of funds being requested by a local 
     educational agency in its application under paragraph (3) and 
     the description in such application of how such funds will be 
     used to support the continuation or expansion of the agency's 
     programs under this subpart.
       ``(E) Evidence that the local educational agency will work 
     with other eligible local

[[Page 7000]]

     educational agencies in the State who have not received a 
     subgrant under this subsection to assist such nonreceiving 
     agencies in increasing the reading achievement of students.
       ``(F) Any additional evidence in a local educational 
     agency's application under paragraph (3) that demonstrates 
     success in the implementation of this subpart.
       ``(5) Local uses of funds.--A local educational agency that 
     receives a subgrant under this subsection shall use the funds 
     provided under the subgrant to carry out the activities 
     described in subparagraphs (A) through (G) of section 
     1222(c)(7).

     ``SEC. 1224. STATE APPLICATIONS.

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

     ``SEC. 1225. RESERVATIONS FROM APPROPRIATIONS.

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

     ``SEC. 1226. NATIONAL ACTIVITIES.

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

     ``SEC. 1227. INFORMATION DISSEMINATION.

       ``(a) In General.--From funds reserved under section 
     1225(2), the National Institute for Literacy, in 
     collaboration with the Departments of Education and Health 
     and Human Services, including the National Institute for 
     Child Health and Human Development, shall--
       ``(1) disseminate information on scientifically based 
     reading research pertaining to children, youth, and adults;
       ``(2) identify and disseminate information about schools, 
     local educational agencies, and States that effectively 
     developed and implemented reading programs that meet the 
     requirements of this subpart, including those effective 
     States, local educational agencies, and schools identified 
     through the evaluation and peer review provisions of this 
     subpart; and

[[Page 7001]]

       ``(3) support the continued identification of 
     scientifically based reading research that can lead to 
     improved reading outcomes for children, youth, and adults 
     through evidenced-based assessments of the scientific 
     research literature.
       ``(b) Dissemination and Coordination.--At a minimum, the 
     National Institute for Literacy shall disseminate such 
     information to recipients of Federal financial assistance 
     under titles I and III, the Head Start Act, the Individuals 
     With Disabilities Education Act, and the Adult Education and 
     Family Literacy Act. In carrying out this section, the 
     National Institute for Literacy shall, to the extent 
     practicable, utilize existing information and dissemination 
     networks developed and maintained through other public and 
     private entities.
       ``(c) Use of Funds.--The National Institute for Literacy 
     may use not more than 5 percent of the funds made available 
     under section 1225(2) for administrative purposes directly 
     related to carrying out of activities authorized by this 
     section.

     ``SEC. 1228. DEFINITIONS.

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

     SEC. 122. EARLY READING INITIATIVE.

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

                    ``Subpart 3--Early Reading First

     ``SEC. 1241. PURPOSES.

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

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

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

     ``SEC. 1243. FEDERAL ADMINISTRATION.

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

     ``SEC. 1244. INFORMATION DISSEMINATION.

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

     ``SEC. 1245. REPORTING REQUIREMENTS.

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

     ``SEC. 1246. EVALUATIONS.

       ``From the total amount appropriated under section 
     1002(b)(3) for the period beginning October 1, 2002 and 
     ending September

[[Page 7002]]

     30, 2008, the Secretary shall reserve not more than 
     $5,000,000 to conduct an independent evaluation of the 
     effectiveness of this subpart.

     ``SEC. 1247. ADDITIONAL RESEARCH.

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

                PART C--EDUCATION OF MIGRATORY CHILDREN

     SEC. 131. PROGRAM PURPOSE.

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

     SEC. 132. STATE APPLICATION.

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

     SEC. 133. COMPREHENSIVE PLAN.

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

     SEC. 134. COORDINATION.

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

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

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

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

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

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

     ``SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.

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

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

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

                   ``Chapter 1--State Agency Programs

     ``SEC. 1411. ELIGIBILITY.

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

     ``SEC. 1412. ALLOCATION OF FUNDS.

       ``(a) Subgrants to State Agencies.--
       ``(1) In general.--Each State agency described in section 
     1411 (other than an agency in the Commonwealth of Puerto 
     Rico) is eligible to receive a subgrant under this chapter, 
     for each fiscal year, an amount equal to the product of--
       ``(A) the number of neglected or delinquent children and 
     youth described in section 1411 who--

[[Page 7003]]

       ``(i) are enrolled for at least 15 hours per week in 
     education programs in adult correctional institutions; and
       ``(ii) are enrolled for at least 20 hours per week--

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

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

     ``SEC. 1413. STATE REALLOCATION OF FUNDS.

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

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

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

     ``SEC. 1415. USE OF FUNDS.

       ``(a) Uses.--
       ``(1) In general.--A State agency shall use funds received 
     under this chapter only for programs and projects that--
       ``(A) are consistent with the State plan under section 
     1414(a); and
       ``(B) concentrate on providing participants with the 
     knowledge and skills needed to make a successful transition 
     to secondary school completion, further education, or 
     employment.
       ``(2) Programs and projects.--Such programs and projects--
       ``(A) may include the acquisition of equipment;
       ``(B) shall be designed to support educational services 
     that--
       ``(i) except for institution-wide projects under section 
     1416, are provided to children and youth identified by the 
     State agency as failing, or most at risk of failing, to meet 
     the State's challenging State content standards and 
     challenging State student performance standards;
       ``(ii) supplement and improve the quality of the 
     educational services provided to such children and youth by 
     the State agency; and
       ``(iii) afford such children and youth an opportunity to 
     learn to such challenging State standards;
       ``(C) shall be carried out in a manner consistent with 
     section 1120A and part H of title I; and

[[Page 7004]]

       ``(D) may include the costs of evaluation activities.
       ``(b) Supplement, Not Supplant.--A program under this 
     chapter that supplements the number of hours of instruction 
     students receive from State and local sources shall be 
     considered to comply with the supplement, not supplant 
     requirement of section 1120A without regard to the subject 
     areas in which instruction is given during those hours.

     ``SEC. 1416. INSTITUTION-WIDE PROJECTS.

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

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

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

     ``SEC. 1418. TRANSITION SERVICES.

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

                   ``Chapter 2--Local Agency Programs

     ``SEC. 1421. PURPOSE.

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

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

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

     ``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

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

     ``SEC. 1424. USES OF FUNDS.

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

[[Page 7005]]



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

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

     ``SEC. 1426. ACCOUNTABILITY.

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

                    ``Chapter 3--General Provisions

     ``SEC. 1431. PROGRAM EVALUATIONS.

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

     ``SEC. 1432. DEFINITIONS.

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

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

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

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

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

     ``SEC. 1601. SHORT TITLE.

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

     ``SEC. 1602. PURPOSE.

       ``The purpose of this part is to provide opportunities to 
     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 performance 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, 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 enrolled in community 
     learning centers opportunities for lifelong learning and 
     literacy development.

     ``SEC. 1603. DEFINITIONS.

       ``In this part:
       ``(1) Community learning center.--The term `community 
     learning center' is an entity that--
       ``(A)(i) assists students to meet State content and student 
     performance standards in core academic subjects, such as 
     reading and mathematics, by primarily providing to the 
     students, during non-school hours or periods when school is 
     not in session, tutorial and other academic enrichment 
     services in addition to other activities (such as youth 
     development activities, drug and violence prevention 
     programs, art, music, and recreation programs, technology 
     education programs, and character education programs) that 
     reinforce and complement the regular academic program of the 
     students; and
       ``(ii) offers families of students enrolled in such center 
     opportunities for lifelong learning and literacy development; 
     and
       ``(B) is operated by 1 or more local educational agencies, 
     community-based organizations, units of general purpose local 
     government, or other public or private entities.
       ``(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 in effect on the day before the date of enactment of the 
     Better Education for Students and Teachers Act); and
       ``(B) the grant period had not ended on that date of 
     enactment.
       ``(3) Eligible organization.--The term `eligible 
     organization' means--
       ``(A) a local educational agency, a community-based 
     organization, a unit of general purpose local government, or 
     another public or private entity; or
       ``(B) a consortium of entities described in subparagraph 
     (A).
       ``(4) State.--The term `State' means the State educational 
     agency of a State (as defined in section 3).
       ``(5) Unit of general purpose local government.--The term 
     `unit of general purpose local government' means any city, 
     town, township, parish, village, or other general purpose 
     political subdivision.

     ``SEC. 1604. PROGRAM AUTHORIZED.

       ``The Secretary is authorized to award grants to States to 
     make awards to eligible organizations to plan, implement, or 
     expand community learning centers that serve--
       ``(1) students who primarily attend--
       ``(A) schools eligible for schoolwide programs under 
     section 1114; or
       ``(B) schools that serve a high percentage of students from 
     low-income families; and
       ``(2) the families of students described in paragraph (1).

[[Page 7006]]



     ``SEC. 1605. ALLOTMENTS TO STATES.

       ``(a) Reservation.--From the funds appropriated under 
     section 1002(g) for any fiscal year, the Secretary shall 
     reserve--
       ``(1) such amount as may be necessary to make continuation 
     awards for covered programs to grant recipients under part I 
     of title X (under the terms of those grants), as in effect on 
     the day before the effective date of the Better Education for 
     Students and Teachers Act;
       ``(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 
     organizations 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 
     areas and the Bureau to carry out the objectives of this 
     part.
       ``(b) State Allotments.--
       ``(1) Determination.--
       ``(A) Basis.--From the funds appropriated under section 
     1002(g) 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 for the preceding 
     fiscal year bears to the amount all States received under 
     that subpart for the preceding fiscal year, except as 
     provided in subparagraph (B).
       ``(B) Exception.--No State receiving an allotment under 
     subparagraph (A) may receive less than \1/2\ of 1 percent of 
     the total amount allotted under subparagraph (A) for a fiscal 
     year.
       ``(2) Definition.--In this subsection, the term `State' 
     means each of the 50 States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.

     ``SEC. 1606. STATE PLANS.

       ``Each State seeking a grant under this part shall submit 
     to the Secretary a plan, which may be submitted as part of a 
     State's consolidated plan under section 5502, at such time, 
     in such manner, and containing such information as the 
     Secretary may reasonably require. At a minimum, the plan 
     shall--
       ``(1) describe how the State will use funds received under 
     this part, including funds reserved for State-level 
     activities;
       ``(2) contain an assurance that the State will make awards 
     under this part for eligible organizations only to eligible 
     organizations 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);
       ``(3) describe the procedures and criteria the State will 
     use for reviewing applications and awarding funds to eligible 
     organizations 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;
       ``(4) describe how the State 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);
       ``(5) contain an assurance that the State--
       ``(A) will not make awards for programs that exceed 4 
     years;
       ``(B) will ensure an equitable distribution of awards among 
     urban and rural areas of the State; and
       ``(C) will require each eligible organization 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;
       ``(6) describe the State's performance measures for 
     programs carried out under this part, including measures 
     relating to increased academic performance and achievement, 
     and how the State will evaluate the effectiveness of those 
     programs;
       ``(7) contain 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
       ``(8) contain an assurance that the State will require 
     eligible organizations to describe in their applications 
     under section 1609 how the transportation needs of 
     participating students will be addressed.

     ``SEC. 1607. STATE-LEVEL ACTIVITIES.

       ``(a) In General.--A State that receives an allotment under 
     section 1605 for a fiscal year shall use not more than 6 
     percent of the funds made available through the allotment for 
     State-level activities described in paragraphs (1) and (2) of 
     subsection (b).
       ``(b) Activities.--
       ``(1) Planning, peer review, and supervision.--The State 
     may use not more than 3 percent of the funds made available 
     through the allotment to pay for the costs of--
       ``(A) establishing and implementing a peer review process 
     for applications described in section 1609 (including 
     consultation with the Governor and other State agencies 
     responsible for administering youth development programs and 
     adult learning activities);
       ``(B) supervising the awarding of funds to eligible 
     organizations (in consultation with the Governor and other 
     State agencies responsible for administering youth 
     development programs and adult learning activities);
       ``(C) planning and supervising the use of funds made 
     available under this part, and processing the funds; and
       ``(D) monitoring activities.
       ``(2) Evaluation, training, and technical assistance.--The 
     State may use not more than 3 percent of the funds made 
     available through the allotment to pay for the costs of--
       ``(A) comprehensive evaluation (directly, or through a 
     grant or contract) of the effectiveness of programs and 
     activities provided under this part; and
       ``(B) providing training and technical assistance to 
     eligible organizations who are applicants or recipients of 
     awards under this part.

     ``SEC. 1608. AWARDS TO ELIGIBLE ORGANIZATIONS.

       ``(a) Awards.--A State that receives an allotment under 
     section 1605 for a fiscal year shall use not less than 94 
     percent of the funds made available through the allotment to 
     make awards on a competitive basis to eligible organizations.
       ``(b) Amounts.--The State shall make the awards in amounts 
     of not less than $50,000.

     ``SEC. 1609. LOCAL APPLICATION.

       ``(a) Application.--To be eligible to receive an award 
     under this part, an eligible organization 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--
       ``(1) 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
       ``(2) a description of the proposed community learning 
     center, including--
       ``(A) a description of how the eligible organization will 
     ensure that the program proposed to be carried out at the 
     center will reinforce and complement the instructional 
     programs of the schools that students served by the program 
     attend;
       ``(B) 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;
       ``(C) an assurance that the proposed program was developed, 
     and will be carried out, in active collaboration with the 
     schools the students attend;
       ``(D) evidence that the eligible organization has 
     experience, or demonstrates promise of success, in providing 
     educational and related activities that will complement and 
     enhance the students' academic performance and achievement 
     and positive youth development;
       ``(E) an assurance that the program will take place in a 
     safe and easily accessible school or other facility;
       ``(F) a description of how students participating in the 
     program carried out by the center will travel safely to and 
     from the center and home;
       ``(G) a description of how the eligible organization will 
     disseminate information about the program to the community in 
     a manner that is understandable and accessible; and
       ``(H) a description of a preliminary plan for how the 
     center will continue after funding under this part ends.
       ``(b) Priority.--In making awards under this part, the 
     State shall give equal priority to applications--
       ``(1) submitted jointly by schools receiving funding under 
     part A and community-based organizations or other eligible 
     organizations;
       ``(2) submitted by such schools or consortia of such 
     schools; and
       ``(3) submitted by community-based organizations or other 
     eligible organizations serving communities in which such 
     schools are located.
       ``(c) Approval of Certain Applications.--The State 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--
       ``(1) will be accessible to the students proposed in the 
     application to be served; and
       ``(2) will be as effective as the program would be if the 
     program were located in such a school.

                 ``PART G--COMPREHENSIVE SCHOOL REFORM

     ``SEC. 1701. PURPOSE.

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

[[Page 7007]]



     ``SEC. 1702. PROGRAM AUTHORIZATION.

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

     ``SEC. 1703. STATE APPLICATIONS.

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

     ``SEC. 1704. STATE USE OF FUNDS.

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

     ``SEC. 1705. LOCAL APPLICATIONS.

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

     ``SEC. 1706. LOCAL USE OF FUNDS.

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

     ``SEC. 1707. NATIONAL EVALUATION AND REPORTS.

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

[[Page 7008]]

     and Pensions, and the Committee on Appropriations of the 
     Senate.

                  ``PART H--SCHOOL DROPOUT PREVENTION

     ``SEC. 1801. SHORT TITLE.

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

     ``SEC. 1802. PURPOSE.

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

               ``Subpart 1--Coordinated National Strategy

     ``SEC. 1811. NATIONAL ACTIVITIES.

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

       ``Subpart 2--National School Dropout Prevention Initiative

     ``SEC. 1821. PROGRAM AUTHORIZED.

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

     ``SEC. 1822. STRATEGIES AND CAPACITY BUILDING.

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

     ``SEC. 1823. SELECTION OF SCHOOLS.

       ``(a) School Application.--
       ``(1) In general.--Each school desiring a grant under this 
     subpart shall submit an application to the State educational 
     agency at such time, in such manner, and accompanied

[[Page 7009]]

     by such information as the State educational agency may 
     require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall--
       ``(A) contain a certification from the local educational 
     agency serving the school that--
       ``(i) the school has the highest number or rates of school 
     dropouts in the age group served by the local educational 
     agency;
       ``(ii) the local educational agency is committed to 
     providing ongoing operational support, for the school's 
     comprehensive reform plan to address the problem of school 
     dropouts, for a period of 5 years; and
       ``(iii) the local educational agency will support the plan, 
     including--

       ``(I) release time for teacher training;
       ``(II) efforts to coordinate activities for feeder schools; 
     and
       ``(III) encouraging other schools served by the local 
     educational agency to participate in the plan;

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

     ``SEC. 1824. DISSEMINATION ACTIVITIES.

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

     ``SEC. 1825. PROGRESS INCENTIVES.

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

     ``SEC. 1826. SCHOOL DROPOUT RATE CALCULATION.

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

     ``SEC. 1827. REPORTING AND ACCOUNTABILITY.

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

     ``SEC. 1828. STATE RESPONSIBILITIES.

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

       ``Subpart 3--Definitions; Authorization of Appropriations

     ``SEC. 1831. DEFINITIONS.

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

           PART F--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

     SEC. 161. STATEMENT OF POLICY.

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

     SEC. 162. GRANTS FOR STATE AND LOCAL ACTIVITIES.

       Section 722 of such Act (42 U.S.C. 11432) is amended--
       (1) in subsection (c)--
       (A) in paragraph (2)(A)--
       (i) by inserting ``and'' after ``Samoa,''; and
       (ii) by striking ``, and Palau'' and all that follows 
     through ``Palau)''; and
       (B) in paragraph (3)--
       (i) by inserting ``or'' after ``Samoa,''; and
       (ii) by striking ``, or Palau'';
       (2) in subsection (e), by adding at the end the following:
       ``(3) Prohibition on segregating homeless students.--In 
     providing a free public education to a homeless child or 
     youth, no State receiving funds under this subtitle shall 
     segregate such child or youth, either in a separate school, 
     or in a separate program within a school, based on such child 
     or youth's status as homeless, except as provided in section 
     723(a)(2)(B)(ii).'';
       (3) by amending subsection (f) to read as follows:
       ``(f) Functions of the Office of Coordinator.--The 
     Coordinator of Education of Homeless Children and Youth 
     established in each State shall--
       ``(1) gather reliable, valid, and comprehensive information 
     on the nature and extent of the problems homeless children 
     and youth have in gaining access to public preschool programs 
     and to public elementary schools and secondary schools, the 
     difficulties in identifying the special needs of such 
     children and youth, any progress made by the State 
     educational agency and local educational agencies in the 
     State in addressing such problems and difficulties, and the 
     success of

[[Page 7010]]

     the program under this subtitle in allowing homeless children 
     and youth to enroll in, attend, and succeed in, school;
       ``(2) develop and carry out the State plan described in 
     subsection (g);
       ``(3) collect and transmit to the Secretary, at such time 
     and in such manner as the Secretary may require, such 
     information as the Secretary deems necessary to assess the 
     educational needs of homeless children and youth within the 
     State;
       ``(4) facilitate coordination between the State educational 
     agency, the State social services agency, and other agencies 
     providing services to homeless children and youth, including 
     homeless children and youth who are preschool age, and 
     families of such children and youth;
       ``(5) in order to improve the provision of comprehensive 
     education and related services to homeless children and youth 
     and their families, coordinate and collaborate with--
       ``(A) educators, including child development and preschool 
     program personnel;
       ``(B) providers of services to homeless and runaway 
     children and youth and homeless families (including domestic 
     violence agencies, shelter operators, transitional housing 
     facilities, runaway and homeless youth centers, and 
     transitional living programs for homeless youth);
       ``(C) local educational agency liaisons for homeless 
     children and youth; and
       ``(D) community organizations and groups representing 
     homeless children and youth and their families; and
       ``(6) provide technical assistance to local educational 
     agencies in coordination with local liaisons established 
     under this subtitle, to ensure that local educational 
     agencies comply with the requirements of section 
     722(e)(3).''; and
       (4) in subsection (g)--
       (A) in paragraph (1)--
       (i) in subparagraph (E)--

       (I) by striking ``the report'' and inserting ``the 
     information''; and
       (II) by striking ``(f)(4)'' and inserting ``(f)(3)''; and

       (ii) by amending subparagraph (H) to read as follows:
       ``(H) contain assurances that--
       ``(i) the State educational agency and local educational 
     agencies in the State will adopt policies and practices to 
     ensure that homeless children and youth are not segregated on 
     the basis of their status as homeless or stigmatized; and
       ``(ii) local educational agencies serving school districts 
     in which homeless children and youth reside or attend school 
     will--

       ``(I) post public notice of the educational rights of such 
     children and youth where such children and youth receive 
     services under this Act (such as family shelters and soup 
     kitchens); and
       ``(II) designate an appropriate staff person, who may also 
     be a coordinator for other Federal programs, as a liaison for 
     homeless children and youth.'';

       (B) by amending paragraph (3) to read as follows:
       ``(3) Local educational agency requirements.--
       ``(A) In general.--Each local educational agency serving a 
     homeless child or youth assisted under this subtitle shall, 
     according to the child's or youth's best interest--
       ``(i) continue the child's or youth's education in the 
     school of origin--

       ``(I) for the duration of their homelessness;
       ``(II) if the child becomes permanently housed, for the 
     remainder of the academic year; or
       ``(III) in any case in which a family becomes homeless 
     between academic years, for the following academic year; or

       ``(ii) enroll the child or youth in any school that 
     nonhomeless students who live in the attendance area in which 
     the child or youth is actually living are eligible to attend.
       ``(B) Best interest.--In determining the best interest of 
     the child or youth under subparagraph (A), the local 
     educational agency shall--
       ``(i) to the extent feasible, keep a homeless child or 
     youth in the school of origin, except when doing so is 
     contrary to the wishes of the child's or youth's parent or 
     guardian, or in the case of an unaccompanied youth, doing so 
     is contrary to the youth's wish; and
       ``(ii) provide a written explanation to the homeless 
     child's or youth's parent or guardian when the local 
     educational agency sends such child or youth to a school 
     other than the school of origin or a school requested by the 
     parent or guardian.
       ``(C) Enrollment.--
       ``(i) Documentation.--The school selected in accordance 
     with this paragraph shall immediately enroll the homeless 
     child or youth even if the child or youth is unable to 
     produce records normally required for enrollment, such as 
     previous academic records, medical records, proof of 
     residency, or other documentation.
       ``(ii) Special rule.--The enrolling school immediately 
     shall contact the school last attended by the child or youth 
     to obtain relevant academic and other records. If the child 
     or youth needs to obtain immunizations, the enrolling school 
     shall promptly refer the child or youth to the appropriate 
     authorities for such immunizations.
       ``(iii) Disputes.--If a dispute arises over school 
     selection or enrollment in a school, the child or youth shall 
     be admitted immediately to the school in which the parent or 
     guardian (or in the case of an unaccompanied youth, the 
     youth) seeks enrollment pending resolution of the dispute.
       ``(D) Definition of school of origin.--For purposes of this 
     paragraph, the term `school of origin' means the school that 
     the child or youth attended when permanently housed, or the 
     school in which the child or youth was last enrolled.
       ``(E) Placement choice.--The choice regarding placement 
     shall be made regardless of whether the child or youth lives 
     with the homeless parents or has been temporarily placed 
     elsewhere by the parents.'';
       (C) by amending paragraph (6) to read as follows:
       ``(6) Coordination.--
       ``(A) In general.--Each local educational agency serving 
     homeless children and youth that receives assistance under 
     this subtitle shall coordinate the provision of services 
     under this subtitle with local services agencies and other 
     agencies or programs providing services to homeless children 
     and youth and their families, including services and programs 
     funded under the Runaway and Homeless Youth Act (42 U.S.C. 
     5701 et seq.).
       ``(B) Housing assistance.--If applicable, each State and 
     local educational agency that receives assistance under this 
     subtitle shall coordinate with State and local housing 
     agencies responsible for developing the comprehensive housing 
     affordability strategy described in section 105 of the 
     Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 
     12705) to minimize educational disruption for children and 
     youth who become homeless.
       ``(C) Coordination purpose.--The coordination required 
     under subparagraphs (A) and (B) shall be designed to--
       ``(i) ensure that homeless children and youth have access 
     to available education and related support services; and
       ``(ii) raise the awareness of school personnel and service 
     providers of the effects of short-term stays in shelters and 
     other challenges associated with homeless children and 
     youth.'';
       (D) by amending paragraph (7) to read as follows:
       ``(7) Liaison.--
       ``(A) In general.--Each local liaison for homeless children 
     and youth designated pursuant to paragraph (1)(H)(ii)(II) 
     shall ensure that--
       ``(i) homeless children and youth enroll, and have a full 
     and equal opportunity to succeed, in the schools of the local 
     educational agency;
       ``(ii) homeless families, children, and youth receive 
     educational services for which such families, children, and 
     youth are eligible, including Head Start and Even Start 
     programs and preschool programs administered by the local 
     educational agency, and referrals to health care services, 
     dental services, mental health services, and other 
     appropriate services;
       ``(iii) the parents or guardians of homeless children and 
     youth are informed of the education and related opportunities 
     available to their children and are provided with meaningful 
     opportunities to participate in the education of their 
     children; and
       ``(iv) public notice of the educational rights of homeless 
     children and youth is posted where such children and youth 
     receive services under this Act (such as family shelters and 
     soup kitchens).
       ``(B) Information.--State coordinators in States receiving 
     assistance under this subtitle and local educational agencies 
     receiving assistance under this subtitle shall inform school 
     personnel, service providers, and advocates working with 
     homeless families of the duties of the liaisons for homeless 
     children and youth.
       ``(C) Local and state coordination.--Liaisons for homeless 
     children and youth shall, as a part of their duties, 
     coordinate and collaborate with State coordinators and 
     community and school personnel responsible for the provision 
     of education and related services to homeless children and 
     youth.
       ``(D) Dispute resolution.--Unless another individual is 
     designated by State law, the local liaison for homeless 
     children and youth shall provide resource information and 
     assist in resolving a dispute under this subtitle if such a 
     dispute arises.''; and
       (E) by striking paragraph (9).

     SEC. 163. LOCAL EDUCATIONAL AGENCY GRANTS.

       Section 723 of such Act (42 U.S.C. 11433) is amended--
       (1) in subsection (a), by amending paragraph (2) to read as 
     follows:
       ``(2) Services.--
       ``(A) In general.--Services provided under paragraph (1)--
       ``(i) may be provided through programs on school grounds or 
     at other facilities;
       ``(ii) shall, to the maximum extent practicable, be 
     provided through existing programs and mechanisms that 
     integrate homeless individuals with nonhomeless individuals; 
     and
       ``(iii) shall be designed to expand or improve services 
     provided as part of a school's regular academic program, but 
     not replace that program.
       ``(B) Services on school grounds.--If services under 
     paragraph (1) are provided on school grounds, schools--

[[Page 7011]]

       ``(i) may use funds under this subtitle to provide the same 
     services to other children and youth who are determined by 
     the local educational agency to be at risk of failing in, or 
     dropping out of, schools, subject to clause (ii); and
       ``(ii) shall not provide services in settings within a 
     school that segregates homeless children and youth from other 
     children and youth, except as is necessary for short periods 
     of time--

       ``(I) for health and safety emergencies; or
       ``(II) to provide temporary, special, supplementary 
     services to meet the unique needs of homeless children and 
     youth.'';

       (2) in subsection (b)--
       (A) by redesignating paragraphs (1) through (4) as 
     paragraphs (2) through (5), respectively;
       (B) by inserting before paragraph (2) (as so redesignated) 
     the following:
       ``(1) an assessment of the educational and related needs of 
     homeless children and youth in the school district (which may 
     be undertaken as a part of needs assessments for other 
     disadvantaged groups);''; and
       (C) in paragraph (4) (as so redesignated), by striking 
     ``(9)'' and inserting ``(8)''; and
       (3) in subsection (c)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--The State educational agency, in 
     accordance with the requirements of this subtitle and from 
     amounts made available to the State educational agency under 
     section 726, shall award grants, on a competitive basis, to 
     local educational agencies that submit applications under 
     subsection (b). Such grants shall be awarded on the basis of 
     the need of such agencies for assistance under this subtitle 
     and the quality of the applications submitted.'';
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) Quality.--In determining the quality of applications 
     under paragraph (1), the State educational agency shall 
     consider--
       ``(A) the local educational agency's needs assessment under 
     subsection (b)(1) and the likelihood that the program to be 
     assisted will meet the needs;
       ``(B) the types, intensity, and coordination of services to 
     be assisted under the program;
       ``(C) the involvement of parents or guardians;
       ``(D) the extent to which homeless children and youth will 
     be integrated within the regular education program;
       ``(E) the quality of the local educational agency's 
     evaluation plan for the program;
       ``(F) the extent to which services provided under this 
     subtitle will be coordinated with other available services;
       ``(G) the extent to which the local educational agency 
     provides case management or related services to homeless 
     children and youth who are unaccompanied by a parent or 
     guardian; and
       ``(H) such other measures as the State educational agency 
     determines indicative of a high-quality program.''.

     SEC. 164. SECRETARIAL RESPONSIBILITIES.

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

     SEC. 165. DEFINITIONS.

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

     SEC. 166. AUTHORIZATION OF APPROPRIATIONS.

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

     ``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 167. CONFORMING AMENDMENTS.

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

                           TITLE II--TEACHERS

     SEC. 201. TEACHER QUALITY.

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

                          ``TITLE II--TEACHERS

                       ``PART A--TEACHER QUALITY

     ``SEC. 2101. PURPOSE.

       ``The purpose of this part is to provide grants to State 
     educational agencies, local educational agencies, State 
     agencies for higher education, and eligible partnerships in 
     order to--
       ``(1) increase student academic achievement and student 
     performance through such strategies as improving teacher 
     quality and increasing the number of highly qualified 
     teachers in the classroom;
       ``(2) hold local educational agencies and schools 
     accountable so that all teachers teaching core academic 
     subjects in public elementary schools and secondary schools, 
     in which not less than 50 percent of the students are from 
     low-income families, are highly qualified; and
       ``(3) hold local educational agencies and schools 
     accountable for improvements in student academic achievement 
     and student performance.

     ``SEC. 2102. DEFINITIONS.

       ``In this part:
       ``(1) All students.--The term `all students' means students 
     from a broad range of backgrounds and circumstances, 
     including economically disadvantaged students, students with 
     diverse racial, ethnic, and cultural backgrounds, students 
     with disabilities, students with limited English proficiency, 
     and academically talented students.
       ``(2) Charter school.--The term `charter school' has the 
     meaning given the term in section 5120.
       ``(3) Core academic subjects.--The term `core academic 
     subjects' means English, mathematics, science, foreign 
     languages, civics and government, economics, arts, history, 
     and geography.
       ``(4) Highly qualified.--The term `highly qualified' 
     means--
       ``(A) with respect to an elementary school teacher, a 
     teacher--
       ``(i)(I) with an academic major in the arts and sciences; 
     or
       ``(II) who can demonstrate competence through a high level 
     of performance in core academic subjects; and
       ``(ii) who is certified or licensed by the State involved, 
     except for a teacher in a charter school in a State that has 
     a charter school law that exempts such a teacher from State 
     certification and licensing requirements;
       ``(B) with respect to a secondary school teacher hired 
     before the date of enactment of the Better Education for 
     Students and Teachers Act, a teacher--
       ``(i)(I) with an academic major (or courses totaling an 
     equivalent number of credit

[[Page 7012]]

     hours) in the academic subject that the teacher teaches or a 
     related field;
       ``(II) who can demonstrate a high level of competence 
     through rigorous academic subject tests and achievement of a 
     high level of competence as described in subclause (III); or
       ``(III) who can demonstrate a high level of competence 
     through a high level of performance in the academic subjects 
     that the teacher teaches, based on a high and objective 
     uniform standard that is--

       ``(aa) set by the State for both grade appropriate academic 
     subject knowledge and teaching skills;
       ``(bb) the same for all teachers in the same academic 
     subject and same grade level throughout the State; and
       ``(cc) a written standard that is developed in consultation 
     with teachers, parents, principals, and school administrators 
     and made available to the public upon request; and

       ``(ii) who is certified or licensed by the State, except 
     for a teacher in a charter school in a State that has a 
     charter school law that exempts such a teacher from State 
     certification and licensing requirements; and
       ``(C) with respect to a secondary school teacher hired 
     after the date of enactment of the Better Education for 
     Students and Teachers Act, a teacher that meets the 
     requirements of subclause (I) or (II) of subparagraph (B)(i).
       ``(5) High need local educational agency.--The term `high 
     need local educational agency' has the meaning given the term 
     in section 201(b) of the Higher Education Act of 1965.
       ``(6) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965.
       ``(7) 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.
       ``(8) 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.
       ``(9) Professional development.--The term `professional 
     development' means activities that--
       ``(A) are an integral part of broad schoolwide and 
     districtwide educational improvement plans;
       ``(B) enhance the ability of teachers and other staff to--
       ``(i) help all students meet challenging State and local 
     content and student performance standards;
       ``(ii) improve understanding and use of student assessments 
     by the teachers and staff;
       ``(iii) improve classroom management skills; and
       ``(iv) as appropriate, integrate technology into the 
     curriculum;
       ``(C) are sustained, intensive, and school-embedded;
       ``(D) are aligned with--
       ``(i) State content standards, student performance 
     standards, and assessments; and
       ``(ii) the curricula and programs tied to the standards 
     described in clause (i);
       ``(E) are of high quality and sufficient duration to have a 
     positive and lasting impact on classroom instruction, and are 
     not one-time workshops; and
       ``(F) are based on the best available research on teaching 
     and learning.
       ``(10) Teacher mentoring.--The term `teacher mentoring' 
     means activities that--
       ``(A) consist of structured guidance and regular and 
     ongoing support for beginning teachers, that--
       ``(i) are designed to help the teachers continue to improve 
     their practice of teaching and to develop their instructional 
     skills; and
       ``(ii) as part of a multiyear, developmental induction 
     process--

       ``(I) involve the assistance of a mentor teacher and other 
     appropriate individuals from a school, local educational 
     agency, or institution of higher education; and
       ``(II) may include coaching, classroom observation, team 
     teaching, and reduced teaching loads; and

       ``(B) may include the establishment of a partnership by a 
     local educational agency with an institution of higher 
     education, another local educational agency, a teacher 
     organization, or another organization.

     ``SEC. 2103. AUTHORIZATION OF APPROPRIATIONS.

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

                     ``Subpart 1--Grants to States

     ``SEC. 2111. ALLOTMENTS TO STATES.

       ``(a) In General.--The Secretary shall make grants to 
     States with applications approved under section 2112 to pay 
     for the Federal share of carrying out the activities 
     specified in section 2113. Each grant shall consist of the 
     allotment determined for a State under subsection (b).
       ``(b) Determination of Allotments.--
       ``(1) Reservation of funds.--
       ``(A) In general.--From the total amount appropriated under 
     section 2103(a) for a fiscal year, the Secretary shall 
     reserve--
       ``(i) \1/2\ of 1 percent for payments to the outlying 
     areas, to be distributed among the outlying areas on the 
     basis of their relative need, as determined by the Secretary, 
     for activities authorized under this part relating to teacher 
     quality, including professional development and teacher 
     hiring; and
       ``(ii) \1/2\ of 1 percent for payments to the Secretary of 
     the Interior for activities described in clause (i) in 
     schools operated or funded by the Bureau of Indian Affairs.
       ``(B) Limitation.--In reserving an amount for the purposes 
     described in clauses (i) and (ii) of subparagraph (A) for a 
     fiscal year, the Secretary shall not reserve more than the 
     total amount the outlying areas and the schools operated or 
     funded by the Bureau of Indian Affairs received for fiscal 
     year 2001 under--
       ``(i) section 2202(b) of this Act (as in effect on the day 
     before the date of enactment of the Better Education for 
     Students and Teachers Act); and
       ``(ii) section 306 of the Department of Education 
     Appropriations Act, 2001 (as enacted into law by section 
     1(a)(1) of Public Law 106-554).
       ``(2) State allotments.--
       ``(A) Hold harmless.--
       ``(i) In general.--Subject to subparagraph (B), from the 
     total amount appropriated under section 2103(a) for any 
     fiscal year and not reserved under paragraph (1), the 
     Secretary shall allot to each of the 50 States, the District 
     of Columbia, and the Commonwealth of Puerto Rico an amount 
     equal to the total amount that such State received for fiscal 
     year 2001 under the authorities described in paragraph 
     (1)(B).
       ``(ii) Ratable reduction.--If the total amount appropriated 
     under section 2103(a) for any fiscal year and not reserved 
     under paragraph (1) is insufficient to pay the full amounts 
     that all States are eligible to receive under clause (i) for 
     the fiscal year, the Secretary shall ratably reduce such 
     amounts for the fiscal year.
       ``(B) Allotment of additional funds.--
       ``(i) In general.--Subject to clause (ii), for any fiscal 
     year for which the total amount appropriated under section 
     2103(a) and not reserved under paragraph (1) exceeds the 
     total amount made available to the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico for fiscal year 
     2001 under the authorities described in paragraph (1)(B), the 
     Secretary shall allot to each of those States the sum of--

       ``(I) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 in the State, as determined by the Secretary on 
     the basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined; and
       ``(II) an amount that bears the same relationship to 50 
     percent of the excess amount as the number of individuals age 
     5 through 17 from families with incomes below the poverty 
     line in the State, as determined by the Secretary on the 
     basis of the most recent satisfactory data, bears to the 
     number of those individuals in all such States, as so 
     determined.

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

     ``SEC. 2112. STATE APPLICATIONS.

       ``(a) In General.--For a State to be eligible to receive a 
     grant under this part, the State educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall include the following:
       ``(1) A description of how the activities to be carried out 
     by the State educational agency under this subpart will be 
     based on a review of relevant research and an explanation of 
     why the activities are expected to improve student 
     performance and outcomes.
       ``(2) A description of how the State educational agency 
     will ensure that activities assisted under this subpart are 
     aligned with State content standards, student performance 
     standards, and assessments.
       ``(3) A description of how the State educational agency 
     will ensure that a local educational agency receiving a 
     subgrant to carry out subpart 2 will comply with the 
     requirements of such subpart.
       ``(4) A description of how the State educational agency 
     will use funds made available under this part to improve the 
     quality of the State's teaching force and the educational 
     opportunities for students.
       ``(5) A description of how the State educational agency 
     will coordinate professional

[[Page 7013]]

     development activities authorized under this part with 
     professional development activities provided under other 
     Federal, State, and local programs, including those 
     authorized under--
       ``(A) title I, part C of this title, part A of title III, 
     and title IV; and
       ``(B) where applicable, the Individuals with Disabilities 
     Education Act, the Carl D. Perkins Vocational and Technical 
     Education Act of 1998, and title II of the Higher Education 
     Act of 1965.
       ``(6) A description of how the activities to be carried out 
     by the State educational agency under this subpart will be 
     developed collaboratively based on the input of teachers, 
     paraprofessionals, administrators, other school personnel, 
     and parents.
       ``(7) 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.
       ``(8) A description of the State educational agency's 
     annual measurable performance objectives under section 2141.
       ``(9) A plan to ensure that all local educational agencies 
     in the State are meeting the performance objectives 
     established by the State under section 2142(a)(1) so that all 
     teachers in the State who are teaching core academic subjects 
     in public elementary schools and secondary schools, in which 
     not less than 50 percent of the students are from low-income 
     families, are highly qualified not later than the end of the 
     fourth year for which the State receives funds under this 
     part (as amended by the Better Education for Students and 
     Teachers Act).
       ``(10) An assurance that the State educational agency will 
     consistently monitor the progress of each local educational 
     agency and school in the State in achieving the purpose of 
     this part and meeting the performance objectives described in 
     section 2142.
       ``(11) 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.
       ``(c) Approval.--The Secretary shall approve a State 
     application submitted to the Secretary under this section 
     unless the Secretary makes a written determination, within 90 
     days after receiving the application, that the application 
     does not meet the requirements of this Act.

     ``SEC. 2113. STATE USE OF FUNDS.

       ``(a) In General.--A State that receives a grant under 
     section 2111 shall--
       ``(1) reserve 2 percent of the funds made available through 
     the grant for State activities described in subsection (b);
       ``(2) reserve 95 percent of the funds to make subgrants to 
     local educational agencies as described in subpart 2; and
       ``(3) reserve 3 percent of the funds to make subgrants to 
     local partnerships as described in subpart 3.
       ``(b) State Activities.--The State educational agency for a 
     State that receives a grant under section 2111 shall use the 
     funds reserved under subsection (a)(1) to carry out 1 or more 
     of the following activities:
       ``(1) Reforming teacher certification (including 
     recertification) or licensing requirements to ensure that--
       ``(A) teachers have the necessary subject matter knowledge 
     and teaching skills in the academic subjects that the 
     teachers teach;
       ``(B) the requirements are aligned with challenging State 
     content standards; and
       ``(C) teachers have the subject matter knowledge and 
     teaching skills necessary to help students meet challenging 
     State student performance standards.
       ``(2) Carrying out programs that provide support during the 
     initial teaching experience, such as programs that provide 
     teacher mentoring, team teaching, reduced schedules, and 
     intensive professional development.
       ``(3) Carrying out programs that establish, expand, or 
     improve alternative routes for State certification of 
     teachers for highly qualified individuals with a 
     baccalaureate degree, including mid-career professionals from 
     other occupations, paraprofessionals, former military 
     personnel, and recent college or university graduates with 
     records of academic distinction who demonstrate the potential 
     to become highly effective teachers.
       ``(4) Providing assistance to teachers to enable teachers 
     to meet certification, licensing, or other requirements 
     needed to become highly qualified by the end of the fourth 
     year described in section 2112(b)(9).
       ``(5) Supporting activities to encourage and support 
     teachers seeking national board certification from the 
     National Board for Professional Teaching Standards or other 
     recognized entities.
       ``(6) Developing and implementing effective mechanisms to 
     assist local educational agencies and schools in effectively 
     recruiting and retaining highly qualified and effective 
     teachers and principals.
       ``(7) Funding projects to promote reciprocity of teacher 
     certification or licensure between or among States.
       ``(8) Testing new teachers for subject matter knowledge, 
     and testing the teachers for State certification or 
     licensing, consistent with title II of the Higher Education 
     Act of 1965.
       ``(9) Supporting activities that ensure that teachers are 
     able to use State content standards, student performance 
     standards, and assessments to improve instructional practices 
     and improve student achievement and student performance.
       ``(10) Establishing teacher compensation systems based on 
     merit and proven performance.
       ``(11) Reforming tenure systems.
       ``(c) Coordination.--A State that receives a grant to carry 
     out this subpart and a grant under section 202 of the Higher 
     Education Act of 1965 shall coordinate the activities carried 
     out under this subpart and the activities carried out under 
     that section 202.

          ``Subpart 2--Subgrants to Local Educational Agencies

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

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

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

       ``(a) In General.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall submit 
     an application to the State educational agency at such time, 
     in such manner, and containing such information as the State 
     educational agency may reasonably require.
       ``(b) Contents.--Each application submitted under this 
     section shall be based on the needs assessment required in 
     subsection (c) and shall include the following:
       ``(1)(A) A description of the activities to be carried out 
     by the local educational agency under this subpart and how 
     these activities will be aligned with--
       ``(i) State content standards, performance standards, and 
     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 relevant research and an explanation of why the 
     activities are expected to improve student performance and 
     outcomes.
       ``(2) A description of how the activities will have a 
     substantial, measurable, and positive impact on student 
     academic achievement and student performance and how the 
     activities will be used as part of a broader strategy to 
     eliminate the achievement gap that separates low-income and 
     minority students from other students.
       ``(3) An assurance that the local educational agency will 
     target funds to schools served by the local educational 
     agency that--
       ``(A) have the lowest proportions of highly qualified 
     teachers;
       ``(B) are identified for school improvement under section 
     1116(c); or
       ``(C) are identified for school improvement in accordance 
     with other measures of school quality as determined and 
     documented by the local educational agency.
       ``(4) A description of how the local educational agency 
     will coordinate professional development activities 
     authorized under this subpart with professional development 
     activities provided under other Federal, State, and local 
     programs, including those authorized under--
       ``(A) title I, part C of this title, part A of title III, 
     and title IV; and
       ``(B) where applicable, the Individuals with Disabilities 
     Education Act, the Carl D. Perkins Vocational and Technical 
     Education Act of 1998, and title II of the Higher Education 
     Act of 1965.
       ``(5) A description of how the local educational agency 
     will ensure that the professional development (including 
     teacher mentoring) needs of teachers will be met using funds 
     under this subpart.
       ``(6) A description of the professional development 
     (including teacher mentoring) activities that will be made 
     available to teachers under this subpart.
       ``(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

[[Page 7014]]

     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 address the ongoing professional development (including 
     teacher mentoring) needs of teachers and administrators.
       ``(10) A description of local performance objectives 
     established under section 2142(a)(2).
       ``(c) Needs Assessment.--
       ``(1) In general.--To be eligible to receive a subgrant 
     under this subpart, a local educational agency shall conduct 
     an assessment of local needs for professional development and 
     hiring, as identified by the local educational agency and 
     school staff.
       ``(2) Requirements.--Such needs assessment shall be 
     conducted with the involvement of teachers, including 
     teachers receiving assistance under part A of title I, and 
     shall take into account the activities that need to be 
     conducted in order to give teachers and, where appropriate, 
     administrators, the means, including subject matter knowledge 
     and teaching skills, to provide students with the opportunity 
     to meet challenging State and local student performance 
     standards.

     ``SEC. 2123. LOCAL USE OF FUNDS.

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

            ``Subpart 3--Subgrants to Eligible Partnerships

     ``SEC. 2131. SUBGRANTS.

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

     ``SEC. 2132. APPLICATIONS.

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

     ``SEC. 2133. USE OF FUNDS.

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

     ``SEC. 2134. DEFINITION.

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

                      ``Subpart 4--Accountability

     ``SEC. 2141. STATE PERFORMANCE OBJECTIVES AND ACCOUNTABILITY.

       ``(a) Required Activities.--Each State educational agency 
     receiving a grant under this part shall establish for the 
     State annual measurable performance objectives, with respect 
     to teachers teaching in the State, that, at a minimum--
       ``(1) shall include an annual increase in the percentage of 
     highly qualified teachers, to ensure that all teachers 
     teaching core academic subjects in public elementary schools 
     and secondary schools, in which not less than 50 percent of 
     the students are from low-income families, are highly 
     qualified not later than the end of the fourth year for which 
     the State receives funds under this part (as amended by the 
     Better Education for Students and Teachers Act);
       ``(2) shall include an annual increase in the percentage of 
     teachers who are receiving high-quality professional 
     development (including teacher mentoring); and
       ``(3) may include incremental increases in teacher 
     performance.
       ``(b) Rule of Application.--For purposes of determining 
     whether teachers in a State meet the criteria specified in 
     the performance objectives referred to in subsection (a), the 
     requirements of subsection (a) shall not apply to teachers in 
     charter schools in the State if the State has a charter 
     school law that exempts such teachers from State 
     certification and licensing requirements.
       ``(c) Reports.--
       ``(1) Initial reports.--Not later than the end of the 
     fourth year for which the State receives funds under this 
     part (as amended by the Better Education for Students and 
     Teachers Act), each State educational agency receiving a 
     grant under this part shall prepare and submit to the 
     Secretary an initial report describing the State's progress 
     with respect to the performance objectives described in this 
     section.
       ``(2) Subsequent reports.--
       ``(A) States subject to sanctions.--The State educational 
     agency for a State that has received sanctions under 
     subsection (d) shall annually prepare and submit to the 
     Secretary a report describing such progress, until the State 
     is no longer subject to the sanctions.
       ``(B) States not subject to sanctions.--A State educational 
     agency that is not required to submit annual reports under 
     subparagraph (A) shall periodically prepare and submit to the 
     Secretary a report describing such progress, to ensure that 
     the State is in compliance with the requirements of this 
     section.
       ``(d) Accountability.--
       ``(1) Reduction of funds.--
       ``(A) Fourth year.--If the Secretary determines that the 
     State educational agency has failed to meet the performance 
     objectives established under subsection (a), and has failed 
     to make adequate yearly progress as described under section 
     1111(b)(2), by the end of

[[Page 7015]]

     the fourth year for which the State receives funds under this 
     part (as amended by the Better Education for Students and 
     Teachers Act), the Secretary shall withhold 15 percent of the 
     amount of funds that the State may reserve for State 
     administration under this part for the fifth year for which 
     the State receives such funds.
       ``(B) Fifth or sixth year.--If the Secretary determines 
     that the State educational agency has failed to meet the 
     performance objectives established under subsection (a), and 
     has failed to make adequate yearly progress as described 
     under section 1111(b)(2), by the end of the fifth or sixth 
     year for which the State receives funds under this part (as 
     amended by the Better Education for Students and Teachers 
     Act), the Secretary shall withhold 20 percent of the amount 
     of funds that the State may reserve for State administration 
     under this part for the sixth or seventh year, respectively, 
     for which the State receives such funds.
       ``(2) Exemption.--After making a determination for a year 
     under paragraph (1), the Secretary may provide the State 1 
     additional year to meet the performance objectives described 
     in subsection (a) or make such adequate yearly progress, 
     before using a sanction described in paragraph (1), if the 
     State demonstrates that exceptional or uncontrollable 
     circumstances have occurred, such as--
       ``(A) a natural disaster; or
       ``(B) a situation in which--
       ``(i) a significant number of teachers has resigned, with 
     insufficient notice, from employment with a local educational 
     agency in the State that has historically had difficulty 
     recruiting and hiring teachers; and
       ``(ii) the remaining local educational agencies in the 
     State, collectively, have met the performance objectives 
     described in subsection (a) and have made such adequate 
     yearly progress by the end of the year for which the 
     Secretary makes the determination.

     ``SEC. 2142. LOCAL PERFORMANCE OBJECTIVES AND ACCOUNTABILITY.

       ``(a) Required Activities.--
       ``(1) Establishment by State educational agencies.--Each 
     State educational agency receiving a grant under this part 
     shall establish for local educational agencies in the State 
     annual measurable performance objectives, with respect to 
     teachers serving the local educational agencies, that, at a 
     minimum--
       ``(A) shall include the increases described in paragraphs 
     (1) and (2) of section 2141(a); and
       ``(B) may include the increases described in section 
     2141(a)(3).
       ``(2) Establishment by local educational agencies.--Each 
     local educational agency receiving a subgrant under this 
     part--
       ``(A) shall establish for the local educational agency an 
     annual measurable performance objective for increasing 
     teacher retention among teachers in the first 3 years of 
     their teaching careers; and
       ``(B) may establish other annual measurable performance 
     objectives.
       ``(b) Reports.--Each local educational agency receiving a 
     subgrant under this part shall annually prepare and submit to 
     the State educational agency a report describing the progress 
     of the local educational agency toward achieving the purpose 
     of this part and meeting the performance objectives described 
     in subsection (a).
       ``(c) Technical Assistance.--If a State educational agency 
     determines that a local educational agency in the State has 
     failed to make substantial progress toward achieving the 
     purpose and meeting the performance objectives described in 
     subsection (a) and has failed to make adequate yearly 
     progress as described under section 1111(b)(2) for 2 
     consecutive years for which the local educational agency 
     receives funds under this part (as amended by the Better 
     Education for Students and Teachers Act), the State 
     educational agency shall provide technical assistance--
       ``(1) to the local educational agency; and
       ``(2) if applicable, to schools served by the local 
     educational agency that need assistance to enable the local 
     educational agency to achieve the purpose and meet the 
     performance objectives.
       ``(d) Accountability.--If the State educational agency 
     determines that the local educational agency has failed to 
     make substantial progress toward achieving the purpose and 
     meeting the performance objectives described in subsection 
     (a), and has failed to make adequate yearly progress as 
     described under section 1111(b)(2), for 3 consecutive years 
     for which the local educational agency receives funds under 
     this part (as amended by the Better Education for Students 
     and Teachers Act), the State educational agency shall--
       ``(1) withhold the allocation described in section 2121(b) 
     from the local educational agency for 2 fiscal years; and
       ``(2) use the funds to carry out programs to assist the 
     local educational agency to achieve the purpose and meet the 
     performance objectives

     ``SEC. 2143. GENERAL ACCOUNTING OFFICE STUDY.

       ``Not later than January 1, 2005, the Comptroller General 
     of the United States shall prepare and submit to Congress a 
     report setting forth information regarding--
       ``(1) the progress of the States in achieving compliance 
     concerning increasing the percentage of highly qualified 
     teachers, for fiscal years 2001 through 2003, so that, not 
     later than the end of the fourth year for which the States 
     receive funds under this part (as amended by the Better 
     Education for Students and Teachers Act), all teachers 
     teaching core academic subjects in public elementary schools 
     or secondary schools, in which not less than 50 percent of 
     the students are from low-income families, are highly 
     qualified;
       ``(2) any significant obstacles that States face in 
     achieving that compliance, such as teacher shortages in 
     particular academic subjects, grade levels, or geographic 
     areas, district-to-district pay differentials, and particular 
     provisions of collective bargaining agreements; and
       ``(3) the approximate percentage of Federal, State, and 
     local resources being expended to carry out activities to 
     provide professional development for teachers, and recruit 
     and retain highly qualified teachers, especially in 
     geographic areas and core academic subjects in which a 
     shortage of such teachers exists, so that, not later than the 
     end of the fourth year for which the States receive funds 
     under this part (as amended by the Better Education for 
     Students and Teachers Act), all teachers teaching core 
     academic subjects in public elementary schools or secondary 
     schools, in which not less than 50 percent of the students 
     qualify for free or reduced price lunches under the school 
     lunch program established under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.), are 
     highly qualified.

                     ``Subpart 5--National Programs

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

       ``(a) In General.--The Secretary shall use funds made 
     available under section 2103(b) to carry out each of the 
     activities described in subsections (b) through (e).
       ``(b) School Leadership.--The Secretary shall award grants 
     to entities that are State educational agencies, local 
     educational agencies, institutions of higher education, or 
     nonprofit educational organizations, and consortia of such 
     entities, to enable such entities and consortia to recruit 
     and train school leaders (including principals and assistant 
     principals), provide mentorship for new school leaders, and 
     provide ongoing professional development to develop or 
     enhance the leadership skills of school leaders.
       ``(c) Advanced Certification or Advanced Credentialing.--
       ``(1) In general.--The Secretary shall support activities 
     to encourage and support teachers seeking advanced 
     certification or advanced credentialing through high quality 
     professional teacher enhancement programs designed to improve 
     teaching and learning.
       ``(2) Implementation.--In carrying out paragraph (1), the 
     Secretary shall make grants to the National Board for 
     Professional Teaching Standards, State educational agencies, 
     local educational agencies, or other recognized entities, to 
     promote outreach, teacher recruitment, teacher subsidy, or 
     teacher support programs related to teacher certification by 
     the National Board for Professional Teaching Standards and 
     other nationally recognized certification organizations.
       ``(d) Troops-to-Teachers Program.--
       ``(1) Purpose.--The purpose of this subsection is to 
     authorize a mechanism for the funding and administration of 
     the Troops-to-Teachers Program established by the Troops-to-
     Teachers Program Act of 1999 (title XVII of the National 
     Defense Authorization Act for Fiscal Year 2000).
       ``(2) Transfer of funds for administration of program.--To 
     the extent that funds are made available under this Act to 
     the Secretary for the Troops-to-Teachers Program, the 
     Secretary shall use the funds to enter into a contract with 
     the Defense Activity for Non-Traditional Education Support of 
     the Department of Defense. The Defense Activity shall use the 
     amounts made available through the contract to perform the 
     actual administration of the Troops-to-Teachers Program, 
     including the selection of participants in the program under 
     section 1704 of the Troops-to-Teachers Program Act of 1999. 
     The Secretary may retain a portion of the funds to identify 
     local educational agencies with concentrations of children 
     from low-income families or with teacher shortages and States 
     with alternative certification or licensure requirements, as 
     required by section 1702 of such Act.
       ``(e) Transition to Teaching.--The Secretary shall provide 
     assistance for activities to support the development and 
     implementation of national or regional programs to--
       ``(1) recruit, prepare, place, and support mid-career 
     professionals who have knowledge and experience that will 
     help the professionals become highly qualified teachers, 
     through alternative routes to certification, for high need 
     local educational agencies; and
       ``(2) help retain the professionals as classroom teachers 
     serving the local educational agencies for more than 3 years.
       ``(f) National Teacher Recruitment Campaign.--

[[Page 7016]]

       ``(1) Grant.--The Secretary shall award a grant, on a 
     competitive basis, to a single national coalition of teacher 
     and media organizations, including the National Teacher 
     Recruitment Clearinghouse, to enable such organizations to 
     jointly conduct a national public service campaign as 
     described in paragraph (2).
       ``(2) Use of funds.--A coalition that receives a grant 
     under paragraph (1) shall use amounts made available under 
     the grant to conduct a national public service campaign 
     concerning the resources for and routes to entering the field 
     of teaching. In conducting the campaign, the coalition shall 
     focus on providing information both to a national audience 
     and in specific media markets, and shall specifically expand 
     on, promote, and link the coalition's outreach efforts to, 
     the information referral activities and resources of the 
     National Teacher Recruitment Clearinghouse.
       ``(3) Application.--To be eligible to receive a grant under 
     this subsection, a coalition shall prepare and submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $3,000,0000 
     for fiscal year 2002 and each of the 6 succeeding fiscal 
     years.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

     ``SEC. 2201. PURPOSE.

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

     ``SEC. 2202. DEFINITIONS.

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

                  ``Subpart 1--Grants to Partnerships

     ``SEC. 2211. GRANTS AUTHORIZED.

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

     ``SEC. 2212. APPLICATION REQUIREMENTS.

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

     ``SEC. 2213. AUTHORIZED ACTIVITIES.

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

     ``SEC. 2214. EVALUATION AND ACCOUNTABILITY PLAN.

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

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

       ``(a) Report.--Each eligible partnership receiving a grant 
     under this subpart annually

[[Page 7017]]

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

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

     ``SEC. 2221. CLEARINGHOUSE.

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

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

     ``SEC. 2231. PURPOSE; PROGRAM AUTHORITY.

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

     ``SEC. 2232. ELIGIBILITY.

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

[[Page 7018]]

     infrastructure, and the non-Federal share of the cost of any 
     such acquisition shall be provided in cash.

     ``SEC. 2233. USE OF FUNDS.

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

                    ``Subpart 4--General Provisions

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

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

     ``SEC. 2242. AUTHORIZATION OF APPROPRIATIONS.

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

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

     ``SEC. 2301. PURPOSE; GOAL.

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

     ``SEC. 2302. DEFINITIONS.

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

     ``SEC. 2303. ALLOTMENT AND REALLOTMENT.

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

     ``SEC. 2304. TECHNOLOGY GRANTS.

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

     ``SEC. 2305. STATE APPLICATION.

       ``To receive a grant under this part, each State 
     educational agency shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require, 
     including a systemic statewide educational technology plan 
     that--

[[Page 7019]]

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

     ``SEC. 2306. LOCAL USES OF FUNDS.

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

     ``SEC. 2307. LOCAL APPLICATION.

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

     ``SEC. 2308. ACCOUNTABILITY.

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

     ``SEC. 2309. NATIONAL EDUCATION TECHNOLOGY PLAN.

       ``(a) In General.--Not later than 12 months after the date 
     of enactment of this section, the Secretary shall prepare the 
     national long-range plan that supports the overall national 
     technology policy. The Secretary shall update such plan 
     periodically when appropriate.
       ``(b) Consultation.--In preparing the plan described in 
     subsection (a), the Secretary shall consult with other 
     Federal departments or agencies, State and local education 
     practitioners, and policymakers, including teachers, 
     principals, and superintendents, experts in technology and 
     the applications of technology to education, representatives 
     of distance learning consortia, representatives of 
     telecommunications partnerships receiving assistance under 
     the Star Schools Act or the Technology Challenge Fund 
     program, and providers of technology services and products.
       ``(c) Submission; Publication.--Upon completion of the plan 
     described in subsection (a), the Secretary shall--
       ``(1) submit such plan to the President and to the 
     appropriate committees of Congress; and
       ``(2) publish such plan in a form that is readily 
     accessible to the public, including on the Internet.
       ``(d) Content of the Plan.--The plan described in 
     subsection (a) shall describe the following:
       ``(1) Effective use.--The plan shall describe the manner in 
     which the Secretary will encourage the effective use of 
     technology to provide all students the opportunity to achieve 
     challenging State academic content standards and challenging 
     State student performance standards, especially through 
     programs administered by the Department.
       ``(2) Joint activities.--The plan shall describe joint 
     activities in support of the overall national technology 
     policy to be carried out with other Federal departments or 
     agencies, such as the Office of Science and Technology 
     Policy, the National Endowment for the Humanities, the 
     National Endowment for the Arts, the National Institute for 
     Literacy, the National Aeronautics and Space Administration, 
     the National Science Foundation, the Bureau of Indian 
     Affairs, and the Departments of Commerce, Energy, Health and 
     Human Services, and Labor--
       ``(A) to promote the use of technology in education, 
     training, and lifelong learning,

[[Page 7020]]

     including plans for the educational uses of a national 
     information infrastructure; and
       ``(B) to ensure that the policies and programs of such 
     departments or agencies facilitate the use of technology for 
     educational purposes, to the extent feasible.
       ``(3) Collaboration.--The plan shall describe the manner in 
     which the Secretary will work with educators, State and local 
     educational agencies, and appropriate representatives of the 
     private sector, including the Universal Service 
     Administrative Company, to facilitate the effective use of 
     technology in education.
       ``(4) Promoting access.--The plan shall describe the manner 
     in which the Secretary will promote--
       ``(A) higher academic achievement and performance of all 
     students through the integration of technology into the 
     curriculum;
       ``(B) increased access to the benefits of technology for 
     teaching and learning for schools with a high number or 
     percentage of children from low-income families;
       ``(C) the use of technology to assist in the implementation 
     of State systemic reform strategies;
       ``(D) the application of technological advances to use in 
     improving educational opportunities;
       ``(E) increased access to high quality adult and family 
     education services through the use of technology for 
     instruction and professional development; and
       ``(F) increased opportunities for the professional 
     development of teachers in the use of new technologies.
       ``(5) Guidelines.--The plan shall describe the manner in 
     which the Secretary will determine, in consultation with 
     appropriate individuals, organizations, industries, and 
     agencies, the feasibility and desirability of establishing 
     guidelines to facilitate an easy exchange of data and 
     effective use of technology in improving educational 
     opportunities.
       ``(6) Exchange.--The plan shall describe the manner in 
     which the Secretary will promote the exchange of information 
     among States, local educational agencies, schools, consortia, 
     and other entities concerning the effective use of technology 
     in improving educational opportunities.
       ``(7) Goals.--The plan shall describe the Secretary's long-
     range measurable goals and objectives relating to the 
     purposes of this part.

     ``SEC. 2310. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 202. TEACHER MOBILITY.

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

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

     ``SEC. 2401. DEFINITION.

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

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

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

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

     SEC. 301. BILINGUAL EDUCATION.

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

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

                     ``PART A--BILINGUAL EDUCATION

     ``SEC. 3001. SHORT TITLE.

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

     ``SEC. 3002. PURPOSE.

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

     ``SEC. 3003. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Bilingual Education.--There are authorized to be 
     appropriated to carry out this part $700,000,000 for fiscal 
     year 2002 and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       ``(b) State and Local Grants.--Notwithstanding subsection 
     (a), for any fiscal year for which the amount of funds 
     appropriated under subsection (a) is not less than 
     $700,000,000, the funds shall be used to carry out part D.

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

       ``(a) Eligible Entities.--
       ``(1) In general.--For the purpose of carrying out programs 
     under this part for individuals served by elementary schools, 
     secondary schools, and postsecondary schools operated 
     predominately for Native American (including Alaska Native) 
     children and youth, an Indian tribe, a tribally sanctioned 
     educational authority, a Native Hawaiian or

[[Page 7021]]

     Native American Pacific Islander native language education 
     organization, or an elementary school or secondary school 
     that is operated or funded by the Bureau of Indian Affairs 
     shall be considered to be a local educational agency.
       ``(2) Definitions.--In this section:
       ``(A) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Native village or Regional 
     Corporation or Village Corporation as defined in or 
     established pursuant to the Alaska Native Claims Settlement 
     Act, that is recognized as eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians.
       ``(B) Tribally sanctioned educational authority.--The term 
     `tribally sanctioned educational authority' means--
       ``(i) any department or division of education operating 
     within the administrative structure of the duly constituted 
     governing body of an Indian tribe; and
       ``(ii) any nonprofit institution or organization that is--

       ``(I) chartered by the governing body of an Indian tribe to 
     operate any school operated predominately for Indian children 
     and youth or otherwise to oversee the delivery of educational 
     services to members of that tribe; and
       ``(II) approved by the Secretary for the purpose of this 
     section.

       ``(b) Eligible Entity Application.--Notwithstanding any 
     other provision of this part, each eligible entity described 
     in subsection (a) shall submit any application for assistance 
     under this part directly to the Secretary along with timely 
     comments on the need for the program proposed in the 
     application.

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

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

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

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

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

     ``SEC. 3102. PROGRAM ENHANCEMENT PROJECTS.

       ``(a) Purpose.--The purpose of this section is to--
       ``(1) provide grants to eligible entities to provide 
     innovative, locally designed, high quality instruction to 
     children and youth of limited English proficiency;
       ``(2) help children and youth develop proficiency in the 
     English language by expanding or strengthening instructional 
     programs; and
       ``(3) help children and youth attain the standards 
     established under section 1111(b).
       ``(b) Program Authorized.--
       ``(1) Authority.--
       ``(A) In general.--The Secretary is authorized to award 
     grants to eligible entities having applications approved 
     under section 3104 to enable such entities to carry out 
     activities described in paragraph (2).
       ``(B) Period.--Each grant awarded under this section shall 
     be awarded for a period of 3 years.
       ``(2) Authorized activities.--
       ``(A) Mandatory activities.--Grants awarded under this 
     section shall be used for--
       ``(i) developing, implementing, expanding, or enhancing 
     comprehensive preschool, elementary, or secondary education 
     programs for limited English proficient children and youth, 
     that are--

       ``(I) aligned with State and local content and student 
     performance standards, and local school reform efforts; and
       ``(II) coordinated with related services for children and 
     youth;

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

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

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to provide financial assistance to schools and local 
     educational agencies for implementing bilingual education 
     programs, in coordination with programs carried out under 
     this title, for children and youth of limited English 
     proficiency;
       ``(2) to assist limited English proficient students to meet 
     the standards established under section 1111(b); and
       ``(3) to improve, reform, and upgrade relevant 
     instructional programs and operations, carried out by schools 
     and local educational agencies, that serve significant 
     percentages of students of limited English proficiency or 
     significant numbers of such students.
       ``(b) Authorized Activities.--
       ``(1) Authority.--The Secretary may award grants to 
     eligible entities having applications approved under section 
     3104 to enable such entities to carry out activities 
     described in paragraphs (2) and (3).
       ``(2) Mandatory activities.--Grants awarded under this 
     section shall be used for--
       ``(A) improving instructional programs for limited English 
     proficient students by acquiring and upgrading curricula and 
     related instructional materials;
       ``(B) aligning the activities carried out under this 
     section with State and local school reform efforts;
       ``(C) providing training, aligned with State and local 
     standards, to school personnel and participating community-
     based organization personnel to improve the instruction and 
     assessment of limited English proficient students;
       ``(D) developing and implementing plans, coordinated with 
     plans for programs carried out under title II of the Higher 
     Education Act of 1965 (where applicable), and title II of 
     this Act (where applicable), to recruit teachers trained to 
     serve limited English proficient students;
       ``(E) implementing culturally and linguistically 
     appropriate family education programs, or parent outreach and 
     training activities, that are designed to assist parents to 
     become active participants in the education of their 
     children;
       ``(F) coordinating the activities carried out under this 
     section with other programs, such as programs carried out 
     under this title;
       ``(G) providing services to meet the full range of the 
     educational needs of limited English proficient students;
       ``(H) annually assessing the English proficiency of all 
     limited English proficient students served by the activities 
     carried out under this section; and
       ``(I) developing or improving accountability systems to 
     monitor the academic progress of limited English proficient 
     students.

[[Page 7022]]

       ``(3) Permissible activities.--Grants awarded under this 
     section may be used for--
       ``(A) implementing programs to upgrade reading and other 
     academic skills of limited English proficient students;
       ``(B) developing and using educational technology to 
     improve learning, assessments, and accountability to meet the 
     needs of limited English proficient students;
       ``(C) implementing scientifically based research programs 
     to meet the needs of limited English proficient students;
       ``(D) providing tutorials and academic or career counseling 
     for limited English proficient children and youth;
       ``(E) developing and implementing State and local content 
     and student performance standards for learning English as a 
     second language, as well as for learning other languages;
       ``(F) developing and implementing programs for limited 
     English proficient students to meet the needs of changing 
     populations of such students;
       ``(G) implementing policies to ensure that limited English 
     proficient students have access to other education programs 
     (other than programs designed to address limited English 
     proficiency), such as gifted and talented, vocational 
     education, and special education programs;
       ``(H) assisting limited English proficient students with 
     disabilities;
       ``(I) developing and implementing programs to help all 
     students become proficient in more than 1 language; and
       ``(J) carrying out such other activities related to the 
     purpose of this part as the Secretary may approve.
       ``(4) Special rule.--A recipient of a grant under this 
     section, before carrying out activities under this section, 
     shall plan, train personnel, develop curricula, and acquire 
     or develop materials, but shall not use funds made available 
     under this section for planning purposes for more than 90 
     days. The recipient shall commence carrying out activities 
     under this section not later than 90 days after the date of 
     receipt of the grant.
       ``(c) Availability of Appropriations.--




       ``(1) Reservation of funds for continued payments.--
       ``(A) Covered grant.--In this paragraph, the term `covered 
     grant' means a grant--
       ``(i) that was awarded under section 7114 or 7115 (as such 
     sections were in effect on the day before the date of 
     enactment of the Better Education for Students and Teachers 
     Act); and
       ``(ii) for which the grant period has not ended.
       ``(B) Reservation.--For any fiscal year that is part of the 
     grant period of a covered grant, the Secretary shall reserve 
     funds for the payments described in subparagraph (C) from the 
     amount appropriated for the fiscal year under section 3003 
     and made available for carrying out this section.
       ``(C) Payments.--The Secretary shall continue to make grant 
     payments to each entity that received a covered grant, for 
     the duration of the grant period of the grant, to carry out 
     activities in accordance with the appropriate section 
     described in subparagraph (A)(i).
       ``(2) Availability.--Of the amount appropriated for a 
     fiscal year under section 3003 that is made available for 
     carrying out this section, and that remains after the 
     Secretary reserves funds for payments under paragraph (1)--
       ``(A) not less than \1/3\ of the remainder shall be used to 
     award grants for activities carried out within an entire 
     school district; and
       ``(B) not less than \2/3\ of the remainder shall be used to 
     award grants for activities carried out within individual 
     schools.
       ``(d) Eligible Entities.--In this section, the term 
     `eligible entity' means--
       ``(1) 1 or more local educational agencies; or
       ``(2) 1 or more local educational agencies, in 
     collaboration with an institution of higher education, 
     community-based organization, or State educational agency.

     ``SEC. 3104. APPLICATIONS.

       ``(a) In General.--
       ``(1) Secretary.--To receive a grant under this subpart, an 
     eligible entity shall submit an application to the Secretary 
     at such time, in such form, and containing such information 
     as the Secretary may require.
       ``(2) State educational agency.--An eligible entity, with 
     the exception of schools funded by the Bureau of Indian 
     Affairs, shall submit a copy of the application submitted by 
     the entity under this section to the State educational 
     agency.
       ``(b) State Review and Comments.--
       ``(1) Deadline.--The State educational agency, not later 
     than 45 days after receipt of an application under this 
     section, shall review the application and submit the written 
     comments of the agency regarding the application to the 
     Secretary.
       ``(2) Comments.--
       ``(A) Submission of comments.--Regarding applications 
     submitted under this subpart, the State educational agency 
     shall--
       ``(i) submit to the Secretary written comments regarding 
     all such applications; and
       ``(ii) submit to each eligible entity the comments that 
     pertain to such entity.
       ``(B) Subject.--For purposes of this subpart, such comments 
     shall address--
       ``(i) how the activities to be carried out under the grant 
     will further the academic achievement and English proficiency 
     of limited English proficient students served under the 
     grant; and
       ``(ii) how the grant application is consistent with the 
     State plan required under section 1111.
       ``(c) Eligible Entity Comments.--An eligible entity may 
     submit to the Secretary comments that address the comments 
     submitted by the State educational agency.
       ``(d) Comment Consideration.--In making grants under this 
     subpart, the Secretary shall take into consideration comments 
     made by State educational agencies.
       ``(e) Waiver.--Notwithstanding subsection (b), the 
     Secretary is authorized to waive the review requirement 
     specified in subsection (b) if a State educational agency can 
     demonstrate that such review requirement may impede such 
     agency's ability to fulfill the requirements of participation 
     in the program authorized in section 3124, particularly such 
     agency's ability to carry out data collection efforts and 
     such agency's ability to provide technical assistance to 
     local educational agencies not receiving funds under this 
     Act.
       ``(f) Required Documentation.--Such application shall 
     include documentation that--
       ``(1) the applicant has the qualified personnel required to 
     develop, administer, and implement the program proposed in 
     the application; and
       ``(2) the leadership personnel of each school participating 
     in the program have been involved in the development and 
     planning of the program in the school.
       ``(g) Contents.--
       ``(1) In general.--An application for a grant under this 
     subpart shall contain the following:
       ``(A) A description of the need for the proposed program, 
     including--
       ``(i) data on the number of limited English proficient 
     students in the school or school district to be served;
       ``(ii) information on the characteristics of such students, 
     including--

       ``(I) the native languages of the students;
       ``(II) the proficiency of the students in English and their 
     native language;
       ``(III) achievement data (current as of the date of 
     submission of the application) for the limited English 
     proficient students in--

       ``(aa) reading or language arts (in English and in the 
     native language, if applicable); and
       ``(bb) mathematics;

       ``(IV) a comparison of that data for the students with that 
     data for the English proficient peers of the students; and
       ``(V) the previous schooling experiences of the students;

       ``(iii) the professional development needs of the 
     instructional personnel who will provide services for the 
     limited English proficient students under the proposed 
     program; and
       ``(iv) how the services provided through the grant will 
     supplement the basic services provided to limited English 
     proficient students.
       ``(B) A description of the program to be implemented and 
     how such program's design--
       ``(i) relates to the linguistic and academic needs of the 
     children and youth of limited English proficiency to be 
     served;
       ``(ii) will ensure that the services provided through the 
     program will supplement the basic services the applicant 
     provides to limited English proficient students;
       ``(iii) will ensure that the program is coordinated with 
     other programs under this Act and other Acts;
       ``(iv) involves the parents of the children and youth of 
     limited English proficiency to be served;
       ``(v) ensures accountability in achieving high academic 
     standards; and
       ``(vi) promotes coordination of services for the children 
     and youth of limited English proficiency to be served and 
     their families.
       ``(C) A description, if appropriate, of the applicant's 
     collaborative activities with institutions of higher 
     education, community-based organizations, local educational 
     agencies or State educational agencies, private schools, 
     nonprofit organizations, or businesses in carrying out the 
     proposed program.
       ``(D) An assurance that the applicant will not reduce the 
     level of State and local funds that the applicant expends for 
     bilingual education or special alternative instruction 
     programs if the applicant receives an award under this 
     subpart.
       ``(E) An assurance that the applicant will employ teachers 
     in the proposed program who, individually or in combination, 
     are proficient in--
       ``(i) English, with respect to written, as well as oral, 
     communication skills; and
       ``(ii) the native language of the majority of the students 
     that the teachers teach, if instruction in the program is in 
     the native language as well as English.
       ``(F) A budget for the grant funds.
       ``(2) Additional information.--Each application for a grant 
     under section 3103 shall--
       ``(A) describe--
       ``(i) current services (as of the date of submission of the 
     application) the applicant provides to children and youth of 
     limited English proficiency;
       ``(ii) what services children and youth of limited English 
     proficiency will receive under the grant that such children 
     or youth will not otherwise receive;

[[Page 7023]]

       ``(iii) how funds received under this subpart will be 
     integrated with all other Federal, State, local, and private 
     resources that may be used to serve children and youth of 
     limited English proficiency;
       ``(iv) specific achievement and school retention goals for 
     the children and youth to be served by the proposed program 
     and how progress toward achieving such goals will be 
     measured; and
       ``(v) the current family education programs (as of the date 
     of submission of the application) of the eligible entity, if 
     applicable; and
       ``(B) provide assurances that--
       ``(i) the program funded with the grant will be integrated 
     with the overall educational program of the students served 
     through the proposed program; and
       ``(ii) the application has been developed in consultation 
     with an advisory council, the majority of whose members are 
     parents and other representatives of the children and youth 
     to be served in such program.
       ``(h) Approval of Applications.--An application for a grant 
     under this subpart may be approved only if the Secretary 
     determines that--
       ``(1) the program proposed in the application will use 
     qualified personnel, including personnel who are proficient 
     in the language or languages used for instruction;
       ``(2) in designing the program, the eligible entity has, 
     after consultation with appropriate private school 
     officials--
       ``(A) taken into account the needs of children in nonprofit 
     private elementary schools and secondary schools; and
       ``(B) in a manner consistent with the number of such 
     children enrolled in such schools in the area to be served, 
     whose educational needs are of the type and whose language, 
     and grade levels are of a similar type to the needs, 
     language, and grade levels that the program is intended to 
     address, provided for the participation of such children on a 
     basis comparable to the basis on which public school children 
     participate;
       ``(3)(A) student evaluation and assessment procedures in 
     the program are valid, reliable, and fair for limited English 
     proficient students; and
       ``(B) limited English proficient students with disabilities 
     will be identified and served through the program in 
     accordance with the requirements of the Individuals with 
     Disabilities Education Act;
       ``(4) Federal funds made available for the program will be 
     used to supplement the State and local funds that, in the 
     absence of such Federal funds, would be expended for special 
     programs for children of limited English proficient 
     individuals, and in no case to supplant such State and local 
     funds, except that nothing in this paragraph shall be 
     construed to preclude a local educational agency from using 
     funds made available under this subpart--
       ``(A) for activities carried out under an order of a 
     Federal or State court respecting services to be provided to 
     such children; or
       ``(B) to carry out a plan approved by the Secretary as 
     adequate under title VI of the Civil Rights Act of 1964 with 
     respect to services to be provided to such children;
       ``(5)(A) the assistance provided through the grant will 
     contribute toward building the capacity of the eligible 
     entity to provide a program on a regular basis, similar to 
     the proposed program, that will be of sufficient size, scope, 
     and quality to promise significant improvement in the 
     education of limited English proficient students; and
       ``(B) the eligible entity will have the resources and 
     commitment to continue the program of sufficient size, scope, 
     and quality when assistance under this subpart is reduced or 
     no longer available; and
       ``(6) the eligible entity will use State and national 
     dissemination sources for program design and dissemination of 
     results and products.
       ``(i) Priorities and Special Rules.--
       ``(1) Priority.--In approving applications for grants for 
     programs under this subpart, the Secretary shall give 
     priority to an applicant who--
       ``(A) experiences a dramatic increase in the number or 
     percentage of limited English proficient students enrolled in 
     the applicant's programs and has limited or no experience in 
     serving limited English proficient students;
       ``(B) is a local educational agency that serves a school 
     district that has a total district enrollment that is less 
     than 10,000 students;
       ``(C) demonstrates that the applicant has a proven record 
     of success in helping limited English proficient children and 
     youth learn English and meet high academic standards;
       ``(D) proposes programs that provide for the development of 
     bilingual proficiency both in English and another language 
     for all participating students; or
       ``(E) serves a school district with a large number or 
     percentage of limited English proficient students.
       ``(2) Consideration.--In determining whether to approve an 
     application under this subpart, the Secretary shall give 
     consideration to the degree to which the program for which 
     assistance is sought involves the collaborative efforts of 
     institutions of higher education, community-based 
     organizations, the appropriate local educational agency and 
     State educational agency, or businesses.
       ``(3) Due consideration.--In determining whether to approve 
     an application under this subpart, the Secretary shall give 
     due consideration to an application that--
       ``(A) provides for training for personnel participating in 
     or preparing to participate in the program that will assist 
     such personnel in meeting State and local certification 
     requirements; and
       ``(B) to the extent possible, describes how credit at an 
     institution of higher education will be awarded for such 
     training.

     ``SEC. 3105. CAPACITY BUILDING.

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

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

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

     ``SEC. 3107. EVALUATIONS.

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

     ``SEC. 3108. CONSTRUCTION.

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

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

     ``SEC. 3121. AUTHORITY.

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

     ``SEC. 3122. RESEARCH.

       ``(a) Administration.--The Secretary shall conduct research 
     activities authorized by

[[Page 7024]]

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

     ``SEC. 3123. ACADEMIC EXCELLENCE AWARDS.

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

     ``SEC. 3124. STATE GRANT PROGRAM.

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

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

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

     ``SEC. 3126. INSTRUCTIONAL MATERIALS DEVELOPMENT.

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

                 ``Subpart 3--Professional Development

     ``SEC. 3131. PURPOSE.

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

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

       ``(a) Purpose.--The purpose of this section is to provide 
     for the incorporation of courses and curricula on appropriate 
     and effective instructional and assessment methodologies, 
     strategies, and resources specific to limited English 
     proficient students into preservice and inservice 
     professional development programs for individuals who are 
     teachers, pupil services personnel, administrators, or other 
     education personnel in order to prepare such individuals to 
     provide effective services to limited English proficient 
     students.

[[Page 7025]]

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

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

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

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

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

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

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

     ``SEC. 3136. APPLICATION.

       ``(a) In General.--
       ``(1) Secretary.--To receive an award under this subpart, 
     an eligible entity shall submit an application to the 
     Secretary at such time, in such form, and containing such 
     information as the Secretary may require.
       ``(2) Consultation and assessment.--Each such application 
     shall contain a description of how the applicant has 
     consulted with, and assessed the needs of, public and private 
     schools serving children and youth of limited English 
     proficiency to determine such schools' need for, and the 
     design of, the program for which funds are sought.
       ``(3) Special rule.--
       ``(A) Training practicum.--An eligible entity who proposes 
     to conduct a master's- or doctoral-level program with funds 
     received under this subpart shall submit an application under 
     this section that contains an assurance that such program 
     will include, as a part of the program, a training practicum 
     in a local school program serving children and youth of 
     limited English proficiency.
       ``(B) Waiver.--A recipient of a grant under this subpart 
     for a program may waive the requirement that a participant in 
     the program participate in the training practicum, for a 
     degree candidate with significant experience in a local 
     school program serving children and youth of limited English 
     proficiency.
       ``(4) State educational agency.--An eligible entity that 
     submits an application under this section, with the exception 
     of a school funded by the Bureau of Indian Affairs, shall 
     submit a copy of the application to the appropriate State 
     educational agency.
       ``(b) State Review and Comments.--
       ``(1) Deadline.--The State educational agency, not later 
     than 45 days after receipt

[[Page 7026]]

     of such application, shall review the application and 
     transmit such application to the Secretary.
       ``(2) Comments.--
       ``(A) Submission of comments.--Regarding applications 
     submitted under this subpart, the State educational agency 
     shall--
       ``(i) submit to the Secretary written comments regarding 
     all such applications; and
       ``(ii) submit to each eligible entity the comments that 
     pertain to such entity.
       ``(B) Subject.--For purposes of this subpart, comments 
     shall address--
       ``(i) how the activities to be carried out under the award 
     will further the academic achievement and English proficiency 
     of limited English proficient students served under the 
     award; and
       ``(ii) how the application is consistent with the State 
     plan required under section 1111.
       ``(c) Eligible Entity Comments.--An eligible entity may 
     submit to the Secretary comments that address the comments 
     submitted by the State educational agency.
       ``(d) Comment Consideration.--In making awards under this 
     subpart, the Secretary shall take into consideration comments 
     made by State educational agencies.
       ``(e) Waiver.--Notwithstanding subsection (b), the 
     Secretary is authorized to waive the review requirement 
     specified in subsection (b) if a State educational agency can 
     demonstrate that such review requirement may impede such 
     agency's ability to fulfill the requirements of participation 
     in the program authorized in section 3124, particularly such 
     agency's ability to carry out data collection efforts, and 
     such agency's ability to provide technical assistance to 
     local educational agencies not receiving funds under this 
     Act.
       ``(f) Special Rule.--
       ``(1) Outreach and technical assistance.--The Secretary 
     shall provide for outreach and technical assistance to 
     institutions of higher education eligible for assistance 
     under title III of the Higher Education Act of 1965 and 
     institutions of higher education that are operated or funded 
     by the Bureau of Indian Affairs to facilitate the 
     participation of such institutions in activities under this 
     subpart.
       ``(2) Distribution rule.--In making awards under this 
     subpart, the Secretary, consistent with subsection (d), shall 
     ensure adequate representation of Hispanic-serving 
     institutions that demonstrate competence and experience 
     concerning the programs and activities authorized under this 
     subpart and are otherwise qualified.

     ``SEC. 3137. STIPENDS.

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

     ``SEC. 3138. PROGRAM EVALUATIONS.

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

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

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

             ``PART B--FOREIGN LANGUAGE ASSISTANCE PROGRAM

     ``SEC. 3201. SHORT TITLE.

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

     ``SEC. 3202. PROGRAM AUTHORIZED.

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

     ``SEC. 3203. APPLICATIONS.

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

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

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

     ``SEC. 3205. AUTHORIZATION OF APPROPRIATIONS.

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

            ``PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

     ``SEC. 3301. PURPOSE.

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

     ``SEC. 3302. STATE ADMINISTRATIVE COSTS.

       ``For any fiscal year, a State educational agency may 
     reserve not more than 1.5 percent (2 percent if the State 
     educational agency distributes funds received under this part

[[Page 7027]]

     to local educational agencies on a competitive basis) of the 
     amount allocated to such agency under section 3304 to pay the 
     costs of performing such agency's administrative functions 
     under this part.

     ``SEC. 3303. WITHHOLDING.

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

     ``SEC. 3304. STATE ALLOCATIONS.

       ``(a) Payments.--The Secretary shall, in accordance with 
     the provisions of this section, make payments to State 
     educational agencies for each of the fiscal years 2002 
     through 2008 for the purpose set forth in section 3301.
       ``(b) Allocations.--
       ``(1) In general.--Except as provided in subsections (c) 
     and (d), of the amount appropriated for each fiscal year for 
     this part, each State participating in the program assisted 
     under this part shall receive an allocation equal to the 
     proportion of such State's number of immigrant children and 
     youth who are enrolled in public elementary schools or 
     secondary schools under the jurisdiction of each local 
     educational agency described in paragraph (2) within such 
     State, and in nonpublic elementary schools or secondary 
     schools within the district served by each such local 
     educational agency, relative to the total number of immigrant 
     children and youth so enrolled in all the States 
     participating in the program assisted under this part.
       ``(2) Eligible local educational agencies.--The local 
     educational agencies referred to in paragraph (1) are those 
     local educational agencies in which the sum of the number of 
     immigrant children and youth who are enrolled in public 
     elementary schools or secondary schools under the 
     jurisdiction of such agencies, and in nonpublic elementary 
     schools or secondary schools within the districts served by 
     such agencies, during the fiscal year for which the payments 
     are to be made under this part, is equal to--
       ``(A) at least 500; or
       ``(B) at least 3 percent of the total number of students 
     enrolled in such public or nonpublic schools during such 
     fiscal year,

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

     ``SEC. 3305. STATE APPLICATIONS.

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

[[Page 7028]]



     ``SEC. 3306. ADMINISTRATIVE PROVISIONS.

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

     ``SEC. 3307. USES OF FUNDS.

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

     ``SEC. 3308. REPORTS.

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

     ``SEC. 3309. AUTHORIZATION OF APPROPRIATIONS.

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

    ``PART D--STATE AND LOCAL GRANTS FOR LANGUAGE MINORITY STUDENTS

     ``SEC. 3321. POLICY AND PURPOSE.

       ``(a) Policy.--It is the policy of the United States that, 
     in order to ensure equal educational opportunity for all 
     children and youth, and to promote educational excellence, 
     the Federal Government should--
       ``(1) assist States and, through the States, 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;
       ``(2) hold States and, through the States, local 
     educational agencies and schools accountable for increases in 
     English proficiency and core content knowledge among limited 
     English proficient students; and
       ``(3) promote parental and community participation in 
     programs for limited English proficient students.
       ``(b) Purposes.--The purposes of this part are--
       ``(1) to assist all limited English proficient students, 
     including recent immigrant students, to attain English 
     proficiency as quickly and as effectively as possible;
       ``(2) to assist all limited English proficient students, 
     including recent immigrant students, to achieve at high 
     levels in the core academic subjects so that those students 
     can meet the same challenging State content and student 
     performance standards as all students are expected to meet, 
     as required by section 1111(b)(1); and
       ``(3) to provide the assistance described in paragraphs (1) 
     and (2) by--
       ``(A) streamlining language instruction educational 
     programs into a program carried out through performance-based 
     grants for State and local educational agencies to help 
     limited English proficient students, including recent 
     immigrant students, develop proficiency in English as quickly 
     and as effectively as possible, while meeting State content 
     and student performance standards as required by section 
     1111(b)(1);
       ``(B) requiring States and, through the States, local 
     educational agencies and schools to--
       ``(i) demonstrate improvements in the English proficiency 
     of limited English proficient students each fiscal year; and
       ``(ii) make adequate yearly progress with limited English 
     proficient students, including recent immigrant students, as 
     described in section 1111(b)(2); and
       ``(C) providing State educational agencies and local 
     educational agencies with the flexibility to implement the 
     instructional programs, tied to scientifically based 
     research, that the agencies believe to be the most effective 
     for teaching English.

     ``SEC. 3322. DEFINITIONS.

       ``Except as otherwise provided, in this part:
       ``(1) Core academic subjects.--The term `core academic 
     subjects' has the meaning given the term in section 2102.
       ``(2) Immigrant children and youth.--The term `immigrant 
     children and youth' means individuals who--
       ``(A) are aged 3 through 21;
       ``(B) were not born in any State; and
       ``(C) have not been attending 1 or more schools in any 1 or 
     more States for more than 3 full academic years.
       ``(3) Language instruction educational program.--The term 
     `language instruction educational program' means an 
     instructional course--
       ``(A) in which a limited English proficient student is 
     placed for the purpose of developing proficiency in English 
     as quickly and as effectively as possible, while meeting 
     State content and student performance standards as required 
     by section 1111(b)(1); and
       ``(B) which may make instructional use of both English and 
     a student's native language to develop English proficiency as 
     quickly and as effectively as possible, and may include the 
     participation of English proficient students if such course 
     is designed to enable all participating students to become 
     proficient in English and a second language.
       ``(4) Limited english proficient student.--The term 
     `limited English proficient student' 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
       ``(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 opportunity to learn successfully in classrooms 
     where the language of instruction is English; or
       ``(iii) the opportunity to participate fully in society.
       ``(5) Local educational agency.--The term `local 
     educational agency' includes a consortium of such agencies.
       ``(6) Native language.--The term `native language', used 
     with reference to a limited English proficient student, means 
     the language normally used by the parents of the student.
       ``(7) Scientifically based research.--The term 
     `scientifically based research', used with respect to an 
     activity or program authorized under this part, means an 
     activity or program based on specific strategies and 
     implementation of such strategies that, based on sound 
     educational theory, research, and an evaluation (including a 
     comparison of program characteristics), are effective in 
     improving student achievement and performance and other 
     program objectives.

[[Page 7029]]

       ``(8) Specially qualified agency.--The term `specially 
     qualified agency' means a local educational agency in a State 
     that does not participate in a program under this part for a 
     fiscal year.
       ``(9) State.--The term `State' means each of the 50 States 
     of the United States and the District of Columbia.

     ``SEC. 3323. PROGRAM AUTHORIZED.

       ``(a) Grants Authorized.--The Secretary shall award grants, 
     from allotments under subsection (b), to each State having a 
     State plan approved under section 3325(c), to enable the 
     State to help limited English proficient students become 
     proficient in English.
       ``(b) Reservations and Allotments.--
       ``(1) Reservations.--From the amount appropriated under 
     3003(b) to carry out this part for each fiscal year, the 
     Secretary shall reserve--
       ``(A) \1/2\ of 1 percent of such amount for payments to the 
     Secretary of the Interior for activities approved by the 
     Secretary of Education, consistent with this part, in schools 
     operated or supported by the Bureau of Indian Affairs, on the 
     basis of their respective needs;
       ``(B) \1/2\ of 1 percent of such amount for payments to 
     outlying areas, to be allotted in accordance with their 
     respective needs for assistance under this part as determined 
     by the Secretary, for activities, approved by the Secretary, 
     consistent with this part;
       ``(C) \1/2\ of 1 percent of such amount for payments to the 
     Commonwealth of Puerto Rico, for activities, approved by the 
     Secretary, consistent with this part;
       ``(D) 6 percent of such amount to carry out national 
     activities under section 3332; and
       ``(E) such sums as may be necessary to make continuation 
     awards under paragraph (4).
       ``(2) State allotments.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     from the amount appropriated under 3003(b) for any fiscal 
     year that remains after making reservations under paragraph 
     (1), the Secretary shall allot to each State having a State 
     plan approved under section 3325(c)--
       ``(i) an amount that bears the same relationship to 67 
     percent of the remainder as the number of limited English 
     proficient students in the State bears to the number of such 
     students in all States; and
       ``(ii) an amount that bears the same relationship to 33 
     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 shall receive an 
     allotment under this paragraph that is less than \1/2\ of 1 
     percent of the amount available for allotments under this 
     paragraph.
       ``(3) Data.--For purposes of 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, 
     which may include--
       ``(A) data available from the Bureau of the Census; or
       ``(B) data submitted to the Secretary by the States.
       ``(4) Continuation awards.--
       ``(A) In general.--Before making allotments to States under 
     paragraph (2) for any fiscal year, the Secretary shall use 
     the sums reserved under paragraph (1)(E) to make continuation 
     awards to recipients who received grants or fellowships for 
     the fiscal year before the first fiscal year described in 
     section 3003(b) under--
       ``(i) subparts 1 and 3 of part A of title VII (as in effect 
     on the day before the effective date of the Better Education 
     for Students and Teachers Act); or
       ``(ii) subparts 1 and 3 of part A.
       ``(B) Use of funds.--The Secretary shall make the grants in 
     order to allow such recipients to receive awards for the 
     complete period of their grants or fellowships under the 
     appropriate subparts.
       ``(c) Direct Awards to Specially Qualified Agencies.--
       ``(1) Nonparticipating state.--If a State educational 
     agency chooses not to participate in a program under this 
     part for a fiscal year, or fails to submit an approvable 
     application under section 3325 for a fiscal year, a specially 
     qualified agency in such State desiring a grant under this 
     part for the fiscal year shall apply directly to the 
     Secretary to receive a grant under this subsection.
       ``(2) Direct awards.--The Secretary may award, on a 
     competitive basis, the amount the State educational agency is 
     eligible to receive under subsection (b)(2) directly to 
     specially qualified agencies in the State desiring a grant 
     under this part and having an application approved under 
     section 3325(c).
       ``(3) Administrative funds.--A specially qualified agency 
     that receives a direct grant under this subsection may use 
     not more than 1 percent of the grant funds for a fiscal year 
     for the administrative costs of carrying out this part.
       ``(d) Reallotment.--Whenever the Secretary determines that 
     any amount of a payment made to a State or specially 
     qualified agency under this part for a fiscal year will not 
     be used by the State or agency for the purpose for which the 
     payment was made, the Secretary shall, in accordance with 
     such rules as the Secretary determines to be appropriate, 
     make such amount available to other States or specially 
     qualified agencies for carrying out that purpose.

     ``SEC. 3324. WITHIN-STATE ALLOCATIONS.

       ``(a) Grant Awards.--Each State educational agency 
     receiving a grant under this part for a fiscal year shall use 
     a portion equal to at least 95 percent of the agency's 
     allotment under section 3323(b)(2)--
       ``(1) to award grants, from allocations under subsection 
     (b), to local educational agencies in the State to carry out 
     the activities described in section 3327(b); and
       ``(2) to make grants under subsection (c) to local 
     educational agencies in the State that are described in that 
     subsection to carry out the activities described in section 
     3327(c).
       ``(b) Allocation Formula.--
       ``(1) In general.--After making the reservations under 
     subsection (c), each State educational agency receiving a 
     grant under section 3323(b)(2) shall award grants for a 
     fiscal year by allocating to each local educational agency in 
     the State having a plan approved under section 3326 an amount 
     that bears the same relationship to the portion described in 
     subsection (a)(1) and remaining after the reservations as the 
     population of limited English proficient students in schools 
     served by the local educational agency bears to the 
     population of limited English proficient students in schools 
     served by all local educational agencies in the State.
       ``(2) Amount of grants.--A State shall not award a grant 
     from an allocation made under this subsection in an amount of 
     less than $10,000.
       ``(c) Reservations.--
       ``(1) Grants to local educational agencies that experience 
     substantial increases in immigrant children and youth.--
       ``(A) In general.--A State educational agency receiving a 
     grant under this part for a fiscal year shall reserve a 
     portion equal to 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 experience a 
     substantial increase in the number of immigrant children and 
     youth enrolled in public elementary schools and secondary 
     schools under the jurisdiction of the agencies.
       ``(B) Substantial increase.--For the purpose of this 
     paragraph, the term `substantial increase', used with respect 
     to the number of immigrant children and youth enrolled in 
     schools for a fiscal year, means--
       ``(i) an increase of not less than 20 percent, or of not 
     fewer than 50 individuals, in the number of such children and 
     youth so enrolled, relative to the preceding year; or
       ``(ii) an increase of not less than 20 percent in such 
     number, relative to the preceding year, in the case of a 
     local educational agency that has limited or no experience in 
     serving limited English proficient students.
       ``(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.
       ``(3) Administrative expenses.--From the amount reserved 
     under paragraph (2), a State educational agency may use not 
     more than 2 percent for the planning costs and administrative 
     costs of carrying out the State activities described in the 
     State plan and providing grants to local educational 
     agencies.

     ``SEC. 3325. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

       ``(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.
       ``(b) Contents.--Each plan submitted under subsection (a) 
     shall--
       ``(1) describe how the State or specially qualified agency 
     will establish standards and benchmarks for 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 content and student 
     performance standards described in section 1111(b)(1);
       ``(2) 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 second language acquisition specialists, 
     in setting the performance objectives; or
       ``(B) specially qualified agency consulted with education-
     related community groups and nonprofit organizations, 
     parents, teachers, and second language acquisition 
     specialists, in setting the performance objectives described 
     in section 3329;
       ``(3) describe how--
       ``(A) in the case of a State educational agency, the State 
     educational agency will hold local educational agencies and 
     elementary schools and secondary schools accountable for--
       ``(i) meeting all performance objectives described in 
     section 3329;

[[Page 7030]]

       ``(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 part develop 
     proficiency in English as quickly and as effectively as 
     possible, while meeting State content and student performance 
     standards as required by section 1111(b)(1); and
       ``(B) in the case of a specially qualified agency, the 
     agency will hold elementary schools and secondary schools 
     accountable for--
       ``(i) meeting all performance 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 part develop 
     proficiency in English as quickly and as effectively as 
     possible, while meeting State content and student performance 
     standards as required by section 1111(b)(1);
       ``(4) in the case of a specially qualified agency, describe 
     the activities for which assistance is sought, and how the 
     activities will increase the effectiveness with which 
     students develop proficiency in English as quickly and as 
     effectively as possible, while meeting State content and 
     student performance standards as required by section 
     1111(b)(1);
       ``(5) in the case of a State educational agency, describe 
     how local educational agencies 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 and has been demonstrated to 
     be effective; and
       ``(B) in the manner the local educational agencies 
     determine to be the most effective; and
       ``(6) describe how--
       ``(A) in the case of a State educational agency, the State 
     educational agency will, if requested--
       ``(i) provide technical assistance to local educational 
     agencies and elementary schools and secondary schools for the 
     purposes of identifying and implementing language instruction 
     educational programs and curricula that are tied to 
     scientifically based research;
       ``(ii) provide technical assistance to local educational 
     agencies and elementary schools and secondary schools for the 
     purposes of helping limited English proficient students meet 
     the same challenging State content standards and challenging 
     State student performance standards as all students are 
     expected to meet;
       ``(iii) provide technical assistance to local educational 
     agencies and elementary schools and secondary schools to 
     identify or develop and implement measures of English 
     language proficiency; and
       ``(iv) provide technical assistance to local educational 
     agencies and elementary schools and secondary schools for the 
     purposes of promoting parental and community participation in 
     programs that serve limited English proficient students; and
       ``(B) in the case of a specially qualified agency, the 
     specially qualified agency will--
       ``(i) provide technical assistance to elementary schools 
     and secondary schools served by the specially qualified 
     agency for the purposes of identifying and implementing 
     programs and curricula that are tied to scientifically based 
     research; and
       ``(ii) provide technical assistance to elementary schools 
     and secondary schools served by the specially qualified 
     agency for the purposes described in clauses (ii), (iii), and 
     (iv) of subparagraph (A).
       ``(c) Approval.--The Secretary, after using a peer review 
     process, shall approve a State plan or a specially qualified 
     agency plan if the plan meets the requirements of this 
     section, and holds reasonable promise of achieving the 
     purposes described in section 3321(b).
       ``(d) Duration of the Plan.--
       ``(1) In general.--Each State plan or specially qualified 
     agency plan shall--
       ``(A) remain in effect for the duration of the State 
     educational agency's or specially qualified agency's 
     participation under this part; and
       ``(B) be periodically reviewed and revised by the State 
     educational agency or specially qualified agency, as 
     necessary, to reflect changes to the State's or specially 
     qualified agency's strategies and programs carried out under 
     this part.
       ``(2) Additional information.--
       ``(A) Significant changes.--If the State educational agency 
     or specially qualified agency makes significant changes to 
     the plan, such as the adoption of new performance objectives 
     or assessment measures, the State educational agency or 
     specially qualified agency shall submit information regarding 
     the significant changes to the Secretary.
       ``(B) Approval.--The Secretary shall approve such changes 
     to an approved plan, unless the Secretary determines that the 
     changes will not result in the State or specially qualified 
     agency meeting the requirements, or fulfilling the purposes, 
     of this part.
       ``(e) Consolidated Plan.--A State plan submitted under 
     subsection (a) may be submitted as part of a consolidated 
     plan under section 5502.
       ``(f) Secretary Assistance.--The Secretary shall provide 
     technical assistance, if requested, in the development of 
     English language development standards and English language 
     proficiency assessments.

     ``SEC. 3326. LOCAL PLANS.

       ``(a) Plan Required.--Each local educational agency 
     desiring a grant from the State educational agency under 
     section 3324 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 how the local educational agency will use 
     the grant funds to meet all performance objectives described 
     in section 3329;
       ``(2) describe how the local educational agency will hold 
     elementary schools and secondary schools accountable for--
       ``(A) meeting the performance objectives;
       ``(B) making adequate yearly progress with limited English 
     proficient students as described in section 1111(b)(2); and
       ``(C) annually measuring the English language proficiency 
     of limited English proficient students, so that such students 
     served by the programs carried out under this part develop 
     proficiency in English as quickly and as effectively as 
     possible, while meeting State content and student performance 
     standards as required by section 1111(b)(1);
       ``(3) describe how the local educational agency will 
     promote parental and community participation in programs for 
     limited English proficient students;
       ``(4) contain an assurance that the local educational 
     agency consulted with teachers (including second language 
     acquisition specialists), 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;
       ``(5) describe how the local educational agency will use 
     the disaggregated results of the student assessments required 
     under section 1111(b)(3), and other measures or indicators 
     available to the agency, to review annually the progress of 
     each school served by the agency under this part and under 
     title I to determine whether the schools are making the 
     adequate yearly progress necessary to ensure that limited 
     English proficient students attending the schools will meet 
     the State's proficient level of performance on the State 
     assessment described in section 1111(b)(3) within 10 years 
     after the date of enactment of the Better Education for 
     Students and Teachers Act; and
       ``(6) describe how language instruction educational 
     programs will ensure that limited English proficient students 
     being served by the programs develop English language 
     proficiency as quickly and as effectively as possible.

     ``SEC. 3327. USES OF FUNDS.

       ``(a) Administrative Expenses.--Each local educational 
     agency receiving grant funds under section 3324(b) for a 
     fiscal year may use, from those grant funds, not more than 1 
     percent of the grant funds the agency receives under section 
     3324 for the fiscal year for the cost of administering this 
     part.
       ``(b) Activities.--Each local educational agency receiving 
     grant funds under section 3324(b)--
       ``(1) shall use the grant funds that are not used under 
     subsection (a)--
       ``(A) to increase limited English proficient students' 
     proficiency in English by providing high-quality language 
     instruction educational programs that are--
       ``(i) tied to scientifically based research demonstrating 
     the effectiveness of the programs in increasing English 
     proficiency; and
       ``(ii) tied to scientifically based research demonstrating 
     the effectiveness of the programs in increasing student 
     performance in the core academic subjects; and
       ``(B) to provide high-quality professional development 
     activities for teachers of limited English proficient 
     students, including teachers in classroom settings that are 
     not the settings of language instruction educational 
     programs, 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) tied to 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; and

[[Page 7031]]

       ``(2) may use the grant funds that are not used under 
     subsection (a) to provide parental and community 
     participation programs that are designed to improve language 
     instruction educational programs for limited English 
     proficient students.
       ``(c) Activities by Agencies Experiencing Substantial 
     Increases in Immigrant Children and Youth.--Each local 
     educational agency receiving grant funds under section 
     3324(c)(1) shall use the grant funds to pay for activities 
     that provide enhanced instructional opportunities for such 
     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) payment of salaries of personnel, including teacher 
     aides who have been specifically trained, or are being 
     trained, to provide services to immigrant children and youth;
       ``(3) provision of tutorials, mentoring, and academic or 
     career counseling for immigrant children and youth;
       ``(4) identification and acquisition of curricular 
     materials, educational software, and technologies to be used 
     in the program carried out with the grant involved; and
       ``(5) basic instructional 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, overhead 
     costs, costs of construction, acquisition, or rental of 
     space, costs of transportation, or such other costs as are 
     directly attributable to such additional basic instructional 
     services.
       ``(d) Supplement Not Supplant.--Funds appropriated to carry 
     out this part shall be used to supplement and not supplant 
     other Federal, State, and local public funds expended to 
     provide services for eligible individuals.

     ``SEC. 3328. PROGRAM REQUIREMENTS.

       ``(a) 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 students.
       ``(b) Teacher English Fluency.--Each local educational 
     agency receiving grant funds under section 3324 shall certify 
     to the State educational agency that all teachers in any 
     language instruction educational program for limited English 
     proficient students funded under this part are fluent in 
     English and any other language used for instruction.

     ``SEC. 3329. PERFORMANCE OBJECTIVES.

       ``(a) In General.--Each State educational agency or 
     specially qualified agency receiving a grant under this part 
     shall develop annual measurable performance objectives that 
     are research-based, and age- and developmentally appropriate, 
     with respect to helping limited English proficient students 
     develop proficiency in English as quickly and as effectively 
     as possible, while meeting State content and student 
     performance standards as required by section 1111(b)(1). For 
     each annual measurable performance objective, the agency 
     shall specify an incremental percentage increase for the 
     objective to be attained for each of the fiscal years (after 
     the first fiscal year) for which the agency receives a grant 
     under this part, relative to the preceding fiscal year, 
     including increases in the number of limited English 
     proficient students demonstrating an increase in performance 
     on annual assessments.
       ``(b) Accountability.--
       ``(1) For states.--Each State educational agency receiving 
     a grant under this part shall be held accountable for meeting 
     the annual measurable performance objectives under this part 
     and the adequate yearly progress levels for limited English 
     proficient students under section 1111(b)(2)(B). Any State 
     educational agency that fails to meet the annual performance 
     objectives shall be subject to sanctions under section 6202.
       ``(2) For specially qualified agencies.--Each specially 
     qualified agency receiving a grant under this part shall be 
     held accountable for meeting annual measurable performance 
     objectives, be held accountable for making yearly progress, 
     and be subject to sanctions, in a manner that the Secretary 
     determines is appropriate and comparable to the manner used 
     for State educational agencies specified in paragraph (1).

     ``SEC. 3330. REGULATIONS AND NOTIFICATION.

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

     ``SEC. 3331. ADMINISTRATION.

       ``(a) State and Local Programs.--This part shall be in 
     effect only in a fiscal year described in section 3003(b).
       ``(b) Other law.--In such a fiscal year--
       ``(1) parts A, C, D (other than section 3404) and E shall 
     not be in effect; and
       ``(2) section 3404 shall apply only with respect to grants 
     provided and activities carried out under part B and this 
     part.
       ``(c) References.--In such a fiscal year, references in 
     Federal law to part A shall be considered to be references to 
     this part.

     ``SEC. 3332. NATIONAL LEADERSHIP ACTIVITIES TO ENSURE 
                   EDUCATIONAL EXCELLENCE FOR LIMITED ENGLISH 
                   PROFICIENT STUDENTS.

       ``(a) In General.--The Secretary shall use funds made 
     available under section 3323(b)(1)(D) to carry out each of 
     the activities described in subsections (b) and (c).
       ``(b) National Professional Development Project.--The 
     Secretary shall 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 students and 
     assist educational personnel working with such students to 
     meet high professional standards, including standards for 
     certification and licensure as bilingual education teachers. 
     Grants awarded under this subsection may be used--
       ``(1) for inservice professional development programs that 
     serve teachers, administrators, pupil services personnel, and 
     other educational personnel who are either involved in, or 
     preparing to be involved in, a language instruction 
     educational program;
       ``(2) 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;
       ``(3) for the development of curricula appropriate to the 
     needs of the consortia participants involved; and
       ``(4) for financial assistance and costs related to 
     tuition, fees, and books for enrolling

[[Page 7032]]

     in courses required to complete the degree involved, and meet 
     certification or licensing requirements for bilingual 
     education teachers.
       ``(c) National Clearinghouse.--The Secretary shall 
     establish and support the operation of a National 
     Clearinghouse for Bilingual Education, 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 database management and monitoring system 
     for improving the operation and effectiveness of federally 
     funded language instruction educational programs;
       ``(4) disseminate information on best practices related 
     to--
       ``(A) the development of accountability systems that 
     monitor the academic progress of limited English proficient 
     students in language instruction educational programs; and
       ``(B) the development of standards and English language 
     proficiency assessments for language instruction educational 
     programs;
       ``(5) develop, maintain, and disseminate a listing, by 
     geographical area, of education professionals, parents, 
     teachers, administrators, community members, and others, who 
     are native speakers of languages other than English, for use 
     as a resource by local educational agencies and schools in 
     the development and implementation of language instruction 
     educational programs; and
       ``(6) publish, on an annual basis, a list of grant 
     recipients under this section.

                        ``PART E--ADMINISTRATION

     ``SEC. 3401. RELEASE TIME.

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

     ``SEC. 3402. EDUCATION TECHNOLOGY.

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

     ``SEC. 3403. NOTIFICATION.

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

     ``SEC. 3404. CONTINUED ELIGIBILITY.

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

     ``SEC. 3405. COORDINATION AND REPORTING REQUIREMENTS.

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

                      ``PART F--GENERAL PROVISIONS

     ``SEC. 3501. DEFINITIONS.

       ``Except as otherwise provided, in this title:
       ``(1) Bilingual education program.--The term `bilingual 
     education program' means an educational program for limited 
     English proficient students that--
       ``(A) makes instructional use of both English and a 
     student's native language;
       ``(B) enables limited English proficient students to 
     achieve English proficiency and academic mastery of subject 
     matter content and higher order skills, including critical 
     thinking, so as to meet age-appropriate grade-promotion and 
     graduation standards;
       ``(C) may also develop the native language skills of 
     limited English proficient students, or ancestral language 
     skills of American Indians (within the meaning of part A of 
     title VII), Alaska Natives (as defined in section 7306), 
     Native Hawaiians (as defined in section 7207), and native 
     residents of the outlying areas; and
       ``(D) may include the participation of English proficient 
     students if such program is designed to enable all enrolled 
     students to become proficient in English and a second 
     language.
       ``(2) Children and youth.--The term `children and youth' 
     means individuals aged 3 through 21.
       ``(3) Community-based organization.--The term `community-
     based organization' means a private nonprofit organization of 
     demonstrated effectiveness or Indian tribe or tribally 
     sanctioned educational authority (as such terms are defined 
     in section 3004) that is representative of a community or 
     significant segments of a community and that provides 
     educational or related services to individuals in the 
     community. Such term includes Native Hawaiian organizations 
     including Native Hawaiian Educational Organizations as such 
     term is defined in section 4009 of the Augustus F. Hawkins-
     Robert T. Stafford Elementary and Secondary School 
     Improvement Amendments of 1988, as such section was in effect 
     on the day preceding the date of enactment of the Improving 
     America's Schools Act of 1994.
       ``(4) Community college.--The term `community college' 
     means an institution of higher education as defined in 
     section 101 of the Higher Education Act of 1965 that provides 
     not less than a 2-year program that is acceptable for full 
     credit toward a bachelor's degree, including institutions 
     receiving assistance under the Tribally Controlled College or 
     University Assistance Act of 1978.
       ``(5) Director.--The term `Director' means the Director of 
     the Office of Bilingual Education and Minority Languages 
     Affairs established under section 209 of the Department of 
     Education Organization Act.
       ``(6) Family education program.--
       ``(A) In general.--The term `family education program' 
     means a bilingual education or special alternative 
     instructional program that--
       ``(i) is designed--

       ``(I) to help limited English proficient adults and out-of-
     school youths achieve proficiency in the English language; 
     and
       ``(II) to provide instruction on how parents and family 
     members can facilitate the educational achievement of their 
     children;

       ``(ii) when feasible, uses instructional programs such as 
     the models developed under the Even Start Family Literacy 
     Programs, which promote adult literacy and train parents to 
     support the educational growth of their children, the Parents 
     as Teachers Program, and the Home Instruction Program for 
     Preschool Youngsters; and
       ``(iii) gives preference to participation by parents and 
     immediate family members of children attending school.
       ``(B) Instruction for higher education and employment.--
     Such term may include programs that provide instruction to 
     facilitate higher education and employment outcomes.
       ``(7) Immigrant children and youth.--The term `immigrant 
     children and youth' means individuals who--
       ``(A) are aged 3 through 21;
       ``(B) were not born in any State; and
       ``(C) have not been attending 1 or more schools in any 1 or 
     more States for more than 3 full academic years.
       ``(8) Limited english proficiency and limited english 
     proficient.--The terms `limited English proficiency' and 
     `limited English proficient', when used with reference to an 
     individual, mean an individual--
       ``(A)(i) who was not born in the United States, or whose 
     native language is a language other than English, and who 
     comes

[[Page 7033]]

     from an environment where a language other than English is 
     dominant;
       ``(ii) who is a Native American or Alaska Native, or is a 
     native resident of the outlying areas, and comes from an 
     environment where a language other than English has had a 
     significant impact on such individual's level of English 
     language proficiency; or
       ``(iii) who is migratory, whose native language is a 
     language other than English, and who comes from an 
     environment where a language other than English is dominant; 
     and
       ``(B) who has sufficient difficulty speaking, reading, 
     writing, or understanding the English language and whose 
     difficulties may deny such individual the opportunity to 
     learn successfully in classrooms where the language of 
     instruction is English or to participate fully in society.
       ``(9) Native american and native american language.--The 
     terms `Native American' and `Native American language' shall 
     have the meanings given such terms in section 103 of the 
     Native American Languages Act.
       ``(10) Native hawaiian or native american pacific islander 
     native language educational organization.--The term `Native 
     Hawaiian or Native American Pacific Islander native language 
     educational organization' means a nonprofit organization with 
     a majority of its governing board and employees consisting of 
     fluent speakers of the traditional Native American languages 
     used in the organization's educational programs and with not 
     less than 5 years successful experience in providing 
     educational services in traditional Native American 
     languages.
       ``(11) Native language.--The term `native language', when 
     used with reference to an individual of limited English 
     proficiency, means the language normally used by such 
     individual, or in the case of a child or youth, the language 
     normally used by the parents of the child or youth.
       ``(12) Office.--The term `Office' means the Office of 
     Bilingual Education and Minority Languages Affairs.
       ``(13) Other programs for persons of limited english 
     proficiency.--The term `other programs for persons of limited 
     English proficiency' means any other programs administered by 
     the Secretary that serve persons of limited English 
     proficiency.
       ``(14) Paraprofessional.--The term `paraprofessional' means 
     an individual who is employed in a preschool, elementary 
     school, or secondary school under the supervision of a 
     certified or licensed teacher, including individuals employed 
     in bilingual education, special education and migrant 
     education.
       ``(15) Special alternative instructional program.--The term 
     `special alternative instructional program' means an 
     educational program for limited English proficient students 
     that--
       ``(A) utilizes specially designed English language 
     curricula and services but does not use the student's native 
     language for instructional purposes;
       ``(B) enables limited English proficient students to 
     achieve English proficiency and academic mastery of subject 
     matter content and higher order skills, including critical 
     thinking, so as to meet age-appropriate grade-promotion and 
     graduation standards; and
       ``(C) is particularly appropriate for schools where the 
     diversity of the limited English proficient students' native 
     languages and the small number of students speaking each 
     respective language makes bilingual education impractical and 
     where there is a critical shortage of bilingual education 
     teachers.

     ``SEC. 3502. REGULATIONS AND NOTIFICATION.

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

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

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

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

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

                         ``PART A--STATE GRANTS

     ``SEC. 4001. SHORT TITLE.

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

     ``SEC. 4002. FINDINGS.

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

     ``SEC. 4003. PURPOSE.

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

[[Page 7034]]

       ``(4) public and private nonprofit organizations to provide 
     technical assistance, conduct training, demonstrations, and 
     evaluation, and to provide supplementary services and 
     community mobilization activities for the prevention of drug 
     use and violence among students and youth.

     ``SEC. 4004. FUNDING.

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

  ``Subpart 1--State Grants for Drug and Violence Prevention Programs

     ``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

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

     ``SEC. 4112. STATE APPLICATIONS.

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

[[Page 7035]]

     and contain such information as the Secretary may specify in 
     regulations. The purpose of such interim application and plan 
     shall be to afford the State the opportunity to fully develop 
     and review such State's application and comprehensive plan 
     otherwise required by this section. A State may not receive a 
     grant under this subpart for a fiscal year subsequent to 
     fiscal year 2002 unless the Secretary has approved such 
     State's application and comprehensive plan in accordance with 
     this subpart.

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

       ``(a) Use of Funds.--An amount equal to 80 percent of the 
     total amount allocated to a State under section 4111 for each 
     fiscal year shall be used by the State educational agency and 
     its local educational agencies for drug and violence 
     prevention activities in accordance with this section.
       ``(b) State Level Programs.--
       ``(1) In general.--A State educational agency shall use not 
     more than 5 percent of the amount available under subsection 
     (a) for activities such as--
       ``(A) voluntary training and technical assistance 
     concerning drug and violence prevention for local educational 
     agencies and educational service agencies, including 
     teachers, administrators, coaches and athletic directors, 
     other staff, parents, students, community leaders, health 
     service providers, local law enforcement officials, and 
     judicial officials;
       ``(B) the development, identification, dissemination, and 
     evaluation of the most readily available, accurate, and up-
     to-date drug and violence prevention curriculum materials 
     (including videotapes, software, and other technology-based 
     learning resources), for consideration by local educational 
     agencies;
       ``(C) making available to local educational agencies cost 
     effective scientifically based research programs for youth 
     violence and drug abuse prevention;
       ``(D) demonstration projects in drug and violence 
     prevention, including service-learning projects;
       ``(E) training, technical assistance, and demonstration 
     projects to address violence associated with prejudice and 
     intolerance;
       ``(F) training, technical assistance and demonstration 
     projects to address the impact of family violence on school 
     violence and substance abuse;
       ``(G) financial assistance to enhance resources available 
     for drug and violence prevention in areas serving large 
     numbers of economically disadvantaged children or sparsely 
     populated areas, or to meet other special needs consistent 
     with the purposes of this subpart; and
       ``(H) the evaluation of activities carried out within the 
     State under this part.
       ``(2) Special rule.--A State educational agency may carry 
     out activities under this subsection directly, or through 
     grants or contracts.
       ``(c) State Administration.--
       ``(1) In general.--A State educational agency may use not 
     more than 5 percent of the amount reserved under subsection 
     (a) for the administrative costs of carrying out its 
     responsibilities under this part.
       ``(2) Uniform management information and reporting 
     system.--In carrying out its responsibilities under this 
     part, a State shall implement a uniform management 
     information and reporting system that includes information on 
     the types of curricula, programs and services provided by the 
     State, Governor, local education agencies, and other 
     recipients of funds under this title.
       ``(d) Local Educational Agency Programs.--
       ``(1) In general.--A State educational agency shall 
     distribute not less than 91 percent of the amount made 
     available under subsection (a) for each fiscal year to local 
     educational agencies in accordance with this subsection.
       ``(2) Distribution.--A State educational agency shall 
     distribute amounts under paragraph (1) in accordance with any 
     one of the following subparagraphs:
       ``(A) Enrollment and combination approach.--Of the amount 
     distributed under paragraph (1), a State educational agency 
     shall distribute--
       ``(i) at least 70 percent of such amount to local 
     educational agencies, based on the relative enrollments in 
     public and private nonprofit elementary and secondary schools 
     within the boundaries of such agencies; and
       ``(ii) not to exceed 30 percent of any amounts remaining 
     after amounts are distributed under clause (i)--

       ``(I) to each local educational agency in an amount 
     determined appropriate by the State educational agency; or
       ``(II) to local educational agencies that the State 
     education agency determines have the greatest need for 
     additional funds to carry out drug and violence prevention 
     programs authorized by this subpart.

       ``(B) Competitive and need approach.--Of the amount 
     distributed under paragraph (1), a State educational agency 
     shall distribute--
       ``(i) not to exceed 70 percent of such amount to local 
     educational agencies that the State agency determines, 
     through a competitive process, have the greatest need for 
     funds to carry out drug and violence prevention programs 
     based on criteria established by the State agency and 
     authorized under this subpart; and
       ``(ii) at least 30 percent of any amounts remaining after 
     amounts are distributed under clause (i) to local educational 
     agencies that the State agency determines have a need for 
     additional funds to carry out the program authorized under 
     this subpart.
       ``(3) Consideration of objective data.--For purposes of 
     paragraph (2), in determining which local educational 
     agencies have the greatest need for funds, the State 
     educational agency shall consider objective data which may 
     include--
       ``(A) high or increasing rates of alcohol or drug use among 
     youth;
       ``(B) high or increasing rates of victimization of youth by 
     violence and crime;
       ``(C) high or increasing rates of arrests and convictions 
     of youth for violent or drug- or alcohol-related crime;
       ``(D) the extent of illegal gang activity;
       ``(E) high or increasing incidence of violence associated 
     with prejudice and intolerance;
       ``(F) high or increasing rates of referrals of youths to 
     drug and alcohol abuse treatment and rehabilitation programs;
       ``(G) high or increasing rates of referrals of youths to 
     juvenile court;
       ``(H) high or increasing rates of expulsions and 
     suspensions of students from schools;
       ``(I) high or increasing rates of reported cases of child 
     abuse and domestic violence; and
       ``(J) high or increasing rates of drug related emergencies 
     or deaths.
       ``(e) Reallocation of Funds.--If a local educational agency 
     chooses not to apply to receive the amount allocated to such 
     agency under subsection (d), or if such agency's application 
     under section 4115 is disapproved by the State educational 
     agency, the State educational agency shall reallocate such 
     amount to one or more of its other local educational 
     agencies.
       ``(f) Return of Funds to State Educational Agency; 
     Reallocation.--
       ``(1) Return.--Except as provided in paragraph (2), upon 
     the expiration of the 1-year period beginning on the date 
     that a local educational agency or educational service agency 
     under this title receives its allocation under this title--
       ``(A) such agency shall return to the State educational 
     agency any funds from such allocation that remain 
     unobligated; and
       ``(B) the State educational agency shall reallocate any 
     such amount to local educational agencies or educational 
     service agencies that have plans for using such amount for 
     programs or activities on a timely basis.
       ``(2) Reallocation.--In any fiscal year, a local 
     educational agency, may retain for obligation in the 
     succeeding fiscal year--
       ``(A) an amount equal to not more than 25 percent of the 
     allocation it receives under this title for such fiscal year; 
     or
       ``(B) upon a demonstration of good cause by such agency or 
     consortium, a greater amount approved by the State 
     educational agency.

     ``SEC. 4114. GOVERNOR'S PROGRAMS.

       ``(a) Use of Funds.--
       ``(1) In general.--An amount equal to 20 percent of the 
     total amount allocated to a State under section 4111(b)(1) 
     for each fiscal year shall be used by the chief executive 
     officer of such State for drug and violence prevention 
     programs and activities in accordance with this section.
       ``(2) Administrative costs.--A chief executive officer may 
     use not more than 5 percent of the 20 percent described in 
     paragraph (1) for the administrative costs incurred in 
     carrying out the duties of such officer under this section. 
     The chief executive officer of a State may use amounts under 
     this paragraph to award grants to State, county, or local law 
     enforcement agencies, including district attorneys, in 
     consultation with local education agencies or community-based 
     agencies, for the purposes of carrying out drug abuse and 
     violence prevention activities.
       ``(b) State plan.--Amounts shall be used under this section 
     in accordance with a State plan submitted by the chief 
     executive office of the State. Such State plan shall 
     contain--
       ``(1) an objective analysis of the current use (and 
     consequences of such use) of alcohol, tobacco, and 
     controlled, illegal, addictive or harmful substances as well 
     as the violence, safety, and discipline problems among 
     students who attend schools in the State (including private 
     school students who participate in the States's drug and 
     violence prevention programs) that is based on ongoing local 
     assessment or evaluation activities;
       ``(2) an analysis, based on data reasonably available at 
     the time, of the prevalence of risk factors, including high 
     or increasing rates of reported cases of child abuse and 
     domestic violence, or protective factors, buffers or assets 
     or other scientifically based research variables in schools 
     and communities in the State;
       ``(3) a description of the scientifically based research 
     strategies and programs, which shall be used to prevent or 
     reduce drug use, violence, or disruptive behavior, which 
     shall include--
       ``(A) a specification of the objectively measurable goals, 
     objectives, and activities for the program;

[[Page 7036]]

       ``(B) a specification for how risk factors, if any, which 
     have been identified will be targeted through scientifically 
     based research programs; and
       ``(C) a specification for how protective factors, buffers, 
     or assets, if any, will be targeted through scientifically 
     based research programs;
       ``(4) a specification for the method or methods by which 
     measurements of program goals will be achieved; and
       ``(5) a specification for how the evaluation of the 
     effectiveness of the prevention program will be assessed and 
     how the results will be used to refine, improve, and 
     strengthen the program.
       ``(c) Programs Authorized.--
       ``(1) In general.--A chief executive officer shall use 
     funds made available under subsection (a)(1) directly for 
     grants to or contracts with parent groups, schools, community 
     action and job training agencies, community-based 
     organizations, community anti-drug coalitions, law 
     enforcement education partnerships, and other public entities 
     and private nonprofit organizations and consortia thereof. In 
     making such grants and contracts, a chief executive officer 
     shall give priority to programs and activities described in 
     subsection (d) for--
       ``(A) children and youth who are not normally served by 
     State or local educational agencies; or
       ``(B) populations that need special services or additional 
     resources (such as preschoolers, youth in juvenile detention 
     facilities, runaway or homeless children and youth, pregnant 
     and parenting teenagers, and school dropouts).
       ``(2) Peer review.--Grants or contracts awarded under this 
     subsection shall be subject to a peer review process.
       ``(d) Authorized Activities.--Grants and contracts under 
     subsection (c) shall be used to carry out the comprehensive 
     State plan as required under section 4112(a)(1) through 
     programs and activities such as--
       ``(1) disseminating information about drug and violence 
     prevention;
       ``(2) the voluntary training of parents, law enforcement 
     officials, judicial officials, social service providers, 
     health service providers and community leaders about drug and 
     violence prevention, health education (as it relates to drug 
     and violence prevention), domestic violence and child abuse 
     education (as it relates to drug and violence prevention), 
     early intervention, pupil services, or rehabilitation 
     referral;
       ``(3) developing and implementing comprehensive, community-
     based drug and violence prevention programs that link 
     community resources with schools and integrate services 
     involving education, vocational and job skills training and 
     placement, law enforcement, health, mental health, family 
     violence prevention, community service, service-learning, 
     mentoring, and other appropriate services;
       ``(4) planning and implementing drug and violence 
     prevention activities that coordinate the efforts of State 
     agencies with efforts of the State educational agency and its 
     local educational agencies;
       ``(5) activities to protect students traveling to and from 
     school;
       ``(6) before-and-after school recreational, instructional, 
     cultural, and artistic programs that encourage drug- and 
     violence-free lifestyles;
       ``(7) activities that promote the awareness of and 
     sensitivity to alternatives to violence through courses of 
     study that include related issues of intolerance and hatred 
     in history;
       ``(8) developing and implementing activities to prevent and 
     reduce violence associated with prejudice and intolerance;
       ``(9) developing and implementing activities to prevent and 
     reduce dating violence;
       ``(10) developing and implementing strategies to prevent 
     illegal gang activity;
       ``(11) coordinating and conducting school and community-
     wide violence and safety and drug abuse assessments and 
     surveys;
       ``(12) service-learning projects that encourage drug- and 
     violence-free lifestyles;
       ``(13) evaluating programs and activities assisted under 
     this section;
       ``(14) developing and implementing community mobilization 
     activities to undertake environmental change strategies 
     related to substance abuse and violence; and
       ``(15) partnerships between local law enforcement agencies, 
     including district attorneys, and local education agencies or 
     community-based agencies.

     ``SEC. 4115. LOCAL APPLICATIONS.

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

[[Page 7037]]

     the extent to which the proposed plan provides a thorough 
     assessment of the substance abuse and violence problem, uses 
     objective data and the knowledge of a wide range of community 
     members, develops measurable goals and objectives, and 
     implements scientifically based research programs that have 
     been shown to be effective and meet identified needs.
       ``(B) Disapproval.--A State educational agency may 
     disapprove a local educational agency application under this 
     section in whole or in part and may withhold, limit, or place 
     restrictions on the use of funds allotted to such a local 
     educational agency in a manner the State educational agency 
     determines will best promote the purposes of this part, 
     except that a local educational agency shall be afforded an 
     opportunity to appeal any such disapproval.

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

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

     ``SEC. 4117. EVALUATION AND REPORTING.

       ``(a) Impact Evaluation.--
       ``(1) Biennial evaluation.--The Secretary, in consultation 
     with the National Advisory Committee, shall conduct an 
     independent biennial evaluation of the impact of programs 
     assisted under this subpart and of other recent and new 
     initiatives to combat violence in schools. The evaluation 
     shall report on--

[[Page 7038]]

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

     ``SEC. 4118. PROGRAMS FOR NATIVE HAWAIIANS.

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

                     ``Subpart 2--National Programs

     ``SEC. 4121. FEDERAL ACTIVITIES.

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

     ``SEC. 4122. NATIONAL COORDINATOR PROGRAM.

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

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

       ``(a) Establishment.--
       ``(1) In general.--There is hereby established an advisory 
     committee to be known as the `Safe and Drug Free Schools and 
     Communities Advisory Committee' (referred to in this section 
     as the `Advisory Committee') to--
       ``(A) consult with the Secretary under subsection (b);
       ``(B) coordinate Federal school- and community-based 
     substance abuse and violence prevention programs and reduce 
     duplicative research or services;

[[Page 7039]]

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

     ``SEC. 4124. HATE CRIME PREVENTION.

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

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

       ``(a) Grants Authorized.--
       ``(1) Authority.--The Secretary is authorized to award 
     grants and contracts to elementary schools and secondary 
     schools that work with experts to enable the elementary 
     schools and secondary schools--
       ``(A) to provide training to school administrators, 
     faculty, and staff, with respect to issues concerning 
     children experiencing domestic violence in dating 
     relationships and witnessing domestic violence, and the 
     impact of the violence described in this subparagraph on 
     children;
       ``(B) to provide educational programming to students 
     regarding domestic violence and the impact of experiencing or 
     witnessing domestic violence on children;
       ``(C) to provide support services for students and school 
     personnel for the purpose of developing and strengthening 
     effective prevention and intervention strategies with respect 
     to issues concerning children experiencing domestic violence 
     in dating relationships and witnessing domestic violence, and 
     the impact of the violence described in this subparagraph on 
     children; and
       ``(D) to develop and implement school system policies 
     regarding appropriate, safe responses identification and 
     referral procedures for students who are experiencing or 
     witnessing domestic violence.
       ``(2) Award basis.--The Secretary shall award grants and 
     contracts under this section--
       ``(A) on a competitive basis; and
       ``(B) in a manner that ensures that such grants and 
     contracts are equitably distributed throughout a State among 
     elementary schools and secondary schools located in rural, 
     urban, and suburban areas in the State.
       ``(3) Policy dissemination.--The Secretary shall 
     disseminate to elementary schools and secondary schools any 
     Department of Education policy guidance regarding the 
     prevention of domestic violence and the impact of 
     experiencing or witnessing domestic violence on children.
       ``(b) Uses of Funds.--Funds provided under this section may 
     be used for the following purposes:
       ``(1) To provide training for elementary school and 
     secondary school administrators, faculty, and staff that 
     addresses issues concerning elementary school and secondary 
     school students who experience domestic violence in dating 
     relationships or witness or experience family violence, and 
     the impact of such violence on the students.
       ``(2) To provide education programs for elementary school 
     and secondary school students that are developmentally 
     appropriate for the students' grade levels and are designed 
     to meet any unique cultural and language needs of the 
     particular student populations.
       ``(3) To develop and implement elementary school and 
     secondary school system policies

[[Page 7040]]

     regarding appropriate, safe responses, identification and 
     referral procedures for students who are experiencing or 
     witnessing domestic violence and to develop and implement 
     policies on reporting and referral procedures for these 
     students.
       ``(4) To provide the necessary human resources to respond 
     to the needs of elementary school and secondary school 
     students and personnel who are faced with the issue of 
     domestic violence, such as a resource person who is either 
     on-site or on-call, and who is an expert.
       ``(5) To provide media center materials and educational 
     materials to elementary schools and secondary schools that 
     address issues concerning children who experience domestic 
     violence in dating relationships and witness domestic 
     violence, and the impact of the violence described in this 
     paragraph on the children.
       ``(6) To conduct evaluations to assess the impact of 
     programs and policies assisted under this section in order to 
     enhance the development of the programs.
       ``(c) Confidentiality.--Policies, programs, training 
     materials, and evaluations developed and implemented under 
     subsection (b) shall address issues of safety and 
     confidentiality for the victim and the victim's family in a 
     manner consistent with applicable Federal and State laws.
       ``(d) Application.--
       ``(1) In general.--To be eligible to be awarded a grant or 
     contract under this section for any fiscal year, an 
     elementary school or secondary school, in consultation with 
     an expert, shall submit an application to the Secretary at 
     such time and in such manner as the Secretary shall 
     prescribe.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall--
       ``(A) describe the need for funds provided under the grant 
     or contract and the plan for implementation of any of the 
     activities described in subsection (b);
       ``(B) describe how the experts shall work in consultation 
     and collaboration with the elementary school or secondary 
     school;
       ``(C) provide measurable goals for and expected results 
     from the use of the funds provided under the grant or 
     contract; and
       ``(D) incorporate appropriate remuneration for 
     collaborating partners.
       ``(e) Applicability.--The provisions of this part (other 
     than this section) shall not apply to this section.
       ``(f) Definitions.--In this section:
       ``(1) Domestic violence.--The term `domestic violence' has 
     the meaning given that term in section 2003 of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3796gg-2)).
       ``(2) Experts.--The term `experts' means--
       ``(A) experts on domestic violence, sexual assault, and 
     child abuse from the educational, legal, youth, mental 
     health, substance abuse, and victim advocacy fields; and
       ``(B) State and local domestic violence coalitions and 
     community-based youth organizations.
       ``(3) Witness domestic violence.--
       ``(A) In general.--The term `witness domestic violence' 
     means to witness--
       ``(i) an act of domestic violence that constitutes actual 
     or attempted physical assault; or
       ``(ii) a threat or other action that places the victim in 
     fear of domestic violence.
       ``(B) Witness.--In subparagraph (A), the term `witness' 
     means to--
       ``(i) directly observe an act, threat, or action described 
     in subparagraph (A), or the aftermath of that act, threat, or 
     action; or
       ``(ii) be within earshot of an act, threat, or action 
     described in subparagraph (A), or the aftermath of that act, 
     threat, or action.

                    ``Subpart 3--General Provisions

     ``SEC. 4131. DEFINITIONS.

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

     ``SEC. 4132. MATERIALS.

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

     ``SEC. 4133. PROHIBITED USES OF FUNDS.

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

     ``SEC. 4134. QUALITY RATING.

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

[[Page 7041]]

     State that has received a quality program school designation 
     in accordance with this section.''.

     SEC. 402. GUN-FREE REQUIREMENTS.

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

                        ``PART B--GUN POSSESSION

     ``SEC. 4201. GUN-FREE REQUIREMENTS.

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

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

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

     SEC. 403. SCHOOL SAFETY AND VIOLENCE PREVENTION.

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

            ``PART C--SCHOOL SAFETY AND VIOLENCE PREVENTION

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

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

     ``SEC. 4302. SCHOOL UNIFORMS.

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

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

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

     SEC. 404. ENVIRONMENTAL TOBACCO SMOKE.

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

                 ``PART D--ENVIRONMENTAL TOBACCO SMOKE

     ``SEC. 4401. SHORT TITLE.

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

     ``SEC. 4402. DEFINITIONS.

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

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

       ``(a) Prohibition.--After the date of enactment of the 
     Better Education for Students and Teachers Act, no person 
     shall permit smoking within any indoor facility owned or 
     leased or contracted for, and utilized, by such person for 
     provision of routine or regular kindergarten, elementary, or 
     secondary education or library services to children.
       ``(b) Additional Prohibition.--
       ``(1) In general.--After the date of enactment of the 
     Better Education for Students and Teachers Act, no person 
     shall permit smoking within any indoor facility (or portion 
     of such a facility) owned or leased or contracted for, and 
     utilized by, such person for the provision of regular or 
     routine health care or day care or early childhood 
     development (Head Start) services.

[[Page 7042]]

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

     ``SEC. 4404. PREEMPTION.

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

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

     SEC. 501. PUBLIC SCHOOL CHOICE AND FLEXIBILITY.

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

            ``TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

                     ``PART A--PUBLIC SCHOOL CHOICE

                      ``Subpart 1--Charter Schools

     ``SEC. 5111. PURPOSE.

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

     ``SEC. 5112. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary may award grants to State 
     educational agencies having applications approved pursuant to 
     section 5113 to enable such agencies to conduct a charter 
     school grant program in accordance with this subpart.
       ``(b) Special Rule.--If a State educational agency elects 
     not to participate in the program authorized by this subpart 
     or does not have an application approved under section 5113, 
     the Secretary may award a grant to an eligible applicant that 
     serves such State and has an application approved pursuant to 
     section 5113(c).
       ``(c) Program Periods.--
       ``(1) Grants to states.--Grants awarded to State 
     educational agencies under this subpart shall be awarded for 
     a period of not more than 3 years.
       ``(2) Grants to eligible applicants.--Grants awarded by the 
     Secretary to eligible applicants or subgrants awarded by 
     State educational agencies to eligible applicants under this 
     subpart shall be awarded for a period of not more than 3 
     years, of which the eligible applicant may use--
       ``(A) not more than 18 months for planning and program 
     design;
       ``(B) not more than 2 years for the initial implementation 
     of a charter school; and
       ``(C) not more than 2 years to carry out dissemination 
     activities described in section 5114(f)(6)(B).
       ``(d) Limitation.--A charter school may not receive--
       ``(1) more than one grant for activities described in 
     subparagraphs (A) and (B) of subsection (c)(2); or
       ``(2) more than one grant for activities under subparagraph 
     (C) of subsection (c)(2).
       ``(e) Priority Treatment.--
       ``(1) In general.--In awarding grants under this subpart 
     for fiscal year 2002 or any succeeding fiscal year from any 
     funds appropriated under section 5121, the Secretary shall 
     give priority to States to the extent that the States meet 
     the criteria described in paragraph (2) and one or more of 
     the criteria described in subparagraph (A), (B), or (C) of 
     paragraph (3).
       ``(2) Review and evaluation priority criteria.--The 
     criteria referred to in paragraph (1) is that the State 
     provides for periodic review and evaluation by the authorized 
     public

[[Page 7043]]

     chartering agency of each charter school, at least once every 
     5 years unless required more frequently by State law, to 
     determine whether the charter school is meeting the terms of 
     the school's charter, and is meeting or exceeding the 
     academic performance requirements and goals for charter 
     schools as set forth under State law or the school's charter.
       ``(3) Priority criteria.--The criteria referred to in 
     paragraph (1) are the following:
       ``(A) The State has demonstrated progress, in increasing 
     the number of high quality charter schools that are held 
     accountable in the terms of the schools' charters for meeting 
     clear and measurable objectives for the educational progress 
     of the students attending the schools, in the period prior to 
     the period for which a State educational agency or eligible 
     applicant applies for a grant under this subpart.
       ``(B) The State--
       ``(i) provides for one authorized public chartering agency 
     that is not a local educational agency, such as a State 
     chartering board, for each individual or entity seeking to 
     operate a charter school pursuant to such State law; or
       ``(ii) in the case of a State in which local educational 
     agencies are the only authorized public chartering agencies, 
     allows for an appeals process for the denial of an 
     application for a charter school.
       ``(C) The State ensures that each charter school has a high 
     degree of autonomy over the charter school's budgets and 
     expenditures.
       ``(f) Amount Criteria.--In determining the amount of a 
     grant to be awarded under this subpart to a State educational 
     agency, the Secretary shall take into consideration the 
     number of charter schools that are operating, or are approved 
     to open, in the State.

     ``SEC. 5113. APPLICATIONS.

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

     ``SEC. 5114. ADMINISTRATION.

       ``(a) Selection Criteria for State Educational Agencies.--
     The Secretary shall award grants to State educational 
     agencies under this subpart on the basis of the quality of 
     the applications submitted under section 5113(b), after 
     taking into consideration such factors as--
       ``(1) the contribution that the charter schools grant 
     program will make to assisting educationally disadvantaged 
     and other students to achieving State content standards and 
     State student performance standards and, in general, a 
     State's education improvement plan;
       ``(2) the degree of flexibility afforded by the State 
     educational agency to charter schools under the State's 
     charter schools law;
       ``(3) the ambitiousness of the objectives for the State 
     charter school grant program;
       ``(4) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(5) the likelihood that the charter school grant program 
     will meet those objectives and improve educational results 
     for students;
       ``(6) the number of high quality charter schools created 
     under this subpart in the State; and
       ``(7) in the case of State educational agencies that 
     propose to use grant funds to support dissemination 
     activities under section 5112(c)(2)(C), the quality of those 
     activities and the likelihood that those activities will 
     improve student achievement.
       ``(b) Selection Criteria for Eligible Applicants.--The 
     Secretary shall award grants to eligible applicants under 
     this subpart on the basis of the quality of the applications 
     submitted under section 5113(c), after taking into 
     consideration such factors as--
       ``(1) the quality of the proposed curriculum and 
     instructional practices;
       ``(2) the degree of flexibility afforded by the State 
     educational agency and, if applicable, the local educational 
     agency to the charter school;
       ``(3) the extent of community support for the application;
       ``(4) the ambitiousness of the objectives for the charter 
     school;
       ``(5) the quality of the strategy for assessing achievement 
     of those objectives;
       ``(6) the likelihood that the charter school will meet 
     those objectives and improve educational results for 
     students; and
       ``(7) in the case of an eligible applicant that proposes to 
     use grant funds to support dissemination activities under 
     section 5112(c)(2)(C), the quality of those activities and 
     the likelihood that those activities will improve student 
     achievement.

[[Page 7044]]

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

     ``SEC. 5115. NATIONAL ACTIVITIES.

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

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

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

[[Page 7045]]

     the State, in accordance with guidance provided by the 
     Secretary and applicable Federal statutes and regulations, 
     shall ensure that such charter schools that are eligible for 
     the funds described in subsection (a) for such academic year 
     have a full and fair opportunity to receive those funds 
     during the charter schools' first year of operation.

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

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

     ``SEC. 5118. RECORDS TRANSFER.

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

     ``SEC. 5119. PAPERWORK REDUCTION.

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

     ``SEC. 5120. DEFINITIONS.

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

     ``SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``Subpart 2--Magnet Schools Assistance

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

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

     ``SEC. 5132. PROGRAM AUTHORIZED.

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

     ``SEC. 5133. DEFINITION.

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

     ``SEC. 5134. ELIGIBILITY.

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

     ``SEC. 5135. APPLICATIONS AND REQUIREMENTS.

       ``(a) Applications.--An eligible local educational agency 
     or consortium of such agencies desiring to receive assistance 
     under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information and assurances as the Secretary may reasonably 
     require.
       ``(b) Information and Assurances.--Each such application 
     shall include--
       ``(1) a description of--
       ``(A) how assistance made available under this subpart will 
     be used to promote desegregation, including how the proposed 
     magnet

[[Page 7046]]

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

     ``SEC. 5136. PRIORITY.

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

     ``SEC. 5137. USE OF FUNDS.

       ``(a) In General.--Grant funds made available under this 
     subpart may be used by an eligible local educational agency 
     or consortium of such agencies--
       ``(1) for planning and promotional activities directly 
     related to the development, expansion, continuation, or 
     enhancement of academic programs and services offered at 
     magnet schools;
       ``(2) for the acquisition of books, materials, and 
     equipment, including computers and the maintenance and 
     operation thereof, necessary for the conduct of programs in 
     magnet schools;
       ``(3) for the payment, or subsidization of the 
     compensation, of elementary school and secondary school 
     teachers who are certified or licensed by the State, and 
     instructional staff where applicable, who are necessary for 
     the conduct of programs in magnet schools;
       ``(4) with respect to a magnet school program offered to 
     less than the entire student population of a school, for 
     instructional activities that--




       ``(A) are designed to make available the special curriculum 
     that is offered by the magnet school project to students who 
     are enrolled in the school but who are not enrolled in the 
     magnet school program; and
       ``(B) further the purposes of this subpart;
       ``(5) to include professional development, which 
     professional development shall build the agency's or 
     consortium's capacity to operate the magnet school once 
     Federal assistance has terminated;
       ``(6) to enable the local educational agency or consortium 
     to have more flexibility in the administration of a magnet 
     school program in order to serve students attending a school 
     who are not enrolled in a magnet school program; and
       ``(7) to enable the local educational agency or consortium 
     to have flexibility in designing magnet schools for students 
     at all grades.
       ``(b) Special Rule.--Grant funds under this subpart may be 
     used in accordance with paragraphs (2) and (3) of subsection 
     (a) only if the activities described in such paragraphs are 
     directly related to improving the students' reading skills or 
     knowledge of mathematics, science, history, geography, 
     English, foreign languages, art, or music, or to improving 
     vocational, technological and career skills.

     ``SEC. 5138. PROHIBITION.

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

     ``SEC. 5139. LIMITATIONS.

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

     ``SEC. 5140. INNOVATIVE PROGRAMS.

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

     ``SEC. 5141. EVALUATIONS.

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

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

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

[[Page 7047]]

     to award grants to local educational agencies or consortia of 
     such agencies that did not receive a grant under this subpart 
     in the preceding fiscal year.

                   ``Subpart 3--Public School Choice

     ``SEC. 5151. PUBLIC SCHOOL CHOICE.

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

                         ``PART B--FLEXIBILITY

            ``Subpart 1--Education Flexibility Partnerships

     ``SEC. 5201. SHORT TITLE.

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

     ``SEC. 5202. DEFINITIONS.

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

     ``SEC. 5203. EDUCATION FLEXIBILITY PARTNERSHIP.

       ``(a) Educational Flexibility Program.--
       ``(1) Program authorized.--
       ``(A) In general.--The Secretary may carry out an 
     educational flexibility program under which the Secretary 
     authorizes a State educational agency that serves an eligible 
     State to waive statutory or regulatory requirements 
     applicable to one or more programs described in subsection 
     (b), other than requirements described in subsection (c), for 
     any local educational agency or school within the State.
       ``(B) Designation.--Each eligible State participating in 
     the program described in subparagraph (A) shall be known as 
     an `Ed-Flex Partnership State'.
       ``(2) Eligible state.--For the purpose of this section the 
     term `eligible State' means a State that--
       ``(A) has--
       ``(i) developed and implemented the challenging State 
     content standards, challenging State student performance 
     standards, and aligned assessments described in section 
     1111(b), and for which local educational agencies in the 
     State are producing the individual school performance 
     profiles required by section 1116(a)(3); or
       ``(ii)(I) developed and implemented the content standards 
     described in clause (i);
       ``(II) developed and implemented interim assessments; and
       ``(III) made substantial progress (as determined by the 
     Secretary) toward developing and implementing the performance 
     standards and final aligned assessments described in clause 
     (i), and toward having local educational agencies in the 
     State produce the profiles described in clause (i);
       ``(B) holds local educational agencies and schools 
     accountable for meeting the educational goals described in 
     the local applications submitted under paragraph (4), and for 
     engaging in technical assistance and corrective actions 
     consistent with section 1116, for the local educational 
     agencies and schools that do not make adequate yearly 
     progress as described in section 1111(b)(2); and
       ``(C) waives State statutory or regulatory requirements 
     relating to education while holding local educational 
     agencies or schools within the State that are affected by 
     such waivers accountable for the performance of the students 
     who are affected by such waivers.
       ``(3) State application.--
       ``(A) In general.--Each State educational agency desiring 
     to participate in the educational flexibility program under 
     this section shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require. Each such application 
     shall demonstrate that the eligible State has adopted an 
     educational flexibility plan for the State that includes--
       ``(i) a description of the process the State educational 
     agency will use to evaluate applications from local 
     educational agencies or schools requesting waivers of--

       ``(I) Federal statutory or regulatory requirements as 
     described in paragraph (1)(A); and
       ``(II) State statutory or regulatory requirements relating 
     to education;

       ``(ii) a detailed description of the State statutory and 
     regulatory requirements relating to education that the State 
     educational agency will waive;
       ``(iii) a description of clear educational objectives the 
     State intends to meet under the educational flexibility plan;
       ``(iv) a description of how the educational flexibility 
     plan is consistent with and will assist in implementing the 
     State comprehensive reform plan or, if a State does not have 
     a comprehensive reform plan, a description of how the 
     educational flexibility plan is coordinated with activities 
     described in section 1111(b);
       ``(v) a description of how the State educational agency 
     will evaluate, consistent with the requirements of title I, 
     the performance of students in the schools and local 
     educational agencies affected by the waivers; and
       ``(vi) a description of how the State educational agency 
     will meet the requirements of paragraph (8).
       ``(B) Approval and considerations.--The Secretary may 
     approve an application described in subparagraph (A) only if 
     the Secretary determines that such application demonstrates 
     substantial promise of assisting the State educational agency 
     and affected local educational agencies and schools within 
     the State in carrying out comprehensive educational reform, 
     after considering--
       ``(i) the eligibility of the State as described in 
     paragraph (2);
       ``(ii) the comprehensiveness and quality of the educational 
     flexibility plan described in subparagraph (A);
       ``(iii) the ability of the educational flexibility plan to 
     ensure accountability for the activities and goals described 
     in such plan;
       ``(iv) the degree to which the State's objectives described 
     in subparagraph (A)(iii)--

       ``(I) are clear and have the ability to be assessed; and
       ``(II) take into account the performance of local 
     educational agencies or schools, and students, particularly 
     those affected by waivers;

       ``(v) the significance of the State statutory or regulatory 
     requirements relating to education that will be waived; and
       ``(vi) the quality of the State educational agency's 
     process for approving applications for waivers of Federal 
     statutory or regulatory requirements as described in 
     paragraph (1)(A) and for monitoring and evaluating the 
     results of such waivers.
       ``(4) Local application.--
       ``(A) In general.--Each local educational agency or school 
     requesting a waiver of a Federal statutory or regulatory 
     requirement as described in paragraph (1)(A) and any relevant 
     State statutory or regulatory requirement from a State 
     educational agency shall submit an application to the State 
     educational agency at such time, in such manner, and 
     containing such information as the State educational agency 
     may reasonably require. Each such application shall--
       ``(i) indicate each Federal program affected and each 
     statutory or regulatory requirement that will be waived;
       ``(ii) describe the purposes and overall expected results 
     of waiving each such requirement;
       ``(iii) describe, for each school year, specific, 
     measurable, educational goals for each local educational 
     agency or school affected by the proposed waiver, and for the 
     students served by the local educational agency or school who 
     are affected by the waiver;
       ``(iv) explain why the waiver will assist the local 
     educational agency or school in reaching such goals; and
       ``(v) in the case of an application from a local 
     educational agency, describe how the local educational agency 
     will meet the requirements of paragraph (8).
       ``(B) Evaluation of applications.--A State educational 
     agency shall evaluate an

[[Page 7048]]

     application submitted under subparagraph (A) in accordance 
     with the State's educational flexibility plan described in 
     paragraph (3)(A).
       ``(C) Approval.--A State educational agency shall not 
     approve an application for a waiver under this paragraph 
     unless--
       ``(i) the local educational agency or school requesting 
     such waiver has developed a local reform plan that is 
     applicable to such agency or school, respectively;
       ``(ii) the waiver of Federal statutory or regulatory 
     requirements as described in paragraph (1)(A) will assist the 
     local educational agency or school in reaching its 
     educational goals, particularly goals with respect to school 
     and student performance; and
       ``(iii) the State educational agency is satisfied that the 
     underlying purposes of the statutory requirements of each 
     program for which a waiver is granted will continue to be 
     met.
       ``(D) Termination.--The State educational agency shall 
     annually review the performance of any local educational 
     agency or school granted a waiver of Federal statutory or 
     regulatory requirements as described in paragraph (1)(A) in 
     accordance with the evaluation requirement described in 
     paragraph (3)(A)(v), and shall terminate any waiver granted 
     to the local educational agency or school if the State 
     educational agency determines, after notice and an 
     opportunity for a hearing, that the local educational agency 
     or school's performance with respect to meeting the 
     accountability requirement described in paragraph (2)(C) and 
     the goals described in paragraph (4)(A)(iii)--
       ``(i) has been inadequate to justify continuation of such 
     waiver; or
       ``(ii) has decreased for two consecutive years, unless the 
     State educational agency determines that the decrease in 
     performance was justified due to exceptional or 
     uncontrollable circumstances.
       ``(5) Oversight and reporting.--
       ``(A) Oversight.--Each State educational agency 
     participating in the educational flexibility program under 
     this section shall annually monitor the activities of local 
     educational agencies and schools receiving waivers under this 
     section.
       ``(B) State reports.--
       ``(i) Annual reports.--The State educational agency shall 
     submit to the Secretary an annual report on the results of 
     such oversight and the impact of the waivers on school and 
     student performance.
       ``(ii) Performance data.--Not later than 2 years after the 
     date a State is designated an Ed-Flex Partnership State, each 
     such State shall include, as part of the State's annual 
     report submitted under clause (i), data demonstrating the 
     degree to which progress has been made toward meeting the 
     State's educational objectives. The data, when applicable, 
     shall include--

       ``(I) information on the total number of waivers granted 
     for Federal and State statutory and regulatory requirements 
     under this section, including the number of waivers granted 
     for each type of waiver;
       ``(II) information describing the effect of the waivers on 
     the implementation of State and local educational reforms 
     pertaining to school and student performance;
       ``(III) information describing the relationship of the 
     waivers to the performance of schools and students affected 
     by the waivers; and
       ``(IV) an assurance from State program managers that the 
     data reported under this section are reliable, complete, and 
     accurate, as defined by the State, or a description of a plan 
     for improving the reliability, completeness, and accuracy of 
     such data as defined by the State.

       ``(C) Secretary's reports.--The Secretary, not later than 2 
     years after the date of enactment of the Education 
     Flexibility Partnership Act of 1999 and annually thereafter, 
     shall--
       ``(i) make each State report submitted under subparagraph 
     (B) available to Congress and the public; and
       ``(ii) submit to Congress a report that summarizes the 
     State reports and describes the effects that the educational 
     flexibility program under this section had on the 
     implementation of State and local educational reforms and on 
     the performance of students affected by the waivers.
       ``(6) Duration of federal waivers.--
       ``(A) In general.--The Secretary shall not approve the 
     application of a State educational agency under paragraph (3) 
     for a period exceeding 5 years, except that the Secretary may 
     extend such period if the Secretary determines that such 
     agency's authority to grant waivers--
       ``(i) has been effective in enabling such State or affected 
     local educational agencies or schools to carry out their 
     State or local reform plans and to continue to meet the 
     accountability requirement described in paragraph (2)(C); and
       ``(ii) has improved student performance.
       ``(B) Performance review.--Three years after the date a 
     State is designated an Ed-Flex Partnership State, the 
     Secretary shall review the performance of the State 
     educational agency in granting waivers of Federal statutory 
     or regulatory requirements as described in paragraph (1)(A) 
     and shall terminate such agency's authority to grant such 
     waivers if the Secretary determines, after notice and an 
     opportunity for a hearing, that such agency's performance 
     (including performance with respect to meeting the objectives 
     described in paragraph (3)(A)(iii)) has been inadequate to 
     justify continuation of such authority.
       ``(C) Renewal.--In deciding whether to extend a request for 
     a State educational agency's authority to issue waivers under 
     this section, the Secretary shall review the progress of the 
     State educational agency to determine if the State 
     educational agency--
       ``(i) has made progress toward achieving the objectives 
     described in the application submitted pursuant to paragraph 
     (3)(A)(iii); and
       ``(ii) demonstrates in the request that local educational 
     agencies or schools affected by the waiver authority or 
     waivers have made progress toward achieving the desired 
     results described in the application submitted pursuant to 
     paragraph (4)(A)(iii).
       ``(7) Authority to issue waivers.--Notwithstanding any 
     other provision of law, the Secretary is authorized to carry 
     out the educational flexibility program under this section 
     for each of the fiscal years 2002 through 2008.
       ``(8) Public notice and comment.--Each State educational 
     agency seeking waiver authority under this section and each 
     local educational agency seeking a waiver under this 
     section--
       ``(A) shall provide the public with adequate and efficient 
     notice of the proposed waiver authority or waiver, consisting 
     of a description of the agency's application for the proposed 
     waiver authority or waiver in a widely read or distributed 
     medium, including a description of any improved student 
     performance that is expected to result from the waiver 
     authority or waiver;
       ``(B) shall provide the opportunity for parents, educators, 
     and all other interested members of the community to comment 
     regarding the proposed waiver authority or waiver;
       ``(C) shall provide the opportunity described in 
     subparagraph (B) in accordance with any applicable State law 
     specifying how the comments may be received, and how the 
     comments may be reviewed by any member of the public; and
       ``(D) shall submit the comments received with the agency's 
     application to the Secretary or the State educational agency, 
     as appropriate.
       ``(b) Included Programs.--The statutory or regulatory 
     requirements referred to in subsection (a)(1)(A) are any such 
     requirements for programs carried out under the following 
     provisions:
       ``(1) Title I (other than subsections (a) and (c) of 
     section 1116, subpart 2 of part B, and part F).
       ``(2) Subparts 1, 2, and 3 of part A of title II.
       ``(3) Part C of title II.
       ``(4) Part C of title III.
       ``(5) Part A of title IV.
       ``(6) Subpart 4 of this part.
       ``(7) The Carl D. Perkins Vocational and Technical 
     Education Act of 1998.
       ``(c) Waivers Not Authorized.--The Secretary and the State 
     educational agency may not waive under subsection (a)(1)(A) 
     any statutory or regulatory requirement--
       ``(1) relating to--
       ``(A) maintenance of effort;
       ``(B) comparability of services;
       ``(C) equitable participation of students and professional 
     staff in private schools;
       ``(D) parental participation and involvement;
       ``(E) distribution of funds to States or to local 
     educational agencies;
       ``(F) serving eligible school attendance areas in rank 
     order under section 1113(a)(3);
       ``(G) the selection of a school attendance area or school 
     under subsections (a) and (b) of section 1113, except that a 
     State educational agency may grant a waiver to allow a school 
     attendance area or school to participate in activities under 
     part A of title I if the percentage of children from low-
     income families in the school attendance area of such school 
     or who attend such school is not less than 10 percentage 
     points below the lowest percentage of such children for any 
     school attendance area or school of the local educational 
     agency that meets the requirements of such subsections (a) 
     and (b);
       ``(H) use of Federal funds to supplement, not supplant, 
     non-Federal funds; and
       ``(I) applicable civil rights requirements; and
       ``(2) unless the underlying purposes of the statutory 
     requirements of the program for which a waiver is granted 
     continue to be met to the satisfaction of the Secretary.
       ``(d) Treatment of Existing Ed-Flex Partnership States.--
       ``(1) In general.--Except as provided in paragraphs (3) and 
     (4), this section shall not apply to a State educational 
     agency that has been granted waiver authority under the 
     provisions of law described in paragraph (2) (as such 
     provisions were in effect on the day before the date of 
     enactment of the Better Education for Students and Teachers 
     Act) for the duration of the waiver authority.
       ``(2) Applicable provisions.--The provisions of law 
     referred to in paragraph (1) are as follows:
       ``(A) Section 311(e) of the Goals 2000: Educate America Act 
     (as such section was in effect on the day before the date of 
     enactment

[[Page 7049]]

     of the Better Education for Students and Teachers Act).
       ``(B) The proviso referring to such section 311(e) under 
     the heading `education reform' in the Department of Education 
     Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-
     229).
       ``(3) Special rule.--If a State educational agency granted 
     waiver authority pursuant to the provisions of law described 
     in subparagraph (A) or (B) of paragraph (2) applies to the 
     Secretary for waiver authority under this section--
       ``(A) the Secretary shall review the progress of the State 
     educational agency in achieving the objectives set forth in 
     the application submitted pursuant to section 311(e) of the 
     Goals 2000: Educate America Act (as such section was in 
     effect on the day before the date of enactment of the Better 
     Education for Students and Teachers Act); and
       ``(B) the Secretary shall administer the waiver authority 
     granted under this section in accordance with the 
     requirements of this section.
       ``(4) Technology.--In the case of a State educational 
     agency granted waiver authority under the provisions of law 
     described in subparagraph (A) or (B) of paragraph (2), the 
     Secretary shall permit a State educational agency to expand, 
     on or after the date of enactment of the Better Education for 
     Students and Teachers Act, the waiver authority to include 
     programs under part C of title II.
       ``(e) Publication.--A notice of the Secretary's decision to 
     authorize State educational agencies to issue waivers under 
     this section, including a description of the rationale the 
     Secretary used to approve applications under subsection 
     (a)(3)(B), shall be published in the Federal Register and the 
     Secretary shall provide for the dissemination of such notice 
     to State educational agencies, interested parties (including 
     educators, parents, students, and advocacy and civil rights 
     organizations), and the public.

                ``Subpart 2--Rural Education Initiative

     ``SEC. 5221. SHORT TITLE.

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

     ``SEC. 5222. PURPOSE.

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

     ``SEC. 5223. AUTHORIZATION OF APPROPRIATIONS.

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

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

     ``SEC. 5231. FORMULA GRANT PROGRAM AUTHORIZED.

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

     ``SEC. 5232. COMPETITIVE GRANT PROGRAM AUTHORIZED.

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

     ``SEC. 5233. ACCOUNTABILITY.

       ``(a) Academic Achievement.--
       ``(1) In general.--Each local educational agency that uses 
     or receives funds under section 5231 or 5232 for a fiscal 
     year shall--
       ``(A) administer an assessment that is used statewide and 
     is consistent with the assessment described in section 
     1111(b), to assess the academic achievement of students in 
     the schools served by the local educational agency; or
       ``(B) in the case of a local educational agency for which 
     there is no statewide assessment described in subparagraph 
     (A), administer a test, that is selected by the local 
     educational agency, to assess the academic achievement of 
     students in the schools served by the local educational 
     agency.

[[Page 7050]]

       ``(2) Special rule.--Each local educational agency that 
     uses or receives funds under section 5231 or 5232 shall use 
     the same assessment or test described in paragraph (1) for 
     each year of participation in the program carried out under 
     such section.
       ``(b) State Educational Agency Determination Regarding 
     Continuing Participation.--Each State educational agency that 
     receives funding under the provisions of law described in 
     section 5231(c) shall--
       ``(1) after the 3rd year that a local educational agency in 
     the State participates in a program authorized under section 
     5231 or 5232 and on the basis of the results of the 
     assessments or tests described in subsection (a), determine 
     whether the students served by the local educational agency 
     participating in the program performed better on the 
     assessments or tests after the 3rd year of the participation 
     than the students performed on the assessments or tests after 
     the 1st year of the participation;
       ``(2) permit only the local educational agencies that 
     participated in the program and served students that 
     performed better on the assessments or tests, as described in 
     paragraph (1), to continue to participate in the program for 
     an additional period of 3 years; and
       ``(3) prohibit the local educational agencies that 
     participated in the program and served students that did not 
     perform better on the assessments or tests, as described in 
     paragraph (1), from participating in the program, for a 
     period of 3 years from the date of the determination.

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

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

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

     ``SEC. 5241. DEFINITIONS.

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

     ``SEC. 5242. PROGRAM AUTHORIZED.

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

     ``SEC. 5243. STATE DISTRIBUTION OF FUNDS.

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

     ``SEC. 5244. APPLICATIONS.

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

     ``SEC. 5245. ACCOUNTABILITY.

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

     ``SEC. 5246. SUPPLEMENT NOT SUPPLANT.

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

[[Page 7051]]



     ``SEC. 5247. SPECIAL RULE.

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

                          ``Subpart 3--Waivers

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

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

          ``Subpart 4--Innovative Education Program Strategies

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

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

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

       ``(a) Authorization.--To carry out the purposes of this 
     subpart, there are authorized to be appropriated $850,000,000 
     for fiscal year 2002 and such sums as may be necessary for 
     each of the 6 succeeding fiscal years.
       ``(b) Duration of Assistance.--During the period beginning 
     October 1, 2002, and ending

[[Page 7052]]

     September 30, 2008, the Secretary, in accordance with the 
     provisions of this subpart, shall make payments to State 
     educational agencies for the purpose of this subpart.

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

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

                 ``Chapter 1--State and Local Programs

     ``SEC. 5311. ALLOTMENT TO STATES.

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

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

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

                      ``Chapter 2--State Programs

     ``SEC. 5321. STATE USES OF FUNDS.

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

     ``SEC. 5322. STATE APPLICATIONS.

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

            ``Chapter 3--Local Innovative Education Programs

     ``SEC. 5331. TARGETED USE OF FUNDS.

       ``(a) General Rule.--Funds made available to local 
     educational agencies under section 5312 shall be used for 
     innovative assistance described in subsection (b).
       ``(b) Innovative Assistance.--
       ``(1) In general.--The innovative assistance programs 
     referred to in subsection (a) include--
       ``(A) programs for the acquisition and use of instructional 
     and educational materials, including library services and 
     materials (including media materials), assessments, and other 
     curricular materials;
       ``(B) programs to improve teaching and learning, including 
     professional development

[[Page 7053]]

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

     ``SEC. 5332. ADMINISTRATIVE AUTHORITY.

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

     ``SEC. 5333. LOCAL APPLICATIONS.

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

             ``Chapter 4--General Administrative Provisions

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

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

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

       ``(a) Participation on Equitable Basis.--
       ``(1) In general.--To the extent consistent with the number 
     of children in the school district of a local educational 
     agency which is eligible to receive funds under this subpart 
     or which serves the area in which a program or project 
     assisted under this subpart is located who are enrolled in 
     private nonprofit elementary and secondary schools, or with 
     respect to instructional or personnel training programs 
     funded by the State educational agency from funds made 
     available for State use, such agency, after consultation with 
     appropriate private school officials, shall provide for the 
     benefit of such children in such schools secular, neutral, 
     and nonideological services, materials, and equipment, 
     including the participation of the teachers of such children 
     (and other educational personnel serving such children) in 
     training programs, and the repair, minor remodeling, or 
     construction of public facilities as may be necessary for 
     their provision (consistent with subsection (c) of this 
     section), or, if such services, materials, and equipment are 
     not feasible or necessary in one or more such private schools 
     as determined by the local educational agency after 
     consultation with the appropriate private school officials, 
     shall provide such other arrangements as will assure 
     equitable participation of such children in the purposes and 
     benefits of this subpart.
       ``(2) Other provisions for services.--If no program or 
     project is carried out under paragraph (1) in the school 
     district of a local educational agency, the State educational 
     agency shall make arrangements, such as through contracts 
     with nonprofit agencies or organizations, under which 
     children in private schools in such district are provided 
     with services and materials to the extent that would have 
     occurred if the local educational agency had received funds 
     under this subpart.
       ``(3) Application of requirements.--The requirements of 
     this section relating to the participation of children, 
     teachers, and other personnel serving such children shall 
     apply to programs and projects carried out under this subpart 
     by a State or local educational agency, whether directly or 
     through grants to or contracts with other public or private 
     agencies, institutions, or organizations.
       ``(b) Equal Expenditures.--Expenditures for programs 
     pursuant to subsection (a) shall be equal (consistent with 
     the number of children to be served) to expenditures for 
     programs under this subpart for children enrolled in the 
     public schools of the local educational agency, taking into 
     account the

[[Page 7054]]

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

     ``SEC. 5343. FEDERAL ADMINISTRATION.

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

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

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

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

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

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

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

       ``(a) General Authority.--In accordance with regulations of 
     the Secretary, a local educational agency, with the approval 
     of its State educational agency, may consolidate and use for 
     the administration of one or more covered programs for any 
     fiscal year not more than the percentage, established in each 
     covered program, of the total amount available to the local 
     educational agency under such covered programs.

[[Page 7055]]

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

     ``SEC. 5404. ADMINISTRATIVE FUNDS STUDIES.

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

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

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

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

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

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

     ``SEC. 5501. PURPOSE.

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

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

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

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

       ``(a) Assurances.--A State educational agency that submits 
     a consolidated State plan or consolidated State application 
     under this Act, whether separately or under section 5502, 
     shall have on file with the Secretary a single set of 
     assurances, applicable to each program for which such plan or 
     application is submitted, that provides that--

[[Page 7056]]

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

     ``SEC. 5504. ADDITIONAL COORDINATION.

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

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

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

     ``SEC. 5506. OTHER GENERAL ASSURANCES.

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

                 ``PART E--ADVANCED PLACEMENT PROGRAMS

     ``SEC. 5601. SHORT TITLE.

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

     ``SEC. 5602. FINDINGS AND PURPOSES.

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

[[Page 7057]]

     placement programs, and thus further increase the number of 
     students who participate and succeed in advanced placement 
     programs;
       ``(4) to increase the availability and broaden the range of 
     schools that have advanced placement programs, which programs 
     are still often distributed unevenly among regions, States, 
     and even secondary schools within the same school district, 
     while also increasing and diversifying student participation 
     in the programs;
       ``(5) to build on the State programs described in 
     subsection (a)(5) and demonstrate that larger and more 
     diverse groups of students can participate and succeed in 
     advanced placement programs;
       ``(6) to provide greater access to advanced placement 
     courses for low-income and other disadvantaged students;
       ``(7) to provide access to advanced placement courses for 
     secondary school juniors at schools that do not offer 
     advanced placement programs, increase the rate of secondary 
     school juniors and seniors who participate in advanced 
     placement courses to 25 percent of the secondary school 
     student population, and increase the numbers of students who 
     receive advanced placement test scores for which college 
     academic credit is awarded; and
       ``(8) to increase the participation of low-income 
     individuals in taking advanced placement tests through the 
     payment or partial payment of the costs of the advanced 
     placement test fees.

     ``SEC. 5603. FUNDING DISTRIBUTION RULE.

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

     ``SEC. 5604. ADVANCED PLACEMENT PROGRAM GRANTS.

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

     ``SEC. 5605. ONLINE ADVANCED PLACEMENT COURSES.

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

     ``SEC. 5606. ADVANCED PLACEMENT INCENTIVE PROGRAM.

       ``(a) Grants Authorized.--From amounts appropriated under 
     section 5608 and made available under section 5603 for a 
     fiscal year, the Secretary shall award grants to State 
     educational agencies having applications approved under 
     subsection (c) to enable the State educational agencies to 
     reimburse low-income individuals to cover part or all of the 
     costs of advanced placement test fees, if the low-income 
     individuals--
       ``(1) are enrolled in an advanced placement class; and
       ``(2) plan to take an advanced placement test.
       ``(b) Award Basis.--In determining the amount of the grant 
     awarded to each State educational agency under this section 
     for a fiscal year, the Secretary shall consider the number of 
     children eligible to be counted under section 1124(c) in the 
     State in relation to the number of such children so counted 
     in all the States.
       ``(c) Information Dissemination.--A State educational 
     agency shall disseminate information regarding the 
     availability of advanced placement test fee payments under 
     this section to eligible individuals through secondary school 
     teachers and guidance counselors.
       ``(d) Applications.--Each State educational agency desiring 
     a grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. At a minimum, 
     each State educational agency application shall--
       ``(1) describe the advanced placement test fees the State 
     educational agency will pay on behalf of low-income 
     individuals in the State from grant funds made available 
     under this section;
       ``(2) provide an assurance that any grant funds received 
     under this section, other than funds used in accordance with 
     subsection (e), shall be used only to pay for advanced 
     placement test fees; and
       ``(3) contain such information as the Secretary may require 
     to demonstrate that the State will ensure that a student is 
     eligible for payments under this section, including 
     documentation required under chapter 1 of subpart 2 of part A 
     of title IV of the Higher Education Act of 1965.
       ``(e) Additional Uses of Funds.--If each eligible low-
     income individual in a State pays not more than a nominal fee 
     to take an advanced placement test in a core subject, then a 
     State educational agency may use grant funds made available 
     under this section that remain after advanced placement

[[Page 7058]]

     test fees have been paid on behalf of all eligible low-income 
     individuals in the State, for activities directly related to 
     increasing--
       ``(1) the enrollment of low-income individuals in advanced 
     placement courses;
       ``(2) the participation of low-income individuals in 
     advanced placement courses; and
       ``(3) the availability of advanced placement courses in 
     schools serving high-poverty areas.
       ``(f) Supplement, Not Supplant.--Grant funds provided under 
     this section shall supplement, and not supplant, other non-
     federal funds that are available to assist low-income 
     individuals in paying for the cost of advanced placement test 
     fees.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as are necessary to carry out this section.
       ``(h) Report.--Each State educational agency annually shall 
     report to the Secretary information regarding--
       ``(1) the number of low-income individuals in the State who 
     received assistance under this section; and
       ``(2) any activities carried out pursuant to subsection 
     (e).
       ``(i) Definitions.--In this section:
       ``(1) Advanced placement test.--The term `advanced 
     placement test' includes only an advanced placement test 
     approved by the Secretary for the purposes of this section.
       ``(2) Low-income individual.--The term `low-income 
     individual' has the meaning given the term in section 
     402A(g)(2) of the Higher Education Act of 1965.

     ``SEC. 5607. DEFINITIONS.

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

     ``SEC. 5608. AUTHORIZATION OF APPROPRIATIONS.

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

                    ``PART F--PERFORMANCE AGREEMENTS

     ``SEC. 5701. SHORT TITLE.

       ``This part may be cited as the `Performance Agreements 
     Act'.

     ``SEC. 5702. PURPOSE.

       ``The purpose of this part is to create options for 
     selected State educational agencies and local educational 
     agencies--
       ``(1) to improve the academic achievement of all students 
     served by State educational agencies and local educational 
     agencies, and to focus the resources of the Federal 
     Government on that achievement;
       ``(2) to better empower parents, educators, administrators, 
     and schools to effectively address the needs of their 
     children and students;
       ``(3) 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;
       ``(4) to eliminate barriers to implementing effective State 
     and local education reform, while preserving the goals of 
     equality of opportunity for all students and accountability 
     for student progress;
       ``(5) to hold participating State educational agencies and 
     local educational agencies accountable for increasing the 
     academic achievement of all students, especially 
     disadvantaged students; and
       ``(6) to narrow achievement gaps between the lowest and 
     highest performing groups of students, particularly low-
     income and minority students, so that no child is left 
     behind.

     ``SEC. 5703. PROGRAM AUTHORITY; SELECTION OF STATE 
                   EDUCATIONAL AGENCIES AND LOCAL EDUCATIONAL 
                   AGENCIES.

       ``(a) Program Authority.--
       ``(1) In general.--Except as otherwise provided in this 
     part, the Secretary shall enter into performance agreements--
       ``(A) with State educational agencies and local educational 
     agencies that submit approvable performance agreement 
     proposals and are selected under paragraph (2); and
       ``(B) under which the agencies may consolidate and use 
     funds as described in section 5705.
       ``(2) Selection of state educational agencies and local 
     educational agencies for participation.--
       ``(A) In general.--Subject to subparagraphs (C) and (D), 
     the Secretary shall select not more than 7 State educational 
     agencies and 25 local educational agencies to enter into 
     performance agreements under this part. The State educational 
     agencies and local educational agencies shall be selected 
     from among those State educational agencies and local 
     educational agencies that--
       ``(i) demonstrate, to the satisfaction of the Secretary, 
     that the proposed performance agreement of the agency--

       ``(I) has substantial promise of meeting the requirements 
     of this part; and
       ``(II) describes a plan to combine and use funds (as 
     described in section 5705(a)(1)) under the agreement to 
     exceed, by a statistically significant amount, the State's 
     definition of adequate yearly progress (as described in 
     subparagraph (B)) while meeting the requirements of sections 
     1111 and 1116;

       ``(ii) have developed, and are administering, the 
     assessments described in section 1111(b)(3);
       ``(iii) provide information in the proposed performance 
     agreement regarding how the State educational agency--

       ``(I) has notified the local educational agencies within 
     the State of the State educational agency's intent to submit 
     a proposed performance agreement; and
       ``(II) consulted with the Governor of the State about the 
     terms of the proposed performance agreement;

       ``(iv) consulted and involved parents and educators in the 
     development of the proposal; and
       ``(v) provide such other information, at such time and in 
     such manner, as the Secretary may reasonably require.
       ``(B) Definition of adequate yearly progress.--In this part 
     the term `adequate yearly progress' means the adequate yearly 
     progress determined by the State pursuant to section 
     1111(b)(2)(B).
       ``(C) Geographic distribution.--If more than 7 State 
     educational agencies or 25 local educational agencies submit 
     approvable performance agreements under this part, then the 
     Secretary shall select agencies for performance agreements 
     under this part in a manner that ensures, to the greatest 
     extent possible, an equitable geographic distribution of such 
     agencies selected for performance agreements. In addition, if 
     more than 25 local educational agencies submit approvable 
     performance agreements under this part, then the Secretary 
     shall select local educational agencies for performance 
     agreements under this part in a manner that ensures an 
     equitable distribution of such agencies selected for 
     performance agreements among such agencies serving urban and 
     rural areas.
       ``(D) Local educational agency participation.--
       ``(i) In general.--If a local educational agency is located 
     in a State that does not enter into a performance agreement 
     under subparagraph (A), then the local educational agency may 
     be selected to enter into a performance agreement with the 
     Secretary under subparagraph (A), but only if the local 
     educational agency--

       ``(I) meets the requirements of this part that are 
     applicable to the local educational agency pursuant to clause 
     (iii), except as provided under clause (v);
       ``(II) notifies the State educational agency of the local 
     educational agency's intent to enter into a performance 
     agreement under this part; and
       ``(III) notifies the Governor of the State regarding the 
     terms of the proposed performance agreement.

       ``(ii) Prohibition.--In the event that a local educational 
     agency enters into a performance agreement under this part, 
     the State educational agency serving the State in which the 
     local educational agency is located may not enter into a 
     performance agreement under this part unless--

       ``(I) the State educational agency has consulted the local 
     educational agency; and
       ``(II) the term of the local educational agency's original 
     performance agreement has ended.

       ``(iii) Applicability.--Except as provided in clauses (iv) 
     and (v), each requirement and limitation under this part that 
     is applicable to a State educational agency with respect to a 
     performance agreement under this part shall be applicable to 
     a local educational agency with respect to a performance 
     agreement under this section, to the extent the Secretary 
     determines appropriate.
       ``(iv) Local educational agency waiver.--

       ``(I) Waiver.--If a local educational agency does not wish 
     to participate in the State

[[Page 7059]]

     educational agency's performance agreement, then the local 
     educational agency shall apply to the State educational 
     agency for a waiver within 45 days of notification from the 
     State educational agency of the State educational agency's 
     desire to participate in a performance agreement.
       ``(II) Response.--A State educational agency that receives 
     a waiver application under subclause (I) shall respond to the 
     waiver application within 45 days of receipt of the 
     application. In order to obtain the waiver, the local 
     educational agency shall reasonably demonstrate to the State 
     educational agency that the local educational agency would be 
     better able to exceed adequate yearly progress by opting out 
     of the performance agreement and remaining subject to the 
     requirements of the affected Federal programs. If the State 
     educational agency denies the waiver, the State educational 
     agency shall explain to the local educational agency the 
     State educational agency's reasons for the denial.
       ``(III) Applicability.--If a local educational agency 
     receives a waiver under this clause, then the agency shall 
     receive funds and be subject to the provisions of Federal law 
     governing each Federal program included in the State 
     educational agency's performance agreement.

       ``(v) Inapplicability.--The following provisions shall not 
     apply to a local educational agency with respect to a 
     performance agreement under this part:

       ``(I) The provisions of section 5703(a)(2)(A)(iii) relating 
     to State educational agency information.
       ``(II) The provisions of section 5704(a)(3)(B) limiting the 
     use of funds other than those funds provided under part A of 
     title I.
       ``(III) The provisions of section 5705(b), to the extent 
     that those provisions permit the consolidation of funds that 
     are awarded by a State on a competitive basis.
       ``(IV) The provisions relating to distribution of funds 
     under section 5706.
       ``(V) The provisions limiting State use of funds for 
     administrative purposes under section 5708(a).
       ``(VI) The provisions of section 5709(e)(1) regarding State 
     sanctions.

       ``(b) Ed-Flex Prohibition.--Each State or local educational 
     agency that enters into a performance agreement under this 
     part shall be ineligible to receive a waiver under part B for 
     the term of the performance agreement.

     ``SEC. 5704. PERFORMANCE AGREEMENT.

       ``(a) Terms of Performance Agreement.--
       ``(1) Required provisions.--Each performance agreement 
     entered into by the Secretary and a State educational agency 
     or a local educational agency under this part shall--
       ``(A) be for a term of 5 years, except as provided in 
     section 5709(a);
       ``(B) provide that no requirements of any program described 
     in section 5705(b) and included in the scope of the agreement 
     shall apply, except as otherwise provided in this part;
       ``(C) list which of the programs described in section 
     5705(b) are included in the scope of the performance 
     agreement;
       ``(D) contain a 5-year plan describing how the State 
     educational agency will--
       ``(i) ensure compliance with sections 1003, 1111 (other 
     than subsections (c) (3) and (10)), 1112 (other than 
     subsections (b) (3) and (9), (c) (5), (7), and (9), and 
     (d)(3)), 1114, 1115, 1116, 1117, and 1118 (c), (d), and (e) 
     (1), (3), and (7), except that section 1114(a)(1) shall be 
     applied substituting `35 percent' for `40 percent';
       ``(ii) address professional development under the 
     performance agreement;
       ``(iii) combine and use the funds from programs included in 
     the scope of the performance agreement to exceed, by a 
     statistically significant amount, the State's definition of 
     adequate yearly progress;
       ``(iv) if title II is included in the performance 
     agreement, ensure compliance with sections 2141(a) and 
     2142(a), as applicable; and
       ``(v) if title III is included in the performance 
     agreement, ensure compliance with section 3329;
       ``(E) contain an assurance that the State educational 
     agency has provided parents, teachers, schools, and local 
     educational agencies in the State, with notice and an 
     opportunity to comment on the proposed terms of the 
     performance agreement, including the distribution and use of 
     funds to be consolidated, in accordance with State law;
       ``(F) provide that the State 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 performance agreement;
       ``(G) contain an assurance that the State educational 
     agency will meet the requirements of all applicable Federal 
     civil rights laws in carrying out the performance agreement 
     and in consolidating and using the funds under the 
     performance agreement;
       ``(H) require that, in consolidating and using funds under 
     the performance agreement, the State educational agency will 
     comply with the equitable participation requirements 
     described in section 5705(c);
       ``(I) provide that the State educational agency will, for 
     the duration of the performance agreement, use funds 
     consolidated and used under section 5705 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 used under section 5705, and 
     not to supplant those funds;
       ``(J) contain an assurance that the State educational 
     agency will comply with the maintenance of effort 
     requirements of paragraph (2);
       ``(K) provide that, not later than 1 year after the date on 
     which the Secretary and the State educational agency enter 
     into the performance agreement, and annually thereafter 
     during the term of the agreement, the State educational 
     agency will disseminate widely to parents (in a format and, 
     to the extent practicable, in a language the parents can 
     understand) and the general public, transmit to the 
     Secretary, distribute to print and broadcast media, and post 
     on the Internet, a report that includes--
       ``(i) the data as described in section 1111(j);
       ``(ii) a detailed description of how the State educational 
     agency used the funds consolidated under the performance 
     agreement to exceed, by a statistically significant amount, 
     its definition of adequate yearly progress; and
       ``(iii) whether the State educational agency has met the 
     teacher quality goals established under title II; and
       ``(L) in the case of an agency that includes subpart 1 of 
     part A of title IV in its performance agreement, contain an 
     assurance that--
       ``(i) the agency will not diminish its ability to provide a 
     drug and violence free learning environment as a result of 
     entering into the performance agreement, except that nothing 
     in this clause shall be construed to limit the ability of the 
     agency to participate in a program under title IV due to an 
     unforeseen event involving drugs or violence;
       ``(ii) the agency will prepare the needs assessment 
     described in section 4112(a)(2) and the report described in 
     section 4117 (b) and (c), as appropriate, for each school 
     year; and
       ``(iii) the agency will use the information in the 
     assessment and report described in clause (ii) to ensure 
     compliance with clause (i).
       ``(2) Maintenance of state financial support.--
       ``(A) In general.--Each State entering into a performance 
     agreement under this part shall not reduce the amount of 
     State financial support for education for a fiscal year below 
     the amount of such support for the preceding fiscal year.
       ``(B) Reduction of funds for failure to maintain effort.--
     The Secretary shall reduce the allotment of funds to a State 
     pursuant to the terms of the performance agreement for any 
     fiscal year following a fiscal year in which the State fails 
     to comply with subparagraph (A) by the same amount by which 
     the State fails to meet the requirements of subparagraph (A).
       ``(C) Waivers for exceptional or uncontrollable 
     circumstances.--The Secretary may waive the requirement of 
     subparagraph (A) for a State, for one fiscal year at a time, 
     if the Secretary determines that granting 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.
       ``(D) Subsequent years.--If, for any year, a State fails to 
     meet the requirement of subparagraph (A), including any year 
     for which the State is granted a waiver under subparagraph 
     (C), then the financial support required of the State in 
     future years under subparagraph (A) shall be the amount that 
     would have been required in the absence of that failure and 
     not the reduced level of the State's support.
       ``(3) Maintenance of local financial support.--
       ``(A) In general.--Each local educational agency entering 
     into a performance agreement under this part shall not reduce 
     the amount of local educational agency financial support for 
     education for a fiscal year below 90 percent of the amount of 
     that support for the preceding fiscal year.
       ``(B) Reduction of funds for failure to maintain support.--
     The Secretary shall reduce the amount made available to a 
     local educational agency under a performance agreement under 
     this part for any fiscal year following the fiscal year in 
     which the local educational agency fails to comply with 
     subparagraph (A) by the same amount by which the local 
     educational agency fails to meet the requirements of 
     subparagraph (A).
       ``(C) Waivers for exceptional or uncontrollable 
     circumstances.--The Secretary may waive the requirement of 
     subparagraph (A) for a local educational agency if the 
     Secretary determines that granting 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 local educational 
     agency, or to permit the local educational agency to adjust 
     for changes in student population within the schools served 
     by the local educational agency.
       ``(D) Subsequent years.--If, for any year, a local 
     educational agency fails to meet the requirement of 
     subparagraph (A), including any year for which the local 
     educational agency is granted a waiver under subparagraph 
     (C), then the financial support required of the local 
     educational agency in future years under subparagraph (A) 
     shall be

[[Page 7060]]

     the amount that would have been required in the absence of 
     that failure and not the reduced level of the local 
     educational agency's support.
       ``(4) Program-specific provisions.--
       ``(A) Part a of title i funds.--If part A of title I is 
     included in the scope of the performance agreement, the 
     performance agreement shall provide that sections 1113, and 
     1124 through 1127, shall apply to the allocation of funds 
     under such part, unless the State educational agency 
     demonstrates, to the satisfaction of the Secretary and prior 
     to approval of the performance agreement, that the State 
     educational agency will use an alternative allocation method 
     that will better target poverty or educational need. Any 
     alternative method shall result in the percentage of such 
     funds allocated to each local educational agency served by 
     the State educational agency that meets the eligibility 
     criteria for a concentration grant according to section 1124A 
     exceeding the percentage of such funds allocated to such 
     local educational agency under part A of title I. Such 
     alternative allocation methods may include implementation of 
     a State's weighted formula, use of a State's most current 
     census data to better target poor children, or a State 
     setting higher thresholds for poverty so that funding is more 
     targeted to schools with higher concentrations of poverty.
       ``(B) Nontitle i funds.--The performance agreement shall 
     provide that, for funds other than those under part A of 
     title I that are consolidated and used under section 5705(b), 
     the State educational agency will demonstrate, to the 
     satisfaction of the Secretary and prior to approval of the 
     performance agreement, that the State educational agency will 
     allocate the funds in a manner that, each year, allocates 
     funds to serve high concentrations of children from low-
     income families at a level proportional to or higher than the 
     level that would occur without such consolidation or use.
       ``(b) Approval of Performance Agreement.--
       ``(1) In general.--Subject to section 5703(a), not later 
     than 90 days after the deadline established by the Secretary 
     for receipt of a complete proposed performance agreement, the 
     Secretary shall approve the performance agreement, or provide 
     the State educational agency with a written explanation for 
     not approving the performance agreement.
       ``(2) Peer review.--The Secretary shall--
       ``(A) establish a peer review process to assist in the 
     review of proposed performance agreements under this part; 
     and
       ``(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, curriculum, instruction and staff 
     development, and other diverse educational needs of students.
       ``(c) Amendment to Performance Agreement.--
       ``(1) In general.--Not later than 1 year after entering 
     into a performance agreement under this part, a State 
     educational agency may amend its agreement to--
       ``(A) remove from the scope of the agreement any program 
     described in section 5705(b); or
       ``(B) include in the scope of the agreement any additional 
     program described in section 5705(b), or any additional 
     achievement indicators for which the State educational agency 
     will be held accountable.
       ``(2) Approval of amendment.--
       ``(A) In general.--Not later than 90 days after the receipt 
     of a complete proposed amendment described in paragraph (1), 
     the Secretary shall approve the amendment unless the 
     Secretary, by that deadline, provides the State educational 
     agency with a written determination that the plan, as 
     amended, would no longer have substantial promise of meeting 
     the requirements of this part and meeting the State 
     educational agency's objective to exceed adequate yearly 
     progress.
       ``(B) Treatment as approved.--Each amendment for which the 
     Secretary fails to take the action required under 
     subparagraph (A) in the time period described in that 
     subparagraph shall be considered to be approved.
       ``(3) Additional amendments.--In addition to the amendments 
     described in paragraph (1), the State educational agency, at 
     any time, may amend its performance agreement if the State 
     educational agency demonstrates, to the satisfaction of the 
     Secretary, that--
       ``(A) the plan, as amended, will continue to have 
     substantial promise of meeting the requirements of this part; 
     and
       ``(B) the amendment sought by the State will not 
     substantially alter the original agreement.
       ``(4) Treatment of program funds withdrawn from 
     agreement.--The addition, or removal, of a program to or from 
     the scope of a performance agreement under paragraph (1) 
     shall take effect with respect to the participating agency's 
     use of funds made available under that program beginning on 
     the first day of the first full academic year following the 
     approval of the amendment.

     ``SEC. 5705. CONSOLIDATION AND USE OF FUNDS.

       ``(a) In General.--
       ``(1) Authority.--Under a performance agreement entered 
     into under this part, a State educational agency may 
     consolidate, subject to subsection (c), Federal funds made 
     available to the State educational agency under the 
     provisions listed in subsection (b) and use those funds for 
     any purpose or use permitted under any of the eligible 
     programs listed in section 5705(b), subject to paragraph (3).
       ``(2) Program requirements.--Except as otherwise provided 
     in this part, a State educational agency may use funds under 
     paragraph (1) notwithstanding the requirements of the program 
     under which the funds were made available to the State 
     educational agency.
       ``(3) Continuation awards.--A State educational agency 
     shall make continuation awards for the duration of the grants 
     to recipients of multiyear competitive grants under any of 
     the programs described in subsection (b) that were initially 
     awarded prior to entering into the performance agreement, and 
     shall not consolidate any funds under subsection (b) for any 
     year until after those continuation awards are made.
       ``(b) Eligible Programs.--Only funds made available for 
     fiscal year 2002 or any succeeding fiscal year to State 
     educational agencies under programs under any of the 
     following provisions of law may be consolidated and used 
     under subsection (a):
       ``(1) Part A (other than section 1003), subpart 1 of part 
     B, part F or G, or subpart 2 of part H (but only if 
     appropriations for such subpart exceed $250,000,000 and the 
     program becomes a State formula grant program), of title I.
       ``(2) Subpart 1 or 2 of part A, or part C, of title II.
       ``(3) Part A or D, as appropriate, of title III (other than 
     grant funds made available under section 3324(c)(1)).
       ``(4) Subpart 1 of part A of title IV.
       ``(5) Subpart 3 of part A, or subpart 4 of part B, of title 
     V.
       ``(6) Any appropriation subsequent to fiscal year 2001 for 
     the purposes described in section 310 of the Department of 
     Education Appropriations Act, 2000.
       ``(7) Any appropriation subsequent to fiscal year 2001 for 
     the purposes described in section 321(b)(2) of the Department 
     of Education Appropriations Act, 2001.
       ``(8) Any other program under this Act that is enacted 
     after the date of enactment of the Better Education for 
     Students and Teachers Act under which the Secretary provides 
     grants to State educational agencies to assist elementary and 
     secondary education on the basis of a formula.
       ``(c) Equitable Participation Requirements.--If a State 
     educational agency or local educational agency includes in 
     the scope of its performance agreement programs described in 
     subsection (b) that have requirements relating to the 
     equitable participation of private schools, then--
       ``(1) each local educational agency in the State, or the 
     local educational agency, as appropriate, shall determine the 
     amount of consolidated funds to be used for services and 
     benefits for private school students and teachers by--
       ``(A) calculating separately the amount of funds for 
     services and benefits for private school students and 
     teachers under each program that is consolidated and to which 
     those requirements apply; and
       ``(B) totaling the amounts calculated under subparagraph 
     (A);
       ``(2) except as described in paragraph (3), all equitable 
     participation requirements, including any bypass 
     requirements, applicable to the program that is consolidated 
     shall continue to apply to the funds consolidated under the 
     agreement from that program; and
       ``(3) the agency may use the amount of funds determined 
     under paragraph (1) only for those services and benefits for 
     private school students and teachers in accordance with any 
     of the consolidated programs to which the equitable 
     participation requirements apply, but may not provide any 
     additional benefits or services beyond those allowable under 
     the applicable equitable participation requirements under 
     this Act.

     ``SEC. 5706. STATE RESERVATION FOR STATE-LEVEL ACTIVITIES.

       ``(a) State-level activities.--In order to carry out State-
     level activities under the purposes described in section 
     5705(a)(1) to exceed, by a statistically significant amount, 
     the State's definition of adequate yearly progress, a State 
     educational agency that--
       ``(1) includes part A of title I in the scope of its 
     performance agreement, may reserve not more than 5 percent of 
     the funds under that part to carry out such activities; and
       ``(2) includes programs other than part A of title I in the 
     scope of its performance agreement, may reserve not more than 
     10 percent of the funds under those other programs to carry 
     out such activities.
       ``(b) Distribution of Remainder.--A State educational 
     agency shall distribute the consolidated funds not used under 
     subsection (a) to local educational agencies in the State in 
     a manner determined by the State educational agency in 
     accordance with section 5707.

     ``SEC. 5707. DISTRIBUTION OF FUNDS UNDER AGREEMENT.

       ``The distribution of funds consolidated under a 
     performance agreement shall be determined by the State 
     educational agency in consultation with the Governor of the 
     State, subject to the requirements of this part.

[[Page 7061]]



     ``SEC. 5708. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

       ``(a) State Educational Agency.--Subject to section 
     5709(e)(1), each State educational agency that has entered 
     into a performance agreement under this part may reserve for 
     administrative purposes not more than 1 percent of the total 
     amount of funds made available to the State educational 
     agency under the programs included in the scope of the 
     performance agreement.
       ``(b) Local Educational Agency.--Subject to section 
     5709(e)(2), each local educational agency that has entered 
     into a performance agreement with the Secretary under this 
     part may use for administrative purposes not more than 4 
     percent of the total amount of funds made available to the 
     local educational agency under the programs included in the 
     scope of the performance agreement.

     ``SEC. 5709. PERFORMANCE REVIEW AND PENALTIES.

       ``(a) Early Termination of Agreement.--
       ``(1) Performance goal failure.--Beginning with the first 
     full academic year after a State educational agency enters 
     into a performance agreement under this part, and after 
     providing the State educational agency with notice and an 
     opportunity for a hearing (including the opportunity to 
     provide information as provided in paragraph (3)), if the 
     State educational agency fails to meet its definition of 
     adequate yearly progress for 2 consecutive years, or fails to 
     exceed, by a statistically significant amount, its definition 
     of adequate yearly progress for 3 consecutive years, then the 
     Secretary shall terminate promptly the performance agreement.
       ``(2) Noncompliance.--The Secretary may, after providing 
     notice and an opportunity for a hearing (including the 
     opportunity to provide information as provided in paragraph 
     (3)), terminate a performance agreement if there is evidence 
     that the State educational agency has failed to comply with 
     the terms of the performance agreement.
       ``(3) Information.--If a State educational agency believes 
     that the Secretary's determination 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 early termination determination.
       ``(b) No Renewal if Performance Unsatisfactory.--If, at the 
     end of the 5-year term of a performance agreement entered 
     into under this part, a State educational agency has not 
     substantially met the State's definition of adequate yearly 
     progress, then the Secretary shall not renew the agreement 
     under section 5710.
       ``(c) Two-Year Wait-Out Period.--A State educational agency 
     whose performance agreement was terminated under subsection 
     (a), or was not renewed in accordance with subsection (b), 
     may not enter into another performance agreement under this 
     part until after the State educational agency meets its 
     definition of adequate yearly progress for 2 consecutive 
     years following the termination or nonrenewal.
       ``(d) Program Requirements in Effect After Termination or 
     Nonrenewal of the Agreement.--Beginning on the first day of 
     the first full academic year following the end of a 
     performance agreement under this part (including through 
     termination under subsection (a)) the State educational 
     agency shall comply with each of the program requirements in 
     effect on that date for each program included in the 
     performance agreement.
       ``(e) Sanctions.--
       ``(1) State sanctions.--If, beginning with the first full 
     academic year after a State educational agency enters into a 
     performance agreement under this part--
       ``(A) the Secretary determines, on the basis of data from 
     the State assessment system described in section 1111 and 
     data from State assessments under the National Assessment of 
     Educational Progress of 4th and 8th grade reading and 
     mathematics skills, for 2 consecutive years, that--
       ``(i) the State educational agency has failed to exceed, by 
     a statistically significant amount, the State's definition of 
     adequate yearly progress; and
       ``(ii) students who are racial and ethnic minorities, and 
     economically disadvantaged students, in the State failed to 
     make statistically significant progress in the academic 
     subjects for which the State has developed State content and 
     student performance standards,
     then the amount that the State educational agency may use for 
     administrative expenses in accordance with section 5708 shall 
     be reduced by 30 percent;
       ``(B) the Secretary determines that a State educational 
     agency which included title II in its performance agreement 
     failed to comply with section 2141(a), then the Secretary 
     shall withhold funds as described in section 2141(d); and
       ``(C) the Secretary determines that a State educational 
     agency which included title III in its performance agreement 
     failed to comply with section 3329, then the Secretary shall 
     withhold funds as described in section 3329(b).
       ``(2) Local educational agencies.--If, beginning with the 
     first full academic year after a local educational agency 
     enters into a performance agreement under this part, the 
     Secretary determines, on the basis of data from the State 
     assessment system described in section 1111 that a local 
     educational agency failed to exceed, by a statistically 
     significant amount, the State's definition of adequate yearly 
     progress for 2 consecutive years, then the amount that the 
     local educational agency may use for administrative expenses 
     in accordance with section 5708 shall be reduced by 30 
     percent.

     ``SEC. 5710. RENEWAL OF PERFORMANCE AGREEMENT.

       ``(a) In General.--Except as provided in section 5709 (a) 
     and (b), and in accordance with this section, the Secretary 
     shall renew for 1 additional 5-year term a performance 
     agreement under this part if the Secretary determines, on the 
     basis of the information reported under section 
     5704(a)(1)(K), that the adequate yearly progress described in 
     the performance agreement has been exceeded by a 
     statistically significant amount.
       ``(b) Notification.--The Secretary shall not renew a 
     performance agreement under this part unless the State 
     educational agency seeking the renewal notifies the Secretary 
     of the agency's intention to renew the performance agreement 
     not less than 6 months prior to the end of the original term 
     of the performance agreement.
       ``(c) Effective Date.--A renewal under this section shall 
     be effective at the end of the original term of the 
     performance agreement or on the date on which the State 
     educational agency provides to the Secretary all data and 
     information required under the performance agreement, 
     whichever is later, except that in no case may there be a 
     renewal under this section unless that data and information 
     is provided to the Secretary not later than 60 days after the 
     end of the original term of the performance agreement.

     ``SEC. 5711. EVALUATION.

       ``(a) Study.--The Secretary is authorized to award a grant 
     to the Comptroller General to conduct a study examining the 
     effectiveness of the demonstration program under this part. 
     The study shall examine--
       ``(1) the performance of the disaggregated groups of 
     students described in section 1111(b)(3)(J) prior to entering 
     into the performance agreement as compared to the performance 
     of such groups after completion of the performance agreement 
     on State assessments and the National Assessment of 
     Educational Progress;
       ``(2) the dropout data (as required by section 1111(j)) 
     prior to entering into the performance agreement as compared 
     to the dropout data after completion of the performance 
     agreement;
       ``(3) the ways in which the State educational agencies and 
     local educational agencies entering into performance 
     agreements distributed and used Federal education resources 
     as compared to the ways in which such agencies distributed 
     and used Federal education resources prior to entering the 
     performance agreement;
       ``(4) a comparison of the data described in paragraphs (1), 
     (2), and (3) between State educational agencies and local 
     educational agencies entering into performance agreements 
     compared to other State educational agencies and local 
     educational agencies to determine the effectiveness of the 
     program; and
       ``(5) any other factors that are relevant to evaluating the 
     effectiveness of the program.
       ``(b) Report.--The Secretary shall make public the results 
     of the evaluation carried out under subsection (a) and shall 
     report the results of the study 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.

     ``SEC. 5712. TRANSMITTAL OF REPORTS TO CONGRESS.

       ``Not later than 60 days after the Secretary receives an 
     annual report described in section 5704(a)(1)(K), 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.''.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

     SEC. 601. PARENTAL INVOLVEMENT AND ACCOUNTABILITY.

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

          ``TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

                     ``PART A--PARENTAL ASSISTANCE

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

       ``(a) Purpose.--The purpose of this part is--
       ``(1) to provide leadership, technical assistance, and 
     financial support to nonprofit organizations and local 
     educational agencies to help the organizations and agencies 
     implement successful and effective parental involvement 
     policies, programs, and activities that lead to improvements 
     in student performance;
       ``(2) to strengthen partnerships among parents (including 
     parents of preschool age children), teachers, principals, 
     administrators, and other school personnel in meeting the 
     educational needs of children;
       ``(3) to develop and strengthen the relationship between 
     parents and the school;

[[Page 7062]]

       ``(4) to further the developmental progress primarily of 
     children assisted under this part; and
       ``(5) to coordinate activities funded under this part with 
     parental involvement initiatives funded under section 1118 
     and other provisions of this Act.
       ``(b) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants in each fiscal year to nonprofit organizations, and 
     nonprofit organizations in consortia with local educational 
     agencies, to establish school-linked or school-based parental 
     information and resource centers that provide training, 
     information, and support to--
       ``(A) parents of children enrolled in elementary schools 
     and secondary schools;
       ``(B) individuals who work with the parents described in 
     subparagraph (A); and
       ``(C) State educational agencies, local educational 
     agencies, schools, organizations that support family-school 
     partnerships (such as parent-teacher associations), and other 
     organizations that carry out parent education and family 
     involvement programs.
       ``(2) Award rule.--In awarding grants under this part, the 
     Secretary shall ensure that such grants are distributed in 
     all geographic regions of the United States.

     ``SEC. 6102. APPLICATIONS.

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

     ``SEC. 6103. USES OF FUNDS.

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

     ``SEC. 6104. TECHNICAL ASSISTANCE.

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

     ``SEC. 6105. REPORTS.

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

     ``SEC. 6106. GENERAL PROVISIONS.

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

[[Page 7063]]



     ``SEC. 6107. AUTHORIZATION OF APPROPRIATIONS.

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

                ``PART B--IMPROVING ACADEMIC ACHIEVEMENT

     ``SEC. 6201. EDUCATION AWARDS.

       ``(a) Achievement in Education Awards.--
       ``(1) In general.--The Secretary may make awards, to be 
     known as `Achievement in Education Awards', using a peer 
     review process, to the States that, beginning with the 2002-
     2003 school year, make the most progress in improving 
     educational achievement.
       ``(2) Criteria.--
       ``(A) In general.--The Secretary shall make the awards on 
     the basis of criteria consisting of--
       ``(i) the progress of economically disadvantaged students 
     and of students who are racial and ethnic minorities--

       ``(I) in meeting the State's student performance standards 
     as measured by the assessments described in section 
     1111(b)(3); and
       ``(II) beginning with the 2nd year for which data are 
     available for all States, on State assessments under the 
     National Assessment of Educational Progress of 4th and 8th 
     grade reading and mathematics skills;

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

     ``SEC. 6202. LOSS OF ADMINISTRATIVE FUNDS.

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

     ``SEC. 6203. AUTHORIZATION OF APPROPRIATIONS.

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

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

     SEC. 701. PROGRAMS.

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

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

                       ``PART A--INDIAN EDUCATION

     ``SEC. 7101. FINDINGS.

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

     ``SEC. 7102. PURPOSE.

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

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

     ``SEC. 7111. PURPOSE.

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

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

       ``(a) In General.--The Secretary may make grants to local 
     educational agencies and Indian tribes in accordance with 
     this section.
       ``(b) Local Educational Agencies.--
       ``(1) Enrollment requirements.--A local educational agency 
     shall be eligible for a grant under this subpart for any 
     fiscal year if the number of Indian children who are eligible 
     under section 7117, and who were enrolled in the schools of 
     the agency, and to

[[Page 7064]]

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

     ``SEC. 7113. AMOUNT OF GRANTS.

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

     ``SEC. 7114. APPLICATIONS.

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

[[Page 7065]]

     ensure that the program for which assistance is sought will 
     be operated and evaluated in consultation with, and with the 
     involvement of, parents of the children, and representatives 
     of the area, to be served;
       ``(D) with respect to an application describing a 
     schoolwide program carried out in accordance with section 
     7115(c), that has--
       ``(i) reviewed in a timely fashion the program; and
       ``(ii) determined that the program will enhance the 
     availability of culturally related activities for American 
     Indian and Alaska Native students; and
       ``(E) that has adopted reasonable bylaws for the conduct of 
     the activities of the committee and abides by such bylaws.

     ``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.

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

     ``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

       ``(a) Plan.--An entity receiving funds under this subpart 
     may submit a plan to the Secretary for a demonstration 
     project for the integration of education and related services 
     provided to Indian students.
       ``(b) Consolidation of Programs.--Upon the receipt of an 
     acceptable plan under subsection (a), the Secretary, in 
     cooperation with each Federal agency providing grants for the 
     provision of education and related services to the applicant, 
     shall authorize the applicant to consolidate, in accordance 
     with such plan, the federally funded education and related 
     services programs of the applicant and the agencies, or 
     portions of the programs, serving Indian students in a manner 
     that integrates the program services involved into a single, 
     coordinated, comprehensive program and reduces administrative 
     costs by consolidating administrative functions.
       ``(c) Programs Affected.--The funds that may be 
     consolidated in a demonstration project under any such plan 
     referred to in subsection (b) shall include funds for any 
     Federal program exclusively serving Indian children, or the 
     funds reserved exclusively to serve Indian children under any 
     program, for which the applicant is eligible for receipt of 
     funds under a statutory or administrative formula for the 
     purposes of providing education and related services for 
     Indian students.
       ``(d) Plan Requirements.--For a plan to be acceptable 
     pursuant to subsection (b), the plan shall--
       ``(1) identify the programs or funding sources to be 
     consolidated;
       ``(2) be consistent with the objectives of this section 
     authorizing the program services to be integrated in a 
     demonstration project;
       ``(3) describe a comprehensive strategy that identifies the 
     full range of potential educational opportunities and related 
     services to be provided to assist Indian students to achieve 
     the objectives set forth in this subpart;
       ``(4) describe the way in which the services are to be 
     integrated and delivered and the results expected from the 
     plan;
       ``(5) identify the projected expenditures under the plan in 
     a single budget;
       ``(6) identify the State, tribal, or local agencies to be 
     involved in the delivery of the services integrated under the 
     plan;
       ``(7) identify any statutory provisions, regulations, 
     policies, or procedures that the applicant believes need to 
     be waived in order to implement the plan;
       ``(8) set forth measures of student achievement and 
     performance goals designed to be met within a specified 
     period of time for activities provided under the plan; and
       ``(9) be approved by a parent committee formed in 
     accordance with section 7114(c)(4), if such a committee 
     exists, in consultation with the Committee on Resources of 
     the House of Representatives and the Committee on Indian 
     Affairs of the Senate.
       ``(e) Plan Review.--Upon receipt of the plan from an 
     eligible entity, the Secretary shall consult with the head of 
     each Federal agency providing funds to be used to implement 
     the plan, and with the entity submitting the plan. The 
     parties so consulting shall identify any waivers of statutory 
     requirements or of Federal regulations, policies, or 
     procedures necessary to enable the applicant to implement the 
     plan. Notwithstanding any other provision of law, the 
     Secretary of the affected agency shall have the authority to 
     waive, for the applicant, any regulation, policy, or 
     procedure promulgated by that agency that has been so 
     identified by the applicant or agency, unless the head of the 
     affected agency determines that such a waiver is inconsistent 
     with the objectives of this subpart or the provisions of the 
     statute from which the program involved derives authority 
     that are specifically applicable to Indian students.
       ``(f) Plan Approval.--Within 90 days after the receipt of 
     an applicant's plan by the Secretary under subsection (a), 
     the Secretary shall inform the applicant, in writing, of the 
     Secretary's approval or disapproval of the plan. If the plan 
     is disapproved, the applicant shall be informed, in writing, 
     of the reasons for the disapproval and shall be given an 
     opportunity to amend the plan or to petition the Secretary to 
     reconsider such disapproval.
       ``(g) Responsibilities of Department of Education.--Not 
     later than 180 days after the date of enactment of the Better 
     Education for Students and Teachers Act, the Secretary of 
     Education, the Secretary of the Interior, and the head of any 
     other Federal agency identified by the Secretary of 
     Education, shall enter into an interagency memorandum of 
     agreement providing for the implementation of the 
     demonstration projects authorized under this section. The 
     lead agency for a demonstration project authorized under this 
     section shall be--
       ``(1) the Department of the Interior, in the case of an 
     applicant that is a contract or grant school, as defined in 
     section 1146 of the Education Amendments of 1978; or
       ``(2) the Department of Education, in the case of any other 
     applicant.
       ``(h) Responsibilities of Lead Agency.--The 
     responsibilities of the lead agency for a demonstration 
     project shall include--
       ``(1) the use of a single report format related to the plan 
     for the individual project, which shall be used by an 
     eligible entity to report on the activities undertaken under 
     the project;
       ``(2) the use of a single report format related to the 
     projected expenditures for the individual project, which 
     shall be used by an eligible entity to report on all project 
     expenditures;
       ``(3) the development of a single system of Federal 
     oversight for the project, which shall be implemented by the 
     lead agency; and
       ``(4) the provision of technical assistance to an eligible 
     entity appropriate to the project, except that an eligible 
     entity shall have the authority to accept or reject the plan 
     for providing such technical assistance and the technical 
     assistance provider.
       ``(i) Report Requirements.--
       ``(1) In general.--The Secretary shall develop, consistent 
     with the requirements of this section, a single report format 
     for the reports described in subsection (h).
       ``(2) Report information.--Such report format shall require 
     that the reports shall--

[[Page 7066]]

       ``(A) contain such information as will allow a 
     determination that the eligible entity has complied with the 
     requirements incorporated in the entity's approved plan, 
     including the demonstration of student achievement; and
       ``(B) provide assurances to the Secretary of Education and 
     the Secretary of the Interior that the eligible entity has 
     complied with all directly applicable statutory requirements 
     and with those directly applicable regulatory requirements 
     that have not been waived.
       ``(3) Record information.--The Secretary shall require that 
     records maintained at the local level on the programs 
     consolidated for the project shall contain the information 
     and provide the assurances described in paragraph (2).
       ``(j) No Reduction in Amounts.--In no case shall the amount 
     of Federal funds available to an eligible entity involved in 
     any demonstration project be reduced as a result of the 
     enactment of this section.
       ``(k) Interagency Fund Transfers Authorized.--The Secretary 
     is authorized to take such action as may be necessary to 
     provide for an interagency transfer of funds otherwise 
     available to an eligible entity in order to further the 
     objectives of this section.
       ``(l) Administration of Funds.--
       ``(1) In general.--An eligible entity shall administer the 
     program funds for the consolidated programs in such a manner 
     as to allow for a determination that funds from a specific 
     program are spent on allowable activities authorized under 
     such program, except that the eligible entity shall determine 
     the proportion of the funds that shall be allocated to such 
     program.
       ``(2) Separate records not required.--Nothing in this 
     section shall be construed as requiring the eligible entity 
     to maintain separate records tracing any services or 
     activities conducted under the approved plan to the 
     individual programs under which funds were authorized for the 
     services or activities, nor shall the eligible entity be 
     required to allocate expenditures among such individual 
     programs.
       ``(m) Overage.--The eligible entity may commingle all 
     administrative funds from the consolidated programs and shall 
     be entitled to the full amount of such funds (under each 
     program's or agency's regulations). The overage (defined as 
     the difference between the amount of the commingled funds and 
     the actual administrative cost of the programs) shall be 
     considered to be properly spent for Federal audit purposes, 
     if the overage is used for the purposes provided for under 
     this section.
       ``(n) Fiscal Accountability.--Nothing in this part shall be 
     construed so as to interfere with the ability of the 
     Secretary or the lead agency to fulfill responsibilities for 
     safeguarding Federal funds pursuant to chapter 75 of title 
     31, United States Code.
       ``(o) Report on Statutory Obstacles to Program 
     Integration.--
       ``(1) Preliminary report.--Not later than 2 years after the 
     date of enactment of the Better Education for Students and 
     Teachers Act, the Secretary of Education shall submit a 
     preliminary report to the Committee on Education and the 
     Workforce and the Committee on Resources of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Indian Affairs of 
     the Senate on the status of the implementation of the 
     demonstration projects authorized under this section.
       ``(2) Final report.--Not later than 5 years after the date 
     of enactment of the Better Education for Students and 
     Teachers Act, the Secretary of Education shall submit a 
     report to the Committee on Education and the Workforce and 
     the Committee on Resources of the House of Representatives 
     and the Committee on Health, Education, Labor, and Pensions 
     and the Committee on Indian Affairs of the Senate on the 
     results of the implementation of the demonstration projects 
     authorized under this section. Such report shall identify 
     statutory barriers to the ability of participants to 
     integrate more effectively their education and related 
     services to Indian students in a manner consistent with the 
     objectives of this section.
       ``(p) Definition.--In this section, the term `Secretary' 
     means--
       ``(1) the Secretary of the Interior, in the case of an 
     applicant that is a contract or grant school, as defined in 
     section 1146 of the Education Amendments of 1978; or
       ``(2) the Secretary of Education, in the case of any other 
     applicant.

     ``SEC. 7117. STUDENT ELIGIBILITY FORMS.

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

[[Page 7067]]

       ``(2) A count of the number of students for whom the school 
     has eligibility forms that comply with this section.
       ``(h) Timing of Child Counts.--For purposes of determining 
     the number of children to be counted in computing the amount 
     of a local educational agency's grant award under section 
     7113 (other than in the case described in subsection (g)(1)), 
     the local educational agency shall--
       ``(1) establish a date on, or a period not longer than 31 
     consecutive days during which, the agency counts those 
     children, if that date or period occurs before the deadline 
     established by the Secretary for submitting an application 
     under section 7114; and
       ``(2) determine that each such child was enrolled, and 
     receiving a free public education, in a school of the agency 
     on that date or during that period, as the case may be.

     ``SEC. 7118. PAYMENTS.

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

     ``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

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

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

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

       ``(a) Purpose.--
       ``(1) In general.--The purpose of this section is to 
     support projects to develop, test, and demonstrate the 
     effectiveness of services and programs to improve educational 
     opportunities and achievement of Indian children.
       ``(2) Coordination.--The Secretary shall take such actions 
     as are necessary to achieve the coordination of activities 
     assisted under this subpart with--
       ``(A) other programs funded under this Act; and
       ``(B) other Federal programs operated for the benefit of 
     American Indian and Alaska Native children.
       ``(b) Eligible Entities.--In this section, the term 
     `eligible entity' means a State educational agency, local 
     educational agency, Indian tribe, Indian organization, 
     federally supported elementary school or secondary school for 
     Indian students, Indian institution (including an Indian 
     institution of higher education) or a consortium of such 
     entities.
       ``(c) Grants Authorized.--
       ``(1) In general.--The Secretary shall award grants to 
     eligible entities to enable such entities to carry out 
     activities that meet the purpose specified in subsection 
     (a)(1), including--
       ``(A) innovative programs related to the educational needs 
     of educationally disadvantaged children;
       ``(B) educational services that are not available to such 
     children in sufficient quantity or quality, including 
     remedial instruction, to raise the achievement of Indian 
     children in 1 or more of the core academic subjects of 
     English, mathematics, science, foreign languages, art, 
     history, and geography;
       ``(C) bilingual and bicultural programs and projects;
       ``(D) special health and nutrition services, and other 
     related activities, that address the special health, social, 
     and psychological problems of Indian children;
       ``(E) special compensatory and other programs and projects 
     designed to assist and encourage Indian children to enter, 
     remain in, or reenter school, and to increase the rate of 
     secondary school graduation for Indian children;
       ``(F) comprehensive guidance, counseling, and testing 
     services;
       ``(G) early childhood and kindergarten programs, including 
     family-based preschool programs that emphasize school 
     readiness and parental skills, and the provision of services 
     to Indian children with disabilities;
       ``(H) partnership projects between local educational 
     agencies and institutions of higher education that allow 
     secondary school students to enroll in courses at the 
     postsecondary level to aid such students in the transition 
     from secondary school to postsecondary education;
       ``(I) partnership projects between schools and local 
     businesses for school-to-work transition programs designed to 
     provide Indian youth with the knowledge and skills the youth 
     need to make an effective transition from school to a first 
     job in a high-skill, high-wage career;
       ``(J) programs designed to encourage and assist Indian 
     students to work toward, and gain entrance into, an 
     institution of higher education;
       ``(K) family literacy services; or
       ``(L) other services that meet the purpose described in 
     subsection (a)(1).
       ``(2) Pre-service or in-service training.--Pre-service or 
     in-service training of professional and paraprofessional 
     personnel may be a part of any program assisted under this 
     section.
       ``(d) Grant Requirements and Applications.--
       ``(1) Grant requirements.--
       ``(A) In general.--The Secretary may make multiyear grants 
     under subsection (c) for the planning, development, pilot 
     operation, or demonstration of any activity described in 
     subsection (c). The Secretary shall make the grants for 
     periods of not more than 5 years.
       ``(B) Priority.--In making multiyear grants described in 
     this paragraph, the Secretary shall give priority to entities 
     submitting applications that present a plan for combining 2 
     or more of the activities described in subsection (c) over a 
     period of more than 1 year.
       ``(C) Progress.--The Secretary shall make a payment for a 
     grant described in this paragraph to an eligible entity after 
     the initial year of the multiyear grant period only if the 
     Secretary determines that the eligible entity has made 
     substantial progress in carrying out the activities assisted 
     under the grant in accordance with the application submitted 
     under paragraph (3) and any subsequent modifications to such 
     application.
       ``(2) Dissemination grants.--
       ``(A) In general.--In addition to awarding the multiyear 
     grants described in paragraph (1), the Secretary may award 
     grants under subsection (c) to eligible entities for the 
     dissemination of exemplary materials or programs assisted 
     under this section.
       ``(B) Determination.--The Secretary may award a 
     dissemination grant described in this paragraph if, prior to 
     awarding the grant, the Secretary determines that the 
     material or program to be disseminated--

[[Page 7068]]

       ``(i) has been adequately reviewed;
       ``(ii) has demonstrated educational merit; and
       ``(iii) can be replicated.
       ``(3) Application.--
       ``(A) In general.--Any eligible entity that desires to 
     receive a grant under this section shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require.
       ``(B) Contents.--Each application submitted to the 
     Secretary under subparagraph (A), other than an application 
     for a dissemination grant under paragraph (2), shall 
     contain--
       ``(i) a description of how parents of Indian children and 
     representatives of Indian tribes have been, and will be, 
     involved in developing and implementing the activities for 
     which assistance is sought;
       ``(ii) assurances that the applicant will participate, at 
     the request of the Secretary, in any national evaluation of 
     activities assisted under this section;
       ``(iii) information demonstrating that the proposed program 
     for the activities is a scientifically based research 
     program, which may include a program that has been modified 
     to be culturally appropriate for students who will be served;
       ``(iv) a description of how the applicant will incorporate 
     the proposed activities into the ongoing school program 
     involved once the grant period is over; and
       ``(v) such other assurances and information as the 
     Secretary may reasonably require.
       ``(e) Administrative Costs.--Not more than 5 percent of the 
     funds provided to a grant recipient under this subpart for 
     any fiscal year may be used to pay for administrative costs.

     ``SEC. 7122. PROFESSIONAL DEVELOPMENT.

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

     ``SEC. 7123. FELLOWSHIPS FOR INDIAN STUDENTS.

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

[[Page 7069]]

     and periodically thereafter, provide information concerning 
     the compliance of such recipient with the work requirement 
     described in paragraph (1).
       ``(f) Administration of Fellowships.--The Secretary may 
     administer the fellowships authorized under this section 
     through a grant to, or contract or cooperative agreement 
     with, an Indian organization with demonstrated qualifications 
     to administer all facets of the program assisted under this 
     section.

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

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

     the Secretary shall make such grants, or enter into such 
     contracts, as are necessary to provide for the evaluations, 
     technical assistance, and coordination of such activities, 
     and the dissemination of the evaluations.
       ``(e) Information Network.--The Secretary shall encourage 
     each recipient of a grant or contract under this section to 
     work cooperatively as part of a national network to ensure 
     that the information developed by the grant or contract 
     recipient is readily available to the entire educational 
     community.

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

       ``(a) In General.--The Secretary may make grants to Indian 
     tribes, and tribal organizations approved by Indian tribes, 
     to plan and develop a centralized tribal administrative 
     entity to--
       ``(1) coordinate all education programs operated by the 
     tribe or within the territorial jurisdiction of the tribe;
       ``(2) develop education codes for schools within the 
     territorial jurisdiction of the tribe;
       ``(3) provide support services and technical assistance to 
     schools serving children of the tribe; and
       ``(4) perform child-find screening services for the 
     preschool-aged children of the tribe to--
       ``(A) ensure placement in appropriate educational 
     facilities; and
       ``(B) coordinate the provision of any needed special 
     services for conditions such as disabilities and English 
     language skill deficiencies.
       ``(b) Period of Grant.--Each grant awarded under this 
     section may be awarded for a period of not more than 3 years. 
     Such grant may be renewed upon the termination of the initial 
     period of the grant if the grant recipient demonstrates to 
     the satisfaction of the Secretary that renewing the grant for 
     an additional 3-year period is necessary to carry out the 
     objectives of the grant described in subsection (c)(2)(A).
       ``(c) Application for Grant.--
       ``(1) In general.--Each Indian tribe and tribal 
     organization desiring a grant under this section shall submit 
     an application to the Secretary at such time, in such manner, 
     containing such information, and consistent with such 
     criteria, as the Secretary may prescribe in regulations.
       ``(2) Contents.--Each application described in paragraph 
     (1) shall contain--
       ``(A) a statement describing the activities to be 
     conducted, and the objectives to be achieved, under the 
     grant; and
       ``(B) a description of the method to be used for evaluating 
     the effectiveness of the activities for which assistance is 
     sought and for determining whether such objectives are 
     achieved.
       ``(3) Approval.--The Secretary may approve an application 
     submitted by a tribe or tribal organization pursuant to this 
     section only if the Secretary is satisfied that such

[[Page 7070]]

     application, including any documentation submitted with the 
     application--
       ``(A) demonstrates that the applicant has consulted with 
     other education entities, if any, within the territorial 
     jurisdiction of the applicant who will be affected by the 
     activities to be conducted under the grant;
       ``(B) provides for consultation with such other education 
     entities in the operation and evaluation of the activities 
     conducted under the grant; and
       ``(C) demonstrates that there will be adequate resources 
     provided under this section or from other sources to complete 
     the activities for which assistance is sought, except that 
     the availability of such other resources shall not be a basis 
     for disapproval of such application.
       ``(d) Restriction.--A tribe may not receive funds under 
     this section if such tribe receives funds under section 1144 
     of the Education Amendments of 1978.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Education 
     to carry out this section $3,000,000 for each of fiscal years 
     2002 through 2008.

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

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

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

               ``Subpart 4--National Research Activities

     ``SEC. 7141. NATIONAL ACTIVITIES.

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

                  ``Subpart 5--Federal Administration

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

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




       ``(B) recommendations concerning the funding of any program 
     described in subparagraph (A).

     ``SEC. 7152. PEER REVIEW.

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

     ``SEC. 7153. PREFERENCE FOR INDIAN APPLICANTS.

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

     ``SEC. 7154. MINIMUM GRANT CRITERIA.

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

       ``Subpart 6--Definitions; Authorizations of Appropriations

     ``SEC. 7161. DEFINITIONS.

       ``In this part:
       ``(1) Adult.--The term `adult' means an individual who--
       ``(A) has attained age 16; or
       ``(B) has attained an age that is greater than the age of 
     compulsory school attendance under an applicable State law.

[[Page 7071]]

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

     ``SEC. 7162. AUTHORIZATIONS OF APPROPRIATIONS.

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

                  ``PART B--NATIVE HAWAIIAN EDUCATION

     ``SEC. 7201. SHORT TITLE.

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

     ``SEC. 7202. FINDINGS.

       ``Congress finds the following:
       ``(1) Native Hawaiians are a distinct and unique indigenous 
     people with a historical continuity to the original 
     inhabitants of the Hawaiian archipelago, whose society was 
     organized as a nation and internationally recognized as a 
     nation by the United States, Britain, France, and Japan, as 
     evidenced by treaties governing friendship, commerce, and 
     navigation.
       ``(2) At the time of the arrival of the first non-
     indigenous people in Hawai'i in 1778, the Native Hawaiian 
     people lived in a highly organized, self-sufficient 
     subsistence social system based on a communal land tenure 
     system with a sophisticated language, culture, and religion.
       ``(3) A unified monarchal government of the Hawaiian 
     Islands was established in 1810 under Kamehameha I, the first 
     King of Hawai`i.
       ``(4) From 1826 until 1893, the United States recognized 
     the sovereignty and independence of the Kingdom of Hawai`i, 
     which was established in 1810 under Kamehameha I, extended 
     full and complete diplomatic recognition to the Kingdom of 
     Hawai`i, and entered into treaties and conventions with the 
     Kingdom of Hawai`i to govern friendship, commerce and 
     navigation in 1826, 1842, 1849, 1875, and 1887.
       ``(5) In 1893, the sovereign, independent, internationally 
     recognized, and indigenous government of Hawai`i, the Kingdom 
     of Hawai`i, was overthrown by a small group of non-Hawaiians, 
     including United States citizens, who were assisted in their 
     efforts by the United States Minister, a United States naval 
     representative, and armed naval forces of the United States. 
     Because of the participation of United States agents and 
     citizens in the overthrow of the Kingdom of Hawai`i, in 1993 
     the United States apologized to Native Hawaiians for the 
     overthrow and the deprivation of the rights of Native 
     Hawaiians to self-determination through Public Law 103-150 
     (107 Stat. 1510).
       ``(6) In 1898, the joint resolution entitled `Joint 
     Resolution to provide for annexing the Hawaiian Islands to 
     the United States', approved July 7, 1898 (30 Stat. 750), 
     ceded absolute title of all lands held by the Republic of 
     Hawai`i, including the government and crown lands of the 
     former Kingdom of Hawai`i, to the United States, but mandated 
     that revenue generated from the lands be used `solely for the 
     benefit of the inhabitants of the Hawaiian Islands for 
     educational and other public purposes'.
       ``(7) By 1919, the Native Hawaiian population had declined 
     from an estimated 1,000,000 in 1778 to an alarming 22,600, 
     and in recognition of this severe decline, Congress enacted 
     the Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which 
     designated approximately 200,000 acres of ceded public lands 
     for homesteading by Native Hawaiians.
       ``(8) Through the enactment of the Hawaiian Homes 
     Commission Act, 1920, Congress affirmed the special 
     relationship between the United States and the Native 
     Hawaiians, which was described by then Secretary of the 
     Interior Franklin K. Lane, who said: `One thing that 
     impressed me . . . was the fact that the natives of the 
     island who are our wards, I should say, and for whom in a 
     sense we are trustees, are falling off rapidly in numbers and 
     many of them are in poverty.'.
       ``(9) In 1938, Congress again acknowledged the unique 
     status of the Hawaiian people by including in the Act of June 
     20, 1938 (52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 
     392b, 392c, 396, 396a), a provision to lease lands within the 
     National Parks extension to Native Hawaiians and to permit 
     fishing in the area `only by native Hawaiian residents of 
     said area or of adjacent villages and by visitors under their 
     guidance.'.
       ``(10) Under the Act entitled `An Act to provide for the 
     admission of the State of Hawai`i into the Union', approved 
     March 18, 1959 (73 Stat. 4), the United States transferred 
     responsibility for the administration of the Hawaiian Home 
     Lands to the State of Hawai`i but reaffirmed the trust 
     relationship between the United States and the Hawaiian 
     people by retaining the exclusive power to enforce the trust, 
     including the power to approve land exchanges and amendments 
     to such Act affecting the rights of beneficiaries under such 
     Act.
       ``(11) In 1959, under the Act entitled `An Act to provide 
     for the admission of the State of Hawai`i into the Union', 
     the United States also ceded to the State of Hawai`i title to 
     the public lands formerly held by the United States, but 
     mandated that such lands be held by the State `in public 
     trust' and reaffirmed the special relationship that existed 
     between the United States and the Hawaiian people by 
     retaining the legal responsibility to enforce the public 
     trust responsibility of the State of Hawai`i for the 
     betterment of the conditions of Native Hawaiians, as defined 
     in section 201(a) of the Hawaiian Homes Commission Act, 1920.
       ``(12) The United States has recognized and reaffirmed 
     that--
       ``(A) Native Hawaiians have a cultural, historic, and land-
     based link to the indigenous people who exercised sovereignty 
     over the Hawaiian Islands, and that group has never 
     relinquished its claims to sovereignty or its sovereign 
     lands;
       ``(B) Congress does not extend services to Native Hawaiians 
     because of their race, but because of their unique status as 
     the indigenous people of a once sovereign nation as to whom 
     the United States has established a trust relationship;
       ``(C) Congress has also delegated broad authority to 
     administer a portion of the Federal trust responsibility to 
     the State of Hawai`i;
       ``(D) the political status of Native Hawaiians is 
     comparable to that of American Indians and Alaska Natives; 
     and
       ``(E) the aboriginal, indigenous people of the United 
     States have--
       ``(i) a continuing right to autonomy in their internal 
     affairs; and
       ``(ii) an ongoing right of self-determination and self-
     governance that has never been extinguished.
       ``(13) The political relationship between the United States 
     and the Native Hawaiian people has been recognized and 
     reaffirmed by the United States, as evidenced by the 
     inclusion of Native Hawaiians in--
       ``(A) the Native American Programs Act of 1974 (42 U.S.C. 
     2991 et seq.);
       ``(B) the American Indian Religious Freedom Act (42 U.S.C. 
     1996);
       ``(C) the National Museum of the American Indian Act (20 
     U.S.C. 80q et seq.);
       ``(D) the Native American Graves Protection and 
     Repatriation Act (25 U.S.C. 3001 et seq.);
       ``(E) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.);
       ``(F) the Native American Languages Act (25 U.S.C. 2901 et 
     seq.);
       ``(G) the American Indian, Alaska Native, and Native 
     Hawaiian Culture and Art Development Act (20 U.S.C. 4401 et 
     seq.);
       ``(H) the Workforce Investment Act of 1998 (29 U.S.C. 2801 
     et seq.); and
       ``(I) the Older Americans Act of 1965 (42 U.S.C. 3001 et 
     seq.).
       ``(14) In 1981, Congress instructed the Office of Education 
     to submit to Congress a comprehensive report on Native 
     Hawaiian education. The report, entitled the `Native Hawaiian 
     Educational Assessment Project', was released in 1983 and 
     documented that Native Hawaiians scored below parity with 
     regard to national norms on standardized achievement tests, 
     were disproportionately represented in many negative social 
     and physical statistics indicative of special educational 
     needs, and had educational needs that were related to their 
     unique cultural situation, such as different learning styles 
     and low self-image.
       ``(15) In recognition of the educational needs of Native 
     Hawaiians, in 1988, Congress enacted title IV of the Augustus 
     F. Hawkins-Robert T. Stafford Elementary and Secondary School 
     Improvement Amendments of 1988 (102 Stat. 130) to authorize 
     and develop supplemental educational programs to address the 
     unique conditions of Native Hawaiians.
       ``(16) In 1993, the Kamehameha Schools Bishop Estate 
     released a 10-year update of findings of the Native Hawaiian 
     Educational Assessment Project, which found that despite the 
     successes of the programs established under title IV of the 
     Augustus F. Hawkins-Robert T. Stafford Elementary and 
     Secondary School Improvement Amendments of 1988, many of the 
     same educational needs

[[Page 7072]]

     still existed for Native Hawaiians. Subsequent reports by the 
     Kamehameha Schools Bishop Estate and other organizations have 
     generally confirmed those findings. For example--
       ``(A) educational risk factors continue to start even 
     before birth for many Native Hawaiian children, including--
       ``(i) late or no prenatal care;
       ``(ii) high rates of births by Native Hawaiian women who 
     are unmarried; and
       ``(iii) high rates of births to teenage parents;
       ``(B) Native Hawaiian students continue to begin their 
     school experience lagging behind other students in terms of 
     readiness factors such as vocabulary test scores;
       ``(C) Native Hawaiian students continue to score below 
     national norms on standardized education achievement tests at 
     all grade levels;
       ``(D) both public and private schools continue to show a 
     pattern of lower percentages of Native Hawaiian students in 
     the uppermost achievement levels and in gifted and talented 
     programs;
       ``(E) Native Hawaiian students continue to be 
     overrepresented among students qualifying for special 
     education programs provided to students with learning 
     disabilities, mild mental retardation, emotional impairment, 
     and other such disabilities;
       ``(F) Native Hawaiians continue to be underrepresented in 
     institutions of higher education and among adults who have 
     completed 4 or more years of college;
       ``(G) Native Hawaiians continue to be disproportionately 
     represented in many negative social and physical statistics 
     indicative of special educational needs, as demonstrated by 
     the fact that--
       ``(i) Native Hawaiian students are more likely to be 
     retained in grade level and to be excessively absent in 
     secondary school;
       ``(ii) Native Hawaiian students have the highest rates of 
     drug and alcohol use in the State of Hawai`i; and
       ``(iii) Native Hawaiian children continue to be 
     disproportionately victimized by child abuse and neglect; and
       ``(H) Native Hawaiians now comprise over 23 percent of the 
     students served by the State of Hawai`i Department of 
     Education, and there are and will continue to be 
     geographically rural, isolated areas with a high Native 
     Hawaiian population density.
       ``(17) In the 1998 National Assessment of Educational 
     Progress, Hawaiian fourth-graders ranked 39th among groups of 
     students from 39 States in reading. Given that Hawaiian 
     students rank among the lowest groups of students nationally 
     in reading, and that Native Hawaiian students rank the lowest 
     among Hawaiian students in reading, it is imperative that 
     greater focus be placed on beginning reading and early 
     education and literacy in Hawai`i.
       ``(18) The findings described in paragraphs (16) and (17) 
     are inconsistent with the high rates of literacy and 
     integration of traditional culture and Western education 
     historically achieved by Native Hawaiians through a Hawaiian 
     language-based public school system established in 1840 by 
     Kamehameha III.
       ``(19) Following the overthrow of the Kingdom of Hawai`i in 
     1893, Hawaiian medium schools were banned. After annexation, 
     throughout the territorial and statehood period of Hawai`i, 
     and until 1986, use of the Hawaiian language as an 
     instructional medium in education in public schools was 
     declared unlawful. The declaration caused incalculable harm 
     to a culture that placed a very high value on the power of 
     language, as exemplified in the traditional saying: `I ka 
     `olelo no ke ola; I ka `olelo no ka make. In the language 
     rests life; In the language rests death.'.
       ``(20) Despite the consequences of over 100 years of 
     nonindigenous influence, the Native Hawaiian people are 
     determined to preserve, develop, and transmit to future 
     generations their ancestral territory and their cultural 
     identity in accordance with their own spiritual and 
     traditional beliefs, customs, practices, language, and social 
     institutions.
       ``(21) The State of Hawai`i, in the constitution and 
     statutes of the State of Hawai`i--
       ``(A) reaffirms and protects the unique right of the Native 
     Hawaiian people to practice and perpetuate their culture and 
     religious customs, beliefs, practices, and language;
       ``(B) recognizes the traditional language of the Native 
     Hawaiian people as an official language of the State of 
     Hawai`i, which may be used as the language of instruction for 
     all subjects and grades in the public school system; and
       ``(C) promotes the study of the Hawaiian culture, language, 
     and history by providing a Hawaiian education program and 
     using community expertise as a suitable and essential means 
     to further the program.

     ``SEC. 7203. PURPOSES.

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

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

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

[[Page 7073]]

     chairperson of the appropriate council, or upon the request 
     of the majority of the members of the appropriate council, 
     but in any event not less often than 4 times during each 
     calendar year. The provisions of the Federal Advisory 
     Committee Act shall not apply to the Education Council and 
     each island council.
       ``(h) Compensation.--Members of the Education Council and 
     each island council shall not receive any compensation for 
     service on the Education Council and each island council, 
     respectively.
       ``(i) Report.--Not later than 4 years after the date of 
     enactment of the Better Education for Students and Teachers 
     Act, the Secretary shall prepare and submit to the Committee 
     on Education and the Workforce of the House of 
     Representatives and the Committee on Indian Affairs of the 
     Senate a report that summarizes the annual reports of the 
     Education Council, describes the allocation and use of funds 
     under this part, and contains recommendations for changes in 
     Federal, State, and local policy to advance the purposes of 
     this part.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $300,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years. Funds 
     appropriated under this subsection shall remain available 
     until expended.

     ``SEC. 7205. PROGRAM AUTHORIZED.

       ``(a) General Authority.--
       ``(1) Grants and contracts.--The Secretary is authorized to 
     make direct grants to, or enter into contracts with--
       ``(A) Native Hawaiian educational organizations;
       ``(B) Native Hawaiian community-based organizations;
       ``(C) public and private nonprofit organizations, agencies, 
     and institutions with experience in developing or operating 
     Native Hawaiian programs or programs of instruction in the 
     Native Hawaiian language; and
       ``(D) consortia of the organizations, agencies, and 
     institutions described in subparagraphs (A) through (C),

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

     ``SEC. 7206. ADMINISTRATIVE PROVISIONS.

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

     ``SEC. 7207. DEFINITIONS.

       ``In this part:
       ``(1) Native hawaiian.--The term `Native Hawaiian' means 
     any individual who is--
       ``(A) a citizen of the United States; and
       ``(B) a descendant of the aboriginal people who, prior to 
     1778, occupied and exercised sovereignty in the area that now 
     comprises the State of Hawai`i, as evidenced by--
       ``(i) genealogical records;
       ``(ii) Kupuna (elders) or Kama`aina (long-term community 
     residents) verification; or
       ``(iii) certified birth records.
       ``(2) Native hawaiian community-based organization.--The 
     term `Native Hawaiian community-based organization' means any 
     organization that is composed primarily of Native Hawaiians 
     from a specific community and that assists in the social, 
     cultural, and educational development of Native Hawaiians in 
     that community.
       ``(3) Native hawaiian educational organization.--The term 
     `Native Hawaiian educational organization' means a private 
     nonprofit organization that--
       ``(A) serves the interests of Native Hawaiians;
       ``(B) has Native Hawaiians in substantive and policymaking 
     positions within the organization;

[[Page 7074]]

       ``(C) incorporates Native Hawaiian perspective, values, 
     language, culture, and traditions into the core function of 
     the organization;
       ``(D) has demonstrated expertise in the education of Native 
     Hawaiian youth; and
       ``(E) has demonstrated expertise in research and program 
     development.
       ``(4) Native hawaiian language.--The term `Native Hawaiian 
     language' means the single Native American language 
     indigenous to the original inhabitants of the State of 
     Hawai`i.
       ``(5) Native hawaiian organization.--The term `Native 
     Hawaiian organization' means a private nonprofit organization 
     that--
       ``(A) serves the interests of Native Hawaiians;
       ``(B) has Native Hawaiians in substantive and policymaking 
     positions within the organizations; and
       ``(C) is recognized by the Governor of Hawai`i for the 
     purpose of planning, conducting, or administering programs 
     (or portions of programs) for the benefit of Native 
     Hawaiians.
       ``(6) Office of hawaiian affairs.--The term `Office of 
     Hawaiian Affairs' means the office of Hawaiian Affairs 
     established by the Constitution of the State of Hawai`i.

                   ``PART C--ALASKA NATIVE EDUCATION

     ``SEC. 7301. SHORT TITLE.

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

     ``SEC. 7302. FINDINGS.

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

     ``SEC. 7303. PURPOSES.

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

     ``SEC. 7304. PROGRAM AUTHORIZED.

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

     ``SEC. 7305. ADMINISTRATIVE PROVISIONS.

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

     ``SEC. 7306. DEFINITIONS.

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

     SEC. 702. CONFORMING AMENDMENTS.

       (a) Higher Education Act of 1965.--Section 317(b) of the 
     Higher Education Act of 1965 (20 U.S.C. 1059d(b)) is 
     amended--
       (1) in paragraph (1), by striking ``section 9308'' and 
     inserting ``section 7306''; and
       (2) in paragraph (3), by striking ``section 9212'' and 
     inserting ``section 7207''.
       (b) Public Law 88-210.--Section 116 of Public Law 88-210 
     (as added by section 1 of Public Law 105-332 (112 Stat. 
     3076)) is amended by striking ``section 9212 of the Native 
     Hawaiian Education Act (20 U.S.C. 7912)'' and inserting 
     ``section 7207 of the Native Hawaiian Education Act''.
       (c) Carl D. Perkins Vocational and Technical Education Act 
     of 1998.--Section

[[Page 7075]]

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

                          TITLE VIII--REPEALS

     SEC. 801. REPEALS.

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

                   TITLE IX--MISCELLANEOUS PROVISIONS

     SEC. 901. INDEPENDENT EVALUATION.

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

                  ``TITLE IX--MISCELLANEOUS PROVISIONS

                    ``PART A--INDEPENDENT EVALUATION

     ``SEC. 9101. IN GENERAL.

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

     ``SEC. 9102. COMPONENTS EVALUATED.

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

     ``SEC. 9103. REPORTING.

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

     ``SEC. 9104. DEFINITIONS.

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

     ``SEC. 9105. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $4,000,000 for fiscal year 2002. Such funds shall remain 
     available until expended.''.
  SA 359. Ms. COLLINS proposed an amendment to amendment SA 358 
proposed by Mr. Jeffords to the bill (S. 1) to extend programs and 
activities under the Elementary and Secondary Education Act of 1965; as 
follows:

       On page 177, strike lines 1 through 6, and insert the 
     following:
       ``(3) To provide assistance to States and local educational 
     agencies in selecting or developing screening instruments, 
     rigorous diagnostic reading assessments, and classroom-based 
     instructional assessments.
       On page On page 177, line 19, insert ``educational agency'' 
     after ``State''.
       On page 178, strike lines 3 through 8, and insert the 
     following:
       ``(1) In general.--From the total amount made available to 
     carry out this subpart for any fiscal year and not reserved 
     under section 1226, the Secretary shall allot among

[[Page 7076]]

     each of the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico, in accordance with paragraph 
     (2)--
       ``(A) 100 percent of such remaining amount for each of the 
     fiscal years 2002 and 2003; and
       ``(B) 75 percent of such remaining amount for each of the 
     fiscal years 2004 through 2008.
       On page 179, line 19, insert ``number or'' after ``high''.
       On page 180, line 7, insert ``number or'' after ``high''.
       On page 180, strike lines 11 through 20, and insert the 
     following:
       ``(5) State requirement.--In distributing subgrant funds to 
     local educational agencies, a State shall--
       ``(A) provide the funds in sufficient amounts to enable the 
     local educational agencies to improve reading; 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) Local eligibility.--In distributing subgrant funds 
     under this subsection, a local educational agency shall 
     provide funds only to schools that--
       On page 181, line 9, strike ``a'' and insert ``screening 
     instruments,''
       On page 181, lines 9 and 10, strike ``assessment'' and 
     insert ``assessments, and classroom-based instructional 
     assessments''.
       On page 183, line 14, strike ``may'' and insert ``shall''.
       On page 183, lines 15 and 16, strike ``or otherwise''.
       On page 184, line 2, insert ``(including family literacy 
     services)'' after ``approaches''.
       On page 184, line 7, strike ``from rigorous diagnostic 
     reading assessments''.
       On page 184, line 14, strike ``the''.
       On page 184, strike lines 16 and 17, and insert the 
     following:
       ``(I) Reporting data for all students and categories of 
     students identified under section 1111(b)(2)(B)(v).
       On page 184, line 24, insert ``educational agency'' after 
     ``State''.
       On page 185, line 9, strike ``that receives a grant under 
     this section''.
       On page 185, line 10, strike ``15'' and insert ``100''.
       On page 185, line 11, strike ``provided under the grant'' 
     and insert ``made available under paragraph (1)''.
       On page 186, line 4, strike ``may'' and insert ``shall''.
       On page 186, line 5, strike ``or otherwise''.
       On page 186, line 7, strike ``that''.
       On page 186, line 8, strike ``receives a grant under this 
     section''.
       On page 186, lines 9 and 10, strike ``5 percent of the 
     amount of the funds provided under the grant'' and insert 
     ``25 percent of the amount of the funds made available under 
     paragraph (1)''.
       On page 187, line 13, strike ``(3)'' and insert ``(5)''.
       On page 187, lines 15 and 16, strike ``that receives a 
     grant under this section shall'' and insert ``may''.
       On page 187, lines 15 and 16, strike ``5 percent of the 
     amount of the funds provided under the grant'' and insert 
     ``25 percent of the amount of the funds made available under 
     paragraph (1)''.
       On page 188, lines 5 and 6, strike ``from rigorous 
     diagnostic reading assessments''.
       On page 188, line 24, strike ``subsection (c)(7)(H)'' and 
     insert ``subsections (c)(7) (H) and (I)''.
       On page 189, line 7, strike ``section 1116(c)'' and insert 
     ``subsection (c)(7)(I)''.
       On page 189, beginning with line 20, strike all through 
     page 190, line 18, and insert the following:
       ``(a) In General.--For fiscal year 2004 and each succeeding 
     fiscal year the Secretary is authorized to award grants, on a 
     competitive basis according to the criteria described in 
     subsection (b) (2) or (3), to any State educational agency 
     that received a grant under section 1222, for the use 
     specified in subsection (c).
       ``(b) Amount Available for Grants; Criteria for Grants.--
       ``(1) Amount.--From the total amount made available to 
     carry out this subpart for fiscal year 2004 or any succeeding 
     fiscal year that is not used under section 1222 or reserved 
     under section 1226, the Secretary shall award grants under 
     this section according to the criteria described in paragraph 
     (2) or (3).
       ``(2) Criteria for awarding competitive grants to states.--
     In carrying out this section, the Secretary shall award 
     grants to those State educational agencies that--
       ``(A) for 2 consecutive years, make or exceed adequate 
     yearly progress in reading for all third graders, in the 
     aggregate, who attend schools served by the local educational 
     agencies receiving funding under this subpart;
       ``(B) for each of the same such consecutive 2 years, 
     demonstrate that an increasing percentage of third graders in 
     each of the groups described in section 1111(b)(2)(B)(v)(II) 
     in the schools served by the local educational agencies 
     receiving funds under this subpart are reaching the 
     proficient level in reading; and
       ``(C) for each of the same such consecutive 2 years, 
     demonstrate that schools receiving funds under this subpart 
     are improving the reading skills of students in the first and 
     second grades based on screening, diagnostic, or classroom-
     based instructional assessments.
       ``(3) Interim criteria for awarding competitive grants to 
     states.--If a State has not defined adequate yearly progress 
     and implemented an assessment of reading in grade 3 as 
     required under subsection 1111(b), then the Secretary shall 
     award grants to such State educational agency on the basis of 
     evidence supplied by the State that, for 2 consecutive years, 
     increasing percentages of students are reading at grade level 
     or above in grades 1 through 3 in schools receiving funds 
     under this subpart.
       ``(4) Continuation of performance awards.--For any State 
     that receives a competitive grant under this section, the 
     Secretary shall make an award for each of the following, 
     consecutive years that the State demonstrates it is 
     continuing to meet the criteria described in paragraph (2) or 
     (3).
       ``(5) Distribution of performance grants.--The Secretary 
     shall make a grant to each State with an application approved 
     under this section in proportion to the number of poor 
     children determined under section 1124(c)(1)(A) for the State 
     as compared to the number of such poor children in all States 
     with applications approved in that year.
       On page 190, line 21, strike ``include in its application'' 
     and insert ``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''.
       On page 191, beginning with line 1, strike all through page 
     191, line 10, and insert the following:
       ``(ii) Evidence that the State has met the criteria 
     described in paragraph (2) or (3).
       On page 191, line 11, strike ``(iv)'' and insert ``(iii)''.
       On page 191, line 17, strike ``(v)'' and insert ``(iv)''.
       Beginning on page 192, strike line 19 and all that follows 
     through line 3 on page 193, and insert the following:
       ``(B) Evidence that a local educational agency has, for 2 
     consecutive years, made or exceeded adequate yearly progress 
     in reading for all third graders, in the aggregate, who 
     attend schools receiving funds under this subpart.
       ``(C) Evidence that a local educational agency has, for 
     each of the same such consecutive 2 years, demonstrated that 
     an increasing percentage of the third graders in each of the 
     groups described in section 1111(b)(2)(B)(v)(II) in schools 
     receiving funds under this subpart are reaching the 
     proficient level in reading.
       ``(D) Evidence that a local educational agency has, for 
     each of the same such consecutive 2 years, demonstrated that 
     schools receiving funds under this subpart are improving the 
     reading skills of students in the first and second grades 
     based on screening, diagnostic, or classroom-based 
     instructional assessments.
       On page 193, between lines 19 and 20, insert the following:
       ``(5) Interim criteria for distributing funds.--If a State 
     has not defined adequate yearly progress or implemented an 
     assessment of reading in grade 3 as required under subsection 
     1111(b), then such State shall award grants, on a competitive 
     basis according to the criteria described in paragraphs (4) 
     (A), (E), (F), and (G), to local educational agencies that 
     for 2 consecutive years increased the percentage of students 
     reading at grade level or above in grades 1 through 3 in 
     schools receiving funds under this subpart.
       On page 194, strike lines 2 and 3, and insert the 
     following:
       ``(a) Applications.--
       ``(1) In general.--A State educational agency that desires 
     to receive a grant under section 1222 shall submit an 
     application to
       On page 194, between lines 6 and 7, insert the following:
       ``(2) Special application provisions.--For those States 
     that have received a grant under part C of title II (as such 
     part was in effect on the day preceding the date of enactment 
     of the Better Education for Students and Teachers Act), 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 
     States.
       On page 195, line 17, insert ``Federal,'' after ``other''.
       On page 201, between lines 13 and 14, insert the following:

     ``SEC. 1225. ACCOUNTABILITY FOR RESULTS.

       ``(a) State Accountability.--
       ``(1) Reductions.--If the Secretary makes the determination 
     described in paragraphs (2) or (3) for 2 consecutive years, 
     then the Secretary shall reduce the size of a State's grant 
     under this subpart for the subsequent fiscal year.
       ``(2) Determination.--The determination referred to in 
     paragraph (1) is the determination, made on the basis of data 
     from the State assessment system described in section 1111, 
     that a State--
       ``(A) failed to make adequate yearly progress in reading 
     (as defined in the State's plan under section 1111) for all 
     third graders, in the aggregate, who attend schools receiving 
     funds under this subpart; and

[[Page 7077]]

       ``(B) failed to increase the percentage of third graders 
     within each of the groups described in section 
     1111(b)(2)(B)(v)(II) who attend schools receiving funds under 
     this subpart in reaching the proficient level in reading as 
     compared to the previous school year.
       ``(3) Interim criteria for determination.--If a State has 
     not defined adequate yearly progress and implemented an 
     assessment of reading in grade 3 as required under subsection 
     1111(b), then the determination referred to in paragraph (1) 
     is the determination that such State failed to increase the 
     percentage of students reading at grade level or above in 
     grades 1 through 3 in schools receiving funds under this 
     subpart.
       ``(4) Continued reductions.--If the Secretary makes the 
     determination described in paragraph (2) or (3) for a third 
     or subsequent consecutive year, then the Secretary shall 
     continue to reduce a States's grant under this subpart in 
     each such consecutive year.
       ``(b) Local Educational Agency Accountability.--
       ``(1) Reductions.--If the State educational agency makes 
     the determination described in paragraph (2) or (3) for a 
     local educational agency receiving funds under this subpart 
     for 2 consecutive years, then the State shall make that local 
     educational agency a priority for professional development 
     and technical assistance provided under section 1222(d) (3) 
     and (4).
       ``(2) Determination.--The determination referred to in 
     paragraph (1) is the determination, made on the basis of data 
     from the State assessment system described in section 1111, 
     that a local educational agency--
       ``(A) failed to make adequate yearly progress in reading 
     (as defined in the State plan under section 1111) for all 
     third graders, in the aggregate, who attend schools that are 
     served by the agency and receive funds under this subpart; 
     and
       ``(B) failed to increase the percentage of third graders, 
     within each of the groups described in section 
     1111(b)(2)(B)(v)(II), who attend schools that are served by 
     the agency and receive funds under this subpart, reaching the 
     proficient level in reading as compared to the previous 
     school year.
       ``(3) Interim criteria for determination.--If a State has 
     not defined adequate yearly progress and implemented an 
     assessment of reading in grade 3 as required under subsection 
     1111(b), then the determination referred to in paragraph (1) 
     is the determination that a local educational agency failed 
     to increase the percentage of students reading at grade level 
     or above in grades 1 through 3 in schools receiving funds 
     under this subpart.
       ``(4) Continued reductions.--If the State makes the 
     determination described in paragraph (2) for a third or 
     subsequent consecutive year, then the State shall continue to 
     provide professional development and technical assistance and 
     may require the local educational agency to institute a new 
     reading curriculum that has demonstrated success in improving 
     the reading skills of students in kindergarten through third 
     grade, replace school district or school staff involved in 
     the planning or implementation of the reading curriculum, or 
     take some other action or actions to address the cause or 
     causes for such failure to demonstrate progress. If the local 
     educational agency refuses to take such action, then the 
     State may reduce or eliminate the grant to that local 
     educational agency.
       On page 201, line 14, strike ``1225'' and insert ``1226''.
       On page 201, line 18, strike ``1226'' and insert ``1227''.
       On page 201, line 21, strike ``1227'' and insert ``1228''.
       On page 201, line 22, strike ``1226'' and insert ``1227''.
       On page 201, line 23, strike ``1225'' and insert ``1226''.
       On page 202, line 4, strike ``and''.
       On page 202, line 8, strike the period and insert ``; 
     and''.
       On page 202, between lines 8 and 9, insert the following:
       ``(3) 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).
       On page 202, line 9, strike ``1227'' and insert ``1228''.
       On page 202, line 11, strike ``1225'' and insert ``1226''.
       On page 203, line 15, insert ``, including through the 
     Department and the National Center for Family Literacy'' 
     after ``entities''.
       On page 203, line 11, strike ``1228'' and insert ``1229''.
       On page 205, line 22, strike ``and'' and insert ``or''.
                                  ____

  SA 360. Mr. HARKIN (for himself, Mr. Hagel, Mr. Jeffords, Mr. 
Kennedy, Ms. Stabenow, Mr. Dodd, Mr. Reed, Mr. Wellstone, Mr. Levin, 
Mr. Kohl, Ms. Mikulski, Mr. Breaux, Ms. Collins, Mr. Chafee, and Mr. 
Johnson) proposed an amendment to amendment SA 358 proposed by Mr. 
Jeffords to the bill (S. 1) to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; as follows:

       At the end of title IX, add the following:

     SEC. __. HELPING CHILDREN SUCCEED BY FULLY FUNDING THE 
                   INDIVIDUALS WITH DISABILITIES EDUCATION ACT 
                   (IDEA).

       (a) Findings.--Congress makes the following findings:
       (1) All children deserve a quality education.
       (2) In Pennsylvania Association for Retarded Children vs. 
     Commonwealth of Pennsylvania (334 F. Supp. 1247)(E. Dist. Pa. 
     1971), and Mills vs. Board of Education of the District of 
     Columbia (348 F. Supp. 866)(Dist. D.C. 1972), the courts 
     found that children with disabilities are entitled to an 
     equal opportunity to an education under the 14th amendment of 
     the Constitution.
       (3) In 1975, Congress passed what is now known as the 
     Individuals with Disabilities Education Act (referred to in 
     this section as ``IDEA'') (20 U.S.C. 1400 et seq.) to help 
     States provide all children with disabilities a free, 
     appropriate public education in the least restrictive 
     environment. At full funding, Congress contributes 40 percent 
     of the average per pupil expenditure for each child with a 
     disability served.
       (4) Before 1975, only \1/5\ of the children with 
     disabilities received a formal education. At that time, many 
     States had laws that specifically excluded many children with 
     disabilities, including children who were blind, deaf, or 
     emotionally disturbed, from receiving such an education.
       (5) IDEA currently serves an estimated 200,000 infants and 
     toddlers, 600,000 preschoolers, and 5,400,000 children 6 to 
     21 years of age.
       (6) IDEA enables children with disabilities to be educated 
     in their communities, and thus, has assisted in dramatically 
     reducing the number of children with disabilities who must 
     live in State institutions away from their families.
       (7) The number of children with disabilities who complete 
     high school has grown significantly since the enactment of 
     IDEA.
       (8) The number of children with disabilities who enroll in 
     college as freshmen has more than tripled since the enactment 
     of IDEA.
       (9) The overall effectiveness of IDEA depends upon well 
     trained special education and general education teachers, 
     related services personnel, and other school personnel. 
     Congress recognizes concerns about the nationwide shortage of 
     personnel serving students with disabilities and the need for 
     improvement in the qualifications of such personnel.
       (10) IDEA has raised the Nation's awareness about the 
     abilities and capabilities of children with disabilities.
       (11) Improvements to IDEA in the 1997 amendments increased 
     the academic achievement of children with disabilities and 
     helped them to lead productive, independent lives.
       (12) Changes made in 1997 also addressed the needs of those 
     children whose behavior impedes learning by implementing 
     behavioral assessments and intervention strategies to ensure 
     that they receive appropriate supports in order to receive a 
     quality education.
       (13) IDEA requires a full partnership between parents of 
     children with disabilities and education professionals in the 
     design and implementation of the educational services 
     provided to children with disabilities.
       (14) While the Federal Government has more than doubled 
     funding for part B of IDEA since 1995, the Federal Government 
     has never provided more than 15 percent of the maximum State 
     grant allocation for educating children with disabilities.
       (15) By fully funding IDEA, Congress will strengthen the 
     ability of States and localities to implement the 
     requirements of IDEA.
       (b) Local Educational Agency Eligibility.--Clauses (i) and 
     (ii) of section 613(a)(2)(C) of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1413(a)(2)(C)) is 
     amended to read as follows:
       ``(i) Notwithstanding clauses (ii) and (iii) of 
     subparagraph (A), for any fiscal year for which amounts 
     appropriated to carry out section 611 exceeds $4,100,000,000, 
     a local educational agency may treat as local funds, for the 
     purpose of such clauses, up to 55 percent of the amount of 
     funds it receives under this part that exceeds the amount it 
     received under this part for fiscal year 2001, except where a 
     local educational agency shows that it is meeting the 
     requirements of this part, the local educational agency may 
     petition the State to waive, in whole or in part, the 55 
     percent cap under this clause.
       ``(ii) Notwithstanding clause (i), if the Secretary 
     determines that a local educational agency is not meeting the 
     requirements of this part, the Secretary may prohibit the 
     local educational agency from treating funds received under 
     this part as local funds under clause (i) for any fiscal 
     year, and may redirect the use of those funds to other 
     educational programs within the local educational agency.''.
       (c) Funding.--Section 611(j) of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411(j)) is amended to 
     read as follows:
       ``(j) Funding.--For the purpose of carrying out this part, 
     other than section 619, there are authorized to be 
     appropriated, and there are appropriated--

[[Page 7078]]

       ``(1) $8,823,685,000 for fiscal year 2002;
       ``(2) $11,323,685,000 for fiscal year 2003;
       ``(3) $13,823,685,000 for fiscal year 2004;
       ``(4) $16,323,685,000 for fiscal year 2005;
       ``(5) $18,823,685,000 for fiscal year 2006;
       ``(6) $21,067,600,000 for fiscal year 2007;
       ``(7) $21,742,019,000 for fiscal year 2008;
       ``(8) $22,423,068,000 for fiscal year 2009;
       ``(9) $23,095,622,000 for fiscal year 2010; and
       ``(10) $23,751,456,000 for fiscal year 2011.''.
                                  ____

  SA 361. Mr. JEFFORDS (for himself and Mr. Bond) proposed an amendment 
to amendment SA 358 proposed by Mr. Jeffords to the bill (S. 1) to 
extend programs and activities under the Elementary and Secondary 
Education Act of 1965; as follows:

       On page 47, beginning with line 13, strike all through page 
     48, line 14, and insert the following:
       ``(i) a State may defer the commencement, or suspend the 
     administration, of the assessments described in this 
     paragraph, that were not required prior to the date of 
     enactment of the Better Education for Students and Teachers 
     Act, for 1 year, for each year for which the amount 
     appropriated for grants under section 6203(a) 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;
       ``(IV) $400,000,000 for fiscal year 2005;
       ``(V) $410,000,000 for fiscal year 2006;
       ``(VI) $420,000,000 for fiscal year 2007; and
       ``(VII) $430,000,000 for fiscal year 2008; and

       ``(ii) the Secretary may permit a State to commence the 
     assessments, that were required by amendments made to this 
     paragraph by the Better Education for Students and Teachers 
     Act, in school year 2006-2007, if the State demonstrates to 
     the Secretary that exceptional or uncontrollable 
     circumstances, such as a natural disaster or a precipitous or 
     unforeseen decline in the financial resources of the local 
     educational agency or school, prevent full implementation of 
     the assessments in school year 2005-2006 and that the State 
     will administer such assessments during school year 2006-
     2007.
       On page 778, strike lines 5 through 10, and insert the 
     following:
       ``(a) Grants for State Assessments and Related 
     Activities.--
       ``(1) State grants authorized.--From amounts appropriated 
     under paragraph (3) the Secretary shall award grants to 
     States to enable the States to pay the costs of--
       ``(A) developing assessments and standards required by 
     amendments made to this Act by the Better Education for 
     Students and Teachers Act; and
       ``(B) other activities described in this part or related to 
     ensuring accountability for results in the State's public 
     elementary schools or secondary schools, and local 
     educational agencies, such as--
       ``(i) developing content and performance standards, and 
     aligned assessments, in subjects other than those assessments 
     that were required by amendments made to section 1111 by the 
     Better Education for Students and Teachers Act; and
       ``(ii) administering the assessments required by amendments 
     made to section 1111 by the Better Education for Students and 
     Teachers Act.
       ``(2) Allocations to states.--
       ``(A) In general.--From the amount appropriated to carry 
     out this subsection for any fiscal year, the Secretary shall 
     first allocate $3,000,000 to each State.
       ``(B) Remainder.--The Secretary shall allocate any 
     remaining funds among the States on the basis of their 
     respective numbers of children enrolled in grades 3 through 8 
     in public elementary schools and secondary schools.
       ``(C) Definition of state.--For the purpose of this 
     subsection, the term `State' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.
       ``(3) Authorization of appropriations.--For the purposes of 
     carrying out paragraph (1), there are authorized to be 
     appropriated $400,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each of the succeeding 6 fiscal 
     years.
                                  ____

  SA 362. Mr. TORRICELLI (for himself and Mr. Fitzgerald) submitted an 
amendment intended to be proposed by him to the bill S. 1, to extend 
programs and activities under the Elementary and Secondary Education 
Act of 1965; which was ordered to lie on the table; as follows:

       On page 794, after line 7, add the following:

     SEC. 902. MICROBIOLOGICAL PERFORMANCE STANDARDS FOR MEAT AND 
                   POULTRY FOR SCHOOL NUTRITION PROGRAMS.

       Section 9(a) of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1758(a)) is amended by adding at the end 
     the following:
       ``(4) Microbiological performance standards for meat and 
     poultry for school nutrition programs.--
       ``(A) In general.--The Secretary shall ensure that all meat 
     and poultry purchased for a program carried out under this 
     Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
     seq.) meets performance standards for microbiological 
     hazards, as determined by the Secretary.
       ``(B) Basis.--The standards shall be based on and 
     comparable to the stringent requirements used by national 
     purchasers of meat and poultry (including purchasers for fast 
     food restaurants), as determined by the Secretary.
       ``(C) Review.--The Secretary shall periodically review the 
     standards to determine the impact of the standards on 
     reducing human illness.''.

  SA 363. Mr. TORRICELLI submitted an amendment intended to be proposed 
by him to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       On page 67, line 18, strike ``and''.
       On page 67, line 21, strike all after ``1118'' and insert 
     ``; and''.
       On page 67, between lines 21 and 22, insert the following:
       ``(11) where appropriate, a description of how the local 
     educational agency will use funds under this part to support 
     school year extension programs under section 1120C for low-
     performing schools.'';
       On page 161, between lines 9 and 10, insert the following:

     SEC. 120D. SCHOOL YEAR EXTENSION ACTIVITIES.

       Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 1120C. SCHOOL YEAR EXTENSION ACTIVITIES.

       ``(a) Findings.--Congress finds that--
       ``(1) the length of the academic year at most elementary 
     and secondary schools in the United States consists of 
     approximately 175 to 180 academic days, while the length of 
     the academic years at elementary and secondary schools in a 
     majority of the other industrialized countries consists of 
     approximately 190 to 240 academic days;
       ``(2) eighth-grade students from the United States have 
     scored lower, on average, in mathematics than students in 
     Japan, France, and Canada;
       ``(3) various studies indicate that extending the length of 
     the academic year at elementary and secondary schools results 
     in a significant increase in actual student learning time, 
     even when much of the time in the extended portion of the 
     academic year is used for increased teacher training and 
     increased parent-teacher interaction;
       ``(4) in the final 4 years of schooling, students in 
     schools in the United States are required to spend a total of 
     1,460 hours on core academic subjects, which is less than 
     half of the 3,528 hours so required in Germany, the 3,280 
     hours so required in France, and the 3,170 hours so required 
     in Japan;
       ``(5) American students' lack of formal schooling is not 
     counterbalanced with more homework as only 29 percent of 
     American students report spending at least 2 hours on 
     homework per day compared to half of all European students;
       ``(6) extending the length of the academic year at 
     elementary and secondary schools will lessen the need for 
     review, at the beginning of an academic year, of course 
     material covered in the previous academic year; and
       ``(7) in 1994, the Commission on Time and Learning 
     recommended that school districts keep schools open longer to 
     meet the needs of children and communities.
       ``(b) Use of Funds.--
       ``(1) In general.--A local educational agency may use funds 
     received under this part to--
       ``(A) to extend the length of the school year to 210 days, 
     including necessary increases in compensation to employees;
       ``(B) study the feasibility of an effective method for 
     extending learning time within or beyond the school day or 
     year, including consultation with other schools or local 
     educational agencies that have designed or implemented 
     extended learning time programs;
       ``(C) conduct outreach to and consult with community 
     members, including parents, students, and other stakeholders, 
     such as tribal leaders, to develop a plan to extend learning 
     time within or beyond the school day or year; and
       ``(D) research, develop, and implement strategies, 
     including changes in curriculum and instruction, for 
     maximizing the quality and percentage of common core learning 
     time in the school day and extending learning time during or 
     beyond the school day or year.
       ``(2) Definition.--In this section, the term `common core 
     learning time' means high-quality, engaging instruction in 
     challenging content in the core academic subjects of English, 
     mathematics, science, reading, foreign languages, civics and 
     government, economics, arts, history, and geography.
       ``(c) Application.--A local educational agency desiring to 
     use funds under this section shall submit an application to 
     the State educational agency at such time, in such manner, 
     and accompanied by such information as the agency may 
     require. Each application shall describe--
       ``(1) the activities to be carried out under this section;
       ``(2) any study or other information-gathering project for 
     which funds will be used;
       ``(3) the strategies and methods the applicant will use to 
     enrich and extend learning

[[Page 7079]]

     time for all students and to maximize the percentage of 
     common core learning time in the school day, such as block 
     scheduling, team teaching, longer school days or years, and 
     extending learning time through new distance-learning 
     technologies;
       ``(4) the strategies and methods the applicant will use, 
     including changes in curriculum and instruction, to challenge 
     and engage students and to maximize the productiveness of 
     common core learning time, as well as the total time students 
     spend in school and in school-related enrichment activities;
       ``(5) the strategies and methods the applicant intends to 
     employ to provide continuing financial support for the 
     implementation of any extended school day or school year;
       ``(6) with respect to any application to carry out 
     activities described in subsection (b)(1)(A), a description 
     of any feasibility or other studies demonstrating the 
     sustainability of a longer school year;
       ``(7) the extent of involvement of teachers and other 
     school personnel in investigating, designing, implementing 
     and sustaining the activities assisted under this section;
       ``(8) the process to be used for involving parents and 
     other stakeholders in the development and implementation of 
     the activities assistance under this section;
       ``(9) any cooperation or collaboration among public housing 
     authorities, libraries, businesses, museums, community-based 
     organizations, and other community groups and organizations 
     to extend engaging, high-quality, standards-based learning 
     time outside of the school day or year, at the school or at 
     some other site;
       ``(10) the training and professional development activities 
     that will be offered to teachers and others involved in the 
     activities assisted under this section;
       ``(11) the goals and objectives of the activities assisted 
     under this section, including a description of how such 
     activities will assist all students to reach State standards;
       ``(12) the methods by which the applicant will assess 
     progress in meeting such goals and objectives; and
       ``(13) how the applicant will use funds provided under this 
     section in coordination with funds provided under other 
     Federal laws.
       ``(e) Collective Bargaining Agreements.--Nothing in this 
     section shall be construed to permit a local educational 
     agency to carry out programs or activities that conflict with 
     or otherwise supersede the provision of any collective 
     bargaining agreement, memoranda of understanding, or other 
     agreement between employees and the local educational 
     agency.''.
                                  ____

  SA 364. Mr. TORRICELLI submitted an amendment intended to be proposed 
by him to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       On page 893, after line 14, add the following:

     SEC. 902. CAMPUS FIRE SAFETY.

       (a) Short Title.--This section may be cited as the ``Campus 
     Fire Safety Right to Know Act''.
       (b) Disclosure of Fire Safety Standards and Measures With 
     Respect to Campus Student Housing Facilities.--Section 485 of 
     the Higher Education Act of 1965 (20 U.S.C. 1092) is 
     amended--
       (1) in subsection (a)(1)--
       (A) by striking ``and'' at the end of subparagraph (N);
       (B) by striking the period at the end of subparagraph (O) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(P) the fire safety report prepared by the institution 
     pursuant to subsection (h).''; and
       (2) by adding at the end the following new subsection:
       ``(h) Disclosure of Fire Safety Standards and Measures.--
       ``(1) Fire safety reports required.--Each eligible 
     institution participating in any program under this title 
     shall, beginning in academic year 2002-2003, and each 
     academic year thereafter, prepare, publish, and distribute, 
     through appropriate publications, including the Internet, or 
     mailings, to all current students and employees, and upon 
     request to any applicant for enrollment or employment, an 
     annual fire safety report containing at least the following 
     information with respect to the fire safety practices and 
     standards of that institution:
       ``(A) A statement that identifies each campus student 
     housing facility of the institution, and whether each such 
     facility is equipped with a fire sprinkler system or another 
     equally protective fire safety system.
       ``(B) Statistics concerning the occurrence at campus 
     student housing facilities, during the 2 preceding academic 
     years for which data are available, of fires and false fire 
     alarms.
       ``(C) For each such occurrence, a statement of the human 
     injuries or deaths and the structural damage caused by the 
     occurrence.
       ``(D) Information regarding fire alarms, smoke alarms, the 
     presence of adequate fire escape planning or protocols, rules 
     on portable electrical appliances, smoking and open flames 
     (such as candles), regular mandatory supervised fire drills, 
     and planned and future improvement in fire safety with regard 
     to campus student housing facilities.
       ``(E) Information about fire safety education and training 
     provided to students, faculty, and staff, including the 
     percentage of students, faculty, and staff who have 
     participated in such education and training.
       ``(F) Information concerning fire safety at housing 
     facilities owned or controlled by student fraternities and 
     sororities that are recognized by the institution, 
     including--
       ``(i) information reported to the institution under 
     paragraph (5); and
       ``(ii) a statement concerning whether and how the 
     institution works with recognized student fraternities and 
     sororities to make housing facilities owned or controlled by 
     such fraternities or sororities more fire safe.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to authorize the Secretary to require 
     particular policies, procedures, or practices by institutions 
     of higher education with respect to fire safety.
       ``(3) Reports.--Each institution participating in any 
     program under this title shall make timely reports to the 
     campus community on fires at campus student housing 
     facilities that are reported to local fire departments and 
     the incidence of false fire alarms at such facilities. Such 
     reports shall be provided to students and employees in a 
     manner that is timely and that will aid in the prevention of 
     similar occurrences.
       ``(4) Logs.--Each institution participating in any program 
     under this title shall make, keep, and maintain a log, 
     written in a form that can be easily understood, recording 
     all fires at campus student housing facilities reported to 
     local fire departments, including the nature, date, time, and 
     general location of each fire, and all false fire alarms. All 
     entries that are required pursuant to this paragraph shall, 
     except where disclosure of such information is prohibited by 
     law, be open to public inspection.
       ``(5) Fraternities and sororities.--Each institution 
     participating in a program under this title shall request 
     each fraternity and sorority that is recognized by the 
     institution to collect and report to the institution the 
     information described in subparagraphs (A) through (E) of 
     paragraph (1), as applied to the fraternity or sorority, for 
     each student housing facility owned or controlled by the 
     fraternity or sorority, respectively.
       ``(6) Reports to secretary.--On an annual basis, each 
     institution participating in any program under this title 
     shall submit to the Secretary a copy of the statistics 
     required to be made available under paragraph (1)(B). The 
     Secretary shall--
       ``(A) review such statistics;
       ``(B) make copies of the statistics submitted to the 
     Secretary available to the public; and
       ``(C) in coordination with representatives of institutions 
     of higher education, identify exemplary fire safety policies, 
     procedures, and practices and disseminate information 
     concerning those policies, procedures, and practices that 
     have proven effective in the reduction of fires in campus 
     student housing facilities.
       ``(7) Definition of campus student housing facility.--In 
     this subsection, the term `campus student housing facility' 
     means any building or property owned or controlled by an 
     institution of higher education within the same reasonably 
     contiguous geographic area of the institution and used by the 
     institution for student housing.''.
       (c) Report to Congress by Secretary of Education.--Not 
     later than 1 year after the date of enactment of this 
     section, the Secretary of Education shall prepare and submit 
     to Congress a report containing--
       (1) an analysis of the current status of fire safety 
     systems in college and university campus student housing 
     facilities, including sprinkler systems;
       (2) an analysis of the appropriate fire safety standards to 
     apply to these facilities, which the Secretary shall prepare 
     after consultation with such fire safety experts, 
     representatives of institutions of higher education, and 
     other Federal agencies as the Secretary, in the Secretary's 
     discretion, considers appropriate;
       (3) an estimate of the cost of bringing all nonconforming 
     campus student housing facilities up to current building 
     codes or life safety codes; and
       (4) recommendations from the Secretary concerning the best 
     means of meeting fire safety standards in all college and 
     university campus student housing facilities, including 
     recommendations for methods to fund such costs.
                                  ____

  SA 365. Mr. DODD (for himself, Ms. Collins, Ms. Landrieu, Mr. 
Bingaman, Ms. Mikulski, Mr. Wellstone, Mr. Corzine, Mrs. Murray, Mr. 
Lieberman, Mr. Reed, Mrs. Clinton, Mr. Jeffords, and Mr. Kennedy) 
proposed an amendment to amendment SA 358 proposed by Mr. Jeffords to 
the bill (S. 1) to extend programs and activities under the Elementary 
and Secondary Education Act of 1965; as follows:

       On page 32, strike lines 2 through 6, and insert the 
     following:
       ``(a) Local Educational Agency Grants.--

[[Page 7080]]

       ``(1) Short title.--This subsection may be cited as the 
     `Equal Educational Opportunity Act'.
       ``(2) Authorization.--For the purpose of carrying out part 
     A, other than section 1120(e), there are authorized to be 
     appropriated--
       ``(A) $15,000,000,000 for fiscal year 2002;
       ``(B) $18,240,000,000 for fiscal year 2003;
       ``(C) $21,480,000,000 for fiscal year 2004;
       ``(D) $24,720,000,000 for fiscal year 2005;
       ``(E) $27,960,000,000 for fiscal year 2006;
       ``(F) $31,200,000,000 for fiscal year 2007;
       ``(G) $34,440,000,000 for fiscal year 2008;
       ``(H) $37,680,000,000 for fiscal year 2009;
       ``(I) $40,920,000,000 for fiscal year 2010; and
       ``(J) $44,164,000,000 for fiscal year 2011.
                                  ____

  SA 366. Mr. CAMPBELL (for himself, Mr. Grassley, Mr. Akaka, Mr. 
Inouye, and Mr. Inhofe) submitted an amendment intended to be proposed 
by him to the bill S. 1; to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SENIOR OPPORTUNITIES.

       (a) Twenty-First Century Community Learning Centers.--
     Section 1609(a)(2) (as amended in section 151) is further 
     amended--
       (1) in subparagraph (G), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (H), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(I) a description of how the organization will encourage 
     and use appropriately qualified seniors as volunteers in 
     activities carried out through the center.''.
       (b) Safe and Drug-Free Schools and Communities; Governor's 
     Programs.--Section 4114(d) (as amended in section 401) is 
     further amended--
       (1) in paragraph (14), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (15), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(15) drug and violence prevention activities that use the 
     services of appropriately qualified seniors for activities 
     that include mentoring, tutoring, and volunteering.''.
       (c) Safe and Drug-Free Schools and Communities; Local Drug 
     and Violence Prevention Programs.--Section 4116(b) (as 
     amended in section 401) is further amended--
       (1) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``(including mentoring by appropriately qualified seniors)'' 
     after ``mentoring''; and
       (B) in subparagraph (C)--
       (i) in clause (i), by striking ``and'' after the semicolon;
       (ii) in clause (ii), by inserting ``and'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(iii) drug and violence prevention activities that use 
     the services of appropriately qualified seniors for such 
     activities as mentoring, tutoring, and volunteering;'';
       (2) in paragraph (4)(C), by inserting ``(including 
     mentoring by appropriately qualified seniors)'' after 
     ``mentoring programs''; and
       (3) in paragraph (8), by inserting ``, which may involve 
     appropriately qualified seniors working with students'' after 
     ``settings''.
       (d) Safe and Drug-Free Schools and Communities; Federal 
     Activities.--Section 4121(a) (as amended in section 401) is 
     further amended--
       (1) in paragraph (10), by inserting ``, including projects 
     and activities that promote the interaction of youth and 
     appropriately qualified seniors'' after ``responsibility''; 
     and
       (2) in paragraph (13), by inserting ``, including 
     activities that integrate appropriately qualified seniors in 
     activities, such as mentoring, tutoring, and volunteering'' 
     after ``title''.
       (e) Indian, Native Hawaiian, and Alaska Native Education; 
     Formula Grants.--Section 7115(b) (as amended in section 701) 
     is further amended--
       (1) in paragraph (10), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (11), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(12) activities that recognize and support the unique 
     cultural and educational needs of Indian children, and 
     incorporate appropriately qualified tribal elders and 
     seniors.''.
       (f) Indian, Native Hawaiian, and Alaska Native Education; 
     Special Programs and Projects.--Section 7121(c)(1) (as 
     amended in section 701) is further amended--
       (1) in subparagraph (K), by striking ``or'' after the 
     semicolon;
       (2) in subparagraph (L), by striking ``(L)'' and inserting 
     ``(M)''; and
       (3) by inserting after subparagraph (K) the following:
       ``(L) activities that recognize and support the unique 
     cultural and educational needs of Indian children, and 
     incorporate appropriately qualified tribal elders and 
     seniors; or''.
       (g) Indian, Native Hawaiian, and Alaska Native Education; 
     Professional Development.--The second sentence of section 
     7122(d)(1) (as amended in section 701) is further amended by 
     striking the period and inserting ``, and may include 
     programs designed to train tribal elders and seniors.''.
       (h) Indian, Native Hawaiian, and Alaska Native Education; 
     Native Hawaiian Programs.--Section 7205(a)(3)(H) (as amended 
     in section 701) is further amended--
       (1) in clause (ii), by striking ``and'' after the 
     semicolon;
       (2) in clause (iii), by inserting ``and'' at the end; and
       (3) by adding at the end the following:
       ``(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) Indian, Native Hawaiian, and Alaska Native Education; 
     Alaska Native Programs.--Section 7304(a)(2)(F) (as amended in 
     section 701) is further amended--
       (1) in clause (i), by striking ``and'' after the semicolon;
       (2) in clause (ii), by inserting ``and'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(iii) may include activities that recognize and support 
     the unique cultural and educational needs of Alaskan Native 
     children, and incorporate appropriately qualified Alaskan 
     Native elders and seniors;''.
                                  ____

  SA 367. Mrs. FEINSTEIN (for herself, Mr. Voinovich, Mr. Baucus, Ms. 
Landrieu, and Mrs. Murray) submitted an amendment intended to be 
proposed by her to the bill S. 1, to extend programs and activities 
under the Elementary and Secondary Education Act of 1965; which was 
ordered to lie on the table; as follows:

       On page 893, after line 14, add the following:

     SEC. __. LOAN FORGIVENESS FOR HEAD START TEACHERS.

       (a) Short Title.--This section may be cited as the ``Loan 
     Forgiveness for Head Start Teachers Act of 2001''.
       (b) Head Start Teachers.--Section 428J of the Higher 
     Education Act of 1965 (20 U.S.C 1078-10) is amended--
       (1) in subsection (b), by amending paragraph (1) to read as 
     follows:
       ``(1)(A) has been employed--
       ``(i) as a full-time teacher for 5 consecutive complete 
     school years in a school that qualifies under section 
     465(a)(2)(A) for loan cancellation for Perkins loan 
     recipients who teach in such a school; or
       ``(ii) as a Head Start teacher for 5 consecutive complete 
     program years under the Head Start Act; and
       ``(B)(i) if employed as a secondary school teacher, is 
     teaching a subject area that is relevant to the borrower's 
     academic major as certified by the chief administrative 
     officer of the public or nonprofit private secondary school 
     in which the borrower is employed;
       ``(ii) if employed as an elementary school teacher, has 
     demonstrated, as certified by the chief administrative 
     officer of the public or nonprofit private elementary school 
     in which the borrower is employed, knowledge and teaching 
     skills in reading, writing, mathematics, and other areas of 
     the elementary school curriculum; and
       ``(iii) if employed as a Head Start teacher, has 
     demonstrated knowledge and teaching skills in reading, 
     writing, early childhood development, and other areas of a 
     preschool curriculum, with a focus on cognitive learning; 
     and'';
       (2) in subsection (g), by adding at the end the following:
       ``(3) Head start.--An individual shall be eligible for loan 
     forgiveness under this section for service described in 
     clause (ii) of subsection (b)(1)(A) only if such individual 
     received a baccalaureate or graduate degree on or after the 
     date of enactment of the Loan Forgiveness for Head Start 
     Teachers Act of 2001.''; and
       (3) by adding at the end the following:
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     for fiscal year 2007 and succeeding fiscal years to carry out 
     loan repayment under this section for service described in 
     clause (ii) of subsection (b)(1)(A).''.
       (c) Conforming Amendments.--Section 428J of such Act (20 
     U.S.C. 1078-10) is amended--
       (1) in subsection (c)(1), by inserting ``or fifth complete 
     program year'' after ``fifth complete school year of 
     teaching'';
       (2) in subsection (f), by striking ``subsection (b)'' and 
     inserting ``subsection (b)(1)(A)(i)'';
       (3) in subsection (g)(1)(A), by striking ``subsection 
     (b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)''; and
       (4) in subsection (h), by inserting ``except as part of the 
     term `program year','' before ``where''.
       (d) Direct Student Loan Forgiveness.--
       (1) In general.--Section 460 of the Higher Education Act of 
     1965 (20 U.S.C 1087j) is amended--
       (A) in subsection (b)(1), by amending subparagraph (A) to 
     read as follows:
       ``(A)(i) has been employed--
       ``(I) as a full-time teacher for 5 consecutive complete 
     school years in a school that qualifies under section 
     465(a)(2)(A) for loan cancellation for Perkins loan 
     recipients who teach in such a school; or

[[Page 7081]]

       ``(II) as a Head Start teacher for 5 consecutive complete 
     program years under the Head Start Act; and
       ``(ii)(I) if employed as a secondary school teacher, is 
     teaching a subject area that is relevant to the borrower's 
     academic major as certified by the chief administrative 
     officer of the public or nonprofit private secondary school 
     in which the borrower is employed;
       ``(II) if employed as an elementary school teacher, has 
     demonstrated, as certified by the chief administrative 
     officer of the public or nonprofit private elementary school 
     in which the borrower is employed, knowledge and teaching 
     skills in reading, writing, mathematics, and other areas of 
     the elementary school curriculum; and
       ``(III) if employed as a Head Start teacher, has 
     demonstrated knowledge and teaching skills in reading, 
     writing, early childhood development, and other areas of a 
     preschool curriculum, with a focus on cognitive learning; 
     and'';
       (B) in subsection (g), by adding at the end the following:
       ``(3) Head start.--An individual shall be eligible for loan 
     forgiveness under this section for service described in 
     subclause (II) of subsection (b)(1)(A)(i) only if such 
     individual received a baccalaureate or graduate degree on or 
     after the date of enactment of the Loan Forgiveness for Head 
     Start Teachers Act of 2001.''; and
       (C) by adding at the end the following:
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     for fiscal year 2007 and succeeding fiscal years to carry out 
     loan repayment under this section for service described in 
     subclause (II) of subsection (b)(1)(A)(i).''.
       (2) Conforming amendments.--Section 460 of such Act (20 
     U.S.C. 1087j) is amended--
       (A) in subsection (c)(1), by inserting ``or fifth complete 
     program year'' after ``fifth complete school year of 
     teaching'';
       (B) in subsection (f), by striking ``subsection (b)'' and 
     inserting ``subsection (b)(1)(A)(i)(I)'';
       (C) in subsection (g)(1)(A), by striking ``subsection 
     (b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)(I)''; and
       (D) in subsection (h), by inserting ``except as part of the 
     term `program year','' before ``where''.
                                  ____

  SA 368.  Mrs. FEINSTEIN submitted an amendment intended to be 
proposed by her to the bill S. 1, to extend programs and activities 
under the Elementary and Secondary Education Act of 1965; which was 
ordered to lie on the table; as follows:

       On page 383, after line 21, add the following:

     SEC. __. MASTER TEACHER DEMONSTRATION PROJECT.

       (a) Definitions.--In this section:
       (1) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 3 of the 
     Elementary and Secondary Education Act of 1965.
       (2) Master teacher.--The term ``master teacher'' means a 
     teacher who--
       (A) is licensed or credentialed under State law in the 
     subject or grade in which the teacher teaches;
       (B) has been teaching for at least 5 years in a public or 
     private school or institution of higher education;
       (C) is selected upon application, is judged to be an 
     excellent teacher, and is recommended by administrators and 
     other teachers who are knowledgeable of the individual's 
     performance;
       (D) at the time of submission of such application, is 
     teaching and based in a public school;
       (E) assists other teachers in improving instructional 
     strategies, improves the skills of other teachers, performs 
     mentoring, develops curriculum, and offers other professional 
     development; and
       (F) enters into a contract with the local educational 
     agency to continue to teach and serve as a master teacher for 
     at least 5 additional years.
     A contract described in subparagraph (F) shall include 
     stipends, employee benefits, a description of duties and work 
     schedule, and other terms of employment.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (b) Establishment of Demonstration Project.--
       (1) In general.--Not later than July 1, 2002, the Secretary 
     shall conduct a demonstration project under which the 
     Secretary shall award competitive grants to local educational 
     agencies to increase teacher salaries and employee benefits 
     for teachers who enter into contracts with the local 
     educational agencies to serve as master teachers.
       (2) Requirements.--In awarding grants under the 
     demonstration project, the Secretary shall--
       (A) ensure that grants are awarded under the demonstration 
     project to a diversity of local educational agencies in terms 
     of size of school district, location of school district, 
     ethnic and economic composition of students, and experience 
     of teachers; and
       (B) give priority to local educational agencies in school 
     districts that have schools with a high proportion of 
     economically disadvantaged students.
       (c) Applications.--In order to receive a grant under the 
     demonstration project, a local educational agency shall 
     submit an application to the Secretary that contains--
       (1) an assurance that funds received under the grant will 
     be used in accordance with this section; and
       (2) a detailed description of how the local educational 
     agency will use the grant funds to pay the salaries and 
     employee benefits for positions designated by the local 
     educational agency as master teacher positions.
       (d) Matching Requirement.--The Secretary may not award a 
     grant to a local educational agency under the demonstration 
     project unless the local educational agency agrees that, with 
     respect to costs to be incurred by the agency in carrying out 
     activities for which the grant was awarded, the agency shall 
     provide (directly, through the State, or through a 
     combination thereof) in non-Federal contributions an amount 
     equal to the amount of the grant awarded to the agency.
       (e) Study and Report.--
       (1) In general.--Not later than July 1, 2005, the Secretary 
     shall conduct a study and transmit a report to Congress 
     analyzing the results of the demonstration project conducted 
     under this section.
       (2) Contents of report.--The report shall include--
       (A) an analysis of the results of the project on--
       (i) the recruitment and retention of experienced teachers;
       (ii) the effect of master teachers on teaching by less 
     experienced teachers;
       (iii) the impact of mentoring new teachers by master 
     teachers;
       (iv) the impact of master teachers on student achievement; 
     and
       (v) the reduction in the rate of attrition of beginning 
     teachers; and
       (B) recommendations regarding--
       (i) continuing or terminating the demonstration project; 
     and
       (ii) establishing a grant program to expand the project to 
     additional local educational agencies and school districts.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $100,000,000, 
     for the period of fiscal years 2002 through 2006.
                                  ____

  SA 369. Mrs. FEINSTEIN submitted an amendment intended to be proposed 
by her to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       On page 137, between lines 3 and 4, insert the following:

     SEC. __. LIMITATIONS ON FUNDS.

       Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is 
     amended by inserting after section 1120B (20 U.S.C. 6323) the 
     following:

     ``SEC. 1120C. LIMITATIONS ON FUNDS.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, a local educational agency shall use funds received 
     under this subpart only to provide academic instruction and 
     services directly related to the instruction of students in 
     preschool through grade 12 to assist eligible children to 
     improve their academic achievement and to meet achievement 
     standards established by the State.
       ``(b) Permissible and Prohibited Activities.--In this 
     section, the term `academic instruction'--
       ``(1) includes--
       ``(A) the implementation of instructional interventions and 
     corrective actions to improve student achievement;
       ``(B) the extension of academic instruction beyond the 
     normal school day and year, including during summer school;
       ``(C) the employment of teachers and other instructional 
     personnel, including providing teachers and instructional 
     personnel with employee benefits;
       ``(D) the provision of instructional services to pre-
     kindergarten children to prepare such children for the 
     transition to kindergarten;
       ``(E) the purchase of instructional resources, such as 
     books, materials, computers, other instructional equipment, 
     and wiring to support instructional equipment;
       ``(F) the development and administration of curricula, 
     educational materials, and assessments; and
       ``(G) the transportation of students to assist the students 
     in improving academic achievement; and
       ``(2) does not include--
       ``(A) the purchase or lease of privately owned facilities;
       ``(B) the purchase or provision of facilities maintenance, 
     gardening, landscaping, or janitorial services, or the 
     payment of utility costs;
       ``(C) the construction of facilities;
       ``(D) the acquisition of real property;
       ``(E) the payment of costs for food and refreshments;
       ``(F) the payment of travel and attendance costs at 
     conferences or other meetings; or
       ``(G) the purchase or lease of vehicles.''.
                                  ____

  SA 370. Mrs. FEINSTEIN submitted an amendment intended to be proposed

[[Page 7082]]

by her to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       On page 302, between lines 7 and 8, insert the following:

                       Part __School Construction

     SEC. __01. SHORT TITLE.

       This part may be cited as the ``Excellence in Education Act 
     of 2001''.

     SEC. __02. DEFINITIONS.

       In this part:
       (1) Elementary school; local educational agency; secondary 
     school; secretary.--The terms ``elementary school'', ``local 
     educational agency'', ``secondary school'', and ``Secretary'' 
     have the meanings given the terms in section 3 of the 
     Elementary and Secondary Education Act of 1965.
       (2) Construction.--
       (A) In general.--Subject to subparagraph (B), the term 
     ``construction'' means--
       (i) preparation of drawings and specifications for school 
     facilities;
       (ii) building new school facilities, or acquiring, 
     remodeling, demolishing, renovating, improving, or repairing 
     facilities to establish new school facilities; and
       (iii) inspection and supervision of the construction of new 
     school facilities.
       (B) Rule.--An activity described in subparagraph (A) shall 
     be considered to be construction only if the labor standards 
     described in section 439 of the General Education Provisions 
     Act (20 U.S.C. 1232b) are applied with respect to such 
     activity.
       (3) School facility.--The term ``school facility'' means a 
     public structure suitable for use as a classroom, laboratory, 
     library, media center, or related facility the primary 
     purpose of which is the instruction of public elementary 
     school or secondary school students. The term does not 
     include an athletic stadium or any other structure or 
     facility intended primarily for athletic exhibitions, 
     contests, or games for which admission is charged to the 
     general public.

     SEC. __03. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     part $1,000,000,000 for each of the fiscal years 2002 through 
     2006.

     SEC. __04. PROGRAM AUTHORIZED.

       The Secretary is authorized to award grants to local 
     educational agencies to enable the local educational agencies 
     to carry out the construction of new public elementary school 
     and secondary school facilities.

     SEC. __05. CONDITIONS FOR RECEIVING FUNDS.

       In order to receive funds under this part a local 
     educational agency shall meet the following requirements:
       (1) Reduce class and school sizes for public schools served 
     by the local educational agency as follows:
       (A) Limit class size to an average student-to-teacher ratio 
     of 20 to 1, in classes serving kindergarten through grade 6 
     students, in the schools served by the agency.
       (B) Limit class size to an average student-to-teacher ratio 
     of 28 to 1, in classes serving grade 7 through grade 12 
     students, in the schools served by the agency.
       (C) Limit the size of public elementary schools and 
     secondary schools served by the agency to--
       (i) not more than 500 students in the case of a school 
     serving kindergarten through grade 5 students;
       (ii) not more than 750 students in the case of a school 
     serving grade 6 through grade 8 students; and
       (iii) not more than 1,500 students in the case of a school 
     serving grade 9 through grade 12 students.
       (2) Provide matching funds, with respect to the cost to be 
     incurred in carrying out the activities for which the grant 
     is awarded, from non-Federal sources in an amount equal to 
     the Federal funds provided under the grant.

     SEC. __06. APPLICATIONS.

       (a) In General.--Each local educational agency desiring to 
     receive a grant under this part shall submit an application 
     to the Secretary at such time and in such manner as the 
     Secretary may require.
       (b) Contents.--Each application shall contain--
       (1) an assurance that the grant funds will be used in 
     accordance with this part;
       (2) a brief description of the construction to be 
     conducted;
       (3) a cost estimate of the activities to be conducted; and
       (4) a description of available non-Federal matching funds.

  SA 371. Mrs. FEINSTEIN submitted an amendment intended to be proposed 
by her to the bill S. 1, to extend programs and activities under the 
Elementary and Secondary Education Act of 1965; which was ordered to 
lie on the table; as follows:

       On page 572, line 2, insert ``, or to have possessed a 
     weapon at a school,'' after ``to a school''.
       On page 572, line 7, insert before the period the 
     following: ``if such modification is in writing''.
       On page 573, line 3, strike ``and''.
       On page 573, line 9, strike ``and''.
       On page 573, line 10, strike the period and insert ``; 
     and''.
       On page 573, between lines 10 and 11, insert the following:
       ``(D) the level of education of the students expelled from 
     such school; and
       ``(E) a description of each modification of expulsion 
     permitted under subsection (b)(1) with respect to such 
     school; and
       ``(3) a description of all incidents involving weapons at 
     local educational agency schools.''.
       On page 573, between lines 13 and 14, insert the following:
       ``(f) Definition.--In this section, the term `school' means 
     any setting that is under the control and supervision of the 
     local education agency.
       ``(g) Exception.--Nothing in this section shall apply to a 
     weapon 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.''.
       On page 573, line 20, strike ``brings a firearm or weapon 
     to a school'' and insert ``brings a weapon to a school, or is 
     found to have possessed a weapon at a school,''.
       On page 573, strike lines 22 through 25, and insert the 
     following:
       ``(b) Definitions.--For the purpose of this section:
       ``(1) School.--The term `school' has the meaning given to 
     such term by section 921(a) of title 18, United States Code.
       ``(2) Weapon.--The term `weapon' has the meaning given such 
     term in section 4101(b)(3).''.

                          ____________________