[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[Senate]
[Pages 7642-7765]
[From the U.S. Government Publishing Office, www.gpo.gov]



     SEC. 111. CONSUMER CHOICE OPTION.

       (a) In General.--If--
       (1) a health insurance issuer providing health insurance 
     coverage in connection with a group health plan offers to 
     enrollees health insurance coverage which provides for 
     coverage of services only if such services are furnished 
     through health care professionals and providers who are 
     members of a network of health care professionals and 
     providers who have entered into a contract with the issuer to 
     provide such services, or
       (2) a group health plan offers to participants or 
     beneficiaries health benefits which provide for coverage of 
     services only if such services are furnished through health 
     care professionals and providers who are members of a network 
     of health care professionals and providers who have entered 
     into a contract with the plan to provide such services,

     then the issuer or plan shall also offer or arrange to be 
     offered to such enrollees, participants, or beneficiaries (at 
     the time of enrollment and during an annual open season as 
     provided under subsection (c)) the option of health insurance 
     coverage or health benefits which provide for coverage of 
     such services which are not furnished through health care 
     professionals and providers who are members of such a network 
     unless such enrollees, participants, or beneficiaries are 
     offered such non-network coverage through another group 
     health plan or through another health insurance issuer in the 
     group market.
       (b) Additional Costs.--The amount of any additional premium 
     charged by the health insurance issuer or group health plan 
     for the additional cost of the creation and maintenance of 
     the option described in subsection (a) and the amount of any 
     additional cost sharing imposed under such option shall be 
     borne by the enrollee, participant, or beneficiary unless it 
     is paid by the health plan sponsor or group health plan 
     through agreement with the health insurance issuer.
       (c) Open Season.--An enrollee, participant, or beneficiary, 
     may change to the offering provided under this section only 
     during a time period determined by the health insurance 
     issuer or group health plan. Such time period shall occur at 
     least annually.

     SEC. 112. CHOICE OF HEALTH CARE PROFESSIONAL.

       (a) Primary Care.--If a group health plan, or a health 
     insurance issuer that offers health insurance coverage, 
     requires or provides for designation by a participant, 
     beneficiary, or enrollee of a participating primary care 
     provider, then the plan or issuer shall permit each 
     participant, beneficiary, and enrollee to designate any 
     participating primary care provider who is available to 
     accept such individual.
       (b) Specialists.--
       (1) In general.--Subject to paragraph (2), a group health 
     plan and a health insurance issuer that offers health 
     insurance coverage shall permit each participant, 
     beneficiary, or enrollee to receive medically necessary and 
     appropriate specialty care, pursuant to appropriate referral 
     procedures, from any qualified participating health care 
     professional who is available to accept such individual for 
     such care.
       (2) Limitation.--Paragraph (1) shall not apply to specialty 
     care if the plan or issuer clearly informs participants, 
     beneficiaries, and enrollees of the limitations on choice of 
     participating health care professionals with respect to such 
     care.
       (3) Construction.--Nothing in this subsection shall be 
     construed as affecting the application of section 114 
     (relating to access to specialty care).

     SEC. 113. ACCESS TO EMERGENCY CARE.

       (a) Coverage of Emergency Services.--
       (1) In general.--If a group health plan, or health 
     insurance coverage offered by a health insurance issuer, 
     provides or covers any benefits with respect to services in 
     an emergency department of a hospital, the plan or issuer 
     shall cover emergency services (as defined in paragraph 
     (2)(B))--

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       (A) without the need for any prior authorization 
     determination;
       (B) whether the health care provider furnishing such 
     services is a participating provider with respect to such 
     services;
       (C) in a manner so that, if such services are provided to a 
     participant, beneficiary, or enrollee--
       (i) by a nonparticipating health care provider with or 
     without prior authorization, or
       (ii) by a participating health care provider without prior 
     authorization,

     the participant, beneficiary, or enrollee is not liable for 
     amounts that exceed the amounts of liability that would be 
     incurred if the services were provided by a participating 
     health care provider with prior authorization; and
       (D) without regard to any other term or condition of such 
     coverage (other than exclusion or coordination of benefits, 
     or an affiliation or waiting period, permitted under section 
     2701 of the Public Health Service Act, section 701 of the 
     Employee Retirement Income Security Act of 1974, or section 
     9801 of the Internal Revenue Code of 1986, and other than 
     applicable cost-sharing).
       (2) Definitions.--In this section:
       (A) Emergency medical condition.--The term ``emergency 
     medical condition'' means a medical condition manifesting 
     itself by acute symptoms of sufficient severity (including 
     severe pain) such that a prudent layperson, who possesses an 
     average knowledge of health and medicine, could reasonably 
     expect the absence of immediate medical attention to result 
     in a condition described in clause (i), (ii), or (iii) of 
     section 1867(e)(1)(A) of the Social Security Act.
       (B) Emergency services.--The term ``emergency services'' 
     means, with respect to an emergency medical condition--
       (i) a medical screening examination (as required under 
     section 1867 of the Social Security Act) that is within the 
     capability of the emergency department of a hospital, 
     including ancillary services routinely available to the 
     emergency department to evaluate such emergency medical 
     condition, and
       (ii) within the capabilities of the staff and facilities 
     available at the hospital, such further medical examination 
     and treatment as are required under section 1867 of such Act 
     to stabilize the patient.
       (C) Stabilize.--The term ``to stabilize'', with respect to 
     an emergency medical condition (as defined in subparagraph 
     (A)), has the meaning give in section 1867(e)(3) of the 
     Social Security Act (42 U.S.C. 1395dd(e)(3)).
       (b) Reimbursement for Maintenance Care and Post-
     Stabilization Care.--A group health plan, and health 
     insurance coverage offered by a health insurance issuer, must 
     provide reimbursement for maintenance care and post-
     stabilization care in accordance with the requirements of 
     section 1852(d)(2) of the Social Security Act (42 U.S.C. 
     1395w-22(d)(2)). Such reimbursement shall be provided in a 
     manner consistent with subsection (a)(1)(C).
       (c) Coverage of Emergency Ambulance Services.--
       (1) In general.--If a group health plan, or health 
     insurance coverage provided by a health insurance issuer, 
     provides any benefits with respect to ambulance services and 
     emergency services, the plan or issuer shall cover emergency 
     ambulance services (as defined in paragraph (2)) furnished 
     under the plan or coverage under the same terms and 
     conditions under subparagraphs (A) through (D) of subsection 
     (a)(1) under which coverage is provided for emergency 
     services.
       (2) Emergency ambulance services.--For purposes of this 
     subsection, the term ``emergency ambulance services'' means 
     ambulance services (as defined for purposes of section 
     1861(s)(7) of the Social Security Act) furnished to transport 
     an individual who has an emergency medical condition (as 
     defined in subsection (a)(2)(A)) to a hospital for the 
     receipt of emergency services (as defined in subsection 
     (a)(2)(B)) in a case in which the emergency services are 
     covered under the plan or coverage pursuant to subsection 
     (a)(1) and a prudent layperson, with an average knowledge of 
     health and medicine, could reasonably expect that the absence 
     of such transport would result in placing the health of the 
     individual in serious jeopardy, serious impairment of bodily 
     function, or serious dysfunction of any bodily organ or part.

     SEC. 114. TIMELY ACCESS TO SPECIALISTS.

       (a) Timely Access.--
       (1) In general.--A group health plan or health insurance 
     issuer offering health insurance coverage shall ensure that 
     participants, beneficiaries, and enrollees receive timely 
     access to specialists who are appropriate to the condition 
     of, and accessible to, the participant, beneficiary, or 
     enrollee, when such specialty care is a covered benefit under 
     the plan or coverage.
       (2) Rule of construction.--Nothing in paragraph (1) shall 
     be construed--
       (A) to require the coverage under a group health plan or 
     health insurance coverage of benefits or services;
       (B) to prohibit a plan or issuer from including providers 
     in the network only to the extent necessary to meet the needs 
     of the plan's or issuer's participants, beneficiaries, or 
     enrollees; or
       (C) to override any State licensure or scope-of-practice 
     law.
       (3) Access to certain providers.--
       (A) In general.--With respect to specialty care under this 
     section, if a participating specialist is not available and 
     qualified to provide such care to the participant, 
     beneficiary, or enrollee, the plan or issuer shall provide 
     for coverage of such care by a nonparticipating specialist.
       (B) Treatment of nonparticipating providers.--If a 
     participant, beneficiary, or enrollee receives care from a 
     nonparticipating specialist pursuant to subparagraph (A), 
     such specialty care shall be provided at no additional cost 
     to the participant, beneficiary, or enrollee beyond what the 
     participant, beneficiary, or enrollee would otherwise pay for 
     such specialty care if provided by a participating 
     specialist.
       (b) Referrals.--
       (1) Authorization.--A group health plan or health insurance 
     issuer may require an authorization in order to obtain 
     coverage for specialty services under this section. Any such 
     authorization--
       (A) shall be for an appropriate duration of time or number 
     of referrals; and
       (B) may not be refused solely because the authorization 
     involves services of a nonparticipating specialist (described 
     in subsection (a)(3)).
       (2) Referrals for ongoing special conditions.--
       (A) In general.--A group health plan or health insurance 
     issuer shall permit a participant, beneficiary, or enrollee 
     who has an ongoing special condition (as defined in 
     subparagraph (B)) to receive a referral to a specialist for 
     the treatment of such condition and such specialist may 
     authorize such referrals, procedures, tests, and other 
     medical services with respect to such condition, or 
     coordinate the care for such condition, subject to the terms 
     of a treatment plan (if any) referred to in subsection (c) 
     with respect to the condition.
       (B) Ongoing special condition defined.--In this subsection, 
     the term ``ongoing special condition'' means a condition or 
     disease that--
       (i) is life-threatening, degenerative, potentially 
     disabling, or congenital; and
       (ii) requires specialized medical care over a prolonged 
     period of time.
       (c) Treatment Plans.--
       (1) In general.--A group health plan or health insurance 
     issuer may require that the specialty care be provided--
       (A) pursuant to a treatment plan, but only if the treatment 
     plan--
       (i) is developed by the specialist, in consultation with 
     the case manager or primary care provider, and the 
     participant, beneficiary, or enrollee, and
       (ii) is approved by the plan or issuer in a timely manner, 
     if the plan or issuer requires such approval; and
       (B) in accordance with applicable quality assurance and 
     utilization review standards of the plan or issuer.
       (2) Notification.--Nothing in paragraph (1) shall be 
     construed as prohibiting a plan or issuer from requiring the 
     specialist to provide the plan or issuer with regular updates 
     on the specialty care provided, as well as all other 
     reasonably necessary medical information.
       (d) Specialist Defined.--For purposes of this section, the 
     term ``specialist'' means, with respect to the condition of 
     the participant, beneficiary, or enrollee, a health care 
     professional, facility, or center that has adequate expertise 
     through appropriate training and experience (including, in 
     the case of a child, appropriate pediatric expertise) to 
     provide high quality care in treating the condition.

     SEC. 115. PATIENT ACCESS TO OBSTETRIC AND GYNECOLOGICAL CARE.

       (a) General Rights.--
       (1) Direct access.--A group health plan, or health 
     insurance issuer offering health insurance coverage, 
     described in subsection (b) may not require authorization or 
     referral by the plan, issuer, or any person (including a 
     primary care provider described in subsection (b)(2)) in the 
     case of a female participant, beneficiary, or enrollee who 
     seeks coverage for obstetrical or gynecological care provided 
     by a participating health care professional who specializes 
     in obstetrics or gynecology.
       (2) Obstetrical and gynecological care.--A group health 
     plan or health insurance issuer described in subsection (b) 
     shall treat the provision of obstetrical and gynecological 
     care, and the ordering of related obstetrical and 
     gynecological items and services, pursuant to the direct 
     access described under paragraph (1), by a participating 
     health care professional who specializes in obstetrics or 
     gynecology as the authorization of the primary care provider.
       (b) Application of Section.--A group health plan, or health 
     insurance issuer offering health insurance coverage, 
     described in this subsection is a group health plan or 
     coverage that--
       (1) provides coverage for obstetric or gynecologic care; 
     and
       (2) requires the designation by a participant, beneficiary, 
     or enrollee of a participating primary care provider.
       (c) Construction.--Nothing in subsection (a) shall be 
     construed to--
       (1) waive any exclusions of coverage under the terms and 
     conditions of the plan or health insurance coverage with 
     respect to coverage of obstetrical or gynecological care; or

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       (2) preclude the group health plan or health insurance 
     issuer involved from requiring that the obstetrical or 
     gynecological provider notify the primary care health care 
     professional or the plan or issuer of treatment decisions.

     SEC. 116. ACCESS TO PEDIATRIC CARE.

       (a) Pediatric Care.--In the case of a person who has a 
     child who is a participant, beneficiary, or enrollee under a 
     group health plan, or health insurance coverage offered by a 
     health insurance issuer, if the plan or issuer requires or 
     provides for the designation of a participating primary care 
     provider for the child, the plan or issuer shall permit such 
     person to designate a physician (allopathic or osteopathic) 
     who specializes in pediatrics as the child's primary care 
     provider if such provider participates in the network of the 
     plan or issuer.
       (b) Construction.--Nothing in subsection (a) shall be 
     construed to waive any exclusions of coverage under the terms 
     and conditions of the plan or health insurance coverage with 
     respect to coverage of pediatric care.

     SEC. 117. CONTINUITY OF CARE.

       (a) Termination of Provider.--
       (1) In general.--If--
       (A) a contract between a group health plan, or a health 
     insurance issuer offering health insurance coverage, and a 
     treating health care provider is terminated (as defined in 
     paragraph (e)(4)), or
       (B) benefits or coverage provided by a health care provider 
     are terminated because of a change in the terms of provider 
     participation in such plan or coverage,
     the plan or issuer shall meet the requirements of paragraph 
     (3) with respect to each continuing care patient.
       (2) Treatment of termination of contract with health 
     insurance issuer.--If a contract for the provision of health 
     insurance coverage between a group health plan and a health 
     insurance issuer is terminated and, as a result of such 
     termination, coverage of services of a health care provider 
     is terminated with respect to an individual, the provisions 
     of paragraph (1) (and the succeeding provisions of this 
     section) shall apply under the plan in the same manner as if 
     there had been a contract between the plan and the provider 
     that had been terminated, but only with respect to benefits 
     that are covered under the plan after the contract 
     termination.
       (3) Requirements.--The requirements of this paragraph are 
     that the plan or issuer--
       (A) notify the continuing care patient involved, or arrange 
     to have the patient notified pursuant to subsection (d)(2), 
     on a timely basis of the termination described in paragraph 
     (1) (or paragraph (2), if applicable) and the right to elect 
     continued transitional care from the provider under this 
     section;
       (B) provide the patient with an opportunity to notify the 
     plan or issuer of the patient's need for transitional care; 
     and
       (C) subject to subsection (c), permit the patient to elect 
     to continue to be covered with respect to the course of 
     treatment by such provider with the provider's consent during 
     a transitional period (as provided for under subsection (b)).
       (4) Continuing care patient.--For purposes of this section, 
     the term ``continuing care patient'' means a participant, 
     beneficiary, or enrollee who--
       (A) is undergoing a course of treatment for a serious and 
     complex condition from the provider at the time the plan or 
     issuer receives or provides notice of provider, benefit, or 
     coverage termination described in paragraph (1) (or paragraph 
     (2), if applicable);
       (B) is undergoing a course of institutional or inpatient 
     care from the provider at the time of such notice;
       (C) is scheduled to undergo non-elective surgery from the 
     provider at the time of such notice;
       (D) is pregnant and undergoing a course of treatment for 
     the pregnancy from the provider at the time of such notice; 
     or
       (E) is or was determined to be terminally ill (as 
     determined under section 1861(dd)(3)(A) of the Social 
     Security Act) at the time of such notice, but only with 
     respect to a provider that was treating the terminal illness 
     before the date of such notice.
       (b) Transitional Periods.--
       (1) Serious and complex conditions.--The transitional 
     period under this subsection with respect to a continuing 
     care patient described in subsection (a)(4)(A) shall extend 
     for up to 90 days (as determined by the treating health care 
     professional) from the date of the notice described in 
     subsection (a)(3)(A).
       (2) Institutional or inpatient care.--The transitional 
     period under this subsection for a continuing care patient 
     described in subsection (a)(4)(B) shall extend until the 
     earlier of--
       (A) the expiration of the 90-day period beginning on the 
     date on which the notice under subsection (a)(3)(A) is 
     provided; or
       (B) the date of discharge of the patient from such care or 
     the termination of the period of institutionalization, or, if 
     later, the date of completion of reasonable follow-up care.
       (3) Scheduled non-elective surgery.--The transitional 
     period under this subsection for a continuing care patient 
     described in subsection (a)(4)(C) shall extend until the 
     completion of the surgery involved and post-surgical follow-
     up care relating to the surgery and occurring within 90 days 
     after the date of the surgery.
       (4) Pregnancy.--The transitional period under this 
     subsection for a continuing care patient described in 
     subsection (a)(4)(D) shall extend through the provision of 
     post-partum care directly related to the delivery.
       (5) Terminal illness.--The transitional period under this 
     subsection for a continuing care patient described in 
     subsection (a)(4)(E) shall extend for the remainder of the 
     patient's life for care that is directly related to the 
     treatment of the terminal illness or its medical 
     manifestations.
       (c) Permissible Terms and Conditions.--A group health plan 
     or health insurance issuer may condition coverage of 
     continued treatment by a provider under this section upon the 
     provider agreeing to the following terms and conditions:
       (1) The treating health care provider agrees to accept 
     reimbursement from the plan or issuer and continuing care 
     patient involved (with respect to cost-sharing) at the rates 
     applicable prior to the start of the transitional period as 
     payment in full (or, in the case described in subsection 
     (a)(2), at the rates applicable under the replacement plan or 
     coverage after the date of the termination of the contract 
     with the group health plan or health insurance issuer) and 
     not to impose cost-sharing with respect to the patient in an 
     amount that would exceed the cost-sharing that could have 
     been imposed if the contract referred to in subsection (a)(1) 
     had not been terminated.
       (2) The treating health care provider agrees to adhere to 
     the quality assurance standards of the plan or issuer 
     responsible for payment under paragraph (1) and to provide to 
     such plan or issuer necessary medical information related to 
     the care provided.
       (3) The treating health care provider agrees otherwise to 
     adhere to such plan's or issuer's policies and procedures, 
     including procedures regarding referrals and obtaining prior 
     authorization and providing services pursuant to a treatment 
     plan (if any) approved by the plan or issuer.
       (d) Rules of Construction.--Nothing in this section shall 
     be construed--
       (1) to require the coverage of benefits which would not 
     have been covered if the provider involved remained a 
     participating provider; or
       (2) with respect to the termination of a contract under 
     subsection (a) to prevent a group health plan or health 
     insurance issuer from requiring that the health care 
     provider--
       (A) notify participants, beneficiaries, or enrollees of 
     their rights under this section; or
       (B) provide the plan or issuer with the name of each 
     participant, beneficiary, or enrollee who the provider 
     believes is a continuing care patient.
       (e) Definitions.--In this section:
       (1) Contract.--The term ``contract'' includes, with respect 
     to a plan or issuer and a treating health care provider, a 
     contract between such plan or issuer and an organized network 
     of providers that includes the treating health care provider, 
     and (in the case of such a contract) the contract between the 
     treating health care provider and the organized network.
       (2) Health care provider.--The term ``health care 
     provider'' or ``provider'' means--
       (A) any individual who is engaged in the delivery of health 
     care services in a State and who is required by State law or 
     regulation to be licensed or certified by the State to engage 
     in the delivery of such services in the State; and
       (B) any entity that is engaged in the delivery of health 
     care services in a State and that, if it is required by State 
     law or regulation to be licensed or certified by the State to 
     engage in the delivery of such services in the State, is so 
     licensed.
       (3) Serious and complex condition.--The term ``serious and 
     complex condition'' means, with respect to a participant, 
     beneficiary, or enrollee under the plan or coverage--
       (A) in the case of an acute illness, a condition that is 
     serious enough to require specialized medical treatment to 
     avoid the reasonable possibility of death or permanent harm; 
     or
       (B) in the case of a chronic illness or condition, is an 
     ongoing special condition (as defined in section 
     114(b)(2)(B)).
       (4) Terminated.--The term ``terminated'' includes, with 
     respect to a contract, the expiration or nonrenewal of the 
     contract, but does not include a termination of the contract 
     for failure to meet applicable quality standards or for 
     fraud.

     SEC. 118. ACCESS TO NEEDED PRESCRIPTION DRUGS.

       (a) In General.--To the extent that a group health plan, or 
     health insurance coverage offered by a health insurance 
     issuer, provides coverage for benefits with respect to 
     prescription drugs, and limits such coverage to drugs 
     included in a formulary, the plan or issuer shall--
       (1) ensure the participation of physicians and pharmacists 
     in developing and reviewing such formulary;
       (2) provide for disclosure of the formulary to providers; 
     and

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       (3) in accordance with the applicable quality assurance and 
     utilization review standards of the plan or issuer, provide 
     for exceptions from the formulary limitation when a non-
     formulary alternative is medically necessary and appropriate 
     and, in the case of such an exception, apply the same cost-
     sharing requirements that would have applied in the case of a 
     drug covered under the formulary.
       (b) Coverage of Approved Drugs and Medical Devices.--
       (1) In general.--A group health plan (or health insurance 
     coverage offered in connection with such a plan) that 
     provides any coverage of prescription drugs or medical 
     devices shall not deny coverage of such a drug or device on 
     the basis that the use is investigational, if the use--
       (A) in the case of a prescription drug--
       (i) is included in the labeling authorized by the 
     application in effect for the drug pursuant to subsection (b) 
     or (j) of section 505 of the Federal Food, Drug, and Cosmetic 
     Act, without regard to any postmarketing requirements that 
     may apply under such Act; or
       (ii) is included in the labeling authorized by the 
     application in effect for the drug under section 351 of the 
     Public Health Service Act, without regard to any 
     postmarketing requirements that may apply pursuant to such 
     section; or
       (B) in the case of a medical device, is included in the 
     labeling authorized by a regulation under subsection (d) or 
     (3) of section 513 of the Federal Food, Drug, and Cosmetic 
     Act, an order under subsection (f) of such section, or an 
     application approved under section 515 of such Act, without 
     regard to any postmarketing requirements that may apply under 
     such Act.
       (2) Construction.--Nothing in this subsection shall be 
     construed as requiring a group health plan (or health 
     insurance coverage offered in connection with such a plan) to 
     provide any coverage of prescription drugs or medical 
     devices.

     SEC. 119. COVERAGE FOR INDIVIDUALS PARTICIPATING IN APPROVED 
                   CLINICAL TRIALS.

       (a) Coverage.--
       (1) In general.--If a group health plan, or health 
     insurance issuer that is providing health insurance coverage, 
     provides coverage to a qualified individual (as defined in 
     subsection (b)), the plan or issuer--
       (A) may not deny the individual participation in the 
     clinical trial referred to in subsection (b)(2);
       (B) subject to subsection (c), may not deny (or limit or 
     impose additional conditions on) the coverage of routine 
     patient costs for items and services furnished in connection 
     with participation in the trial; and
       (C) may not discriminate against the individual on the 
     basis of the enrollee's participation in such trial.
       (2) Exclusion of certain costs.--For purposes of paragraph 
     (1)(B), routine patient costs do not include the cost of the 
     tests or measurements conducted primarily for the purpose of 
     the clinical trial involved.
       (3) Use of in-network providers.--If one or more 
     participating providers is participating in a clinical trial, 
     nothing in paragraph (1) shall be construed as preventing a 
     plan or issuer from requiring that a qualified individual 
     participate in the trial through such a participating 
     provider if the provider will accept the individual as a 
     participant in the trial.
       (b) Qualified Individual Defined.--For purposes of 
     subsection (a), the term ``qualified individual'' means an 
     individual who is a participant or beneficiary in a group 
     health plan, or who is an enrollee under health insurance 
     coverage, and who meets the following conditions:
       (1)(A) The individual has a life-threatening or serious 
     illness for which no standard treatment is effective.
       (B) The individual is eligible to participate in an 
     approved clinical trial according to the trial protocol with 
     respect to treatment of such illness.
       (C) The individual's participation in the trial offers 
     meaningful potential for significant clinical benefit for the 
     individual.
       (2) Either--
       (A) the referring physician is a participating health care 
     professional and has concluded that the individual's 
     participation in such trial would be appropriate based upon 
     the individual meeting the conditions described in paragraph 
     (1); or
       (B) the participant, beneficiary, or enrollee provides 
     medical and scientific information establishing that the 
     individual's participation in such trial would be appropriate 
     based upon the individual meeting the conditions described in 
     paragraph (1).
       (c) Payment.--
       (1) In general.--Under this section a group health plan or 
     health insurance issuer shall provide for payment for routine 
     patient costs described in subsection (a)(2) but is not 
     required to pay for costs of items and services that are 
     reasonably expected (as determined by the appropriate 
     Secretary) to be paid for by the sponsors of an approved 
     clinical trial.
       (2) Payment rate.--In the case of covered items and 
     services provided by--
       (A) a participating provider, the payment rate shall be at 
     the agreed upon rate; or
       (B) a nonparticipating provider, the payment rate shall be 
     at the rate the plan or issuer would normally pay for 
     comparable services under subparagraph (A).
       (d) Approved Clinical Trial Defined.--
       (1) In general.--In this section, the term ``approved 
     clinical trial'' means a clinical research study or clinical 
     investigation approved and funded (which may include funding 
     through in-kind contributions) by one or more of the 
     following:
       (A) The National Institutes of Health.
       (B) A cooperative group or center of the National 
     Institutes of Health.
       (C) The Food and Drug Administration.
       (D) Either of the following if the conditions described in 
     paragraph (2) are met:
       (i) The Department of Veterans Affairs.
       (ii) The Department of Defense.
       (2) Conditions for departments.--The conditions described 
     in this paragraph, for a study or investigation conducted by 
     a Department, are that the study or investigation has been 
     reviewed and approved through a system of peer review that 
     the appropriate Secretary determines--
       (A) to be comparable to the system of peer review of 
     studies and investigations used by the National Institutes of 
     Health; and
       (B) assures unbiased review of the highest scientific 
     standards by qualified individuals who have no interest in 
     the outcome of the review.
       (e) Construction.--Nothing in this section shall be 
     construed to limit a plan's or issuer's coverage with respect 
     to clinical trials.

     SEC. 120. REQUIRED COVERAGE FOR MINIMUM HOSPITAL STAY FOR 
                   MASTECTOMIES AND LYMPH NODE DISSECTIONS FOR THE 
                   TREATMENT OF BREAST CANCER AND COVERAGE FOR 
                   SECONDARY CONSULTATIONS.

       (a) Inpatient Care.--
       (1) In general.--A group health plan, and a health 
     insurance issuer providing health insurance coverage, that 
     provides medical and surgical benefits shall ensure that 
     inpatient coverage with respect to the treatment of breast 
     cancer is provided for a period of time as is determined by 
     the attending physician, in consultation with the patient, to 
     be medically necessary and appropriate following--
       (A) a mastectomy;
       (B) a lumpectomy; or
       (C) a lymph node dissection for the treatment of breast 
     cancer.
       (2) Exception.--Nothing in this section shall be construed 
     as requiring the provision of inpatient coverage if the 
     attending physician and patient determine that a shorter 
     period of hospital stay is medically appropriate.
       (b) Prohibition on Certain Modifications.--In implementing 
     the requirements of this section, a group health plan, and a 
     health insurance issuer providing health insurance coverage, 
     may not modify the terms and conditions of coverage based on 
     the determination by a participant, beneficiary, or enrollee 
     to request less than the minimum coverage required under 
     subsection (a).
       (c) Secondary Consultations.--
       (1) In general.--A group health plan, and a health 
     insurance issuer providing health insurance coverage, that 
     provides coverage with respect to medical and surgical 
     services provided in relation to the diagnosis and treatment 
     of cancer shall ensure that full coverage is provided for 
     secondary consultations by specialists in the appropriate 
     medical fields (including pathology, radiology, and oncology) 
     to confirm or refute such diagnosis. Such plan or issuer 
     shall ensure that full coverage is provided for such 
     secondary consultation whether such consultation is based on 
     a positive or negative initial diagnosis. In any case in 
     which the attending physician certifies in writing that 
     services necessary for such a secondary consultation are not 
     sufficiently available from specialists operating under the 
     plan or coverage with respect to whose services coverage is 
     otherwise provided under such plan or by such issuer, such 
     plan or issuer shall ensure that coverage is provided with 
     respect to the services necessary for the secondary 
     consultation with any other specialist selected by the 
     attending physician for such purpose at no additional cost to 
     the individual beyond that which the individual would have 
     paid if the specialist was participating in the network of 
     the plan or issuer.
       (2) Exception.--Nothing in paragraph (1) shall be construed 
     as requiring the provision of secondary consultations where 
     the patient determines not to seek such a consultation.
       (d) Prohibition on Penalties or Incentives.--A group health 
     plan, and a health insurance issuer providing health 
     insurance coverage, may not--
       (1) penalize or otherwise reduce or limit the reimbursement 
     of a provider or specialist because the provider or 
     specialist provided care to a participant, beneficiary, or 
     enrollee in accordance with this section;
       (2) provide financial or other incentives to a physician or 
     specialist to induce the physician or specialist to keep the 
     length of inpatient stays of patients following a mastectomy, 
     lumpectomy, or a lymph node dissection for the treatment of 
     breast cancer below certain limits or to limit referrals for 
     secondary consultations; or
       (3) provide financial or other incentives to a physician or 
     specialist to induce the physician or specialist to refrain 
     from referring a

[[Page 7646]]

     participant, beneficiary, or enrollee for a secondary 
     consultation that would otherwise be covered by the plan or 
     coverage involved under subsection (c).

                   Subtitle C--Access to Information

     SEC. 121. PATIENT ACCESS TO INFORMATION.

       (a) Requirement.--
       (1) Disclosure.--
       (A) In general.--A group health plan, and a health 
     insurance issuer that provides coverage in connection with 
     health insurance coverage, shall provide for the disclosure 
     to participants, beneficiaries, and enrollees--
       (i) of the information described in subsection (b) at the 
     time of the initial enrollment of the participant, 
     beneficiary, or enrollee under the plan or coverage;
       (ii) of such information on an annual basis--

       (I) in conjunction with the election period of the plan or 
     coverage if the plan or coverage has such an election period; 
     or
       (II) in the case of a plan or coverage that does not have 
     an election period, in conjunction with the beginning of the 
     plan or coverage year; and

       (iii) of information relating to any material reduction to 
     the benefits or information described in such subsection or 
     subsection (c), in the form of a notice provided not later 
     than 30 days before the date on which the reduction takes 
     effect.
       (B) Participants, beneficiaries, and enrollees.--The 
     disclosure required under subparagraph (A) shall be 
     provided--
       (i) jointly to each participant, beneficiary, and enrollee 
     who reside at the same address; or
       (ii) in the case of a beneficiary or enrollee who does not 
     reside at the same address as the participant or another 
     enrollee, separately to the participant or other enrollees 
     and such beneficiary or enrollee.
       (2) Provision of information.--Information shall be 
     provided to participants, beneficiaries, and enrollees under 
     this section at the last known address maintained by the plan 
     or issuer with respect to such participants, beneficiaries, 
     or enrollees, to the extent that such information is provided 
     to participants, beneficiaries, or enrollees via the United 
     States Postal Service or other private delivery service.
       (b) Required Information.--The informational materials to 
     be distributed under this section shall include for each 
     option available under the group health plan or health 
     insurance coverage the following:
       (1) Benefits.--A description of the covered benefits, 
     including--
       (A) any in- and out-of-network benefits;
       (B) specific preventive services covered under the plan or 
     coverage if such services are covered;
       (C) any specific exclusions or express limitations of 
     benefits described in section 104(b)(3)(C);
       (D) any other benefit limitations, including any annual or 
     lifetime benefit limits and any monetary limits or limits on 
     the number of visits, days, or services, and any specific 
     coverage exclusions; and
       (E) any definition of medical necessity used in making 
     coverage determinations by the plan, issuer, or claims 
     administrator.
       (2) Cost sharing.--A description of any cost-sharing 
     requirements, including--
       (A) any premiums, deductibles, coinsurance, copayment 
     amounts, and liability for balance billing, for which the 
     participant, beneficiary, or enrollee will be responsible 
     under each option available under the plan;
       (B) any maximum out-of-pocket expense for which the 
     participant, beneficiary, or enrollee may be liable;
       (C) any cost-sharing requirements for out-of-network 
     benefits or services received from nonparticipating 
     providers; and
       (D) any additional cost-sharing or charges for benefits and 
     services that are furnished without meeting applicable plan 
     or coverage requirements, such as prior authorization or 
     precertification.
       (3) Service area.--A description of the plan or issuer's 
     service area, including the provision of any out-of-area 
     coverage.
       (4) Participating providers.--A directory of participating 
     providers (to the extent a plan or issuer provides coverage 
     through a network of providers) that includes, at a minimum, 
     the name, address, and telephone number of each participating 
     provider, and information about how to inquire whether a 
     participating provider is currently accepting new patients.
       (5) Choice of primary care provider.--A description of any 
     requirements and procedures to be used by participants, 
     beneficiaries, and enrollees in selecting, accessing, or 
     changing their primary care provider, including providers 
     both within and outside of the network (if the plan or issuer 
     permits out-of-network services), and the right to select a 
     pediatrician as a primary care provider under section 116 for 
     a participant, beneficiary, or enrollee who is a child if 
     such section applies.
       (6) Preauthorization requirements.--A description of the 
     requirements and procedures to be used to obtain 
     preauthorization for health services, if such 
     preauthorization is required.
       (7) Experimental and investigational treatments.--A 
     description of the process for determining whether a 
     particular item, service, or treatment is considered 
     experimental or investigational, and the circumstances under 
     which such treatments are covered by the plan or issuer.
       (8) Specialty care.--A description of the requirements and 
     procedures to be used by participants, beneficiaries, and 
     enrollees in accessing specialty care and obtaining referrals 
     to participating and nonparticipating specialists, including 
     any limitations on choice of health care professionals 
     referred to in section 112(b)(2) and the right to timely 
     access to specialists care under section 114 if such section 
     applies.
       (9) Clinical trials.--A description of the circumstances 
     and conditions under which participation in clinical trials 
     is covered under the terms and conditions of the plan or 
     coverage, and the right to obtain coverage for approved 
     clinical trials under section 119 if such section applies.
       (10) Prescription drugs.--To the extent the plan or issuer 
     provides coverage for prescription drugs, a statement of 
     whether such coverage is limited to drugs included in a 
     formulary, a description of any provisions and cost-sharing 
     required for obtaining on- and off-formulary medications, and 
     a description of the rights of participants, beneficiaries, 
     and enrollees in obtaining access to access to prescription 
     drugs under section 118 if such section applies.
       (11) Emergency services.--A summary of the rules and 
     procedures for accessing emergency services, including the 
     right of a participant, beneficiary, or enrollee to obtain 
     emergency services under the prudent layperson standard under 
     section 113, if such section applies, and any educational 
     information that the plan or issuer may provide regarding the 
     appropriate use of emergency services.
       (12) Claims and appeals.--A description of the plan or 
     issuer's rules and procedures pertaining to claims and 
     appeals, a description of the rights (including deadlines for 
     exercising rights) of participants, beneficiaries, and 
     enrollees under subtitle A in obtaining covered benefits, 
     filing a claim for benefits, and appealing coverage decisions 
     internally and externally (including telephone numbers and 
     mailing addresses of the appropriate authority), and a 
     description of any additional legal rights and remedies 
     available under section 502 of the Employee Retirement Income 
     Security Act of 1974 and applicable State law.
       (13) Advance directives and organ donation.--A description 
     of procedures for advance directives and organ donation 
     decisions if the plan or issuer maintains such procedures.
       (14) Information on plans and issuers.--The name, mailing 
     address, and telephone number or numbers of the plan 
     administrator and the issuer to be used by participants, 
     beneficiaries, and enrollees seeking information about plan 
     or coverage benefits and services, payment of a claim, or 
     authorization for services and treatment. Notice of whether 
     the benefits under the plan or coverage are provided under a 
     contract or policy of insurance issued by an issuer, or 
     whether benefits are provided directly by the plan sponsor 
     who bears the insurance risk.
       (15) Translation services.--A summary description of any 
     translation or interpretation services (including the 
     availability of printed information in languages other than 
     English, audio tapes, or information in Braille) that are 
     available for non-English speakers and participants, 
     beneficiaries, and enrollees with communication disabilities 
     and a description of how to access these items or services.
       (16) Accreditation information.--Any information that is 
     made public by accrediting organizations in the process of 
     accreditation if the plan or issuer is accredited, or any 
     additional quality indicators (such as the results of 
     enrollee satisfaction surveys) that the plan or issuer makes 
     public or makes available to participants, beneficiaries, and 
     enrollees.
       (17) Notice of requirements.--A description of any rights 
     of participants, beneficiaries, and enrollees that are 
     established by the Bipartisan Patient Protection Act of 2001 
     (excluding those described in paragraphs (1) through (16)) if 
     such sections apply. The description required under this 
     paragraph may be combined with the notices of the type 
     described in sections 711(d), 713(b), or 606(a)(1) of the 
     Employee Retirement Income Security Act of 1974 and with any 
     other notice provision that the appropriate Secretary 
     determines may be combined, so long as such combination does 
     not result in any reduction in the information that would 
     otherwise be provided to the recipient.
       (18) Availability of additional information.--A statement 
     that the information described in subsection (c), and 
     instructions on obtaining such information (including 
     telephone numbers and, if available, Internet websites), 
     shall be made available upon request.
       (c) Additional Information.--The informational materials to 
     be provided upon the request of a participant, beneficiary, 
     or enrollee shall include for each option available under a 
     group health plan or health insurance coverage the following:

[[Page 7647]]

       (1) Status of providers.--The State licensure status of the 
     plan or issuer's participating health care professionals and 
     participating health care facilities, and, if available, the 
     education, training, specialty qualifications or 
     certifications of such professionals.
       (2) Compensation methods.--A summary description by 
     category of the applicable methods (such as capitation, fee-
     for-service, salary, bundled payments, per diem, or a 
     combination thereof) used for compensating prospective or 
     treating health care professionals (including primary care 
     providers and specialists) and facilities in connection with 
     the provision of health care under the plan or coverage.
       (3) Prescription drugs.--Information about whether a 
     specific prescription medication is included in the formulary 
     of the plan or issuer, if the plan or issuer uses a defined 
     formulary.
       (4) External appeals information.--Aggregate information on 
     the number and outcomes of external medical reviews, relative 
     to the sample size (such as the number of covered lives) 
     under the plan or under the coverage of the issuer.
       (d) Manner of Disclosure.--The information described in 
     this section shall be disclosed in an accessible medium and 
     format that is calculated to be understood by an average 
     participant or enrollee.
       (e) Rules of Construction.--Nothing in this section shall 
     be construed to prohibit a group health plan, or a health 
     insurance issuer in connection with health insurance 
     coverage, from--
       (1) distributing any other additional information 
     determined by the plan or issuer to be important or necessary 
     in assisting participants, beneficiaries, and enrollees in 
     the selection of a health plan or health insurance coverage; 
     and
       (2) complying with the provisions of this section by 
     providing information in brochures, through the Internet or 
     other electronic media, or through other similar means, so 
     long as--
       (A) the disclosure of such information in such form is in 
     accordance with requirements as the appropriate Secretary may 
     impose, and
       (B) in connection with any such disclosure of information 
     through the Internet or other electronic media--
       (i) the recipient has affirmatively consented to the 
     disclosure of such information in such form,
       (ii) the recipient is capable of accessing the information 
     so disclosed on the recipient's individual workstation or at 
     the recipient's home,
       (iii) the recipient retains an ongoing right to receive 
     paper disclosure of such information and receives, in advance 
     of any attempt at disclosure of such information to him or 
     her through the Internet or other electronic media, notice in 
     printed form of such ongoing right and of the proper software 
     required to view information so disclosed, and
       (iv) the plan administrator appropriately ensures that the 
     intended recipient is receiving the information so disclosed 
     and provides the information in printed form if the 
     information is not received.

         Subtitle D--Protecting the Doctor-Patient Relationship

     SEC. 131. PROHIBITION OF INTERFERENCE WITH CERTAIN MEDICAL 
                   COMMUNICATIONS.

       (a) General Rule.--The provisions of any contract or 
     agreement, or the operation of any contract or agreement, 
     between a group health plan or health insurance issuer in 
     relation to health insurance coverage (including any 
     partnership, association, or other organization that enters 
     into or administers such a contract or agreement) and a 
     health care provider (or group of health care providers) 
     shall not prohibit or otherwise restrict a health care 
     professional from advising such a participant, beneficiary, 
     or enrollee who is a patient of the professional about the 
     health status of the individual or medical care or treatment 
     for the individual's condition or disease, regardless of 
     whether benefits for such care or treatment are provided 
     under the plan or coverage, if the professional is acting 
     within the lawful scope of practice.
       (b) Nullification.--Any contract provision or agreement 
     that restricts or prohibits medical communications in 
     violation of subsection (a) shall be null and void.

     SEC. 132. PROHIBITION OF DISCRIMINATION AGAINST PROVIDERS 
                   BASED ON LICENSURE.

       (a) In General.--A group health plan, and a health 
     insurance issuer with respect to health insurance coverage, 
     shall not discriminate with respect to participation or 
     indemnification as to any provider who is acting within the 
     scope of the provider's license or certification under 
     applicable State law, solely on the basis of such license or 
     certification.
       (b) Construction.--Subsection (a) shall not be construed--
       (1) as requiring the coverage under a group health plan or 
     health insurance coverage of a particular benefit or service 
     or to prohibit a plan or issuer from including providers only 
     to the extent necessary to meet the needs of the plan's or 
     issuer's participants, beneficiaries, or enrollees or from 
     establishing any measure designed to maintain quality and 
     control costs consistent with the responsibilities of the 
     plan or issuer;
       (2) to override any State licensure or scope-of-practice 
     law; or
       (3) as requiring a plan or issuer that offers network 
     coverage to include for participation every willing provider 
     who meets the terms and conditions of the plan or issuer.

     SEC. 133. PROHIBITION AGAINST IMPROPER INCENTIVE 
                   ARRANGEMENTS.

       (a) In General.--A group health plan and a health insurance 
     issuer offering health insurance coverage may not operate any 
     physician incentive plan (as defined in subparagraph (B) of 
     section 1876(i)(8) of the Social Security Act) unless the 
     requirements described in clauses (i), (ii)(I), and (iii) of 
     subparagraph (A) of such section are met with respect to such 
     a plan.
       (b) Application.--For purposes of carrying out paragraph 
     (1), any reference in section 1876(i)(8) of the Social 
     Security Act to the Secretary, an eligible organization, or 
     an individual enrolled with the organization shall be treated 
     as a reference to the applicable authority, a group health 
     plan or health insurance issuer, respectively, and a 
     participant, beneficiary, or enrollee with the plan or 
     organization, respectively.
       (c) Construction.--Nothing in this section shall be 
     construed as prohibiting all capitation and similar 
     arrangements or all provider discount arrangements.

     SEC. 134. PAYMENT OF CLAIMS.

       A group health plan, and a health insurance issuer offering 
     group health insurance coverage, shall provide for prompt 
     payment of claims submitted for health care services or 
     supplies furnished to a participant, beneficiary, or enrollee 
     with respect to benefits covered by the plan or issuer, in a 
     manner consistent with the provisions of section 1842(c)(2) 
     of the Social Security Act (42 U.S.C. 1395u(c)(2)).

     SEC. 135. PROTECTION FOR PATIENT ADVOCACY.

       (a) Protection for Use of Utilization Review and Grievance 
     Process.--A group health plan, and a health insurance issuer 
     with respect to the provision of health insurance coverage, 
     may not retaliate against a participant, beneficiary, 
     enrollee, or health care provider based on the participant's, 
     beneficiary's, enrollee's or provider's use of, or 
     participation in, a utilization review process or a grievance 
     process of the plan or issuer (including an internal or 
     external review or appeal process) under this title.
       (b) Protection for Quality Advocacy by Health Care 
     Professionals.--
       (1) In general.--A group health plan or health insurance 
     issuer may not retaliate or discriminate against a protected 
     health care professional because the professional in good 
     faith--
       (A) discloses information relating to the care, services, 
     or conditions affecting one or more participants, 
     beneficiaries, or enrollees of the plan or issuer to an 
     appropriate public regulatory agency, an appropriate private 
     accreditation body, or appropriate management personnel of 
     the plan or issuer; or
       (B) initiates, cooperates, or otherwise participates in an 
     investigation or proceeding by such an agency with respect to 
     such care, services, or conditions.

     If an institutional health care provider is a participating 
     provider with such a plan or issuer or otherwise receives 
     payments for benefits provided by such a plan or issuer, the 
     provisions of the previous sentence shall apply to the 
     provider in relation to care, services, or conditions 
     affecting one or more patients within an institutional health 
     care provider in the same manner as they apply to the plan or 
     issuer in relation to care, services, or conditions provided 
     to one or more participants, beneficiaries, or enrollees; and 
     for purposes of applying this sentence, any reference to a 
     plan or issuer is deemed a reference to the institutional 
     health care provider.
       (2) Good faith action.--For purposes of paragraph (1), a 
     protected health care professional is considered to be acting 
     in good faith with respect to disclosure of information or 
     participation if, with respect to the information disclosed 
     as part of the action--
       (A) the disclosure is made on the basis of personal 
     knowledge and is consistent with that degree of learning and 
     skill ordinarily possessed by health care professionals with 
     the same licensure or certification and the same experience;
       (B) the professional reasonably believes the information to 
     be true;
       (C) the information evidences either a violation of a law, 
     rule, or regulation, of an applicable accreditation standard, 
     or of a generally recognized professional or clinical 
     standard or that a patient is in imminent hazard of loss of 
     life or serious injury; and
       (D) subject to subparagraphs (B) and (C) of paragraph (3), 
     the professional has followed reasonable internal procedures 
     of the plan, issuer, or institutional health care provider 
     established for the purpose of addressing quality concerns 
     before making the disclosure.
       (3) Exception and special rule.--
       (A) General exception.--Paragraph (1) does not protect 
     disclosures that would violate Federal or State law or 
     diminish or impair the rights of any person to the continued 
     protection of confidentiality of communications provided by 
     such law.

[[Page 7648]]

       (B) Notice of internal procedures.--Subparagraph (D) of 
     paragraph (2) shall not apply unless the internal procedures 
     involved are reasonably expected to be known to the health 
     care professional involved. For purposes of this 
     subparagraph, a health care professional is reasonably 
     expected to know of internal procedures if those procedures 
     have been made available to the professional through 
     distribution or posting.
       (C) Internal procedure exception.--Subparagraph (D) of 
     paragraph (2) also shall not apply if--
       (i) the disclosure relates to an imminent hazard of loss of 
     life or serious injury to a patient;
       (ii) the disclosure is made to an appropriate private 
     accreditation body pursuant to disclosure procedures 
     established by the body; or
       (iii) the disclosure is in response to an inquiry made in 
     an investigation or proceeding of an appropriate public 
     regulatory agency and the information disclosed is limited to 
     the scope of the investigation or proceeding.
       (4) Additional considerations.--It shall not be a violation 
     of paragraph (1) to take an adverse action against a 
     protected health care professional if the plan, issuer, or 
     provider taking the adverse action involved demonstrates that 
     it would have taken the same adverse action even in the 
     absence of the activities protected under such paragraph.
       (5) Notice.--A group health plan, health insurance issuer, 
     and institutional health care provider shall post a notice, 
     to be provided or approved by the Secretary of Labor, setting 
     forth excerpts from, or summaries of, the pertinent 
     provisions of this subsection and information pertaining to 
     enforcement of such provisions.
       (6) Constructions.--
       (A) Determinations of coverage.--Nothing in this subsection 
     shall be construed to prohibit a plan or issuer from making a 
     determination not to pay for a particular medical treatment 
     or service or the services of a type of health care 
     professional.
       (B) Enforcement of peer review protocols and internal 
     procedures.--Nothing in this subsection shall be construed to 
     prohibit a plan, issuer, or provider from establishing and 
     enforcing reasonable peer review or utilization review 
     protocols or determining whether a protected health care 
     professional has complied with those protocols or from 
     establishing and enforcing internal procedures for the 
     purpose of addressing quality concerns.
       (C) Relation to other rights.--Nothing in this subsection 
     shall be construed to abridge rights of participants, 
     beneficiaries, enrollees, and protected health care 
     professionals under other applicable Federal or State laws.
       (7) Protected health care professional defined.--For 
     purposes of this subsection, the term ``protected health care 
     professional'' means an individual who is a licensed or 
     certified health care professional and who--
       (A) with respect to a group health plan or health insurance 
     issuer, is an employee of the plan or issuer or has a 
     contract with the plan or issuer for provision of services 
     for which benefits are available under the plan or issuer; or
       (B) with respect to an institutional health care provider, 
     is an employee of the provider or has a contract or other 
     arrangement with the provider respecting the provision of 
     health care services.

                        Subtitle E--Definitions

     SEC. 151. DEFINITIONS.

       (a) Incorporation of General Definitions.--Except as 
     otherwise provided, the provisions of section 2791 of the 
     Public Health Service Act shall apply for purposes of this 
     title in the same manner as they apply for purposes of title 
     XXVII of such Act.
       (b) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of Health and Human 
     Services, in consultation with the Secretary of Labor and the 
     term ``appropriate Secretary'' means the Secretary of Health 
     and Human Services in relation to carrying out this title 
     under sections 2706 and 2751 of the Public Health Service Act 
     and the Secretary of Labor in relation to carrying out this 
     title under section 713 of the Employee Retirement Income 
     Security Act of 1974.
       (c) Additional Definitions.--For purposes of this title:
       (1) Applicable authority.--The term ``applicable 
     authority'' means--
       (A) in the case of a group health plan, the Secretary of 
     Health and Human Services and the Secretary of Labor; and
       (B) in the case of a health insurance issuer with respect 
     to a specific provision of this title, the applicable State 
     authority (as defined in section 2791(d) of the Public Health 
     Service Act), or the Secretary of Health and Human Services, 
     if such Secretary is enforcing such provision under section 
     2722(a)(2) or 2761(a)(2) of the Public Health Service Act.
       (2) Enrollee.--The term ``enrollee'' means, with respect to 
     health insurance coverage offered by a health insurance 
     issuer, an individual enrolled with the issuer to receive 
     such coverage.
       (3) Group health plan.--The term ``group health plan'' has 
     the meaning given such term in section 733(a) of the Employee 
     Retirement Income Security Act of 1974, except that such term 
     includes a employee welfare benefit plan treated as a group 
     health plan under section 732(d) of such Act or defined as 
     such a plan under section 607(1) of such Act.
       (4) Health care professional.--The term ``health care 
     professional'' means an individual who is licensed, 
     accredited, or certified under State law to provide specified 
     health care services and who is operating within the scope of 
     such licensure, accreditation, or certification.
       (5) Health care provider.--The term ``health care 
     provider'' includes a physician or other health care 
     professional, as well as an institutional or other facility 
     or agency that provides health care services and that is 
     licensed, accredited, or certified to provide health care 
     items and services under applicable State law.
       (6) Network.--The term ``network'' means, with respect to a 
     group health plan or health insurance issuer offering health 
     insurance coverage, the participating health care 
     professionals and providers through whom the plan or issuer 
     provides health care items and services to participants, 
     beneficiaries, or enrollees.
       (7) Nonparticipating.--The term ``nonparticipating'' means, 
     with respect to a health care provider that provides health 
     care items and services to a participant, beneficiary, or 
     enrollee under group health plan or health insurance 
     coverage, a health care provider that is not a participating 
     health care provider with respect to such items and services.
       (8) Participating.--The term ``participating'' means, with 
     respect to a health care provider that provides health care 
     items and services to a participant, beneficiary, or enrollee 
     under group health plan or health insurance coverage offered 
     by a health insurance issuer, a health care provider that 
     furnishes such items and services under a contract or other 
     arrangement with the plan or issuer.
       (9) Prior authorization.--The term ``prior authorization'' 
     means the process of obtaining prior approval from a health 
     insurance issuer or group health plan for the provision or 
     coverage of medical services.
       (10) Terms and conditions.--The term ``terms and 
     conditions'' includes, with respect to a group health plan or 
     health insurance coverage, requirements imposed under this 
     title with respect to the plan or coverage.

     SEC. 152. PREEMPTION; STATE FLEXIBILITY; CONSTRUCTION.

       (a) Continued Applicability of State Law With Respect to 
     Health Insurance Issuers.--
       (1) In general.--Subject to paragraph (2), this title shall 
     not be construed to supersede any provision of State law 
     which establishes, implements, or continues in effect any 
     standard or requirement solely relating to health insurance 
     issuers (in connection with group health insurance coverage 
     or otherwise) except to the extent that such standard or 
     requirement prevents the application of a requirement of this 
     title.
       (2) Continued preemption with respect to group health 
     plans.--Nothing in this title shall be construed to affect or 
     modify the provisions of section 514 of the Employee 
     Retirement Income Security Act of 1974 with respect to group 
     health plans.
       (3) Construction.--In applying this section, a State law 
     that provides for equal access to, and availability of, all 
     categories of licensed health care providers and services 
     shall not be treated as preventing the application of any 
     requirement of this title.
       (b) Application of Substantially Equivalent State Laws.--
       (1) In general.--In the case of a State law that imposes, 
     with respect to health insurance coverage offered by a health 
     insurance issuer and with respect to a group health plan that 
     is a non-Federal governmental plan, a requirement that is 
     substantially equivalent (within the meaning of subsection 
     (c)) to a patient protection requirement (as defined in 
     paragraph (3)) and does not prevent the application of other 
     requirements under this division (except in the case of other 
     substantially equivalent requirements), in applying the 
     requirements of this title under section 2707 and 2753 (as 
     applicable) of the Public Health Service Act (as added by 
     title II), subject to subsection (a)(2)--
       (A) the State law shall not be treated as being superseded 
     under subsection (a); and
       (B) the State law shall apply instead of the patient 
     protection requirement otherwise applicable with respect to 
     health insurance coverage and non-Federal governmental plans.
       (2) Limitation.--In the case of a group health plan covered 
     under title I of the Employee Retirement Income Security Act 
     of 1974, paragraph (1) shall be construed to apply only with 
     respect to the health insurance coverage (if any) offered in 
     connection with the plan.
       (3) Patient protection requirement defined.--For purposes 
     of this section, the term ``patient protection requirement'' 
     means a requirement under this title, and includes (as a 
     single requirement) a group or related set of requirements 
     under a section or similar unit under this title.

[[Page 7649]]

       (c) Determinations of Substantial Equivalence.--
       (1) Certification by states.--A State may submit to the 
     Secretary a certification that a State law provides for 
     patient protections that are at least substantially 
     equivalent to one or more patient protection requirements. 
     Such certification shall be accompanied by such information 
     as may be required to permit the Secretary to make the 
     determination described in paragraph (2)(A).
       (2) Review.--
       (A) In general.--The Secretary shall promptly review a 
     certification submitted under paragraph (1) with respect to a 
     State law to determine if the State law provides for at least 
     substantially equivalent and effective patient protections to 
     the patient protection requirement (or requirements) to which 
     the law relates.
       (B) Approval deadlines.--
       (i) Initial review.--Such a certification is considered 
     approved unless the Secretary notifies the State in writing, 
     within 90 days after the date of receipt of the 
     certification, that the certification is disapproved (and the 
     reasons for disapproval) or that specified additional 
     information is needed to make the determination described in 
     subparagraph (A).
       (ii) Additional information.--With respect to a State that 
     has been notified by the Secretary under clause (i) that 
     specified additional information is needed to make the 
     determination described in subparagraph (A), the Secretary 
     shall make the determination within 60 days after the date on 
     which such specified additional information is received by 
     the Secretary.
       (3) Approval.--
       (A) In general.--The Secretary shall approve a 
     certification under paragraph (1) unless--
       (i) the State fails to provide sufficient information to 
     enable the Secretary to make a determination under paragraph 
     (2)(A); or
       (ii) the Secretary determines that the State law involved 
     does not provide for patient protections that are at least 
     substantially equivalent to and as effective as the patient 
     protection requirement (or requirements) to which the law 
     relates.
       (B) State challenge.--A State that has a certification 
     disapproved by the Secretary under subparagraph (A) may 
     challenge such disapproval in the appropriate United States 
     district court.
       (4) Construction.--Nothing in this subsection shall be 
     construed as preventing the certification (and approval of 
     certification) of a State law under this subsection solely 
     because it provides for greater protections for patients than 
     those protections otherwise required to establish substantial 
     equivalence.
       (d) Definitions.--For purposes of this section:
       (1) State law.--The term ``State law'' includes all laws, 
     decisions, rules, regulations, or other State action having 
     the effect of law, of any State. A law of the United States 
     applicable only to the District of Columbia shall be treated 
     as a State law rather than a law of the United States.
       (2) State.--The term ``State'' includes a State, the 
     District of Columbia, Puerto Rico, the Virgin Islands, Guam, 
     American Samoa, the Northern Mariana Islands, any political 
     subdivisions of such, or any agency or instrumentality of 
     such.

     SEC. 153. EXCLUSIONS.

       (a) No Benefit Requirements.--Nothing in this title shall 
     be construed to require a group health plan or a health 
     insurance issuer offering health insurance coverage to 
     include specific items and services under the terms of such a 
     plan or coverage, other than those provided under the terms 
     and conditions of such plan or coverage.
       (b) Exclusion from Access to Care Managed Care Provisions 
     for Fee-for-Service Coverage.--
       (1) In general.--The provisions of sections 111 through 117 
     shall not apply to a group health plan or health insurance 
     coverage if the only coverage offered under the plan or 
     coverage is fee-for-service coverage (as defined in paragraph 
     (2)).
       (2) Fee-for-service coverage defined.--For purposes of this 
     subsection, the term ``fee-for-service coverage'' means 
     coverage under a group health plan or health insurance 
     coverage that--
       (A) reimburses hospitals, health professionals, and other 
     providers on a fee-for-service basis without placing the 
     provider at financial risk;
       (B) does not vary reimbursement for such a provider based 
     on an agreement to contract terms and conditions or the 
     utilization of health care items or services relating to such 
     provider;
       (C) allows access to any provider that is lawfully 
     authorized to provide the covered services and that agrees to 
     accept the terms and conditions of payment established under 
     the plan or by the issuer; and
       (D) for which the plan or issuer does not require prior 
     authorization before providing for any health care services.

     SEC. 154. COVERAGE OF LIMITED SCOPE PLANS.

       Only for purposes of applying the requirements of this 
     title under sections 2707 and 2753 of the Public Health 
     Service Act and section 714 of the Employee Retirement Income 
     Security Act of 1974, section 2791(c)(2)(A), and section 
     733(c)(2)(A) of the Employee Retirement Income Security Act 
     of 1974 shall be deemed not to apply.

     SEC. 155. REGULATIONS.

       The Secretaries of Health and Human Services and Labor 
     shall issue such regulations as may be necessary or 
     appropriate to carry out this title. Such regulations shall 
     be issued consistent with section 104 of Health Insurance 
     Portability and Accountability Act of 1996. Such Secretaries 
     may promulgate any interim final rules as the Secretaries 
     determine are appropriate to carry out this title.

     SEC. 156. INCORPORATION INTO PLAN OR COVERAGE DOCUMENTS.

       The requirements of this title with respect to a group 
     health plan or health insurance coverage are deemed to be 
     incorporated into, and made a part of, such plan or the 
     policy, certificate, or contract providing such coverage and 
     are enforceable under law as if directly included in the 
     documentation of such plan or such policy, certificate, or 
     contract.

 TITLE II--APPLICATION OF QUALITY CARE STANDARDS TO GROUP HEALTH PLANS 
   AND HEALTH INSURANCE COVERAGE UNDER THE PUBLIC HEALTH SERVICE ACT

     SEC. 201. APPLICATION TO GROUP HEALTH PLANS AND GROUP HEALTH 
                   INSURANCE COVERAGE.

       (a) In General.--Subpart 2 of part A of title XXVII of the 
     Public Health Service Act is amended by adding at the end the 
     following new section:

     ``SEC. 2707. PATIENT PROTECTION STANDARDS.

       ``Each group health plan shall comply with patient 
     protection requirements under title I of the Bipartisan 
     Patient Protection Act of 2001, and each health insurance 
     issuer shall comply with patient protection requirements 
     under such title with respect to group health insurance 
     coverage it offers, and such requirements shall be deemed to 
     be incorporated into this subsection.''.
       (b) Conforming Amendment.--Section 2721(b)(2)(A) of such 
     Act (42 U.S.C. 300gg-21(b)(2)(A)) is amended by inserting 
     ``(other than section 2707)'' after ``requirements of such 
     subparts''.

     SEC. 202. APPLICATION TO INDIVIDUAL HEALTH INSURANCE 
                   COVERAGE.

       Part B of title XXVII of the Public Health Service Act is 
     amended by inserting after section 2752 the following new 
     section:

     ``SEC. 2753. PATIENT PROTECTION STANDARDS.

       ``Each health insurance issuer shall comply with patient 
     protection requirements under title I of the Bipartisan 
     Patient Protection Act of 2001 with respect to individual 
     health insurance coverage it offers, and such requirements 
     shall be deemed to be incorporated into this subsection.''.

TITLE III--AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
                                  1974

     SEC. 301. APPLICATION OF PATIENT PROTECTION STANDARDS TO 
                   GROUP HEALTH PLANS AND GROUP HEALTH INSURANCE 
                   COVERAGE UNDER THE EMPLOYEE RETIREMENT INCOME 
                   SECURITY ACT OF 1974.

       Subpart B of part 7 of subtitle B of title I of the 
     Employee Retirement Income Security Act of 1974 is amended by 
     adding at the end the following new section:

     ``SEC. 714. PATIENT PROTECTION STANDARDS.

       ``(a) In General.--Subject to subsection (b), a group 
     health plan (and a health insurance issuer offering group 
     health insurance coverage in connection with such a plan) 
     shall comply with the requirements of title I of the 
     Bipartisan Patient Protection Act of 2001 (as in effect as of 
     the date of the enactment of such Act), and such requirements 
     shall be deemed to be incorporated into this subsection.
       ``(b) Plan Satisfaction of Certain Requirements.--
       ``(1) Satisfaction of certain requirements through 
     insurance.--For purposes of subsection (a), insofar as a 
     group health plan provides benefits in the form of health 
     insurance coverage through a health insurance issuer, the 
     plan shall be treated as meeting the following requirements 
     of title I of the Bipartisan Patient Protection Act of 2001 
     with respect to such benefits and not be considered as 
     failing to meet such requirements because of a failure of the 
     issuer to meet such requirements so long as the plan sponsor 
     or its representatives did not cause such failure by the 
     issuer:
       ``(A) Section 111 (relating to consumer choice option).
       ``(B) Section 112 (relating to choice of health care 
     professional).
       ``(C) Section 113 (relating to access to emergency care).
       ``(D) Section 114 (relating to timely access to 
     specialists).
       ``(E) Section 115 (relating to patient access to 
     obstetrical and gynecological care).
       ``(F) Section 116 (relating to access to pediatric care).
       ``(G) Section 117 (relating to continuity of care), but 
     only insofar as a replacement issuer assumes the obligation 
     for continuity of care.
       ``(H) Section 118 (relating to access to needed 
     prescription drugs).
       ``(I) Section 119 (relating to coverage for individuals 
     participating in approved clinical trials).

[[Page 7650]]

       ``(J) Section 120 (relating to required coverage for 
     minimum hospital stay for mastectomies and lymph node 
     dissections for the treatment of breast cancer and coverage 
     for secondary consultations).
       ``(K) Section 134 (relating to payment of claims).
       ``(2) Information.--With respect to information required to 
     be provided or made available under section 121 of the 
     Bipartisan Patient Protection Act of 2001, in the case of a 
     group health plan that provides benefits in the form of 
     health insurance coverage through a health insurance issuer, 
     the Secretary shall determine the circumstances under which 
     the plan is not required to provide or make available the 
     information (and is not liable for the issuer's failure to 
     provide or make available the information), if the issuer is 
     obligated to provide and make available (or provides and 
     makes available) such information.
       ``(3) Internal appeals.--With respect to the internal 
     appeals process required to be established under section 103 
     of such Act, in the case of a group health plan that provides 
     benefits in the form of health insurance coverage through a 
     health insurance issuer, the Secretary shall determine the 
     circumstances under which the plan is not required to provide 
     for such process and system (and is not liable for the 
     issuer's failure to provide for such process and system), if 
     the issuer is obligated to provide for (and provides for) 
     such process and system.
       ``(4) External appeals.--Pursuant to rules of the 
     Secretary, insofar as a group health plan enters into a 
     contract with a qualified external appeal entity for the 
     conduct of external appeal activities in accordance with 
     section 104 of such Act, the plan shall be treated as meeting 
     the requirement of such section and is not liable for the 
     entity's failure to meet any requirements under such section.
       ``(5) Application to prohibitions.--Pursuant to rules of 
     the Secretary, if a health insurance issuer offers health 
     insurance coverage in connection with a group health plan and 
     takes an action in violation of any of the following sections 
     of the Bipartisan Patient Protection Act of 2001, the group 
     health plan shall not be liable for such violation unless the 
     plan caused such violation:
       ``(A) Section 131 (relating to prohibition of interference 
     with certain medical communications).
       ``(B) Section 132 (relating to prohibition of 
     discrimination against providers based on licensure).
       ``(C) Section 133 (relating to prohibition against improper 
     incentive arrangements).
       ``(D) Section 135 (relating to protection for patient 
     advocacy).
       ``(6) Construction.--Nothing in this subsection shall be 
     construed to affect or modify the responsibilities of the 
     fiduciaries of a group health plan under part 4 of subtitle 
     B.
       ``(7) Treatment of substantially equivalent state laws.--
     For purposes of applying this subsection, any reference in 
     this subsection to a requirement in a section or other 
     provision in the Bipartisan Patient Protection Act of 2001 
     with respect to a health insurance issuer is deemed to 
     include a reference to a requirement under a State law that 
     is substantially equivalent (as determined under section 
     152(c) of such Act) to the requirement in such section or 
     other provisions.
       ``(8) Application to certain prohibitions against 
     retaliation.--With respect to compliance with the 
     requirements of section 135(b)(1) of the Bipartisan Patient 
     Protection Act of 2001, for purposes of this subtitle the 
     term `group health plan' is deemed to include a reference to 
     an institutional health care provider.
       ``(c) Enforcement of Certain Requirements.--
       ``(1) Complaints.--Any protected health care professional 
     who believes that the professional has been retaliated or 
     discriminated against in violation of section 135(b)(1) of 
     the Bipartisan Patient Protection Act of 2001 may file with 
     the Secretary a complaint within 180 days of the date of the 
     alleged retaliation or discrimination.
       ``(2) Investigation.--The Secretary shall investigate such 
     complaints and shall determine if a violation of such section 
     has occurred and, if so, shall issue an order to ensure that 
     the protected health care professional does not suffer any 
     loss of position, pay, or benefits in relation to the plan, 
     issuer, or provider involved, as a result of the violation 
     found by the Secretary.
       ``(d) Conforming Regulations.--The Secretary shall issue 
     regulations to coordinate the requirements on group health 
     plans and health insurance issuers under this section with 
     the requirements imposed under the other provisions of this 
     title. In order to reduce duplication and clarify the rights 
     of participants and beneficiaries with respect to information 
     that is required to be provided, such regulations shall 
     coordinate the information disclosure requirements under 
     section 121 of the Bipartisan Patient Protection Act of 2001 
     with the reporting and disclosure requirements imposed under 
     part 1, so long as such coordination does not result in any 
     reduction in the information that would otherwise be provided 
     to participants and beneficiaries.''.
       (b) Satisfaction of ERISA Claims Procedure Requirement.--
     Section 503 of such Act (29 U.S.C. 1133) is amended by 
     inserting ``(a)'' after ``Sec. 503.'' and by adding at the 
     end the following new subsection:
       ``(b) In the case of a group health plan (as defined in 
     section 733) compliance with the requirements of subtitle A 
     of title I of the Bipartisan Patient Protection Act of 2001, 
     and compliance with regulations promulgated by the Secretary, 
     in the case of a claims denial shall be deemed compliance 
     with subsection (a) with respect to such claims denial.''.
       (c) Conforming Amendments.--(1) Section 732(a) of such Act 
     (29 U.S.C. 1185(a)) is amended by striking ``section 711'' 
     and inserting ``sections 711 and 714''.
       (2) The table of contents in section 1 of such Act is 
     amended by inserting after the item relating to section 713 
     the following new item:

``Sec. 714. Patient protection standards.''.

       (3) Section 502(b)(3) of such Act (29 U.S.C. 1132(b)(3)) is 
     amended by inserting ``(other than section 135(b))'' after 
     ``part 7''.

     SEC. 302. AVAILABILITY OF CIVIL REMEDIES.

       (a) Availability of Federal Civil Remedies in Cases Not 
     Involving Medically Reviewable Decisions.--
       (1) In general.--Section 502 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1132) is amended by 
     adding at the end the following new subsection:
       ``(n) Cause of Action Relating to Provision of Health 
     Benefits.--
       ``(1) In general.--In any case in which--
       ``(A) a person who is a fiduciary of a group health plan, a 
     health insurance issuer offering health insurance coverage in 
     connection with the plan, or an agent of the plan, issuer, or 
     plan sponsor--
       ``(i) upon consideration of a claim for benefits of a 
     participant or beneficiary under section 102 of the 
     Bipartisan Patient Protection Act of 2001 (relating to 
     procedures for initial claims for benefits and prior 
     authorization determinations) or upon review of a denial of 
     such a claim under section 103 of such Act (relating to 
     internal appeal of a denial of a claim for benefits), fails 
     to exercise ordinary care in making a decision--

       ``(I) regarding whether an item or service is covered under 
     the terms and conditions of the plan or coverage,
       ``(II) regarding whether an individual is a participant or 
     beneficiary who is enrolled under the terms and conditions of 
     the plan or coverage (including the applicability of any 
     waiting period under the plan or coverage), or
       ``(III) as to the application of cost-sharing requirements 
     or the application of a specific exclusion or express 
     limitation on the amount, duration, or scope of coverage of 
     items or services under the terms and conditions of the plan 
     or coverage, or

       ``(ii) otherwise fails to exercise ordinary care in the 
     performance of a duty under the terms and conditions of the 
     plan with respect to a participant or beneficiary, and
       ``(B) such failure is a proximate cause of personal injury 
     to, or the death of, the participant or beneficiary,

     such person shall be liable to the participant or beneficiary 
     (or the estate of such participant or beneficiary) for 
     economic and noneconomic damages (but not exemplary or 
     punitive damages) in connection with such personal injury or 
     death.
       ``(2) Cause of action must not involve medically reviewable 
     decision.--
       ``(A) In general.--A cause of action is established under 
     paragraph (1)(A) only if the decision referred to in clause 
     (i) or the failure described in clause (ii) does not include 
     a medically reviewable decision.
       ``(B) Medically reviewable decision.--For purposes of 
     subparagraph (A), the term `medically reviewable decision' 
     means a denial of a claim for benefits under the plan which 
     is described in section 104(d)(2) of the Bipartisan Patient 
     Protection Act of 2001 (relating to medically reviewable 
     decisions).
       ``(3) Definitions.--For purposes of this subsection.--
       ``(A) Ordinary care.--The term `ordinary care' means--
       ``(i) with respect to a determination on a claim for 
     benefits, that degree of care, skill, and diligence that a 
     reasonable and prudent individual would exercise in making a 
     fair determination on a claim for benefits of like kind to 
     the claim involved; and
       ``(ii) with respect to the performance of a duty, that 
     degree of care, skill, and diligence that a reasonable and 
     prudent individual would exercise in performing the duty or a 
     duty of like character.
       ``(B) Personal injury.--The term `personal injury' means a 
     physical injury and includes an injury arising out of the 
     treatment (or failure to treat) a mental illness or disease.
       ``(C) Claim for benefits; denial.--The terms `claim for 
     benefits' and `denial of a claim for benefits' have the 
     meanings provided such terms in section 102(e) of the 
     Bipartisan Patient Protection Act of 2001.
       ``(D) Terms and conditions.--The term `terms and 
     conditions' includes, with respect to a group health plan or 
     health insurance coverage, requirements imposed under title I 
     of the Bipartisan Patient Protection Act of 2001 or under 
     part 6 or 7.
       ``(E) Group health plan and other related terms.--The 
     provisions of sections

[[Page 7651]]

     732(d) and 733 apply for purposes of this subsection in the 
     same manner as they apply for purposes of part 7, except that 
     the term `group health plan' includes a group health plan (as 
     defined in section 607(1)).
       ``(4) Exclusion of employers and other plan sponsors.--
       ``(A) Causes of action against employers and plan sponsors 
     precluded.--Subject to subparagraph (B), paragraph (1)(A) 
     does not authorize a cause of action against an employer or 
     other plan sponsor maintaining the plan (or against an 
     employee of such an employer or sponsor acting within the 
     scope of employment).
       ``(B) Certain causes of action permitted.--Notwithstanding 
     subparagraph (A), a cause of action may arise against an 
     employer or other plan sponsor (or against an employee of 
     such an employer or sponsor acting within the scope of 
     employment)--
       ``(i) under clause (i) of paragraph (1)(A), to the extent 
     there was direct participation by the employer or other plan 
     sponsor (or employee) in the decision of the plan under 
     section 102 of the Bipartisan Patient Protection Act of 2001 
     upon consideration of a claim for benefits or under section 
     103 of such Act upon review of a denial of a claim for 
     benefits, or
       ``(ii) under clause (ii) of paragraph (1)(A), to the extent 
     there was direct participation by the employer or other plan 
     sponsor (or employee) in the failure described in such 
     clause.
       ``(C) Direct participation.--
       ``(i) Direct participation in decisions.--For purposes of 
     subparagraph (B), the term `direct participation' means, in 
     connection with a decision described in clause (i) of 
     paragraph (1)(A) or a failure described in clause (ii) of 
     such paragraph, the actual making of such decision or the 
     actual exercise of control in making such decision or in the 
     conduct constituting the failure.
       ``(ii) Rules of construction.--For purposes of clause (i), 
     the employer or plan sponsor (or employee) shall not be 
     construed to be engaged in direct participation because of 
     any form of decisionmaking or other conduct that is merely 
     collateral or precedent to the decision described in clause 
     (i) of paragraph (1)(A) on a particular claim for benefits of 
     a participant or beneficiary or that is merely collateral or 
     precedent to the conduct constituting a failure described in 
     clause (ii) of paragraph (1)(A) with respect to a particular 
     participant or beneficiary, including (but not limited to)--

       ``(I) any participation by the employer or other plan 
     sponsor (or employee) in the selection of the group health 
     plan or health insurance coverage involved or the third party 
     administrator or other agent;
       ``(II) any engagement by the employer or other plan sponsor 
     (or employee) in any cost-benefit analysis undertaken in 
     connection with the selection of, or continued maintenance 
     of, the plan or coverage involved;
       ``(III) any participation by the employer or other plan 
     sponsor (or employee) in the process of creating, continuing, 
     modifying, or terminating the plan or any benefit under the 
     plan, if such process was not substantially focused solely on 
     the particular situation of the participant or beneficiary 
     referred to in paragraph (1)(A); and
       ``(IV) any participation by the employer or other plan 
     sponsor (or employee) in the design of any benefit under the 
     plan, including the amount of copayment and limits connected 
     with such benefit.

       ``(iv) Irrelevance of certain collateral efforts made by 
     employer or plan sponsor.--For purposes of this subparagraph, 
     an employer or plan sponsor shall not be treated as engaged 
     in direct participation in a decision with respect to any 
     claim for benefits or denial thereof in the case of any 
     particular participant or beneficiary solely by reason of--

       ``(I) any efforts that may have been made by the employer 
     or plan sponsor to advocate for authorization of coverage for 
     that or any other participant or beneficiary (or any group of 
     participants or beneficiaries), or
       ``(II) any provision that may have been made by the 
     employer or plan sponsor for benefits which are not covered 
     under the terms and conditions of the plan for that or any 
     other participant or beneficiary (or any group of 
     participants or beneficiaries).

       ``(5) Requirement of exhaustion.--
       ``(A) In general.--Except as provided in this paragraph, a 
     cause of action may not be brought under paragraph (1) in 
     connection with any denial of a claim for benefits of any 
     individual until all administrative processes under sections 
     102 and 103 of the Bipartisan Patient Protection Act of 2001 
     (if applicable) have been exhausted.
       ``(B) Late manifestation of injury.--The requirements under 
     subparagraph (A) for a cause of action in connection with any 
     denial of a claim for benefits shall be deemed satisfied, 
     notwithstanding any failure to timely commence review under 
     section 103 with respect to the denial, if the personal 
     injury is first known (or first reasonably should have been 
     known) to the individual (or the death occurs) after the 
     latest date by which the applicable requirements of 
     subparagraph (A) can be met in connection with such denial.
       ``(C) Occurrence of immediate and irreparable harm or death 
     prior to completion of process.--
       ``(i) In general.--The requirements of subparagraph (A) 
     shall not apply if the action involves an allegation that 
     immediate and irreparable harm or death was, or would be, 
     caused by the denial of a claim for benefits prior to the 
     completion of the administrative processes referred to in 
     subparagraph (A) with respect to such denial.
       ``(ii) Construction.--Nothing in clause (i) shall be 
     construed to preclude--

       ``(I) continuation of such processes to their conclusion if 
     so moved by any party, and
       ``(II) consideration in such action of the final decisions 
     issued in such processes.

       ``(iii) Definition.--In clause (i), the term `irreparable 
     harm', with respect to an individual, means an injury or 
     condition that, regardless of whether the individual receives 
     the treatment that is the subject of the denial, cannot be 
     repaired in a manner that would restore the individual to the 
     individual's pre-injured condition.
       ``(D) Receipt of benefits during appeals process.--Receipt 
     by the participant or beneficiary of the benefits involved in 
     the claim for benefits during the pendency of any 
     administrative processes referred to in subparagraph (A) or 
     of any action commenced under this subsection--
       ``(i) shall not preclude continuation of all such 
     administrative processes to their conclusion if so moved by 
     any party, and
       ``(ii) shall not preclude any liability under subsection 
     (a)(1)(C) and this subsection in connection with such claim.
     The court in any action commenced under this subsection shall 
     take into account any receipt of benefits during such 
     administrative processes or such action in determining the 
     amount of the damages awarded.
       ``(6) Statutory damages.--
       ``(A) In general.--The remedies set forth in this 
     subsection (n) shall be the exclusive remedies for causes of 
     action brought under this subsection.
       ``(B) Assessment of civil penalties.--In addition to the 
     remedies provided for in paragraph (1) (relating to the 
     failure to provide contract benefits in accordance with the 
     plan), a civil assessment, in an amount not to exceed 
     $5,000,000, payable to the claimant may be awarded in any 
     action under such paragraph if the claimant establishes by 
     clear and convincing evidence that the alleged conduct 
     carried out by the defendant demonstrated bad faith and 
     flagrant disregard for the rights of the participant or 
     beneficiary under the plan and was a proximate cause of the 
     personal injury or death that is the subject of the claim.
       ``(7) Limitation of action.--Paragraph (1) shall not apply 
     in connection with any action commenced after 3 years after 
     the later of--
       ``(A) the date on which the plaintiff first knew, or 
     reasonably should have known, of the personal injury or death 
     resulting from the failure described in paragraph (1), or
       ``(B) the date as of which the requirements of paragraph 
     (5) are first met.
       ``(8) Tolling provision.--The statute of limitations for 
     any cause of action arising under State law relating to a 
     denial of a claim for benefits that is the subject of an 
     action brought in Federal court under this subsection shall 
     be tolled until such time as the Federal court makes a final 
     disposition, including all appeals, of whether such claim 
     should properly be within the jurisdiction of the Federal 
     court. The tolling period shall be determined by the 
     applicable Federal or State law, whichever period is greater.
       ``(9) Purchase of insurance to cover liability.--Nothing in 
     section 410 shall be construed to preclude the purchase by a 
     group health plan of insurance to cover any liability or 
     losses arising under a cause of action under subsection 
     (a)(1)(C) and this subsection.
       ``(10) Exclusion of directed recordkeepers.--
       ``(A) In general.--Subject to subparagraph (C), paragraph 
     (1) shall not apply with respect to a directed recordkeeper 
     in connection with a group health plan.
       ``(B) Directed recordkeeper.--For purposes of this 
     paragraph, the term `directed recordkeeper' means, in 
     connection with a group health plan, a person engaged in 
     directed recordkeeping activities pursuant to the specific 
     instructions of the plan or the employer or other plan 
     sponsor, including the distribution of enrollment information 
     and distribution of disclosure materials under this Act or 
     title I of the Bipartisan Patient Protection Act of 2001 and 
     whose duties do not include making decisions on claims for 
     benefits.
       ``(C) Limitation.--Subparagraph (A) does not apply in 
     connection with any directed recordkeeper to the extent that 
     the directed recordkeeper fails to follow the specific 
     instruction of the plan or the employer or other plan 
     sponsor.
       ``(11) No effect on state law.--No provision of State law 
     (as defined in section 514(c)(1)) shall be treated as 
     superseded or otherwise altered, amended, modified, 
     invalidated, or impaired by reason of the provisions of 
     subsection (a)(1)(C) and this subsection.''.
       (2) Conforming amendment.--Section 502(a)(1) of such Act 
     (29 U.S.C. 1132(a)(1)) is amended--
       (A) by striking ``or'' at the end of subparagraph (A);

[[Page 7652]]

       (B) in subparagraph (B), by striking ``plan;'' and 
     inserting ``plan, or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) for the relief provided for in subsection (n) of this 
     section.''.
       (b) Rules Relating to ERISA Preemption.--Section 514 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1144) is amended--
       (1) by redesignating subsection (d) as subsection (f); and
       (2) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Preemption Not To Apply to Causes of Action under 
     State Law Involving Medically Reviewable Decision.--
       ``(1) Non-preemption of certain causes of action.--
       ``(A) In general.--Except as provided in this subsection, 
     nothing in this title (including section 502) shall be 
     construed to supersede or otherwise alter, amend, modify, 
     invalidate, or impair any cause of action under State law of 
     a participant or beneficiary under a group health plan (or 
     the estate of such a participant or beneficiary) to recover 
     damages resulting from personal injury or for wrongful death 
     against any person if such cause of action arises by reason 
     of a medically reviewable decision.
       ``(B) Medically reviewable decision.--For purposes of 
     subparagraph (A), the term `medically reviewable decision' 
     means a denial of a claim for benefits under the plan which 
     is described in section 104(d)(2) of the Bipartisan Patient 
     Protection Act of 2001 (relating to medically reviewable 
     decisions).
       ``(C) Limitation on punitive damages.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), with respect to a cause of action described in 
     subparagraph (A) brought with respect to a participant or 
     beneficiary, State law is superseded insofar as it provides 
     any punitive, exemplary, or similar damages if, as of the 
     time of the personal injury or death, all the requirements of 
     the following sections of the Bipartisan Patient Protection 
     Act of 2001 were satisfied with respect to the participant or 
     beneficiary:

       ``(I) Section 102 (relating to procedures for initial 
     claims for benefits and prior authorization determinations).
       ``(II) Section 103 of such Act (relating to internal 
     appeals of claims denials).
       ``(III) Section 104 of such Act (relating to independent 
     external appeals procedures).

       ``(ii) Exception for certain actions for wrongful death.--
     Clause (i) shall not apply with respect to an action for 
     wrongful death if the applicable State law provides (or has 
     been construed to provide) for damages in such an action 
     which are only punitive or exemplary in nature.
       ``(iii) Exception for willful or wanton disregard for the 
     rights or safety of others.--Clause (i) shall not apply with 
     respect to any cause of action described in subparagraph (A) 
     if, in such action, the plaintiff establishes by clear and 
     convincing evidence that conduct carried out by the defendant 
     with willful or wanton disregard for the rights or safety of 
     others was a proximate cause of the personal injury or 
     wrongful death that is the subject of the action.
       ``(2) Definitions.--For purposes of this subsection and 
     subsection (e)--
       ``(A) Group health plan and other related terms.--The 
     provisions of sections 732(d) and 733 apply for purposes of 
     this subsection in the same manner as they apply for purposes 
     of part 7, except that the term `group health plan' includes 
     a group health plan (as defined in section 607(1)).
       ``(B) Personal injury.--The term `personal injury' means a 
     physical injury and includes an injury arising out of the 
     treatment (or failure to treat) a mental illness or disease.
       ``(C) Claim for benefit; denial.--The terms `claim for 
     benefits' and `denial of a claim for benefits' shall have the 
     meaning provided such terms under section 102(e) of the 
     Bipartisan Patient Protection Act of 2001.
       ``(3) Exclusion of employers and other plan sponsors.--
       ``(A) Causes of action against employers and plan sponsors 
     precluded.--Subject to subparagraph (B), paragraph (1) does 
     not apply with respect to--
       ``(i) any cause of action against an employer or other plan 
     sponsor maintaining the plan (or against an employee of such 
     an employer or sponsor acting within the scope of 
     employment), or
       ``(ii) a right of recovery, indemnity, or contribution by a 
     person against an employer or other plan sponsor (or such an 
     employee) for damages assessed against the person pursuant to 
     a cause of action to which paragraph (1) applies.
       ``(B) Certain causes of action permitted.--Notwithstanding 
     subparagraph (A), paragraph (1) applies with respect to any 
     cause of action described in paragraph (1) maintained by a 
     participant or beneficiary against an employer or other plan 
     sponsor (or against an employee of such an employer or 
     sponsor acting within the scope of employment)--
       ``(i) in the case of any cause of action based on a 
     decision of the plan under section 102 of the Bipartisan 
     Patient Protection Act of 2001 upon consideration of a claim 
     for benefits or under section 103 of such Act upon review of 
     a denial of a claim for benefits, to the extent there was 
     direct participation by the employer or other plan sponsor 
     (or employee) in the decision, or
       ``(ii) in the case of any cause of action based on a 
     failure to otherwise perform a duty under the terms and 
     conditions of the plan with respect to a claim for benefits 
     of a participant or beneficiary, to the extent there was 
     direct participation by the employer or other plan sponsor 
     (or employee) in the failure.
       ``(C) Direct participation.--
       ``(i) Direct participation in decisions.--For purposes of 
     subparagraph (B), the term `direct participation' means, in 
     connection with a decision described in subparagraph (B)(i) 
     or a failure described in subparagraph (B)(ii), the actual 
     making of such decision or the actual exercise of control in 
     making such decision or in the conduct constituting the 
     failure.
       ``(ii) Rules of construction.--For purposes of clause (i), 
     the employer or plan sponsor (or employee) shall not be 
     construed to be engaged in direct participation because of 
     any form of decisionmaking or other conduct that is merely 
     collateral or precedent to the decision described in 
     subparagraph (B)(i) on a particular claim for benefits of a 
     particular participant or beneficiary or that is merely 
     collateral or precedent to the conduct constituting a failure 
     described in subparagraph (B)(ii) with respect to a 
     particular participant or beneficiary, including (but not 
     limited to)--

       ``(I) any participation by the employer or other plan 
     sponsor (or employee) in the selection of the group health 
     plan or health insurance coverage involved or the third party 
     administrator or other agent;
       ``(II) any engagement by the employer or other plan sponsor 
     (or employee) in any cost-benefit analysis undertaken in 
     connection with the selection of, or continued maintenance 
     of, the plan or coverage involved;
       ``(III) any participation by the employer or other plan 
     sponsor (or employee) in the process of creating, continuing, 
     modifying, or terminating the plan or any benefit under the 
     plan, if such process was not substantially focused solely on 
     the particular situation of the participant or beneficiary 
     referred to in paragraph (1)(A); and
       ``(IV) any participation by the employer or other plan 
     sponsor (or employee) in the design of any benefit under the 
     plan, including the amount of copayment and limits connected 
     with such benefit.

       ``(iii) Irrelevance of certain collateral efforts made by 
     employer or plan sponsor.--For purposes of this subparagraph, 
     an employer or plan sponsor shall not be treated as engaged 
     in direct participation in a decision with respect to any 
     claim for benefits or denial thereof in the case of any 
     particular participant or beneficiary solely by reason of--

       ``(I) any efforts that may have been made by the employer 
     or plan sponsor to advocate for authorization of coverage for 
     that or any other participant or beneficiary (or any group of 
     participants or beneficiaries), or
       ``(II) any provision that may have been made by the 
     employer or plan sponsor for benefits which are not covered 
     under the terms and conditions of the plan for that or any 
     other participant or beneficiary (or any group of 
     participants or beneficiaries).

       ``(4) Requirement of exhaustion.--
       ``(A) In general.--Except as provided in this paragraph, 
     paragraph (1) shall not apply with respect to a cause of 
     action described in such paragraph in connection with any 
     denial of a claim for benefits of any individual until all 
     administrative processes under sections 102, 103, and 104 of 
     the Bipartisan Patient Protection Act of 2001 (if applicable) 
     have been exhausted.
       ``(B) Late manifestation of injury.--The requirements under 
     subparagraph (A) for a cause of action in connection with any 
     denial of a claim for benefits shall be deemed satisfied, 
     notwithstanding any failure to timely commence review under 
     section 103 or 104 with respect to the denial, if the 
     personal injury is first known (or first should have been 
     known) to the individual (or the death occurs) after the 
     latest date by which the applicable requirements of 
     subparagraph (A) can be met in connection with such denial.
       ``(C) Occurrence of immediate an irreparable harm or death 
     prior to completion of process.--
       ``(i) In general.--The requirements of subparagraph (A) 
     shall not apply if the action involves an allegation that 
     immediate and irreparable harm or death was, or would be, 
     caused by the denial of a claim for benefits prior to the 
     completion of the administrative processes referred to in 
     subparagraph (A) with respect to such denial.
       ``(ii) Construction.--Nothing in clause (i) shall be 
     construed to preclude--

       ``(I) continuation of such processes to their conclusion if 
     so moved by any party, and
       ``(II) consideration in such action of the final decisions 
     issued in such processes.

       ``(iii) Definition.--In clause (i), the term `irreparable 
     harm', with respect to an individual, means an injury or 
     condition that, regardless of whether the individual receives 
     the treatment that is the subject of the denial, cannot be 
     repaired in a manner that would restore the individual to the 
     individual's pre-injured condition.

[[Page 7653]]

       ``(D) Receipt of benefits during appeals process.--Receipt 
     by the participant or beneficiary of the benefits involved in 
     the claim for benefits during the pendency of any 
     administrative processes referred to in subparagraph (A) or 
     of any action commenced under this subsection--
       ``(i) shall not preclude continuation of all such 
     administrative processes to their conclusion if so moved by 
     any party, and
       ``(ii) shall not preclude any liability under subsection 
     (a)(1)(C) and this subsection in connection with such claim.
       ``(5) Tolling provision.--The statute of limitations for 
     any cause of action arising under section 502(n) relating to 
     a denial of a claim for benefits that is the subject of an 
     action brought in State court shall be tolled until such time 
     as the State court makes a final disposition, including all 
     appeals, of whether such claim should properly be within the 
     jurisdiction of the State court. The tolling period shall be 
     determined by the applicable Federal or State law, whichever 
     period is greater.
       ``(6) Exclusion of directed recordkeepers.--
       ``(A) In general.--Subject to subparagraph (C), paragraph 
     (1) shall not apply with respect to a directed recordkeeper 
     in connection with a group health plan.
       ``(B) Directed recordkeeper.--For purposes of this 
     paragraph, the term `directed recordkeeper' means, in 
     connection with a group health plan, a person engaged in 
     directed recordkeeping activities pursuant to the specific 
     instructions of the plan or the employer or other plan 
     sponsor, including the distribution of enrollment information 
     and distribution of disclosure materials under this Act or 
     title I of the Bipartisan Patient Protection Act of 2001 and 
     whose duties do not include making decisions on claims for 
     benefits.
       ``(C) Limitation.--Subparagraph (A) does not apply in 
     connection with any directed recordkeeper to the extent that 
     the directed recordkeeper fails to follow the specific 
     instruction of the plan or the employer or other plan 
     sponsor.
       ``(7) Construction.--Nothing in this subsection shall be 
     construed as--
       ``(A) saving from preemption a cause of action under State 
     law for the failure to provide a benefit for an item or 
     service which is specifically excluded under the group health 
     plan involved, except to the extent that--
       ``(i) the application or interpretation of the exclusion 
     involves a determination described in section 104(d)(2) of 
     the Bipartisan Patient Protection Act of 2001, or
       ``(ii) the provision of the benefit for the item or service 
     is required under Federal law or under applicable State law 
     consistent with subsection (b)(2)(B);
       ``(B) preempting a State law which requires an affidavit or 
     certificate of merit in a civil action;
       ``(C) affecting a cause of action or remedy under State law 
     in connection with the provision or arrangement of excepted 
     benefits (as defined in section 733(c)), other than those 
     described in section 733(c)(2)(A); or
       ``(D) affecting a cause of action under State law other 
     than a cause of action described in paragraph (1)(A).
       ``(8) Purchase of insurance to cover liability.--Nothing in 
     section 410 shall be construed to preclude the purchase by a 
     group health plan of insurance to cover any liability or 
     losses arising under a cause of action described in paragraph 
     (1)(A).
       ``(e) Rules of Construction Relating to Health Care.--
     Nothing in this title shall be construed as--
       ``(1) affecting any State law relating to the practice of 
     medicine or the provision of medical care, or affecting any 
     action based upon such a State law,
       ``(2) superseding any State law permitted under section 
     152(b)(1)(A) of the Bipartisan Patient Protection Act of 
     2001, or
       ``(3) affecting any applicable State law with respect to 
     limitations on monetary damages.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to acts and omissions (from which a cause of 
     action arises) occurring on or after the date of the 
     enactment of this division.

     SEC. 303. LIMITATIONS ON ACTIONS.

       Section 502 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1132) (as amended by section 302(a)) is 
     amended further by adding at the end the following new 
     subsection:
       ``(o) Limitations on Actions Relating to Group Health 
     Plans.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     action may be brought under subsection (a)(1)(B), (a)(2), or 
     (a)(3) by a participant or beneficiary seeking relief based 
     on the application of any provision in section 101, subtitle 
     B, or subtitle D of title I of the Bipartisan Patient 
     Protection Act of 2001 (as incorporated under section 714).
       ``(2) Certain actions allowable.--An action may be brought 
     under subsection (a)(1)(B), (a)(2), or (a)(3) by a 
     participant or beneficiary seeking relief based on the 
     application of section 101, 113, 114, 115, 116, 117, 
     118(a)(3), 119, or 120 of the Bipartisan Patient Protection 
     Act of 2001 (as incorporated under section 714) to the 
     individual circumstances of that participant or beneficiary, 
     except that--
       ``(A) such an action may not be brought or maintained as a 
     class action; and
       ``(B) in such an action, relief may only provide for the 
     provision of (or payment of) benefits, items, or services 
     denied to the individual participant or beneficiary involved 
     (and for attorney's fees and the costs of the action, at the 
     discretion of the court) and shall not provide for any other 
     relief to the participant or beneficiary or for any relief to 
     any other person.
       ``(3) Other provisions unaffected.--Nothing in this 
     subsection shall be construed as affecting subsections 
     (a)(1)(C) and (n) or section 514(d).
       ``(4) Enforcement by secretary unaffected.--Nothing in this 
     subsection shall be construed as affecting any action brought 
     by the Secretary.''.

       TITLE IV--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

     SEC. 401. APPLICATION TO GROUP HEALTH PLANS UNDER THE 
                   INTERNAL REVENUE CODE OF 1986.

       Subchapter B of chapter 100 of the Internal Revenue Code of 
     1986 is amended--
       (1) in the table of sections, by inserting after the item 
     relating to section 9812 the following new item:

``Sec. 9813. Standard relating to patients' bill of rights.'';

     and
       (2) by inserting after section 9812 the following:

     ``SEC. 9813. STANDARD RELATING TO PATIENTS' BILL OF RIGHTS.

       ``A group health plan shall comply with the requirements of 
     title I of the Bipartisan Patient Protection Act of 2001 (as 
     in effect as of the date of the enactment of such Act), and 
     such requirements shall be deemed to be incorporated into 
     this section.''.

     SEC. 402. CONFORMING ENFORCEMENT FOR WOMEN'S HEALTH AND 
                   CANCER RIGHTS.

       Subchapter B of chapter 100 of the Internal Revenue Code of 
     1986, as amended by section 401, is further amended--
       (1) in the table of sections, by inserting after the item 
     relating to section 9813 the following new item:

``Sec. 9814. Standard relating to women's health and cancer rights.'';

     and
       (2) by inserting after section 9813 the following:

     ``SEC. 9814. STANDARD RELATING TO WOMEN'S HEALTH AND CANCER 
                   RIGHTS.

       ``The provisions of section 713 of the Employee Retirement 
     Income Security Act of 1974 (as in effect as of the date of 
     the enactment of this section) shall apply to group health 
     plans as if included in this subchapter.''.

        TITLE V--EFFECTIVE DATES; COORDINATION IN IMPLEMENTATION

     SEC. 501. EFFECTIVE DATES.

       (a) Group Health Coverage.--
       (1) In general.--Subject to paragraph (2) and subsection 
     (d), the amendments made by sections 201(a), 301, 303, and 
     401 and 402 (and title I insofar as it relates to such 
     sections) shall apply with respect to group health plans, and 
     health insurance coverage offered in connection with group 
     health plans, for plan years beginning on or after January 1, 
     2002 (in this section referred to as the ``general effective 
     date'').
       (2) Treatment of collective bargaining agreements.--In the 
     case of a group health plan maintained pursuant to one or 
     more collective bargaining agreements between employee 
     representatives and one or more employers ratified before the 
     date of the enactment of this division, the amendments made 
     by sections 201(a), 301, 303, and 401 and 402 (and title I 
     insofar as it relates to such sections) shall not apply to 
     plan years beginning before the later of--
       (A) the date on which the last collective bargaining 
     agreements relating to the plan terminates (determined 
     without regard to any extension thereof agreed to after the 
     date of the enactment of this division); or
       (B) the general effective date.
     For purposes of subparagraph (A), any plan amendment made 
     pursuant to a collective bargaining agreement relating to the 
     plan which amends the plan solely to conform to any 
     requirement added by this division shall not be treated as a 
     termination of such collective bargaining agreement.
       (b) Individual Health Insurance Coverage.--Subject to 
     subsection (d), the amendments made by section 202 shall 
     apply with respect to individual health insurance coverage 
     offered, sold, issued, renewed, in effect, or operated in the 
     individual market on or after the general effective date.
       (c) Treatment of Religious Nonmedical Providers.--
       (1) In general.--Nothing in this division (or the 
     amendments made thereby) shall be construed to--
       (A) restrict or limit the right of group health plans, and 
     of health insurance issuers offering health insurance 
     coverage, to include as providers religious nonmedical 
     providers;
       (B) require such plans or issuers to--
       (i) utilize medically based eligibility standards or 
     criteria in deciding provider status of religious nonmedical 
     providers;
       (ii) use medical professionals or criteria to decide 
     patient access to religious nonmedical providers;

[[Page 7654]]

       (iii) utilize medical professionals or criteria in making 
     decisions in internal or external appeals regarding coverage 
     for care by religious nonmedical providers; or
       (iv) compel a participant or beneficiary to undergo a 
     medical examination or test as a condition of receiving 
     health insurance coverage for treatment by a religious 
     nonmedical provider; or
       (C) require such plans or issuers to exclude religious 
     nonmedical providers because they do not provide medical or 
     other required data, if such data is inconsistent with the 
     religious nonmedical treatment or nursing care provided by 
     the provider.
       (2) Religious nonmedical provider.--For purposes of this 
     subsection, the term ``religious nonmedical provider'' means 
     a provider who provides no medical care but who provides only 
     religious nonmedical treatment or religious nonmedical 
     nursing care.
       (d) Transition for Notice Requirement.--The disclosure of 
     information required under section 121 of this division shall 
     first be provided pursuant to--
       (1) subsection (a) with respect to a group health plan that 
     is maintained as of the general effective date, not later 
     than 30 days before the beginning of the first plan year to 
     which title I applies in connection with the plan under such 
     subsection; or
       (2) subsection (b) with respect to a individual health 
     insurance coverage that is in effect as of the general 
     effective date, not later than 30 days before the first date 
     as of which title I applies to the coverage under such 
     subsection.

     SEC. 502. COORDINATION IN IMPLEMENTATION.

       The Secretary of Labor, the Secretary of Health and Human 
     Services, and the Secretary of the Treasury shall ensure, 
     through the execution of an interagency memorandum of 
     understanding among such Secretaries, that--
       (1) regulations, rulings, and interpretations issued by 
     such Secretaries relating to the same matter over which such 
     Secretaries have responsibility under the provisions of this 
     division (and the amendments made thereby) are administered 
     so as to have the same effect at all times; and
       (2) coordination of policies relating to enforcing the same 
     requirements through such Secretaries in order to have a 
     coordinated enforcement strategy that avoids duplication of 
     enforcement efforts and assigns priorities in enforcement.

     SEC. 503. SEVERABILITY.

       If any provision of this division, an amendment made by 
     this division, or the application of such provision or 
     amendment to any person or circumstance is held to be 
     unconstitutional, the remainder of this division, the 
     amendments made by this division, and the application of the 
     provisions of such to any person or circumstance shall not be 
     affected thereby.
                                  ____

  SA 479. Mr. McCAIN 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, insert the following:

       TITLE __--EDUCATIONAL CHOICES FOR DISADVANTAGED CHILDREN.

     SEC. __01. PURPOSES.

       The purposes of this title are--
       (1) to assist States to--
       (A) give children from low-income families the same choices 
     among all elementary and secondary schools and other academic 
     programs as children from wealthier families already have;
       (B) improve schools and other academic programs by giving 
     parents in low-income families increased consumer power to 
     choose the schools and programs that the parents determine 
     best fit the needs of their children; and
       (C) more fully engage parents in their children's 
     schooling; and
       (2) to demonstrate, through a 3-year national grant 
     program, the effects of a voucher program that gives parents 
     in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC. __02. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title (other than section __10) $1,800,000,000 
     for each of fiscal years 2002 through 2005.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section __10 $17,000,000 for each of fiscal years 
     2002 through 2005.

     SEC. __03. PROGRAM AUTHORITY.

       (a) In General.--The Secretary shall make grants to States, 
     from allotments made under section __04 to enable the States 
     to carry out educational choice programs that provide 
     scholarships, in accordance with this title.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary may reserve not more than $1,000,000 of the amounts 
     appropriated under section __02(a) for a fiscal year to pay 
     for the costs of administering this title.

     SEC. __04. ALLOTMENTS TO STATES.

       (a) Allotments.--The Secretary shall make the allotments to 
     States in accordance with a formula specified in regulations 
     issued in accordance with subsection (b). The formula shall 
     provide that the Secretary shall allot to each State an 
     amount that bears the same relationship to the amounts 
     appropriated under section __02(a) for a fiscal year (other 
     than funds reserved under section __03(b)) as the number of 
     covered children in the State bears to the number of covered 
     children in all such States.
       (b) Formula.--Not later than 90 days after the date of 
     enactment of this title, the Secretary shall issue 
     regulations specifying the formula referred to in subsection 
     (a).
       (c) Limit on State Administrative Expenditures.--The State 
     may reserve not more than 1 percent of the funds made 
     available through the State allotment to pay for the costs of 
     administering this title.
       (d) Definition.--In this section, the term ``covered 
     child'' means a child who is enrolled in a public school 
     (including a charter school) that is an elementary school or 
     secondary school.

     SEC. __05. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified by a State under 
     paragraph (2) shall be considered to be eligible schools 
     under this title.
       (2) Determination.--Not later than 180 days after the date 
     the Secretary issues regulations under section __04(b), each 
     State shall identify the public elementary schools and 
     secondary schools in the State that are at or below the 25th 
     percentile for academic performance of schools in the State.
       (b) Performance.--The State shall determine the academic 
     performance of a school under this section based on such 
     criteria as the State may consider to be appropriate.

     SEC. __06. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this 
     title, each State awarded a grant under this title shall 
     provide scholarships to the parents of eligible children, in 
     accordance with subsections (b) and (c). The State shall 
     ensure that the scholarships may be redeemed for elementary 
     or secondary education for the eligible children at any of a 
     broad variety of public and private schools, including 
     religious schools, in the State.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Child.--To be eligible to receive a 
     scholarship under this title, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.
       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this title, 
     the State shall provide scholarships for eligible children 
     through a lottery system administered for all eligible 
     schools in the State by the State educational agency.
       (2) Continuing eligibility.--Each State receiving a grant 
     under this title to carry out an educational choice program 
     shall provide a scholarship in each year of the program to 
     each child who received a scholarship during the previous 
     year of the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line;
       (D) the child is expelled; or
       (E) the child is convicted of possession of a weapon on 
     school grounds, convicted of a violent act against another 
     student or a member of the school's faculty, or convicted of 
     a felony, including felonious drug possession.

     SEC. __07. USES OF FUNDS.

       Any scholarship awarded under this title for a year shall 
     be used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this title;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the State determines is capable of providing such 
     services and has an appropriate refund policy; and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC. __08. STATE REQUIREMENT.

       A State that receives a grant under this title shall allow 
     lawfully operating public

[[Page 7655]]

     and private elementary schools and secondary schools, 
     including religious schools, if any, serving the area 
     involved to participate in the program.

     SEC. __09. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if a local educational agency in the State would, in the 
     absence of an educational choice program that is funded under 
     this title, provide services to a participating eligible 
     child under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.), the State 
     shall ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this title at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary shall promulgate 
     regulations to implement the provisions of subparagraph (A), 
     taking into account the purposes of this title and the 
     nature, variety, and missions of schools and providers that 
     may participate in providing services to children under this 
     title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to a State or to the parents of any child under this 
     title in determining whether to provide any other funds from 
     Federal, State, or local resources, or in determining the 
     amount of such assistance, to such State or to a school 
     attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary to exercise any 
     direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC. __10. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this title. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this title and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. __11. ENFORCEMENT.

       (a) Regulations.--The Secretary shall promulgate 
     regulations to enforce the provisions of this title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC. __12. FUNDING.

       The Committee on Finance and the Committee on 
     Appropriations of the Senate and the Committee on Ways and 
     Means and the Committee on Appropriations of the House of 
     Representatives shall identify wasteful spending (including 
     loopholes to revenue raising tax provisions) by the Federal 
     Government as a means of providing funding for this title. 
     Not later than 60 days after the date of enactment of this 
     title, the committees referred to in the preceding sentence 
     shall jointly prepare and submit to the Majority and Minority 
     Leaders of the Senate and the Speaker and Minority Leader of 
     the House of Representatives, a report concerning the 
     spending (and loopholes) identified under such sentence.

     SEC. __13. DEFINITIONS.

       In this title:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given the term in section 5120 of the Elementary and 
     Secondary Education Act of 1965.
       (2) Elementary school; local educational agency; parent; 
     secondary school; state educational agency.--The terms 
     ``elementary school'', ``local educational agency'', 
     ``parent'', ``secondary school'', and ``State educational 
     agency'' have the meanings given the terms in section 3 of 
     the Elementary and Secondary Education Act of 1965.
       (3) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) State.--The term ``State'' means each of the 50 States.
                                  ____

  SA 480. Mr. McCAIN 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, insert the following:

       TITLE __--EDUCATIONAL CHOICES FOR DISADVANTAGED CHILDREN.

     SEC. __01. PURPOSES.

       The purposes of this title are--
       (1) to assist States to--
       (A) give children from low-income families the same choices 
     among all elementary and secondary schools and other academic 
     programs as children from wealthier families already have;
       (B) improve schools and other academic programs by giving 
     parents in low-income families increased consumer power to 
     choose the schools and programs that the parents determine 
     best fit the needs of their children; and
       (C) more fully engage parents in their children's 
     schooling; and
       (2) to demonstrate, through a 3-year national grant 
     program, the effects of a voucher program that gives parents 
     in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC. __02. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title (other than section __10) $1,800,000,000 
     for each of fiscal years 2002 through 2005.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section __10 $17,000,000 for each of fiscal years 
     2002 through 2005.

     SEC. __03. PROGRAM AUTHORITY.

       (a) In General.--The Secretary shall make grants to States, 
     from allotments made under section __04 to enable the States 
     to carry out educational choice programs that provide 
     scholarships, in accordance with this title.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary may reserve not more than $1,000,000 of the amounts 
     appropriated under section __02(a) for a fiscal year to pay 
     for the costs of administering this title.

     SEC. __04. ALLOTMENTS TO STATES.

       (a) Allotments.--The Secretary shall make the allotments to 
     States in accordance with a formula specified in regulations 
     issued in accordance with subsection (b). The formula shall 
     provide that the Secretary shall allot to each State an 
     amount that bears the same relationship to the amounts 
     appropriated under section __02(a) for a fiscal year (other 
     than funds reserved under section __03(b)) as the number of 
     covered children in the State bears to the number of covered 
     children in all such States.
       (b) Formula.--Not later than 90 days after the date of 
     enactment of this title, the Secretary shall issue 
     regulations specifying the formula referred to in subsection 
     (a).
       (c) Limit on State Administrative Expenditures.--The State 
     may reserve not more than 1 percent of the funds made 
     available through the State allotment to pay for the costs of 
     administering this title.
       (d) Definition.--In this section, the term ``covered 
     child'' means a child who is enrolled in a public school 
     (including a charter school) that is an elementary school or 
     secondary school.

     SEC. __05. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified by a State under 
     paragraph (2) shall be considered to be eligible schools 
     under this title.
       (2) Determination.--Not later than 180 days after the date 
     the Secretary issues regulations under section __04(b), each 
     State shall identify the public elementary schools and 
     secondary schools in the State that are at or below the 25th 
     percentile for academic performance of schools in the State.
       (b) Performance.--The State shall determine the academic 
     performance of a school under this section based on such 
     criteria as the State may consider to be appropriate.

     SEC. __06. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this 
     title, each State awarded a grant under this title shall 
     provide scholarships to the parents of eligible children, in

[[Page 7656]]

     accordance with subsections (b) and (c). The State shall 
     ensure that the scholarships may be redeemed for elementary 
     or secondary education for the eligible children at any of a 
     broad variety of public and private schools, including 
     religious schools, in the State.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Child.--To be eligible to receive a 
     scholarship under this title, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.
       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this title, 
     the State shall provide scholarships for eligible children 
     through a lottery system administered for all eligible 
     schools in the State by the State educational agency.
       (2) Continuing eligibility.--Each State receiving a grant 
     under this title to carry out an educational choice program 
     shall provide a scholarship in each year of the program to 
     each child who received a scholarship during the previous 
     year of the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line;
       (D) the child is expelled; or
       (E) the child is convicted of possession of a weapon on 
     school grounds, convicted of a violent act against another 
     student or a member of the school's faculty, or convicted of 
     a felony, including felonious drug possession.

     SEC. __07. USES OF FUNDS.

       Any scholarship awarded under this title for a year shall 
     be used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this title;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the State determines is capable of providing such 
     services and has an appropriate refund policy; and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC. __08. STATE REQUIREMENT.

       A State that receives a grant under this title shall allow 
     lawfully operating public and private elementary schools and 
     secondary schools, including religious schools, if any, 
     serving the area involved to participate in the program.

     SEC. __09. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if a local educational agency in the State would, in the 
     absence of an educational choice program that is funded under 
     this title, provide services to a participating eligible 
     child under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.), the State 
     shall ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this title at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary shall promulgate 
     regulations to implement the provisions of subparagraph (A), 
     taking into account the purposes of this title and the 
     nature, variety, and missions of schools and providers that 
     may participate in providing services to children under this 
     title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to a State or to the parents of any child under this 
     title in determining whether to provide any other funds from 
     Federal, State, or local resources, or in determining the 
     amount of such assistance, to such State or to a school 
     attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary to exercise any 
     direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC. __10. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this title. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this title and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. __11. ENFORCEMENT.

       (a) Regulations.--The Secretary shall promulgate 
     regulations to enforce the provisions of this title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC. __12. FUNDING.

       The Committee on Finance and the Committee on 
     Appropriations of the Senate and the Committee on Ways and 
     Means and the Committee on Appropriations of the House of 
     Representatives shall identify wasteful spending by the 
     Federal Government as a means of providing funding for this 
     title. Not later than 60 days after the date of enactment of 
     this title, the committees referred to in the preceding 
     sentence shall jointly prepare and submit to the Majority and 
     Minority Leaders of the Senate and the Speaker and Minority 
     Leader of the House of Representatives, a report concerning 
     the spending identified under such sentence.

     SEC. __13. DEFINITIONS.

       In this title:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given the term in section 5120 of the Elementary and 
     Secondary Education Act of 1965.
                                  ____

  SA 481. Mr. BIDEN 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 end, add the following:

     SEC. 902. SENSE OF THE SENATE REGARDING TAX RELIEF FOR HIGHER 
                   EDUCATION EXPENSES.

       (a) Findings.--The Senate finds that--
       (1) a college education is increasingly becoming vital for 
     the success of an individual in our competitive, high-tech 
     economy;
       (2) nearly 60 percent of today's jobs require some college 
     education;
       (3) over the last 20 years, the cost of attending college 
     has outpaced increases in median family income and has risen 
     substantially faster than the rate of inflation;
       (4) the average cost this year, including tuition, fees, 
     room, and board, for attending a public 4-year college is 
     $8,470, and for a private 4-year college is $22,541;
       (5) the cost of attending some of the best private colleges 
     or universities in the Nation represents approximately 40 
     percent of the annual income of an average family, and the 
     cost of attending some of the best public colleges or 
     universities represents approximately 15 percent of the 
     annual income of an average family;
       (6) in 1997, Congress adopted the Hope Scholarship, a tax 
     credit of up to $1,500 for each of the first 2 years of 
     college, to help families send their children to college; and
       (7) in 1997, Congress adopted the Lifetime Learning Credit 
     that permits a 20 percent tax credit on up to $5,000 worth of 
     higher education expenses, and the amount of higher education 
     expenses eligible for the 20 percent tax credit will rise to 
     $10,000 in 2003.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that Congress should adopt legislation that would expand--
       (1) the favorable tax treatment of higher education 
     expenses to provide greater assistance to families with the 
     costs of sending their children to college; and
       (2) the number of families eligible for the tax relief 
     described in paragraph (1).
                                  ____

  SA 482. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill S. 1, to extend programs and activities under the 
Elementary

[[Page 7657]]

and Secondary Education Act of 1965; which was ordered to lie on the 
table; as follows:

       At the end, add the following:

     SEC. 902. SENSE OF CONGRESS ON ENHANCING AWARENESS OF THE 
                   CONTRIBUTIONS OF VETERANS TO THE NATION.

       (a) Findings.--Congress makes the following findings:
       (1) Tens of millions of Americans have served in the Armed 
     Forces of the United States during the past century.
       (2) Hundreds of thousands of Americans have given their 
     lives while serving in the Armed Forces during the past 
     century.
       (3) The contributions and sacrifices of the men and women 
     who served in the Armed Forces have been vital in maintaining 
     our freedoms and way of life.
       (4) The advent of the all-volunteer Armed Forces has 
     resulted in a sharp decline in the number of individuals and 
     families who have had any personal connection with the Armed 
     Forces.
       (5) This reduction in familiarity with the Armed Forces has 
     resulted in a marked decrease in the awareness by young 
     people of the nature and importance of the accomplishments of 
     those who have served in our Armed Forces, despite the 
     current educational efforts of the Department of Veterans 
     Affairs and the veterans service organizations.
       (6) Our system of civilian control of the Armed Forces 
     makes it essential that the Nation's future leaders 
     understand the history of military action and the 
     contributions and sacrifices of those who conduct such 
     actions.
       (7) Senate Resolution 304 of the 106th Congress, adopted on 
     September 25, 2000, designated the week that includes 
     Veterans Day as ``National Veterans Awareness Week'' to focus 
     attention on educating elementary and secondary school 
     students about the contributions of veterans to the Nation.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the Secretary of Education should work with the 
     Secretary of Veterans Affairs, the Veterans Day National 
     Committee, and the veterans service organizations to 
     encourage, prepare, and disseminate educational materials and 
     activities for elementary and secondary school students aimed 
     at increasing awareness of the contributions of veterans to 
     the prosperity and freedoms enjoyed by United States 
     citizens;
       (2) the week in 2001 that includes Veterans Day be 
     designated as ``National Veterans Awareness Week'' for the 
     purpose of presenting such materials and activities; and
       (3) the President should issue a proclamation calling on 
     the people of the United States to observe that week with 
     appropriate educational activities.
                                  ____

  SA 483. Mr. BINGAMAN 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:

       Beginning on page 380, strike line 5 and all that follows 
     through page 383, line 21, and insert the following:

     SEC. 202. TEACHER MOBILITY.

       (a) Short Title.--This section may be cited as the 
     ``Teacher Mobility Act''.
       (b) Mobility of Teachers.--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--TEACHER MOBILITY

     ``SEC. 2401. NATIONAL PANEL ON TEACHER MOBILITY.

       ``(a) Establishment.--There is established a panel to be 
     known as the National Panel on Teacher Mobility (referred to 
     in this section as the `panel').
       ``(b) Membership.--The panel shall be composed of members 
     appointed by the Secretary. The Secretary shall appoint the 
     members from among practitioners and experts with experience 
     relating to teacher mobility, such as teachers, members of 
     teacher certification or licensing bodies, faculty of 
     institutions of higher education that prepare teachers, and 
     State policymakers with such experience.
       ``(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.--
       ``(A) In general.--The panel shall study strategies for 
     increasing mobility and employment opportunities for high 
     quality teachers, especially for States with teacher 
     shortages and States with districts or schools that are 
     difficult to staff.
       ``(B) Data and analysis.--As part of the study, the panel 
     shall evaluate the desirability and feasibility of State 
     initiatives that support teacher mobility by collecting data 
     and conducting effective analysis on--
       ``(i) teacher supply and demand;
       ``(ii) the development of recruitment and hiring strategies 
     that support teachers; and
       ``(iii) increasing reciprocity of licenses across 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 is 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.''.
                                  ____

  SA 484. Mr. BINGAMAN 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 16, line 4, insert ``servers and storage devices,'' 
     before ``video''.
       On page 16, line 5, insert ``and other digital'' after 
     ``web-based''.
       On page 16, line 7, strike ``environments for problem-
     solving'' and insert ``learning environments,''.
       On page 37, line 14, insert ``and technology literacy'' 
     after ``skills''.
       On page 52, line 21, insert ``, including how it will use 
     technology or assist local educational agencies in the use of 
     technology to meet these requirements'' after ``school''.
       On page 56, line 3, strike ``and''.
       On page 56, line 6, strike the period and insert ``; and''.
       On page 56, between lines 6 and 7, insert the following:
       ``(13) the State will integrate, as appropriate, the use of 
     technology to meet the purposes of this part, including 
     assistance to local educational agencies in the use of 
     technology to meet these purposes, such as for professional 
     development, curricula and instruction delivery, data 
     collection and assessment, and parental involvement.
       On page 71, line 24, strike ``and''.
       On page 72, line 3, strike the period and the end quote and 
     insert ``and'' after the semi colon.
       On page 72, between lines 3 and 4, insert the following:
       ``(11) a description of how the local educational agency 
     will integrate, as appropriate, the use of technology to meet 
     the purposes of this part, such as for professional 
     development, curricula and instruction, data collection and 
     assessment, and parental involvement.'';.
       On page 88, line 22, strike ``and''.
       On page 88, line 24, strike the period and insert ``; 
     and''.
       On page 88, after line 24, insert the following:
       ``(ix) describe how the school will use and integrate 
     technology, as appropriate, to address the elements of this 
     paragraph.
       On page 182, line 16, insert ``, including education 
     technology such as software and other digital curricula,'' 
     after ``materials''.
       On page 316, between lines 20 and 21, insert the following:
       ``(12) a description of how the State educational agency 
     will--
       ``(A) ensure that all teachers are technology literate and 
     proficient in their ability

[[Page 7658]]

     to effectively integrate technology into their instruction 
     and curricula; and
       ``(B) use and encourage the use of technology and distance 
     education to provide professional development and improve the 
     quality of the State's teaching force.
       On page 317, line 16, insert ``, including through a grant 
     or contract with a for-profit or nonprofit entity'' after 
     ``activities''.
       On page 317, line 26, insert ``, including technology 
     literacy'' after ``skills''.
       On page 319, between lines 19 and 20, insert the following:
       ``(12) Encouraging and supporting the training of teachers 
     and administrators to effectively integrate technology into 
     curricula and instruction, including the ability to collect, 
     manage, and analyze data to improve teaching, decision making 
     and school improvement efforts and accountability.
       ``(13) Developing or supporting programs that encourage or 
     expand the use of technology to provide professional 
     development, including through Internet-based distance 
     education and peer networks.
       On page 324, line 8, inserting ``, including through 
     technology and distance education and by ensuring all 
     teachers and administrators are technology literate and able 
     to effectively integrate technology into curricula and 
     instruction'' before the period.
       On page 325, line 18, insert ``, including through a grant 
     or contract with a for-profit or nonprofit entity'' after 
     ``activities''.
       On page 325, line 25, insert ``, including technology 
     literacy,'' after ``skills''.
       On page 326, line 2, strike ``and''.
       On page 326, line 7, strike the period and insert ``; 
     and''.
       On page 326, between lines 7 and 8, insert the following:
       ``(D) effective integration of technology into curricula 
     and instruction to enhance the learning environment and 
     improve student academic achievement, performance, technology 
     literacy, and related 21st century skills; and
       ``(E) ability to collect, manage, and analyze data, 
     including through use of technology, to inform teaching, 
     decision making, and school improvement efforts and to 
     increase accountability.
       On page 326, line 11, insert ``, other for profit or 
     nonprofit entities, and through distance education'' after 
     ``education''.
       On page 344, line 5, strike ``and''.
       On page 344, line 10, strike the period and insert ``; 
     and''.
       On page 344, between lines 10 and 11, insert the following:
       ``(5) improve and expand training of math and science 
     teachers, including in the effective integration of 
     technology into curricula and instruction.
       On page 348, line 8, strike ``and''.
       On page 348, line 15, strike the period and insert ``; 
     and''.
       On page 348, between lines 15 and 16, insert the following:
       ``(5) a description of how the activities to be carried out 
     by the eligible partnership will both enable teachers to more 
     effectively integrate technology into the curricula and 
     instruction and, as appropriate, use technology to provide 
     distance training and facilitate peer networks.
       On page 349, line 10, insert ``and technology-based 
     teaching methods'' after ``methods''.
       On page 349, line 19, strike ``experiment oriented'' and 
     insert ``innovative''.
       On page 356, line 21, strike the period and insert ``, and 
     to improve the ability of institutions of higher education to 
     carry out such programs''.
       On page 358, line 17, insert ``both'' after ``would''.
       On page 358, line 24, strike the semi colon and insert 
     ``and to improve the ability of at least 1 participating 
     institution of higher education as described in section 
     2232(a)(1) to ensure such preparation;''.
       Beginning on page 360, strike line 23 through line 7, page 
     361, and insert the following:
       ``(A) learn the full range of resources that can be 
     accessed through the use of technology;
       ``(B) integrate a variety of technologies into the 
     curricula and instruction in order to expand students' 
     knowledge;
       ``(C) evaluate educational technologies and their potential 
     for use in instruction;
       ``(D) help students develop their technical skills and 
     ability to be self-directed learners in digital learning 
     environments;
       ``(E) integrate technology to enhance the degree to which 
     curricula and instruction are engaging, individualized and 
     self-paced, include real-time and real-world content and 
     exploration, promote student collaboration and problem-
     solving, and enable students to become self-directed and 
     life-long learners; and
       ``(F) use technology to collect, manage and analyze data to 
     inform their teaching and decision-making;''.
       On page 361, strike lines 22 through 24 and insert the 
     following:
       ``(6) subject to section 2232(c)(2), acquiring technology 
     equipment, networking capabilities, infrastructure and 
     software and digital curriculum to carry out the project.
       On page 365, line 10, insert ``and teacher training in 
     technology under section 3122'' before ``prior''.
       On page 367, line 24, strike the period and insert ``and 
     have a substantial demonstrated need for assistance in 
     acquiring and integrating technology.''.
       On page 369, strike line 3 through line 22, and insert the 
     following:
       ``(1) outlines the long-term strategies for improving 
     student performance, academic achievement, and technology 
     literacy, and related 21st century skills through the 
     effective use of technology in classrooms throughout the 
     State, including through improving the capacity of teachers 
     to effectively integrate technology into the curricula and 
     instruction;
       ``(2) outlines long-term strategies for financing 
     technology education in the State to ensure all students, 
     teachers, and classrooms will have access to technology, 
     describes how the State will use funds provided under this 
     part to help ensure such access, 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;
       ``(3) provides assurance that financial assistance provided 
     under this part shall supplement, not supplant, State and 
     local funds;
       ``(4) describes how the State will encourage and support 
     the integration of innovative technology to enhance the 
     degree to which curricula and instruction are engaging, 
     individualized and self-paced, include real-time and real-
     world content and exploration, promote student collaboration 
     and problem solving, enables students to become self directed 
     life-long learners, and therefore improve student academic 
     achievement, technology literacy, and related 21st century 
     skills; and
       ``(5) 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.
       On page 370, strike line 5 through line 3, page 371, and 
     insert the following:
       ``(1) acquiring, adapting, expanding, implementing and 
     maintaining existing and new applications of technology, to 
     support the school reform effort, improve student academic 
     achievement, performance, and technology literacy and related 
     21st century skills;
       ``(2) providing ongoing professional development in the 
     integration of quality educational technologies into school 
     curriculum to enable teachers to enhance the degree to which 
     curricula and instruction are engaging, individualized and 
     self-paced, including real-time and real-world content and 
     exploration, promote student collaboration and problem 
     solving, enable students to become self-directed life-long 
     learners, and therefore improve student academic achievement, 
     technology literacy and 21 century skills, including 
     connectivity linkages, resources, and services, such as 
     hardware, software, and digital curriculum, for use by 
     teachers, students, and school library media personnel in the 
     classroom or in school library media centers;
       ``(3) acquiring connectivity with wide area networks for 
     purposes of accessing information, educational programming 
     sources and professional development, particularly with 
     institutions of higher education and public libraries;
       ``(4) providing educational services for adults and 
     families;
       ``(5) repairing and maintaining school technology 
     equipment;
       ``(6) acquiring, expanding, and implementing technology to 
     collect, manage, and analyze data, including student 
     achievement data, to inform teaching, decision-making, and 
     school improvement efforts, including the training of 
     teachers and administrators; and
       ``(7) using technology to promote parent and family 
     involvement and support communications between parents, 
     teachers, and students.
       ``(b) Special Rule.--A local educational agency receiving a 
     grant under this part shall use at least 30 percent of 
     allocated funds to provide, either directly or through a 
     grant or contract with a for-profit or non-profit entity, 
     sustained and intensive high-quality professional development 
     to enable teachers and administrators to more effectively 
     integrate technology into curricula and instruction to 
     enhance learning environments, including training in the use 
     of technology to--
       ``(1) access data and resources to develop curricula and 
     instructional materials and integrate such data and resources 
     into the curricula and instruction;
       ``(2) enable teachers to use the Internet to communicate 
     with parents, administrators, and other teachers and retrieve 
     Internet-based learning resources;
       ``(3) lead to improvements in classroom instruction in the 
     core academic subject areas to better prepare students to 
     meet challenging State content and student performance 
     standards;
       ``(4) enhance the degree to which curricula and instruction 
     are engaging, individualized

[[Page 7659]]

     and self-paced, include real-time and real-world content and 
     exploration, promote student collaboration and problem-
     solving, enable students to become self-directed life-long 
     learners, and therefore improve student academic achievement, 
     technology literacy and related 21st century skills; and
       ``(5) collect, manage, and analyze data, including student 
     achievement data, to inform teaching, decision making and 
     school improvement efforts and to increase accountability.
       Beginning on page 371, strike line 14 through line 13, page 
     373, and insert the following:
       ``(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, 
     technology literacy and related 21st century skills;
       ``(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, including by enhancing the 
     degree to which curricula and instruction are engaging, 
     individualized and self-paced, include real-time and real-
     world content and exploration, promote student collaboration 
     and problem solving, and enable students to be self-directed, 
     life-long learners;
       ``(3) a description of the type of technologies to be 
     acquired, including services, software, and digital 
     curricula, including specific provisions for interoperability 
     among components of such technologies;
       ``(4) 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;
       ``(5) the projected cost of technologies to be acquired and 
     related expenses needed to implement the plan;
       ``(6) a description of how the local educational agency 
     will coordinate the technology provided pursuant to this part 
     with other grant funds available for technology from other 
     Federal, State, and local sources;
       ``(7) a description of 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, performance, technology 
     literacy, and related 21st century skills as related to 
     challenging State content standards and State student 
     performance standards in all subjects; and
       ``(8) a description of the evaluation plan that the local 
     educational agency will carry out pursuant to section 
     2308(a).
       Beginning on page 374, strike line 19 through line 2, page 
     375, and insert the following:
       ``(1) increased professional development and increased 
     effective use of technology in educating students;
       ``(2) increased student academic achievement, performance, 
     and technology literacy and related 21st century skills;
       ``(3) increased access to technology in the classroom, 
     especially in low-income schools;
       ``(4) increased degree to which curricula and instruction 
     are engaging, individualized and self-paced, promote student 
     collaboration and problem solving, and enable students to 
     become self-directed, life-long learners; and
       ``(5) other indicators reflecting increased student 
     academic achievement or student performance.
       On page 375, line 13, strike ``in all of the areas''.
       On page 379, strike line 4 through line 19, and insert the 
     following:
       ``(5) 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 conditions and practices 
     that support effective use of technology in improving 
     teaching and student educational opportunities, academic 
     achievement, and technology literacy.
       ``(6) Goals.--The plan shall describe the Secretary's long-
     range measurable goals and objectives relating to the 
     purposes of this part.''
                                  ____

  SA 485. Mr. BINGAMAN 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 349, line 18, strike the quote and period.
       On page 349, between lines 18 and 19, insert the following:

     ``SEC. 2311. NATIONAL TECHNOLOGY INITIATIVES.

       ``(a) In General.--The Secretary shall establish a program 
     to identify and disseminate the practices under which 
     technology is effectively integrated into education to 
     enhance teaching and learning and to improve student 
     achievement, performance and technology literacy.
       ``(b) Use of Funds.--In carrying out the program 
     established under subsection (a), the Secretary shall--
       ``(1) organize activities to identify and disseminate 
     findings regarding the conditions and practices under which 
     educational technology is effective in increasing student 
     academic achievement;
       ``(2) organize activities to identify and disseminate 
     findings regarding the conditions and practices that increase 
     the ability of teachers to effectively integrate technology 
     into the curricula and instruction, enhance the learning 
     environment and opportunities, and increase student 
     performance, technology literacy, and related 21st century 
     skills;
       ``(3) conduct, through the Office of Educational Research 
     and Improvement, in consultation with the Office of 
     Educational Technology, an independent, longitudinal study 
     using control groups on the effectiveness of the uses of 
     educational technology;
       ``(4) award grants or contracts, pursuant to a peer review 
     process, to fund the independent evaluations of programs that 
     are comprehensive, innovative, or research-based and 
     integrate technology into teaching and learning;
       ``(5) develop tools and provide resources, including 
     technical assistance, to support the activities described in 
     this section; and
       ``(6) make widely available, including through 
     dissemination on the Internet and to all State educational 
     agencies and other grantees under this section, the findings 
     identified through the activities of this section regarding 
     the conditions and practices under which education technology 
     is effective.
       ``(c) Permissive Use.--
       ``(1) In general.--In carrying out the program established 
     under subsection (a), the Secretary may award grants, 
     pursuant to a peer review process, to local educational 
     agencies or partnerships for research-based or innovative 
     programs that use technology in education.
       ``(2) Partnership.--In this subsection, the term 
     `partnership' means a local educational agency and a State, 
     institution of higher education, or public or private 
     nonprofit entity or agency.
       ``(3) Priority.--In awarding grants under paragraph (1), 
     the Secretary shall give priority to projects that--
       ``(A) develop innovative models using electronic networks 
     or other forms of distance learning to provide challenging 
     courses which are otherwise not readily available to students 
     in a particular school district, particularly in rural areas;
       ``(B) increase access to technology to those residing in 
     districts served by high-need local educational agencies;
       ``(C) implement comprehensive models that use innovative, 
     proven, or research-based practices, integrate technology 
     into the curricula and instruction, and enhance the learning 
     environment to improve student academic achievement and 
     technology literacy; and
       ``(D) are carried out by a partnership.
       ``(4) Application.--A local educational agency or 
     partnership desiring a grant under this subsection shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require, including--
       ``(A) a description of the project and how it would achieve 
     the purposes of this subsection;
       ``(B) a detailed plan for the independent evaluation of the 
     project to determine the impact on the academic achievement 
     of students served under such project, including as 
     appropriate those conditions and practices that increase the 
     ability of teachers to effectively integrate technology into 
     the curricula and instruction, that enhance the learning 
     environment and opportunities, and that increase student 
     performance, technology literacy, and related 21st century 
     skills;
       ``(C) a detailed plan to make widely available, including 
     through dissemination on the Internet and to other local 
     educational agencies in the State, the findings identified 
     through the project; and
       ``(D) as appropriate, a detailed plan for making widely 
     available, including to other local educational agencies in 
     the State, the opportunity to directly participate in or 
     benefit from the activities carried out by the project.
       ``(d) Technical Assistance.--The Secretary may provide 
     technical assistance to States, local educational agencies, 
     and other grantees under this section (directly or through 
     the competitive award of grants or contracts) in order to 
     assist such States, local educational agencies, and other 
     grantees to achieve the purposes of this section.
       ``(e) Non-Federal Share.--
       ``(1) In general.--The Secretary may require any recipient 
     of a grant or contract under this section to share in the 
     cost of the activities assisted under such grant or contract, 
     which may be in the form of cash or in-kind contributions 
     fairly valued.
       ``(2) Increase.--The Secretary may increase the non-Federal 
     share required of a recipient of a grant or contract under 
     this section after the first year such recipient receives 
     funds under such grant or contract.

[[Page 7660]]

       ``(3) Maximum.--The non-Federal share required under this 
     subsection may not exceed 50 percent of the cost of the 
     activities assisted under a grant or contract under this 
     section.
       ``(4) Notice.--The Secretary shall publish in the Federal 
     Register the non-Federal share required under this section.
       ``(f) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $100,000,000 for fiscal year 2002 
     and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       ``(2) Limitation.--Not more than 5 percent of the funds 
     made available to a recipient under this section for any 
     fiscal year may be used by such recipient for administrative 
     costs.''.
                                  ____

  SA 486. Mr. BINGAMAN 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 586, between lines 18 and 19, insert the following:

     SEC. 405. SMALLER LEARNING COMMUNITIES.

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

                 ``PART E--SMALLER LEARNING COMMUNITIES

     ``SEC. 4501. SMALLER LEARNING COMMUNITIES.

       ``(a) In General.--Each local educational agency desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. Each such 
     application shall describe--
       ``(1) strategies and methods the applicant will use to 
     create the smaller learning community or communities;
       ``(2) curriculum and instructional practices, including any 
     particular themes or emphases, to be used in the learning 
     environment;
       ``(3) the extent of involvement of teachers and other 
     school personnel in investigating, designing, implementing 
     and sustaining the smaller learning community or communities;
       ``(4) the process to be used for involving students, 
     parents and other stakeholders in the development and 
     implementation of the smaller learning community or 
     communities;
       ``(5) any cooperation or collaboration among community 
     agencies, organizations, businesses, and others to develop or 
     implement a plan to create the smaller learning community or 
     communities;
       ``(6) the training and professional development activities 
     that will be offered to teachers and others involved in the 
     activities assisted under this part;
       ``(7) the goals and objectives of the activities assisted 
     under this part, including a description of how such 
     activities will better enable all students to reach 
     challenging State content standards and State student 
     performance standards;
       ``(8) the methods by which the applicant will assess 
     progress in meeting such goals and objectives;
       ``(9) if the smaller learning community or communities 
     exist as a school-within-a-school, the relationship, 
     including governance and administration, of the smaller 
     learning community to the rest of the school;
       ``(10) a description of the administrative and managerial 
     relationship between the local educational agency and the 
     smaller learning community or communities, including how such 
     agency will demonstrate a commitment to the continuity of the 
     smaller learning community or communities, including the 
     continuity of student and teacher assignment to a particular 
     learning community;
       ``(11) how the applicant will coordinate or use funds 
     provided under this part with other funds provided under this 
     Act or other Federal laws;
       ``(12) grade levels or ages of students who will 
     participate in the smaller learning community or communities; 
     and
       ``(13) the method of placing students in the smaller 
     learning community or communities, such that students are not 
     placed according to ability, performance or any other 
     measure, so that students are placed at random or by their 
     own choice, not pursuant to testing or other judgments.
       ``(b) Authorized Activities.--Funds under this section may 
     be used--
       ``(1) to study the feasibility of creating the smaller 
     learning community or communities as well as effective and 
     innovative organizational and instructional strategies that 
     will be used in the smaller learning community or 
     communities;
       ``(2) to research, develop and implement strategies for 
     creating the smaller learning community or communities, as 
     well as effective and innovative changes in curriculum and 
     instruction, geared to high State content standards and State 
     student performance standards;
       ``(3) to provide professional development for school staff 
     in innovative teaching methods that challenge and engage 
     students to be used in the smaller learning community or 
     communities; and
       ``(4) to develop and implement strategies to include 
     parents, business representatives, local institutions of 
     higher education, community-based organizations, and other 
     community members in the smaller learning communities, as 
     facilitators of activities that enable teachers to 
     participate in professional development activities, as well 
     as to provide links between students and their community.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, such sums as 
     may be necessary for fiscal year 2002 and for each of the 
     next 6 succeeding fiscal years.''.
                                  ____

  SA 487. Mr. SMITH of New Hampshire 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. __. SENSE OF SENATE ON THE PERCENTAGE OF FEDERAL 
                   EDUCATION FUNDING THAT IS SPENT IN THE 
                   CLASSROOM.

       (a) Findings.--The Senate makes the following findings:
       (1) Effective and meaningful teaching begins by helping 
     children master basic academics, holding children to high 
     academic standards, using sound research based methods of 
     instruction in the classroom, engaging and involving parents, 
     establishing and maintaining safe and orderly classrooms, and 
     getting funds to the classroom.
       (2) America's children deserve an educational system that 
     provides them with numerous opportunities to excel.
       (3) States and localities spend a significant amount of 
     education tax dollars on bureaucratic red tape by applying 
     for and administering Federal education dollars.
       (4) Several States have reported that although they receive 
     less than 10 percent of their education funding from the 
     Federal Government, more than 50 percent of their education 
     paperwork and administration efforts are associated with 
     those Federal funds.
       (5) According to the Department of Education, in 1998, 84 
     percent of the funds allocated by the Department for 
     elementary and secondary education were allocated to local 
     educational agencies and used for instruction and 
     instructional support.
       (6) The remainder of the funds allocated by the Department 
     of Education for elementary and secondary education in 1998 
     was allocated to States, universities, national programs, and 
     other service providers.
       (7) The total spent by the Department of Education for 
     elementary and secondary education does not take into account 
     what States spend to receive Federal funds and comply with 
     Federal requirements for elementary and secondary education, 
     nor does it reflect the percentage of Federal funds allocated 
     to school districts that is spent on students in the 
     classroom.
       (8) American students are not performing up to their full 
     academic potential, despite significant Federal education 
     initiatives and funding from a variety of Federal agencies.
       (9) According to the Digest of Education Statistics, only 
     54 percent of $278,965,657,000 spent on elementary and 
     secondary education during the 1995-96 school year was spent 
     on ``instruction''.
       (10) According to the National Center for Education 
     Statistics, only 52 percent of staff employed in public 
     elementary and secondary school systems in 1996 were 
     teachers, and, according to the General Accounting Office, 
     Federal education dollars funded 13,397 full-time equivalent 
     positions in State educational agencies in fiscal year 1993.
       (11) In fiscal year 1998, the paperwork and data reporting 
     requirements of the Department of Education amounted to 
     40,000,000 so-called ``burden hours'', which is equivalent to 
     nearly 20,000 people working 40 hours a week for one full 
     year, time and energy which would be better spent teaching 
     children in the classroom.
       (12) Too large a percentage of Federal education funds is 
     spent on bureaucracy, special interests, and ineffective 
     programs, and too little is effectively and efficiently spent 
     on our America's youth.
       (13) Requiring an allocation of 95 percent of all Federal 
     elementary and secondary education funds to classrooms would 
     provide substantial additional funding per classroom across 
     the United States.
       (14) More education funding should be put in the hands of 
     someone in a classroom who knows the children personally and 
     frequently interacts with the children.
       (15) Burdensome regulations, requirements, and mandates 
     should be refined, consolidated or removed so that school 
     districts can devote more resources to educating children in 
     classrooms.
       (b) Sense of the Senate.--It is the sense of the Senate to 
     urge the Department of Education, the States, and local 
     educational agencies to work together to ensure that not less 
     than 95 percent of all funds appropriated for carrying out 
     elementary and secondary

[[Page 7661]]

     education programs administered by the Department be spent to 
     improve the academic achievement of our children in their 
     classrooms.
                                  ____

  SA 488. Mr. SMITH of New Hampshire 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. __. STUDY AND RECOMMENDATION WITH RESPECT TO SEXUAL 
                   ABUSE IN SCHOOLS.

       (a) Findings.--Congress finds that--
       (1) sexual abuse in schools between a student and a member 
     of the school staff or a student and another student is a 
     cause for concern in the United States;
       (2) relatively few studies have been conducted on sexual 
     abuse in schools and the extent of this problem is unknown;
       (3) according to the Child Abuse and Neglect Reporting Act, 
     a school administrator is required to report any allegation 
     of sexual abuse to the appropriate authorities;
       (4) an individual who is falsely accused of sexual 
     misconduct with a student deserves appropriate legal and 
     professional protections;
       (5) it is estimated that many cases of sexual abuse in 
     schools are not reported; and
       (6) many of the accused staff quietly resign at their 
     present school district and are then rehired at a new 
     district which has no knowledge of their alleged abuse.
       (b) Study and Recommendations.--The Secretary of Education 
     in conjunction with the Attorney General shall provide for 
     the conduct of a comprehensive study of the prevalence of 
     sexual abuse in schools. Not later than May 1, 2002, the 
     Secretary and the Attorney General shall prepare and submit 
     to the appropriate committees of Congress and to State and 
     local governments, a report concerning the study conducted 
     under this subsection, including recommendations and 
     legislative remedies for the problem of sexual abuse in 
     schools.
                                  ____

  SA 489. Mr. WELLSTONE 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. __. SENSE OF THE SENATE REGARDING AFFORDABLE HOUSING.

       (a) Findings.--The Senate finds that--
       (1) according to the National Low-Income Housing Coalition, 
     there is no county, metro area or state in the country where 
     a full-time minimum wage worker can afford the fair market 
     rent for a 1-, 2- or 3-bedroom home;
       (2) the national median housing wage is $12.47 an hour, 
     more than twice the Federal minimum wage of $5.15 per hour;
       (3) 4,900,000 unassisted renter households in 1999 had 
     worst-case housing needs, paying more than half of their 
     income for housing, or living in severely substandard 
     housing;
       (4) an additional 5,000,000 assisted renter households may 
     also live in substandard housing;
       (5) as many as 1,000,000 people are homeless in the United 
     States;
       (6) of the 34,000,000 renter households in the United 
     States, 7,700,000 have extremely low incomes (defined as 30 
     percent of the area median income or less);
       (7) besides low-wage workers, the population of extremely 
     low-income rental households includes elderly and disabled 
     people whose only income is from Supplemental Security Income 
     or other fixed income sources;
       (8) in the aggregate, there are only 4,900,000 units of 
     rental housing that are affordable to these households, thus 
     an absolute shortage of 2,800,000 units;
       (9) only 2,300,000 of the available 4,900,000 affordable 
     rental units are actually occupied by extremely low-income 
     households;
       (10) overall, there is a shortage of 5,300,000 units, 
     affordable for the poorest renter households; and
       (11) the lack of stable housing affects the ability of 
     children to succeed in school, and children who are homeless 
     struggle in school, as evidenced by the facts that--
       (A) 45 percent of children who are homeless do not attend 
     school on a regular basis while they are homeless; and
       (B) compared with other children, children who are homeless 
     are 4 times as likely to have development delays, twice as 
     likely to have learning disabilities, and twice as likely to 
     repeat a grade, most often due to frequent absences and moves 
     to new schools.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) many communities across the United States, urban and 
     rural, large and small, are experiencing a severe affordable 
     housing crisis;
       (2) safe, stable, affordable housing is critical to the 
     well-being of families and children;
       (3) safe, stable, affordable housing is critical to the 
     ability of children to succeed in school; and
       (4) this Congress should consider legislation that would 
     begin to address the current affordable housing crisis, 
     including legislation to promote the production of new 
     affordable housing units and legislation to preserve existing 
     affordable housing units.
                                  ____

  SA 490. Mr. WELLSTONE 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. __. REDUCTION OF CHILD POVERTY.

       (a) Report To Congress Regarding Extent and Severity of 
     Child Poverty.--
       (1) In general.--Not later than January 1, 2002, and prior 
     to any reauthorization of the temporary assistance to needy 
     families program under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) for any fiscal year 
     after fiscal year 2002, the Secretary of Health and Human 
     Services (in this subsection referred to as the 
     ``Secretary''), subject to paragraph (3), shall report to 
     Congress on the extent and severity of child poverty in the 
     United States. Such report shall, at a minimum--
       (A) determine for the period since the enactment of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (Public Law 104-193; 110 Stat. 2105)--
       (i) whether the rate of child poverty in the United States 
     has increased;
       (ii) whether the children who live in poverty in the United 
     States have gotten poorer; and
       (iii) how changes in the availability of cash and non-cash 
     benefits to poor families have affected child poverty in the 
     United States;
       (B) identify alternative methods for defining child poverty 
     that are based on consideration of factors other than family 
     income and resources, including consideration of a family's 
     work-related expenses; and
       (C) contain multiple measures of child poverty in the 
     United States that may include the child poverty gap and the 
     extreme poverty rate.
       (2) Legislative proposal.--If the Secretary determines that 
     during the period since the enactment of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (Public Law 104-193; 110 Stat. 2105) the extent or 
     severity of child poverty in the United States has increased 
     to any extent, the Secretary, subject to paragraph (3), shall 
     include with the report to Congress required under paragraph 
     (1) a legislative proposal addressing the factors that led to 
     such increase.
       (3) Consultation required.--The Secretary shall consult 
     with appropriate experts in the field of child poverty in 
     preparing the report and, if applicable, the legislative 
     proposal, required under this subsection.
       (b) Addition of Poverty Reduction Bonus to TANF.--Section 
     403(a) of the Social Security Act (42 U.S.C. 603(a)), is 
     amended by adding at the end the following:
       ``(6) Bonus to reward states that reduce poverty.--
       ``(A) In general.--The Secretary shall make a grant 
     pursuant to this paragraph to each State for each fiscal year 
     beginning with fiscal year 2003 for which the State is a 
     qualified poverty reduction State, as determined under 
     subparagraph (C).
       ``(B) Amount of grant.--With respect to a fiscal year, each 
     State that the Secretary determines is a qualified poverty 
     reduction State for that fiscal year shall receive a grant in 
     an amount equal to the ratio of the amount appropriated under 
     subparagraph (D) for that fiscal year to the total number of 
     all such States for that fiscal year.
       ``(C) Determination of qualified poverty reduction 
     states.--
       ``(i) Demonstration of improved outcomes for current and 
     former recipients of assistance.--For purposes of 
     subparagraph (A), a State shall be considered a qualified 
     poverty reduction State for a fiscal year if, with respect to 
     the fiscal year, the State is one of the 10 States with the 
     greatest year-to-year decline (or least year-to-year 
     increase) in the child poverty rate adjusted by the severity 
     of poverty. For purposes of this subclause, the child poverty 
     rate adjusted by the severity of poverty shall be determined 
     with respect to a State for a fiscal year by multiplying--

       ``(I) the State's percentage of children with family income 
     below the poverty line for that fiscal year; by
       ``(II) the average difference per poor child in the State 
     between the child's family income and the poverty line.

       ``(ii) Determination of income.--For purposes of clause 
     (i), the Secretary shall, to the extent feasible, consider 
     the following in calculating a family's income:

       ``(I) Cash income, such as earnings, child support received 
     by the family, and government cash payments.
       ``(II) Benefits received under the Food Stamp Act of 1977.
       ``(III) Federal, State, or local income taxes paid by the 
     family for the preceding taxable year and the refundable 
     portion of any tax credits received for that year.

       ``(D) Authorization of appropriations.--There are 
     authorized to be appropriated for

[[Page 7662]]

     fiscal year 2002 and each fiscal year thereafter, 
     $200,000,000 to make the grants required under this 
     paragraph.''.
                                  ____

  SA 491. Mr. BIDEN 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.  . TECHNICAL AMENDMENT TO THE KIDS 2000 ACT.

       Amounts appropriated pursuant to section 112(f)(1) of the 
     Kids 2000 Act (42 U.S.C. 13751 note) and the initiative to be 
     carried out under such Act shall be administered by the 
     Secretary of Education.
                                  ____

  SA 492. Mr. REID 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:

     SEC.  . STUDY OF GAMBLING ON COLLEGE AND UNIVERSITY CAMPUSES.

       At the appropriate place insert the following:
       (a) Establishment of Panel.--Not later than 90 days after 
     the date of enactment of this Act, the Attorney General shall 
     establish a panel, which shall be composed of Federal, State, 
     and local government law enforcement officials, to conduct a 
     study of illegal college sports gambling.
       (b) Contents of Study.--The study conducted by the panel 
     established under subsection (a) shall include an analysis 
     of--
       (1) the scope and prevalence of illegal college sports 
     gambling, including unlawful sports gambling (as defined in 
     section 3702 of title 28, United States Code);
       (2) the role of organized crime in illegal gambling on 
     college sports;
       (3) the role of State regulators and the legal sports books 
     in Nevada in assisting law enforcement to uncover illegal 
     sports gambling and related illegal activities;
       (4) the enforcement and implementation of the Professional 
     and Amateur Sports Protection Act of 1992, including whether 
     it has been adequately enforced;
       (5) the effectiveness of steps taken by institutions of 
     higher education to date, whether individually or through 
     national organizations, to reduce the problem of illegal 
     gambling on college sports;
       (6) the factors that influence the attitudes or levels of 
     awareness of administrators, professors, and students, 
     including student athletes, about illegal gambling on college 
     sports;
       (7) the effectiveness of new countermeasures to reduce 
     illegal gambling on college sports, including related 
     requirements for institutions of higher education and persons 
     receiving Federal education funds;
       (8) potential actions that could be taken by the National 
     Collegiate Athletic Association to address illegal gambling 
     on college and university campuses; and
       (9) other matters relevant to the issue of illegal gambling 
     on college sports as determined by the Attorney General.
       (c) Report to Congress.--Not later than 12 months after the 
     establishment of the panel under this section, the Attorney 
     General shall submit to Congress a report on the study 
     conducted under this section, which shall include--
       (1) recommendations for actions colleges, universities, and 
     the National Collegiate Athletic Association should implement 
     to address the issue of illegal gambling on college sports;
       (2) recommendations for intensive educational campaigns 
     which the National Collegiate Athletic Association could 
     implement to assist in the effort to prevent illegal gambling 
     on college sports;
       (3) recommendations for any Federal and State legislative 
     actions to address the issue of illegal gambling on college 
     sports; and
       (4) recommendations for any administrative or private 
     sector actions to address the issue of illegal gambling on 
     college sports.
                                  ____

  SA 493. Mr. REID 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.   . INCREASED PENALTIES FOR ILLEGAL GAMBLING.

       (a) Interstate Transmission of Bets or Information 
     Assisting in Placing Bets on Sporting Events.--Section 
     1084(a) of title 18, United States Code, is amended by 
     striking ``two'' and inserting ``5''.
       (b) Interstate Transportation of Wagering Paraphernalia.--
     Section 1953(a) of title 18, United States Code, is amended 
     by adding at the end the following: ``If the matter carried 
     or sent in interstate or foreign commerce was intended by the 
     defendant to be used to assist in the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''
       (c) Illegal Gambling Business.--Section 1955(a) of title 
     18, United States Code, is amended by adding at the end the 
     following: ``If the gambling business included the placing of 
     bets or wagers on any sporting event or contest, the maximum 
     term of imprisonment for the offense shall be 10 years.''
       (d) Interstate Travel To Promote and Conduct an Illegal 
     Gambling Business.--Section 1952 of title 18, United States 
     Code, is amended by adding at the end the following: ``(d) If 
     the offense violated paragraph (1) or (3) of subsection (a) 
     and the illegal activity included the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''
       (e) Sports Bribery.--Section 224(a) of title 18, United 
     States Code, is amended by adding at the end the following: 
     ``If the purpose of the bribery is to affect the outcome of a 
     bet or wager placed on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''
                                  ____

  SA 494. Mr. REID 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.  . NATIONAL MINIMUM GAMBLING AGE.

       Notwithstanding any other provision of law it shall be 
     unlawful for a governmental entity to authorize by law or 
     compact that a person under the age of 21 years may place a 
     wager or otherwise engage in organized gambling activity. A 
     civil action to enjoin a violation of this subsection may be 
     commenced in an appropriate district court of the United 
     States by Attorney General of the United States.
                                  ____

  SA 495. Mr. REID 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.  . INCREASED PENALTIES FOR ILLEGAL GAMBLING.

       (a) Interstate Transmission of Bets or Information 
     Assisting in Placing Bets on Sporting Events.--Section 
     1084(a) of title 18, United States Code, is amended by 
     striking ``two'' and inserting ``5''.
       (b) Interstate Transporting of Wagering Paraphernalia.--
     Section 1953(a) of title 18, United States Code, is amended 
     by adding at the end the following: ``If the matter carried 
     or sent in interstate or foreign commerce was intended by the 
     defendant to be used to assist in the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''
       (c) Illegal Gambling Business.--Section 1955(a) of title 
     18, United States Code, is amended by adding at the end the 
     following: ``If the gambling business included the placing of 
     bets or wagers on any sporting event or contest, the maximum 
     term of imprisonment for the offense shall be 10 years.''.
       (d) Interstate Travel To Promote and Conduct an Illegal 
     Gambling Business.--Section 1952 of title 18, United States 
     Code, is amended by adding at the end the following: ``(d) If 
     the offense violated paragraph (1) or (3) of subsection (a) 
     and the illegal activity included the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''.
       (e) Sports Bribery.--Section 224(a) of title 18, United 
     States Code, is amended by adding at the end the following: 
     ``If the purpose of the bribery is to affect the outcome of a 
     bet or wager placed on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''
                                  ____

  SA 496. Mr. REID 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.  . INCREASED PENALTIES FOR ILLEGAL GAMBLING.

       (a) Interstate Transmission of Bets or Information 
     Assisting in Placing Bets on Sporting Events.--Section 
     1084(a) of title 18, United States Code, is amended by 
     striking ``two'' and inserting ``5''.
       (b) Interstate Transportation of Wagering Paraphernalia.--
     Section 1953(a) of title 18, United States Code, is amended 
     by adding at the end the following: ``If the matter carried 
     or sent in interstate or foreign commerce was intended by the 
     defendant to be

[[Page 7663]]

     used to assist in the placing of bets or wagers on any 
     sporting event or contest, the maximum term of imprisonment 
     for the offense shall be 10 years.''
       (c) Illegal Gambling Business.--Section 1955(a) of title 
     18, United States Code; is amended by adding at the end the 
     following: ``If the gambling business included the placing of 
     bets or wagers on any sporting event or contest, the maximum 
     term of imprisonment for the offense shall be 10 years.''.
       (d) Interstate Travel To Promote and Conduct an Illegal 
     Gambling Business.--Section 1952 of title 18, United States 
     Code, is amended by adding at the end the following: ``(d) If 
     the offense violated paragraph (1) or (3) of subsection (a) 
     and the illegal activity included the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''.
       (e) Sports Bribery.--Section 224(a) of title 18, United 
     States Code, is amended by adding at the end the following: 
     ``If the purpose of the bribery is to affect the outcome of a 
     bet or wager placed on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall by 10 
     years.''
                                  ____

  SA 497. Mr. REID 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.  . STUDY OF GAMBLING ON COLLEGE AND UNIVERSITY CAMPUSES.

       (a) Establishment of Panel.--Not later than 90 days after 
     the date of enactment of this Act, the Attorney General shall 
     establish a panel, which shall be composed of Federal, State, 
     and local government law enforcement officials, to conduct a 
     study of illegal college sports gambling
       (b) Contents of Study.--The study conducted by the panel 
     established under subsection (a) shall include an analysis 
     of--
       (1) the scope and prevalence of illegal college sports 
     gambling, including unlawful sports gambling (as defined in 
     section 3702 of title 28, United States Code);
       (2) the role of organized crime in illegal gambling on 
     college sports;
       (3) the role of State regulators and the legal sport books 
     in Nevada in assisting law enforcement to uncover illegal 
     sports gambling and related illegal activities;
       (4) the enforcement and implementation of the Professional 
     and Amateur Sports Protection Act of 1992, including whether 
     it has been adequately enforced;
       (5) the effectiveness of steps taken by institutions of 
     higher education to date, whether individually or through 
     national organizations, to reduce the problem of illegal 
     gambling on college sports;
       (6) the factors that influence the attitudes or levels of 
     awareness of administrators, professors, and students, 
     including student athletes, about illegal gambling on college 
     sports;
       (7) the effectiveness of new countermeasures to reduce 
     illegal gambling on college sports, including related 
     requirements for institutions of higher education and persons 
     receiving Federal education funds;
       (8) potential actions that could be taken by the National 
     Collegiate Athletic Association to address illegal gambling 
     on college and university campuses; and
       (9) other matters relevant to the issue of illegal gambling 
     on college sports as determined by the Attorney General.
       (c) Report to Congress.--Not later than 12 months after the 
     establishment of the panel under this section, the Attorney 
     General shall submit to Congress a report on the study 
     conducted under this section, which shall include--
       (1) recommendations for actions colleges, universities, and 
     the National Collegiate Athletic Association should implement 
     to address the issue of illegal gambling on college sports;
       (2) recommendations for intensive educational campaigns 
     which the National Collegiate Athletic Association could 
     implement to assist in the effort to prevent illegal gambling 
     on college sports;
       (3) recommendations for any Federal and State legislative 
     actions to address the issue of illegal gambling on college 
     sports; and
       (4) recommendations for any administrative or private 
     sector actions to address the issue of illegal gambling on 
     college sports.
                                  ____

  SA 498. Mr. REID 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.   . STUDY OF GAMBLING ON COLLEGE AND UNIVERSITY 
                   CAMPUSES.

       (a) Establishment of Panel.--Not later than 90 days after 
     the date of enactment of this Act, the Attorney General shall 
     establish a panel, which shall be composed of Federal, State, 
     and local government law enforcement officials, to conduct a 
     study of illegal college sports gambling
       (b) Contents of Study.--The study conducted by the panel 
     established under subsection (a) shall include an analysis 
     of--
       (1) the scope and prevalence of illegal college sports 
     gambling, including unlawful sports gambling (as defined in 
     section 3702 of title 28, United States Code);
       (2) the role of organized crime in illegal gambling on 
     college sports;
       (3) the role of State regulators and the legal sports books 
     in Nevada in assisting law enforcement to uncover illegal 
     sports gambling and related illegal activities;
       (4) the enforcement and implementation of the Professional 
     and Amateur Sports Protection Act of 1992, including whether 
     it has been adequately enforced;
       (5) the effectiveness of steps taken by institutions of 
     higher education to date, whether individually or through 
     national organizations, to reduce the problem of illegal 
     gambling on college sports;
       (6) the factors that influence the attitudes or levels of 
     awareness of administrators, professors, and students, 
     including student athletes, about illegal gambling on college 
     sports;
       (7) the effectiveness of new countermeasures to reduce 
     illegal gambling on college sports, including related 
     requirements for institutions of higher education and persons 
     receiving Federal education funds;
       (8) potential actions that could be taken by the National 
     Collegiate Athletic Association to address illegal gambling 
     on college and university campuses; and
       (9) other matters relevant to the issue of illegal gambling 
     on college sports as determined by the Attorney General.
       (c) Report to Congress.--Not later than 12 months after the 
     establishment of the panel under this section, the Attorney 
     General shall submit to Congress a report on the study 
     conducted under this section, which shall include--
       (1) recommendations for actions colleges, universities, and 
     the National Collegiate Athletic Association should implement 
     to address the issue of illegal gambling on college sports;
       (2) recommendations for intensive educational campaigns 
     which the National Collegiate Athletic Association could 
     implement to assist in the effort to prevent illegal gambling 
     on college sports;
       (3) recommendations for any Federal and State legislative 
     actions to address the issue of illegal gambling on college 
     sports; and
       (4) recommendations for any administrative or private 
     sector actions to address the issue of illegal gambling on 
     college sports.
                                  ____

  SA 499. Mr. REID 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.   . NATIONAL MINIMUM GAMBLING AGE.

       Notwithstanding any other provision of law it shall be 
     unlawful for a governmental entity to authorize by law or 
     compact that a person under the age of 21 years may place a 
     wager or otherwise engage in organized gambling activity. A 
     civil action to enjoin a violation of this subsection may be 
     commenced in an appropriate district court of the United 
     States by the Attorney General of the United States.
                                  ____

  SA 500. Mr. REID 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.   . NATIONAL MINIMUM GAMBLING AGE.

       Notwithstanding any other provision of law it shall be 
     unlawful for a governmental entity to authorize by law or 
     compact that a person under the age of 21 years may place a 
     wager or otherwise engage in organized gambling activity. A 
     civil action to enjoin a violation of this subsection may be 
     commenced in an appropriate district court of the United 
     States by Attorney General of the United States.
                                  ____

  SA 501. Mr. KYL 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. __. BLOCK GRANT OPTIONS.

       (a) State Options.--
       (1) In general.--Notwithstanding any other provision of 
     law, each State shall notify the Secretary regarding the 
     State's election to receive the State's portion of the 
     applicable funding described in paragraph (2) according to 
     one of the following options:

[[Page 7664]]

       (A) State block grant option.--The State may receive the 
     funding pursuant to a State allotment described in subsection 
     (b)(1)(A).
       (B) Local block grant option.--The State may direct the 
     Secretary to send the funding directly to local educational 
     agencies in the State pursuant to a local allotment described 
     in subsection (b)(1)(B).
       (C) Federal statute option.--The State may receive the 
     funding according to the provisions of law described in 
     paragraph (2).
       (2) Applicable funding.--In this subsection, the term 
     ``applicable funding'' means all funds that are appropriated 
     for the Department of Education for fiscal year 2002 or any 
     succeeding fiscal year to carry out programs or activities 
     under the following provisions of law:
       (A) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) (as amended by this Act), other than 
     titles VII and VIII of that Act.
       (B) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6101 et seq.).
       (C) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (b) Block Grants.--
       (1) Allotments.--
       (A) States.--From the total applicable funding available 
     for a fiscal year, the Secretary may make allotments to each 
     State selecting the option described in subsection (a)(1)(A) 
     in an amount that bears the same relation to such total 
     applicable funding as the number of individuals in the State 
     who are aged 5 through 17 bears to the total number of such 
     individuals in all States.
       (B) Local educational agencies.--From the total applicable 
     funding available for a fiscal year, the Secretary may make 
     allotments to each local educational agency in a State 
     selecting the option described in subsection (a)(1)(B) in an 
     amount that bears the same relation to such total applicable 
     funding as the number of individuals in the school district 
     served by the local educational agency who are aged 5 through 
     17 bears to the total number of such individuals in all 
     school districts served by all local educational agencies in 
     all States.
       (C) Enrollment determination.--The Secretary shall 
     determine the number of children described in subparagraphs 
     (A) and (B)--
       (i) for the academic year for which the determination is 
     made, after the beginning of the academic year; and
       (ii) on the basis of the most recent data available to the 
     Secretary.
       (2) Distribution of allotted funds.--
       (A) Reservations.--
       (i) States.--Each State that receives funds allotted under 
     paragraph (1) may reserve not more than 1 percent of the 
     funds for the cost of administration, evaluation, reporting, 
     and other activities related to activities assisted under 
     this section.
       (ii) Local educational agencies.--Each local educational 
     agency that receives funds allotted under paragraph (1) may 
     reserve not more than 2 percent of the funds for the costs of 
     administration, overhead costs, or indirect costs.
       (B) Awards.--In States selecting the State block grant 
     option described in subsection (a)(1)(A), all funds allotted 
     under paragraph (1)(A) that are not reserved under 
     subparagraph (A)(i) shall be made available, in accordance 
     with subparagraph (C), on behalf of each student who resides 
     in the State and is enrolled in a public elementary school or 
     secondary school, or in a private or home elementary school 
     or secondary school, located in the State. In States 
     selecting the local block grant option described in 
     subsection (a)(1)(B), all funds allotted under paragraph 
     (1)(B) that are not reserved under subparagraph (A)(ii) shall 
     be made available, in accordance with subparagraph (C), on 
     behalf of each student who resides in the school district 
     served by a local educational agency and is enrolled in a 
     public elementary school or secondary school, or in a private 
     elementary school or secondary school, in the school 
     district. In States selecting the State block grant option or 
     the local block grant option, the amount allotted on behalf 
     of each student shall be adjusted in accordance with 
     subparagraph (E).
       (C) Recipients.--Funds awarded under subparagraph (B)--
       (i) in the case of a public school student, including a 
     charter school student, shall be made available to the public 
     school or charter school, respectively; and
       (ii) in the case of a private school student, shall be made 
     available to the parent or legal guardian of the student.
       (D) Uses.--
       (i) Public school students.--Each public school that 
     receives assistance under this section shall use the 
     assistance for any qualified elementary and secondary 
     education expenses.
       (ii) Private school students.--Each parent or guardian of a 
     private school student that receives assistance under this 
     Act shall use the assistance to pay the costs of attendance 
     at the private school.
       (E) Adjustments.--A State or local educational agency shall 
     adjust the amount awarded for students under subparagraph (B) 
     to account for--
       (i) high need students, such as students from poor families 
     and students with limited English proficiency; or
       (ii) different costs of living in urban and rural areas.
       (c) Federal Statute Options.--
       (1) In general.--From the applicable funding that remains 
     after making the allotments under subparagraphs (A) and (B) 
     of subsection (b)(1) for a fiscal year, the Secretary may 
     make awards according to the provisions of law described in 
     subsection (a)(2), to State and local recipients, in States 
     selecting the option described in subsection (a)(1)(C).
       (2) Percentage reductions.--The Secretary, after making the 
     allotments under subparagraphs (A) and (B) of subsection 
     (b)(1) for a fiscal year, shall reduce the total amount of 
     applicable funding available to carry out the provisions of 
     law described in subsection (a)(2) for the fiscal year, for 
     any State selecting the option described in subsection 
     (a)(1)(C), by an equal percentage for each such provision.
       (d) Accountability.--
       (1) In general.--Each entity receiving assistance under 
     this section shall--
       (A) use the funds to supplement and not supplant State and 
     local funds; and
       (B) involve parents and members of the public in planning 
     for the use of funds provided under this section, such as 
     through a representative advisory committee.
       (2) Reports.--
       (A) In general.--Each local educational agency receiving an 
     allotment under this section shall prepare and submit to the 
     State, and each State receiving an allotment under this 
     section shall prepare and submit to Congress, a report 
     regarding the distribution and use of the allotted funds, and 
     how the use of the funds effects student achievement.
       (B) Availability.--Each State and local educational agency 
     submitting a report under subparagraph (A) shall make copies 
     of the report available to parents and other members of the 
     public.
       (C) Special rule.--Each State or local educational agency 
     receiving an allotment under this section that has developed 
     or established challenging content or student performance 
     standards shall include in the report submitted under 
     subparagraph (A) information regarding student achievement 
     with respect to the standards.
       (e) Definitions.--In this section:
       (1) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 3(18) of 
     the Elementary and Secondary Education Act of 1965 (as 
     amended by this Act).
       (2) Qualified elementary and secondary education 
     expenses.--The term ``qualified elementary and secondary 
     education expenses'' means--
       (A) expenses for tuition, fees, academic tutoring, special 
     needs services, books, supplies, computer equipment 
     (including related software and services), and other 
     equipment which are incurred in connection with the 
     enrollment or attendance of a student at a school; or
       (B) expenses for room and board, uniforms, transportation, 
     and supplementary items and services (including extended day 
     programs) which are required or provided by a school in 
     connection with such enrollment or attendance.
       (3) School.--The term ``school'' means any school that 
     provides kindergarten education, elementary education or 
     secondary education, as determined under State law.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (5) 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 
     Commonwealth of the Northern Mariana Islands, the United 
     States Virgin Islands, the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of 
     Palau.
                                  ____

  SA 502. Mr. ALLEN 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. 1. THE EDUCATION OPPORTUNITY TAX RELIEF; SHORT TITLE.

       This Act may be cited as the ``Education Opportunity Tax 
     Credit Act''.

     SEC. 2. REFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL 
                   EXPENSES.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL 
                   EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual 
     who maintains a household which includes as a member one or 
     more qualifying students (as defined in subsection (b)(1)), 
     there shall be allowed as a credit against the tax imposed by 
     this subtitle for the taxable year an amount equal to the

[[Page 7665]]

     qualified elementary and secondary education expenses with 
     respect to such students which are paid or incurred by the 
     individual during such taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed the greater of--
       ``(1) $1000 per qualifying student, or
       ``(2) $2000.
       ``(c) Qualifying Student.--For purposes of this section, 
     the term ``qualifying student'' means a dependent of the 
     taxpayer (within the meaning of section 152) who is enrolled 
     in school on a full-time basis.
       ``(d) Qualified Elementary and Secondary Education 
     Expenses.--For purposes of this section--
       ``(1) In general.--The term `qualified elementary and 
     secondary education expenses' means tutoring and computer 
     technology or equipment expenses.
       ``(2) Computer technology or equipment.--The term `computer 
     technology or equipment' has the meaning given such term by 
     section 170(e)(6)(E)(i) and includes Internet access and 
     related services.
       ``(e) School.--For purposes of this section, the term 
     `school' means any public, charter, private, religious, or 
     home school which provides elementary education or secondary 
     education (through grade 12), as determined under State law.
       ``(f) Denial of Double Benefit.--No deduction shall be 
     allowed under this chapter for any contribution for which 
     credit is allowed under this section.
       ``(g) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''.
       (b) Conforming Amendments.
       (1) Section 1324(b)(2) of title 31, United States Code, is 
     amended by striking ``or'' before ``enacted'' and by 
     inserting before the period at the end ``, or from section 35 
     of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the item relating to section 35 
     and inserting the following new items:

``Sec. 35. Credit for elementary and secondary school expenses.
``Sec. 36. Overpayments of tax.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____

  SA 503. Mr. BENNETT (for himself, Ms. Collins, and Mr. Conrad) 
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 649, line 4, strike ``(1)'' and insert ``(1)(A)''.
       On page 649, line 6, strike ``and'' and insert ``or''.
       On page 649, between lines 6 and 7, insert the following:
       ``(B) each county in which a school served by the local 
     educational agency is located has a total population density 
     of less than 10 persons per square mile; and''.
       On page 651, line 3, strike ``(1)'' and insert ``(1)(A)''.
       On page 651, line 5, strike ``and'' and insert ``or''.
       On page 651, between lines 5 and 6, insert the following:
       ``(B) each county in which a school served by the local 
     educational agency is located has a total population density 
     of less than 10 persons per square mile; and''.
                                  ____

  SA 504. Mr. BENNETT 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 145, line 6, strike ``32'' and insert ``36''.
                                  ____

  SA 505. Mr. CAMPBELL 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:

            TITLE __--NATIVE AMERICAN EDUCATION IMPROVEMENT

     SEC. __001. SHORT TITLE.

       This title may be cited as the ``Native American Education 
     Improvement Act of 2001''.

       Subtitle A--Amendments to the Education Amendments of 1978

     SEC. __101. AMENDMENTS TO THE EDUCATION AMENDMENTS OF 1978.

       Part B of title XI of the Education Amendments of 1978 (25 
     U.S.C. 2001 et seq.) is amended to read as follows:

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

     ``SEC. 1120. FINDING AND POLICY.

       ``(a) Finding.--Congress finds and recognizes that--
       ``(1) the Federal Government's unique and continuing trust 
     relationship with and responsibility to the Indian people 
     includes the education of Indian children; and
       ``(2) the Federal Government has the responsibility for the 
     operation and financial support of the Bureau of Indian 
     Affairs funded school system that the Federal Government has 
     established on or near reservations and Indian trust lands 
     throughout the Nation for Indian children.
       ``(b) Policy.--It is the policy of the United States to 
     work in full cooperation with tribes toward the goal of 
     assuring that the programs of the Bureau of Indian Affairs 
     funded school system are of the highest quality and provide 
     for the basic elementary and secondary educational needs of 
     Indian children, including meeting the unique educational and 
     cultural needs of these children.

     ``SEC. 1121. ACCREDITATION FOR THE BASIC EDUCATION OF INDIAN 
                   CHILDREN IN BUREAU OF INDIAN AFFAIRS SCHOOLS.

       ``(a) Purpose; Declarations of Purpose.--
       ``(1) Purpose.--The purpose of the accreditation required 
     under this section shall be to ensure that Indian students 
     being served by a school funded by the Bureau of Indian 
     Affairs are provided with educational opportunities that 
     equal or exceed those for all other students in the United 
     States.
       ``(2) Declarations of purpose.--
       ``(A) In general.--Local school boards for schools operated 
     by the Bureau of Indian Affairs, in cooperation and 
     consultation with the appropriate tribal governing bodies and 
     their communities, are encouraged to adopt declarations of 
     purpose for education for their communities, taking into 
     account the implications of such declarations on education in 
     their communities and for their schools. In adopting such 
     declarations of purpose, the school boards shall consider the 
     effect the declarations may have on the motivation of 
     students and faculties.
       ``(B) Contents.--A declaration of purpose for a community 
     shall--
       ``(i) represent the aspirations of the community for the 
     kinds of people the community would like the community's 
     children to become; and
       ``(ii) contain an expression of the community's desires 
     that all students in the community shall--

       ``(I) become accomplished in things and ways important to 
     the students and respected by their parents and community;
       ``(II) shape worthwhile and satisfying lives for 
     themselves;
       ``(III) exemplify the best values of the community and 
     humankind; and
       ``(IV) become increasingly effective in shaping the 
     character and quality of the world all students share.

       ``(b) Accreditation.--
       ``(1) Deadline.--
       ``(A) In general.--Not later than 12 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, each Bureau funded school shall, to the extent that 
     necessary funds are provided, be a candidate for 
     accreditation or be accredited--
       ``(i) by a tribal department of education if such 
     accreditation is accepted by a generally recognized State 
     certification or regional accrediting agency;
       ``(ii) by a regional accreditation agency;
       ``(iii) in accordance with State accreditation standards 
     for the State in which the school is located; or
       ``(iv) in the case of a school that is located on a 
     reservation that is located in more than 1 State, in 
     accordance with the State accreditation standards of 1 State 
     as selected by the tribal government.
       ``(B) Feasibility study.--Not later than 12 months after 
     the date of enactment of the Native American Education 
     Improvement Act of 2001, the Secretary of the Interior and 
     the Secretary of Education shall, in conjunction with Indian 
     tribes, Indian education organizations, and accrediting 
     agencies, develop and submit to the appropriate Committees of 
     Congress a report on the desirability and feasibility of 
     establishing a National Tribal Accreditation Agency that 
     would serve as an accrediting body for Bureau funded schools.
       ``(2) Determination of accreditation to be applied.--The 
     accreditation type applied for each school shall be 
     determined by the school board of the school, in consultation 
     with the Administrator of the school, provided that in the 
     case where the School Board and the Administrator fail to 
     agree on the type of accreditation to apply, the decision of 
     the school board with the approval of the tribal governing 
     body shall be final.
       ``(3) Assistance to school boards.--The Secretary, through 
     contracts and grants, shall provide technical and financial 
     assistance to Bureau funded schools, to the extent that 
     necessary amounts are made available, to enable such schools 
     to obtain the accreditation required under this subsection, 
     if the school boards request that such assistance, in part or 
     in whole, be provided. The Secretary may provide such 
     assistance directly or through the Department of Education, 
     an institution of higher education, a private not-for profit 
     organization or for-profit organization, an educational 
     service agency, or another entity with demonstrated 
     experience in assisting schools in obtaining accreditation.

[[Page 7666]]

       ``(4) Application of current standards during 
     accreditation.--A Bureau funded school that is seeking 
     accreditation shall remain subject to the standards issued 
     under section 1121 of the Education Amendments of 1978 and in 
     effect on the date of enactment of the Native American 
     Education Improvement Act of 2001 until such time as the 
     school is accredited, except that if any of such standards 
     are in conflict with the standards of the accrediting agency, 
     the standards of such agency shall apply in such case.
       ``(5) Annual report on unaccredited schools.--Not later 
     than 90 days after the end of each school year, the Secretary 
     shall prepare and submit to the Committees on Appropriations 
     and the Committee on Resources of the House of 
     Representatives and the Committees on Appropriations and the 
     Committee on Indian Affairs of the Senate, a report 
     concerning unaccredited Bureau funded schools that--
       ``(A) identifies those Bureau funded schools that fail to 
     be accredited or to be candidates for accreditation within 
     the period provided for in paragraph (1);
       ``(B) with respect to each Bureau funded school identified 
     under subparagraph (A), identifies the reasons that each such 
     school is not accredited or a candidate for accreditation, as 
     determined by the appropriate accreditation agency, and a 
     description of any possible way in which to remedy such 
     nonaccreditation; and
       ``(C) with respect to each Bureau funded school for which 
     the reported reasons for the lack of accreditation under 
     subparagraph (B) are a result of the school's inadequate 
     basic resources, contains information and funding requests 
     for the full funding needed to provide such schools with 
     accreditation, such funds if provided shall be applied to 
     such unaccredited school under this paragraph.
       ``(6) Opportunity to review and present evidence.--
       ``(A) In general.--Prior to including a Bureau funded 
     school in an annual report required under paragraph (5), the 
     Secretary shall--
       ``(i) ensure that the school has exhausted all 
     administrative remedies provided by the accreditation agency; 
     and
       ``(ii) provide the school with an opportunity to review the 
     data on which such inclusion is based.
       ``(B) Provision of additional information.--If the school 
     board of a school that the Secretary has proposed for 
     inclusion in an annual report under paragraph (5) believes 
     that such inclusion is in error, the school board may provide 
     to the Secretary such information as the board believes is in 
     conflict with the information and conclusions of the 
     Secretary with respect to the determination to include the 
     school in such annual report. The Secretary shall consider 
     such information provided by the school board before making a 
     final determination concerning the inclusion of the school in 
     any such report.
       ``(C) Publication of accreditation status.--Not later than 
     30 days after making an initial determination to include a 
     school in an annual report under paragraph (5), the Secretary 
     shall make public the final determination on the 
     accreditation status of the school.
       ``(7) School plan.--
       ``(A) In general.--Not later than 120 days after the date 
     on which a school is included in an annual report under 
     paragraph (5), the school shall develop a school plan, in 
     consultation with interested parties including parents, 
     school staff, the school board, and other outside experts (if 
     appropriate), that shall be submitted to the Secretary for 
     approval. The school plan shall cover a 3-year period and 
     shall--
       ``(i) incorporate strategies that address the specific 
     issues that caused the school to fail to be accredited or 
     fail to be a candidate for accreditation;
       ``(ii) incorporate policies and practices concerning the 
     school that have the greatest likelihood of ensuring that the 
     school will obtain accreditation during the 3 year-period 
     beginning on the date on which the plan is implemented;
       ``(iii) contain an assurance that the school will reserve 
     the necessary funds, from the funds described in paragraph 
     (3), for each fiscal year for the purpose of obtaining 
     accreditation;
       ``(iv) specify how the funds described in clause (iii) will 
     be used to obtain accreditation;
       ``(v) establish specific annual, objective goals for 
     measuring continuous and significant progress made by the 
     school in a manner that will ensure the accreditation of the 
     school within the 3-year period described in clause (ii);
       ``(vi) identify how the school will provide written 
     notification about the lack of accreditation to the parents 
     of each student enrolled in such school, in a format and, to 
     the extent practicable, in a language the parents can 
     understand; and
       ``(vii) specify the responsibilities of the school board 
     and any assistance to be provided by the Secretary under 
     paragraph (3).
       ``(B) Implementation.--A school shall implement the school 
     plan under subparagraph (A) expeditiously, but in no event 
     later than the beginning of the school year following the 
     school year in which the school was included in the annual 
     report under paragraph (5) so long as the necessary resources 
     have been provided to the school.
       ``(C) Review of plan.--Not later than 45 days after 
     receiving a school plan, the Secretary shall--
       ``(i) establish a peer-review process to assist with the 
     review of the plan; and
       ``(ii) promptly review the school plan, work with the 
     school as necessary, and approve the school plan if the plan 
     meets the requirements of this paragraph.
       ``(8) Corrective action.--
       ``(A) Definition.--In this subsection, the term `corrective 
     action' means action that--
       ``(i) substantially and directly responds to--

       ``(I) the failure of a school to achieve accreditation; and
       ``(II) any underlying staffing, curriculum, or other 
     programmatic problem in the school that contributed to the 
     lack of accreditation; and

       ``(ii) is designed to increase substantially the likelihood 
     that the school will be accredited.
       ``(B) Corrective action inapplicable.--The Secretary shall 
     grant a waiver to any school that fails to be accredited for 
     reasons that are beyond the control of the school board, as 
     determined by the Secretary, including a significant decline 
     in financial resources, the poor condition of facilities, 
     vehicles or other property, or a natural disaster. Such a 
     waiver shall exempt such school from any or all of the 
     requirements of this paragraph and paragraph (7), but such 
     school shall be required to comply with the standards 
     contained in part 36 of title 25, Code of Federal Register, 
     as in effect on the date of enactment of the Native American 
     Education Improvement Act of 2001.
       ``(C) Duties of secretary.--After providing assistance to a 
     school under paragraph (3), the Secretary shall--
       ``(i) annually review the progress of the school under the 
     applicable school plan, to determine whether the school is 
     meeting, or making adequate progress towards, achieving the 
     goals described in paragraph (7)(A)(v) with respect to 
     reaccreditation or becoming a candidate for accreditation;
       ``(ii) except as provided in subparagraph (B), continue to 
     provide assistance while implementing the school's plan, and, 
     if determined appropriate by the Secretary, take corrective 
     action with respect to the school if it fails to be 
     accredited at the end of the third year of the school's plan;
       ``(iii) promptly notify the parents of children enrolled in 
     the school of the option to transfer their child to another 
     school;
       ``(iv) provide all students enrolled in the school with the 
     option to transfer to another school, including a public or 
     charter school, that is accredited; and
       ``(v) provide, or pay for the provision of, transportation 
     for each student described in clause (iv) to the school to 
     which the student elects to be transferred.
       ``(D) Failure of school plan.--With respect to a Bureau 
     operated school that fails to be accredited at the end of the 
     3-year period during which the school's plan is in effect 
     under paragraph (7), the Secretary may take 1 or more of the 
     following corrective actions:
       ``(i) Institute and fully implement actions suggested by 
     the accrediting agency.
       ``(ii) Consult with the tribe involved to determine the 
     causes for the lack of accreditation including potential 
     staffing and administrative changes that are or may be 
     necessary.
       ``(iii) Set aside a certain amount of funds that may only 
     be used by the school to obtain accreditation.
       ``(iv)(I) Provide the tribe with a 60-day period in which 
     to determine whether the tribe desires to operate the school 
     as a contract or grant school, before meeting the 
     accreditation requirements in section 5207 of the Tribally 
     Controlled Schools Act, at the beginning of the next school 
     year following the determination to take corrective action. 
     If the tribe agrees to operate the school as a contract or 
     grant school, the tribe shall prepare a plan, pursuant to 
     paragraph (7), for approval by the Secretary in accordance 
     with paragraph (7), to achieve accreditation.
       ``(II) If the tribe declines to assume control of the 
     school, the Secretary, in consultation with the tribe, may 
     contract with an outside entity, consistent with applicable 
     law, or appoint a receiver or trustee to operate and 
     administer the affairs of the school until the school is 
     accredited. The outside entity, receiver or trustee shall 
     prepare a plan, pursuant to paragraph (7), for approval by 
     the Secretary in accordance with paragraph (7).




       ``(III) Upon accreditation of the school, the Secretary 
     shall allow the tribe to continue to operate the school as a 
     grant or contract school, or if being controlled by an 
     outside entity, provide the tribe with the option to assume 
     operation of the school as a contract school, in accordance 
     with the Indian Self Determination Act, or as a grant school 
     in accordance with the Tribally Controlled Schools Act, at 
     the beginning of the school year following the school year in 
     which the school obtains accreditation. If the tribe 
     declines, the Secretary may allow the outside entity, 
     receiver or trustee to continue the operation of the school 
     or reassume control of the school.

[[Page 7667]]

       ``(v)(I) With respect to--

       ``(aa) a school that is a grant school, comply with section 
     5207 of the Tribally Controlled Schools Act;
       ``(bb) a school that is a contract school, comply with the 
     Indian Self Determination Act;
       ``(cc) a school described in item (aa) or (bb), take any 
     corrective actions described in clauses (i) through (iii); or
       ``(dd) a school described in item (aa) or (bb), the 
     Secretary, after complying with the notice and hearing 
     requirements of the reassumption provisions of the Indian 
     Self Determination Act, may assume the operation and 
     administration of the school at the beginning of the school 
     year following the revocation of the school's determination 
     of eligibility and shall adopt a plan in accordance with 
     paragraph (7).

       ``(II) With respect to a school described in subclause (I), 
     if, at the end of the 3-year period during which the school's 
     plan is in effect under paragraph (7), the school is still 
     not accredited, the Secretary in consultation with the tribe 
     may contract with an outside entity or appoint a receiver or 
     trustee, which shall adopt a plan in accordance with 
     paragraph (7), to operate and administer the affairs of the 
     school until the school is accredited.
       ``(III) Upon accreditation of the school, the tribe shall 
     have the option to assume the operation and administration of 
     the school as a contract school after complying with the 
     Indian Self Determination Act, or as a grant school, after 
     complying with the Tribally Controlled Schools Act, at the 
     beginning of the school year following the year in which the 
     school obtains accreditation.
       ``(IV) The provisions of this clause shall be construed 
     consistent with the provisions of the Tribally Controlled 
     Schools Act and the Indian Self Determination Act as in 
     effect on the date of enactment of the Native American 
     Education Improvement Act of 2001, and shall not be construed 
     as expanding the authority of the Secretary under any other 
     law.
       ``(E) Hearing.--With respect to a school that is operated 
     pursuant to a grant, or a school that is operated under a 
     contract under the Indian Self Determination Act, prior to 
     implementing any corrective action under this paragraph, the 
     Secretary shall provide notice and an opportunity for a 
     hearing to the affected school pursuant to section 5207 of 
     the Tribally Controlled Schools Act.
       ``(9) Statutory construction.--Nothing in this section 
     shall be construed to alter or otherwise affect the rights, 
     remedies, and procedures afforded to school employees under 
     applicable law (including applicable regulations or court 
     orders) or under the terms of any collective bargaining 
     agreement, memorandum of understanding, or other agreement 
     between such employees and their employers.
       ``(c) Annual Plan.--
       ``(1) In general.--Except as provided in subsection (b), 
     the Secretary shall implement the Bureau standards in effect 
     on the date of enactment of the Native American Education 
     Improvement Act of 2001.
       ``(2) Plan.--On an annual basis, the Secretary shall submit 
     to the appropriate committees of Congress, all Bureau funded 
     schools, and the tribal governing bodies of such schools a 
     detailed plan to ensure that all Bureau funded schools are 
     accredited, or if such school are in the process of obtaining 
     accreditation that such school meet the Bureau standards in 
     effect on the date of enactment of the Native American 
     Education Improvement Act of 2001 to the extent that such 
     standards do not conflict with the standards of the 
     accrediting agency. Such plan shall include detailed 
     information on the status of each school's educational 
     program in relation to the applicable standards, specific 
     cost estimates for meeting such standards at each school, and 
     specific timelines for bringing each school up to the level 
     required by such standards.
       ``(d) Closure or Consolidation of Schools.--
       ``(1) In general.--Except as specifically required by law, 
     no Bureau funded school or dormitory operated on or after 
     January 1, 1992, may be closed, consolidated, or transferred 
     to another authority and no program of such a school may be 
     substantially curtailed except in accordance with the 
     requirements of this subsection.
       ``(2) Exceptions.--This subsection (other than this 
     paragraph) shall not apply--
       ``(A) in those cases in which the tribal governing body for 
     a school, or the local school board concerned (if designated 
     by the tribal governing body to act under this paragraph), 
     requests the closure, consolidation, or substantial 
     curtailment; or
       ``(B) if a temporary closure, consolidation, or substantial 
     curtailment is required by facility conditions that 
     constitute an immediate hazard to health and safety.
       ``(3) Regulations.--The Secretary shall, by regulation, 
     promulgate standards and procedures for the closure, transfer 
     to another authority, consolidation, or substantial 
     curtailment of school programs of Bureau schools, in 
     accordance with the requirements of this subsection.
       ``(4) Notification.--
       ``(A) Consideration.--Whenever closure, transfer to another 
     authority, consolidation, or substantial curtailment of a 
     school program of a Bureau school is under active 
     consideration or review by any division of the Bureau or the 
     Department of the Interior, the head of the division or the 
     Secretary shall ensure that the affected tribe, tribal 
     governing body, and local school board, are notified (in 
     writing) immediately, kept fully and currently informed, and 
     afforded an opportunity to comment with respect to such 
     consideration or review.
       ``(B) Formal decision.--When the head of any division of 
     the Bureau or the Secretary makes a formal decision to close, 
     transfer to another authority, consolidate, or substantially 
     curtail a school program of a Bureau school, the head of the 
     division or the Secretary shall notify (in writing) the 
     affected tribes, tribal governing body, and local school 
     board at least 6 months prior to the end of the academic year 
     preceding the date of the proposed action.
       ``(C) Copies of notifications and information.--The 
     Secretary shall transmit copies of the notifications 
     described in this paragraph promptly to the appropriate 
     committees of Congress and publish such notifications copies 
     in the Federal Register.
       ``(5) Report.--
       ``(A) In general.--The Secretary shall submit a report to 
     the appropriate committees of Congress, the affected tribal 
     governing body and the designated local school board, 
     describing the process of the active consideration or review 
     referred to in paragraph (4).
       ``(B) Contents.--The report shall include the results of a 
     study of the impact of the action under consideration or 
     review on the student population of the school involved, 
     identify those students at the school with particular 
     educational and social needs, and ensure that alternative 
     services are available to such students. Such report shall 
     include a description of consultation conducted between the 
     potential service provider and current service provider of 
     such services, parents, tribal representatives, the tribe 
     involved, and the Director regarding such students.
       ``(6) Limitation on certain actions.--No irreversible 
     action may be taken to further any proposed school closure, 
     transfer to another authority, consolidation, or substantial 
     curtailment described in this subsection concerning a school 
     (including any action that would prejudice the personnel or 
     programs of such school) prior to the end of the first full 
     academic year after the report described in paragraph (5) is 
     submitted.
       ``(7) Tribal governing body approval required for certain 
     actions.--The Secretary may terminate, contract, transfer to 
     any other authority, consolidate, or substantially curtail 
     the operation or facilities of--
       ``(A) any Bureau funded school that is operated on or after 
     January 1, 1999;
       ``(B) any program of such a school that is operated on or 
     after January 1, 1999; or
       ``(C) any school board of a school operated under a grant 
     under the Tribally Controlled Schools Act of 1988,
     only if the tribal governing body for the school involved 
     approves such action.
       ``(e) Application for Contracts or Grants for Non-Bureau 
     Funded Schools or Expansion of Bureau Funded Schools.--
       ``(1) In general.--
       ``(A) Applications.--
       ``(i) Tribes; school boards.--The Secretary shall only 
     consider the factors described in subparagraph (B) in 
     reviewing--

       ``(I) applications from any tribe for the awarding of a 
     contract or grant for a school that is not a Bureau funded 
     school; and
       ``(II) applications from any tribe or school board 
     associated with any Bureau funded school for the awarding of 
     a contract or grant for the expansion of a Bureau funded 
     school that would increase the amount of funds received by 
     the tribe or school board under section 1126.

       ``(ii) Limitation.--With respect to applications described 
     in this subparagraph, the Secretary shall give consideration 
     to all the factors described in subparagraph (B), but no such 
     application shall be denied based primarily upon the 
     geographic proximity of comparable public education.
       ``(B) Factors.--With respect to applications described in 
     subparagraph (A) the Secretary shall consider the following 
     factors relating to the program and services that are the 
     subject of the application:
       ``(i) The adequacy of existing facilities to support the 
     proposed program and services or the applicant's ability to 
     obtain or provide adequate facilities.
       ``(ii) Geographic and demographic factors in the affected 
     areas.
       ``(iii) The adequacy of the applicant's program plans or, 
     in the case of a Bureau funded school, of a projected needs 
     analysis conducted either by the tribe or the Bureau.
       ``(iv) Geographic proximity of comparable public education.
       ``(v) The stated needs of all affected parties, including 
     students, families, tribal governing bodies at both the 
     central and local levels, and school organizations.
       ``(vi) Adequacy and comparability of programs and services 
     already available.
       ``(vii) Consistency of the proposed program and services 
     with tribal educational codes or tribal legislation on 
     education.
       ``(viii) The history and success of these services for the 
     proposed population to be

[[Page 7668]]

     served, as determined from all factors, including 
     standardized examination performance.
       ``(2) Determination on application.--
       ``(A) Period.--The Secretary shall make a determination 
     concerning whether to approve any application described in 
     paragraph (1)(A) not later than 180 days after the date such 
     application is submitted to the Secretary.
       ``(B) Failure to make determination.--If the Secretary 
     fails to make the determination with respect to an 
     application by the date described in subparagraph (A), the 
     application shall be treated as having been approved by the 
     Secretary.
       ``(3) Requirements for applications.--
       ``(A) Approval.--Notwithstanding paragraph (2)(B), an 
     application described in paragraph (1)(A) may be approved by 
     the Secretary only if--
       ``(i) the application has been approved by the tribal 
     governing body of the students served by (or to be served by) 
     the school or program that is the subject of the application; 
     and
       ``(ii) the tribe or designated school board involved 
     submits written evidence of such approval with the 
     application.
       ``(B) Information.--Each application described in paragraph 
     (1)(A) shall contain information discussing each of the 
     factors described in paragraph (1)(B).
       ``(4) Denial of applications.--If the Secretary denies an 
     application described in paragraph (1)(A), the Secretary 
     shall--
       ``(A) state the objections to the application in writing to 
     the applicant not later than 180 days after the date the 
     application is submitted to the Secretary;
       ``(B) provide assistance to the applicant to overcome the 
     stated objections;
       ``(C) provide to the applicant a hearing on the record 
     regarding the denial, under the same rules and regulations as 
     apply under the Indian Self-Determination and Education 
     Assistance Act; and
       ``(D) provide to the applicant a notice of the applicant's 
     appeals rights and an opportunity to appeal the decision 
     resulting from the hearing under subparagraph (D).
       ``(5) Effective date of a subject application.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the action that is the subject of any application 
     described in paragraph (1)(A) that is approved by the 
     Secretary shall become effective--
       ``(i) on the first day of the academic year following the 
     fiscal year in which the application is approved; or
       ``(ii) on an earlier date determined by the Secretary.
       ``(B) Application treated as approved.--If an application 
     is treated as having been approved by the Secretary under 
     paragraph (2)(B), the action that is the subject of the 
     application shall become effective--
       ``(i) on the date that is 18 months after the date on which 
     the application is submitted to the Secretary; or
       ``(ii) on an earlier date determined by the Secretary.
       ``(6) Statutory construction.--Nothing in this section, or 
     any other provision of law, shall be construed to preclude 
     the expansion of grades and related facilities at a Bureau 
     funded school, if such expansion is paid for with non-Bureau 
     funds.
       ``(f) Joint Administration.--Administrative, 
     transportation, and program cost funds received by Bureau 
     funded schools, and any program from the Department of 
     Education or any other Federal agency for the purpose of 
     providing education or related services, and other funds 
     received for such education and related services from non-
     Federally funded programs, shall be apportioned and the funds 
     shall be retained at the school.
       ``(g) General Use of Funds.--Funds received by Bureau 
     funded schools from the Bureau of Indian Affairs and under 
     any program from the Department of Education or any other 
     Federal agency for the purpose of providing education or 
     related services may be used for schoolwide projects to 
     improve the educational program of the schools for all Indian 
     students.
       ``(h) Study on Adequacy of Funds and Formulas.--
       ``(1) Study.--The Comptroller General of the United States 
     shall conduct a study to include an analysis of the 
     information contained in the General Accounting Office study 
     evaluating and comparing school systems of the Department of 
     Defense and the Bureau of Indian Affairs, in consultation 
     with tribes and local school boards, to determine the 
     adequacy of funding, and formulas used by the Bureau to 
     determine funding, for programs operated by Bureau funded 
     schools, taking into account unique circumstances applicable 
     to Bureau funded schools.
       ``(2) Findings.--On completion of the study under paragraph 
     (1), the Secretary shall take such action as may be necessary 
     to ensure distribution of the findings of the study to the 
     appropriate authorizing and appropriating committees of 
     Congress, all affected tribes, local school boards, and 
     associations of local school boards.

     ``SEC. 1122. NATIONAL STANDARDS FOR HOME LIVING SITUATIONS.

       ``(a) In General.--The Secretary, in accordance with 
     section 1136, shall revise the national standards for home-
     living (dormitory) situations to include such factors as 
     heating, lighting, cooling, adult-child ratios, need for 
     counselors (including special needs related to off-
     reservation home-living (dormitory) situations), therapeutic 
     programs, space, and privacy. Such standards shall be 
     implemented in Bureau schools. Any subsequent revisions shall 
     also be in accordance with such section 1136.
       ``(b) Implementation.--The Secretary shall implement the 
     revised standards established under this section immediately 
     upon their issuance.
       ``(c) Plan.--
       ``(1) In general.--Upon the submission of each annual 
     budget request for Bureau educational services (as contained 
     in the President's annual budget request under section 1105 
     of title 31, United States Code), the Secretary shall submit 
     to the appropriate committees of Congress, the tribes, and 
     the affected schools, and publish in the Federal Register, a 
     detailed plan to bring all Bureau funded schools that have 
     dormitories or provide home-living (dormitory) situations 
     into compliance with the standards established under this 
     section.
       ``(2) Contents.--Each plan under paragraph (1) shall 
     include--
       ``(A) a statement of the relative needs of each of the 
     home-living schools and projected future needs of each of the 
     home-living schools;
       ``(B) detailed information on the status of each of the 
     schools in relation to the standards established under this 
     section;
       ``(C) specific cost estimates for meeting each standard for 
     each such school;
       ``(D) aggregate cost estimates for bringing all such 
     schools into compliance with the standards established under 
     this section; and
       ``(E) specific timelines for bringing each school into 
     compliance with such standards.
       ``(d) Waiver.--
       ``(1) In general.--A tribal governing body or local school 
     board may, in accordance with this subsection, waive the 
     standards established under this section for a school 
     described in subsection (a).
       ``(2) Inappropriate standards.--
       ``(A) In general.--A tribal governing body, or the local 
     school board so designated by the tribal governing body, may 
     waive, in whole or in part, the standards established under 
     this section if such standards are determined by such body or 
     board to be inappropriate for the needs of students from that 
     tribe.
       ``(B) Alternative standards.--The tribal governing body or 
     school board involved shall, not later than 60 days after 
     providing a waiver under subparagraph (A) for a school, 
     submit to the Director a proposal for alternative standards 
     that take into account the specific needs of the tribe's 
     children. Such alternative standards shall be established by 
     the Director for the school involved unless specifically 
     rejected by the Director for good cause and in writing 
     provided to the affected tribes or local school board.
       ``(e) Closure for Failure To Meet Standards Prohibited.--No 
     school in operation on or before July 1, 1999 (regardless of 
     compliance or noncompliance with the standards established 
     under this section), may be closed, transferred to another 
     authority, or consolidated, and no program of such a school 
     may be substantially curtailed, because the school failed to 
     meet such standards.

     ``SEC. 1123. SCHOOL BOUNDARIES.

       ``(a) Establishment by Secretary.--Except as described in 
     subsection (b), the Secretary shall establish, by regulation, 
     separate geographical attendance areas for each Bureau funded 
     school.
       ``(b) Establishment by Tribal Body.--In any case in which 
     there is more than 1 Bureau funded school located on a 
     reservation of a tribe, at the direction of the tribal 
     governing body, the relevant school boards of the Bureau 
     funded schools on the reservation may, by mutual consent, 
     establish the boundaries of the relevant geographical 
     attendance areas for such schools, subject to the approval of 
     the tribal governing body. Any such boundaries so established 
     shall be accepted by the Secretary.
       ``(c) Boundary Revisions.--
       ``(1) In general.--Effective on July 1, 1999, the Secretary 
     may not establish or revise boundaries of a geographical 
     attendance area with respect to any Bureau funded school 
     unless the tribal governing body concerned and the school 
     board concerned has been afforded--
       ``(A) at least 6 months notice of the intention of the 
     Secretary to establish or revise such boundaries; and
       ``(B) the opportunity to propose alternative boundaries.
       ``(2) Petitions.--Any tribe may submit a petition to the 
     Secretary requesting a revision of the geographical 
     attendance area boundaries referred to in paragraph (1).
       ``(3) Boundaries.--The Secretary shall accept proposed 
     alternative boundaries described in paragraph (1)(B) or 
     revised boundaries described in a petition submitted under 
     paragraph (2) unless the Secretary finds, after consultation 
     with the affected tribe, that such alternative or revised 
     boundaries do not reflect the needs of the Indian students to 
     be served or do not provide adequate stability to all of the 
     affected programs. On accepting the boundaries, the Secretary 
     shall publish information describing the boundaries in the 
     Federal Register.

[[Page 7669]]

       ``(4) Tribal resolution determination.--Nothing in this 
     section shall be interpreted as denying a tribal governing 
     body the authority, on a continuing basis, to adopt a tribal 
     resolution allowing parents a choice of the Bureau funded 
     school their child may attend, regardless of the geographical 
     attendance area boundaries established under this section.
       ``(d) Funding Restrictions.--The Secretary shall not deny 
     funding to a Bureau funded school for any eligible Indian 
     student attending the school solely because that student's 
     home or domicile is outside of the boundaries of the 
     geographical attendance area established for that school 
     under this section. No funding shall be made available for 
     transportation without tribal authorization to enable the 
     school to provide transportation for any student to or from 
     the school and a location outside the approved attendance 
     area of the school.
       ``(e) Reservation as Boundary.--In any case in which there 
     is only 1 Bureau funded school located on a reservation, the 
     boundaries of the geographical attendance area for the school 
     shall be the boundaries (as established by treaty, agreement, 
     legislation, court decision, or executive decision and as 
     accepted by the tribe involved) of the reservation served, 
     and those students residing near the reservation shall also 
     receive services from such school.
       ``(f) Off-Reservation Home-Living Schools.--Notwithstanding 
     the boundaries of the geographical attendance areas 
     established under this section, each Bureau funded school 
     that is an off-reservation home-living school shall implement 
     special emphasis programs and permit the attendance of 
     students requiring the programs. The programs provided for 
     such students shall be coordinated among education line 
     officers, the families of the students, the schools, and the 
     entities operating programs that referred the students to the 
     schools.

     ``SEC. 1124. FACILITIES CONSTRUCTION.

       ``(a) National Survey of Facilities Conditions.--
       ``(1) In general.--Not later than 12 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the General Accounting Office shall compile, 
     collect, and secure the data that is needed to prepare a 
     national survey of the physical conditions of all Bureau 
     funded school facilities.
       ``(2) Data and methodologies.--In preparing the national 
     survey required under paragraph (1), the General Accounting 
     Office shall use the following data and methodologies:
       ``(A) The existing Department of Defense formula for 
     determining the condition and adequacy of Department of 
     Defense facilities.
       ``(B) Data related to conditions of Bureau funded schools 
     that has previously been compiled, collected, or secured from 
     whatever source derived so long as the data is relevant, 
     timely, and necessary to the survey.
       ``(C) The methodologies of the American Institute of 
     Architects, or other accredited and reputable architecture or 
     engineering associations.
       ``(3) Consultations.--
       ``(A) In general.--In carrying out the survey required 
     under paragraph (1), the General Accounting Office shall, to 
     the maximum extent practicable, consult (and if necessary 
     contract) with national, regional, and tribal Indian 
     education organizations to ensure that a complete and 
     accurate national survey is achieved.
       ``(B) Requests for information.--All Bureau funded schools 
     shall comply with reasonable requests for information by the 
     General Accounting Office and shall respond to such requests 
     in a timely fashion.
       ``(4) Submission to congress.--Not later than 24 months 
     after the date of enactment of the Native American Education 
     Improvement Act of 2001, the General Accounting Office shall 
     submit the results of the national survey conducted under 
     paragraph (1) to the Committee on Indian Affairs and 
     Committee on Appropriations of the Senate, and the Committee 
     on Resources, Committee on Education and the Workforce, and 
     Committee on Appropriations of the House and to the 
     Secretary, who, in turn shall submit the results of the 
     national survey to school boards of Bureau-funded schools and 
     their respective Tribes.
       ``(5) Negotiated rulemaking committee.--
       ``(A) In general.--Not later than 6 months after the date 
     on which the submission is made under paragraph (4), the 
     Secretary shall establish a negotiated rule making committee 
     pursuant to section 1136(c). The negotiated rulemaking 
     committee shall prepare and submit to the Secretary the 
     following:
       ``(i) A catalogue of the condition of school facilities at 
     all Bureau funded schools that--

       ``(I) incorporates the findings from the General Accounting 
     Office study evaluating and comparing school systems of the 
     Department of Defense and the Bureau of Indian Affairs;
       ``(II) rates such facilities with respect to the rate of 
     deterioration and useful life of structures and major 
     systems;
       ``(III) establishes a routine maintenance schedule for each 
     facility;
       ``(IV) identifies the complementary educational facilities 
     that do not exist but that are needed; and
       ``(V) makes projections on the amount of funds needed to 
     keep each school viable, consistent with the accreditation 
     standards required pursuant to this Act.

       ``(ii) A school replacement and new construction report 
     that determines replacement and new construction need, and a 
     formula for the equitable distribution of funds to address 
     such need, for Bureau funded schools. Such formula shall 
     utilize necessary factors in determining an equitable 
     distribution of funds, including--

       ``(I) the size of school;
       ``(II) school enrollment;
       ``(III) the age of the school;
       ``(IV) the condition of the school;
       ``(V) environmental factors at the school; and
       ``(VI) school isolation.

       ``(iii) A renovation repairs report that determines 
     renovation need (major and minor), and a formula for the 
     equitable distribution of funds to address such need, for 
     Bureau funded schools. Such report shall identify needed 
     repairs or renovations with respect to a facility, or a part 
     of a facility, or the grounds of the facility, to remedy a 
     need based on disabilities access or health and safety 
     changes to a facility. The formula developed shall utilize 
     necessary factors in determining an equitable distribution of 
     funds, including the factors described in subparagraph (B).
       ``(B) Submission of reports.--Not later than 24 months 
     after the negotiated rulemaking committee is established 
     under subparagraph (A), the reports described in clauses (ii) 
     and (iii) of subparagraph (A) shall be submitted to the 
     committees of Congress referred to in paragraph (4), the 
     national and regional Indian education organizations, and to 
     all school boards of Bureau-funded schools and their 
     respective Tribes.
       ``(6) Facilities information systems support database.--The 
     Secretary shall develop a Facilities Information Systems 
     Support Database to maintain and update the information 
     contained in the reports under clauses (ii) and (iii) of 
     paragraph (5)(A) and the information contained in the survey 
     conducted under paragraph (1). The system shall be updated 
     every 3 years by the Bureau of Indian Affairs and monitored 
     by General Accounting Office, and shall be made available to 
     school boards of Bureau-funded schools and their respective 
     Tribes, and Congress.
       ``(b) Compliance With Health and Safety Standards.--The 
     Secretary shall immediately begin to bring all schools, 
     dormitories, and other Indian education-related facilities 
     operated by the Bureau or under contract or grant with the 
     Bureau into compliance with all applicable tribal, Federal, 
     or State health and safety standards, whichever provides 
     greater protection (except that the tribal standards to be 
     applied shall be no greater than any otherwise applicable 
     Federal or State standards), with section 504 of the 
     Rehabilitation Act of 1973, and with the Americans with 
     Disabilities Act of 1990. Nothing in this section shall 
     require termination of the operations of any facility which 
     does not comply with such provisions and which is in use on 
     the date of the enactment of the Native American Education 
     Improvement Act of 2001.
       ``(c) Compliance Plan.--At the time that the annual budget 
     request for Bureau educational services is presented, the 
     Secretary shall submit to the appropriate committees of 
     Congress a detailed plan to bring all facilities covered 
     under subsection (b) of this section into compliance with the 
     standards referred to in subsection (b). Such plan shall 
     include detailed information on the status of each facility's 
     compliance with such standards, specific cost estimates for 
     meeting such standards at each school, and specific timelines 
     for bringing each school into compliance with such standards.
       ``(d) Construction Priorities.--
       ``(1) System to establish priorities.--The Secretary shall 
     annually prepare and submit to the appropriate committees of 
     Congress, and publish in the Federal Register, information 
     describing the system used by the Secretary to establish 
     priorities for replacement and construction projects for 
     Bureau funded schools and home-living schools, including 
     boarding schools, and dormitories. On making each budget 
     request described in subsection (c), the Secretary shall 
     publish in the Federal Register and submit with the budget 
     request a list of all of the Bureau funded school 
     construction priorities, as described in paragraph (2).
       ``(2) Long-term construction and replacement list.--In 
     addition to submitting the plan described in subsection (c), 
     the Secretary shall--
       ``(A) not later than 18 months after the date of enactment 
     of the Native American Education Improvement Act of 2001, 
     establish a long-term construction and replacement priority 
     list for all Bureau funded schools;
       ``(B) using the list prepared under subparagraph (A), 
     propose a list for the orderly replacement of all Bureau 
     funded education-related facilities over a period of 40 years 
     to facilitate planning and scheduling of budget requests;
       ``(C) publish the list prepared under subparagraph (B) in 
     the Federal Register and

[[Page 7670]]

     allow a period of not less than 120 days for public comment;
       ``(D) make such revisions to the list prepared under 
     subparagraph (B) as are appropriate based on the comments 
     received; and
       ``(E) publish a final list in the Federal Register.
       ``(3) Effect on other list.--Nothing in this section shall 
     be construed as interfering with or changing in any way the 
     construction and replacement priority list established by the 
     Secretary, as the list exists on the date of enactment of the 
     Native American Education Improvement Act of 2001.
       ``(e) Hazardous Condition at Bureau Funded School.--
       ``(1) Closure, consolidation, or curtailment.--
       ``(A) In general.--A Bureau funded school may be closed or 
     consolidated, and the programs of a Bureau funded school may 
     be substantially curtailed by reason of facility conditions 
     that constitute an immediate hazard to health and safety only 
     if a health and safety officer of the Bureau and an 
     individual designated by the tribe involved under 
     subparagraph (B), determine that such conditions exist at a 
     facility of the Bureau funded school.
       ``(B) Designation of individual by tribe.--To be designated 
     by a tribe for purposes of subparagraph (A), an individual 
     shall--
       ``(i) be a licensed or certified facilities safety 
     inspector;
       ``(ii) have demonstrated experience in the inspection of 
     facilities for health and safety purposes with respect to 
     occupancy; or
       ``(iii) have a significant educational background in the 
     health and safety of facilities with respect to occupancy.
       ``(C) Inspection.--In making a determination described in 
     subparagraph (A), the Bureau health and safety officer and 
     the individual designated by the tribe shall conduct an 
     inspection of the conditions of such facility in order to 
     determine whether conditions at such facility constitute an 
     immediate hazard to health and safety.
       ``(D) Failure to concur.--If the Bureau health and safety 
     officer, and the individual designated by the tribe, 
     conducting the inspection of a facility required under 
     subparagraph (A) do not concur that conditions at the 
     facility constitute an immediate hazard to health and safety, 
     such officer and individual shall immediately notify the 
     tribal governing body and provide written information related 
     to their determinations.
       ``(E) Consideration by tribal governing body.--Not later 
     than 10 days after a tribal governing body received notice 
     under subparagraph (D), the tribal governing body shall 
     consider all information related to the determinations of the 
     Bureau health and safety officer and the individual 
     designated by the tribe and make a determination regarding 
     the closure, consolidation, or curtailment involved.
       ``(F) Agreement to close, consolidate, or curtail.--If the 
     Bureau health and safety officer, and the individual 
     designated by the tribe, conducting the inspection of a 
     facility required under subparagraph (A), concur that 
     conditions at the facility constitute an immediate hazard to 
     health and safety, or if the tribal governing body makes such 
     a determination under subparagraph (E) the facility involved 
     shall be closed immediately.
       ``(G) General closure report.--If a Bureau funded school is 
     temporarily closed or consolidated or the programs of a 
     Bureau funded school are temporarily substantially curtailed 
     under this subsection and the Secretary determines that the 
     closure, consolidation, or curtailment will exceed 1 year, 
     the Secretary shall submit to the appropriate committees of 
     Congress, the affected tribe, and the local school board, not 
     later than 3 months after the date on which the closure, 
     consolidation, or curtailment was initiated, a report that 
     specifies--
       ``(i) the reasons for such temporary action;
       ``(ii) the actions the Secretary is taking to eliminate the 
     conditions that constitute the hazard;
       ``(iii) an estimated date by which the actions described in 
     clause (ii) will be concluded; and
       ``(iv) a plan for providing alternate education services 
     for students enrolled at the school that is to be closed.
       ``(2) Nonapplication of certain standards for temporary 
     facility use.--
       ``(A) Classroom activities.--The Secretary shall permit the 
     local school board to temporarily utilize facilities adjacent 
     to the school, or satellite facilities, if such facilities 
     are suitable for conducting classroom activities. In 
     permitting the use of facilities under the preceding 
     sentence, the Secretary may waive applicable minor standards 
     under section 1121 relating to such facilities (such as the 
     required number of exit lights or configuration of restrooms) 
     so long as such waivers do not result in the creation of an 
     environment that constitutes an immediate and substantial 
     threat to the health, safety, and life of students and staff.
       ``(B) Administrative activities.--The provisions of 
     subparagraph (A) shall apply with respect to administrative 
     personnel if the facilities involved are suitable for 
     activities performed by such personnel.
       ``(C) Temporary.--In this paragraph, the term `temporary' 
     means--
       ``(i) with respect to a school that is to be closed for not 
     more than 1 year, 3 months or less; and
       ``(ii) with respect to a school that is to be closed for 
     not less than 1 year, a time period determined appropriate by 
     the Bureau.
       ``(3) Treatment of closure.--Any closure of a Bureau funded 
     school under this subsection for a period that exceeds 1 
     month but is less than 1 year, shall be treated by the Bureau 
     as an emergency facility improvement and repair project.
       ``(4) Use of funds.--With respect to a Bureau funded school 
     that is closed under this subsection, the tribal governing 
     body, or the designated local school board of each Bureau 
     funded school, involved may authorize the use of funds 
     allocated pursuant to section 1126, to abate the hazardous 
     conditions without further action by Congress.
       ``(f) Funding Requirement.--
       ``(1) Distribution of funds.--Beginning with the first 
     fiscal year following the date of enactment of the Native 
     American Education Improvement Act of 2001, all funds 
     appropriated to the budget accounts for the operations and 
     maintenance of Bureau funded schools shall be distributed by 
     formula to the schools. No funds from these accounts may be 
     retained or segregated by the Bureau to pay for 
     administrative or other costs of any facilities branch or 
     office, at any level of the Bureau.
       ``(2) Requirements for certain uses.--
       ``(A) Agreement.--The Secretary shall not withhold funds 
     that would be distributed under paragraph (1) to any grant or 
     contract school, in order to use the funds for maintenance or 
     any other facilities or road-related purposes, unless such 
     school--
       ``(i) has consented to the withholding of such funds, 
     including the amount of the funds, the purpose for which the 
     funds will be used, and the timeline for the services to be 
     provided with the funds; and
       ``(ii) has provided the consent by entering into an 
     agreement that is--

       ``(I) a modification to the contract; and
       ``(II) in writing (in the case of a school that receives a 
     grant).

       ``(B) Cancellation.--The school may, at the end of any 
     fiscal year, cancel an agreement entered into under this 
     paragraph, on giving the Bureau 30 days notice of the intent 
     of the school to cancel the agreement.
       ``(g) No Reduction in Federal Funding.--Nothing in this 
     section shall be construed to reduce any Federal funding for 
     a school because the school received funding for facilities 
     improvement or construction from a State or any other source.

     ``SEC. 1125. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

       ``(a) Formulation and Establishment of Policy and 
     Procedure; Supervision of Programs and Expenditures.--The 
     Secretary shall vest in the Assistant Secretary for Indian 
     Affairs all functions with respect to formulation and 
     establishment of policy and procedure, and supervision of 
     programs and expenditures of Federal funds for the purpose of 
     Indian education administered by the Bureau. The Assistant 
     Secretary shall carry out such functions through the Director 
     of the Office of Indian Education Programs.
       ``(b) Direction and Supervision of Personnel Operations.--
       ``(1) In general.--Not later than 6 months after the date 
     of the enactment of the Native American Education Improvement 
     Act of 2001, the Director of the Office shall direct and 
     supervise the operations of all personnel directly and 
     substantially involved in the provision of education program 
     services by the Bureau, including school or institution 
     custodial or maintenance personnel, and personnel responsible 
     for contracting, a procurement, and finance functions 
     connected with school operation programs.
       ``(2) Transfers.--The Assistant Secretary for Indian 
     Affairs shall, not later than 6 months after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, coordinate the transfer of functions relating to 
     procurements for, contracts of, operation of, and maintenance 
     of schools and other support functions to the Director.
       ``(c) Inherent Federal Function.--For purposes of this Act, 
     all functions relating to education that are located at the 
     Area or Agency level and performed by an education line 
     officer shall be subject to contract under the Indian Self-
     Determination and Education Assistance Act, unless determined 
     by the Secretary to be inherently Federal functions as 
     defined in section 1139(9).
       ``(d) Evaluation of Programs; Services and Support 
     Functions; Technical and Coordination Assistance.--Education 
     personnel who are under the direction and supervision of the 
     Director of the Office in accordance with subsection (b)(1) 
     shall--
       ``(1) monitor and evaluate Bureau education programs;
       ``(2) provide all services and support functions for 
     education programs with respect to personnel matters 
     involving staffing actions and functions; and
       ``(3) provide technical and coordination assistance in 
     areas such as procurement, contracting, budgeting, personnel, 
     curricula, and operation and maintenance of school 
     facilities.
       ``(e) Construction, Improvement, Operation, and Maintenance 
     of Facilities.--
       ``(1) Plan for construction.--The Assistant Secretary for 
     Indian Affairs shall submit

[[Page 7671]]

     as part of the annual budget request for educational services 
     (as contained in the President's annual budget request under 
     section 1105 of title 31, United States Code) a plan--
       ``(A) for the construction of school facilities in 
     accordance with section 1124(d);
       ``(B) for the improvement and repair of education 
     facilities and for establishing priorities among the 
     improvement and repair projects involved, which together 
     shall form the basis for the distribution of appropriated 
     funds; and
       ``(C) for capital improvements to education facilities to 
     be made over the 5 years succeeding the year covered by the 
     plan.
       ``(2) Program for operation and maintenance.--
       ``(A) In general.--
       ``(i) Program.--The Assistant Secretary shall establish a 
     program, including a program for the distribution of funds 
     appropriated under this part, for the operation and 
     maintenance of education facilities. Such program shall 
     include--

       ``(I) a method of computing the amount necessary for the 
     operation and maintenance of each education facility;
       ``(II) a requirement of similar treatment of all Bureau 
     funded schools;
       ``(III) a notice of an allocation of the appropriated funds 
     from the Director of the Office directly to the appropriate 
     education line officers and school officials;
       ``(IV) a method for determining the need for, and priority 
     of, facilities improvement and repair projects, both major 
     and minor; and
       ``(V) a system for conducting routine preventive 
     maintenance.

       ``(ii) Meetings.--In making the determination referred to 
     in clause (i)(IV), the Assistant Secretary shall cause a 
     series of meetings to be conducted at the area and agency 
     level with representatives of the Bureau funded schools in 
     the corresponding areas and served by corresponding agencies, 
     to receive comment on the projects described in clause 
     (i)(IV) and prioritization of such projects.
       ``(B) Maintenance.--The appropriate education line officers 
     shall make arrangements for the maintenance of the education 
     facilities with the local supervisors of the Bureau 
     maintenance personnel. The local supervisors of Bureau 
     maintenance personnel shall take appropriate action to 
     implement the decisions made by the appropriate education 
     line officers. No funds made available under this part may be 
     authorized for expenditure for maintenance of such an 
     education facility unless the appropriate education line 
     officer is assured that the necessary maintenance has been, 
     or will be, provided in a reasonable manner.
       ``(3) Implementation.--The requirements of this subsection 
     shall be implemented as soon as practicable after the date of 
     enactment of the Native American Education Improvement Act of 
     2001.
       ``(f) Acceptance of Gifts and Bequests.--
       ``(1) Guidelines.--Notwithstanding any other provision of 
     law, the Director of the Office shall promulgate guidelines 
     for the establishment and administration of mechanisms for 
     the acceptance of gifts and bequests for the use and benefit 
     of particular schools or designated Bureau operated education 
     programs, including, in appropriate cases, the establishment 
     and administration of trust funds.
       ``(2) Monitoring and reports.--Except as provided in 
     paragraph (3), in a case in which a Bureau operated education 
     program is the beneficiary of such a gift or bequest, the 
     Director shall--
       ``(A) make provisions for monitoring use of the gift or 
     bequest; and
       ``(B) submit a report to the appropriate committees of 
     Congress that describes the amount and terms of such gift or 
     bequest, the manner in which such gift or bequest shall be 
     used, and any results achieved by such use.
       ``(3) Exception.--The requirements of paragraph (2) shall 
     not apply in the case of a gift or bequest that is valued at 
     $5,000 or less.
       ``(g) Functions Clarified.--In this section, the term 
     `functions' includes powers and duties.

     ``SEC. 1126. ALLOTMENT FORMULA.

       ``(a) Factors Considered; Revision To Reflect Standards.--
       ``(1) Formula.--The Secretary shall establish, by 
     regulation adopted in accordance with section 1136, a formula 
     for determining the minimum annual amount of funds necessary 
     to operate each Bureau funded school. In establishing such 
     formula, the Secretary shall consider--
       ``(A) the number of eligible Indian students served by the 
     school and the total student population of the school;
       ``(B) special cost factors, such as--
       ``(i) the isolation of the school;
       ``(ii) the need for special staffing, transportation, or 
     educational programs;
       ``(iii) food and housing costs;
       ``(iv) maintenance and repair costs associated with the 
     physical condition of the educational facilities;
       ``(v) special transportation and other costs of an isolated 
     or small school;
       ``(vi) the costs of home-living (dormitory) arrangements, 
     where determined necessary by a tribal governing body or 
     designated school board;
       ``(vii) costs associated with greater lengths of service by 
     education personnel;
       ``(viii) the costs of therapeutic programs for students 
     requiring such programs; and
       ``(ix) special costs for gifted and talented students;
       ``(C) the costs of providing academic services that are at 
     least equivalent to the services provided by public schools 
     in the State in which the school is located;
       ``(D) whether the available funding will enable the school 
     involved to comply with the accreditation standards 
     applicable to the school under section 1121; and
       ``(E) such other relevant factors as the Secretary 
     determines are appropriate including the information 
     contained in the General Accounting Office study evaluating 
     and comparing school systems of the Department of Defense and 
     the Bureau of Indian Affairs.
       ``(2) Revision of formula.--On the establishment of the 
     standards required in section 1122, the Secretary shall--
       ``(A) revise the formula established under paragraph (1) to 
     reflect the cost of compliance with such standards; and
       ``(B)(i) after the formula has been established under 
     paragraph (1), take such action as may be necessary to 
     increase the availability of counseling and therapeutic 
     programs for students in off-reservation home-living schools 
     and other Bureau operated residential facilities; and
       ``(ii) concurrently with any actions taken under clause 
     (i), review the standards established under section 1122 to 
     ensure that such standards adequately provide for parental 
     notification regarding, and consent for, such counseling and 
     therapeutic programs.
       ``(b) Pro Rata Allotment.--Notwithstanding any other 
     provision of law, Federal funds appropriated for the general 
     local operation of Bureau funded schools shall be allotted on 
     a pro rata basis in accordance with the formula established 
     under subsection (a).
       ``(c) Annual Adjustment; Reservation of Amount for School 
     Board Activities.--
       ``(1) Annual adjustment.--
       ``(A) In general.--For fiscal year 2002, and for each 
     subsequent fiscal year, the Secretary shall adjust the 
     formula established under subsection (a) to--
       ``(i) use a weighted factor of 1.2 for each eligible Indian 
     student enrolled in the seventh and eighth grades of the 
     school in considering the number of eligible Indian students 
     served by the school;
       ``(ii) consider a school with an enrollment of fewer than 
     50 eligible Indian students as having an average daily 
     attendance of 50 eligible Indian students for purposes of 
     implementing the adjustment factor for small schools;
       ``(iii) take into account the provision of residential 
     services on less than a 9-month basis at a school in a case 
     in which the school board and supervisor of the school 
     determine that the school will provide the services for fewer 
     than 9 months for the academic year involved;
       ``(iv) use a weighted factor of 2.0 for each eligible 
     Indian student that--

       ``(I) is gifted and talented; and
       ``(II) is enrolled in the school on a full-time basis,

     in considering the number of eligible Indian students served 
     by the school; and
       ``(v) use a weighted factor of 0.25 for each eligible 
     Indian student who is enrolled in a year long credit course 
     in an Indian or Native language as part of the regular 
     curriculum of a school, in considering the number of eligible 
     Indian students served by such school.
       ``(B) Timing.--The Secretary shall make the adjustment 
     required under subparagraph (A)(v) for such school after--
       ``(i) the school board of such school provides a 
     certification of the Indian or Native language curriculum of 
     the school to the Secretary, together with an estimate of the 
     number of full-time students expected to be enrolled in the 
     curriculum in the second academic year after the academic 
     year for which the certification is made; and
       ``(ii) the funds appropriated for allotments under this 
     section are designated, in the appropriations Act 
     appropriating such funds, as the funds necessary to implement 
     such adjustment at such school without reducing an allotment 
     made under this section to any school by virtue of such 
     adjustment.
       ``(2) Reservation of amount.--
       ``(A) In general.--From the funds allotted in accordance 
     with the formula established under subsection (a) for each 
     Bureau school, the local school board of such school may 
     reserve an amount which does not exceed the greater of--
       ``(i) $8,000; or
       ``(ii) the lesser of--

       ``(I) $15,000; or
       ``(II) 1 percent of such allotted funds,

     for school board activities for such school, including 
     (notwithstanding any other provision of law) meeting expenses 
     and the cost of membership in, and support of, organizations 
     engaged in activities on behalf of Indian education.
       ``(B) Training.--Each local school board, and any agency 
     school board that serves as a local school board for any 
     grant or contract school, shall ensure that each individual 
     who is a new member of the school board receives, within 12 
     months after the individual becomes a member of the school 
     board, 40

[[Page 7672]]

     hours of training relevant to that individual's service on 
     the board. Such training may include training concerning 
     legal issues pertaining to Bureau funded schools, legal 
     issues pertaining to school boards, ethics, and other topics 
     determined to be appropriate by the school board. The 
     training described in this subparagraph shall not be required 
     but is recommended for a tribal governing body that serves in 
     the capacity of a school board.
       ``(d) Reservation of Amount for Emergencies.--
       ``(1) In general.--The Secretary shall reserve from the 
     funds available for allotment for each fiscal year under this 
     section an amount that, in the aggregate, equals 1 percent of 
     the funds available for allotment for that fiscal year.
       ``(2) Use of funds.--Amounts reserved under paragraph (1) 
     shall be used, at the discretion of the Director of the 
     Office, to meet emergencies and unforeseen contingencies 
     affecting the education programs funded under this section. 
     Funds reserved under this subsection may only be expended for 
     education services or programs, including emergency repairs 
     of education facilities, at a school site (as defined in 
     section 5204(c)(2) of the Tribally Controlled Schools Act of 
     1988).
       ``(3) Funds remaining available.--Funds reserved under this 
     subsection shall remain available without fiscal year 
     limitation until expended. The aggregate amount of such 
     funds, from all fiscal years, that is available for 
     expenditure in a fiscal year may not exceed an amount equal 
     to 1 percent of the funds available for allotment under this 
     section for that fiscal year.
       ``(4) Reports.--If the Secretary makes funds available 
     under this subsection, the Secretary shall submit a report 
     describing such action to the appropriate committees of 
     Congress as part of the President's next annual budget 
     request under section 1105 of title 31, United States Code.
       ``(e) Supplemental Appropriations.--Any funds provided in a 
     supplemental appropriations Act to meet increased pay costs 
     attributable to school level personnel of Bureau funded 
     schools shall be allotted under this section.
       ``(f) Eligible Indian Student Defined.--In this section, 
     the term `eligible Indian student' means a student who--
       ``(1) is a member of, or is at least \1/4\ degree Indian 
     blood descendant of a member of, a tribe that is eligible for 
     the special programs and services provided by the United 
     States through the Bureau to Indians because of their status 
     as Indians;
       ``(2) resides on or near a reservation or meets the 
     criteria for attendance at a Bureau off-reservation home-
     living school; and
       ``(3) is enrolled in a Bureau funded school.
       ``(g) Tuition.--
       ``(1) In general.--A Bureau school or contract or grant 
     school may not charge an eligible Indian student tuition for 
     attendance at the school. A Bureau school may not charge a 
     student attending the school under the circumstances 
     described in paragraph (2)(B) tuition for attendance at the 
     school.
       ``(2) Attendance of non-indian students at bureau 
     schools.--The Secretary may permit the attendance at a Bureau 
     school of a student who is not an eligible Indian student 
     if--
       ``(A)(i) the Secretary determines that the student's 
     attendance will not adversely affect the school's program for 
     eligible Indian students because of cost, overcrowding, or 
     violation of standards or accreditation requirements; and
       ``(ii) the local school board consents; and
       ``(B)(i) the student is a dependent of a Bureau, Indian 
     Health Service, or tribal government employee who lives on or 
     near the school site; or
       ``(ii) tuition is paid for the student in an amount that is 
     not more than the amount of tuition charged by the nearest 
     public school district for out-of-district students, and is 
     paid in addition to the school's allotment under this 
     section.
       ``(3) Attendance of non-indian students at contract and 
     grant schools.--The school board of a contract or grant 
     school may permit students who are not eligible Indian 
     students to attend the contract or grant school. Any tuition 
     collected for those students shall be in addition to the 
     amount the school received under this section.
       ``(h) Funds Available Without Fiscal Year Limitation.--
     Notwithstanding any other provision of law, at the election 
     of the local school board of a Bureau school made at any time 
     during a fiscal year, a portion equal to not more than 15 
     percent of the funds allotted for the school under this 
     section for the fiscal year shall remain available to the 
     school for expenditure without fiscal year limitation. The 
     Assistant Secretary for Indian Affairs shall take such steps 
     as may be necessary to implement this subsection.
       ``(i) Students at Richfield Dormitory, Richfield, Utah.--
     Tuition for the instruction of each out-of-State Indian 
     student in a home-living situation at the Richfield dormitory 
     in Richfield, Utah, who attends Sevier County high schools in 
     Richfield, Utah, for an academic year, shall be paid from 
     Indian school equalization program funds authorized in this 
     section and section 1129, at a rate not to exceed the 
     weighted amount provided for under subsection (b) for a 
     student for that year. No additional administrative cost 
     funds shall be provided under this part to pay for 
     administrative costs relating to the instruction of the 
     students.

     ``SEC. 1127. ADMINISTRATIVE COST GRANTS.

       ``(a) Definitions.--In this section:
       ``(1) Administrative cost.--
       ``(A) In general.--The term `administrative cost' means the 
     cost of necessary administrative functions which--
       ``(i) the tribe or tribal organization incurs as a result 
     of operating a tribal elementary or secondary educational 
     program;
       ``(ii) are not customarily paid by comparable Bureau 
     operated programs out of direct program funds; and
       ``(iii) are either--
       ``(I) normally provided for comparable Bureau programs by 
     Federal officials using resources other than Bureau direct 
     program funds; or
       ``(II) are otherwise required of tribal self-determination 
     program operators by law or prudent management practice.
       ``(B) Inclusions.--The term `administrative cost' may 
     include--
       ``(i) contract or grant (or other agreement) 
     administration;
       ``(ii) executive, policy, and corporate leadership and 
     decisionmaking;
       ``(iii) program planning, development, and management;
       ``(iv) fiscal, personnel, property, and procurement 
     management;
       ``(v) related office services and record keeping; and
       ``(vi) costs of necessary insurance, auditing, legal, 
     safety and security services.
       ``(2) Bureau elementary and secondary functions.--The term 
     `Bureau elementary and secondary functions' means--
       ``(A) all functions funded at Bureau schools by the Office;
       ``(B) all programs--
       ``(i) funds for which are appropriated to other agencies of 
     the Federal Government; and
       ``(ii) which are administered for the benefit of Indians 
     through Bureau schools; and
       ``(C) all operation, maintenance, and repair funds for 
     facilities and government quarters used in the operation or 
     support of elementary and secondary education functions for 
     the benefit of Indians, from whatever source derived.
       ``(3) Direct cost base.--
       ``(A) In general.--Except as otherwise provided in 
     subparagraph (B), the direct cost base of a tribe or tribal 
     organization for the fiscal year is the aggregate direct cost 
     program funding for all tribal elementary or secondary 
     educational programs operated by the tribe or tribal 
     organization during--
       ``(i) the second fiscal year preceding such fiscal year; or
       ``(ii) if such programs have not been operated by the tribe 
     or tribal organization during the two preceding fiscal years, 
     the first fiscal year preceding such fiscal year.
       ``(B) Functions not previously operated.--In the case of 
     Bureau elementary or secondary education functions which have 
     not previously been operated by a tribe or tribal 
     organization under contract, grant, or agreement with the 
     Bureau, the direct cost base for the initial year shall be 
     the projected aggregate direct cost program funding for all 
     Bureau elementary and secondary functions to be operated by 
     the tribe or tribal organization during that fiscal year.
       ``(4) Maximum base rate.--The term `maximum base rate' 
     means 50 percent.
       ``(5) Minimum base rate.--The term `minimum base rate' 
     means 11 percent.
       ``(6) Standard direct cost base.--The term `standard direct 
     cost base' means $600,000.
       ``(7) Tribal elementary or secondary educational 
     programs.--The term `tribal elementary or secondary 
     educational programs' means all Bureau elementary and 
     secondary functions, together with any other Bureau programs 
     or portions of programs (excluding funds for social services 
     that are appropriated to agencies other than the Bureau and 
     are expended through the Bureau, funds for major 
     subcontracts, construction, and other major capital 
     expenditures, and unexpended funds carried over from prior 
     years) which share common administrative cost functions, that 
     are operated directly by a tribe or tribal organization under 
     a contract, grant, or agreement with the Bureau.
       ``(b) Grants; Effect Upon Appropriated Amounts.--
       ``(1) Grants.--
       ``(A) In general.--The Secretary shall provide a grant to 
     each tribe or tribal organization operating a contract or 
     grant school, in an amount determined under this section, for 
     the purpose of paying the administrative and indirect costs 
     incurred in operating the contract or grant school, in order 
     to--
       ``(i) enable the tribe or tribal organization operating the 
     school, without reducing direct program services to the 
     beneficiaries of the program, to provide all related 
     administrative overhead services and operations necessary to 
     meet the requirements of law and prudent management practice; 
     and
       ``(ii) carry out other necessary support functions that 
     would otherwise be provided by the Secretary or other Federal 
     officers or employees, from resources other than direct 
     program funds, in support of comparable Bureau operated 
     programs.

[[Page 7673]]

       ``(B) Amount.--No school operated as a stand-alone 
     institution shall receive less than $200,000 per year under 
     this paragraph.
       ``(2) Effect upon appropriated amounts.--Amounts 
     appropriated to fund the grants provided for under this 
     section shall be in addition to, and shall not reduce, the 
     amounts appropriated for the program being administered by 
     the contract or grant school.
       ``(c) Determination of Grant Amount.--
       ``(1) In general.--The amount of the grant provided to each 
     tribe or tribal organization under this section for each 
     fiscal year shall be determined by applying the 
     administrative cost percentage rate determined under 
     subsection (d) of the tribe or tribal organization to the 
     aggregate cost of the Bureau elementary and secondary 
     functions operated by the tribe or tribal organization for 
     which funds are received from or through the Bureau. The 
     administrative cost percentage rate does not apply to 
     programs not relating to such functions that are operated by 
     the tribe or tribal organization.
       ``(2) Direct cost base funds.--The Secretary shall--
       ``(A) reduce the amount of the grant determined under 
     paragraph (1) to the extent that payments for administrative 
     costs are actually received by a tribe or tribal organization 
     under any Federal education program that is included in the 
     direct cost base of the tribe or tribal organization; and
       ``(B) take such actions as may be necessary to be 
     reimbursed by any other department or agency of the Federal 
     Government (other than the Department of the Interior) for 
     the portion of grants made under this section for the costs 
     of administering any program for Indians that is funded by 
     appropriations made to such other department or agency.
       ``(3) Reductions.--If the total amount of funds necessary 
     to provide grants to tribes and tribal organizations in the 
     amounts determined under paragraph (1) and (2) for a fiscal 
     year exceeds the amount of funds appropriated to carry out 
     this section for such fiscal year, the Secretary shall reduce 
     the amount of each grant determined under this subsection for 
     such fiscal year by an amount that bears the same 
     relationship to such excess as the amount of such grants 
     determined under this subsection bears to the total of all 
     grants determined under this subsection for all tribes and 
     tribal organizations for such fiscal year.
       ``(d) Administrative Cost Percentage Rate.--
       ``(1) In general.--For purposes of this section, the 
     administrative cost percentage rate for a contract or grant 
     school for a fiscal year is equal to the percentage 
     determined by dividing--
       ``(A) the sum of--
       ``(i) the amount equal to--

       ``(I) the direct cost base of the tribe or tribal 
     organization for the fiscal year; multiplied by
       ``(II) the minimum base rate; plus

       ``(ii) the amount equal to--

       ``(I) the standard direct cost base; multiplied by
       ``(II) the maximum base rate; by

       ``(B) the sum of--
       ``(i) the direct cost base of the tribe or tribal 
     organization for the fiscal year; and
       ``(ii) the standard direct cost base.
       ``(2) Rounding.--The administrative cost percentage rate 
     shall be determined to \1/100\ of a percent.
       ``(e) Combining Funds.--
       ``(1) In general.--Funds received by a tribe, tribal 
     organization, or contract or grant school through grants made 
     under this section for tribal elementary or secondary 
     educational programs may be combined by the tribe, tribal 
     organization, or contract or grant school and placed into a 
     single administrative cost account without the necessity of 
     maintaining separate funding source accounting.
       ``(2) Indirect cost funds.--Indirect cost funds for 
     programs at the school that share common administrative 
     services with the tribal elementary or secondary educational 
     programs may be included in the administrative cost account 
     described in paragraph (1).
       ``(f) Availability of Funds.--Funds received through a 
     grant made under this section with respect to tribal 
     elementary or secondary educational programs at a contract or 
     grant school shall remain available to the contract or grant 
     school--
       ``(1) without fiscal year limitation; and
       ``(2) without reducing the amount of any grants otherwise 
     payable to the school under this section for any fiscal year 
     after the fiscal year for which the grant is provided.
       ``(g) Treatment of Funds.--Funds received through a grant 
     made under this section for Bureau funded programs operated 
     by a tribe or tribal organization under a contract or grant 
     shall not be taken into consideration for purposes of 
     indirect cost underrecovery and overrecovery determinations 
     by any Federal agency for any other funds, from whatever 
     source derived.
       ``(h) Treatment of Entity Operating Other Programs.--In 
     applying this section and section 106 of the Indian Self-
     Determination and Education Assistance Act with respect to an 
     Indian tribe or tribal organization that--
       ``(1) receives funds under this section for administrative 
     costs incurred in operating a contract or grant school or a 
     school operated under the Tribally Controlled Schools Act of 
     1988; and
       ``(2) operates one or more other programs under a contract 
     or grant provided under the Indian Self-Determination and 
     Education Assistance Act,

     the Secretary shall ensure that the Indian tribe or tribal 
     organization is provided with the full amount of the 
     administrative costs that are associated with operating the 
     contract or grant school, and of the indirect costs, that are 
     associated with all of such other programs, except that funds 
     appropriated for implementation of this section shall be used 
     only to supply the amount of the grant required to be 
     provided by this section.
       ``(i) Applicability to Schools Operating Under Tribally 
     Controlled Schools Act of 1988.--The provisions of this 
     section that apply to contract or grant schools shall also 
     apply to those schools receiving assistance under the 
     Tribally Controlled Schools Act of 1988.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this section.
       ``(k) Administrative Cost Grant Budget Requests.--
       ``(1) In general.--Beginning with President's annual budget 
     request under section 1105 of title 31, United States Code 
     for fiscal year 2002, and with respect to each succeeding 
     budget request, the Secretary shall submit to the appropriate 
     committees of Congress information and funding requests for 
     the full funding of administrative costs grants required to 
     be paid under this section.
       ``(2) Requirements.--
       ``(A) Funding for new conversions to contract or grant 
     school operations.--With respect to a budget request under 
     paragraph (1), the amount required to provide full funding 
     for an administrative cost grant for each tribe or tribal 
     organization expected to begin operation of a Bureau-funded 
     school as contract or grant school in the academic year 
     funded by such annual budget request, the amount so required 
     shall not be less than 10 percent of the amount required for 
     subparagraph (B).
       ``(B) Funding for continuing contract and grant school 
     operations.--With respect to a budget request under paragraph 
     (1), the amount required to provide full funding for an 
     administrative cost grant for each tribe or tribal 
     organization operating a contract or grant school at the time 
     the annual budget request is submitted, which amount shall 
     include the amount of funds required to provide full funding 
     for an administrative cost grant for each tribe or tribal 
     organization which began operation of a contract or grant 
     school with administrative cost grant funds supplied from the 
     amount described in subparagraph (A).

     ``SEC. 1128. DIVISION OF BUDGET ANALYSIS.

       ``(a) Establishment.--Not later than 12 months after the 
     date of enactment of the Native American Education 
     Improvement Act of 2001, the Secretary shall establish within 
     the Office of Indian Education Programs a Division of Budget 
     Analysis (referred to in this section as the `Division'). 
     Such Division shall be under the direct supervision and 
     control of the Director of the Office.
       ``(b) Functions.--In consultation with the tribal governing 
     bodies and local school boards the Director of the Office, 
     through the head of the Division, shall conduct studies, 
     surveys, or other activities to gather demographic 
     information on Bureau funded schools and project the amounts 
     necessary to provide to Indian students in such schools the 
     educational program set forth in this part.
       ``(c) Annual Reports.--Not later than the date that the 
     Assistant Secretary for Indian Affairs submits the annual 
     budget request as part of the President's annual budget 
     request under section 1105 of title 31, United States Code 
     for each fiscal year after the date of enactment of the 
     Native American Education Improvement Act of 2001, the 
     Director of the Office shall submit to the appropriate 
     committees of Congress (including the Committee on 
     Appropriations of the House of Representatives and the 
     Committee on Appropriations of the Senate), all Bureau funded 
     schools, and the tribal governing bodies relating to such 
     schools, a report that shall contain--
       ``(1) projections, based on the information gathered 
     pursuant to subsection (b) and any other relevant 
     information, of amounts necessary to provide to Indian 
     students in Bureau funded schools the educational program set 
     forth in this part;
       ``(2) a description of the methods and formulas used to 
     calculate the amounts projected pursuant to paragraph (1); 
     and
       ``(3) such other information as the Director of the Office 
     considers to be appropriate.
       ``(d) Use of Reports.--The Director of the Office and the 
     Assistant Secretary for Indian Affairs shall use the 
     information contained in the annual report required by 
     subsection (c) in preparing their annual budget requests.

     ``SEC. 1129. UNIFORM DIRECT FUNDING AND SUPPORT.

       ``(a) Establishment of System and Forward Funding.--
       ``(1) In general.--The Secretary shall establish, by 
     regulation adopted in accordance

[[Page 7674]]

     with section 1136, a system for the direct funding and 
     support of all Bureau funded schools. Such system shall allot 
     funds in accordance with section 1126. All amounts 
     appropriated for distribution in accordance with this section 
     shall be made available in accordance with paragraph (2).
       ``(2) Timing for use of funds.--
       ``(A) Availability.--For the purposes of affording adequate 
     notice of funding available pursuant to the allotments made 
     under section 1126 and the allotments of funds for operation 
     and maintenance of facilities, amounts appropriated in an 
     appropriations Act for any fiscal year for such allotments 
     shall become available for obligation by the affected schools 
     on July 1 of the fiscal year for which such allotments are 
     appropriated without further action by the Secretary, and 
     shall remain available for obligation through the succeeding 
     fiscal year.
       ``(B) Publications.--The Secretary shall, on the basis of 
     the amounts appropriated as described in this paragraph--
       ``(i) publish, not later than July 1 of the fiscal year for 
     which the amounts are appropriated, information indicating 
     the amount of the allotments to be made to each affected 
     school under section 1126, of 80 percent of such appropriated 
     amounts; and
       ``(ii) publish, not later than September 30 of such fiscal 
     year, information indicating the amount of the allotments to 
     be made under section 1126, from the remaining 20 percent of 
     such appropriated amounts, adjusted to reflect the actual 
     student attendance.

     Any overpayments made to tribal schools shall be returned to 
     the Secretary not later than 30 days after the final 
     determination that the school was overpaid pursuant to this 
     section.
       ``(3) Limitation.--
       ``(A) Expenditures.--Notwithstanding any other provision of 
     law (including a regulation), the supervisor of a Bureau 
     school may expend an aggregate of not more than $50,000 of 
     the amount allotted to the school under section 1126 to 
     acquire materials, supplies, equipment, operation services, 
     maintenance services, and other services for the school, and 
     amounts received as operations and maintenance funds, funds 
     received from the Department of Education, or funds received 
     from other Federal sources, without competitive bidding if--
       ``(i) the cost for any single item acquired does not exceed 
     $15,000;
       ``(ii) the school board approves the acquisition;
       ``(iii) the supervisor certifies that the cost is fair and 
     reasonable;
       ``(iv) the documents relating to the acquisition executed 
     by the supervisor of the school or other school staff cite 
     this paragraph as authority for the acquisition; and
       ``(v) the acquisition transaction is documented in a 
     journal maintained at the school that clearly identifies when 
     the transaction occurred, the item that was acquired and from 
     whom, the price paid, the quantities acquired, and any other 
     information the supervisor or the school board considers to 
     be relevant.
       ``(B) Notice.--Not later than 6 months after the date of 
     enactment of the Native American Education Improvement Act of 
     2001, the Secretary shall send notice of the provisions of 
     this paragraph to each supervisor of a Bureau school and 
     associated school board chairperson, the education line 
     officer of each agency and area, and the Bureau division in 
     charge of procurement, at both the local and national levels.
       ``(C) Application and guidelines.--The Director of the 
     Office shall be responsible for--
       ``(i) determining the application of this paragraph, 
     including the authorization of specific individuals to carry 
     out this paragraph;
       ``(ii) ensuring that there is at least 1 such individual at 
     each Bureau facility; and
       ``(iii) the provision of guidelines on the use of this 
     paragraph and adequate training on such guidelines.
       ``(b) Local Financial Plans for Expenditure of Funds.--
       ``(1) Plan required.--
       ``(A) In general.--Each Bureau school that receives an 
     allotment under section 1126 shall prepare a local financial 
     plan that specifies the manner in which the school will 
     expend the funds made available under the allotment and 
     ensures that the school will meet the accreditation 
     requirements or standards for the school pursuant to section 
     1121.
       ``(B) Requirement.--A local financial plan under 
     subparagraph (A) shall comply with all applicable Federal and 
     tribal laws.
       ``(C) Preparation and revision.--The financial plan for a 
     school under subparagraph (A) shall be prepared by the 
     supervisor of the school in active consultation with the 
     local school board for the school. The local school board for 
     each school shall have the authority to ratify, reject, or 
     amend such financial plan and, at the initiative of the local 
     school board or in response to the supervisor of the school, 
     to revise such financial plan to meet needs not foreseen at 
     the time of preparation of the financial plan.
       ``(D) Role of supervisor.--The supervisor of the school--
       ``(i) shall put into effect the decisions of the school 
     board relating to the financial plan under subparagraph (A); 
     and
       ``(ii) shall provide the appropriate local union 
     representative of the education employees of the school with 
     copies of proposed financial plans relating to the school and 
     all modifications and proposed modifications to the plans, 
     and at the same time submit such copies to the local school 
     board.
       ``(iii) may appeal any such action of the local school 
     board to the appropriate education line officer of the Bureau 
     agency by filing a written statement describing the action 
     and the reasons the supervisor believes such action should be 
     overturned.

     A copy of the statement under clause (iii) shall be submitted 
     to the local school board and such board shall be afforded an 
     opportunity to respond, in writing, to such appeal. After 
     reviewing such written appeal and response, the appropriate 
     education line officer may, for good cause, overturn the 
     action of the local school board. The appropriate education 
     line officer shall transmit the determination of such appeal 
     in the form of a written opinion to such board and to such 
     supervisor identifying the reasons for overturning such 
     action.
       ``(2) Requirement.--A Bureau school shall expend amounts 
     received under an allotment under section 1126 in accordance 
     with the local financial plan prepared under paragraph (1).
       ``(c) Tribal Division of Education, Self-Determination 
     Grant and Contract Funds.--The Secretary may approve 
     applications for funding tribal divisions of education and 
     developing tribal codes of education, from funds made 
     available pursuant to section 103(a) of the Indian Self-
     Determination and Education Assistance Act.
       ``(d) Technical Assistance and Training.--A local school 
     board may, in the exercise of the authority of the school 
     board under this section, request technical assistance and 
     training from the Secretary. The Secretary shall, to the 
     greatest extent possible, provide such assistance and 
     training, and make appropriate provision in the budget of the 
     Office for such assistance and training.
       ``(e) Summer Program of Academic and Support Services.--
       ``(1) In general.--A financial plan prepared under 
     subsection (b) for a school may include, at the discretion of 
     the supervisor and the local school board of such school, a 
     provision for funding a summer program of academic and 
     support services for students of the school. Any such program 
     may include activities related to the prevention of alcohol 
     and substance abuse. The Assistant Secretary for Indian 
     Affairs shall provide for the utilization of facilities of 
     the school for such program during any summer in which such 
     utilization is requested.
       ``(2) Use of other funds.--Notwithstanding any other 
     provision of law, funds authorized under the Act of April 16, 
     1934 (commonly known as the `Johnson-O'Malley Act'; 48 Stat. 
     596, chapter 147) and this Act may be used to augment the 
     services provided in each summer program referred to in 
     paragraph (1) at the option of the tribe or school receiving 
     such funds. The augmented services shall be under the control 
     of the tribe or school.
       ``(3) Technical assistance and program coordination.--The 
     Assistant Secretary for Indian Affairs, acting through the 
     Director of the Office, shall provide technical assistance 
     and coordination of activities for any program described in 
     paragraph (1) and shall, to the extent possible, encourage 
     the coordination of such programs with any other summer 
     programs that might benefit Indian youth, regardless of the 
     funding source or administrative entity of such programs.
       ``(f) Cooperative Agreements.--
       ``(1) In general.--From funds allotted to a Bureau school 
     under section 1126, the Secretary shall, if specifically 
     requested by the appropriate tribal governing body, implement 
     a cooperative agreement that is entered into between the 
     tribe, the Bureau, the local school board, and a local public 
     school district that meets the requirements of paragraph (2) 
     and involves the school. The tribe, the Bureau, the school 
     board, and the local public school district shall determine 
     the terms of the agreement.
       ``(2) Coordination provisions.--An agreement under 
     paragraph (1) may, with respect to the Bureau school and 
     schools in the school district involved, encompass 
     coordination of all or any part of the following:
       ``(A) The academic program and curriculum, unless the 
     Bureau school is accredited by a State or regional 
     accrediting entity and would not continue to be so accredited 
     if the agreement encompassed the program and curriculum.
       ``(B) Support services, including procurement and 
     facilities maintenance.
       ``(C) Transportation.
       ``(3) Equal benefit and burden.--
       ``(A) In general.--Each agreement entered into pursuant to 
     the authority provided in paragraph (1) shall confer a 
     benefit upon the Bureau school commensurate with the burden 
     assumed by the school.
       ``(B) Limitation.--Subparagraph (A) shall not be construed 
     to require equal expenditures, or an exchange of similar 
     services, by the Bureau school and schools in the school 
     district.

[[Page 7675]]

       ``(g) Product or Result of Student Projects.--
     Notwithstanding any other provision of law, where there is 
     agreement on action between the superintendent and the school 
     board of a Bureau funded school, the product or result of a 
     project conducted in whole or in major part by a student may 
     be given to that student upon the completion of such project.
       ``(h) Matching Fund Requirements.--
       ``(1) Not considered federal funds.--Notwithstanding any 
     other provision of law, funds received by a Bureau funded 
     school under this title for education-related activities (not 
     including funds for construction, maintenance, and facilities 
     improvement or repair) shall not be considered Federal funds 
     for the purposes of a matching funds requirement for any 
     Federal program.
       ``(2) Nonapplication of requirements.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, no requirement relating to the provision of matching 
     funds or the provision of services or in-kind activity as a 
     condition of participation in a program or project or receipt 
     of a grant, shall apply to a Bureau funded school unless the 
     provision of law authorizing such requirement specifies that 
     such requirement applies to such a school.
       ``(B) Limitation.--In considering an application from a 
     Bureau funded school for participation in a program or 
     project that has a requirement described in subparagraph (A), 
     the entity administering such program or project or awarding 
     such grant shall not give positive or negative weight to such 
     application based solely on the provisions of this paragraph. 
     Such an application shall be considered as if it fully met 
     any matching requirement.

     ``SEC. 1130. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

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

     ``SEC. 1131. INDIAN EDUCATION PERSONNEL.

       ``(a) Definitions.--In this section:
       ``(1) Education position.--The term `education position' 
     means a position in the Bureau the duties and 
     responsibilities of which--
       ``(A) are performed on a school-year basis principally in a 
     Bureau school and involve--
       ``(i) classroom or other instruction or the supervision or 
     direction of classroom or other instruction;
       ``(ii) any activity (other than teaching) that requires 
     academic credits in educational theory and practice equal to 
     the academic credits in educational theory and practice 
     required for a bachelor's degree in education from an 
     accredited institution of higher education;
       ``(iii) any activity in or related to the field of 
     education, whether or not academic credits in educational 
     theory and practice are a formal requirement for the conduct 
     of such activity; or
       ``(iv) provision of support services at, or associated 
     with, the site of the school; or
       ``(B) are performed at the agency level of the Bureau and 
     involve the implementation of education-related programs, 
     other than the position of agency superintendent for 
     education.
       ``(2) Educator.--The term `educator' means an individual 
     whose services are required, or who is employed, in an 
     education position.
       ``(b) Civil Service Authorities Inapplicable.--Chapter 51, 
     subchapter III of chapter 53, and chapter 63 of title 5, 
     United States Code, relating to classification, pay, and 
     leave, respectively, and the sections of such title relating 
     to the appointment, promotion, hours of work, and removal of 
     civil service employees, shall not apply to educators or to 
     education positions.
       ``(c) Regulations.--Not later than 60 days after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Secretary shall prescribe regulations to carry 
     out this section. Such regulations shall include provisions 
     relating to--
       ``(1) the establishment of education positions;
       ``(2) the establishment of qualifications for educators and 
     education personnel;
       ``(3) the fixing of basic compensation for educators and 
     education positions;
       ``(4) the appointment of educators;
       ``(5) the discharge of educators;
       ``(6) the entitlement of educators to compensation;
       ``(7) the payment of compensation to educators;
       ``(8) the conditions of employment of educators;
       ``(9) the leave system for educators;
       ``(10) the length of the school year applicable to 
     education positions described in subsection (a)(1)(A); and
       ``(11) such matters as may be appropriate.
       ``(d) Qualifications of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the qualifications of educators, the Secretary shall 
     require--
       ``(A) that lists of qualified and interviewed applicants 
     for education positions be maintained in the appropriate 
     agency or area office of the Bureau or, in the case of 
     individuals applying at the national level, the Office;
       ``(B)(i) that a local school board have the authority to 
     waive, on a case-by-case basis, any formal education or 
     degree qualification established by regulation, in order for 
     a tribal member to be hired in an education position to teach 
     courses on tribal culture and language; and
       ``(ii) that a determination by a local school board that 
     such a tribal member be hired shall be instituted by the 
     supervisor of the school involved; and
       ``(C) that it shall not be a prerequisite to the employment 
     of an individual in an education position at the local 
     level--
       ``(i) that such individual's name appear on a list 
     maintained pursuant to subparagraph (A); or
       ``(ii) that such individual have applied at the national 
     level for an education position.
       ``(2) Exception for certain temporary employment.--The 
     Secretary may authorize the temporary employment in an 
     education position of an individual who has not met the 
     certification standards established pursuant to regulations, 
     if the Secretary determines that failure to authorize the 
     employment would result in that position remaining vacant.
       ``(e) Hiring of Educators.--
       ``(1) Requirements.--In prescribing regulations to govern 
     the appointment of educators, the Secretary shall require--
       ``(A)(i)(I) that educators employed in a Bureau school 
     (other than the supervisor of the school) shall be hired by 
     the supervisor of the school; and
       ``(II) that, in a case in which there are no qualified 
     applicants available to fill a vacancy at a Bureau school, 
     the supervisor may consult a list maintained pursuant to 
     subsection (d)(1)(A);
       ``(ii) each supervisor of a Bureau school shall be hired by 
     the education line officer of the agency office of the Bureau 
     for the jurisdiction in which the school is located;
       ``(iii) each educator employed in an agency office of the 
     Bureau shall be hired by the superintendent for education of 
     the agency office; and
       ``(iv) each education line officer and educator employed in 
     the office of the Director of the Office shall be hired by 
     the Director;
       ``(B)(i) that, before an individual is employed in an 
     education position in a Bureau school by the supervisor of 
     the school (or, with respect to the position of supervisor, 
     by the appropriate agency education line officer), the local 
     school board for the school shall be consulted; and
       ``(ii) that a determination by such school board, as 
     evidenced by school board records, that such individual 
     should or should not be so employed shall be instituted by 
     the supervisor (or with respect to the position of 
     supervisor, by the superintendent for education of the agency 
     office);
       ``(C)(i) that, before an individual is employed in an 
     education position in an agency or area office of the Bureau, 
     the appropriate agency school board shall be consulted; and
       ``(ii) that a determination by such school board, as 
     evidenced by school board records, that such individual 
     should or should not be employed shall be instituted by the 
     superintendent for education of the agency office; and
       ``(D) that all employment decisions or actions be in 
     compliance with all applicable Federal, State and tribal 
     laws.
       ``(2) Information regarding application at national 
     level.--
       ``(A) In general.--Any individual who applies at the local 
     level for an education position shall state on such 
     individual's application whether or not such individual has 
     applied at the national level for an education position.
       ``(B) Effect of inaccurate statement.--If an individual 
     described in subparagraph (A) is employed at the local level, 
     such individual's name shall be immediately forwarded

[[Page 7676]]

     to the Secretary by the local employer. The Secretary shall, 
     as soon as practicable but in no event later than 30 days 
     after the receipt of the name, ascertain the accuracy of the 
     statement made by such individual pursuant to subparagraph 
     (A). Notwithstanding subsection (g), if the Secretary finds 
     that the individual's statement was false, such individual, 
     at the Secretary's discretion, may be disciplined or 
     discharged.
       ``(C) Effect of application at national level.--If an 
     individual described in subparagraph (A) has applied at the 
     national level for an education position, the appointment of 
     such individual at the local level shall be conditional for a 
     period of 90 days. During that period, the Secretary may 
     appoint a more qualified individual (as determined by the 
     Secretary) from a list maintained pursuant to subsection 
     (e)(1)(A) to the position to which such individual was 
     appointed.
       ``(3) Statutory construction.--Except as expressly 
     provided, nothing in this section shall be construed as 
     conferring upon local school boards authority over, or 
     control of, educators at Bureau funded schools or the 
     authority to issue management decisions.
       ``(4) Appeals.--
       ``(A) By supervisor.--The supervisor of a school may appeal 
     to the appropriate agency education line officer any 
     determination by the local school board for the school that 
     an individual be employed, or not be employed, in an 
     education position in the school (other than that of 
     supervisor) by filing a written statement describing the 
     determination and the reasons the supervisor believes such 
     determination should be overturned. A copy of such statement 
     shall be submitted to the local school board and such board 
     shall be afforded an opportunity to respond, in writing, to 
     such appeal. After reviewing such written appeal and 
     response, the education line officer may, for good cause, 
     overturn the determination of the local school board. The 
     education line officer shall transmit the determination of 
     such appeal in the form of a written opinion to such board 
     and to such supervisor identifying the reasons for 
     overturning such determination.
       ``(B) By education line officer.--The education line 
     officer of an agency office of the Bureau may appeal to the 
     Director of the Office any determination by the local school 
     board for the school that an individual be employed, or not 
     be employed, as the supervisor of a school by filing a 
     written statement describing the determination and the 
     reasons the supervisor believes such determination should be 
     overturned. A copy of such statement shall be submitted to 
     the local school board and such board shall be afforded an 
     opportunity to respond, in writing, to such appeal. After 
     reviewing such written appeal and response, the Director may, 
     for good cause, overturn the determination of the local 
     school board. The Director shall transmit the determination 
     of such appeal in the form of a written opinion to such board 
     and to such education line officer identifying the reasons 
     for overturning such determination.
       ``(5) Other appeals.--The education line officer of an 
     agency office of the Bureau may appeal to the Director of the 
     Office any determination by the agency school board that an 
     individual be employed, or not be employed, in an education 
     position in such agency office by filing a written statement 
     describing the determination and the reasons the supervisor 
     believes such determination should be overturned. A copy of 
     such statement shall be submitted to the agency school board 
     and such board shall be afforded an opportunity to respond, 
     in writing, to such appeal. After reviewing such written 
     appeal and response, the Director may, for good cause, 
     overturn the determination of the agency school board. The 
     Director shall transmit the determination of such appeal in 
     the form of a written opinion to such board and to such 
     education line officer identifying the reasons for 
     overturning such determination.
       ``(f) Discharge and Conditions of Employment of 
     Educators.--
       ``(1) Regulations.--In prescribing regulations to govern 
     the discharge and conditions of employment of educators, the 
     Secretary shall require--
       ``(A) that procedures shall be established for the rapid 
     and equitable resolution of grievances of educators;
       ``(B) that no educator may be discharged without notice of 
     the reasons for the discharge and an opportunity for a 
     hearing under procedures that comport with the requirements 
     of due process; and
       ``(C) that each educator employed in a Bureau school shall 
     be notified 30 days prior to the end of an academic year 
     whether the employment contract of the individual will be 
     renewed for the following year.
       ``(2) Procedures for discharge.--
       ``(A) Determinations.--The supervisor of a Bureau school 
     may discharge (subject to procedures established under 
     paragraph (1)(B)) for cause (as determined under regulations 
     prescribed by the Secretary) any educator employed in such 
     school. On giving notice to an educator of the supervisor's 
     intention to discharge the educator, the supervisor shall 
     immediately notify the local school board of the proposed 
     discharge. A determination by the local school board that 
     such educator shall not be discharged shall be followed by 
     the supervisor.
       ``(B) Appeals.--The supervisor shall have the right to 
     appeal a determination by a local school board under 
     subparagraph (A), as evidenced by school board records, not 
     to discharge an educator to the education line officer of the 
     appropriate agency office of the Bureau. Upon hearing such an 
     appeal, the agency education line officer may, for good 
     cause, issue a decision overturning the determination of the 
     local school board with respect to the employment of such 
     individual. The education line officer shall make the 
     decision in writing and submit the decision to the local 
     school board.
       ``(3) Recommendations of school boards for discharge.--Each 
     local school board for a Bureau school shall have the right--
       ``(A) to recommend to the supervisor that an educator 
     employed in the school be discharged; and
       ``(B) to recommend to the education line officer of the 
     appropriate agency office of the Bureau and to the Director 
     of the Office, that the supervisor of the school be 
     discharged.
       ``(g) Applicability of Indian Preference Laws.--
       ``(1) In general.--Notwithstanding any provision of the 
     Indian preference laws, such laws shall not apply in the case 
     of any personnel action carried out under this section with 
     respect to an applicant or employee not entitled to an Indian 
     preference if each tribal organization concerned grants a 
     written waiver of the application of such laws with respect 
     to such personnel action and states that such waiver is 
     necessary. This paragraph shall not be construed to relieve 
     the Bureau's responsibility to issue timely and adequate 
     announcements and advertisements concerning any such 
     personnel action if such action is intended to fill a vacancy 
     (no matter how such vacancy is created).
       ``(2) Definitions.--In this subsection:
       ``(A) Indian preference laws.--The term `Indian preference 
     laws' means section 12 of the Act of June 18, 1934 (48 Stat. 
     986, chapter 576) or any other provision of law granting a 
     preference to Indians in promotions and other personnel 
     actions. Such term shall not include section 7(b) of the 
     Indian Self-Determination and Education Assistance Act.
       ``(B) Tribal organization.--The term `tribal organization' 
     means--
       ``(i) the recognized governing body of any Indian tribe, 
     band, nation, pueblo, or other organized community, including 
     a Native village (as defined in section 3(c) of the Alaska 
     Native Claims Settlement Act); or
       ``(ii) in connection with any personnel action referred to 
     in this subsection, any local school board to which the 
     governing body has delegated the authority to grant a waiver 
     under this subsection with respect to a personnel action.
       ``(h) Compensation or Annual Salary.--
       ``(1) In general.--
       ``(A) Compensation for educators and education positions.--
     Except as otherwise provided in this section, the Secretary 
     shall establish the compensation or annual salary rate for 
     educators and education positions--
       ``(i) at rates in effect under the General Schedule for 
     individuals with comparable qualifications, and holding 
     comparable positions, to whom chapter 51 of title 5, United 
     States Code, is applicable; or
       ``(ii) on the basis of the Federal Wage System schedule in 
     effect for the locality involved, and for the comparable 
     positions, at the rates of compensation in effect for the 
     senior executive service.
       ``(B) Compensation or salary for teachers and counselors.--
     The Secretary shall establish the rate of compensation, or 
     annual salary rate, for the positions of teachers and 
     counselors (including dormitory counselors and home-living 
     counselors) at the rate of compensation applicable (on the 
     date of enactment of the Native American Education 
     Improvement Act of 2001 and thereafter) for comparable 
     positions in the overseas schools under the Defense 
     Department Overseas Teachers Pay and Personnel Practices Act. 
     The Secretary shall allow the local school boards involved 
     authority to implement only the aspects of the Defense 
     Department Overseas Teachers Pay and Personnel Practices Act 
     pay provisions that are considered essential for recruitment 
     and retention of teachers and counselors. Implementation of 
     such provisions shall not be construed to require the 
     implementation of that entire Act.
       ``(C) Rates for new hires.--
       ``(i) In general.--Beginning with the first fiscal year 
     following the date of enactment of the Native American 
     Education Improvement Act of 2001, each local school board of 
     a Bureau school may establish a rate of compensation or 
     annual salary rate described in clause (ii) for teachers and 
     counselors (including academic counselors) who are new hires 
     at the school and who had not worked at the school, as of the 
     first day of such fiscal year.
       ``(ii) Consistent rates.--The rates established under 
     clause (i) shall be consistent with the rates paid for 
     individuals in the same positions, with the same tenure and 
     training, as the teachers and counselors, in any other school 
     within whose boundaries the Bureau school is located.
       ``(iii) Decreases.--In an instance in which the 
     establishment of rates under clause (i)

[[Page 7677]]

     causes a reduction in compensation at a school from the rate 
     of compensation that was in effect for the first fiscal year 
     following the date of enactment of the Native American 
     Education Improvement Act of 2001, the new rates of 
     compensation may be applied to the compensation of employees 
     of the school who worked at the school as of such date of 
     enactment by applying those rates at each contract renewal 
     for the employees so that the reduction takes effect in 3 
     equal installments.
       ``(iv) Increases.--In an instance in which the 
     establishment of such rates at a school causes an increase in 
     compensation from the rate of compensation that was in effect 
     for the first fiscal year following the date of enactment of 
     the Native American Education Improvement Act of 2001, the 
     school board may apply the new rates at the next contract 
     renewal so that either--

       ``(I) the entire increase occurs on 1 date; or
       ``(II) the increase takes effect in 3 equal installments.

       ``(D) Established regulations, procedures, and 
     arrangements.--
       ``(i) Promotions and advancements.--The establishment of 
     rates of compensation and annual salary rates under 
     subparagraphs (B) and (C) shall not preclude the use of 
     regulations and procedures used by the Bureau prior to April 
     28, 1988, in making determinations regarding promotions and 
     advancements through levels of pay that are based on the 
     merit, education, experience, or tenure of an educator.
       ``(ii) Continued employment or compensation.--The 
     establishment of rates of compensation and annual salary 
     rates under subparagraphs (B) and (C) shall not affect the 
     continued employment or compensation of an educator who was 
     employed in an education position on October 31, 1979, and 
     who did not make an election under subsection (o), as in 
     effect on January 1, 1990.
       ``(2) Post differential rates.--
       ``(A) In general.--The Secretary may pay a post 
     differential rate not to exceed 25 percent of the rate of 
     compensation, for educators or education positions, on the 
     basis of conditions of environment or work that warrant 
     additional pay, as a recruitment and retention incentive.
       ``(B) Supervisor's authority.--
       ``(i) In general.--Except as provided in clause (ii) on the 
     request of the supervisor and the local school board of a 
     Bureau school, the Secretary shall grant the supervisor of 
     the school authorization to provide 1 or more post 
     differential rates under subparagraph (A).
       ``(ii) Exception.--The Secretary shall disapprove, or 
     approve with a modification, a request for authorization to 
     provide a post differential rate if the Secretary determines 
     for clear and convincing reasons (and advises the board in 
     writing of those reasons) that the rate should be disapproved 
     or decreased because the disparity of compensation between 
     the appropriate educators or positions in the Bureau school, 
     and the comparable educators or positions at the nearest 
     public school, is--

       ``(I)(aa) at least 5 percent; or
       ``(bb) less than 5 percent; and
       ``(II) does not affect the recruitment or retention of 
     employees at the school.

       ``(iii) Approval of requests.--A request made under clause 
     (i) shall be considered to be approved at the end of the 60th 
     day after the request is received in the Central Office of 
     the Bureau unless before that time the request is approved, 
     approved with a modification, or disapproved by the 
     Secretary.
       ``(iv) Discontinuation of or decrease in rates.--The 
     Secretary or the supervisor of a Bureau school may 
     discontinue or decrease a post differential rate provided for 
     under this paragraph at the beginning of an academic year 
     if--

       ``(I) the local school board requests that such 
     differential be discontinued or decreased; or
       ``(II) the Secretary or the supervisor, respectively, 
     determines for clear and convincing reasons (and advises the 
     board in writing of those reasons) that there is no disparity 
     of compensation that would affect the recruitment or 
     retention of employees at the school after the differential 
     is discontinued or decreased.

       ``(v) Reports.--On or before February 1 of each year, the 
     Secretary shall submit to Congress a report describing the 
     requests and approvals of authorization made under this 
     paragraph during the previous year and listing the positions 
     receiving post differential rates under contracts entered 
     into under those authorizations.
       ``(i) Liquidation of Remaining Leave Upon Termination.--
     Upon termination of employment with the Bureau, any annual 
     leave remaining to the credit of an individual within the 
     purview of this section shall be liquidated in accordance 
     with sections 5551(a) and 6306 of title 5, United States 
     Code, except that leave earned or accrued under regulations 
     prescribed pursuant to subsection (c)(9) shall not be so 
     liquidated.
       ``(j) Transfer of Remaining Leave Upon Transfer, Promotion, 
     or Reemployment.--In the case of any educator who--
       ``(1) is transferred, promoted, or reappointed, without a 
     break in service, to a position in the Federal Government 
     under a different leave system than the system for leave 
     described in subsection (c)(9); and
       ``(2) earned or was credited with leave under the 
     regulations prescribed under subsection (c)(9) and has such 
     leave remaining to the credit of such educator;

     such leave shall be transferred to such educator's credit in 
     the employing agency for the position on an adjusted basis in 
     accordance with regulations that shall be prescribed by the 
     Director of the Office of Personnel Management.
       ``(k) Ineligibility for Employment of Voluntarily 
     Terminated Educators.--An educator who voluntarily terminates 
     employment under an employment contract with the Bureau 
     before the expiration of the employment contract shall not be 
     eligible to be employed in another education position in the 
     Bureau during the remainder of the term of such contract.
       ``(l) Dual Compensation.--In the case of any educator 
     employed in an education position described in subsection 
     (a)(1)(A) who--
       ``(1) is employed at the end of an academic year;
       ``(2) agrees in writing to serve in such position for the 
     next academic year; and
       ``(3) is employed in another position during the recess 
     period immediately preceding such next academic year, or 
     during such recess period receives additional compensation 
     referred to in section 5533 of title 5, United States Code, 
     relating to dual compensation;

     such section 5533 shall not apply to such educator by reason 
     of any such employment during the recess period with respect 
     to any receipt of additional compensation.
       ``(m) Voluntary Services.--Notwithstanding section 1342 of 
     title 31, United States Code, the Secretary may, subject to 
     the approval of the local school boards concerned, accept 
     voluntary services on behalf of Bureau schools. Nothing in 
     this part shall be construed to require Federal employees to 
     work without compensation or to allow the use of volunteer 
     services to displace or replace Federal employees. An 
     individual providing volunteer services under this section 
     shall be considered to be a Federal employee only for 
     purposes of chapter 81 of title 5, United States Code, and 
     chapter 171 of title 28, United States Code.
       ``(n) Proration of Pay.--
       ``(1) Election of employee.--Notwithstanding any other 
     provision of law, including laws relating to dual 
     compensation, the Secretary, at the election of an educator, 
     shall prorate the salary of the educator for an academic year 
     over a 12-month period. Each educator employed for the 
     academic year shall annually elect to be paid on a 12-month 
     basis or for those months while school is in session. No 
     educator shall suffer a loss of pay or benefits, including 
     benefits under unemployment or other Federal or federally 
     assisted programs, because of such election.
       ``(2) Change of election.--During the course of such 
     academic year, the employee may change the election made 
     under paragraph (1) once.
       ``(3) Lump-sum payment.--That portion of the employee's pay 
     that would be paid between academic years may be paid in a 
     lump sum at the election of the employee.
       ``(4) Application.--This subsection applies to educators, 
     whether employed under this section or title 5, United States 
     Code.
       ``(o) Extracurricular Activities.--
       ``(1) Stipend.--Notwithstanding any other provision of law, 
     the Secretary may provide, for Bureau employees in each 
     Bureau area, a stipend in lieu of overtime premium pay or 
     compensatory time off for overtime work. Any employee of the 
     Bureau who performs overtime work that consists of additional 
     activities to provide services to students or otherwise 
     support the school's academic and social programs may elect 
     to be compensated for all such work on the basis of the 
     stipend. Such stipend shall be paid as a supplement to the 
     employee's base pay.
       ``(2) Election not to receive stipend.--If an employee 
     elects not to be compensated through the stipend established 
     by this subsection, the appropriate provisions of title 5, 
     United States Code, shall apply with respect to the work 
     involved.
       ``(3) Application.--This subsection applies to Bureau 
     employees, whether employed under this section or title 5, 
     United States Code.
       ``(p) Covered Individuals; Election.--This section shall 
     apply with respect to any educator hired after November 1, 
     1979 (and to any educator who elected to be covered under 
     this section or a corresponding provision after November 1, 
     1979) and to the position in which such educator is employed. 
     The enactment of this section shall not affect the continued 
     employment of an individual employed on October 31, 1979 in 
     an education position, or such person's right to receive the 
     compensation attached to such position.
       ``(q) Furlough Without Consent.--
       ``(1) In general.--An educator who was employed in an 
     education position on October 31, 1979, who was eligible to 
     make an election under subsection (p) at that time, and who 
     did not make the election under such subsection, may not be 
     placed on furlough (within the meaning of section 7511(a)(5) 
     of title 5, United States Code, without the consent of such 
     educator for an aggregate of more than 4 weeks within the 
     same calendar year, unless--

[[Page 7678]]

       ``(A) the supervisor, with the approval of the local school 
     board (or of the education line officer upon appeal under 
     paragraph (2)), of the Bureau school at which such educator 
     provides services determines that a longer period of furlough 
     is necessary due to an insufficient amount of funds available 
     for personnel compensation at such school, as determined 
     under the financial plan process as determined under section 
     1129(b); and
       ``(B) all educators (other than principals and clerical 
     employees) providing services at such Bureau school are 
     placed on furloughs of equal length, except that the 
     supervisor, with the approval of the local school board (or 
     of the agency education line officer upon appeal under 
     paragraph (2)), may continue 1 or more educators in pay 
     status if--
       ``(i) such educators are needed to operate summer programs, 
     attend summer training sessions, or participate in special 
     activities including curriculum development committees; and
       ``(ii) such educators are selected based upon such 
     educator's qualifications after public notice of the minimum 
     qualifications reasonably necessary and without 
     discrimination as to supervisory, nonsupervisory, or other 
     status of the educators who apply.
       ``(2) Appeals.--The supervisor of a Bureau school may 
     appeal to the appropriate agency education line officer any 
     refusal by the local school board to approve any 
     determination of the supervisor that is described in 
     paragraph (1)(A) by filing a written statement describing the 
     determination and the reasons the supervisor believes such 
     determination should be approved. A copy of such statement 
     shall be submitted to the local school board and such board 
     shall be afforded an opportunity to respond, in writing, to 
     such appeal. After reviewing such written appeal and 
     response, the education line officer may, for good cause, 
     approve the determination of the supervisor. The educational 
     line officer shall transmit the determination of such appeal 
     in the form of a written opinion to such local school board 
     and to the supervisor identifying the reasons for approving 
     such determination.
       ``(r) Stipends.--The Secretary is authorized to provide 
     annual stipends to teachers who become certified by the 
     National Board of Professional Teaching Standards.

     ``SEC. 1132. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

       ``(a) In General.--Not later than 12 months after the date 
     of enactment of the Native American Education Improvement Act 
     of 2001, the Secretary shall update the computerized 
     management information system within the Office. The 
     information to be updated shall include information 
     regarding--
       ``(1) student enrollment;
       ``(2) curricula;
       ``(3) staffing;
       ``(4) facilities;
       ``(5) community demographics;
       ``(6) student assessment information;
       ``(7) information on the administrative and program costs 
     attributable to each Bureau program, divided into discrete 
     elements;
       ``(8) relevant reports;
       ``(9) personnel records;
       ``(10) finance and payroll; and
       ``(11) such other items as the Secretary determines to be 
     appropriate.
       ``(b) Implementation of System.--Not later than July 1 
     2003, the Secretary shall complete the implementation of the 
     updated computerized management information system at each 
     Bureau field office and Bureau funded school.

     ``SEC. 1133. RECRUITMENT OF INDIAN EDUCATORS.

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

     ``SEC. 1134. ANNUAL REPORT; AUDITS.

       ``(a) Annual Reports.--The Secretary shall submit to each 
     appropriate committee of Congress, all Bureau funded schools, 
     and the tribal governing bodies of such schools, a detailed 
     annual report on the state of education within the Bureau and 
     any problems encountered in Indian education during the 
     period covered by the report. Such report shall contain 
     suggestions for the improvement of the Bureau educational 
     system and for increasing tribal or local Indian control of 
     such system. Such report shall also include information on 
     the status of tribally controlled community colleges.
       ``(b) Budget Request.--The annual budget request for the 
     Bureau's education programs, as submitted as part of the 
     President's next annual budget request under section 1105 of 
     title 31, United States Code shall include the plans required 
     by sections 1121(c), 1122(c), and 1124(c).
       ``(c) Financial and Compliance Audits.--The Inspector 
     General of the Department of the Interior shall establish a 
     system to ensure that financial and compliance audits are 
     conducted for each Bureau school at least once in every 3 
     years. Such an audit of a Bureau school shall examine the 
     extent to which such school has complied with the local 
     financial plan prepared by the school under section 1129(b).
       ``(d) Administrative Evaluation of Schools.--The Director 
     shall, at least once every 3 to 5 years, conduct a 
     comprehensive evaluation of Bureau operated schools. Such 
     evaluation shall be in addition to any other program review 
     or evaluation that may be required under Federal law.

     ``SEC. 1135. RIGHTS OF INDIAN STUDENTS.

       ``The Secretary shall prescribe such rules and regulations 
     as may be necessary to ensure the protection of the 
     constitutional and civil rights of Indian students attending 
     Bureau funded schools, including such students' right to 
     privacy under the laws of the United States, such students' 
     right to freedom of religion and expression, and such 
     students' right to due process in connection with 
     disciplinary actions, suspensions, and expulsions.

     ``SEC. 1136. REGULATIONS.

       ``(a) In General.--The Secretary may issue only such 
     regulations as may be necessary to ensure compliance with the 
     specific provisions of this part and only such regulations as 
     the Secretary is authorized to issue pursuant to section 5211 
     of the Tribally Controlled Schools Act of 1988 (25 U.S.C. 
     2510). In issuing the regulations, the Secretary shall 
     publish proposed regulations in the Federal Register, and 
     shall provide a period of not less than 120 days for public 
     comment and consultation on the regulations. The regulations 
     shall contain, immediately following each regulatory section, 
     a citation to any statutory provision providing authority to 
     issue such regulatory section.
       ``(b) Regional Meetings.--Prior to publishing any proposed 
     regulations under subsection (a) and prior to establishing 
     the negotiated rulemaking committee under subsection (c), the 
     Secretary shall convene regional meetings to consult with 
     personnel of the Office of Indian Education Programs, 
     educators at Bureau schools, and tribal officials, parents, 
     teachers, administrators, and school board members of tribes 
     served by Bureau funded schools to provide guidance to the 
     Secretary on the content of regulations authorized to be 
     issued under this part and the Tribally Controlled Schools 
     Act of 1988.
       ``(c) Negotiated Rulemaking.--
       ``(1) In general.--Notwithstanding sections 563(a) and 
     565(a) of title 5, United States Code, the Secretary shall 
     promulgate regulations authorized under subsection (a) and 
     under the Tribally Controlled Schools Act of 1988, in 
     accordance with the negotiated rulemaking procedures provided 
     for under subchapter III of chapter 5 of title 5, United 
     States Code, and shall publish final regulations in the 
     Federal Register.
       ``(2) Expiration of authority.--The authority of the 
     Secretary to promulgate regulations under this part and under 
     the Tribally Controlled Schools Act of 1988, shall expire on 
     the date that is 18 months after the date of enactment of 
     this part. If the Secretary determines that an extension of 
     the deadline under this paragraph is appropriate, the 
     Secretary may submit proposed legislation to Congress for an 
     extension of such deadline.
       ``(3) Rulemaking committee.--The Secretary shall establish 
     a negotiated rulemaking committee to carry out this 
     subsection. In establishing such committee, the Secretary 
     shall--
       ``(A) apply the procedures provided for under subchapter 
     III of chapter 5 of title 5, United States Code, in a manner 
     that reflects the unique government-to-government 
     relationship between Indian tribes and the United States;
       ``(B) ensure that the membership of the committee includes 
     only representatives of the Federal Government and of tribes 
     served by Bureau-funded schools;
       ``(C) select the tribal representatives of the committee 
     from among individuals nominated by the representatives of 
     the tribal and tribally-operated schools;
       ``(D) ensure, to the maximum extent possible, that the 
     tribal representative membership on the committee reflects 
     the proportionate share of students from tribes served by the 
     Bureau funded school system; and
       ``(E) comply with the Federal Advisory Committee Act (5 
     U.S.C. App. 2).
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated such sums as necessary to carry out the 
     negotiated rulemaking provided for under this section. In the 
     absence of a specific appropriation to carry out this 
     subsection, the Secretary shall pay the costs of the 
     negotiated rulemaking proceedings from the general 
     administrative funds of the Department of the Interior.
       ``(d) Application of Section.--
       ``(1) Supremacy of provisions.--The provisions of this 
     section shall supersede any conflicting provisions of law 
     (including any conflicting regulations) in effect on the day 
     before the date of enactment of this part, and the Secretary 
     may repeal any regulation that is inconsistent with the 
     provisions of this part.
       ``(2) Modifications.--The Secretary may modify regulations 
     promulgated under this section or the Tribally Controlled 
     Schools Act of 1988, only in accordance with this section.

     ``SEC. 1137. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

       ``(a) Grants.--The Secretary shall make grants to tribes, 
     tribal organizations, and consortia of tribes and tribal 
     organizations

[[Page 7679]]

     to fund early childhood development programs that are 
     operated by such tribes, organizations, or consortia.
       ``(b) Amount of Grants.--
       ``(1) In general.--The amount of the grant made under 
     subsection (a) to each eligible tribe, tribal organization, 
     or consortium of tribes or tribal organizations for each 
     fiscal year shall be equal to the amount that bears the same 
     relationship to the total amount appropriated under 
     subsection (g) for such fiscal year (other than amounts 
     reserved under subsection (f)) as--
       ``(A) the total number of children under age 6 who are 
     members of--
       ``(i) such tribe;
       ``(ii) the tribe that authorized such tribal organization; 
     or
       ``(iii) any tribe that--

       ``(I) is a member of such consortium; or
       ``(II) so authorizes any tribal organization that is a 
     member of such consortium; bears to

       ``(B) the total number of all children under age 6 who are 
     members of any tribe that--
       ``(i) is eligible to receive funds under subsection (a);
       ``(ii) is a member of a consortium that is eligible to 
     receive such funds; or
       ``(iii) is authorized by any tribal organization that is 
     eligible to receive such funds.
       ``(2) Limitation.--No grant may be made under subsection 
     (a)--
       ``(A) to any tribe that has fewer than 500 members;
       ``(B) to any tribal organization that is authorized to 
     act--
       ``(i) on behalf of only 1 tribe that has fewer than 500 
     members; or
       ``(ii) on behalf of 1 or more tribes that have a combined 
     total membership of fewer than 500 members; or
       ``(C) to any consortium composed of tribes, or tribal 
     organizations authorized by tribes to act on behalf of the 
     tribes, that have a combined total tribal membership of fewer 
     than 500 members.
       ``(c) Applications.--
       ``(1) In general.--To be eligible to receive a grant under 
     subsection (a), a tribe, tribal organization, or consortium 
     shall submit to the Secretary an application for the grant at 
     such time, in such manner, and containing such information as 
     the Secretary shall prescribe.
       ``(2) Contents.--An application submitted under paragraph 
     (1) shall describe the early childhood development program 
     that the applicant desires to operate.
       ``(d) Requirement of Programs Funded.--In operating an 
     early childhood development program that is funded through a 
     grant made under subsection (a), a tribe, tribal 
     organization, or consortium--
       ``(1) shall coordinate the program with other childhood 
     development programs and may provide services that meet 
     identified needs of parents, and children under age 6, that 
     are not being met by the programs, including needs for--
       ``(A) prenatal care;
       ``(B) nutrition education;
       ``(C) health education and screening;
       ``(D) family literacy services;
       ``(E) educational testing; and
       ``(F) other educational services;
       ``(2) may include, in the early childhood development 
     program funded through the grant, instruction in the 
     language, art, and culture of the tribe served by the 
     program; and
       ``(3) shall provide for periodic assessments of the 
     program.
       ``(e) Coordination of Family Literacy Programs.--An entity 
     that operates a family literacy program under this section or 
     another similar program funded by the Bureau shall coordinate 
     the program involved with family literacy programs for Indian 
     children carried out under part B of title I of the 
     Elementary and Secondary Education Act of 1965 in order to 
     avoid duplication and to encourage the dissemination of 
     information on quality family literacy programs serving 
     Indians.
       ``(f) Administrative Costs.--The Secretary shall reserve 
     funds appropriated under subsection (g) to include in each 
     grant made under subsection (a) an amount for administrative 
     costs incurred by the tribe, tribal organization, or 
     consortium involved in establishing and maintaining the early 
     childhood development program.
       ``(g) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of fiscal 
     years 2002, 2003, 2004, 2005, and 2006.

     ``SEC. 1138. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary shall make grants and provide 
     technical assistance to tribes for the development and 
     operation of tribal departments or divisions of education for 
     the purpose of planning and coordinating all educational 
     programs of the tribe.
       ``(b) Applications.--For a tribe to be eligible to receive 
     a grant under this section, the governing body of the tribe 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       ``(c) Diversity.--The Secretary shall award grants under 
     this section in a manner that fosters geographic and 
     population diversity.
       ``(d) Use.--Tribes that receive grants under this section 
     shall use the funds made available through the grants--
       ``(1) to facilitate tribal control in all matters relating 
     to the education of Indian children on reservations (and on 
     former Indian reservations in Oklahoma);
       ``(2) to provide for the development of coordinated 
     educational programs (including all preschool, elementary, 
     secondary, and higher or vocational educational programs 
     funded by tribal, Federal, or other sources) on reservations 
     (and on former Indian reservations in Oklahoma) by 
     encouraging tribal administrative support of all Bureau 
     funded educational programs as well as encouraging tribal 
     cooperation and coordination with entities carrying out all 
     educational programs receiving financial support from other 
     Federal agencies, State agencies, or private entities; and
       ``(3) to provide for the development and enforcement of 
     tribal educational codes, including tribal educational 
     policies and tribal standards applicable to curriculum, 
     personnel, students, facilities, and support programs.
       ``(e) Priorities.--In making grants under this section, the 
     Secretary shall give priority to any application that--
       ``(1) includes--
       ``(A) assurances that the applicant serves 3 or more 
     separate Bureau funded schools; and
       ``(B) assurances from the applicant that the tribal 
     department of education to be funded under this section will 
     provide coordinating services and technical assistance to all 
     of such schools; and
       ``(2) includes assurances that all education programs for 
     which funds are provided by such a contract or grant will be 
     monitored and audited, by or through the tribal department of 
     education, to ensure that the programs meet the requirements 
     of law; and
       ``(3) provides a plan and schedule that--
       ``(A) provides for--
       ``(i) the assumption, by the tribal department of 
     education, of all assets and functions of the Bureau agency 
     office associated with the tribe, to the extent the assets 
     and functions relate to education; and
       ``(ii) the termination by the Bureau of such functions and 
     office at the time of such assumption; and
       ``(B) provides that the assumption shall occur over the 
     term of the grant made under this section, except that, when 
     mutually agreeable to the tribal governing body and the 
     Assistant Secretary, the period in which such assumption is 
     to occur may be modified, reduced, or extended after the 
     initial year of the grant.
       ``(e) Time Period of Grant.--Subject to the availability of 
     appropriated funds, a grant provided under this section shall 
     be provided for a period of 3 years. If the performance of 
     the grant recipient is satisfactory to the Secretary, the 
     grant may be renewed for additional 3-year terms.
       ``(f) Terms, Conditions, or Requirements.--A tribe that 
     receives a grant under this section shall comply with 
     regulations relating to grants made under section 103(a) of 
     the Indian Self-Determination and Education Assistance Act 
     that are in effect on the date that the tribal governing body 
     submits the application for the grant under subsection (c). 
     The Secretary shall not impose any terms, conditions, or 
     requirements on the provision of grants under this section 
     that are not specified in this section.
       ``(g) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $2,000,000 for fiscal year 2002 and such sums as 
     may be necessary for each of fiscal years 2003, 2004, 2005, 
     and 2006.

     ``SEC. 1139. DEFINITIONS.

       ``In this part, unless otherwise specified:
       ``(1) Agency school board.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `agency school board' means a body, for which--
       ``(i) the members are appointed by all of the school boards 
     of the schools located within an agency, including schools 
     operated under contracts or grants; and
       ``(ii) the number of such members shall be determined by 
     the Secretary in consultation with the affected tribes.
       ``(B) Exceptions.--In the case of an agency serving a 
     single school, the school board of such school shall be 
     considered to be the agency school board. In the case of an 
     agency serving a school or schools operated under a contract 
     or grant, at least 1 member of the body described in 
     subparagraph (A) shall be from such a school.
       ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       ``(3) Bureau funded school.--The term `Bureau funded 
     school' means--
       ``(A) a Bureau school;
       ``(B) a contract or grant school; or
       ``(C) a school for which assistance is provided under the 
     Tribally Controlled Schools Act of 1988.
       ``(4) Bureau school.--The term `Bureau school' means--
       ``(A) a Bureau operated elementary school or secondary 
     school that is a day or boarding school; or
       ``(B) a Bureau operated dormitory for students attending a 
     school other than a Bureau school.

[[Page 7680]]

       ``(5) Complementary educational facilities.--The term 
     `complementary educational facilities' means educational 
     program functional spaces including a library, gymnasium, and 
     cafeteria.
       ``(6) Contract or grant school.--The term `contract or 
     grant school' means an elementary school, secondary school, 
     or dormitory that receives financial assistance for its 
     operation under a contract, grant, or agreement with the 
     Bureau under section 102, 103(a), or 208 of the Indian Self-
     Determination and Education Assistance Act, or under the 
     Tribally Controlled Schools Act of 1988.
       ``(7) Director.--The term `Director' means the Director of 
     the Office of Indian Education Programs.
       ``(8) Education line officer.--The term `education line 
     officer' means a member of the education personnel under the 
     supervision of the Director of the Office, whether located in 
     a central, area, or agency office.
       ``(9) Financial plan.--The term `financial plan' means a 
     plan of services provided by each Bureau school.
       ``(10) Indian organization.--The term `Indian organization' 
     means any group, association, partnership, corporation, or 
     other legal entity owned or controlled by a federally 
     recognized Indian tribe or tribes, or a majority of whose 
     members are members of federally recognized tribes.
       ``(11) Inherently federal functions.--The term `inherently 
     Federal functions' means functions and responsibilities 
     which, under section 1125(c), are non-contractible, 
     including--
       ``(A) the allocation and obligation of Federal funds and 
     determinations as to the amounts of expenditures;
       ``(B) the administration of Federal personnel laws for 
     Federal employees;
       ``(C) the administration of Federal contracting and grant 
     laws, including the monitoring and auditing of contracts and 
     grants in order to maintain the continuing trust, 
     programmatic, and fiscal responsibilities of the Secretary;
       ``(D) the conducting of administrative hearings and 
     deciding of administrative appeals;
       ``(E) the determination of the Secretary's views and 
     recommendations concerning administrative appeals or 
     litigation and the representation of the Secretary in 
     administrative appeals and litigation;
       ``(F) the issuance of Federal regulations and policies as 
     well as any documents published in the Federal Register;
       ``(G) reporting to Congress and the President;
       ``(H) the formulation of the Secretary's and the 
     President's policies and their budgetary and legislative 
     recommendations and views; and
       ``(I) the non-delegable statutory duties of the Secretary 
     relating to trust resources.
       ``(12) Local educational agency.--The term `local 
     educational agency' means a board of education or other 
     legally constituted local school authority having 
     administrative control and direction of free public education 
     in a county, township, or independent or other school 
     district located within a State, and includes any State 
     agency that directly operates and maintains facilities for 
     providing free public education.
       ``(13) Local school board.--The term `local school board', 
     when used with respect to a Bureau school, means a body 
     chosen in accordance with the laws of the tribe to be served 
     or, in the absence of such laws, elected by the parents of 
     the Indian children attending the school, except that, for a 
     school serving a substantial number of students from 
     different tribes--
       ``(A) the members of the body shall be appointed by the 
     tribal governing bodies of the tribes affected; and
       ``(B) the number of such members shall be determined by the 
     Secretary in consultation with the affected tribes.
       ``(14) Office.--The term `Office' means the Office of 
     Indian Education Programs within the Bureau.
       ``(15) Regulation.--The term ``regulation'' means any part 
     of a statement of general or particular applicability of the 
     Secretary designed to carry out, interpret, or prescribe law 
     or policy in carrying out this Act.
       ``(16) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(17) Supervisor.--The term `supervisor' means the 
     individual in the position of ultimate authority at a Bureau 
     school.
       ``(18) Tribal governing body.--The term `tribal governing 
     body' means, with respect to any school, the tribal governing 
     body, or tribal governing bodies, that represent at least 90 
     percent of the students served by such school.
       ``(19) Tribe.--The term `tribe' means any Indian tribe, 
     band, nation, or other organized group or community, 
     including an Alaska Native Regional Corporation or Village 
     Corporation (as defined in or established pursuant to the 
     Alaska Native Claims Settlement Act), which is recognized as 
     eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.''.

          Subtitle B--Tribally Controlled Schools Act of 1988

     SEC. __201. TRIBALLY CONTROLLED SCHOOLS.

       Sections 5202 through 5213 of the Tribally Controlled 
     Schools Act of 1988 (25 U.S.C. 2501 et seq.) are amended to 
     read as follows:

     ``SEC. 5202. FINDINGS.

       ``Congress, after careful review of the Federal 
     Government's historical and special legal relationship with, 
     and resulting responsibilities to, Indians, finds that--
       ``(1) the Indian Self-Determination and Education 
     Assistance Act, which was a product of the legitimate 
     aspirations and a recognition of the inherent authority of 
     Indian nations, was and is a crucial positive step towards 
     tribal and community control;
       ``(2) because of the Bureau of Indian Affairs' 
     administration and domination of the contracting process 
     under such Act, Indians have not been provided with the full 
     opportunity to develop leadership skills crucial to the 
     realization of self-government and have been denied an 
     effective voice in the planning and implementation of 
     programs for the benefit of Indians that are responsive to 
     the true needs of Indian communities;
       ``(3) Indians will never surrender their desire to control 
     their relationships both among themselves and with non-Indian 
     governments, organizations, and persons;
       ``(4) true self-determination in any society of people is 
     dependent upon an educational process that will ensure the 
     development of qualified people to fulfill meaningful 
     leadership roles;
       ``(5) the Federal administration of education for Indian 
     children have not effected the desired level of educational 
     achievement or created the diverse opportunities and personal 
     satisfaction that education can and should provide;
       ``(6) true local control requires the least possible 
     Federal interference; and
       ``(7) the time has come to enhance the concepts made 
     manifest in the Indian Self-Determination and Education 
     Assistance Act.

     ``SEC. 5203. DECLARATION OF POLICY.

       ``(a) Recognition.--Congress recognizes the obligation of 
     the United States to respond to the strong expression of the 
     Indian people for self-determination by assuring maximum 
     Indian participation in the direction of educational services 
     so as to render the persons administering such services and 
     the services themselves more responsive to the needs and 
     desires of Indian communities.
       ``(b) Commitment.--Congress declares its commitment to the 
     maintenance of the Federal Government's unique and continuing 
     trust relationship with and responsibility to the Indian 
     people through the establishment of a meaningful Indian self-
     determination policy for education that will deter further 
     perpetuation of Federal bureaucratic domination of programs.
       ``(c) National Goal.--Congress declares that a major 
     national goal of the United States is to provide the 
     resources, processes, and structure that will enable tribes 
     and local communities to obtain the quantity and quality of 
     educational services and opportunities that will permit 
     Indian children--
       ``(1) to compete and excel in the life areas of their 
     choice; and
       ``(2) to achieve the measure of self-determination 
     essential to their social and economic well-being.
       ``(d) Educational Needs.--Congress affirms--
       ``(1) the reality of the special and unique educational 
     needs of Indian people, including the need for programs to 
     meet the linguistic and cultural aspirations of Indian tribes 
     and communities; and
       ``(2) that the needs may best be met through a grant 
     process.
       ``(e) Federal Relations.--Congress declares a commitment to 
     the policies described in this section and support, to the 
     full extent of congressional responsibility, for Federal 
     relations with the Indian nations.
       ``(f) Termination.--Congress repudiates and rejects House 
     Concurrent Resolution 108 of the 83d Congress and any policy 
     of unilateral termination of Federal relations with any 
     Indian Nation.

     ``SEC. 5204. GRANTS AUTHORIZED.

       ``(a) In General.--
       ``(1) Eligibility.--The Secretary shall provide grants to 
     Indian tribes and tribal organizations that--
       ``(A) operate contract schools under title XI of the 
     Education Amendments of 1978 and notify the Secretary of 
     their election to operate the schools with assistance under 
     this part rather than continuing to operate such schools as 
     contract schools under such title;
       ``(B) operate other tribally controlled schools eligible 
     for assistance under this part and submit applications (which 
     are approved by their tribal governing bodies) to the 
     Secretary for such grants; or
       ``(C) elect to assume operation of Bureau funded schools 
     with the assistance provided under this part and submit 
     applications (which are approved by their tribal governing 
     bodies) to the Secretary for such grants.
       ``(2) Deposit of funds.--Funds made available through a 
     grant provided under this part shall be deposited into the 
     general operating fund of the tribally controlled school with 
     respect to which the grant is made.
       ``(3) Use of funds.--
       ``(A) Education related activities.--Except as otherwise 
     provided in this paragraph, funds made available through a 
     grant provided under this part shall be used to defray,

[[Page 7681]]

     at the discretion of the school board of the tribally 
     controlled school with respect to which the grant is 
     provided, any expenditures for education related activities 
     for which the grant may be used under the laws described in 
     section 5205(a), or any similar activities, including 
     expenditures for--
       ``(i) school operations, and academic, educational, 
     residential, guidance and counseling, and administrative 
     purposes; and
       ``(ii) support services for the school, including 
     transportation.
       ``(B) Operations and maintenance expenditures.--Funds made 
     available through a grant provided under this part may, at 
     the discretion of the school board of the tribally controlled 
     school with respect to which such grant is provided, be used 
     to defray operations and maintenance expenditures for the 
     school if any funds for the operation and maintenance of the 
     school are allocated to the school under the provisions of 
     any of the laws described in section 5205(a).
       ``(4) Waiver of federal tort claims act.--Notwithstanding 
     section 314 of the Department of Interior and Related 
     Agencies Appropriations Act, 1991 (Public Law 101-512), the 
     Federal Tort Claims Act shall not apply to a program operated 
     by a tribally controlled school if the program is not funded 
     by the Federal agency. Nothing in the preceding sentence 
     shall be construed to apply to--
       ``(A) the employees of the school involved; and
       ``(B) any entity that enters into a contract with a grantee 
     under this section.
       ``(b) Limitations.--
       ``(1) 1 grant per tribe or organization per fiscal year.--
     Not more than 1 grant may be provided under this part with 
     respect to any Indian tribe or tribal organization for any 
     fiscal year.
       ``(2) Nonsectarian use.--Funds made available through any 
     grant provided under this part may not be used in connection 
     with religious worship or sectarian instruction.
       ``(3) Administrative costs limitation.--Funds made 
     available through any grant provided under this part may not 
     be expended for administrative cost (as defined in section 
     1127(a) of the Education Amendments of 1978) in excess of the 
     amount generated for such cost under the formula established 
     in section 1127 of such Act.
       ``(c) Limitation on Transfer of Funds Among School Sites.--
       ``(1) In general.--In the case of a recipient of a grant 
     under this part that operates schools at more than 1 school 
     site, the grant recipient may expend not more than the lesser 
     of--
       ``(A) 10 percent of the funds allocated for such school 
     site, under section 1126 of the Education Amendments of 1978; 
     or
       ``(B) $400,000 of such funds;

     at any other school site.
       ``(2) Definition of school site.--In this subsection, the 
     term `school site' means the physical location and the 
     facilities of an elementary or secondary educational or 
     residential program operated by, or under contract or grant 
     with, the Bureau for which a discrete student count is 
     identified under the funding formula established under 
     section 1126 of the Education Amendments of 1978.
       ``(d) No Requirement To Accept Grants.--Nothing in this 
     part may be construed--
       ``(1) to require a tribe or tribal organization to apply 
     for or accept; or
       ``(2) to allow any person to coerce any tribe or tribal 
     organization to apply for, or accept,

     a grant under this part to plan, conduct, and administer all 
     of, or any portion of, any Bureau program. The submission of 
     such applications and the timing of such applications shall 
     be strictly voluntary. Nothing in this part may be construed 
     as allowing or requiring the grant recipient to make any 
     grant under this part to any other entity.
       ``(e) No Effect on Federal Responsibility.--Grants provided 
     under this part shall not terminate, modify, suspend, or 
     reduce the responsibility of the Federal Government to 
     provide an educational program.
       ``(f) Retrocession.--
       ``(1) In general.--Whenever a tribal governing body 
     requests retrocession of any program for which assistance is 
     provided under this part, such retrocession shall become 
     effective on a date specified by the Secretary that is not 
     later than 120 days after the date on which the tribal 
     governing body requests the retrocession. A later date may be 
     specified if mutually agreed upon by the Secretary and the 
     tribal governing body. If such a program is retroceded, the 
     Secretary shall provide to any Indian tribe served by such 
     program at least the same quantity and quality of services 
     that would have been provided under such program at the level 
     of funding provided under this part prior to the 
     retrocession.
       ``(2) Status after retrocession.--The tribe requesting 
     retrocession shall specify whether the retrocession relates 
     to status as a Bureau operated school or as a school operated 
     under a contract under the Indian Self-Determination Act.
       ``(g) Transfer of Equipment and Materials.--Except as 
     otherwise determined by the Secretary, the tribe or tribal 
     organization operating the program to be retroceded shall 
     transfer to the Secretary (or to the tribe or tribal 
     organization that will operate the program as a contract 
     school) the existing property and equipment that were 
     acquired--
       ``(1) with assistance under this part; or
       ``(2) upon assumption of operation of the program under 
     this part if the school was a Bureau funded school before 
     receiving assistance under this part.
       ``(h) Prohibition of Termination for Administrative 
     Convenience.--Grants provided under this part may not be 
     terminated, modified, suspended, or reduced solely for the 
     convenience of the administering agency.

     ``SEC. 5205. COMPOSITION OF GRANTS.

       ``(a) In General.--The funds made available through a grant 
     provided under this part to an Indian tribe or tribal 
     organization for any fiscal year shall consist of--
       ``(1) the total amount of funds allocated for such fiscal 
     year under sections 1126 and 1127 of the Education Amendments 
     of 1978 with respect to the tribally controlled school 
     eligible for assistance under this part that is operated by 
     such Indian tribe or tribal organization, including funds 
     provided under such sections, or under any other provision of 
     law, for transportation costs for such school;
       ``(2) to the extent requested by such Indian tribe or 
     tribal organization, the total amount of funds provided from 
     operations and maintenance accounts and, notwithstanding 
     section 105 of the Indian Self-Determination and Education 
     Assistance Act or any other provision of law, other 
     facilities accounts for such school for such fiscal year 
     (including accounts for facilities referred to in section 
     1125(e) of the Education Amendments of 1978 or any other 
     law); and
       ``(3) the total amount of funds that are allocated to such 
     school for such fiscal year under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law.
       ``(b) Special Rules.--
       ``(1) In general.--
       ``(A) Applicable provisions.--Funds allocated to a tribally 
     controlled school by reason of paragraph (1) or (2) of 
     subsection (a) shall be subject to the provisions of this 
     part and shall not be subject to any additional restriction, 
     priority, or limitation that is imposed by the Bureau with 
     respect to funds provided under--
       ``(i) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(ii) the Individuals with Disabilities Education Act; or
       ``(iii) any Federal education law other than title XI of 
     the Education Amendments of 1978.
       ``(B) Other bureau requirements.--Indian tribes and tribal 
     organizations to which grants are provided under this part, 
     and tribally controlled schools for which such grants are 
     provided, shall not be subject to any requirements, 
     obligations, restrictions, or limitations imposed by the 
     Bureau that would otherwise apply solely by reason of the 
     receipt of funds provided under any law referred to in clause 
     (i), (ii) or (iii) of subparagraph (A).
       ``(2) Schools considered contract schools.--Tribally 
     controlled schools for which grants are provided under this 
     part shall be treated as contract schools for the purposes of 
     allocation of funds under sections 1125(e), 1126, and 1127 of 
     the Education Amendments of 1978.
       ``(3) Schools considered bureau schools.--Tribally 
     controlled schools for which grants are provided under this 
     part shall be treated as Bureau schools for the purposes of 
     allocation of funds provided under--
       ``(A) title I of the Elementary and Secondary Education Act 
     of 1965;
       ``(B) the Individuals with Disabilities Education Act; and
       ``(C) any other Federal education law, that are distributed 
     through the Bureau.
       ``(4) Accounts; use of certain funds.--
       ``(A) Separate account.--Notwithstanding section 
     5204(a)(2), with respect to funds from facilities improvement 
     and repair, alteration and renovation (major or minor), 
     health and safety, or new construction accounts included in 
     the grant provided under section 5204(a), the grant recipient 
     shall maintain a separate account for such funds. At the end 
     of the period designated for the work covered by the funds 
     received, the grant recipient shall submit to the Secretary a 
     separate accounting of the work done and the funds expended. 
     Funds received from those accounts may only be used for the 
     purpose for which the funds were appropriated and for the 
     work encompassed by the application or submission for which 
     the funds were received.
       ``(B) Requirements for projects.--
       ``(i) Regulatory requirements.--With respect to a grant to 
     a tribally controlled school under this part for new 
     construction or facilities improvements and repair in excess 
     of $100,000, such grant shall be subject to the 
     Administrative and Audit Requirements and Cost Principles for 
     Assistance Programs contained in part 12 of title 43, Code of 
     Federal Regulations.
       ``(ii) Exception.--Notwithstanding clause (i), grants 
     described in such clause shall not be subject to section 
     12.61 of title 43, Code of Federal Regulations. The Secretary 
     and the

[[Page 7682]]

     grantee shall negotiate and determine a schedule of payments 
     for the work to be performed.
       ``(iii) Applications.--In considering applications for a 
     grant described in clause (i), the Secretary shall consider 
     whether the Indian tribe or tribal organization involved 
     would be deficient in assuring that the construction projects 
     under the proposed grant conform to applicable building 
     standards and codes and Federal, tribal, or State health and 
     safety standards as required under section 1124 of the 
     Education Amendments of 1978 (25 U.S.C. 2005(a)) with respect 
     to organizational and financial management capabilities.
       ``(iv) Disputes.--Any disputes between the Secretary and 
     any grantee concerning a grant described in clause (i) shall 
     be subject to the dispute provisions contained in section 
     5209(e).
       ``(C) New construction.--Notwithstanding subparagraph (A), 
     a school receiving a grant under this part for facilities 
     improvement and repair may use such grant funds for new 
     construction if the tribal governing body or tribal 
     organization that submits the application for the grant 
     provides funding for the new construction equal to at least 
     25 percent of the total cost of such new construction.
       ``(D) Period.--Where the appropriations measure under which 
     the funds described in subparagraph (A) are made available or 
     the application submitted for the funds does not stipulate a 
     period for the work covered by the funds, the Secretary and 
     the grant recipient shall consult and determine such a period 
     prior to the transfer of the funds. A period so determined 
     may be extended upon mutual agreement of the Secretary and 
     the grant recipient.
       ``(5) Enforcement of request to include funds.--
       ``(A) In general.--If the Secretary fails to carry out a 
     request filed by an Indian tribe or tribal organization to 
     include in such tribe or organization's grant under this part 
     the funds described in subsection (a)(2) within 180 days 
     after the filing of the request, the Secretary shall--
       ``(i) be deemed to have approved such request; and
       ``(ii) immediately upon the expiration of such 180-day 
     period amend the grant accordingly.
       ``(B) Rights.--A tribe or organization described in 
     subparagraph (A) may enforce its rights under subsection 
     (a)(2) and this paragraph, including rights relating to any 
     denial or failure to act on such tribe's or organization's 
     request, pursuant to the dispute authority described in 
     section 5209(e).

     ``SEC. 5206. ELIGIBILITY FOR GRANTS.

       ``(a) Rules.--
       ``(1) In general.--A tribally controlled school is eligible 
     for assistance under this part if the school--
       ``(A) on April 28, 1988, was a contract school under title 
     XI of the Education Amendments of 1978 and the tribe or 
     tribal organization operating the school submits to the 
     Secretary a written notice of election to receive a grant 
     under this part;
       ``(B) was a Bureau operated school under title XI of the 
     Education Amendments of 1978 and has met the requirements of 
     subsection (b);
       ``(C) is not a Bureau funded school, but has met the 
     requirements of subsection (c); or
       ``(D) is a school with respect to which an election has 
     been made under paragraph (2) and that has met the 
     requirements of subsection (b).
       ``(2) New schools.--Notwithstanding paragraph (1), for 
     purposes of determining eligibility for assistance under this 
     part, any application that has been submitted under the 
     Indian Self-Determination and Education Assistance Act by an 
     Indian tribe or tribal organization for a school that is not 
     in operation on the date of enactment of the Native American 
     Education Improvement Act of 2001 shall be reviewed under the 
     guidelines and regulations for applications submitted under 
     the Indian Self-Determination and Education Assistance Act 
     that were in effect at the time the application was 
     submitted, unless the Indian tribe or tribal organization 
     elects to have the application reviewed under the provisions 
     of subsection (b).
       ``(b) Additional Requirements for Bureau Funded Schools and 
     Certain Electing Schools.--
       ``(1) Bureau funded schools.--A school that was a Bureau 
     funded school under title XI of the Education Amendments of 
     1978 on the date of enactment of the Native American 
     Education Improvement Act of 2001, and any school with 
     respect to which an election is made under subsection (a)(2), 
     meets the requirements of this subsection if--
       ``(A) the Indian tribe or tribal organization that 
     operates, or desires to operate, the school submits to the 
     Secretary an application requesting that the Secretary--
       ``(i) transfer operation of the school to the Indian tribe 
     or tribal organization, if the Indian tribe or tribal 
     organization is not already operating the school; and
       ``(ii) make a determination as to whether the school is 
     eligible for assistance under this part; and
       ``(B) the Secretary makes a determination that the school 
     is eligible for assistance under this part.
       ``(2) Certain electing schools.--
       ``(A) Determination.--By not later than 120 days after the 
     date on which an application is submitted to the Secretary 
     under paragraph (1)(A), the Secretary shall determine--
       ``(i) in the case of a school that is not being operated by 
     the Indian tribe or tribal organization, whether to transfer 
     operation of the school to the Indian tribe or tribal 
     organization; and
       ``(ii) whether the school is eligible for assistance under 
     this part.
       ``(B) Consideration; transfers and eligibility.--In 
     considering applications submitted under paragraph (1)(A), 
     the Secretary--
       ``(i) shall transfer operation of the school to the Indian 
     tribe or tribal organization, if the tribe or tribal 
     organization is not already operating the school; and
       ``(ii) shall determine that the school is eligible for 
     assistance under this part, unless the Secretary finds by 
     clear and convincing evidence that the services to be 
     provided by the Indian tribe or tribal organization will be 
     deleterious to the welfare of the Indians served by the 
     school and will not carry out the purposes of this Act.
       ``(C) Consideration; possible deficiencies.--In considering 
     applications submitted under paragraph (1)(A), the Secretary 
     shall only consider whether the Indian tribe or tribal 
     organization would be deficient in operating the school with 
     respect to--
       ``(i) equipment;
       ``(ii) bookkeeping and accounting procedures;
       ``(iii) ability to adequately manage a school; or
       ``(iv) adequately trained personnel.
       ``(c) Additional Requirements for a School That Is Not a 
     Bureau Funded School.--
       ``(1) In general.--A school that is not a Bureau funded 
     school under title XI of the Education Amendments of 1978 
     meets the requirements of this subsection if--
       ``(A) the Indian tribe or tribal organization that 
     operates, or desires to operate, the school submits to the 
     Secretary an application requesting a determination by the 
     Secretary as to whether the school is eligible for assistance 
     under this part; and
       ``(B) the Secretary makes a determination that the school 
     is eligible for assistance under this part.
       ``(2) Deadline for determination by secretary.--
       ``(A) Determination.--By not later than 180 days after the 
     date on which an application is submitted to the Secretary 
     under paragraph (1)(A), the Secretary shall determine whether 
     the school is eligible for assistance under this part.
       ``(B) Factors.--In making the determination under 
     subparagraph (A), the Secretary shall give equal 
     consideration to each of the following factors:
       ``(i) With respect to the applicant's proposal--

       ``(I) the adequacy of facilities or the potential to obtain 
     or provide adequate facilities;
       ``(II) geographic and demographic factors in the affected 
     areas;
       ``(III) adequacy of the applicant's program plans;
       ``(IV) geographic proximity of comparable public education; 
     and
       ``(V) the needs to be met by the school, as expressed by 
     all affected parties, including but not limited to students, 
     families, tribal governments at both the central and local 
     levels, and school organizations.

       ``(ii) With respect to all education services already 
     available--

       ``(I) geographic and demographic factors in the affected 
     areas;
       ``(II) adequacy and comparability of programs already 
     available;
       ``(III) consistency of available programs with tribal 
     education codes or tribal legislation on education; and
       ``(IV) the history and success of those services for the 
     proposed population to be served, as determined from all 
     factors including, if relevant, standardized examination 
     performance.

       ``(C) Exception regarding proximity.--The Secretary may not 
     make a determination under this paragraph that is primarily 
     based upon the geographic proximity of comparable public 
     education.
       ``(D) Information on factors.--An application submitted 
     under paragraph (1)(A) shall include information on the 
     factors described in subparagraph (B)(i), but the applicant 
     may also provide the Secretary such information relative to 
     the factors described in subparagraph (B)(ii) as the 
     applicant considers to be appropriate.
       ``(E) Treatment of lack of determination.--If the Secretary 
     fails to make a determination under subparagraph (A) with 
     respect to an application within 180 days after the date on 
     which the Secretary received the application--
       ``(i) the Secretary shall be deemed to have made a 
     determination that the tribally controlled school is eligible 
     for assistance under this part; and
       ``(ii) the grant shall become effective 18 months after the 
     date on which the Secretary received the application, or on 
     an earlier date, at the Secretary's discretion.

[[Page 7683]]

       ``(d) Filing of Applications and Reports.--
       ``(1) In general.--Each application or report submitted to 
     the Secretary under this part, and any amendment to such 
     application or report, shall be filed with the education line 
     officer designated by the Director of the Office of Indian 
     Education Programs of the Bureau of Indian Affairs. The date 
     on which the filing occurs shall, for purposes of this part, 
     be treated as the date on which the application, report, or 
     amendment was submitted to the Secretary.
       ``(2) Supporting documentation.--
       ``(A) In general.--Any application that is submitted under 
     this part shall be accompanied by a document indicating the 
     action taken by the appropriate tribal governing body 
     concerning authorizing such application.
       ``(B) Authorization action.--The Secretary shall administer 
     the requirement of subparagraph (A) in a manner so as to 
     ensure that the tribe involved, through the official action 
     of the tribal governing body, has approved of the application 
     for the grant.
       ``(C) Rule of construction.--Nothing in this paragraph 
     shall be construed as making a tribal governing body (or 
     tribe) that takes an action described in subparagraph (A) a 
     party to the grant (unless the tribal governing body or the 
     tribe is the grantee) or as making the tribal governing body 
     or tribe financially or programmatically responsible for the 
     actions of the grantee.
       ``(3) Rules of construction.--Nothing in this subsection 
     shall be construed as making a tribe act as a surety for the 
     performance of a grantee under a grant under this part.
       ``(4) Clarification.--The provisions of paragraphs (2) and 
     (3) shall be construed as a clarification of policy in 
     existence on the date of enactment of the Native American 
     Education Improvement Act of 2001 with respect to grants 
     under this part and shall not be construed as altering such 
     policy or as a new policy.
       ``(e) Effective Date for Approved Applications.--Except as 
     provided in subsection (c)(2)(E), a grant provided under this 
     part shall be made, and any transfer of the operation of a 
     Bureau school made under subsection (b) shall become 
     effective, beginning on the first day of the academic year 
     succeeding the fiscal year in which the application for the 
     grant or transfer is made, or on an earlier date determined 
     by the Secretary.
       ``(f) Denial of Applications.--
       ``(1) In general.--If the Secretary disapproves a grant 
     under this part, disapproves the transfer of operations of a 
     Bureau school under subsection (b), or determines that a 
     school is not eligible for assistance under this part, the 
     Secretary shall--
       ``(A) state the objections in writing to the tribe or 
     tribal organization involved within the allotted time;
       ``(B) provide assistance to the tribe or tribal 
     organization to cure all stated objections;
       ``(C) at the request of the tribe or tribal organization, 
     provide to the tribe or tribal organization a hearing on the 
     record regarding the refusal or determination involved, under 
     the same rules and regulations as apply under the Indian 
     Self-Determination and Education Assistance Act; and
       ``(D) provide to the tribe or tribal organization an 
     opportunity to appeal the decision resulting from the 
     hearing.
       ``(2) Timeline for reconsideration of amended 
     applications.--The Secretary shall reconsider any amended 
     application submitted under this part within 60 days after 
     the amended application is submitted to the Secretary and 
     shall submit the determinations of the Secretary with respect 
     to such reconsideration to the tribe or the tribal 
     organization.
       ``(g) Report.--The Bureau shall prepare and submit to 
     Congress an annual report on all applications received, and 
     actions taken (including the costs associated with such 
     actions), under this section on the same date as the date on 
     which the President is required to submit to Congress a 
     budget of the United States Government under section 1105 of 
     title 31, United States Code.

     ``SEC. 5207. DURATION OF ELIGIBILITY DETERMINATION.

       ``(a) In General.--If the Secretary determines that a 
     tribally controlled school is eligible for assistance under 
     this part, the eligibility determination shall remain in 
     effect until the determination is revoked by the Secretary, 
     and the requirements of subsection (b) or (c) of section 
     5206, if applicable, shall be considered to have been met 
     with respect to such school until the eligibility 
     determination is revoked by the Secretary.
       ``(b) Annual Reports.--
       ``(1) In general.--Each recipient of a grant provided under 
     this part for a school shall prepare an annual report 
     concerning the school involved, the contents of which shall 
     be limited to--
       ``(A) an annual financial statement reporting revenue and 
     expenditures as defined by the cost accounting standards 
     established by the grant recipient;
       ``(B) an annual financial audit conducted pursuant to the 
     standards of chapter 71 of title 31, United States Code;
       ``(C) a biennial compliance audit of the procurement of 
     personal property during the period for which the report is 
     being prepared that shall be in compliance with written 
     procurement standards that are developed by the local school 
     board;
       ``(D) an annual submission to the Secretary containing 
     information on the number of students served and a brief 
     description of programs offered through the grant; and
       ``(E) a program evaluation conducted by an impartial 
     evaluation review team, to be based on the standards 
     established for purposes of subsection (c)(1)(A)(ii).
       ``(2) Evaluation review teams.--In appropriate cases, 
     representatives of other tribally controlled schools and 
     representatives of tribally controlled community colleges 
     shall be members of the evaluation review teams.
       ``(3) Evaluations.--In the case of a school that is 
     accredited, the evaluations required under this subsection 
     shall be conducted at intervals under the terms of the 
     accreditation.
       ``(4) Submission of report.--
       ``(A) To tribal governing body.--Upon completion of the 
     annual report required under paragraph (1), the recipient of 
     the grant shall send (via first class mail, return receipt 
     requested) a copy of such annual report to the tribal 
     governing body.
       ``(B) To secretary.--Not later than 30 days after receiving 
     written confirmation that the tribal governing body has 
     received the report sent pursuant to subparagraph (A), the 
     recipient of the grant shall send a copy of the report to the 
     Secretary.
       ``(c) Revocation of Eligibility.--
       ``(1) In general.--The Secretary may not revoke a 
     determination that a school is eligible for assistance under 
     this part if--
       ``(A) the Indian tribe or tribal organization submits the 
     reports required under subsection (b) with respect to the 
     school; and
       ``(B) at least 1 of the following conditions applies with 
     respect to the school:
       ``(i) The school is certified or accredited by a State 
     certification or regional accrediting association or is a 
     candidate in good standing for such certification or 
     accreditation under the rules of the State certification or 
     regional accrediting association, showing that credits 
     achieved by the students within the education programs of the 
     school are, or will be, accepted at grade level by a State 
     certified or regionally accredited institution.
       ``(ii) The Secretary determines that there is a reasonable 
     expectation that the certification or accreditation described 
     in clause (i), or candidacy in good standing for such 
     certification or accreditation, will be achieved by the 
     school within 3 years. The school seeking accreditation shall 
     remain under the standards of the Bureau in effect on the 
     date of enactment of the Native American Education 
     Improvement Act of 2001 until such time as the school is 
     accredited, except that if the Bureau standards are in 
     conflict with the standards of the accrediting agency, the 
     standards of such agency shall apply in such case.
       ``(iii) The school is accredited by a tribal department of 
     education if such accreditation is accepted by a generally 
     recognized State certification or regional accrediting 
     agency.
       ``(iv)(I) With respect to a school that lacks 
     accreditation, or that is not a candidate for accreditation, 
     based on circumstances that are not beyond the control of the 
     school board, every 3 years an impartial evaluator agreed 
     upon by the Secretary and the grant recipient conducts 
     evaluations of the school, and the school receives a positive 
     assessment under such evaluations. The evaluations are 
     conducted under standards adopted by a contractor under a 
     contract for the school entered into under the Indian Self-
     Determination and Education Assistance Act (or revisions of 
     such standards agreed to by the Secretary and the grant 
     recipient) prior to the date of enactment of the Native 
     American Education Improvement Act of 2001.
       ``(II) If the Secretary and a grant recipient other than a 
     tribal governing body fail to agree on such an evaluator, the 
     tribal governing body shall choose the evaluator or perform 
     the evaluation. If the Secretary and a grant recipient that 
     is a tribal governing body fail to agree on such an 
     evaluator, subclause (I) shall not apply.
       ``(III) A positive assessment by an impartial evaluator 
     under this clause shall not affect the revocation of a 
     determination of eligibility by the Secretary where such 
     revocation is based on circumstances that were within the 
     control of the school board.
       ``(2) Notice requirements for revocation.--The Secretary 
     may not revoke a determination that a school is eligible for 
     assistance under this part, or reassume control of a school 
     that was a Bureau school prior to approval of an application 
     submitted under section 5206(b)(1)(A), until the Secretary--
       ``(A) provides notice, to the tribally controlled school 
     involved and the appropriate tribal governing body (within 
     the meaning of section 1139 of the Education Amendments of 
     1978) for the tribally controlled school, which notice 
     identifies--
       ``(i) the specific deficiencies that led to the revocation 
     or reassumption determination; and
       ``(ii) the specific actions that are needed to remedy such 
     deficiencies; and
       ``(B) affords such school and governing body an opportunity 
     to implement the remedial actions.

[[Page 7684]]

       ``(3) Technical assistance.--The Secretary shall provide 
     such technical assistance to enable the school and governing 
     body to carry out such remedial actions.
       ``(4) Hearing and appeal.--In addition to notice and 
     technical assistance under this subsection, the Secretary 
     shall provide to the school and governing body--
       ``(A) at the request of the school or governing body, a 
     hearing on the record regarding the revocation or 
     reassumption determination, to be conducted under the rules 
     and regulations described in section 5206(f)(1)(C); and
       ``(B) an opportunity to appeal the decision resulting from 
     the hearing.
       ``(d) Applicability of Section Pursuant to Election Under 
     Section 5209(b).--With respect to a tribally controlled 
     school that receives assistance under this part pursuant to 
     an election made under section 5209(b)--
       ``(1) subsection (b) shall apply; and
       ``(2) the Secretary may not revoke eligibility for 
     assistance under this part except in conformance with 
     subsection (c).

     ``SEC. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS; STATE 
                   PAYMENTS TO SCHOOLS.

       ``(a) Payments.--
       ``(1) Manner of payments.--
       ``(A) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make payments to grant 
     recipients under this part in 2 payments, of which--
       ``(i) the first payment shall be made not later than July 1 
     of each year in an amount equal to 80 percent of the amount 
     that the grant recipient was entitled to receive during the 
     preceding academic year; and
       ``(ii) the second payment, consisting of the remainder to 
     which the grant recipient was entitled for the academic year, 
     shall be made not later than December 1 of each year.
       ``(B) Excess funding.--In a case in which the amount 
     provided to a grant recipient under subparagraph (A)(i) is in 
     excess of the amount that the recipient is entitled to 
     receive for the academic year involved, the recipient shall 
     return to the Secretary such excess amount not later than 30 
     days after the final determination that the school was 
     overpaid pursuant to this section. The amount returned to the 
     Secretary under this subparagraph shall be distributed 
     equally to all schools in the system.
       ``(2) Newly funded schools.--For any school for which no 
     payment under this part was made from Bureau funds in the 
     academic year preceding the year for which the payments are 
     being made, full payment of the amount computed for the 
     school for the first academic year of eligibility under this 
     part shall be made not later than December 1 of the academic 
     year.
       ``(3) Late funding.--With regard to funds for grant 
     recipients under this part that become available for 
     obligation on October 1 of the fiscal year for which such 
     funds are appropriated, the Secretary shall make payments to 
     the grant recipients not later than December 1 of the fiscal 
     year.
       ``(4) Applicability of certain title 31 provisions.--The 
     provisions of chapter 39 of title 31, United States Code, 
     shall apply to the payments required to be made under 
     paragraphs (1), (2), and (3).
       ``(5) Restrictions.--Payments made under paragraphs (1), 
     (2), and (3) shall be subject to any restriction on amounts 
     of payments under this part that is imposed by a continuing 
     resolution or other Act appropriating the funds involved.
       ``(b) Investment of Funds.--
       ``(1) Treatment of interest and investment income.--
     Notwithstanding any other provision of law, any interest or 
     investment income that accrues on or is derived from any 
     funds provided under this part for a school after such funds 
     are paid to an Indian tribe or tribal organization and before 
     such funds are expended for the purpose for which such funds 
     were provided under this part shall be the property of the 
     Indian tribe or tribal organization. The interest or income 
     shall not be taken into account by any officer or employee of 
     the Federal Government in determining whether to provide 
     assistance, or the amount of assistance to be provided, under 
     any provision of Federal law.
       ``(2) Permissible investments.--Funds provided under this 
     part may be invested by an Indian tribe or tribal 
     organization, as approved by the grantee, before such funds 
     are expended for the objectives of this part if such funds 
     are--
       ``(A) invested by the Indian tribe or tribal organization 
     only--
       ``(i) in obligations of the United States;
       ``(ii) in obligations or securities that are guaranteed or 
     insured by the United States; or
       ``(iii) in mutual (or other) funds that are registered with 
     the Securities and Exchange Commission and that only invest 
     in obligations of the United States, or securities that are 
     guaranteed or insured by the United States; or
       ``(B) deposited only into accounts that are insured by an 
     agency or instrumentality of the United States, or are fully 
     supported by collateral to ensure protection of the funds, 
     even in the event of a bank failure.
       ``(c) Recoveries.--Funds received under this part shall not 
     be taken into consideration by any Federal agency for the 
     purposes of making underrecovery and overrecovery 
     determinations for any other funds, from whatever source 
     derived.
       ``(d) Payments by States.--
       ``(1) In general.--With respect to a school that receives 
     assistance under this part, a State shall not--
       ``(A) take into account the amount of such assistance in 
     determining the amount of funds that such school is eligible 
     to receive under applicable State law; or
       ``(B) reduce any State payments that such school is 
     eligible to receive under applicable State law because of the 
     assistance received by the school under this part.
       ``(2) Violations.--
       ``(A) In general.--Upon receipt of any information from any 
     source that a State is in violation of paragraph (1), the 
     Secretary shall immediately, but in no case later than 90 
     days after the receipt of such information, conduct an 
     investigation and make a determination of whether such 
     violation has occurred.
       ``(B) Determination.--If the Secretary makes a 
     determination under subparagraph (A) that a State has 
     violated paragraph (1), the Secretary shall inform the 
     Secretary of Education of such determination and the basis 
     for the determination. The Secretary of Education shall, in 
     an expedient manner, pursue penalties under paragraph (3) 
     with respect to the State.
       ``(3) Penalties.--A State determined to have violated 
     paragraph (1) shall be subject to penalties similar to the 
     penalties described in section 8809(e) of the Elementary and 
     Secondary Education Act of 1965 for a violation of title VIII 
     of such Act.

     ``SEC. 5209. APPLICATION WITH RESPECT TO INDIAN SELF-
                   DETERMINATION AND EDUCATION ASSISTANCE ACT.

       ``(a) Certain Provisions To Apply to Grants.--The following 
     provisions of the Indian Self-Determination and Education 
     Assistance Act (and any subsequent revisions thereto or 
     renumbering thereof), shall apply to grants provided under 
     this part and the schools funded under such grants:
       ``(1) Section 5(f) (relating to single agency audits).
       ``(2) Section 6 (relating to criminal activities; 
     penalties).
       ``(3) Section 7 (relating to wage and labor standards).
       ``(4) Section 104 (relating to retention of Federal 
     employee coverage).
       ``(5) Section 105(f) (relating to Federal property).
       ``(6) Section 105(k) (relating to access to Federal sources 
     of supply).
       ``(7) Section 105(l) (relating to lease of facility used 
     for administration and delivery of services).
       ``(8) Section 106(f) (relating to limitation on remedies 
     relating to cost disallowances).
       ``(9) Section 106(j) (relating to use of funds for matching 
     or cost participation requirements).
       ``(10) Section 106(k) (relating to allowable uses of 
     funds).
       ``(11) The portions of section 108(c) that consist of model 
     agreements provisions 1(b)(5) (relating to limitations of 
     costs), 1(b)(7) (relating to records and monitoring), 1(b)(8) 
     (relating to property), and 1(b)(9) (relating to availability 
     of funds).
       ``(12) Section 109 (relating to reassumption).
       ``(13) Section 111 (relating to sovereign immunity and 
     trusteeship rights unaffected).
       ``(b) Election for Grant in Lieu of Contract.--
       ``(1) In general.--A contractor that carries out an 
     activity to which this part applies and who has entered into 
     a contract under the Indian Self-Determination and Education 
     Assistance Act that is in effect on the date of enactment of 
     the Native American Education Improvement Act of 2001 may, by 
     giving notice to the Secretary, elect to receive a grant 
     under this part in lieu of such contract and to have the 
     provisions of this part apply to such activity.
       ``(2) Effective date of election.--Any election made under 
     paragraph (1) shall take effect on the first day of July 
     immediately following the date of such election.
       ``(3) Exception.--In any case in which the first day of 
     July immediately following the date of an election under 
     paragraph (1) is less than 60 days after such election, such 
     election shall not take effect until the first day of July of 
     year following the year in which the election is made.
       ``(c) No Duplication.--No funds may be provided under any 
     contract entered into under the Indian Self-Determination and 
     Education Assistance Act to pay any expenses incurred in 
     providing any program or services if a grant has been made 
     under this part to pay such expenses.
       ``(d) Transfers and Carryovers.--
       ``(1) Buildings, equipment, supplies, materials.--A tribe 
     or tribal organization assuming the operation of--
       ``(A) a Bureau school with assistance under this part shall 
     be entitled to the transfer or use of buildings, equipment, 
     supplies, and materials to the same extent as if the tribe or 
     tribal organization were contracting under the Indian Self-
     Determination and Education Assistance Act; or
       ``(B) a contract school with assistance under this part 
     shall be entitled to the transfer or use of buildings, 
     equipment, supplies,

[[Page 7685]]

     and materials that were used in the operation of the contract 
     school to the same extent as if the tribe or tribal 
     organization were contracting under such Act.
       ``(2) Funds.--Any tribe or tribal organization that assumes 
     operation of a Bureau school with assistance under this part 
     and any tribe or tribal organization that elects to operate a 
     school with assistance under this part rather than to 
     continue to operate the school as a contract school shall be 
     entitled to any funds that would remain available from the 
     previous fiscal year if such school remained a Bureau school 
     or was operated as a contract school, respectively.
       ``(3) Funding for school improvement.--Any tribe or tribal 
     organization that assumes operation of a Bureau school or a 
     contract school with assistance under this part shall be 
     eligible for funding for the improvement, alteration, 
     replacement, and repair of facilities to the same extent as a 
     Bureau school.
       ``(e) Exceptions, Problems, and Disputes.--
       ``(1) In general.--Any exception or problem cited in an 
     audit conducted pursuant to section 5207(b)(1)(B), any 
     dispute regarding a grant authorized to be made pursuant to 
     this part or any modification of such grant, and any dispute 
     involving an administrative cost grant under section 1127 of 
     the Education Amendments of 1978, shall be administered under 
     the provisions governing such exceptions, problems, or 
     disputes described in this paragraph in the case of contracts 
     under the Indian Self-Determination and Education Assistance 
     Act.
       ``(2) Administrative appeals.--The Equal Access to Justice 
     Act (as amended) and the amendments made by such Act, 
     including section 504 of title 5, and section 2412 of title 
     28, United States Code, shall apply to an administrative 
     appeal filed after September 8, 1988, by a grant recipient 
     regarding a grant provided under this part, including an 
     administrative cost grant.

     ``SEC. 5210. ROLE OF THE DIRECTOR.

       ``Applications for grants under this part, and all 
     modifications to the applications, shall be reviewed and 
     approved by personnel under the direction and control of the 
     Director of the Office of Indian Education Programs. Reports 
     required under this part shall be submitted to education 
     personnel under the direction and control of the Director of 
     such Office.

     ``SEC. 5211. REGULATIONS.

       ``The Secretary is authorized to issue regulations relating 
     to the discharge of duties specifically assigned to the 
     Secretary in this part. For all other matters relating to the 
     details of planning, developing, implementing, and evaluating 
     grants under this part, the Secretary shall not issue 
     regulations.

     ``SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT 
                   PROGRAM.

       ``(a) In General.--
       ``(1) Establishment.--Each school receiving a grant under 
     this part may establish, at a federally insured financial 
     institution, a trust fund for the purposes of this section.
       ``(2) Deposits and use.--The school may provide--
       ``(A) for deposit into the trust fund, only funds from non-
     Federal sources, except that the interest on funds received 
     from grants provided under this part may be used for that 
     purpose;
       ``(B) for deposit into the trust fund, any earnings on 
     funds deposited in the fund; and
       ``(C) for the sole use of the school any noncash, in-kind 
     contributions of real or personal property, which may at any 
     time be used, sold, or otherwise disposed of.
       ``(b) Interest.--Interest from the fund established under 
     subsection (a) may periodically be withdrawn and used, at the 
     discretion of the school, to defray any expenses associated 
     with the operation of the school consistent with the purposes 
     of this Act.

     ``SEC. 5213. DEFINITIONS.

       ``In this part:
       ``(1) Bureau.--The term `Bureau' means the Bureau of Indian 
     Affairs of the Department of the Interior.
       ``(2) Eligible indian student.--The term `eligible Indian 
     student' has the meaning given such term in section 1126(f) 
     of the Education Amendments of 1978.
       ``(3) Indian.--The term `Indian' means a member of an 
     Indian tribe, and includes individuals who are eligible for 
     membership in a tribe, and the child or grandchild of such an 
     individual.
       ``(4) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including an Alaska Native Village Corporation or 
     Regional Corporation (as defined in or established pursuant 
     to the Alaskan Native Claims Settlement Act), which is 
     recognized as eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians.
       ``(5) Local educational agency.--The term `local 
     educational agency' means a public board of education or 
     other public authority legally constituted within a State for 
     either administrative control or direction of, or to perform 
     a service function for, public elementary schools or 
     secondary schools in a city, county, township, school 
     district, or other political subdivision of a State or such 
     combination of school districts or counties as are recognized 
     in a State as an administrative agency for the State's public 
     elementary schools or secondary schools. Such term includes 
     any other public institution or agency having administrative 
     control and direction of a public elementary school or 
     secondary school.
       ``(6) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(7) Tribal governing body.--The term `tribal governing 
     body' means, with respect to any school that receives 
     assistance under this Act, the recognized governing body of 
     the Indian tribe involved.
       ``(8) Tribal organization.--
       ``(A) In general.--The term `tribal organization' means--
       ``(i) the recognized governing body of any Indian tribe; or
       ``(ii) any legally established organization of Indians 
     that--

       ``(I) is controlled, sanctioned, or chartered by such 
     governing body or is democratically elected by the adult 
     members of the Indian community to be served by such 
     organization; and
       ``(II) includes the maximum participation of Indians in all 
     phases of the organization's activities.

       ``(B) Authorization.--In any case in which a grant is 
     provided under this part to an organization to provide 
     services through a tribally controlled school benefiting more 
     than 1 Indian tribe, the approval of the governing bodies of 
     Indian tribes representing 80 percent of the students 
     attending the tribally controlled school shall be considered 
     a sufficient tribal authorization for such grant.
       ``(9) Tribally controlled school.--The term `tribally 
     controlled school' means a school that--
       ``(A) is operated by an Indian tribe or a tribal 
     organization, enrolling students in kindergarten through 
     grade 12, including a preschool;
       ``(B) is not a local educational agency; and
       ``(C) is not directly administered by the Bureau of Indian 
     Affairs.''.

     SEC. __202. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.

       (a) In General.--Notwithstanding the Tribally Controlled 
     Schools Act of 1988 (25 U.S.C. 2501 et seq.), or the 
     regulations promulgated under such Act, the Ojibwa Indian 
     School located in Belcourt, North Dakota, may use amounts 
     received under such Act to enter into, and make payments 
     under, a lease described in subsection (b).
       (b) Lease.--A lease described in this subsection is a lease 
     that--
       (1) is entered into by the Ojibwa Indian School for the use 
     of facilities owned by St. Ann's Catholic Church located in 
     Belcourt, North Dakota;
       (2) is entered into in the 2001-2002 school year, or any 
     other school year in which the Ojibwa Indian School will use 
     such facilities for school purposes;
       (3) requires lease payments in an amount determined 
     appropriate by an independent lease appraiser that is 
     selected by the parties to the lease, except that such amount 
     may not exceed the maximum amount per square foot that is 
     being paid by the Bureau of Indian Affairs for other 
     similarly situated Indian schools under the Indian Self-
     Determination and Education Assistance Act (Public Law 93-
     638); and
       (4) contains a waiver of the right of St. Ann's Catholic 
     Church to bring an action against the Ojibwa Indian School, 
     the Turtle Mountain Band of Chippewa, or the Federal 
     Government for the recovery of any amounts remaining unpaid 
     under leases entered into prior to the date of enactment of 
     this Act.
       (c) Method of Funding.--Amounts shall be made available by 
     the Bureau of Indian Affairs to make lease payments under 
     this section in the same manner as amounts are made available 
     to make payments under leases entered into by Indian schools 
     under the Indian Self-Determination and Education Assistance 
     Act (Public Law 93-638).
       (d) Operation and Maintenance Funding.--The Bureau of 
     Indian Affairs shall provide funding for the operation and 
     maintenance of the facilities and property used by the Ojibwa 
     Indian School under the lease entered into under subsection 
     (a) so long as such facilities and property are being used by 
     the School for educational purposes.

     SEC. __203. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

       Section 5404(a) of the Augustus F. Hawkins-Robert T. 
     Stafford Elementary and Secondary School Improvement 
     Amendments Act of 1988 (25 U.S.C. 13d-2(a)) is amended--
       (1) by striking the matter preceding paragraph (1) and 
     inserting the following:
       ``(a) In General.--The Secretary of the Interior shall not 
     disqualify from continued receipt of general assistance 
     payments from the Bureau of Indian Affairs an otherwise 
     eligible Indian for whom the Bureau is making or may make 
     general assistance payments (or exclude such an individual 
     from continued consideration in determining the amount of 
     general assistance payments for a household) because the 
     individual is enrolled (and is making satisfactory progress 
     toward completion of a program or training that can 
     reasonably be expected to lead to gainful employment) for at 
     least half-time study or training in--''; and
       (2) by striking paragraph (4), and inserting the following:

[[Page 7686]]

       ``(4) other programs or training approved by the Secretary 
     or by tribal education, employment or training programs.''.
                                  ____

  SA 506. Ms. COLLINS 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 319, between lines 19 and 20, insert the following:
       ``(12) Funding projects and carrying out programs to 
     encourage men to become elementary school teachers.''
                                  ____

  SA 507. Ms. COLLINS (for herself and Ms. Snowe) 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 350, between lines 4 and 5, insert the following:
       ``(9) Training teachers and developing programs to 
     encourage girls and young women to pursue postsecondary 
     degrees and careers in mathematics and science, including 
     engineering and technology.
       ``(10) Training teachers to ensure that the teachers meet 
     the educational needs of historically underserved students, 
     including girls and young women, especially with respect to 
     mathematics and science.''
                                  ____

  SA 508. Ms. COLLINS (for herself and Mr. Conrad) 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 648, line 18, strike ``or 4116'' and insert ``4116, 
     or 5331(b)''.
       On page 650, line 25, strike ``or 4116'' and insert ``4116, 
     or 5331(b)''.
                                  ____

  SA 509. Ms. COLLINS (for herself and Mr. Conrad) 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 778, strike lines 4 through 10 and insert the 
     following:

     ``SEC. 6202A. STUDY OF ASSESSMENT COSTS.

       ``(a) Study.--
       ``(1) In general.--The Comptroller General of the United 
     States shall conduct a study of the costs of conducting 
     student assessments under section 1111.
       ``(2) Contents.--In conducting the study, the Comptroller 
     General of the United States shall--
       ``(A) draw on and use the best available data, including 
     cost data from each State that has developed or administered 
     statewide student assessments under section 1111 and cost 
     data from companies that develop student assessments 
     described in such section;
       ``(B) determine the aggregate cost for all States to 
     develop the student assessments required under section 1111, 
     and the portion of that cost that is expected to be incurred 
     in each of fiscal years 2002 through 2008;
       ``(C) determine the aggregate cost for all States to 
     administer the student assessments required under section 
     1111 and the portion of that cost that is expected to be 
     incurred in each of fiscal years 2002 through 2008; and
       ``(D) determine the costs and portions described in 
     subparagraphs (B) and (C) for each State.
       ``(b) Report.--
       ``(1) In general.--The Comptroller General of the United 
     States shall, not later than January 31, 2002, submit a 
     report containing the results of the study described in 
     subsection (a) to--
       ``(A) the Committee on Appropriations of the House of 
     Representatives and the Subcommittee on Labor, Health and 
     Human Services, and Education of that Committee;
       ``(B) the Committee on Appropriations of the Senate and the 
     Subcommittee on Labor, Health and Human Services, and 
     Education of that Committee;
       ``(C) the Committee on Education and the Workforce of the 
     House of Representatives; and
       ``(D) the Committee on Health, Education, Labor, and 
     Pensions of the Senate.
       ``(2) Contents.--The report shall include--
       ``(A) a thorough description of the methodology employed in 
     conducting the study; and
       ``(B) the determinations of costs and portions described in 
     subparagraphs (B) through (D) of subsection (a)(2).
       ``(c) Definition.--In this section, the term `State' means 
     1 of the several States of the United States.

     ``SEC. 6203. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) State Assessment Grants.--
       ``(1) In general.--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.
       ``(2) Supplemental state assessment grants.--
       ``(A) Additional authorization.--In addition to the funds 
     authorized to be appropriated under paragraph (1), for the 
     purpose of developing and implementing the standards and 
     assessments required under section 1111, there is authorized 
     to be appropriated $400,000,000 for fiscal year 2002.
       ``(B) Application.--No funds may be appropriated under 
     subparagraph (A) until the Comptroller General of the United 
     States meets the requirements of section 6202A.
                                  ____

  SA 510. Ms. COLLINS (for herself, Mr. Hatch, Mr. Cochran, and Ms. 
Landrieu) 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:

       At the appropriate place, insert the following:

     SEC. __. SENSE OF THE SENATE REGARDING TAX INCENTIVES 
                   SUPPORTING TEACHERS.

       It is the sense of the Senate that the Senate should pass 
     legislation during the First Session of the 107th Congress 
     that--
       (1) provides an above-the-line deduction for the expenses 
     of teachers and teacher aides for qualified professional 
     development that--
       (A) should directly relate to the curriculum and academic 
     subjects in which a teacher provides instruction or be 
     designed to help a teacher understand and use State 
     standards;
       (B) should also be tied to challenging State or local 
     content standards and student performance standards as well 
     as to strategies and programs that demonstrate effectiveness 
     in increasing student academic achievement and student 
     performance, or substantially increasing the knowledge and 
     teaching skills of an eligible teacher; and
       (C) generally should be of sufficient intensity and 
     duration to have a positive and lasting impact on the 
     performance of an eligible teacher in the classroom and 
     should be part of a program of professional development that 
     has been approved and certified by the appropriate local 
     educational agency as furthering the goals specified in 
     subparagraphs (A) and (B); and
       (2) provides a credit against income tax (limited to $100 
     per individual) for the qualified classroom expenses paid or 
     incurred by an elementary or secondary school teacher, 
     instructor, counselor, aide, or principal, including expenses 
     for books, supplies (other than nonathletic supplies for 
     courses of instruction in health or physical education), 
     computer equipment (including related software and services) 
     and other equipment, and supplementary materials used by a 
     teacher in the classroom.
                                  ____

  SA 511. Ms. COLLINS 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:

                       TITLE __--TEACHER SUPPORT

     SEC. __01. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED 
                   PROFESSIONAL DEVELOPMENT EXPENSES OF ELEMENTARY 
                   AND SECONDARY SCHOOL TEACHERS.

       (a) Deduction Allowed.--Part VII of subchapter B of chapter 
     1 of the Internal Revenue Code of 1986 (relating to 
     additional itemized deductions for individuals) is amended by 
     redesignating section 222 as section 223 and by inserting 
     after section 221 the following new section:

     ``SEC. 222. QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES.

       ``(a) Allowance of Deduction.--In the case of an eligible 
     teacher, there shall be allowed as a deduction an amount 
     equal to the qualified professional development expenses paid 
     or incurred by the taxpayer during the taxable year.
       ``(b) Qualified Professional Development Expenses of 
     Eligible Teachers.--For purposes of this section--
       ``(1) Qualified professional development expenses.--
       ``(A) In general.--The term `qualified professional 
     development expenses' means expenses for tuition, fees, 
     books, supplies, equipment, and transportation required for 
     the enrollment or attendance of an individual in a qualified 
     course of instruction.
       ``(B) Qualified course of instruction.--The term `qualified 
     course of instruction' means a course of instruction which--
       ``(i) is--

       ``(I) directly related to the curriculum and academic 
     subjects in which an eligible teacher provides instruction, 
     or
       ``(II) designed to enhance the ability of an eligible 
     teacher to understand and use State

[[Page 7687]]

     standards for the academic subjects in which such teacher 
     provides instruction,

       ``(ii) may--

       ``(I) provide instruction in how to teach children with 
     different learning styles, particularly children with 
     disabilities and children with special learning needs 
     (including children who are gifted and talented), or
       ``(II) provide instruction in how best to discipline 
     children in the classroom and identify early and appropriate 
     interventions to help children described in subclause (I) to 
     learn,

       ``(iii) is tied to challenging State or local content 
     standards and student performance standards,
       ``(iv) is tied to strategies and programs that demonstrate 
     effectiveness in increasing student academic achievement and 
     student performance, or substantially increasing the 
     knowledge and teaching skills of an eligible teacher,
       ``(v) is of sufficient intensity and duration to have a 
     positive and lasting impact on the performance of an eligible 
     teacher in the classroom (which shall not include 1-day or 
     short-term workshops and conferences), except that this 
     clause shall not apply to an activity if such activity is 1 
     component described in a long-term comprehensive professional 
     development plan established by an eligible teacher and the 
     teacher's supervisor based upon an assessment of the needs of 
     the teacher, the students of the teacher, and the local 
     educational agency involved, and
       ``(vi) is part of a program of professional development 
     which is approved and certified by the appropriate local 
     educational agency as furthering the goals of the preceding 
     clauses.
       ``(C) Local educational agency.--The term `local 
     educational agency' has the meaning given such term by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965, as in effect on the date of the enactment of this 
     section.
       ``(2) Eligible teacher.--
       ``(A) In general.--The term `eligible teacher' means an 
     individual who is a kindergarten through grade 12 classroom 
     teacher or aide in an elementary or secondary school for at 
     least 720 hours during a school year.
       ``(B) Elementary or secondary school.--The terms 
     `elementary school' and `secondary school' have the meanings 
     given such terms by section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801), as so in 
     effect.
       ``(c) Denial of Double Benefit.--
       ``(1) In general.--No other deduction or credit shall be 
     allowed under this chapter for any amount taken into account 
     for which a deduction is allowed under this section.
       ``(2) Coordination with exclusions.--A deduction shall be 
     allowed under subsection (a) for qualified professional 
     development expenses only to the extent the amount of such 
     expenses exceeds the amount excludable under section 135, 
     529(c)(1), or 530(d)(2) for the taxable year.''.
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Section 62(a) of the Internal Revenue Code of 1986 is amended 
     by inserting after paragraph (17) the following new 
     paragraph:
       ``(18) Qualified professional development expenses.--The 
     deduction allowed by section 222.''.
       (c) Conforming Amendment.--The table of sections for part 
     VII of subchapter B of chapter 1 of the Internal Revenue Code 
     of 1986 is amended by striking the item relating to section 
     222 and inserting the following new items:

``Sec. 222. Qualified professional development expenses.
``Sec. 223. Cross reference.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. __02. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS 
                   WHO PROVIDE CLASSROOM MATERIALS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     other credits) is amended by adding at the end the following 
     new section:

     ``SEC. 30B. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL 
                   TEACHERS WHO PROVIDE CLASSROOM MATERIALS.

       ``(a) Allowance of Credit.--In the case of an eligible 
     teacher, there shall be allowed as a credit against the tax 
     imposed by this chapter for the taxable year an amount equal 
     to 50 percent of the qualified elementary and secondary 
     education expenses which are paid or incurred by the taxpayer 
     during such taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed $100.
       ``(c) Definitions.--
       ``(1) Eligible teacher.--The term `eligible teacher' means 
     an individual who is a kindergarten through grade 12 
     classroom teacher, instructor, counselor, aide, or principal 
     in an elementary or secondary school on a full-time basis for 
     an academic year ending during a taxable year.
       ``(2) Qualified elementary and secondary education 
     expenses.--The term `qualified elementary and secondary 
     education expenses' means expenses for books, supplies (other 
     than nonathletic supplies for courses of instruction in 
     health or physical education), computer equipment (including 
     related software and services) and other equipment, and 
     supplementary materials used by an eligible teacher in the 
     classroom.
       ``(3) Elementary or secondary school.--The term `elementary 
     or secondary school' means any school which provides 
     elementary education or secondary education (through grade 
     12), as determined under State law.
       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any expense for which credit 
     is allowed under this section.
       ``(2) Application with other credits.--The credit allowable 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the regular tax for the taxable year, reduced by the 
     sum of the credits allowable under subpart A and the 
     preceding sections of this subpart, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 30B. Credit to elementary and secondary school teachers who 
              provide classroom materials.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____

  SA 512. Mr. COCHRAN (for himself, Mr. Warner, Mr. Chafee, Mr. 
Grassley, Mr. Ensign, Mr. Domenici, Mr. Hatch, Mr. Stevens, Mr. 
Spector, Mrs. Hutchison, and Mr. Lugar) 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:

          TITLE __EDUCATION PROGRAMS OF NATIONAL SIGNIFICANCE

     SEC. __01. AMENDMENT TO THE ELEMENTARY AND SECONDARY 
                   EDUCATION ACT OF 1965.

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

         ``TITLE X--EDUCATION PROGRAMS OF NATIONAL SIGNIFICANCE

``PART A--READING IS FUNDAMENTAL--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

     ``SEC. 10101. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR 
                   READING MOTIVATION.

       ``(a) Authorization.--The Secretary is authorized to enter 
     into a contract with Reading Is Fundamental (RIF) (hereafter 
     in this section referred to as `the contractor') to support 
     and promote programs, which include the distribution of 
     inexpensive books to students, that motivate children to 
     read.
       ``(b) Requirements of Contract.--Any contract entered into 
     under subsection (a) shall--
       ``(1) provide that the contractor will enter into 
     subcontracts with local private nonprofit groups or 
     organizations, or with public agencies, under which each 
     subcontractor will agree to establish, operate, and provide 
     the non-Federal share of the cost of reading motivation 
     programs that include the distribution of books, by gift, to 
     the extent feasible, or loan, to children from birth through 
     secondary school age, including those in family literacy 
     programs;
       ``(2) provide that funds made available to subcontractors 
     will be used only to pay the Federal share of the cost of 
     such programs;
       ``(3) provide that in selecting subcontractors for initial 
     funding, the contractor will give priority to programs that 
     will serve a substantial number or percentage of children 
     with special needs, such as--
       ``(A) low-income children, particularly in high-poverty 
     areas;
       ``(B) children at risk of school failure;
       ``(C) children with disabilities;
       ``(D) foster children;
       ``(E) homeless children;
       ``(F) migrant children;
       ``(G) children without access to libraries;
       ``(H) institutionalized or incarcerated children; and
       ``(I) children whose parents are institutionalized or 
     incarcerated;
       ``(4) provide that the contractor will provide such 
     technical assistance to subcontractors as may be necessary to 
     carry out the purpose of this section;
       ``(5) provide that the contractor will annually report to 
     the Secretary the number of, and describe, programs funded 
     under paragraph (3); and
       ``(6) include such other terms and conditions as the 
     Secretary determines to be appropriate to ensure the 
     effectiveness of such programs.
       ``(c) Restriction on Payments.--The Secretary shall make no 
     payment of the Federal share of the cost of acquiring and 
     distributing books under any contract under this

[[Page 7688]]

     section unless the Secretary determines that the contractor 
     or subcontractor, as the case may be, has made arrangements 
     with book publishers or distributors to obtain books at 
     discounts at least as favorable as discounts that are 
     customarily given by such publisher or distributor for book 
     purchases made under similar circumstances in the absence of 
     Federal assistance.
       ``(d) Definition of Federal Share.--For the purpose of this 
     section, the term `Federal share' means, with respect to the 
     cost to a subcontractor of purchasing books to be paid under 
     this section, 75 percent of such costs to the subcontractor, 
     except that the Federal share for programs serving children 
     of migrant or seasonal farmworkers shall be 100 percent of 
     such costs to the subcontractor.
       ``(e) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $23,000,000 for fiscal year 2002 and such sums 
     as may be necessary for each of the 6 succeeding fiscal 
     years.

                   ``PART B--NATIONAL WRITING PROJECT

     ``SEC. 10151. FINDINGS AND PURPOSES.

       ``(a) Findings.--Congress finds that--
       ``(1) the United States faces a continuing crisis in 
     writing in schools and in the workplace;
       ``(2) the writing problem has been magnified by the rapidly 
     changing student population, the growing number of at-risk 
     students due to limited English proficiency, the shortage of 
     adequately trained teachers, and the specialized knowledge 
     required of teachers to teach students with special needs who 
     are now part of mainstream classrooms;
       ``(3) nationwide reports from universities and colleges 
     show that entering students are unable to meet the demands of 
     college level writing, almost all 2-year institutions of 
     higher education offer remedial writing courses, and three-
     quarters of public 4-year institutions of higher education 
     and half of all private 4-year institutions of higher 
     education must provide remedial courses in writing;
       ``(4) American businesses and corporations are concerned 
     about the limited writing skills of both entry-level workers 
     and executives whose promotions are denied due to inadequate 
     writing abilities;
       ``(5) writing is fundamental to learning, including 
     learning to read, yet writing has been neglected historically 
     in schools and in teacher training institutions;
       ``(6) writing is a central feature in State and school 
     district education standards in all disciplines;
       ``(7) since 1973, the only national program to address the 
     writing problem in the Nation's schools has been the National 
     Writing Project, a network of collaborative university-school 
     programs, the goals of which are to improve student 
     achievement in writing and student learning through improving 
     the teaching and uses of writing at all grade levels and in 
     all disciplines;
       ``(8) the National Writing Project is a nationally 
     recognized and honored nonprofit organization that improves 
     the quality of teaching and teachers through developing 
     teacher-leaders who teach other teachers in summer and school 
     year programs;
       ``(9) evaluations of the National Writing Project document 
     the positive impact the project has had on improving the 
     teaching of writing, student performance in writing, and 
     student learning;
       ``(10) the National Writing Project has become a model for 
     programs to improve teaching in such other fields as 
     mathematics, science, history, reading and literature, 
     performing arts, and foreign languages;
       ``(11) each year, over 150,000 participants benefit from 
     National Writing Project programs in 1 of 156 United States 
     sites located in 46 States and the Commonwealth of Puerto 
     Rico; and
       ``(12) the National Writing Project is a cost-effective 
     program and leverages over 6 dollars for every 1 Federal 
     dollar.
       ``(b) Purpose.--It is the purpose of this part--
       ``(1) to support and promote the expansion of the National 
     Writing Project network of sites so that teachers in every 
     region of the United States will have access to a National 
     Writing Project program;
       ``(2) to ensure the consistent high quality of the sites 
     through ongoing review, evaluation and technical assistance;
       ``(3) to support and promote the establishment of programs 
     to disseminate effective practices and research findings 
     about the teaching of writing; and
       ``(4) to coordinate activities assisted under this part 
     with activities assisted under this Act.

     ``SEC. 10152. NATIONAL WRITING PROJECT.

       ``(a) Authorization.--The Secretary is authorized to award 
     a grant to the National Writing Project, a nonprofit 
     educational organization that has as its primary purpose the 
     improvement of the quality of student writing and learning 
     (hereafter in this section referred to as the `grantee') to 
     improve the teaching of writing and the use of writing as a 
     part of the learning process in our Nation's classrooms.
       ``(b) Requirements of Grant.--The grant shall provide 
     that--
       ``(1) the grantee will enter into contracts with 
     institutions of higher education or other nonprofit 
     educational providers (hereafter in this section referred to 
     as `contractors') under which the contractors will agree to 
     establish, operate, and provide the non-Federal share of the 
     cost of teacher training programs in effective approaches and 
     processes for the teaching of writing;
       ``(2) funds made available by the Secretary to the grantee 
     pursuant to any contract entered into under this section will 
     be used to pay the Federal share of the cost of establishing 
     and operating teacher training programs as provided in 
     paragraph (1); and
       ``(3) the grantee will meet such other conditions and 
     standards as the Secretary determines to be necessary to 
     assure compliance with the provisions of this section and 
     will provide such technical assistance as may be necessary to 
     carry out the provisions of this section.
       ``(c) Teacher Training Programs.--The teacher training 
     programs authorized in subsection (a) shall--
       ``(1) be conducted during the school year and during the 
     summer months;
       ``(2) train teachers who teach grades kindergarten through 
     college;
       ``(3) select teachers to become members of a National 
     Writing Project teacher network whose members will conduct 
     writing workshops for other teachers in the area served by 
     each National Writing Project site; and
       ``(4) encourage teachers from all disciplines to 
     participate in such teacher training programs.
       ``(d) Federal Share.--
       ``(1) In general.--Except as provided in paragraph (2) or 
     (3) and for purposes of subsection (a), the term `Federal 
     share' means, with respect to the costs of teacher training 
     programs authorized in subsection (a), 50 percent of such 
     costs to the contractor.
       ``(2) Waiver.--The Secretary may waive the provisions of 
     paragraph (1) on a case-by-case basis if the National 
     Advisory Board described in subsection (e) determines, on the 
     basis of financial need, that such waiver is necessary.
       ``(3) Maximum.--The Federal share of the costs of teacher 
     training programs conducted pursuant to subsection (a) may 
     not exceed $100,000 for any one contractor, or $200,000 for a 
     statewide program administered by any one contractor in at 
     least 5 sites throughout the State.
       ``(e) National Advisory Board.--
       ``(1) Establishment.--The National Writing Project shall 
     establish and operate a National Advisory Board.
       ``(2) Composition.--The National Advisory Board established 
     pursuant to paragraph (1) shall consist of--
       ``(A) national educational leaders;
       ``(B) leaders in the field of writing; and
       ``(C) such other individuals as the National Writing 
     Project determines necessary.
       ``(3) Duties.--The National Advisory Board established 
     pursuant to paragraph (1) shall--
       ``(A) advise the National Writing Project on national 
     issues related to student writing and the teaching of 
     writing;
       ``(B) review the activities and programs of the National 
     Writing Project; and
       ``(C) support the continued development of the National 
     Writing Project.
       ``(f) Evaluation.--
       ``(1) In general.--The Secretary shall conduct an 
     independent evaluation by grant or contract of the teacher 
     training programs administered pursuant to this part. Such 
     evaluation shall specify the amount of funds expended by the 
     National Writing Project and each contractor receiving 
     assistance under this section for administrative costs. The 
     results of such evaluation shall be made available to the 
     appropriate committees of Congress.
       ``(2) Funding limitation.--The Secretary shall reserve not 
     more than $150,000 from the total amount appropriated 
     pursuant to the authority of subsection (h) for fiscal year 
     2002 and the 6 succeeding fiscal years to conduct the 
     evaluation described in paragraph (1).
       ``(g) Application Review.--
       ``(1) Review board.--The National Writing Project shall 
     establish and operate a National Review Board that shall 
     consist of--
       ``(A) leaders in the field of research in writing; and
       ``(B) such other individuals as the National Writing 
     Project deems necessary.
       ``(2) Duties.--The National Review Board shall--
       ``(A) review all applications for assistance under this 
     subsection; and
       ``(B) recommend applications for assistance under this 
     subsection for funding by the National Writing Project.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated for the grant to the National 
     Writing Project, $15,000,000 for fiscal year 2002, and such 
     sums as may be necessary for each of the 6 succeeding fiscal 
     years, to carry out the provisions of this section.

                ``PART C--READY TO LEARN; READY TO TEACH

                      ``Subpart 1--Ready to Learn

     ``SEC. 10201. SHORT TITLE; FINDINGS.

       ``(a) Short Title.--This part may be cited as the `Ready to 
     Learn, Ready to Teach Act of 2001'.
       ``(b) Findings.--Congress makes the following findings:

[[Page 7689]]

       ``(1) In 1994, Congress and the Department collaborated to 
     make a long-term, meaningful and public investment in the 
     principle that high quality preschool television programming 
     will help children be ready to learn by the time the children 
     entered first grade.
       ``(2) The Ready to Learn Television Program through the 
     Public Broadcasting Service (PBS) and local public television 
     stations has proven to be an extremely cost-effective 
     national response to improving early childhood cognitive 
     development and helping parents, caregivers, and professional 
     child care providers learn how to use television as a means 
     to help children learn and develop social skills and values.
       ``(3) Independent research shows that parents who 
     participate in Ready to Learn workshops are more selective of 
     the programs that they choose for their children, limit the 
     number of hours of television viewing of their children, and 
     use the television programs as a catalyst for learning.
       ``(4) The Ready to Learn (RTL) Television Program is 
     supporting and creating commercial-free broadcast programs 
     for young children that are of the highest possible 
     educational quality.
       ``(5) Through the Nation's 350 local public television 
     stations, these programs and other programming elements reach 
     tens of millions of children, their parents, and caregivers 
     without regard to their economic circumstances, location, or 
     access to cable. Public television is a partner with Federal 
     policy to make television an instrument of preschool 
     children's education and early development.
       ``(6) The Ready to Learn Television Program supports 
     thousands of local workshops organized and run by local 
     public television stations, child care service providers, 
     Head Start Centers, Even Start family literacy centers and 
     schools. These workshops have trained 630,587 parents and 
     professionals who, in turn, serve and support over 6,312,000 
     children across the Nation.
       ``(7) The Ready to Learn Television Program has published 
     and distributed a periodic magazine entitled `PBS Families' 
     that contains developmentally appropriate material to 
     strengthen reading skills and enhance family literacy.
       ``(8) Ready to Learn Television stations also have 
     distributed millions of age-appropriate books in their 
     communities. Each station receives a minimum of 300 books 
     each month for free local distribution. Some stations are now 
     distributing more than 1,000 books per month. Nationwide, 
     more than 653,494 books have been distributed in low-income 
     and disadvantaged neighborhoods free of charge.
       ``(9) Demand for Ready To Learn Television Program outreach 
     and training has increased from 10 Public Broadcasting 
     Service stations to 133 stations in 5 years. This growth has 
     put a strain on available resources resulting in an inability 
     to meet the demand for the service and to reach all the 
     children who would benefit from the service.
       ``(10) Federal policy played a crucial role in the 
     evolution of analog television by funding the television 
     program entitled `Sesame Street' in the 1960's. Federal 
     policy should continue to play an equally crucial role for 
     children in the digital television age.

     ``SEC. 10202. READY TO LEARN.

       ``(a) In General.--The Secretary is authorized to award 
     grants to eligible entities described in section 10203(b) to 
     develop, produce, and distribute educational and 
     instructional video programming for preschool and elementary 
     school children and their parents in order to facilitate the 
     achievement of the National Education Goals.
       ``(b) Availability.--In making such grants, the Secretary 
     shall ensure that eligible entities make programming widely 
     available, with support materials as appropriate, to young 
     children, their parents, child care workers, and Head Start 
     providers to increase the effective use of such programming.

     ``SEC. 10203. EDUCATIONAL PROGRAMMING.

       ``(a) Awards.--The Secretary shall award grants under 
     section 10202 to eligible entities to--
       ``(1) facilitate the development directly, or through 
     contracts with producers of children and family educational 
     television programming, of--
       ``(A) educational programming for preschool and elementary 
     school children; and
       ``(B) accompanying support materials and services that 
     promote the effective use of such programming;
       ``(2) facilitate the development of programming and digital 
     content especially designed for nationwide distribution over 
     public television stations' digital broadcasting channels and 
     the Internet, containing Ready to Learn-based children's 
     programming and resources for parents and caregivers; and
       ``(3) enable eligible entities to contract with entities 
     (such as public telecommunications entities) so that programs 
     developed under this section are disseminated and 
     distributed--
       (A) to the widest possible audience appropriate to be 
     served by the programming; and
       (B) by the most appropriate distribution technologies.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under subsection (a), an entity shall be--
       ``(1) a public telecommunications entity that is able to 
     demonstrate a capacity for the development and national 
     distribution of educational and instructional television 
     programming of high quality for preschool and elementary 
     school children;
       ``(2) able to demonstrate a capacity to contract with the 
     producers of children's television programming for the 
     purpose of developing educational television programming of 
     high quality for preschool and elementary school children; 
     and
       ``(3) able to demonstrate a capacity to localize 
     programming and materials to meet specific State and local 
     needs and provide educational outreach at the local level.
       ``(c) Cultural Experiences.--Programming developed under 
     this section shall reflect the recognition of rural and urban 
     cultural and ethnic diversity of the Nation's children and 
     the needs of both boys and girls in preparing young children 
     for success in school.

     ``SEC. 10204. DUTIES OF SECRETARY.

       ``The Secretary is authorized--
       ``(1) to award grants to eligible entities described in 
     section 10203(b), local public television stations, or such 
     public television stations that are part of a consortium with 
     1 or more State educational agencies, local educational 
     agencies, local schools, institutions of higher education, or 
     community-based organizations of demonstrated effectiveness, 
     for the purpose of--
       ``(A) addressing the learning needs of young children in 
     limited English proficient households, and developing 
     appropriate educational and television programming to foster 
     the school readiness of such children;
       ``(B) developing programming and support materials to 
     increase family literacy skills among parents to assist 
     parents in teaching their children and utilizing educational 
     television programming to promote school readiness; and
       ``(C) identifying, supporting, and enhancing the effective 
     use and outreach of innovative programs that promote school 
     readiness;
       ``(D) developing and disseminating education and training 
     materials, including--
       ``(i) interactive programs and programs adaptable to 
     distance learning technologies that are designed to enhance 
     knowledge of children's social and cognitive skill 
     development and positive adult-child interactions;
       ``(ii) teacher training and professional development to 
     ensure qualified caregivers; and
       ``(iii) support materials to promote the effective use of 
     materials developed under subparagraph (B) among parents, 
     Head Start providers, in-home and center-based daycare 
     providers, early childhood development personnel, elementary 
     school teachers, public libraries, and after-school program 
     personnel caring for preschool and elementary school 
     children; and
       ``(E) distributing books to low-income individuals to 
     leverage high-quality television programming;
       ``(2) to establish within the Department a clearinghouse to 
     compile and provide information, referrals, and model program 
     materials and programming obtained or developed under this 
     subpart to parents, child care providers, and other 
     appropriate individuals or entities to assist such 
     individuals and entities in accessing programs and projects 
     under this subpart; and
       ``(3) to coordinate activities assisted under this subpart 
     with the Secretary of Health and Human Services in order to--
       ``(A) maximize the utilization of quality educational 
     programming by preschool and elementary school children, and 
     make such programming widely available to federally funded 
     programs serving such populations; and
       ``(B) provide information to recipients of funds under 
     Federal programs that have major training components for 
     early childhood development, including programs under the 
     Head Start Act and Even Start, and State training activities 
     funded under the Child Care Development Block Grant Act of 
     1990, regarding the availability and utilization of materials 
     developed under paragraph (1)(D) to enhance parent and child 
     care provider skills in early childhood development and 
     education.

     ``SEC. 10205. APPLICATIONS.

       ``Each entity desiring a grant under section 10202 or 10204 
     shall submit an application to the Secretary at such time, in 
     such manner, and accompanied by such information as the 
     Secretary may reasonably require.

     ``SEC. 10206. REPORTS AND EVALUATION.

       ``(a) Annual Report to Secretary.--An eligible entity 
     receiving funds under section 10202 shall prepare and submit 
     to the Secretary an annual report which contains such 
     information as the Secretary may require. At a minimum, the 
     report shall describe the program activities undertaken with 
     funds received under section 10202, including--
       ``(1) the programming that has been developed directly or 
     indirectly by the eligible entity, and the target population 
     of the programs developed;
       ``(2) the support materials that have been developed to 
     accompany the programming, and the method by which such 
     materials are distributed to consumers and users of the 
     programming;

[[Page 7690]]

       ``(3) the means by which programming developed under this 
     section has been distributed, including the distance learning 
     technologies that have been utilized to make programming 
     available and the geographic distribution achieved through 
     such technologies; and
       ``(4) the initiatives undertaken by the eligible entity to 
     develop public-private partnerships to secure non-Federal 
     support for the development, distribution, and broadcast of 
     educational and instructional programming.
       ``(b) Report to Congress.--The Secretary shall prepare and 
     submit to the relevant committees of Congress a biannual 
     report which includes--
       ``(1) a summary of activities assisted under section 
     10203(a); and
       ``(2) a description of the training materials made 
     available under section 10204(1)(D), the manner in which 
     outreach has been conducted to inform parents and child care 
     providers of the availability of such materials, and the 
     manner in which such materials have been distributed in 
     accordance with such section.

     ``SEC. 10207. ADMINISTRATIVE COSTS.

       ``With respect to the implementation of section 10203, 
     eligible entities receiving a grant from the Secretary may 
     use not more than 5 percent of the amounts received under 
     such section for the normal and customary expenses of 
     administering the grant.

     ``SEC. 10208. DEFINITION.

       ``For the purposes of this subpart, the term `distance 
     learning' means the transmission of educational or 
     instructional programming to geographically dispersed 
     individuals and groups via telecommunications.

     ``SEC. 10209. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart, $50,000,000 for fiscal year 2002, 
     and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       ``(b) Funding Rule.--Not less than 60 percent of the 
     amounts appropriated under subsection (a) for each fiscal 
     year shall be used to carry out section 10203.

                      ``Subpart 2--Ready to Teach

     ``SEC. 10251. FINDINGS.

       ``Congress makes the following findings:
       ``(1) Since 1995, the Telecommunications Demonstration 
     Project for Mathematics (as established under this part 
     pursuant to the Improving America's Schools Act of 1994) has 
     allowed the Public Broadcasting Service to pioneer and refine 
     a new model of teacher professional development for 
     kindergarten through grade 12 teachers. Video modeling of 
     standards-based lessons, combined with professionally 
     facilitated online learning communities of teachers has been 
     proven to help mathematics teachers adopt and implement 
     standards-based practices. This integrated, self-paced 
     approach breaks down the isolation of classroom teaching 
     while making standards-based best practices available to all 
     participants.
       ``(2) More than 5,800 teachers have participated over the 
     last 3 years in the demonstration. These teachers have taught 
     more than 1,500,000 students cumulatively.
       ``(3) Independent evaluations indicate that teaching 
     improves and students benefit as a result of the program.
       ``(4) The demonstration program should be expanded to reach 
     more teachers in more subject areas under the title of 
     Teacherline. The Teacherline Program will link the digitized 
     public broadcasting infrastructure with education networks by 
     working with the program's digital membership, and Federal 
     and State agencies, to expand and build upon the successful 
     model and take advantage of greatly expanded access to the 
     Internet and technology in schools, including digital 
     television. The Teacherline Program will leverage the Public 
     Broadcasting Service's historic relationships with higher 
     education to improve preservice teacher training.
       ``(5) Over the past several years tremendous progress has 
     been made in wiring classrooms, equipping the classrooms with 
     multimedia computers, and connecting the classrooms to the 
     Internet.
       ``(6) There is a great need for high quality, curriculum-
     based digital content for teachers and students to easily 
     access and use in order to meet State and local standards for 
     student performance.
       ``(7) The congressionally appointed Web-based Education 
     Commission called for the development of high quality public-
     private online educational content that meets the highest 
     standards of educational excellence.
       ``(8) Most local public television stations and State 
     networks provide high-quality video programs, and teacher 
     professional development, as a part of their mission to serve 
     local schools. Programs distributed by public broadcast 
     stations are used by more classroom teachers than any other 
     because of their high quality and relevance to the 
     curriculum.
       ``(9) Digital broadcasting can dramatically increase and 
     improve the types of services public broadcasting stations 
     can offer kindergarten through grade 12 schools.

     ``SEC. 10252. PROJECT AUTHORIZED.

       ``(a) Grants Authorized.--The Secretary is authorized to 
     make grants to a nonprofit telecommunications entity, or 
     partnership of such entities, for the purpose of carrying out 
     a national telecommunications-based program to improve 
     teaching in core curriculum areas. The program shall be 
     designed to assist elementary school and secondary school 
     teachers in preparing all students for achieving State and 
     local content standards in core curriculum areas.
       ``(b) Programming.--The Secretary is also authorized to 
     award grants to eligible entities described in section 
     10254(b) to develop, produce, and distribute innovative 
     educational and instructional video programming that is 
     designed for use by kindergarten through grade 12 schools and 
     based on State and local standards. In making the grants, the 
     Secretary shall ensure that eligible entities enter into 
     multiyear content development collaborative arrangements with 
     State educational agencies, local educational agencies, 
     institutions of higher education, businesses, or other 
     agencies and organizations.

     ``SEC. 10253. APPLICATION REQUIRED.

       ``(a) In General.--Each nonprofit telecommunications 
     entity, or partnership of such entities, desiring a grant 
     under section 10252(a) shall submit an application to the 
     Secretary. Each such application shall--
       ``(1) demonstrate that the applicant will use the public 
     broadcasting infrastructure and school digital networks, 
     where available, to deliver video and data in an integrated 
     service to train teachers in the use of standards-based 
     curricula materials and learning technologies;
       ``(2) ensure that the project for which assistance is 
     sought will be conducted in cooperation with appropriate 
     State educational agencies, local educational agencies, 
     national, State or local nonprofit public telecommunications 
     entities, and national education professional associations 
     that have developed content standards in the subject areas;
       ``(3) ensure that a significant portion of the benefits 
     available for elementary schools and secondary schools from 
     the project for which assistance is sought will be available 
     to schools of local educational agencies which have a high 
     percentage of children counted for the purpose of part A of 
     title I; and
       ``(4) contain such additional assurances as the Secretary 
     may reasonably require.
       ``(b) Sites.--In approving applications under section 
     10252(a), the Secretary shall ensure that the program 
     authorized by section 10252(a) is conducted at elementary 
     school and secondary school sites across the Nation.
       ``(c) Application.--Each eligible entity desiring a grant 
     under section 10252(b) shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.

     ``SEC. 10254. REPORTS AND EVALUATION.

       ``An eligible entity receiving funds under section 10252(a) 
     shall prepare and submit to the Secretary an annual report 
     which contains such information as the Secretary may require. 
     At a minimum, the report shall described the program 
     activities undertaken with funds received under section 
     10252(a), including--
       ``(1) the core curriculum areas for which program 
     activities have been undertaken and the number of teachers 
     using the program in each core curriculum area; and
       ``(2) the States in which teachers using the program are 
     located.

     ``SEC. 10255. EDUCATIONAL PROGRAMMING.

       ``(a) Awards.--The Secretary shall award grants under 
     section 10252(b) to eligible entities to facilitate the 
     development of educational programming that shall--
       ``(1) include student assessment tools to give feedback on 
     student performance;
       ``(2) include built-in teacher utilization and support 
     components to ensure that teachers understand and can easily 
     use the content of the programming with group instruction or 
     for individual student use;
       ``(3) be created for, or adaptable to, State and local 
     content standards; and
       ``(4) be capable of distribution through digital 
     broadcasting and school digital networks.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under section 10252(b), an entity shall be a local public 
     telecommunications entity as defined by section 397(12) of 
     the Communications Act of 1934 that is able to demonstrate a 
     capacity for the development and distribution of educational 
     and instructional television programming of high quality.
       ``(c) Competitive Basis.--Grants under section 10252(b) 
     shall be awarded on a competitive basis as determined by the 
     Secretary.
       ``(d) Duration.--Each grant under section 10252(b) shall be 
     awarded for a period of 3 years in order to allow time for 
     the creation of a substantial body of significant content.

     ``SEC. 10256. MATCHING REQUIREMENT.

       ``Each eligible entity desiring a grant under section 
     10252(b) shall contribute to the activities assisted under 
     section 10252(b) non-Federal matching funds equal to not less 
     than 100 percent of the amount of the grant. Matching funds 
     may include funds provided for the transition to digital 
     broadcasting, as well as in-kind contributions.

     ``SEC. 10257. ADMINISTRATIVE COSTS.

       ``With respect to the implementation of section 10252(b), 
     entities receiving a grant

[[Page 7691]]

     from the Secretary may use not more than 5 percent of the 
     amounts received under the grant for the normal and customary 
     expenses of administering the grant.

     ``SEC. 10258. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULES.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart, $45,000,000 for the fiscal year 
     2002, and such sums as may be necessary for each of the 6 
     succeeding fiscal years.
       ``(b) Funding Rule.--For any fiscal year in which 
     appropriations for section 10252 exceed the amount 
     appropriated for such section for the preceding fiscal year, 
     the Secretary shall only award the amount of such excess 
     minus at least $500,000 to applicants under section 10252(b).

                   ``PART D--EDUCATION FOR DEMOCRACY

     ``SEC. 10301. SHORT TITLE.

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

     ``SEC. 10302. FINDINGS.

       ``Congress finds that--
       ``(1) college freshmen surveyed in 1999 by the Higher 
     Education Research Institute at the University of California 
     at Los Angeles demonstrated higher levels of disengagement, 
     both academically and politically, than any previous entering 
     class of students;
       ``(2) college freshmen in 1999 demonstrated the lowest 
     levels of political interest in the 20-year history of 
     surveys conducted by the Higher Education Research Institute 
     at the University of California at Los Angeles;
       ``(3) United States secondary school students expressed 
     relatively low levels of interest in politics and economics 
     in a 1999 Harris survey;
       ``(4) the 32d Annual Phi Delta Kappa/Gallup Poll of 2000 
     indicated that preparing students to become responsible 
     citizens was the most important purpose of public schools;
       ``(5) Americans surveyed by the Organization of Economic 
     Cooperation and Development indicated that only 59 percent 
     had confidence that schools have a major effect on the 
     development of good citizenship;
       ``(6) teachers too often do not have sufficient expertise 
     in the subjects that they teach, and half of all secondary 
     school history students in America are being taught by 
     teachers with neither a major nor a minor in history;
       ``(7) secondary school students correctly answered less 
     than half of the questions on a national test of economic 
     knowledge in a 1999 Harris survey;
       ``(8) the 1998 National Assessment of Educational Progress 
     indicated that students have only superficial knowledge of, 
     and lacked a depth of understanding regarding, civics;
       ``(9) civic and economic education are important not only 
     to developing citizenship competencies in the United States 
     but also are critical to supporting political stability and 
     economic health in other democracies, particularly emerging 
     democratic market economies;
       ``(10) more than three quarters of Americans surveyed by 
     the National Constitution Center in 1997 admitted that they 
     knew only some or very little about the Constitution of the 
     United States; and




       ``(11) the Constitution of the United States is too often 
     viewed within the context of history and not as a living 
     document that shapes current events.

     ``SEC. 10303. PURPOSE.

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

     ``SEC. 10304. GENERAL AUTHORITY.

       ``(a) Grants and Contracts.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to or enter into contracts with--
       ``(A) the Center for Civic Education to carry out civic 
     education activities under sections 10305 and 10306; and
       ``(B) the National Council on Economic Education to carry 
     out economic education activities under section 10306.
       ``(2) Consultation.--The Secretary shall award the grants 
     and contracts under this part in consultation with the 
     Secretary of State.
       ``(b) Distribution.--The Secretary shall use not more than 
     50 percent of the amount appropriated under section 10307(b) 
     for each fiscal year to carry out economic education 
     activities under section 10306.

     ``SEC. 10305. WE THE PEOPLE PROGRAM.

       ``(a) The Citizen and the Constitution.--
       ``(1) In general.--The Center for Civic Education shall use 
     funds awarded under section 10304(a)(1)(A) to carry out The 
     Citizen and the Constitution program in accordance with this 
     subsection.
       ``(2) Educational activities.--The Citizen and the 
     Constitution program--
       ``(A) shall continue and expand the educational activities 
     of the `We the People . . . The Citizen and the Constitution' 
     program administered by the Center for Civic Education;
       ``(B) shall enhance student attainment of challenging 
     content standards in civics and government;
       ``(C) shall provide a course of instruction on the basic 
     principles of our Nation's constitutional democracy and the 
     history of the Constitution of the United States and the Bill 
     of Rights;
       ``(D) shall provide, at the request of a participating 
     school, school and community simulated congressional hearings 
     following the course of study;
       ``(E) shall provide an annual national competition of 
     simulated congressional hearings for secondary school 
     students who wish to participate in such a program; and
       ``(F) shall provide--
       ``(i) advanced sustained and ongoing training of teachers 
     about the Constitution of the United States and the political 
     system the United States created;
       ``(ii) materials and methods of instruction, including 
     teacher training, that utilize the latest advancements in 
     educational technology; and
       ``(iii) civic education materials and services to address 
     specific problems such as the prevention of school violence 
     and the abuse of drugs and alcohol.
       ``(3) Availability of program.--The education program 
     authorized under this subsection shall be made available to 
     public and private elementary schools and secondary schools, 
     including Bureau funded schools, in the 435 congressional 
     districts, and in the District of Columbia, the Commonwealth 
     of Puerto Rico, the United States Virgin Islands, Guam, 
     American Samoa, and the Commonwealth of the Northern Mariana 
     Islands.
       ``(b) Project Citizen.--
       ``(1) In general.--The Center for Civic Education shall use 
     funds awarded under section 10304(a)(1)(A) to carry out The 
     Project Citizen program in accordance with this subsection.
       ``(2) Educational activities.--The Project Citizen 
     program--
       ``(A) shall continue and expand the educational activities 
     of the `We the People . . . Project Citizen' program 
     administered by the Center for Civic Education;
       ``(B) shall enhance student attainment of challenging 
     content standards in civics and government;
       ``(C) shall provide a course of instruction at the middle 
     school level on the roles of State and local governments in 
     the Federal system established by the Constitution of the 
     United States;
       ``(D) shall provide an annual national showcase or 
     competition; and
       ``(E) shall provide--
       ``(i) optional school and community simulated State 
     legislative hearings;
       ``(ii) advanced sustained and ongoing training of teachers 
     on the roles of State and local governments in the Federal 
     system established by the Constitution of the United States;
       ``(iii) materials and methods of instruction, including 
     teacher training, that utilize the latest advancements in 
     educational technology; and
       ``(iv) civic education materials and services to address 
     specific problems such as the prevention of school violence 
     and the abuse of drugs and alcohol.
       ``(3) Availability of program.--The education program 
     authorized under this subsection shall be made available to 
     public and private middle schools, including Bureau funded 
     schools, in the 50 States of the United States, the District 
     of Columbia, the Commonwealth of Puerto Rico, the United 
     States Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.
       ``(c) Definition of Bureau Funded School.--In this section, 
     the term `Bureau funded school' has the meaning given the 
     term in section 1146 of the Education Amendments of 1978.

     ``SEC. 10306. COOPERATIVE CIVIC EDUCATION AND ECONOMIC 
                   EDUCATION EXCHANGE PROGRAMS.

       ``(a) Cooperative Education Exchange Programs.--The Center 
     for Civic Education and the National Council on Economic 
     Education shall use funds awarded under section 10304(a)(1) 
     to carry out Cooperative Education Exchange programs in 
     accordance with this section.
       ``(b) Purpose.--The purpose of the Cooperative Education 
     Exchange programs provided under this section shall be to--
       ``(1) make available to educators from eligible countries 
     exemplary curriculum and teacher training programs in civics 
     and government education, and economics education, developed 
     in the United States;
       ``(2) assist eligible countries in the adaptation, 
     implementation, and institutionalization of such programs;
       ``(3) create and implement civics and government education, 
     and economic education, programs for students that draw upon 
     the experiences of the participating eligible countries;
       ``(4) provide a means for the exchange of ideas and 
     experiences in civics and government education, and economic 
     education, among political, educational, governmental, and 
     private sector leaders of participating eligible countries; 
     and

[[Page 7692]]

       ``(5) provide support for--
       ``(A) independent research and evaluation to determine the 
     effects of educational programs on students' development of 
     the knowledge, skills, and traits of character essential for 
     the preservation and improvement of constitutional democracy; 
     and
       ``(B) effective participation in and the preservation and 
     improvement of an efficient market economy.
       ``(c) Avoidance of Duplication.--The Secretary shall 
     consult with the Secretary of State to ensure that--
       ``(1) activities under this section are not duplicative of 
     other efforts in the eligible countries; and
       ``(2) partner institutions in the eligible countries are 
     creditable.
       ``(d) Activities.--The Cooperative Education Exchange 
     programs shall--
       ``(1) provide eligible countries with--
       ``(A) seminars on the basic principles of United States 
     constitutional democracy and economics, including seminars on 
     the major governmental and economic institutions and systems 
     in the United States, and visits to such institutions;
       ``(B) visits to school systems, institutions of higher 
     education, and nonprofit organizations conducting exemplary 
     programs in civics and government education, and economic 
     education, in the United States;
       ``(C) translations and adaptations regarding United States 
     civic and government education, and economic education, 
     curricular programs for students and teachers, and in the 
     case of training programs for teachers translations and 
     adaptations into forms useful in schools in eligible 
     countries, and joint research projects in such areas; and
       ``(D) independent research and evaluation assistance to 
     determine--
       ``(i) the effects of the Cooperative Education Exchange 
     programs on students' development of the knowledge, skills, 
     and traits of character essential for the preservation and 
     improvement of constitutional democracy; and
       ``(ii) effective participation in and the preservation and 
     improvement of an efficient market economy;
       ``(2) provide United States participants with--
       ``(A) seminars on the histories, economies, and systems of 
     government of eligible countries;
       ``(B) visits to school systems, institutions of higher 
     education, and organizations conducting exemplary programs in 
     civics and government education, and economic education, 
     located in eligible countries;
       ``(C) assistance from educators and scholars in eligible 
     countries in the development of curricular materials on the 
     history, government, and economy of such countries that are 
     useful in United States classrooms;
       ``(D) opportunities to provide onsite demonstrations of 
     United States curricula and pedagogy for educational leaders 
     in eligible countries; and
       ``(E) independent research and evaluation assistance to 
     determine--
       ``(i) the effects of the Cooperative Education Exchange 
     programs on students' development of the knowledge, skills, 
     and traits of character essential for the preservation and 
     improvement of constitutional democracy; and
       ``(ii) effective participation in and improvement of an 
     efficient market economy; and
       ``(3) assist participants from eligible countries and the 
     United States to participate in conferences on civics and 
     government education, and economic education, for educational 
     leaders, teacher trainers, scholars in related disciplines, 
     and educational policymakers.
       ``(e) Participants.--The primary participants in the 
     Cooperative Education Exchange programs assisted under this 
     section shall be educational leaders in the areas of civics 
     and government education, and economic education, including 
     teachers, curriculum and teacher training specialists, 
     scholars in relevant disciplines, and educational 
     policymakers, and government and private sector leaders from 
     the United States and eligible countries.
       ``(f) Definition of Eligible Country.--For the purpose of 
     this section, the term `eligible country' means a Central 
     European country, an Eastern European country, Lithuania, 
     Latvia, Estonia, the independent states of the former Soviet 
     Union as defined in section 3 of the FREEDOM Support Act (22 
     U.S.C. 5801), and may include the Republic of Ireland, the 
     province of Northern Ireland in the United Kingdom, and any 
     developing country, as defined in section 209(d) of the 
     Education for the Deaf Act, that has a democratic form of 
     government as determined by the Secretary in consultation 
     with the Secretary of State.

     ``SEC. 10307. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Section 10304.--There are authorized to be 
     appropriated to carry out section 10304, $15,000,000 for 
     fiscal year 2002 and such sums as may be necessary for each 
     of the fiscal years 2003 through 2008.
       ``(b) Section 10305.--There are authorized to be 
     appropriated to carry out section 10305, $12,000,000 for 
     fiscal year 2002, and such sums as may be necessary for each 
     of the fiscal years 2003 through 2008.

                 ``PART E--GIFTED AND TALENTED CHILDREN

     ``SEC. 10401. SHORT TITLE.

       ``This part may be cited as the `Jacob K. Javits Gifted and 
     Talented Students Education Act of 2001'.

     ``SEC. 10402. FINDINGS.

       ``Congress finds the following:
       ``(1) While the families or communities of some gifted 
     students can provide private programs with appropriately 
     trained staff to supplement public educational offerings, 
     most high-ability students, especially those from inner 
     cities, rural communities, or low-income families, must rely 
     on the services and personnel provided by public schools. 
     Therefore, gifted education programs, provided by qualified 
     professionals in the public schools, are needed to provide 
     equal educational opportunities.
       ``(2) Due to the wide dispersal of students who are gifted 
     and talented and the national interest in a well-educated 
     populace, the Federal Government can most effectively and 
     appropriately conduct research and development to provide an 
     infrastructure for, and to ensure that there is, a national 
     capacity to educate students who are gifted and talented to 
     meet the needs of the 21st century.
       ``(3) State and local educational agencies often lack the 
     specialized resources and trained personnel to consistently 
     plan and implement effective programs for the identification 
     of gifted and talented students and for the provision of 
     educational services and programs appropriate for their 
     needs.
       ``(4) Because gifted and talented students generally are 
     more advanced academically, are able to learn more quickly, 
     and study in more depth and complexity than others their age, 
     their educational needs require opportunities and experiences 
     that are different from those generally available in regular 
     education programs.
       ``(5) Typical elementary school students who are 
     academically gifted and talented already have mastered 35 to 
     50 percent of the school year's content in several subject 
     areas before the year begins. Without an advanced and 
     challenging curriculum, they often lose their motivation and 
     develop poor study habits that are difficult to break.
       ``(6) Elementary school and secondary school teachers have 
     students in their classrooms with a wide variety of traits, 
     characteristics, and needs. Most teachers receive some 
     training to meet the needs of these students, such as 
     students with limited English proficiency, students with 
     disabilities, and students from diverse cultural and racial 
     backgrounds. However, most teachers do not receive training 
     on meeting the needs of students who are gifted and talented.

     ``SEC. 10403. CONDITIONS ON EFFECTIVENESS OF SUBPART 2.

       ``(a) In General.--Subpart 2 shall be in effect only for--
       ``(1) the first fiscal year for which the amount 
     appropriated to carry out this part equals or exceeds 
     $50,000,000; and
       ``(2) all succeeding fiscal years.

                 ``Subpart 1--National Research Program

     ``SEC. 10411. PURPOSE.

       ``The purpose of this subpart is to initiate a coordinated 
     program of research, demonstration projects, innovative 
     strategies, and similar activities designed to build a 
     nationwide capability in elementary schools and secondary 
     schools to meet the special educational needs of gifted and 
     talented students.

     ``SEC. 10412. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND 
                   TALENTED STUDENTS.

       ``(a) Establishment of Program.--
       ``(1) In general.--Subject to section 10403, from the sums 
     available to carry out this subpart in any fiscal year, the 
     Secretary shall make grants to, or enter into contracts with, 
     State educational agencies, local educational agencies, 
     institutions of higher education, other public agencies, and 
     other private agencies and organizations (including Indian 
     tribes and Indian organizations (as such terms are defined in 
     section 4 of the Indian Self-Determination and Education 
     Assistance Act) and Native Hawaiian organizations) to assist 
     such agencies, institutions, and organizations in carrying 
     out programs or projects authorized by this subpart that are 
     designed to meet the educational needs of gifted and talented 
     students, including the training of personnel in the 
     education of gifted and talented students and in the use, 
     where appropriate, of gifted and talented services, 
     materials, and methods for all students.
       ``(2) Application.--Each entity desiring assistance under 
     this subpart shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require. Each such application 
     shall describe how--
       ``(A) the proposed gifted and talented services, materials, 
     and methods can be adapted, if appropriate, for use by all 
     students; and
       ``(B) the proposed programs can be evaluated.
       ``(b) Uses of Funds.--Programs and projects assisted under 
     this subpart may include the following:
       ``(1) Carrying out--

[[Page 7693]]

       ``(A) research on methods and techniques for identifying 
     and teaching gifted and talented students, and for using 
     gifted and talented programs and methods to serve all 
     students; and
       ``(B) program evaluations, surveys, and the collection, 
     analysis, and development of information needed to accomplish 
     the purpose of this subpart.
       ``(2) Professional development (including fellowships) for 
     personnel (including leadership personnel) involved in the 
     education of gifted and talented students.
       ``(3) Establishment and operation of model projects and 
     exemplary programs for serving gifted and talented students, 
     including innovative methods for identifying and educating 
     students who may not be served by traditional gifted and 
     talented programs, including summer programs, mentoring 
     programs, service learning programs, and cooperative programs 
     involving business, industry, and education.
       ``(4) Implementing innovative strategies, such as 
     cooperative learning, peer tutoring, and service learning.
       ``(5) Programs of technical assistance and information 
     dissemination, including assistance and information with 
     respect to how gifted and talented programs and methods, 
     where appropriate, may be adapted for use by all students.

     ``SEC. 10413. PROGRAM PRIORITIES.

       ``(a) General Priority.--In the administration of this 
     subpart, the Secretary shall give highest priority to 
     programs and projects designed to develop new information 
     that--
       ``(1) improves the capability of schools to plan, conduct, 
     and improve programs to identify and serve gifted and 
     talented students; and
       ``(2) assists schools in the identification of, and 
     provision of services to, gifted and talented students who 
     may not be identified and served through traditional 
     assessment methods (including economically disadvantaged 
     individuals, individuals of limited English proficiency, and 
     individuals with disabilities).
       ``(b) Service Priority.--In approving applications for 
     assistance under section 10412(a)(2), the Secretary shall 
     ensure that in each fiscal year at least \1/2\ of the 
     applications approved under such section address the priority 
     described in subsection (a)(2).

     ``SEC. 10414. CENTER FOR RESEARCH AND DEVELOPMENT.

       ``(a) In General.--The Secretary (after consultation with 
     experts in the field of the education of gifted and talented 
     students) shall establish a National Research Center in the 
     Education of Gifted and Talented Children and Youth through 
     grants to or contracts with 1 or more institutions of higher 
     education or State educational agencies, or a combination or 
     consortium of such institutions and agencies and other public 
     or private agencies and organizations, for the purpose of 
     carrying out activities described in section 10412.
       ``(b) Director.--Such National Center shall have a 
     Director. The Secretary may authorize the Director to carry 
     out such functions of the National Center as may be agreed 
     upon through arrangements with institutions of higher 
     education, State or local educational agencies, or other 
     public or private agencies and organizations.
       ``(c) Funding.--The Secretary may use not more than 30 
     percent of the funds made available under this subpart for 
     any fiscal year to carry out this section.

     ``SEC. 10415. GENERAL PROVISIONS FOR SUBPART.

       ``(a) Review, Dissemination, and Evaluation.--The 
     Secretary--
       ``(1) shall use a peer review process in reviewing 
     applications under sections 10415(d) and 10412;
       ``(2) shall ensure that information on the activities and 
     results of programs and projects funded under this subpart is 
     disseminated to appropriate State and local educational 
     agencies and other appropriate organizations, including 
     nonprofit private organizations; and
       ``(3) shall evaluate the effectiveness of programs under 
     this subpart, both in terms of the impact on students 
     traditionally served in separate gifted and talented programs 
     and on other students, and submit the results of such 
     evaluation to Congress not later than 2 years after the date 
     of enactment of the Better Education for Students and 
     Teachers Act.
       ``(b) Program Operations.--The Secretary shall ensure that 
     the programs under this subpart are administered within the 
     Department by a person who has recognized professional 
     qualifications and experience in the field of the education 
     of gifted and talented students and who--
       ``(1) shall serve as a focal point of national leadership 
     and information on the educational needs of gifted and 
     talented students and the availability of educational 
     services and programs designed to meet such needs;
       ``(2) shall assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities which reflect the needs of gifted and talented 
     students; and
       ``(3) shall disseminate and consult on the information 
     developed under this subpart with other offices within the 
     Department.
       ``(c) Coordination.--Research activities supported under 
     this subpart--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by such Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out with such Office.
       ``(d) Grants to State Educational Agencies for Authorized 
     Activities.--
       ``(1) In general.--For fiscal year 2002 and succeeding 
     fiscal years, the Secretary shall use the excess amount of 
     funds under subpart 1 to award grants, on a competitive 
     basis, to State educational agencies to begin implementing 
     activities described in section 10422(b).
       ``(2) Excess amount.--For purposes of paragraph (1), the 
     excess amount described in this subsection is the amount (if 
     any) by which the funds appropriated to carry out this 
     subpart for the fiscal year exceed such funds appropriated 
     for fiscal year 2001.
       ``(3) Application.--Each State educational agency desiring 
     a grant under this section shall submit an application to the 
     Secretary that contains the assurances described in section 
     10424(b), with respect to the implementing activities.

                   ``Subpart 2--Formula Grant Program

     ``SEC. 10421. PURPOSE.

       ``The purpose of this subpart is to provide grants to 
     States to support programs, teacher preparation, and other 
     services designed to meet the needs of the Nation's gifted 
     and talented students in elementary schools and secondary 
     schools.

     ``SEC. 10422. ESTABLISHMENT OF PROGRAM; USE OF FUNDS.

       ``(a) In General.--In the case of each State that in 
     accordance with section 10424 submits to the Secretary an 
     application for a fiscal year, subject to section 10403, the 
     Secretary shall make a grant for the fiscal year to the State 
     for the uses specified in subsection (b). The grant shall 
     consist of the allotment determined for the State under 
     section 10423.
       ``(b) Authorized Activities.--Each State receiving a grant 
     under this subpart shall use the funds provided under the 
     grant to assist local educational agencies in the State to 
     develop or expand gifted and talented education programs 
     through 1 or more of the following activities:
       ``(1) Development and implementation of programs to address 
     State and local needs for in-service training programs for 
     general educators, specialists in gifted and talented 
     education, administrators, or other personnel at the 
     elementary school and secondary school levels.
       ``(2) Making materials and services available through State 
     regional educational service centers, institutions of higher 
     education, or other entities.
       ``(3) Supporting innovative approaches and curricula used 
     by local educational agencies (or consortia of such agencies) 
     or schools (or consortia of schools).
       ``(4) Providing funds for challenging, high-level course 
     work, disseminated through new and emerging technologies 
     (including distance learning), for individual students or 
     groups of students in schools and local educational agencies 
     that do not have the resources otherwise to provide such 
     course work.
       ``(c) Competitive Process.--Funds provided under this 
     subpart shall be distributed to local educational agencies 
     through a competitive process that results in an equitable 
     distribution by geographic area within the State.
       ``(d) Limitations on Use of Funds.--
       ``(1) Course work provided through emerging technologies.--
     Activities under subsection (b)(4) may include development of 
     curriculum packages, compensation of distance-learning 
     educators, or other relevant activities, but funds provided 
     under this subpart may not be used for the purchase or 
     upgrading of technological hardware.
       ``(2) State use of funds.--
       ``(A) In general.--A State educational agency receiving a 
     grant under this subpart may not use more than 10 percent of 
     the grant funds for--
       ``(i) dissemination of general program information;
       ``(ii) providing technical assistance under this subpart;
       ``(iii) monitoring and evaluation of programs and 
     activities assisted under this subpart;
       ``(iv) providing support for parental education; and
       ``(v) creating a State gifted education advisory board.
       ``(B) Administrative costs.--A State educational agency may 
     use not more than 50 percent of the funds made available to 
     the State educational agency under subparagraph (A) for 
     administrative costs.
       ``(C) Education, information, and support.--A State 
     educational agency receiving a grant under this subpart may 
     use not more than 2 percent of the grant funds to provide 
     information, education, and support to parents and caregivers 
     of gifted and talented children to enhance their ability to 
     participate in decisions regarding their children's

[[Page 7694]]

     educational programs. Such education, information, and 
     support shall be developed and carried out by parents and 
     caregivers or by parents and caregivers in partnership with 
     the State.

     ``SEC. 10423. ALLOTMENTS TO STATES.

       ``(a) Reservation of Funds.--From the amount made available 
     to carry out this subpart for any fiscal year, the Secretary 
     shall reserve \1/2\ of 1 percent for the Secretary of the 
     Interior for programs under this subpart for teachers, other 
     staff, and administrators in schools operated or funded by 
     the Bureau of Indian Affairs.
       ``(b) State Allotments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall allot the total amount made available to 
     carry out this subpart for any fiscal year and not reserved 
     under subsection (a) to the 50 States, the District of 
     Columbia, and the Commonwealth of Puerto Rico on the basis of 
     their relative populations of individuals aged 5 through 17, 
     as determined by the Secretary on the basis of the most 
     recent satisfactory data.
       ``(2) Minimum grant amount.--No State receiving an 
     allotment under paragraph (1) may receive less than \1/2\ of 
     1 percent of the total amount allotted under such paragraph.
       ``(c) Reallotment.--If any State does not apply for an 
     allotment under this section for any fiscal year, the 
     Secretary shall reallot such amount to the remaining States 
     in accordance with this section.

     ``SEC. 10424. STATE APPLICATION.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State educational agency shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(b) Contents.--Each application under this section shall 
     include assurances that--
       ``(1) funds received under this subpart will be used to 
     support gifted and talented students in public schools and 
     public charter schools, including students from all economic, 
     ethnic, and racial backgrounds, students of limited English 
     proficiency, students with disabilities, and highly gifted 
     students;
       ``(2) the funds not retained by the State educational 
     agency shall be used for the purpose of making, in accordance 
     with this subpart and on a competitive basis, grants to local 
     educational agencies;
       ``(3) funds received under this subpart shall be used only 
     to supplement, but not supplant, the amount of State and 
     local funds expended for specialized education and related 
     services provided for the education of gifted and talented 
     students;
       ``(4) the State educational agency will provide matching 
     funds for the activities to be assisted under this subpart in 
     an amount equal to not less than 20 percent of the grant 
     funds to be received; and
       ``(5) the State educational agency shall develop and 
     implement program assessment models to ensure program 
     accountability and to evaluate educational effectiveness.
       ``(c) Approval.--To the extent funds are made available for 
     this subpart, the Secretary shall approve an application of a 
     State if such application meets the requirements of this 
     section.

     ``SEC. 10425. DISTRIBUTION TO LOCAL EDUCATIONAL AGENCIES.

       ``(a) Grant Competition.--A State educational agency shall 
     use not less than 88 percent of the funds made available to 
     the State educational agency under this subpart to award 
     grants, on a competitive basis, to local educational agencies 
     (including consortia of local educational agencies) to 
     support programs, classes, and other services designed to 
     meet the needs of gifted and talented students.
       ``(b) Size of Grant.--A State educational agency shall 
     award a grant under subsection (a) for any fiscal year in an 
     amount sufficient to meet the needs of the students to be 
     served under the grant.

     ``SEC. 10426. LOCAL APPLICATIONS.

       ``(a) Application.--To be eligible to receive a grant under 
     this subpart, a local educational agency (including a 
     consortium of local educational agencies) shall submit an 
     application to the State educational agency.
       ``(b) Contents.--Each such application shall include--
       ``(1) an assurance that the funds received under this 
     subpart will be used to identify and support gifted and 
     talented students, including gifted and talented students 
     from all economic, ethnic, and racial backgrounds, such 
     students of limited English proficiency, and such students 
     with disabilities;
       ``(2) a description of how the local educational agency 
     will meet the educational needs of gifted and talented 
     students, including the training of personnel in the 
     education of gifted and talented students; and
       ``(3) an assurance that funds received under this subpart 
     will be used to supplement, not supplant, the amount of funds 
     the local educational agency expends for the education of, 
     and related services for, gifted and talented students.

     ``SEC. 10427. ANNUAL REPORTING.

       ``Beginning 1 year after the date of enactment of the 
     Better Education for Students and Teachers Act and for each 
     subsequent year thereafter, the State educational agency 
     shall submit an annual report to the Secretary that describes 
     the number of students served and the activities supported 
     with funds provided under this subpart. The report shall 
     include a description of the measures taken to comply with 
     paragraphs (1) and (4) of section 10424(b).

                    ``Subpart 3--General Provisions

     ``SEC. 10431. CONSTRUCTION.

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

     ``SEC. 10432. PARTICIPATION OF PRIVATE SCHOOL CHILDREN AND 
                   TEACHERS.

       ``In making grants and entering into contracts under this 
     subpart, the Secretary shall ensure, where appropriate, that 
     provision is made for the equitable participation of students 
     and teachers in private nonprofit elementary schools and 
     secondary schools, including the participation of teachers 
     and other personnel in professional development programs 
     serving such children.

     ``SEC. 10433. DEFINITIONS.

       ``For purposes of this subpart:
       ``(1) Gifted and talented.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `gifted and talented' when used with respect to a 
     person or program--
       ``(i) has the meaning given the term under applicable State 
     law; or
       ``(ii) in the case of a State that does not have a State 
     law defining the term, has the meaning given such term by 
     definition of the State educational agency or local 
     educational agency involved.
       ``(B) Special rule.--In the case of a State that does not 
     have a State law that defines the term, and the State 
     educational agency or local educational agency has not 
     defined the term, the term has the meaning given the term in 
     section 3.
       ``(2) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.

     ``SEC. 10434. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart $170,000,000 for each of fiscal years 2002 through 
     2008.

         ``PART F--LOCAL INNOVATIONS FOR EDUCATION (LIFE) FUND

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

     ``SEC. 10501. FUND FOR THE IMPROVEMENT OF EDUCATION.

       ``(a) Funds Authorized.--From funds appropriated under 
     subsection (d), the Secretary is authorized to support 
     nationally significant programs and projects to improve the 
     quality of education, assist all students to meet challenging 
     State content standards and challenging State student 
     performance standards, and carry out activities to raise 
     standards and expectations for academic achievement among all 
     students, especially disadvantaged students traditionally 
     underserved in schools. The Secretary is authorized to carry 
     out such programs and projects directly or through grants to, 
     or contracts with, State and local educational agencies, 
     institutions of higher education, and other public and 
     private agencies, organizations, and institutions.
       ``(b) Uses of Funds.--Funds under this section may be used 
     for--
       ``(1) joint efforts with other agencies and community 
     organizations, including activities related to improving the 
     transition from preschool to school and from school to work, 
     as well as activities related to the integration of 
     educational, recreational, cultural, health and social 
     services programs within a local community;
       ``(2) activities to promote and evaluate counseling and 
     mentoring for students, including intergenerational 
     mentoring;
       ``(3) activities to promote and evaluate coordinated 
     student support services;
       ``(4) activities to promote comprehensive health education;
       ``(5) activities to promote environmental education;
       ``(6) activities to promote consumer, economic, and 
     personal finance education, such as saving, investing, and 
     entrepreneurial education;
       ``(7) studies and evaluation of various education reform 
     strategies and innovations being pursued by the Federal 
     Government, States, and local educational agencies;
       ``(8) the identification and recognition of exemplary 
     schools and programs, such as Blue Ribbon Schools;
       ``(9) programs designed to promote gender equity in 
     education by evaluating and eliminating gender bias in 
     instruction and educational materials, identifying, and 
     analyzing gender inequities in educational practices, and 
     implementing and evaluating educational policies and 
     practices designed to achieve gender equity;
       ``(10) programs designed to encourage parents to 
     participate in school activities;
       ``(11) experiential-based learning, such as service-
     learning;
       ``(12) developing, adapting, or expanding existing and new 
     applications of technology to support the school reform 
     effort;
       ``(13) acquiring connectivity linkages, resources, and 
     services, including the acquisition of hardware and software, 
     for use by

[[Page 7695]]

     teachers, students and school library media personnel in the 
     classroom or in school library media centers, in order to 
     improve student learning to ensure that students in schools 
     will have meaningful access on a regular basis to such 
     linkages, resources and services;
       ``(14) providing ongoing professional development in the 
     integration of quality educational technologies into school 
     curriculum and long-term planning for implementing 
     educational technologies;
       ``(15) acquiring connectivity with wide area networks for 
     purposes of accessing information and educational programming 
     sources, particularly with institutions of higher education 
     and public libraries;
       ``(16) providing educational services for adults and 
     families;
       ``(17) demonstrations relating to the planning and 
     evaluations of the effectiveness of projects under which 
     local educational agencies or schools contract with private 
     management organizations to reform a school or schools; and
       ``(18) other programs and projects that meet the purposes 
     of this section.
       ``(c) Awards.--
       ``(1) In general.--The Secretary may--
       ``(A) make awards under this section on the basis of 
     competitions announced by the Secretary; and
       ``(B) support meritorious unsolicited proposals.
       ``(2) Special rule.--The Secretary shall ensure that 
     programs, projects, and activities supported under this 
     section are designed so that the effectiveness of such 
     programs, projects, and activities is readily ascertainable.
       ``(3) Peer review.--The Secretary shall use a peer review 
     process in reviewing applications for assistance under this 
     section and may use funds appropriated under section 10801 
     for the cost of such peer review.

     ``SEC. 10502. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

       ``(a) In General.--The Secretary is authorized to award a 
     grant to a nonprofit organization to reimburse such 
     organization for the costs of conducting scholar-athlete 
     games.
       ``(b) Priority.--In awarding the grant under subsection 
     (a), the Secretary shall give priority to a nonprofit 
     organization that--
       ``(1) is described in section 501(c)(3) of, and exempt from 
     taxation under section 501(a) of, the Internal Revenue Code 
     of 1986, and is affiliated with a university capable of 
     hosting a large educational, cultural, and athletic event 
     that will serve as a national model;
       ``(2) has the capability and experience in administering 
     federally funded scholar-athlete games;
       ``(3) has the ability to provide matching funds, on a 
     dollar-for-dollar basis, from foundations and the private 
     sector for the purpose of conducting a scholar-athlete 
     program;
       ``(4) has the organizational structure and capability to 
     administer a model scholar-athlete program; and
       ``(5) has the organizational structure and expertise to 
     replicate the scholar-athlete program in various venues 
     throughout the United States internationally.

                   ``Subpart 2--Star Schools Program

     ``SEC. 10551. SHORT TITLE.

       ``This subpart may be cited as the `Star Schools Act'.

     ``SEC. 10552. FINDINGS.

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

     ``SEC. 10553. PURPOSE.

       ``It is the purpose of this subpart to encourage improved 
     instruction in mathematics, science, and foreign languages as 
     well as other subjects, such as literacy skills and 
     vocational education, and to serve underserved populations, 
     including the disadvantaged, illiterate, limited English 
     proficient, and individuals with disabilities, through a Star 
     Schools program under which grants are made to eligible 
     telecommunication partnerships to enable such partnerships 
     to--
       ``(1) develop, construct, acquire, maintain, and operate 
     telecommunications audio and visual facilities and equipment;
       ``(2) develop and acquire educational and instructional 
     programming; and
       ``(3) obtain technical assistance for the use of such 
     facilities and instructional programming.

     ``SEC. 10554. GRANTS AUTHORIZED.

       ``(a) Authority.--The Secretary, through the Office of 
     Educational Technology, is authorized to make grants, in 
     accordance with the provisions of this subpart, to eligible 
     entities to pay the Federal share of the cost of--
       ``(1) the development, construction, acquisition, 
     maintenance, and operation of telecommunications facilities 
     and equipment;
       ``(2) the development and acquisition of live, interactive 
     instructional programming;
       ``(3) the development and acquisition of preservice and 
     inservice teacher training programs based on established 
     research regarding teacher-to-teacher mentoring, effective 
     skill transfer, and ongoing, in-class instruction;
       ``(4) the establishment of teleconferencing facilities and 
     resources for making interactive training available to 
     teachers;
       ``(5) obtaining technical assistance; and
       ``(6) the coordination of the design and connectivity of 
     telecommunications networks to reach the greatest number of 
     schools.
       ``(b) Duration.--
       ``(1) In general.--The Secretary shall award grants 
     pursuant to subsection (a) for a period of 5 years.
       ``(2) Renewal.--Grants awarded pursuant to subsection (a) 
     may be renewed for 1 additional 3-year period.
       ``(c) Availability of Funds.--Funds made available to carry 
     out this subpart shall remain available until expended.
       ``(d) Limitations.--
       ``(1) In general.--A grant under this section shall not 
     exceed--
       (A) 5 years in duration; or
       (B) $10,000,000 in any 1 fiscal year.
       ``(2) Instructional programming.--Not less than 25 percent 
     of the funds available to the Secretary in any fiscal year 
     under this subpart shall be used for the cost of 
     instructional programming.
       ``(3) Special rule.--Not less than 50 percent of the funds 
     available in any fiscal year under this subpart shall be used 
     for the cost of facilities, equipment, teacher training or 
     retraining, technical assistance, or programming, for local 
     educational agencies which are eligible to receive assistance 
     under part A of title I.
       ``(e) Federal Share.--
       ``(1) In general.--The Federal share of the cost of 
     projects funded under this section shall not exceed--
       ``(A) 75 percent for the first and second years for which 
     an eligible telecommunications partnership receives a grant 
     under this subpart;
       ``(B) 60 percent for the third and fourth such years; and
       ``(C) 50 percent for the fifth such year.
       ``(2) Reduction or waiver.--The Secretary may reduce or 
     waive the requirement of the non-Federal share under 
     paragraph (1) upon a showing of financial hardship.
       ``(f) Authority To Accept Funds From Other Agencies.--The 
     Secretary is authorized to accept funds from other Federal 
     departments or agencies to carry out the purposes of this 
     section, including funds for the purchase of equipment.
       ``(g) Coordination.--The Department, the National Science 
     Foundation, the Department of Agriculture, the Department of 
     Commerce, and any other Federal department or agency 
     operating a telecommunications network for educational 
     purposes, shall coordinate the activities assisted under this 
     subpart with the activities of such department or agency 
     relating to a telecommunications network for educational 
     purposes.
       ``(h) Closed Captioning and Descriptive Video.--Each entity 
     receiving funds under this subpart is encouraged to provide--
       ``(1) closed captioning of the verbal content of such 
     program, where appropriate, to be broadcast by way of line 21 
     of the vertical blanking interval, or by way of comparable 
     successor technologies; and
       ``(2) descriptive video of the visual content of such 
     program, as appropriate.

     ``SEC. 10555. ELIGIBLE ENTITIES.

       ``(a) Eligible Entities.--
       ``(1) Required participation.--The Secretary may make a 
     grant under section 10554 to any eligible entity, if at least 
     1 local educational agency is participating in the proposed 
     project.
       ``(2) Eligible entity.--For the purpose of this subpart, 
     the term `eligible entity' may include--
       ``(A) a public agency or corporation established for the 
     purpose of developing and operating telecommunications 
     networks to enhance educational opportunities provided by 
     educational institutions, teacher training centers, and other 
     entities, except that any such agency or corporation shall 
     represent the interests of elementary schools and secondary 
     schools that are eligible to participate in the program under 
     part A of title I; or
       ``(B) a partnership that will provide telecommunications 
     services and which includes 3 or more of the following 
     entities, at least 1 of which shall be an agency described in 
     clause (i) or (ii):
       ``(i) a local educational agency that serves a significant 
     number of elementary schools

[[Page 7696]]

     and secondary schools that are eligible for assistance under 
     part A of title I, or elementary schools and secondary 
     schools operated or funded for Indian children by the 
     Department of the Interior eligible under section 
     1121(c)(1)(A);
       ``(ii) a State educational agency;
       ``(iii) adult and family education programs;
       ``(iv) an institution of higher education or a State higher 
     education agency;
       ``(v) a teacher training center or academy that--

       ``(I) provides teacher preservice and inservice training; 
     and
       ``(II) receives Federal financial assistance or has been 
     approved by a State agency;

       ``(vi)(I) a public or private entity with experience and 
     expertise in the planning and operation of a 
     telecommunications network, including entities involved in 
     telecommunications through satellite, cable, telephone, or 
     computer; or
       ``(II) a public broadcasting entity with such experience; 
     or
       ``(vii) a public or private elementary school or secondary 
     school.
       ``(b) Special Rule.--An eligible entity receiving 
     assistance under this subpart shall be organized on a 
     statewide or multistate basis.

     ``SEC. 10556. APPLICATIONS.

       ``(a) Applications Required.--Each eligible entity which 
     desires to receive a grant under section 10554 shall submit 
     an application to the Secretary, at such time, in such 
     manner, and containing or accompanied by such information as 
     the Secretary may reasonably require.
       ``(b) Star School Award Application.--Each application 
     submitted pursuant to subsection (a) shall--
       ``(1) describe how the proposed project will assist in 
     achieving the National Education Goals, how such project will 
     assist all students to have an opportunity to learn to 
     challenging State standards, how such project will assist 
     State and local educational reform efforts, and how such 
     project will contribute to creating a high-quality system of 
     lifelong learning;
       ``(2) describe the telecommunications facilities and 
     equipment and technical assistance for which assistance is 
     sought, which may include--
       ``(A) the design, development, construction, acquisition, 
     maintenance, and operation of State or multistate educational 
     telecommunications networks and technology resource centers;
       ``(B) microwave, fiber optics, cable, and satellite 
     transmission equipment or any combination thereof;
       ``(C) reception facilities;
       ``(D) satellite time;
       ``(E) production facilities;
       ``(F) other telecommunications equipment capable of serving 
     a wide geographic area;
       ``(G) the provision of training services to instructors who 
     will be using the facilities and equipment for which 
     assistance is sought, including training in using such 
     facilities and equipment and training in integrating programs 
     into the classroom curriculum; and
       ``(H) the development of educational and related 
     programming for use on a telecommunications network;
       ``(3) in the case of an application for assistance for 
     instructional programming, describe the types of programming 
     which will be developed to enhance instruction and training 
     and provide assurances that such programming will be designed 
     in consultation with professionals (including classroom 
     teachers) who are experts in the applicable subject matter 
     and grade level;
       ``(4) describe how the eligible entity has engaged in 
     sufficient survey and analysis of the area to be served to 
     ensure that the services offered by the eligible entity will 
     increase the availability of courses of instruction in 
     English, mathematics, science, foreign languages, arts, 
     history, geography, or other disciplines;
       ``(5) describe the professional development policies for 
     teachers and other school personnel to be implemented to 
     ensure the effective use of the telecommunications facilities 
     and equipment for which assistance is sought;
       ``(6) describe the manner in which historically underserved 
     students (such as students from low-income families, limited 
     English proficient students, students with disabilities, or 
     students who have low literacy skills) and their families, 
     will participate in the benefits of the telecommunications 
     facilities, equipment, technical assistance, and programming 
     assisted under this subpart;
       ``(7) describe how existing telecommunications equipment, 
     facilities, and services, where available, will be used;
       ``(8) provide assurances that the financial interest of the 
     United States in the telecommunications facilities and 
     equipment will be protected for the useful life of such 
     facilities and equipment;
       ``(9) provide assurances that a significant portion of any 
     facilities and equipment, technical assistance, and 
     programming for which assistance is sought for elementary 
     schools and secondary schools will be made available to 
     schools or local educational agencies that have a high number 
     or percentage of children eligible to be counted under part A 
     of title I;
       ``(10) provide assurances that the applicant will use the 
     funds provided under this subpart to supplement and not 
     supplant funds otherwise available for the purposes of this 
     subpart;
       ``(11) describe how funds received under this subpart will 
     be coordinated with funds received for educational technology 
     in the classroom;
       ``(12) describe the activities or services for which 
     assistance is sought, such as--
       ``(A) providing facilities, equipment, training services, 
     and technical assistance;
       ``(B) making programs accessible to students with 
     disabilities through mechanisms such as closed captioning and 
     descriptive video services;
       ``(C) linking networks around issues of national importance 
     (such as elections) or to provide information about 
     employment opportunities, job training, or student and other 
     social service programs;
       ``(D) sharing curriculum resources between networks and 
     development of program guides which demonstrate cooperative, 
     cross-network listing of programs for specific curriculum 
     areas;
       ``(E) providing teacher and student support services 
     including classroom and training support materials which 
     permit student and teacher involvement in the live 
     interactive distance learning telecasts;
       ``(F) incorporating community resources such as libraries 
     and museums into instructional programs;
       ``(G) providing professional development for teachers, 
     including, as appropriate, training to early childhood 
     development and Head Start teachers and staff and vocational 
     education teachers and staff, and adult and family educators;
       ``(H) providing programs for adults to maximize the use of 
     telecommunications facilities and equipment;
       ``(I) providing teacher training on proposed or established 
     voluntary national content standards in mathematics and 
     science and other disciplines as such standards are 
     developed; and
       ``(J) providing parent education programs during and after 
     the regular school day which reinforce a student's course of 
     study and actively involve parents in the learning process;
       ``(13) describe how the proposed project as a whole will be 
     financed and how arrangements for future financing will be 
     developed before the project expires;
       ``(14) provide an assurance that a significant portion of 
     any facilities, equipment, technical assistance, and 
     programming for which assistance is sought for elementary 
     schools and secondary schools will be made available to 
     schools in local educational agencies that have a high 
     percentage of children counted for the purpose of part A of 
     title I;
       ``(15) provide an assurance that the applicant will provide 
     such information and cooperate in any evaluation that the 
     Secretary may conduct under this subpart; and
       ``(16) include such additional assurances as the Secretary 
     may reasonably require.
       ``(c) Priorities.--The Secretary, in approving applications 
     for grants authorized under section 10554, shall give 
     priority to applications describing projects that--
       ``(1) propose high-quality plans to assist in achieving 1 
     or more of the National Education Goals, will provide 
     instruction consistent with State content standards, or will 
     otherwise provide significant and specific assistance to 
     States and local educational agencies undertaking systemic 
     education reform;
       ``(2) will provide services to programs serving adults, 
     especially parents, with low levels of literacy;
       ``(3) will serve schools with significant numbers of 
     children counted for the purposes of part A of title I;
       ``(4) ensure that the eligible entity will--
       ``(A) serve the broadest range of institutions, programs 
     providing instruction outside of the school setting, programs 
     serving adults, especially parents, with low levels of 
     literacy, institutions of higher education, teacher training 
     centers, research institutes, and private industry;
       ``(B) have substantial academic and teaching capabilities, 
     including the capability of training, retraining, and 
     inservice upgrading of teaching skills and the capability to 
     provide professional development;
       ``(C) provide a comprehensive range of courses for 
     educators to teach instructional strategies for students with 
     different skill levels;
       ``(D) provide training to participating educators in ways 
     to integrate telecommunications courses into existing school 
     curriculum;
       ``(E) provide instruction for students, teachers, and 
     parents;
       ``(F) serve a multistate area; and
       ``(G) give priority to the provision of equipment and 
     linkages to isolated areas; and
       ``(5) involve a telecommunications entity (such as a 
     satellite, cable, telephone, computer, or public or private 
     television stations) participating in the eligible entity and 
     donating equipment or in-kind services for telecommunications 
     linkages.
       ``(d) Geographic Distribution.--In approving applications 
     for grants authorized under

[[Page 7697]]

     section 10554, the Secretary shall, to the extent feasible, 
     ensure an equitable geographic distribution of services 
     provided under this subpart.

     ``SEC. 10557. LEADERSHIP AND EVALUATION.

       ``(a) Reservation.--From the amount made available to carry 
     out this subpart in each fiscal year, the Secretary may 
     reserve not more than 5 percent of such amount for national 
     leadership, evaluation, and peer review activities.
       ``(b) Method of Funding.--The Secretary may fund the 
     activities described in subsection (a) directly or through 
     grants, contracts, and cooperative agreements.
       ``(c) Uses of Funds.--
       ``(1) Leadership.--Funds reserved for leadership activities 
     under subsection (a) may be used for--
       ``(A) disseminating information, including lists and 
     descriptions of services available from grant recipients 
     under this subpart; and
       ``(B) other activities designed to enhance the quality of 
     distance learning activities nationwide.
       ``(2) Evaluation.--Funds reserved for evaluation activities 
     under subsection (a) may be used to conduct independent 
     evaluations of the activities assisted under this subpart and 
     of distance learning in general, including--
       ``(A) analyses of distance learning efforts, including such 
     efforts that are assisted under this subpart and such efforts 
     that are not assisted under this subpart; and
       ``(B) comparisons of the effects, including student 
     outcomes, of different technologies in distance learning 
     efforts.
       ``(3) Peer review.--Funds reserved for peer review 
     activities under subsection (a) may be used for peer review 
     of--
       ``(A) applications for grants under this subpart; and
       ``(B) activities assisted under this subpart.

     ``SEC. 10558. DEFINITIONS.

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

     ``SEC. 10559. ADMINISTRATIVE PROVISIONS.

       ``(a) Continuing Eligibility.--
       ``(1) In general.--In order to be eligible to receive a 
     grant under section 10554 for a second 3-year grant period an 
     eligible entity shall demonstrate in the application 
     submitted pursuant to section 10556 that such partnership 
     shall--
       ``(A) continue to provide services in the subject areas and 
     geographic areas assisted with funds received under this 
     subpart for the previous 5-year grant period; and
       ``(B) use all grant funds received under this subpart for 
     the second 3-year grant period to provide expanded services 
     by--
       ``(i) increasing the number of students, schools, or school 
     districts served by the courses of instruction assisted under 
     this part in the previous fiscal year;
       ``(ii) providing new courses of instruction; and
       ``(iii) serving new populations of underserved individuals, 
     such as children or adults who are disadvantaged, have 
     limited English proficiency, are individuals with 
     disabilities, are illiterate, or lack secondary school 
     diplomas or their recognized equivalent.
       ``(2) Special rule.--Grant funds received pursuant to 
     paragraph (1) shall be used to supplement and not supplant 
     services provided by the grant recipient under this subpart 
     in the previous fiscal year.
       ``(b) Federal Activities.--The Secretary may assist grant 
     recipients under section 10554 in acquiring satellite time, 
     where appropriate, as economically as possible.

     ``SEC. 10560. OTHER ASSISTANCE.

       ``(a) Special Statewide Network.--
       ``(1) In general.--The Secretary, through the Office of 
     Educational Technology, may provide assistance to a statewide 
     telecommunications network under this subsection if such 
     network--
       ``(A) provides 2-way full motion interactive video and 
     audio communications;
       ``(B) links together public colleges and universities and 
     secondary schools throughout the State; and
       ``(C) meets any other requirements determined appropriate 
     by the Secretary.
       ``(2) State contribution.--A statewide telecommunications 
     network assisted under paragraph (1) shall contribute, either 
     directly or through private contributions, non-Federal funds 
     equal to not less than 50 percent of the cost of such 
     network.
       ``(b) Special Local Network.--
       ``(1) In general.--The Secretary may provide assistance, on 
     a competitive basis, to a local educational agency or 
     consortium thereof to enable such agency or consortium to 
     establish a high technology demonstration program.
       ``(2) Program requirements.--A high technology 
     demonstration program assisted under paragraph (1) shall--
       ``(A) include 2-way full motion interactive video, audio, 
     and text communications;
       ``(B) link together elementary schools and secondary 
     schools, colleges, and universities;
       ``(C) provide parent participation and family programs;
       ``(D) include a staff development program; and
       ``(E) have a significant contribution and participation 
     from business and industry.
       ``(3) Matching requirement.--A local educational agency or 
     consortium receiving a grant under paragraph (1) shall 
     provide, either directly or through private contributions, 
     non-Federal matching funds equal to not less than 50 percent 
     of the amount of the grant.
       ``(c) Telecommunications Programs for Continuing 
     Education.--
       ``(1) Authority.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible entities to 
     develop and operate 1 or more programs which provide online 
     access to educational resources in support of continuing 
     education and curriculum requirements relevant to achieving a 
     secondary school diploma or its recognized equivalent. The 
     program authorized by this section shall be designed to 
     advance adult literacy, secondary school completion, and the 
     acquisition of specified competency by the end of the 12th 
     grade.
       ``(2) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary. Each such application shall--
       ``(A) demonstrate that the applicant will use publicly 
     funded or free public telecommunications infrastructure to 
     deliver video, voice, and data in an integrated service to 
     support and assist in the acquisition of a secondary school 
     diploma or its recognized equivalent;
       ``(B) assure that the content of the materials to be 
     delivered is consistent with the accreditation requirements 
     of the State for which such materials are used;
       ``(C) incorporate, to the extent feasible, materials 
     developed in the Federal departments and agencies and under 
     appropriate federally funded projects and programs;
       ``(D) assure that the applicant has the technological and 
     substantive experience to carry out the program; and
       ``(E) contain such additional assurances as the Secretary 
     may reasonably require.

                     ``Subpart 3--Arts in Education

     ``SEC. 10571. FINDINGS AND PURPOSE.

       ``(a) Findings.--Congress finds that--
       ``(1) the arts are forms of understanding and ways of 
     knowing that are fundamentally important to education;
       ``(2) the arts are important to excellent education and to 
     effective school reform;
       ``(3) the most significant contribution of the arts to 
     education reform is the transformation of teaching and 
     learning;
       ``(4) such transformation is best realized in the context 
     of comprehensive, systemic education reform;
       ``(5) participation in performing arts activities has 
     proven to be an effective strategy for promoting the 
     inclusion of persons with disabilities in mainstream 
     settings;
       ``(6) opportunities in the arts have enabled persons of all 
     ages with disabilities to participate more fully in school 
     and community activities;
       ``(7) the arts can motivate at-risk students to stay in 
     school and become active participants in the educational 
     process; and
       ``(8) arts education should be an integral part of the 
     elementary school and secondary school curriculum.
       ``(b) Purposes.--The purposes of this section are to--
       ``(1) support systemic education reform by strengthening 
     arts education as an integral part of the elementary school 
     and secondary school curriculum;
       ``(2) help ensure that all students have the opportunity to 
     learn to challenging State content standards and challenging 
     State student performance standards in the arts; and
       ``(3) support the national effort to enable all students to 
     demonstrate competence in the arts.
       ``(c) Eligible Recipients.--In order to carry out the 
     purposes of this section, the Secretary is authorized to 
     award grants to, or enter into contracts or cooperative 
     agreements with--
       ``(1) State educational agencies;
       ``(2) local educational agencies;
       ``(3) institutions of higher education;
       ``(4) museums and other cultural institutions; and
       ``(5) other public and private agencies, institutions, and 
     organizations.
       ``(d) Authorized Activities.--Funds under this section may 
     be used for--
       ``(1) research on arts education;
       ``(2) the development of, and dissemination of information 
     about, model arts education programs;
       ``(3) the development of model arts education assessments 
     based on high standards;
       ``(4) the development and implementation of curriculum 
     frameworks for arts education;
       ``(5) the development of model preservice and inservice 
     professional development programs for arts educators and 
     other instructional staff;
       ``(6) supporting collaborative activities with other 
     Federal agencies or institutions

[[Page 7698]]

     involved in arts education, such as the National Endowment 
     for the Arts, the Institute of Museum and Library Services, 
     the John F. Kennedy Center for the Performing Arts, VSA Arts, 
     and the National Gallery of Art;
       ``(7) supporting model projects and programs in the 
     performing arts for children and youth through arrangements 
     made with the John F. Kennedy Center for the Performing Arts;
       ``(8) supporting model projects and programs by VSA Arts 
     which assure the participation in mainstream settings in arts 
     and education programs of individuals with disabilities;
       ``(9) supporting model projects and programs to integrate 
     arts education into the regular elementary school and 
     secondary school curriculum; and
       ``(10) other activities that further the purposes of this 
     section.
       ``(e) Coordination.--
       ``(1) In general.--A recipient of funds under this section 
     shall, to the extent possible, coordinate projects assisted 
     under this section with appropriate activities of public and 
     private cultural agencies, institutions, and organizations, 
     including museums, arts education associations, libraries, 
     and theaters.
       ``(2) Special rule.--In carrying out this section, the 
     Secretary shall coordinate with the National Endowment for 
     the Arts, the Institute of Museum and Library Services, the 
     John F. Kennedy Center for the Performing Arts, VSA Arts, and 
     the National Gallery of Art.
       ``(f) Special Rule.--If the amount made available to the 
     Secretary to carry out this subpart for any fiscal year is 
     $15,000,000 or less, then such amount shall only be available 
     to carry out the activities described in paragraphs (7) and 
     (8) of subsection (d).

                     ``Subpart 4--School Counseling

     ``SEC. 10601. ELEMENTARY SCHOOL AND SECONDARY SCHOOL 
                   COUNSELING DEMONSTRATION.

       ``(a) Counseling Demonstration.--
       ``(1) In general.--The Secretary may award grants under 
     this section to local educational agencies to enable the 
     local educational agencies to establish or expand elementary 
     school and secondary school counseling programs.
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give special consideration to applications 
     describing programs that--
       ``(A) demonstrate the greatest need for new or additional 
     counseling services among the children in the schools served 
     by the applicant;
       ``(B) propose the most promising and innovative approaches 
     for initiating or expanding school counseling; and
       ``(C) show the greatest potential for replication and 
     dissemination.
       ``(3) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall ensure an equitable 
     geographic distribution among the regions of the United 
     States and among urban, suburban, and rural areas.
       ``(4) Duration.--A grant under this section shall be 
     awarded for a period not to exceed three years.
       ``(5) Maximum grant.--A grant under this section shall not 
     exceed $400,000 for any fiscal year.
       ``(b) Applications.--
       ``(1) In general.--Each local educational agency desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       ``(2) Contents.--Each application for a grant under this 
     section shall--
       ``(A) describe the school population to be targeted by the 
     program, the particular personal, social, emotional, 
     educational, and career development needs of such population, 
     and the current school counseling resources available for 
     meeting such needs;
       ``(B) describe the activities, services, and training to be 
     provided by the program and the specific approaches to be 
     used to meet the needs described in subparagraph (A);
       ``(C) describe the methods to be used to evaluate the 
     outcomes and effectiveness of the program;
       ``(D) describe the collaborative efforts to be undertaken 
     with institutions of higher education, businesses, labor 
     organizations, community groups, social service agencies, and 
     other public or private entities to enhance the program and 
     promote school-linked services integration;
       ``(E) describe collaborative efforts with institutions of 
     higher education which specifically seek to enhance or 
     improve graduate programs specializing in the preparation of 
     school counselors, school psychologists, and school social 
     workers;
       ``(F) document that the applicant has the personnel 
     qualified to develop, implement, and administer the program;
       ``(G) describe how any diverse cultural populations, if 
     applicable, would be served through the program;
       ``(H) assure that the funds made available under this 
     subpart for any fiscal year will be used to supplement and, 
     to the extent practicable, increase the level of funds that 
     would otherwise be available from non-Federal sources for the 
     program described in the application, and in no case supplant 
     such funds from non-Federal sources; and
       ``(I) assure that the applicant will appoint an advisory 
     board composed of parents, school counselors, school 
     psychologists, school social workers, other pupil services 
     personnel, teachers, school administrators, and community 
     leaders to advise the local educational agency on the design 
     and implementation of the program.
       ``(c) Use of Funds.--
       ``(1) In general.--From amounts made available to carry out 
     this section, the Secretary shall award grants to local 
     education agencies to be used to initiate or expand 
     elementary or secondary school counseling programs that 
     comply with the requirements of paragraph (2).
       ``(2) Program requirements.--Each program assisted under 
     this section shall--
       ``(A) be comprehensive in addressing the personal, social, 
     emotional, and educational needs of all students;
       ``(B) use a developmental, preventive approach to 
     counseling;
       ``(C) increase the range, availability, quantity, and 
     quality of counseling services in the schools of the local 
     educational agency;
       ``(D) expand counseling services only through qualified 
     school counselors, school psychologists, and school social 
     workers;
       ``(E) use innovative approaches to increase children's 
     understanding of peer and family relationships, work and 
     self, decisionmaking, or academic and career planning, or to 
     improve social functioning;
       ``(F) provide counseling services that are well-balanced 
     among classroom group and small group counseling, individual 
     counseling, and consultation with parents, teachers, 
     administrators, and other pupil services personnel;
       ``(G) include inservice training for school counselors, 
     school social workers, school psychologists, other pupil 
     services personnel, teachers, and instructional staff;
       ``(H) involve parents of participating students in the 
     design, implementation, and evaluation of a counseling 
     program;
       ``(I) involve collaborative efforts with institutions of 
     higher education, businesses, labor organizations, community 
     groups, social service agencies, or other public or private 
     entities to enhance the program and promote school-linked 
     services integration; and
       ``(J) evaluate annually the effectiveness and outcomes of 
     the counseling services and activities assisted under this 
     section.
       ``(3) Report.--The Secretary shall issue a report 
     evaluating the programs assisted pursuant to each grant under 
     this subpart at the end of each grant period.
       ``(4) Dissemination.--The Secretary shall make the programs 
     assisted under this section available for dissemination, 
     either through the National Diffusion Network or other 
     appropriate means.
       ``(5) Limit on administration.--Not more than 5 percent of 
     the amounts made available under this section in any fiscal 
     year shall be used for administrative costs to carry out this 
     section.
       ``(d) Definitions.--For purposes of this section:
       ``(1) School counselor.--The term `school counselor' means 
     an individual who has documented competence in counseling 
     children and adolescents in a school setting and who--
       ``(A) possesses State licensure or certification granted by 
     an independent professional regulatory authority;
       ``(B) in the absence of such State licensure or 
     certification, possesses national certification in school 
     counseling or a specialty of counseling granted by an 
     independent professional organization; or
       ``(C) holds a minimum of a master's degree in school 
     counseling from a program accredited by the Council for 
     Accreditation of Counseling and Related Educational Programs 
     or the equivalent.
       ``(2) School psychologist.--The term `school psychologist' 
     means an individual who--
       ``(A) possesses a minimum of 60 graduate semester hours in 
     school psychology from an institution of higher education and 
     has completed 1,200 clock hours in a supervised school 
     psychology internship, of which 600 hours shall be in the 
     school setting;
       ``(B) possesses State licensure or certification in the 
     State in which the individual works; or
       ``(C) in the absence of such State licensure or 
     certification, possesses national certification by the 
     National School Psychology Certification Board.
       ``(3) School social worker.--The term `school social 
     worker' means an individual who--
       ``(A)(i) holds a master's degree in social work from a 
     program accredited by the Council on Social Work Education; 
     and
       ``(ii) is licensed or certified by the State in which 
     services are provided; or
       ``(B) in the absence of such licensure or certification, 
     possesses a national certification or credential as a school 
     social work specialist that has been awarded by an 
     independent professional organization.
       ``(4) Supervisor.--The term `supervisor' means an 
     individual who has the equivalent number of years of 
     professional experience in such individual's respective 
     discipline as is

[[Page 7699]]

     required of teaching experience for the supervisor or 
     administrative credential in the State of such individual.

     ``SEC. 10602. SPECIAL RULE.

       ``For any fiscal year in which the amount made available to 
     carry out this subpart is at least $60,000,000, then at least 
     $60,000,000 shall be made available in such fiscal year to 
     establish or expand elementary school counseling programs.

            ``Subpart 5--Partnerships in Character Education

     ``SEC. 10651. SHORT TITLE.

       ``This subpart may be cited as the `Strong Character for 
     Strong Schools Act'.

     ``SEC. 10652. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible entities for the design and implementation 
     of character education programs that may incorporate the 
     elements of character described in subsection (d).
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a State educational agency in partnership with 1 or 
     more local educational agencies;
       ``(B) a State educational agency in partnership with--
       ``(i) one or more local educational agencies; and
       ``(ii) one or more nonprofit organizations or entities, 
     including institutions of higher education;
       ``(C) a local educational agency or consortium of local 
     educational agencies; or
       ``(D) a local educational agency in partnership with 
     another nonprofit organization or entity, including 
     institutions of higher education.
       ``(3) Duration.--Each grant under this section shall be 
     awarded for a period not to exceed 3 years, of which the 
     eligible entity shall not use more than 1 year for planning 
     and program design.
       ``(4) Amount of grants for state educational agencies.--
     Subject to the availability of appropriations, the amount of 
     grant made by the Secretary to a State educational agency in 
     a partnership described in subparagraph (A) or (B) of 
     paragraph (2), that submits an application under subsection 
     (b) and that meets such requirements as the Secretary may 
     establish under this section, shall not be less than 
     $500,000.
       ``(b) Applications.--
       ``(1) Requirement.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require.
       ``(2) Contents of application.--Each application submitted 
     under this section shall include--
       ``(A) a description of any partnerships or collaborative 
     efforts among the organizations and entities of the eligible 
     entity;
       ``(B) a description of the goals and objectives of the 
     program proposed by the eligible entity;
       ``(C) a description of activities that will be pursued and 
     how those activities will contribute to meeting the goals and 
     objectives described in subparagraph (B), including--
       ``(i) how parents, students (including students with 
     physical and mental disabilities), and other members of the 
     community, including members of private and nonprofit 
     organizations, will be involved in the design and 
     implementation of the program and how the eligible entity 
     will work with the larger community to increase the reach and 
     promise of the program;
       ``(ii) curriculum and instructional practices that will be 
     used or developed;
       ``(iii) methods of teacher training and parent education 
     that will be used or developed; and
       ``(iv) how the program will be linked to other efforts in 
     the schools to improve student performance;
       ``(D) in the case of an eligible entity that is a State 
     educational agency--
       ``(i) a description of how the State educational agency 
     will provide technical and professional assistance to its 
     local educational agency partners in the development and 
     implementation of character education programs; and
       ``(ii) a description of how the State educational agency 
     will assist other interested local educational agencies that 
     are not members of the original partnership in designing and 
     establishing character education programs;
       ``(E) a description of how the eligible entity will 
     evaluate the success of its program--
       ``(i) based on the goals and objectives described in 
     subparagraph (B); and
       ``(ii) in cooperation with the national evaluation 
     conducted pursuant to subsection (c)(2)(B)(iii);
       ``(F) an assurance that the eligible entity annually will 
     provide to the Secretary such information as may be required 
     to determine the effectiveness of the program; and
       ``(G) any other information that the Secretary may require.
       ``(c) Evaluation and Program Development.--
       ``(1) Evaluation and reporting.--
       ``(A) State and local reporting and evaluation.--Each 
     eligible entity receiving a grant under this section shall 
     submit to the Secretary a comprehensive evaluation of the 
     program assisted under this section, including the impact on 
     students (including students with physical and mental 
     disabilities), teachers, administrators, parents, and 
     others--
       ``(i) by the second year of the program; and
       ``(ii) not later than 1 year after completion of the grant 
     period.
       ``(B) Contracts for evaluation.--Each eligible entity 
     receiving a grant under this section may contract with 
     outside sources, including institutions of higher education, 
     and private and nonprofit organizations, for purposes of 
     evaluating its program and measuring the success of the 
     program toward fostering character in students.
       ``(2)  National research, dissemination, and evaluation.--
       ``(A) In general.--The Secretary is authorized to make 
     grants to, or enter into contracts or cooperative agreements 
     with, State or local educational agencies, institutions of 
     higher education, tribal organizations, or other public or 
     private agencies or organizations to carry out research, 
     development, dissemination, technical assistance, and 
     evaluation activities that support or inform State and local 
     character education programs. The Secretary shall reserve not 
     more than 5 percent of the funds made available under this 
     section to carry out this paragraph.
       ``(B) Uses.--Funds made available under subparagraph (A) 
     may be used--
       ``(i) to conduct research and development activities that 
     focus on matters such as--

       ``(I) the effectiveness of instructional models for all 
     students, including students with physical and mental 
     disabilities;
       ``(II) materials and curricula that can be used by programs 
     in character education;
       ``(III) models of professional development in character 
     education; and
       ``(IV) the development of measures of effectiveness for 
     character education programs which may include the factors 
     described in paragraph (3);

       ``(ii) to provide technical assistance to State and local 
     programs, particularly on matters of program evaluation;
       ``(iii) to conduct a national evaluation of State and local 
     programs receiving funding under this section; and
       ``(iv) to compile and disseminate, through various 
     approaches (such as a national clearinghouse)--

       ``(I) information on model character education programs;
       ``(II) character education materials and curricula;

       ``(III) research findings in the area of character 
     education and character development; and
       ``(IV) any other information that will be useful to 
     character education program participants, educators, parents, 
     administrators, and others nationwide.

       ``(C) Priority.--In carrying out national activities under 
     this paragraph related to development, dissemination, and 
     technical assistance, the Secretary shall seek to enter into 
     partnerships with national, nonprofit character education 
     organizations with expertise and successful experience in 
     implementing local character education programs that have had 
     an effective impact on schools, students (including students 
     with disabilities), and teachers.
       ``(3) Factors.--Factors which may be considered in 
     evaluating the success of programs funded under this section 
     may include--
       ``(A) discipline issues;
       ``(B) student performance;
       ``(C) participation in extracurricular activities;
       ``(D) parental and community involvement;
       ``(E) faculty and administration involvement;
       ``(F) student and staff morale; and
       ``(G) overall improvements in school climate for all 
     students, including students with physical and mental 
     disabilities.
       ``(d) Elements of Character.--Each eligible entity desiring 
     funding under this section shall develop character education 
     programs that may incorporate elements of character such as--
       ``(1) caring;
       ``(2) civic virtue and citizenship;
       ``(3) justice and fairness;
       ``(4) respect;
       ``(5) responsibility;
       ``(6) trustworthiness; and
       ``(7) any other elements deemed appropriate by the members 
     of the eligible entity.
       ``(e) Use of Funds by State Educational Agency 
     Recipients.--Of the total funds received in any fiscal year 
     under this section by an eligible entity that is a State 
     educational agency--
       ``(1) not more than 10 percent of such funds may be used 
     for administrative purposes; and
       ``(2) the remainder of such funds may be used for--
       ``(A) collaborative initiatives with and between local 
     educational agencies and schools;
       ``(B) the preparation or purchase of materials, and teacher 
     training;
       ``(C) grants to local educational agencies, schools, or 
     institutions of higher education; and
       ``(D) technical assistance and evaluation.
       ``(f) Selection of Grantees.--

[[Page 7700]]

       ``(1) Criteria.--The Secretary shall select, through peer 
     review, eligible entities to receive grants under this 
     section on the basis of the quality of the applications 
     submitted under subsection (b), taking into consideration 
     such factors as--
       ``(A) the quality of the activities proposed to be 
     conducted;
       ``(B) the extent to which the program fosters character in 
     students and the potential for improved student performance;
       ``(C) the extent and ongoing nature of parental, student, 
     and community involvement;
       ``(D) the quality of the plan for measuring and assessing 
     success; and
       ``(E) the likelihood that the goals of the program will be 
     realistically achieved.
       ``(2) Diversity of projects.--The Secretary shall approve 
     applications under this section in a manner that ensures, to 
     the extent practicable, that programs assisted under this 
     section--
       ``(A) serve different areas of the Nation, including urban, 
     suburban, and rural areas; and
       ``(B) serve schools that serve minorities, Native 
     Americans, students of limited-English proficiency, 
     disadvantaged students, and students with disabilities.
       ``(g) Participation by Private School Children and 
     Teachers.--Grantees under this section shall provide, to the 
     extent feasible and appropriate, for the participation of 
     students and teachers in private elementary and secondary 
     schools in programs and activities under this section.

              ``Subpart 6--Women's Educational Equity Act

     ``SEC. 10701. SHORT TITLE; FINDINGS.

       ``(a) Short Title.--This subpart may be cited as the 
     `Women's Educational Equity Act of 2001'.
       ``(b) Findings.--Congress finds that--
       ``(1) since the enactment of title IX of the Education 
     Amendments of 1972, women and girls have made strides in 
     educational achievement and in their ability to avail 
     themselves of educational opportunities;
       ``(2) because of funding provided under the Women's 
     Educational Equity Act, more curricula, training, and other 
     educational materials concerning educational equity for women 
     and girls are available for national dissemination;
       ``(3) teaching and learning practices in the United States 
     are frequently inequitable as such practices relate to women 
     and girls, for example--
       ``(A) sexual harassment, particularly that experienced by 
     girls, undermines the ability of schools to provide a safe 
     and equitable learning or workplace environment;
       ``(B) classroom textbooks and other educational materials 
     do not sufficiently reflect the experiences, achievements, or 
     concerns of women and, in most cases, are not written by 
     women or persons of color;
       ``(C) girls do not take as many mathematics and science 
     courses as boys, girls lose confidence in their mathematics 
     and science ability as girls move through adolescence, and 
     there are few women role models in the sciences; and
       ``(D) pregnant and parenting teenagers are at high risk for 
     dropping out of school and existing dropout prevention 
     programs do not adequately address the needs of such 
     teenagers;
       ``(4) efforts to improve the quality of public education 
     also must include efforts to ensure equal access to quality 
     education programs for all women and girls;
       ``(5) Federal support should address not only research and 
     development of innovative model curricula and teaching and 
     learning strategies to promote gender equity, but should also 
     assist schools and local communities implement gender 
     equitable practices;
       ``(6) Federal assistance for gender equity must be tied to 
     systemic reform, involve collaborative efforts to implement 
     effective gender practices at the local level, and encourage 
     parental participation; and
       ``(7) excellence in education, high educational 
     achievements and standards, and the full participation of 
     women and girls in American society, cannot be achieved 
     without educational equity for women and girls.

     ``SEC. 10702. STATEMENT OF PURPOSES.

       ``It is the purpose of this subpart--
       ``(1) to promote gender equity in education in the United 
     States;
       ``(2) to provide financial assistance to enable educational 
     agencies and institutions to meet the requirements of title 
     IX of the Educational Amendments of 1972; and
       ``(3) to promote equity in education for women and girls 
     who suffer from multiple forms of discrimination based on 
     sex, race, ethnic origin, limited English proficiency, 
     disability, or age.

     ``SEC. 10703. PROGRAMS AUTHORIZED.

       ``(a) In General.--The Secretary is authorized--
       ``(1) to promote, coordinate, and evaluate gender equity 
     policies, programs, activities, and initiatives in all 
     Federal education programs and offices;
       ``(2) to develop, maintain, and disseminate materials, 
     resources, analyses, and research relating to education 
     equity for women and girls;
       ``(3) to provide information and technical assistance to 
     assure the effective implementation of gender equity 
     programs;
       ``(4) to coordinate gender equity programs and activities 
     with other Federal agencies with jurisdiction over education 
     and related programs;
       ``(5) to assist the Assistant Secretary of the Office of 
     Educational Research and Improvement in identifying research 
     priorities related to education equity for women and girls; 
     and
       ``(6) to perform any other activities consistent with 
     achieving the purposes of this subpart.
       ``(b) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to make 
     grants to, and enter into contracts and cooperative 
     agreements with, public agencies, private nonprofit agencies, 
     organizations, institutions, student groups, community 
     groups, and individuals, for a period not to exceed 4 years, 
     to--
       ``(A) provide grants to develop model equity programs; and
       ``(B) provide funds for the implementation of equity 
     programs in schools throughout the Nation.
       ``(2) Support and technical assistance.--To achieve the 
     purposes of this subpart, the Secretary is authorized to 
     provide support and technical assistance--
       ``(A) to implement effective gender-equity policies and 
     programs at all educational levels, including--
       ``(i) assisting educational agencies and institutions to 
     implement policies and practices to comply with title IX of 
     the Education Amendments of 1972;
       ``(ii) training for teachers, counselors, administrators, 
     and other school personnel, especially preschool and 
     elementary school personnel, in gender equitable teaching and 
     learning practices;
       ``(iii) leadership training for women and girls to develop 
     professional and marketable skills to compete in the global 
     marketplace, improve self-esteem, and benefit from exposure 
     to positive role models;
       ``(iv) school-to-work transition programs, guidance and 
     counseling activities, and other programs to increase 
     opportunities for women and girls to enter a technologically 
     demanding workplace and, in particular, to enter highly 
     skilled, high paying careers in which women and girls have 
     been underrepresented;
       ``(v) enhancing educational and career opportunities for 
     those women and girls who suffer multiple forms of 
     discrimination, based on sex, and on race, ethnic origin, 
     limited English proficiency, disability, socioeconomic 
     status, or age;
       ``(vi) assisting pregnant students and students rearing 
     children to remain in or to return to secondary school, 
     graduate, and prepare their preschool children to start 
     school;
       ``(vii) evaluating exemplary model programs to assess the 
     ability of such programs to advance educational equity for 
     women and girls;
       ``(viii) introduction into the classroom of textbooks, 
     curricula, and other materials designed to achieve equity for 
     women and girls;
       ``(ix) programs and policies to address sexual harassment 
     and violence against women and girls and to ensure that 
     educational institutions are free from threats to the safety 
     of students and personnel;
       ``(x) nondiscriminatory tests of aptitude and achievement 
     and of alternative assessments that eliminate biased 
     assessment instruments from use;
       ``(xi) programs to increase educational opportunities, 
     including higher education, vocational training, and other 
     educational programs for low-income women, including 
     underemployed and unemployed women, and women receiving 
     assistance under a State program funded under part A of title 
     IV of the Social Security Act;
       ``(xii) programs to improve representation of women in 
     educational administration at all levels; and
       ``(xiii) planning, development, and initial implementation 
     of--

       ``(I) comprehensive institutionwide or districtwide 
     evaluation to assess the presence or absence of gender equity 
     in educational settings;
       ``(II) comprehensive plans for implementation of equity 
     programs in State and local educational agencies and 
     institutions of higher education, including community 
     colleges; and
       ``(III) innovative approaches to school-community 
     partnerships for educational equity;

       ``(B) for research and development, which shall be 
     coordinated with each of the research institutes of the 
     Office of Educational Research and Improvement to avoid 
     duplication of research efforts, designed to advance gender 
     equity nationwide and to help make policies and practices in 
     educational agencies and institutions, and local communities, 
     gender equitable, including--
       ``(i) research and development of innovative strategies and 
     model training programs for teachers and other education 
     personnel;
       ``(ii) the development of high-quality and challenging 
     assessment instruments that are nondiscriminatory;
       ``(iii) the development and evaluation of model curricula, 
     textbooks, software, and other educational materials to 
     ensure the absence of gender stereotyping and bias;
       ``(iv) the development of instruments and procedures that 
     employ new and innovative strategies to assess whether 
     diverse educational settings are gender equitable;

[[Page 7701]]

       ``(v) the development of instruments and strategies for 
     evaluation, dissemination, and replication of promising or 
     exemplary programs designed to assist local educational 
     agencies in integrating gender equity in their educational 
     policies and practices;
       ``(vi) updating high-quality educational materials 
     previously developed through awards made under this subpart;
       ``(vii) the development of policies and programs to address 
     and prevent sexual harassment and violence to ensure that 
     educational institutions are free from threats to safety of 
     students and personnel;
       ``(viii) the development and improvement of programs and 
     activities to increase opportunity for women, including 
     continuing educational activities, vocational education, and 
     programs for low-income women, including underemployed and 
     unemployed women, and women receiving assistance under the 
     State program funded under part A of title IV of the Social 
     Security Act; and
       ``(ix) the development of guidance and counseling 
     activities, including career education programs, designed to 
     ensure gender equity.

     ``SEC. 10704. APPLICATIONS.

       ``An application under this subpart shall--
       ``(1) set forth policies and procedures that will ensure a 
     comprehensive evaluation of the activities assisted under 
     this subpart, including an evaluation of the practices, 
     policies, and materials used by the applicant and an 
     evaluation or estimate of the continued significance of the 
     work of the project following completion of the award period;
       ``(2) demonstrate how the applicant will address 
     perceptions of gender roles based on cultural differences or 
     stereotypes;
       ``(3) for applications for assistance under section 
     10703(b)(1), demonstrate how the applicant will foster 
     partnerships and, where applicable, share resources with 
     State educational agencies, local educational agencies, 
     institutions of higher education, community-based 
     organizations (including organizations serving women), 
     parent, teacher, and student groups, businesses, or other 
     recipients of Federal educational funding which may include 
     State literacy resource centers;
       ``(4) for applications for assistance under section 
     10703(b)(1), demonstrate how parental involvement in the 
     project will be encouraged; and
       ``(5) for applications for assistance under section 
     10703(b)(1), describe plans for continuation of the 
     activities assisted under this subpart with local support 
     following completion of the grant period and termination of 
     Federal support under this subpart.

     ``SEC. 10705. CRITERIA AND PRIORITIES.

       ``(a) Criteria and Priorities.--
       ``(1) In general.--The Secretary shall establish separate 
     criteria and priorities for awards under paragraphs (1) and 
     (2) of section 10703(b) to ensure that funds under this 
     subpart are used for programs that most effectively will 
     achieve the purposes of this part.
       ``(2) Criteria.--The criteria described in subsection (a) 
     may include the extent to which the activities assisted under 
     this part--
       ``(A) address the needs of women and girls of color and 
     women and girls with disabilities;
       ``(B) meet locally defined and documented educational 
     equity needs and priorities, including compliance with title 
     IX of the Education Amendments of 1972;
       ``(C) are a significant component of a comprehensive plan 
     for educational equity and compliance with title IX of the 
     Education Amendments of 1972 in the particular school 
     district, institution of higher education, vocational-
     technical institution, or other educational agency or 
     institution; and
       ``(D) implement an institutional change strategy with long-
     term impact that will continue as a central activity of the 
     applicant after the grant under this subpart has terminated.
       ``(b) Priorities.--In approving applications under this 
     subpart, the Secretary may give special consideration to 
     applications--
       ``(1) submitted by applicants that have not received 
     assistance under this subpart or this subpart's predecessor 
     authorities;
       ``(2) for projects that will contribute significantly to 
     directly improving teaching and learning practices in the 
     local community; and
       ``(3) for projects that will--
       ``(A) provide for a comprehensive approach to enhancing 
     gender equity in educational institutions and agencies;
       ``(B) draw on a variety of resources, including the 
     resources of local educational agencies, community-based 
     organizations, institutions of higher education, and private 
     organizations;
       ``(C) implement a strategy with long-term impact that will 
     continue as a central activity of the applicant after the 
     grant under this subpart has terminated;
       ``(D) address issues of national significance that can be 
     duplicated; and
       ``(E) address the educational needs of women and girls who 
     suffer multiple or compound discrimination based on sex and 
     on race, ethnic origin, disability, or age.
       ``(c) Special Rule.--To the extent feasible, the Secretary 
     shall ensure that grants awarded under this subpart for each 
     fiscal year address--
       ``(1) all levels of education, including preschool, 
     elementary and secondary education, higher education, 
     vocational education, and adult education;
       ``(2) all regions of the United States; and
       ``(3) urban, rural, and suburban educational institutions.
       ``(d) Coordination.--Research activities supported under 
     this subpart--
       ``(1) shall be carried out in consultation with the Office 
     of Educational Research and Improvement to ensure that such 
     activities are coordinated with and enhance the research and 
     development activities supported by the Office; and
       ``(2) may include collaborative research activities which 
     are jointly funded and carried out with the Office of 
     Educational Research and Improvement.
       ``(e) Limitation.--Nothing in this subpart shall be 
     construed as prohibiting men and boys from participating in 
     any programs or activities assisted with funds under this 
     subpart.

     ``SEC. 10706. REPORT.

       ``The Secretary, not later than January 1, 2007, shall 
     submit to the President and Congress a report on the status 
     of educational equity for girls and women in the Nation.

     ``SEC. 10707. ADMINISTRATION.

       ``(a) Evaluation and Dissemination.--The Secretary shall 
     evaluate and disseminate materials and programs developed 
     under this subpart and shall report to Congress regarding 
     such evaluation materials and programs not later than January 
     1, 2006.
       ``(b) Program Operations.--The Secretary shall ensure that 
     the activities assisted under this subpart are administered 
     within the Department by a person who has recognized 
     professional qualifications and experience in the field of 
     gender equity education.

     ``SEC. 10708. AMOUNT.

       ``From amounts made available to carry out this subpart for 
     a fiscal year, not less than \2/3\ of such amount shall be 
     used to carry out the activities described in section 
     10703(b)(1).

              ``Subpart 7--Physical Education for Progress

     ``SEC. 10751. SHORT TITLE.

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

     ``SEC. 10752. PURPOSE.

       ``The purpose of this subpart is to award grants and 
     contracts to local educational agencies to enable the local 
     educational agencies to initiate, expand and improve physical 
     education programs for all kindergarten through 12th grade 
     students.

     ``SEC. 10753. FINDINGS.

       ``Congress makes the following findings:
       ``(1) Physical education is essential to the development of 
     growing children.
       ``(2) Physical education helps improve the overall health 
     of children by improving their cardiovascular endurance, 
     muscular strength and power, and flexibility, and by 
     enhancing weight regulation, bone development, posture, 
     skillful moving, active lifestyle habits, and constructive 
     use of leisure time.
       ``(3) Physical education helps improve the self esteem, 
     interpersonal relationships, responsible behavior, and 
     independence of children.
       ``(4) Children who participate in high quality daily 
     physical education programs tend to be more healthy and 
     physically fit.
       ``(5) The percentage of young people who are overweight has 
     more than doubled in the 30 years preceding 1999.
       ``(6) Low levels of activity contribute to the high 
     prevalence of obesity among children in the United States.
       ``(7) Obesity related diseases cost the United States 
     economy more than $100,000,000,000 every year.
       ``(8) Inactivity and poor diet cause at least 300,000 
     deaths a year in the United States.
       ``(9) Physically fit adults have significantly reduced risk 
     factors for heart attacks and stroke.
       ``(10) Children are not as active as they should be and 
     fewer than one in four children get 20 minutes of vigorous 
     activity every day of the week.
       ``(11) The Surgeon General's 1996 Report on Physical 
     Activity and Health, and the Centers for Disease Control and 
     Prevention, recommend daily physical education for all 
     students in kindergarten through grade 12.
       ``(12) Twelve years after Congress passed House Concurrent 
     Resolution 97, 100th Congress, agreed to December 11, 1987, 
     encouraging State and local governments and local educational 
     agencies to provide high quality daily physical education 
     programs for all children in kindergarten through grade 12, 
     little progress has been made.
       ``(13) Every student in our Nation's schools, from 
     kindergarten through grade 12, should have the opportunity to 
     participate in quality physical education. It is the unique 
     role of quality physical education programs to develop the 
     health-related fitness, physical competence, and cognitive 
     understanding about physical activity for all students so 
     that the students can adopt healthy and physically active 
     lifestyles.

     ``SEC. 10754. PROGRAM AUTHORIZED.

       ``The Secretary is authorized to award grants to, and enter 
     into contracts with, local educational agencies to pay the 
     Federal share of the costs of initiating, expanding, and 
     improving physical education programs for kindergarten 
     through grade 12 students by--

[[Page 7702]]

       ``(1) providing equipment and support to enable students to 
     actively participate in physical education activities; and
       ``(2) providing funds for staff and teacher training and 
     education.

     ``SEC. 10755. APPLICATIONS; PROGRAM ELEMENTS.

       ``(a) Applications.--Each local educational agency desiring 
     a grant or contract under this subpart shall submit to the 
     Secretary an application that contains a plan to initiate, 
     expand, or improve physical education programs in the schools 
     served by the agency in order to make progress toward meeting 
     State standards for physical education.
       ``(b) Program Elements.--A physical education program 
     described in any application submitted under subsection (a) 
     may provide--
       ``(1) fitness education and assessment to help children 
     understand, improve, or maintain their physical well-being;
       ``(2) instruction in a variety of motor skills and physical 
     activities designed to enhance the physical, mental, and 
     social or emotional development of every child;
       ``(3) development of cognitive concepts about motor skill 
     and physical fitness that support a lifelong healthy 
     lifestyle;
       ``(4) opportunities to develop positive social and 
     cooperative skills through physical activity participation;
       ``(5) instruction in healthy eating habits and good 
     nutrition; and
       ``(6) teachers of physical education the opportunity for 
     professional development to stay abreast of the latest 
     research, issues, and trends in the field of physical 
     education.
       ``(c) Special Rule.--For the purpose of this subpart, 
     extracurricular activities such as team sports and Reserve 
     Officers' Training Corps (ROTC) program activities shall not 
     be considered as part of the curriculum of a physical 
     education program assisted under this subpart.

     ``SEC. 10756. PROPORTIONALITY.

       ``The Secretary shall ensure that grants awarded and 
     contracts entered into under this subpart shall be equitably 
     distributed between local educational agencies serving urban 
     and rural areas, and between local educational agencies 
     serving large and small numbers of students.

     ``SEC. 10757. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED 
                   STUDENTS.

       ``An application for funds under this subpart may provide 
     for the participation, in the activities funded under this 
     subpart, of--
       ``(1) home-schooled children, and their parents and 
     teachers; or
       ``(2) children enrolled in private nonprofit elementary 
     schools or secondary schools, and their parents and teachers.

     ``SEC. 10758. REPORT REQUIRED FOR CONTINUED FUNDING.

       ``As a condition to continue to receive grant or contract 
     funding after the first year of a multiyear grant or contract 
     under this subpart, the administrator of the grant or 
     contract for the local educational agency shall submit to the 
     Secretary an annual report that describes the activities 
     conducted during the preceding year and demonstrates that 
     progress has been made toward meeting State standards for 
     physical education.

     ``SEC. 10759. REPORT TO CONGRESS.

       ``The Secretary shall submit a report to Congress not later 
     than June 1, 2003, that describes the programs assisted under 
     this subpart, documents the success of such programs in 
     improving physical fitness, and makes such recommendations as 
     the Secretary determines appropriate for the continuation and 
     improvement of the programs assisted under this subpart.

     ``SEC. 10760. ADMINISTRATIVE COSTS.

       ``Not more than 5 percent of the grant or contract funds 
     made available to a local educational agency under this 
     subpart for any fiscal year may be used for administrative 
     costs.

     ``SEC. 10761. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

       ``(a) Federal Share.--The Federal share under this subpart 
     may not exceed--
       ``(1) 90 percent of the total cost of a project for the 
     first year for which the project receives assistance under 
     this subpart; and
       ``(2) 75 percent of such cost for the second and each 
     subsequent such year.
       ``(b) Supplement Not Supplant.--Funds made available under 
     this subpart shall be used to supplement and not supplant 
     other Federal, State and local funds available for physical 
     education activities.

     ``SEC. 10762. AVAILABILITY OF AMOUNTS.

       ``Amounts made available to the Secretary to carry out this 
     subpart shall remain available until expended.

              ``Subpart 8--Authorization of Appropriations

     ``SEC. 10801. AUTHORIZATION OF APPROPRIATIONS.

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

  SA 513. Mr. VOINOVICH 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 __, strike lines __ through __, and insert the 
     following:
       ``(5) Developing and implementing effective mechanisms to 
     assist local education agencies and schools in effectively 
     recruiting and retaining highly qualified teachers and 
     principals, and in cases in which a State or local education 
     agency deems appropriate, academic counselors, mental health 
     counselors, pupil services personnel, and other staff.
       On page __, between lines __ and __, insert the following:
       ``(11) Providing professional development for teachers, 
     academic counselors, mental health counselors, pupil services 
     personnel, and other school staff, to help young women, 
     minorities, students with limited English proficiency, 
     disabled individuals, and economically disadvantaged students 
     achieve challenging State content standards and State student 
     performance standards in core academic subjects, such as by 
     providing training to teachers or counselors to encourage 
     young women and minorities to enroll in advanced mathematics 
     or science courses.
       On page __, strike lines __ through __ and insert the 
     following:
       ``(3) Providing teachers, principals, and, in cases in 
     which a State or local education agency deems appropriate, 
     academic counselors, mental health counselors, pupil services 
     personnel, and other staff, with opportunities for 
     professional development through institutions of higher 
     education.
       On page __, between lines __ and __, insert the following:
       ``(7) Developing and implementing mechanisms to assist 
     schools in effectively recruiting and retaining highly 
     qualified teachers and principals, and, in cases in which a 
     State or local education agency deems appropriate, academic 
     counselors, mental health counselors, pupil services 
     personnel, and other staff.
       On page __, strike lines __ through __ and insert the 
     following:
       ``(3) acquiring connectivity linkages, resources, and 
     services, including the acquisition of hardware and software, 
     for use by teachers, students, academic counselors, and 
     school library media personnel in the classroom, in academic 
     and college counseling centers, or in school library media 
     centers, in order to improve student academic achievement and 
     student performance;''
                                  ____

  SA 514. Mr. DODD (for himself and Mr. Domenici) 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:

             ``PART B--PARTNERSHIPS IN CHARACTER EDUCATION

     ``SEC. 9201. SHORT TITLE.

       ``This part may be cited as the `Strong Character for 
     Strong Schools Act'.

     ``SEC. 9202. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

       ``(a) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to eligible entities for the design and implementation 
     of character education programs that may incorporate the 
     elements of character described in subsection (d).
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a State educational agency in partnership with 1 or 
     more local educational agencies;
       ``(B) a State educational agency in partnership with--
       ``(i) one or more local educational agencies; and
       ``(ii) one or more nonprofit organizations or entities, 
     including institutions of higher education;
       ``(C) a local educational agency or consortium of local 
     educational agencies; or
       ``(D) a local educational agency in partnership with 
     another nonprofit organization or entity, including 
     institutions of higher education.
       ``(3) Duration.--Each grant under this section shall be 
     awarded for a period not to exceed 3 years, of which the 
     eligible entity shall not use more than 1 year for planning 
     and program design.
       ``(4) Amount of grants for state educational agencies.--
     Subject to the availability of appropriations, the amount of 
     grant made by the Secretary to a State educational agency in 
     a partnership described in subparagraph (A) or (B) of 
     paragraph (2), that submits an application under subsection 
     (b) and that meets such requirements as the Secretary may 
     establish under this section, shall not be less than 
     $500,000.
       ``(b) Applications.--
       ``(1) Requirement.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require.
       ``(2) Contents of application.--Each application submitted 
     under this section shall include--
       ``(A) a description of any partnerships or collaborative 
     efforts among the organizations and entities of the eligible 
     entity;
       ``(B) a description of the goals and objectives of the 
     program proposed by the eligible entity;

[[Page 7703]]

       ``(C) a description of activities that will be pursued and 
     how those activities will contribute to meeting the goals and 
     objectives described in subparagraph (B), including--
       ``(i) how parents, students (including students with 
     physical and mental disabilities), and other members of the 
     community, including members of private and nonprofit 
     organizations, will be involved in the design and 
     implementation of the program and how the eligible entity 
     will work with the larger community to increase the reach and 
     promise of the program;
       ``(ii) curriculum and instructional practices that will be 
     used or developed;
       ``(iii) methods of teacher training and parent education 
     that will be used or developed; and
       ``(iv) how the program will be linked to other efforts in 
     the schools to improve student performance;
       ``(D) in the case of an eligible entity that is a State 
     educational agency--
       ``(i) a description of how the State educational agency 
     will provide technical and professional assistance to its 
     local educational agency partners in the development and 
     implementation of character education programs; and
       ``(ii) a description of how the State educational agency 
     will assist other interested local educational agencies that 
     are not members of the original partnership in designing and 
     establishing character education programs;
       ``(E) a description of how the eligible entity will 
     evaluate the success of its program--
       ``(i) based on the goals and objectives described in 
     subparagraph (B); and
       ``(ii) in cooperation with the national evaluation 
     conducted pursuant to subsection (c)(2)(B)(iii);
       ``(F) an assurance that the eligible entity annually will 
     provide to the Secretary such information as may be required 
     to determine the effectiveness of the program; and
       ``(G) any other information that the Secretary may require.
       ``(c) Evaluation and Program Development.--
       ``(1) Evaluation and reporting.--
       ``(A) State and local reporting and evaluation.--Each 
     eligible entity receiving a grant under this section shall 
     submit to the Secretary a comprehensive evaluation of the 
     program assisted under this section, including the impact on 
     students (including students with physical and mental 
     disabilities), teachers, administrators, parents, and 
     others--
       ``(i) by the second year of the program; and
       ``(ii) not later than 1 year after completion of the grant 
     period.
       ``(B) Contracts for evaluation.--Each eligible entity 
     receiving a grant under this section may contract with 
     outside sources, including institutions of higher education, 
     and private and nonprofit organizations, for purposes of 
     evaluating its program and measuring the success of the 
     program toward fostering character in students.
       ``(2)  National research, dissemination, and evaluation.--
       ``(A) In general.--The Secretary is authorized to make 
     grants to, or enter into contracts or cooperative agreements 
     with, State or local educational agencies, institutions of 
     higher education, tribal organizations, or other public or 
     private agencies or organizations to carry out research, 
     development, dissemination, technical assistance, and 
     evaluation activities that support or inform State and local 
     character education programs. The Secretary shall reserve not 
     more than 5 percent of the funds made available under this 
     section to carry out this paragraph.
       ``(B) Uses.--Funds made available under subparagraph (A) 
     may be used--
       ``(i) to conduct research and development activities that 
     focus on matters such as--

       ``(I) the effectiveness of instructional models for all 
     students, including students with physical and mental 
     disabilities;
       ``(II) materials and curricula that can be used by programs 
     in character education;
       ``(III) models of professional development in character 
     education; and
       ``(IV) the development of measures of effectiveness for 
     character education programs which may include the factors 
     described in paragraph (3);

       ``(ii) to provide technical assistance to State and local 
     programs, particularly on matters of program evaluation;
       ``(iii) to conduct a national evaluation of State and local 
     programs receiving funding under this section; and
       ``(iv) to compile and disseminate, through various 
     approaches (such as a national clearinghouse)--

       ``(I) information on model character education programs;
       ``(II) character education materials and curricula;

       ``(III) research findings in the area of character 
     education and character development; and
       ``(IV) any other information that will be useful to 
     character education program participants, educators, parents, 
     administrators, and others nationwide.

       ``(C) Priority.--In carrying out national activities under 
     this paragraph related to development, dissemination, and 
     technical assistance, the Secretary shall seek to enter into 
     partnerships with national, nonprofit character education 
     organizations with expertise and successful experience in 
     implementing local character education programs that have had 
     an effective impact on schools, students (including students 
     with disabilities), and teachers.
       ``(3) Factors.--Factors which may be considered in 
     evaluating the success of programs funded under this section 
     may include--
       ``(A) discipline issues;
       ``(B) student performance;
       ``(C) participation in extracurricular activities;
       ``(D) parental and community involvement;
       ``(E) faculty and administration involvement;
       ``(F) student and staff morale; and
       ``(G) overall improvements in school climate for all 
     students, including students with physical and mental 
     disabilities.
       ``(d) Elements of Character.--Each eligible entity desiring 
     funding under this section shall develop character education 
     programs that may incorporate elements of character such as--
       ``(1) caring;
       ``(2) civic virtue and citizenship;
       ``(3) justice and fairness;
       ``(4) respect;
       ``(5) responsibility;
       ``(6) trustworthiness; and
       ``(7) any other elements deemed appropriate by the members 
     of the eligible entity.
       ``(e) Use of Funds by State Educational Agency 
     Recipients.--Of the total funds received in any fiscal year 
     under this section by an eligible entity that is a State 
     educational agency--
       ``(1) not more than 10 percent of such funds may be used 
     for administrative purposes; and
       ``(2) the remainder of such funds may be used for--
       ``(A) collaborative initiatives with and between local 
     educational agencies and schools;
       ``(B) the preparation or purchase of materials, and teacher 
     training;
       ``(C) grants to local educational agencies, schools, or 
     institutions of higher education; and
       ``(D) technical assistance and evaluation.
       ``(f) Selection of Grantees.--
       ``(1) Criteria.--The Secretary shall select, through peer 
     review, eligible entities to receive grants under this 
     section on the basis of the quality of the applications 
     submitted under subsection (b), taking into consideration 
     such factors as--
       ``(A) the quality of the activities proposed to be 
     conducted;
       ``(B) the extent to which the program fosters character in 
     students and the potential for improved student performance;
       ``(C) the extent and ongoing nature of parental, student, 
     and community involvement;
       ``(D) the quality of the plan for measuring and assessing 
     success; and
       ``(E) the likelihood that the goals of the program will be 
     realistically achieved.
       ``(2) Diversity of projects.--The Secretary shall approve 
     applications under this section in a manner that ensures, to 
     the extent practicable, that programs assisted under this 
     section--
       ``(A) serve different areas of the Nation, including urban, 
     suburban, and rural areas; and
       ``(B) serve schools that serve minorities, Native 
     Americans, students of limited-English proficiency, 
     disadvantaged students, and students with disabilities.
       ``(g) Participation by Private School Children and 
     Teachers.--Grantees under this section shall provide, to the 
     extent feasible and appropriate, for the participation of 
     students and teachers in private elementary and secondary 
     schools in programs and activities under this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $50,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years.''.
                                  ____

  SA 515. Mrs. CLINTON 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:

       At the appropriate place, insert the following:

     SEC. __. HOTLINE.

       (a) Findings.--The Senate finds that--
       (1) many middle school and secondary school students attend 
     schools with large or increasing student populations, where 
     the students may feel disconnected from or have no connection 
     with adults in their lives;
       (2) students need support or services when the students are 
     suffering emotional distress, have suicidal thoughts and 
     behaviors, use violence, or use drugs or alcohol, that may 
     cause danger to the students or others;
       (3) numerous studies have documented that student 
     achievement is higher when the families of the students are 
     healthy;
       (4) families need information on support and services to 
     address such issues as domestic violence, and availability of 
     adequate and stable housing, health care, food, after-school 
     programs, and job training and assistance;

[[Page 7704]]

       (5) a public need exists for an easy-to-use, easy-to-
     remember hotline to efficiently bring community information 
     and referral services to persons who need the services, 
     providing a national safety net for those persons to get 
     ready access to assistance;
       (6) switching from a 10 digit number to a 2-1-1 hotline has 
     resulted in a 40 percent increase in call volume in Atlanta, 
     Georgia and statewide in Connecticut; and
       (7) the Federal Communications Commission has designated 2-
     1-1 as the national number for human services information and 
     referral hotlines and will review its implementation in 5 
     years and 2-1-1 hotline providers need funding to plan, 
     develop, and implement 2-1-1 hotlines.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that $10,000,000 should be appropriated for fiscal year 2002 
     for the development and implementation of 2-1-1 hotlines 
     under title XX of the Social Security Act (42 U.S.C. 1397 et 
     seq.), only if the $10,000,000 is above the fiscal year 2001 
     funding level for Title XX of the Social Security Act.
                                  ____

  SA 516. Mrs. CLINTON (for herself, Mr. Torricelli, and Mr. Corzine) 
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 586, between lines 18 and 19, insert the following:

     SEC. __. STUDY CONCERNING THE HEALTH AND LEARNING IMPACTS OF 
                   SICK AND DILAPIDATED PUBLIC SCHOOL BUILDINGS ON 
                   AMERICA'S CHILDREN.

       Title IV, as amended by this title, is further amended by 
     adding at the end the following:

                   ``PART E--MISCELLANEOUS PROVISIONS

     ``SEC. 4501. STUDY CONCERNING THE HEALTH AND LEARNING IMPACTS 
                   OF SICK AND DILAPIDATED PUBLIC SCHOOL BUILDINGS 
                   ON AMERICA'S CHILDREN.

       ``(a) Study Authorized.--The Secretary of Education, in 
     conjunction with the Director of the Centers for Disease 
     Control and Prevention and in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     conduct a study on the health and learning impacts of sick 
     and dilapidated public school buildings on children that have 
     attended or are attending such schools.
       ``(b) Study Specifications.--The following information 
     shall be included in the study conducted under subsection 
     (a):
       ``(1) The characteristics of public elementary and 
     secondary school buildings that contribute to unhealthy 
     school environments, including the prevalence of such 
     characteristics in public elementary and secondary school 
     buildings. Such characteristics may include school buildings 
     that--
       ``(A) have been built on contaminated property;
       ``(B) have poor in-door air quality;
       ``(C) have occurrences of mold;
       ``(D) have ineffective ventilation, heating or cooling 
     systems, inadequate lighting, drinking water that does not 
     meet health-based standards, infestations of rodents, 
     insects, or other animals that may carry or cause disease;
       ``(E) have dust or debris from crumbling structures or 
     construction efforts; and
       ``(F) have been subjected to an inappropriate use of 
     pesticides, insecticides, chemicals, or cleaners, lead-based 
     paint, or asbestos or have radon or such other 
     characteristics as determined by the Director of the Centers 
     for Disease Control and Prevention to indicate an unhealthy 
     school environment.
       ``(2) The health and leaning impacts of sick and 
     dilapidated public school buildings on students that are 
     attending or that have attended a school described in 
     subsection (a), including information on the rates of such 
     impacts where available. Such health impacts may include 
     higher than expected incidence of injury, infectious disease, 
     or chronic disease, such as asthma, allergies, elevated blood 
     lead levels, behavioral disorders, or ultimately cancer. Such 
     learning impacts may include lower levels of student 
     achievement, inability of students to concentrate, and other 
     educational indicators.
       ``(3) Recommendations to Congress on the development and 
     implementation of public health and environmental standards 
     for constructing new public elementary and secondary school 
     buildings, remediating existing public school buildings, and 
     the overall monitoring of public school building health, 
     including cost estimates for the development and 
     implementation of such standards and a cost estimate of 
     bringing all public schools up to such standards.
       ``(4) The identification of the existing gaps in 
     information regarding the health of public elementary and 
     secondary school buildings and the health and learning 
     impacts on students that attend unhealthy public schools, 
     including recommendations for obtaining such information.
       ``(c) Study Completion.--The study under subsection (a) 
     shall be completed by the earlier of--
       ``(1) not later than 18 months after the date of enactment 
     of this Act; or
       ``(2) not later than December 31, 2002.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated $2,000,000 for fiscal year 2002 for the 
     conduct of the study under subsection (a).''.
                                  ____

  SA 517. Mrs. CLINTON 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 309, lines 17 and 18, strike ``subsection (f)'' and 
     insert ``subsections (b) and (f)''.
       On page 339, line 6, strike ``(b)'' and insert ``(c)''.
       On page 339, strike lines 7 through 16 and insert the 
     following:
       ``(b) School Leadership.--
       ``(1) Definitions.--
       ``(A) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency for which more than 30 percent of the students served 
     by the local educational agency are students in poverty.
       ``(B) Poverty line.--The term `poverty line' means the 
     income official 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.
       ``(C) Student in poverty.--The term `student in poverty' 
     means a student from a family with an income below the 
     poverty line.
       ``(2) Program.--The Secretary shall establish and carry out 
     a national principal recruitment program.
       ``(3) Grants.--
       ``(A) In general.--In carrying out the program, the 
     Secretary shall make grants, on a competitive basis, to high-
     need local educational agencies that seek to recruit and 
     train principals (including assistant principals).
       ``(B) Use of funds.--An agency that receives a grant under 
     subparagraph (A) may use the funds made available through the 
     grant to carry out principal recruitment and training 
     activities that may include--
       ``(i) providing stipends for master principals who mentor 
     new principals;
       ``(ii) using funds innovatively to recruit new principals, 
     including recruiting the principals by providing pay 
     incentives or bonuses;
       ``(iii) developing career mentorship and professional 
     development ladders for teachers who want to become 
     principals; and
       ``(iv) developing incentives, and professional development 
     and instructional leadership training programs, to attract 
     individuals from other fields, including business and law, to 
     serve as principals.
       ``(C) Application and plan.--To be eligible to receive a 
     grant under this subsection, a local educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require. The application shall include--
       ``(i) a needs assessment concerning the shortage of 
     qualified principals in the school district involved and an 
     assessment of the potential for recruiting and retaining 
     prospective and aspiring leaders, including teachers who are 
     interested in becoming principals; and
       ``(ii) a comprehensive plan for recruitment and training of 
     principals, including plans for mentorship programs, ongoing 
     professional development, and instructional leadership 
     training, for high-need schools served by the agency.
       ``(D) Priority.--In making grants under this subsection, 
     the Secretary shall give priority to local educational 
     agencies that demonstrate that the agencies will carry out 
     the activities described in subparagraph (B) in partnership 
     with nonprofit organizations and institutions of higher 
     education.
       ``(E) Supplement not supplant.--Funds appropriated to carry 
     out this subsection shall be used to supplement and not 
     supplant other Federal, State, and local public funds 
     expended to provide principal recruitment and retention 
     activities.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for fiscal year 2002 and each subsequent fiscal year.''
                                  ____

  SA 518. Mr. CARPER (for himself, Mr. Gregg, Mr. Frist, Mr. Lieberman, 
Mr. Biden, Mr. Bingaman, Mr. Kerry, Mr. Hutchinson, Mr. Crapo, and Mr. 
DeWine) 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 45, between lines 20 and 21, insert the following:
       ``(H) Each State plan shall provide an assurance that the 
     State's accountability requirements for charter schools (as 
     defined in section 5120), such as requirements established 
     under the State's charter school law

[[Page 7705]]

     and overseen by the State's authorized chartering agencies 
     for such schools, are at least as rigorous as the 
     accountability requirements established under this Act, such 
     as the requirements regarding standards, assessments, 
     adequate yearly progress, school identification, receipt of 
     technical assistance, and corrective action, that are 
     applicable to other schools in the State under this Act.
       On page 763, between lines 10 and 11, insert the following:

     SEC. 502. EMPOWERING PARENTS.

       (a) Short Title.--This section may be cited as the 
     ``Empowering Parents Act of 2001''.
       (b) Public School Choice.--
       (1) Short title of subsection.--This subsection may be 
     referred to as the ``Enhancing Public Education Through 
     Choice Act''.
       (2) Purposes.--The purposes of this subsection are--
       (A) to prevent children from being consigned to, or left 
     trapped in, failing schools;
       (B) to ensure that parents of children in failing public 
     schools have the choice to send their children to higher 
     performing public schools, including public charter schools;
       (C) to support and stimulate improved public school 
     performance through increased public school competition and 
     increased Federal financial assistance;
       (D) to provide parents with more choices among public 
     school options; and
       (E) to assist local educational agencies with low-
     performing schools to implement districtwide public school 
     choice programs or enter into partnerships with other local 
     educational agencies to offer students interdistrict or 
     statewide public school choice programs.
       (3) Public school choice programs.--Part A of title V, as 
     amended in section 501, is further amended by adding at the 
     end the following:

          ``Subpart 4--Voluntary Public School Choice Programs

     ``SEC. 5161. DEFINITIONS.

       ``In this subpart:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5120.
       ``(2) Lowest performing school.--The term `lowest 
     performing school' means a public school that has failed to 
     make adequate yearly progress, as described in section 1111, 
     for 2 or more years.
       ``(3) Poverty line.--The term `poverty line' means the 
     income official poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance 
     with section 673(2) of the Community Services Block Grant Act 
     (42 U.S.C. 9902(2))) applicable to a family of the size 
     involved, for the most recent fiscal year for which 
     satisfactory data are available.
       ``(4) Public school.--The term `public school' means a 
     charter school, a public elementary school, and a public 
     secondary school.
       ``(5) Student in poverty.--The term `student in poverty' 
     means a student from a family with an income below the 
     poverty line.

     ``SEC. 5162. GRANTS.

       ``The Secretary shall make grants, on a competitive basis, 
     to State educational agencies and local educational agencies, 
     to enable the agencies, including the agencies serving the 
     lowest performing schools, to implement programs of universal 
     public school choice.

     ``SEC. 5163. USE OF FUNDS.

       ``(a) In General.--An agency that receives a grant under 
     this subpart shall use the funds made available through the 
     grant to pay for the expenses of implementing a public school 
     choice program, including--
       ``(1) the expenses of providing transportation services or 
     the cost of transportation to eligible children;
       ``(2) the cost of making tuition transfer payments to 
     public schools to which students transfer under the program;
       ``(3) the cost of capacity-enhancing activities that enable 
     high-demand public schools to accommodate transfer requests 
     under the program;
       ``(4) the cost of carrying out public education campaigns 
     to inform students and parents about the program;
       ``(5) administrative costs; and
       ``(6) other costs reasonably necessary to implement the 
     program.
       ``(b) Supplement, Not Supplant.--Funds made available under 
     this subpart shall supplement, and not supplant, State and 
     local public funds expended to provide public school choice 
     programs for eligible individuals.

     ``SEC. 5164. REQUIREMENTS.

       ``(a) Inclusion in Program.--In carrying out a public 
     school choice program under this subpart, a State educational 
     agency or local educational agency shall--
       ``(1) allow all students attending public schools within 
     the State or school district involved to attend the public 
     school of their choice within the State or school district, 
     respectively;
       ``(2) provide all eligible students in all grade levels 
     equal access to the program;
       ``(3) include in the program charter schools and any other 
     public school in the State or school district, respectively; 
     and
       ``(4) develop the program with the involvement of parents 
     and others in the community to be served, and individuals who 
     will carry out the program, including administrators, 
     teachers, principals, and other staff.
       ``(b) Notice.--In carrying out a public school choice 
     program under this subpart, a State educational agency or 
     local educational agency shall give parents of eligible 
     students prompt notice of the existence of the program and 
     the program's availability to such parents, and a clear 
     explanation of how the program will operate.
       ``(c) Transportation.--In carrying out a public school 
     choice program under this subpart, a State educational agency 
     or local educational agency shall provide eligible students 
     with transportation services or the cost of transportation to 
     and from the public schools, including charter schools, that 
     the students choose to attend under this program.
       ``(d) Nondiscrimination.--Notwithstanding subsection 
     (a)(3), no public school may discriminate on the basis of 
     race, color, religion, sex, national origin, sexual 
     orientation, or disability in providing programs and 
     activities under this subpart.
       ``(e) Parallel Accountability.--Each State educational 
     agency or local educational agency receiving a grant under 
     this subpart for a program through which a charter school 
     receives assistance shall hold the school accountable for 
     adequate yearly progress in improving student performance as 
     described in title I and as established in the school's 
     charter, including the use of the standards and assessments 
     established under title I.

     ``SEC. 5165. APPLICATIONS.

       ``(a) In General.--To be eligible to receive a grant under 
     this subpart, a State educational agency or local educational 
     agency shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may require.
       ``(b) Contents.--Each application for a grant under this 
     subpart shall include--
       ``(1) a description of the program for which the agency 
     seeks funds and the goals for such program;
       ``(2) a description of how the program will be coordinated 
     with, and will complement and enhance, other related Federal 
     and non-Federal projects;
       ``(3) if the program is carried out by a partnership, the 
     name of each partner and a description of the partner's 
     responsibilities;
       ``(4) a description of the policies and procedures the 
     agency will use to ensure--
       ``(A) accountability for results, including goals and 
     performance indicators; and
       ``(B) that the program is open and accessible to, and will 
     promote high academic standards for, all students; and
       ``(5) such other information as the Secretary may require.

     ``SEC. 5166. PRIORITIES.

       ``In making grants under this subpart, the Secretary shall 
     give priority to--
       ``(1) first, those State educational agencies and local 
     educational agencies serving the lowest performing schools;
       ``(2) second, those State educational agencies and local 
     educational agencies serving the highest percentage of 
     students in poverty; and
       ``(3) third, those State educational agencies or local 
     educational agencies forming a partnership that seeks to 
     implement an interdistrict approach to carrying out a public 
     school choice program.

     ``SEC. 5167. EVALUATIONS, TECHNICAL ASSISTANCE, AND 
                   DISSEMINATION.

       ``(a) In General.--From the amount made available to carry 
     out this subpart for any fiscal year, the Secretary may 
     reserve not more than 5 percent to carry out evaluations, to 
     provide technical assistance, and to disseminate information.
       ``(b) Evaluations.--In carrying out evaluations under 
     subsection (a), the Secretary may use the amount reserved 
     under subsection (a) to carry out 1 or more evaluations of 
     State and local programs assisted under this subpart, which 
     shall, at a minimum, address--
       ``(1) how, and the extent to which, the programs promote 
     educational equity and excellence; and
       ``(2) the extent to which public schools carrying out the 
     programs are--
       ``(A) held accountable to the public;
       ``(B) effective in improving public education; and
       ``(C) open and accessible to all students.

     ``SEC. 5168. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     subpart $125,000,000 for fiscal year 2002 and each subsequent 
     fiscal year.''.
       (c) Public Charter School Facilities Financing.--
       (1) Short title of subsection.--This subsection may be 
     cited as the ``Charter Schools Equity Act''.
       (2) Purposes.--The purposes of this subsection are--
       (A) to help eliminate the barriers that prevent charter 
     school developers from accessing the credit markets, by 
     encouraging lending institutions to lend funds to charter 
     schools on terms more similar to the terms typically extended 
     to traditional public schools; and
       (B) to encourage the States to provide support to charter 
     schools for facilities financing in an amount more nearly 
     commensurate

[[Page 7706]]

     to the amount the States have typically provided for 
     traditional public schools.
       (3) Charter schools.--
       (A) Conforming amendment.--Section 5112(e)(1), as amended 
     in section 501, is further amended by inserting ``(other than 
     funds reserved to carry out section 5115(b))'' after 
     ``section 5121''.
       (B) Matching grants to states.--Section 5115, as amended in 
     section 501, is further amended--
       (i) in subsection (a), by inserting ``(other than funds 
     reserved to carry out subsection (b))'' after ``this 
     subpart'';
       (ii) by redesignating subsection (b) as subsection (c); and
       (iii) by inserting after subsection (a) the following:
       ``(b) Per-Pupil Facilities Aid Programs.--
       ``(1) Grants.--
       ``(A) In general.--From the amount made available to carry 
     out this subsection under section 5121 for any fiscal year, 
     the Secretary shall make grants, on a competitive basis, to 
     States to pay for the Federal share of the cost of 
     establishing or enhancing, and administering, programs in 
     which the States make payments, on a per-pupil basis, to 
     charter schools to assist the schools in financing school 
     facilities (referred to in this subsection as `per-pupil 
     facilities aid programs').
       ``(B) Period.--The Secretary shall award grants under this 
     subsection for periods of not more than 5 years.
       ``(C) Federal share.--The Federal share of the cost 
     described in subparagraph (A) for a per-pupil facilities aid 
     program shall be not more than--
       ``(i) 90 percent of the cost, for the first fiscal year for 
     which the program receives assistance under this subsection 
     or its predecessor authority;
       ``(ii) 80 percent in the second such year;
       ``(iii) 60 percent in the third such year;
       ``(iv) 40 percent in the fourth such year; and
       ``(v) 20 percent in the fifth such year.
       ``(2) Use of funds.--
       ``(A) In general.--A State that receives a grant under this 
     subsection shall use the funds made available through the 
     grant to establish or enhance, and administer, a per-pupil 
     facilities aid program for charter schools in the State.
       ``(B) Evaluations; technical assistance; dissemination.--
     From the amount made available to a State through a grant 
     under this subsection for a fiscal year, the State may 
     reserve not more than 5 percent of the amount to carry out 
     evaluations, to provide technical assistance, and to 
     disseminate information.
       ``(C) Supplement, not supplant.--Funds made available under 
     this subsection shall supplement, and not supplant, State and 
     local public funds expended to provide per-pupil facilities 
     aid programs, operations financing programs, or other 
     programs, for charter schools.
       ``(3) Requirements.--
       ``(A) Voluntary participation.--No State may be required to 
     participate in a program carried out under this subsection.
       ``(B) State law.--To be eligible to receive a grant under 
     this subsection, a State shall establish or enhance, and 
     administer, a per-pupil facilities aid program for charter 
     schools in the State, that--
       ``(i) is specified in State law;
       ``(ii) provides annual financing, on a per-pupil basis, for 
     charter school facilities; and
       ``(iii) provides financing that is dedicated solely for 
     funding the facilities.
       ``(4) Applications.--To be eligible to receive a grant 
     under this subsection, a State shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(5) Priorities.--In making grants under this subsection, 
     the Secretary shall give priority to States that meet the 
     criteria described in paragraph (2), and subparagraphs (A), 
     (B), and (C) of paragraph (3), of section 5112(e).
       ``(6) Evaluations, Technical Assistance, and 
     Dissemination.--
       ``(A) In general.--From the amount made available to carry 
     out this subsection under section 5121 for any fiscal year, 
     the Secretary may carry out evaluations, provide technical 
     assistance, and disseminate information.
       ``(B) Evaluations.--In carrying out evaluations under 
     subparagraph (A), the Secretary may carry out 1 or more 
     evaluations of State programs assisted under this subsection, 
     which shall, at a minimum, address--
       ``(i) how, and the extent to which, the programs promote 
     educational equity and excellence; and
       ``(ii) the extent to which charter schools supported 
     through the programs are--

       ``(I) held accountable to the public;
       ``(II) effective in improving public education; and
       ``(III) open and accessible to all students.''.

       (C) Authorization of appropriations.--Section 5121, as 
     amended in section 501, is further amended to read as 
     follows:

     ``SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart $400,000,000 for fiscal year 2002 
     and such sums as may be necessary for each of the 4 
     succeeding fiscal years.
       ``(b) Reservation.--For fiscal year 2002, the Secretary 
     shall reserve, from the amount appropriated under subsection 
     (a)--
       ``(1) $200,000,000 to carry out this subpart, other than 
     section 5115(b); and
       ``(2) the remainder to carry out section 5115(b).''.
       (4) Credit enhancement initiatives.--Subpart 1 of part A of 
     title V, as amended in section 501, is further amended--
       (A) by inserting after the subpart heading the following:

                ``CHAPTER I--CHARTER SCHOOL PROGRAMS'';

       (B) by striking ``this subpart'' each place it appears and 
     inserting ``this chapter''; and
       (C) by adding at the end the following:

``CHAPTER II--CREDIT ENHANCEMENT INITIATIVES TO PROMOTE CHARTER SCHOOL 
           FACILITY ACQUISITION, CONSTRUCTION, AND RENOVATION

     ``SEC. 5126. PURPOSE.

       ``The purpose of this chapter is to provide grants to 
     eligible entities to permit the entities to establish or 
     improve innovative credit enhancement initiatives that assist 
     charter schools to address the cost of acquiring, 
     constructing, and renovating facilities.

     ``SEC. 5126A. GRANTS TO ELIGIBLE ENTITIES.

       ``(a) Grants for Initiatives.--
       ``(1) In general.--The Secretary shall use 100 percent of 
     the amount available to carry out this chapter to eligible 
     entities having applications approved under this chapter to 
     carry out innovative initiatives for assisting charter 
     schools to address the cost of acquiring, constructing, and 
     renovating facilities by enhancing the availability of loans 
     or bond financing.
       ``(2) Number of grants.--The Secretary shall award not 
     fewer than 3 of the grants.
       ``(b) Grantee Selection.--
       ``(1) Determination.--The Secretary shall evaluate each 
     application submitted, and shall determine which applications 
     are of sufficient quality to merit approval and which are 
     not.
       ``(2) Minimum grants.--The Secretary shall award at least--
       ``(A) 1 grant to an eligible entity described in section 
     5126I(2)(A);
       ``(B) 1 grant to an eligible entity described in section 
     5126I(2)(B); and
       ``(C) 1 grant to an eligible entity described in section 
     5126I(2)(C),
     if applications are submitted that permit the Secretary to 
     award the grants without approving an application that is not 
     of sufficient quality to merit approval.
       ``(c) Grant Characteristics.--Grants under this chapter 
     shall be in sufficient amounts, and for initiatives of 
     sufficient scope and quality, so as to effectively enhance 
     credit for the financing of charter school acquisition, 
     construction, or renovation.
       ``(d) Special Rule.--In the event the Secretary determines 
     that the funds available to carry out this chapter are 
     insufficient to permit the Secretary to award not fewer than 
     3 grants in accordance with subsections (a) through (c)--
       ``(1) subsections (a)(2) and (b)(2) shall not apply; and
       ``(2) the Secretary may determine the appropriate number of 
     grants to be awarded in accordance with subsections (a)(1), 
     (b)(1), and (c).

     ``SEC. 5126B. APPLICATIONS.

       ``(a) In General.--To receive a grant under this chapter, 
     an eligible entity shall submit to the Secretary an 
     application in such form as the Secretary may reasonably 
     require.
       ``(b) Contents.--An application submitted under subsection 
     (a) shall contain--
       ``(1) a statement identifying the activities proposed to be 
     undertaken with funds received under this chapter, including 
     how the applicant will determine which charter schools will 
     receive assistance, and how much and what types of assistance 
     the charter schools will receive;
       ``(2) a description of the involvement of charter schools 
     in the application's development and the design of the 
     proposed activities;
       ``(3) a description of the applicant's expertise in capital 
     market financing;
       ``(4) a description of how the proposed activities will--
       ``(A) leverage private sector financing capital, to obtain 
     the maximum amount of private sector financing capital, 
     relative to the amount of government funding used, to assist 
     charter schools; and
       ``(B) otherwise enhance credit available to charter 
     schools;
       ``(5) a description of how the applicant possesses 
     sufficient expertise in education to evaluate the likelihood 
     of success of a charter school program for which facilities 
     financing is sought;
       ``(6) in the case of an application submitted by a State 
     governmental entity, a description of the actions that the 
     entity has taken, or will take, to ensure that charter 
     schools within the State receive the funding the schools need 
     to have adequate facilities; and
       ``(7) such other information as the Secretary may 
     reasonably require.

     ``SEC. 5126C. CHARTER SCHOOL OBJECTIVES.

       ``An eligible entity receiving a grant under this chapter 
     shall use the funds received

[[Page 7707]]

     through the grant, and deposited in the reserve account 
     established under section 5126D(a), to assist 1 or more 
     charter schools to access private sector capital to 
     accomplish 1 or more of the following objectives:
       ``(1) The acquisition (by purchase, lease, donation, or 
     otherwise) of an interest (including an interest held by a 
     third party for the benefit of a charter school) in improved 
     or unimproved real property that is necessary to commence or 
     continue the operation of a charter school.
       ``(2) The construction of new facilities, or the 
     renovation, repair, or alteration of existing facilities, 
     necessary to commence or continue the operation of a charter 
     school.
       ``(3) The payment of start-up costs, including the costs of 
     training teachers and purchasing materials and equipment, 
     including instructional materials and computers, for a 
     charter school.

     ``SEC. 5126D. RESERVE ACCOUNT.

       ``(a) In General.--For the purpose of assisting charter 
     schools to accomplish the objectives described in section 
     5126C, an eligible entity receiving a grant under this 
     chapter shall deposit the funds received through the grant 
     (other than funds used for administrative costs in accordance 
     with section 5126E) in a reserve account established and 
     maintained by the entity for that purpose. The entity shall 
     make the deposit in accordance with State and local law and 
     may make the deposit directly or indirectly, and alone or in 
     collaboration with others.
       ``(b) Use of Funds.--Amounts deposited in such account 
     shall be used by the entity for 1 or more of the following 
     purposes:
       ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
     evidences of debt, loans, and interests therein, the proceeds 
     of which are used for an objective described in section 
     5126C.
       ``(2) Guaranteeing and insuring leases of personal and real 
     property for such an objective.
       ``(3) Facilitating financing for such an objective by 
     identifying potential lending sources, encouraging private 
     lending, and carrying out other similar activities that 
     directly promote lending to, or for the benefit of, charter 
     schools.
       ``(4) Facilitating the issuance of bonds by charter 
     schools, or by other public entities for the benefit of 
     charter schools, for such an objective, by providing 
     technical, administrative, and other appropriate assistance 
     (including the recruitment of bond counsel, underwriters, and 
     potential investors and the consolidation of multiple charter 
     school projects within a single bond issue).
       ``(c) Investment.--Funds received under this chapter and 
     deposited in the reserve account shall be invested in 
     obligations issued or guaranteed by the United States or a 
     State, or in other similarly low-risk securities.
       ``(d) Reinvestment of Earnings.--Any earnings on funds 
     received under this chapter shall be deposited in the reserve 
     account established under subsection (a) and used in 
     accordance with subsection (b).

     ``SEC. 5126E. LIMITATION ON ADMINISTRATIVE COSTS.

       ``An eligible entity that receives a grant under this 
     chapter may use not more than 0.25 percent of the funds 
     received through the grant for the administrative costs of 
     carrying out the entity's responsibilities under this 
     chapter.

     ``SEC. 5126F. AUDITS AND REPORTS.

       ``(a) Financial Record Maintenance and Audit.--The 
     financial records of each eligible entity receiving a grant 
     under this chapter shall be maintained in accordance with 
     generally accepted accounting principles and shall be subject 
     to an annual audit by an independent public accountant.
       ``(b) Reports.--
       ``(1) Grantee annual reports.--Each eligible entity 
     receiving a grant under this chapter annually shall submit to 
     the Secretary a report of the entity's operations and 
     activities under this chapter.
       ``(2) Contents.--Each such annual report shall include--
       ``(A) a copy of the most recent financial statements, and 
     any accompanying opinion on such statements, prepared by the 
     independent public accountant auditing the financial records 
     of the eligible entity;
       ``(B) a copy of any report made on an audit of the 
     financial records of the eligible entity that was conducted 
     under subsection (a) during the reporting period;
       ``(C) an evaluation by the eligible entity of the 
     effectiveness of the entity's use of the Federal funds 
     provided under this chapter in leveraging private funds;
       ``(D) a listing and description of the charter schools 
     served by the entity with such Federal funds during the 
     reporting period;
       ``(E) a description of the activities carried out by the 
     eligible entity to assist charter schools in meeting the 
     objectives set forth in section 5126C; and
       ``(F) a description of the characteristics of lenders and 
     other financial institutions participating in the activities 
     undertaken by the eligible entity under this chapter during 
     the reporting period.
       ``(3) Secretarial report.--The Secretary shall review the 
     reports submitted under paragraph (1) and shall provide a 
     comprehensive annual report to Congress on the activities 
     conducted under this chapter.

     ``SEC. 5126G. NO FULL FAITH AND CREDIT FOR GRANTEE 
                   OBLIGATIONS.

       ``No financial obligation of an eligible entity entered 
     into pursuant to this chapter (such as an obligation under a 
     guarantee, bond, note, evidence of debt, or loan) shall be an 
     obligation of, or guaranteed in any respect by, the United 
     States. The full faith and credit of the United States is not 
     pledged to the payment of funds that may be required to be 
     paid under any obligation made by an eligible entity pursuant 
     to any provision of this chapter.

     ``SEC. 5126H. RECOVERY OF FUNDS.

       ``(a) In General.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(1) all of the funds in a reserve account established by 
     an eligible entity under section 5126D(a) if the Secretary 
     determines, not earlier than 2 years after the date on which 
     the entity first received funds under this chapter, that the 
     entity has failed to make substantial progress in carrying 
     out the purposes described in section 5126D(b); or
       ``(2) all or a portion of the funds in a reserve account 
     established by an eligible entity under section 5126D(a) if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of the funds in 
     such account to accomplish any purpose described in section 
     5126D(b).
       ``(b) Exercise of Authority.--The Secretary shall not 
     exercise the authority provided in subsection (a) to collect 
     from any eligible entity any funds that are being properly 
     used to achieve 1 or more of the purposes described in 
     section 5126D(b).
       ``(c) Procedures.--The provisions of sections 451, 452, and 
     458 of the General Education Provisions Act (20 U.S.C. 1234 
     et seq.) shall apply to the recovery of funds under 
     subsection (a).
       ``(d) Construction.--This section shall not be construed to 
     impair or affect the authority of the Secretary to recover 
     funds under part D of the General Education Provisions Act 
     (20 U.S.C. 1234 et seq.).

     ``SEC. 5126I. DEFINITIONS.

       ``In this chapter:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5120.
       ``(2) Eligible entity.--The term `eligible entity' means--
       ``(A) a public entity, such as a State or local 
     governmental entity;
       ``(B) a private nonprofit entity; or
       ``(C) a consortium of entities described in subparagraphs 
     (A) and (B).

     ``SEC. 5126J. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     chapter $200,000,000 for fiscal year 2002 and each subsequent 
     fiscal year.''.
       (5) Income exclusion for interest paid on loans by charter 
     schools.--
       (A) In general.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by 
     redesignating section 139 and section 140 and by inserting 
     after section 138 the following new section:

     ``SEC. 139. INTEREST ON CHARTER SCHOOL LOANS.

       ``(a) Exclusion.--Gross income does not include interest on 
     any charter school loan.
       ``(b) Charter School Loan.--For purposes of this section:
       ``(1) In general.--The term `charter school loan' means any 
     indebtedness incurred by a charter school.
       ``(2) Charter school.--The term `charter school' has the 
     meaning given such term in section 5120 of the Elementary and 
     Secondary Education Act of 1965.''.
       (B) Conforming amendment.--The table of sections for such 
     part III is amended by striking the item relating to section 
     139 and inserting the following:

``Sec. 139. Interest on charter school loans.
``Sec. 140. Cross references to other Acts.''.

       (C) Effective date.--The amendments made by this paragraph 
     shall apply to taxable years beginning after December 31, 
     2000, with respect to indebtedness incurred after the date of 
     the enactment of this Act.
                                  ____

  SA 519. Mr. BINGAMAN (for himself, Mr. Hutchinson, Mr. Hollings, and 
Mr. Corzine) 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 577, line 2, strike the double quote and period.
       On page 577, between lines 2 and 3, insert the following:

     ``SEC. 4304. SCHOOL SECURITY TECHNOLOGY AND RESOURCE CENTER.

       ``(a) Center.--The Attorney General, the Secretary of 
     Education, and the Secretary of Energy shall enter into an 
     agreement for the establishment at the Sandia National 
     Laboratories, in partnership with the National Law 
     Enforcement and Corrections Technology Center--Southeast and 
     the National Center for Rural Law Enforcement in Little Rock, 
     Arkansas, of a center to be known as

[[Page 7708]]

     the `School Security Technology and Resource Center'.
       ``(b) Administration.--The center established under 
     subsection (a) shall be administered by the Attorney General.
       ``(c) Functions.--The center established under subsection 
     (a) shall be a resource to local educational agencies for 
     school security assessments, security technology development, 
     evaluation and implementation, and technical assistance 
     relating to improving school security. The center will also 
     conduct and publish school violence research, coalesce data 
     from victim communities, and monitor and report on schools 
     that implement school security strategies.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $2,750,000 for 
     each of the fiscal years 2002, 2003, and 2004, of which 
     $2,000,000 shall be for Sandia National Laboratories in each 
     fiscal year, $2,000,000 shall be for the National Center for 
     Rural Law Enforcement in each fiscal year, and $750,000 shall 
     be for the National Law Enforcement and Corrections 
     Technology Center Southeast in each fiscal year.

     ``SEC. 4305. LOCAL SCHOOL SECURITY PROGRAMS.

       ``(a) In General.--
       ``(1) Grants Authorized.--From amounts appropriated under 
     subsection (c), the Secretary shall award grants on a 
     competitive basis to local educational agencies to enable the 
     agencies to acquire security technology for, or carry out 
     activities related to improving security at, the middle and 
     secondary schools served by the agencies, including obtaining 
     school security assessments, and technical assistance, for 
     the development of a comprehensive school security plan from 
     the School Security Technology and Resource Center.
       ``(2) Application.--To be eligible to receive a grant under 
     this section, a local educational agency shall submit to the 
     Secretary an application in such form and containing such 
     information as the Secretary may require, including 
     information relating to the security needs of the agency.
       ``(3) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to local educational agencies 
     that demonstrate the highest security needs, as reported by 
     the agency in the application submitted under paragraph (2).
       ``(b) Applicability.--The provisions of this part (other 
     than this section) shall not apply to this section.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002, 2003, and 2004.''.

     ``SEC. 4306. SAFE AND SECURE SCHOOL ADVISORY REPORT.

       ``Not later than 1 year after the date of enactment of this 
     Act, the Attorney General, in consultation with the Secretary 
     of Education and the Secretary of Energy, or their designees, 
     shall--
       ``(1) develop a proposal to further improve school 
     security; and
       ``(2) submit that proposal to Congress.''
                                  ____

  SA 520. Mr. BAYH 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 end of title IX, add the following:

     SEC. 902. IMPACT AID PAYMENTS RELATING TO FEDERAL ACQUISITION 
                   OF REAL PROPERTY.

       Section 8002 (20 U.S.C. 7702), as amended by section 1803 
     of the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398), 
     is amended--
       (1) in subsection (h)(4), by striking subparagraph (B) and 
     inserting the following:
       ``(B) the Secretary shall make a payment to each local 
     educational agency that is eligible to receive a payment 
     under this section for the fiscal year involved in an amount 
     that bears the same relation to 75 percent of the remainder 
     as a percentage share determined for the local educational 
     agency (as determined by dividing the maximum amount that 
     such agency is eligible to receive under subsection (b) by 
     the total maximum amounts that all such local educational 
     agencies are eligible to receive under such subsection) bears 
     to the percentage share determined (in the same manner) for 
     all local educational agencies eligible to receive a payment 
     under this section for the fiscal year involved, except that 
     for purposes of calculating a local educational agency's 
     maximum payment, data from the most current fiscal year shall 
     be used.''; and
       (2) by adding at the end the following:
       ``(n) Loss of Eligibility.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, the Secretary shall make the following minimum 
     payments for each fiscal year to each local educational 
     agency described in paragraph (2):
       ``(A) For the first fiscal year following the loss of 
     eligibility (as described in paragraph (2)), an amount equal 
     to 90 percent of the amount received in the final fiscal year 
     of eligibility.
       ``(B) For the second fiscal year following the loss of 
     eligibility (as described in paragraph (2)), an amount equal 
     to 75 percent of the amount received in the final fiscal year 
     of eligibility.
       ``(C) For the third fiscal year following the loss of 
     eligibility (as described in paragraph (2)), an amount equal 
     to 50 percent of the amount received in the final fiscal year 
     of eligibility.
       ``(2) Eligible local educational agencies.--A local 
     educational agency described in this paragraph is an agency 
     that--
       ``(A) was eligible for, and received, a payment under this 
     section for fiscal year 2002; and
       ``(B) beginning in fiscal year 2003 or a subsequent fiscal 
     year, is no longer eligible for payments under this section 
     as provided for in subsection (a)(1)(C) as a result of the 
     transfer of the Federal property involved to a non-Federal 
     entity.''.
                                  ____

  SA 521. Mr. BAYH 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 308, strike line 9 and insert the following:
       ``(10) State educational agency.--The term `State 
     educational agency' means the entity or agency designated 
     under the laws of a State as responsible for teacher 
     certification or licensing in the State.
       ``(11) Teacher mentoring.--The term
       On page 316, after line 25, add the following:
       ``(d) Submission.--Portions of the application that relate 
     to activities carried out under subpart 3 shall be jointly 
     prepared and submitted by the State educational agency and 
     the State agency for higher education.
                                  ____

  SA 522. Mr. BAYH 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 308, strike line 9 and insert the following:
       ``(10) State educational agency.--The term `State 
     educational agency' means the entity or agency designated 
     under the laws of a State as responsible for teacher 
     certification or licensing in the State.
       ``(11) Teacher mentoring.--The term''.
                                  ____

  SA 523. Mr. LIEBERMAN 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. __. SENSE OF THE SENATE REGARDING STREAMLINING OF 
                   EDUCATION PROGRAMS.

       (a) Findings.--The Senate finds the following:
       (1)(A) In 1965, Congress enacted and President Johnson 
     signed into law the Elementary and Secondary Education Act of 
     1965, taking bold new action with the primary goal of 
     ensuring that low-income children have the same opportunity 
     for a quality public education as their more affluent peers.
       (B) Today the Federal role embodied in the original 
     Elementary and Secondary Education Act of 1965 is still 
     critical, but the global economy and increasing demands for a 
     more highly skilled workforce require more from the public 
     education system. Although the number of titles and programs 
     in the Elementary and Secondary Education Act of 1965 have 
     multiplied from efforts to try and address changing times, 
     the underlying philosophy of the Act and methods used in the 
     Act have not been rethought. As a result, the Elementary and 
     Secondary Education Act of 1965 has grown into a confusing, 
     unfocused mix of programs.
       (2) Currently the Federal government's funding for and 
     focus on education programs are dispersed in dozens of 
     directions. More importantly, by dispersing the funding, the 
     Federal government has diluted the impact of Federal 
     investments and diminished the government's ability to cause 
     bold changes in the public education system.
       (3) The Federal government has a far better chance of 
     spurring far-reaching reforms and improving the quality of 
     schools if the government concentrates on a few, clear 
     national priorities, gives the States and localities room and 
     reason to innovate, and then hold the State and localities 
     responsible for producing results.
       (4) This Act streamlines numerous titles, with nearly 50 
     different funding channels for education programs, into 7 
     performance-based titles, all of which are geared toward the 
     Nation's top priority of raising academic achievement.
       (5) Congress must uphold a commitment to a new streamlined 
     and focused Federal role in education.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--

[[Page 7709]]

       (1) Congress should uphold the streamlining of education 
     programs achieved in S. 1, 107th Congress, as placed on the 
     calendar of the Senate; and
       (2) Congress should oppose efforts to create new programs 
     or set asides for elementary school or secondary school 
     education that contradict the goal of concentrating the 
     Federal focus and funding for education programs on a 
     limited, but critical, number of national priorities that are 
     most directly linked to raising student achievement.
                                  ____

  SA 524. Mr. AKAKA 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. __. EXCELLENCE IN ECONOMIC EDUCATION.

       Title IX, as amended by section 901, is further amended by 
     adding at the end the following:

               ``PART B--EXCELLENCE IN ECONOMIC EDUCATION

     ``SEC. 9201. SHORT TITLE; FINDINGS.

       ``(a) Short Title.--This part may be cited as the 
     ``Excellence in Economic Education Act of 2001''.
       ``(b) Findings.--Congress makes the following findings:
       ``(1) The need for economic literacy in the United States 
     has grown exponentially in the 1990's as a result of rapid 
     technological advancements and increasing globalization, 
     giving individuals in the United States more numerous and 
     complex economic and financial choices than ever before as 
     members of the workforce, managers of their families' 
     resources, and voting citizens.
       ``(2) Studies show that many individuals in the United 
     States lack essential knowledge in personal finance and 
     economic literacy.
       ``(3) A 1998-1999 test conducted by the National Council on 
     Economic Education pointed out that many individuals in the 
     United States believe that there is a need for our Nation's 
     youth to possess an understanding of personal finance and 
     economic principles, with 96 percent of adults tested 
     believing that basic economics should be taught in secondary 
     school.

     ``SEC. 9202. EXCELLENCE IN ECONOMIC EDUCATION.

       ``(a) Purpose.--The purpose of this part is to promote 
     economic and financial literacy among all United States 
     students in kindergarten through grade 12 by awarding a 
     competitive grant to a national nonprofit educational 
     organization that has as its primary purpose the improvement 
     of the quality of student understanding of personal finance 
     and economics.
       ``(b) Goals.--The goals of this part are--
       ``(1) to increase students' knowledge of and achievement in 
     economics to enable the students to become more productive 
     and informed citizens;
       ``(2) to strengthen teachers' understanding of and 
     competency in economics to enable the teachers to increase 
     student mastery of economic principles and their practical 
     application;
       ``(3) to encourage economic education research and 
     development, to disseminate effective instructional 
     materials, and to promote replication of best practices and 
     exemplary programs that foster economic literacy;
       ``(4) to assist States in measuring the impact of education 
     in economics, which is 1 of 9 national core content areas 
     described in section 306(c) of the Goals 2000: Educate 
     America Act (20 U.S.C. 5886(c)); and
       ``(5) to leverage and expand private and public support for 
     economic education partnerships at national, State, and local 
     levels.

     ``SEC. 9203. GRANT PROGRAM AUTHORIZED.

       ``(a) Competitive Grant Program for Excellence in Economic 
     Education.--
       ``(1) In general.--The Secretary is authorized to award a 
     competitive grant to a national nonprofit educational 
     organization that has as its primary purpose the improvement 
     of the quality of student understanding of personal finance 
     and economics through effective teaching of economics in the 
     Nation's classrooms (referred to in this section as the 
     `grantee').
       ``(2) Use of grant funds.--
       ``(A) One-quarter.--The grantee shall use \1/4\ of the 
     funds made available through the grant and not reserved under 
     subsection (f) for a fiscal year--
       ``(i) to strengthen and expand the grantee's relationships 
     with State and local personal finance, entrepreneurial, and 
     economic education organizations;
       ``(ii) to support and promote training, of teachers who 
     teach a grade from kindergarten through grade 12, regarding 
     economics, including the dissemination of information on 
     effective practices and research findings regarding the 
     teaching of economics;
       ``(iii) to support research on effective teaching practices 
     and the development of assessment instruments to document 
     student performance; and
       ``(iv) to develop and disseminate appropriate materials to 
     foster economic literacy.
       ``(B) Three-quarters.--The grantee shall use \3/4\ of the 
     funds made available through the grant for a fiscal year to 
     award grants to State or local school boards, and State or 
     local economic, personal finance, or entrepreneurial 
     education organizations (which shall be referred to in this 
     section as a `recipient'). The grantee shall award such a 
     grant to pay for the Federal share of the cost of enabling 
     the recipient to work in partnership with 1 or more of the 
     entities described in paragraph (3) for 1 or more of the 
     following purposes:
       ``(i) Collaboratively establishing and conducting teacher 
     training programs that use effective and innovative 
     approaches to the teaching of economics, personal finance, 
     and entrepreneurship.
       ``(ii) Providing resources to school districts that want to 
     incorporate economics and personal finance into the curricula 
     of the schools in the districts.
       ``(iii) Conducting evaluations of the impact of economic 
     and financial literacy education on students.
       ``(iv) Conducting economic and financial literacy education 
     research.
       ``(v) Creating and conducting school-based student 
     activities to promote consumer, economic, and personal 
     finance education, such as saving, investing, and 
     entrepreneurial education, and to encourage awareness and 
     student achievement in economics.
       ``(vi) Encouraging replication of best practices to 
     encourage economic and financial literacy.
       ``(C) Additional requirements and technical assistance.--
     The grantee shall--
       ``(i) meet such other requirements as the Secretary 
     determines to be necessary to assure compliance with this 
     section; and
       ``(ii) provide such technical assistance as may be 
     necessary to carry out this section.
       ``(3) Partnership entities.--The entities referred to in 
     paragraph (2)(B) are the following:
       ``(A) A private sector entity.
       ``(B) A State educational agency.
       ``(C) A local educational agency.
       ``(D) An institution of higher education.
       ``(E) Another organization promoting economic development.
       ``(F) Another organization promoting educational 
     excellence.
       ``(G) Another organization promoting personal finance or 
     entrepreneurial education.
       ``(4) Administrative costs.--The grantee and each recipient 
     receiving a grant under this section for a fiscal year may 
     use not more than 25 percent of the funds made available 
     through the grant for administrative costs.
       ``(b) Teacher Training Programs.--In carrying out the 
     teacher training programs described in subsection (a)(2)(B) a 
     recipient shall--
       ``(1) train teachers who teach a grade from kindergarten 
     through grade 12; and
       ``(2) encourage teachers from disciplines other than 
     economics and financial literacy to participate in such 
     teacher training programs, if the training will promote the 
     economic and financial literacy of their students.
       ``(c) Involvement of Business Community.--In carrying out 
     the activities assisted under this part the grantee and 
     recipients are strongly encouraged to--
       ``(1) include interactions with the local business 
     community to the fullest extent possible, to reinforce the 
     connection between economic and financial literacy and 
     economic development; and
       ``(2) work with private businesses to obtain matching 
     contributions for Federal funds and assist recipients in 
     working toward self-sufficiency.
       ``(d) Federal Share.--
       ``(1) In general.--The Federal share of the cost described 
     in subsection (a)(2)(B) shall be 50 percent.
       ``(2) Non-federal share.--The non-Federal share may be paid 
     in cash or in kind, fairly evaluated, including plant, 
     equipment, or services.
       ``(e) Applications.--
       ``(1) Grantee.--To be eligible to receive a grant under 
     this section, the grantee shall submit to the Secretary an 
     application at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(2) Recipients.--
       ``(A) In general.--To be eligible to receive a grant under 
     this section, a recipient shall submit an application to the 
     grantee at such time, in such manner, and accompanied by such 
     information as the grantee may require.
       ``(B) Review.--The grantee shall invite the individuals 
     described in subparagraph (C) to review all applications from 
     recipients for a grant under this section and to make 
     recommendations to the grantee regarding the funding of the 
     applications.
       ``(C) Individuals.--The individuals referred to in 
     subparagraph (B) are the following:
       ``(i) Leaders in the fields of economics and education.
       ``(ii) Such other individuals as the grantee determines to 
     be necessary, especially members of the State and local 
     business, banking, and finance community.
       ``(f) Supplement and Not Supplant.--Funds appropriated 
     under this section shall be used to supplement and not 
     supplant

[[Page 7710]]

     other Federal, State, and local funds expended for the 
     purpose described in section 9202(a).
       ``(g) Report.--The Secretary shall prepare and submit to 
     the appropriate committees of Congress a report regarding 
     activities assisted under this section not later than 2 years 
     after the date funds are first appropriated under subsection 
     (h) and every 2 years thereafter.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part 
     $10,000,000 for fiscal year 2002, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.''.
                                  ____

  SA 525. Mr. HARKIN (for himself, Mr. Kerry, Mr. Levin, Mr. Reid, Mr. 
Biden, Mr. Corzine, and Mr. Johnson) 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. __. PUBLIC SCHOOL REPAIR AND RENOVATION.

       (a) Short Title.--This section may be cited as the ``Public 
     School Repair and Renovation Act of 2001''.
       (b) Grants for School Renovation.--Title IX, as added by 
     section 901, is amended by adding at the end the following:

                      ``PART B--SCHOOL RENOVATION

     ``SEC. 9201. GRANTS FOR SCHOOL RENOVATION.

       ``(a) In General.--
       ``(1) Allocation of funds.--Of the amount appropriated for 
     each fiscal year under subsection (k), the Secretary of 
     Education shall allocate--
       ``(A) 6.0 percent of such amount for grants to impacted 
     local educational agencies (as defined in paragraph (3)) for 
     school repair, renovation, and construction;
       ``(B) 0.25 percent of such amount for grants to outlying 
     areas for school repair and renovation in high-need schools 
     and communities, allocated on such basis, and subject to such 
     terms and conditions, as the Secretary determines 
     appropriate;
       ``(C) 2 percent of such amount for grants to public 
     entities, private nonprofit entities, and consortia of such 
     entities, for use in accordance with subpart 2 of part C of 
     this title X; and
       ``(D) the remainder to State educational agencies in 
     proportion to the amount each State received under part A of 
     title I for fiscal year 2001, except that no State shall 
     receive less than 0.5 percent of the amount allocated under 
     this subparagraph.
       ``(2) Determination of grant amount.--
       ``(A) Determination of weighted student units.--For 
     purposes of computing the grant amounts under paragraph 
     (1)(A) for fiscal year 2001, the Secretary shall determine 
     the results obtained by the computation made under section 
     8003 with respect to children described in subsection 
     (a)(1)(C) of such section and computed under subsection 
     (a)(2)(B) of such section for such year--
       ``(i) for each impacted local educational agency that 
     receives funds under this section; and
       ``(ii) for all such agencies together.
       ``(B) Computation of payment.--For fiscal year 2002, the 
     Secretary shall calculate the amount of a grant to an 
     impacted local educational agency by--
       ``(i) dividing the amount described in paragraph (1)(A) by 
     the results of the computation described in subparagraph 
     (A)(ii); and
       ``(ii) multiplying the number derived under clause (i) by 
     the results of the computation described in subparagraph 
     (A)(i) for such agency.
       ``(3) Definition.--For purposes of this section, the term 
     `impacted local educational agency' means, for fiscal year 
     2001--
       ``(A) a local educational agency that receives a basic 
     support payment under section 8003(b) for such fiscal year; 
     and
       ``(B) with respect to which the number of children 
     determined under section 8003(a)(1)(C) for the preceding 
     school year constitutes at least 50 percent of the total 
     student enrollment in the schools of the agency during such 
     school year.
       ``(b) Within-State Allocations.--
       ``(1) Administrative costs.--
       ``(A) State educational agency administration.--Except as 
     provided in subparagraph (B), each State educational agency 
     may reserve not more than 1 percent of its allocation under 
     subsection (a)(1)(D) for the purpose of administering the 
     distribution of grants under this subsection.
       ``(B) State entity administration.--If the State 
     educational agency transfers funds to a State entity 
     described in paragraph (2)(A), the agency shall transfer to 
     such entity 0.75 of the amount reserved under this paragraph 
     for the purpose of administering the distribution of grants 
     under this subsection.
       ``(2) Reservation for competitive school repair and 
     renovation grants to local educational agencies.--
       ``(A) In general.--Subject to the reservation under 
     paragraph (1), of the funds allocated to a State educational 
     agency under subsection (a)(1)(D), the State educational 
     agency shall distribute 75 percent of such funds to local 
     educational agencies or, if such State educational agency is 
     not responsible for the financing of education facilities, 
     the agency shall transfer such funds to the State entity 
     responsible for the financing of education facilities 
     (referred to in this section as the `State entity') for 
     distribution by such entity to local educational agencies in 
     accordance with this paragraph, to be used, consistent with 
     subsection (c), for school repair and renovation.
       ``(B) Competitive grants to local educational agencies.--
       ``(i) In general.--The State educational agency or State 
     entity shall carry out a program of competitive grants to 
     local educational agencies for the purpose described in 
     subparagraph (A). Of the total amount available for 
     distribution to such agencies under this paragraph, the State 
     educational agency or State entity, shall, in carrying out 
     the competition--

       ``(I) award to high poverty local educational agencies 
     described in clause (ii), in the aggregate, at least an 
     amount which bears the same relationship to such total amount 
     as the aggregate amount such local educational agencies 
     received under part A of title I for fiscal year 2002 bears 
     to the aggregate amount received for such fiscal year under 
     such part by all local educational agencies in the State;
       ``(II) award to rural local educational agencies in the 
     State, in the aggregate, at least an amount which bears the 
     same relationship to such total amount as the aggregate 
     amount such rural local educational agencies received under 
     part A of title I for fiscal year 2001 bears to the aggregate 
     amount received for such fiscal year under such part by all 
     local educational agencies in the State; and
       ``(III) award the remaining funds to local educational 
     agencies not receiving an award under subclause (I) or (II), 
     including high poverty and rural local educational agencies 
     that did not receive such an award.

       ``(ii) High poverty local educational agencies.--A local 
     educational agency is described in this clause if--

       ``(I) the percentage described in subparagraph (C)(i) with 
     respect to the agency is 30 percent or greater; or
       ``(II) the number of children described in such 
     subparagraph with respect to the agency is at least 10,000.

       ``(C) Criteria for awarding grants.--In awarding 
     competitive grants under this paragraph, a State educational 
     agency or State entity shall take into account the following 
     criteria:
       ``(i) The percentage of poor children 5 to 17 years of age, 
     inclusive, in a local educational agency.
       ``(ii) The need of a local educational agency for school 
     repair and renovation, as demonstrated by the condition of 
     its public school facilities.
       ``(iii) The fiscal capacity of a local educational agency 
     to meet its needs for repair and renovation of public school 
     facilities without assistance under this section, including 
     its ability to raise funds through the use of local bonding 
     capacity and otherwise.
       ``(iv) In the case of a local educational agency that 
     proposes to fund a repair or renovation project for a charter 
     school or schools, the extent to which the school or schools 
     have access to funding for the project through the financing 
     methods available to other public schools or local 
     educational agencies in the State.
       ``(v) The likelihood that the local educational agency will 
     maintain, in good condition, any facility whose repair or 
     renovation is assisted under this section.
       ``(D) Possible matching requirement.--
       ``(i) In general.--A State educational agency or State 
     entity may require local educational agencies to match funds 
     awarded under this subsection.
       ``(ii) Match amount.--The amount of a match described in 
     clause (i) may be established by using a sliding scale that 
     takes into account the relative poverty of the population 
     served by the local educational agency.
       ``(3) Reservation for competitive idea or technology grants 
     to local educational agencies.--
       ``(A) In general.--Subject to the reservation under 
     paragraph (1), of the funds allocated to a State educational 
     agency under subsection (a)(1)(D), the State educational 
     agency shall distribute 25 percent of such funds to local 
     educational agencies through competitive grant processes, to 
     be used for the following:
       ``(i) To carry out activities under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       ``(ii) For technology activities that are carried out in 
     connection with school repair and renovation, including--

       ``(I) wiring;
       ``(II) acquiring hardware and software;
       ``(III) acquiring connectivity linkages and resources; and
       ``(IV) acquiring microwave, fiber optics, cable, and 
     satellite transmission equipment.

       ``(B) Criteria for awarding idea grants.--In awarding 
     competitive grants under subparagraph (A) to be used to carry 
     out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), a State 
     educational agency shall take into account the following 
     criteria:

[[Page 7711]]

       ``(i) The need of a local educational agency for additional 
     funds for a student whose individually allocable cost for 
     expenses related to the Individuals with Disabilities 
     Education Act substantially exceeds the State's average per-
     pupil expenditure (as defined in section 3).
       ``(ii) The need of a local educational agency for 
     additional funds for special education and related services 
     under part B of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1411 et seq.).
       ``(iii) The need of a local educational agency for 
     additional funds for assistive technology devices (as defined 
     in section 602 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1401)) or assistive technology services (as so 
     defined) for children being served under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       ``(iv) The need of a local educational agency for 
     additional funds for activities under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.) in order for children with disabilities to make 
     progress toward meeting the performance goals and indicators 
     established by the State under section 612(a)(16) of such Act 
     (20 U.S.C. 1412).
       ``(C) Criteria for awarding technology grants.--In awarding 
     competitive grants under subparagraph (A) to be used for 
     technology activities that are carried out in connection with 
     school repair and renovation, a State educational agency 
     shall take into account the need of a local educational 
     agency for additional funds for such activities, including 
     the need for the activities described in subclauses (I) 
     through (IV) of subparagraph (A)(ii).
       ``(c) Rules Applicable to School Repair and Renovation.--
     With respect to funds made available under this section that 
     are used for school repair and renovation, the following 
     rules shall apply:
       ``(1) Permissible uses of funds.--School repair and 
     renovation shall be limited to one or more of the following:
       ``(A) Emergency repairs or renovations to public school 
     facilities only to ensure the health and safety of students 
     and staff, including--
       ``(i) repairing, replacing, or installing roofs, electrical 
     wiring, plumbing systems, sewage systems, windows, or doors;
       ``(ii) repairing, replacing, or installing heating, 
     ventilation, or air conditioning systems (including 
     insulation); and
       ``(iii) bringing public schools into compliance with fire 
     and safety codes.
       ``(B) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 
     et seq.).
       ``(C) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
     794).
       ``(D) Asbestos abatement or removal from public school 
     facilities.
       ``(E) Implementing measures designed to reduce or eliminate 
     human exposure to lead-based paint hazards through methods 
     including interim controls or abatement or a combination of 
     each.
       ``(F) Renovation, repair, and acquisition needs related to 
     the building infrastructure of a charter school.
       ``(2) Impermissible uses of funds.--No funds received under 
     this section may be used for--
       ``(A) payment of maintenance costs in connection with any 
     projects constructed in whole or part with Federal funds 
     provided under this section;
       ``(B) the construction of new facilities, except for 
     facilities for an impacted local educational agency (as 
     defined in subsection (a)(3)); or
       ``(C) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public.
       ``(3) Charter schools.--A public charter school that 
     constitutes a local educational agency under State law shall 
     be eligible for assistance under the same terms and 
     conditions as any other local educational agency (as defined 
     in section 3).
       ``(4) Supplement, not supplant.--Excluding the uses 
     described in subparagraphs (B) and (C) of paragraph (1), a 
     local educational agency shall use Federal funds subject to 
     this subsection only to supplement the amount of funds that 
     would, in the absence of such Federal funds, be made 
     available from non-Federal sources for school repair and 
     renovation.
       ``(d) Special Rule.--Each local educational agency that 
     receives funds under this section shall ensure that, if it 
     carries out repair or renovation through a contract, any such 
     contract process ensures the maximum number of qualified 
     bidders, including small, minority, and women-owned 
     businesses, through full and open competition.
       ``(e) Public Comment.--Each local educational agency 
     receiving funds under paragraph (2) or (3) of subsection 
     (b)--
       ``(1) shall provide parents, educators, and all other 
     interested members of the community the opportunity to 
     consult on the use of funds received under such paragraph;
       ``(2) shall provide the public with adequate and efficient 
     notice of the opportunity described in paragraph (1) in a 
     widely read and distributed medium; and
       ``(3) shall provide the opportunity described in paragraph 
     (1) in accordance with any applicable State and local law 
     specifying how the comments may be received and how the 
     comments may be reviewed by any member of the public.
       ``(f) Reporting.--
       ``(1) Local reporting.--Each local educational agency 
     receiving funds under subsection (a)(1)(D) shall submit a 
     report to the State educational agency, at such time as the 
     State educational agency may require, describing the use of 
     such funds for--
       ``(A) school repair and renovation (and construction, in 
     the case of an impacted local educational agency (as defined 
     in subsection (a)(3)));
       ``(B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       ``(C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       ``(2) State reporting.--Each State educational agency shall 
     submit to the Secretary of Education, not later than December 
     31, 2003, a report on the use of funds received under 
     subsection (a)(1)(D) by local educational agencies for--
       ``(A) school repair and renovation (and construction, in 
     the case of an impacted local educational agency (as defined 
     in subsection (a)(3)));
       ``(B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       ``(C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       ``(3) Additional reports.--Each entity receiving funds 
     allocated under subsection (a)(1) (A) or (B) shall submit to 
     the Secretary, not later than December 31, 2003, a report on 
     its uses of funds under this section, in such form and 
     containing such information as the Secretary may require.
       ``(g) Applicability of Part B of IDEA.--If a local 
     educational agency uses funds received under this section to 
     carry out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), such 
     part (including provisions respecting the participation of 
     private school children), and any other provision of law that 
     applies to such part, shall apply to such use.
       ``(h) Reallocation.--If a State educational agency does not 
     apply for an allocation of funds under subsection (a)(1)(D) 
     for fiscal year 2002, or does not use its entire allocation 
     for such fiscal year, the Secretary may reallocate the amount 
     of the State educational agency's allocation (or the 
     remainder thereof, as the case may be) to the remaining State 
     educational agencies in accordance with subsection (a)(1)(D).
       ``(i) Participation of Private Schools.--
       ``(1) In general.--Section 5342 shall apply to subsection 
     (b)(2) in the same manner as it applies to activities under 
     title VI, except that--
       ``(A) such section shall not apply with respect to the 
     title to any real property renovated or repaired with 
     assistance provided under this section;
       ``(B) the term `services' as used in section 5342 with 
     respect to funds under this section shall be provided only to 
     private, nonprofit elementary or secondary schools with a 
     rate of child poverty of at least 40 percent and may include 
     for purposes of subsection (b)(2) only--
       ``(i) modifications of school facilities necessary to meet 
     the standards applicable to public schools under the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.);
       ``(ii) modifications of school facilities necessary to meet 
     the standards applicable to public schools under section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794); and
       ``(iii) asbestos abatement or removal from school 
     facilities; and
       ``(C) notwithstanding the requirements of section 5342(b), 
     expenditures for services provided using funds made available 
     under subsection (b)(2) shall be considered equal for 
     purposes of such section if the per-pupil expenditures for 
     services described in subparagraph (B) for students enrolled 
     in private nonprofit elementary and secondary schools that 
     have child poverty rates of at least 40 percent are 
     consistent with the per-pupil expenditures under this section 
     for children enrolled in the public schools in the school 
     district of the local educational agency receiving funds 
     under this section.
       ``(2) Remaining funds.--If the expenditure for services 
     described in paragraph (1)(B) is less than the amount 
     calculated under paragraph (1)(C) because of insufficient 
     need for such services, the remainder shall be available to 
     the local educational agency for renovation and repair of 
     public school facilities.
       ``(3) Application.--If any provision of this section, or 
     the application thereof, to any person or circumstances is 
     judicially determined to be invalid, the provisions of the 
     remainder of the section and the application to other persons 
     or circumstances shall not be affected thereby.

[[Page 7712]]

       ``(j) Definitions.--For purposes of this section:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5120(1).
       ``(2) Poor children and child poverty.--The terms `poor 
     children' and `child poverty' refer to children 5 to 17 years 
     of age, inclusive, who are from families with incomes below 
     the poverty line (as defined by the Office of Management and 
     Budget and revised annually in accordance with section 673(2) 
     of the Community Services Block Grant (42 U.S.C. 9902(2)) 
     applicable to a family of the size involved for the most 
     recent fiscal year for which data satisfactory to the 
     Secretary are available.
       ``(3) Rural local educational agency.--The term `rural 
     local educational agency' means a local educational agency 
     that the State determines is located in a rural area using 
     objective data and a commonly employed definition of the term 
     `rural'.
       ``(4) State.--The term `State' means each of the 50 states, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.
       ``(k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $1,600,000,000 
     for fiscal year 2002, and such sums as may be necessary for 
     each of fiscal years 2003 through 2006.''.
                                  ____

  SA 526. Mr. HARKIN (for himself, Mr. Levin, and Mr. Johnson) 
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. __. COUNSELING IMPROVEMENT.

       (a) Findings.--Congress finds that--
       (1) elementary and secondary school children are being 
     subjected to unprecedented social stresses, including 
     fragmentation of the family, drug and alcohol abuse, 
     violence, child abuse, and poverty;
       (2) an increasing number of elementary and secondary school 
     children are exhibiting symptoms of distress, such as 
     substance abuse, emotional disorders, violent outbursts, 
     disruptive behavior, juvenile delinquency, and suicide;
       (3) between 1984 and 1994, the homicide rate for 
     adolescents doubled, while the rate of nonfatal violent 
     crimes committed by adolescents increased by almost 20 
     percent;
       (4) according to the National Institute of Mental Health, 
     up to one in five children and youth have psychological 
     problems severe enough to require some form of professional 
     help, yet only 20 percent of youth with mental disorders or 
     their families receive help;
       (5) the Institute of Medicine has identified psychological 
     counseling as the most serious school health need for the 
     normal development of our Nation's children and youth;
       (6) school counselors, school psychologists, and school 
     social workers can contribute to the personal growth, 
     educational development, and emotional well-being of 
     elementary and secondary school children by providing 
     professional counseling, intervention, and referral services;
       (7) the implementation of well designed school counseling 
     programs has been shown to increase students' academic 
     success;
       (8) the national average student-to-counselor ratio in 
     elementary and secondary schools is 531 to 1, and the average 
     student-to-psychologist ratio is 2300 to 1;
       (9) it is recommended that to effectively address students' 
     mental health and development needs, schools have 1 full-time 
     counselor for every 250 students, 1 psychologist for every 
     1,000 students, and 1 school social worker for every 800 
     students;
       (10) the population of elementary and secondary school 
     students in the United States is expected to increase 
     dramatically during the 5 to 10 years beginning with 1999;
       (11) the Federal Government can help reduce the risk of 
     academic, social, and emotional problems among elementary and 
     secondary school children by stimulating the development of 
     model school counseling programs; and
       (12) the Federal Government can help reduce the risk of 
     future unemployment and assist the school-to-work transition 
     by stimulating the development of model school counseling 
     programs that include comprehensive career development.
       (b) Purpose.--It is the purpose of this section to enhance 
     the availability and quality of counseling services for 
     elementary and secondary school children by providing grants 
     to local educational agencies to enable such agencies to 
     establish or expand effective and innovative counseling 
     programs that can serve as models for the Nation.
       (c) School Counseling.--Title IV of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7101 et seq.), as 
     amended by this Act, is amended--
       (1) in section 4004 (20 U.S.C. 7104)--
       (A) in paragraph (3), by striking ``and'' at the end;
       (B) in paragraph (4), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(5) $100,000,000 for fiscal year 2002, and such sums as 
     may be necessary for each of the 4 succeeding fiscal years, 
     for grants under section 4126.''; and
       (2) by adding at the end of subpart 2 of part A the 
     following:

     ``SEC. 4126. ELEMENTARY SCHOOL AND SECONDARY SCHOOL 
                   COUNSELING DEMONSTRATION.

       ``(a) Counseling Demonstration.--
       ``(1) In general.--The Secretary may award grants under 
     this section to local educational agencies to enable the 
     local educational agencies to establish or expand elementary 
     school and secondary school counseling programs.
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give special consideration to applications 
     describing programs that--
       ``(A) demonstrate the greatest need for new or additional 
     counseling services among the children in the schools served 
     by the applicant;
       ``(B) propose the most promising and innovative approaches 
     for initiating or expanding school counseling; and
       ``(C) show the greatest potential for replication and 
     dissemination.
       ``(3) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall ensure an equitable 
     geographic distribution among the regions of the United 
     States and among urban, suburban, and rural areas.
       ``(4) Duration.--A grant under this section shall be 
     awarded for a period not to exceed three years.
       ``(5) Maximum grant.--A grant under this section shall not 
     exceed $400,000 for any fiscal year.
       ``(b) Applications.--
       ``(1) In general.--Each local educational agency desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       ``(2) Contents.--Each application for a grant under this 
     section shall--
       ``(A) describe the school population to be targeted by the 
     program, the particular personal, social, emotional, 
     educational, and career development needs of such population, 
     and the current school counseling resources available for 
     meeting such needs;
       ``(B) describe the activities, services, and training to be 
     provided by the program and the specific approaches to be 
     used to meet the needs described in subparagraph (A);
       ``(C) describe the methods to be used to evaluate the 
     outcomes and effectiveness of the program;
       ``(D) describe the collaborative efforts to be undertaken 
     with institutions of higher education, businesses, labor 
     organizations, community groups, social service agencies, and 
     other public or private entities to enhance the program and 
     promote school-linked services integration;
       ``(E) describe collaborative efforts with institutions of 
     higher education which specifically seek to enhance or 
     improve graduate programs specializing in the preparation of 
     school counselors, school psychologists, and school social 
     workers;
       ``(F) document that the applicant has the personnel 
     qualified to develop, implement, and administer the program;
       ``(G) describe how any diverse cultural populations, if 
     applicable, would be served through the program;
       ``(H) assure that the funds made available under this part 
     for any fiscal year will be used to supplement and, to the 
     extent practicable, increase the level of funds that would 
     otherwise be available from non-Federal sources for the 
     program described in the application, and in no case supplant 
     such funds from non-Federal sources; and
       ``(I) assure that the applicant will appoint an advisory 
     board composed of parents, school counselors, school 
     psychologists, school social workers, other pupil services 
     personnel, teachers, school administrators, and community 
     leaders to advise the local educational agency on the design 
     and implementation of the program.
       ``(c) Use of Funds.--
       ``(1) In general.--From amounts made available under 
     section 4004(5) to carry out this section, the Secretary 
     shall award grants to local education agencies to be used to 
     initiate or expand elementary or secondary school counseling 
     programs that comply with the requirements of paragraph (2).
       ``(2) Program requirements.--Each program assisted under 
     this section shall--
       ``(A) be comprehensive in addressing the personal, social, 
     emotional, and educational needs of all students;
       ``(B) use a developmental, preventive approach to 
     counseling;
       ``(C) increase the range, availability, quantity, and 
     quality of counseling services in the schools of the local 
     educational agency;
       ``(D) expand counseling services only through qualified 
     school counselors, school psychologists, and school social 
     workers;
       ``(E) use innovative approaches to increase children's 
     understanding of peer and family relationships, work and 
     self, decisionmaking, or academic and career planning, or to 
     improve social functioning;
       ``(F) provide counseling services that are well-balanced 
     among classroom group and

[[Page 7713]]

     small group counseling, individual counseling, and 
     consultation with parents, teachers, administrators, and 
     other pupil services personnel;
       ``(G) include inservice training for school counselors, 
     school social workers, school psychologists, other pupil 
     services personnel, teachers, and instructional staff;
       ``(H) involve parents of participating students in the 
     design, implementation, and evaluation of a counseling 
     program;
       ``(I) involve collaborative efforts with institutions of 
     higher education, businesses, labor organizations, community 
     groups, social service agencies, or other public or private 
     entities to enhance the program and promote school-linked 
     services integration; and
       ``(J) evaluate annually the effectiveness and outcomes of 
     the counseling services and activities assisted under this 
     section.
       ``(3) Report.--The Secretary shall issue a report 
     evaluating the programs assisted pursuant to each grant under 
     this subsection at the end of each grant period in accordance 
     with section 14701.
       ``(4) Dissemination.--The Secretary shall make the programs 
     assisted under this section available for dissemination, 
     either through the National Diffusion Network or other 
     appropriate means.
       ``(5) Limit on administration.--Not more than 5 percent of 
     the amounts made available under this section in any fiscal 
     year shall be used for administrative costs to carry out this 
     section.
       ``(d) Definitions.--For purposes of this section:
       ``(1) School counselor.--The term `school counselor' means 
     an individual who has documented competence in counseling 
     children and adolescents in a school setting and who--
       ``(A) possesses State licensure or certification granted by 
     an independent professional regulatory authority;
       ``(B) in the absence of such State licensure or 
     certification, possesses national certification in school 
     counseling or a specialty of counseling granted by an 
     independent professional organization; or
       ``(C) holds a minimum of a master's degree in school 
     counseling from a program accredited by the Council for 
     Accreditation of Counseling and Related Educational Programs 
     or the equivalent.
       ``(2) School psychologist.--The term `school psychologist' 
     means an individual who--
       ``(A) possesses a minimum of 60 graduate semester hours in 
     school psychology from an institution of higher education and 
     has completed 1,200 clock hours in a supervised school 
     psychology internship, of which 600 hours shall be in the 
     school setting;
       ``(B) possesses State licensure or certification in the 
     State in which the individual works; or
       ``(C) in the absence of such State licensure or 
     certification, possesses national certification by the 
     National School Psychology Certification Board.
       ``(3) School social worker.--The term `school social 
     worker' means an individual who--
       ``(A)(i) holds a master's degree in social work from a 
     program accredited by the Council on Social Work Education; 
     and
       ``(ii) is licensed or certified by the State in which 
     services are provided; or
       ``(B) in the absence of such licensure or certification, 
     possess a national certification or credential as a school 
     social work specialist that has been awarded by an 
     independent professional organization.
       ``(4) Supervisor.--The term `supervisor' means an 
     individual who has the equivalent number of years of 
     professional experience in such individual's respective 
     discipline as is required of teaching experience for the 
     supervisor or administrative credential in the State of such 
     individual.''.
                                  ____

  SA 527. Mr. KYL (for himself and Mr. McCain) 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 264, strike line 14 and insert the following:
     students.--
       ``(A) In general.--In providing a free public education to
       On page 264, strike lines 19 and 20 and insert the 
     following:
     youth's status as homeless, except as provided in section 
     723(a)(2)(B)(ii) and subparagraph (B).
       ``(B) Exception.--Notwithstanding subparagraph (A), 
     paragraphs (1)(H) and (3) of subsection (g), section 
     723(a)(2), and any other provision of this subtitle relating 
     to the placement of homeless children or youth in schools, a 
     State that has a separate school for homeless children that 
     was established not later than the fiscal year preceding the 
     date of enactment of the Better Education for Students and 
     Teachers Act shall remain eligible to receive funds under 
     this subtitle for programs carried out in such school.
                                  ____

  SA 528. Mr. DURBIN (for himself and Mr. Corzine) 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 266, after line 23, add the following:

                        ``PART H--SUMMER SCHOOL

     ``SEC. 1751. SUMMER SCHOOL.

       ``(a) Program Authorized.--The Secretary is authorized to 
     make allotments to State educational agencies to enable the 
     State educational agencies to award grants to local 
     educational agencies to support summer school programs for 
     students who have not achieved academic standards set by the 
     States.
       ``(b) State Allotments, Local Grants and Allocations.--
       ``(1) State allotments.--From funds appropriated under 
     subsection (g) and not reserved under subsection (e) for a 
     fiscal year, the Secretary shall make an allotment to each 
     State educational agency in a State in an amount that bears 
     the same relation to the funds as the amount the State 
     received under part A for the fiscal year bears to the amount 
     received by all States under such part for the fiscal year.
       ``(2) Local grants and allocations.--Each State educational 
     agency receiving an allotment under paragraph (1) for a 
     fiscal year shall use the allotted funds to award grants to 
     eligible local educational agencies.
       ``(c) Eligibility.--To be eligible to receive a grant under 
     this section a local educational agency shall--
       ``(1) adopt a plan for the use of the grant funds that 
     gives priority to providing services to students who do not 
     meet State academic standards applicable to students in grade 
     3 through grade 8;
       ``(2) conduct an assessment of the local educational 
     agency's needs for teachers who have the knowledge and skills 
     necessary to ensure that all students have the opportunity to 
     meet challenging academic standards;
       ``(3) adopt a plan that is approved by the State 
     educational agency to ensure, to the maximum extent possible, 
     that all teachers employed by the local educational agency 
     meet the State's teacher certification or licensure 
     requirements for the subjects in which the teachers teach;
       ``(4) adopt a plan that is approved by the State 
     educational agency to ensure that each student served by the 
     local educational agency meets academic standards, based on 
     guidelines established by the State educational agency, which 
     plan shall include a description of--
       ``(A) the procedures used to identify students not meeting 
     State academic standards;
       ``(B) the supplemental educational and related services 
     provided to students not meeting State academic standards; 
     and
       ``(C) the additional or alternative programs provided to 
     students who continue to fail to meet State academic 
     standards; and
       ``(5) establish procedures to evaluate the results of the 
     summer school programs funded under this section.
       ``(d) Priority.--In awarding grants under this section, the 
     State educational agency shall give priority to local 
     educational agencies--
       ``(1) serving schools identified for school improvement 
     under section 1116(c); and
       ``(2) that develop an individualized learning plan for each 
     student who fails to meet State academic standards detailing 
     what steps will be taken by the local educational agency to 
     bring that student within State standards.
       ``(e) Reservation for Innovative Programs.--The Secretary 
     shall reserve 5 percent of the amount appropriated under 
     subsection (g) for a fiscal year to award grants for 
     innovative summer school programs and to evaluate existing 
     summer school programs.
       ``(f) General Provisions.--
       ``(1) Supplement not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant 
     other Federal, State, local, and private funds available for 
     summer school programs.
       ``(2) Administrative expenses.--Each State educational 
     agency that receives grant funds under this section may use 
     not more than 5 percent of the grant funds for a fiscal year 
     for the administrative costs of carrying out this section.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section the 
     following amounts:
       ``(1) $200,000,000 for fiscal year 2002.
       ``(2) Such sums as may be necessary for each of the fiscal 
     years 2003 through 2008.''.
                                  ____

  SA 529. Mr. DURBIN (for himself and Mr. Corzine) 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 266, after line 23, insert the following:

[[Page 7714]]



     ``SEC. 1708. SUMMER SCHOOL.

       ``(a) Program Authorized.--The Secretary is authorized to 
     make allotments to State educational agencies to enable the 
     State educational agencies to award grants to local 
     educational agencies to support summer school programs for 
     students who have not achieved academic standards set by the 
     States.
       ``(b) State Allotments, Local Grants and Allocations.--
       ``(1) State allotments.--From funds appropriated under 
     subsection (g) and not reserved under subsection (e) for a 
     fiscal year, the Secretary shall make an allotment to each 
     State educational agency in a State in an amount that bears 
     the same relation to the funds as the amount the State 
     received under part A for the fiscal year bears to the amount 
     received by all States under such part for the fiscal year.
       ``(2) Local grants and allocations.--Each State educational 
     agency receiving an allotment under paragraph (1) for a 
     fiscal year shall use the allotted funds to award grants to 
     eligible local educational agencies.
       ``(c) Eligibility.--To be eligible to receive a grant under 
     this section a local educational agency shall--
       ``(1) adopt a plan for the use of the grant funds that 
     gives priority to providing services to students who do not 
     meet State academic standards applicable to students in grade 
     3 through grade 8;
       ``(2) conduct an assessment of the local educational 
     agency's needs for teachers who have the knowledge and skills 
     necessary to ensure that all students have the opportunity to 
     meet challenging academic standards;
       ``(3) adopt a plan that is approved by the State 
     educational agency to ensure, to the maximum extent possible, 
     that all teachers employed by the local educational agency 
     meet the State's teacher certification or licensure 
     requirements for the subjects in which the teachers teach;
       ``(4) adopt a plan that is approved by the State 
     educational agency to ensure that each student served by the 
     local educational agency meets academic standards, based on 
     guidelines established by the State educational agency, which 
     plan shall include a description of--
       ``(A) the procedures used to identify students not meeting 
     State academic standards;
       ``(B) the supplemental educational and related services 
     provided to students not meeting State academic standards; 
     and
       ``(C) the additional or alternative programs provided to 
     students who continue to fail to meet State academic 
     standards; and
       ``(5) establish procedures to evaluate the results of the 
     summer school programs funded under this section.
       ``(d) Priority.--In awarding grants under this section, the 
     State educational agency shall give priority to local 
     educational agencies--
       ``(1) serving schools identified for school improvement 
     under section 1116(c); and
       ``(2) that develop an individualized learning plan for each 
     student who fails to meet State academic standards detailing 
     what steps will be taken by the local educational agency to 
     bring that student within State standards.
       ``(e) Reservation for Innovative Programs.--The Secretary 
     shall reserve 5 percent of the amount appropriated under 
     subsection (g) for a fiscal year to award grants for 
     innovative summer school programs and to evaluate existing 
     summer school programs.
       ``(f) General Provisions.--
       ``(1) Supplement not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant 
     other Federal, State, local, and private funds available for 
     summer school programs.
       ``(2) Administrative expenses.--Each State educational 
     agency that receives grant funds under this section may use 
     not more than 5 percent of the grant funds for a fiscal year 
     for the administrative costs of carrying out this section.
       ``(3) Applicability.--Notwithstanding any other provision 
     of this part, this part (other than this section) shall not 
     apply to this section.
       ``(g) 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.''.
                                  ____

  SA 530. Mr. DURBIN (for himself and Mr. Corzine) 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 347, strike lines 8 through 10 and insert the 
     following:
       ``(d) Priority.--
       ``(1) High need local educational agencies.--In awarding 
     grants under this subpart, the Secretary shall give first 
     priority to an eligible partnership that includes a high need 
     local educational agency.
       ``(2) Businesses.--In awarding the grants among eligible 
     partnerships that do not include such agencies, the Secretary 
     shall give priority to an eligible partnership that--
       ``(A) includes a business (such as a corporation); and
       ``(B) demonstrates that the business will--
       ``(i) provide a non-Federal share of the cost of the 
     activities carried out under section 2213; and
       ``(ii) provide a greater non-Federal share of the cost of 
     the activities than the business provided prior to the date 
     the partnership received that priority.
       ``(3) Non-federal share.--The non-Federal share provided by 
     a business under paragraph (2) may be provided in cash or in 
     kind, fairly evaluated, including plant, equipment, or 
     services.
       On page 350, after line 4 add the following:
       (9) Designing and implementing year-round small inquiry 
     groups for teachers for the purpose of improving math and 
     science teachers' subject knowledge and teaching skills.
       On page 362, line 14, strike ``$500,000,000'' and insert 
     ``$900,000,000''.
                                  ____

  SA 531. Mr. DURBIN (for himself and Mr. Corzine) 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 347, strike lines 8 through 10 and insert the 
     following:
       ``(d) Priority.--
       ``(1) High need local educational agencies.--In awarding 
     grants under this subpart, the Secretary shall give first 
     priority to an eligible partnership that includes a high need 
     local educational agency.
       ``(2) Businesses.--In awarding the grants among eligible 
     partnerships that do not include such agencies, the Secretary 
     shall give priority to an eligible partnership that--
       ``(A) includes a business (such as a corporation); and
       ``(B) demonstrates that the business will--
       ``(i) provide a non-Federal share of the cost of the 
     activities carried out under section 2213; and
       ``(ii) provide a greater non-Federal share of the cost of 
     the activities than the business provided prior to the date 
     the partnership received that priority.
       ``(3) Non-federal share.--The non-Federal share provided by 
     a business under paragraph (2) may be provided in cash or in 
     kind, fairly evaluated, including plant, equipment, or 
     services.
                                  ____

  SA 532. Mr. DURBIN (for himself, Mr. Schumer, and Mr. Corzine) 
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 362, line 14, strike ``$500,000,000'' and insert 
     ``$900,000,000''.
                                  ____

  SA 533. Mr. NELSON of Nebraska 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 586, between lines 18 and 19, insert the following:

     SEC. 405. MENTORING PROGRAMS.

       Title IV of Elementary and Secondary Education Act of 1965 
     is further amended by adding at the end the following:

                      ``PART E--MENTORING PROGRAMS

     ``SEC. 4501. DEFINITIONS.

       ``In this part:
       ``(1) Child with greatest need.--The term `child with 
     greatest need' means a child at risk of educational failure, 
     dropping out of school, or involvement in criminal or 
     delinquent activities, or that has lack of strong positive 
     adult role models.
       ``(2) Mentor.--The term `mentor' means an individual who 
     works with a child to provide a positive role model for the 
     child, to establish a supportive relationship with the child, 
     and to provide the child with academic assistance and 
     exposure to new experiences and examples of opportunity that 
     enhance the ability of the child to become a responsible 
     adult.
       ``(3) State.--The term `State' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, American Samoa, and the 
     Commonwealth of the Northern Mariana Islands.

     ``SEC. 4502. PURPOSES.

       ``The purposes of this part are to make assistance 
     available to promote mentoring programs for children with 
     greatest need--
       ``(1) to assist such children in receiving support and 
     guidance from a caring adult;
       ``(2) to improve the academic performance of such children;
       ``(3) to improve interpersonal relationships between such 
     children and their peers, teachers, other adults, and family 
     members;
       ``(4) to reduce the dropout rate of such children; and

[[Page 7715]]

       ``(5) to reduce juvenile delinquency and involvement in 
     gangs by such children.

     ``SEC. 4503. GRANT PROGRAM.

       ``(a) In General.--In accordance with this section, the 
     Secretary may make grants to eligible entities to assist such 
     entities in establishing and supporting mentoring programs 
     and activities that--
       ``(1) are designed to link children with greatest need 
     (particularly such children living in rural areas, high crime 
     areas, or troubled home environments, or such children 
     experiencing educational failure) with responsible adults, 
     who--
       ``(A) have received training and support in mentoring;
       ``(B) have been screened using appropriate reference 
     checks, child and domestic abuse record checks, and criminal 
     background checks; and
       ``(C) are interested in working with youth; and
       ``(2) are intended to achieve 1 or more of the following 
     goals:
       ``(A) Provide general guidance to children with greatest 
     need.
       ``(B) Promote personal and social responsibility among 
     children with greatest need.
       ``(C) Increase participation by children with greatest need 
     in, and enhance their ability to benefit from, elementary and 
     secondary education.
       ``(D) Discourage illegal use of drugs and alcohol, 
     violence, use of dangerous weapons, promiscuous behavior, and 
     other criminal, harmful, or potentially harmful activity by 
     children with greatest need.
       ``(E) Encourage children with greatest need to participate 
     in community service and community activities.
       ``(F) Encourage children with greatest need to set goals 
     for themselves or to plan for their futures, including 
     encouraging such children to make graduation from secondary 
     school a goal and to make plans for postsecondary education 
     or training.
       ``(G) Discourage involvement of children with greatest need 
     in gangs.
       ``(b) Eligible Entities.--Each of the following is an 
     entity eligible to receive a grant under subsection (a):
       ``(1) A local educational agency.
       ``(2) A nonprofit, community-based organization.
       ``(3) A partnership between an agency referred to in 
     paragraph (1) and an organization referred to in paragraph 
     (2).
       ``(c) Use of Funds.--
       ``(1) In general.--Each entity receiving a grant under this 
     section shall use the grant funds for activities that 
     establish or implement a mentoring program, including--
       ``(A) hiring of mentoring coordinators and support staff;
       ``(B) providing for the professional development of 
     mentoring coordinators and support staff;
       ``(C) recruitment, screening, and training of adult 
     mentors;
       ``(D) reimbursement of schools, if appropriate, for the use 
     of school materials or supplies in carrying out the program;
       ``(E) dissemination of outreach materials;
       ``(F) evaluation of the program using scientifically based 
     methods; and
       ``(G) such other activities as the Secretary may reasonably 
     prescribe by rule.
       ``(2) Prohibited uses.--Notwithstanding paragraph (1), an 
     entity receiving a grant under this section may not use the 
     grant funds--
       ``(A) to directly compensate mentors;
       ``(B) to obtain educational or other materials or equipment 
     that would otherwise be used in the ordinary course of the 
     entity's operations;
       ``(C) to support litigation of any kind; or
       ``(D) for any other purpose reasonably prohibited by the 
     Secretary by rule.
       ``(d) Term of Grant.--Each grant made under this section 
     shall be available for expenditure for a period of 3 years.
       ``(e) Application.--Each eligible entity seeking a grant 
     under this section shall submit to the Secretary an 
     application that includes--
       ``(1) a description of the mentoring plan the applicant 
     proposes to carry out with such grant;
       ``(2) information on the children expected to be served by 
     the mentoring program for which such grant is sought;
       ``(3) a description of the mechanism that applicant will 
     use to match children with mentors based on the needs of the 
     children;
       ``(4) an assurance that no mentor will be assigned to 
     mentor so many children that the assignment would undermine 
     either the mentor's ability to be an effective mentor or the 
     mentor's ability to establish a close relationship (a one-on-
     one relationship, where practicable) with each mentored 
     child;
       ``(5) an assurance that mentoring programs will provide 
     children with a variety of experiences and support, 
     including--
       ``(A) emotional support;
       ``(B) academic assistance; and
       ``(C) exposure to experiences that children might not 
     otherwise encounter on their own;
       ``(6) an assurance that mentoring programs will be 
     monitored to ensure that each child assigned a mentor 
     benefits from that assignment and that there will be a 
     provision for the assignment of a new mentor if the 
     relationship between the original mentor is not beneficial to 
     the child;
       ``(7) information on the method by which mentors and 
     children will be recruited to the mentor program;
       ``(8) information on the method by which prospective 
     mentors will be screened;
       ``(9) information on the training that will be provided to 
     mentors; and
       ``(10) information on the system that the applicant will 
     use to manage and monitor information relating to the 
     program's reference checks, child and domestic abuse record 
     checks, and criminal background checks and to its procedure 
     for matching children with mentors.
       ``(f) Selection.--
       ``(1) Competitive basis.--In accordance with this 
     subsection, the Secretary shall select grant recipients from 
     among qualified applicants on a competitive basis.
       ``(2) Priority.--In selecting grant recipients under 
     paragraph (1), the Secretary shall give priority to each 
     applicant that--
       ``(A) serves children with greatest need living in rural 
     areas, high crime areas, or troubled home environments, or 
     who attend schools with violence problems;
       ``(B) provides background screening of mentors, training of 
     mentors, and technical assistance in carrying out mentoring 
     programs;
       ``(C) proposes a mentoring program under which each mentor 
     will be assigned to not more children than the mentor can 
     serve effectively; or
       ``(D) proposes a school-based mentoring program.
       ``(3) Other considerations.--In selecting grant recipients 
     under paragraph (1), the Secretary shall also consider--
       ``(A) the degree to which the location of the programs 
     proposed by each applicant contributes to a fair distribution 
     of programs with respect to urban and rural locations;
       ``(B) the quality of the mentoring programs proposed by 
     each applicant, including--
       ``(i) the resources, if any, the applicant will dedicate to 
     providing children with opportunities for job training or 
     postsecondary education;
       ``(ii) the degree to which parents, teachers, community-
     based organizations, and the local community have 
     participated, or will participate, in the design and 
     implementation of the applicant's mentoring program;
       ``(iii) the degree to which the applicant can ensure that 
     mentors will develop longstanding relationships with the 
     children they mentor;
       ``(iv) the degree to which the applicant will serve 
     children with greatest need in the 4th, 5th, 6th, 7th, and 
     8th grades; and
       ``(v) the degree to which the program will continue to 
     serve children from the 4th grade through graduation from 
     secondary school; and
       ``(C) the capability of each applicant to effectively 
     implement its mentoring program.
       ``(4) Grant to each state.--Notwithstanding any other 
     provision of this subsection, in selecting grant recipients 
     under paragraph (1), the Secretary shall select not less than 
     1 grant recipient from each State for which there is a 
     qualified applicant.
       ``(g) Model Screening Guidelines.--
       ``(1) In general.--Based on model screening guidelines 
     developed by the Office of Juvenile Programs of the 
     Department of Justice, the Secretary shall develop and 
     distribute to program participants specific model guidelines 
     for the screening of mentors who seek to participate in 
     programs to be assisted under this part.
       ``(2) Background checks.--The guidelines developed under 
     this subsection shall include, at a minimum, a requirement 
     that potential mentors be subject to reference checks, child 
     and domestic abuse record checks, and criminal background 
     checks.

     ``SEC. 4504. STUDY BY GENERAL ACCOUNTING OFFICE.

       ``(a) In General.--The Comptroller General of the United 
     States shall conduct a study to identify successful school-
     based mentoring programs, and the elements, policies, or 
     procedures of such programs that can be replicated.
       ``(b) Report.--Not later than 3 years after the date of the 
     enactment of this part, the Comptroller General shall submit 
     a report to the Secretary and Congress containing the results 
     of the study conducted under this section.
       ``(c) Use of Information.--The Secretary shall use 
     information contained in the report referred to in subsection 
     (b)--
       ``(1) to improve the quality of existing mentoring programs 
     assisted under this part and other mentoring programs 
     assisted under this Act; and
       ``(2) to develop models for new programs to be assisted or 
     carried out under this Act.

     ``SEC. 4505. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     section 4503 $50,000,000 for fiscal year 2002 and such sums 
     as may be necessary for each of fiscal years 2003 through 
     2006.''.
                                  ____

  SA 534. Mrs. HUTCHISON (for herself, Mr. Wellstone, Mr. DeWine, Mrs. 
Clinton, Mr. Schumer, Mr. Biden, Mr. Crapo, and Mr. Kennedy) submitted 
an amendment intended to be proposed by him to the bill S. 1, to extend 
programs

[[Page 7716]]

and activities under the Elementary and Secondary Education Act of 
1965; which was ordered to lie on the table; as follows:

       On page 309, lines 17 and 18, strike ``subsection (f)'' and 
     insert ``subsections (e) and (f)''.
       On page 339, line 6, strike ``(e)'' and insert ``(d)''.
       Beginning on page 340, strike line 9 and all that follows 
     through page 341, line 8.
       On page 341, line 9, strike ``(e)'' and insert ``(d)''.
       On page 341, between lines 21 and 22, insert the following:
       ``(e) Careers to Classrooms.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to establish a program to recruit and retain highly 
     qualified mid-career professionals, recent graduates from an 
     institution of higher education, and certain 
     paraprofessionals, as teachers in high need schools, 
     including recruiting teachers through alternative routes to 
     certification; and




       ``(B) to encourage the development and expansion of 
     alternative routes to certification under State-approved 
     programs that enable individuals to be eligible for teacher 
     certification within a reduced period of time, relying on the 
     experience, expertise, and academic qualifications of an 
     individual, or other factors in lieu of traditional course 
     work in the field of education.
       ``(2) Definitions.--In this subsection:
       ``(A) Eligible participant.--The term `eligible 
     participant' means--
       ``(i) an individual with substantial, demonstrable career 
     experience and competence in a field for which there is a 
     significant shortage of qualified teachers, such as 
     mathematics, natural science, technology, engineering, and 
     special education;
       ``(ii) an individual who is a graduate of an institution of 
     higher education who--

       ``(I) has graduated not later than 3 years before applying 
     to an agency or consortium to teach under this subsection;
       ``(II) in the case of an individual wishing to teach in a 
     secondary school, has completed an academic major (or courses 
     totaling an equivalent number of credit hours) in the 
     academic subject that the individual will teach;
       ``(III) has graduated in the top 50 percent of the 
     individual's undergraduate or graduate class;
       ``(IV) can demonstrate a high level of competence through a 
     high level of performance in the academic subject that the 
     individual will teach; and
       ``(V) meets any additional academic or other standards or 
     qualifications established by the State; or

       ``(iii) a paraprofessional who--

       ``(I) has been working as a paraprofessional in an 
     instructional role in an elementary school or secondary 
     school for at least 2 years;
       ``(II) can demonstrate that the paraprofessional is capable 
     of completing a bachelor's degree in not more than 2 years 
     and is in the top 50 percent of the individual's 
     undergraduate class;
       ``(III) will work toward completion of an academic major 
     (or courses totaling an equivalent number of credit hours) in 
     the academic subject that the paraprofessional will teach; 
     and
       ``(IV) can demonstrate a high level of competence through a 
     high level of performance in the academic subject that the 
     paraprofessional will teach.

       ``(B) High need local educational agency.--The term `high 
     need local educational agency' means a local educational 
     agency that serves--
       ``(i) a high need school district; and
       ``(ii) a high need school.
       ``(C) High need school.--The term `high need school' means 
     a school that--
       ``(i)(I) is located in an area in which the percentage of 
     students from families with incomes below the poverty line is 
     30 percent or more; or
       ``(II) is located in an area, other than a metropolitan 
     statistical area, that the State determines has a high 
     percentage of students from families with incomes below the 
     poverty line or that has experienced greater than normal 
     difficulty in recruiting or retaining teachers; and
       ``(ii)(I) is located in an area in which there is a high 
     percentage of secondary school teachers not teaching in the 
     content area in which teachers were trained to teach, is 
     within the top quartile of schools statewide, as ranked by 
     the number of unfilled, available teacher positions at the 
     schools, is located in an area in which there is a high 
     teacher turnover rate, or is located in an area in which 
     there is a high percentage of teachers who are not certified 
     or licensed.
       ``(D) High need school district.--The term `high need 
     school district' means a school district in which there is--
       ``(i)(I) a high need school; and
       ``(II) a high percentage of individuals from families with 
     incomes below the poverty line; and
       ``(ii)(I) a high percentage of secondary school teachers 
     not teaching in the content area in which the teachers were 
     trained to teach; or
       ``(II) a high teacher turnover rate.
       ``(E) Poverty line.--The term `poverty line' means the 
     income official 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.
       ``(3) Grant program.--
       ``(A) In general.--The Secretary shall establish a program 
     to make grants on a competitive basis to State educational 
     agencies, regional consortia of State educational agencies, 
     high need local educational agencies, and consortia of high 
     need local educational agencies, to develop State and local 
     teacher corps or other programs to establish, expand, or 
     enhance teacher recruitment and retention efforts.
       ``(B) Priority.--In making such a grant, the Secretary 
     shall give priority to an agency or consortium of agencies 
     that applies for the grant in collaboration with an 
     institution of higher education or a nonprofit organization 
     that has a proven record of effectively recruiting and 
     retaining highly qualified teachers in high need school 
     districts.
       ``(4) Application.--
       ``(A) In general.--To be eligible to receive a grant under 
     this subsection, an agency or consortium described in 
     paragraph (3) shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       ``(B) Contents.--The application shall--
       ``(i) describe how the agency or consortium will use funds 
     received under this subsection to develop a teacher corps or 
     other program to recruit and retain highly qualified mid-
     career professionals, recent graduates from an institution of 
     higher education, and paraprofessionals as teachers in high 
     need schools;
       ``(ii) explain how the agency or consortium will determine 
     that teacher candidates seeking to participate in a program 
     under this section are eligible participants;
       ``(iii) explain how the program will meet the relevant 
     State laws (including regulations) related to teacher 
     certification and licensing;
       ``(iv) explain how the agency or consortium will ensure 
     that no paraprofessional will be hired through the program as 
     a teacher until the paraprofessional has obtained a 
     bachelor's degree and meets the requirements of subclauses 
     (II) through (V) of paragraph (2)(A)(ii);
       ``(v) include a determination of the high need academic 
     subjects in the jurisdiction served by the agency or 
     consortium and how the agency or consortium will recruit 
     teachers for those subjects;
       ``(vi) describe how the grant will increase the number of 
     highly qualified teachers in high need schools in high need 
     school districts that are urban or rural school districts;
       ``(vii) describe how the agency or consortium described in 
     paragraph (3) has met the requirements of subparagraph (C);
       ``(viii) describe how the agency or consortium will 
     coordinate the activities carried out with the funds with 
     activities carried out with other Federal, State, and local 
     funds for teacher recruitment and retention;
       ``(ix) describe the plan of the agency or consortium 
     described in paragraph (3) to recruit and retain highly 
     qualified teachers in the high need academic subjects and 
     high need schools and facilitate the certification or 
     licensing of such teachers; and
       ``(x) describe how the agency or consortium described in 
     paragraph (3) will meet the requirements of paragraph (7)(A).
       ``(C) Collaboration.--In developing the application, the 
     agency or consortium shall consult with and seek input from--
       ``(i) in the case of a partnership established by a State 
     educational agency or consortium of such agencies, 
     representatives of local educational agencies, including 
     teachers, principals, superintendents, and school board 
     members (including representatives of their professional 
     organizations if appropriate);
       ``(ii) in the case of a partnership established by a local 
     educational agency or a consortium of such agencies, 
     representatives of a State educational agency;
       ``(iii) elementary school and secondary school teachers, 
     including representatives of their professional 
     organizations;
       ``(iv) institutions of higher education;
       ``(v) parents; and
       ``(vi) other interested individuals and organizations, such 
     as businesses, experts in curriculum development, and 
     nonprofit organizations with a proven record of effectively 
     recruiting and retaining highly qualified teachers in high 
     need school districts.
       ``(5) Duration of grants.--The Secretary may make grants 
     under this subsection for periods of 5 years. At the end of 
     the 5-year period for such a grant, the grant recipient may 
     apply for an additional grant under this subsection.
       ``(6) Equitable distribution.--The Secretary shall ensure 
     an equitable geographic distribution of grants among the 
     regions of the United States.
       ``(7) Requirements.--
       ``(A) Targeting.--An agency or consortium that receives a 
     grant under this subsection to carry out a program shall 
     ensure that participants in the program recruited with funds 
     made available under this subsection are placed in high need 
     schools, within high

[[Page 7717]]

     need school districts. In placing the participants in the 
     schools, the agency or consortium shall give priority to the 
     schools that are located in areas with the highest percentage 
     of students from families with incomes below the poverty 
     line.
       ``(B) Supplement not supplant.--Funds made available under 
     this subsection shall be used to supplement and not supplant 
     State and local public funds expended for teacher recruitment 
     and retention programs, including programs to recruit the 
     teachers through alternative routes to certification.
       ``(C) Partnerships established by local educational 
     agencies.--In the case of a partnership established by a 
     local educational agency or a consortium of such agencies to 
     carry out a program under this section the local educational 
     agency or consortium shall not be eligible to receive funds 
     through a State program under this section.
       ``(8) Uses of funds.--
       ``(A) In general.--An agency or consortium that receives a 
     grant under this subsection shall use the funds made 
     available through the grant to develop a teacher corps or 
     other program in order to establish, expand, or enhance a 
     teacher recruitment and retention program for highly 
     qualified mid-career professionals, graduates of institutions 
     of higher education, and paraprofessionals, who are eligible 
     participants, including activities that provide alternative 
     routes to teacher certification.
       ``(B) Specific activities.--The agency or consortium shall 
     use the funds to carry out a teacher corps or other program 
     that includes 2 or more activities that consist of--
       ``(i)(I) providing loans, scholarships, stipends, bonuses, 
     and other financial incentives, that are linked to 
     participation in activities that have proven effective in 
     retaining teachers in higher need school districts, to all 
     eligible participants (in an amount of not more than the 
     lesser of $5,000 per eligible participant) who--

       ``(aa) are enrolled in a program under this section located 
     in a State; and
       ``(bb) agree to seek certification through alternative 
     routes to certification in that State; and

       ``(II) giving a preference, in awarding the loans, 
     scholarships, stipends, bonuses, and other financial 
     incentives, to individuals who the State determines have 
     financial need for such loans, scholarships, stipends, 
     bonuses, and other financial incentives;
       ``(ii) making payments (in an amount of not more than 
     $5,000 per eligible participant) to schools to pay for costs 
     associated with accepting teachers recruited under this 
     subsection from among eligible participants or to provide 
     financial incentives to prospective teachers who are eligible 
     participants;
       ``(iii) providing mentoring;
       ``(iv) providing internships;
       ``(v) carrying out co-teaching arrangements;
       ``(vi) providing high quality, sustained in-service 
     professional development opportunities;
       ``(vii) offering opportunities for teacher candidates to 
     participate in preservice, high quality course work;
       ``(viii) collaboration with institutions of higher 
     education in developing and implementing programs to 
     facilitate teacher recruitment (including teacher 
     credentialing) and teacher retention programs;
       ``(ix) providing accelerated paraprofessional-to-teacher 
     programs that provide a paraprofessional with sufficient 
     training and development to enable the paraprofessional to 
     complete a bachelor's degree and fulfill other State 
     certification or licensing requirements and that provide full 
     pay and leave from paraprofessional duties for the period 
     necessary to complete the degree and become certified or 
     licensed; and
       ``(x) carrying out other programs, projects, and activities 
     that--

       ``(I) are designed and have proven to be effective in 
     recruiting and retaining teachers; and
       ``(II) the Secretary determines to be appropriate.

       ``(C) Development of long-term recruitment and retention 
     strategies.--In addition to the activities authorized under 
     subparagraph (B), an agency or consortium that receives a 
     grant under this subsection may use the funds made available 
     through the grant for--
       ``(i) the establishment and operation, or expansion and 
     improvement, of a statewide or regionwide clearinghouse for 
     the recruitment and placement of preschool, elementary 
     school, secondary school, and vocational and technical school 
     teachers (which shall not be subject to the targeting 
     requirements under paragraph (7)(A));
       ``(ii) the establishment of administrative structures 
     necessary for the development and implementation of programs 
     to provide alternative routes to certification;
       ``(iii) the development of reciprocity agreements between 
     or among States for the certification or licensure of 
     teachers; and
       ``(iv) the implementation of other activities designed to 
     ensure the use of long-term teacher recruitment and retention 
     strategies.
       ``(D) Effective activities.--The agency or consortium shall 
     use the funds only for activities that have proven effective 
     in both recruiting and retaining teachers.
       ``(9) Repayment.--The recipient of a loan under this 
     subsection shall immediately repay amounts received under 
     such loan, and the recipient of a scholarship, stipend, 
     bonus, or other financial incentive under this subsection 
     shall repay amounts received under such scholarship, stipend, 
     bonus, or other financial incentive, to the agency or 
     consortium from which the loan, scholarship, stipend, bonus, 
     or other financial incentive was received if--
       ``(A) the recipient involved fails to complete the 
     applicable program providing alternative routes to 
     certification;
       ``(B) the recipient rejects a bona fide offer of employment 
     at a high need school served by that agency or consortium 
     during the 1-year period beginning on the date on which the 
     recipient completes such a program; or
       ``(C) the recipient fails to teach for at least 2 years in 
     a high need school served by that agency or consortium during 
     the 5-year period beginning on the date on which the 
     individual completes such a program.
       ``(10) Administrative funds.--No agency or consortium that 
     receives a grant under this subsection shall use more than 5 
     percent of the funds made available through the grant for the 
     administration of a program under this section carried out 
     under the grant.
       ``(11) Evaluation and accountability for recruiting and 
     retaining teachers.--
       ``(A) Evaluation.--Each agency or consortium that receives 
     a grant under this subsection shall conduct--
       ``(i) an interim evaluation of the program funded under the 
     grant at the end of the third year of the grant period; and
       ``(ii) a final evaluation of the program at the end of the 
     fifth year of the grant period.
       ``(B) Contents.--In conducting the evaluation, the agency 
     or consortium shall describe the extent to which local 
     educational agencies that received funds through the grant 
     have met those goals relating to teacher recruitment and 
     retention described in the application.
       ``(C) Reports.--The agency or consortium shall prepare and 
     submit to the Secretary and to Congress interim and final 
     reports containing the results of the interim and final 
     evaluations, respectively.
       ``(D) Revocation.--If the Secretary determines that the 
     recipient of a grant under this subsection has not made 
     substantial progress in meeting the goals and objectives of 
     the grant by the end of the third year of the grant period, 
     the Secretary--
       ``(i) shall revoke the payment made for the fourth year of 
     the grant period; and
       ``(ii) shall not make a payment for the fifth year of the 
     grant period.
       ``(12) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subsection 
     $200,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years.
       On page 383, after line 21, add the following:

     SEC. __. MODIFICATION OF TROOPS-TO-TEACHERS PROGRAM.

       (a) Purpose.--The purpose of this section is to authorize a 
     mechanism for the funding and administration of the Troops-
     to-Teachers Program established by the Troops-to-Teachers 
     Program Act of 1999 (title XVII of the National Defense 
     Authorization Act for Fiscal Year 2000).
       (b) Definitions.--Section 1701 of the Troops-to-Teachers 
     Program Act of 1999 (20 U.S.C. 9301) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``means'' and all that 
     follows and inserting ``means the Secretary of Education'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraphs (3) and (4), as paragraphs 
     (2) and (3), respectively; and
       (D) in paragraph (2) (as so redesignated), by inserting 
     before the period the following: ``and active and former 
     members of the Coast Guard''; and
       (2) by adding at the end the following:
       ``(c) Administration.--To the extent that funds are made 
     available under this title, the administering Secretary shall 
     use such funds to enter into a memorandum of agreement with 
     the Defense Activity for Non-Traditional Education Support 
     (referred to in this subsection as `DANTES'), of the 
     Department of Defense. DANTES shall use amounts made 
     available under the memorandum of agreement to administer the 
     Troops-to-Teachers Program, including the selection of 
     participants in the Program in accordance with section 1704. 
     The administering 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.''.
       (c) Authorization.--Section 1702 of the Troops-to-Teachers 
     Program Act of 1999 (20 U.S.C. 9302) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``after their discharge or release, or 
     retirement,'' and insert ``who retire''; and
       (ii) by striking ``and'' at the end;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1), the following:

[[Page 7718]]

       ``(2) to assist members of the active reserve forces to 
     obtain certification or licensure as elementary or secondary 
     school teachers or as vocational or technical teachers; 
     and''; and
       (2) by adding at the end the following:
       ``(e) Funding.--The administering Secretary shall provide 
     appropriate funds to the Secretary of Defense to enable the 
     Secretary of Defense to manage and operate the Troops-to-
     Teachers Program.''.
       (d) Eligible Members.--Section 1703 of the Troops-to-
     Teachers Program Act of 1999 (20 U.S.C. 9303) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Eligible Members.--Subject to subsection (c), any 
     member of the Armed Forces who, during the period beginning 
     on October 1, 2000, and ending on September 30, 2006, retired 
     from the active duty or who is a member of the active reserve 
     and who satisfies such other criteria for the selection as 
     the administering Secretary may require, shall be eligible 
     for selection to participate in the Troops-to-Teachers 
     Program.''; and
       (2) in subsection (d)--
       (A) by striking ``(1) The administering Secretary'' and 
     inserting ``Secretary of Defense''; and
       (B) by striking paragraph (2); and
       (3) by adding at the end the following:
       ``(e) Placement Assistance and Referral Services.--The 
     administering Secretary may, with the agreement of the 
     Secretary of Defense, provide placement assistance and 
     referral services to members of the Armed Forces who 
     separated from active duty under honorable circumstances. 
     Such members shall meet education qualification requirements 
     under subsection (b). Such members shall not be eligible for 
     financial assistance under subsections (a) and (b) of section 
     1705.''.
       (e) Selection of Participants.--Section 1704 of the Troops-
     to-Teachers Program Act of 1999 (20 U.S.C. 9304) is amended--
       (1) in subsection (a), by striking ``on a timely basis'';
       (2) by striking subsection (b);
       (3) in subsection (e)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and receives financial assistance'' after ``Program''; and
       (B) in paragraph (2), by striking ``four school'' and all 
     that follows and inserting ``three school years with a local 
     educational agency, except that the Secretary of Defense may 
     waive the 3 year commitment if the Secretary determines such 
     waiver to be appropriate.'';
       (4) in subsection (f), by striking ``subsection (e)'' and 
     inserting ``subsection (d)''; and
       (5) by redesignating subsections (c) through (f) as 
     subsection (b) through (e), respectively.
       (f) Stipends and Bonuses.--Section 1705 of the Troops-to-
     Teachers Program Act of 1999 (20 U.S.C. 9305) is amended--
       (1) in subsection (a)--
       (A) by striking ``(1) Subject'' and inserting ``Subject''; 
     and
       (B) by striking paragraph (2);
       (2) in subsection (b)--
       (A) by striking paragraph (2);
       (B) in paragraph (3)--
       (i) by striking subparagraphs (A) through (D) and inserting 
     the following:
       ``(A) The school is in a low-income school district as 
     defined by the administering Secretary.''; and
       (ii) by redesignating subparagraphs (E) and (F), as 
     subparagraphs (B) and (C), respectively; and
       (C) by redesignating paragraph (3) as paragraph (2); and
       (3) in subsection (d)--
       (A) by striking ``four years'' each place that such appears 
     and inserting ``three years''; and
       (B) in paragraph (2), by striking ``1704(e)'' and inserting 
     ``1704(d)''.
       (g) Participation by States.--Section 1706(b) of the 
     Troops-to-Teachers Program Act of 1999 (20 U.S.C. 9306(b)) is 
     amended--
       (1) by striking ``(1) Subject to paragraph (2), the'' and 
     inserting ``The''; and
       (2) by striking paragraph (2).
       (h) Support of Teacher Certification Programs.--The Troops-
     to-Teachers Program Act of 1999 (20 U.S.C. 9301 et seq.) is 
     amended by striking 1707 through 1709 and inserting the 
     following:

     ``SEC. 1707. SUPPORT OF INNOVATIVE, PRE-RETIREMENT TEACHER 
                   CERTIFICATION PROGRAMS.

       ``(a) In General.--The administering Secretary may enter 
     into a memorandum of agreements with institutions of higher 
     education to develop, implement, and demonstrate teacher 
     certification programs for pre-retirement military personnel 
     for the purpose of preparing such personnel to transition to 
     teaching as a second career. Such program shall--
       ``(1) provide for the recognition of military experience 
     and training as related to licensure or certification 
     requirements;
       ``(2) provide courses of instruction that may be provided 
     at military installations;
       ``(3) incorporate alternative approaches to achieve teacher 
     certification such as innovative methods to gaining field 
     based teaching experiences, and assessments of background and 
     experience as related to skills, knowledge and abilities 
     required of elementary or secondary school teachers; and
       ``(4) provide for the delivery of courses through distance 
     education methods.
       ``(b) Applications Procedures.--
       ``(1) In general.--An institution of higher education, or a 
     consortia of such institutions, that desires to enter into an 
     memorandum under subsection (a) shall prepare and submit to 
     the administering Secretary a proposal, at such time, in such 
     manner, and containing such information as the administering 
     Secretary may require, including an assurance that the 
     institution is operating one or more programs that lead to 
     State approved teacher certification.
       ``(2) Preference.--The administering Secretary shall give a 
     preference to institutions (or consortia) submitting 
     proposals that provide for cost sharing with respect to the 
     program involved.
       ``(c) Continuation of Program.--An institution of higher 
     education that desires to continue a program that is funded 
     under this section after such funding is terminated shall use 
     amounts derived from tuition charges to continue such 
     program.

     ``SEC. 1708. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title, $50,000,000 in fiscal year 2002, and such sums as may 
     be necessary in each subsequent fiscal year.''.
                                  ____

  SA 535. Mrs. HUTCHISON 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:

       At the appropriate place, insert the following:

     SEC. __. PARENTS' RIGHT-TO-KNOW.

       Title VI (20 U.S.C. 7301 et seq.), as amended, is further 
     amended by adding at the end the following:

                    ``PART B--PARENTS' RIGHT-TO-KNOW

     ``SEC. 6401. SHORT TITLE.

       ``This part may be cited as the ``Parents' Right-to-Know 
     Act of 2001'.

     ``SEC. 6402. FINDINGS.

       ``Congress makes the following findings:
       ``(1) Parents, educators, community leaders, school board 
     members, and business leaders need to be able to come to a 
     common understanding of how well each school is educating 
     students.
       ``(2) Fair and accurate school information requires the use 
     of longitudinal student data that links student records over 
     time and takes student mobility and prior academic 
     performance into account.
       ``(3) Fair and accurate school information requires the 
     ability to create school comparisons that match schools with 
     other schools that face equal or greater challenges.
       ``(4) Fair and accurate school information empowers 
     educators to investigate and learn from the promising 
     practices at high-performing schools.
       ``(5) Fair and accurate school information is therefore a 
     critical part of the school improvement process.

     ``SEC. 6403. STATE REPORTING OF STUDENT PERFORMANCES.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, a State shall be deemed to be in compliance with 
     the requirements of title I relating to the reporting of 
     information on student performance if the State develops a 
     longitudinal data system that links individual student test 
     scores, enrollment, and graduation records over time and 
     provides to the Secretary a report that contains--
       ``(1) test data with respect to students in public schools 
     in such State; and
       ``(2) other information related to the performance of 
     continuously enrolled students in schools in the State and to 
     the quality of such schools.
       ``(b) Report Cards.--
       ``(1) In general.--The information to be included in a 
     report under subsection (a) shall be compiled in a report 
     card format that is easily understandable and shall be made 
     available in multiple languages.
       ``(2) Contents.--Each report card under this section shall 
     include--
       ``(A) information from longitudinal data systems linking 
     individual student test scores, length of enrollment, and 
     graduation records over time, the information from which 
     shall be provided to the Secretary and to the public in 
     disaggregated form in order to enable parents and others to 
     compare--
       ``(i) students and schools in similar income, geographic, 
     racial, English proficiency, and disability categories;
       ``(ii) students in similar categories of academic 
     achievement prior to enrolling in the school to which the 
     reported test data apply; and
       ``(iii) students in similar categories of academic 
     achievement prior to enrolling in the school to which the 
     reported test data apply, and who have been continuously 
     enrolled in that school for 2 or 3 years;
       ``(B) State-specific normalization of data in order to 
     enable parents, students, and others to be able to compare 
     student performance between specific schools and, where 
     available, trends in school, district, and State performance;
       ``(C) information regarding the State or local education 
     agency's own quantitative

[[Page 7719]]

     and qualitative assessments of each school and whether the 
     school has been identified by the State or local education 
     agency as failing, underperforming or otherwise in need of 
     improvement;
       ``(D) information on the number of untested students in 
     each grade and subject and descriptions of why those students 
     were not tested;
       ``(E) information on the performance of students who have 
     been continuously enrolled in the same school for 3 years or 
     more, for grades where the school's grade configuration 
     permits such reports;
       ``(F) information on the performance of students who have 
     been continuously enrolled in the same school for 2 years or 
     more, for grades where the school's grade configuration 
     permits such reports;
       ``(G) the percentage of students in each school who are 
     enrolled in special education programs, are from families 
     whose incomes are below the Federal poverty line, and who 
     have limited or no English proficiency;
       ``(H) information regarding the professional qualifications 
     of the student's classroom teachers, including, at a 
     minimum--
       ``(i) whether each teacher is fully qualified for the grade 
     levels and subject areas in which the teacher provides 
     instruction;
       ``(ii) whether each teacher is teaching under emergency or 
     other provisional status through which State certification or 
     licensing criteria are waived;
       ``(iii) the baccalaureate degree major of each teacher, any 
     other graduate certification or degree held by the teacher, 
     and the field of discipline of each such certification or 
     degree; and
       ``(iv) whether the student is provided services by 
     paraprofessionals, and the qualifications of any such 
     paraprofessional.
       ``(c) National Distribution of Report Cards.--
       ``(1) In general.--The Secretary shall compile information 
     collected under this section and make such information 
     available in electronic form on the Internet and through 
     other means that ensure broad distribution to the public, 
     other government agencies, and to any other individuals who 
     may request such information.
       ``(2) Additional information.--Additional information that 
     may be of use to parents, students, and others in evaluating 
     schools, school districts, teachers, and the educational 
     options available to students shall also be included with 
     student performance data, as the Secretary determines to be 
     appropriate. Such information may include information 
     compiled by other public and private entities, including the 
     National Institute for Education Research, the National 
     Center for Education Statistics, the National Assessment of 
     Educational Progress, and the National Assessment Governing 
     Board.
       ``(d) Privacy.--The Secretary shall ensure that all 
     personally identifiable information about students, their 
     educational performance, and their families, and information 
     with respect to individual schools, submitted under this 
     section remain confidential, in accordance with section 552a 
     of title 5, United States Code.
       ``(e) Grants.--
       ``(1) In general.--The Secretary may award grants, on a 
     competitive basis, to States for the purpose of enabling such 
     State to carry out this section.
       ``(2) Authorization of appropriations.--For purposes of 
     carrying out this section, there are authorized to be 
     appropriated $50,000,000 for fiscal year 2002, and such sums 
     as may be necessary for each fiscal year thereafter.''.
                                  ____

  SA 536. Mr. GREGG (for himself and Mr. Hutchinson) 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 628, between lines 9 and 10, insert the following:

          ``Subpart 4--Low-Income School Choice Demonstration

     ``SEC. 5161. LOW-INCOME SCHOOL CHOICE DEMONSTRATION.

       ``(a) Short Title.--This section may be cited as the `Low-
     Income School Choice Demonstration Act of 2001'.
       ``(b) Purpose.--The purpose of this section is to determine 
     the effectiveness of school choice in improving the academic 
     achievement of disadvantaged students and the overall quality 
     of public schools and local educational agencies.
       ``(c) Definitions.--In this section:
       ``(1) Choice school.--The term `choice school' means any 
     public school, including a public charter school, that is not 
     identified under section 1116, or any private school, 
     including a private sectarian school, that is involved in a 
     demonstration project assisted under this section.
       ``(2) Eligible child.--The term `eligible child' means a 
     child in grades kindergarten through 12--
       ``(A) who is eligible for free or reduced price meals under 
     the Richard B. Russell National School Lunch Act and the 
     Child Nutrition Act of 1964;
       ``(B) who attended a public elementary or secondary school, 
     or who was not yet of school age, in the year preceding the 
     year in which the child intends to participate in the project 
     under this section; and
       ``(C) who attends, or is to attend, a public school that 
     has been identified as failing for 3 consecutive years under 
     section 1116 or by the State's accountability system.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     public agency, institution, or organization, such as a State, 
     a State or local educational agency, a county or municipal 
     agency, a consortium of public agencies, or a consortium of 
     public agencies and private nonprofit organizations, that can 
     demonstrate, to the satisfaction of the Secretary, its 
     ability to--
       ``(A) receive, disburse, and account for Federal funds; and
       ``(B) carry out the activities described in its application 
     under this section.
       ``(4) Evaluating entity.--The term `evaluating entity' 
     means an independent third party entity, including any 
     academic institution, or private or nonprofit organization, 
     with demonstrated expertise in conducting evaluations, that 
     is not an agency or instrumentality of the Federal 
     Government.
       ``(5) Parent.--The term `parent' includes a legal guardian 
     or other individual acting in loco parentis.
       ``(6) School.--The term `school' means a school that 
     provides elementary education or secondary education (through 
     grade 12), as determined under State law.
       ``(d) Authorization of Appropriations.--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, to carry out this section.
       ``(e) Program Authorized.--
       ``(1) Reservation.--From the amount appropriated pursuant 
     to the authority of subsection (d) in any fiscal year, the 
     Secretary shall reserve and make available to the evaluating 
     agency 5 percent for the evaluation of programs assisted 
     under this section in accordance with subsection (k).
       ``(2) Grants.--
       ``(A) In general.--From the amount appropriated pursuant to 
     the authority of subsection (d) and not reserved under 
     paragraph (1) for any fiscal year, the Secretary shall award 
     grants to eligible entities to enable such entities to carry 
     out not more than 13 demonstration projects (which may 
     include projects in 10 cities and an additional 3 States) 
     under which low-income parents receive education certificates 
     for the costs of enrolling their eligible children in a 
     choice school.
       ``(B) Continuing eligibility.--The Secretary shall continue 
     a demonstration project under this section by awarding a 
     grant under subparagraph (A) to an eligible entity that 
     received such a grant for a fiscal year preceding the fiscal 
     year for which the determination is made, if the Secretary 
     determines that such eligible entity was in compliance with 
     this section for such preceding fiscal year.
       ``(3) Use of grants.--Grants awarded under paragraph (2) 
     shall be used to pay the costs of--
       ``(A) providing education certificates to low-income 
     parents to enable such parents to pay the tuition, the fees, 
     the allowable costs of transportation, if any, and the costs 
     of complying with subsection (i)(1)(A), if any, for their 
     eligible children to attend a choice school; and
       ``(B) administration of the demonstration project, which 
     shall not exceed 15 percent of the amount received in the 
     first fiscal year for which the eligible entity provides 
     education certificates under this section or 10 percent in 
     any subsequent year, including--
       ``(i) seeking the involvement of choice schools in the 
     demonstration project;
       ``(ii) providing information about the demonstration 
     project, and the schools involved in the demonstration 
     project, to parents of eligible children;
       ``(iii) making determinations of eligibility for 
     participation in the demonstration project for eligible 
     children;
       ``(iv) selecting students to participate in the 
     demonstration project;
       ``(v) determining the amount of, and issuing, education 
     certificates;
       ``(vi) compiling and maintaining such financial and 
     programmatic records as the Secretary may prescribe; and
       ``(vii) collecting such information about the effects of 
     the demonstration project as the evaluating agency may need 
     to conduct the evaluation described in subsection (k).
       ``(4) Civil rights.--
       ``(A) In general.--A choice school participating in the 
     project under this section shall comply with title VI of the 
     Civil Rights Act of 1964 and shall not discriminate on the 
     basis of race, color, national origin, or sex in carrying out 
     the provisions of this section.
       ``(B) Applicability and construction with respect to 
     discrimination on the basis of sex.--
       ``(i) Applicability.--With respect to discrimination on the 
     basis of sex, subparagraph (A) shall not apply to a choice 
     school that is controlled by a religious organization if the 
     application of such subparagraph is inconsistent with the 
     religious tenets of the choice school.
       ``(ii) Construction.--With respect to discrimination on the 
     basis of sex, nothing in subparagraph (A) shall be construed 
     to require any person, or public or private entity

[[Page 7720]]

     to provide or pay, or to prohibit any such person or entity 
     from providing or paying, for any benefit or service, 
     including the use of facilities, related to an abortion. 
     Nothing in the preceding sentence shall be construed to 
     permit a penalty to be imposed on any person or individual 
     because such person or individual is seeking or has received 
     any benefit or service related to a legal abortion.
       ``(iii) Single-sex schools, classes, or activities.--With 
     respect to discrimination on the basis of sex, nothing in 
     subparagraph (A) shall be construed to prevent a parent from 
     choosing, or a choice school from offering, a single-sex 
     school, class, or activity.
       ``(C) Revocation.--If the eligible entity determines that a 
     choice school participating in the project under this section 
     is in violation of subparagraph (A), then the eligible entity 
     shall terminate the involvement of such schools in the 
     project.
       ``(f) Authorized Projects; Priority.--
       ``(1) Authorized projects.--The Secretary may award a grant 
     under this section only for a demonstration project that--
       ``(A) involves at least one local educational agency that 
     receives funds under section 1124A; and
       ``(B) includes the involvement of a sufficient number of 
     choice schools, in the judgment of the Secretary, to allow 
     for a valid demonstration project.
       ``(2) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to demonstration projects--
       ``(A) involve at least one local educational agency that is 
     among the 20 percent of local educational agencies receiving 
     funds under section 1124A in the State and having the highest 
     number of children described in section 1124(c);
       ``(B) that involve diverse types of choice schools; and
       ``(C) that will contribute to the geographic diversity of 
     demonstration projects assisted under this section.
       ``(g) Applications.--
       ``(1) In general.--Any eligible entity that wishes 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 prescribe.
       ``(2) Contents.--Each application described in paragraph 
     (1) shall contain--
       ``(A) information demonstrating the eligibility for 
     participation in the demonstration program of the eligible 
     entity;
       ``(B) with respect to choice schools--
       ``(i) a description of the standards used by the eligible 
     entity to determine which schools are within a reasonable 
     commuting distance of eligible children and present a 
     reasonable commuting cost for such eligible children;
       ``(ii) a description of the types of potential choice 
     schools that will be involved in the demonstration project;
       ``(iii)(I) a description of the procedures used to 
     encourage public and private schools to be involved in the 
     demonstration project; and
       ``(II) a description of how the eligible entity will 
     annually determine the number of spaces available for 
     eligible children in each choice school;
       ``(iv) an assurance that each choice school will not impose 
     higher standards for admission or participation in its 
     programs and activities for eligible children provided 
     education certificates under this section than the choice 
     school does for other children;
       ``(v) an assurance that each choice school operated, for at 
     least 1 year prior to accepting education certificates under 
     this section, an educational program similar to the 
     educational program for which such choice school will accept 
     such education certificates;
       ``(vi) an assurance that the eligible entity will terminate 
     the involvement of any choice school that fails to comply 
     with the conditions of its involvement in the demonstration 
     project; and
       ``(vii) a description of the extent to which choice schools 
     will accept education certificates under this section as full 
     or partial payment for tuition and fees;
       ``(C) with respect to the participation in the 
     demonstration project of eligible children--
       ``(i) a description of the procedures to be used to make a 
     determination of eligibility for participation in the 
     demonstration project for an eligible child, which shall 
     include--

       ``(I) the procedures for obtaining, using and safeguarding 
     information from applications for free or reduced price meals 
     under the Richard B. Russell National School Lunch Act and 
     the Child Nutrition Act of 1964; or
       ``(II) any other procedure, subject to the Secretary's 
     approval, that accurately establishes the eligibility for 
     such participation for an eligible child;

       ``(ii) a description of the procedures to be used to ensure 
     that, in selecting eligible children to participate in the 
     demonstration project, the eligible entity will give priority 
     to eligible children from the lowest income families;
       ``(iii) a description of the procedures to be used to 
     ensure maximum choice of schools for participating eligible 
     children, including procedures to be used when--

       ``(I) the number of parents provided education certificates 
     under this section who desire to enroll their eligible 
     children in a particular choice school exceeds the number of 
     eligible children that the choice school will accept; and
       ``(II) grant funds and funds from local sources are 
     insufficient to support the total cost of choices made by 
     parents with education certificates under this section; and

       ``(iv) a description of the procedures to be used to ensure 
     compliance with subsection (i)(1)(A), which may include--

       ``(I) the direct provision of services by a local 
     educational agency; and
       ``(II) arrangements made by a local educational agency with 
     other service providers;

       ``(D) with respect to the operation of the demonstration 
     project--
       ``(i) a description of the geographic area to be served;
       ``(ii) a timetable for carrying out the demonstration 
     project;
       ``(iii) a description of the procedures to be used for the 
     issuance and redemption of education certificates under this 
     section;
       ``(iv) a description of the procedures by which a choice 
     school will make a pro rata refund of the education 
     certificate under this section for any participating eligible 
     child who withdraws from the school for any reason, before 
     completing 75 percent of the school attendance period for 
     which the education certificate was issued;
       ``(v) a description of the procedures to be used to provide 
     the parental notification described in subsection (j);
       ``(vi) an assurance that the eligible entity will place all 
     funds received under this section into a separate account, 
     and that no other funds will be placed in such account;
       ``(vii) an assurance that the eligible entity will provide 
     the Secretary periodic reports on the status of such funds;
       ``(viii) an assurance that the eligible entity will 
     cooperate with the evaluating entity in carrying out the 
     evaluations described in subsection (k);
       ``(ix) an assurance that the eligible entity will--

       ``(I) maintain such records as the Secretary may require; 
     and
       ``(II) comply with reasonable requests from the Secretary 
     for information;

       ``(x) a description of the method by which the eligible 
     entity will use to assess the progress of participants in 
     math and reading and how such assessment is comparable to 
     assessments used by the local educational agency involved;
       ``(xi) an assurance that if the number of students applying 
     to participate in the project is greater than the number of 
     students that the project can serve, participating students 
     will be selected by a lottery; and
       ``(x) an assurance that no private school will be required 
     to participate in the project without the private school's 
     consent; and
       ``(E) such other assurances and information as the 
     Secretary may require.
       ``(h) Education Certificates.--
       ``(1) In general.--
       ``(A) Amount.--The amount of an eligible child's education 
     certificate under this section shall be determined by the 
     eligible entity, but shall be an amount that provides to the 
     recipient of the education certificate the maximum degree of 
     choice in selecting the choice school the eligible child will 
     attend.
       ``(B) Considerations.--
       ``(i) In general.--Subject to such regulations as the 
     Secretary shall prescribe, in determining the amount of an 
     education certificate under this section an eligible entity 
     shall consider--

       ``(I) the additional reasonable costs of transportation 
     directly attributable to the eligible child's participation 
     in the demonstration project; and
       ``(II) the cost of complying with subsection (i)(1)(A).

       ``(ii) Schools charging tuition.--If an eligible child 
     participating in a demonstration project under this section 
     was attending a public school that charged tuition for the 
     year preceding the first year of such participation, then in 
     determining the amount of an education certificate for such 
     eligible child under this section the eligible entity shall 
     consider the tuition charged by such school for such eligible 
     child in such preceding year.
       ``(C) Special rule.--An eligible entity may provide an 
     education certificate under this section to the parent of an 
     eligible child who chooses to attend a school that does not 
     charge tuition or fees, to pay the additional reasonable 
     costs of transportation directly attributable to the eligible 
     child's participation in the demonstration project or the 
     cost of complying with subsection (i)(1)(A).
       ``(2) Adjustment.--The amount of the education certificate 
     for a fiscal year may be adjusted in the second and third 
     years of an eligible child's participation in a demonstration 
     project under this section to reflect any increase or 
     decrease in the tuition, fees, or transportation costs 
     directly attributable to that eligible child's continued 
     attendance at a choice school, but shall not be increased for 
     this purpose by more than 10 percent of the amount of the 
     education certificate for the fiscal year preceding the 
     fiscal year for which the determination is made. The amount 
     of the education certificate may also be adjusted in any 
     fiscal year to comply with subsection (i)(1)(A).

[[Page 7721]]

       ``(3) Maximum amount.--Notwithstanding any other provision 
     of this subsection, the amount of an eligible child's 
     education certificate shall not exceed the per pupil 
     expenditure for elementary or secondary education, as 
     appropriate, by the local educational agency in which the 
     public school to which the eligible child would normally be 
     assigned is located for the fiscal year preceding the fiscal 
     year for which the determination is made.
       ``(4) Income.--An education certificate under this section, 
     and funds provided under the education certificate, shall not 
     be treated as income of the parents for purposes of Federal 
     tax laws or for determining eligibility for any other Federal 
     program.
       ``(i) Effect on Other Programs; Use of School Lunch Data.--
       ``(1) Effect on other programs.--
       ``(A) In general.--An eligible child participating in a 
     demonstration project under this section, who, in the absence 
     of such a demonstration project, would have received services 
     under part A of title I shall be provided such services.
       ``(B) 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.
       ``(2) Counting of Eligible Children.--Notwithstanding any 
     other provision of law, any local educational agency 
     participating in a demonstration project under this section 
     may count eligible children who, in the absence of such a 
     demonstration project, would attend the schools of such 
     agency, for purposes of receiving funds under any program 
     administered by the Secretary.
       ``(3) Special rule.--
       ``(A) In general.--Notwithstanding the provisions of 
     section 9(b)(2)(C)(iii) and (iv) of the Richard B. Russell 
     National School Lunch Act, information obtained from an 
     application for free or reduced price meals under such Act or 
     the Child Nutrition Act of 1964 shall, upon request, be 
     disclosed to an eligible entity receiving a grant under this 
     section and may be used by the eligible entity to determine 
     the eligibility of a child to participate in a demonstration 
     project under this section and, if needed, to rank families 
     by income in accordance with subsection (g)(2)(C)(ii).
       ``(B) Limitations.--
       ``(i) In general.--Information provided under this 
     paragraph shall be limited to the information needed to 
     determine eligibility or to rank families in a demonstration 
     project under this section and may be used only by persons 
     who need the information to determine eligibility or rank 
     families in a demonstration project under this section.
       ``(ii) Limitations.--A person having access to information 
     provided under this paragraph shall be subject to the 
     limitations and penalties imposed under section 9(b)(2)(C)(v) 
     of the Richard B. Russell National School Lunch Act.
       ``(4) Construction.--
       ``(A) Sectarian institutions.--Nothing in this section 
     shall be construed to supersede or modify any provision of a 
     State constitution or State law that prohibits the 
     expenditure of public funds in or by sectarian institutions, 
     except that no provision of a State constitution or State law 
     shall be construed to prohibit the expenditure in or by 
     sectarian institutions of any Federal funds provided under 
     this section.
       ``(B) Desegregation plans.--Nothing in this section shall 
     be construed to interfere with any desegregation plans that 
     involve school attendance areas affected by this section.
       ``(j) Parental Notification.--Each eligible entity 
     receiving a grant under this section shall provide timely 
     notice of the demonstration project to parents of eligible 
     children residing in the area to be served by the 
     demonstration project. At a minimum, such notice shall--
       ``(1) describe the demonstration project;
       ``(2) describe the eligibility requirements for 
     participation in the demonstration project;
       ``(3) describe the information needed to make a 
     determination of eligibility for participation in the 
     demonstration project for an eligible child;
       ``(4) describe the selection procedures to be used if the 
     number of eligible children seeking to participate in the 
     demonstration project exceeds the number that can be 
     accommodated in the demonstration project;
       ``(5) provide information about each choice school, 
     including information about any admission requirements or 
     criteria for each choice school participating in the 
     demonstration project; and
       ``(6) include the schedule for parents to apply for their 
     eligible children to participate in the demonstration 
     project.
       ``(k) Evaluation.--
       ``(1) Annual evaluation.--
       ``(A) Contract.--The Secretary shall enter into a contract 
     with an evaluating agency for the conduct of an ongoing 
     rigorous evaluation of the demonstration program under this 
     section.
       ``(B) Annual evaluation requirement.--The contract 
     described in subparagraph (A) shall require the evaluating 
     agency to annually evaluate each demonstration project under 
     this section in accordance with the criteria described in 
     paragraph (2).
       ``(2) Evaluation criteria.--The Secretary shall establish 
     such criteria for evaluating the demonstration program under 
     this section. Such criteria shall include--
       ``(A) a description of the implementation of each 
     demonstration project under this section;
       ``(B) a comparison of the educational achievement between 
     students receiving education certificates under this section 
     and students otherwise eligible for, but not receiving 
     education certificates under this section;
       ``(C) a comparison of the level of parental satisfaction 
     and involvement between parents whose children receive 
     education certificates and parents from comparable 
     backgrounds whose children did not receive an education 
     certificate; and
       ``(D) a description of changes in the overall performance 
     and quality of public elementary and secondary schools in the 
     demonstration project area that can be directly or reasonably 
     attributable to the program under this section.
       ``(3) Reports.--
       ``(A) Report by grant recipient.--Each eligible entity 
     receiving a grant under this section shall submit, to the 
     Secretary and the evaluating agency, an annual report 
     regarding the demonstration project under this section. Each 
     such report shall be submitted at such time, in such manner, 
     and accompanied by such information, as such evaluating 
     agency may require.
       ``(B) Reports by evaluating agency.--
       ``(i) In general.--The evaluating agency shall transmit to 
     the Secretary and the Congress 2 interim reports on the 
     findings of the annual evaluation under this subsection.
       ``(ii) First interim report.--The first interim report 
     under clause (i) shall be submitted not later than September 
     20, 2003, and shall, at a minimum, describe the 
     implementation of the demonstration projects under this 
     section and shall include such demographic information as is 
     reasonably available about--

       ``(I) the participating schools (both the choice schools 
     and the schools that have been identified as failing;
       ``(II) the participating and requesting students and 
     background of their families; and
       ``(III) the number of certificates requested versus the 
     number of certificates received.

       ``(iii) Second interim and final report.--The second 
     interim and final report under this subparagraph shall be 
     submitted to the Secretary and the appropriate committees in 
     Congress not later than September 30, 2006, and June 1, 2008, 
     respectfully, and shall, at a minimum, include the 
     information described in clause (ii), as well as any 
     additional information deemed necessary by the Secretary.
                                  ____

  SA 537. Mr. REED 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 731, line 5, strike ``(C) and (D)'' and insert 
     ``(C), (D), and (E)''.
       On page 738, between lines 8 and 9, insert the following:
       ``(E) Total student population.--In selecting the State 
     educational agencies and local educational agencies described 
     in subparagraph (A) to enter into performance agreements 
     under this part, the Secretary may not select State 
     educational agencies and local educational agencies that 
     serve a combined student population that is greater than 10 
     percent of the total national student population, based on 
     the most recent appropriate data available.
                                  ____

  SA 538. Mr. REED 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 22, lines 22-23, strike ``participation of private 
     school'' and insert ``parents and'' after ``for''.
       On page 23, line 3, insert ``this Act, including but not 
     limited to'' after ``of'' and insert a comma ``,'' after 
     ``6''.
       On page 23, line 8, strike ``a reasonable period of time'' 
     and insert ``90 days of receipt of the complaint'' after 
     ``within''.
       On page 23, lines 12-13, strike ``fails to resolve the 
     complaint within a reasonable period of time'' and insert ``, 
     if there is no resolution, any time after the expiration of 
     the State educational agency's 90-day period for resolving 
     such complaints'' after ``or''.
       On page 23, lines 16-17, strike ``resolve'' and insert 
     ``make an initial determination of'' after ``and''.
       On page 23, line 19, strike ``by-pass determination'' and 
     insert ``complaint appeals'' before ``process''.
       On page 23, line 21, after ``In General.'', insert a new 
     section (A) to read as follows:
       ``(A) If the Secretary determines that the State 
     educational agency, local educational agency, educational 
     service agency, or consortium of such agencies is not meeting 
     its responsibilities under the Act, the Secretary shall 
     notify the State educational agency of

[[Page 7722]]

     such determination and the reasons for such determination, 
     offer the State educational agency the opportunity to address 
     the complaint, and provide technical assistance to the State 
     educational agency. If the State educational agency fails to 
     take corrective action within a reasonable time, the 
     Secretary may, after notice and consultation, withhold funds 
     for State administration and activities under section 
     1117.''.
       On page 23, line 21, strike ``(A)'' and renumber the 
     paragraph as ``(B)''.
       On page 23, line 22, strike ``7'' and insert ``this'' 
     before ``section''.
       On page 24, line 2, strike ``thereof'' and insert ``of the 
     Secretary's initial determination'' after ``notice''.
       On page 24, line 4, insert ``In the absence of such 
     objection, the initial determination shall be the final 
     action.'' after the period ``.''.
       On page 24, line 5, strike ``(B)'' and renumber the 
     paragraph as ``(C)'', and strike ``resolution of'' and insert 
     ``action on'' before ``any''.
       On page 24, lines 10-11, strike ``those services'' and 
     insert ``any services not being provided'' after ``of''.
       On page 24, lines 12-13, strike ``such'' and insert ``an'' 
     after ``If''.
       On page 25, line 25, strike ``private''.
       On page 26, line 4, strike ``section 6 or any other 
     provision of''.
       On page 26, line 9, strike ``public and private''.
                                  ____

  SA 539. Mrs. HUTCHISON 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 684, strike lines 1 through 5, and insert the 
     following:
       ``(L) programs to provide same gender schools and 
     classrooms, if the local educational agency makes available 
     to students of the same gender schools and classrooms 
     policies and criteria for admission, courses, services, and 
     facilities that are comparable to the policies and criteria, 
     courses, services, and facilities offered in or through the 
     local educational agency's coeducational schools and 
     classrooms;''.
                                  ____

  SA 540. Mrs. HUTCHISON 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 684, strike lines 1 through 5, and insert the 
     following:
       ``(L) education reform programs that provide same gender 
     schools and classrooms, if comparable educational 
     opportunities are offered for students of both sexes;''.
                                  ____

  SA 541. Mrs. HUTCHISON 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 684, line 2, strike ``equal'' and insert 
     ``comparable''.
                                  ____

  SA 542. Mrs. HUTCHISON 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 684, strike lines 1 through 5.
                                  ____

  SA 543. Mr. KYL (for himself and Mr. Hutchinson) 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. __. SENSE OF THE SENATE REGARDING TAX CREDITS FOR 
                   CONTRIBUTIONS TO TUITION SCHOLARSHIP 
                   ORGANIZATIONS.

       (a) Findings.--The Senate finds the following:
       (1) Over the last decade, many education reform advocates 
     in the private sector have formed organizations that provide 
     partial tuition scholarships to students whose families lack 
     the means to pay full tuition at the school of their choice.
       (2) Studies have shown that parents with children receiving 
     such scholarship assistance outperform comparable students 
     not awarded such scholarships on standardized tests and that 
     the parents of such students express high levels of 
     satisfaction with the quality of their children's education.
       (3) In 1999, approximately 1,250,000 applications were made 
     for 40,000 partial tuition scholarships being offered to low-
     income students nationwide; comparable results from other 
     such lotteries demonstrate that demand for such scholarship 
     assistance far outstrips the available supply.
       (4) Recognizing the compelling public interest in meeting 
     that demand, Arizona and other States have enacted, or are 
     considering enacting, legislation to provide tax incentives 
     to taxpayers who donate to tuition scholarship organizations.
       (5) Since Arizona enacted a tax credit for donations to 
     tuition scholarship organizations, the number of 
     organizations offering scholarships in the State has 
     increased from 2 to 33, and more than 11,000 students have 
     received scholarship assistance that has made it possible for 
     them to enroll in a school of their choice.
       (6) State and Federal courts have consistently found 
     tuition scholarship donation tax credits to be constitutional 
     under State constitutions and the Constitution of the United 
     States.
       (7) Congress should encourage promising private initiatives 
     to improve education at the elementary and secondary level.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that Congress should act expeditiously to pass legislation in 
     the 107th Congress providing a tax credit to partially offset 
     the cost of donations to organizations that provide tuition 
     scholarships to students whose families lack the means to pay 
     full tuition at the school of their choice.
                                  ____

  SA 544. Mr. STEVENS 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 in the bill, insert the following 
     new section:

     SEC.   . PILOT TRAINING PROGRAM.

       (1) In general.--The Secretary of Education is authorized 
     to award grants to land-grant colleges and universities in 
     states with aircraft pilot shortage and to Alaska Native-
     serving institutions to enable the institutions to educate 
     thousand aircraft pilots and to provide the equipment 
     necessary to train pilots, including air traffic control and 
     pilot training simulators.
       (2) Definitions.--In this subsection:
       (A) Alaska native-serving institution.--The term ``Alaska 
     Native-serving institution'' has the meaning given the term 
     in section 317(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1059d(b)).
       (B) Land-grant colleges and universities.--The term ``land-
     grant colleges and universities'' has the meaning given the 
     term in section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103).
                                  ____

  SA 545. Mr. DASCHLE 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 365, strike lines 7 through 11, and insert the 
     following:
       ``(a) Limitation.--
       ``(1) In general.--From funds appropriated under this part, 
     the Secretary shall 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.
       ``(2) Bureau of Indian Affairs funded schools.--From funds 
     appropriated under this part, the Secretary shall reserve 1 
     percent of such funds for Bureau of Indian Affairs funded 
     schools. Not later than 6 months after the date of enactment 
     of the Better Education for Students and Teacher Act, the 
     Secretary of the Interior shall establish rules for 
     distributing such funds in accordance with a formula 
     developed by the Secretary of the Interior in consultation 
     with school boards of BIA-funded schools, taking into 
     consideration student enrollment, the number of children with 
     special needs, the number of bilingual children, the number 
     of students in residential programs, and the number of 
     students in gifted and talented programs. The Secretary shall 
     also consider whether a minimum amount is needed to ensure 
     small schools can utilize funding effectively. In accordance 
     with such rules, the Secretary of the Interior shall 
     distribute such funds.
                                  ____

  SA 546. Ms. SNOWE 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, insert the following:

                   TITLE __--BUILDING AND RENOVATION

     SEC. __01. SHORT TITLE.

       This title may be cited as the ``Building, Renovating, 
     Improving, and Constructing Kids' Schools Act''.

     SEC. __02. FINDINGS.

       Congress makes the following findings:
       (1) According to a 1999 issue brief prepared by the 
     National Center for Education Statistics, the average public 
     school in America is

[[Page 7723]]

     42 years old, and school buildings begin rapid deterioration 
     after 40 years. In addition, 29 percent of all public schools 
     are in the oldest condition, meaning that the schools were 
     built before 1970 and have either never been renovated or 
     were renovated prior to 1980.
       (2) According to reports issued by the General Accounting 
     Office (GAO) in 1995 and 1996, it would cost $112,000,000,000 
     to bring the Nation's schools into good overall condition, 
     and one-third of all public schools need extensive repair or 
     replacement.
       (3) Many schools do not have the appropriate infrastructure 
     to support computers and other technologies that are 
     necessary to prepare students for the jobs of the 21st 
     century.
       (4) Without impeding on local control, the Federal 
     Government appropriately can assist State, regional, and 
     local entities in addressing school construction, renovation, 
     and repair needs by providing low-interest loans for purposes 
     of paying interest on related bonds and by supporting other 
     State-administered school construction programs.

     SEC. __03. DEFINITIONS.

       In this title:
       (1) Bond.--The term ``bond'' includes any obligation.
       (2) Governor.--The term ``Governor'' includes the chief 
     executive officer of a State.
       (3) Local educational agency.--The term ``local educational 
     agency'' has the meaning given to such term by section 3 of 
     the Elementary and Secondary Education Act of 1965.
       (4) Public school facility.--The term ``public school 
     facility'' shall not include--
       (A) any stadium or other facility primarily used for 
     athletic contests or exhibitions, or other events for which 
     admission is charged to the general public; or
       (B) any facility that is not owned by a State or local 
     government or any agency or instrumentality of a State or 
     local government.
       (5) Qualified school construction bond.--The term 
     ``qualified school construction bond'' means any bond (or 
     portion of a bond) issued as part of an issue if--
       (A) 95 percent or more of the proceeds attributable to such 
     bond (or portion) are to be used for the construction, 
     rehabilitation, or repair of a public school facility or for 
     the acquisition of land on which such a facility is to be 
     constructed with part of the proceeds;
       (B) the bond is issued by a State, regional, or local 
     entity, with bonding authority; and
       (C) the issuer designates such bond (or portion) for 
     purposes of this section.
       (6) Stabilization fund.--The term ``stabilization fund'' 
     means the stabilization fund established under section 5302 
     of title 31, United States Code.
       (7) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

     SEC. __04. LOANS FOR SCHOOL CONSTRUCTION BOND INTEREST 
                   PAYMENTS AND OTHER SUPPORT.

       (a) Loan Authority and Other Support.--
       (1) Loans and state-administered programs.--
       (A) In general.--Except as provided in subparagraph (B), 
     from funds made available to a State under section __05(b) 
     the State, in consultation with the State educational 
     agency--
       (i) shall use not less than 50 percent of the funds to make 
     loans to State, regional, or local entities within the State 
     to enable the entities to make annual interest payments on 
     qualified school construction bonds that are issued by the 
     entities not later than December 31, 2004; and
       (ii) may use not more than 50 percent of the funds to 
     support State revolving fund programs or other State-
     administered programs that assist State, regional, and local 
     entities within the State in paying for the cost of 
     construction, rehabilitation, repair, or acquisition 
     described in section __03(5)(A).
       (B) States with restrictions.--If, on the date of enactment 
     of this Act, a State has in effect a law that prohibits the 
     State from making the loans described in subparagraph (A)(i), 
     the State, in consultation with the State educational agency, 
     may use the funds described in subparagraph (A) to support 
     the programs described in subparagraph (A)(ii).
       (2) Requests.--The Governor of each State desiring 
     assistance under this title shall submit a request to the 
     Secretary of the Treasury at such time and in such manner as 
     the Secretary of the Treasury may require.
       (3) Priority.--In selecting entities to receive funds under 
     paragraph (1) for projects involving construction, 
     rehabilitation, repair, or acquisition of land for schools, 
     the State shall give priority to entities with projects for 
     schools with greatest need, as determined by the State. In 
     determining the schools with greatest need, the State shall 
     take into consideration whether a school--
       (A) is among the schools that have the greatest numbers or 
     percentages of children whose education imposes a higher than 
     average cost per child, such as--
       (i) children living in areas with high concentrations of 
     low-income families;
       (ii) children from low-income families; and
       (iii) children living in sparsely populated areas;
       (B) has inadequate school facilities and a low level of 
     resources to meet the need for school facilities; or
       (C) meets such criteria as the State may determine to be 
     appropriate.
       (b) Repayment.--
       (1) In general.--Subject to paragraph (2), a State that 
     uses funds made available under section __05(b) to make a 
     loan or support a State-administered program under subsection 
     (a)(1) shall repay to the stabilization fund the amount of 
     the loan or support, plus interest, at an annual rate of 4.5 
     percent. A State shall not be required to begin making such 
     repayment until the year immediately following the 15th year 
     for which the State is eligible to receive annual 
     distributions from the fund (which shall be the final year 
     for which the State shall be eligible for such a distribution 
     under this Act). The amount of such loan or support shall be 
     fully repaid during the 10-year period beginning on the 
     expiration of the eligibility of the State under this title.
       (2) Exceptions.--
       (A) In general.--The interest on the amount made available 
     to a State under section __05(b) shall not accrue, prior to 
     January 1, 2007, unless the amount appropriated to carry out 
     part B of the Individuals with Disabilities Education Act (20 
     U.S.C. 1411 et seq.) for any fiscal year prior to fiscal year 
     2007 is sufficient to fully fund such part for the fiscal 
     year at the originally promised level, which promised level 
     would provide to each State 40 percent of the average per-
     pupil expenditure for providing special education and related 
     services for each child with a disability in the State.
       (B) Applicable interest rate.--Effective January 1, 2007, 
     the applicable interest rate that will apply to an amount 
     made available to a State under section __05(b) shall be--
       (i) 0 percent with respect to years in which the amount 
     appropriated to carry out part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.) is not 
     sufficient to provide to each State at least 20 percent of 
     the average per-pupil expenditure for providing special 
     education and related services for each child with a 
     disability in the State;
       (ii) 2.5 percent with respect to years in which the amount 
     described in clause (i) is not sufficient to provide to each 
     State at least 30 percent of such average per-pupil 
     expenditure;
       (iii) 3.5 percent with respect to years in which the amount 
     described in clause (i) is not sufficient to provide to each 
     State at least 40 percent of such average per-pupil 
     expenditure; and
       (iv) 4.5 percent with respect to years in which the amount 
     described in clause (i) is sufficient to provide to each 
     State at least 40 percent of such average per-pupil 
     expenditure.
       (c) Federal Responsibilities.--The Secretary of the 
     Treasury and the Secretary of Education--
       (1) jointly shall be responsible for ensuring that funds 
     provided under this title are properly distributed;
       (2) shall ensure that funds provided under this title are 
     used only to pay for--
       (A) the interest on qualified school construction bonds; or
       (B) a cost described in subsection (a)(1)(A)(ii); and
       (3) shall not have authority to approve or disapprove 
     school construction plans assisted pursuant to this title, 
     except to ensure that funds made available under this title 
     are used only to supplement, and not supplant, the amount of 
     school construction, rehabilitation, and repair, and 
     acquisition of land for school facilities, in the State that 
     would have occurred in the absence of such funds.

     SEC. __05. AMOUNTS AVAILABLE TO EACH STATE.

       (a) Reservation for Indians.--
       (1) In general.--From $20,000,000,000 of the funds in the 
     stabilization fund, the Secretary of the Treasury shall make 
     available $400,000,000 to provide assistance to Indian 
     tribes.
       (2) Use of funds.--An Indian tribe that receives assistance 
     under paragraph (1)--
       (A) shall use not less than 50 percent of the assistance 
     for a loan to enable the Indian tribe to make annual interest 
     payments on qualified school construction bonds, in 
     accordance with the requirements of this Act that the 
     Secretary of the Treasury determines to be appropriate; and
       (B) may use not more than 50 percent of the assistance to 
     support tribal revolving fund programs or other tribal-
     administered programs that assist tribal governments in 
     paying for the cost of construction, rehabilitation, repair, 
     or acquisition described in section __03(5)(A), in accordance 
     with the requirements of this Act that the Secretary of the 
     Treasury determines to be appropriate.
       (b) Amounts Available.--
       (1) In general.--Subject to paragraph (3) and from 
     $20,000,000,000 of the funds in the stabilization fund that 
     are not reserved under subsection (a), the Secretary of the 
     Treasury shall make available to each State submitting a 
     request under section

[[Page 7724]]

     __04(a)(2) an amount that bears the same relation to such 
     remainder as the amount the State received under part A of 
     title I of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311 et seq.) for fiscal year 2001 bears to the 
     amount received by all States under such part for such year.
       (2) Disbursal.--The Secretary of the Treasury shall 
     disburse the amount made available to a State under paragraph 
     (1) or (3), on an annual basis, during the period beginning 
     on October 1, 2001, and ending September 30, 2018.
       (3) Small state minimum.--
       (A) Minimum.--No State shall receive an amount under 
     paragraph (1) that is less than $100,000,000.
       (B) States.--In this paragraph, the term ``State'' means 
     each of the several States of the United States, the District 
     of Columbia, and the Commonwealth of Puerto Rico.
       (c) Notification.--The Secretary of the Treasury and the 
     Secretary of Education jointly shall notify each State of the 
     amount of funds the State may receive for loans and other 
     support under this Act.
  SA 547. Mr. SMITH of New Hampshire 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, add the following:
       ``Sec.  . Nothing in this Act shall prohibit school 
     administrator, or faculty or staff member, from using a 
     firearm to prevent a school massacre.''.
                                  ____

  SA 548. Mr. SMITH of New Hampshire 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, add the following:
       ``Sec.  . (a) Whereas the Bible is the best selling, most 
     widely read, and most influential book in history;
       (b) Whereas familiarity with the nature of religious 
     beliefs is necessary to understanding history and 
     contemporary events;
       (c) Whereas the Bible is worthy of study for its literary 
     and historic qualities;
       (d) Whereas many public schools throughout America are 
     currently teaching the Bible as literature and/or history;
       Sec.  . It is the sense of the Senate that nothing in this 
     Act or any provision of law shall discourage the teaching of 
     the Bible in any public school.''.
                                  ____

  SA 549. Mr. HAGEL (for himself, Mr. Baucus, and Mrs. Hutchison) 
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. __. SCHOOL FACILITY MODERNIZATION GRANTS.

       Subsection (b) of section 8007 (20 U.S.C. 7707(b)) (as 
     amended by section 1811 of the Impact Aid Reauthorization Act 
     of 2000 (as enacted into law by section 1 of Public Law 106-
     398)) is amended to read as follows:
       ``(b) School Facility Modernization Grants Authorized.--
       ``(1) Funding and allocation.--
       ``(A) Funding.--From 60 percent of the amount appropriated 
     for each fiscal year under section 8014(e), the Secretary 
     shall award grants in accordance with this subsection to 
     eligible local educational agencies to enable the local 
     educational agencies to carry out modernization of school 
     facilities.
       ``(B) Allocation.--From amounts made available for a fiscal 
     year under subparagraph (A), the Secretary shall allocate--
       ``(i) 6 percent of such amount for grants to local 
     educational agencies described in paragraph (2)(A);
       ``(ii) 47 percent of such amount for grants to local 
     educational agencies described in paragraph (2)(B), of which, 
     10 percent shall be available for emergency grants that shall 
     not be subject to the requirements of subparagraphs (A) and 
     (B) of paragraph (4); and
       ``(iii) 47 percent of such amount for grants to local 
     educational agencies described in paragraph (2)(C), of which, 
     10 percent shall be available for emergency grants that shall 
     not be subject to the requirements of subparagraphs (A) and 
     (B) of paragraph (4).
       ``(C) Special rule.--A local educational agency described 
     in clauses (ii) and (iii) of subparagraph (B) may use grant 
     funds made available under this subsection for a school 
     facility located on or near Federal property only if the 
     school facility is located at a school where not less than 25 
     percent of the children in average daily attendance in the 
     school for the preceding school year are children for which a 
     determination is made under section 8003(a)(1).
       ``(2) Eligibility requirements.--A local educational agency 
     is eligible to receive funds under this subsection only if--
       ``(A) such agency received assistance under section 8002(a) 
     for the fiscal year and has an assessed value of taxable 
     property per student in the school district that is less than 
     the average of the assessed value of taxable property per 
     student in the State in which the local educational agency is 
     located;
       ``(B) such agency had an enrollment of children determined 
     under section 8003(a)(1)(C) which constituted at least 25 
     percent of the number of children who were in average daily 
     attendance in the schools of such agency during the school 
     year preceding the school year for which the determination is 
     made; or
       ``(C) such agency had an enrollment of children determined 
     under subparagraphs (A), (B), and (D) of section 8003(a)(1) 
     which constituted at least 25 percent of the number of 
     children who were in average daily attendance in the schools 
     of such agency during the school year preceding the school 
     year for which the determination is made.
       ``(3) Award criteria.--In awarding grants under this 
     subsection, the Secretary shall review applications submitted 
     with respect to each type of agency represented by local 
     educational agencies that qualify under each of subparagraphs 
     (A), (B), and (C) of paragraph (2). In evaluating an 
     application, the Secretary shall consider the following 
     criteria:
       ``(A) The extent to which the local educational agency 
     lacks the fiscal capacity to undertake the modernization 
     project without Federal assistance.
       ``(B) The extent to which property in the local educational 
     agency is nontaxable due to the presence of the Federal 
     Government.
       ``(C) The extent to which the local educational agency 
     serves high numbers or percentages of children described in 
     subparagraphs (A), (B), (C), and (D) of section 8003(a)(1).
       ``(D) The need for modernization to meet--
       ``(i) the threat that the condition of the school facility 
     poses to the health, safety, and well-being of students;
       ``(ii) overcrowding conditions as evidenced by the use of 
     trailers and portable buildings and the potential for future 
     overcrowding because of increased enrollment; and
       ``(iii) facility needs resulting from actions of the 
     Federal Government.
       ``(E) The age of the school facility to be modernized.
       ``(4) Other award provisions.--
       ``(A) Amount.--In determining the amount of a grant awarded 
     under this subsection, the peer group and Secretary shall 
     consider the cost of the modernization and the ability of the 
     local educational agency to produce sufficient funds to carry 
     out the activities for which assistance is sought.
       ``(B) Federal share.--The Federal funds provided under this 
     subsection to a local educational agency shall not exceed 50 
     percent of the total cost of the project to be assisted under 
     this subsection. A local educational agency may use in-kind 
     contributions, excluding land contributions, to meet the 
     matching requirement of the preceding sentence.
       ``(C) Maximum grant.--A local educational agency described 
     in this subsection may not receive a grant under this 
     subsection in an amount that exceeds $5,000,000 during any 2-
     year period.
       ``(5) Applications.--A local educational agency that 
     desires to receive a grant under this subsection shall submit 
     an application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. Each application shall contain--
       ``(A) a listing of the school facilities to be modernized, 
     including the number and percentage of children determined 
     under section 8003(a)(1) in average daily attendance in each 
     school facility;
       ``(B) a description of the ownership of the property on 
     which the current school facility is located or on which the 
     planned school facility will be located;
       ``(C) a description of how the local educational agency 
     meets the award criteria under paragraph (3);
       ``(D) a description of the modernization to be supported 
     with funds provided under this subsection;
       ``(E) a cost estimate of the proposed modernization; and
       ``(F) such other information and assurances as the 
     Secretary may reasonably require.
       ``(6) Emergency grants.--
       ``(A) Applications.--Each local educational agency applying 
     for a grant under paragraph (1)(B)(ii) or (1)(B)(iii) that 
     desires a grant under this paragraph shall include in the 
     application submitted under paragraph (5) a signed statement 
     from an appropriate local official certifying that a health 
     or safety emergency exists.
       ``(B) Special rules.--The Secretary shall make every effort 
     to meet fully the school facility needs of local educational 
     agencies applying for a grant under this paragraph.
       ``(C) Priority.--If the Secretary receives more than one 
     application from local educational agencies described in 
     paragraph (1)(B)(ii) or (1)(B)(iii) for grants under this 
     paragraph for any fiscal year, the peer review group and the 
     Secretary shall give priority to local educational agencies 
     based on the severity of the emergency, as determined by the 
     Secretary, and when the application was received.

[[Page 7725]]

       ``(D) Consideration for following year.--A local 
     educational agency described in paragraph (2) that applies 
     for a grant under this paragraph for any fiscal year and does 
     not receive the grant shall have the application for the 
     grant considered for the following fiscal year, subject to 
     the priority described in subparagraph (C).
       ``(7) General limitations.--
       ``(A) Real property.--No grant funds awarded under this 
     subsection shall be used for the acquisition of any interest 
     in real property.
       ``(B) Maintenance.--Nothing in this subsection shall be 
     construed to authorize the payment of maintenance costs in 
     connection with any school facility modernized in whole or in 
     part with Federal funds provided under this subsection.
       ``(C) Environmental safeguards.--All projects carried out 
     with Federal funds provided under this subsection shall 
     comply with all relevant Federal, State, and local 
     environmental laws and regulations.
       ``(D) Athletic and similar school facilities.--No Federal 
     funds received under this subsection shall be used for 
     outdoor stadiums or other school facilities that are 
     primarily used for athletic contests or exhibitions, or other 
     events, for which admission is charged to the general public.
       ``(8) Supplement not supplant.--An eligible local 
     educational agency shall use funds received under this 
     subsection only to supplement the amount of funds that would, 
     in the absence of such Federal funds, be made available from 
     non-Federal sources for the modernization of school 
     facilities used for educational purposes, and not to supplant 
     such funds.''.
                                  ____

  SA 550. Mr. HUTCHINSON 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:

TITLE X--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC SCHOOL 
                              CONSTRUCTION

     SEC. 1001. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION 
                   FOR GOVERNMENTAL BONDS USED TO FINANCE 
                   EDUCATIONAL FACILITIES.

       (a) In General.--Section 148(f)(4)(D)(vii) (relating to 
     increase in exception for bonds financing public school 
     capital expenditures) is amended by striking ``$5,000,000'' 
     the second place it appears and inserting ``$10,000,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after December 31, 2001.

     SEC. 1002. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY 
                   BONDS AS EXEMPT FACILITY BONDS.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to exempt facility bond) is amended by 
     striking ``or'' at the end of paragraph (11), by striking the 
     period at the end of paragraph (12) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(13) qualified public educational facilities.''.
       (b) Qualified Public Educational Facilities.--Section 142 
     (relating to exempt facility bond) is amended by adding at 
     the end the following new subsection:
       ``(k) Qualified Public Educational Facilities.--
       ``(1) In general.--For purposes of subsection (a)(13), the 
     term `qualified public educational facility' means any school 
     facility which is--
       ``(A) part of a public elementary school or a public 
     secondary school, and
       ``(B) owned by a private, for-profit corporation pursuant 
     to a public-private partnership agreement with a State or 
     local educational agency described in paragraph (2).
       ``(2) Public-private partnership agreement described.--A 
     public-private partnership agreement is described in this 
     paragraph if it is an agreement--
       ``(A) under which the corporation agrees--
       ``(i) to do 1 or more of the following: construct, 
     rehabilitate, refurbish, or equip a school facility, and
       ``(ii) at the end of the term of the agreement, to transfer 
     the school facility to such agency for no additional 
     consideration, and
       ``(B) the term of which does not exceed the term of the 
     issue to be used to provide the school facility.
       ``(3) School facility.--For purposes of this subsection, 
     the term `school facility' means--
       ``(A) any school building,
       ``(B) any functionally related and subordinate facility and 
     land with respect to such building, including any stadium or 
     other facility primarily used for school events, and
       ``(C) any property, to which section 168 applies (or would 
     apply but for section 179), for use in a facility described 
     in subparagraph (A) or (B).
       ``(4) Public schools.--For purposes of this subsection, the 
     terms `elementary school' and `secondary school' have the 
     meanings given such terms by section 14101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8801), as in 
     effect on the date of the enactment of this subsection.
       ``(5) Annual aggregate face amount of tax-exempt 
     financing.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(13) if the aggregate face 
     amount of bonds issued by the State pursuant thereto (when 
     added to the aggregate face amount of bonds previously so 
     issued during the calendar year) exceeds an amount equal to 
     the greater of--
       ``(i) $10 multiplied by the State population, or
       ``(ii) $5,000,000.
       ``(B) Allocation rules.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph, the State may allocate the amount described in 
     subparagraph (A) for any calendar year in such manner as the 
     State determines appropriate.
       ``(ii) Rules for carryforward of unused limitation.--A 
     State may elect to carry forward an unused limitation for any 
     calendar year for 3 calendar years following the calendar 
     year in which the unused limitation arose under rules similar 
     to the rules of section 146(f), except that the only purpose 
     for which the carryforward may be elected is the issuance of 
     exempt facility bonds described in subsection (a)(13).''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) (relating to exception for certain 
     bonds) is amended--
       (1) by striking ``or (12)'' and inserting ``(12), or 
     (13)'', and
       (2) by striking ``and environmental enhancements of 
     hydroelectric generating facilities'' and inserting 
     ``environmental enhancements of hydroelectric generating 
     facilities, and qualified public educational facilities''.
       (d) Exemption From Limitation on Use for Land 
     Acquisition.--Section 147(h) (relating to certain rules not 
     to apply to mortgage revenue bonds, qualified student loan 
     bonds, and qualified 501(c)(3) bonds) is amended by adding at 
     the end the following new paragraph:
       ``(3) Exempt facility bonds for qualified public-private 
     schools.--Subsection (c) shall not apply to any exempt 
     facility bond issued as part of an issue described in section 
     142(a)(13) (relating to qualified public educational 
     facilities).''.
       (e) Conforming Amendment.--The heading for section 147(h) 
     is amended by striking ``Mortgage Revenue Bonds, Qualified 
     Student Loan Bonds, and Qualified 501(c)(3) Bonds'' and 
     inserting ``Certain Bonds''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2001.
                                  ____

  SA 551. Mr. HUTCHINSON 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:

TITLE X--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC SCHOOL 
                              CONSTRUCTION

     SEC. 1001. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION 
                   FOR GOVERNMENTAL BONDS USED TO FINANCE 
                   EDUCATIONAL FACILITIES.

       (a) In General.--Section 148(f)(4)(D)(vii) (relating to 
     increase in exception for bonds financing public school 
     capital expenditures) is amended by striking ``$5,000,000'' 
     the second place it appears and inserting ``$10,000,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after December 31, 2001.

     SEC. 1002. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY 
                   BONDS AS EXEMPT FACILITY BONDS.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 (relating to exempt facility bond) is amended by 
     striking ``or'' at the end of paragraph (11), by striking the 
     period at the end of paragraph (12) and inserting ``, or'', 
     and by adding at the end the following new paragraph:
       ``(13) qualified public educational facilities.''.
       (b) Qualified Public Educational Facilities.--Section 142 
     (relating to exempt facility bond) is amended by adding at 
     the end the following new subsection:
       ``(k) Qualified Public Educational Facilities.--
       ``(1) In general.--For purposes of subsection (a)(13), the 
     term `qualified public educational facility' means any school 
     facility which is--
       ``(A) part of a public elementary school or a public 
     secondary school, and
       ``(B) owned by a private, for-profit corporation pursuant 
     to a public-private partnership agreement with a State or 
     local educational agency described in paragraph (2).
       ``(2) Public-private partnership agreement described.--A 
     public-private partnership agreement is described in this 
     paragraph if it is an agreement--
       ``(A) under which the corporation agrees--
       ``(i) to do 1 or more of the following: construct, 
     rehabilitate, refurbish, or equip a school facility, and

[[Page 7726]]

       ``(ii) at the end of the term of the agreement, to transfer 
     the school facility to such agency for no additional 
     consideration, and
       ``(B) the term of which does not exceed the term of the 
     issue to be used to provide the school facility.
       ``(3) School facility.--For purposes of this subsection, 
     the term `school facility' means--
       ``(A) any school building,
       ``(B) any functionally related and subordinate facility and 
     land with respect to such building, including any stadium or 
     other facility primarily used for school events, and
       ``(C) any property, to which section 168 applies (or would 
     apply but for section 179), for use in a facility described 
     in subparagraph (A) or (B).
       ``(4) Public schools.--For purposes of this subsection, the 
     terms `elementary school' and `secondary school' have the 
     meanings given such terms by section 14101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 8801), as in 
     effect on the date of the enactment of this subsection.
       ``(5) Annual aggregate face amount of tax-exempt 
     financing.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(13) if the aggregate face 
     amount of bonds issued by the State pursuant thereto (when 
     added to the aggregate face amount of bonds previously so 
     issued during the calendar year) exceeds an amount equal to 
     the greater of--
       ``(i) $10 multiplied by the State population, or
       ``(ii) $5,000,000.
       ``(B) Allocation rules.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph, the State may allocate the amount described in 
     subparagraph (A) for any calendar year in such manner as the 
     State determines appropriate.
       ``(ii) Rules for carryforward of unused limitation.--A 
     State may elect to carry forward an unused limitation for any 
     calendar year for 3 calendar years following the calendar 
     year in which the unused limitation arose under rules similar 
     to the rules of section 146(f), except that the only purpose 
     for which the carryforward may be elected is the issuance of 
     exempt facility bonds described in subsection (a)(13).''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) (relating to exception for certain 
     bonds) is amended--
       (1) by striking ``or (12)'' and inserting ``(12), or 
     (13)'', and
       (2) by striking ``and environmental enhancements of 
     hydroelectric generating facilities'' and inserting 
     ``environmental enhancements of hydroelectric generating 
     facilities, and qualified public educational facilities''.
       (d) Exemption From Limitation on Use for Land 
     Acquisition.--Section 147(h) (relating to certain rules not 
     to apply to mortgage revenue bonds, qualified student loan 
     bonds, and qualified 501(c)(3) bonds) is amended by adding at 
     the end the following new paragraph:
       ``(3) Exempt facility bonds for qualified public-private 
     schools.--Subsection (c) shall not apply to any exempt 
     facility bond issued as part of an issue described in section 
     142(a)(13) (relating to qualified public educational 
     facilities).''.
       (e) Conforming Amendment.--The heading for section 147(h) 
     is amended by striking ``Mortgage Revenue Bonds, Qualified 
     Student Loan Bonds, and Qualified 501(c)(3) Bonds'' and 
     inserting ``Certain Bonds''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2001.
                                  ____

  SA 552. Mr. HATCH 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 end of title IX, add the following:

     SEC. 902. EDUCATIONAL USE COPYRIGHT EXEMPTION.

       (a) Short Title.--This section may be cited as the 
     ``Technology, Education and Copyright Harmonization Act of 
     2001''.
       (b) Exemption of Certain Performances and Displays for 
     Educational Uses.--Section 110 of title 17, United States 
     Code, is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) except with respect to a work produced or marketed 
     primarily for performance or display as part of mediated 
     instructional activities transmitted via digital networks, or 
     a performance or display that is given by means of a copy or 
     phonorecord that is not lawfully made and acquired under this 
     title, and the transmitting government body or accredited 
     nonprofit educational institution knew or had reason to 
     believe was not lawfully made and acquired, the performance 
     of a nondramatic literary or musical work or reasonable and 
     limited portions of any other work, or display of a work in 
     an amount comparable to that which is typically displayed in 
     the course of a live classroom session, by or in the course 
     of a transmission, if--
       ``(A) the performance or display is made by, at the 
     direction of, or under the actual supervision of an 
     instructor as an integral part of a class session offered as 
     a regular part of the systematic mediated instructional 
     activities of a governmental body or an accredited nonprofit 
     educational institution; and
       ``(B) the performance or display is directly related and of 
     material assistance to the teaching content of the 
     transmission; and
       ``(C) the transmission is made solely for, and, to the 
     extent technologically feasible, the reception of such 
     transmission is limited to--
       ``(i) students officially enrolled in the course for which 
     the transmission is made; or
       ``(ii) officers or employees of governmental bodies as a 
     part of their official duties or employment; and
       ``(D) the transmitting body or institution--
       ``(i) institutes policies regarding copyright, provides 
     informational materials to faculty, students, and relevant 
     staff members that accurately describe, and promote 
     compliance with, the laws of the United States relating to 
     copyright, and provides notice to students that materials 
     used in connection with the course may be subject to 
     copyright protection; and
       ``(ii) in the case of digital transmissions--

       ``(I) applies technological measures that, in the ordinary 
     course of their operations, prevent--

       ``(aa) retention of the work in accessible form by 
     recipients of the transmission from the transmitting body or 
     institution for longer than the class session; and
       ``(bb) unauthorized further dissemination of the work in 
     accessible form by such recipients to others; and

       ``(II) does not engage in conduct that could reasonably be 
     expected to interfere with technological measures used by 
     copyright owners to prevent such retention or unauthorized 
     further dissemination;''; and

       (2) by adding at the end the following:
       ``In paragraph (2), the term `mediated instructional 
     activities' with respect to the performance or display of a 
     work by digital transmission under this section refers to 
     activities that use such work as an integral part of the 
     class experience, controlled by or under the actual 
     supervision of the instructor and analogous to the type of 
     performance or display that would take place in a live 
     classroom setting. The term does not refer to activities that 
     use, in 1 or more class sessions of a single course, such 
     works as textbooks, course packs, or other material in any 
     media, copies or phonorecords of which are typically 
     purchased or acquired by the students in higher education for 
     their independent use and retention or are typically 
     purchased or acquired for elementary and secondary students 
     for their possession and independent use.
       ``For purposes of paragraph (2), accreditation--
       ``(A) with respect to an institution providing post-
     secondary education, shall be as determined by a regional or 
     national accrediting agency recognized by the Council on 
     Higher Education Accreditation or the United States 
     Department of Education; and
       ``(B) with respect to an institution providing elementary 
     or secondary education, shall be as recognized by the 
     applicable state certification or licensing procedures.
       ``For purposes of paragraph (2), no governmental body or 
     accredited nonprofit educational institution and no recipient 
     identified under paragraph (2)(C) shall be liable for 
     infringement by reason of the transient or temporary storage 
     of material carried out through the automatic technical 
     process of a digital transmission of the performance or 
     display of that material as authorized under paragraph (2). 
     No such material stored on the system or network controlled 
     or operated by the transmitting body or institution under 
     this paragraph shall be maintained on such system or network 
     in a manner ordinarily accessible to anyone other than 
     anticipated recipients. No such copy shall be maintained on 
     the system or network in a manner ordinarily accessible to 
     such anticipated recipients for a longer period than is 
     reasonably necessary to facilitate the transmissions for 
     which it was made.''.
       (c) Ephemeral Recordings.--
       (1) In general.--Section 112 of title 17, United States 
     Code, is amended--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by inserting after subsection (e) the following:
       ``(f)(1) Notwithstanding the provisions of section 106, and 
     without limiting the application of subsection (b), it is not 
     an infringement of copyright for a governmental body or other 
     nonprofit educational institution entitled under section 
     110(2) to transmit a performance or display to make copies or 
     phonorecords of a work that is in digital form and, solely to 
     the extent permitted in paragraph (2), of a work that is in 
     analog form, embodying the performance or display to be used 
     for making transmissions authorized under section 110(2), 
     if--
       ``(A) such copies or phonorecords are retained and used 
     solely by the body or institution that made them, and no 
     further copies or phonorecords are reproduced from them, 
     except as authorized under section 110(2); and

[[Page 7727]]

       ``(B) such copies or phonorecords are used solely for 
     transmissions authorized under section 110(2).
       ``(2) This subsection does not authorize the conversion of 
     print or other analog versions of works into digital formats, 
     except that such conversion is permitted hereunder, only with 
     respect to the amount of such works authorized to be 
     performed or displayed under section 110(2), if--
       ``(A) no digital version of the work is available to the 
     institution; or
       ``(B) the digital version of the work that is available to 
     the institution is subject to technological protection 
     measures that prevent its use for section 110(2).''.
       (2) Technical and conforming amendment.--Section 802(c) of 
     title 17, United States Code, is amended in the third 
     sentence by striking ``section 112(f)'' and inserting 
     ``section 112(g)''.

     SEC. 4. REPORT.

       (A) Copyright Office Report.--Not later than 3 years after 
     the date of enactment of this Act, the Register of Copyrights 
     shall conduct a study and, after consultation with 
     representatives of accredited for-profit educational 
     institutions, accredited non-profit educational institutions, 
     and copyright owners, submit a report to Congress on the 
     status of distance education programs run by accredited for-
     profit educational institutions, including--
       (1) the extent to which accredited for-profit educational 
     institutions are engaging in such programs;
       (2) the extent to which an extension of the provisions of 
     this Act to accredited for-profit educational institutions 
     would enhance the number, scope, and quality of such 
     programs;
       (3) the policy considerations involved in extending the 
     provisions of this Act to accredited for-profit educational 
     institutions;
       (4) the effect such an extension would be likely to have on 
     the market for copyrighted works and the incentive to create 
     such works;
       (5) whether such an extension would be consistent with 
     United States treaty obligations; and
       (6) such other issues relating to relating to distance 
     education through interactive digital networks by accredited 
     for-profit educational institutions that the Register of 
     Copyrights considers appropriate.
       ``(b) PTO Report.--Not later than 180 days after the date 
     of enactment of this Act and after a period for public 
     comment, the Undersecretary of Commerce for Intellectual 
     Property, after consultations and in conjunction with the 
     Director of National Institute of Standards and Technology 
     and the Register of Copyrights, shall identify and submit to 
     the Committees on the Judiciary of the Senate and the House 
     of Representatives a list of identified technological 
     protection systems or standards that would be the most 
     effective in protecting digitized copyrighted works and 
     preventing infringement of copyright for use by educational 
     institutions.
                                  ____

  SA 553. Mr. HUTCHINSON 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 696, between lines 18 and 19, insert the following:

     ``SEC. 5351. SHORT TITLE.

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

     ``SEC. 5352. PURPOSE.

       ``The purpose of this subpart is to allow States and local 
     educational agencies the flexibility--
       ``(1) to target Federal funds to Federal programs that most 
     effectively address the unique needs of States and 
     localities; and
       ``(2) to transfer Federal funds allocated to other 
     activities to allocations for activities authorized under 
     title I programs.

     ``SEC. 5353. TRANSFERABILITY OF FUNDS.

       ``(a) Transfers by States.--
       ``(1) In general.--In accordance with this subpart, a State 
     may transfer up 75 percent of the nonadministrative State 
     funds allocated to the State for use for State-level 
     activities under each of the following provisions to 1 or 
     more of the State's allocations under any other of such 
     provisions:
       ``(A) Part A of title II, relating to teachers.
       ``(B) Supart 4 of part B of this title, relating to 
     innovative education.
       ``(C) Part C of title II, relating to technology.
       ``(D) Part A of title IV, relating to safe and drug-free 
     schools and communities.
       ``(E) Part F of title I, relating to 21st Century Community 
     Learning Centers.
       ``(F) Part A of title III, relating to bilingual education.
       ``(2) Supplemental funds for title i.--In accordance with 
     this subpart, a State may transfer any funds allocated to the 
     State under a provision listed in paragraph (1) to its 
     allocation under title I.
       ``(b) Transfers by Local Educational Agencies.--
       ``(1) Authority to transfer funds.--
       ``(A) In general.--In accordance with this subpart, a local 
     educational agency (except a local educational agency 
     identified for improvement under section 1116(d)(3) or 
     subject to corrective action under section 1116(d)(6)) may 
     transfer not more than 50 percent of the funds allocated to 
     it under each of the provisions listed in paragraph (2) for a 
     fiscal year to 1 or more of its allocations for such fiscal 
     year under any other provision listed in paragraph (2).
       ``(B) Agencies identified for improvement.--A local 
     educational agency identified for improvement under section 
     1116(d)(3) may transfer in accordance with this subpart not 
     more than 30 percent of the funds allocated to it under each 
     of the provisions listed in paragraph (2)--
       ``(i) to its allocation for school improvement under 
     section 1003;
       ``(ii) to any other allocation if such transferred funds 
     are used only for local educational agency improvement 
     activities consistent with section 1116(d).
       ``(C) Supplemental funds for title i.--In accordance with 
     this subpart, a local educational agency may transfer funds 
     allocated to such agency under a provision listed in 
     paragraph (2) to its allocation under title I.
       ``(2) Applicable provisions.--A local educational agency 
     may transfer funds under subparagraph (A) or (B) from 
     allocations made under each of the following provisions:
       ``(A) Part A of title II.
       ``(B) Subpart 4 of part B of title V, relating to 
     innovative education.
       ``(C) Part A of title IV, relating to safe and drug-free 
     schools and communities.
       ``(D) Part A of title III, relating to bilingual education.
       ``(c) No Transfer of Title I Funds.--A State or a local 
     educational agency may not transfer under this subpart to any 
     other program any funds allocated to it under title I.
       ``(d) Modification of Plans and Applications; 
     Notification.--
       ``(1) State transfers.--Each State that makes a transfer of 
     funds under this section shall--
       ``(A) modify to account for such transfer each State plan, 
     or application submitted by the State, to which such funds 
     relate;
       ``(B) not later than 30 days after the date of such 
     transfer, submit a copy of such modified plan or application 
     to the Secretary; and
       ``(C) not later than 30 days before the effective date of 
     such transfer, notify the Secretary of such transfer.
       ``(2) Local transfers.--Each local educational agency that 
     makes a transfer under this section shall--
       ``(A) modify to account for such transfer each local plan, 
     or application submitted by the agency, to which such funds 
     relate;
       ``(B) not later than 30 days after the date of such 
     transfer, submit a copy of such modified plan or application 
     to the State; and
       ``(C) not later than 30 days before the effective date of 
     such transfer, notify the State of such transfer.
       ``(f) Applicable Rules.--
       ``(1) In general.--Except as otherwise provided in this 
     subpart, funds transferred under this section are subject to 
     each of the rules and requirements applicable to the funds 
     allocated by the Secretary under the provision to which the 
     transferred funds are transferred.
       ``(2) Consultation.--Each State educational agency or local 
     educational agency that transfers funds under this section 
     shall conduct consultations in accordance with section 6(c), 
     if such transfer transfers funds from a program that provides 
     for the participation of students, teachers, or other 
     educational personnel, from private schools.
                                  ____

  SA 554. Mr. HUTCHINSON (for himself and 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:

       At the appropriate place, insert the following:

     SEC.   . SENSE OF THE SENATE REGARDING EDUCATIONAL TAX RELIEF 
                   FOR FAMILIES.

       (A) Findings.--The Senate finds the following:
       (1) Education Savings Accounts (ESAs) are one of the first 
     serious federal efforts to encourage parents to save for 
     their children's education.
       (2) ESAs would benefit all students directly, whether they 
     attend public or private schools.
       (3) The new opportunities offered by ESAs will help 
     children excel in school and encourage parents, other 
     interested adults as well as third party contributors to 
     participate directly in each child's education.
       (4) ESAs will help families pay for essential educational 
     expenses, such as home computers, tutoring, transportation, 
     after-school programs and tuition.
       (5) According to the U.S. Bureau of Labor Statistics' 1997 
     Consumer Expenditure Survey (CES), over 11 million families 
     with children could benefit from these accounts.
       (6) In addition, according to the CES, the 11 million 
     families who stand to benefit from ESAs live in every region 
     of the country, with over 87% of those families living in 
     urban and suburban areas.
       (7) President George W. Bush has made the expansion of ESAs 
     a top priority of his Administration.

[[Page 7728]]

       (8) ESAs have passed the United States Congress in both the 
     105th and 106th Congress under the leadership of the late 
     Senator Paul Coverdell of Georgia.
       (9) The Senate Finance Committee reported favorably the 
     Affordable Education Act of 2001, S. 763, on April 24, 2001, 
     which included the Coverdell Education Savings Accounts.
       (B) Sense of the Senate.--It is the sense of the Senate 
     that the Congress should--
       (1) expeditiously pass the Coverdell Education Savings 
     Accounts, as contained in S. 763.
                                  ____

  SA 555. Mr. HUTCHINSON 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 end of title IX, add the following:

     ``SEC. 902. SENSE OF THE SENATE REGARDING DEPARTMENT OF 
                   EDUCATION PROGRAM TO PROMOTE ACCESS OF ARMED 
                   FORCES RECRUITERS TO STUDENT DIRECTORY 
                   INFORMATION.

       ``(a) Findings.--The Senate makes the following findings:
       ``(1) Service in the Armed Forces of the United States is 
     voluntary.
       ``(2) Recruiting quality persons in the numbers necessary 
     to maintain the strengths of the Armed Forces authorized by 
     Congress is vital to the United States national defense.
       ``(3) Recruiting quality servicemembers is very 
     challenging, and as a result, Armed Forces recruiters must 
     devote extraordinary time and effort to their work in order 
     to fill monthly requirements for immediate accessions.
       ``(4) In meeting goals for recruiting high quality men and 
     women, each of the Armed Forces faces intense competition 
     from the other Armed Forces, from the private sector, and 
     from institutions offering postsecondary education.
       ``(5) Despite a variety of innovative approaches taken by 
     recruiters, and the extensive benefits that are available to 
     those who join the Armed Forces, it is becoming increasingly 
     difficult for the Armed Forces to meet recruiting goals.
       ``(6) A number of high schools have denied recruiters 
     access to students or to student directory information.
       ``(7) In 1999, the Army was denied access on 4,515 
     occasions, the Navy was denied access on 4,364 occasions, the 
     Marine Corps was denied access on 4,884 occasions, and the 
     Air Force was denied access on 5,465 occasions.
       ``(8) As of the beginning of 2000, nearly 25 percent of all 
     high schools in the United States did not release student 
     directory information requested by Armed Forces recruiters.
       ``(9) In testimony presented to the Committee on Armed 
     Services of the Senate, recruiters stated that the single 
     biggest obstacle to carrying out the recruiting mission was 
     denial of access to student directory information, as the 
     student directory is the basic tool of the recruiter.
       ``(10) Denying recruiters direct access to students and to 
     student directory information unfairly hurts the youth of the 
     United States, as it prevents students from receiving 
     important information on the education and training benefits 
     offered by the Armed Forces and impairs students' 
     decisionmaking on careers by limiting the information on the 
     options available to them.
       ``(11) Denying recruiters direct access to students and to 
     student directory information undermines United States 
     national defense by making it more difficult to recruit high 
     quality young Americans in numbers sufficient to maintain the 
     readiness of the Armed Forces and to provide for the national 
     defense.
       ``(12) Section 503 of title 10, United States Code, 
     requires local educational agencies, as of July 1, 2002, to 
     provide recruiters access to secondary schools on the same 
     basis that those agencies provide access to representatives 
     of colleges, universities, and private sector employers.
       ``(b) Sense of the Senate.--It is the sense of the Senate 
     that the Secretary of Education, in consultation with the 
     Secretary of Defense, should, not later than July 2, 2001, 
     establish a year-long campaign to educate principals, school 
     administrators, and other educators regarding career 
     opportunities in the Armed Forces, and the access standard 
     required under section 503 of title 10, United States Code.
                                  ____

  SA 556. Mr. HUTCHINSON 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 29, between lines 14 and 15, insert the following:

     ``SEC. 16. ADDITIONAL LIMITATIONS AND PROTECTIONS REGARDING 
                   PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

       ``(a) Applicability of Act to Private and Home Schools.--
       ``(1) In general.--Except as otherwise provided in this 
     section, nothing in this Act shall be construed to effect a 
     private school or home school, whether or not a home school 
     is treated as a home school under State law.
       ``(2) Construction of superseded provision.--Section 11 
     shall have no force or effect.
       ``(b) Participation of Private and Home School Students in 
     Student Assessments.--No student of a private school or home 
     school shall be required to participate in any State 
     assessment if the State or local educational agency concerned 
     receives funds under this Act.
       ``(c) Applicability to Private, Religions, and Home Schools 
     of General Provision Regarding Recipient Nonpublic Schools.--
       ``(1) In general.--Nothing in this Act or any other Act 
     administered by the Secretary 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. Private, religious, and home schools 
     may not be barred from participation in programs and services 
     under this Act or any other Act administered by the 
     Secretary.
       ``(2) Construction of superseded provision.--Section 12 
     shall have no force or effect.
       ``(d) Applicability of Gun-Free School Provisions to Home 
     Schools.--Notwithstanding any provision of part B of title 
     IV, for purposes of that part, the term `school' shall not 
     include a home school, regardless of whether or not a home 
     school is treated as a private school or home school under 
     State law.
       ``(e) State and LEA Mandates Regarding Private and Home 
     School Curricula.--No State or local educational agency that 
     receives funds under this Act may mandate, direct, or control 
     the curriculum of a private or home school, regardless of 
     whether or not a home school is treated as a private school 
     or home school under State law.''.
                                  ____

  SA 557. Mr. HUTCHINSON 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 29, between lines 14 and 15, insert the following:

     ``SEC. 16. ADDITIONAL LIMITATIONS.

       ``(a) National Testing.--Notwithstanding any other 
     provision of this Act or any other provision of law, no funds 
     available to the Department or otherwise available under this 
     Act may be used for any purpose relating to a nationwide test 
     in reading, mathematics, or any other subject, including test 
     development, pilot testing, field testing, test 
     implementation, test administration, test distribution, or 
     any other purpose.
       ``(b) Mandatory National Testing or Certification of 
     Teachers.--Notwithstanding any other provision of this Act or 
     any other provision of law, no funds available to the 
     Department or otherwise available under this Act may be used 
     for any purpose relating to a mandatory nationwide test or 
     certification of teachers or education paraprofessionals, 
     including any planning, development, implementation, or 
     administration of such test or certification.
       ``(c) Development of Database of Personally Identifiable 
     Information.--Nothing in this Act shall be construed to 
     authorize the development of a nationwide database of 
     personally identifiable information on individuals involved 
     in studies or other collections of data under this Act.''.
                                  ____

  SA 558. Mr. HUTCHINSON 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:

                 TITLE __--EDUCATION SAVINGS INCENTIVES

     SEC. __00. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     title 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 Internal Revenue Code of 1986.

     SEC. __01. MODIFICATIONS TO EDUCATION INDIVIDUAL RETIREMENT 
                   ACCOUNTS.

       (a) Maximum Annual Contributions.--
       (1) In general.--Section 530(b)(1)(A)(iii) (defining 
     education individual retirement account) is amended by 
     striking ``$500'' and inserting ``$2,000''.
       (2) Conforming amendment.--Section 4973(e)(1)(A) is amended 
     by striking ``$500'' and inserting ``$2,000''.
       (b) Modification of AGI Limits To Remove Marriage 
     Penalty.--Section 530(c)(1) (relating to reduction in 
     permitted contributions based on adjusted gross income) is 
     amended--
       (1) by striking ``$150,000'' in subparagraph (A)(ii) and 
     inserting ``$190,000'', and

[[Page 7729]]

       (2) by striking ``$10,000'' in subparagraph (B) and 
     inserting ``$30,000''.
       (c) Tax-Free Expenditures for Elementary and Secondary 
     School Expenses.--
       (1) In general.--Section 530(b)(2) (defining qualified 
     higher education expenses) is amended to read as follows:
       ``(2) Qualified education expenses.--
       ``(A) In general.--The term `qualified education expenses' 
     means--
       ``(i) qualified higher education expenses (as defined in 
     section 529(e)(3)), and
       ``(ii) qualified elementary and secondary education 
     expenses (as defined in paragraph (4)).
       ``(B) Qualified state tuition programs.--Such term shall 
     include any contribution to a qualified State tuition program 
     (as defined in section 529(b)) on behalf of the designated 
     beneficiary (as defined in section 529(e)(1)); but there 
     shall be no increase in the investment in the contract for 
     purposes of applying section 72 by reason of any portion of 
     such contribution which is not includible in gross income by 
     reason of subsection (d)(2).''.
       (2) Qualified elementary and secondary education 
     expenses.--Section 530(b) (relating to definitions and 
     special rules) is amended by adding at the end the following 
     new paragraph:
       ``(4) Qualified elementary and secondary education 
     expenses.--
       ``(A) In general.--The term `qualified elementary and 
     secondary education expenses' means--
       ``(i) expenses for tuition, fees, academic tutoring, 
     special needs services, books, supplies, computer equipment 
     (including related software and services), and other 
     equipment which are incurred in connection with the 
     enrollment or attendance of the designated beneficiary of the 
     trust as an elementary or secondary school student at a 
     public, private, or religious school, and
       ``(ii) expenses for room and board, uniforms, 
     transportation, and supplementary items and services 
     (including extended day programs) which are required or 
     provided by a public, private, or religious school in 
     connection with such enrollment or attendance.
       ``(B) School.--The term `school' means any school which 
     provides elementary education or secondary education 
     (kindergarten through grade 12), as determined under State 
     law.''.
       (3) Conforming amendments.--Section 530 is amended--
       (A) by striking ``higher'' each place it appears in 
     subsections (b)(1) and (d)(2), and
       (B) by striking ``higher'' in the heading for subsection 
     (d)(2).
       (d) Waiver of Age Limitations for Children With Special 
     Needs.--Section 530(b)(1) (defining education individual 
     retirement account) is amended by adding at the end the 
     following flush sentence:
     ``The age limitations in subparagraphs (A)(ii) and (E), and 
     paragraphs (5) and (6) of subsection (d), shall not apply to 
     any designated beneficiary with special needs (as determined 
     under regulations prescribed by the Secretary).''.
       (e) Entities Permitted To Contribute to Accounts.--Section 
     530(c)(1) (relating to reduction in permitted contributions 
     based on adjusted gross income) is amended by striking ``The 
     maximum amount which a contributor'' and inserting ``In the 
     case of a contributor who is an individual, the maximum 
     amount the contributor''.
       (f) Time When Contributions Deemed Made.--
       (1) In general.--Section 530(b) (relating to definitions 
     and special rules), as amended by subsection (c)(2), is 
     amended by adding at the end the following new paragraph:
       ``(5) Time when contributions deemed made.--An individual 
     shall be deemed to have made a contribution to an education 
     individual retirement account on the last day of the 
     preceding taxable year if the contribution is made on account 
     of such taxable year and is made not later than the time 
     prescribed by law for filing the return for such taxable year 
     (not including extensions thereof).''.
       (2) Extension of time to return excess contributions.--
     Subparagraph (C) of section 530(d)(4) (relating to additional 
     tax for distributions not used for educational expenses) is 
     amended--
       (A) by striking clause (i) and inserting the following new 
     clause:
       ``(i) such distribution is made before the first day of the 
     sixth month of the taxable year following the taxable year, 
     and'', and
       (B) by striking ``due date of return'' in the heading and 
     inserting ``certain date''.
       (g) Coordination With Hope and Lifetime Learning Credits 
     and Qualified Tuition Programs.--
       (1) In general.--Section 530(d)(2)(C) is amended to read as 
     follows:
       ``(C) Coordination with hope and lifetime learning credits 
     and qualified tuition programs.--For purposes of subparagraph 
     (A)--
       ``(i) Credit coordination.--The total amount of qualified 
     higher education expenses with respect to an individual for 
     the taxable year shall be reduced--

       ``(I) as provided in section 25A(g)(2), and
       ``(II) by the amount of such expenses which were taken into 
     account in determining the credit allowed to the taxpayer or 
     any other person under section 25A.

       ``(ii) Coordination with qualified tuition programs.--If, 
     with respect to an individual for any taxable year--

       ``(I) the aggregate distributions during such year to which 
     subparagraph (A) and section 529(c)(3)(B) apply, exceed
       ``(II) the total amount of qualified education expenses 
     (after the application of clause (i)) for such year,

     the taxpayer shall allocate such expenses among such 
     distributions for purposes of determining the amount of the 
     exclusion under subparagraph (A) and section 529(c)(3)(B).''.
       (2) Conforming amendments.--
       (A) Subsection (e) of section 25A is amended to read as 
     follows:
       ``(e) Election Not To Have Section Apply.--A taxpayer may 
     elect not to have this section apply with respect to the 
     qualified tuition and related expenses of an individual for 
     any taxable year.''.
       (B) Section 135(d)(2)(A) is amended by striking 
     ``allowable'' and inserting ``allowed''.
       (C) Section 530(d)(2)(D) is amended--
       (i) by striking ``or credit'', and
       (ii) by striking ``credit or'' in the heading.
       (D) Section 4973(e)(1) is amended by adding ``and'' at the 
     end of subparagraph (A), by striking subparagraph (B), and by 
     redesignating subparagraph (C) as subparagraph (B).
       (h) Renaming Education Individual Retirement Accounts as 
     Coverdell Education Savings Accounts.--
       (1) In general.--
       (A) Section 530 (as amended by the preceding provisions of 
     this section) is amended by striking ``an education 
     individual retirement account'' each place it appears and 
     inserting ``a Coverdell education savings account''.
       (B) Section 530(a) is amended--
       (i) by striking ``An education individual retirement 
     account'' and inserting ``A Coverdell education savings 
     account'', and
       (ii) by striking ``the education individual retirement 
     account'' and inserting ``the Coverdell education savings 
     account''.
       (C) Section 530(b)(1) is amended--
       (i) by striking ``education individual retirement account'' 
     in the text and inserting ``Coverdell education savings 
     account'', and
       (ii) by striking ``Education individual retirement 
     account'' in the heading and inserting ``Coverdell education 
     savings account''.
       (D) Sections 530(d)(5) and 530(e) are amended by striking 
     ``any education individual retirement account'' each place it 
     appears and inserting ``any Coverdell education savings 
     account''.
       (E) The heading for section 530 is amended to read as 
     follows:

     ``SEC. 530. COVERDELL EDUCATION SAVINGS ACCOUNTS.''.

       (F) The item in the table of contents for part VII of 
     subchapter F of chapter 1 relating to section 530 is amended 
     to read as follows:

``Sec. 530. Coverdell education savings accounts.''.

       (2) Conforming amendments.--
       (A) The following provisions are amended by striking ``an 
     education individual retirement'' each place it appears and 
     inserting ``a Coverdell education savings'':
       (i) Section 72(e)(9).
       (ii) Section 135(c)(2)(C).
       (iii) Section 4973(a).
       (iv) Subsections (c) and (e) of section 4975.
       (B) The following provisions are amended by striking 
     ``education individual retirement'' each place it appears in 
     the text and inserting ``Coverdell education savings'':
       (i) Section 26(b)(2)(E).
       (ii) Section 4973(e).
       (iii) Section 6693(a)(2)(D).
       (C) The headings for the following provisions are amended 
     by striking ``education individual retirement accounts'' each 
     place it appears and inserting ``Coverdell education savings 
     accounts''.
       (i) Section 72(e)(9).
       (ii) Section 135(c)(2)(C).
       (iii) Section 4973(e).
       (iv) Section 4975(c)(5).
       (i) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2001.
       (2) Subsection (h).--The amendments made by subsection (h) 
     shall take effect on the date of the enactment of this Act.

     SEC. __02. EXCLUSION FROM INCOME OF CERTAIN AMOUNTS 
                   CONTRIBUTED TO COVERDELL EDUCATION SAVINGS 
                   ACCOUNTS.

       (a) In General.--Section 127 (relating to education 
     assistance programs) is amended by redesignating subsections 
     (d) and (e) as subsections (e) and (f), respectively, and by 
     inserting after subsection (c) the following new subsection:
       ``(d) Qualified Coverdell Education Savings Account 
     Contributions.--
       ``(1) In general.--Gross income of an employee shall not 
     include amounts paid or incurred by the employer for a 
     qualified Coverdell education savings account contribution on 
     behalf of the employee.
       ``(2) Qualified coverdell education savings account 
     contribution.--For purposes of this subsection--

[[Page 7730]]

       ``(A) In general.--The term `qualified Coverdell education 
     savings account contribution' means an amount contributed 
     pursuant to an educational assistance program described in 
     subsection (b) by an employer to a Coverdell education 
     savings account established and maintained for the benefit of 
     an employee or the employee's spouse, or any lineal 
     descendent of either.
       ``(B) Dollar limit.--A contribution by an employer to a 
     Coverdell education savings account shall not be treated as a 
     qualified Coverdell education savings account contribution to 
     the extent that the contribution, when added to prior 
     contributions by the employer during the calendar year to 
     Coverdell education savings accounts established and 
     maintained for the same beneficiary, exceeds $500.
       ``(3) Special rules.--
       ``(A) Contributions not treated as educational assistance 
     in determining maximum exclusion.--For purposes of subsection 
     (a)(2), qualified Coverdell education savings account 
     contributions shall not be treated as educational assistance.
       ``(B) Self-employed not treated as employee.--For purposes 
     of this subsection, subsection (c)(2) shall not apply.
       ``(C) Adjusted gross income phaseout of account 
     contribution not applicable to individual employers.--The 
     limitation under section 530(c) shall not apply to a 
     qualified Coverdell education savings account contribution 
     made by an employer who is an individual.
       ``(D) Contributions not treated as an investment in the 
     contract.--For purposes of section 530(d), a qualified 
     Coverdell education savings account contribution shall not be 
     treated as an investment in the contract.''.
       (b) Reporting Requirement.--Section 6051(a) (relating to 
     receipts for employees) is amended by striking ``and'' at the 
     end of paragraph (10), by striking the period at the end of 
     paragraph (11) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(12) the amount of any qualified Coverdell education 
     savings account contribution under section 127(d) with 
     respect to such employee.''.
       (c) Conforming Amendment.--Section 221(e)(2)(A) is amended 
     by inserting ``(other than under subsection (d) thereof)'' 
     after ``section 127''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2001.
                                  ____

  SA 559. Mr. McCAIN 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, insert the following:

       TITLE __--EDUCATIONAL CHOICES FOR DISADVANTAGED CHILDREN.

     SEC. __01. PURPOSES.

       The purposes of this title are--
       (1) to assist the District of Columbia to--
       (A) give children from low-income families in the District 
     of Columbia the same choices among all elementary schools and 
     secondary schools and other academic programs as children 
     from wealthier families already have;
       (B) improve schools and other academic programs in the 
     District of Columbia by giving parents in low-income families 
     increased consumer power to choose the schools and programs 
     that the parents determine best fit the needs of their 
     children; and
       (C) more fully engage parents in the District of Columbia 
     in their children's schooling; and
       (2) to demonstrate, through a 3-year grant program, the 
     effects of a voucher program in the District of Columbia that 
     gives parents in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC. __02. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title (other than section __09) $25,000,000 
     for each of fiscal years 2002 through 2005.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section __09 $1,000,000 for each of fiscal years 
     2002 through 2005.

     SEC. __03. PROGRAM AUTHORITY.

       (a) In General.--From amounts made available to carry out 
     this title, the Secretary of Education shall award grants to 
     the District of Columbia to enable the District of Columbia 
     to carry out educational choice programs that provide 
     scholarships, in accordance with this title.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary of Education may reserve not more than 2 percent of 
     the amounts appropriated under section __02(a) for a fiscal 
     year to the District of Columbia Board of Education or other 
     entity that exercises administrative jurisdiction over the 
     District of Columbia public schools, the Superintendent of 
     the District of Columbia public schools, and other school 
     scholarship programs in the District of Columbia, to pay for 
     the costs of administering this title.

     SEC. __04. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified under paragraph (2) 
     shall be considered to be eligible schools under this title. 
     The identification under paragraph (2) shall be carried out 
     by the District of Columbia Board of Education or other 
     entity that exercises administrative jurisdiction over the 
     District of Columbia public schools, the Superintendent of 
     the District of Columbia public schools, and other school 
     scholarship programs in the District of Columbia.
       (2) Determination.--Not later than 180 days after the date 
     of enactment of this title, the District of Columbia shall 
     identify the public elementary schools and secondary schools 
     that are at or below the 25th percentile for academic 
     performance of schools in the District of Columbia.
       (b) Performance.--The District of Columbia shall determine 
     the academic performance of a school under this section based 
     on such criteria as the District of Columbia may consider to 
     be appropriate.

     SEC. __05. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this 
     title, District of Columbia Board of Education shall provide 
     scholarships to the parents of eligible children, in 
     accordance with subsections (b) and (c). The District of 
     Columbia shall ensure that the scholarships may be redeemed 
     for elementary or secondary education for the eligible 
     children at any of a broad variety of public and private 
     schools, including religious schools, in the District of 
     Columbia.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Child.--To be eligible to receive a 
     scholarship under this title, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.
       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this title, 
     the District of Columbia shall provide scholarships for 
     eligible children through a lottery system administered for 
     all eligible schools in the District of Columbia.
       (2) Continuing eligibility.--The District of Columbia shall 
     provide a scholarship in each year of the program to each 
     child who received a scholarship during the previous year of 
     the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line;
       (D) the child is expelled; or
       (E) the child is convicted of possession of a weapon on 
     school grounds, convicted of a violent act against another 
     student or a member of the school's faculty, or convicted of 
     a felony, including felonious drug possession.

     SEC. __06. USES OF FUNDS.

       Any scholarship awarded under this title for a year shall 
     be used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this title;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the District of Columbia determines is capable of 
     providing such services and has an appropriate refund policy; 
     and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC. __07. REQUIREMENT.

       The District of Columbia shall allow lawfully operating 
     public and private elementary schools and secondary schools, 
     including religious schools, if any, serving the area 
     involved to participate in the program.

     SEC. __08. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if the District of Columbia would, in the absence of an 
     educational choice program that is funded under this title, 
     provide services to a participating eligible child under part 
     A of title I of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6311 et seq.), the District of Columbia shall 
     ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect

[[Page 7731]]

     the requirements of part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this title at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary of Education shall 
     promulgate regulations to implement the provisions of 
     subparagraph (A), taking into account the purposes of this 
     title and the nature, variety, and missions of schools and 
     providers that may participate in providing services to 
     children under this title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to the District of Columbia or to the parents of any 
     child under this title in determining whether to provide any 
     other funds from Federal, State, or local resources, or in 
     determining the amount of such assistance, to the District of 
     Columbia or to a school attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary of Education to exercise 
     any direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC. __09. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this title. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this title and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC. __10. ENFORCEMENT.

       (a) Regulations.--The Secretary of Education shall 
     promulgate regulations to enforce the provisions of this 
     title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC. __11. WASTEFUL SPENDING AND FUNDING.

       (a) In General.--The Committee on Finance and the Committee 
     on Appropriations of the Senate and the Committee on Ways and 
     Means and the Committee on Appropriations of the House of 
     Representatives shall identify wasteful spending by the 
     Federal Government as a means of providing funding for this 
     title.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this title, the committees referred to in 
     subsection (a) shall jointly prepare and submit to the 
     Majority and Minority Leaders of the Senate and the Speaker 
     and Minority Leader of the House of Representatives, a report 
     concerning the spending identified under such subsection.
                                  ____

  SA 560. Mrs. BOXER 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:

       At the end of part E of title I, add the following:

     SEC. __. EARLY EDUCATION.

       (a) Short Title.--This section may be cited as the ``Early 
     Education Act of 2001''.
       (b) Findings.--Congress makes the following findings:
       (1) In 1989 the Nation's governors established a goal that 
     all children would have access to high quality early 
     education programs by the year 2000. As of January 1, 2001, 
     this goal has still not been achieved.
       (2) Research suggests that a child's early years are 
     critical to the development of the brain. Early brain 
     development is an important component of educational and 
     intellectual achievement.
       (3) The National Research Council reported that early 
     education opportunities are necessary if children are going 
     to develop the language and literacy skills necessary to 
     learn to read.
       (4) Evaluations of early education programs demonstrate 
     that compared to children with similar backgrounds who have 
     not participated in early education programs, children who 
     participate in such programs--
       (A) perform better on reading and mathematics achievement 
     tests;
       (B) are more likely to stay academically near their grade 
     level and make normal academic progress throughout elementary 
     school;
       (C) are less likely to be held back a grade or require 
     special education services in elementary school;
       (D) show greater learning retention, initiative, 
     creativity, and social competency; and
       (E) are more enthusiastic about school and are more likely 
     to have good attendance records.
       (5) Studies have estimated that for every dollar invested 
     in quality early education, about 7 dollars are saved in 
     later costs.
       (c) Early Education.--Title I (20 U.S.C. 6301 et seq.), as 
     amended in section 151, is further amended by adding at the 
     end the following:

                       ``PART I--EARLY EDUCATION

     ``SEC. 1841. EARLY EDUCATION.

       ``(a) Purpose.--The purpose of this section is to establish 
     a program to develop the foundation of early literacy and 
     numerical training among young children by helping State 
     educational agencies expand the existing education system to 
     include early education for all children.
       ``(b) Definition of Early Education.--In this part, the 
     term `early education' means not less than a half-day of 
     schooling each week day during the academic year preceding 
     the academic year a child enters kindergarten.
       ``(c) Program Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants to not fewer than 10 State educational agencies to 
     enable the State educational agencies to expand the existing 
     education system with programs that provide early education.
       ``(2) Matching requirement.--The amount provided to a State 
     educational agency under paragraph (1) shall not exceed 50 
     percent of the cost of the program described in the 
     application submitted pursuant to subsection (d).
       ``(3) Requirements.--Each program assisted under this 
     section--
       ``(A) shall be carried out by 1 or more local educational 
     agencies, as selected by the State educational agency;
       ``(B) shall be carried out--
       ``(i) in a public school building; or
       ``(ii) in another facility by, or through a contract or 
     agreement with, a local educational agency;
       ``(C) shall be available to all children served by a local 
     educational agency carrying out the program; and
       ``(D) shall only involve instructors who are licensed or 
     certified in accordance with applicable State law.
       ``(d) Application.--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. Each 
     application shall--
       ``(1) include a description of--
       ``(A) the program to be assisted under this section; and
       ``(B) how the program will meet the purpose of this 
     section; and
       ``(2) contain a statement of the total cost of the program 
     and the source of the matching funds for the program.
       ``(e) Secretarial Authority.--In order to carry out the 
     purpose of this section, the Secretary--
       ``(1) shall establish a system for the monitoring and 
     evaluation of, and shall annually report to Congress 
     regarding, the programs funded under this section; and
       ``(2) may establish any other policies, procedures, or 
     requirements, with respect to the programs.
       ``(f) Supplement Not Supplant.--Funds made available under 
     this section shall be used to supplement, not supplant, other 
     Federal, State, or local funds, including funds provided 
     under Federal programs such as the Head Start programs 
     carried out under the Head Start Act and the Even Start 
     Family Literacy Program carried out under part B.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $300,000,000 for each of the fiscal years 2002 through 
     2006.''.
                                  ____

  SA 561. Mrs. BOXER 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 256, line 21, strike ``; and'' and insert a 
     semicolon.
       On page 256, line 24, strike the period and insert ``; 
     and''.
       On page 256, after line 24, add the following:

[[Page 7732]]

       ``(I) an assurance that the eligible organization will, to 
     the extent practicable, carry out the proposed program with 
     community-based organizations, such as the Police Athletic 
     and Activities Leagues, that have a history of providing 
     academically-based after school programs.
                                  ____

  SA 562. Mrs. BOXER 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:

       At the end of title IX, add the following:

     SEC. 902. SENSE OF THE SENATE.

       (a) Findings.--The Senate makes the following findings:
       (1) The aftershool programs provided through 21st Century 
     Community Learning Centers grants are proven strategies that 
     should be encouraged.
       (2) The demand for afterschool education is very high, with 
     over 7,000,000 children without afterschool opportunities.
       (3) Afterschool programs improve education achievement and 
     have widespread support, with over 80 percent of the American 
     people supporting such programs.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) Congress should continue toward the goal of providing 
     the necessary funding for afterschool program by 
     appropriating the authorized level of $1,500,000,000 for 
     fiscal year 2002 to carry out part F title I of the 
     Elementary and Secondary Education Act of 1965; and
       (2) such funding should be the benchmark for future years 
     in order to reach the goal of providing academically enriched 
     activities during after school hours for the 7,000,000 
     children in need.
                                  ____

  SA 563. Mrs. BOXER 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:

       At the end of title IX, add the following:

     SEC. 902. SENSE OF THE SENATE; AUTHORIZATION OF 
                   APPROPRIATIONS.

       (a) Sense of the Senate.--Congress finds that--
       (1) Congress should continue toward the goal of providing 
     the necessary funding for afterschool programs by 
     appropriating the authorized level of $1,500,000 for FY 2002 
     to carry out part F title I of the Elementary and Secondary 
     Education Act of 1965.
       (2) This funding should be the benchmark for future years 
     in order to reach the goal of providing academically enriched 
     activities during after school hours for the 7,000,000 
     children in need.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out part F of Title I of the 
     Elementary and Secondary Education Act of 1965--
       (1) $2,000,000,000 for fiscal year 2003;
       (2) $2,500,000,000 for fiscal year 2004;
       (3) $3,000,000,000 for fiscal year 2005;
       (4) $3,500,000,000 for fiscal year 2006;
       (5) $4,000,000,000 for fiscal year 2007;
       (6) $4,500,000,000 for fiscal year 2008;
                                  ____

  SA 564. Mr. BYRD 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 548, between lines 11 and 12, insert the following:

     ``SEC. 4119. COMMUNITY SERVICE DURING PERIODS OF EXPULSION OR 
                   SUSPENSION.

       ``(a) Requirement for State Law.--Each State receiving 
     Federal funds under this subpart shall have in effect a State 
     law that--
       ``(1) requires each student expelled or suspended from 
     school for a period to participate in a community service 
     activity for the same number of hours as the student would 
     have been in school during that period if the student had not 
     been expelled or suspended;
       ``(2) provides for the community service activity in which 
     the student participates to be--
       ``(A) a community service activity that involves drug and 
     violence prevention, if such an activity is available for the 
     student's participation; or
       ``(B) any similar community service activity, to the extent 
     that an activity described in subparagraph (A) is not 
     available for the student's participation; and
       ``(3) to the extent that the State law authorizes a local 
     educational agency to administer the requirement for 
     community service under the law, requires that the local 
     educational agency designate a single official of that agency 
     to coordinate the administration of the requirement for 
     community service with the schools of that agency and with 
     community organizations concerned with the community service.
       ``(b) Funding.--Funds allocated to a State under this 
     subpart shall be available for the administration of a law 
     described in subsection (a) that is in effect in that State.
                                  ____

  SA 565. 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 893, strike line 14 and insert the following:
     remain available until expended.

                         ``PART B--POVERTY DATA

     ``SEC. 9201. POVERTY DATA ADJUSTMENTS.

       ``Whenever the Secretary uses any data that relates to the 
     incidence of poverty and is produced or published by or for 
     the Secretary of Commerce for subnational, State or substate 
     areas, the Secretary shall adjust the data to account for 
     differences in the cost of living in the areas.''.
                                  ____

  SA 566. 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 145, strike lines 3 through 8 and insert the 
     following:
       ``(B) 40 percent of the average per pupil expenditure in 
     the State, except that--
       ``(i) if the average per pupil expenditure in the State is 
     less than 95 percent of the average per pupil expenditure in 
     the United States, the amount shall be 95 percent of the 
     average per pupil expenditure in the United States; or
       ``(ii) if the average per pupil expenditure in the State is 
     more than 105 percent of the average per pupil expenditure in 
     the United States, the amount shall be 105 percent of the 
     average per pupil expenditure in the United States.
                                  ____

  SA 567. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 90 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) 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 not less than 15 percent 
     and not more than 30 percent; and
       ``(C) 80 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.
                                  ____

  SA 568. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 85 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) 80 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) 75 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.
                                  ____

  SA 569. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 80 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;

[[Page 7733]]

       ``(B) 75 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) 70 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.
                                  ____

  SA 570. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 75 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) 70 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) 65 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.
                                  ____

  SA 571. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 70 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) 65 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) 70 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.
                                  ____

  SA 572. Mrs. BOXER 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:

       At the appropriate place, add the following:

     SEC.  . RIGHT-TO-KNOW ON ARSENIC IN SCHOOL DRINKING WATER.

       Part F of the Safe Drinking Water Act (42 U.S.C. 300j-21 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 1466. NOTICE CONCERNING ARSENIC IN SCHOOL DRINKING 
                   WATER.

       ``Any entity that discharges or releases arsenic into the 
     environment that contributes to the presence of arsenic in 
     the drinking water supply of any public school in a 
     concentration greater than 0.0050 milligrams per liter, as 
     determined by the Administrator, shall submit the parents or 
     guardians of each child enrolled at that school a notice 
     that--
       ``(1) describes the concentration of arsenic in the 
     drinking water of the school; and
       ``(2) includes a summary of the health effects of arsenic, 
     in accordance with guidance issued by the Administrator.''.
                                  ____

  SA 573. Mr. HELMS 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, add the following:

                TITLE SCHOOLCHILDREN'S HEALTH PROTECTION

     SEC. __1. SHORT TITLE.

       This title may be cited as the ``Schoolchildren's Health 
     Protection Act''.

     SEC. __2. SCHOOLCHILDREN'S HEALTH PROTECTION.

       (a) In General.--Notwithstanding any other provision of law 
     (including the specific provisions described in subsection 
     (b)), no funds made available through the Department of 
     Education or the Department of Health and Human Services 
     shall be used for the distribution or provision of postcoital 
     emergency contraception, or the distribution or provision of 
     a prescription for postcoital emergency contraception, to an 
     unemancipated minor, on the premises or in the facilities of 
     any elementary school or secondary school, without the 
     written consent of such minor's parent for, and prior to, 
     each such distribution or provision.
       (b) Specific Provisions.--The specific provisions referred 
     to in subsection (a) are section 330 and title X of the 
     Public Health Service Act (42 U.S.C. 254b, 300 et seq.) and 
     title V and XIX of the Social Security Act (42 U.S.C. 701 et 
     seq., 1396 et seq.).
       (c) Definitions.--In this section:
       (1) Elementary school; secondary school.--The terms 
     ``elementary school'' and ``secondary school'' have the 
     meanings given the terms in section 3 of the Elementary and 
     Secondary Education Act of 1965.
       (2) Postcoital emergency contraception.--The term 
     ``postcoital emergency contraception'' means any of the 
     regimens described in the notice entitled ``Prescription Drug 
     Products; Certain Combined Oral Contraceptives for Use as 
     Postcoital Emergency Contraception'', published in the 
     Federal Register on February 25, 1997, 62 Fed. Reg. 8610 (or 
     any corresponding similar notice).
       (3) Unemancipated minor.--The term ``unemancipated minor'' 
     means an unmarried individual who is 17 years of age or 
     younger and is a dependent, as defined in section 152(a) of 
     the Internal Revenue Code of 1986.
       (4) Written consent.--The term ``written consent'', used 
     with respect to the parental consent described in subsection 
     (a), means written consent by a parent that the postcoital 
     emergency contraception may be distributed or provided to the 
     unemancipated minor of the parent, or a prescription for the 
     contraception may be distributed or provided to such minor.
                                  ____

  SA 574. Mr. HELMS 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, add the following:

            TITLE--EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES

     SEC. __1. SHORT TITLE.

       This title may be cited as the ``Boy Scouts of America 
     Equal Access Act''.

     SEC. __2. EQUAL ACCESS.

       (a) In General.--Notwithstanding any other provision of 
     law, no funds made available through the Department of 
     Education shall be provided to any public elementary school, 
     public secondary school, local educational agency, or State 
     educational agency, if the school or a school served by the 
     agency--
       (1) has a designated open forum; and
       (2) denies equal access or a fair opportunity to meet to, 
     or discriminates against, any group affiliated with the Boy 
     Scouts of America or any other youth group that wishes to 
     conduct a meeting within that designated open forum, on the 
     basis of the membership or leadership criteria of the Boy 
     Scouts of America or of the youth group that prohibit the 
     acceptance of homosexuals, or individuals who reject the Boy 
     Scouts' or the youth group's oath of allegiance to God and 
     country, as members or leaders.
       (b) Termination of Assistance and Other Action.--
       (1) Departmental action.--The Secretary is authorized and 
     directed to effectuate subsection (a) by issuing, and 
     securing compliance with, rules or orders with respect to a 
     public school or agency that receives funds made available 
     through the Department of Education and that denies equal 
     access, or a fair opportunity to meet, or discriminates, as 
     described in subsection (a).
       (2) Procedure.--The Secretary shall issue and secure 
     compliance with the rules or orders, under paragraph (1), in 
     a manner consistent with the procedure used by a Federal 
     department or agency under section 602 of the Civil Rights 
     Act of 1964 (42 U.S.C. 2000d-1).
       (3) Judicial review.--Any action taken by the Secretary 
     under paragraph (1) shall be subject to the judicial review 
     described in section 603 of that Act (42 U.S.C. 2000d-2). Any 
     person aggrieved by the action may obtain that judicial 
     review in the manner, and to the extent, provided in section 
     603 of that Act.
       (c) Definitions and Rule.--
       (1) Definitions.--In this section:
       (A) Elementary school; local educational agency; secondary 
     school; state educational agency.--The terms ``elementary 
     school'', ``local educational agency'', ``secondary school'', 
     and ``State educational agency'' have the meanings given the 
     terms in section 3 of the Elementary and Secondary Education 
     Act of 1965.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Education, acting through the Assistant Secretary for 
     Civil Rights of the Department of Education.
       (C) Youth group.--The term ``youth group'' means any group 
     or organization intended to serve young people under the age 
     of 21.
       (2) Rule.--For purposes of this section, an elementary 
     school or secondary school has a

[[Page 7734]]

     designated open forum whenever the school involved grants an 
     offering to or opportunity for 1 or more youth or community 
     groups to meet on school premises or in school facilities 
     before or after the hours during which attendance at the 
     school is compulsory.
                                  ____

  SA 575. Mr. HARKIN (for himself, Mr. Kerry, Mr. Levin, Mr. Biden, Mr. 
Reid, Mr. Johnson, Mr. Corzine, and Ms. Cantwell) 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. __. PUBLIC SCHOOL REPAIR AND RENOVATION; CHARTER SCHOOL 
                   FACILITY ACQUISITION.

       (a) Short Title.--This section may be cited as the ``Public 
     School Repair and Renovation Act of 2001''.
       (b) Grants for School Renovation.--Title IX, as added by 
     section 901, is amended by adding at the end the following:

                      ``PART B--SCHOOL RENOVATION

     ``SEC. 9201. GRANTS FOR SCHOOL RENOVATION.

       ``(a) In General.--
       ``(1) Allocation of funds.--Of the amount appropriated for 
     each fiscal year under subsection (k), the Secretary of 
     Education shall allocate--
       ``(A) 6.0 percent of such amount for grants to impacted 
     local educational agencies (as defined in paragraph (3)) for 
     school repair, renovation, and construction;
       ``(B) 0.25 percent of such amount for grants to outlying 
     areas for school repair and renovation in high-need schools 
     and communities, allocated on such basis, and subject to such 
     terms and conditions, as the Secretary determines 
     appropriate;
       ``(C) 2 percent of such amount for grants to public 
     entities, private nonprofit entities, and consortia of such 
     entities, for use in accordance with subpart 2 of part C of 
     this title X; and
       ``(D) the remainder to State educational agencies in 
     proportion to the amount each State received under part A of 
     title I for fiscal year 2001, except that no State shall 
     receive less than 0.5 percent of the amount allocated under 
     this subparagraph.
       ``(2) Determination of grant amount.--
       ``(A) Determination of weighted student units.--For 
     purposes of computing the grant amounts under paragraph 
     (1)(A) for fiscal year 2001, the Secretary shall determine 
     the results obtained by the computation made under section 
     8003 with respect to children described in subsection 
     (a)(1)(C) of such section and computed under subsection 
     (a)(2)(B) of such section for such year--
       ``(i) for each impacted local educational agency that 
     receives funds under this section; and
       ``(ii) for all such agencies together.
       ``(B) Computation of payment.--For fiscal year 2002, the 
     Secretary shall calculate the amount of a grant to an 
     impacted local educational agency by--
       ``(i) dividing the amount described in paragraph (1)(A) by 
     the results of the computation described in subparagraph 
     (A)(ii); and
       ``(ii) multiplying the number derived under clause (i) by 
     the results of the computation described in subparagraph 
     (A)(i) for such agency.
       ``(3) Definition.--For purposes of this section, the term 
     `impacted local educational agency' means, for fiscal year 
     2001--
       ``(A) a local educational agency that receives a basic 
     support payment under section 8003(b) for such fiscal year; 
     and
       ``(B) with respect to which the number of children 
     determined under section 8003(a)(1)(C) for the preceding 
     school year constitutes at least 50 percent of the total 
     student enrollment in the schools of the agency during such 
     school year.
       ``(b) Within-State Allocations.--
       ``(1) Administrative costs.--
       ``(A) State educational agency administration.--Except as 
     provided in subparagraph (B), each State educational agency 
     may reserve not more than 1 percent of its allocation under 
     subsection (a)(1)(D) for the purpose of administering the 
     distribution of grants under this subsection.
       ``(B) State entity administration.--If the State 
     educational agency transfers funds to a State entity 
     described in paragraph (2)(A), the agency shall transfer to 
     such entity 0.75 of the amount reserved under this paragraph 
     for the purpose of administering the distribution of grants 
     under this subsection.
       ``(2) Reservation for competitive school repair and 
     renovation grants to local educational agencies.--
       ``(A) In general.--Subject to the reservation under 
     paragraph (1), of the funds allocated to a State educational 
     agency under subsection (a)(1)(D), the State educational 
     agency shall distribute 75 percent of such funds to local 
     educational agencies or, if such State educational agency is 
     not responsible for the financing of education facilities, 
     the agency shall transfer such funds to the State entity 
     responsible for the financing of education facilities 
     (referred to in this section as the `State entity') for 
     distribution by such entity to local educational agencies in 
     accordance with this paragraph, to be used, consistent with 
     subsection (c), for school repair and renovation.
       ``(B) Competitive grants to local educational agencies.--
       ``(i) In general.--The State educational agency or State 
     entity shall carry out a program of competitive grants to 
     local educational agencies for the purpose described in 
     subparagraph (A). Of the total amount available for 
     distribution to such agencies under this paragraph, the State 
     educational agency or State entity, shall, in carrying out 
     the competition--

       ``(I) award to high poverty local educational agencies 
     described in clause (ii), in the aggregate, at least an 
     amount which bears the same relationship to such total amount 
     as the aggregate amount such local educational agencies 
     received under part A of title I for fiscal year 2002 bears 
     to the aggregate amount received for such fiscal year under 
     such part by all local educational agencies in the State;
       ``(II) award to rural local educational agencies in the 
     State, in the aggregate, at least an amount which bears the 
     same relationship to such total amount as the aggregate 
     amount such rural local educational agencies received under 
     part A of title I for fiscal year 2001 bears to the aggregate 
     amount received for such fiscal year under such part by all 
     local educational agencies in the State; and
       ``(III) award the remaining funds to local educational 
     agencies not receiving an award under subclause (I) or (II), 
     including high poverty and rural local educational agencies 
     that did not receive such an award.

       ``(ii) High poverty local educational agencies.--A local 
     educational agency is described in this clause if--

       ``(I) the percentage described in subparagraph (C)(i) with 
     respect to the agency is 30 percent or greater; or
       ``(II) the number of children described in such 
     subparagraph with respect to the agency is at least 10,000.

       ``(C) Criteria for awarding grants.--In awarding 
     competitive grants under this paragraph, a State educational 
     agency or State entity shall take into account the following 
     criteria:
       ``(i) The percentage of poor children 5 to 17 years of age, 
     inclusive, in a local educational agency.
       ``(ii) The need of a local educational agency for school 
     repair and renovation, as demonstrated by the condition of 
     its public school facilities.
       ``(iii) The fiscal capacity of a local educational agency 
     to meet its needs for repair and renovation of public school 
     facilities without assistance under this section, including 
     its ability to raise funds through the use of local bonding 
     capacity and otherwise.
       ``(iv) In the case of a local educational agency that 
     proposes to fund a repair or renovation project for a charter 
     school or schools, the extent to which the school or schools 
     have access to funding for the project through the financing 
     methods available to other public schools or local 
     educational agencies in the State.
       ``(v) The likelihood that the local educational agency will 
     maintain, in good condition, any facility whose repair or 
     renovation is assisted under this section.
       ``(D) Possible matching requirement.--
       ``(i) In general.--A State educational agency or State 
     entity may require local educational agencies to match funds 
     awarded under this subsection.
       ``(ii) Match amount.--The amount of a match described in 
     clause (i) may be established by using a sliding scale that 
     takes into account the relative poverty of the population 
     served by the local educational agency.
       ``(3) Reservation for competitive idea or technology grants 
     to local educational agencies.--
       ``(A) In general.--Subject to the reservation under 
     paragraph (1), of the funds allocated to a State educational 
     agency under subsection (a)(1)(D), the State educational 
     agency shall distribute 25 percent of such funds to local 
     educational agencies through competitive grant processes, to 
     be used for the following:
       ``(i) To carry out activities under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       ``(ii) For technology activities that are carried out in 
     connection with school repair and renovation, including--

       ``(I) wiring;
       ``(II) acquiring hardware and software;
       ``(III) acquiring connectivity linkages and resources; and
       ``(IV) acquiring microwave, fiber optics, cable, and 
     satellite transmission equipment.

       ``(B) Criteria for awarding idea grants.--In awarding 
     competitive grants under subparagraph (A) to be used to carry 
     out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), a State 
     educational agency shall take into account the following 
     criteria:
       ``(i) The need of a local educational agency for additional 
     funds for a student whose individually allocable cost for 
     expenses related

[[Page 7735]]

     to the Individuals with Disabilities Education Act 
     substantially exceeds the State's average per-pupil 
     expenditure (as defined in section 3).
       ``(ii) The need of a local educational agency for 
     additional funds for special education and related services 
     under part B of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1411 et seq.).
       ``(iii) The need of a local educational agency for 
     additional funds for assistive technology devices (as defined 
     in section 602 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1401)) or assistive technology services (as so 
     defined) for children being served under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.).
       ``(iv) The need of a local educational agency for 
     additional funds for activities under part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.) in order for children with disabilities to make 
     progress toward meeting the performance goals and indicators 
     established by the State under section 612(a)(16) of such Act 
     (20 U.S.C. 1412).
       ``(C) Criteria for awarding technology grants.--In awarding 
     competitive grants under subparagraph (A) to be used for 
     technology activities that are carried out in connection with 
     school repair and renovation, a State educational agency 
     shall take into account the need of a local educational 
     agency for additional funds for such activities, including 
     the need for the activities described in subclauses (I) 
     through (IV) of subparagraph (A)(ii).
       ``(c) Rules Applicable to School Repair and Renovation.--
     With respect to funds made available under this section that 
     are used for school repair and renovation, the following 
     rules shall apply:
       ``(1) Permissible uses of funds.--School repair and 
     renovation shall be limited to one or more of the following:
       ``(A) Emergency repairs or renovations to public school 
     facilities only to ensure the health and safety of students 
     and staff, including--
       ``(i) repairing, replacing, or installing roofs, electrical 
     wiring, plumbing systems, sewage systems, windows, or doors;
       ``(ii) repairing, replacing, or installing heating, 
     ventilation, or air conditioning systems (including 
     insulation); and
       ``(iii) bringing public schools into compliance with fire 
     and safety codes.
       ``(B) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 
     et seq.).
       ``(C) School facilities modifications necessary to render 
     public school facilities accessible in order to comply with 
     section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 
     794).
       ``(D) Asbestos abatement or removal from public school 
     facilities.
       ``(E) Implementing measures designed to reduce or eliminate 
     human exposure to lead-based paint hazards through methods 
     including interim controls or abatement or a combination of 
     each.
       ``(F) Renovation, repair, and acquisition needs related to 
     the building infrastructure of a charter school.
       ``(2) Impermissible uses of funds.--No funds received under 
     this section may be used for--
       ``(A) payment of maintenance costs in connection with any 
     projects constructed in whole or part with Federal funds 
     provided under this section;
       ``(B) the construction of new facilities, except for 
     facilities for an impacted local educational agency (as 
     defined in subsection (a)(3)); or
       ``(C) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public.
       ``(3) Charter schools.--A public charter school that 
     constitutes a local educational agency under State law shall 
     be eligible for assistance under the same terms and 
     conditions as any other local educational agency (as defined 
     in section 3).
       ``(4) Supplement, not supplant.--Excluding the uses 
     described in subparagraphs (B) and (C) of paragraph (1), a 
     local educational agency shall use Federal funds subject to 
     this subsection only to supplement the amount of funds that 
     would, in the absence of such Federal funds, be made 
     available from non-Federal sources for school repair and 
     renovation.
       ``(d) Special Rule.--Each local educational agency that 
     receives funds under this section shall ensure that, if it 
     carries out repair or renovation through a contract, any such 
     contract process ensures the maximum number of qualified 
     bidders, including small, minority, and women-owned 
     businesses, through full and open competition.
       ``(e) Public Comment.--Each local educational agency 
     receiving funds under paragraph (2) or (3) of subsection 
     (b)--
       ``(1) shall provide parents, educators, and all other 
     interested members of the community the opportunity to 
     consult on the use of funds received under such paragraph;
       ``(2) shall provide the public with adequate and efficient 
     notice of the opportunity described in paragraph (1) in a 
     widely read and distributed medium; and
       ``(3) shall provide the opportunity described in paragraph 
     (1) in accordance with any applicable State and local law 
     specifying how the comments may be received and how the 
     comments may be reviewed by any member of the public.
       ``(f) Reporting.--
       ``(1) Local reporting.--Each local educational agency 
     receiving funds under subsection (a)(1)(D) shall submit a 
     report to the State educational agency, at such time as the 
     State educational agency may require, describing the use of 
     such funds for--
       ``(A) school repair and renovation (and construction, in 
     the case of an impacted local educational agency (as defined 
     in subsection (a)(3)));
       ``(B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       ``(C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       ``(2) State reporting.--Each State educational agency shall 
     submit to the Secretary of Education, not later than December 
     31, 2003, a report on the use of funds received under 
     subsection (a)(1)(D) by local educational agencies for--
       ``(A) school repair and renovation (and construction, in 
     the case of an impacted local educational agency (as defined 
     in subsection (a)(3)));
       ``(B) activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.); and
       ``(C) technology activities that are carried out in 
     connection with school repair and renovation, including the 
     activities described in subclauses (I) through (IV) of 
     subsection (b)(3)(A)(ii).
       ``(3) Additional reports.--Each entity receiving funds 
     allocated under subsection (a)(1) (A) or (B) shall submit to 
     the Secretary, not later than December 31, 2003, a report on 
     its uses of funds under this section, in such form and 
     containing such information as the Secretary may require.
       ``(g) Applicability of Part B of IDEA.--If a local 
     educational agency uses funds received under this section to 
     carry out activities under part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.), such 
     part (including provisions respecting the participation of 
     private school children), and any other provision of law that 
     applies to such part, shall apply to such use.
       ``(h) Reallocation.--If a State educational agency does not 
     apply for an allocation of funds under subsection (a)(1)(D) 
     for fiscal year 2002, or does not use its entire allocation 
     for such fiscal year, the Secretary may reallocate the amount 
     of the State educational agency's allocation (or the 
     remainder thereof, as the case may be) to the remaining State 
     educational agencies in accordance with subsection (a)(1)(D).
       ``(i) Participation of Private Schools.--
       ``(1) In general.--Section 5342 shall apply to subsection 
     (b)(2) in the same manner as it applies to activities under 
     title VI, except that--
       ``(A) such section shall not apply with respect to the 
     title to any real property renovated or repaired with 
     assistance provided under this section;
       ``(B) the term `services' as used in section 5342 with 
     respect to funds under this section shall be provided only to 
     private, nonprofit elementary or secondary schools with a 
     rate of child poverty of at least 40 percent and may include 
     for purposes of subsection (b)(2) only--
       ``(i) modifications of school facilities necessary to meet 
     the standards applicable to public schools under the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
     seq.);
       ``(ii) modifications of school facilities necessary to meet 
     the standards applicable to public schools under section 504 
     of the Rehabilitation Act of 1973 (29 U.S.C. 794); and
       ``(iii) asbestos abatement or removal from school 
     facilities; and
       ``(C) notwithstanding the requirements of section 5342(b), 
     expenditures for services provided using funds made available 
     under subsection (b)(2) shall be considered equal for 
     purposes of such section if the per-pupil expenditures for 
     services described in subparagraph (B) for students enrolled 
     in private nonprofit elementary and secondary schools that 
     have child poverty rates of at least 40 percent are 
     consistent with the per-pupil expenditures under this section 
     for children enrolled in the public schools in the school 
     district of the local educational agency receiving funds 
     under this section.
       ``(2) Remaining funds.--If the expenditure for services 
     described in paragraph (1)(B) is less than the amount 
     calculated under paragraph (1)(C) because of insufficient 
     need for such services, the remainder shall be available to 
     the local educational agency for renovation and repair of 
     public school facilities.
       ``(3) Application.--If any provision of this section, or 
     the application thereof, to any person or circumstances is 
     judicially determined to be invalid, the provisions of the 
     remainder of the section and the application to other persons 
     or circumstances shall not be affected thereby.
       ``(j) Definitions.--For purposes of this section:
       ``(1) Charter school.--The term `charter school' has the 
     meaning given such term in section 5120(1).

[[Page 7736]]

       ``(2) Poor children and child poverty.--The terms `poor 
     children' and `child poverty' refer to children 5 to 17 years 
     of age, inclusive, who are from families with incomes below 
     the poverty line (as defined by the Office of Management and 
     Budget and revised annually in accordance with section 673(2) 
     of the Community Services Block Grant (42 U.S.C. 9902(2)) 
     applicable to a family of the size involved for the most 
     recent fiscal year for which data satisfactory to the 
     Secretary are available.
       ``(3) Rural local educational agency.--The term `rural 
     local educational agency' means a local educational agency 
     that the State determines is located in a rural area using 
     objective data and a commonly employed definition of the term 
     `rural'.
       ``(4) State.--The term `State' means each of the 50 states, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.
       ``(k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $1,600,000,000 
     for fiscal year 2002, and such sums as may be necessary for 
     each of fiscal years 2003 through 2006.''.
       (c) Charter School Facility Acquisition.--Part A of title 
     V, as amended by section 501, is further amended by adding at 
     the end the following:

 ``Subpart 4--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

     ``SEC. 5161. PURPOSE.

       ``The purpose of this subpart is to provide one-time grants 
     to eligible entities to permit them to demonstrate innovative 
     credit enhancement initiatives that assist charter schools to 
     address the cost of acquiring, constructing, and renovating 
     facilities.

     ``SEC. 5162. GRANTS TO ELIGIBLE ENTITIES.

       ``(a) In General.--The Secretary shall use 100 percent of 
     the amount available to carry out this subpart to award not 
     less than three grants to eligible entities having 
     applications approved under this subpart to demonstrate 
     innovative methods of assisting charter schools to address 
     the cost of acquiring, constructing, and renovating 
     facilities by enhancing the availability of loans or bond 
     financing.
       ``(b) Grantee Selection.--The Secretary shall evaluate each 
     application submitted, and shall make a determination of 
     which are sufficient to merit approval and which are not. The 
     Secretary shall award at least one grant to an eligible 
     entity described in section 5160(2)(A), at least one grant to 
     an eligible entity described in section 5160(2)(B), and at 
     least one grant to an eligible entity described in section 
     5160(2)(C), if applications are submitted that permit the 
     Secretary to do so without approving an application that is 
     not of sufficient quality to merit approval.
       ``(c) Grant Characteristics.--Grants under this subpart 
     shall be of a sufficient size, scope, and quality so as to 
     ensure an effective demonstration of an innovative means of 
     enhancing credit for the financing of charter school 
     acquisition, construction, or renovation.
       ``(d) Special Rule.--In the event the Secretary determines 
     that the funds available are insufficient to permit the 
     Secretary to award not less than three grants in accordance 
     with subsections (a) through (c), such three-grant minimum 
     and the second sentence of subsection (b) shall not apply, 
     and the Secretary may determine the appropriate number of 
     grants to be awarded in accordance with subsection (c).

     ``SEC. 5163. APPLICATIONS.

       ``(a) In General.--To receive a grant under this subpart, 
     an eligible entity shall submit to the Secretary an 
     application in such form as the Secretary may reasonably 
     require.
       ``(b) Contents.--An application under subsection (a) shall 
     contain--
       ``(1) a statement identifying the activities proposed to be 
     undertaken with funds received under this subpart, including 
     how the applicant will determine which charter schools will 
     receive assistance, and how much and what types of assistance 
     charter schools will receive;
       ``(2) a description of the involvement of charter schools 
     in the application's development and the design of the 
     proposed activities;
       ``(3) a description of the applicant's expertise in capital 
     market financing;
       ``(4) a description of how the proposed activities will 
     leverage the maximum amount of private-sector financing 
     capital relative to the amount of government funding used and 
     otherwise enhance credit available to charter schools;
       ``(5) a description of how the applicant possesses 
     sufficient expertise in education to evaluate the likelihood 
     of success of a charter school program for which facilities 
     financing is sought;
       ``(6) in the case of an application submitted by a State 
     governmental entity, a description of the actions that the 
     entity has taken, or will take, to ensure that charter 
     schools within the State receive the funding they need to 
     have adequate facilities; and
       ``(7) such other information as the Secretary may 
     reasonably require.

     ``SEC. 5164. CHARTER SCHOOL OBJECTIVES.

       ``An eligible entity receiving a grant under this subpart 
     shall use the funds deposited in the reserve account 
     established under section 5165(a) to assist one or more 
     charter schools to access private sector capital to 
     accomplish one or both of the following objectives:
       ``(1) The acquisition (by purchase, lease, donation, or 
     otherwise) of an interest (including an interest held by a 
     third party for the benefit of a charter school) in improved 
     or unimproved real property that is necessary to commence or 
     continue the operation of a charter school.
       ``(2) The construction of new facilities, or the 
     renovation, repair, or alteration of existing facilities, 
     necessary to commence or continue the operation of a charter 
     school.

     ``SEC. 5165. RESERVE ACCOUNT.

       ``(a) Use of Funds.--To assist charter schools to 
     accomplish the objectives described in section 5164, an 
     eligible entity receiving a grant under this subpart shall, 
     in accordance with State and local law, directly or 
     indirectly, alone or in collaboration with others, deposit 
     the funds received under this subpart (other than funds used 
     for administrative costs in accordance with section 5166) in 
     a reserve account established and maintained by the entity 
     for this purpose. Amounts deposited in such account shall be 
     used by the entity for one or more of the following purposes:
       ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
     evidences of debt, loans, and interests therein, the proceeds 
     of which are used for an objective described in section 5164.
       ``(2) Guaranteeing and insuring leases of personal and real 
     property for an objective described in section 5164.
       ``(3) Facilitating financing by identifying potential 
     lending sources, encouraging private lending, and other 
     similar activities that directly promote lending to, or for 
     the benefit of, charter schools.
       ``(4) Facilitating the issuance of bonds by charter 
     schools, or by other public entities for the benefit of 
     charter schools, by providing technical, administrative, and 
     other appropriate assistance (including the recruitment of 
     bond counsel, underwriters, and potential investors and the 
     consolidation of multiple charter school projects within a 
     single bond issue).
       ``(b) Investment.--Funds received under this subpart and 
     deposited in the reserve account shall be invested in 
     obligations issued or guaranteed by the United States or a 
     State, or in other similarly low-risk securities.
       ``(c) Reinvestment of Earnings.--Any earnings on funds 
     received under this subpart shall be deposited in the reserve 
     account established under subsection (a) and used in 
     accordance with such subsection.

     ``SEC. 5166. LIMITATION ON ADMINISTRATIVE COSTS.

       An eligible entity may use not more than 0.25 percent of 
     the funds received under this subpart for the administrative 
     costs of carrying out its responsibilities under this 
     subpart.

     ``SEC. 5167. AUDITS AND REPORTS.

       ``(a) Financial Record Maintenance and Audit.--The 
     financial records of each eligible entity receiving a grant 
     under this subpart shall be maintained in accordance with 
     generally accepted accounting principles and shall be subject 
     to an annual audit by an independent public accountant.
       ``(b) Reports.--
       ``(1) Grantee annual reports.--Each eligible entity 
     receiving a grant under this subpart annually shall submit to 
     the Secretary a report of its operations and activities under 
     this subpart.
       ``(2) Contents.--Each such annual report shall include--
       ``(A) a copy of the most recent financial statements, and 
     any accompanying opinion on such statements, prepared by the 
     independent public accountant reviewing the financial records 
     of the eligible entity;
       ``(B) a copy of any report made on an audit of the 
     financial records of the eligible entity that was conducted 
     under subsection (a) during the reporting period;
       ``(C) an evaluation by the eligible entity of the 
     effectiveness of its use of the Federal funds provided under 
     this subpart in leveraging private funds;
       ``(D) a listing and description of the charter schools 
     served during the reporting period;
       ``(E) a description of the activities carried out by the 
     eligible entity to assist charter schools in meeting the 
     objectives set forth in section 5164; and
       ``(F) a description of the characteristics of lenders and 
     other financial institutions participating in the activities 
     undertaken by the eligible entity under this subpart during 
     the reporting period.
       ``(3) Secretarial report.--The Secretary shall review the 
     reports submitted under paragraph (1) and shall provide a 
     comprehensive annual report to Congress on the activities 
     conducted under this subpart.

     ``SEC. 5168. NO FULL FAITH AND CREDIT FOR GRANTEE 
                   OBLIGATIONS.

       ``No financial obligation of an eligible entity entered 
     into pursuant to this subpart (such as an obligation under a 
     guarantee, bond, note, evidence of debt, or loan) shall be an 
     obligation of, or guaranteed in any respect by, the United 
     States. The full faith and credit of the United States is not 
     pledged to the payment of funds which may be required to be 
     paid under any obligation made by an eligible entity pursuant 
     to any provision of this subpart.

[[Page 7737]]



     ``SEC. 5169. RECOVERY OF FUNDS.

       ``(a) In General.--The Secretary, in accordance with 
     chapter 37 of title 31, United States Code, shall collect--
       ``(1) all of the funds in a reserve account established by 
     an eligible entity under section 5165(a) if the Secretary 
     determines, not earlier than 2 years after the date on which 
     the entity first received funds under this subpart, that the 
     entity has failed to make substantial progress in carrying 
     out the purposes described in section 5165(a); or
       ``(2) all or a portion of the funds in a reserve account 
     established by an eligible entity under section 5165(a) if 
     the Secretary determines that the eligible entity has 
     permanently ceased to use all or a portion of the funds in 
     such account to accomplish any purpose described in section 
     5165(a).
       ``(b) Exercise of Authority.--The Secretary shall not 
     exercise the authority provided in subsection (a) to collect 
     from any eligible entity any funds that are being properly 
     used to achieve one or more of the purposes described in 
     section 5165(a).
       ``(c) Procedures.--The provisions of sections 451, 452, and 
     458 of the General Education Provisions Act (20 U.S.C. 1234 
     et seq.) shall apply to the recovery of funds under 
     subsection (a).
       ``(d) Construction.--This section shall not be construed to 
     impair or affect the authority of the Secretary to recover 
     funds under part D of the General Education Provisions Act 
     (20 U.S.C. 1234 et seq.).

     ``SEC. 5170. DEFINITIONS.

       ``In this subpart:
       ``(1) The term `charter school' has the meaning given such 
     term in section 5120.
       ``(2) The term ``eligible entity'' means--
       ``(A) a public entity, such as a State or local 
     governmental entity;
       ``(B) a private nonprofit entity; or
       ``(C) a consortium of entities described in subparagraphs 
     (A) and (B).

     ``SEC. 5171. AUTHORIZATION OF APPROPRIATIONS.

       ``For the purpose of carrying out this subpart, there are 
     authorized to be appropriated $100,000,000 for fiscal year 
     2001.''.
                                  ____

  SA 576. Mr. ENSIGN 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:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. ESEA.

       The provisions of the Jeffords amendment No. 358 (107th 
     Congress) are incorporated into this Act and enacted into 
     law.

TITLE     --NATIONAL COLLEGIATE AND AMATEUR ATHLETIC PROTECTION ACT OF 
                                  2001

     SEC.   01. SHORT TITLE.

       This title may be cited as the ``National Collegiate and 
     Amateur Athletic Protection Act of 2001''.

     SEC.   02. TASK FORCE ON ILLEGAL WAGERING ON AMATEUR AND 
                   COLLEGIATE SPORTING EVENTS.

       (a) Establishment.--The Attorney General shall establish a 
     prosecutorial task force on illegal wagering on amateur and 
     collegiate sporting events (referred to in this section as 
     the ``task force'').
       (b) Duties.--The task force shall--
       (1) coordinate enforcement of Federal laws that prohibit 
     gambling relating to amateur and collegiate athletic events; 
     and
       (2) submit annually, to the House of Representatives and 
     the Senate a report describing specific violations of such 
     laws, prosecutions commenced, and convictions obtained.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $4,000,000 in 
     fiscal year 2002 and $6,000,000 in each of the fiscal years 
     2003 through 2006.

     SEC.   03. INCREASED PENALTIES FOR ILLEGAL SPORTS GAMBLING.

       (a) Interstate Transmission of Bets or Information 
     Assisting in Placing Bets on Sporting Events.--Section 
     1084(a) of title 18, United States Code, is amended by 
     striking ``two'' and inserting ``5''.
       (b) Interstate Transportation of Wagering Paraphernalia.--
     Section 1953(a) of title 18, United States Code, is amended 
     by adding at the end the following: ``If the matter carried 
     or sent in interstate or foreign commerce was intended by the 
     defendant to be used to assist in the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''.
       (c) Illegal Gambling Business.--Section 1955(a) of title 
     18, United States Code, is amended by adding at the end the 
     following: ``If the gambling business included the placing of 
     bets or wagers on any sporting event or contest, the maximum 
     term of imprisonment for the offense shall be 10 years.''.
       (d) Interstate Travel To Promote and Conduct an Illegal 
     Gambling Business.--Section 1952 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(d) If the offense violated paragraph (1) or (3) of 
     subsection (a) and the illegal activity included the placing 
     of bets or wagers on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''.
       (e) Sports Bribery.--Section 224(a) of title 18, United 
     States Code, is amended by adding at the end the following: 
     ``If the purpose of the bribery is to affect the outcome of a 
     bet or wager placed on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''.

     SEC.   04. STUDY ON ILLEGAL SPORTS GAMBLING BEHAVIOR AMONG 
                   MINORS.

       (a) In General.--The Director of the National Institute of 
     Justice shall conduct a study to determine the extent to 
     which minor persons participate in illegal sports gambling 
     activities.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this title, the Director of the National 
     Institute of Justice shall submit to the Speaker of the House 
     of Representatives and the President pro tempore of the 
     Senate, a report--
       (1) describing the extent to which minor persons 
     participate in illegal sports gambling activities; and
       (2) making recommendations on actions that should be taken 
     to curtail participation by minor persons in sports gambling 
     activities.

     SEC.   05. STUDY OF GAMBLING ON COLLEGE AND UNIVERSITY 
                   CAMPUSES.

       (a) Establishment of Panel.--Not later than 90 days after 
     the date of enactment of this title, the Attorney General 
     shall establish a panel, which shall be composed of Federal, 
     State, and local government law enforcement officials, to 
     conduct a study of illegal college sports gambling.
       (b) Contents of Study.--The study conducted by the panel 
     established under subsection (a) shall include an analysis 
     of--
       (1) the scope and prevalence of illegal college sports 
     gambling, including unlawful sports gambling (as defined in 
     section 3702 of title 28, United States Code);
       (2) the role of organized crime in illegal gambling on 
     college sports;
       (3) the role of State regulators and the legal sports books 
     in Nevada in assisting law enforcement to uncover illegal 
     sports gambling and related illegal activities;
       (4) the enforcement and implementation of the Professional 
     and Amateur Sports Protection Act of 1992, including whether 
     it has been adequately enforced;
       (5) the effectiveness of steps taken by institutions of 
     higher education to date, whether individually or through 
     national organizations, to reduce the problem of illegal 
     gambling on college sports;
       (6) the factors that influence the attitudes or levels of 
     awareness of administrators, professors, and students, 
     including student athletes, about illegal gambling on college 
     sports;
       (7) the effectiveness of new countermeasures to reduce 
     illegal gambling on college sports, including related 
     requirements for institutions of higher education and persons 
     receiving Federal education funds;
       (8) potential actions that could be taken by the National 
     Collegiate Athletic Association to address illegal gambling 
     on college and university campuses; and
       (9) other matters relevant to the issue of illegal gambling 
     on college sports as determined by the Attorney General.
       (c) Report to Congress.--Not later than 12 months after the 
     establishment of the panel under this section, the Attorney 
     General shall submit to Congress a report on the study 
     conducted under this section, which shall include--
       (1) recommendations for actions colleges, universities, and 
     the National Collegiate Athletic Association should implement 
     to address the issue of illegal gambling on college sports;
       (2) recommendations for intensive educational campaigns 
     which the National Collegiate Athletic Association could 
     implement to assist in the effort to prevent illegal gambling 
     on college sports;
       (3) recommendations for any Federal and State legislative 
     actions to address the issue of illegal gambling on college 
     sports; and
       (4) recommendations for any administrative or private 
     sector actions to address the issue of illegal gambling on 
     college sports.

     SEC.  06. REDUCTION OF GAMBLING ON COLLEGE CAMPUSES.

       (a) College Programs to Reduce Illegal Gambling.--
       (1) Comprehensive program.--Each institution of higher 
     education (as defined in section 101 of the Higher Education 
     Act (20 U.S.C. 1001)) shall designate 1 or more full-time 
     senior officers of the institution to coordinate the 
     implementation of a comprehensive program, as determined by 
     the Secretary of Education, to reduce illegal gambling and 
     gambling control disorders by students and employees of the 
     institution.
       (2) Annual reporting.--An institution described in 
     paragraph (1) shall annually prepare and submit to the 
     Secretary of Education a report, in a form and manner 
     prescribed by the Secretary, concerning the progress made by 
     the institution to reduce illegal gambling by students and 
     employees of the institution.
       (3) Continued eligibility.--An institution described in 
     paragraph (1) shall make reasonable further progress (as 
     defined by the Secretary of Education) toward the elimination 
     of illegal gambling at the institution as a condition of the 
     institution remaining eligible for assistance and 
     participation in other

[[Page 7738]]

     programs authorized under the Higher Education Act of 1965 
     (20 U.S.C. 1001 et seq.).
       (b) Gambling Enforcement Information and Policies.--
       (1) In general.--Each institution described in subsection 
     (a)(1) shall include--
       (A) statistics and other information on illegal gambling, 
     including gambling over the Internet, in addition to the 
     other criminal offense on which such institution must report 
     pursuant to section 485(f) of the Higher Education Act of 
     1965 (20 U.S.C. 1092(f)) in the form and manner so 
     prescribed; and
       (B) a statement of policy regarding underage and other 
     illegal gambling activity at the institution, in the form and 
     manner prescribed for statements of policy on alcoholic 
     beverages and illegal drugs pursuant to such section 485(f), 
     including a description of any gambling abuse education 
     programs available to students and employees of the 
     institution.
       (2) Review of procedures.--Notwithstanding paragraph (2) of 
     section 485(f) of the Higher Education Act of 1965 (20 U.S.C. 
     1092(f)), the Attorney General, in consultation with the 
     Secretary of Education, shall periodically review the 
     policies, procedures, and practices of institutions described 
     in subsection (a)(1) with respect to campus crimes and 
     security related directly or indirectly to illegal gambling, 
     including the integrity of the athletic contests in which 
     students of the institution participate.
       (c) Zero Tolerance of Illegal Gambling.--
       (1) Revocation of aid.--A recipient of athletically related 
     student aid (as defined in section 485(e)(8) of the Higher 
     Education Act of 1965 (20 U.S.C. 1092(e)(8)) shall cease to 
     be eligible for such aid upon a determination by either the 
     institution of higher education providing such aid, or the 
     applicable amateur sports organization, that the recipient 
     has engaged in illegal gambling activity, including sports 
     bribery, in violation of the policies or by-laws of the 
     institution or organization.
       (2) Report.--An institution of higher education that 
     provides athletically related student aid, and an amateur 
     sports organization that sanctions a competitive game or 
     performance in which 1 or more competitors receives such aid, 
     shall annually report to the Attorney General and the 
     Secretary of Education on actions taken to implement this 
     subsection.

     SEC.  07. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) illegal sports gambling poses a significant threat to 
     youth on college campuses and in society in general;
       (2) State and local governments, the National Collegiate 
     Athletic Association, and other youth, school, and collegiate 
     organizations should provide educational and prevention 
     programs to help youth recognize the dangers of illegal 
     sports gambling and the serious consequences it can have;
       (3) such programs should include public service 
     announcements, especially during tournament and bowl game 
     coverage;
       (4) the National Collegiate Athletic Association and other 
     amateur sports government bodies should adopt mandatory codes 
     of conduct regarding the avoidance and prevention of illegal 
     sports gambling among our youth; and
       (5) the National Collegiate Athletic Association should 
     enlist universities in the United States to develop 
     scientific research on youth sports gambling, and related 
     matters.
                                  ____

  SA 577. Mr. ENSIGN 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:

       Strike all after the first word and insert the following:

     SECTION 1. ESEA.

       The provisions of the Jeffords amendment No. 358 (107th 
     Congress) are incorporated into this Act and enacted into 
     law.

     SEC. 2. BROADCAST OF SPORTS GAMBLING EDUCATION INFORMATION.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Communications Commission 
     shall issue a final rule requiring broadcasters within its 
     jurisdiction to include in any broadcast of a game or 
     performance 1 or more public service announcements on the 
     illegal nature of sports gambling in most States, including 
     over the Internet, in such form and manner as the Commission 
     deems appropriate and sufficient to be certain this 
     information is effectively conveyed to the public as part of 
     the public interest obligation of the broadcaster.
       (b) Telephone Numbers.--Each public service announcement 
     under subsection (a) shall include the display of 1 or more 
     toll-free telephone lines administered by a nonprofit 
     organization to assist persons with a sports wagering problem 
     or other compulsive gambling disorder.
                                  ____

  SA 578. Mr. ENSIGN 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:

       Strike all after the first word and insert the following:

     SEC. 1. ESEA.

       The provisions of the Jeffords amendment No. 358 (107th 
     Congress) are incorporated into this Act and enacted into 
     law.

     SECTION 2. BROADCAST OF SPORTS GAMBLING EDUCATION 
                   INFORMATION.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Federal Communications Commission 
     shall issue a final rule requiring broadcasters within its 
     jurisdiction to include in any broadcast of a game or 
     performance 1 or more public service announcements on the 
     illegal nature of sports gambling in most States, including 
     over the Internet, in such form and manner as the Commission 
     deems appropriate and sufficient to be certain this 
     information is effectively conveyed to the public as part of 
     the public interest obligation of the broadcaster.
       (b) Telephone Numbers.--Each public service announcement 
     under subsection (a) shall include the display of 1 or more 
     toll-free telephone lines administered by a nonprofit 
     organization to assist persons with a sports wagering problem 
     or other compulsive gambling disorder.
                                  ____

  SA 579. Mr. ENSIGN 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:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. ESEA.

       The provisions of the Jeffords amendment No. 358 (107th 
     Congress) are incorporated into this Act and enacted into 
     law.

 TITLE   --NATIONAL COLLEGIATE AND AMATEUR ATHLETIC PROTECTION ACT OF 
                                  2001

     SEC.   01. SHORT TITLE.

       This title may be cited as the ``National Collegiate and 
     Amateur Athletic Protection Act of 2001''.

     SEC.   02. TASK FORCE ON ILLEGAL WAGERING ON AMATEUR AND 
                   COLLEGIATE SPORTING EVENTS.

       (a) Establishment.--The Attorney General shall establish a 
     prosecutorial task force on illegal wagering on amateur and 
     collegiate sporting events (referred to in this section as 
     the ``task force'').
       (b) Duties.--The task force shall--
       (1) coordinate enforcement of Federal laws that prohibit 
     gambling relating to amateur and collegiate athletic events; 
     and
       (2) submit annually, to the House of Representatives and 
     the Senate a report describing specific violations of such 
     laws, prosecutions commenced, and convictions obtained.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $4,000,000 in 
     fiscal year 2002 and $6,000,000 in each of the fiscal years 
     2003 through 2006.

     SEC.    03. INCREASED PENALTIES FOR ILLEGAL SPORTS GAMBLING.

       (a) Interstate Transmission of Bets or Information 
     Assisting in Placing Bets on Sporting Events.--Section 
     1084(a) of title 18, United States Code, is amended by 
     striking ``two'' and inserting ``5''.
       (b) Interstate Transportation of Wagering Paraphernalia.--
     Section 1953(a) of title 18, United States Code, is amended 
     by adding at the end the following: ``If the matter carried 
     or sent in interstate or foreign commerce was intended by the 
     defendant to be used to assist in the placing of bets or 
     wagers on any sporting event or contest, the maximum term of 
     imprisonment for the offense shall be 10 years.''.
       (c) Illegal Gambling Business.--Section 1955(a) of title 
     18, United States Code, is amended by adding at the end the 
     following: ``If the gambling business included the placing of 
     bets or wagers on any sporting event or contest, the maximum 
     term of imprisonment for the offense shall be 10 years.''.
       (d) Interstate Travel To Promote and Conduct an Illegal 
     Gambling Business.--Section 1952 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(d) If the offense violated paragraph (1) or (3) of 
     subsection (a) and the illegal activity included the placing 
     of bets or wagers on any sporting even or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''.
       (e) Sports Bribery.--Section 224(a) of title 18, United 
     States Code, is amended by adding at the end the following: 
     ``If the purpose of the bribery is to affect the outcome of a 
     bet or wager placed on any sporting event or contest, the 
     maximum term of imprisonment for the offense shall be 10 
     years.''.

     SEC.   04. STUDY ON ILLEGAL SPORTS GAMBLING BEHAVIOR AMONG 
                   MINORS.

       (a) In General.--The Director of the National Institute of 
     Justice shall conduct a study to determine the extent to 
     which minors persons participate in illegal sports gambling 
     activities.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this title, the Director of the National 
     Institute of Justice

[[Page 7739]]

     shall submit to the Speaker of the House of Representatives 
     and the President pro tempore of the Senate, a report--
       (1) describing the extent to which minor persons 
     participate in illegal sports gambling activities; and
       (2) making recommendations on actions that should be taken 
     to curtail participation by minor persons in sports gambling 
     activities.

     SEC.  05. STUDY OF GAMBLING ON COLLEGE AND UNIVERSITY 
                   CAMPUSES.

       (a) Establishment of Panel.--Not later than 90 days after 
     the date of enactment of this title, the Attorney General 
     shall establish a panel, which shall be composed of Federal, 
     State, and local government law enforcement officials, to 
     conduct a study of illegal college sports gambling.
       (b) Contents of Study.--The study conducted by the panel 
     established under subsection (a) shall include an analysis 
     of--
       (1) the scope and prevalence of illegal college sports 
     gambling, including unlawful sports gambling (as defined in 
     section 3702 of title 28, United States Code);
       (2) the role of organized crime in illegal gambling on 
     college sports;
       (3) the role of State regulators and the legal sports books 
     in Nevada in assisting law enforcement to uncover illegal 
     sports gambling and related illegal activities;
       (4) the enforcement and implementation of the Professional 
     and Amateur Sports Protection Act of 1992, including whether 
     it has been adequately enforced;
       (5) the effectiveness of steps taken by institutions of 
     higher education to date, whether individually or through 
     national organizations, to reduce the problem of illegal 
     gambling on college sports;
       (6) the factors that influence the attitudes or levels of 
     awareness of administrators, professors, and students, 
     including student athletes, about illegal gambling on college 
     sports;
       (7) the effectiveness of new countermeasures to reduce 
     illegal gambling on college sports, including related 
     requirements for institutions of higher education and persons 
     receiving Federal education funds;
       (8) potential actions that could be taken by the National 
     Collegiate Athletic Association to address illegal gambling 
     on college and university campuses; and
       (9) other matters relevant to the issue of illegal gambling 
     on college sports as determined by the Attorney General.
       (c) Report to Congress.--Not later than 12 months after the 
     establishment of the panel under this section, the Attorney 
     General shall submit to Congress a report on the study 
     conducted under this section, which shall include--
       (1) recommendation for actions colleges, universities, and 
     the National Collegiate Athletic Association should implement 
     to address the issue of illegal gambling on college sports;
       (2) recommendations for intensive educational campaigns 
     which the National Collegiate Athletic Association could 
     implement to assist in the effort to prevent illegal gambling 
     on college sports;
       (3) recommendations for any Federal and State legislative 
     actions to address the issue of illegal gambling on college 
     sports; and
       (4) recommendations for any administrative or private 
     sector actions to address the issue of illegal gambling on 
     college sports.

     SEC.  06. REDUCTION OF GAMBLING ON COLLEGE CAMPUSES.

       (a) College Programs to Reduce Illegal Gambling.--
       (1) Comprehensive program.--Each institution of higher 
     education (as defined in section 101 of the Higher Education 
     Act (20 U.S.C. 1001)) shall designate 1 or more full-time 
     senior officers of the institution to coordinate the 
     implementation of comprehensive program, as determined by the 
     Secretary of Education, to reduce illegal gambling and 
     gambling control disorders by students and employees of the 
     institution.
       (2) Annual reporting.--An institution described in 
     paragraph (1) shall annually prepare and submit to the 
     Secretary of Education a report, in a form and manner 
     prescribed by the Secretary, concerning the progress made by 
     the institution to reduce illegal gambling by students and 
     employees of the institution.
       (3) Continued eligibility.--An institution described in 
     paragraph (1) shall make reasonable further progress (as 
     defined by the Secretary of Education) toward the elimination 
     of illegal gambling at the institution as a condition of the 
     institution remaining eligible for assistance and 
     participation in other programs authorized under the Higher 
     Education Act of 1965 (20 U.S.C. 1001 et seq.).
       (b) Gambling Enforcement Information and Policies.--
       (1) In general.--Each institution described in subsection 
     (a)(1) shall include--
       (A) statistics and other information on illegal gambling, 
     including gambling over the Internet, in addition to the 
     other criminal offense on which such institution must report 
     pursuant to section 485(f) of the Higher Education Act of 
     1965 (20 U.S.C. 1092(f)) in the form and manner so 
     prescribed; and
       (B) a statement of policy regarding underage and other 
     illegal gambling activity at the institution, in the form and 
     manner prescribed for statements of policy on alcoholic 
     beverages and illegal drugs pursuant to such section 485(f), 
     including a description of any gambling abuse education 
     programs available to students and employees of the 
     institution.
       (2) Review of procedures.--Notwithstanding paragraph (2) of 
     section 485(f) of the Higher Education Act of 1965 (20 U.S.C. 
     1092(f)), the Attorney General, in consultation with the 
     Secretary of Education, shall periodically review the 
     policies, procedures, and practices of institutions described 
     in subsection (a)(1) with respect to campus crimes and 
     security related directly or indirectly to illegal gambling, 
     including the integrity of the athletic contests in which 
     students of the institution participate.
       (c) Zero Tolerance of Illegal Gambling.--
       (1) Revocation of aid.--A recipient of athletically related 
     student aid (as defined in section 485(e)(8) of the Higher 
     Education Act of 1965 (20 U.S.C. 1092(e)(8)) shall cease to 
     be eligible for such aid upon a determination by either the 
     institution of higher education providing such aid, or the 
     applicable amateur sports organization, that the recipient 
     has engaged in illegal gambling activity, including sports 
     bribery, in violation of the policies or by-laws of the 
     institution or organization.
       (2) Report.--An institution of higher education that 
     provides athletically related student aid, and an amateur 
     sports organization that sanctions a competitive game or 
     performance in which 1 or more competitors receives such aid, 
     shall annually report to the Attorney General and the 
     Secretary of Education on actions taken to implement this 
     subsection.

     SEC.  07. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) illegal sports gambling poses a significant threat to 
     youth on college campuses and in society in general;
       (2) State and local governments, the National Collegiate 
     Athletic Association, and other youth, school, and collegiate 
     organizations should provide educational and prevention 
     programs to help youth recognize the dangers of illegal 
     sports gambling and the serious consequences it can have;
       (3) such programs should include public service 
     announcements, especially during tournament and bowl game 
     coverage;
       (4) the National Collegiate Athletic Association and other 
     amateur sports governing bodies should adopt mandatory codes 
     of conduct regarding the avoidance and prevention of illegal 
     sports gambling among our youth; and
       (5) the National Collegiate Athletic Association should 
     enlist universities in the United States to develop 
     scientific research on youth sports gambling, and related 
     matters.
                                  ____

  SA 580. Mr. KYL 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. __. CREDIT FOR CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS 
                   WHICH PROVIDE SCHOLARSHIPS FOR STUDENTS 
                   ATTENDING ELEMENTARY AND SECONDARY SCHOOLS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 30B. CREDIT FOR CONTRIBUTIONS TO CHARITABLE 
                   ORGANIZATIONS WHICH PROVIDE SCHOLARSHIPS FOR 
                   STUDENTS ATTENDING ELEMENTARY AND SECONDARY 
                   SCHOOLS.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the qualified charitable 
     contributions of the taxpayer for the taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed $250 ($500, in the case 
     of a joint return).
       ``(c) Qualified Charitable Contribution.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified charitable 
     contribution' means, with respect to any taxable year, the 
     amount allowable as a deduction under section 170 (determined 
     without regard to subsection (d)(1)) for cash contributions 
     to a school tuition organization.
       ``(2) School tuition organization.--
       ``(A) In general.--The term `school tuition organization' 
     means any organization described in section 170(c)(2) if the 
     annual disbursements of the organization for elementary and 
     secondary school scholarships are normally not less than 90 
     percent of the sum of such organization's annual gross income 
     and contributions and gifts.
       ``(B) Elementary and secondary school scholarship.--The 
     term `elementary and secondary school scholarship' means any 
     scholarship excludable from gross income under section 117 
     for expenses related to education at or below the 12th grade.

[[Page 7740]]

       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any contribution for which 
     credit is allowed under this section.
       ``(2) Application with other credits.--The credit allowable 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the regular tax for the taxable year, reduced by the 
     sum of the credits allowable under subpart A and the 
     preceding sections of this subpart, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(3) Controlled groups.--All persons who are treated as 
     one employer under subsection (a) or (b) of section 52 shall 
     be treated as 1 taxpayer for purposes of this section.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 30B. Credit for contributions to charitable organizations which 
              provide scholarships for students attending elementary 
              and secondary schools.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____

  SA 581. Mr. KYL 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. __. CREDIT FOR CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS 
                   WHICH PROVIDE SCHOLARSHIPS FOR STUDENTS 
                   ATTENDING ELEMENTARY AND SECONDARY SCHOOLS.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 30B. CREDIT FOR CONTRIBUTIONS TO CHARITABLE 
                   ORGANIZATIONS WHICH PROVIDE SCHOLARSHIPS FOR 
                   STUDENTS ATTENDING ELEMENTARY AND SECONDARY 
                   SCHOOLS.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the qualified charitable 
     contributions of the taxpayer for the taxable year.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for any taxable year shall not exceed $250 ($500, in the case 
     of a joint return).
       ``(c) Qualified Charitable Contribution.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified charitable 
     contribution' means, with respect to any taxable year, the 
     amount allowable as a deduction under section 170 (determined 
     without regard to subsection (d)(1)) for cash contributions 
     to a school tuition organization.
       ``(2) School tuition organization.--
       ``(A) In general.--The term `school tuition organization' 
     means any organization described in section 170(c)(2) if the 
     annual disbursements of the organization for elementary and 
     secondary school scholarships are normally not less than 90 
     percent of the sum of such organization's annual gross income 
     and contributions and gifts.
       ``(B) Elementary and secondary school scholarship.--The 
     term `elementary and secondary school scholarship' means any 
     scholarship excludable from gross income under section 117 
     for expenses related to education at or below the 12th grade.




       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No deduction shall be 
     allowed under this chapter for any contribution for which 
     credit is allowed under this section.
       ``(2) Application with other credits.--The credit allowable 
     under subsection (a) for any taxable year shall not exceed 
     the excess (if any) of--
       ``(A) the regular tax for the taxable year, reduced by the 
     sum of the credits allowable under subpart A and the 
     preceding sections of this subpart, over
       ``(B) the tentative minimum tax for the taxable year.
       ``(3) Controlled groups.--All persons who are treated as 
     one employer under subsection (a) or (b) of section 52 shall 
     be treated as 1 taxpayer for purposes of this section.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect to have this section not apply for any taxable year.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     B of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 30B. Credit for contributions to charitable organizations which 
              provide scholarships for students attending elementary 
              and secondary schools.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.
                                  ____

  SA 582. Mr. HUTCHINSON submitted an amendment intended to be proposed 
to amendment SA 457 submitted by Mr. Dodd and intended to be proposed 
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:

       In lieu of the matter proposed, insert the following:

     SEC. __. GUIDELINES FOR STUDENT PRIVACY.

       (a) Development of Student Privacy Guidelines.--A State or 
     local educational agency that receives funds under this Act 
     shall develop and adopt guidelines regarding arrangements to 
     protect student privacy that are entered into by the agency 
     with public and private entities that are not schools.
       (b) Notification of Parents of Privacy Guidelines.--The 
     guidelines developed by an educational agency under 
     subsection (a) shall provide for a reasonable notice of the 
     adoption of such guidelines to be given, by the agency or a 
     school under the agency's supervision, to the parents and 
     guardians of students under the jurisdiction of such agency 
     or school. Such notice shall be provided at least annually 
     and within a reasonable period of time after any change in 
     such guidelines.
       (c) Exceptions.--This section shall not apply to the 
     development, evaluation, or provision of educational products 
     or services for or to students or educational institutions, 
     such as the following:
       (1) College or other post-secondary education recruitment 
     or for military recruiting purposes.
       (2) Book clubs, magazines, and programs providing access to 
     other literary products.
       (3) Curriculum and instructional materials used by 
     elementary and secondary schools to teach.
       (4) The development and administration of tests and 
     assessments used by elementary and secondary schools to 
     provide cognitive, evaluative, diagnostic, clinical, 
     aptitude, or achievement information about students (or to 
     generate other statistically useful data for the purpose of 
     securing such tests and assessments) and the subsequent 
     analysis and public release of aggregate data.
       (5) The sale by students of products or services to raise 
     funds for school- or education-related activities.
       (6) Student recognition programs.
       (d) Information Activities by the Secretary.--Once each 
     year, the Secretary shall inform each State educational 
     agency and each local educational agency of the educational 
     agency's obligations under section 438 of the General 
     Education Provisions Act (added by the Family Educational 
     Rights and Privacy Act of 1974; 20 U.S.C. 1232g) and the 
     Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
     6501 et seq.).
       (e) Definitions.--In this section, the terms ``elementary 
     school'', ``local educational agency'', ``secondary school'', 
     ``Secretary'', and ``State educational agency'' have the 
     meanings given those terms in section 3 of the Elementary and 
     Secondary Education Act of 1965.
                                  ____

  SA 583. 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. __. IMPACT AID TECHNICAL AMENDMENTS.

       (a) Federal Property Payments.--Section 8002(h) (20 U.S.C. 
     7702(h)) (as amended by section 1803(c) of the Impact Aid 
     Reauthorization Act of 2000 (as enacted into law by section 1 
     of Public Law 106-398)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and was eligible to 
     receive a payment under section 2 of the Act of September 30, 
     1950'' and inserting ``and that filed, or has been determined 
     pursuant to law to have filed, a timely application and met, 
     or has been determined pursuant to law to meet, the 
     eligibility requirements of section 2(a)(1)(C) of the Act of 
     September 30, 1950''; and
       (B) in subparagraph (B), by striking ``(or if the local 
     educational agency was not eligible to receive a payment 
     under such section 2 for fiscal year 1994,'' and inserting 
     ``(or if the local educational agency did not meet, or has 
     not been determined pursuant to law to meet, the eligibility 
     requirements under section 2(a)(1)(C) of the Act Of September 
     20, 1950, for fiscal year 1994,''.
       (2) in paragraph (2)--
       (A) in subparagraph (A), by inserting before the period the 
     following: ``, or whose application for fiscal year 1995 was 
     deemed by law to be timely filed for the purpose of payments 
     for later years''; and
       (B) in subparagraph (B)(ii), by striking ``for each local 
     educational agency that received

[[Page 7741]]

     a payment under this section for fiscal year 1995'' and 
     inserting ``for each local educational agency described in 
     subparagraph (A)''; and
       (3) in paragraph (4)(B)--
       (A) by striking ``(in the same manner as percentage shares 
     are determined for local educational agencies under paragraph 
     (2)(B)(ii)'' and inserting ``(by dividing the maximum amount 
     that the agency is eligible to receive under subsection (b) 
     by the total of the maximum amounts for all such agencies''; 
     and
       (B) by striking ``, except that for the purpose of 
     calculating a local educational agency's assessed value of 
     the Federal property,'' and inserting ``, except that, for 
     the purpose of calculating a local educational agency's 
     maximum amount under subsection (b),''.
       (b) Calculation of Payment Under Section 8003 for Small 
     Local Educational Agencies.--Section 8003(b)(3)(B)(iv) (20 
     U.S.C. 7703(b)(3)(B)(iv)) (as amended by section 
     1806(b)(2)(C) of the Impact Aid Reauthorization Act of 2000 
     (as enacted into law by section 1 of Public Law 106-398)) is 
     amended by inserting after ``of the State in which the agency 
     is located'' the following: ``or less than the average per 
     pupil expenditure of all the States''.
       (c) State Consideration of Payments in Providing State 
     Aid.--Section 8009(b)(1) (20 U.S.C. 7709 (b)(1)) (as amended 
     by section 1812(b)(1) of the Impact Aid Reauthorization Act 
     of 2000 (as enacted into law by section 1 of Public Law 106-
     398)) is amended by inserting after ``section 
     8003(a)(2)(B))'' the following: ``and, with respect to a 
     local educational agency that receives a payment under 
     section 8003(b)(2), the amount in excess of the amount that 
     the agency would receive if the agency were deemed to be an 
     agency eligible to receive a payment under paragraph (1) of 
     section 8003(b)''.
       (d) Extension of Authorization of Appropriations.--Section 
     8014 (20 U.S.C. 7714) (as amended by section 1817(b)(1) of 
     the Impact Aid Reauthorization Act of 2000 (as enacted into 
     law by section 1 of Public Law 106-398)) is amended--
       (1) in subsection (a), by striking ``three succeeding'' and 
     inserting ``six succeeding''';
       (2) in subsection (b), by striking ``three succeeding'' and 
     inserting ``"six succeeding'';
       (3) in subsection (c), by striking ``three succeeding'' and 
     inserting ``six succeeding'';
       (4) in subsection (e), by striking ``three succeeding'' and 
     inserting ``six succeeding'';
       (5) in subsection (f), by striking ``three succeeding'' and 
     inserting ``six succeeding''; and
       (6) in subsection (g), by striking ``three succeeding'' and 
     inserting ``six succeeding''.
                                  ____

  SA 584. 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 end of title IX, add the following:

                  Subtitle __--Environmental Education

     SEC. 9__1. SHORT TITLE.

       (a) This Subtitle.--This subtitle may be cited as the 
     ``John H. Chafee Environmental Education Act of 2001''.
       (b) National Environmental Education Act.--Section 1(a) of 
     the National Environmental Education Act (20 U.S.C. 5501 
     note) is amended by striking ``National Environmental 
     Education Act'' and inserting ``John H. Chafee Environmental 
     Education Act''.

     SEC. 9__2. OFFICE OF ENVIRONMENTAL EDUCATION.

       Section 4 of the John H. Chafee Environmental Education Act 
     (20 U.S.C. 5503) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by inserting ``objective and 
     scientifically sound'' after ``support'';
       (B) by striking paragraph (6);
       (C) by redesignating paragraphs (7) through (13) as 
     paragraphs (6) through (12), respectively; and
       (D) in paragraph (12) (as so redesignated), by inserting 
     before the period at the end the following: ``through the 
     headquarters and the regional offices of the Agency''; and
       (2) by striking subsection (c) and inserting the following:
       ``(c) Staff.--The Office of Environmental Education shall--
       ``(1) include a headquarters staff of not more than 10 
     full-time equivalent employees; and
       ``(2) be supported by 1 full-time equivalent employee in 
     each regional office of the Agency.
       ``(d) Activities.--The Administrator may carry out the 
     activities described in subsection (b) directly or through 
     awards of grants, cooperative agreements, or contracts.''.

     SEC. 9__3. ENVIRONMENTAL EDUCATION GRANTS.

       Section 6 of the John H. Chafee Environmental Education Act 
     (20 U.S.C. 5505) is amended--
       (1) in the second sentence of subsection (i), by striking 
     ``25 percent'' and inserting ``15 percent''; and
       (2) by adding at the end the following:
       ``(j) Lobbying Activities.--A grant under this section may 
     not be used to support a lobbying activity (as described in 
     the documents issued by the Office of Management and Budget 
     and designated as OMB Circulars No. A-21 and No. A-122).
       ``(k) Guidance Review.--Before the Administrator issues any 
     guidance to grant applicants, the guidance shall be reviewed 
     and approved by the Science Advisory Board of the Agency 
     established by section 8 of the Environmental Research, 
     Development, and Demonstration Authorization Act of 1978 (42 
     U.S.C. 4365).''.

     SEC. 9__4. JOHN H. CHAFEE MEMORIAL FELLOWSHIP PROGRAM.

       (a) In General.--Section 7 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5506) is amended to 
     read as follows:

     ``SEC. 7. JOHN H. CHAFEE MEMORIAL FELLOWSHIP PROGRAM.

       ``(a) Establishment.--There is established the John H. 
     Chafee Memorial Fellowship Program for the award and 
     administration of 5 annual 1-year higher education 
     fellowships in environmental sciences and public policy, to 
     be known as `John H. Chafee Fellowships'.
       ``(b) Purpose.--The purpose of the John H. Chafee Memorial 
     Fellowship Program is to stimulate innovative graduate level 
     study and the development of expertise in complex, relevant, 
     and important environmental issues and effective approaches 
     to addressing those issues through organized programs of 
     guided independent study and environmental research.
       ``(c) Award.--Each John H. Chafee Fellowship shall--
       ``(1) be made available to individual candidates through a 
     sponsoring institution and in accordance with an annual 
     competitive selection process established under subsection 
     (f)(3); and
       ``(2) be in the amount of $25,000.
       ``(d) Focus.--Each John H. Chafee Fellowship shall focus on 
     an environmental, natural resource, or public health 
     protection issue that a sponsoring institution determines to 
     be appropriate.
       ``(e) Sponsoring Institutions.--The John H. Chafee 
     Fellowships may be applied for through any sponsoring 
     institution.
       ``(f) Panel.--
       ``(1) In general.--The National Environmental Education 
     Advisory Council established by section 9(a) shall administer 
     the John H. Chafee Fellowship Panel.
       ``(2) Membership.--The Panel shall consist of 5 members, 
     appointed by a majority vote of members of the National 
     Environmental Education Advisory Council, of whom--
       ``(A) 2 members shall be professional educators in higher 
     education;
       ``(B) 2 members shall be environmental scientists; and
       ``(C) 1 member shall be a public environmental policy 
     analyst.
       ``(3) Duties.--The Panel shall--
       ``(A) establish criteria for a competitive selection 
     process for recipients of John H. Chafee Fellowships;
       ``(B) receive applications for John H. Chafee Fellowships; 
     and
       ``(C) annually review applications and select recipients of 
     John H. Chafee Fellowships.
       ``(g) Distribution of Funds.--The amount of each John H. 
     Chafee Fellowship shall be provided directly to each 
     recipient selected by the Panel upon receipt of a 
     certification from the recipient that the recipient will 
     adhere to a specific and detailed plan of study and research.
       ``(h) Funding.--From amounts made available under section 
     13(b)(1)(C) for each fiscal year, the Office of Environmental 
     Education shall make available--
       ``(1) $125,000 for John H. Chafee Memorial Fellowships; and
       ``(2) $12,500 to pay administrative expenses incurred in 
     carrying out the John H. Chafee Memorial Fellowship 
     Program.''.
       (b) Definitions.--Section 3 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5502) is amended--
       (1) in paragraph (12), by striking ``and'' at the end;
       (2) in paragraph (13), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(14) `Panel' means the John H. Chafee Fellowship Panel 
     established under section 7(f);
       ``(15) `sponsoring institution' means an institution of 
     higher education;''.
       (c) Conforming Amendment.--The table of contents in section 
     1(b) of the John H. Chafee Environmental Education Act (20 
     U.S.C. prec. 5501) is amended by striking the item relating 
     to section 7 and inserting the following:

``Sec. 7. John H. Chafee Memorial Fellowship Program.''.

     SEC. 9__5. NATIONAL ENVIRONMENTAL EDUCATION AWARDS.

       (a) In General.--Section 8 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5507) is amended to 
     read as follows:

     ``SEC. 8. NATIONAL ENVIRONMENTAL EDUCATION AWARDS.

       ``(a) President's Environmental Youth Awards.--The 
     Administrator may establish a program for the granting and 
     administration of awards, to be known as `President's 
     Environmental Youth Awards', to young people in grades 
     kindergarten through 12 to recognize outstanding projects to 
     promote local environmental awareness.

[[Page 7742]]

       ``(b) Teachers' Awards.--
       ``(1) In general.--The Chairman of the Council on 
     Environmental Quality, on behalf of the President, may 
     establish a program for the granting and administration of 
     awards to recognize--
       ``(A) teachers in elementary schools and secondary schools 
     who demonstrate excellence in advancing objective and 
     scientifically sound environmental education through 
     innovative approaches; and
       ``(B) the local educational agencies of the recognized 
     teachers.
       ``(2) Eligibility.--One teacher, and the local education 
     agency employing the teacher, from each State, the District 
     of Columbia, and the Commonwealth of Puerto Rico, shall be 
     eligible to be selected for an award under this 
     subsection.''.
       (b) Definitions.--Section 3 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5502) (as amended by 
     section 9__4(b)) is amended by adding at the end the 
     following:
       ``(16) `elementary school' has the meaning given the term 
     in section 14101 of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 8801);
       ``(17) `secondary school' has the meaning given the term in 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801);''.
       (c) Conforming Amendment.--The table of contents in section 
     1(b) of the John H. Chafee Environmental Education Act (20 
     U.S.C. prec. 5501) is amended by striking the item relating 
     to section 8 and inserting the following:

``Sec. 8. National environmental education awards.''.

     SEC. 9__6. ENVIRONMENTAL EDUCATION ADVISORY COUNCIL AND TASK 
                   FORCE.

       Section 9 of the John H. Chafee Environmental Education Act 
     (20 U.S.C. 5508) is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``(2) The'' and all that follows through 
     the end of the second sentence and inserting the following:
       ``(2) Membership.--
       ``(A) In general.--The Advisory Council shall consist of 
     not more than 11 members appointed by the Administrator after 
     consultation with the Secretary.
       ``(B) Representatives of sectors.--To the maximum extent 
     practicable, the Administrator shall appoint to the Advisory 
     Council at least 2 members to represent each of--
       ``(i) elementary schools and secondary schools;
       ``(ii) colleges and universities;
       ``(iii) not-for-profit organizations involved in 
     environmental education;
       ``(iv) State departments of education and natural 
     resources; and
       ``(v) business and industry.'';
       (B) in the third sentence, by striking ``A representative'' 
     and inserting the following:
       ``(C) Representative of the secretary.--A representative''; 
     and
       (C) in the last sentence, by striking ``The conflict'' and 
     inserting the following:
       ``(D) Conflicts of interest.--The conflict'';
       (2) in subsection (c), by striking paragraph (2) and 
     inserting the following:
       ``(2) Membership.--Membership on the Task Force shall be 
     open to representatives of any Federal agency actively 
     engaged in environmental education.''; and
       (3) in subsection (d), by striking ``(d)(1)'' and all that 
     follows through ``(2) The'' and inserting the following:
       ``(d) Meetings and Reports.--
       ``(1) In general.--The Advisory Council shall--
       ``(A) hold biennial meetings on timely issues regarding 
     environmental education; and
       ``(B) issue a report describing the proceedings of each 
     meeting and recommendations resulting from the meeting.
       ``(2) Review and comment on draft reports.--The''.

     SEC. 9__7. NATIONAL ENVIRONMENTAL LEARNING FOUNDATION.

       (a) Change in Name.--
       (1) In general.--Section 10 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5509) is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``SEC. 10. NATIONAL ENVIRONMENTAL LEARNING FOUNDATION.'';

     and
       (B) in the first sentence of subsection (a)(1)(A), by 
     striking ``National Environmental Education and Training 
     Foundation'' and inserting ``National Environmental Learning 
     Foundation''.
       (2) Conforming amendments.--
       (A) The table of contents in section 1(b) of the John H. 
     Chafee Environmental Education Act (20 U.S.C. prec. 5501) is 
     amended by striking the item relating to section 10 and 
     inserting the following:

``Sec. 10. National Environmental Learning Foundation.''.

       (B) Section 3 of the John H. Chafee Environmental Education 
     Act (20 U.S.C. 5502) (as amended by section 9__4(b)) is 
     amended--
       (i) by striking paragraph (12) and inserting the following:
       ``(12) `Foundation' means the National Environmental 
     Learning Foundation established by section 10;''; and
       (ii) in paragraph (13), by striking ``National 
     Environmental Education and Training Foundation'' and 
     inserting ``Foundation''.
       (b) Number of Directors.--Section 10(b)(1)(A) of the John 
     H. Chafee Environmental Education Act (20 U.S.C. 
     5509(b)(1)(A)) is amended in the first sentence by striking 
     ``13'' and inserting ``19''.
       (c) Acknowledgment of Donors.--Section 10(d) of the John H. 
     Chafee Environmental Education Act (20 U.S.C. 5509(d)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Acknowledgment of donors.--The Foundation may 
     acknowledge receipt of donations by means of a listing of the 
     names of donors in materials distributed by the Foundation, 
     except that any such acknowledgment--
       ``(A) shall not appear in educational material presented to 
     students; and
       ``(B) shall not identify a donor by means of a logo, 
     letterhead, or other corporate commercial symbol, slogan, or 
     product.''.
       (d) Administrative Services and Support.--Section 10(e) of 
     the John H. Chafee Environmental Education Act (20 U.S.C. 
     5509(e)) is amended in the first sentence by striking ``for a 
     period of up to 4 years from the date of enactment of this 
     Act,''.

     SEC. 9__8. THEODORE ROOSEVELT ENVIRONMENTAL STEWARDSHIP GRANT 
                   PROGRAM.

       (a) In General.--The John H. Chafee Environmental Education 
     Act is amended--
       (1) by redesignating section 11 (20 U.S.C. 5510) as section 
     13; and
       (2) by inserting after section 10 the following:

     ``SEC. 11. ENVIRONMENTAL STEWARDSHIP GRANT PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--There is established a grant program to 
     be known as the `Environmental Stewardship Grant Program' 
     (referred to in this section as the `Program') for the award 
     and administration of grants to consortia of institutions of 
     higher education to pay the Federal share of the cost of 
     carrying out collaborative student, campus, and community-
     based environmental stewardship activities.
       ``(2) Federal share.--The Federal share shall be 75 
     percent.
       ``(b) Purpose.--The purpose of the Program is to build 
     awareness of, encourage commitment to, and promote 
     participation in environmental stewardship--
       ``(1) among students at institutions of higher education; 
     and
       ``(2) in the relationship between--
       ``(A) such students and campuses; and
       ``(B) the communities in which the students and campuses 
     are located.
       ``(c) Award.--Grants under the Program shall be made 
     available to consortia of institutions of higher education in 
     accordance with an annual competitive selection process 
     established under subsection (d)(2)(A).
       ``(d) Administration.--
       ``(1) In general.--The Office of Environmental Education 
     established under section 4 shall administer the Program.
       ``(2) Duties.--The Office of Environmental Education 
     shall--
       ``(A) establish criteria for a competitive selection 
     process for recipients of grants under the Program;
       ``(B) receive applications for grants under the Program; 
     and
       ``(C) annually review applications and select recipients of 
     grants under the Program.
       ``(3) Criteria.--In establishing criteria for a competitive 
     selection process for recipients of grants under the Program, 
     the Office of Environmental Education shall include, at a 
     minimum, as criteria, the extent to which a grant will--
       ``(A) directly facilitate environmental stewardship 
     activities, including environmental protection, preservation, 
     or improvement activities; and
       ``(B) stimulate the availability of other funds for those 
     activities.
       ``(e) Conditions on Use of Funds.--With respect to the 
     funds made available to carry out this section under section 
     13(a)(1)--
       ``(1) not fewer than 6 grants each year shall be awarded 
     using those funds; and
       ``(2) no grant made using those funds shall be in an amount 
     that exceeds $500,000.''.
       (b) Definitions.--Section 3 of the John H. Chafee 
     Environmental Education Act (20 U.S.C. 5502) (as amended by 
     section 9__5(b)) is amended by adding at the end the 
     following:
       ``(18) `consortium of institutions of higher education' 
     means a cooperative arrangement among 2 or more institutions 
     of higher education; and
       ``(19) `institution of higher education' has the meaning 
     given the term in section 101 of the Higher Education Act of 
     1965 (20 U.S.C. 1001).''.

     SEC. 9__9. INFORMATION STANDARDS.

       (a) In General.--The John H. Chafee Environmental Education 
     Act is amended by inserting after section 11 (as added by 
     section 9__8(a)(2)) the following:

     ``SEC. 12. INFORMATION STANDARDS.

       ``In disseminating information under this Act, the Office 
     of Environmental Education shall comply with the guidelines 
     issued by the Administrator under section 515 of the Treasury 
     and General Government Appropriations Act, 2001 (44 U.S.C. 
     3516 note; 114 Stat. 2763A-153).''.

[[Page 7743]]

       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the John H. Chafee Environmental Education Act (20 
     U.S.C. prec. 5501) is amended by striking the item relating 
     to section 11 and inserting the following:

``Sec. 11. Environmental Stewardship Grant Program.
``Sec. 12. Information standards.
``Sec. 13. Authorization of appropriations.''.

     SEC. 9__0. AUTHORIZATION OF APPROPRIATIONS.

       Section 13 of the John H. Chafee Environmental Education 
     Act (20 U.S.C. 5510) (as redesignated by section 9__8(a)(1)) 
     is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by striking the section heading and subsections (a) and 
     (b) and inserting the following:

     ``SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to the Environmental Protection Agency to carry out this Act 
     $13,000,000 for each of fiscal years 2002 through 2007, of 
     which--
       ``(1) $3,000,000 for each fiscal year shall be used to 
     carry out section 11; and
       ``(2) $10,000,000 for each fiscal year shall be allocated 
     in accordance with subsection (b).
       ``(b) Limitations.--
       ``(1) In general.--Subject to paragraph (2), of the amounts 
     made available under subsection (a)(2) for each fiscal year--
       ``(A) not more than 25 percent may be used for the 
     activities of the Office of Environmental Education 
     established under section 4;
       ``(B) not more than 25 percent may be used for the 
     operation of the environmental education and training program 
     under section 5;
       ``(C) not less than 40 percent shall be used for 
     environmental education grants under section 6 and for the 
     John H. Chafee Memorial Fellowship Program under section 7; 
     and
       ``(D) 10 percent shall be used for the activities of the 
     Foundation under section 10.
       ``(2) Administrative expenses.--Of the amounts made 
     available under paragraph (1)(A) for each fiscal year, not 
     more than 10 percent may be used for administrative expenses 
     of the Office of Environmental Education.
       ``(c) Expense Report.--As soon as practicable after the end 
     of each fiscal year, the Administrator shall submit to 
     Congress a report describing in detail the activities for 
     which funds appropriated for the fiscal year were 
     expended.''; and
       (3) in subsection (d) (as redesignated by paragraph (1))--
       (A) by striking ``National Environmental Education and 
     Training Foundation'' and inserting ``Foundation''; and
       (B) in paragraph (2), by striking ``section 10(d) of this 
     Act'' and inserting ``section 10(e)''.
                                  ____

  SA 585. Mr. JEFFORDS 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 207, strike line 8 and all that follows through 
     page 212, line 15, and insert 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 early 
     language, literacy, and prereading development of preschool 
     age children, particularly those from low-income families, 
     through strategies and professional development that are 
     based on scientifically based research.
       ``(2) To provide preschool age children with cognitive 
     learning opportunities in high-quality language and 
     literature-rich environments, so that the children can attain 
     the fundamental knowledge and skills necessary for optimal 
     reading development in kindergarten and beyond.
       ``(3) To demonstrate language and literacy activities based 
     on scientifically based research that support the age-
     appropriate development of--
       ``(A) spoken language and oral comprehension abilities;
       ``(B) understanding that spoken language can be analyzed 
     into discrete words, and awareness that words can be broken 
     into sequences of syllables and phonemes;
       ``(C) automatic recognition of letters of the alphabet and 
     understanding that letters or groups of letters 
     systematically represent the component sounds of the 
     language; and
       ``(D) knowledge of the purposes and conventions of print.
       ``(4) To integrate these learning opportunities with 
     learning opportunities at preschools, child care agencies, 
     and Head Start agencies, and with family literacy services.

     ``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 5 years, to 
     eligible applicants to enable the eligible applicants to 
     carry out the authorized activities described in subsection 
     (e).
       ``(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, a child 
     care program, 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 
     preschool age 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 preschool age children;
       ``(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 language skills;
       ``(4) how the proposed project will help staff in the 
     programs to meet the diverse needs of preschool age children 
     in the community better, including such children with limited 
     English proficiency, disabilities, or other special needs;
       ``(5) how the proposed project will help preschool age 
     children, particularly such 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 evaluate the success of 
     the activities supported under this subpart in enhancing the 
     early language, literacy, and prereading development of 
     preschool age children served by the project; and
       ``(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) Authorized Activities.--An eligible applicant that 
     receives a grant under this subpart shall use the funds 
     provided under the grant to carry out the following 
     activities:
       ``(A) Providing preschool age children with high-quality 
     oral language and literature-rich environments in which to 
     acquire language and prereading skills.
       ``(B) Providing professional development that is based on 
     scientifically based research knowledge of early language and 
     reading development for the staff of the eligible applicant 
     and that will assist in developing the preschool age 
     children's--
       ``(i) spoken language (including vocabulary, the contextual 
     use of speech, and syntax) and oral comprehension abilities;
       ``(ii) understanding that spoken language can be analyzed 
     into discrete words, and awareness that words can be broken 
     into sequences of syllables and phonemes;
       ``(iii) automatic recognition of letters of the alphabet 
     and understanding that letters or groups of letters 
     systematically represent the component sounds of the 
     language; and
       ``(iv) knowledge of the purposes and conventions of print.
       ``(C) Identifying and providing activities and 
     instructional materials that are based on scientifically 
     based research for use in developing the skills and abilities 
     described in subparagraph (B).
       ``(D) Acquiring, providing training for, and implementing 
     screening tools or other appropriate measures that are based 
     on scientifically based research to determine whether 
     preschool age children are developing the skills described in 
     this subsection.
       ``(E) Integrating such instructional materials, activities, 
     tools, and measures into the programs offered by the eligible 
     applicant.
       ``(f) 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

[[Page 7744]]

     order to coordinate the activities undertaken under this 
     subpart with preschool age 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. Such report shall include, at a minimum, a 
     description of--
       ``(1) the activities, materials, tools, and measures used 
     by the eligible applicant;
       ``(2) the professional development activities offered to 
     the staff of the eligible applicant who serve preschool age 
     children and the amount of such professional development; and
       ``(3) the results of the evaluation described in section 
     1242(c)(7).

     ``SEC. 1246. EVALUATIONS.

       ``From the total amount appropriated under section 
     1002(b)(3) for the period beginning October 1, 2002 and 
     ending September 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 preschool 
     age children.''.
                                  ____

  SA 586. Mr. JEFFORDS 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 83, strike lines 3 through 9.
                                  ____

  SA 587. Mr. JEFFORDS 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 774 strike line 1 and all that follows through page 
     778, line 21, and insert the following:

                ``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 each of the categories of students 
     described in section 1111(b)(2)(B)(v)(II)--

       ``(I) towards the goal of all such students reaching the 
     proficient level of performance; 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) the progress of all students in the State towards 
     the goal of all students reaching the proficient level of 
     performance, and (beginning with the 2nd year for which data 
     are available for all States) the progress of all students 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 primarily 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(b)(2) (B) and (D) for all 
     students and for each of the categories of students described 
     in section 1111(b)(2)(B)(v)(II); and
       ``(B) beginning with the 2nd year for which data are 
     available on State assessments under the National Assessment 
     of Educational Progress of 4th and 8th grade reading and 
     mathematics, the State has failed to demonstrate an increase 
     in the achievement of each of the categories of students 
     described in section 1111(b)(2)(B)(v)(II).
       ``(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. GRANTS FOR STATE ASSESSMENTS AND RELATED 
                   ACTIVITIES.

       ``(a) State Grants Authorized.--From amounts appropriated 
     under subsection (c) the Secretary shall award grants to 
     States to enable the States to pay the costs of--
       ``(1) developing assessments and standards required by 
     amendments made to this Act by the Better Education for 
     Students and Teachers Act;
       ``(2) working in voluntary partnerships with other States 
     to develop such assessments and standards; and
       ``(3) 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--
       ``(A) 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
       ``(B) administering the assessments required by amendments 
     made to section 1111 by the Better Education for Students and 
     Teachers Act.
       ``(b) Allocations to States.--
       ``(1) In general.--From the amount appropriated to carry 
     out this section for any fiscal year, the Secretary first 
     shall allocate $3,000,000 to each State.
       ``(2) 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.
       ``(3) 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.
       ``(c) Authorization of Appropriations.--For the purposes of 
     carrying out this section, 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.

     ``SEC. 6204. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) 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.
       ``(b) 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.''.
                                  ____

  SA 588. Mr. JEFFORDS submitted an amendment intended to be proposed 
by

[[Page 7745]]

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 74, strike line 24, and insert the following:
     parents and teachers; and
       ``(14) make available to each school served by the agency 
     and assisted under this part models of high quality, 
     effective curriculum that are aligned with the State's 
     standards and developed or identified by the State.''; and
                                  ____

  SA 589. Mr. JEFFORDS 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 83, line 25, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 84, line 4, insert ``, principals, teachers, and 
     other staff in an instructionally useful manner'' after 
     ``schools''.
       On page 84, line 25, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 88, line 6, strike ``meet'' and insert ``make 
     continuous and significant progress towards meeting the goal 
     of all students reaching''.
       On page 90, line 5, insert ``(including problems, if any, 
     in implementing the parental involvement requirements 
     described in section 1118, the professional development 
     requirements described in section 1119, and the 
     responsibilities of the school and local educational agency 
     under the school plan)'' after ``problems''.
       On page 91, line 15, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 92, line 13, insert ``and giving priority to the 
     lowest achieving students'' after ``basis''.
       On page 95, line 9, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 95, beginning with line 13, strike all through page 
     96, line 6, and insert 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); and
       ``(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;
       On page 96, line 7, strike ``(ii)'' and insert ``(iii)''.
       On page 96, line 21, strike ``(iii)'' and insert ``(iv)''.
       On page 96, strike line 23 and all that follows through 
     page 97, line 23.
       On page 97, line 24, strike ``(E)'' and insert ``(D)''.
       On page 98, line 7, strike ``(F)'' and insert ``(E)''.
       On page 98, line 16, strike ``and fails'' and all that 
     follows through ``this paragraph'' on page 98, line 20.
       On page 98, line 25, strike ``(D)'' and insert ``(C)''.
       On page 99, line 6, insert ``(i)'' after ``(B)''.
       On page 99, line 12, strike ``(i)'' and insert ``(I)''.
       On page 99, line 14, strike ``(ii)'' and insert ``(II)''.
       On page 99, line 16, strike ``(iii)'' and insert ``(III)''.
       On page 99, line 19, strike ``(iv)'' and insert ``(IV)''.
       On page 99, line 21, strike ``(v)'' and insert ``(V)''.
       On page 99, between lines 22 and 23, insert the following:
       ``(ii) A rural local agency, as described in section 
     5231(b), may apply to the Secretary for a waiver of the 
     requirements of this subparagraph if the agency submits to 
     the Secretary an alternative plan for making significant 
     changes to improve student performance in the school, such as 
     providing an academically focused after school program for 
     all students, changing school administration, or implementing 
     a research based, proven effective, whole school reform 
     program. The Secretary shall approve or reject an application 
     for a waiver under this subparagraph not later than 30 days 
     after the submission of information required by the Secretary 
     to apply for the waiver. If the Secretary fails to make a 
     determination with respect to the waiver application within 
     such 30 days, the application shall be considered approved by 
     the Secretary.
       On page 100, line 6, strike ``(D)'' and insert ``(C)''.
       On page 100, line 23, strike ``(A)''.
       On page 101, strike lines 5 though 20.
       On page 102, lines 15 and 16, strike ``(7)(C) and subject 
     to paragraph (7)(D)'' and insert ``(5)''.
       On page 102, line 21, strike ``, and that'' and all that 
     follows through ``1111(b)(2)(B)(v)(II),'' on page 102, line 
     25.
       On page 103, line 1, strike ``(D)'' and insert ``(C)''.
       On page 103, line 7, strike ``, and that'' and all that 
     follows through ``disadvantaged students,'' on page 103, line 
     10.
       On page 103, line 20, strike ``(D)'' and insert ``(C)''.
       On page 104, line 22, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 105, line 13, strike ``section 1111(b)(2)(B)'' and 
     insert ``sections 1111(b)(2) (B) and (D)''.
       On page 105, lines 20 and 21, strike ``section 
     1111(b)(2)(B)'' and insert ``sections 1111(b)(2) (B) and 
     (D)''.
       On page 106, between lines 13 and 14, insert the following:
       ``(C) Not later than 30 days after a State educational 
     agency makes an initial determination under subparagraph (A), 
     the State educational agency shall make public a final 
     determination regarding the improvement status of the local 
     educational agency.
       On page 106, lines 22 and 23, strike ``meet proficient 
     levels'' and insert ``make continuous and significant 
     progress towards meeting the goal of all students reaching 
     the proficient level''.
       On page 109, line 15, strike ``(C)'' and insert ``(E)''.
       On page 112, line 16, strike ``(A)''.
       On page 112, line 19, strike ``(3)'' and insert ``(6)''.
       On page 112, strike line 23 and all that follows through 
     page 113, line 2.
       On page 113, line 14, strike ``(D)'' and insert ``(C)''.
       On page 115, line 14, strike ``(D)'' and insert ``(C)''.
                                  ____

  SA 590. Mr. JEFFORDS 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 683, strike lines 12 and 13, and insert the 
     following:
       ``(H) programs to improve the literacy skills of adults, 
     especially the parents of children served by the local 
     educational agency, including adult education and family 
     literacy programs;
       On page 684, line 6, strike ``and''.
       On page 684, line 7, strike the period and insert a 
     semicolon.
       On page 684, between lines 7 and 8, insert the following:
       ``(O) programs that employ research-based cognitive and 
     perceptual development approaches and rely on a diagnostic-
     prescriptive model to improve students' learning of academic 
     content at the preschool, elementary, and secondary levels; 
     and
       ``(P) supplemental educational services as defined in 
     section 1116(f)(6).
                                  ____

  SA 591. Mr. JEFFORDS 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 130, strike line 2, and insert the following:
     quality of professional development; and
       ``(J) provide assistance to teachers for the purpose of 
     meeting certification, licensing, or other requirements 
     needed to become highly qualified as defined in section 
     2102(4).'';
       On page 130, line 5, strike the period and insert ``; and 
     ''.
       On page 130, between lines 5 and 6, insert the following:
       (3) by adding at the end the following:
       ``(j) Requirement.--Each local educational agency that 
     receives funds under this part and serves a school in which 
     50 percent or more of the children are from low income 
     families shall use not less than 5 percent of the funds for 
     each of fiscal years 2002 and fiscal year 2003, and not less 
     than 10 percent of the funds for each subsequent fiscal year, 
     for professional development activities to ensure that 
     teachers who are not highly qualified become highly qualified 
     within 4 years.''.
       On page 127, line 23, insert ``(1)'' after ``(b)''.
       On page 127, line 24, strike ``in paragraph (1),''.
                                  ____

  SA 592. Mr. JEFFORDS 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 29, between lines 14 and 15, insert the following:

     ``SEC. 16. PROHIBITION ON DISCRIMINATION.

       ``Nothing in this Act shall be construed to require, 
     authorize, or permit, the Secretary,

[[Page 7746]]

     or a State, local educational agency, or school to grant to a 
     student, or deny or impose upon a student, any financial or 
     educational benefit or burden, in violation of the fifth or 
     14th amendments to the Constitution or other law relating to 
     discrimination in the provision of federally funded programs 
     or activities.''.
       On page 36, strike lines 21 and 22, strike ``served under 
     this part''.
       On page 36, strike line 24 and all that follows through 
     page 37, line 2, and insert the following:
     guage arts, history, and science, except that--
       ``(i) any State which does not have standards in 
     mathematics or reading or language arts, for public 
     elementary school and secondary school children who are not 
     served under this part, on the date of enactment of the 
     Better Education for Students and Teachers Act shall apply 
     the standards described in subparagraph (A) to such students 
     not later than the beginning of the school year 2002-2003; 
     and
       ``(ii) no State shall be required to meet the requirements 
     under this part
       On page 37, line 18, insert ``and'' after the semicolon.
       On page 37, line 23, strike ``; and'' and insert a period.
       On page 37, strike line 24 and all that follows through 
     page 38, line 4.
       On page 38, line 19, strike ``subparagraph (B)'' and insert 
     ``subparagraphs (B) and (D)''.
       On page 41, strike lines 6 through 8 and insert the 
     following:
       ``(vii) includes school completion or graduation rates for 
     secondary school students and at least 1 other academic 
     indicator, as determined by the State, for elementary school 
     students, except that
       On page 41, line 13, strike ``discretionary''.
       On page 44, lines 13 and 14, strike ``curriculum''.
       On page 45, line 2, strike ``curriculum''.
       On page 46, strike line 20 and all that follows through 
     page 47, line 2.
       On page 47, line 3, strike ``(E)'' and insert ``(D)''.
       On page 47, between lines 6 and 7, insert the following:
       ``(E)(i) beginning not later than school year 2001-2002, 
     measure the proficiency of students served under this part in 
     mathematics and reading or language arts and be administered 
     not less than one time during--
       ``(I) grades 3 through 5;
       ``(II) grades 6 through 9; and
       ``(III) grades 10 through 12;
       ``(ii) beginning not later than school year 2002-2003, 
     measure the proficiency of all students in mathematics and 
     reading or language arts and be administered not less than 
     one time during--
       ``(I) grades 3 through 5;
       ``(II) grades 6 through 9; and
       ``(III) grades 10 through 12;
       ``(iii) beginning not later than school year 2007-2008, 
     measure the proficiency of all students in science and be 
     administered not less than one time during--
       ``(I) grades 3 through 5;
       ``(II) grades 6 through 9; and
       ``(III) grades 10 through 12;
       On page 47, line 8, strike ``annual''.
       On page 47, line 10, insert ``annually'' after 
     ``standards''.
       On page 47, line 11, insert ``, and at least once in grades 
     10 through 12,'' after ``8''.
       On page 47, line 12, insert ``if the tests are aligned with 
     State standards,'' after ``arts,''.
       On page 48, between lines 14 and 15, insert the following:
       ``(G) at the discretion of the State, measure the 
     proficiency of students in academic subjects not described in 
     subparagraphs (E) and (F) in which the State has adopted 
     challenging content and student performance standards;
       On page 48, line 15, strike ``(G)'' and insert ``(H)''.
       On page 50, between lines 7 and 8, insert the following:
       ``(I) beginning not later than school year 2002-2003, 
     provide for the annual assessment of the oral English 
     proficiency of students with limited English proficiency who 
     are served under this part or under title III and who do not 
     participate in the assessment described in clause (iv) of 
     subparagraph (H);
       On page 50, line 8, strike ``(H)'' and insert ``(J)''.
       On page 50, line 17, strike ``(I)'' and insert ``(K)''.
       On page 50, lines 19 and 20, strike ``scores, or'' and 
     insert ``performance on assessments aligned with State 
     standards, and''.
       On page 51, line 1, strike ``(J)'' and insert ``(L)''.
       On page 51, line 20, insert ``, but such measures shall not 
     be the primary or sole indicator of student progress toward 
     meeting State standards'' after ``measures''.
       On page 51, line 21, insert ``Consistent with section 
     1112(b)(1)(D),'' before ``States''.
       On page 52, strike lines 21 and 22 and insert the 
     following:
     is applicable to such agency or school;
       ``(B) the specific steps the State educational agency will 
     take to ensure that both schoolwide programs and targeted 
     assistance schools provide instruction by highly qualified 
     instructional staff as required by sections 1114(b)(1)(C) and 
     1115(c)(1)(F), including steps that the State educational 
     agency will take to ensure that poor and minority children 
     are not taught at higher rates than other children by 
     inexperienced, unqualified, or out of field teachers, and the 
     measures that the State educational agency will use to 
     evaluate and publicly report the progress of the State 
     educational agency with respect to such steps;
       ``(C) how the State educational agency will develop or 
     identify high quality effective curriculum models aligned 
     with State standards and how the State educational agency 
     will disseminate such models to each local educational agency 
     and school within the State; and
       ``(D) such other factors the State deems
       On page 53, line 12, strike ``(i)'' and insert ``(j)''.
       On page 59, lines 16 and 17, strike ``performance 
     standards,'' and insert ``performance standards, a set of 
     high quality annual student assessments aligned to the 
     standards,''.
       On page 59, line 19, insert ``and take such other steps as 
     are needed to assist the State in coming into compliance with 
     this section'' after ``1117''.
       On page 68, line 24, strike ``paraprofessionals'' and 
     insert ``a paraprofessional''.
       On page 69, line 18, insert ``, the setting of State 
     performance standards, the development of measures of 
     adequate yearly progress that are valid and reliable,'' 
     before ``and other''.
                                  ____

  SA 593. Mr. JEFFORDS 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:

       ``(a) In General.--From funds reserved under section 1225, 
     the Secretary shall contract with an independent outside 
     organization for a 5-year, rigorous, scientifically valid, 
     quantitative evaluation of this subpart.
       ``(b) Process.--Such evaluation shall be conducted by an 
     organization outside of the Department that is capable of 
     designing and carrying out an independent evaluation that 
     identifies the effects of specific activities carried out by 
     States and local educational agencies under this subpart on 
     improving reading instruction. Such evaluation shall use only 
     data relating to students served under this subpart and shall 
     take into account factors influencing student performance 
     that are not controlled by teachers or education 
     administrators.
       ``(c) Analysis.--Such evaluation shall include the 
     following:
       ``(1) An analysis of the relationship between each of the 
     essential components of reading instruction and overall 
     reading proficiency.
       ``(2) An analysis of whether assessment tools used by 
     States and local educational agencies measure the essential 
     components of reading instruction.
       ``(3) An analysis of how State reading standards correlate 
     with the essential components of reading instruction.
       ``(4) An analysis of whether the receipt of a discretionary 
     grant under this subpart results in an increase in the number 
     of children who read proficiently.
       ``(5) A measurement of the extent to which specific 
     instructional materials improve reading proficiency.
       ``(6) A measurement of the extent to which specific 
     rigorous diagnostic reading and screening assessment tools 
     assist teachers in identifying specific reading deficiencies.
       ``(7) A measurement of the extent to which professional 
     development programs implemented by States using funds 
     received under this subpart improve reading instruction.
       ``(8) A measurement of how well students preparing to enter 
     the teaching profession are prepared to teach the essential 
     components of reading instruction.
       ``(9) An analysis of changes in students' interest in 
     reading and time spent reading outside of school.
       ``(10) Any other analysis or measurement pertinent to this 
     subpart that is determined to be appropriate by the 
     Secretary.
       ``(d) Program Improvement.--The findings of the evaluation 
     conducted under this section shall be provided to States and 
     local educational agencies on a periodic basis for use in 
     program improvement.
                                  ____

  SA 594. Mr. JEFFORDS 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 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

[[Page 7747]]

     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.--
       ``(1) In general.--For the purpose of carrying out this 
     part, other than section 619, there are authorized to be 
     appropriated, and there are appropriated--
       ``(A) $8,823,685,000 for fiscal year 2002;
       ``(B) $11,323,685,000 for fiscal year 2003;
       ``(C) $13,823,685,000 for fiscal year 2004;
       ``(D) $16,323,685,000 for fiscal year 2005;
       ``(E) $18,823,685,000 for fiscal year 2006;
       ``(F) not more than $21,067,600,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2007;
       ``(G) not more than $21,742,019,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2008;
       ``(H) not more than $22,423,068,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2009;
       ``(I) not more than $23,095,622,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2010; and
       ``(J) not more than $23,751,456,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2011.
       ``(2) Continuation of authorization.--For fiscal year 2012 
     and each fiscal year thereafter, there are authorized to be 
     appropriated such sums as may be necessary for the purpose of 
     carrying out this part, other than section 619.''.
                                  ____

  SA 595. Mr. JEFFORDS 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 end of tile IX, add the following:

     SEC.  . MAINTAINING FUNDING FOR THE INDIVIDUALS WITH 
                   DISABILITIES EDUCATION ACT.

       Section 611 of the Individuals with Disabilities Education 
     Act is amended to add the following new subsection:
       ``(k) Continuation of Authorization.--For fiscal year 2012 
     and each fiscal year thereafter, there are authorized to be 
     appropriated such sums as may be necessary for the purpose of 
     carrying out his part, other than section 619.''.
                                  ____

  SA 596. Mr. JEFFORDS 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. LOAN FORGIVENESS FOR MATHEMATICS AND SCIENCE 
                   TEACHERS.

       (a) FFEL Program.--Section 428J of the Higher Education Act 
     of 1965 (20 U.S.C. 1078-10) is amended by adding at the end 
     the following:
       ``(i) Loan Forgiveness for Teachers of Mathematics and 
     Science.--
       ``(1) Statement of purpose.--It is the purpose of this 
     subsection to encourage individuals who majored in, or 
     obtained a graduate degree in, mathematics or science to 
     teach those subjects in high need schools.
       ``(2) Program authorized.--The Secretary shall carry out a 
     program, through the holder of the loan, of assuming the 
     obligation to repay a qualified loan amount for a loan made 
     under section 428 or 428H, in accordance with paragraph (3), 
     for a borrower whose academic major or graduate degree was in 
     mathematics or science, and who--
       ``(A) has been employed for 5 consecutive complete school 
     years--
       ``(i) in a school that qualifies under section 465(a)(2)(A) 
     for loan cancellation for Perkins loan recipients who teach 
     in such schools; and
       ``(ii) as a full-time teacher of mathematics or science, as 
     certified by the chief administrative officer of the public 
     or nonprofit private elementary school or secondary school in 
     which the borrower is employed;
       ``(B) has not been employed as a full-time teacher in a 
     public or nonprofit private elementary school or secondary 
     school prior to the date of enactment of the Better Education 
     for Students and Teachers Act, other than as part of a 
     teacher preparation or certification program; and
       ``(C) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(3) Qualified loans amount.--
       ``(A) In general.--The Secretary shall repay not more than 
     $17,500 in the aggregate of the loan obligation on a loan 
     made under section 428 or 428H that is outstanding after the 
     completion of the fifth complete school year of teaching 
     described in paragraph (2)(A). No borrower may receive a 
     reduction of loan obligations under both this section and 
     section 460.
       ``(B) Treatment of consolidation loans.--A loan amount for 
     a loan made under section 428C may be a qualified loan amount 
     for the purposes of this paragraph only to the extent that 
     such loan amount was used to repay a Federal Direct Stafford 
     Loan, a Federal Direct Unsubsidized Stafford Loan, or a loan 
     made under section 428 or 428H for a borrower who meets the 
     requirements of paragraph (2), as determined in accordance 
     with regulations prescribed by the Secretary.''.
       (b) Direct Loan Program.--Section 460 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087j) is amended by adding 
     at the end the following:
       ``(i) Loan Forgiveness for Teachers of Mathematics and 
     Science.--
       ``(1) Statement of purpose.--It is the purpose of this 
     subsection to encourage individuals who majored in, or 
     obtained a graduate degree in, mathematics or science to 
     teach those subjects in high need schools.
       ``(2) Program authorized.--

[[Page 7748]]

       ``(A) In general.--The Secretary shall carry out a program 
     of canceling the obligation to repay a qualified loan amount 
     in accordance with paragraph (3) for Federal Direct Stafford 
     Loans and Federal Direct Unsubsidized Stafford Loans made 
     under this part for a borrower whose academic major or 
     graduate degree was in mathematics or science, and who--
       ``(i) has been employed as a full-time teacher for 5 
     consecutive complete school years--

       ``(I) in a school that qualifies under section 465(a)(2)(A) 
     for loan cancellation for Perkins loan recipients who teach 
     in such schools; and
       ``(II) as a full-time teacher of mathematics or science, as 
     certified by the chief administrative officer of the public 
     or nonprofit private elementary school or secondary school in 
     which the borrower is employed;

       ``(ii) has not been employed as a full-time teacher in a 
     public or nonprofit private elementary school or secondary 
     school prior to the date of enactment of the Better Education 
     for Students and Teachers Act, other than as part of a 
     teacher preparation or certification program; and
       ``(iii) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(B) Special rule.--No borrower may obtain a reduction of 
     loan obligations under both this section and section 428J.
       ``(3) Qualified loan amounts.--
       ``(A) In general.--The Secretary shall cancel not more than 
     $17,500 in the aggregate of the loan obligation on a Federal 
     Direct Stafford Loan or a Federal Direct Unsubsidized 
     Stafford Loan that is outstanding after the completion of the 
     fifth complete school year of teaching described in paragraph 
     (2)(A)(i).
       ``(B) Treatment of consolidation loans.--A loan amount for 
     a Federal Direct Consolidation Loan may be a qualified loan 
     amount for the purposes of this subsection only to the extent 
     that such loan amount was used to repay a Federal Direct 
     Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, 
     or a loan made under section 428 or 428H, for a borrower who 
     meets the requirements of paragraph (2), as determined in 
     accordance with regulations prescribed by the Secretary.''.
       (c) Conforming Amendments.--
       (1) FFEL Program.--Section 428J of the Higher Education Act 
     of 1965 (20 U.S.C. 1078-10) is amended--
       (A) in subsection (f), by inserting ``or (i)'' after 
     ``(b)''; and
       (B) in subsection (g)(1)--
       (i) in subparagraph (A), by inserting ``or (i)(2)(A)(i)'' 
     after ``(b)(1)(A)''; and
       (ii) in the matter following subparagraph (B), by inserting 
     ``or (i), as appropriate'' after ``(b)''.
       (2) Direct Loan Program.--Section 460 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087j) is amended--
       (A) in subsection (f), by inserting ``or (i)'' after 
     ``(b)''; and
       (B) in subsection (g)(1)--
       (i) in subparagraph (A), by inserting ``or 
     (i)(2)(A)(i)(I)'' after ``(b)(1)(A)''; and
       (ii) in subparagraph (B), by inserting ``or (i), as 
     appropriate'' after ``(b)''.
                                  ____

  SA 597. Mr. WELLSTONE (for himself, Mr. Dayton, and Mr. Feingold) 
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 48, between lines 14 and 15, insert the following:
       ``(iii) no State shall be required to conduct any 
     assessments under this subparagraph in any school year if, by 
     July 1, 2005, the amount appropriated to carry out this part 
     for fiscal year 2005 does not equal or exceed 
     $24,720,000,000;''.
                                  ____

  SA 598. Mr. SESSIONS 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.  . THE STUDY OF THE DECLARATION OF INDEPENDENCE, 
                   UNITED STATES CONSTITUTION, AND THE FEDERALIST 
                   PAPERS.

       ``It is the sense of Congress that--
       ``(1) State and local governments and local educational 
     agencies are encouraged to dedicate at least 1 day of 
     learning to the study and understanding of the significance 
     of the Declaration of Independence, the United States 
     Constitution, and the Federalist Papers; and
       ``(2) State and local governments and local educational 
     agencies are encouraged to include a requirement that, before 
     receiving a certificate or diploma of graduation from 
     secondary school, students be tested on their competency in 
     understanding the Declaration of Independence, the United 
     States Constitution, and the Federalist Papers.''
                                  ____

  SA 599. Mr. SESSIONS 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, add the following:

     SEC. __. CONFIDENTIAL REPORTING OF INDIVIDUALS SUSPECTED OF 
                   IMMINENT SCHOOL VIOLENCE.

       Section 501(b) of title I of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3751(b)) is amended--
       (1) in paragraph (27), as added by section 103 of Public 
     Law 106-177 (114 Stat. 35) by striking ``and'' at the end;
       (2) in paragraph (28), by striking the period at the end 
     and inserting a semicolon;
       (3) by redesignating paragraph (27), as added by section 2 
     of Public Law 106-561 (114 Stat. 2787) as paragraph (29);
       (4) in paragraph (29), as redesignated by this section by 
     striking the period at the end and inserting ``; and''; and
       (5) by adding at the end the following:
       ``(30) to--
       ``(A) support the independent State development and 
     operation of confidential, toll-free telephone hotlines that 
     will operate 7 days per week, 24 hours per day, in order to 
     provide students, school officials, and other individuals 
     with the opportunity to report specific threats of imminent 
     school violence or to report other suspicious or criminal 
     conduct by juveniles to appropriate State and local law 
     enforcement entities for investigation;
       ``(B) ensure proper State training of personnel to answer 
     and respond to telephone calls to hotlines described in 
     subparagraph (A);
       ``(C) assist in the acquisition of technology necessary to 
     enhance the effectiveness of hotlines described in 
     subparagraph (A), including the utilization of Internet web-
     pages or resources;
       ``(D) enhance State efforts to offer appropriate counseling 
     services to individuals who call hotlines described in 
     subparagraph (A) threatening to do harm to themselves or 
     others; and
       ``(E) further State effort to publicize services offered by 
     the hotlines described in subparagraph (A) and to encourage 
     individuals to utilize those services.''.
                                  ____

  SA 600. Mr. SESSIONS 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 512, line 2, strike the end quotation mark and the 
     second period.

       On page 512, between lines 2 and 3, insert the following:

     ``SEC. 4304. CONFIDENTIAL REPORTING OF INDIVIDUALS SUSPECTED 
                   OF IMMINENT SCHOOL VIOLENCE.

       ``Subject to the provisions of this title and subpart 4 of 
     part B of title V, funds made available under such titles may 
     be used to--
       ``(1) support the independent State development and 
     operation of confidential, toll-free telephone hotlines that 
     will operate 7 days per week, 24 hours per day, in order to 
     provide students, school officials, and other individuals 
     with the opportunity to report specific threats of imminent 
     school violence or to report other suspicious or criminal 
     conduct by juveniles to appropriate State and local law 
     enforcement entities for investigation;
       ``(2) ensure proper State training of personnel to answer 
     and respond to telephone calls to hotlines described in 
     paragraph (1);
       ``(3) assist in the acquisition of technology necessary to 
     enhance the effectiveness of hotlines described in paragraph 
     (1), including the utilization of Internet web-pages or 
     resources;
       ``(4) enhance State efforts to offer appropriate counseling 
     services to individuals who call hotlines described in 
     paragraph (1) threatening to do harm to themselves or others; 
     and
       ``(5) further State effort to publicize services offered by 
     the hotlines described in paragraph (1) and to encourage 
     individuals to utilize those services.''.
                                  ____

  SA 601. Mr. SESSIONS 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 619, strike lines 23 and 24, and insert ``and 
     public and private entities''.
                                  ____

  SA 602. Mr. SESSIONS 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 510, after line 22, add the following: 
     ``Notwithstanding any other provision of this title, and part 
     B of title V, funds made available under such titles may be 
     used by States to provide contracts or grants to,

[[Page 7749]]

     and by the Secretary to provide Federal assistance to, for-
     profit entities to enable such entities to perform or assist 
     in the performance of the activities described in this 
     section.''.
                                  ____

  SA 603. Mr. SESSIONS 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 440, lines 15 and 16, strike ``and other public and 
     private nonprofit agencies and organizations'' and insert 
     ``and public and private entities''

       On page 440, line 22, strike ``nonprofit organizations'' 
     and insert ``entities''.

       On page 452, line 13, insert ``with public and private 
     entities'' after ``contracts''.

       On page 460, lines 7 and 8, strike ``and other public 
     entities and private nonprofit organizations'' and insert 
     ``public and private entities''.

       On page 483, lines 20 and 21, strike ``nonprofit 
     organizations'' and insert ``entities''.

       On page 489, lines 14 and 15, strike ``nonprofit private 
     organizations'' and insert ``private entities''.
                                  ____

  SA 604. Mr. SESSIONS 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 end of the amendment, add the following:

                 TITLE  --INDIVIDUALS WITH DISABILITIES

     SEC.  01. DISCIPLINE.

       Section 615 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1415) is amended by adding at the end the 
     following:
       ``(n) Uniform Policies.--
       ``(1) In general.--Subject to paragraph (2), and 
     notwithstanding any other provision of this Act, a State 
     educational agency or local educational agency may establish 
     and implement uniform policies regarding discipline and order 
     applicable to all children in the jurisdiction of the agency 
     to ensure the safety of such children and an appropriate 
     educational atmosphere in the schools in the jurisdiction of 
     the agency.
       ``(2) Limitation.--
       ``(A) In general.--A child with a disability who is removed 
     from his or her regular educational placement under paragraph 
     (1) shall receive a free appropriate public education in an 
     alternative educational setting if the behavior that led to 
     his or her removal is a manifestation of his or her 
     disability, as determined under subparagraphs (B) and (C) of 
     subsection (k)(4).
       ``(B) Manifestation determination.--The manifestation 
     determination shall be made immediately, if possible, but in 
     no case later than 10 school days after school personnel 
     decide to remove the child with a disability from his or her 
     regular educational placement.
       ``(C) Determination that behavior was not manifestation of 
     disability.--If the result of the manifestation review is a 
     determination that the behavior of the child with a 
     disability was not a manifestation of the child's disability, 
     appropriate school personnel may apply to the child the same 
     relevant disciplinary procedures that would apply to children 
     without a disability.
       ``(D) Records for decision.--If the agency initiates 
     disciplinary procedures applicable to all children, the 
     agency shall ensure that the special education and 
     disciplinary records of a child with a disability are 
     transmitted for consideration by the person making the final 
     decision regarding the disciplinary action.''

     SEC.  02. PROCEDURAL SAFEGUARDS.

       Section 615 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1415) (as amended by section  01) is amended 
     by adding at the end the following:
       ``(o) Discipline by Local Authority With Respect to 
     Weapons, Drugs, and Teacher Assaults.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, school personnel may discipline (including expel 
     or suspend) a child with a disability in the same manner in 
     which the personnel may discipline a child without a 
     disability if the child with a disability--
       ``(A) carries or possesses a weapon to or at a school, on 
     school premises, or to or at a school function under the 
     jurisdiction of a State or a local educational agency;
       ``(B) threatens to carry, possess, or use a weapon, 
     (including a threat to kill another person) to or at a 
     school, on school premises, or to or at a school function 
     under the jurisdiction of a State or a local education 
     agency;
       ``(C) possesses or uses illegal drugs or sells or solicits 
     the sale of a controlled substance while at school, on school 
     premises, or at a school function under the jurisdiction of a 
     State or local educational agency; or
       ``(D) assaults or threatens to assault a teacher, teacher's 
     aide, principal, school counselor, or other school personnel, 
     including independent contractors and volunteers.
       ``(2) Individual determinations.--In carrying out any 
     disciplinary action described in paragraph (1), school 
     personnel have discretion to consider all germane factors in 
     each individual case and modify any disciplinary action on a 
     case-by-case basis.
       ``(3) Defense.--Nothing in paragraph (1) precludes a child 
     with a disability who is disciplined under paragraph (1) from 
     asserting a defense that the alleged act was unintentional or 
     innocent.
       ``(4) Limitation.--
       ``(A) In general.--A child with a disability who is removed 
     from his or her regular educational placement under paragraph 
     (1) shall receive a free appropriate public education in an 
     alternative educational setting if the behavior that led to 
     his or her removal is a manifestation of his or her 
     disability, as determined under subparagraphs (B) and (C) of 
     subsection (k)(4).
       ``(B) Manifestation determination.--The manifestation 
     determination shall be made immediately, if possible, but in 
     no case later than 10 school days after school personnel 
     decide to remove the child with a disability from his or her 
     regular educational placement.
       ``(C) Determination that behavior was not manifestation of 
     disability.--If the result of the manifestation review is a 
     determination that the behavior of the child with a 
     disability was not a manifestation of the child's disability, 
     appropriate school personnel may apply to the child the same 
     relevant disciplinary procedures that would apply to children 
     without a disability.
       ``(D) Records for decision.--If the agency initiates 
     disciplinary procedures applicable to all children, the 
     agency shall ensure that the special education and 
     disciplinary records of the child with a disability are 
     transmitted for consideration by the person making the final 
     decision regarding the disciplinary action.
       ``(E) Review of manifestation determination.--If the 
     parents or the local educational agency disagree with the 
     manifestation determination, the agency or the parents may 
     request a review of that determination through the procedures 
     in subsections (f) through (i).
       ``(F) Placement during review.--During the course of any 
     review proceedings under subparagraph (E), the child shall 
     receive a free appropriate public education in an alternative 
     education placement.
       ``(5) Definitions.--In this subsection:
       ``(A) Weapon.--The term `weapon' means a weapon, device, 
     instrument, material, or substance, animate or inanimate, 
     that is used for, or is readily capable of, causing death or 
     serious bodily injury.
       ``(B) Illegal drug, controlled substance, and assault.--The 
     terms `illegal drug', `controlled substance', `assault', 
     `unintentional', and `innocent' have the meanings given such 
     terms under State law.''.
       ``(C) Review of manifestation determination.--If the 
     parents or the local educational agency disagree with the 
     manifestation determination, they may request a review of 
     that determination through the procedures in subsections (f) 
     through (i).
       ``(D) Placement during review.--During the course of any 
     review proceedings under subparagraph (E), the child shall 
     receive a free appropriate public education in an alternative 
     education placement.''.
                                  ____

  SA 605. Mr. SESSIONS 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 end of the amendment, add the following:

                TITLE __--INDIVIDUALS WITH DISABILITIES

     SEC. __01. DISCIPLINE.

       Section 615 of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1415) is amended by adding at the end the 
     following:
       ``(n) Discipline by Local Authority With Respect to 
     Weapons, Drugs, and Teacher Assaults.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, school personnel may discipline (including expel 
     or suspend) a child with a disability in the same manner in 
     which the personnel may discipline a child without a 
     disability if the child with a disability--
       ``(A) carries or possesses a weapon to or at a school, on 
     school premises, or to or at a school function under the 
     jurisdiction of a State or a local educational agency;
       ``(B) threatens to carry, possess, or use a weapon, 
     (including a threat to kill another person) to or at a 
     school, on school premises, or to or at a school function 
     under the jurisdiction of a State or a local education 
     agency;
       ``(C) possesses or uses illegal drugs or sells or solicits 
     the sale of a controlled substance while at school, on school 
     premises, or at a school function under the jurisdiction of a 
     State or local educational agency; or
       ``(D) assaults or threatens to assault a teacher, teacher's 
     aide, principal, school counselor, or other school personnel, 
     including independent contractors and volunteers.

[[Page 7750]]

       ``(2) Individual determinations.--In carrying out any 
     disciplinary action described in paragraph (1), school 
     personnel have discretion to consider all germane factors in 
     each individual case and modify any disciplinary action on a 
     case-by-case basis.
       ``(3) Defense.--Nothing in paragraph (1) precludes a child 
     with a disability who is disciplined under paragraph (1) from 
     asserting a defense that the alleged act was unintentional or 
     innocent.
       ``(4) Limitation.--
       ``(A) In general.--A child with a disability who is removed 
     from his or her regular educational placement under paragraph 
     (1) shall receive a free appropriate public education in an 
     alternative educational setting if the behavior that led to 
     his or her removal is a manifestation of his or her 
     disability, as determined under subparagraphs (B) and (C) of 
     subsection (k)(4).
       ``(B) Manifestation determination.--The manifestation 
     determination shall be made immediately, if possible, but in 
     no case later than 10 school days after school personnel 
     decide to remove the child with a disability from his or her 
     regular educational placement.
       ``(C) Determination that behavior was not manifestation of 
     disability.--If the result of the manifestation review is a 
     determination that the behavior of the child with a 
     disability was not a manifestation of the child's disability, 
     appropriate school personnel may apply to the child the same 
     relevant disciplinary procedures that would apply to children 
     without a disability.
       ``(D) Records for decision.--If the agency initiates 
     disciplinary procedures applicable to all children, the 
     agency shall ensure that the special education and 
     disciplinary records of the child with a disability are 
     transmitted for consideration by the person making the final 
     decision regarding the disciplinary action.
       ``(E) Review of manifestation determination.--If the 
     parents or the local educational agency disagree with the 
     manifestation determination, the agency or the parents may 
     request a review of that determination through the procedures 
     in subsections (f) through (i).
       ``(F) Placement during review.--During the course of any 
     review proceedings under subparagraph (E), the child shall 
     receive a free appropriate public education in an alternative 
     education placement.
       ``(5) Definitions.--In this subsection:
       ``(A) Weapon.--The term `weapon' means a weapon, device, 
     instrument, material, or substance, animate or inanimate, 
     that is used for, or is readily capable of, causing death or 
     serious bodily injury.
       ``(B) Illegal drug, controlled substance, and assault.--The 
     terms `illegal drug', `controlled substance', `assault', 
     `unintentional', and `innocent' have the meanings given such 
     terms under State law.''.
       ``(C) Review of manifestation determination.--If the 
     parents or the local educational agency disagree with the 
     manifestation determination, they may request a review of 
     that determination through the procedures in subsections (f) 
     through (i).
       ``(D) Placement during review.--During the course of any 
     review proceedings under subparagraph (E), the child shall 
     receive a free appropriate public education in an alternative 
     education placement.''.
                                  ____

  SA 606. Mrs. FEINSTEIN 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 145, strike lines 3 through 8 and insert the 
     following:
       ``(B) 40 percent of the average per pupil expenditure in 
     the State, except that--
       ``(i) if the average per pupil expenditure in the State is 
     less than 90 percent of the average per pupil expenditure in 
     the United States, the amount shall be 90 percent of the 
     average per pupil expenditure in the United States; or
       ``(ii) if the average per pupil expenditure in the State is 
     more than 110 percent of the average per pupil expenditure in 
     the United States, the amount shall be 110 percent of the 
     average per pupil expenditure in the United States.
                                  ____

  SA 607. Mrs. FEINSTEIN 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 141, strike lines 5 through 22 and insert the 
     following:
       ``(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--
       ``(A) the Secretary shall ratably reduce the allocations to 
     such local educational agencies; and
       ``(B) if, after reducing the allocations, the amounts that 
     some local educational agencies would be eligible to receive 
     would exceed 90 percent of the full amount while the amounts 
     that other local educational agencies would be eligible to 
     receive would be less than 90 percent of the full amount, the 
     Secretary shall reallocate the amounts exceeding 90 percent 
     to the other local educational agencies ratably so that all 
     such other local educational agencies would be eligible to 
     receive as close as possible to 90 percent, but not more, of 
     the full amount.
       ``(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.--If possible after application of 
     subsection (b), 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--''.
                                  ____

  SA 608. 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 145, strike lines 3 through 8 and insert the 
     following:
       ``(B) 40 percent of the average per pupil expenditure in 
     the State, except that--
       ``(i) if the average per pupil expenditure in the State is 
     less than 85 percent of the average per pupil expenditure in 
     the United States, the amount shall be 85 percent of the 
     average per pupil expenditure in the United States; or
       ``(ii) if the average per pupil expenditure in the State is 
     more than 115 percent of the average per pupil expenditure in 
     the United States, the amount shall be 115 percent of the 
     average per pupil expenditure in the United States.
                                  ____

  SA 609. 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:

       At the appropriate place in title I, insert the following:

     SEC. __. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

       (a) Audits.--The Office of the Inspector General of the 
     Department of Education shall conduct not less than 6 audits 
     of local education agencies that receive funds under part A 
     of title I of the Elementary and Secondary Education Act of 
     1965 in each fiscal year to more clearly determine 
     specifically how local education agencies are expending such 
     funds. Such audits shall be conducted in 6 local educational 
     agencies that represent the size, ethnic, economic and 
     geographic diversity of local educational agencies and shall 
     examine the extent to which funds have been expended for 
     academic instruction in the core curriculum and activities 
     unrelated to academic instruction in the core curriculum, 
     such as the payment of janitorial, utility and other 
     maintenance services, the purchase and lease of vehicles, and 
     the payment for travel and attendance costs at conferences.
       (b) Report.--Not later than 3 months after the completion 
     of the audits under subsection (a) in each year, the Office 
     of the Inspector General of the Department of Education shall 
     submit a report on each audit to the Committee on Education 
     and the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate.
                                  ____

  SA 610. 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:

       Beginning on page 144, line 23, strike ``is the amount'' 
     and all that follows through page 145, line 8, and insert 
     ``shall be based on the number of children counted under 
     subsection (c).''.
                                  ____

  SA 611. 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:

       Beginning on page 141, strike line 18 and all that follows 
     through line 15 on page 143, and insert the following:
       ``(c) Special Funding Rules.--Notwithstanding any other 
     provision of law, a State shall not receive under this part 
     for fiscal year 2000 or any succeeding fiscal year, an amount 
     that--
       ``(1) exceeds by more than 10 percent the amount the State 
     received under this part for fiscal year 1999; and
       ``(2) is less than 0.25 percent of the amount appropriated 
     to carry out this part for the fiscal year for which the 
     determination is made.

[[Page 7751]]

       Beginning on page 144, line 23, strike ``year is'' and all 
     that follows through line 8 on page 145, and insert ``year 
     shall bear the same relation to the amount appropriated under 
     section 1002(a) for the fiscal year as the number of children 
     counted under section 1124(c) for the local educational 
     agency bears to the number of children counted under section 
     1124(c) for all local educational agencies in all States.''.
       Beginning on page 149, strike line 23 and all that follows 
     through line 11 on page 150, and insert the following:
       ``(3) Puerto rico.--The grant which the Commonwealth of 
     Puerto Rico shall be eligible to receive under this section 
     for each fiscal year is equal to the amount received by the 
     Commonwealth of Puerto Rico under this section for fiscal 
     year 1999.
       Beginning on page 155, strike line 13 and all that follows 
     through line 3 on page 156.
       On page 161, line 11, strike ``year shall'' and all that 
     follows through line 16, and insert ``year shall bear the 
     same relation to the amount made available to carry out this 
     section for the fiscal year as the number of children counted 
     under section 1124(c) for the local educational agency bears 
     to the number of children counted under section 1124(c) for 
     all local educational agencies in all States.''.
       On page 161, strike lines 17 through 23, and insert the 
     following:
       ``(2) Puerto rico.--The amount of the grant for which the 
     Commonwealth of Puerto Rico is eligible under this section is 
     equal to the amount received by the Commonwealth of Puerto 
     Rico under this section for fiscal year 1999.
                                  ____

  SA 612. 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 141, strike lines 5 through 22 and insert the 
     following:
       ``(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--
       ``(A) the Secretary shall ratably reduce the allocations to 
     such local educational agencies; and
       ``(B) if, after reducing the allocations, the amounts that 
     some local educational agencies would be eligible to receive 
     would exceed 85 percent of the full amount while the amounts 
     that other local educational agencies would be eligible to 
     receive would be less than 85 percent of the full amount, the 
     Secretary shall reallocate the amounts exceeding 85 percent 
     to the other local educational agencies ratably so that all 
     such other local educational agencies would be eligible to 
     receive as close as possible to 85 percent, but not more, of 
     the full amount.
       ``(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.--If possible after application of 
     subsection (b), 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--''.
                                  ____

  SA 613. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 75 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) 70 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) 65 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.''
                                  ____

  SA 614. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 85 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) 80 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) 75 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.''
                                  ____

  SA 615. 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 893, strike line 14 and insert the following:

     remain available until expended.

                         ``PART B--POVERTY DATA

     ``SEC. 9201. POVERTY DATA ADJUSTMENTS.

       ``Whenever the Secretary uses any data that relates to the 
     incidence of poverty and is produced or published by or for 
     the Secretary of Commerce for subnational, State or substate 
     areas, the Secretary shall adjust the data to account for 
     differences in the cost of living in the areas.''.
                                  ____

  SA 616. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 90 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) 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 not less than 15 percent 
     and not more than 30 percent; and
       ``(C) 80 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.''
                                  ____

  SA 617. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 80 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) 75 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) 70 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.
                                  ____

  SA 618. 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:

       Beginning on page 141, strike line 23 and all that follows 
     through page 142, line 13, and insert the following:
       ``(A) 70 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) 65 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) 70 percent of the amount made available to the local 
     educational agency under each such section for the preceding 
     fiscal

[[Page 7752]]

     year if such percentage is less than 15 percent.
                                  ____

  SA 619. 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 143, between lines 15 and 16, insert the following:
       ``(4) Inapplicability.--Notwithstanding any other provision 
     of this part, this subsection shall not apply for any fiscal 
     year for which the amount appropriated to carry out this part 
     exceeds the amount appropriated to carry out this part for 
     fiscal year 2001.
                                  ____

  SA 620. 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 145, strike lines 3 through 8 and insert the 
     following:
       ``(B) 40 percent of the average per pupil expenditure in 
     the State, except that--
       ``(i) if the average per pupil expenditure in the State is 
     less than 95 percent of the average per pupil expenditure in 
     the United States, the amount shall be 95 percent of the 
     average per pupil expenditure in the United States; or
       ``(ii) if the average per pupil expenditure in the State is 
     more than 105 percent of the average per pupil expenditure in 
     the United States, the amount shall be 105 percent of the 
     average per pupil expenditure in the United States.''
                                  ____

  SA 621. 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 141, strike lines 5 through 22 and insert the 
     following:
       ``(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--
       ``(A) the Secretary shall ratably reduce the allocations to 
     such local educational agencies; and
       ``(B) if, after reducing the allocations, the amounts that 
     some local educational agencies would be eligible to receive 
     would exceed 95 percent of the full amount while the amounts 
     that other local educational agencies would be eligible to 
     receive would be less than 95 percent of the full amount, the 
     Secretary shall reallocate the amounts exceeding 95 percent 
     to the other local educational agencies ratably so that all 
     such other local educational agencies would be eligible to 
     receive as close as possible to 95 percent, but not more, of 
     the full amount.
       ``(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.--If possible after application of 
     subsection (b), 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--''
                                  ____

  SA 622. Mr. DAYTON (for himself and Mr. Corzine) 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, add the following:

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

       Notwithstanding any other amendment made by this Act to 
     section 611(j) of the Individuals with Disabilities Education 
     Act (20 U.S.C. 1411(j)), subsection (j) of such Act 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--
       ``(1) $12,347,001,000 for fiscal year 2002;
       ``(2) not more than $18,370,317,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2003;
       ``(3) not more than $19,048,787,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2004;
       ``(4) not more than $19,719,918,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2005;
       ``(5) not more than $20,393,202,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2006;
       ``(6) not more than $21,067,600,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2007;
       ``(7) not more than $21,742,019,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2008;
       ``(8) not more than $22,423,068,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2009;
       ``(9) not more than $23,095,622,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2010; and
       ``(10) not more than $23,751,456,000, or the sum of the 
     maximum amount that all States may receive under subsection 
     (a)(2), whichever is lower, for fiscal year 2011.''.
                                  ____

  SA 623. Mrs. BOXER 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:

       At the End of title IV add the following:

     SEC. 405. SAFE SCHOOLS INITIATIVE.

       (a) Short Title.--This section may be cited as the ``Safe 
     Schools Initiative Act of 2001''.
       (b) Findings and Purpose.--
       (1) Findings.--Congress finds that--
       (A) acts of school violence disrupt the lives of children, 
     families and communities nationwide;
       (B) schools are places students go to learn, not to fear 
     for their safety;
       (C) the Federal Government should help local communities 
     keep their schools safe;
       (D) each year since fiscal year 1999, Senator Gregg, as 
     chairman of the Commerce, Justice, State and the Judiciary 
     Appropriations Subcommittee of the Senate, has included 
     funding for a collaborative program entitled ``Safe Schools 
     Initiative'' in the Commerce-Justice-State appropriations 
     bill;
       (E) the Safe Schools Initiative is an effort to help 
     schools employ safety strategies and ensure the well-being of 
     all students; and
       (F) this worthwhile program should be established in 
     statute.
       (2) Purpose.--It is the purpose of this section to maximize 
     local flexibility in responding to the threat of juvenile 
     violence through the implementation of effective school 
     violence prevention and safety programs.
       (c) Program Authorized.--
       (1) Definition.--In this subsection, the term ``local 
     educational agencies'' has the meaning given under section 3 
     of the Elementary and Secondary Education Act of 1965.
       (2) Authorization.--The Attorney General shall award grants 
     to local educational agencies and law enforcement agencies to 
     assist in planning, establishing, operating, coordinating and 
     evaluating school violence prevention and school safety 
     programs.
       (d) Application Requirements.--To be eligible to receive a 
     grant under subsection (c), an entity shall prepare and 
     submit to the Attorney General an application at such time, 
     in such manner and containing such information as the 
     Attorney General may require, including--
       (1) a detailed explanation of the intended uses of funds 
     provided under the grant.
       (e) Allowable Use of Funds.--Amounts received under a grant 
     under this section shall be used for innovative, local 
     responses, consistent with the purposes of this section, 
     which may include--
       (1) training, including in-service training, for school 
     personnel, custodians, and bus drivers in--
       (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 of interested parents, teachers, and other 
     school and law enforcement personnel in the identification 
     and responses to early warning signs of troubled and violent 
     youth;
       (3) innovative research-based delinquency and violence 
     prevention programs, including mentoring programs;
       (4) comprehensive school security assessments;
       (5) the purchase of school security equipment and 
     technologies such as metal detectors, electronic locks, and 
     surveillance cameras;
       (6) collaborative efforts with law enforcement agencies and 
     community-based organizations that have demonstrated 
     expertise in providing effective, research-based violence 
     prevention and intervention programs to schools age children;
       (7) providing assistance to families in need for the 
     purpose of purchasing required school uniforms;
       (8) hiring school resource officers, including community 
     police officers; and
       (9) for any other purpose that the Attorney General 
     determines to be appropriate and consistent with the purpose 
     of this Act.

[[Page 7753]]

       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $200,000,000 
     for fiscal year 2002, and sums as may be necessary for each 
     of fiscal years 2003 through 2008.
       (g) Report to Congress.--Not later than 2 years after the 
     date of enactment of this section, and every 2 years 
     thereafter, the Attorney General shall prepare and submit to 
     the appropriate committee of congress a report concerning the 
     manner in which grantees have used amounts received under a 
     grant under this section.
                                  ____

  SA 624. Mr. HOLLINGS 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 776, line 17, strike ``education'' and all that 
     follows through the end of line 19 and insert the following: 
     ``education and the identification and recognition of 
     exemplary schools and programs such as Blue Ribbon Schools, 
     that are designed to promote the improvement of elementary 
     and secondary education nationally.
       `` `(e) Blue Ribbon Schools Dissemination Demonstration.--
       `` `(1) In general.--The Secretary shall conduct 
     demonstration projects to evaluate the effectiveness of using 
     the best practices of Blue Ribbon Schools to improve the 
     educational outcomes of elementary and secondary schools that 
     fail to make adequate yearly progress, as defined in the plan 
     of the State under section 1111(b)(2)(B).
       `` `(2) Report to congress.--Not later than 3 years after 
     the date on which the Secretary implements the initial 
     demonstration projects under subsection (a), the Secretary 
     shall submit to Congress a report regarding the effectiveness 
     of the demonstration projects.
       `` `(3) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subsection 
     $25,000,000 for fiscal year 2002, and such sums as may be 
     necessary in each of the 7 fiscal years thereafter.''.
                                  ____

  SA 625. Mr. WYDEN (for himself, Mr. Conrad, and Mrs. Lincoln) 
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 648, strike lines 4 through 8 and insert the 
     following:
       ``(1) to carry out chapter 1--
       ``(A) $150,000,000 for fiscal year 2002; and
       ``(B) such sums as may be necessary for each of the 6 
     succeeding fiscal years; and
       ``(2) to carry out chapter 2--
       ``(A) $150,000,000 for fiscal year 2002; and
       ``(B) such sums as may be necessary for each of the 6 
     succeeding fiscal years.''.
                                  ____

  SA 626. Mr. WYDEN 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 573, after line 25, add the following:

     SEC. 4203. 24-HOUR HOLDING PERIOD FOR STUDENTS WHO UNLAWFULLY 
                   BRING A GUN TO SCHOOL.

       ``(a) In General.--Each state receiving Federal funds under 
     this Act shall have in effect a policy or practice described 
     in subsection (b) by not later than the first day of the 
     fiscal year involved.
       ``(b) State Policy or Practice Described.--A policy or 
     practice described in this subsection is a policy or practice 
     of the State that requires State and local law enforcement 
     agencies to detain, in an appropriate juvenile community-
     based facility or in an appropriate juvenile justice 
     facility, for not less than 24 hours, any juvenile who,
       ``(1) unlawfully possesses a firearm in a school; and
       ``(2) is found by a judicial officer to be a possible 
     danger to himself or herself or to the community.''.
                                  ____

  SA 627. Mr. REID 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. 9__. PEST MANAGEMENT IN SCHOOLS.

       (a) In General.--The Federal Insecticide, Fungicide, and 
     Rodenticide Act is amended--
       (1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 
     136y) as sections 34 and 35, respectively; and
       (2) by inserting after section 32 (7 U.S.C. 136w-7) the 
     following:

     ``SEC. 33. PEST MANAGEMENT IN SCHOOLS.

       ``(a) Definitions.--In this section:
       ``(1) Pesticide.--The term `pesticide' means a pesticide 
     that, as identified by the Administrator--
       ``(A) contains a known or probable carcinogen;
       ``(B) contains a category I or II acute nerve toxin; or
       ``(C) is of the organophosphate, organochlorine, or 
     carbamate class of pesticides.
       ``(2) School.--The term `school' means a public--
       ``(A) elementary school (as defined in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801));
       ``(B) secondary school (as defined in section 14101 of that 
     Act); or
       ``(C) kindergarten or nursery school.
       ``(b) Mandatory Notification.--
       ``(1) In general.--Not later than 72 hours prior to an 
     application of a pesticide to the school grounds (including 
     indoor and outdoor treatments), a school shall, in accordance 
     with this subsection, notify parents and guardians of 
     children attending that school of the application.
       ``(2) Contents of notification.--A notification required 
     under this subsection shall include, with respect to each 
     pesticide to be applied at the school during the application 
     covered by the notification--
       ``(A) the common name, trade name, and Environmental 
     Protection Agency registration number of the pesticide;
       ``(B) a description of the method, duration, and location 
     of the application of the pesticide; and
       ``(C) a description of any potential acute or chronic 
     effects on human health that may result from exposure to the 
     pesticide.''.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the Federal Insecticide, Fungicide, and Rodenticide 
     Act (7 U.S.C. prec. 121) is amended by striking the items 
     relating to sections 30 and 31 and inserting the following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
              and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
     ``(a) In general.
     ``(b)(1) Minor use pesticide data.
     ``(2) Minor Use Pesticide Data Revolving Fund.
       ``Sec. 33. Pest management in schools.''
                                  ____

  SA 628. Ms. LANDRIEU 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:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. __. PEST MANAGEMENT IN SCHOOLS.

       (a) In General.--The Federal Insecticide, Fungicide, and 
     Rodenticide Act (7 U.S.C. 136a et seq.) is amended--
       (1) by redesignating sections 33 and 34 as sections 34 and 
     35, respectively; and
       (2) by inserting after section 32 the following:

     ``SEC. 33. PEST MANAGEMENT IN SCHOOLS.

       ``(a) Definitions.--In this section:
       ``(1) Bait.--The term `bait' means a pesticide that 
     contains an ingredient that serves as a feeding stimulant, 
     odor, pheromone, or other attractant for a target pest that 
     is--
       ``(A) readily detected, recognized, or eaten by the target 
     pest; or
       ``(B) applied in a manner that minimizes human exposure.
       ``(2) Local educational agency.--The term `local 
     educational agency' has the meaning given the term in section 
     14101 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 8801).
       ``(3) Pesticide.--
       ``(A) In general.--The term `pesticide' has the meaning 
     given the term in section 2.
       ``(B) Exclusion.--The term `pesticide' does not include--
       ``(i) an antimicrobial pesticide described in section 
     2(mm)(1)(A);
       ``(ii) a bait, paste, gel, or pesticide used for crack or 
     crevice treatment; or
       ``(iii) any pesticide exempt from the requirements of this 
     Act under section 25(b).
       ``(4) School.--The term `school' means a public--
       ``(A) elementary school (as defined in section 14101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     8801)); or
       ``(B) secondary school (as defined in section 14101 of that 
     Act).
       ``(b) Mandatory Notification.--
       ``(1) In general.--A school shall, in accordance with this 
     subsection, notify parents and guardians of children 
     attending that school before school employees or persons 
     contracted by the school apply a pesticide to the school 
     grounds, including both indoor and outdoor treatments.
       ``(2) Annual notification.--A school shall notify parents 
     and guardians at the beginning of each school year, and on 
     the enrollment of a child in the school, that pesticides may 
     be used periodically throughout the school year to manage 
     pests.
       ``(3) Notification of individual applications.--

[[Page 7754]]

       ``(A) List of parents and guardians requesting 
     notification.--A school shall establish and maintain a list 
     of parents and guardians who have requested notification by 
     the school before each individual application of a pesticide 
     on school grounds, including both indoor and outdoor 
     treatments.
       ``(B) Notification requirement.--Subject to subparagraph 
     (D), a school shall notify each parent and guardian on the 
     list at least 24 hours before the application of a pesticide 
     on school grounds.
       ``(C) Method of notification.--A school may notify parents 
     or guardians on the notification list of an upcoming 
     pesticide application by--
       ``(i) sending a notice home with students;
       ``(ii) making a phone call to parents and guardians;
       ``(iii) directly communicating with parents and guardians; 
     or
       ``(iv) using any other method the school considers 
     appropriate.
       ``(D) Notification not required.--A school shall not be 
     required to provide notification of the application of a 
     pesticide under this paragraph if the school--
       ``(i) will not be in session for at least 48 hours 
     following the application; or
       ``(ii) determines that the urgent or immediate use of a 
     pesticide is necessary to protect students, staff, or other 
     persons.
       ``(4) Contents of notification.--A notification required 
     under this subsection shall include--
       ``(A) the common name, trade name, and Environmental 
     Protection Agency registration number of the pesticide;
       ``(B) a description of the location of the application of 
     the pesticide;
       ``(C) a description of the approximate date and time of 
     application, except that, in the case of outdoor pesticide 
     applications, 1 notice shall include 3 dates, in 
     chronological order, that the outdoor pesticide applications 
     may take place if the preceding date is canceled;
       ``(D) a description of the pests to be controlled by the 
     application of the pesticide and the potential health and 
     safety threats posed by the pests;
       ``(E) the name and telephone number of the contact person 
     of the school district; and
       ``(F) any telephone numbers (including toll-free telephone 
     numbers) provided on the label of the pesticide to obtain 
     information concerning the pesticide.
       ``(c) Integrated Pest Management in Schools.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of this subsection, the lead agency or board 
     designated by each State for pesticide regulation shall 
     develop a model integrated pest management program for 
     schools in the State that is consistent with section 303 of 
     the Food Quality Protection Act of 1996 (7 U.S.C. 136r-1) and 
     this section.
       ``(2) Implementation.--Not later than 180 days after the 
     development of the model integrated pest management program, 
     each local educational agency in the State shall adopt and 
     implement the program.
       ``(3) Applicators.--A local educational agency of a State 
     shall use a certified applicator or other person authorized 
     by the lead agency or board of the State to implement the 
     model integrated pest management program.''.
       (b) Conforming Amendment.--The table of contents in section 
     1(b) of the Federal Insecticide, Fungicide, and Rodenticide 
     Act (7 U.S.C. prec. 121) is amended by striking the items 
     relating to sections 30 and 31 and inserting the following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
              and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
     ``(a) In general.
     ``(b)(1) Minor use pesticide data.
     ``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Pest management in schools.
     ``(a) Definitions.
       ``(1) Bait.
       ``(2) Local educational agency.
       ``(3) Pesticide.
       ``(4) School.
     ``(b) Mandatory notification.
       ``(1) In general.
       ``(2) Annual notification.
       ``(3) Notification of individual applications.
       ``(4) Contents of notification.
     ``(c) Integrated pest management in schools.
       ``(1) In general.
       ``(2) Implementation.
       ``(3) Applicators.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.
       (c) Effective Date.--This section and the amendments made 
     by this section take effect on the date that is 18 months 
     after the date of enactment of this Act.
                                  ____

  SA 629. Mr. WELLSTONE (for himself, Mr. DeWine, Mrs. Clinton, Mr. 
Schumer, Mr. Biden, and Mr. Kennedy) 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 309, lines 17 and 18, strike ``subsection (f)'' and 
     insert ``subsections (e) and (f)''.
       On page 339, line 6, strike ``(e)'' and insert ``(d)''.
       Beginning on page 340, strike line 9 and all that follows 
     through page 341, line 8.
       On page 341, line 9, strike ``(e)'' and insert ``(d)''.
       On page 341, between lines 21 and 22, insert the following:
       ``(e) Careers to Classrooms.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to establish a program to recruit and retain highly 
     qualified mid-career professionals, recent graduates from an 
     institution of higher education, and certain 
     paraprofessionals, as teachers in high need schools, 
     including recruiting teachers through alternative routes to 
     certification; and
       ``(B) to encourage the development and expansion of 
     alternative routes to certification under State-approved 
     programs that enable individuals to be eligible for teacher 
     certification within a reduced period of time, relying on the 
     experience, expertise, and academic qualifications of an 
     individual, or other factors in lieu of traditional course 
     work in the field of education.
       ``(2) Definitions.--In this subsection:
       ``(A) Eligible participant.--The term `eligible 
     participant' means--
       ``(i) an individual with substantial, demonstrable career 
     experience and competence in a field for which there is a 
     significant shortage of qualified teachers, such as 
     mathematics, natural science, technology, engineering, and 
     special education;
       ``(ii) an individual who is a graduate of an institution of 
     higher education who--

       ``(I) has graduated not later than 3 years before applying 
     to an agency or consortium to teach under this subsection;
       ``(II) in the case of an individual wishing to teach in a 
     secondary school, has completed an academic major (or courses 
     totaling an equivalent number of credit hours) in the 
     academic subject that the individual will teach;
       ``(III) has graduated in the top 50 percent of the 
     individual's undergraduate or graduate class;
       ``(IV) can demonstrate a high level of competence through a 
     high level of performance in the academic subject that the 
     individual will teach; and
       ``(V) meets any additional academic or other standards or 
     qualifications established by the State; or

       ``(iii) a paraprofessional who--

       ``(I) has been working as a paraprofessional in an 
     instructional role in an elementary school or secondary 
     school for at least 2 years;
       ``(II) can demonstrate that the paraprofessional is capable 
     of completing a bachelor's degree in not more than 2 years 
     and is in the top 50 percent of the individual's 
     undergraduate class;
       ``(III) will work toward completion of an academic major 
     (or courses totaling an equivalent number of credit hours) in 
     the academic subject that the paraprofessional will teach; 
     and
       ``(IV) can demonstrate a high level of competence through a 
     high level of performance in the academic subject that the 
     paraprofessional will teach.

       ``(B) High need local educational agency.--The term `high 
     need local educational agency' means a local educational 
     agency that serves--
       ``(i) a high need school district; and
       ``(ii) a high need school.
       ``(C) High need school.--The term `high need school' means 
     a school that--
       ``(i)(I) is located in an area in which the percentage of 
     students from families with incomes below the poverty line is 
     30 percent or more; or
       ``(II) is located in an area, other than a metropolitan 
     statistical area, that the State determines has a high 
     percentage of students from families with incomes below the 
     poverty line or that has experienced greater than normal 
     difficulty in recruiting or retaining teachers; and
       ``(ii)(I) is located in an area in which there is a high 
     percentage of secondary school teachers not teaching in the 
     content area in which teachers were trained to teach, is 
     within the top quartile of schools statewide, as ranked by 
     the number of unfilled, available teacher positions at the 
     schools, is located in an area in which there is a high 
     teacher turnover rate, or is located in an area in which 
     there is a high percentage of teachers who are not certified 
     or licensed.
       ``(D) High need school district.--The term `high need 
     school district' means a school district in which there is--
       ``(i)(I) a high need school; and
       ``(II) a high percentage of individuals from families with 
     incomes below the poverty line; and
       ``(ii)(I) a high percentage of secondary school teachers 
     not teaching in the content area in which the teachers were 
     trained to teach; or
       ``(II) a high teacher turnover rate.
       ``(E) Poverty line.--The term `poverty line' means the 
     income official poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance

[[Page 7755]]

     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.
       ``(3) Grant program.--
       ``(A) In general.--The Secretary shall establish a program 
     to make grants on a competitive basis to State educational 
     agencies, regional consortia of State educational agencies, 
     high need local educational agencies, and consortia of high 
     need local educational agencies, to develop State and local 
     teacher corps or other programs to establish, expand, or 
     enhance teacher recruitment and retention efforts.
       ``(B) Priority.--In making such a grant, the Secretary 
     shall give priority to an agency or consortium of agencies 
     that applies for the grant in collaboration with an 
     institution of higher education or a nonprofit organization 
     that has a proven record of effectively recruiting and 
     retaining highly qualified teachers in high need school 
     districts.
       ``(4) Application.--
       ``(A) In general.--To be eligible to receive a grant under 
     this subsection, an agency or consortium described in 
     paragraph (3) shall submit an application to the Secretary at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       ``(B) Contents.--The application shall--
       ``(i) describe how the agency or consortium will use funds 
     received under this subsection to develop a teacher corps or 
     other program to recruit and retain highly qualified mid-
     career professionals, recent graduates from an institution of 
     higher education, and paraprofessionals as teachers in high 
     need schools;
       ``(ii) explain how the agency or consortium will determine 
     that teacher candidates seeking to participate in a program 
     under this section are eligible participants;
       ``(iii) explain how the program will meet the relevant 
     State laws (including regulations) related to teacher 
     certification and licensing;
       ``(iv) explain how the agency or consortium will ensure 
     that no paraprofessional will be hired through the program as 
     a teacher until the paraprofessional has obtained a 
     bachelor's degree and meets the requirements of subclauses 
     (II) through (V) of paragraph (2)(A)(ii);
       ``(v) include a determination of the high need academic 
     subjects in the jurisdiction served by the agency or 
     consortium and how the agency or consortium will recruit 
     teachers for those subjects;
       ``(vi) describe how the grant will increase the number of 
     highly qualified teachers in high need schools in high need 
     school districts that are urban or rural school districts;
       ``(vii) describe how the agency or consortium described in 
     paragraph (3) has met the requirements of subparagraph (C);
       ``(viii) describe how the agency or consortium will 
     coordinate the activities carried out with the funds with 
     activities carried out with other Federal, State, and local 
     funds for teacher recruitment and retention;
       ``(ix) describe the plan of the agency or consortium 
     described in paragraph (3) to recruit and retain highly 
     qualified teachers in the high need academic subjects and 
     high need schools and facilitate the certification or 
     licensing of such teachers; and
       ``(x) describe how the agency or consortium described in 
     paragraph (3) will meet the requirements of paragraph (7)(A).
       ``(C) Collaboration.--In developing the application, the 
     agency or consortium shall consult with and seek input from--
       ``(i) in the case of a partnership established by a State 
     educational agency or consortium of such agencies, 
     representatives of local educational agencies, including 
     teachers, principals, superintendents, and school board 
     members (including representatives of their professional 
     organizations if appropriate);
       ``(ii) in the case of a partnership established by a local 
     educational agency or a consortium of such agencies, 
     representatives of a State educational agency;
       ``(iii) elementary school and secondary school teachers, 
     including representatives of their professional 
     organizations;
       ``(iv) institutions of higher education;
       ``(v) parents; and
       ``(vi) other interested individuals and organizations, such 
     as businesses, experts in curriculum development, and 
     nonprofit organizations with a proven record of effectively 
     recruiting and retaining highly qualified teachers in high 
     need school districts.
       ``(5) Duration of grants.--The Secretary may make grants 
     under this subsection for periods of 5 years. At the end of 
     the 5-year period for such a grant, the grant recipient may 
     apply for an additional grant under this subsection.
       ``(6) Equitable distribution.--The Secretary shall ensure 
     an equitable geographic distribution of grants among the 
     regions of the United States.
       ``(7) Requirements.--
       ``(A) Targeting.--An agency or consortium that receives a 
     grant under this subsection to carry out a program shall 
     ensure that participants in the program recruited with funds 
     made available under this subsection are placed in high need 
     schools, within high need school districts. In placing the 
     participants in the schools, the agency or consortium shall 
     give priority to the schools that are located in areas with 
     the highest percentage of students from families with incomes 
     below the poverty line.
       ``(B) Supplement not supplant.--Funds made available under 
     this subsection shall be used to supplement and not supplant 
     State and local public funds expended for teacher recruitment 
     and retention programs, including programs to recruit the 
     teachers through alternative routes to certification.
       ``(C) Partnerships established by local educational 
     agencies.--In the case of a partnership established by a 
     local educational agency or a consortium of such agencies to 
     carry out a program under this section the local educational 
     agency or consortium shall not be eligible to receive funds 
     through a State program under this section.
       ``(8) Uses of funds.--
       ``(A) In general.--An agency or consortium that receives a 
     grant under this subsection shall use the funds made 
     available through the grant to develop a teacher corps or 
     other program in order to establish, expand, or enhance a 
     teacher recruitment and retention program for highly 
     qualified mid-career professionals, graduates of institutions 
     of higher education, and paraprofessionals, who are eligible 
     participants, including activities that provide alternative 
     routes to teacher certification.
       ``(B) Specific activities.--The agency or consortium shall 
     use the funds to carry out a Teacher Corps program that 
     includes 2 or more activities that consist of--
       ``(i)(I) providing loans, scholarships, stipends, bonuses, 
     and other financial incentives, that are linked to 
     participation in activities that have proven effective in 
     retaining teachers in higher need school districts, to all 
     eligible participants (in an amount of not more than the 
     lesser of $5,000 per eligible participant) who--

       ``(aa) are enrolled in a Teacher Corps program located in a 
     State; and
       ``(bb) agree to seek certification through alternative 
     routes to certification in that State; and

       ``(II) giving a preference, in awarding the loans, 
     scholarships, stipends, bonuses, and other financial 
     incentives, to individuals who the State determines have 
     financial need for such loans, scholarships, stipends, 
     bonuses, and other financial incentives;
       ``(ii) making payments (in an amount of not more than 
     $5,000 per eligible participant) to schools to pay for costs 
     associated with accepting teachers recruited under this 
     subsection from among eligible participants or to provide 
     financial incentives to prospective teachers who are eligible 
     participants;
       ``(iii) providing mentoring;
       ``(iv) providing internships;
       ``(v) carrying out co-teaching arrangements;
       ``(vi) providing high quality, sustained in-service 
     professional development opportunities;
       ``(vii) offering opportunities for teacher candidates to 
     participate in preservice, high quality course work;
       ``(viii) collaboration with institutions of higher 
     education in developing and implementing programs to 
     facilitate teacher recruitment (including teacher 
     credentialing) and teacher retention programs;
       ``(ix) providing accelerated paraprofessional-to-teacher 
     programs that provide a paraprofessional with sufficient 
     training and development to enable the paraprofessional to 
     complete a bachelor's degree and fulfill other State 
     certification or licensing requirements and that provide full 
     pay and leave from paraprofessional duties for the period 
     necessary to complete the degree and become certified or 
     licensed; and
       ``(x) carrying out other programs, projects, and activities 
     that--

       ``(I) are designed and have proven to be effective in 
     recruiting and retaining teachers; and
       ``(II) the Secretary determines to be appropriate.

       ``(C) Development of long-term recruitment and retention 
     strategies.--In addition to the activities authorized under 
     subparagraph (B), an agency or consortium that receives a 
     grant under this subsection may use the funds made available 
     through the grant for--
       ``(i) the establishment and operation, or expansion and 
     improvement, of a statewide or regionwide clearinghouse for 
     the recruitment and placement of preschool, elementary 
     school, secondary school, and vocational and technical school 
     teachers (which shall not be subject to the targeting 
     requirements under paragraph (7)(A));
       ``(ii) the establishment of administrative structures 
     necessary for the development and implementation of programs 
     to provide alternative routes to certification;
       ``(iii) the development of reciprocity agreements between 
     or among States for the certification or licensure of 
     teachers; and
       ``(iv) the implementation of other activities designed to 
     ensure the use of long-term teacher recruitment and retention 
     strategies.
       ``(D) Effective activities.--The agency or consortium shall 
     use the funds only for activities that have proven effective 
     in both recruiting and retaining teachers.
       ``(9) Repayment.--The recipient of a loan under this 
     subsection shall immediately repay amounts received under 
     such loan, and the recipient of a scholarship, stipend,

[[Page 7756]]

     bonus, or other financial incentive under this subsection 
     shall repay amounts received under such scholarship, stipend, 
     bonus, or other financial incentive, to the agency or 
     consortium from which the loan, scholarship, stipend, bonus, 
     or other financial incentive was received if--
       ``(A) the recipient involved fails to complete the 
     applicable program providing alternative routes to 
     certification;
       ``(B) the recipient rejects a bona fide offer of employment 
     at a high need school served by that agency or consortium 
     during the 1-year period beginning on the date on which the 
     recipient completes such a program; or
       ``(C) the recipient fails to teach for at least 2 years in 
     a high need school served by that agency or consortium during 
     the 5-year period beginning on the date on which the 
     individual completes such a program.
       ``(10) Administrative funds.--No agency or consortium that 
     receives a grant under this subsection shall use more than 5 
     percent of the funds made available through the grant for the 
     administration of the Teacher Corps program carried out under 
     the grant.
       ``(11) Evaluation and accountability for recruiting and 
     retaining teachers.--
       ``(A) Evaluation.--Each agency or consortium that receives 
     a grant under this subsection shall conduct--
       ``(i) an interim evaluation of the Teacher Corps program 
     funded under the grant at the end of the third year of the 
     grant period; and
       ``(ii) a final evaluation of the program at the end of the 
     fifth year of the grant period.
       ``(B) Contents.--In conducting the evaluation, the agency 
     or consortium shall describe the extent to which local 
     educational agencies that received funds through the grant 
     have met those goals relating to teacher recruitment and 
     retention described in the application.
       ``(C) Reports.--The agency or consortium shall prepare and 
     submit to the Secretary and to Congress interim and final 
     reports containing the results of the interim and final 
     evaluations, respectively.
       ``(D) Revocation.--If the Secretary determines that the 
     recipient of a grant under this subsection has not made 
     substantial progress in meeting the goals and objectives of 
     the grant by the end of the third year of the grant period, 
     the Secretary--
       ``(i) shall revoke the payment made for the fourth year of 
     the grant period; and
       ``(ii) shall not make a payment for the fifth year of the 
     grant period.
       ``(12) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subsection 
     $200,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years.

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

     SEC. __. MODIFICATION OF TROOPS-TO-TEACHERS PROGRAM.

       (a) Purpose.--The purpose of this section is to authorize a 
     mechanism for the funding and administration of the Troops-
     to-Teachers Program established by the Troops-to-Teachers 
     Program Act of 1999 (title XVII of the National Defense 
     Authorization Act for Fiscal Year 2000).
       (b) Definitions.--Section 1701 of the Troops-to-Teachers 
     Program Act of 1999 (20 U.S.C. 9301) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``means'' and all that 
     follows and inserting ``means the Secretary of Education'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraphs (3) and (4), as paragraphs 
     (2) and (3), respectively; and
       (D) in paragraph (2) (as so redesignated), by inserting 
     before the period the following: ``and active and former 
     members of the Coast Guard''; and
       (2) by adding at the end the following:
       ``(c) Administration.--To the extent that funds are made 
     available under this title, the administering Secretary shall 
     use such funds to enter into a memorandum of agreement with 
     the Defense Activity for Non-Traditional Education Support 
     (referred to in this subsection as `DANTES'), of the 
     Department of Defense. DANTES shall use amounts made 
     available under the memorandum of agreement to administer the 
     Troops-to-Teachers Program, including the selection of 
     participants in the Program in accordance with section 1704. 
     The administering 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.''.
       (c) Authorization.--Section 1702 of the Troops-to-Teachers 
     Program Act of 1999 (20 U.S.C. 9302) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``after their discharge or release, or 
     retirement,'' and insert ``who retire''; and
       (ii) by striking ``and'' at the end;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1), the following:
       ``(2) to assist members of the active reserve forces to 
     obtain certification or licensure as elementary or secondary 
     school teachers or as vocational or technical teachers; 
     and''; and
       (2) by adding at the end the following:
       ``(e) Funding.--The administering Secretary shall provide 
     appropriate funds to the Secretary of Defense to enable the 
     Secretary of Defense to manage and operate the Troops-to-
     Teachers Program.''.
       (d) Eligible Members.--Section 1703 of the Troops-to-
     Teachers Program Act of 1999 (20 U.S.C. 9303) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Eligible Members.--Subject to subsection (c), any 
     member of the Armed Forces who, during the period beginning 
     on October 1, 2000, and ending on September 30, 2006, retired 
     from the active duty or who is a member of the active reserve 
     and who satisfies such other criteria for the selection as 
     the administering Secretary may require, shall be eligible 
     for selection to participate in the Troops-to-Teachers 
     Program.''; and
       (2) in subsection (d)--
       (A) by striking ``(1) The administering Secretary'' and 
     inserting ``Secretary of Defense''; and
       (B) by striking paragraph (2); and
       (3) by adding at the end the following:
       ``(e) Placement Assistance and Referral Services.--The 
     administering Secretary may, with the agreement of the 
     Secretary of Defense, provide placement assistance and 
     referral services to members of the Armed Forces who 
     separated from active duty under honorable circumstances. 
     Such members shall meet education qualification requirements 
     under subsection (b). Such members shall not be eligible for 
     financial assistance under subsections (a) and (b) of section 
     1705.''.
       (e) Selection of Participants.--Section 1704 of the Troops-
     to-Teachers Program Act of 1999 (20 U.S.C. 9304) is amended--
       (1) in subsection (a), by striking ``on a timely basis'';
       (2) by striking subsection (b);
       (3) in subsection (e)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and receives financial assistance'' after ``Program''; and
       (B) in paragraph (2), by striking ``four school'' and all 
     that follows and inserting ``three school years with a local 
     educational agency, except that the Secretary of Defense may 
     waive the 3 year commitment if the Secretary determines such 
     waiver to be appropriate.'';
       (4) in subsection (f), by striking ``subsection (e)'' and 
     inserting ``subsection (d)''; and
       (5) by redesignating subsections (c) through (f) as 
     subsection (b) through (e), respectively.
       (f) Stipends and Bonuses.--Section 1705 of the Troops-to-
     Teachers Program Act of 1999 (20 U.S.C. 9305) is amended--
       (1) in subsection (a)--
       (A) by striking ``(1) Subject'' and inserting ``Subject''; 
     and
       (B) by striking paragraph (2);
       (2) in subsection (b)--
       (A) by striking paragraph (2);
       (B) in paragraph (3)--
       (i) by striking subparagraphs (A) through (D) and inserting 
     the following:
       ``(A) The school is in a low-income school district as 
     defined by the administering Secretary.''; and
       (ii) by redesignating subparagraphs (E) and (F), as 
     subparagraphs (B) and (C), respectively; and
       (C) by redesignating paragraph (3) as paragraph (2); and
       (3) in subsection (d)--
       (A) by striking ``four years'' each place that such appears 
     and inserting ``three years''; and
       (B) in paragraph (2), by striking ``1704(e)'' and inserting 
     ``1704(d)''.
       (g) Participation by States.--Section 1706(b) of the 
     Troops-to-Teachers Program Act of 1999 (20 U.S.C. 9306(b)) is 
     amended--
       (1) by striking ``(1) Subject to paragraph (2), the'' and 
     inserting ``The''; and
       (2) by striking paragraph (2).
       (h) Support of Teacher Certification Programs.--The Troops-
     to-Teachers Program Act of 1999 (20 U.S.C. 9301 et seq.) is 
     amended by striking 1707 through 1709 and inserting the 
     following:

     ``SEC. 1707. SUPPORT OF INNOVATIVE, PRE-RETIREMENT TEACHER 
                   CERTIFICATION PROGRAMS.

       ``(a) In General.--The administering Secretary may enter 
     into a memorandum of agreements with institutions of higher 
     education to develop, implement, and demonstrate teacher 
     certification programs for pre-retirement military personnel 
     for the purpose of preparing such personnel to transition to 
     teaching as a second career. Such program shall--
       ``(1) provide for the recognition of military experience 
     and training as related to licensure or certification 
     requirements;
       ``(2) provide courses of instruction that may be provided 
     at military installations;
       ``(3) incorporate alternative approaches to achieve teacher 
     certification such as innovative methods to gaining field 
     based teaching experiences, and assessments of background and 
     experience as related to skills, knowledge and abilities 
     required of elementary or secondary school teachers; and
       ``(4) provide for the delivery of courses through distance 
     education methods.
       ``(b) Applications Procedures.--

[[Page 7757]]

       ``(1) In general.--An institution of higher education, or a 
     consortia of such institutions, that desires to enter into an 
     memorandum under subsection (a) shall prepare and submit to 
     the administering Secretary a proposal, at such time, in such 
     manner, and containing such information as the administering 
     Secretary may require, including an assurance that the 
     institution is operating one or more programs that lead to 
     State approved teacher certification.
       ``(2) Preference.--The administering Secretary shall give a 
     preference to institutions (or consortia) submitting 
     proposals that provide for cost sharing with respect to the 
     program involved.''
                                  ____

  SA 630. Ms. CANTWELL (for herself and Mr. Harkin) 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 379, between lines 19 and 20, insert the following:

     ``SEC. __. NATIONAL DIGITAL SCHOOL DISTRICTS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to address the important role that technology and the 
     Internet can play in enhancing and improving education in the 
     schools of the United States when resources are allocated 
     strategically and effectively;
       ``(2) to assist State and local school administrators of 
     the United States in effectively devoting resources on proven 
     methods to incorporate the use of high technology and the 
     Internet in educational curricula;
       ``(3) to encourage the development of innovative strategic 
     approaches to the appropriate and effective use of technology 
     in teaching, learning, and managing elementary schools and 
     secondary schools;
       ``(4) to evaluate and assess the various strategies 
     described in paragraph (3) and provide models for the 
     innovative use of technology in schools in the United States; 
     and
       ``(5) to encourage partnerships between educational 
     institutions and the private sector relating to the use of 
     technology described in paragraph (3) in schools in the 
     United States.
       ``(b) Definitions.--In this section:
       ``(1) State.--The term `State' means 1 of the several 
     States of the United States and the District of Columbia.
       ``(2) State educational agency.--The term `State 
     educational agency' means the State educational agency of a 
     State.
       ``(c) Grants to State Educational Agencies.--
       ``(1) Fiscal year 2002.--For fiscal year 2002, the 
     Secretary shall award 1 grant to each State educational 
     agency to make subgrants to local educational agencies to 
     create national digital school districts.
       ``(2) Fiscal year 2003.--
       ``(A) In general.--For fiscal year 2003, the Secretary 
     shall award 1 grant to each State educational agency to pay 
     for the Federal share of the cost of making subgrants to 
     local educational agencies to create national digital school 
     districts.
       ``(B) Federal share.--The Federal share of the cost 
     referred to in subparagraph (A) is 50 percent.
       ``(3) State applications.--To be eligible to receive a 
     grant under this section, a State educational agency shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(d) Subgrants to Local Educational Agencies.--
       ``(1) Subgrants.--A State educational agency that receives 
     a grant under subsection (c) shall use not less than 95 
     percent of the funds made available through the grant to make 
     subgrants, on a competitive basis, to local educational 
     agencies.
       ``(2) Notice.--The State educational agency shall provide 
     notice to all local educational agencies in the State of the 
     availability of subgrants under this subsection and of the 
     requirements for applying for the subgrants.
       ``(3) Local applications.--To be eligible to receive a 
     subgrant under this section, 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.
       ``(4) Use of subgrants.--A local educational agency that 
     receives a subgrant under this subsection may use the funds 
     made available through the subgrant to create a national 
     digital school district by--
       ``(A) acquiring technology;
       ``(B) providing teacher mentoring; and
       ``(C) carrying out other efforts to achieve the purposes of 
     this section.
       ``(e) Academic Research.--The Secretary shall award grants, 
     on a competitive basis, for fiscal year 2004 to institutions 
     of higher education, to conduct research on the effectiveness 
     of the technology used in national digital school districts.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $100,000,000 for fiscal year 2002, $50,000,000 for fiscal 
     year 2003, and $25,000,000 for fiscal year 2004.
       ``(g) References.--References in this part to activities 
     carried out under this part or funds provided to carry out 
     this part shall not be considered to be references to 
     activities carried out under this section or funds provided 
     to carry out this section.
                                  ____

  SA 631. Mr. LEVIN (for himself, Ms. Landrieu, and Mr. Cochran) 
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 189, between lines 17 and 18, insert the following:
       ``(6) Prime time family reading time.--A State that 
     receives a grant under this section may expend funds provided 
     under the grant for a humanities-based family literacy 
     program which bonds families around the acts of reading and 
     using public libraries.
                                  ____

  SA 632. Mr. LEVIN (for himself and Mr. Jeffords) 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.   . INCREASE IN NUMBER OF MONTHS OF VOCATIONAL 
                   EDUCATIONAL TRAINING COUNTED AS A WORK ACTIVITY 
                   UNDER THE TANF PROGRAM.

       Section 407(d)(8) of the Social Security Act (42 U.S.C. 
     607(d)(8)) is amended by striking ``12'' and inserting 
     ``24''.
                                  ____

  SA 633. Mr. LEVIN 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 328, line 21, insert before the semicolon the 
     following: ``, together with knowledge in the use of computer 
     related technology to enhance student learning''.
                                  ____

  SA 634. Mr. STEVENS 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 782, insert the following new subsections after 
     line 17:
       ``(J) remedial and enrichment programs to assist Alaska 
     Native students in succeeding in standardized tests;
       ``(K) education and training of Alaska Native Students 
     enrolled in a degree program that will lead to certification 
     as teachers;
       ``(L) parenting education for parents and caregivers of 
     Alaska Native children to improve parenting skills (including 
     skills relating to discipline and cognitive development), 
     including parenting education provided through in-home 
     visitation of new mothers;
       ``(M) cultural education programs operated by the Alaska 
     Native Heritage Center and designed to share the Alaska 
     Native culture with schoolchildren;
       ``(N) a cultural exchange program operated by the Alaska 
     Humanities Forum and designed to share Alaska Native culture 
     with urban students in a rural setting, which shall be known 
     as the Rose Cultural Exchange Program;
       ``(O) activities carried through Even Start programs 
     carried out under part B of title I and Head Start programs 
     carried out under the Head Start Act, including the training 
     of teachers for programs described in this subparagraph;
       ``(P) other early learning and preschool programs;
       ``(Q) dropout prevention programs such as Partners for 
     Success; and
       ``(R) Alaska Initiative for Community Engagement program.''
       On page 783, strike lines 8 through 11 and insert in lieu 
     thereof the following:
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section the 
     same amount as the authorization provided for activities 
     under the Native Hawaiian Education Act in section 7205 of 
     this Act for fiscal year 2002 and such sums as may be 
     necessary for each of the 6 succeeding fiscal years.
       ``(d) Availability of Funds.--Of the funds appropriated and 
     made available under this section for a fiscal year, the 
     Secretary shall make available not less than $1,000,000 to 
     support activities described in subsection (a)(2)(L), not 
     less than $1,000,000 to support activities described in 
     subsection (a)(2)(M), not less than $1,000,000 to support 
     activities described in subsection (a)(2)(N); not less than 
     $2,000,000 to support activities described in subsection 
     (a)(2)(Q); and not less than $2,000,000 to support activities 
     described in subsection (a)(2)(R).''
                                  ____

  SA 635. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill S. 1, to extend programs

[[Page 7758]]

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. 203. CLOSE UP FELLOWSHIP PROGRAM.

       Title II of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6601 et seq.), as amended by section 202, is 
     further amended by adding at the end the following:

                 ``PART E--CLOSE UP FELLOWSHIP PROGRAM

     ``SEC. __. FINDINGS.

       ``Congress makes the following findings:
       ``(1) The strength of our democracy rests with the 
     willingness of our citizens to be active participants in 
     their governance. For young people to be such active 
     participants, it is essential that they develop a strong 
     sense of responsibility toward ensuring the common good and 
     general welfare of their local communities, States and the 
     Nation.
       ``(2) For the young people of our country to develop a 
     sense of responsibility for their fellow citizens, 
     communities and country, our educational system must assist 
     them in the development of strong moral character and values.
       ``(3) Civic education about our Federal Government is an 
     integral component in the process of educating young people 
     to be active and productive citizens who contribute to 
     strengthening and promoting our democratic form of 
     government.
       ``(4) There are enormous pressures on teachers to develop 
     creative ways to stimulate the development of strong moral 
     character and appropriate value systems among young people, 
     and to educate young people about their responsibilities and 
     rights as citizens.
       ``(5) Young people who have economically disadvantaged 
     backgrounds, or who are from other under-served 
     constituencies, have a special need for educational programs 
     that develop a strong a sense of community and educate them 
     about their rights and responsibilities as citizens of the 
     United States. Under-served constituencies include those such 
     as economically disadvantaged young people in large 
     metropolitan areas, ethnic minorities, who are members of 
     recently immigrated or migrant families, Native Americans or 
     the physically disabled.
       ``(6) The Close Up Foundation has thirty years of 
     experience in providing economically disadvantaged young 
     people and teachers with a unique and highly educational 
     experience with how our federal system of government 
     functions through its programs that bring young people and 
     teachers to Washington, D.C. for a first-hand view of our 
     government in action.
       ``(7) It is a worthwhile goal to ensure that economically 
     disadvantaged young people and teachers have the opportunity 
     to participate in Close Up's highly effective civic education 
     program. Therefore, it is fitting and appropriate to provide 
     fellowships to students of limited economic means and the 
     teachers who work with such students so that the students and 
     teachers may participate in the programs supported by the 
     Close Up Foundation. It is equally fitting and appropriate to 
     support the Close Up Foundation's `Great American Cities' 
     program that focuses on character and leadership development 
     among economically disadvantaged young people who reside in 
     our Nation's large metropolitan areas.

     ``Subpart 1--Program for Middle and Secondary School Students

     ``SEC. __. ESTABLISHMENT.

       ``(a) General Authority.--The Secretary is authorized to 
     make grants in accordance with provisions of this subpart to 
     the Close Up Foundation of Washington, District of Columbia, 
     a nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing understanding of the Federal 
     Government among economically disadvantaged middle and 
     secondary school students.
       ``(b) Use of Funds.--Grants under this subpart shall be 
     used only to provide financial assistance to economically 
     disadvantaged students who participate in the program 
     described in subsection (a). Financial assistance received 
     pursuant to this subpart by such students shall be known as 
     the Close Up Fellowships.

     ``SEC. __. APPLICATIONS.

       ``(a) Application Required.--No grant under this subpart 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(b) Content of Application.--Each such application shall 
     contain provisions to assure--
       ``(1) that fellowship grants are made to economically 
     disadvantaged middle and secondary school students;
       ``(2) that every effort shall be made to ensure the 
     participation of students from rural and small town areas, as 
     well as from urban areas, and that in awarding fellowships to 
     economically disadvantaged students, special consideration 
     will be given to the participation of students with special 
     educational needs, including students with disabilities, 
     students with migrant parents and ethnic minority students; 
     and
       ``(3) the proper disbursement of the funds received under 
     this subpart.

     ``Subpart 2--Program for Middle and Secondary School Teachers

     ``SEC. __. ESTABLISHMENT.

       ``(a) General Authority.--The Secretary is authorized to 
     make grants in accordance with provisions of this subpart to 
     the Close Up Foundation of Washington, District of Columbia, 
     a nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of teaching skills enhancement for middle and 
     secondary school teachers.
       ``(b) Use of Funds.--Grants under this subpart shall be 
     used only to provide financial assistance to teachers who 
     participate in the program described in subsection (a). 
     Financial assistance received pursuant to this subpart by 
     such students shall be know as the Close Up Teacher 
     Fellowships.

     ``SEC. __. APPLICATIONS.

       ``(a) Application Required.--No grant under this subpart 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(b) Content of Application.--Each such application shall 
     contain provisions to assure--
       ``(1) that fellowship grants are made only to teachers who 
     have worked with at least one student from such teacher's 
     school who participates in the program described in section 
     __(a);
       ``(2) that no teacher in each school participating in the 
     programs provided for in section (a) may receive more than 
     one fellowship in any fiscal year; and
       ``(3) the proper disbursement of the funds received under 
     this subpart.

                 ``Subpart 3--Program for New Americans

     ``SEC. __. ESTABLISHMENT.

       ``(a) General Authority.--The Secretary is authorized to 
     make grants in accordance with provisions of this subpart to 
     the Close Up Foundation of Washington, District of Columbia, 
     a nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its 
     programs of increasing understanding of the Federal 
     Government among economically disadvantaged secondary school 
     students who are recent immigrants.
       ``(b) Definition.--For purposes of this subpart, the term 
     `recent immigrant student' means a student of a family that 
     immigrated to the United states within five years of the 
     students participation in the program.
       ``(c) Use of Funds.--Grants under this subpart shall be 
     used only to provide financial assistance to economically 
     disadvantaged recent immigrant students who participate in 
     the program described in subsection (a). Financial assistance 
     received pursuant to this subpart by such students shall be 
     know as the Close Up Fellowships for New Americans.

     ``SEC. __. APPLICATIONS.

       ``(a) Application Required.--No grant under this subpart 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(b) Content of Application.--Each such application shall 
     contain provisions to assure __(1) that fellowship grants are 
     made to economically disadvantaged secondary school students;
       ``(2) that every effort shall be made to ensure the 
     participation of recent immigrant students from rural and 
     small town areas, as well as from urban areas, and that in 
     awarding fellowships to economically disadvantaged recent 
     immigrant students, special consideration will be given to 
     the participation of those students with special educational 
     needs, including students with disabilities, students with 
     migrant parents and ethnic minority students;
       ``(3) that activities permitted by subsection (a) are fully 
     described; and
       ``(4) the proper disbursement of the funds received under 
     this subpart.

               ``Subpart 4--Great American Cities Program

     ``SEC. __. ESTABLISHMENT.

       ``(a) General Authority.--
       ``(1) In general.--The Secretary is authorized to make 
     grants in accordance with provisions of this subpart to the 
     Close Up Foundation of Washington, District of Columbia, a 
     nonpartisan, nonprofit foundation, for the purpose of 
     assisting the Close Up Foundation in carrying out its Great 
     American Cities program to develop strong moral character, 
     leadership qualities, a belief in community service and an 
     understanding of Federal Government policy-making among 
     economically disadvantaged young people who reside in large 
     metropolitan areas.
       ``(2) Definition.--For the purpose of this subpart, the 
     term `Great American Cities' means metropolitan areas as 
     defined by the criteria of the Council of the Great City 
     Schools.
       ``(b) Use of Funds.--Grants under this subpart shall be 
     used only to provide financial assistance to teachers and 
     economically disadvantaged secondary school students who 
     participate in the program described in subsection (a) and to 
     assist in the development and execution of the program. 
     Financial assistance received pursuant to this subpart by 
     such students shall be known as the Close Up Great American 
     Cities Fellowships.

[[Page 7759]]



     ``SEC. __. APPLICATIONS.

       ``(a) Application Required.--No grant under this subpart 
     may be made except upon an application at such time, in such 
     manner, and accompanied by such information as the Secretary 
     may reasonably require.
       ``(b) Content of Application.--Each such application shall 
     contain provisions to assure--
       ``(1) that fellowship grants are made to teachers and 
     economically disadvantaged secondary school students who 
     reside in large metropolitan areas;
       ``(2) that every effort shall be made to ensure the 
     participation of teachers and students from large 
     metropolitan areas, and that in awarding fellowships to the 
     teachers and economically disadvantaged students, special 
     consideration will be given to the participation of students 
     with special educational needs, including students with 
     disabilities and ethnic minority students; and
       ``(3) the proper disbursement of the funds received under 
     this subpart.

                    ``Subpart 5--General Provisions

     ``SEC. __. ADMINISTRATIVE PROVISIONS.

       ``(a) Accountability.--In consultation with the Secretary, 
     the Close Up Foundation will devise and implement procedures 
     to measure the efficacy of the programs authorized in 
     subparts 1, 2, 3 and 4 in attaining objectives that include: 
     providing young people with an increased understanding of the 
     Federal Government; heightening a sense of civic 
     responsibility among young people; and enhancing the skills 
     of educators in teaching young people about civic virtue, 
     citizenship competencies and the Federal Government.
       ``(b) General Rule.--Payments under this part may be made 
     in installments, in advance, or by way of reimbursement, with 
     necessary adjustments on account of underpayments or 
     overpayments.
       ``(c) Audit Rule.--The Comptroller General of the United 
     States or any of the Comptroller General's duly authorized 
     representatives shall have access for the purpose of audit 
     and examination to any books, documents, papers, and records 
     that are pertinent to any grant under this part.

     ``SEC. __. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out the provisions of subparts 1, 2, 3 and 4 of this 
     part $6,000,000 for fiscal year 2002 and such sums as may be 
     necessary for each of the four succeeding fiscal years.
       ``(b) Special Rule.--Of the funds appropriated pursuant to 
     subsection (a), not more than 30 percent may be used for 
     teachers associated with students participating in the 
     programs described in sections __ and __.''.
                                  ____

  SA 636. Mr. McCAIN 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, insert the following:

        TITLE  --EDUCATIONAL CHOICES FOR DISADVANTAGED CHILDREN.

     SEC.  01. PURPOSES.

       The purposes of this title are--
       (1) to assist the District of Columbia to--
       (A) give children from low-income families in the District 
     of Columbia the same choices among all elementary schools and 
     secondary schools and other academic programs as children 
     from wealthier families already have;
       (B) improve schools and other academic programs in the 
     District of Columbia by giving parents in low-income families 
     increased consumer power to choose the schools and programs 
     that the parents determine best fit the needs of their 
     children; and
       (C) more fully engage parents in the District of Columbia 
     in their children's schooling; and
       (2) to demonstrate, through a 3-year grant program, the 
     effects of a voucher program in the District of Columbia that 
     gives parents in low-income families--
       (A) choice among public, private, and religious schools for 
     their children; and
       (B) access to the same academic options as parents in 
     wealthy families have for their children.

     SEC.  02. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this title (other than section   09) $24,000,000 
     for each of fiscal years 2002 through 2005.
       (b) Evaluation.--There is authorized to be appropriated to 
     carry out section   09 $1,000,000 for each of fiscal years 
     2002 through 2005.

     SEC.   03. PROGRAM AUTHORITY.

       (a) In General.--From amounts made available to carry out 
     this title, the Secretary of Education shall award grants to 
     the District of Columbia to enable the District of Columbia 
     to carry out educational choice programs that provide 
     scholarships, in accordance with this title.
       (b) Limit on Federal Administrative Expenditures.--The 
     Secretary of Education may reserve not more than 5 percent of 
     the amounts appropriated under section   02(a) for a fiscal 
     year to the District of Columbia Board of Education or other 
     entity that exercises administrative jurisdiction over the 
     District of Columbia public schools, the Superintendent of 
     the District of Columbia public schools, and other school 
     scholarship programs in the District of Columbia, to pay for 
     the costs of administering this title.

     SEC.  04. ELIGIBLE SCHOOLS.

       (a) Eligibility.--
       (1) In general.--Schools identified under paragraph (2) 
     shall be considered to be eligible schools under this title. 
     The identification under paragraph (2) shall be carried out 
     by the District of Columbia Board of Education or other 
     entity that exercises administrative jurisdiction over the 
     District of Columbia public schools, the Superintendent of 
     the District of Columbia public schools, and other school 
     scholarship programs in the District of Columbia.
       (2) Determination.--Not later than 180 days after the date 
     of enactment of this title, the District of Columbia shall 
     identify the public elementary schools and secondary schools 
     that are at or below the 25th percentile for academic 
     performance of schools in the District of Columbia.
       (b) Performance.--The District of Columbia shall determine 
     the academic performance of a school under this section based 
     on such criteria as the District of Columbia may consider to 
     be appropriate.

     SEC.  05. SCHOLARSHIPS.

       (a) In General.--
       (1) Scholarship awards.--With funds awarded under this 
     title, District of Columbia shall provide scholarships to the 
     parents of eligible children, in accordance with subsections 
     (b) and (c). The District of Columbia shall ensure that the 
     scholarships may be redeemed for elementary or secondary 
     education for the eligible children at any of a broad variety 
     of public and private schools, including religious schools, 
     in the District of Columbia.
       (2) Scholarship amount.--The amount of each scholarship 
     shall be $2000 per year.
       (3) Tax exemption.--Scholarships awarded under this title 
     shall not be considered income of the parents for Federal 
     income tax purposes or for determining eligibility for any 
     other Federal program.
       (b) Eligible Child.--To be eligible to receive a 
     scholarship under this title, a child shall be--
       (1) a child who is enrolled in a public elementary school 
     or secondary school that is an eligible school; and
       (2) a member of a family with a family income that is not 
     more than 200 percent of the poverty line.
       (c) Award Rules.--
       (1) Priority.--In providing scholarships under this title, 
     the District of Columbia shall provide scholarships for 
     eligible children through a lottery system administered for 
     all eligible schools in the District of Columbia.
       (2) Continuing eligibility.--The District of Columbia shall 
     provide a scholarship in each year of the program to each 
     child who received a scholarship during the previous year of 
     the program, unless--
       (A) the child no longer resides in the area served by an 
     eligible school;
       (B) the child no longer attends school;
       (C) the child's family income exceeds, by 20 percent or 
     more, 200 percent of the poverty line;
       (D) the child is expelled; or
       (E) the child is convicted of possession of a weapon on 
     school grounds, convicted of a violent act against another 
     student or a member of the school's faculty, or convicted of 
     a felony, including felonious drug possession.

     SEC.  06. USES OF FUNDS.

       Any scholarship awarded under this title for a year shall 
     be used--
       (1) first, for--
       (A) the payment of tuition and fees at the school selected 
     by the parents of the child for whom the scholarship was 
     provided; and
       (B) the reasonable costs of the child's transportation to 
     the school, if the school is not the school to which the 
     child would be assigned in the absence of a program under 
     this title;
       (2) second, if the parents so choose, to obtain 
     supplementary academic services for the child, at a cost of 
     not more than $500, from any provider chosen by the parents, 
     that the District of Columbia determines is capable of 
     providing such services and has an appropriate refund policy; 
     and
       (3) finally, for educational programs that help the 
     eligible child achieve high levels of academic excellence in 
     the school attended by the eligible child, if the eligible 
     child chooses to attend a public school.

     SEC.  07. REQUIREMENT.

       The District of Columbia shall allow lawfully operating 
     public and private elementary schools and secondary schools, 
     including religious schools, if any, serving the area 
     involved to participate in the program.

     SEC.  08. EFFECT OF PROGRAMS.

       (a) Title I.--Notwithstanding any other provision of law, 
     if the District of Columbia would, in the absence of an 
     educational choice program that is funded under this title, 
     provide services to a participating eligible child under part 
     A of title I of the Elementary and Secondary Education Act of

[[Page 7760]]

     1965 (20 U.S.C. 6311 et seq.), the District of Columbia shall 
     ensure the provision of such services to such child.
       (b) Individuals With Disabilities.--Nothing in this title 
     shall be construed to affect the requirements of part B of 
     the Individuals with Disabilities Education Act (20 U.S.C. 
     1411 et seq.).
       (c) Aid.--
       (1) In general.--Scholarships under this title shall be 
     considered to aid families, not institutions. For purposes of 
     determining Federal assistance under Federal law, a parent's 
     expenditure of scholarship funds under this title at a school 
     or for supplementary academic services shall not constitute 
     Federal financial aid or assistance to that school or to the 
     provider of supplementary academic services.
       (2) Supplementary academic services.--
       (A) In general.--Notwithstanding paragraph (1), a school or 
     provider of supplementary academic services that receives 
     scholarship funds under this title shall, as a condition of 
     participation under this title, comply with the provisions of 
     title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
     seq.) and section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 794).
       (B) Regulations.--The Secretary of Education shall 
     promulgate regulations to implement the provisions of 
     subparagraph (A), taking into account the purposes of this 
     title and the nature, variety, and missions of schools and 
     providers that may participate in providing services to 
     children under this title.
       (d) Other Federal Funds.--No Federal, State, or local 
     agency may, in any year, take into account Federal funds 
     provided to the District of Columbia or to the parents of any 
     child under this title in determining whether to provide any 
     other funds from Federal, State, or local resources, or in 
     determining the amount of such assistance, to the District of 
     Columbia or to a school attended by such child.
       (e) No Discretion.--Nothing in this title shall be 
     construed to authorize the Secretary of Education to exercise 
     any direction, supervision, or control over the curriculum, 
     program of instruction, administration, or personnel of any 
     educational institution or school participating in a program 
     under this title.

     SEC.  09. EVALUATION.

       The Comptroller General of the United States shall conduct 
     an evaluation of the program authorized by this title. Such 
     evaluation shall, at a minimum--
       (1) assess the implementation of educational choice 
     programs assisted under this title and their effect on 
     participants, schools, and communities in the school 
     districts served, including parental involvement in, and 
     satisfaction with, the program and their children's 
     education;
       (2) compare the educational achievement of participating 
     eligible children with the educational achievement of similar 
     non-participating children before, during, and after the 
     program; and
       (3) compare--
       (A) the educational achievement of eligible children who 
     use scholarships to attend schools other than the schools the 
     children would attend in the absence of the program; with
       (B) the educational achievement of children who attend the 
     schools the children would attend in the absence of the 
     program.

     SEC.  10. ENFORCEMENT.

       (a) Regulations.--The Secretary of Education shall 
     promulgate regulations to enforce the provisions of this 
     title.
       (b) Private Cause.--No provision or requirement of this 
     title shall be enforced through a private cause of action.

     SEC.  11. WASTEFUL SPENDING AND FUNDING.

       (a) In General.--The Committee on Finance and the Committee 
     on Appropriations of the Senate and the Committee on Ways and 
     Means and the Committee on Appropriations of the House of 
     Representatives shall identify wasteful spending by the 
     Federal Government as a means of providing funding for this 
     title.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this title, the committees referred to in 
     subsection (a) shall jointly prepare and submit to the 
     Majority and Minority Leaders of the Senate and the Speaker 
     and Minority Leader of the House of Representatives, a report 
     concerning the spending identified under such subsection.

     SEC.  12. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

       (a) Definitions.--In this section--
       (1) the term ``Board'' means the Board of Directors of the 
     Corporation established under subsection (c); and
       (2) the term ``Corporation'' means the District of Columbia 
     Scholarship Corporation established under subsection (b).
       (b) General Requirements.--
       (1) In general.--There is authorized to be established a 
     private, nonprofit corporation, to be known as the ``District 
     of Columbia Scholarship Corporation'', which is neither an 
     agency nor an establishment of the United States Government 
     or the District of Columbia government.
       (2) Duties.--The Corporation shall administer, publicize, 
     and evaluate the scholarship program established under this 
     section, and determine student and school eligibility for 
     participation in the program.
       (3) Consultation.--The Corporation shall exercise its 
     authority in consultation with the Board of Education, the 
     Superintendent, the Consensus Commission, and other school 
     scholarship programs in the District of Columbia.
       (4) Application of provisions.--The Corporation shall be 
     subject to the provisions of this section, and, to the extent 
     that it is consistent with this section, to the District of 
     Columbia Nonprofit Corporation Act (D.C. Code, 29-501 et 
     seq.).
       (5) Residence.--The Corporation shall have its place of 
     business in the District of Columbia, and shall be 
     considered, for purposes of venue in civil actions, to be a 
     resident of the District of Columbia.
       (6) Fund.--There is established in the District of Columbia 
     general fund, a fund that shall be known as the ``District of 
     Columbia Scholarship Fund''.
       (7) Disbursement.--The Mayor of the District of Columbia 
     shall disburse to the Corporation, before October 15 of each 
     fiscal year or not later than 15 days after the date of 
     enactment of an Act making appropriations for the District of 
     Columbia for such year, whichever occurs later, such funds as 
     have been appropriated to the District of Columbia 
     Scholarship Fund for the fiscal year for which such 
     disbursement is made.
       (8) Availability.--Funds authorized to be appropriated 
     under this section shall remain available until expended.
       (9) Uses.--Funds authorized to be appropriated under this 
     section shall be used by the Corporation in a prudent and 
     financially responsible manner, solely for awarding 
     scholarships and for administrative costs.
       (10) Authorization.--
       (A) In general.--There is authorized to be appropriated to 
     the District of Columbia Scholarship Fund for fiscal years 
     2002 through 2004,  .
       (B) Limitation on administrative costs.--Not more than 3 
     percent of the amount appropriated to carry out this section 
     for any fiscal year may be used by the Corporation for any 
     purpose other than assistance to students.
       (c) Organization and Management; Board of Directors.--
       (1) Board of directors; membership.--
       (A) In general.--The Corporation shall have a Board of 
     Directors comprised of 7 members, with 6 members of the Board 
     appointed by the President not later than 30 days after 
     receipt of nominations from the Speaker of the House of 
     Representatives, the Majority Leader of the Senate, Minority 
     Leader of the Senate in accordance with this paragraph.
       (B) House nominations.--The President shall appoint 2 
     members of the Board from a list of not fewer than 6 
     individuals nominated by the Speaker of the House of 
     Representatives, and 1 member of the Board from a list of not 
     fewer than 3 individuals nominated by the Minority Leader of 
     the House of Representatives.
       (C) Senate nominations.--The President shall appoint 2 
     members of the Board from a list of not fewer than 6 
     individuals nominated by the Majority Leader of the Senate, 
     and 1 member of the Board from a list of not fewer than 3 
     individuals nominated by the Minority Leader of the Senate.
       (D) Deadline.--The Speaker and Minority Leader of the House 
     of Representatives and the Majority Leader and Minority 
     Leader of the Senate shall submit their nominations to the 
     President not later than 30 days after the date of enactment 
     of this Act.
       (E) Appointee of mayor.--The Mayor of the District of 
     Columbia shall appoint 1 member of the Board not later than 
     60 days after the date of enactment of this Act.
       (F) Possible interim members.--If the President does not 
     appoint the 6 members of the Board in the 30-day period 
     described in subparagraph (A), then the Speaker of the House 
     of Representatives and the Majority Leader of the Senate 
     shall each appoint 2 members of the Board, and the Minority 
     Leader of the House of Representatives and the Minority 
     Leader of the Senate shall each appoint 1 member of the 
     Board, from among the individuals nominated pursuant to 
     subparagraphs (A) and (B), as the case may be. The appointees 
     under the preceding sentence, together with the appointee of 
     the Mayor of the District of Columbia, shall serve as an 
     interim Board, with all the powers and other duties of the 
     Board described in this section, until the President makes 
     the appointments as described in this subsection.
       (2) Powers.--All powers of the Corporation shall vest in 
     and be exercised under the authority of the Board.
       (3) Elections.--Members of the Board shall elect 1 of the 
     members of the Board to serve as chairperson of the Board.
       (4) Residency.--All members appointed to the Board shall be 
     residents of the District of Columbia at the time of 
     appointment and while serving on the Board.
       (5) Nonemployee.--No member of the Board may be an employee 
     of the United States Government or the District of Columbia 
     government when appointed to or during tenure on the Board, 
     unless the individual is on a leave of absence from such a 
     position while serving on the Board.
       (6) Incorporation.--The members of the initial Board shall 
     serve as incorporators and

[[Page 7761]]

     shall take whatever steps are necessary to establish the 
     Corporation under the District of Columbia Nonprofit 
     Corporation Act (D.C. Code 29-501 et seq.).
       (7) General term.--The term of office of each member shall 
     be 3 years, except that any member appointed to fill a 
     vacancy occurring prior to the expiration of the term for 
     which the predecessor was appointed shall be appointed for 
     the remainder of such term.
       (8) No benefit.--No part of the income or assets of the 
     Corporation shall inure to the benefit of any Director, 
     officer, or employee of the Corporation, except as salary or 
     reasonable compensation for services.
       (9) Political activity.--The Corporation may not contribute 
     to or otherwise support any political party or candidate for 
     elective public office.
       (10) No officers or employees.--The members of the Board 
     shall not, by reason of such membership, be considered to be 
     officers or employees of the United States Government or the 
     District of Columbia government.
       (11) Stipends.--The members of the Board, while attending 
     meetings of the Board or while engaged in duties related to 
     such meetings or other activities of the Board pursuant to 
     this section, shall be provided a stipend. Such stipend shall 
     be at the rate of $150 per day, for which the member of the 
     Board is officially recorded as having worked, except that no 
     member may be paid a total stipend amount in any calendar 
     year in excess of $5,000.
       (d) Officers and Staff.--
       (1) Executive director.--The Corporation shall have an 
     Executive Director, and such other staff, as may be appointed 
     by the Board for terms and at rates of compensation, not to 
     exceed level EG-16 of the Educational Service of the District 
     of Columbia, to be fixed by the Board.
       (2) Staff.--With the approval of the Board, the Executive 
     Director may appoint and fix the salary of such additional 
     personnel as the Executive Director considers appropriate.
       (3) Annual rate.--No staff of the Corporation may be 
     compensated by the Corporation at an annual rate of pay that 
     is greater than the annual rate of pay of the Executive 
     Director.
       (4) Service.--All officers and employees of the Corporation 
     shall shall serve at the pleasure of the Board.
       (5) Qualification.--No political test or qualification may 
     be used in selecting, appointing, promoting, or taking other 
     personnel actions with respect to officers, agents, or 
     employees of the Corporation.
       (e) Powers of the Corporation.--
       (1) Generally.--The Corporation is authorized to obtain 
     grants from, and make contracts with, individuals and with 
     private, State, and Federal agencies, organizations, and 
     institutions.
       (2) Hiring authority.--The Corporation may hire, or accept 
     the voluntary services of, consultants, experts, advisory 
     boards, and panels to aid the Corporation in carrying out 
     this section.
                                  ____

  SA 637. 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:

       Beginning on page 141, strike line 18 and all that follows 
     through line 15 on page 143, and insert the following:
       ``(c) Special Funding Rules.--Notwithstanding any other 
     provision of law, a State shall not receive under this part 
     for fiscal year 2000 or any succeeding fiscal year, an amount 
     that--
       ``(1) exceeds by more than 10 percent the amount the State 
     received under this part for fiscal year 1999; and
       ``(2) is less than 0.25 percent of the amount appropriated 
     to carry out this part for the fiscal year for which the 
     determination is made.
       Beginning on page 144, line 23, strike ``year is'' and all 
     that follows through line 8 on page 145, and insert ``year 
     shall bear the same relation to the amount appropriated under 
     section 1002(a) for the fiscal year as the number of children 
     counted under section 1124(c) for the local educational 
     agency bears to the number of children counted under section 
     1124(c) for all local educational agencies in all States.''.
       Beginning on page 149, strike line 23 and all that follows 
     through line 11 on page 150, and insert the following:
       ``(3) Puerto rico.--The grant which the Commonwealth of 
     Puerto Rico shall be eligible to receive under this section 
     for each fiscal year is equal to the amount received by the 
     Commonwealth of Puerto Rico under this section for fiscal 
     year 1999.
       Beginning on page 155, strike line 13 and all that follows 
     through line 3 on page 156.
       On page 161, line 11, strike ``year shall'' and all that 
     follows through line 16, and insert ``year shall bear the 
     same relation to the amount made available to carry out this 
     section for the fiscal year as the number of children counted 
     under section 1124(c) for the local educational agency bears 
     to the number of children counted under section 1124(c) for 
     all local educational agencies in all States.''.
       On page 161, strike lines 17 through 23, and insert the 
     following:
       ``(2) Puerto rico.--The amount of the grant for which the 
     Commonwealth of Puerto Rico is eligible under this section is 
     equal to the amount received by the Commonwealth of Puerto 
     Rico under this section for fiscal year 1999.
                                  ____

  SA 638. Mr. NELSON of Florida 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 69, between lines 9 and 10, insert the following:
       ``(6) Report to congress.--The Secretary shall report 
     annually to Congress--
       ``(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 
     described in subsection (b)(3), including the disaggregated 
     results for the categories of students described in 
     subsection (b)(2)(B)(v)(II);
       ``(C) the number and name of each school identified for 
     school improvement under section 1116(c), the reason why each 
     school was so identified, and the measures taken to address 
     the performance problems of such schools; and
       ``(D) in any year before the States begin to provide the 
     information described in paragraph (B) to the Secretary, 
     information on the results of student assessments (including 
     disaggregated results) required under this section.
                                  ____

  SA 639. 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:

       Beginning on page 141, strike line 18 and all that follows 
     through line 15 on page 143, and insert the following:
       ``(c) Special Funding Rules.--Notwithstanding any other 
     provision of law, a State shall not receive under this part 
     for fiscal year 2000 or any succeeding fiscal year, an amount 
     that--
       ``(1) exceeds by more than 10 percent the amount the State 
     received under this part for fiscal year 1999; and
       ``(2) is less than 0.25 percent of the amount appropriated 
     to carry out this part for the fiscal year for which the 
     determination is made.
       Beginning on page 144, line 23, strike ``year is'' and all 
     that follows through line 8 on page 145, and insert ``year 
     shall bear the same relation to the amount appropriated under 
     section 1002(a) for the fiscal year as the number of children 
     counted under section 1124(c) for the local educational 
     agency bears to the number of children counted under section 
     1124(c) for all local educational agencies in all States.''.
       Beginning on page 149, strike line 23 and all that follows 
     through line 11 on page 150, and insert the following:
       ``(3) Puerto rico.--The grant which the Commonwealth of 
     Puerto Rico shall be eligible to receive under this section 
     for each fiscal year is equal to the amount received by the 
     Commonwealth of Puerto Rico under this section for fiscal 
     year 1999.
       Beginning on page 155, strike line 13 and all that follows 
     through line 3 on page 156.
       On page 161, line 11, strike ``year shall'' and all that 
     follows through line 16, and insert ``year shall bear the 
     same relation to the amount made available to carry out this 
     section for the fiscal year as the number of children counted 
     under section 1124(c) for the local educational agency bears 
     to the number of children counted under section 1124(c) for 
     all local educational agencies in all States.''.
       On page 161, strike lines 17 through 23, and insert the 
     following:
       ``(2) Puerto rico.--The amount of the grant for which the 
     Commonwealth of Puerto Rico is eligible under this section is 
     equal to the amount received by the Commonwealth of Puerto 
     Rico under this section for fiscal year 1999.
                                  ____

  SA 640. Mr. DORGAN (for himself, Mr. Reid, Mr. Durbin, Ms. Boxer, 
Mrs. Feinstein, and Mrs. Murray) 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 Senate finds:
       The price of energy has skyrocketed in recent months;
       The California consumers have seen a 10-fold increase in 
     electricity prices in less than 2 years;
       Natural gas prices have doubled in some areas, as compared 
     with a year ago;

[[Page 7762]]

       Gasoline prices are close to $2.00 per gallon now and are 
     expected to increase to as much as $3.00 per gallon this 
     summer;
       Energy companies have seen their profits doubled, tripled, 
     and in some cases even quintupled; and
       High energy prices are having a detrimental effect on 
     families across the country and threaten economic growth.

     SECTION 1. SENSE OF THE SENATE CONCERNING THE NEED TO 
                   ESTABLISH A JOINT COMMITTEE OF THE SENATE AND 
                   HOUSE OF REPRESENTATIVES TO INVESTIGATE THE 
                   RAPIDLY INCREASING ENERGY PRICES ACROSS THE 
                   COUNTRY AND TO DETERMINE WHAT IS CAUSING THE 
                   INCREASES.

       It is the sense of the Senate that there should be 
     established a joint committee of the Senate and House of 
     Representatives to--
       (1) study the dramatic increases in energy prices 
     (including increases in the prices of gasoline, natural gas, 
     electricity, and home heating oil);
       (2) investigate the cause of the increases;
       (3) make findings of fact; and
       (4) make such recommendations, including recommendations 
     for legislation and any administrative or other actions, as 
     the joint committee determines to be appropriate.
                                  ____

  SA 641. Mr. CONRAD 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 end of title II, add the following:

     SEC. 203. PROFESSIONAL DEVELOPMENT.

       Section 3141(b)(2)(A) (20 U.S.C. 6861(b)(2)(A)) is 
     amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii)(V), by adding ``and'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(iii) the provision of incentives, including bonus 
     payments, to recognized educators who achieve the National 
     Education Technology Standards, or an information technology 
     certification that is directly related to the curriculum or 
     content area in which the teacher provides instruction;''.
                                  ____

  SA 642. Mr. ENZI 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 178, between lines 19 and 20, insert the following:
       ``(4) Reservation from appropriations.--From the amounts 
     appropriated under section 1002(b)(2) to carry out this 
     subpart for a fiscal year, the Secretary shall--
       ``(A) reserve \1/2\ of 1 percent for allotments for the 
     Virgin Islands, Guam, American Samoa and the Commonwealth of 
     the Northern Mariana Islands, to be distributed among these 
     outlying areas on the basis of their relative need, as 
     determined by the Secretary in accordance with the purposes 
     of this subpart; and
       ``(B) reserve \1/2\ of 1 percent for allotments for the 
     Secretary of the Interior for programs under this subpart in 
     schools operated or funded by the Bureau of Indian Affairs.
       On page 272, line 10, strike ``and the Republic of Palau'' 
     and insert ``Republic of Palau, and Bureau of Indian Affairs 
     for purposes of serving schools funded by the Bureau''.
       On page 776, line 10, insert before the semicolon the 
     following: ``or, in the case of a Bureau of Indian Affairs 
     funded school, by the Secretary of the Interior''
       On page 807, strike lines 1 through 18.
       On page 808, strike lines 15 and 16.
                                  ____

  SA 643. Mr. ENZI (for himself and Ms. Collins, Mrs. Murray, and Mr. 
Bingaman) 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 99, between line 22 and 23, Title I, Sec. 
     1116(8)(B), is amended by inserting:
       (1) Special rule.--Rural local educational agencies, as 
     described in Sec. 5231(b) may apply to the Secretary for a 
     waiver of the requirements under this sub-paragraph provided 
     that they submit to the Secretary an alternative plan for 
     making significant changes to improve student performance in 
     the school, such as providing extended learning time through 
     an academically-focused after school program for all 
     students, changing school administration or implementing a 
     research-based, proven-effective, whole-school reform 
     program. The Secretary shall approve or reject an application 
     for a waiver submitted under this rule within 30 days of the 
     submission of information required by the Secretary to apply 
     for the waiver. If the Secretary fails to make a 
     determination with respect to the waiver application within 
     30 days, the application shall be treated as having been 
     accepted by the Secretary.
                                  ____

  SA 644. Mr. ENZI 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:

                  TITLE __--PUBLIC SCHOOL CONSTRUCTION

                     Subtitle A--General Provisions

     SEC. __. PUBLIC SCHOOL CONSTRUCTION FINANCING OPTIONS.

       (a) In General.--For the purpose of providing funding for 
     qualified public school facility construction projects, a 
     State may choose 1 of the Federal funding mechanisms 
     described in subtitles B, C, or D.
       (b) Qualified Public School Facility Construction 
     Project.--For purposes of this title--
       (1) In general.--The term ``qualified public school 
     facility construction project'' means a construction project 
     selected by the State with respect to a public school 
     facility--
       (A) 50 percent of the enrollment population of which is 
     from families whose income does not exceed the poverty level, 
     as determined by annual census data published by the 
     Department of Labor,
       (B) located in a district in which the district bonded 
     indebtedness or the indebtedness authorized by the district 
     electorate and payable from general property tax levies of 
     the districts within the agency's jurisdiction has reached or 
     exceeded 90 percent of the debt limitation imposed upon 
     school districts pursuant to State law,
       (C) with respect to which the local educational agency has 
     made its best effort to maintain the existing facility, and
       (D) among all public school facilities in the State meeting 
     the criteria under subparagraphs (A), (B), and (C) is among 
     the 10 percent of such facilities most in need.
       (2) Local educational agency.--The term ``local educational 
     agency'' has the meaning given to such term by section 14101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 8801).
       (3) Public school facility.--The term ``public school 
     facility'' means any public elementary or secondary school 
     facility, but shall not include--
       (A) any stadium or other facility primarily used for 
     athletic contests or exhibitions, or other events for which 
     admission is charged to the general public; or
       (B) any facility that is not owned by a State or local 
     government or any agency or instrumentality of a State or 
     local government.
       (4) Public schools.--The terms ``elementary school'' and 
     ``secondary school'' have the meanings given such terms by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 8801).
       (5) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

Subtitle B--Liberalization of Tax-Exempt Financing Rules for Qualified 
              Public School Facility Construction Projects

     SEC. __. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION 
                   FOR GOVERNMENTAL BONDS USED TO FINANCE 
                   QUALIFIED PUBLIC SCHOOL FACILITY CONSTRUCTION 
                   PROJECTS.

       (a) In General.--Section 148(f)(4)(D)(vii) of the Internal 
     Revenue Code of 1986 (relating to increase in exception for 
     bonds financing public school capital expenditures) is 
     amended by striking ``$5,000,000'' the second place it 
     appears and inserting ``$5,000,000 plus $5,000,000 solely for 
     qualified public school facility construction projects (as 
     defined in section __(b)(1) of the Better Education for 
     Students and Teachers Act)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after December 31, 2001.

     SEC. __. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY 
                   BONDS AS EXEMPT FACILITY BONDS.

       (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
     section 142 of the Internal Revenue Code of 1986 (relating to 
     exempt facility bond) is amended by striking ``or'' at the 
     end of paragraph (11), by striking the period at the end of 
     paragraph (12) and inserting ``, or'', and by adding at the 
     end the following new paragraph:
       ``(13) qualified public educational facilities.''.
       (b) Qualified Public Educational Facilities.--Section 142 
     of such Code (relating to exempt facility bond) is amended by 
     adding at the end the following new subsection:
       ``(k) Qualified Public Educational Facilities.--
       ``(1) In general.--For purposes of subsection (a)(13), the 
     term `qualified public educational facility' means any public 
     school facility within the meaning of section __(b)(1) of the 
     Better Education for Students and Teachers Act), owned by a 
     private,

[[Page 7763]]

     for-profit corporation pursuant to a public-private 
     partnership agreement with a State or local educational 
     agency described in paragraph (2).
       ``(2) Public-private partnership agreement described.--A 
     public-private partnership agreement is described in this 
     paragraph if it is an agreement--
       ``(A) under which the corporation agrees--
       ``(i) to do 1 or more of the following: construct, 
     rehabilitate, refurbish, or equip a school facility, and
       ``(ii) at the end of the term of the agreement, to transfer 
     the school facility to such agency for no additional 
     consideration, and
       ``(B) the term of which does not exceed the term of the 
     issue to be used to provide the school facility.
       ``(3) Annual aggregate face amount of tax-exempt 
     financing.--
       ``(A) In general.--An issue shall not be treated as an 
     issue described in subsection (a)(13) if the aggregate face 
     amount of bonds issued by the State pursuant thereto (when 
     added to the aggregate face amount of bonds previously so 
     issued during the calendar year) exceeds an amount equal to 
     the greater of--
       ``(i) $10 multiplied by the State population, or
       ``(ii) $5,000,000.
       ``(B) Allocation rules.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph, the State may allocate the amount described in 
     subparagraph (A) for any calendar year in such manner as the 
     State determines appropriate.
       ``(ii) Rules for carryforward of unused limitation.--A 
     State may elect to carry forward an unused limitation for any 
     calendar year for 3 calendar years following the calendar 
     year in which the unused limitation arose under rules similar 
     to the rules of section 146(f), except that the only purpose 
     for which the carryforward may be elected is the issuance of 
     exempt facility bonds described in subsection (a)(13).''.
       (c) Exemption From General State Volume Caps.--Paragraph 
     (3) of section 146(g) of such Code (relating to exception for 
     certain bonds) is amended--
       (1) by striking ``or (12)'' and inserting ``(12), or 
     (13)'', and
       (2) by striking ``and environmental enhancements of 
     hydroelectric generating facilities'' and inserting 
     ``environmental enhancements of hydroelectric generating 
     facilities, and qualified public educational facilities''.
       (d) Exemption From Limitation on Use for Land 
     Acquisition.--Section 147(h) of such Code (relating to 
     certain rules not to apply to mortgage revenue bonds, 
     qualified student loan bonds, and qualified 501(c)(3) bonds) 
     is amended by adding at the end the following new paragraph:
       ``(3) Exempt facility bonds for qualified public-private 
     schools.--Subsection (c) shall not apply to any exempt 
     facility bond issued as part of an issue described in section 
     142(a)(13) (relating to qualified public educational 
     facilities).''.
       (e) Conforming Amendment.--The heading for section 147(h) 
     of such Code is amended by striking ``Mortgage Revenue Bonds, 
     Qualified Student Loan Bonds, and Qualified 501(c)(3) Bonds'' 
     and inserting ``Certain Bonds''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after December 31, 2001.

     Subtitle C--Revolving Loan Program for Bond Interest Repayment

     SEC. __. DEFINITIONS.

       In this subtitle:
       (1) Bond.--The term ``bond'' includes any obligation.
       (2) Governor.--The term ``Governor'' includes the chief 
     executive officer of a State.
       (3) Qualified school construction bond.--The term 
     ``qualified school construction bond'' means any bond (or 
     portion of a bond) issued as part of an issue if--
       (A) 95 percent or more of the proceeds attributable to such 
     bond (or portion) are to be used for the construction, 
     rehabilitation, or repair of a public school facility (within 
     the meaning of section __(b)(1) of the Better Education for 
     Students and Teachers Act) or for the acquisition of land on 
     which such a facility is to be constructed with part of the 
     proceeds;
       (B) the bond is issued by a State, regional, or local 
     entity, with bonding authority; and
       (C) the issuer designates such bond (or portion) for 
     purposes of this section.
       (4) Stabilization fund.--The term ``stabilization fund'' 
     means the stabilization fund established under section 5302 
     of title 31, United States Code.

     SEC. __. LOANS FOR SCHOOL CONSTRUCTION BOND INTEREST PAYMENTS 
                   AND OTHER SUPPORT.

       (a) Loan Authority and Other Support.--
       (1) Loans and state-administered programs.--
       (A) In general.--Except as provided in subparagraph (B), 
     from funds made available to a State under section __(b) the 
     State, in consultation with the State educational agency--
       (i) shall use not less than 50 percent of the funds to make 
     loans to State, regional, or local entities within the State 
     to enable the entities to make annual interest payments on 
     qualified school construction bonds that are issued by the 
     entities not later than December 31, 2004; and
       (ii) may use not more than 50 percent of the funds to 
     support State revolving fund programs or other State-
     administered programs that assist State, regional, and local 
     entities within the State in paying for the cost of 
     construction, rehabilitation, repair, or acquisition 
     described in section __(3)(A).
       (B) States with restrictions.--If, on the date of enactment 
     of this Act, a State has in effect a law that prohibits the 
     State from making the loans described in subparagraph (A)(i), 
     the State, in consultation with the State educational agency, 
     may use the funds described in subparagraph (A) to support 
     the programs described in subparagraph (A)(ii).
       (2) Requests.--The Governor of each State desiring 
     assistance under this Act shall submit a request to the 
     Secretary of the Treasury at such time and in such manner as 
     the Secretary of the Treasury may require.
       (b) Repayment.--
       (1) In general.--Subject to paragraph (2), a State that 
     uses funds made available under section __(b) to make a loan 
     or support a State-administered program under subsection 
     (a)(1) shall repay to the stabilization fund the amount of 
     the loan or support, plus interest, at an annual rate of 4.5 
     percent. A State shall not be required to begin making such 
     repayment until the year immediately following the 15th year 
     for which the State is eligible to receive annual 
     distributions from the fund (which shall be the final year 
     for which the State shall be eligible for such a distribution 
     under this subtitle). The amount of such loan or support 
     shall be fully repaid during the 10-year period beginning on 
     the expiration of the eligibility of the State under this 
     subtitle.
       (2) Exceptions.--
       (A) In general.--The interest on the amount made available 
     to a State under section __(b) shall not accrue, prior to 
     January 1, 2007, unless the amount appropriated to carry out 
     part B of the Individuals with Disabilities Education Act (20 
     U.S.C. 1411 et seq.) for any fiscal year prior to fiscal year 
     2007 is sufficient to fully fund such part for the fiscal 
     year at the originally promised level, which promised level 
     would provide to each State 40 percent of the average per-
     pupil expenditure for providing special education and related 
     services for each child with a disability in the State.
       (B) Applicable interest rate.--Effective January 1, 2007, 
     the applicable interest rate that will apply to an amount 
     made available to a State under section __(b) shall be--
       (i) 0 percent with respect to years in which the amount 
     appropriated to carry out part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.) is not 
     sufficient to provide to each State at least 20 percent of 
     the average per-pupil expenditure for providing special 
     education and related services for each child with a 
     disability in the State;
       (ii) 2.5 percent with respect to years in which the amount 
     described in clause (i) is not sufficient to provide to each 
     State at least 30 percent of such average per-pupil 
     expenditure;
       (iii) 3.5 percent with respect to years in which the amount 
     described in clause (i) is not sufficient to provide to each 
     State at least 40 percent of such average per-pupil 
     expenditure; and
       (iv) 4.5 percent with respect to years in which the amount 
     described in clause (i) is sufficient to provide to each 
     State at least 40 percent of such average per-pupil 
     expenditure.
       (c) Federal Responsibilities.--The Secretary of the 
     Treasury and the Secretary of Education--
       (1) jointly shall be responsible for ensuring that funds 
     provided under this subtitle are properly distributed;
       (2) shall ensure that funds provided under this subtitle 
     are used only to pay for--
       (A) the interest on qualified school construction bonds; or
       (B) a cost described in subsection (a)(1)(A)(ii); and
       (3) shall not have authority to approve or disapprove 
     school construction plans assisted pursuant to this subtitle, 
     except to ensure that funds made available under this 
     subtitle are used only to supplement, and not supplant, the 
     amount of school construction, rehabilitation, and repair, 
     and acquisition of land for school facilities, in the State 
     that would have occurred in the absence of such funds.

     [SEC. __. AMOUNTS AVAILABLE TO EACH STATE.

       (a) Reservation for Indians.--
       (1) In general.--From $7,000,000,000 of the funds in the 
     stabilization fund, the Secretary of the Treasury shall make 
     available $100,000,000 to provide assistance to Indian 
     tribes.
       (2) Use of funds.--An Indian tribe that receives assistance 
     under paragraph (1)--
       (A) shall use not less than 50 percent of the assistance 
     for a loan to enable the Indian tribe to make annual interest 
     payments on qualified school construction bonds, in 
     accordance with the requirements of this Act that the 
     Secretary of the Treasury determines to be appropriate; and
       (B) may use not more than 50 percent of the assistance to 
     support tribal revolving fund programs or other tribal-
     administered programs that assist tribal governments in 
     paying for the cost of construction, rehabilitation, repair, 
     or acquisition described in

[[Page 7764]]

     section 3(5)(A), in accordance with the requirements of this 
     Act that the Secretary of the Treasury determines to be 
     appropriate.
       (b) Amounts Available.--
       (1) In general.--Subject to paragraph (3) and from 
     $7,000,000,000 of the funds in the stabilization fund that 
     are not reserved under subsection (a), the Secretary of the 
     Treasury shall make available to each State submitting a 
     request under section 4(a)(2) an amount that bears the same 
     relation to such remainder as the amount the State received 
     under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal 
     year 2001 bears to the amount received by all States under 
     such part for such year.
       (2) Disbursal.--The Secretary of the Treasury shall 
     disburse the amount made available to a State under paragraph 
     (1) or (3), on an annual basis, during the period beginning 
     on October 1, 2001, and ending September 30, 2018.
       (3) Small state minimum.--
       (A) Minimum.--No State shall receive an amount under 
     paragraph (1) that is less than $30,000,000.
       (B) States.--In this paragraph, the term ``State'' means 
     each of the several States of the United States, the District 
     of Columbia, and the Commonwealth of Puerto Rico.
       (c) Notification.--The Secretary of the Treasury and the 
     Secretary of Education jointly shall notify each State of the 
     amount of funds the State may receive for loans and other 
     support under this Act.]

                           Subtitle D--Grants

     SEC. __. GRANT PROGRAM.

       (a) Authority to Award Grants To Construct Publicly Owned 
     Education Facilities.--
       (1) In general.--The Secretary of Education (in this 
     section referred to as the ``Secretary'') is authorized to 
     make grants, pursuant to this section, for the construction, 
     including erection, building, acquisition, alteration, 
     remodeling, improvement, or extension, of a public school 
     facility (within the meaning of section __(b)(1) of this 
     Act).
       (2) Application requirements.--The Secretary shall make the 
     following prerequisite determinations when considering 
     approval of an application for a grant under this section:
       (A) That the proposed facilities plan is the most 
     economical and cost-effective to meet the requirements of 
     this section, including, but not limited to, construction 
     costs, operation, maintenance, and replacement costs.
       (B) As appropriate, that the proposed facilities plan will 
     take into account and allow to the extent practicable, future 
     accommodations for any necessary alteration, remodeling, 
     improvement, or extension to meet the State established 
     education standards, including the nature, extent, timing, 
     and costs of future expansion and the manner in which the 
     local educational agency intends to finance such future 
     construction.
       (b) State Eligibility.--
       (1) In general.--A State shall be deemed an eligible State 
     in which local educational agencies may receive grants under 
     this section if the State is meeting its obligation toward 
     school construction financing. The State shall demonstrate 
     that it has an operational plan to meet such an obligation.
       (2) Rule of construction.--In the case of a State with a 
     school financing law separate from the State's education 
     facilities capital construction plan, nothing in paragraph 
     (2) shall be construed as affecting the application of such 
     financing law or the eligibility of such a State to receive a 
     grant under this section.
       (c) Application Requirements.--Not later than December 1 of 
     the school year for which a grant is being requested under 
     this section, a local educational agency shall submit to the 
     Secretary an application for a facilities grant, which has 
     been approved by the local school board, only upon meeting 
     the following criteria:
       (1) The school--
       (A) due to the lack of onsite facilities and for the 
     purposes of regular curriculum delivery, houses students in 
     instructional facilities located away from the school site 
     (such as in rented space, trailers, or other public or 
     community property); or
       (B) facilities fail to meet functional (including 
     environmental and code) requirements, resulting in a 
     consistent substandard performance and would require 
     extensive corrective maintenance and repair, of a financial 
     threshold that exceeds the school's bonding or levy authority 
     by at least 150 percent.
       (2) The school's facilities features are limited to roofs, 
     framing, floors, foundation, exterior walls, windows, doors, 
     interior finishes, plumbing, heating, ventilation and air 
     conditioning, electrical power, electrical lighting, life 
     safety codes or technology infrastructure, limited to, 
     telephone lines, conduits or raceways for computer network 
     cables, fiber optic cable, electrical wiring for 
     communications technology and electrical power for 
     communications technology.
       (3) The estimate for all costs in the proposal are based on 
     facilities inspections and assessments made in the most 
     recent 2 years.
       (4) The school's facilities fall within a State's statewide 
     needs assessment as inadequate for education or safety 
     reasons, if such a State assessment is in place.
       (5) The proposal meets all applicable Federal, State, and 
     local building code requirements.
       (6) The proposal includes a certified accounting, to be 
     compliant with all State and local privacy requirements, of 
     the number of children at each grade level and the number of 
     children expected to be served through alternative special 
     needs education facilities, as required by Federal, State, 
     and local law, if the proposal includes such a request.
       (d) Allowable Uses of Funds.--
       (1) In general.--Subject to paragraph (2), a grant made to 
     a local educational agency under this section shall only be 
     used for the following:
       (A) School facility construction, including erection, 
     building, acquisition, alteration, remodeling, improvement, 
     or extension, but excluding facilities that are not 
     consistently used for regular curriculum delivery and 
     instructional purposes.
       (B) Major renovation or repair of existing school 
     facilities, excluding normal and regular building operation, 
     maintenance and repair expenses.
       (2) Compliance with state and local standards.--Grants 
     awarded under this section for facility construction 
     proposals that fall within State or local minimum and maximum 
     building standards, as established by State or local law, 
     rule, or regulation, which are more limited than the 
     allowable uses under this subsection, shall be compliant with 
     such State and local standards.
       (e) Federal Share.--The Federal funds provided to a local 
     educational agency under this section shall not exceed 50 
     percent of the total cost of the facility construction 
     proposal. A local educational agency may use in-kind 
     contributions to meet the matching requirement of the 
     preceding sentence.
       (f) Progress Reports.--The Secretary shall require an 
     entity receiving a grant under this section to submit 
     quarterly progress reports to ensure compliance with this 
     section and to evaluate the impact of activities assisted 
     under this section.

              Subtitle E--Authorization of Appropriations

       (a) In general.--For the purposes of this title and subject 
     to subsection (b), there are authorized to be appropriated 
     $21 billion for fiscal year 2001 through FY 2008, to be 
     equally divided between Subtitle B, Subtitle C, and Subtitle 
     D.
       (b) Limitation.--No funds may be expended under this title 
     until the Federal obligation is met for the construction of 
     federally impacted schools and Indian schools.
                                  ____

  SA 645. Mr. CONRAD 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 end of title II, add the following:

     SEC. 203. PROFESSIONAL DEVELOPMENT.

       Section 3141(b)(2)(A) (20 U.S.C. 6861(b)(2)(A)) is 
     amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii)(V), by adding ``and'' after the 
     semicolon; and
       (3) by adding at the end the following:
       ``(iii) the provision of incentives, including bonus 
     payments, to recognized educators who achieve the National 
     Education Technology Standards, or an information technology 
     certification that is directly related to the curriculum or 
     content area in which the teacher provides instruction;''.
                                  ____

  SA 646. Mr. EDWARDS 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 679, after line 25, add the following:
       ``(6) support for arrangements that provide for independent 
     analysis to measure and report on school district 
     achievement.''.
                                  ____

  SA 647. Mr. HATCH proposed an amendment to the bill H.R. 428, 
concerning the participation of Taiwan in the World Health 
Organization; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. CONCERNING THE PARTICIPATION OF TAIWAN IN THE 
                   WORLD HEALTH ORGANIZATION (WHO).

       (a) Findings.--The Congress makes the following findings:
       (1) Good health is important to every citizen of the world 
     and access to the highest standards of health information and 
     services is necessary to improve the public health.
       (2) Direct and unobstructed participation in international 
     health cooperation forums and programs is beneficial for all 
     parts of the world, especially with today's greater potential 
     for the cross-border spread of various infectious diseases 
     such as the human immunodeficiency virus (HIV), tuberculosis, 
     and malaria.




       (3) Taiwan's population of 23,500,000 people is larger than 
     that of \3/4\ of the member states already in the World 
     Health Organization (WHO).

[[Page 7765]]

       (4) Taiwan's achievements in the field of health are 
     substantial, including one of the highest life expectancy 
     levels in Asia, maternal and infant mortality rates 
     comparable to those of western countries, the eradication of 
     such infectious diseases as cholera, smallpox, and the 
     plague, and the first to eradicate polio and provide children 
     with hepatitis B vaccinations.
       (5) The United States Centers for Disease Control and 
     Prevention and its Taiwan counterpart agencies have enjoyed 
     close collaboration on a wide range of public health issues.
       (6) In recent years Taiwan has expressed a willingness to 
     assist financially and technically in international aid and 
     health activities supported by the WHO.
       (7) On January 14, 2001, an earthquake, registering between 
     7.6 and 7.9 on the Richter scale, struck El Salvador. In 
     response, the Taiwanese government sent 2 rescue teams, 
     consisting of 90 individuals specializing in firefighting, 
     medicine, and civil engineering. The Taiwanese Ministry of 
     Foreign Affairs also donated $200,000 in relief aid to the 
     Salvadoran Government.
       (8) The World Health Assembly has allowed observers to 
     participate in the activities of the organization, including 
     the Palestine Liberation Organization in 1974, the Order of 
     Malta, and the Holy See in the early 1950's.
       (9) The United States, in the 1994 Taiwan Policy Review, 
     declared its intention to support Taiwan's participation in 
     appropriate international organizations.
       (10) Public Law 106-137 required the Secretary of State to 
     submit a report to the Congress on efforts by the executive 
     branch to support Taiwan's participation in international 
     organizations, in particular the WHO.
       (11) In light of all benefits that Taiwan's participation 
     in the WHO can bring to the state of health not only in 
     Taiwan, but also regionally and globally, Taiwan and its 
     23,500,000 people should have appropriate and meaningful 
     participation in the WHO.
       (b) Plan.--The Secretary of State is authorized--
       (1) to initiate a United States plan to endorse and obtain 
     observer status for Taiwan at the annual week-long summit of 
     the World Health Assembly in May 2001 in Geneva, Switzerland; 
     and
       (2) to instruct the United States delegation to Geneva to 
     implement that plan.
       (c) Report.--Not later than 14 days after the date of the 
     enactment of this Act, the Secretary of State shall submit a 
     written report to the Congress in unclassified form 
     containing the plan authorized under subsection (b).

                          ____________________